The 2010-2011 legislative session in Florida has concluded. A number of ACRA-supported victories were achieved, marking a successful legislative session. Highlighted below are five notable accomplishments from the session:

Minimum Financial Responsibility (Opposed). Final Result: Defeated
SB 1806 by Sen. Diaz de la Portilla (R-Miami) and HB 1439 by Rep. Jamie Grant (R-Tampa) would have increased the minimum financial responsibility for rental car companies. As a result of meetings with leadership and local Enterprise professionals discussing the issue with their local legislators (in the district and during Tallahassee visits), these bills were not given a hearing in any committee. We expect this issue to surface again next session.

Limitation on Toll Administration Fees (Opposed). Final Result: Defeated
Language to cap the amount a rental car company can charge as an administrative fee for renters who go through toll booths was defeated this session. Earlier in the session, the Miami-Dade Toll Authority amended it to a large transportation package. However, working with the other rental car companies, we had the language taken off the bill at the next committee stop. We suggested to those who advanced this language that an interim study on toll authorities fees and operations procedures may be warranted.

PIP Reform (Supported). Final Result: Defeated
With approximately four weeks left in session, the PIP Reform effort was narrowly defeated in the House Health and Human Services Committee. While reform proponents worked to revive the issue on other bills, it was not added to legislation that was ultimately approved. Two separate bills were originally filed – one that addressed attorneys’ fees and one that tackled fraud surrounding auto accidents.

The sponsors of the attorney fee bills were Rep. Mike Horner (R-Kissimmee) and Sen. Garrett Richter (R-Naples). The sponsors of the bills that address vehicle accidents were Rep. Jim Boyd (R-Bradenton) and Sen. Ellyn Bogdanoff (R-Ft. Lauderdale). At the final committee meeting where the bill was defeated, the two House bills were combined to include the below provisions that were an attempt at a compromise package:

• Required long-form crash reports to be filed;
• Capped attorney fee awards in PIP disputes at $200 per billable hour and barred the use of contingency risk multipliers in determining PIP fee awards;
• Required compliance with policy terms, including submission to examination under oath by insureds, as a condition precedent to receiving policy benefits;
• Entitled medical providers to reasonable compensation for attending an EUO;
• Tolled the 30-day period for payment of PIP benefits when there is reasonable belief that insurance fraud has been committed;
• Established that a premature pre-suit demand letter for unpaid PIP benefits is defective;
• Created a rebuttable presumption that an insured’s failure to appear for two scheduled examinations (mental or physical) is an unreasonable refusal to submit to examination;
• Provided that submission to examination is a condition precedent to eligibility for policy benefits; Barred payment of PIP benefits to persons who submit false statements or commit fraudulent insurance acts; and
• Amended the PIP schedule of maximum charges.

Registered Agent (Supported). Final Result: Passed
Language originally proposed by Avis, on which we assisted, was ultimately approved on HB 1087 in the a few days before the end of session. Below is the specific language approved:

“627.4137 Disclosure of certain information required.—
(3) Any request made to a self-insured corporation pursuant to this section shall be sent by certified mail to the registered agent of the disclosing entity.”

Current law requires motor vehicle insurance notice to the “named insured” for: (1) intent not to renew; (2) intent to transfer a policy; and (3) eligibility for insurance through the Automobile Joint Underwriting Association in the event of cancellation or nonrenewal. The party designated to receive the notice under current law is the “named insured,” the persons or entities listed on the policy declaration page. However, at times the named insured may include one or more individuals particularly in commercial coverage. The named insured of a policy may often include persons or entities related by common ownership or common enterprise.

The bill adopts the previous industry practice of delivering certain required policy notices to only the party with administrative authority on the policy, the “first named insured” for notices of renewal premium, cancellation, intent not to renew, intent to transfer, and eligibility for insurance through the Automobile Joint Underwriting Association in policies providing motor vehicle insurance.

Rental Car Surcharge Re-Direct. (Neutral) Final Result: Died
A plan to consolidate the state’s economic development efforts appears to be on its way to passage; however the details have not yet been worked out. Of interest to Enterprise, is that for FY 2011-12, $26.3 million generated by the rental car surcharge will be put into a fund to assist with bringing more companies and jobs to Florida. Currently, much of the surcharge is provided to Visit Florida but the funds will now flow through this new entity. Further, the Governor would be given discretion over a yet to be determined amount of funds to lure businesses to the state.

State senators who represent Jefferson County voted Thursday against a plan to start collection in the county of a 3 percent tax on vehicle rentals and leases of a year or less.

The tax would raise $7.5 million a year, according to an estimate made a decade ago by the Legislative Fiscal Office. The money would go to the Birmingham-Jefferson Convention Complex authority.

A lobbyist for the authority, Johnny Crawford, said the money would be used to maintain and renovate the convention complex.

State lawmakers approved the tax in 2001, but the law includes a provision that the tax couldn’t be collected until counsel for any bonds issued by the BJCC authority certified that there would be enough money from the tax and other sources to repay $300 million in bonds. That hasn’t happened.

Senate Bill 323 by Sen. Jabo Waggoner, R-Vestavia Hills, would erase that provision and allow immediate collection of the tax.

Senators who represent the county voted 3-4 against the bill. Waggoner said he would not try again this spring to pass the bill.

Voting for the bill were Waggoner, Sen. Linda Coleman, D-Birmingham, and Sen. Priscilla Dunn, D-Bessemer. Voting against it were Sen. Scott Beason, R-Gardendale, Sen. Slade Blackwell, R-Mountain Brook, Sen. Greg Reed, R-Jasper, and Sen. Rodger Smitherman, D-Birmingham.

Waggoner said the vehicle rental tax in Birmingham now is 2.25 percent, compared to 16 percent in Charlotte, 14 percent in Memphis, 13 percent in Nashville, 7 percent in Jacksonville, Fla., and 6 percent in Louisville. He said Birmingham’s rate still would be lower, even after an increase of 3 percentage points.

Smitherman recalled that lawmakers in 2001 approved the vehicle rental tax in a bid to raise enough money to finance construction of a domed stadium.

Joe Fine, a lobbyist hired to represent Enterprise rental car company, said that more than 70 percent of vehicles rented in Jefferson County are rented by area residents, not out-of-towners, and that Senate Bill 323 in effect would be a tax increase on local people.