The proposed amendments to Rule Chapter 69I-25, F.A.C., will repeal two rules to eliminate duplicative information that is identical in section 55.03, F.S., and implement the legislative changes made to section 55.03, F.S., which requires the rate ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Accounting and Auditing

RULE NOS.:RULE TITLES:

69I-25.001Application of Rule

69I-25.002Definitions

69I-25.003Requirements

PURPOSE AND EFFECT: The proposed amendments to Rule Chapter 69I-25, F.A.C., will repeal two rules to eliminate duplicative information that is identical in section 55.03, F.S., and implement the legislative changes made to section 55.03, F.S., which requires the rate of interest to be set quarterly by the Chief Financial Officer, lowers the basis points that get added to the federal discount rate to 400 for rate calculation purposes, and includes the four dates in a calendar year that the rate of interest shall be set on for payments on judgments or decrees.

SUMMARY: This rule chapter is being amended to reflect changes regarding the rate of interest for judgments, decrees, or untimely payments to vendors.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department conducted an analysis of the proposed rules’ potential economic impact and determined that will be no adverse economic impact or regulatory increases that would require legislative ratification.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 17.29, FS.

LAW IMPLEMENTED: 55.03, 215.422(3), FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: March 4, 2019, 2:00 p.m.

PLACE: Larson Building, Room 116, 200 East Gaines Street, Tallahassee, FL

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Mark Merry, telephone: [phone], email: [e-mail].. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Mark Merry, address: 200 East Gaines Street, Tallahassee, FL 32399-0393, telephone: [phone], email: [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69I-25.001 Application of Rule.

Rulemaking Authority 17.29 FS. Law Implemented 55.03, 215.422(3), 337.141, 687.01 FS. History–New 11-30-94, Formerly 3A-25.001, Repealed________.

 

69I-25.002 Definitions.

Rulemaking Authority 17.29 FS. Law Implemented 55.03 , 215.422(3), 337.141, 687.01 FS. History–New 11-30-94, Amended 5-12-97, Formerly 3A-25.002, Repealed________.

 

69I-25.003 Requirements.

(1) The following requirements will procedure shall be carried out by the Bureau of Vendor Relations, under the Division of Accounting and Auditing, once used by the Chief Financial Officer to sets the quarterly annual rate of interest to be paid on judgments or decrees pursuant to section 55.03, F.S., and for untimely payments to vendors pursuant to section 215.422, F.S.:

(a) On December 1st, March 1st, June 1st, and September 1st of each year, the Chief Financial Officer sets the rate of interest that shall be payable on judgments or decrees for the calendar quarter beginning January 1st, and adjusts the rate quarterly on April 1st, July 1st, and October 1st by averaging the discount rate of the Federal Reserve Bank of New York (published in the Federal Register), for the preceding 12 months, then adding 400 basis points to the averaged federal discount rate, An annual rate will be determined by averaging the Federal Reserve Discount Rate each month for the twelve month period ending October 31, then adding 500 basis points to this average, and rounding to two decimal places. In this calculation, one-half of a decimal point will be rounded upward.

(b) The daily rate will be determined by dividing the quarterly annual rate by 365 (366 during any leap year) and rounding the quotient to seven (7) decimal places. In this calculation, one-half of a decimal point will be rounded upward.

(2) The rates will be set on December 1, as the effective rate beginning January 1 of the following calendar year.

(2)(3) The Department will inform the clerk of the courts and chief judge of each judicial circuit of the rate that has been established for the upcoming quarter shall provide notice of the rates by publication advertisement in the Florida Administrative Register before each quarterly rate is to take effect at least once between December 1 and January 1.

(4) The Department shall inform the clerk of the courts and chief judge of each judicial circuit of the rate that has been established for the upcoming year.

(3)(5) The new quarterly rate set on December 1, as the effective rate beginning January 1 of the following calendar year, does not apply to interest payments to health care providers for untimely payment as provided in section 215.422(13), F.S. The interest rate for health care providers shall remain at 1% per month or .03333% per day.

Rulemaking Authority 17.29 FS. Law Implemented 55.03, 215.422(3), 337.141, 687.01 FS. History–New 11-30-94, Formerly 3A-25.003, Amended ________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Mark Merry

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: CFO Jimmy Patronis

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: February 7, 2019

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: December 21, 2018.