New law to ban accident response fees

TAMPA - Earlier this year, FOX 13 exposed a plan to charge at-fault drivers an extra fee when emergency workers show up at a traffic accident. Now, a new law takes effect on July 1 that will ban accident response fees.

“We don't want to overburden the people of Florida, especially in an economy like this,” Governor Charlie Crist told Doug Smith, explaining why he signed the bill into law.

Most Florida drivers count on their insurance to handle the costs of an accident, but some cities and counties had been tacking on an extra charge that sometimes insurance wasn’t covering.

“How does this make you feel?” Doug Smith asked Shirley Kimel, who ran a red light, hit another car, and got a $300 bill for police and fire.

“I just think that the cities are trying to double up on your income,” replied Kimel, who had her accident in Winter Haven.

The City of Winter Haven manages all the details of its accident response program. The city collects the money and sends out bills to drivers and their insurance companies. But many other communities across Florida had signed a contract with a company called Cost Recovery Corporation allowing a third party to bill drivers who cause accidents.

Regina Moore is the president of Cost Recovery Corporation, or CRC, based in Dayton, Ohio. Her company signed a contract with the City of Ocala. It allows CRC to send letters and make phone calls to get at-fault drivers to pay. Moore told Fox 13 that usually her company keeps 10 percent of the money it collects.

According to Moore, insurance companies pay the extra fee about half the time. When they don’t, drivers must pay it out of pocket. For Ocala, CRC has collected nearly $150,000.

But here’s the important part: Only people from out of town get a bill. City residents who cause an accident don’t get charged.

The City of St. Petersburg was considering the plan.

“I don't like the idea, “said Sam Dudding, who works in St. Petersburg but lives just outside the city limits. If he were to cause and accident, under the plan proposed, he’d get billed for police and fire services -- and so would any tourist in a similar situation.

State Senator Mike Bennett, a Republican from Bradenton, agreed. After FOX 13 spoke with him, Senator Bennett introduced Senate Bill 2282 to ban accident response fees throughout Florida.

Representative Nick Thompson, a Republican from Fort Myers, has filed a companion bill in the House -- HB 1043.

Governor Charlie Crist signed the new law, which bans accident response fees in Florida.

"You know local government. They want to run the fire engine. Every cop wants to show up. And if everyone can charge, it will cost you $500 in fees. It’s crazy,” said Bennett.