How a new state policy could shut down a 24-year-old insurance business

BOCA RATON, Fla. — A local insurance company said it was concerned about losing business after a the new rule implemented by the Florida Department of Highway Safety and Motor Vehicles, requires people who want to register a car with a foreign passport to have documents illustrating legal presence in the United States.

Those trying to register a car with a passport must be from the United States or have an unexpired passport issued by the government of another country with a US Department of Homeland Security (DHS) stamp. Other valid documents include an unexpired I-94, a current permanent resident card, and an unexpired immigrant visa issued by DHS.

Previously, people only needed a valid foreign passport.

Rosana Giani and Adelio Deassun, who own Novus Insurance in Boca Raton, said a good percentage of their business comes from undocumented migrants. They say the new policy makes it more difficult to get additional business and serve customers who have already paid for services.

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How does this new car registration rule affect vehicle sales?

“The boards we were supposed to deliver to our customers we couldn’t deliver because they were sent back,” Giani said. “They changed the rules and didn’t let anyone know we had new rules.”

They also said that if a migrant’s car is totaled and insured, this new policy will not allow them to transfer the registration to a newer car without the proper documentation.

“Let’s get your car out of the mud and try to fix that (totaled) car,” Giani said. “Yeah, it’s a nightmare.”

Both Deassun and Giani said the policy has reduced their business by about 60 percent because people are afraid to renew their registration even if they are accepted by the old policy.

WPTV

“I’m scared of how I’m going to pay my rent next week,” Giani said. “… We’re going to start selling popsicles. I don’t know.”

The married couple is considering closing their business after 24 years or moving to another state such as California.

Three different local car dealers, who said many of their customers are undocumented immigrants, told WPTV’s Ethan Stein they are struggling to sell cars after the new policy took effect in September.

Watch: WPTV spoke with car dealership owners who say the rule is costing them sales

The new rule requiring “valid passport” to register a vehicle could impact car sales. Here’s why

Michael Melendez, owner of Mike Auto Sales, estimated that his sales are down 75 percent in the past month. He said the administrative rule, which does not require any new law to take effect, makes it more difficult to sell cars to undocumented migrants, even if they are past customers.

“They’re great, hardworking people,” Melendez said. “Recently, someone came who bought a car from me previously and didn’t know about (the rule). I said, “Look, I’d love to sell you another car, and I can’t. I’m losing this whole business. It drives me crazy.”

The rule was not enacted by the legislature but created by a state agency overseen by the governor’s office. Emails obtained by WPTV show that the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) is asking county toll collectors on Sept. 5 to implement the rule starting Sept. 23, giving car dealers just two weeks to comply to the rule.

WPTV contacted the FLHSMV, who directed us to documents posted on the Florida Administrative Code and Administrative Registry website. Those documents show the state believed the policy was necessary to “provide clarity regarding documentation” for the term “valid passport” in state law.

“The purpose of this rule is to provide clarity regarding the documentation that must be presented prior to the registration of a vehicle,” the document states. “The effect will be to allow the department to ensure compliance with state law when processing a vehicle registration application.”

The state also said it believes the law won’t hurt small businesses and won’t increase regulatory costs by $200,000.