Meeting Packet — Commerce Committee, The Florida House of Representatives (March 29, 2021)

Summary

Meeting packet of the Commerce Committee, The Florida House of Representatives, for Monday, March 29, 2021, with Chris Sprowls as Speaker and Blaise Ingoglia as Chair. The agenda lists bills for consideration, including CS/HB 273 (Motor Vehicle Insurance Coverage Exclusions), CS/HB 895 (Consumer Finance Loans) and HB 6053 (Doorstep Waste Containers), and a proposed committee substitute, PCS for CS/HB 15, on Sales and Use Tax. The staff analysis of CS/HB 273, dated March 25, 2021, states that the bill authorizes the specific exclusion of named drivers from private passenger motor vehicle insurance coverages, contingent upon the written consent of the named insured, with an effective date of July 1, 2021. The text of CS/HB 273 follows.

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Commerce Committee
Monday, March 29, 2021
4:15 PM – 6:15 PM
Webster Hall (212 Knott)

Meeting Packet

Chris Sprowls Blaise Ingoglia
Speaker Chair
The Florida House of Representatives
Commerce Committee

Chris Sprowls Blaise Ingoglia
Speaker Chair

Meeting Agenda

Monday, March 29, 2021
4:15 PM – 6:15 PM
Webster Hall (212 Knott)

I. Call to Order

II. Roll Call

III. Welcome and Opening Remarks

IV. Consideration of the following bill(s):

• CS/HB 273 Motor Vehicle Insurance Coverage Exclusions by Insurance & Banking
Subcommittee, Plakon

• CS/HB 379 Pub. Rec./Economic Development Agencies by Government Operations
Subcommittee, Giallombardo

• CS/HB 619 Pub. Rec./Application for a De Novo Banking Charter by Insurance & Banking
Subcommittee, Barnaby

• HB 859 Expiration of Permits and Agreements During Natural Emergencies by Grant

• CS/HB 895 Consumer Finance Loans by Insurance & Banking Subcommittee, Stevenson

• HB 6053 Doorstep Waste Containers by Yarborough

Consideration of the following proposed committee substitute(s):

• PCS for CS/HB 15 -- Sales and Use Tax

V. Closing Remarks

VI. Adjournment

303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
CS/HB 273
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 273 Motor Vehicle Insurance Coverage Exclusions
SPONSOR(S): Insurance & Banking Subcommittee, Plakon
TIED BILLS: IDEN./SIM. BILLS: CS/SB 420

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee 12 Y, 3 N, As CS Rowley Luczynski

2) Commerce Committee Rowley Hamon

SUMMARY ANALYSIS
Chapter 627, part XI, F.S., Motor Vehicle and Casualty Insurance Contracts, and ch. 324, F.S., the Financial
Responsibility Law of 1955, establish motor vehicle insurance coverage requirements. Motor vehicle insurance
includes two types of coverage: financial responsibility (i.e., bodily injury, death, and property damage or
(BI/PD) and no-fault (i.e., personal injury protection or PIP). A policy providing coverage for BI/PD is required to
cover individuals named on the policy and anyone operating a motor vehicle listed on the policy when the
operator has the express or implied permission of the insured motor vehicle owner. A policy providing PIP
coverage is required to cover the motor vehicle owner, persons operating the insured motor vehicle, relatives
residing in the same household as the policyholder, passengers in the motor vehicle, anyone struck and
injured by the motor vehicle while not a passenger in a self-propelled vehicle, and anyone specifically named
on the policy. For the mandatory motor vehicle insurance coverages of BI/PD and PIP, neither the policyholder
nor the insurer can exclude an individual required to be covered by law.

Because there is no authority under the motor vehicle insurance laws for an insurer to exclude a specific
individual (i.e., an excluded named driver) from coverage, an insurer may choose not to write a policy in order
to avoid covering specific individuals (e.g., a high insurance risk driver). This results in some consumers being
denied opportunities to purchase motor vehicle insurance or having to pay more because they live with
individuals the policyholder or insurer would like to exclude from the policy. Additionally, policyholders may
have their policies cancelled if the license or registration of a co-resident is suspended or revoked.

The bill authorizes the specific exclusion of named drivers from private passenger motor vehicle insurance
coverages, except for periods when the excluded named driver is not operating a covered vehicle (e.g., when
he or she is a passenger in the vehicle), if the exclusion is discriminatory, or if the exclusion is inconsistent with
filed underwriting guidelines. The exclusion of a named driver is contingent upon the written consent of the
named insured. The bill requires insurers to list excluded drivers on the policy’s declarations page or on a
policy endorsement.

The bill does not appear to have a fiscal impact on state or local government. It has positive and negative
impacts on the private sector.

The bill has an effective date of July 1, 2021.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Chapter 627, part XI, F.S., Motor Vehicle and Casualty Insurance Contracts, and ch. 324, F.S., the
Financial Responsibility Law of 1955, establish motor vehicle insurance coverage requirements.
Owners and operators of motor vehicles must maintain the ability to respond in damages at specified
minimum amounts for personal injury protection, bodily injury or death, and property damage.

Motor vehicle insurance includes two types of coverage: financial responsibility (i.e., bodily injury,
death, and property damage or BI/PD) and no-fault (i.e., personal injury protection or PIP). A policy
providing coverage for bodily injury, death, and property damage is required to provide coverage for: 1

 Individuals named on the policy; and
 Anyone operating a motor vehicle listed on the policy when the operator has the express or
implied permission of the insured motor vehicle owner.

A policy providing PIP coverage is required to cover: 2

 The owner of the motor vehicle;
 Persons operating the insured motor vehicle;
 Relatives residing in the same household3 as the policyholder;
 Passengers in the motor vehicle;
 Anyone struck by the motor vehicle who suffers bodily injury while not occupying a self-
propelled vehicle; and
 Anyone specifically named on the policy.

For the mandatory motor vehicle insurance coverages of BI/PD and PIP, neither the policyholder nor
the insurer can exclude an individual required to be covered by law. 4 The law also prohibits an insurer
from “knowingly making or permitting unfair discrimination between individuals of the same actuarially
supportable class and equal expectation of life.”5 However, an insurer may cancel a motor vehicle
insurance policy if the policyholder or any operator who resides in the same household or customarily
operates a motor vehicle insured under the policy has her or his driver license revoked or suspended.6

Because the law does not expressly permit insurers to exclude or remove specifically named
individuals from motor vehicle insurance policies, individuals with resident relatives considered by
insurers to be high insurance risks may have existing policies cancelled and/or be denied opportunities
to purchase new policies.

Effect of the Bill

The bill authorizes insurers and the named insured to exclude specific individuals from a private
passenger motor vehicle insurance policy. An excluded individual would not be covered for damages

1 S. 324.151(1), F.S.
2 Ss. 627.736(1) and (4)(e) and 627.7407(5)(b), F.S.
3 “Relative residing in the same household” means a relative of any degree by blood or by marriage who usually makes

her or his home in the same family unit, whether or not temporarily living elsewhere. S. 627.732(6), F.S.
4 The insurer may shift certain liabilities from BI/PD and PIP coverage to uninsured/underinsured vehicle coverage (UM).

S. 627.727(3)(c), F.S. UM coverage includes damages caused to a policyholder, a resident relative of the policyholder, or
an individual named on the policy who is injured by non-family member who was operating an insured vehicle, if the BI/PD
and PIP coverage excludes coverage of these damages.
5 S. 626.9541(1)(g), F.S.
6 Ss. 627.7275 and 627.728, F.S.
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that occur if he or she operates a motor vehicle that is insured under a policy that excludes the
individual by name. The bill prohibits exclusion for periods when the excluded named driver is not
operating a motor vehicle covered under the policy (e.g., a passenger in the vehicle), if the exclusion is
discriminatory, or if the exclusion is inconsistent with the underwriting guidelines filed by the insurer.
The exclusion is contingent upon the written consent of the named insured. The bill requires insurers to
list excluded named drivers on the policy’s declarations page or on a policy endorsement.

B. SECTION DIRECTORY:

Section 1. Creates s. 627.747, F.S., relating to named driver exclusion.

Section 2. Amends s. 324.151, F.S., relating to motor vehicle liability policies; required provisions.

Section 3. Amends s. 627.736, F.S., relating to required personal injury protection benefits; exclusions;
priority; claims.

Section 4. Amends s. 627.7407, F.S., relating to application of the Florida Motor Vehicle No-Fault Law.

Section 5. Provides an effective date of July 1, 2021.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may positively affect consumers by increased availability and/or lowered premiums of motor
vehicle insurance written with named driver exclusions. However, high-risk consumers may experience
increased application denials or higher premiums if they need to secure their own coverage following
exclusion from a policy.

D. FISCAL COMMENTS:
None.

III. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
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Not Applicable. The bill does not appear to affect county or municipal governments.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 4, 2021, the Insurance & Banking Subcommittee considered the bill, adopted one amendment, and
reported the bill favorably as a committee substitute. The amendment clarifies that an individual may not be
excluded from a motor vehicle policy solely because of his or her race, color, religion, sex, national origin, age,
handicap, pregnancy, or marital status.

The analysis is drafted to the committee substitute as passed by the Insurance & Banking Subcommittee.

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 273 2021

1 A bill to be entitled
2 An act relating to motor vehicle insurance coverage
3 exclusions; creating s. 627.747, F.S.; providing that
4 private passenger motor vehicle policies may exclude
5 certain identified individuals from specified
6 coverages under certain circumstances; providing that
7 such policies may not exclude coverage under certain
8 circumstances; amending ss. 324.151, 627.736, and
9 627.7407, F.S.; conforming provisions to changes made
10 by the act; providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Section 627.747, Florida Statutes, is created
15 to read:
16 627.747 Named driver exclusion.—
17 (1) A private passenger motor vehicle policy may exclude
18 an identified individual who is not a named insured from the
19 following coverages while the identified individual is operating
20 a motor vehicle, provided the identified individual is named on
21 the declarations page or by endorsement and the named insured
22 consents in writing to such exclusion:
23 (a) Notwithstanding the Florida Motor Vehicle No-Fault
24 Law, the personal injury protection coverage specifically
25 applicable to the identified individual's injuries, lost wages,

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26 and death benefits.
27 (b) Property damage liability coverage.
28 (c) Bodily injury liability coverage, if required by law
29 and purchased by the named insured.
30 (d) Uninsured motorist coverage for any damages sustained
31 by the identified excluded individual, if the named insured has
32 purchased such coverage.
33 (e) Any coverage the named insured is not required by law
34 to purchase.
35 (2) A private passenger motor vehicle policy may not
36 exclude coverage when:
37 (a) The identified individual is injured while not
38 operating a motor vehicle;
39 (b) The identified individual is being excluded solely
40 because of his or her race, color, religion, sex, national
41 origin, age, handicap, pregnancy, or marital status; or
42 (c) The exclusion is inconsistent with the underwriting
43 rules filed by the insurer pursuant to s. 627.0651(13)(a).
44 Section 2. Paragraph (a) of subsection (1) of section
45 324.151, Florida Statutes, is amended to read:
46 324.151 Motor vehicle liability policies; required
47 provisions.—
48 (1) A motor vehicle liability policy to be proof of
49 financial responsibility under s. 324.031(1), shall be issued to
50 owners or operators under the following provisions:

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51 (a) An owner's liability insurance policy must shall
52 designate by explicit description or by appropriate reference
53 all motor vehicles with respect to which coverage is thereby
54 granted, must and shall insure the owner named therein, and,
55 except for a named driver excluded under s. 627.747, must insure
56 any other person as operator using such motor vehicle or motor
57 vehicles with the express or implied permission of such owner
58 against loss from the liability imposed by law for damage
59 arising out of the ownership, maintenance, or use of such motor
60 vehicle or motor vehicles within the United States or the
61 Dominion of Canada, subject to limits, exclusive of interest and
62 costs with respect to each such motor vehicle as is provided for
63 under s. 324.021(7). Insurers may make available, with respect
64 to property damage liability coverage, a deductible amount not
65 to exceed $500. In the event of a property damage loss covered
66 by a policy containing a property damage deductible provision,
67 the insurer shall pay to the third-party claimant the amount of
68 any property damage liability settlement or judgment, subject to
69 policy limits, as if no deductible existed.
70 Section 3. Subsection (1) of section 627.736, Florida
71 Statutes, is amended to read:
72 627.736 Required personal injury protection benefits;
73 exclusions; priority; claims.—
74 (1) REQUIRED BENEFITS.—An insurance policy complying with
75 the security requirements of s. 627.733 must provide personal

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76 injury protection to the named insured, relatives residing in
77 the same household unless excluded under s. 627.747, persons
78 operating the insured motor vehicle, passengers in the motor
79 vehicle, and other persons struck by the motor vehicle and
80 suffering bodily injury while not an occupant of a self-
81 propelled vehicle, subject to subsection (2) and paragraph
82 (4)(e), to a limit of $10,000 in medical and disability benefits
83 and $5,000 in death benefits resulting from bodily injury,
84 sickness, disease, or death arising out of the ownership,
85 maintenance, or use of a motor vehicle as follows:
86 (a) Medical benefits.—Eighty percent of all reasonable
87 expenses for medically necessary medical, surgical, X-ray,
88 dental, and rehabilitative services, including prosthetic
89 devices and medically necessary ambulance, hospital, and nursing
90 services if the individual receives initial services and care
91 pursuant to subparagraph 1. within 14 days after the motor
92 vehicle accident. The medical benefits provide reimbursement
93 only for:
94 1. Initial services and care that are lawfully provided,
95 supervised, ordered, or prescribed by a physician licensed under
96 chapter 458 or chapter 459, a dentist licensed under chapter
97 466, a chiropractic physician licensed under chapter 460, or an
98 advanced practice registered nurse registered under s. 464.0123
99 or that are provided in a hospital or in a facility that owns,
100 or is wholly owned by, a hospital. Initial services and care may

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101 also be provided by a person or entity licensed under part III
102 of chapter 401 which provides emergency transportation and
103 treatment.
104 2. Upon referral by a provider described in subparagraph
105 1., followup services and care consistent with the underlying
106 medical diagnosis rendered pursuant to subparagraph 1. which may
107 be provided, supervised, ordered, or prescribed only by a
108 physician licensed under chapter 458 or chapter 459, a
109 chiropractic physician licensed under chapter 460, a dentist
110 licensed under chapter 466, or an advanced practice registered
111 nurse registered under s. 464.0123, or, to the extent permitted
112 by applicable law and under the supervision of such physician,
113 osteopathic physician, chiropractic physician, or dentist, by a
114 physician assistant licensed under chapter 458 or chapter 459 or
115 an advanced practice registered nurse licensed under chapter
116 464. Followup services and care may also be provided by the
117 following persons or entities:
118 a. A hospital or ambulatory surgical center licensed under
119 chapter 395.
120 b. An entity wholly owned by one or more physicians
121 licensed under chapter 458 or chapter 459, chiropractic
122 physicians licensed under chapter 460, advanced practice
123 registered nurses registered under s. 464.0123, or dentists
124 licensed under chapter 466 or by such practitioners and the
125 spouse, parent, child, or sibling of such practitioners.

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126 c. An entity that owns or is wholly owned, directly or
127 indirectly, by a hospital or hospitals.
128 d. A physical therapist licensed under chapter 486, based
129 upon a referral by a provider described in this subparagraph.
130 e. A health care clinic licensed under part X of chapter
131 400 which is accredited by an accrediting organization whose
132 standards incorporate comparable regulations required by this
133 state, or
134 (I) Has a medical director licensed under chapter 458,
135 chapter 459, or chapter 460;
136 (II) Has been continuously licensed for more than 3 years
137 or is a publicly traded corporation that issues securities
138 traded on an exchange registered with the United States
139 Securities and Exchange Commission as a national securities
140 exchange; and
141 (III) Provides at least four of the following medical
142 specialties:
143 (A) General medicine.
144 (B) Radiography.
145 (C) Orthopedic medicine.
146 (D) Physical medicine.
147 (E) Physical therapy.
148 (F) Physical rehabilitation.
149 (G) Prescribing or dispensing outpatient prescription
150 medication.

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151 (H) Laboratory services.
152 3. Reimbursement for services and care provided in
153 subparagraph 1. or subparagraph 2. up to $10,000 if a physician
154 licensed under chapter 458 or chapter 459, a dentist licensed
155 under chapter 466, a physician assistant licensed under chapter
156 458 or chapter 459, or an advanced practice registered nurse
157 licensed under chapter 464 has determined that the injured
158 person had an emergency medical condition.
159 4. Reimbursement for services and care provided in
160 subparagraph 1. or subparagraph 2. is limited to $2,500 if a
161 provider listed in subparagraph 1. or subparagraph 2. determines
162 that the injured person did not have an emergency medical
163 condition.
164 5. Medical benefits do not include massage as defined in
165 s. 480.033 or acupuncture as defined in s. 457.102, regardless
166 of the person, entity, or licensee providing massage or
167 acupuncture, and a licensed massage therapist or licensed
168 acupuncturist may not be reimbursed for medical benefits under
169 this section.
170 6. The Financial Services Commission shall adopt by rule
171 the form that must be used by an insurer and a health care
172 provider specified in sub-subparagraph 2.b., sub-subparagraph
173 2.c., or sub-subparagraph 2.e. to document that the health care
174 provider meets the criteria of this paragraph. Such rule must
175 include a requirement for a sworn statement or affidavit.

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176 (b) Disability benefits.—Sixty percent of any loss of
177 gross income and loss of earning capacity per individual from
178 inability to work proximately caused by the injury sustained by
179 the injured person, plus all expenses reasonably incurred in
180 obtaining from others ordinary and necessary services in lieu of
181 those that, but for the injury, the injured person would have
182 performed without income for the benefit of his or her
183 household. All disability benefits payable under this provision
184 must be paid at least every 2 weeks.
185 (c) Death benefits.—Death benefits of $5,000 per
186 individual. Death benefits are in addition to the medical and
187 disability benefits provided under the insurance policy. The
188 insurer may pay death benefits to the executor or administrator
189 of the deceased, to any of the deceased's relatives by blood,
190 legal adoption, or marriage, or to any person appearing to the
191 insurer to be equitably entitled to such benefits.
192
193 Only insurers writing motor vehicle liability insurance in this
194 state may provide the required benefits of this section, and
195 such insurer may not require the purchase of any other motor
196 vehicle coverage other than the purchase of property damage
197 liability coverage as required by s. 627.7275 as a condition for
198 providing such benefits. Insurers may not require that property
199 damage liability insurance in an amount greater than $10,000 be
200 purchased in conjunction with personal injury protection. Such

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201 insurers shall make benefits and required property damage
202 liability insurance coverage available through normal marketing
203 channels. An insurer writing motor vehicle liability insurance
204 in this state who fails to comply with such availability
205 requirement as a general business practice violates part IX of
206 chapter 626, and such violation constitutes an unfair method of
207 competition or an unfair or deceptive act or practice involving
208 the business of insurance. An insurer committing such violation
209 is subject to the penalties provided under that part, as well as
210 those provided elsewhere in the insurance code.
211 Section 4. Paragraph (a) of subsection (5) of section
212 627.7407, Florida Statutes, is amended to read:
213 627.7407 Application of the Florida Motor Vehicle No-Fault
214 Law.—
215 (5) No later than November 15, 2007, each motor vehicle
216 insurer shall provide notice of the provisions of this section
217 to each motor vehicle insured who is subject to subsection (1).
218 The notice is not subject to approval by the Office of Insurance
219 Regulation. The notice must clearly inform the policyholder:
220 (a) That beginning on January 1, 2008, Florida law
221 requires the policyholder to maintain personal injury protection
222 ("PIP") insurance coverage and that this insurance pays covered
223 medical expenses for injuries sustained in a motor vehicle crash
224 by the policyholder, passengers, and relatives residing in the
225 policyholder's household unless excluded under s. 627.747.

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226 Section 5. This act shall take effect July 1, 2021.

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CS/HB 379
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 379 Pub. Rec./Economic Development Agencies
SPONSOR(S): Government Operations Subcommittee, Giallombardo
TIED BILLS: IDEN./SIM. BILLS: SB 968

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Tourism, Infrastructure & Energy Subcommittee 16 Y, 2 N Willson Keating

2) Government Operations Subcommittee 15 Y, 1 N, As CS Villa Smith

3) Commerce Committee Willson Hamon

SUMMARY ANALYSIS
The Department of Economic Opportunity (DEO) and other state economic development agencies administer
various loan programs available to eligible small businesses. These loan programs include, among others, the
Rural Community Development Revolving Loan Program, the Small Business Emergency Bridge Loan
Program, and the Black Business Loan Program.

The bill creates a public record exemption for certain information held by an economic development agency
pursuant to the administration of a state or federally funded small business loan program. Specifically, the bill
exempts the following information:
 The home address, telephone number, and e-mail address of a person who submits an application for
a loan on behalf of a business.
 Tax returns.
 Bank and financial statements.
 Credit history information, credit reports, and credit scores.

The bill allows the disclosure of the exempt information held by the economic development agency pursuant to
its administration of a small business loan program in an aggregated and anonymized format.

The bill provides that the public record exemption is subject to the Open Government Sunset Review Act and
will repeal on October 2, 2026, unless the Legislature reviews and reenacts the exemption by that date.

The bill may have a minimal fiscal impact on the state and local governments.

Article I, section 24(c) of the Florida Constitution requires a two-thirds vote of the members present
and voting for final passage of a newly created or expanded public record or public meeting
exemption. The bill provides for a public record exemption; thus, it requires a two-thirds vote for final
passage.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Background

Public Records

Article I, section 24(a) of the Florida Constitution sets forth the state’s public policy regarding access to
government records. This section guarantees every person a right to inspect or copy any public record
of the legislative, executive, and judicial branches of government. The Legislature, however, may
provide by general law for the exemption of records from the requirements of article I, section 24(a) of
the Florida Constitution.1 The general law must state with specificity the public necessity justifying the
exemption2 and must be no broader than necessary to accomplish its purpose.3

Public policy regarding access to government records is addressed further in s. 119.07(1)(a), F.S.,
which guarantees every person a right to inspect and copy any state, county, or municipal record,
unless the record is exempt. Furthermore, the Open Government Sunset Review Act 4 provides that a
public record or public meeting exemption may be created or maintained only if it serves an identifiable
public purpose. In addition, it may be no broader than necessary to meet one of the following purposes:
 Allow the state or its political subdivisions to effectively and efficiently administer a
governmental program, which administration would be significantly impaired without the
exemption.
 Protect sensitive personal information that, if released, would be defamatory or would
jeopardize an individual’s safety; however, only the identity of an individual may be exempted
under this provision.
 Protect trade or business secrets.5

The Open Government Sunset Review Act requires the automatic repeal of a newly created public
record exemption on October 2nd of the fifth year after creation or substantial amendment, unless the
Legislature reenacts the exemption.6

Small Business Loan Programs

The Department of Economic Opportunity (DEO) administers a number of state and federally funded
small business loan programs, including:
 Small Business Emergency Bridge Loan Program
 Rebuild Florida Business Loan Fund7
 Rural Community Development Revolving Loan Program8
 State Small Business Loan Fund9
 Black Business Loan Program10
 Microfinance Loan Program11

Section 288.075, F.S., defines an “Economic development agency” as:
1 Art. I, s. 24(c), FLA. CONST.
2 This portion of a public record exemption is commonly referred to as a “public necessity statement.”
3 Art. I. s. 24(c), FLA. CONST.
4 S. 119.15, F.S.
5
S. 119.15(6)(b), F.S.
6 S. 119.15(3), F.S.
7 DEO, Rebuild Florida Business Loan Fund, https://deosera.force.com/RebuildFloridaBusinessLoanFund/s/loan-

programs?program=florida-resiliency-loan (last visited Feb. 23, 2021).
8 S. 288.065, F.S.
9 DEO, Small Business Loan Program, https://floridajobs.org/community-planning-and-development/Small-and-Minority-Business-

Development-Resources/Small-and-Minority-Business-Programs/small-business-loan-program (last visited Feb. 23, 2021).
10 Ss. 288.7102–.714, F.S.
11 See Microfinance Programs, ch. 288, part XIV.
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 The Department of Economic Opportunity;
 Any industrial development authority created in accordance with part III of chapter 159 or by
special law;
 Space Florida created in part II of chapter 331;
 The public economic development agency of a county or municipality or, if the county or
municipality does not have a public economic development agency, the county or municipal
officers or employees assigned the duty to promote the general business interests or industrial
interests of that county or municipality or the responsibilities related thereto;
 Any research and development authority created in accordance with part V of chapter 159; or
 Any private agency, person, partnership, corporation, or business entity when authorized by the
state, a municipality, or a county to promote the general business interests or industrial interests
of the state or that municipality or county.

Effect of the Bill

This bill creates a public record exemption for certain information held by economic development
agencies as part of its administration of a state or federally funded small business loan program.
Specifically, the bill provides the following information is exempt12 from public record requirements:
 The home address, telephone number, and e-mail address of a person who submits an
application for a loan on behalf of a business.
 Tax returns.
 Bank and financial statements.
 Credit history information, credit reports, and credit scores.

The bill does not prohibit the disclosure of information held by the economic development agency
pursuant to its administration of a small business loan program in an aggregated and anonymized
format.

This bill provides a public necessity statement as required by article I, section 24(c) of the Florida
Constitution. The public necessity statement provides that in order to assess the viability of loans, an
economic development agency may obtain sensitive information, including contact and financial
information, of an applicant or borrower and, if released, the sensitive information could be used by
fraudulent contractors, predatory lenders, thieves, or individuals seeking to impose on the applicant or
borrower.

The bill provides that the exemption is subject to the Open Government Sunset Review Act and will
repeal on October 2, 2026, unless the Legislature reviews and reenacts the exemption by that date.

B. SECTION DIRECTORY:
Section 1 Amends s. 288.075, F.S.; providing an exemption from public records requirements for
certain information held by an economic development agency; providing that such
information may be released in an aggregated and anonymized format; providing for future
legislative review and repeal of the exemption.

Section 2 Provides a public necessity statement as required by the Florida Constitution.

Section 3 Provides an effective date of July 1, 2021.

12 There is a difference between records the Legislature designates exempt from public record requirements and those the Legislature

deems confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain circumstances.
See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review denied 892 So.2d 1015 (Fla. 2004); City of
Rivera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA 1994); Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA 1991). If
the Legislature designates a record as confidential and exempt from public disclosure, such record may not be released by the
custodian of public records, to anyone other than the persons or entities specifically designated in statute. See Op. Att’y Gen. Fla.
(1985).
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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
See fiscal comments.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
See fiscal comments.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.

D. FISCAL COMMENTS:
The bill may have a minimal fiscal impact on economic development agencies responsible for
complying with public records requests and redacting exempt information prior to releasing a record.
Such costs, however, would be absorbed as part of the day-to-day responsibilities of these agencies.

III. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to take action requiring
the expenditure of funds, reduce the authority that counties or municipalities have to raise revenue in
the aggregate, nor reduce the percentage of state tax shared with counties or municipalities.

2. Other:
Vote Requirement

Article I, section 24(c) of the Florida Constitution requires a two-thirds vote of the members present
and voting for final passage of a newly created or expanded public record or public meeting
exemption. The bill creates a public record exemption; thus, it requires a two-thirds vote for final
passage.

Public Necessity Statement

Article I, section 24(c) of the Florida Constitution requires a public necessity statement for a newly
created or expanded public record or public meeting exemption. The bill creates a public record
exemption and includes the required public necessity statement.

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Breadth of Exemption

Article 1, section 24(c) of the Florida Constitution requires a newly created or expanded public record
or public meeting exemption to be no broader than necessary to accomplish the stated purpose of
the law.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 17, 2021, the Government Operations Subcommittee adopted two amendments and reported the bill
favorably as a committee substitute. The first amendment corrected a reference in the bill from section to
subsection. The second amendment revised the public necessity statement to align with the information
exempted in the bill.

This analysis is drafted to the committee substitute as passed by the Government Operations Subcommittee.

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 379 2021

1 A bill to be entitled
2 An act relating to public records; amending s.
3 288.075, F.S.; providing an exemption from public
4 records requirements for certain information held by
5 an economic development agency; providing that such
6 information may be released in an aggregated and
7 anonymized format; providing for future legislative
8 review and repeal of the exemption; providing a
9 statement of public necessity; providing an effective
10 date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Subsection (7) of section 288.075, Florida
15 Statutes, is renumbered as subsection (8), and a new subsection
16 (7) is added to that section, to read:
17 288.075 Confidentiality of records.—
18 (7) LOAN PROGRAMS.—
19 (a) The following information held by an economic
20 development agency pursuant to its administration of a state or
21 federally funded small business loan program is exempt from s.
22 119.07(1) and s. 24(a), Art. I of the State Constitution:
23 1. The home address, telephone number, and e-mail address
24 of a person who submits an application for a loan on behalf of a
25 business.

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 379 2021

26 2. Tax returns.
27 3. Bank and financial statements.
28 4. Credit history information, credit reports, and credit
29 scores.
30 (b) This subsection does not prohibit the disclosure of
31 information held by an economic development agency pursuant to
32 its administration of a small business loan program in an
33 aggregated and anonymized format.
34 (c) This subsection is subject to the Open Government
35 Sunset Review Act in accordance with s. 119.15 and shall stand
36 repealed on October 2, 2026, unless reviewed and saved from
37 repeal through reenactment by the Legislature.
38 Section 2. The Legislature finds that it is a public
39 necessity that the home address, telephone number, and e-mail
40 address of a person who submits an application for a loan on
41 behalf of a business; tax returns; bank and financial
42 statements; and credit history information, credit reports, and
43 credit scores held by an economic development agency pursuant to
44 its administration of any state or federally funded small
45 business loan program be made exempt from s. 119.07(1), Florida
46 Statutes, and s. 24(a), Article I of the State Constitution. In
47 order to assess the viability of loans, an economic development
48 agency may obtain sensitive information of an applicant or
49 borrower, including certain contact and financial information.
50 If released, the sensitive information could be used by

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CS/HB 379 2021

51 fraudulent contractors, predatory lenders, thieves, or
52 individuals seeking to impose on the applicant or borrower.
53 Therefore, it is necessary that sensitive information held by an
54 economic development agency pursuant to its administration of
55 any state or federally funded small business loan program be
56 protected to ensure that applicants and borrowers are not
57 harassed, intimidated, or potentially defrauded. The Legislature
58 finds the harm that may result from the release of such
59 sensitive information outweighs the public benefit that may be
60 derived from the disclosure of the information.
61 Section 3. This act shall take effect July 1, 2021.

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CS/HB 619
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 619 Pub. Rec./Application for a De Novo Banking Charter
SPONSOR(S): Insurance & Banking Subcommittee, Barnaby
TIED BILLS: IDEN./SIM. BILLS: CS/SB 512

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee 11 Y, 5 N, As CS Hinshelwood Luczynski

2) Government Operations Subcommittee 12 Y, 1 N Roth Smith

3) Commerce Committee Hinshelwood Hamon

SUMMARY ANALYSIS
The Office of Financial Regulation (OFR) regulates banks, credit unions, other financial institutions, finance
companies, and the securities industry. In order to apply for authority to organize a new state-chartered bank,
the proposed directors must file a written application with the OFR. The application includes such information
as the name, residence, and occupation of each proposed director; the proposed corporate name; the
community, including the street and number, if available, where the principal office of the proposed bank is to
be located; the total initial capital; the proposed business plan; and pro forma financial statements. Additionally,
each proposed executive officer, director, and major shareholder must complete and submit detailed
biographical and financial information, including but not limited to names, home addresses, current and past
employment, and statements of assets, liabilities, and total net worth. The OFR utilizes this information to
ascertain whether the proposed directors and executives have the kind of experience, ability, standing, and
reputation that indicates a reasonable promise of successful bank operation.

While some existing public record exemptions may apply to certain records received by the OFR pursuant to
an application to organize a new bank, current statutes do not provide a public record exemption specifically
directed at such applications. Presently, with the exception of some material for which the applicant may claim
trade secret status, the majority of information on an application is subject to public inspection and copying.

The bill creates a public record exemption for information received by the OFR pursuant to an application for
authority to organize a new state bank and makes the following information confidential and exempt: personal
financial information, specified identification numbers, books and records of a current or proposed financial
institution, personal identifying information of specified individuals, and the proposed bank’s business plan and
supporting documentation. Existing statutory provisions would permit the release of the information for certain
purposes and to certain persons, such as furnishing information to other agencies responsible for the
regulation of financial institutions and reporting suspected criminal activity to law enforcement. The exemption
created in the bill only provides protection for records and information that are not otherwise public record.
Upon approval of an application, the OFR issues a bank charter that is a public record and contains the names
of the bank’s officers and board of directors.

The bill may have a minimal negative fiscal impact on state government. The bill has an indeterminate but
likely positive impact on the private sector.

Article I, s. 24(c) of the Florida Constitution requires a two-thirds vote of the members present and
voting for final passage of a newly created public record or public meeting exemption. The bill creates
a public record exemption; thus, it requires a two-thirds vote for final passage.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:

Background

Public Records

Article I, s. 24(a) of the Florida Constitution sets forth the state’s public policy regarding access to
government records. This section guarantees every person a right to inspect or copy any public record
of the legislative, executive, and judicial branches of government. The Legislature, however, may
provide by general law for the exemption of records from the requirements of article I, section 24(a).1
The general law must state with specificity the public necessity justifying the exemption and must be no
more broad than necessary to accomplish its purpose.2

Public policy regarding access to government records is addressed further in the Florida Statutes.
Section 119.07(1), F.S., guarantees every person a right to inspect and copy any state, county, or
municipal record. Furthermore, the Open Government Sunset Review Act3 provides that a public record
or public meeting exemption may be created or maintained only if it serves an identifiable public
purpose. In addition, it may be no broader than is necessary to meet one of the following purposes:
 Allow the state or its political subdivisions to effectively and efficiently administer a
governmental program, which administration would be significantly impaired without the
exemption.
 Protect sensitive personal information that, if released, would be defamatory or would
jeopardize an individual’s safety; however, only the identity of an individual may be exempted
under this provision.
 Protect trade or business secrets.4

The Open Government Sunset Review Act requires the automatic repeal of a newly created exemption
on October 2nd of the fifth year after creation or substantial amendment, unless the Legislature
reenacts the exemption.5

Office of Financial Regulation (OFR)

The OFR regulates banks, credit unions, other financial institutions, finance companies, and the
securities industry.6 The OFR’s Division of Financial Institutions charters, licenses, and regulates
various entities that engage in financial institution business in Florida, in accordance with the financial
institutions codes (Codes) and the rules promulgated thereunder.7 The specific chapters under the
Codes are:
 Chapter 655, F.S. – Financial Institutions Generally
 Chapter 657, F.S. – Credit Unions
 Chapter 658, F.S. – Banks and Trust Companies
 Chapter 660, F.S. – Trust Business
 Chapter 662, F.S. – Family Trust Companies
 Chapter 663, F.S. – International Banking
 Chapter 665, F.S. – Capital Stock Associations
 Chapter 667, F.S. – Savings Banks

1 Art. I, s. 24(c), Fla. Const.
2 Art. I, s. 24(c), Fla. Const.
3 S. 119.15, F.S.
4 S. 119.15(6)(b), F.S.
5 S. 119.15(3), F.S.
6 S. 20.121(3)(a)2., F.S.
7 Chs. 655, 657, 658, 660, 662, 663, 665, and 667, F.S.; chs. 69U-100 through 69U-162, F.A.C.
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As of June 30, 2020, the Division of Financial Institutions regulates 197 financial institutions:8
 69 banks
 66 credit unions
 21 international bank offices
 15 trust companies
 16 family trust companies
 10 qualified limited service affiliates

Regulation of Banks

Under the dual banking system in the United States, banks may be chartered under either state or
federal law:
 State-chartered banks are chartered under the laws of the state in which the bank is
headquartered. State-chartered banks have both a state regulator, which for banks chartered by
the state of Florida is the OFR, and a federal regulator. The primary federal regulator for state
banks that are members of the Federal Reserve System is the Board of Governors of the
Federal Reserve System (FRB), and the primary federal regulator for non-member state banks
is the Federal Deposit Insurance Corporation (FDIC).9
 National banks are chartered by the Office of the Comptroller of the Currency (OCC) under the
National Bank Act.10 As such, the OCC is the primary federal regulator for national banks.11

Confidential Treatment of Applications to Charter a National Bank

The federal Freedom of Information Act (FOIA)12 sets forth the process for obtaining federal agency
records, unless the records or any portion thereof are protected from disclosure by one of the FOIA’s
nine exemptions or by one of its three special law enforcement record exclusions. The OCC has set
forth its policies regarding the availability of information under FOIA, as well as procedures for
requesting information, within 12 CFR Part 4, Subpart B. Under the OCC’s FOIA regulations, the
following records, or portions thereof, are exempt from disclosure:13
1) A record that is specifically authorized, under criteria established by an executive order, to be
kept secret in the interest of national defense or foreign policy, and that is properly classified
pursuant to that executive order;
2) A record relating solely to the internal personnel rules and practices of an agency;
3) A record specifically exempted from disclosure by statute (other than 5 U.S.C. § 552b), provided
that the statute requires that the matters be withheld from the public in such a manner as to
leave no discretion on the issue; establishes particular criteria for withholding, or refers to
particular types of matters to be withheld; and, if enacted after the date of enactment of the
OPEN FOIA Act of 2009, specifically cites to 5 U.S.C. § 552(b)(3);
4) A record that is privileged or contains trade secrets, or commercial or financial information,
furnished in confidence, that relates to the business, personal, or financial affairs of any
person;14
5) An intra-agency or interagency memorandum or letter not routinely available by law to a private
party in litigation, including memoranda, reports, and other documents prepared by OCC
employees, and records of deliberations and discussions at meetings of OCC employees,
provided that the deliberative process privilege shall not apply to records created 25 years or
more before the date on which the records were requested;
6) A personnel, medical, or similar record, including a financial record, or any portion thereof,
where disclosure would constitute a clearly unwarranted invasion of personal privacy;

8 Office of Financial Regulation, Fast Facts (2021 ed.), https://www.flofr.com/sitePages/documents/FastFacts.pdf.
9 12 U.S.C. § 1813(q).
10 12 U.S.C. § 38.
11 12 U.S.C. § 1813(q).
12 5 U.S.C. § 552 et. seq.
13 12 C.F.R. § 4.12(b).
14 Notice requirements regarding disclosure of confidential commercial information are contained in 12 C.F.R. § 4.16.
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7) A record or information compiled for law enforcement purposes, but only to the extent that the
OCC reasonably believes that producing the record or information may:
i. Interfere with enforcement proceedings;
ii. Deprive a person of the right to a fair trial or an impartial adjudication;
iii. Constitute an unwarranted invasion of personal privacy;
iv. Disclose the identity of a confidential source, including a state, local, or foreign agency
or authority, or any private institution that furnished information on a confidential basis;
v. Disclose information furnished by a confidential source, in the case of a record or
information compiled by a criminal law enforcement authority in the course of a criminal
investigation, or by an agency conducting a lawful national security intelligence
investigation;
vi. Disclose techniques and procedures for law enforcement investigations or prosecutions,
or disclose guidelines for law enforcement investigations or prosecutions if such
disclosure reasonably could be expected to risk circumvention of the law; or
vii. Endanger the life or physical safety of any individual;
8) A record contained in or related to an examination, operating, or condition report prepared by,
on behalf of, or for the use of the OCC or any other agency responsible for regulating or
supervising financial institutions; and
9) A record containing or relating to geological and geophysical information and data, including
maps, concerning wells.

An applicant submitting information to the OCC may request that specific information be treated as
confidential when the materials are submitted.15 If the OCC does not consider the information to be
confidential, the OCC may include that information in the public file after providing notice to the
submitter.16 In addition, the OCC may, at its own initiative, determine that certain information should be
treated as confidential and withhold that information from the public file.17 While a filing is pending with
the OCC, the OCC licensing office may provide the public portion of a filing to any person who requests
it.18 The public file consists of those portions of the filing, supporting data, and supplementary
information that was submitted by the applicant and by interested persons and not afforded confidential
treatment.19

An applicant is encouraged to request confidential treatment for portions of a filing containing
personally identifiable information (PII).20 The term “PII” refers to information that can be used to
distinguish or trace an individual’s identity, either alone or when combined with other information that is
linked or linkable to a specific individual.21 Examples of PII include an individual’s first name or first
initial and last name, social security number, passport number, credit card numbers, clearances, bank
numbers, biometrics (for example, fingerprints), date or place of birth, mother’s maiden name, or
medical data.22

Each organizing group must disclose its proposed CEO to the OCC at the time the group files the
charter application.23 If the proposed CEO wants to have his or her name withheld from the public until
the OCC grants preliminary conditional approval, the organizers should:24

15 Office of the Comptroller of the Currency, Comptroller’s Licensing Manual: General Policies and Procedures (Oct. 2019)

at 4, https://www.occ.gov/publications-and-resources/publications/comptrollers-licensing-manual/files/licensing-booklet-
general-policies-and-procedures.html (last visited Mar. 19, 2021).
16 Id.
17 Id.
18 Id.
19 Id. at 6.
20 Id. at 4.
21 Id.
22 Id.
23 Office of the Comptroller of the Currency, Comptroller’s Licensing Manual: Charters (Oct. 2019) at 14-15,

https://www.occ.gov/publications-and-resources/publications/comptrollers-licensing-manual/files/licensing-booklet-
charters.html (last visited Mar. 19, 2021).
24 Id.
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 Include a request for confidential treatment with the materials submitted in the charter
application;
 Provide support for their request that disclosure would constitute an unwarranted invasion of
personal privacy under exemption six of FOIA25 or result in substantial competitive harm to the
organizers or the proposed CEO under exemption four of FOIA;26
 List in the application the criteria that were used in the selection process;
 Provide a detailed description of the person’s background, experience, and qualifications in the
public portion of the application that is sufficiently specific to permit matching the application
information with the person once his or her identity is disclosed; and
 Discuss the proposed terms of employment for the CEO, including compensation and benefits.

Formation of a De Novo (New) State-Chartered Bank

In order to apply for authority to organize a new state-chartered bank, the proposed directors must file a
written application with the OFR on form OFR-U-1.27 The application includes such information as the
name, residence, and occupation of each proposed director; the proposed corporate name; the
community, including the street and number, if available, where the principal office of the proposed
bank is to be located; the total initial capital; the proposed business plan; and pro forma financial
statements.28 Additionally, each proposed executive officer, director, and major shareholder must
complete and submit an Interagency Biographical and Financial Report, Form OFR-U-10.29 This form
requires extensive personal identification information and personal financial information, including but
not limited to names, home addresses, current and past employment, and statements of assets,
liabilities, and total net worth.

Within 21 days after receipt of an application, the OFR must file notice of the application in the Florida
Administrative Register, and any person may request a hearing within 21 days after publication of the
notice.30 If a hearing is requested, the applicant must publish at its own expense a notice of the hearing
in a newspaper of general circulation in the area affected by the application.31

The OFR utilizes the information contained in the application in order to make an investigation of:32
1) The character, reputation, financial standing, business experience, and business qualifications
of the proposed officers and directors.
2) The need for bank facilities or additional bank facilities, as the case may be, in the primary
service area where the proposed bank is to be located.
3) The ability of the primary service area to support the proposed bank and all other existing bank
facilities in the primary service area.

After making such investigation, the OFR must approve an application if it finds the following:33
1) Local conditions indicate reasonable promise of successful operation for the proposed state
bank.
2) The proposed capitalization is adequate, but at least $8 million.
3) The proposed capital structure is in such form as the OFR may require, subject to certain
minimum requirements.
4) Regarding officers and directors:
a. The proposed officers have sufficient financial institution experience, ability, standing,
and reputation and the proposed directors have sufficient business experience, ability,
standing, and reputation to indicate reasonable promise of successful operation.

25 12 C.F.R. § 4.12(b)(6).
26 12 C.F.R. § 4.12(b)(4).
27 S. 658.19(1), F.S.; rule 69U-105.202(1), F.A.C. The form is available at

https://www.flofr.com/sitePages/CommercialBanks.htm.
28 Id.
29 Id.
30 S. 120.80(3)(a)1., F.S.
31 Id.
32 S. 658.20(1), F.S.
33 s. 658.21, F.S.
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b. None of the proposed officers or directors has been convicted of, or pled guilty or nolo
contendere to, any violation of s. 655.50, F.S., relating to the control of money
laundering and terrorist financing; ch. 896, F.S., relating to offenses related to financial
institutions; or similar state or federal law.
c. At least two of the proposed directors who are not also proposed officers have had at
least one year of direct experience as an executive officer, regulator, or director of a
financial institution within the five years before the date of the application. However, if
the applicant demonstrates that at least one of the proposed directors has very
substantial experience as an executive officer, director, or regulator of a financial
institution more than five years before the date of the application, the OFR may allow the
applicant to have only one director who has direct financial institution experience within
the last five years.
d. The proposed president or chief executive officer must have had at least one year of
direct experience as an executive officer, director, or regulator of a financial institution
within the last five years.
5) The corporate name of the proposed state bank is approved by the OFR.
6) Provision has been made for suitable quarters at the location in the application.

Upon approval of an application, the OFR issues a bank charter that is a public record and contains the
names of the bank’s officers and board of directors. The names of bank shareholders would continue to
receive confidential and exempt treatment pursuant to s. 655.057(2) and (8), F.S.34

In 2018, the OFR received its first two banking applications since 2009. Three applications were
received annually in 2019 and 2020.35 Based on data provided by the OFR, the chart below depicts the
new bank application activity since 2001 for Florida.

Number of New Banking Number of New Banks
Year Applications Opened
2001 8 11
2002 11 8
2003 13 10
2004 19 16
2005 25 18
2006 21 18
2007 12 18
2008 6 7
2009 2 2
2010 0 0
2011 0 0
2012 0 0
2013 0 0
2014 0 0
2015 0 0
2016 0 0
2017 0 0
2018 2 1
2019 3 0
2020 3 1

Current Public Record Exemptions Related to Financial Institutions

34 However, the name of a foreign national who proposes to own or control 10 percent or more of any class of a bank’s

voting securities, would become public pursuant to s. 120.80(3)(a)4., F.S.
35 Id.
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Presently, s. 655.057, F.S., contains a number of public record exemptions for certain records relating
to OFR’s regulation of financial institutions:
 Subsection 655.057(1), F.S., makes confidential and exempt records and information relating to
active investigations. The records remain confidential and exempt after the investigation is
completed or ceases to be active to the extent disclosure would jeopardize the integrity of
another active investigation, impair the safety and soundness of the financial institution, reveal
personal financial information, reveal the identity of a confidential source, defame or cause
unwarranted damage to the good name or reputation of an individual or jeopardize the safety of
an individual, or reveal investigative techniques or procedures.
 Subsection 655.057(2), F.S., makes confidential and exempt reports of examinations,
operations, or condition, including working papers, or portions thereof, prepared by, or for the
use of, the OFR or any other state agency or federal agency responsible for the regulation or
supervision of financial institutions. However, this exemption provides for the following release
of such reports:
o The reports may be released to specified persons such as the financial institution under
examination (or its holding company) and certain proposed acquirers of a financial
institution.
o The reports must be released within one year after the appointment of a liquidator,
receiver, or conservator to the financial institution, except that portions of the reports
which identify specified individuals such as depositors and stockholders remain
confidential and exempt.
 Subsection 655.057(3), F.S., makes confidential and exempt the OFR’s informal enforcement
actions to the extent that disclosure would jeopardize the integrity of another active
investigation, impair the safety and soundness of the financial institution, reveal personal
financial information, reveal the identity of a confidential source, defame or cause unwarranted
damage to the good name or reputation of an individual or jeopardize the safety of an individual,
or reveal investigative techniques or procedures.
 Subsection 655.057(4), F.S., makes confidential and exempt trade secrets, as defined in s.
688.002, F.S., which comply with s. 655.0591, F.S., and are held by the OFR in accordance
with its statutory duties.
 Subsections 655.057(7) and (8), F.S., make confidential and exempt a list of stockholders or
members of a financial institution.

Subsections 655.057(5) and (6), F.S., permit the following release of records or information which
otherwise fall under exemptions provided in the statute:
 Publishing specified reports that are required to be submitted to the OFR or that are required by
applicable federal statutes or regulations to be published.
 Furnishing records or information to any other state, federal, or foreign agency responsible for
the regulation or supervision of financial institutions.
 Disclosing or publishing summaries of the condition of financial institutions and general
economic and similar statistics and data, provided that the identity of a particular financial
institution is not disclosed.
 Reporting any suspected criminal activity, with supporting documents and information, to
appropriate law enforcement and prosecutorial agencies.
 Furnishing information upon request to the Chief Financial Officer or the Division of Treasury of
the Department of Financial Services regarding the financial condition of any financial institution
that is, or has applied to be, designated as a qualified public depository pursuant to ch. 280,
F.S.
 Furnishing information to Federal Home Loan Banks regarding its member institutions pursuant
to an information sharing agreement between the Federal Home Loan Banks and the OFR.
 Providing records or information pursuant to an order of a court or an administrative law judge
or pursuant to a legislative subpoena, according to specified procedures and restrictions.

While some of the above public record exemptions, or other public record exemptions provided in ch.
119, F.S., may apply to certain records received by the OFR pursuant to an application to organize a
new bank, current statutes do not provide a public record exemption specifically directed at such
applications. Presently, with the exception of some material for which the applicant may claim trade
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secret status pursuant to s. 655.0591, F.S., all of the information received by the OFR on form OFR-U-
1 is subject to public inspection and copying. Additionally, significant portions of the information
received by the OFR on form OFR-U-10 is subject to public inspection and copying, with only certain
information, such as social security numbers, passport numbers, home county identification numbers,
immigration file numbers, and certain financial disclosures being exempted from public records
requirements.

Effect of the Bill

The bill creates a public record exemption within s. 655.057, F.S., for certain information received by
the OFR pursuant to an application for authority to organize a new state bank. Specifically, the bill
provides that, except for those portions that are otherwise public record, the following information
received by the OFR pursuant to an application for authority to organize a new state bank under ch.
658, F.S., is confidential and exempt36 from public record requirements:
 Personal financial information.
 A driver license number, a passport number, a military identification number, or any other similar
number issued on a government document used to verify identity.
 Books and records of a current or proposed financial institution.
 The personal identifying information of a shareholder, subscriber, proposed officer, or proposed
director of the proposed state bank when such information has been marked by the applicant as
confidential when submitted to the OFR. The term "personal identifying information" means
names, home addresses, e-mail addresses, telephone numbers, names of relatives, work
experience, professional licensing and educational backgrounds, and photographs.
 The proposed state bank's business plan and any attached supporting documentation when
such information has been marked by the applicant as confidential when submitted to the OFR.

Section 655.057(12)(c), F.S., currently defines “personal financial information” to mean:
 Information relating to the existence, nature, source, or amount of a person’s personal income,
expenses, or debt.
 Information relating to a person’s financial transactions of any kind.
 Information relating to the existence, identification, nature, or value of a person’s assets,
liabilities, or net worth.

Although the information covered by this new public record exemption is confidential and exempt,
existing provisions of s. 655.057, F.S., permit the following release of records or information which
otherwise fall under exemptions provided in the statute:
 Publishing specified reports that are required to be submitted to the OFR or that are required by
applicable federal statutes or regulations to be published.
 Furnishing records or information to any other state, federal, or foreign agency responsible for
the regulation or supervision of financial institutions.
 Disclosing or publishing summaries of the condition of financial institutions and general
economic and similar statistics and data, provided that the identity of a particular financial
institution is not disclosed.
 Reporting any suspected criminal activity, with supporting documents and information, to
appropriate law enforcement and prosecutorial agencies.
 Furnishing information upon request to the Chief Financial Officer or the Division of Treasury of
the Department of Financial Services regarding the financial condition of any financial institution
that is, or has applied to be, designated as a qualified public depository pursuant to ch. 280,
F.S.

36 There is a difference between records the Legislature designates exempt from public record requirements and those

the Legislature deems confidential and exempt. A record classified as exempt from public disclosure may be disclosed
under certain circumstances. See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review
denied 892 So.2d 1015 (Fla. 2004); City of Rivera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA 1994); Williams v. City
of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA 1991). If the Legislature designates a record as confidential and exempt
from public disclosure, such record may not be released by the custodian of public records, to anyone other than the
persons or entities specifically designated in statute. See Op. Att’y Gen. Fla. 85-62 (1985).
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 Furnishing information to Federal Home Loan Banks regarding its member institutions pursuant
to an information sharing agreement between the Federal Home Loan Banks and the OFR.
 Providing records or information pursuant to an order of a court or an administrative law judge
or pursuant to a legislative subpoena, according to specified procedures and restrictions.

As previously stated, the exemption created in the bill only provides protection for records and
information that are not otherwise public record. Upon approval of an application, the OFR issues a
bank charter that is a public record and contains the names of the banks officers and members of the
board of directors. The names of bank shareholders would continue to receive confidential and exempt
treatment pursuant to s. 655.057(2) and (8), F.S.37

The bill provides that the public record exemption is subject to the Open Government Sunset Review
Act and will repeal on October 2, 2026, unless the Legislature reviews and reenacts the exemption by
that date. It also provides a statement of public necessity as required by the Florida Constitution.

B. SECTION DIRECTORY:
Section 1. Amends s. 655.057, F.S., relating to records; limited restrictions upon public access.

Section 2. Provides a statement of public necessity.

Section 3. Provides an effective date of July 1, 2021.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
See Fiscal Comments.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The proposed public record exemption may encourage and attract the formation of new banks as
Florida-chartered institutions, in which case the bill would have a positive impact on investment,
employment, economic growth, and consumer access to financial services. However, the impact to the
private sector is indeterminate.

D. FISCAL COMMENTS:
The bill may have a minimal fiscal impact on agencies because agency staff responsible for complying
with public records requests may require training related to the creation of the public record exemption.
Agencies could incur costs associated with redacting the confidential and exempt information prior to
releasing a record. The costs, however, would be absorbed by existing resources, as they are part of
the day-to-day responsibilities of agencies.

37 See supra note 34.
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III. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.

2. Other:
Vote Requirement
Article I, s. 24(c) of the Florida Constitution requires a two-thirds vote of the members present and
voting for final passage of a newly created or expanded public record exemption. The bill creates a
public record exemption; thus, it requires a two-thirds vote for final passage.

Public Necessity Statement
Article I, s. 24(c) of the Florida Constitution requires a public necessity statement for a newly created
or expanded public record exemption. The bill creates a public record exemption; therefore, it
includes a public necessity statement.

Breadth of Exemption
Article I, s. 24(c) of the Florida Constitution requires a newly created public record or public meeting
exemption to be no broader than necessary to accomplish the stated purpose of the law. This bill
creates a public record exemption for certain information received by the OFR pursuant to an
application for authority to organize a new state bank. The purpose of the exemption is to protect
sensitive personal, financial, and business information that the OFR receives in conjunction with its
duties related to the review of applications for the organization or establishment of new state banks.
As such, the bill appears to be no broader than necessary to accomplish its purpose.

B. RULE-MAKING AUTHORITY:
The bill does not confer rulemaking authority nor require the promulgation of rules.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 4, 2021, the Insurance & Banking Subcommittee considered one amendment, which was adopted,
and reported the bill favorably as a committee substitute. The committee substitute makes the following
changes to the bill:
 Aligns the House bill with the Senate bill.
 More clearly identifies the categories of records and information covered by the exemption, which
makes the exemption more feasible for the record custodian.
 More completely covers the sensitive personal, financial, and business information contained in an
application to establish a new state-chartered bank.
 Conforms the statement of public necessity to the changes made to the exemption.

The staff analysis has been updated to reflect the committee substitute.

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 619 2021

1 A bill to be entitled
2 An act relating to public records; amending s.
3 655.057, F.S.; providing an exemption from public
4 records requirements for certain information received
5 by the Office of Financial Regulation pursuant to an
6 application for authority to organize a new state
7 bank; defining the term "personal identifying
8 information"; providing for future legislative review
9 and repeal of the exemption; providing a statement of
10 public necessity; providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Present subsections (5) through (14) of section
15 655.057, Florida Statutes, are redesignated as subsections (6)
16 through (15), respectively, a new subsection (5) is added to
17 that section, and present subsection (14) of that section is
18 amended, to read:
19 655.057 Records; limited restrictions upon public access.—
20 (5)(a) Except as otherwise provided in this section and
21 except for those portions that are otherwise public record, the
22 following information received by the office pursuant to an
23 application for authority to organize a new state bank under
24 chapter 658 is confidential and exempt from s. 119.07(1) and s.
25 24(a), Art. I of the State Constitution:

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CS/HB 619 2021

26 1. Personal financial information.
27 2. A driver license number, a passport number, a military
28 identification number, or any other similar number issued on a
29 government document used to verify identity.
30 3. Books and records of a current or proposed financial
31 institution.
32 4. The personal identifying information of a shareholder,
33 subscriber, proposed officer, or proposed director of the
34 proposed state bank when such information has been marked by the
35 applicant as confidential when submitted to the office. As used
36 in this subparagraph, the term "personal identifying
37 information" means names, home addresses, e-mail addresses,
38 telephone numbers, names of relatives, work experience,
39 professional licensing and educational backgrounds, and
40 photographs.
41 5. The proposed state bank's business plan and any
42 attached supporting documentation when such information has been
43 marked by the applicant as confidential when submitted to the
44 office.
45 (b) This subsection is subject to the Open Government
46 Sunset Review Act in accordance with s. 119.15 and is repealed
47 on October 2, 2026, unless reviewed and saved from repeal
48 through reenactment by the Legislature.
49 (15)(14) Subsections (1), (2), (6), and (10) (5), and (9)
50 are subject to the Open Government Sunset Review Act in

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51 accordance with s. 119.15 and are repealed on October 2, 2022,
52 unless reviewed and saved from repeal through reenactment by the
53 Legislature.
54 Section 2. The Legislature finds that it is a public
55 necessity that certain information received by the Office of
56 Financial Regulation pursuant to an application for authority to
57 organize a new state bank under chapter 658, Florida Statutes,
58 be made confidential and exempt from s. 119.07(1), Florida
59 Statutes, and s. 24(a), Article I of the State Constitution to
60 the extent that disclosure would reveal personal financial
61 information; reveal a driver license number, a passport number,
62 a military identification number, or any other similar number
63 issued on a government document used to verify identity; reveal
64 books and records of a current or proposed financial
65 institution; reveal the personal identifying information of a
66 shareholder, subscriber, proposed officer, or proposed director;
67 or reveal a proposed state bank's business plan and any attached
68 supporting documentation. The office may receive sensitive
69 personal, financial, and business information in conjunction
70 with its duties related to the review of applications for the
71 organization or establishment of new state banks. An exemption
72 from public records requirements is necessary to ensure the
73 office's ability to administer its regulatory duties while
74 preventing unwarranted damage to the proposed state bank or the
75 shareholders, subscribers, proposed officers, or proposed

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76 directors of the proposed state bank or other financial
77 institutions in this state. The release of information that
78 could lead to the identification of an individual involved in
79 the potential establishment of a new state bank may subject such
80 individual to retribution and jeopardize his or her current
81 employment with, or participation in the affairs of, another
82 financial institution. Thus, the public availability of such
83 information has a chilling effect on the establishment of new
84 state banks. Further, the public availability of the books and
85 financial records of a current or proposed financial institution
86 in this state presents an unnecessary risk of harm to the
87 business operations of such institution. Finally, the public
88 availability of a proposed state bank's business plan may cause
89 competitive harm to such bank's future business operations and
90 presents an unfair competitive advantage for existing financial
91 institutions that are not required to release such information.
92 Section 3. This act shall take effect July 1, 2021.

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hb0619-01-c1
HB 859
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 859 Expiration of Permits and Agreements During Natural Emergencies
SPONSOR(S): Grant
TIED BILLS: IDEN./SIM. BILLS: SB 912

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Pandemics & Public Emergencies Committee 16 Y, 0 N Nations Dearden

2) Commerce Committee Brackett Hamon

3) State Affairs Committee

SUMMARY ANALYSIS
The State Emergency Management Act endows the Governor with authority to declare a state of emergency. It
also provides that once the Governor issues a state of emergency for a natural emergency the time-periods for
a party to exercise rights under certain permits and other authorized agreements are suspended and extended
(tolled) for the duration of the state of emergency, plus an additional six months. These provisions currently
apply to:

 Development orders issued by local governments;
 Building permits;
 Permits relating to projects affecting surface water resources that are issued by the Department of
Environmental Protection (DEP) or a water management district pursuant to part IV of chapter 373,
F.S.; and
 Buildout dates for developments of regional impact, including any extension of a buildout date that was
previously granted.

HB 859 provides that the time-periods for certain additional permits and authorizations may also be suspended
and extended during a state of emergency for a natural emergency, including:

 Consumptive use water permits issued by DEP or a water management district under Part II of ch. 373,
F.S.; and
 Development agreements and development permits entered into or issued by a local government or
other governmental entity.
o These include development agreements and development permits issued or entered into
pursuant to the Florida Local Government Development Agreement Act.

The bill applies retroactively to emergency declarations issued by the Governor for natural emergencies on or
after March 1, 2020.

The bill does not appear to have a fiscal impact on state or local governments.

The bill provides that it is effective upon becoming a law and applies retroactively.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Background

State Emergency Management Act

The State Emergency Management Act (Act) 1 establishes the framework for how Florida prepares, responds,
and recovers from emergencies and disasters. It confers upon the Governor, the Division of Emergency
Management (Division), and the governing body of each county and municipality certain emergency powers in
the event of emergencies and disasters resulting from natural, technological, or manmade causes to ensure
preparations of the state will be adequate to deal with, reduce vulnerability to, and recover from such
emergencies and disasters; to provide for the common defense and to protect the public peace, health, and
safety; and to preserve the lives and property of the people of the state.2

The Governor, the Division, and counties and municipalities have specific emergency powers and authority
granted to them in the event of an emergency. The individual powers are broad, but also include specific
parameters in which they may be executed.

The Act vests the authority to declare a state of emergency in the Governor.3 The Act authorizes the Governor
to assume or delegate direct operational control over all or any part of emergency management functions in
the event of an emergency. This authority includes issuing executive orders, proclamations, and rules that
have the force and effect of law. The Act specifically authorizes the Governor to use all resources of state
government and counties and municipalities of the state as reasonably necessary to cope with the
emergency.4

Declaring a State of Emergency

Upon the existence of an actual or impending “emergency”, Florida law allows the Governor to declare a state
of emergency through executive order. A state of emergency declaration activates state and local emergency
management plans. The Division coordinates with local governments to provide assistance in the distribution of
necessary supplies, equipment, and other resources to effectively respond to the emergency. The state of
emergency continues until the Governor finds that the threat or danger no longer exists. A state of emergency
lasts for 60 days and may be renewed by executive order at the end of that 60-day period. A state of
emergency may also be terminated by a concurrent resolution of the Florida Legislature.5

Permits

Upon the declaration of an emergency by the Governor for a natural emergency, the period remaining to
exercise the rights under a permit or other authorization is suspended and extended for the duration of the
emergency declaration. Further, the emergency declaration extends the period remaining to exercise the rights
under a permit or other authorization for 6 months in addition to the suspended and extended period. This
applies to the following:
 The expiration of a development order issued by a local government;
 The expiration of a building permit;
 The expiration of a permit relating to projects affecting surface water resources that are issued by the
Department of Environmental Protection or a water management district pursuant to part IV of chapter
373 of F.S.; and

1 Part I of ch. 252, F.S.
2 S. 252.32, F.S.
3 S. 252.36(2), F.S.
4 S. 252.36(5)(b), F.S.
5 S. 252.36(2), F.S.

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 The buildout date of a development of regional impact,6 including any extension of a buildout date that
was previously granted as specified in s. 380.06(7)(c).7

A “natural emergency” is an emergency caused by a natural event, including, but not limited to, a hurricane, a
storm, a flood, severe wave action, a drought, or an earthquake. The Florida Supreme Court has ruled that a
pandemic is a “natural emergency.”8

The holder of a permit or other authorization must notify the issuing authority of the intent to exercise the
suspension and extension provisions within 90 days after the termination of the emergency declaration. The
notice must be in writing and identify the specific permit or other authorization qualifying for extension. It is not
automatic.9

State of Emergencies for Natural Emergencies Issued Since March 2020

On March 9, 2020, Governor DeSantis issued Executive Order 20-52, which declared a state of emergency in
all of Florida in response to the COVID-19 pandemic and its impacts on the state of Florida.10 Executive Order
20-52 has been renewed continuously since March of 2020. The most recent extension was EO 21-45 on
February 26, 2021, and expires on April 26, 2021, unless renewed.11

On September 14, 2020, Governor DeSantis issued Executive Order 20-224, which declared a state of
emergency in response to Hurricane Sally.12 The state of emergency applies to 14 counties.13 Executive Order
20-224 has been renewed continuously since September of 2020. The most recent extension was EO 21-64
on March 10, 2021, and expires on May 9, 2021, unless renewed.14

On November 7, 2020, Governor DeSantis issued Executive Order 20-277, which declared a state of
emergency in response to Tropical Storm Eta. The state of emergency applied to 22 counties. Executive Order
20-277 was renewed on November 18, 2020, and has not been renewed since.15

On July 31, 2020, Governor DeSantis issued Executive Order 20-181, which declared a state of emergency in
response to Hurricane Isaias. The state of emergency applied to 19 counties. Governor DeSantis terminated
Executive Order 20-181 on August 11, 2020.16

Florida Water Resources Act of 1972

Chapter 373 of F.S., known as the Florida Water Resources Act (FWRA), creates a framework for a regulatory
system that governs water rights, uses, planning, and quality control for the state’s water resources. The
FWRA provides that the Florida Department of Environmental Protection (DEP) and the 5 cooperating water

6 A development of regional impact is any development that, because of its character, magnitude, or location, would have a substantial

effect upon the health, safety, or welfare of citizens of more than one county. S. 380.06(1), F.S.
7 S. 252.363(1)(a), F.S.
8 S. 252.34(8), F.S.; See Abramson v. DeSantis, Case No.: SC20-646, 202 WL 3464376 (Fla. June 25, 2020).
9 See AGO 2012-13, available at: http://www.myfloridalegal.com/ago.nsf/Opinions/0DF58A091F0DDBEC852579EB00743D48 (last

visited Mar. 4, 2021).
10 Executive Order 20-52 (Mar. 9, 2020), available at: https://www.flgov.com/wp-content/uploads/orders/2020/EO_20-52.pdf (last visited

Mar. 4, 2021).
11 The state of emergency declared in Executive Order 20-52, as extended by Executive Orders 20-114, 20-166, 20-192, 20-213, 20-

276, and 20-316 will be extended for 60 days following the issuance of this order for the entire State of Florida. See Executive Order
21-45 (Feb. 26, 2021), available at: https://www.flgov.com/wp-content/uploads/orders/2021/EO_21-45.pdf (last visited Mar. 1, 2021).
12 Executive Orders 20-224 (Sep. 14, 2020) and 20-225 (Sep.15, 2021), available at: https://www.flgov.com/wp-

content/uploads/orders/2020/EO_20-225.pdf (last visited Mar. 24, 2021).
13 Executive Order 20-248 (Oct. 1, 2020), https://www.flgov.com/wp-content/uploads/orders/2020/EO_20-248.pdf (last visited Mar. 24,

2021).
14 Executive Order 21-64 (Mar. 10, 2021), available at https://www.flgov.com/wp-content/uploads/orders/2021/EO_21-64.pdf (last

visited Mar. 24, 2021).
15 Executive Orders 20-277 (Nov. 7, 2020), 20-278 (Nov. 11 2020), and 20-295 (Nov. 18, 2020) available at:

https://www.flgov.com/2020-executive-orders/ (last visited Mar. 25, 2021).
16 Executive Orders 20-181 (Jul. 31, 2020) and 20-195 (Aug. 11, 2021) available at: https://www.flgov.com/2020-executive-orders/ (last
visited Mar. 24, 2021);
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management districts17 partner to ensure the continued water supply, water quality, flood protection and
floodplain management, and protecting natural systems.

Consumptive Water Use Permits

Part II of Chapter 373, F.S. creates a framework for permitting consumptive use of water projects.
Consumptive water uses are regulated by DEP as well as the water management district with proper
jurisdiction.

A consumptive use permit (CUP), also known as a water use permit (WUP), allows the holder to withdraw a
specified amount of water from the ground, canals, lakes, or rivers, for reasonable-beneficial uses that will not
interfere with any presently existing legal use of water, and is consistent with the public interest. The water
removed may be used for numerous purposes including but not limited to, drinking water, agriculture, and golf
course irrigation. Water used for domestic purposes, home irrigation, and firefighting are not included under a
CUP/WUP. CUP/WUPs require water conservation to prevent wasteful uses, require reclaimed water instead
of higher-quality groundwater where appropriate, and set limits on the amount of water that can be
withdrawn.18

There are projects that require a CUP/WUP that cannot be issued until a permit has been issued under Part IV
of ch. 373, F.S. and a recommendation of approval by staff of the issuing agency has been received.19

CUP/WUPs are granted for a period of 20 years if:20
 requested by the applicant; and
 there is sufficient data to provide reasonable assurance that the conditions for permit issuance will be
met for the duration of the permit.

If either of these requirements are not met, a CUP/WUP with a shorter duration may be issued to reflect the
period for which reasonable assurances can be provided. The DEP and water management districts may
determine the duration of permits based upon a reasonable system of classification according to the water
source, type of use, or both.21

DEP or a water management district may authorize a CUP/WUP for a duration of up to 50 years in the case of
a municipality, other governmental body, public works, or public service corporation where such a period is
required to provide for the retirement of bonds for the construction of waterworks and waste disposal
facilities.22

CUP/WUPs approved by the state after July 1, 2013, for the development of alternative water supplies23 must
have a term of at least 30 years if there is sufficient data to provide reasonable assurance that the conditions
for permit issuance will be met for the duration of the permit.24

DEP or a water management district may also authorize a CUP/WUP for a duration of up to 50 years to
municipalities, counties, special districts, regional water supply authorities, multijurisdictional water supply
entities, and publicly or privately owned utilities when a landowner has made extraordinary land contributions

17 Florida’s five districts are the Northwest Florida Water Management District, the Suwannee River Water Management District, the St.

Johns River Water Management District, the Southwest Florida Water Management District, and the South Florida Water Management
District. See Florida Department of Environmental Protection, Water Management Districts, available at: https://floridadep.gov/water-
policy/water-policy/content/water-management-districts (last visited Mar. 4, 2021).
18 See South Florida Water Management District, Consumptive Water Use Permits, https://www.sfwmd.gov/doing-business-with-

us/permits/water-use-permits (last visited Mar. 4, 2021).
19 Florida Department of Environmental Protection, 2021 Florida Water Plan, available at:

https://fdep.maps.arcgis.com/apps/Cascade/index.html?appid=473b768b4af049bf91b2879b83ea961c. (last visited Mar. 4, 2021).
20 S. 373.236(1), F.S.
21 Id.
22 S. 373.236(3), F.S.
23 S. 373.019(1), F.S.
24 If, within 7 years after the CUP/WUP is granted, the permittee issues bonds to finance the project, completes construction of the

project, and requests an extension of the permit duration, the permit must be extended to expire upon the retirement of such bonds or
30 years after the date construction of the project is complete, whichever occurs later. However, a permit’s duration may not be
extended more than 7 years after the permit’s original expiration date. S. 373.236(5), F.S.
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or funding for an alternative water supply development project, as long as there is sufficient data to provide
reasonable assurance that the conditions for permit issuance will be met for the duration of the permit.25

Management and Storage of Surface Waters

Part IV of Ch. 373, F.S. governs construction and other projects that affect surface water resources. Part IV
authorizes DEP and the water management district with proper jurisdiction to regulate these projects to further
the state’s interest in protecting and maintaining its surface water resources.26

The projects regulated by Part IV of Ch. 373, F.S. are any construction, alteration, operation, maintenance,
abandonment, and removal of any water management system. Water management systems are dams,
impoundments, reservoirs, etc.27 Regulated projects also include any projects that have direct or indirect
effects on surface water resources, such as dredging, filling, canal construction, ditch construction,
impoundments, fill roads, etc. All of these projects are governed by Part IV of Ch. 373, F.S. and fall within the
jurisdiction of DEP and the water management district with proper jurisdiction.

Growth Policy and Land Development Regulation

The Community Planning Act established under Part II of Ch. 163, F.S. governs growth policy and
development in Florida. The Community Planning Act establishes a framework for how local governments plan
for future developments and adopt and amend comprehensive plans for future growth.28 One of the
responsibilities of a local government’s planning procedures is the review and approval of rights related to the
development of real property.

Under the Community Planning Act, a “development permit” is any official action of a local government that has
the effect of permitting the development of land including, but not limited to, building permits, zoning permits,
subdivision approval, rezoning, certifications, special exceptions, and variances.29

A “development order” is issued by a local government and grants, denies, or grants with conditions an
application for a development permit.30

Section 252.363, F.S. provides that upon the declaration of an emergency by the Governor for a natural
emergency, the period remaining to exercise the rights under a development order is suspended and extended
for the duration of the emergency declaration, and extend for an additional 6 months after the Governor ends
the state of emergency.

However, section 252.363, F.S., does not provide that a development permit is suspended and extended when
there is an emergency declaration for a natural emergency. As a result, it is unclear if a development permit is
suspended and extended when there is an emergency declaration for a natural emergency.

Local Government Development Agreements

The Florida Local Government Development Agreement Act31 establishes the framework for development
agreements between local governments and developers. A development agreement is a contract between a
local government and a property owner/developer, which provides the developer with vested rights by freezing
the existing zoning regulations applicable to a property in exchange for public benefits.”32

25 S. 373.236(6), F.S.
26 See Florida Department of Environmental Protection, Division of Water Resource Management, available at:

https://floridadep.gov/water (last visited Mar. 4, 2021).
27 See Environmental Resource Permit Applicant’s Handbook, available at:

https://www.flrules.org/gateway/readRefFile.asp?filename=010_4a--AHI_thruAppendix_D_ADA_3-5-14.doc&refId=3174 (last visited
Mar. 4, 2021).
28 S. 163.3167(1), F.S.
29 S. 163.3164(16), F.S.
30 163.3164(15), F.S.
31 See S. 163.3220-163.3243, F.S.
32 Morgran Co., Inc. v. Orange County, 818 So. 2d 640 (Fla. 5th DCA 2002); 7 Fla. Jur 2d Building, Zoning, and Land Controls § 168

(2019).
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A local government may establish, by ordinance, procedures and requirements for considering and entering
into a development agreement with any person having a legal or equitable interest in real property located
within its jurisdiction.33 A development agreement may provide that the entire agreement, or any phase thereof,
must be commenced or completed within a specific time and must include:34
 Legal description of the land subject to the agreement, and the names of its legal and equitable owners;
 The duration of the agreement;
 The development uses permitted on the land, including population densities, and building intensities
and height;
 A description of public facilities that will service the development, including who shall provide such
facilities; the date any new facilities, if needed, will be constructed; and a schedule to assure public
facilities are available concurrent with the impacts of the development;
 A description of any reservation or dedication of land for public purposes;
 A description of all local development permits approved or needed to be approved for the development
of the land;
 A finding that the development permitted or proposed is consistent with the local government's
comprehensive plan and land development regulations;
 A description of any conditions, terms, restrictions, or other requirements determined to be necessary
by the local government for the public health, safety, or welfare of its citizens; and
 A statement indicating that the failure of the agreement to address a particular permit, condition, term,
or restriction shall not relieve the developer of the necessity of complying with the law governing said
permitting requirements, conditions, term, or restriction.35

Within 14 days after a local government enters into a development agreement, the local government must
record the agreement with the clerk of the circuit court in the county where the local government is located, and
such an agreement is not effective until it is properly recorded.36 A development agreement binds any person
who obtains ownership of a property already subject to an agreement.37

A development agreement may be amended or canceled by mutual consent of the local government and the
developer or by their successors in interest. A development agreement may not last longer than 30 years,
unless it is extended by mutual consent of the local government and the developer.38

Prior to amending, canceling, or extending a development agreement, the local government must hold at least
two public hearings, one of which may be held by a local planning agency. Notice of the public meetings must
be advertised 7 days before each meeting in a newspaper in circulation in the county where the government is
located, and be must be mailed to the affected property owners. The day, time, and place of the second
meeting must be announced at the first meeting.39

Effect of Proposed Changes

The bill amends s. 252.363, F.S. to provide that the time-periods for the following additional permits and
authorizations are subject to suspension and extension during a declared state of emergency for a natural
emergency:

 CUP/WUPs issued by DEP or a water management district with proper jurisdiction under Part II of ch.
373, F.S.; and
 Development agreements and development permits entered into or issued by a local government or
other governmental entity, including development agreements and development permits issued or
entered into pursuant to the Florida Local Government Development Agreement Act.

33 S. 163.3223, F.S; 7 Fla. Jur 2d Building, Zoning, and Land Controls § 168 (2019).
34 S. 163.3227(1) and (2), F.S.; 7 Fla. Jur 2d Building, Zoning, and Land Controls § 168 (2019).
35 7 Fla. Jur. 2d Building, Zoning, and Land Controls s. 168 (2020) (from s. 163.3223, F.S.)
36 S. 163.3239, F.S; 7 Fla. Jur 2d Building, Zoning, and Land Controls § 168 (2019).
37 Commonly referred to as a successor in interest: one who follows another in ownership or control of property and retains the same

rights as the original owner. Black’s Law Dictionary 1473 (8th ed. 2004); s. 163.3239, F.S.
38Ss. 163.3225, 163.3237, and 163.3229, F.S.
39 Id.

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The bill is effective upon becoming a law, and applies retroactively to any declaration of a state of emergency
issued by the Governor for a natural emergency on or after March 1, 2020. The time-periods for such permits
and agreements may be suspended and extended for any state of emergency declared for a natural
emergency on or after March 1, 2020, including the state of emergency Governor DeSantis declared on March
9, 2020, in response to the COVID-19 pandemic.

B. SECTION DIRECTORY:
Section 1: Amends s. 252.363 to provide for additional permits to be eligible under the suspension
and extension provisions during a declared state of emergency.

Section 2: Provides that the bill applies retroactively.

Section 3: Provides that the bill is effective upon becoming a law.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The holders of permits and agreements added to the emergency suspension and extension statute
may see a benefit from having more flexibility to exercise the rights under such permits and
agreements.

D. FISCAL COMMENTS:

None.

III. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have to
raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.

2. Other:
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None.

B. RULE-MAKING AUTHORITY:
Not applicable.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

HB 859 2021

1 A bill to be entitled
2 An act relating to expiration of permits and
3 agreements during natural emergencies; amending s.
4 252.363, F.S.; tolling and extending the expiration of
5 consumptive use water permits and certain development
6 permits and agreements during a natural emergency
7 declared by the Governor; providing retroactive
8 applicability; providing an effective date.
9
10 Be It Enacted by the Legislature of the State of Florida:
11
12 Section 1. Paragraph (a) of subsection (1) of section
13 252.363, Florida Statutes, is amended to read:
14 252.363 Tolling and extension of permits and other
15 authorizations.—
16 (1)(a) The declaration of a state of emergency issued by
17 the Governor for a natural emergency tolls the period remaining
18 to exercise the rights under a permit or other authorization for
19 the duration of the emergency declaration. Further, the
20 emergency declaration extends the period remaining to exercise
21 the rights under a permit or other authorization for 6 months in
22 addition to the tolled period. This paragraph applies to the
23 following:
24 1. The expiration of a development order issued by a local
25 government.

Page 1 of 2

CODING: Words stricken are deletions; words underlined are additions.
hb0859-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

HB 859 2021

26 2. The expiration of a building permit.
27 3. The expiration of a permit issued by the Department of
28 Environmental Protection or a water management district pursuant
29 to parts II and part IV of chapter 373.
30 4. The buildout date of a development of regional impact,
31 including any extension of a buildout date that was previously
32 granted as specified in s. 380.06(7)(c).
33 5. The expiration of a development permit or development
34 agreement authorized by Florida Statutes, including those
35 authorized under the Florida Local Government Development
36 Agreement Act, or issued by a local government or other
37 governmental agency.
38 Section 2. This act applies retroactively to any
39 declaration of a state of emergency issued by the Governor for a
40 natural emergency on or after March 1, 2020.
41 Section 3. This act shall take effect upon becoming a law.

Page 2 of 2

CODING: Words stricken are deletions; words underlined are additions.
hb0859-00
CS/HB 895
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 895 Consumer Finance Loans
SPONSOR(S): Insurance & Banking Subcommittee, Stevenson
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1478

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee 18 Y, 0 N, As CS Hinshelwood Luczynski

2) Commerce Committee Hinshelwood Hamon

SUMMARY ANALYSIS
The Florida Consumer Finance Act in ch. 516, F.S., permits licensed lenders to make secured or unsecured
loans up to $25,000 with a tiered interest rate structure such that the maximum annual interest rate allowed on
each tier decreases as principle amounts increase:
 30 percent on the first $3,000.
 24 percent on principal above $3,000 and up to $4,000.
 18 percent on principal above $4,000 and up to $25,000.

Consumer finance lenders must maintain liquid assets of at least $25,000. The bill authorizes consumer finance
lenders to provide a surety bond, certificate of deposit, or letter of credit of a specified amount in lieu of
maintaining liquid assets.

Consumer finance lenders are permitted to charge a borrower certain fees, including up to $25 for investigating
the credit and character of the borrower. The exclusion of “prepayment penalties” from the list of permissible
fees implies that consumer finance lenders are prohibited from charging prepayment penalties. The bill provides
an express prohibition on prepayment penalties for consumer finance loans.

Consumer finance loans are repayable in installments every two weeks, semimonthly, or monthly, but there is
no minimum or maximum loan term. The bill requires a minimum loan term of at least 6 months for every loan,
including a refinancing, made on or after October 1, 2021.

The bill has no impact on state or local governments and an indeterminate but likely positive impact on the
private sector.

The bill provides an effective date of October 1, 2021.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 3/25/2021
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Consumer Finance Loans

The Office of Financial Regulation’s (OFR’s) Division of Consumer Finance is responsible for the
licensing and regulation of non-depository financial service entities and individuals, and conducts
examinations and complaint investigations for licensed entities to determine compliance with Florida
law.

One of the loan products regulated by the OFR’s Division of Consumer Finance is the Florida
Consumer Finance Act, ch. 516, F.S. (“the Act”). Loans permitted under the Act are commonly referred
to as “consumer finance loans”, which are “loan[s] of money, credit, goods, or choses in action,1
including, except as otherwise specifically indicated, provision of a line of credit, in an amount or to a
value of $25,000 or less for which the lender charges, contracts for, collects, or receives interest at a
rate greater than 18 percent per annum.”2 Although consumer finance loans may be secured or
unsecured, the Act prohibits lenders from taking a security interest in certain types of collateral.3

Consumer finance loans made pursuant to the Act must be repaid in periodic installments as nearly
equal as mathematically practicable, except that the final payment may be less than the amount of the
prior installments.4 Installments may be due every two weeks, semimonthly, or monthly.5 There is no
minimum or maximum loan term under the Act. Consumer finance loans have a tiered interest rate
structure such that the maximum annual interest rate allowed on each tier decreases as principle
amounts increase:
 30 percent on the first $3,000.
 24 percent on principal above $3,000 and up to $4,000.
 18 percent on principal above $4,000 and up to $25,000.6

The original principal amount is the amount financed, as defined by the federal Truth in Lending Act
(TILA)7 and TILA’s federal implementing regulations.8 For the purpose of determining compliance with
these statutory maximum interest rates, the interest rate computations used must be simple interest.9 In
the event that two or more interest rates are applied to the principal amount of a loan,10 a lender may
charge interest at a single annual percentage rate (APR) which would produce at maturity the total
amount of interest as permitted by the tiered interest rate structure above.11 The APR charged by a
lender may not exceed the APR that must be computed and disclosed according to TILA and its

1 “Chose in action” is defined as “1. A property right in personam, such as a debt owed by another person . . . 2. The right

to bring an action to recover a debt, money, or thing. 3. Personal property that one person owns but another person
possesses, the owner being able to regain possession through a lawsuit.” BLACK’S LAW DICTIONARY 101 (3d ed. 1996).
2 S. 516.01(2), F.S.
3 See s. 516.031(1), F.S. (prohibition on taking a security interest in land for a loan less than $1,000); s. 516.17, F.S.

(prohibition on assignment of, or order for payment of, wages given to secure a loan).
4 S. 516.36, F.S. This section does not apply to lines of credit.
5 Id.
6 S. 516.031(1), F.S.
7 Codified at 15 U.S.C. § 1601 et seq.
8 Currently, the statute references TILA’s implementing regulations as “Regulation Z of the Board of Governors of the

Federal Reserve System.” s. 516.031(1), F.S. However, the Dodd-Frank Wall Street Reform and Consumer Protection
Act, Pub. L. No. 111-203, H.R. 4173, 124 Stat. 1376-2223, 111th Cong. (July 21, 2010), commonly referred to as the
“Dodd-Frank Act”, transferred rulemaking authority for TILA to the Bureau of Consumer Financial Protection, effective July
21, 2011. See also Truth in Lending (Regulation Z), 76 Fed. Reg. 79768 (Dec. 22, 2011).
9 Id.
10 For example, on a principle amount of $3,500, an interest rate of 30 percent per annum may be applied to $3,000 of the

principle amount, and an interest rate of 24 percent per annum may be applied to the remaining $500 of the principal
amount.
11 S. 516.031(1), F.S.
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implementing regulations.12 A licensee may not induce or permit a borrower to divide a loan and may
not induce or permit a person to become obligated to the licensee under more than one loan contract
for the purpose of obtaining a greater finance charge than would otherwise be permitted under the
parameters described above.13

If consideration for a new loan contract includes the unpaid principal balance of a prior loan with the
licensee, then the principal amount of the new loan contract may not include more than 60 days’ unpaid
interest accrued on the prior loan.14

The Act prohibits lenders from directly or indirectly charging borrowers additional fees as a condition to
the grant of a loan, except for the following allowable fees:
 Up to $25 for investigating the credit and character of the borrower;
 A $25 annual fee on the anniversary date of each line-of-credit account;
 Brokerage fees for certain loans, title insurance, and appraisals of real property offered as
security;
 Intangible personal property tax on the loan note or obligation if secured by a lien on real
property;
 Documentary excise tax and lawful fees for filing, recording, or releasing an instrument securing
the loan;
 The premium for any insurance in lieu of perfecting a security interest otherwise required by the
licensee in connection with the loan;
 Actual and reasonable attorney fees and court costs;
 Actual and commercially reasonable expenses for repossession, storing, repairing and placing
in condition for sale, and selling of any property pledged as security;
 A delinquency charge of up to $15 for each payment in default for at least 10 days, if agreed
upon in writing before the charge is imposed; and
 A bad check charge of up to $20.15

The exclusion of “prepayment penalties” from the list of permissible fees implies that consumer finance
lenders are prohibited from charging prepayment penalties.16

Optional credit property, credit life, and disability insurance may be provided at the borrower’s expense
via a deduction from the principal amount of the loan.17

Licenses granted under the Act are for a single place of business18 and must be renewed every two
years.19 As of February 16, 2021, there are 170 licensed consumer finance loan companies operating
in Florida operating across a total of 382 locations.20

The yearly data for licensure under ch. 516, F.S., is contained in the charts below.21

Chapter 516, F.S., Licenses by Year
00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
Applications Received 318 44 136 82 48 72 192 30 52 32
Applications Approved 228 136 125 76 43 64 95 29 18 19

12 S. 516.031(2), F.S.
13 S. 516.031(4), F.S.
14 S. 516.031(5), F.S.
15 S. 516.031(3), F.S.
16 Id.; Office of Financial Regulation, Agency Analysis of 2021 House Bill 895, p. 2 (Feb. 17, 2021).
17 S. 516.35(2), F.S.
18 Ss. 516.01(1) and 516.05(3), F.S.
19 Ss. 516.03(1) and 516.05(1) & (2), F.S.
20 Office of Financial Regulation, supra note 16.
21 Office of Financial Regulation, Active Licenses, https://www.flofr.com/sitePages/documents/finregstats.pdf (last visited

Mar. 16, 2019).
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Active Licenses 589 607 568 609 532 584 626 600 390 386
Renewals & Reactivations 496 1 542 0 523 1 569 0 388 0

Chapter 516, F.S., Licenses by Year (Cont'd)
10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20
Applications Received 175 41 82 116 66 102 55 96 109 100
Applications Approved 137 37 53 113 37 81 36 83 104 98
Active Licenses 347 303 293 349 331 349 338 373 348 390
Renewals & Reactivations 226 0 258 0 312 0 326 0 342 0

An application to become a consumer finance lender must be accompanied by a nonrefundable
application fee of $625 and a nonrefundable investigation fee of $200.22 Licenses must be renewed
biennially, at which time the licensee must pay a nonrefundable biennial license fee of $625.23 At the
time of application, the applicant must provide evidence of liquid assets of at least $25,000, and a
licensee must at all times maintain such liquid assets.24 Each location of a consumer finance lender
must be separately licensed.25

The Act does not apply to persons doing business under state or federal laws governing banks, savings
banks, trust companies, building and loan associations, credit unions, or industrial loan and investment
companies.26

Deferred Presentment Transactions (Payday Loans)

Although the bill relates only to consumer finance loans under ch. 516, F.S., questions often arise as to
how consumer finance loans compare to other consumer loans authorized in statute, particularly
payday loans. Deferred presentment transactions, commonly referred to as “payday loans”, are a small-
dollar loan product under the OFR’s regulatory authority. These transactions are governed by ch. 560,
F.S., part IV.

A deferred presentment transaction means providing currency or a payment instrument in exchange for
a drawer’s (borrower’s) check and agreeing to hold the check for a number of days until depositing,
presenting, or redeeming the payment instrument.27 The only persons who may engage in deferred
presentment transactions are financial institutions as defined in s. 655.005, F.S.,28 and money services
business licensed under ch. 560, F.S., part II29 or part III.30

22 S. 516.03(1), F.S.
23 Id.; s. 516.05(1), F.S.
24 Ss. 516.03(1) and 516.07(1)(b), F.S.
25 S. 516.05(3), F.S.
26 S. 516.02(4), F.S.
27 S. 560.402(2) & (3), F.S.
28 Section 655.005, F.S., defines a “financial institution” to mean a state or federal savings or thrift association, bank,

savings back, trust company, international bank agency, international banking corporation, international branch,
international representative office, international administrative office, international trust entity, international trust company
representative office, qualified limited service affiliate, credit union, or an agreement corporation operating pursuant to s.
25 of the Federal Reserve Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized pursuant to s. 25(a) of the
Federal Reserve Act, 12 U.S.C. ss. 611 et seq.
29 Licensure as a money transmitter. A money transmitter is defined by s. 560.103(23), F.S., as a corporation, limited

liability company, limited liability partnership, or foreign entity qualified to do business in this state which receives
currency, monetary value, or payment instruments for the purpose of transmitting the same by any means, including
transmission by wire, facsimile, electronic transfer, courier, the Internet, or through bill payment services or other
businesses that facilitate such transfer within this country, or to or from this country. Money transmitters may engage in
check cashing under ch. 560, F.S., part III.
30 Licensure as a check casher. A check casher is defined by s. 560.103(6), F.S., as a person who sells currency in

exchange for payment instruments received, except travelers checks.
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There are two types of payday loan products permitted in Florida:
 Deferred presentment transaction not repayable in installments: The face amount of a check
taken for deferred presentment may not exceed $500, exclusive of fees.31 Fees may not exceed
10 percent of payment provided to the drawer plus a verification fee of up to $5.32 The term of a
deferred presentment agreement may not be less than seven days or greater than 31 days.33
 Deferred presentment installment transaction: A deferred presentment installment transaction is
repayable in installments, has a term of 60 to 90 days, and may have an outstanding transaction
balance (exclusive of fees) of up to $1,000.34 The permissible fees are a verification fee of up to
$5 and up to 8 percent of the outstanding transaction balance on a biweekly basis.35 The
installment periods must be 13 days to one calendar month, except that the first installment
period may be longer than the remaining installment periods by not more than 15 days.36
Prepayment penalties are prohibited.37

A deferred presentment provider may not enter into a deferred presentment transaction with a drawer
who has an outstanding deferred presentment transaction with any provider or within 24 hours of the
termination of a previous transaction.38 In order to enforce this restriction, the OFR maintains a
database against which a deferred presentment provider must verify each transaction before entering
into the deferred presentment agreement.39 A deferred presentment provider may not engage in the
rollover of a deferred presentment agreement and may not redeem, extend, or otherwise consolidate a
deferred presentment agreement with the proceeds of another deferred presentment transaction made
by it or an affiliate.40

For deferred presentment transactions not repayable in installments, if the drawer, by the end of the
deferment period, informs the deferred presentment provider in person that the drawer cannot redeem
or pay in full in cash the amount due, the drawer must be given a grace period that extends the term of
the agreement for 60 additional days.41 As a condition of receiving the grace period, the drawer must
make an appointment with a consumer credit counseling agency within seven days after the end of the
deferment period and complete counseling by the end of the grace period.42

If the drawer in a deferred presentment installment transaction informs the deferred presentment
provider in writing or in person by noon of the business day before a scheduled payment that the
drawer cannot pay in full the scheduled payment, the provider must give the drawer one opportunity to
defer a scheduled payment for no additional fee or charge.43 The deferred payment is due after the last
scheduled installment payment, at an interval which is no shorter than the intervals between the
originally scheduled payments.44 Thus, for a deferred presentment installment transaction in which
payments are due once every two weeks, the deferred payment would be due at least two weeks after
the final installment payment is due.

A deferred presentment provider may not include in the agreement a hold harmless clause, a
confession of judgment clause, an assignment of or order for payment of wages or other compensation
for services, or a provision in which the drawer waives any claim or defense arising out of the
agreement or any provision of ch. 560, F.S., part IV.45 A deferred presentment provider must comply

31 S. 560.404(5), F.S.
32 S. 560.404(6), F.S.
33 S. 560.404(8), F.S.
34 S. 560.404(5) & (8), F.S.
35 S. 560.404(6), F.S.
36 S. 560.404(26), F.S.
37 S. 560.404(6)(c), F.S.
38 S. 560.404(19), F.S.
39 S. 560.404(19)(a) & (23), F.S.
40 S. 560.404(18), F.S.
41 S. 560.404(22), F.S.
42 Id.
43 S. 560.404, F.S.
44 Id.
45 S. 560.404(10), F.S.
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with state and federal disclosure requirements.46

Effect of the Bill

The bill amends various provisions related to consumer finance loans under ch. 516, F.S.

Surety Bond, Certificate of Deposit, or Letter of Credit in Lieu of Liquid Assets

The bill authorizes consumer finance lenders to provide the OFR a surety bond, certificate of deposit, or
irrevocable letter of credit in lieu of maintaining liquid assets. The surety bond must be issued by a
bonding company or insurance company authorized to do business in this state. The certificate of
deposit must be deposited in a financial institution.47 The letter of credit must be issued by a financial
institution.48

The surety bond, certificate of deposit, or letter of credit must be in the amount of at least $25,000.
However, a company with multiple licensed locations is authorized to provide a rider or surety bond,
certificate of deposit, or letter of credit in the amount of at least $5,000 for each additional license after
the first. The aggregate amount of the surety bond, certificate of deposit, or letter of credit required for a
company with multiple licenses is capped at $100,000.

The surety bond, certificate of deposit, or letter of credit must name the OFR as beneficiary and must
be for the use and benefit of any borrower who is injured by acts of a licensee involving fraud,
misrepresentation, or deceit, including willful imposition of illegal or excessive charges; or
misrepresentation, circumvention, or concealment of any matter required to be stated or furnished to a
borrower, where such acts are in connection with making a consumer finance loan. The OFR, or any
claimant, may bring an action in a court of competent jurisdiction on the surety bond, certificate of
deposit, or letter of credit. The surety bond, certificate of deposit, or letter of credit must be payable on
a pro rata basis, but the aggregate amount may not exceed the amount of the surety bond, certificate of
deposit, or letter of credit.

The surety bond, certificate of deposit, or letter of credit may not be cancelled by the licensee, bonding
or insurance company, or financial institution except upon notice to the OFR by certified mail. A
cancellation may not take effect until 30 calendar days after receipt by the OFR of the written notice.

If the bonding or insurance company or financial institution pays a claim, it must give written notice by
certified mail to the OFR within 10 calendar days after it pays the claim. The notice must contain details
sufficient to identify the claimant and the claim or judgment paid. If the principal sum of the surety bond,
certificate of deposit, or letter of credit is reduced by one or more recoveries or payments, the
consumer finance lender must furnish to the OFR a new or additional surety bond, certificate of deposit,
or letter of credit so that the total or aggregate principal sum equals the required amount. Alternatively,
a licensee may furnish an endorsement executed by the bonding or insurance company or financial
institution reinstating the required principal amount.

The required surety bond, certificate of deposit, or letter of credit must remain in place for two years
after the consumer finance lender ceases licensed operations in this state. During the two-year period,
the OFR may allow for a reduction or elimination of the surety bond, certificate of deposit, or letter of
credit to the extent the consumer finance lender’s outstanding consumer finance loans in this state are
reduced.

Failure to maintain the surety bond, certificate of deposit, or letter of credit in the required amount is
grounds for denial of license application and grounds for disciplinary action against a consumer finance
lender.

46 S. 560.404(13) & (20), F.S.
47 As defined in s. 655.005(1)(i), F.S.
48 As defined in s. 655.005(1)(i), F.S.
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The bill makes conforming changes under the Financial Technology Sandbox in s. 559.952, F.S.

Express Prohibition on Prepayment Penalties

The bill provides an express prohibition on prepayment penalties for consumer finance loans.

Minimum Loan Term

The bill requires a minimum loan term of at least 6 months for every consumer finance loan, including a
refinancing, made on or after October 1, 2021.

Effective Date

The bill provides an effective date of October 1, 2021.

Comparison Chart

Below is a chart comparing existing law regarding payday loans and consumer finance loans with the
changes proposed by the bill.

Payday Loans Consumer Finance Loans
(Ch. 560, Part IV, F.S.) (Ch. 516, F.S.)
Payday Loans Payday Loans HB 895
Current Law
(Non-Installment) (Installment) Proposed Changes
Loan
$500 (max) $1,000 (max) $25,000 (max) (No change)
Amount
Add min. loan term
of at least 6 months
Length of for every loan,
7 - 31 days 60 - 90 days No min. or max.
Term including a
refinancing, made on
or after Oct. 1, 2021
 Lump sum at end  Installments with  Installments due
of loan term 13 days to 1 month monthly, semi-
in between each, monthly, or every 2
except that the first weeks
installment period
Payments (No change)
may be longer than
the remaining
installment periods
by a maximum of 15
days
 APR equivalent  8% biweekly on  30% per year on
(assuming $500 loan the outstanding the first $3,000 of
amount and $5 transaction balance principal
verification fee):  APR equivalent:  24% per year on
129.52% for a 31 day approx. 208% (will be principal above
Interest Rate loan, 573.57% for a 7 slightly higher as a $3,000 and up to (No change)
day loan result of the $5 $4,000
verification fee)  18% per year on
principal above
$4,000 and up to
$25,000

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Payday Loans Consumer Finance Loans
(Ch. 560, Part IV, F.S.) (Ch. 516, F.S.)
Payday Loans Payday Loans HB 895
Current Law
(Non-Installment) (Installment) Proposed Changes
 10% of loan  $5 verification fee  Fees specified in s.  Add express
amount  No additional fees 516.031(3), F.S., prohibition on
 $5 verification fee permitted including up to $25 prepayment
Other
 No additional fees for investigating the penalties
Upfront Fees credit and character
permitted
Permitted of the borrower
 No additional fees
permitted

B. SECTION DIRECTORY:
Section 1. Amends s. 516.03, F.S., relating to application for license; fees; etc.

Section 2. Amends s. 516.031, F.S., relating to finance charge; maximum rates.

Section 3. Amends s. 516.05, F.S., relating to license.

Section 4. Amends s. 516.07, F.S., relating to grounds for denial of license or for disciplinary action.

Section 5. Amends s. 516.36, F.S., relating to installment requirement.

Section 6. Amends s. 559.952, F.S., relating to Financial Technology Sandbox.

Section 7. Provides an effective date of October 1, 2021.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill’s required minimum loan term and express prohibition on prepayment penalties may have a
positive impact on consumers by providing a meaningful opportunity to repay the loan rather than the
consumer refinancing every so often in order to extend the time for repayment. The bill’s provisions
relating to authorizing a consumer finance lender to provide a surety bond, certificate of deposit, or
letter of credit in lieu of liquid assets may have a positive impact on consumer finance lenders and
consumers. Shifting from maintaining liquid assets will free up capital for lending activity. In the event
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DATE: 3/25/2021
that consumer harm coincides with a consumer finance lender’s bankruptcy, the surety bond, certificate
of deposit, or letter of credit may provide consumers greater means of compensation as compared to
the liquid assets. The bill’s overall impact on the private sector, while likely positive, is indeterminate.

D. FISCAL COMMENTS:
None.

III. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill expressly grants the Financial Services Commission49 authority to prescribe by rule forms and
procedures to implement the provisions relating to a consumer finance lender providing a surety bond,
certificate of deposit, or letter of credit in lieu of liquid assets.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 10, 2021, the Insurance & Banking Subcommittee considered one amendment, which was adopted,
and reported the bill favorably as a committee substitute. The committee substitute makes the following
changes to the bill:
 Authorizes a consumer finance lender to provide a surety bond, certificate of deposit, or letter of credit
of a specified amount in lieu of the current statutory requirement to maintain $25,000 of liquid assets.
 Amends the minimum loan term, as created by the bill, to 6 months.
 Provides that the minimum loan term is applicable to a loan, including a refinancing, made on or after
the effective date of the bill, rather than such minimum loan term applying to currently outstanding
loans, as well.
 Makes conforming changes.
 Changes the effective date of the bill.

The staff analysis has been updated to reflect the committee substitute.

49 The Financial Services Commission (commission) is composed of the Governor, Attorney General, Chief Financial

Officer, and Commissioner of Agriculture. S. 20.121(3), F.S. The commission members are the OFR’s agency head for
the purpose of rulemaking. S. 20.121(3)(c), F.S.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 895 2021

1 A bill to be entitled
2 An act relating to consumer finance loans; amending s.
3 516.03, F.S.; authorizing an applicant for a license
4 to make and collect loans under the Florida Consumer
5 Finance Act to provide a bond, certificate of deposit,
6 or letter of credit in lieu of liquid assets; amending
7 s. 516.031, F.S.; prohibiting a person licensed to
8 make and collect consumer finance loans from charging
9 prepayment penalties for loans; amending s. 516.05,
10 F.S.; authorizing an applicant for a license to make
11 and collect consumer finance loans or a licensee to
12 provide a surety bond, certificate of deposit, or
13 letter of credit in lieu of liquid assets; providing
14 requirements for such bonds, certificates of deposit,
15 and letters of credit; providing rulemaking authority;
16 amending s. 516.07, F.S.; amending grounds for denial
17 of license or disciplinary action; amending s. 516.36,
18 F.S.; providing requirements for loan terms; amending
19 s. 559.952, F.S.; revising exceptions for a licensee
20 during the Financial Technology Sandbox period;
21 providing an effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. Subsection (1) of section 516.03, Florida

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26 Statutes, is amended to read:
27 516.03 Application for license; fees; etc.—
28 (1) APPLICATION.—Application for a license to make loans
29 under this chapter shall be in the form prescribed by rule of
30 the commission. The commission may require each applicant to
31 provide any information reasonably necessary to determine the
32 applicant's eligibility for licensure. The applicant shall also
33 provide information that the office requires concerning any
34 officer, director, control person, member, partner, or joint
35 venturer of the applicant or any person having the same or
36 substantially similar status or performing substantially similar
37 functions or concerning any individual who is the ultimate
38 equitable owner of a 10-percent or greater interest in the
39 applicant. The office may require information concerning any
40 such applicant or person, including, but not limited to, his or
41 her full name and any other names by which he or she may have
42 been known, age, social security number, residential history,
43 qualifications, educational and business history, and
44 disciplinary and criminal history. The applicant must provide
45 evidence of liquid assets of at least $25,000 or documents
46 satisfying the requirements in s. 516.05(10). At the time of
47 making such application the applicant shall pay to the office a
48 nonrefundable biennial license fee of $625. Applications, except
49 for applications to renew or reactivate a license, must also be
50 accompanied by a nonrefundable investigation fee of $200. An

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51 application is considered received for purposes of s. 120.60
52 upon receipt of a completed application form as prescribed by
53 commission rule, a nonrefundable application fee of $625, and
54 any other fee prescribed by law. The commission may adopt rules
55 requiring electronic submission of any form, document, or fee
56 required by this act if such rules reasonably accommodate
57 technological or financial hardship. The commission may
58 prescribe by rule requirements and procedures for obtaining an
59 exemption due to a technological or financial hardship.
60 Section 2. Subsection (6) is added to section 516.031,
61 Florida Statutes, to read:
62 516.031 Finance charge; maximum rates.—
63 (6) PREPAYMENT PENALTIES PROHIBITED.—A licensee may not
64 require a borrower to pay a prepayment penalty for paying all or
65 part of the loan principal before the date on which the payment
66 is due.
67 Section 3. Subsection (10) is added to section 516.05,
68 Florida Statutes, to read:
69 516.05 License.—
70 (10)(a) In lieu of the $25,000 liquid asset requirement in
71 s. 516.03(1):
72 1. An applicant or a licensee may provide to the office a
73 surety bond in the amount of at least $25,000 issued by a
74 bonding company or insurance company authorized to do business
75 in this state.

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76 2. A company with at least one currently licensed location
77 must provide to the office a rider or surety bond, in the amount
78 of at least $5,000 for each additional license, issued by a
79 bonding company or insurance company authorized to do business
80 in this state. However, in no event may the aggregate amount of
81 the surety bond required for a company with multiple licenses
82 exceed $100,000.
83 (b) In lieu of a surety bond, the applicant or the
84 licensee may provide evidence of a certificate of deposit or an
85 irrevocable letter of credit in the same amount of the surety
86 bond required under paragraph (a). The certificate of deposit
87 must be deposited in a financial institution, as defined in s.
88 655.005(1)(i). The letter of credit must be issued by a
89 financial institution, as defined in s. 655.005(1)(i).
90 (c) The original surety bond, certificate of deposit, or
91 letter of credit must be filed with the office, and the office
92 must be named as beneficiary. The surety bond, certificate of
93 deposit, or letter of credit must be for the use and benefit of
94 any borrower who is injured by acts of a licensee involving
95 fraud, misrepresentation, or deceit, including willful
96 imposition of illegal or excessive charges; or
97 misrepresentation, circumvention, or concealment of any matter
98 required to be stated or furnished to a borrower, where such
99 acts are in connection with a loan made under this chapter. The
100 office, or any claimant, may bring an action in a court of

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101 competent jurisdiction on the surety bond, certificate of
102 deposit, or letter of credit. The surety bond, certificate of
103 deposit, or letter of credit must be payable on a pro rata
104 basis, but the aggregate amount may not exceed the amount of the
105 surety bond, certificate of deposit, or letter of credit.
106 (d) The surety bond, certificate of deposit, or letter of
107 credit may not be cancelled by the licensee, bonding or
108 insurance company, or financial institution except upon notice
109 to the office by certified mail. A cancellation may not take
110 effect until 30 calendar days after receipt by the office of the
111 written notice.
112 (e) The bonding or insurance company or financial
113 institution must, within 10 calendar days after it pays a claim,
114 give written notice to the office by certified mail of such
115 payment with details sufficient to identify the claimant and the
116 claim or judgment paid.
117 (f) If the principal sum of the surety bond, certificate
118 of deposit, or letter of credit is reduced by one or more
119 recoveries or payments, the licensee must furnish to the office
120 a new or additional surety bond, certificate of deposit, or
121 letter of credit so that the total or aggregate principal sum
122 equals the amount required under this subsection. Alternatively,
123 a licensee may furnish an endorsement executed by the bonding or
124 insurance company or financial institution reinstating the
125 required principal amount.

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126 (g) The required surety bond, certificate of deposit, or
127 letter of credit must remain in place for 2 years after the
128 licensee ceases licensed operations in this state. During the 2
129 year period, the office may allow for a reduction or elimination
130 of the surety bond, certificate of deposit, or letter of credit
131 to the extent the licensee's outstanding consumer finance loans
132 in this state are reduced.
133 (h) The commission may prescribe by rule forms and
134 procedures to implement this subsection.
135 Section 4. Paragraph (b) of subsection (1) of section
136 516.07, Florida Statutes, is amended to read:
137 516.07 Grounds for denial of license or for disciplinary
138 action.—
139 (1) The following acts are violations of this chapter and
140 constitute grounds for denial of an application for a license to
141 make consumer finance loans and grounds for any of the
142 disciplinary actions specified in subsection (2):
143 (b) Failure to maintain liquid assets of at least $25,000
144 or a surety bond, certificate of deposit, or letter of credit in
145 the amount required by s. 516.05(10) at all times for the
146 operation of business at a licensed location or proposed
147 location.
148 Section 5. Section 516.36, Florida Statutes, is amended to
149 read:
150 516.36 Installment requirement.—

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151 (1) Every loan made pursuant to this chapter must be
152 repaid in periodic installments as nearly equal as
153 mathematically practicable, except that the final payment may be
154 less than the amount of the prior installments. Installments may
155 be due every 2 weeks, semimonthly, or monthly. This section does
156 not apply to lines of credit.
157 (2) Every loan, including a refinancing, made pursuant to
158 this chapter on or after October 1, 2021, must have a minimum
159 loan term of at least 6 months.
160 Section 6. Paragraph (a) of subsection (4) of section
161 559.952, Florida Statutes, is amended to read:
162 559.952 Financial Technology Sandbox.—
163 (4) EXCEPTIONS TO GENERAL LAW AND WAIVERS OF RULE
164 REQUIREMENTS.—
165 (a) Notwithstanding any other law, upon approval of a
166 Financial Technology Sandbox application, the following
167 provisions and corresponding rule requirements are not
168 applicable to the licensee during the sandbox period:
169 1. Section 516.03(1), except for the application fee, the
170 investigation fee, the requirement to provide the social
171 security numbers of control persons, evidence of liquid assets
172 of at least $25,000 or documents satisfying the requirements in
173 s. 516.05(10), and the office's authority to investigate the
174 applicant's background. The office may prorate the license
175 renewal fee for an extension granted under subsection (7).

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176 2. Section 516.05(1) and (2), except that the office shall
177 investigate the applicant's background.
178 3. Section 560.109, only to the extent that the section
179 requires the office to examine a licensee at least once every 5
180 years.
181 4. Section 560.118(2).
182 5. Section 560.125(1), only to the extent that the
183 subsection would prohibit a licensee from engaging in the
184 business of a money transmitter or payment instrument seller
185 during the sandbox period.
186 6. Section 560.125(2), only to the extent that the
187 subsection would prohibit a licensee from appointing an
188 authorized vendor during the sandbox period. Any authorized
189 vendor of such a licensee during the sandbox period remains
190 liable to the holder or remitter.
191 7. Section 560.128.
192 8. Section 560.141, except for s. 560.141(1)(a)1., 3., 7.-
193 10. and (b), (c), and (d).
194 9. Section 560.142(1) and (2), except that the office may
195 prorate, but may not entirely eliminate, the license renewal
196 fees in s. 560.143 for an extension granted under subsection
197 (7).
198 10. Section 560.143(2), only to the extent necessary for
199 proration of the renewal fee under subparagraph 9.
200 11. Section 560.204(1), only to the extent that the

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201 subsection would prohibit a licensee from engaging in, or
202 advertising that it engages in, the selling or issuing of
203 payment instruments or in the activity of a money transmitter
204 during the sandbox period.
205 12. Section 560.205(2).
206 13. Section 560.208(2).
207 14. Section 560.209, only to the extent that the office
208 may modify, but may not entirely eliminate, the net worth,
209 corporate surety bond, and collateral deposit amounts required
210 under that section. The modified amounts must be in such lower
211 amounts that the office determines to be commensurate with the
212 factors under paragraph (5)(c) and the maximum number of
213 consumers authorized to receive the financial product or service
214 under this section.
215 Section 7. This act shall take effect October 1, 2021.

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COMMERCE COMMITTEE

CS/HB 895 by Rep. Stevenson
Consumer Finance Loans

AMENDMENT SUMMARY
March 29, 2021

Amendment 1 by Rep. Stevenson (line 62): The amendment updates two statutory
references relating to the federal Truth in Lending Act’s (TILA’s) implementing regulations,
which are commonly referred to as Regulation Z. Rulemaking authority for Regulation Z was
previously under the Board of Governors of the Federal Reserve System. However, the Dodd-
Frank Act transferred rulemaking authority for Regulation Z to the Consumer Financial
Protection Bureau, effective July 21, 2011. As such, the amendment replaces two statutory
references to “Board of Governors of the Federal Reserve System” with “Bureau of Consumer
Financial Protection”.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 895 (2021)
Amendment No. 1

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Stevenson offered the following:
3
4 Amendment (with directory and title amendments)
5 Between lines 62 and 63, insert:
6 (1) INTEREST RATES.—A licensee may lend any sum of money
7 up to $25,000. A licensee may not take a security interest
8 secured by land on any loan less than $1,000. The licensee may
9 charge, contract for, and receive thereon interest charges as
10 provided and authorized by this section. The maximum interest
11 rate shall be 30 percent per annum, computed on the first $3,000
12 of the principal amount; 24 percent per annum on that part of
13 the principal amount exceeding $3,000 and up to $4,000; and 18
14 percent per annum on that part of the principal amount exceeding
15 $4,000 and up to $25,000. The original principal amount as used
16 in this section is the same as the amount financed as defined by
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Page 1 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 895 (2021)
Amendment No. 1

17 the federal Truth in Lending Act and Regulation Z of the
18 Consumer Financial Protection Bureau Board of Governors of the
19 Federal Reserve System. In determining compliance with the
20 statutory maximum interest and finance charges set forth herein,
21 the computations used shall be simple interest and not add-on
22 interest or any other computations. If two or more interest
23 rates are applied to the principal amount of a loan, the
24 licensee may charge, contract for, and receive interest at that
25 single annual percentage rate which, if applied according to the
26 actuarial method to each of the scheduled periodic balances of
27 principal, would produce at maturity the same total amount of
28 interest as would result from the application of the two or more
29 rates otherwise permitted, based upon the assumption that all
30 payments are made as agreed.
31 (2) ANNUAL PERCENTAGE RATE UNDER FEDERAL TRUTH IN LENDING
32 ACT.—The annual percentage rate of finance charge which may be
33 contracted for and received under any loan contract made by a
34 licensee under this chapter may equal, but not exceed, the
35 annual percentage rate which must be computed and disclosed as
36 required by the federal Truth in Lending Act and Regulation Z of
37 the Consumer Financial Protection Bureau Board of Governors of
38 the Federal Reserve System. The maximum annual percentage rate
39 of finance charge which may be contracted for and received is 12
40 times the maximum monthly rate, and the maximum monthly rate
41 shall be computed on the basis of one-twelfth of the annual rate
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 895 (2021)
Amendment No. 1

42 for each full month. The commission shall by rule establish the
43 rate for each day in a fraction of a month when the period for
44 which the charge is computed is more or less than 1 month.
45
46 -----------------------------------------------------
47 D I R E C T O R Y A M E N D M E N T
48 Remove lines 60-61 and insert:
49 Section 2. Subsections (1) and (2) of section 516.031,
50 Florida Statutes, are amended, and subsection (6) is added to
51 that section, to read:
52
53 -----------------------------------------------------
54 T I T L E A M E N D M E N T
55 Remove line 7 and insert:
56 s. 516.031, F.S.; revising references to implementing
57 regulations of the federal Truth in Lending Act;
58 prohibiting a person licensed to

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HB 6053
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 6053 Doorstep Waste Containers
SPONSOR(S): Yarborough
TIED BILLS: IDEN./SIM. BILLS: SB 904

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Regulatory Reform Subcommittee 15 Y, 2 N Brackett Anstead

2) Commerce Committee Brackett Hamon

SUMMARY ANALYSIS
Florida’s fire prevention and control law, ch. 633, F.S., designates the state’s Chief Financial Officer as the
State Fire Marshal, and requires the State Fire Marshal to adopt the Florida Fire Prevention Code (Fire Code)
by rule every three years. The Fire Code sets forth fire safety standards (including certain national codes) for
property, and is enforced by local fire officials within each local government in the state. The Fire Code
provides that a person may not place combustible waste and refuse in a building’s means of egress, which
includes a building’s exit access corridors.

Currently, there are various providers offering doorstep waste collection services to apartment complexes
throughout the state. Residents in these complexes place waste outside their front door, and the provider picks
it up. An apartment complex resident’s front door usually opens to a hallway, corridor, or walkway, which may
be or lead to the building’s exit access.

During the 2018 Legislative Session, the Legislature temporarily allowed residents in apartment buildings to
place combustible waste and refuse in an exit access corridor if certain conditions were met. These statutory
changes were not adopted by the State Fire Marshal in the Fire Code. Current law allows waste containers to
be placed in an apartment building’s exit access corridors if:
 Waste, which is in a container, is not in an exit access corridor for a single period greater than 5 hours;
 Containers do not exceed 13 gallons for apartment buildings with enclosed corridors and interior or
exterior stairs, or exceed 27 gallons for apartment buildings with open air corridors and exterior stairs or
balconies with exterior exit stairs;
 Containers are not in an exit access corridor for a single period greater than 12 hours for apartment
buildings with enclosed corridors and interior or exterior stairs;
 Containers do not reduce the exit access corridor’s width below the width required by the Fire Code;
 Containers can stand upright on their own and do not leak fluids when standing upright; and
 The apartment’s management staff have written policies and procedures to ensure compliance with the
above conditions.

Apartment complexes were given a phase-in period to comply with these requirements, which ended on
December 31, 2020.

The provisions allowing the placement of waste and refuse containers in an exit access corridor expire on July
1, 2021.

The bill repeals the July 1, 2021 expiration date for the statutory provisions, thus allowing residents in
apartment complexes to continue placing waste outside their front door for pick up by waste collection
services, which may conflict with the Fire Code.

The bill is not expected to have a significant fiscal impact on state or local government.

The bill provides an effective date of July 1, 2021.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:

Current Situation

Florida’s fire prevention and control law, ch. 633, F.S., designates the state’s Chief Financial Officer as the
State Fire Marshal. The State Fire Marshal, through the Division of State Fire Marshal within the
Department of Financial Services (DFS), is charged with enforcing the provisions of ch. 633, F.S., and all
other applicable laws relating to fire safety, and has the responsibility to minimize the loss of life and
property in this state due to fire.1 Pursuant to this authority, the State Fire Marshal regulates, trains, and
certifies fire service personnel and fire safety inspectors; investigates the causes of fires; enforces arson
laws; regulates the installation of fire equipment; conducts fire safety inspections of state property; and
operates the Florida State Fire College.

Adoption and Interpretation of the Florida Fire Prevention Code

The State Fire Marshal also adopts by rule the Florida Fire Prevention Code (Fire Code), which contains all
fire safety laws and rules that pertain to the design, construction, erection, alteration, modification, repair,
and demolition of public and private buildings, structures, and facilities, and the enforcement of such fire
safety laws and rules, at ch. 69A-60, F.A.C.

The State Fire Marshal adopts a new edition of the Fire Code every three years.2 When adopting the Fire
Code the Fire Marshal is required to adopt the most current version of the national fire and life safety
standards set forth by the National Fire Protection Association (NFPA) including the:
 NFPA’s Fire Code (1);
 Life Safety Code (101); and
 Guide on Alternative Approaches to Life Safety (101A).3

The State Fire Marshal may modify the national fire safety and life safety standards as needed to
accommodate the specific needs of the state.4

The most recent Fire Code is the 7th edition, which is referred to as the 2020 Florida Fire Prevention Code.
The 7th edition of the Fire Code took effect on December 31, 2020.5

The State Marshal has authority to interpret the Code, and is the only authority that may issue a
declaratory statement relating to the Fire Code.6

Fire Safety Enforcement by Local Governments

State law requires all municipalities, counties, and special districts with fire safety responsibilities to enforce
the Fire Code as the minimum fire prevention code to operate uniformly among local governments and in
conjunction with the Florida Building Code.7 These local enforcing authorities may adopt more stringent fire

1
S. 633.104, F.S.
2
S. 633.202, F.S.
3
S. 633.202(2), F.S. Founded in 1896, the National Fire Protection Association delivers information and knowledge through more
than 300 consensus codes and standards, research, training, education, outreach and advocacy; and by partnering with others who
share an interest in furthering the mission. NFPA, About NFPA, http://www.nfpa.org/about-nfpa (last visited on Feb. 28, 2021).
4
Id.
5
Division of State Fire Marshal, Florida Fire Prevention Code (FFPC),
https://www.myfloridacfo.com/division/sfm/bfp/floridafirepreventioncodepage.htm (last visited Feb. 28, 2021).
6
S. 633.104(6), F.S.
7
Ss. 633.108 and 633.208, F.S.
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safety standards, subject to certain requirements in s. 633.208, F.S., but may not enact fire safety
ordinances that conflict with ch. 633, F.S., or any other state law.8

The chiefs of local government fire service providers (or their designees) are authorized to enforce ch. 633,
F.S., and rules within their respective jurisdictions as agents of those jurisdictions, not agents of the State
Fire Marshal.9 Each county, municipality, and special district with fire safety enforcement responsibilities is
also required to employ or contract with a fire safety inspector (certified by the State Fire Marshal) to
conduct all fire safety inspections required by law.10

Section 633.208(5), F.S. states “With regard to existing buildings, the Legislature recognizes that it is not
always practical to apply any or all of the provisions of the Fire Code and that physical limitations may
require disproportionate effort or expense with little increase in fire or life safety.”

Pursuant to s. 633.208(5), F.S., local fire officials must apply the Fire Code for existing buildings to the
extent practical to ensure a reasonable degree of life safety and safety of property. The local fire officials
are also required to fashion reasonable alternatives that afford an equivalent degree of life safety and
safety of property.

Florida Building Code

The Florida Building Code (Building Code) is the statewide building code for all construction in the state.
The Florida Building Commission (Commission), housed within the Department of Business and
Professional Regulation (DBPR), implements the Building Code. The Commission reviews the International
Code Council’s I-Codes and the National Electric Code every three years to determine if it needs to update
the Building Code.11

Means of Egress

A means of egress is a path available for a person to leave a building. A means of egress is made up of
three parts, which includes the following:12

 Exit access;
 Exit; and
 Exit discharge.

The exit access is a path, such as a hallway or corridor, from any location in the building to an exit. The exit
is usually a door leading outside, or in a multi-story building, an enclosed stairway. The exit discharge is a
path from the exit to a space that is dedicated to public use such as a street or alley. 13

The Fire Code provides that a building’s means of egress must be a certain width determined by the
number of occupants in the building and the use of the building.14 The Fire Code further provides that a
building’s means of egress must be free of all obstructions or impediments in case of fire or other
emergency.15

8
Ss. 633.208 and 633.214(4), F.S.
9
S. 633.118, F.S.
10
S. 633.216(1), F.S.
11
S. 553.73(7)(a), F.S.
12
Section 3.3.182 of the 7th edition of the Florida Fire Prevention Code (NFPA 1, Fire Code).
13
Section 202 of the 7th edition of the Florida Building Code (Building); Richmond ICC, 2018 Annual Conference Education
Sessions, Session: 2018 IBC Essentials – Means of Egress & Fire Protection, https://www.iccsafe.org/wp-content/uploads/2018-IBC-
Essentials-%E2%80%93-Means-of-Egress-Fire-Protection.pdf (last visited Feb. 28, 2021).
14
See Section 7.3.4 of the 7th edition of the Florida Fire Prevention Code (NFPA 101, Life Safety Code).
15
Section 7.1.10.1 of the 7th edition of the Florida Fire Prevention Code (NFPA 101, Life Safety Code).
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The Building Code also provides that a building’s means of egress must be a certain width determined by
the number of occupants in the building.16 The Building Code provides that the required width of a
building’s means of egress must be free of all obstructions and impediments.17

However, the Building Code provides that maintenance of a building’s means of egress must be in
accordance with the Fire Code.18 DBPR has interpreted this to mean that the Fire Code takes precedence
when it comes to people placing objects, such as a trashcan, in a building’s means of egress.19

Combustible Waste and Refuse

The Fire Code defines “combustible waste” as any combustible or loose waste material that is generated
by an establishment or process and, if salvageable, is retained for scrap or reprocessing on the premises
where generated or transported to a plant for processing.20

The Fire Code defines “combustible refuse” as a combustible or loose rubbish, litter, or waste materials
generated by an occupancy that are refused, rejected, or considered worthless and are disposed of by
incineration on the premises where generated or periodically transported from the premises.21

Combustible waste and refuse may be stored in an apartment building if the combustible waste and refuse
is:22

 Stored in a container less than 1.5 cubic yards (302 gallons) or in an enclosed area with a 1 hour
fire resistance rating and an automatic sprinkler system;
 Removed from the building once a day unless the waste and refuse is stored in a noncombustible
room; and
 Not stored in the building’s exit(s).

Private Doorstep Collection Providers

Currently, there are various providers offering doorstep refuse and recycling collection services to
apartment complexes throughout the state. The basic business model requires the residents of an
apartment building to place their waste outside of their doorstep, in a specified container approved by the
provider. The doorstep refuse and recycling collection providers then come by and collect the waste at a
specified time.23

An apartment complex resident’s front door opens to a hallway, corridor, or walkway, which is usually the
building’s exit access and therefore part of the building’s means of egress. According to DFS, apartments
that contract with the doorstep refuse and recycling collection providers are violating the Fire Code by
allowing residents to place combustible waste and refuse in their buildings’ means of egress.24

In 2016, the State Fire Marshal issued declaratory statements determining that apartments may not allow
residents to place waste containers outside their front doors regardless of the size of the container or if the
waste is removed daily. The State Fire Marshal determined that the Fire Code prohibits apartment
residents from placing any type of waste container outside their door because the residents are placing an
obstruction in a building’s means of egress and combustible waste in a building’s exit.25

16
Section 1005 of the 7th edition of the Florida Building Code (Building).
17
Section 1018.1, 1020.3, and 1024.2 of the 7th edition of the Florida Building Code (Building).
18
Section 1001.3 of the 6th edition of the Florida Building Code (Building).
19
Email from Vicky Summerhill, Office of Legislative Affairs, Department of Business and Professional Regulation, FW: Florida
Building Code questions (Mar. 4, 2021).
20
Section 3.3.63 of the 7th edition of the Florida Fire Prevention Code (NFPA 1, Fire Code).
21
Section 3.3.62 of the 7th edition of the Florida Fire Prevention Code (NFPA 1, Fire Code).
22
Section 10.18.4 and 19.2.1 of the 7th edition of the Florida Fire Prevention Code (NFPA 1, Fire Code).
23
Department of Financial Services, Agency Analysis of 2018 House Bill 529, p. 1 (Nov. 29, 2017).
24
Id.
25
See In the matter of: William Harrison, Fire Marshal Clermont Fire Department, Case No.: 188696-16-DS (Fla. DFS) (June 21,
2016); In the matter of: Steve Strong, Fire Marshal Clearwater Fire & Rescue, Case No.: 196979-16-DS (Fla. DFS) (Dec. 23, 2016).
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During the 2018 Legislative Session, the Legislature temporarily allowed refuse and recycling containers to
be placed in exit access corridors in apartment buildings if the following conditions are met:26

 Waste, which is in a doorstep refuse and recycling collection container, is not placed in an exit
access corridor for a single period greater than 5 hours;
 Doorstep refuse and recycling containers do not exceed 13 gallons for apartment buildings with
enclosed corridors and interior or exterior stairs;
 Doorstep refuse and recycling collection containers do not exceed 27 gallons for apartment
buildings with open air corridors and exterior stairs or balconies with exterior exit stairs;
 Doorstep refuse and recycling collection containers are not in an exit access corridor for a single
period greater than 12 hours for apartment buildings with enclosed corridors and interior or exterior
stairs;
 Doorstep refuse and recycling collection containers do not reduce the exit access corridor’s width
below the width required by the Fire Code;
 Doorstep refuse and recycling collection containers are able to stand upright on their own and may
not leak fluids when standing upright; and
 The apartment’s management staff have written policies and procedures to ensure compliance with
the above conditions. Management staff must enforce the policies and must provide a copy of the
policies to the authority having jurisdiction upon request.

Apartment complexes were given a phase in period to comply with these requirements. Apartments had to
comply with the requirements by December 31, 2020. Local fire marshals were given authority to approve
alternative containers or storage arrangements that are equivalent to these requirements.27 However, these
requirements sunset on July 1, 2021. The purpose of the sunset date was to give the various providers
time to work with the State Fire Marshal to develop an amendment to the Fire Code, which is the State Fire
Marshal’s preferred method for amending the Fire Code.28

According to DFS, the State Fire Marshal adopted an amendment to the Fire Code, which took effect when
the 7th edition of the Fire Code became effective on December 31, 2020, intended to allow the various
doorstep refuse and recycling collection providers to keep operating.29 The amendment provides that waste
and refuse may be placed in exits, exit passageways, enclosures for stairs or ramps, corridors, elevator
lobbies, or egress balconies if:30

 Waste, which is in a doorstep refuse and recycling collection container, is not placed in an exit
access corridor for a single period greater than 5 hours;
 Doorstep refuse and recycling containers do not exceed 15 gallons;
 Doorstep refuse and recycling collection containers are not in an exit access corridor for a single
period greater than 15 hours;
 Doorstep refuse and recycling collection containers do not reduce the exit access corridor’s width
below the width required by the Fire Code;
 Management staff have written policies and procedures to ensure compliance with the above
conditions. Management staff must enforce the policies and must provide a copy of the policies to
the authority having jurisdiction upon request; and
 Waste or refuse must be placed completely inside one or more containers with a closed lid.

After July 1, 2021, the following provisions in the amendment to the Fire Code take effect:31

26
S. 633.202(20), F.S.; See House Analysis of 2018 House Bill 529 (Apr. 9, 2018).
27
Id.
28
See The Florida Channel, 1/9/18 House Careers and Competition Subcommittee, https://thefloridachannel.org/videos/1-9-18-house-
careers-competition-subcommittee/ (last visited Feb. 28, 2021).
29
Department of Financial Services, Agency Analysis of 2021 House Bill 6053, p. 1 (Mar. 2, 2021).
30
Sections 10.18.4.1 and 10.18.4.1.1 of the 7th edition of the Florida Fire Prevention Code (NFPA 1, Fire Code).
31
Id.
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 Containers and lids located in an area that is not protected by fire sprinklers must be made entirely
of noncombustible materials that comply with the Fire Code.32
 Containers and lids located in an area that is protected by fire sprinklers does not have to made
entirely of noncombustible materials that comply with the Fire Code.

Proponents of repealing the sunset date argue that the amendment to the Fire Code requires apartment
complex residents and doorstep refuse and recycling collection providers to use refuse and recycling
containers that are not readily available. Opponents of repealing the sunset date argue that repealing the
sunset date will allow refuse and recycling containers, which do not comply with the Fire Code, to be
placed in apartment access corridors.33

Effect of the Bill

The bill repeals the sunset date of July 1, 2021. Thus leaving the provisions in s. 633.202(20), F.S., that
allow refuse and recycling containers to be lawfully placed in exit access corridors just as they have been
since the adoption of the provisions in 2018.

The bill also repeals the phase in period, which provisions had to be complied with by December 31, 2020.

B. SECTION DIRECTORY:
Section 1. Amends s. 633.202, F.S., repealing a sunset date and a phase in period.

Section 2. Provides an effective date of July 1, 2021.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Indeterminate. It is unknown what the cost would be for apartment complex residents and the various
doorstep refuse and recycling providers to purchase refuse and recycling containers that meet the
requirements of the Fire Code.

32
Noncombustible materials must meet a peak rate of heat release not exceeding 150 kW/m² when tested in accordance with ASTME
1354 at an incident heat flux of 50kW/m² in the horizontal orientation. Containers and lids must be listed or have a label from an
approved agency that the container or lid meets the Fire Code’s requirement. Id.
33
See The Florida Channel, 3/3/21 Senate Committee on Community Affairs, https://thefloridachannel.org/videos/3-3-21-senate-
committee-on-community-affairs/ (last visited Mar. 4, 2021).
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D. FISCAL COMMENTS:
None.

III. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
According to DFS, removing the sunset date and the phase in period would create a conflict between
Florida Statutes and amendments to the Fire Code.

“The proposed bill language would allow trash containers with no fire-rated requirements
and located in the hallways used for egress, to obstruct the means of egress which would
cause obstacles to life safety in case of emergency. All of subsection (20) needs to be
repealed in accordance with the sunset provisions set forth in the law because it is in conflict
with and would cause confusion with the 7th edition of the Florida Fire Prevention Code,
which became effective December 31, 2020.”34

However, the statutory requirements for placing refuse and recycling containers in exit access corridors
in apartment buildings has been in effect for 3 years, and the State Fire Marshal has not cited any
incidents that would indicate problems with the statutory requirements.

The statutory requirements for placing refuse and recycling containers in exit access corridors in
apartment buildings would also most likely supersede any requirements in the Fire Code, and thus
would not conflict or cause confusion with the Fire Code. The Florida Supreme Court has ruled that a
specific statute covering a particular subject area always controls over a statute covering the same and
other subjects in more general terms, and when two statutes are in conflict, the later promulgated
statute should prevail as the last expression of legislative intent.35

The Legislature adopted the statutory requirements placing refuse and recycling containers in exit
access corridors in apartment buildings after adopting the statute granting the State Fire Marshal
authority to the adopt the Fire Code.36 The statute providing the requirements for placing refuse and
recycling containers in exit access corridors specifically provides such requirements, whereas the
statute granting the State Fire Marshal authority to adopt the Fire Code is more general and covers
other subjects related to fire safety.

34
Department of Financial Services supra note 29.
35
McKendry v. State of Florida, 641 So. 2d 45 (Fla. 1994).
36
Ch. 2018-152, Laws of Fla.; Ch. 2000-141, Laws of Fla.
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IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

HB 6053 2021

1 A bill to be entitled
2 An act relating to doorstep waste containers; amending
3 s. 633.202, F.S.; deleting an obsolete provision;
4 removing the scheduled repeal of certain provisions
5 regulating the use of containers in exit access
6 corridors; providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Paragraphs (d) and (e) of subsection (20) of
11 section 633.202, Florida Statutes, are amended to read:
12 633.202 Florida Fire Prevention Code.—
13 (20)
14 (d) The authority having jurisdiction shall allow
15 apartment occupancies a phase-in period until December 31, 2020,
16 to comply with this subsection.
17 (e) This subsection is repealed on July 1, 2021.
18 Section 2. This act shall take effect July 1, 2021.

Page 1 of 1

CODING: Words stricken are deletions; words underlined are additions.
hb6053-00
PCS for CS/HB 15
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for CS/HB 15 Taxation
SPONSOR(S): Commerce Committee
TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 50

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

Orig. Comm.: Commerce Committee Willson Hamon

SUMMARY ANALYSIS
The PCS for CS/HB 15 requires marketplace providers and out-of-state retailers with no physical presence in
Florida to collect Florida’s sales tax on sales of taxable items delivered to purchasers in Florida if the
marketplace provider or out-of-state retailer makes a substantial number of sales into Florida. A substantial
number of remote sales means conducting any number of taxable retail sales in an amount exceeding
$100,000 during the previous calendar year. The PCS makes conforming changes to ensure consistent
administration of the new provisions.

The PCS also requires marketplace providers to collect and remit three fees related to the sales tax (the waste
tire fee, lead-acid battery fee, and E911 prepaid wireless fee), beginning April 1, 2022, and provides a safe
harbor for businesses who failed to collect the sales tax prior to July 1, 2021, as long as they register with the
Department of Revenue prior to October 1, 2021.

The PCS removes the requirement that dealers use a bracket system to calculate the applicable sales tax on
transactions, and replaces it with a rounding system.

To avoid a significant, unexpected increase in reemployment assistance tax rates on Florida employers, the
PCS temporarily directs the Department of Revenue to calculate applicable rates without respect to pandemic
effects until such time as the Unemployment Compensation Trust Fund has been replenished to a pre-
pandemic level. The PCS also directs $973.6 million (FY 2021-22), increasing to $1.08 billion (FY 2022-23
forward), to be distributed from sales tax collections to the Unemployment Compensation Trust Fund each
year, until such time as the trust fund reaches its pre-pandemic balance ($4,071,519,600).

The Revenue Estimating Conference (REC) estimated that the sales tax collection provisions of the PCS will
have a positive revenue impact in FY 2021-22 totaling $1,203.4 million ($1,337.0 million recurring) of which
$973.6 million ($1,079.7 million recurring) is on General Revenue, $0.3 million ($3.6 million recurring) is on
state trust fund revenues, and $229.5 million ($253.7 million recurring) is on local government revenues.

The PCS provides that the act may be cited as the “Park Randall ‘Randy’ Miller Act.”

Except as otherwise provided, the PCS takes effect July 1, 2021.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Current Situation

Florida Sales and Use Tax

Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal property,
admissions, 1 transient rentals, 2 rental of commercial real estate, 3 and a limited number of services.
Chapter 212, F.S., authorizes the levy and collection of Florida’s sales and use tax, and provides
exemptions and credits applicable to certain items or uses under specified circumstances. Sales tax is
added to the sales price of the taxable good or service and is collected from the purchaser at the time
of sale. 4

In addition to the state tax, s. 212.055, F.S., authorizes counties to impose nine local discretionary
sales surtaxes. A surtax applies to “all transactions occurring in the county which transactions are
subject to the state tax imposed on sales, use, services, rentals, admissions, and other transactions by
[ch. 212, F.S.], and communications services as defined in ch. 202.” 5 The discretionary sales surtax is
based on the tax rate imposed by the county where the taxable goods or services are sold, or are
delivered. Discretionary sales surtax rates currently levied vary by county in a range from 0.5 to 2.5
percent. 6

When calculating the tax due, s. 212.12, F.S., provides a bracket system to determine the applicable
tax based on the total sales price of a transaction. 7

Electronic Filing and Payment Requirements

Florida law authorizes the Department of Revenue (Department) to require taxpayers who remitted
$20,000 or more in tax payments during the previous state fiscal year to file returns and remit taxes
electronically. 8 In some instances, a dealer 9 must file returns and remit taxes electronically irrespective
of how much tax is remitted. For example, consolidated filers, 10 dealers who operate two or more
places of business and maintain records in a central office, or a dealer claiming a tax credit on behalf of
a tenant who donated to an eligible scholarship organization must file returns and remit tax
electronically. 11

1 S. 212.04, F.S.
2 S. 212.03, F.S.
3 S. 212.031, F.S.
4 S. 212.07(2), F.S., and s. 212.06(3)(a), F.S.
5 S. 212.054, F.S.
6 Office of Economic and Demographic Research, The Florida Legislature, Florida Tax Handbook, 2020 Local

Discretionary Sales Surtax Rates in Florida’s Counties, 231-232 (20), available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2020.pdf (last visited March 9, 2021).
7 Section 212.12(9)-(11), F.S., provides brackets, or for the provision of brackets, for all transaction amounts ending in

specified cents, under the 6% state tax, a 7% tax consisting of the 6% state and 1% discretionary sales surtax, and for
combined rates for other than 6% or 7%. The Department of Revenue provides these brackets on their website at
https://floridarevenue.com/taxes/taxesfees/Pages/tax_interest_rates.aspx#sales (last visited March 24, 2021).
8 S. 213.755, F.S.
9 Section 212.06(2)(a), F.S., defines “dealer” as every person, who manufactures or produces tangible personal property

for sale at retail; for use, consumption, or distribution; or for storage to be used or consumed in Florida.
10 S. 213.755(5), F.S.
11 S. 212.099, F.S.
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Registration Requirements

A person desiring to engage in or conduct business in this state as a dealer must file with the
Department an application for a certificate of registration. The application must be submitted to the
Department before the person engages in taxable activity. The Department, upon receipt of such
application, shall grant to the applicant a certificate of registration and an annual resale certificate,
which provides a dealer the necessary documentation to purchase goods for resale exempt from tax. 12

Remote Sales Tax Collection
As discussed above, sales tax is added to the price of taxable goods and the selling dealer is required
to collect the tax from the purchaser at the time of sale. 13 A dealer then remits the collected taxes to the
Department. 14

For items sold by an out-of-state dealer and delivered to the in-state purchaser via mail (mail-order
sales), states have depended on their use taxes. Florida imposes a use tax that applies in these
situations; 15 however, use tax compliance is notably low.

Having an out-of-state dealer collect the state’s sales tax at the time of sale and remit those taxes to
the state is simpler for consumers than compliance with a state’s use tax laws. However, the U.S.
Supreme Court interpreted the Commerce Clause of the U.S. Constitution to require that a dealer have
a “substantial nexus” with the taxing state before the taxing state may require the out-of-state dealer to
collect its sales taxes. 16 For decades, the U.S. Supreme Court has interpreted this substantial nexus
requirement to mean the dealer must have a physical presence (people or property) within the taxing
state in order for that state to be able to compel the dealer to collect its sales tax. 17 The Court reasoned
that to allow a taxing state to require a dealer located outside the taxing state (without a physical
presence) to collect sales tax on behalf of the taxing state was an undue burden on interstate
commerce. 18

Under the “physical presence” standard, Florida, in 1987, adopted its “mail order sales statute,” which
defines a mail order sale to be the sale of tangible personal property, ordered from a dealer who
receives the order in another state and then causes the property to be transported to a person in this
state. 19 Although the statute describes dealers who “receive [orders] in another state,” application of the
statute was still limited by the U.S. Supreme Court’s physical presence standard. In fact, much of the
statute is written in terms of being physically present within Florida. 20

Taxation of Mail Order Sales
Section 212.0596, F.S., establishes when a dealer who makes a mail-order sale is subject to the
powers of this state to levy and collect Florida’s sales tax. A “mail-order sale” is a sale of tangible
personal property, ordered by mail or other means of communication, from a dealer who receives the
order in another state of the United States, or in a commonwealth, territory, or other area under the
jurisdiction of the United States, and transports the property or causes the property to be transported to
a person in Florida. 21

12 S. 212.18(3), F.S.
13 Florida Dept. of Revenue, Who must pay tax? Partial list of taxable business activities, available at

https://floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx (last visited March 9, 2021).
14 S. 212.15, F.S.
15 See s. 212.06, F.S.
16 See Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977).
17 National Bellas Hess, Inc., v. Illinois, 386 U.S. 753 (1967); Quill Corporation v. North Dakota, 504 U.S. 298 (1992).
18 Quill Corporation v. North Dakota, at 314-315.
19 See s. 212.0596(1), F.S.
20 See s. 212.0596(2)(j), F.S. (requiring dealers to collect tax on mail order sales if the dealer owns real property or

tangible personal property that is physically in this state…).
21 S. 212.0596(1), F.S.
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Pursuant to s. 212.0596(2), F.S., a dealer who makes a mail-order sale is subject to the power of this
state to levy and collect the tax imposed by ch. 212, F.S., under any of the following circumstances:
• The dealer is a corporation doing business under the laws of this state or is a person domiciled
in, a resident of, or a citizen of, this state.
• The dealer maintains retail establishments or offices in this state.
• The dealer has agents in this state who solicit business or transact business on behalf of the
dealer.
• The property was delivered in this state in fulfillment of a sales contract that was entered into in
this state when a person in this state accepted an offer by ordering the property.
• The dealer, by purposefully or systematically exploiting the market provided by this state by any
media-assisted, media-facilitated, or media-solicited means, creates nexus with this state.
• Through compact or reciprocity with another jurisdiction of the United States, that jurisdiction
uses its taxing power and its jurisdiction over the retailer in support of this state’s taxing power.
• The dealer consents, expressly or by implication, to the imposition of the tax imposed by
ch. 212, F.S.
• The dealer is subject to service of process under s. 48.181, F.S.
• The dealer’s mail order sales are subject to the power of this state to tax sales or to require the
dealer to collect use taxes under a statute or statutes of the United States.
• The dealer owns real property or tangible personal property that is physically in this state.
• The dealer is a corporation that is a member of an affiliated group of corporations and whose
members are eligible to file a consolidated tax return for federal corporate income tax purposes
and any parent or subsidiary corporation in the affiliated group has nexus with this state.
• The dealer or the dealer’s activities have sufficient connection with or relationship to this state or
its residents of some type, other than those described above, to create nexus empowering this
state to tax its mail order sales or to require the dealer to collect sales tax or accrue use tax. 22

A dealer who makes a mail order sale into this state is exempt from collecting and remitting any local
option surtax on the sale, except under certain circumstances. 23 The Department may establish by rule
procedures for collecting the use tax from unregistered persons who but for their remote purchases
would not be required to remit sales or use tax directly to the Department. 24

Currently, a purchaser who remits use tax on an item imported into Florida for use or consumption is
not required to include in the remittance any local discretionary sales surtax. 25

The Wayfair Decision

On June 21, 2018, the U.S. Supreme Court decided South Dakota v. Wayfair. 26 Wayfair involved a new
South Dakota sales tax collection statute and Wayfair, Inc., a large online retailer with no physical
presence in South Dakota that sells and ships tangible personal property to customers all over the
United States.

The Wayfair decision overturned the “physical presence” substantial nexus test under the Commerce
Clause of the U.S. Constitution. The removal of the physical presence test expanded states’ ability to
collect sales taxes; however, the foundational constitutional requirement that state laws may not place
an undue burden upon interstate commerce remains.

The facts involved in Wayfair provide guidance for states in determining the structure of a state
requirement for a remote seller without physical presence in the taxing state to collect and remit that
state’s sales and use tax:
• The South Dakota law requires only remote sellers with $100,000 of sales or 200 individual
transactions into South Dakota to collect its sales tax. The law effectively has a “small seller

22 S. 212.0596(2), F.S.
23 S. 212.0596(6), F.S.
24 S. 212.0596(7), F.S. DOR has adopted Rule 12A-1.091, F.A.C. to, in part, address this issue.
25 See Rule 12A-1.091(14)(d), F.A.C.
26 South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018).
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DATE: 3/25/2021
exception” allowing small retailers—theoretically, the ones most burdened by remote sales tax
collection—to avoid collection responsibilities.
• The South Dakota law did not apply retroactively.
• South Dakota is a member of the Streamlined Sales and Use Tax Agreement, which provides a
simplified registration process, as well as free software to assist with collection and reporting.

State Reactions to Wayfair
In response to the Wayfair decision, 43 states and the District of Columbia have enacted provisions
requiring remote sellers to collect sales tax, and 42 states and the District of Columbia have enacted
provisions requiring a marketplace provider/facilitator to collect sales tax. 27

Fees Related to Sales of Certain Items

Enhanced 911 Fee
The Emergency Communications Number E911 Act established a comprehensive statewide
emergency telecommunications number system to provide users of voice communications services
within this state rapid direct access to public safety agencies by accessing the telephone number “911.”
To accomplish this purpose, the Legislature authorized the levy of a reasonable fee on users of voice
communications services. With respect to wireless communications services, the fee is bifurcated by
non-prepaid wireless service 28 and prepaid wireless service. 29

The fee imposed on prepaid wireless services is currently 40 cents and is collected by a seller for
remittance to the Department. Revenues derived from the fees levied on prepaid wireless services, less
the costs of administration, are deposited by the Department into the Emergency Communications
Number E911 System Fund 30 and then distributed, in part, to the various counties for specific purposes
and costs attributable to providing E911 service. 31 In Local Fiscal Year 2019-20 counties received
approximately $15 million of prepaid wireless services fees. 32

Fees for Waste Tires and Lead-acid Batteries

Waste tires and lead-acid batteries are considered “special wastes” that require special handling and
management 33 and must be disposed of accordingly. 34 Each new tire sold at retail is subject to a $1
waste tire fee 35 and each new or remanufactured lead-acid battery is subject to a $1.50 lead-acid
battery fee. 36

The proceeds from the waste tire fee are deposited into the Solid Waste Management Trust Fund and
a portion is used to fund the waste tire abatement program. 37 The proceeds from the lead-acid battery
fee are deposited into the Water Quality Assurance Trust Fund. 38

Effect of Proposed Changes

27 Economic Nexus State Guide by the Sales Tax Institute, available at

https://www.salestaxinstitute.com/resources/economic-nexus-state-guide (last visited March 9, 2021).
28 S. 365.172(8), F.S.
29 S. 365.172(9), F.S.
30 S. 365.173(1)(b), F.S.
31 S. 365.173(2), F.S. and s. 365.172(10), F.S.
32 EDR, Enhance 911 Fee (Data Source: DMS), County Distributions: LFY 2014-2020 (Oct. 22, 2020), available at

http://edr.state.fl.us/Content/local-government/data/data-a-to-z/a-f.cfm (last visited Feb. 15, 2021).
33 S. 403.703(40), F.S.
34 See s. 403.717, F.S., and s. 403.708(12), F.S., encouraging “all persons who sell lead-acid batteries at retail” to “accept

used lead-acid batteries as trade-ins for new lead-acid batteries.”
35 S. 403.718, F.S.
36 S. 403.7185, F.S.
37 See s. 403.7095, F.S.
38 S. 403.7185, F.S.
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Taxation of Remote Sales and Marketplace Sales

The PCS requires out-of-state retailers and marketplace providers with no physical presence in Florida
to collect Florida’s sales tax on sales of taxable items delivered to purchasers in Florida if the out-of-
state retailer or marketplace provider makes a substantial number of sales into Florida.

Remote Sellers

The PCS substantially amends s. 212.0596, F.S. It changes the catch line to refer to the taxation of
remote sales, removes references or requirements related to a “mail order sale,” and provides that a
person who makes a substantial number of remote sales is a dealer for purposes of ch. 212, F.S.

The PCS defines:
• “Remote sale” to mean a retail sale of tangible personal property, ordered by mail, telephone,
the Internet, or other means of communication, from a dealer who receives the order outside of
this state and transports the property or causes the property to be transported from any
jurisdiction, including this state, to a person in this state, including the person who ordered the
property.
• “Making a substantial number of remote sales” to mean conducting any number of taxable
remote sales of tangible personal property in the prior calendar year to be delivered in Florida, if
the total sales exceed $100,000.

The PCS also inserts an express provision in s. 212.0596, F.S., requiring out-of-state retailers and
marketplace providers to collect surtax when a taxable item is delivered into a county that imposes a
surtax.

Marketplace Provisions

The PCS creates s. 212.05965, F.S., to provide that each marketplace provider that has a physical
presence in Florida or that makes or facilitates a substantial number of remote sales in Florida, is a
dealer, and is subject to the requirements in ch. 212, F.S., relating to registration and the collection and
remittance of tax.

The PCS defines:
• “Marketplace” to mean any physical place or electronic medium through which tangible personal
property is offered for sale.
• “Marketplace provider” to mean a person who facilitates a retail sale by a marketplace seller by
listing or advertising for sale by the marketplace seller tangible personal property in a
marketplace, and who directly, or indirectly through agreements or arrangements with third
parties, collects payment from the customer and transmits all or a part of the payment to the
marketplace seller, regardless of whether the marketplace provider receives compensation or
other consideration in exchange for its services.
• Excluded from the definition of marketplace provider is (1) any person who solely provides
travel agency services, (2) a delivery network company, unless the delivery network company is
a registered dealer that notifies all local merchants that sell through the delivery company’s
website or mobile application that the delivery network company must remit taxes in the same
way as a marketplace provider, or (3) a payment processor business whose sole activity with
respect to marketplace sales is to handle payment transactions between two parties..
• “Marketplace seller” to mean a person who has an agreement with a marketplace provider and
who makes retail sales of tangible personal property through a marketplace owned, operated, or
controlled by the marketplace provider.

Marketplace providers with a physical presence in Florida, or those making or facilitating a substantial
number of remote sales into this state, are subject to the requirements imposed on dealers by ch. 212,
F.S., for registering, collecting and remitting sales tax. A marketplace provider must certify to its
marketplace sellers that it will collect and remit the sales tax to the Department. A marketplace seller
may not collect and remit sales tax on transactions facilitated through the marketplace when the
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marketplace provider certifies that it will collect and remit the tax. A marketplace seller must exclude
sales made through the marketplace from its tax return. A marketplace seller with a physical presence
in Florida, or that makes a substantial number of remote sales must register, collect, and remit sales tax
on taxable sales made outside of the marketplace.

A marketplace provider must allow the Department to examine and audit its books and records. The
marketplace provider is relieved of liability for the tax, and the marketplace seller or customer is liable
for the tax imposed under this chapter if the marketplace provider demonstrates that it made a
reasonable effort to obtain accurate information related to the retail sales facilitated through the
marketplace from the marketplace seller, but the failure to collect and pay the correct amount of tax
imposed under this chapter was due to incorrect or incomplete information provided by the marketplace
seller to the marketplace provider.

The PCS makes conforming statutory changes to reflect that references to “mail order sales” are now
to “remote sales.”

The PCS defines:
• “Delivery network company” as a person who maintains a website or mobile application used to
facilitate delivery services, the sale of local products, or both.
• “Delivery network courier” as an individual who provides delivery services through a delivery
network company website or mobile application using a personal means of transportation, such
as a motor vehicle as defined in s. 320.01(1), F.S., bicycle, scooter, or other similar means of
transportation; using public transportation; or by walking.
• “Delivery services” as the pickup and delivery by a delivery network courier of one or more local
products from a local merchant to a customer, which may include the selection, collection, and
purchase of the local product in connection with the delivery. The term does not include any
delivery requiring more than 75 miles of travel from the local merchant to the customer.
• “Local merchant” as a kitchen, restaurant, or a third-party merchant, including a grocery store,
retail store, convenience store, or business of another type, which is not under common
ownership or control of the delivery network company.
• “Local product” as any tangible personal property, including food, but excluding freight, mail, or
a package to which postage has been affixed.

The PCS, effective April 1, 2022, amends s. 212.05965, F.S., to allow a marketplace provider and a
qualifying marketplace seller to agree contractually to have the marketplace seller collect and remit the
taxes for sales on the marketplace. To qualify for this treatment a marketplace seller must have annual
U.S. gross sales of more than $1 billion, including the gross sales of any related entities, and in the
case of franchised entities, including the combined sales of all franchisees of a single franchisor.

Other fees

The PCS also requires, effective April 1, 2022, a marketplace provider, at the time of sale, to collect
and remit the prepaid wireless E911 fee, 39 the waste tire fee, 40 and the lead-acid battery fee, 41 on
applicable sales.

Rounding

The PCS removes the bracket system found in s. 212.12, F.S., and replaces it with a rounding
algorithm for calculation of tax due. It provides that a seller may elect to compute tax on a per-item
basis or on a per-invoice basis. The tax amount must be carried to the third decimal place when it is
computed. If the third decimal place is greater than four, the tax shall be rounded to the next whole
cent. Dealers have the option to use the traditional bracket system or the rounding system on

39 S. 365.172, F.S.
40 S. 403.718, F.S.
41 S. 403.7185, F.S.
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transactions between July 1, 2021, and September 31, 2021. Conforming changes are made in other
statutes to change “bracket” to “algorithm.”

Administrative and Conforming Changes Related to Sales Tax Collection

The PCS makes conforming changes related to the removal of “mail order sales” and addition of
“remote sales.” It clarifies that the act first applies to remote sales made or facilitated on or after July 1,
2021, by a person who made or facilitated a substantial number of remote sales in calendar year 2020.
A marketplace seller should only consider those sales made outside of a marketplace to determine
whether it made a substantial number of remote sales in calendar year 2020.

The PCS grants relief of liability for tax, penalty, and interest to the following persons upon registration
with the Department by October 1, 2021: any person who conducted remote sales prior to the effective
date of the act; a marketplace seller for those remote sales made before the effective date of the act;
and a marketplace provider with a physical presence in this state (relief of liability is limited to those
sales the marketplace provider facilitated on behalf of marketplace sellers).

Additionally, the Department may not use data received from registered marketplace providers or
persons making remote sales to identify use tax liabilities if the person with the use tax liability is not
registered with the Department, is not required to register with the Department, and his or her use tax
liability was created before July 1, 2021.

The relief provided to the persons outlined above does not apply if an assessment has been made, an
audit commenced, a bill was issued, or court proceedings began before July 1, 2021.

This relief does not establish a right to a refund or credit of taxes already paid.

The PCS provides emergency rulemaking authority to the Department.

Current Situation

Reemployment Assistance Tax

Florida employers pay a state reemployment assistance (RA) tax, the proceeds of which are deposited
in the state Unemployment Compensation Trust Fund (UCTF) to pay benefits to unemployed
Floridians. 42 In the six months before the COVID-19 pandemic, the average unemployment benefits
paid out by the state were $27.2 million per month. Benefit payments for April 2020 were $220.3
million, for May 2020 were $772.1 million, for June 2020 were $761.1 million, and for July 2020 were
$810.8 million, before falling to an average of approximately $252 million per month for the rest of the
year. 43

Generally speaking, the cost of RA benefits paid to each unemployed individual are factored in to the
rate paid by each employer, because the benefits are either “charged” to the individual’s prior employer
or are shared among all employers (if certain conditions are met). The rates employers pay are
therefore tied directly or indirectly to the number of unemployed people in Florida and the benefits that
have been paid out.

From December 2015 through March 2020, the unemployment rate in Florida was less than 5%. The
February 2020 rate was a historic low of 2.8%. The March unemployment rate increased to 4.4%. Due

42 Florida Reemployment Tax, available on the DOR website at

https://floridarevenue.com/taxes/taxesfees/Pages/reemployment.aspx (last visited March 15, 2021).
43 Unemployment Compensation Trust Fund Forecast Adopted January 5, 2021, available on the EDR website at

http://edr.state.fl.us/Content/revenues/reports/unemployment-compensation-trust-fund/January2021ForecastSummary.pdf
(last visited March 13, 2021).
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to the COVID-19 pandemic, that rate increased dramatically to 14.7% in April 2020, before slowly
coming back down to 6.1% in December 2020. 44

Generally speaking, the RA tax rate for employers is structured so that it will automatically increase
when more benefits are paid out and the trust fund balance decreases. As such, under current law,
Florida’s employers are subject to unexpectedly large increases in their Reemployment tax liabilities
due to the effects of the COVID-19 pandemic. Businesses were mailed rate increase notices in January
2021 for wages paid in calendar year 2021. Taxes are paid quarterly, and the report and tax due for the
first quarter must be postmarked by April 30. 45 Because taxes are paid only on the first $7,000 of an
employee’s wages each year, most of these annual taxes are due in the first quarter of the year, and
are payable by April 30th.

The ending balance of the UCTF in December 2019 was $4,071,519,600. Payments made through the
end of 2020 brought the balance down to $866.1 million at the end of the year, a decrease of nearly
79%. 46 In January 2021, the Revenue Estimating Conference (REC) estimated that the balance of the
UCTF by the end of March 2021 would be $517.9 million. The UCTF balance was $400.4 million as of
March 12, 2021.

Tax Liability Calculation 47

An employer’s state tax liability is calculated by multiplying the employer’s state-assigned tax rate by
taxable wages paid to employees. The Department annually recalculates and assigns employer tax

44 Florida Department of Economic Opportunity, Florida’s December Employment Figures Released, available at

http://lmsresources.labormarketinfo.com/library/press/release.pdf (last visited March 13, 2021).
45 Reemployment Tax Report and Payment Information, available at

https://floridarevenue.com/taxes/taxesfees/Pages/rt_return_pay.aspx (last visited March 15, 2021).
46 Unemployment Compensation Trust Fund Forecast Adopted January 5, 2021, available on the EDR website at

http://edr.state.fl.us/Content/revenues/reports/unemployment-compensation-trust-fund/January2021ForecastSummary.pdf
(last visited March 13, 2021).
47 General information available from: Office of Economic and Demographic Research, The Florida Legislature, Florida

Tax Handbook, Reemployment Assistance Tax, 154-156 (20), available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2020.pdf (last visited March 12, 2021).
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rates. Additionally, the federal government levies an annual payroll tax under the Federal
Unemployment Tax Act (FUTA).

In general, an employer’s state RA tax rate is determined using three factors: the fund size factor; the
non-charges and excess payments factor; and a variable factor based on each employer’s
unemployment experience. 48 The fund size factor is based upon the amount in the UCTF. Non-charges
are the result, for instance, of an employee working for less than 90 days and being laid off. The
employer is not charged for that separation of employment but the cost is spread among all employers.
Excess payments occur when a business that is paying the maximum rate has unemployment
experience greater than the business is paying in taxes, so that all persons separated from
employment from that business are not covered by the RA tax payments from that business. Those
costs are also spread across all employers. The variable factor is generally based upon an employer’s
unemployment compensation experience. These factors combined are used in calculating an
employer’s RA tax rate. Generally, the maximum tax rate is 5.4%, regardless of what would otherwise
be dictated by the three factors.

Taxable wages include all remuneration for employment, including commissions, bonuses, and back
pay awards. However, remuneration to an individual during a calendar year in excess of the first $7,000
paid is exempt.

The FUTA tax rate levied by the federal government is 6.0%. However, employers in Florida currently
receive a 5.4% credit against that tax, resulting in an effective federal tax rate of 0.6% applied to
taxable wages.

Expected Tax Payments

Under current law, the REC forecasts total RA tax payments of $963 million in Fiscal Year (FY) 2020-
21, roughly $1.4 billion in tax payments in FYs 2021-22 and 2022-23, and tax payments of $1.1 billion
in FY 2023-24. 49

48 Section 443.131, F.S.
49 Unemployment Compensation Trust Fund Forecast Adopted January 5, 2021, available on the EDR website at

http://edr.state.fl.us/Content/revenues/reports/unemployment-compensation-trust-fund/January2021ForecastSummary.pdf
(last visited March 12, 2021).
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Effect of Proposed Changes

Reemployment Assistance Tax Provisions

The PCS provides for annual transfers to the UCTF in the amount of the expected first-year recurring
revenue ($1.08 billion) from adopting remote seller and marketplace provider sales tax collection
provisions except for FY 2021-2022, when the transfer will be the first-year cash revenue from those
provisions ($973.6 million). 50 It does so by requiring transfers to the UCTF of $324.5 million on or
before July 25, August 25, and September 25, 2021, and by requiring transfers of $90 million each
month beginning in July 2022. These distributions of $1.08 billion per year will be used to replenish the
UCTF, which is significantly depleted due to the COVID-19 pandemic’s effects in Florida. Distributions
will automatically end when the Office of Economic and Demographic Research notifies the
Department that the UCTF reaches the pre-pandemic balance from December 31, 2019, or December
31, 2025, whichever is earlier. At that point, those collections will instead go to General Revenue.

The RA tax calculation provisions are temporarily amended by the PCS to disallow adjustments that
are related to the pandemic and to further adjust rates as needed to ensure pandemic-related effects
are not adversely affecting employers in the coming years. These changes are retroactive to June 29,
2020, and will require the Department to notify employers of any changes to their RA tax rate as a
result of the adjustments in the PCS. For any 2021 RA tax payments that are made based on the
existing calculation, the PCS requires the Department to issue refunds for the difference between the
old and new RA tax liabilities. Certain rate adjustments will continue until the pandemic period is no
longer included in the calculation (e.g., provisions that completely remove all benefits paid from April 1,
2020, through December 31, 2020, from the calculation). Other adjustment factors (e.g., a provision
that prevents the tax rate from being increased if the trust fund balance is too low) will revert to the
standard calculation once the Office of Economic and Demographic Research notifies the Department
that as of the end of the fiscal year, the UCTF has reached the balance from December 31, 2019. The
goal of these changes is to prevent any increase to an employer’s rates due to the effects of the
pandemic, but to retain the integrity of the RA rate calculation which, per federal requirements, is
normally based on the employer’s actual employment history.

To ensure the balance of the UCTF stays positive throughout 2021, any refunds issued before August
31, 2021, will be paid from General Revenue. Distributions to the UCTF in July, August, and September
2021, will be reduced by the amount of any refunds paid from General Revenue.

The Department is authorized to contract with a qualified vendor without using a competitive solicitation
process to ensure programming is completed in a timely manner, and is appropriated $353,000 in
nonrecurring funds from General Revenue to provide revised RA rate notices for 2021 to Florida
employers.

The PCS takes effect on July 1, 2021, except as otherwise provided.

50 The Marketplace provision has an estimated first year recurring impact of $968.5 million (Adopted impact by the

Revenue Estimating Impact Conference is available on the EDR website at
http://edr.state.fl.us/Content/conferences/revenueimpact/archives/2021/_pdf/page22-25.pdf (last visited March 15, 2021),
and the Remote Sellers provision has an estimated first year recurring impact of $111.2 (Adopted impact by the Revenue
Estimating Impact Conference is available on the EDR website at
http://edr.state.fl.us/Content/conferences/revenueimpact/archives/2021/_pdf/page26-33.pdf (last visited March 15, 2021).

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B. SECTION DIRECTORY:
Section 1 provides that the act may be cited as the “Park Randall ‘Randy’ Miller Act.”

Section 2 amends the definition of “retail sale” in s. 212.02, F.S., to include a remote sale and a sale
facilitated through a marketplace.

Section 3 amends s. 212.05, F.S., to amend legislative intent to apply the sales and use tax to remote
sales.

Section 4 amends s. 212.054, F.S., to distribute the proceeds of the discretionary surtax remitted
by out-of-state retailers and marketplace providers to counties that impose a surtax.

Section 5 substantially amends s. 212.0596, F.S. This section changes the catch line to refer to the
taxation of remote sales, removes references or requirements related to a “mail order sale,” and
provides that a person who makes a substantial number of remote sales is a dealer for purposes of ch.
212, F.S.

Section 6 creates s. 212.05965, F.S., which provides for the taxation of sales through marketplace
providers.

Section 7 effective April 1, 2022, amends s. 212.05965, F.S., to allow a marketplace provider and a
qualifying marketplace seller to agree contractually to have the marketplace seller collect and remit the
taxes for sales on the marketplace. To qualify for this treatment a marketplace seller must have annual
U.S. gross sales of more than $1 billion, including the gross sales of any related entities, and in the
case of franchised entities, including the combined sales of all franchisees of a single franchisor.

This section also requires, effective April 1, 2022, a marketplace provider, at the time of sale, to collect
and remit the prepaid wireless E911 fee, the waste tire fee, and the lead-acid battery fee, on applicable
sales.

Section 8 amends s. 212.06, F.S., to specify that the term “dealer” includes a retailer who transacts a
substantial number of remote sales or is a marketplace provider.

Section 9 amends s. 212.07, F.S., to make conforming changes.

Section 10 amends s. 212.11, F.S., to require remote sellers and marketplace providers to file returns
and remit taxes electronically.

Section 11 amends s. 212.12, F.S., to (1) remove the authority given to the executive director of the
Department to negotiate a collection allowance with a dealer who makes mail order sales, (2) remove
language requiring the use of brackets when calculating tax and replacing it with a rounding algorithm,
and (3) delete language that kept dealers who made mail order sales from participating in the state’s
2.5 percent collection allowance.

Section 12 makes conforming changes to s. 212.18 F.S., to change the term “mail order sale” to
“remote sale” and clarify that remote sellers and marketplace providers must register electronically.

Section 13 amends s. 212.20(4), F.S., to include sales taxes collected as provided in s. 212.05965,
F.S., as a tax for which if found unconstitutional requires the Department to issue a refund to any
person who paid such tax in the amount of tax paid.

This section also amends s. 212.20(6), F.S., to provide for transfers to the Unemployment
Compensation Trust Fund until the balance of that fund reaches the balance from December 31, 2019,
or December 31, 2025, whichever is earlier.

Section 14 amends s. 443.1216, F.S., to correct a cross-reference.
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Section 15 amends s. 443.131, F.S., to provide for an alternative calculation of an employer’s
applicable rate for reemployment taxes during certain years. This provision is retroactive to June 29,
2020.

Section 16 amends s. 443.191. F.S., to allow for transfers to the Unemployment Compensation Trust
Fund.

Section 17 amends s. 212.04, F.S., to make a conforming change related to rounding.

Section 18 amends s. 212.0506, F.S., to make a conforming change related to rounding.

Section 19 amends s. 213.015, F.S., to correct a cross-reference.

Section 20 provides that taxpayers can calculate tax using either the bracket system or the rounding
algorithm for transactions between July 1, 2021, and September 30, 2021.

Section 21 makes conforming changes to s. 213.27(5), F.S., to clarify that s. 213.27(5), F.S., regarding
contract auditing, applies to a person making or facilitating remote sales under s. 212.0596, F.S. or s.
212.05965, F.S.

Section 22 reenacts s. 212.055(2)(c), (3)(c), (8)(c), and (9)(c), F.S., to incorporate changes made by
the PCS.

Section 23 provides that this act first applies to remote sales made or facilitated on or after July
1, 2021, by a person who made or facilitated a substantial number of remote sales in calendar year
2020.

Section 24 grants relief of liability for tax, penalty, and interest to certain persons upon registration with
the Department by October 1, 2021.

Section 25 authorizes the Department to adopt emergency rules to implement the PCS. The
emergency rulemaking grant is authorized upon the act becoming law and expires July 1, 2022.

Section 26 provides that the Department is authorized to contract with a qualified vendor without using
a competitive solicitation process for purposes of administering this act.

Section 27 provides an appropriation to the Department of $353,000 in nonrecurring funds for FY
2020-2021.

Section 28 provides that, if any provision of the act is found to be invalid, the invalidity does not affect
other provisions or applications of the act which can be given effect without the invalid provision or
application and, to this end, the provisions of the act are severable.

Section 29 provides that this section takes effect upon becoming law, and, except as otherwise
provided, the PCS takes effect July 1, 2021.

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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
See FISCAL COMMENTS section.

2. Expenditures:
The PCS provides a one-time appropriation of $353,000 to the Department of Revenue for FY
2020-21.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
See FISCAL COMMENTS section.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The PCS will prevent substantial increases in reemployment assistance taxes facing most Florida
businesses under current law. The PCS will also address a competitive disadvantage Florida
businesses currently face when competing against out-of-state businesses that do not collect Florida
sales tax on sales they make into Florida.

D. FISCAL COMMENTS:
The Revenue Estimating Conference (REC) estimated that the sales tax collection provisions of the
PCS will have a positive revenue impact in FY 2021-22 totaling $1,203.4 million ($1,337.0 million
recurring) of which $973.6 million ($1,079.7 million recurring) is on General Revenue, $0.3 million ($3.6
million recurring) is on state trust funds, and $229.5 million ($253.7 million recurring) is on local
government. The PCS also provides that beginning in FY 2021-22, $973.6 million a year (increasing to
$1.080 million in FY 2022-23 and thereafter) will be transferred to the Unemployment Compensation
Trust Fund until such time as the trust fund reaches its pre-pandemic balance ($4,071,519,600).

III. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This PCS does not appear to require counties or municipalities to spend funds or
take action requiring the expenditures of funds; reduce the authority that counties or municipalities
have to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties
or municipalities.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The PCS provides emergency rulemaking authority to the Department of Revenue.

C. DRAFTING ISSUES OR OTHER COMMENTS:

STORAGE NAME: pcs0015.COM PAGE: 14
DATE: 3/25/2021
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

STORAGE NAME: pcs0015.COM PAGE: 15
DATE: 3/25/2021
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1 A bill to be entitled
2 An act relating to taxation; providing a short title;
3 amending s. 212.02, F.S.; revising the definition of
4 the term "retail sale" to include sales facilitated
5 through a marketplace; conforming a provision to
6 changes made by the act; amending s. 212.05, F.S.;
7 conforming provisions to changes made by the act;
8 amending s. 212.054, F.S.; requiring marketplace
9 providers and persons located outside of this state to
10 remit discretionary sales surtax when delivering
11 tangible personal property to a county imposing a
12 surtax; amending s. 212.0596, F.S.; replacing
13 provisions relating to the taxation of mail order
14 sales with provisions relating to the taxation of
15 remote sales; defining the terms "remote sale" and
16 "substantial number of remote sales"; providing that
17 every person making a substantial number of remote
18 sales is a dealer for purposes of the sales and use
19 tax; authorizing the Department of Revenue to adopt
20 rules for collecting use taxes from unregistered
21 persons; requiring marketplace providers and persons
22 required to report remote sales to remit discretionary
23 sales surtax when delivering tangible personal
24 property to a county imposing a surtax; creating s.
25 212.05965, F.S.; defining terms; providing that

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26 certain marketplace providers are dealers for purposes
27 of the sales and use tax; requiring certain
28 marketplace providers to provide a certain
29 certification to their marketplace sellers; specifying
30 requirements for marketplace sellers; requiring
31 certain marketplace providers to allow the Department
32 of Revenue to examine and audit their books and
33 records; specifying the examination and audit
34 authority of the Department of Revenue; providing that
35 a marketplace seller, rather than the marketplace
36 provider, is liable for sales tax collection and
37 remittance under certain circumstances; authorizing
38 marketplace providers and marketplace sellers to enter
39 into agreements for the recovery of certain taxes,
40 interest, and penalties; providing construction and
41 applicability; amending s. 212.05965, F.S.; requiring
42 marketplace providers to collect and remit certain
43 additional fees at the time of sale; authorizing
44 marketplace providers and marketplace sellers to
45 contractually agree for marketplace sellers to collect
46 applicable taxes and fees; specifying requirements for
47 marketplace sellers who collect such taxes and fees;
48 providing for liability of sellers who fail to collect
49 or remit such taxes and fees; amending s. 212.06,
50 F.S.; revising the definition of the term "dealer";

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51 conforming provisions to changes made by the act;
52 amending 212.07, F.S.; conforming a cross-reference;
53 amending 212.11, F.S.; requiring certain marketplace
54 providers or persons required to report remote sales
55 to file returns and pay taxes electronically; amending
56 s. 212.12, F.S.; deleting the authority of the
57 Department of Revenue's executive director to
58 negotiate a collection allowance with certain dealers;
59 deleting the requirement that certain sales and use
60 taxes on communications services be collected on the
61 basis of a certain addition; requiring that certain
62 sales and use taxes be calculated based on a specified
63 rounding algorithm, rather than specified brackets;
64 conforming provisions to changes made by the act;
65 amending s. 212.18, F.S.; requiring certain
66 marketplace providers or persons required to report
67 remote sales to file a registration application
68 electronically; conforming a provision to changes made
69 by the act; amending s. 212.20, F.S.; providing
70 applicability of requirements for refund of taxes
71 adjudicated unconstitutionally collected to taxes
72 levied or collected pursuant to marketplace
73 provisions; requiring certain amounts to be deposited
74 into the Unemployment Compensation Trust Fund during
75 specified periods; specifying requirements for the

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76 Department of Revenue in reducing distributions by
77 certain refund amounts paid out of the General Revenue
78 Fund; requiring the Office of Economic and Demographic
79 Research to certify to the Department of Revenue
80 whether the trust fund balance exceeds a certain
81 amount; providing for contingent future repeal;
82 amending s. 443.1216, F.S.; conforming a cross-
83 reference; amending s. 443.131, F.S.; specifying, at
84 certain periods, multipliers to be applied to employer
85 chargeable benefits for purposes of calculating
86 employer reemployment assistance contribution rates;
87 excluding reemployment benefits paid during a certain
88 timeframe and certain COVID-19-related benefits paid
89 from being included in a variable rate calculation;
90 requiring that contribution rates in certain years be
91 calculated without applying a trust fund positive
92 adjustment factor; excluding reemployment benefits
93 paid during a certain timeframe and certain COVID-19-
94 related benefits paid from being calculated in the
95 noncharge benefits and excess payments adjustment
96 factors; requiring the tax collection service provider
97 to reissue rates for a certain year; specifying
98 requirements for employers and the Department of
99 Revenue; requiring a refund of excess paid amounts
100 under certain circumstances; specifying requirements

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101 for calculating and assigning contribution rates for
102 certain years; specifying requirements for the
103 Department of Economic Opportunity and the tax
104 collection service provider; providing for contingent
105 future repeal of modified rate calculations;
106 specifying requirements for calculating adjustments to
107 a benefit ratio multiplier; conforming a cross-
108 reference; providing retroactive applicability;
109 amending s. 443.191, F.S.; adding a specified source
110 of revenues to the Unemployment Compensation Trust
111 Fund; amending ss. 212.04 and 212.0506, F.S.;
112 conforming provisions to changes made by the act;
113 amending 213.015, F.S.; conforming a cross-reference;
114 authorizing taxpayers to use one of two methods for
115 calculating sales tax for a specified timeframe
116 providing construction; amending s. 213.27, F.S.;
117 conforming provisions to changes made by the act;
118 reenacting s. 212.055(2)(c), (3)(c), (8)(c), and
119 (9)(c), F.S., relating to discretionary sales
120 surtaxes, to incorporate the amendment made to s.
121 212.054, F.S., in references thereto; providing
122 applicability; providing relief to certain persons for
123 liability for tax, penalty, and interest due on
124 certain remote sales and owed on certain purchases
125 that occurred before a certain date; providing

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126 applicability; prohibiting the department from using
127 data received from marketplace providers or persons
128 making remote sales for certain purposes; providing
129 applicability; providing construction; authorizing the
130 department to adopt emergency rules; providing for
131 expiration of that authority; authorizing the
132 department to contract with a qualified vendor for
133 certain purposes without using a competitive
134 solicitation process; providing an appropriation;
135 providing for severability; providing effective dates.
136
137 WHEREAS, during the 2020 calendar year, the United States
138 economy was significantly strained by the COVID-19 pandemic, and
139 such economic stress is continuing in the 2021 calendar year and
140 may have impacts in later years, and
141 WHEREAS, the State of Florida was in full lockdown during
142 April 2020 and then began to reopen the Florida economy in a
143 measured manner thereafter, and
144 WHEREAS, the financial strain of lockdowns and reduced
145 economic activity caused some Florida businesses to close
146 permanently and others to terminate portions of their workforce,
147 and
148 WHEREAS, in the 6-month period before April 2020, Florida's
149 average monthly reemployment assistance benefits expense was
150 $27.2 million, and

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151 WHEREAS, beginning in April 2020, Florida's monthly
152 reemployment assistance benefits expense increased by 800
153 percent over the prior 6-month average, and at times, the
154 increase exceeded 2,000 percent, and
155 WHEREAS, in the current time of recovery, Florida's
156 reemployment assistance benefits expense remains 473 percent
157 over the 6-month average benefit amount before April 2020, and
158 is estimated to continue at elevated levels for the foreseeable
159 future, and
160 WHEREAS, to the fullest extent possible, the Legislature
161 intends to relieve individual Florida businesses of increases in
162 the Reemployment Assistance Tax which are due to increased
163 reemployment assistance benefits resulting from the pandemic,
164 and
165 WHEREAS, the Legislature intends to ensure that the
166 Unemployment Compensation Trust Fund remains solvent for the
167 purposes of providing benefits to Floridians impacted by these
168 extraordinary events, and
169 WHEREAS, the Legislature intends to equalize the tax
170 collection responsibilities of retailers both inside and outside
171 Florida who make sales of taxable items to Florida residents,
172 NOW, THEREFORE,
173
174 Be It Enacted by the Legislature of the State of Florida:
175

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176 Section 1. This act may be cited as the "Park Randall
177 'Randy' Miller Act."
178 Section 2. Paragraph (e) of subsection (14) of section
179 212.02, Florida Statutes, is amended, and paragraph (f) is added
180 to that subsection, to read:
181 212.02 Definitions.—The following terms and phrases when
182 used in this chapter have the meanings ascribed to them in this
183 section, except where the context clearly indicates a different
184 meaning:
185 (14)
186 (e) The term "retail sale" includes a remote mail order
187 sale, as defined in s. 212.0596(1).
188 (f) The term "retail sale" includes a sale facilitated
189 through a marketplace as defined in s. 212.05965(1).
190 Section 3. Section 212.05, Florida Statutes, is amended to
191 read:
192 212.05 Sales, storage, use tax.—It is hereby declared to
193 be the legislative intent that every person is exercising a
194 taxable privilege who engages in the business of selling
195 tangible personal property at retail in this state, including
196 the business of making or facilitating remote mail order sales;,
197 or who rents or furnishes any of the things or services taxable
198 under this chapter;, or who stores for use or consumption in
199 this state any item or article of tangible personal property as
200 defined herein and who leases or rents such property within the

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201 state.
202 (1) For the exercise of such privilege, a tax is levied on
203 each taxable transaction or incident, which tax is due and
204 payable as follows:
205 (a)1.a. At the rate of 6 percent of the sales price of
206 each item or article of tangible personal property when sold at
207 retail in this state, computed on each taxable sale for the
208 purpose of remitting the amount of tax due the state, and
209 including each and every retail sale.
210 b. Each occasional or isolated sale of an aircraft, boat,
211 mobile home, or motor vehicle of a class or type which is
212 required to be registered, licensed, titled, or documented in
213 this state or by the United States Government shall be subject
214 to tax at the rate provided in this paragraph. The department
215 shall by rule adopt any nationally recognized publication for
216 valuation of used motor vehicles as the reference price list for
217 any used motor vehicle which is required to be licensed pursuant
218 to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any
219 party to an occasional or isolated sale of such a vehicle
220 reports to the tax collector a sales price which is less than 80
221 percent of the average loan price for the specified model and
222 year of such vehicle as listed in the most recent reference
223 price list, the tax levied under this paragraph shall be
224 computed by the department on such average loan price unless the
225 parties to the sale have provided to the tax collector an

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226 affidavit signed by each party, or other substantial proof,
227 stating the actual sales price. Any party to such sale who
228 reports a sales price less than the actual sales price is guilty
229 of a misdemeanor of the first degree, punishable as provided in
230 s. 775.082 or s. 775.083. The department shall collect or
231 attempt to collect from such party any delinquent sales taxes.
232 In addition, such party shall pay any tax due and any penalty
233 and interest assessed plus a penalty equal to twice the amount
234 of the additional tax owed. Notwithstanding any other provision
235 of law, the Department of Revenue may waive or compromise any
236 penalty imposed pursuant to this subparagraph.
237 2. This paragraph does not apply to the sale of a boat or
238 aircraft by or through a registered dealer under this chapter to
239 a purchaser who, at the time of taking delivery, is a
240 nonresident of this state, does not make his or her permanent
241 place of abode in this state, and is not engaged in carrying on
242 in this state any employment, trade, business, or profession in
243 which the boat or aircraft will be used in this state, or is a
244 corporation none of the officers or directors of which is a
245 resident of, or makes his or her permanent place of abode in,
246 this state, or is a noncorporate entity that has no individual
247 vested with authority to participate in the management,
248 direction, or control of the entity's affairs who is a resident
249 of, or makes his or her permanent abode in, this state. For
250 purposes of this exemption, either a registered dealer acting on

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251 his or her own behalf as seller, a registered dealer acting as
252 broker on behalf of a seller, or a registered dealer acting as
253 broker on behalf of the purchaser may be deemed to be the
254 selling dealer. This exemption shall not be allowed unless:
255 a. The purchaser removes a qualifying boat, as described
256 in sub-subparagraph f., from the state within 90 days after the
257 date of purchase or extension, or the purchaser removes a
258 nonqualifying boat or an aircraft from this state within 10 days
259 after the date of purchase or, when the boat or aircraft is
260 repaired or altered, within 20 days after completion of the
261 repairs or alterations; or if the aircraft will be registered in
262 a foreign jurisdiction and:
263 (I) Application for the aircraft's registration is
264 properly filed with a civil airworthiness authority of a foreign
265 jurisdiction within 10 days after the date of purchase;
266 (II) The purchaser removes the aircraft from the state to
267 a foreign jurisdiction within 10 days after the date the
268 aircraft is registered by the applicable foreign airworthiness
269 authority; and
270 (III) The aircraft is operated in the state solely to
271 remove it from the state to a foreign jurisdiction.
272
273 For purposes of this sub-subparagraph, the term "foreign
274 jurisdiction" means any jurisdiction outside of the United
275 States or any of its territories;

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276 b. The purchaser, within 90 days from the date of
277 departure, provides the department with written proof that the
278 purchaser licensed, registered, titled, or documented the boat
279 or aircraft outside the state. If such written proof is
280 unavailable, within 90 days the purchaser shall provide proof
281 that the purchaser applied for such license, title,
282 registration, or documentation. The purchaser shall forward to
283 the department proof of title, license, registration, or
284 documentation upon receipt;
285 c. The purchaser, within 30 days after removing the boat
286 or aircraft from Florida, furnishes the department with proof of
287 removal in the form of receipts for fuel, dockage, slippage,
288 tie-down, or hangaring from outside of Florida. The information
289 so provided must clearly and specifically identify the boat or
290 aircraft;
291 d. The selling dealer, within 30 days after the date of
292 sale, provides to the department a copy of the sales invoice,
293 closing statement, bills of sale, and the original affidavit
294 signed by the purchaser attesting that he or she has read the
295 provisions of this section;
296 e. The seller makes a copy of the affidavit a part of his
297 or her record for as long as required by s. 213.35; and
298 f. Unless the nonresident purchaser of a boat of 5 net
299 tons of admeasurement or larger intends to remove the boat from
300 this state within 10 days after the date of purchase or when the

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301 boat is repaired or altered, within 20 days after completion of
302 the repairs or alterations, the nonresident purchaser applies to
303 the selling dealer for a decal which authorizes 90 days after
304 the date of purchase for removal of the boat. The nonresident
305 purchaser of a qualifying boat may apply to the selling dealer
306 within 60 days after the date of purchase for an extension decal
307 that authorizes the boat to remain in this state for an
308 additional 90 days, but not more than a total of 180 days,
309 before the nonresident purchaser is required to pay the tax
310 imposed by this chapter. The department is authorized to issue
311 decals in advance to dealers. The number of decals issued in
312 advance to a dealer shall be consistent with the volume of the
313 dealer's past sales of boats which qualify under this sub-
314 subparagraph. The selling dealer or his or her agent shall mark
315 and affix the decals to qualifying boats in the manner
316 prescribed by the department, before delivery of the boat.
317 (I) The department is hereby authorized to charge dealers
318 a fee sufficient to recover the costs of decals issued, except
319 the extension decal shall cost $425.
320 (II) The proceeds from the sale of decals will be
321 deposited into the administrative trust fund.
322 (III) Decals shall display information to identify the
323 boat as a qualifying boat under this sub-subparagraph,
324 including, but not limited to, the decal's date of expiration.
325 (IV) The department is authorized to require dealers who

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326 purchase decals to file reports with the department and may
327 prescribe all necessary records by rule. All such records are
328 subject to inspection by the department.
329 (V) Any dealer or his or her agent who issues a decal
330 falsely, fails to affix a decal, mismarks the expiration date of
331 a decal, or fails to properly account for decals will be
332 considered prima facie to have committed a fraudulent act to
333 evade the tax and will be liable for payment of the tax plus a
334 mandatory penalty of 200 percent of the tax, and shall be liable
335 for fine and punishment as provided by law for a conviction of a
336 misdemeanor of the first degree, as provided in s. 775.082 or s.
337 775.083.
338 (VI) Any nonresident purchaser of a boat who removes a
339 decal before permanently removing the boat from the state, or
340 defaces, changes, modifies, or alters a decal in a manner
341 affecting its expiration date before its expiration, or who
342 causes or allows the same to be done by another, will be
343 considered prima facie to have committed a fraudulent act to
344 evade the tax and will be liable for payment of the tax plus a
345 mandatory penalty of 200 percent of the tax, and shall be liable
346 for fine and punishment as provided by law for a conviction of a
347 misdemeanor of the first degree, as provided in s. 775.082 or s.
348 775.083.
349 (VII) The department is authorized to adopt rules
350 necessary to administer and enforce this subparagraph and to

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351 publish the necessary forms and instructions.
352 (VIII) The department is hereby authorized to adopt
353 emergency rules pursuant to s. 120.54(4) to administer and
354 enforce the provisions of this subparagraph.
355
356 If the purchaser fails to remove the qualifying boat from this
357 state within the maximum 180 days after purchase or a
358 nonqualifying boat or an aircraft from this state within 10 days
359 after purchase or, when the boat or aircraft is repaired or
360 altered, within 20 days after completion of such repairs or
361 alterations, or permits the boat or aircraft to return to this
362 state within 6 months from the date of departure, except as
363 provided in s. 212.08(7)(fff), or if the purchaser fails to
364 furnish the department with any of the documentation required by
365 this subparagraph within the prescribed time period, the
366 purchaser shall be liable for use tax on the cost price of the
367 boat or aircraft and, in addition thereto, payment of a penalty
368 to the Department of Revenue equal to the tax payable. This
369 penalty shall be in lieu of the penalty imposed by s. 212.12(2).
370 The maximum 180-day period following the sale of a qualifying
371 boat tax-exempt to a nonresident may not be tolled for any
372 reason.
373 (b) At the rate of 6 percent of the cost price of each
374 item or article of tangible personal property when the same is
375 not sold but is used, consumed, distributed, or stored for use

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376 or consumption in this state; however, for tangible property
377 originally purchased exempt from tax for use exclusively for
378 lease and which is converted to the owner's own use, tax may be
379 paid on the fair market value of the property at the time of
380 conversion. If the fair market value of the property cannot be
381 determined, use tax at the time of conversion shall be based on
382 the owner's acquisition cost. Under no circumstances may the
383 aggregate amount of sales tax from leasing the property and use
384 tax due at the time of conversion be less than the total sales
385 tax that would have been due on the original acquisition cost
386 paid by the owner.
387 (c) At the rate of 6 percent of the gross proceeds derived
388 from the lease or rental of tangible personal property, as
389 defined herein; however, the following special provisions apply
390 to the lease or rental of motor vehicles:
391 1. When a motor vehicle is leased or rented for a period
392 of less than 12 months:
393 a. If the motor vehicle is rented in Florida, the entire
394 amount of such rental is taxable, even if the vehicle is dropped
395 off in another state.
396 b. If the motor vehicle is rented in another state and
397 dropped off in Florida, the rental is exempt from Florida tax.
398 2. Except as provided in subparagraph 3., for the lease or
399 rental of a motor vehicle for a period of not less than 12
400 months, sales tax is due on the lease or rental payments if the

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401 vehicle is registered in this state; provided, however, that no
402 tax shall be due if the taxpayer documents use of the motor
403 vehicle outside this state and tax is being paid on the lease or
404 rental payments in another state.
405 3. The tax imposed by this chapter does not apply to the
406 lease or rental of a commercial motor vehicle as defined in s.
407 316.003(13)(a) to one lessee or rentee for a period of not less
408 than 12 months when tax was paid on the purchase price of such
409 vehicle by the lessor. To the extent tax was paid with respect
410 to the purchase of such vehicle in another state, territory of
411 the United States, or the District of Columbia, the Florida tax
412 payable shall be reduced in accordance with the provisions of s.
413 212.06(7). This subparagraph shall only be available when the
414 lease or rental of such property is an established business or
415 part of an established business or the same is incidental or
416 germane to such business.
417 (d) At the rate of 6 percent of the lease or rental price
418 paid by a lessee or rentee, or contracted or agreed to be paid
419 by a lessee or rentee, to the owner of the tangible personal
420 property.
421 (e)1. At the rate of 6 percent on charges for:
422 a. Prepaid calling arrangements. The tax on charges for
423 prepaid calling arrangements shall be collected at the time of
424 sale and remitted by the selling dealer.
425 (I) "Prepaid calling arrangement" has the same meaning as

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426 provided in s. 202.11.
427 (II) If the sale or recharge of the prepaid calling
428 arrangement does not take place at the dealer's place of
429 business, it shall be deemed to have taken place at the
430 customer's shipping address or, if no item is shipped, at the
431 customer's address or the location associated with the
432 customer's mobile telephone number.
433 (III) The sale or recharge of a prepaid calling
434 arrangement shall be treated as a sale of tangible personal
435 property for purposes of this chapter, regardless of whether a
436 tangible item evidencing such arrangement is furnished to the
437 purchaser, and such sale within this state subjects the selling
438 dealer to the jurisdiction of this state for purposes of this
439 subsection.
440 (IV) No additional tax under this chapter or chapter 202
441 is due or payable if a purchaser of a prepaid calling
442 arrangement who has paid tax under this chapter on the sale or
443 recharge of such arrangement applies one or more units of the
444 prepaid calling arrangement to obtain communications services as
445 described in s. 202.11(9)(b)3., other services that are not
446 communications services, or products.
447 b. The installation of telecommunication and telegraphic
448 equipment.
449 c. Electrical power or energy, except that the tax rate
450 for charges for electrical power or energy is 4.35 percent.

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451 Charges for electrical power and energy do not include taxes
452 imposed under ss. 166.231 and 203.01(1)(a)3.
453 2. Section 212.17(3), regarding credit for tax paid on
454 charges subsequently found to be worthless, is equally
455 applicable to any tax paid under this section on charges for
456 prepaid calling arrangements, telecommunication or telegraph
457 services, or electric power subsequently found to be
458 uncollectible. As used in this paragraph, the term "charges"
459 does not include any excise or similar tax levied by the Federal
460 Government, a political subdivision of this state, or a
461 municipality upon the purchase, sale, or recharge of prepaid
462 calling arrangements or upon the purchase or sale of
463 telecommunication, television system program, or telegraph
464 service or electric power, which tax is collected by the seller
465 from the purchaser.
466 (f) At the rate of 6 percent on the sale, rental, use,
467 consumption, or storage for use in this state of machines and
468 equipment, and parts and accessories therefor, used in
469 manufacturing, processing, compounding, producing, mining, or
470 quarrying personal property for sale or to be used in furnishing
471 communications, transportation, or public utility services.
472 (g)1. At the rate of 6 percent on the retail price of
473 newspapers and magazines sold or used in Florida.
474 2. Notwithstanding other provisions of this chapter,
475 inserts of printed materials which are distributed with a

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476 newspaper or magazine are a component part of the newspaper or
477 magazine, and neither the sale nor use of such inserts is
478 subject to tax when:
479 a. Printed by a newspaper or magazine publisher or
480 commercial printer and distributed as a component part of a
481 newspaper or magazine, which means that the items after being
482 printed are delivered directly to a newspaper or magazine
483 publisher by the printer for inclusion in editions of the
484 distributed newspaper or magazine;
485 b. Such publications are labeled as part of the designated
486 newspaper or magazine publication into which they are to be
487 inserted; and
488 c. The purchaser of the insert presents a resale
489 certificate to the vendor stating that the inserts are to be
490 distributed as a component part of a newspaper or magazine.
491 (h)1. A tax is imposed at the rate of 4 percent on the
492 charges for the use of coin-operated amusement machines. The tax
493 shall be calculated by dividing the gross receipts from such
494 charges for the applicable reporting period by a divisor,
495 determined as provided in this subparagraph, to compute gross
496 taxable sales, and then subtracting gross taxable sales from
497 gross receipts to arrive at the amount of tax due. For counties
498 that do not impose a discretionary sales surtax, the divisor is
499 equal to 1.04; for counties that impose a 0.5 percent
500 discretionary sales surtax, the divisor is equal to 1.045; for

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501 counties that impose a 1 percent discretionary sales surtax, the
502 divisor is equal to 1.050; and for counties that impose a 2
503 percent sales surtax, the divisor is equal to 1.060. If a county
504 imposes a discretionary sales surtax that is not listed in this
505 subparagraph, the department shall make the applicable divisor
506 available in an electronic format or otherwise. Additional
507 divisors shall bear the same mathematical relationship to the
508 next higher and next lower divisors as the new surtax rate bears
509 to the next higher and next lower surtax rates for which
510 divisors have been established. When a machine is activated by a
511 slug, token, coupon, or any similar device which has been
512 purchased, the tax is on the price paid by the user of the
513 device for such device.
514 2. As used in this paragraph, the term "operator" means
515 any person who possesses a coin-operated amusement machine for
516 the purpose of generating sales through that machine and who is
517 responsible for removing the receipts from the machine.
518 a. If the owner of the machine is also the operator of it,
519 he or she shall be liable for payment of the tax without any
520 deduction for rent or a license fee paid to a location owner for
521 the use of any real property on which the machine is located.
522 b. If the owner or lessee of the machine is also its
523 operator, he or she shall be liable for payment of the tax on
524 the purchase or lease of the machine, as well as the tax on
525 sales generated through the machine.

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526 c. If the proprietor of the business where the machine is
527 located does not own the machine, he or she shall be deemed to
528 be the lessee and operator of the machine and is responsible for
529 the payment of the tax on sales, unless such responsibility is
530 otherwise provided for in a written agreement between him or her
531 and the machine owner.
532 3.a. An operator of a coin-operated amusement machine may
533 not operate or cause to be operated in this state any such
534 machine until the operator has registered with the department
535 and has conspicuously displayed an identifying certificate
536 issued by the department. The identifying certificate shall be
537 issued by the department upon application from the operator. The
538 identifying certificate shall include a unique number, and the
539 certificate shall be permanently marked with the operator's
540 name, the operator's sales tax number, and the maximum number of
541 machines to be operated under the certificate. An identifying
542 certificate shall not be transferred from one operator to
543 another. The identifying certificate must be conspicuously
544 displayed on the premises where the coin-operated amusement
545 machines are being operated.
546 b. The operator of the machine must obtain an identifying
547 certificate before the machine is first operated in the state
548 and by July 1 of each year thereafter. The annual fee for each
549 certificate shall be based on the number of machines identified
550 on the application times $30 and is due and payable upon

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551 application for the identifying device. The application shall
552 contain the operator's name, sales tax number, business address
553 where the machines are being operated, and the number of
554 machines in operation at that place of business by the operator.
555 No operator may operate more machines than are listed on the
556 certificate. A new certificate is required if more machines are
557 being operated at that location than are listed on the
558 certificate. The fee for the new certificate shall be based on
559 the number of additional machines identified on the application
560 form times $30.
561 c. A penalty of $250 per machine is imposed on the
562 operator for failing to properly obtain and display the required
563 identifying certificate. A penalty of $250 is imposed on the
564 lessee of any machine placed in a place of business without a
565 proper current identifying certificate. Such penalties shall
566 apply in addition to all other applicable taxes, interest, and
567 penalties.
568 d. Operators of coin-operated amusement machines must
569 obtain a separate sales and use tax certificate of registration
570 for each county in which such machines are located. One sales
571 and use tax certificate of registration is sufficient for all of
572 the operator's machines within a single county.
573 4. The provisions of this paragraph do not apply to coin-
574 operated amusement machines owned and operated by churches or
575 synagogues.

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576 5. In addition to any other penalties imposed by this
577 chapter, a person who knowingly and willfully violates any
578 provision of this paragraph commits a misdemeanor of the second
579 degree, punishable as provided in s. 775.082 or s. 775.083.
580 6. The department may adopt rules necessary to administer
581 the provisions of this paragraph.
582 (i)1. At the rate of 6 percent on charges for all:
583 a. Detective, burglar protection, and other protection
584 services (NAICS National Numbers 561611, 561612, 561613, and
585 561621). Fingerprint services required under s. 790.06 or s.
586 790.062 are not subject to the tax. Any law enforcement officer,
587 as defined in s. 943.10, who is performing approved duties as
588 determined by his or her local law enforcement agency in his or
589 her capacity as a law enforcement officer, and who is subject to
590 the direct and immediate command of his or her law enforcement
591 agency, and in the law enforcement officer's uniform as
592 authorized by his or her law enforcement agency, is performing
593 law enforcement and public safety services and is not performing
594 detective, burglar protection, or other protective services, if
595 the law enforcement officer is performing his or her approved
596 duties in a geographical area in which the law enforcement
597 officer has arrest jurisdiction. Such law enforcement and public
598 safety services are not subject to tax irrespective of whether
599 the duty is characterized as "extra duty," "off-duty," or
600 "secondary employment," and irrespective of whether the officer

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601 is paid directly or through the officer's agency by an outside
602 source. The term "law enforcement officer" includes full-time or
603 part-time law enforcement officers, and any auxiliary law
604 enforcement officer, when such auxiliary law enforcement officer
605 is working under the direct supervision of a full-time or part-
606 time law enforcement officer.
607 b. Nonresidential cleaning, excluding cleaning of the
608 interiors of transportation equipment, and nonresidential
609 building pest control services (NAICS National Numbers 561710
610 and 561720).
611 2. As used in this paragraph, "NAICS" means those
612 classifications contained in the North American Industry
613 Classification System, as published in 2007 by the Office of
614 Management and Budget, Executive Office of the President.
615 3. Charges for detective, burglar protection, and other
616 protection security services performed in this state but used
617 outside this state are exempt from taxation. Charges for
618 detective, burglar protection, and other protection security
619 services performed outside this state and used in this state are
620 subject to tax.
621 4. If a transaction involves both the sale or use of a
622 service taxable under this paragraph and the sale or use of a
623 service or any other item not taxable under this chapter, the
624 consideration paid must be separately identified and stated with
625 respect to the taxable and exempt portions of the transaction or

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626 the entire transaction shall be presumed taxable. The burden
627 shall be on the seller of the service or the purchaser of the
628 service, whichever applicable, to overcome this presumption by
629 providing documentary evidence as to which portion of the
630 transaction is exempt from tax. The department is authorized to
631 adjust the amount of consideration identified as the taxable and
632 exempt portions of the transaction; however, a determination
633 that the taxable and exempt portions are inaccurately stated and
634 that the adjustment is applicable must be supported by
635 substantial competent evidence.
636 5. Each seller of services subject to sales tax pursuant
637 to this paragraph shall maintain a monthly log showing each
638 transaction for which sales tax was not collected because the
639 services meet the requirements of subparagraph 3. for out-of-
640 state use. The log must identify the purchaser's name, location
641 and mailing address, and federal employer identification number,
642 if a business, or the social security number, if an individual,
643 the service sold, the price of the service, the date of sale,
644 the reason for the exemption, and the sales invoice number. The
645 monthly log shall be maintained pursuant to the same
646 requirements and subject to the same penalties imposed for the
647 keeping of similar records pursuant to this chapter.
648 (j)1. Notwithstanding any other provision of this chapter,
649 there is hereby levied a tax on the sale, use, consumption, or
650 storage for use in this state of any coin or currency, whether

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651 in circulation or not, when such coin or currency:
652 a. Is not legal tender;
653 b. If legal tender, is sold, exchanged, or traded at a
654 rate in excess of its face value; or
655 c. Is sold, exchanged, or traded at a rate based on its
656 precious metal content.
657 2. Such tax shall be at a rate of 6 percent of the price
658 at which the coin or currency is sold, exchanged, or traded,
659 except that, with respect to a coin or currency which is legal
660 tender of the United States and which is sold, exchanged, or
661 traded, such tax shall not be levied.
662 3. There are exempt from this tax exchanges of coins or
663 currency which are in general circulation in, and legal tender
664 of, one nation for coins or currency which are in general
665 circulation in, and legal tender of, another nation when
666 exchanged solely for use as legal tender and at an exchange rate
667 based on the relative value of each as a medium of exchange.
668 4. With respect to any transaction that involves the sale
669 of coins or currency taxable under this paragraph in which the
670 taxable amount represented by the sale of such coins or currency
671 exceeds $500, the entire amount represented by the sale of such
672 coins or currency is exempt from the tax imposed under this
673 paragraph. The dealer must maintain proper documentation, as
674 prescribed by rule of the department, to identify that portion
675 of a transaction which involves the sale of coins or currency

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676 and is exempt under this subparagraph.
677 (k) At the rate of 6 percent of the sales price of each
678 gallon of diesel fuel not taxed under chapter 206 purchased for
679 use in a vessel, except dyed diesel fuel that is exempt pursuant
680 to s. 212.08(4)(a)4.
681 (l) Florists located in this state are liable for sales
682 tax on sales to retail customers regardless of where or by whom
683 the items sold are to be delivered. Florists located in this
684 state are not liable for sales tax on payments received from
685 other florists for items delivered to customers in this state.
686 (m) Operators of game concessions or other concessionaires
687 who customarily award tangible personal property as prizes may,
688 in lieu of paying tax on the cost price of such property, pay
689 tax on 25 percent of the gross receipts from such concession
690 activity.
691 (2) The tax shall be collected by the dealer, as defined
692 herein, and remitted by the dealer to the state at the time and
693 in the manner as hereinafter provided.
694 (3) The tax so levied is in addition to all other taxes,
695 whether levied in the form of excise, license, or privilege
696 taxes, and in addition to all other fees and taxes levied.
697 (4) The tax imposed pursuant to this chapter shall be due
698 and payable according to the algorithm provided brackets set
699 forth in s. 212.12.
700 (5) Notwithstanding any other provision of this chapter,

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701 the maximum amount of tax imposed under this chapter and
702 collected on each sale or use of a boat in this state may not
703 exceed $18,000 and on each repair of a boat in this state may
704 not exceed $60,000.
705 Section 4. Paragraph (c) of subsection (4) of section
706 212.054, Florida Statutes, is amended to read:
707 212.054 Discretionary sales surtax; limitations,
708 administration, and collection.—
709 (4)
710 (c)1. Any dealer located in a county that does not impose
711 a discretionary sales surtax, any marketplace provider that is a
712 dealer under this chapter, or any person located outside this
713 state who is required to collect and remit sales tax on remote
714 sales but who collects the surtax due to sales of tangible
715 personal property or services delivered to a county imposing a
716 surtax outside the county shall remit monthly the proceeds of
717 the surtax to the department to be deposited into an account in
718 the Discretionary Sales Surtax Clearing Trust Fund which is
719 separate from the county surtax collection accounts. The
720 department shall distribute funds in this account using a
721 distribution factor determined for each county that levies a
722 surtax and multiplied by the amount of funds in the account and
723 available for distribution. The distribution factor for each
724 county equals the product of:
725 a. The county's latest official population determined

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726 pursuant to s. 186.901;
727 b. The county's rate of surtax; and
728 c. The number of months the county has levied a surtax
729 during the most recent distribution period;
730
731 divided by the sum of all such products of the counties levying
732 the surtax during the most recent distribution period.
733 2. The department shall compute distribution factors for
734 eligible counties once each quarter and make appropriate
735 quarterly distributions.
736 3. A county that fails to timely provide the information
737 required by this section to the department authorizes the
738 department, by such action, to use the best information
739 available to it in distributing surtax revenues to the county.
740 If this information is unavailable to the department, the
741 department may partially or entirely disqualify the county from
742 receiving surtax revenues under this paragraph. A county that
743 fails to provide timely information waives its right to
744 challenge the department's determination of the county's share,
745 if any, of revenues provided under this paragraph.
746 Section 5. Section 212.0596, Florida Statutes, is amended
747 to read:
748 (Substantial rewording of section. See
749 s. 212.0596, F.S., for present text.)
750 212.0596 Taxation of remote sales.—

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751 (1) As used in this chapter, the term:
752 (a) "Remote sale" means a retail sale of tangible personal
753 property ordered by mail, telephone, the Internet, or other
754 means of communication from a person who receives the order
755 outside of this state and transports the property or causes the
756 property to be transported from any jurisdiction, including this
757 state, to a location in this state. For purposes of this
758 paragraph, tangible personal property delivered to a location
759 within this state is presumed to be used, consumed, distributed,
760 or stored to be used or consumed in this state.
761 (b) "Substantial number of remote sales" means any number
762 of taxable remote sales in the previous calendar year in which
763 the sum of the sales prices, as defined in s. 212.02(16),
764 exceeded $100,000.
765 (2) Every person making a substantial number of remote
766 sales is a dealer for purposes of this chapter.
767 (3) The department may establish by rule procedures for
768 collecting the use tax from unregistered persons who but for
769 their remote purchases would not be required to remit sales or
770 use tax directly to the department. The procedures may provide
771 for waiver of registration, provisions for irregular remittance
772 of tax, elimination of the collection allowance, and
773 nonapplication of local option surtaxes.
774 (4) A marketplace provider that is a dealer under this
775 chapter or a person who is required to collect and remit sales

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776 tax on remote sales is required to collect surtax when the
777 taxable item of tangible personal property is delivered within a
778 county imposing a surtax as provided in s. 212.054(3)(a).
779 Section 6. Section 212.05965, Florida Statutes, is created
780 to read:
781 212.05965 Taxation of marketplace sales.—
782 (1) As used in this chapter, the term:
783 (a) "Marketplace" means any physical place or electronic
784 medium through which tangible personal property is offered for
785 sale.
786 (b) "Marketplace provider" means a person who facilitates
787 a retail sale by a marketplace seller by listing or advertising
788 for sale by the marketplace seller tangible personal property in
789 a marketplace and who directly, or indirectly through agreements
790 or arrangements with third parties, collects payment from the
791 customer and transmits all or part of the payment to the
792 marketplace seller, regardless of whether the marketplace
793 provider receives compensation or other consideration in
794 exchange for its services.
795 1. The term does not include a person who solely provides
796 travel agency services. As used in this subparagraph, the term
797 "travel agency services" means arranging, booking, or otherwise
798 facilitating for a commission, fee, or other consideration
799 vacation or travel packages, rental cars, or other travel
800 reservations; tickets for domestic or foreign travel by air,

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801 rail, ship, bus, or other mode of transportation; or hotel or
802 other lodging accommodations.
803 2. The term does not include a person who is a delivery
804 network company unless the delivery network company is a
805 registered dealer for purposes of this chapter and the delivery
806 network company notifies all local merchants that sell through
807 the delivery network company's website or mobile application
808 that the delivery network company is subject to the requirements
809 of a marketplace provider under this section. As used in this
810 subparagraph, the term:
811 a. "Delivery network company" means a person who maintains
812 a website or mobile application used to facilitate delivery
813 services, the sale of local products, or both.
814 b. "Delivery network courier" means a person who provides
815 delivery services through a delivery network company website or
816 mobile application using a personal means of transportation,
817 such as a motor vehicle as defined in s. 320.01(1), bicycle,
818 scooter, or other similar means of transportation; using public
819 transportation; or by walking.
820 c. "Delivery services" means the pickup and delivery by a
821 delivery network courier of one or more local products from a
822 local merchant to a customer, which may include the selection,
823 collection, and purchase of the local product in connection with
824 the delivery. The term does not include any delivery requiring
825 more than 75 miles of travel from the local merchant to the

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826 customer.
827 d. "Local merchant" means a kitchen, a restaurant, or a
828 third-party merchant, including a grocery store, retail store,
829 convenience store, or business of another type, which is not
830 under common ownership or control of the delivery network
831 company.
832 e. "Local product" means any tangible personal property,
833 including food but excluding freight, mail, or a package to
834 which postage has been affixed.
835 3. The term does not include a payment processor business
836 that processes payment transactions from various channels, such
837 as charge cards, credit cards, or debit cards, and whose sole
838 activity with respect to marketplace sales is to process payment
839 transactions between two or more parties.
840 (c) "Marketplace seller" means a person who has an
841 agreement with a marketplace provider that is a dealer under
842 this chapter and who makes retail sales of tangible personal
843 property through a marketplace owned, operated, or controlled by
844 the marketplace provider.
845 (2) A marketplace provider that has a physical presence in
846 this state or who is making or facilitating through a
847 marketplace a substantial number of remote sales as defined in
848 s. 212.0596(1) is a dealer for purposes of this chapter.
849 (3) A marketplace provider that is a dealer under this
850 chapter shall certify to its marketplace sellers that it will

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851 collect and remit the tax imposed under this chapter on taxable
852 retail sales made through the marketplace. Such certification
853 may be included in the agreement between the marketplace
854 provider and the marketplace seller.
855 (4)(a) A marketplace seller may not collect and remit the
856 tax under this chapter on a taxable retail sale when the sale is
857 made through the marketplace and the marketplace provider
858 certifies, as required under subsection (3), that it will
859 collect and remit such tax. A marketplace seller shall exclude
860 such sales made through the marketplace from the marketplace
861 seller's tax return under s. 212.11.
862 (b)1. A marketplace seller who has a physical presence in
863 this state shall register and shall collect and remit the tax
864 imposed under this chapter on all taxable retail sales made
865 outside of the marketplace.
866 2. A marketplace seller who is not described under
867 subparagraph 1. but who makes a substantial number of remote
868 sales as defined in s. 212.0596(1) shall register and shall
869 collect and remit the tax imposed under this chapter on all
870 taxable retail sales made outside of the marketplace. For the
871 purpose of determining whether a marketplace seller made a
872 substantial number of remote sales, the marketplace seller shall
873 consider only those sales made outside of a marketplace.
874 (5)(a) A marketplace provider that is a dealer under this
875 chapter shall allow the department to examine and audit its

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876 books and records pursuant to s. 212.13. For retail sales
877 facilitated through a marketplace, the department may not
878 examine or audit the books and records of marketplace sellers,
879 nor may the department assess marketplace sellers except to the
880 extent that the marketplace provider seeks relief under
881 paragraph (b). The department may examine, audit, and assess a
882 marketplace seller for retail sales made outside of a
883 marketplace under paragraph (4)(b). This paragraph does not
884 provide relief to a marketplace seller who is under audit; has
885 been issued a bill, notice, or demand for payment; or is under
886 an administrative or judicial proceeding before July 1, 2021.
887 (b) The marketplace provider is relieved of liability for
888 the tax on the retail sale and the marketplace seller or
889 customer is liable for the tax imposed under this chapter if the
890 marketplace provider demonstrates to the department's
891 satisfaction that the marketplace provider made a reasonable
892 effort to obtain accurate information related to the retail
893 sales facilitated through the marketplace from the marketplace
894 seller, but that the failure to collect and remit the correct
895 amount of tax imposed under this chapter was due to the
896 provision of incorrect or incomplete information to the
897 marketplace provider by the marketplace seller. This paragraph
898 does not apply to a retail sale for which the marketplace
899 provider is the seller if the marketplace provider and the
900 marketplace seller are related parties or if transactions

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901 between a marketplace seller and marketplace buyer are not
902 conducted at arm's length.
903 (6) For purposes of registration pursuant to s. 212.18, a
904 marketplace is deemed a separate place of business.
905 (7) A marketplace provider and a marketplace seller may
906 agree by contract or otherwise that if a marketplace provider
907 pays the tax imposed under this chapter on a retail sale
908 facilitated through a marketplace for a marketplace seller as a
909 result of an audit or otherwise, the marketplace provider has
910 the right to recover such tax and any associated interest and
911 penalties from the marketplace seller.
912 (8) This section may not be construed to authorize the
913 state to collect sales tax from both the marketplace provider
914 and the marketplace seller on the same retail sale.
915 (9) Chapter 213 applies to the administration of this
916 section to the extent that chapter does not conflict with this
917 section.
918 Section 7. Effective April 1, 2022, subsections (10) and
919 (11) are added to section 212.05965, Florida Statutes, as
920 created by this act, to read:
921 212.05965 Taxation of marketplace sales.—
922 (10) Notwithstanding any other law, the marketplace
923 provider is also responsible for collecting and remitting any
924 prepaid wireless E911 fee under s. 365.172, waste tire fee under
925 s. 403.718, and lead-acid battery fee under s. 403.7185 at the

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926 time of sale for taxable retail sales made through its
927 marketplace.
928 (11) Notwithstanding paragraph (4)(a), the marketplace
929 provider and the marketplace seller may contractually agree to
930 have the marketplace seller collect and remit all applicable
931 taxes and fees if the marketplace seller:
932 (a) Has annual United States gross sales of more than $1
933 billion, including the gross sales of any related entities, and
934 in the case of franchised entities, including the combined sales
935 of all franchisees of a single franchisor;
936 (b) Provides evidence to the marketplace provider that it
937 is registered under s. 212.18; and
938 (c) Notifies the department in a manner prescribed by the
939 department that the marketplace seller will collect and remit
940 all applicable taxes and fees on its sales through the
941 marketplace and is liable for failure to collect or remit
942 applicable taxes and fees on its sales.
943 Section 8. Paragraph (c) of subsection (2) and paragraph
944 (a) of subsection (5) of section 212.06, Florida Statutes, are
945 amended to read:
946 212.06 Sales, storage, use tax; collectible from dealers;
947 "dealer" defined; dealers to collect from purchasers;
948 legislative intent as to scope of tax.—
949 (2)
950 (c) The term "dealer" is further defined to mean every

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951 person, as used in this chapter, who sells at retail or who
952 offers for sale at retail, or who has in his or her possession
953 for sale at retail; or for use, consumption, or distribution; or
954 for storage to be used or consumed in this state, tangible
955 personal property as defined herein, including a retailer who
956 transacts a substantial number of remote sales or a marketplace
957 provider that has a physical presence in this state or that
958 makes or facilitates through its marketplace a substantial
959 number of remote sales mail order sale.
960 (5)(a)1. Except as provided in subparagraph 2., it is not
961 the intention of this chapter to levy a tax upon tangible
962 personal property imported, produced, or manufactured in this
963 state for export, provided that tangible personal property may
964 not be considered as being imported, produced, or manufactured
965 for export unless the importer, producer, or manufacturer
966 delivers the same to a licensed exporter for exporting or to a
967 common carrier for shipment outside the state or mails the same
968 by United States mail to a destination outside the state; or, in
969 the case of aircraft being exported under their own power to a
970 destination outside the continental limits of the United States,
971 by submission to the department of a duly signed and validated
972 United States customs declaration, showing the departure of the
973 aircraft from the continental United States; and further with
974 respect to aircraft, the canceled United States registry of said
975 aircraft; or in the case of parts and equipment installed on

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976 aircraft of foreign registry, by submission to the department of
977 documentation, the extent of which shall be provided by rule,
978 showing the departure of the aircraft from the continental
979 United States; nor is it the intention of this chapter to levy a
980 tax on any sale which the state is prohibited from taxing under
981 the Constitution or laws of the United States. Every retail sale
982 made to a person physically present at the time of sale shall be
983 presumed to have been delivered in this state.
984 2.a. Notwithstanding subparagraph 1., a tax is levied on
985 each sale of tangible personal property to be transported to a
986 cooperating state as defined in sub-subparagraph c., at the rate
987 specified in sub-subparagraph d. However, a Florida dealer will
988 be relieved from the requirements of collecting taxes pursuant
989 to this subparagraph if the Florida dealer obtains from the
990 purchaser an affidavit setting forth the purchaser's name,
991 address, state taxpayer identification number, and a statement
992 that the purchaser is aware of his or her state's use tax laws,
993 is a registered dealer in Florida or another state, or is
994 purchasing the tangible personal property for resale or is
995 otherwise not required to pay the tax on the transaction. The
996 department may, by rule, provide a form to be used for the
997 purposes set forth herein.
998 b. For purposes of this subparagraph, "a cooperating
999 state" is one determined by the executive director of the
1000 department to cooperate satisfactorily with this state in

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1001 collecting taxes on remote mail order sales. No state shall be
1002 so determined unless it meets all the following minimum
1003 requirements:
1004 (I) It levies and collects taxes on remote mail order
1005 sales of property transported from that state to persons in this
1006 state, as described in s. 212.0596, upon request of the
1007 department.
1008 (II) The tax so collected shall be at the rate specified
1009 in s. 212.05, not including any local option or tourist or
1010 convention development taxes collected pursuant to s. 125.0104
1011 or this chapter.
1012 (III) Such state agrees to remit to the department all
1013 taxes so collected no later than 30 days from the last day of
1014 the calendar quarter following their collection.
1015 (IV) Such state authorizes the department to audit dealers
1016 within its jurisdiction who make remote mail order sales that
1017 are the subject of s. 212.0596, or makes arrangements deemed
1018 adequate by the department for auditing them with its own
1019 personnel.
1020 (V) Such state agrees to provide to the department records
1021 obtained by it from retailers or dealers in such state showing
1022 delivery of tangible personal property into this state upon
1023 which no sales or use tax has been paid in a manner similar to
1024 that provided in sub-subparagraph g.
1025 c. For purposes of this subparagraph, "sales of tangible

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1026 personal property to be transported to a cooperating state"
1027 means remote mail order sales to a person who is in the
1028 cooperating state at the time the order is executed, from a
1029 dealer who receives that order in this state.
1030 d. The tax levied by sub-subparagraph a. shall be at the
1031 rate at which such a sale would have been taxed pursuant to the
1032 cooperating state's tax laws if consummated in the cooperating
1033 state by a dealer and a purchaser, both of whom were physically
1034 present in that state at the time of the sale.
1035 e. The tax levied by sub-subparagraph a., when collected,
1036 shall be held in the State Treasury in trust for the benefit of
1037 the cooperating state and shall be paid to it at a time agreed
1038 upon between the department, acting for this state, and the
1039 cooperating state or the department or agency designated by it
1040 to act for it; however, such payment shall in no event be made
1041 later than 30 days from the last day of the calendar quarter
1042 after the tax was collected. Funds held in trust for the benefit
1043 of a cooperating state shall not be subject to the service
1044 charges imposed by s. 215.20.
1045 f. The department is authorized to perform such acts and
1046 to provide such cooperation to a cooperating state with
1047 reference to the tax levied by sub-subparagraph a. as is
1048 required of the cooperating state by sub-subparagraph b.
1049 g. In furtherance of this act, dealers selling tangible
1050 personal property for delivery in another state shall make

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1051 available to the department, upon request of the department,
1052 records of all tangible personal property so sold. Such records
1053 shall include a description of the property, the name and
1054 address of the purchaser, the name and address of the person to
1055 whom the property was sent, the purchase price of the property,
1056 information regarding whether sales tax was paid in this state
1057 on the purchase price, and such other information as the
1058 department may by rule prescribe.
1059 Section 9. Paragraph (b) of subsection (1) of section
1060 212.07, Florida Statutes, is amended to read:
1061 212.07 Sales, storage, use tax; tax added to purchase
1062 price; dealer not to absorb; liability of purchasers who cannot
1063 prove payment of the tax; penalties; general exemptions.—
1064 (1)
1065 (b) A resale must be in strict compliance with s. 212.18
1066 and the rules and regulations adopted thereunder. A dealer who
1067 makes a sale for resale that is not in strict compliance with s.
1068 212.18 and the rules and regulations adopted thereunder is
1069 liable for and must pay the tax. A dealer who makes a sale for
1070 resale shall document the exempt nature of the transaction, as
1071 established by rules adopted by the department, by retaining a
1072 copy of the purchaser's resale certificate. In lieu of
1073 maintaining a copy of the certificate, a dealer may document,
1074 before the time of sale, an authorization number provided
1075 telephonically or electronically by the department, or by such

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1076 other means established by rule of the department. The dealer
1077 may rely on a resale certificate issued pursuant to s.
1078 212.18(3)(e) s. 212.18(3)(d), valid at the time of receipt from
1079 the purchaser, without seeking annual verification of the resale
1080 certificate if the dealer makes recurring sales to a purchaser
1081 in the normal course of business on a continual basis. For
1082 purposes of this paragraph, "recurring sales to a purchaser in
1083 the normal course of business" refers to a sale in which the
1084 dealer extends credit to the purchaser and records the debt as
1085 an account receivable, or in which the dealer sells to a
1086 purchaser who has an established cash or C.O.D. account, similar
1087 to an open credit account. For purposes of this paragraph,
1088 purchases are made from a selling dealer on a continual basis if
1089 the selling dealer makes, in the normal course of business,
1090 sales to the purchaser at least once in every 12-month period. A
1091 dealer may, through the informal protest provided for in s.
1092 213.21 and the rules of the department, provide the department
1093 with evidence of the exempt status of a sale. Consumer
1094 certificates of exemption executed by those exempt entities that
1095 were registered with the department at the time of sale, resale
1096 certificates provided by purchasers who were active dealers at
1097 the time of sale, and verification by the department of a
1098 purchaser's active dealer status at the time of sale in lieu of
1099 a resale certificate shall be accepted by the department when
1100 submitted during the protest period, but may not be accepted in

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1101 any proceeding under chapter 120 or any circuit court action
1102 instituted under chapter 72.
1103 Section 10. Paragraph (f) is added to subsection (4) of
1104 section 212.11, Florida Statutes, to read:
1105 212.11 Tax returns and regulations.—
1106 (4)
1107 (f) A marketplace provider that is a dealer under this
1108 chapter or a person who is required to collect and remit sales
1109 tax on remote sales shall file returns and pay taxes by
1110 electronic means under s. 213.755.
1111 Section 11. Subsections (12) and (13) of section 212.12,
1112 Florida Statutes, are renumbered as subsections (11) and (12)
1113 respectively, and paragraph (a) of subsection (1), paragraph (a)
1114 of subsection (5), and subsections (9), and (10), present
1115 subsection (11), and subsection (14) of that section, are
1116 amended to read:
1117 212.12 Dealer's credit for collecting tax; penalties for
1118 noncompliance; powers of Department of Revenue in dealing with
1119 delinquents; rounding brackets applicable to taxable
1120 transactions; records required.—
1121 (1)(a)1. Notwithstanding any other law and for the purpose
1122 of compensating persons granting licenses for and the lessors of
1123 real and personal property taxed hereunder, for the purpose of
1124 compensating dealers in tangible personal property, for the
1125 purpose of compensating dealers providing communication services

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1126 and taxable services, for the purpose of compensating owners of
1127 places where admissions are collected, and for the purpose of
1128 compensating remitters of any taxes or fees reported on the same
1129 documents utilized for the sales and use tax, as compensation
1130 for the keeping of prescribed records, filing timely tax
1131 returns, and the proper accounting and remitting of taxes by
1132 them, such seller, person, lessor, dealer, owner, and remitter
1133 (except dealers who make mail order sales) who files the return
1134 required pursuant to s. 212.11 only by electronic means and who
1135 pays the amount due on such return only by electronic means
1136 shall be allowed 2.5 percent of the amount of the tax due,
1137 accounted for, and remitted to the department in the form of a
1138 deduction. However, if the amount of the tax due and remitted to
1139 the department by electronic means for the reporting period
1140 exceeds $1,200, an allowance is not allowed for all amounts in
1141 excess of $1,200. For purposes of this paragraph subparagraph,
1142 the term "electronic means" has the same meaning as provided in
1143 s. 213.755(2)(c).
1144 2. The executive director of the department is authorized
1145 to negotiate a collection allowance, pursuant to rules
1146 promulgated by the department, with a dealer who makes mail
1147 order sales. The rules of the department shall provide
1148 guidelines for establishing the collection allowance based upon
1149 the dealer's estimated costs of collecting the tax, the volume
1150 and value of the dealer's mail order sales to purchasers in this

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1151 state, and the administrative and legal costs and likelihood of
1152 achieving collection of the tax absent the cooperation of the
1153 dealer. However, in no event shall the collection allowance
1154 negotiated by the executive director exceed 10 percent of the
1155 tax remitted for a reporting period.
1156 (5)(a) The department is authorized to audit or inspect
1157 the records and accounts of dealers defined herein, including
1158 audits or inspections of dealers who make remote mail order
1159 sales to the extent permitted by another state, and to correct
1160 by credit any overpayment of tax, and, in the event of a
1161 deficiency, an assessment shall be made and collected. No
1162 administrative finding of fact is necessary prior to the
1163 assessment of any tax deficiency.
1164 (9) Taxes imposed by this chapter upon the privilege of
1165 the use, consumption, storage for consumption, or sale of
1166 tangible personal property, admissions, license fees, rentals,
1167 communication services, and upon the sale or use of services as
1168 herein taxed shall be collected upon the basis of an addition of
1169 the tax imposed by this chapter to the total price of such
1170 admissions, license fees, rentals, communication or other
1171 services, or sale price of such article or articles that are
1172 purchased, sold, or leased at any one time by or to a customer
1173 or buyer; the dealer, or person charged herein, is required to
1174 pay a privilege tax in the amount of the tax imposed by this
1175 chapter on the total of his or her gross sales of tangible

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1176 personal property, admissions, license fees, and rentals, and
1177 communication services or to collect a tax upon the sale or use
1178 of services, and such person or dealer shall add the tax imposed
1179 by this chapter to the price, license fee, rental, or
1180 admissions, and communication or other services and collect the
1181 total sum from the purchaser, admittee, licensee, lessee, or
1182 consumer. The department shall make available in an electronic
1183 format or otherwise the tax amounts and the following brackets
1184 applicable to all transactions taxable at the rate of 6 percent:
1185 (a) On single sales of less than 10 cents, no tax shall be
1186 added.
1187 (b) On single sales in amounts from 10 cents to 16 cents,
1188 both inclusive, 1 cent shall be added for taxes.
1189 (c) On sales in amounts from 17 cents to 33 cents, both
1190 inclusive, 2 cents shall be added for taxes.
1191 (d) On sales in amounts from 34 cents to 50 cents, both
1192 inclusive, 3 cents shall be added for taxes.
1193 (e) On sales in amounts from 51 cents to 66 cents, both
1194 inclusive, 4 cents shall be added for taxes.
1195 (f) On sales in amounts from 67 cents to 83 cents, both
1196 inclusive, 5 cents shall be added for taxes.
1197 (g) On sales in amounts from 84 cents to $1, both
1198 inclusive, 6 cents shall be added for taxes.
1199 (h) On sales in amounts of more than $1, 6 percent shall
1200 be charged upon each dollar of price, plus the appropriate

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1201 bracket charge upon any fractional part of a dollar.
1202 (10)(a) A dealer must calculate the tax due on the
1203 privilege of the use, consumption, storage for consumption, or
1204 sale of tangible personal property, admissions, license fees,
1205 rentals, and upon the sale or use of services, based on a
1206 rounding algorithm that meets the following criteria:
1207 1. The computation of the tax must be carried to the third
1208 decimal place.
1209 2. The tax must be rounded to the whole cent using a
1210 method that rounds up to the next cent whenever the third
1211 decimal place is greater than four.
1212 (b) A dealer may apply the rounding algorithm to the
1213 aggregate tax amount computed on all taxable items on an invoice
1214 or to the taxable amount on each individual item on the invoice
1215 In counties which have adopted a discretionary sales surtax at
1216 the rate of 1 percent, the department shall make available in an
1217 electronic format or otherwise the tax amounts and the following
1218 brackets applicable to all taxable transactions that would
1219 otherwise have been transactions taxable at the rate of 6
1220 percent:
1221 (a) On single sales of less than 10 cents, no tax shall be
1222 added.
1223 (b) On single sales in amounts from 10 cents to 14 cents,
1224 both inclusive, 1 cent shall be added for taxes.
1225 (c) On sales in amounts from 15 cents to 28 cents, both

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1226 inclusive, 2 cents shall be added for taxes.
1227 (d) On sales in amounts from 29 cents to 42 cents, both
1228 inclusive, 3 cents shall be added for taxes.
1229 (e) On sales in amounts from 43 cents to 57 cents, both
1230 inclusive, 4 cents shall be added for taxes.
1231 (f) On sales in amounts from 58 cents to 71 cents, both
1232 inclusive, 5 cents shall be added for taxes.
1233 (g) On sales in amounts from 72 cents to 85 cents, both
1234 inclusive, 6 cents shall be added for taxes.
1235 (h) On sales in amounts from 86 cents to $1, both
1236 inclusive, 7 cents shall be added for taxes.
1237 (i) On sales in amounts from $1 up to, and including, the
1238 first $5,000 in price, 7 percent shall be charged upon each
1239 dollar of price, plus the appropriate bracket charge upon any
1240 fractional part of a dollar.
1241 (j) On sales in amounts of more than $5,000 in price, 7
1242 percent shall be added upon the first $5,000 in price, and 6
1243 percent shall be added upon each dollar of price in excess of
1244 the first $5,000 in price, plus the bracket charges upon any
1245 fractional part of a dollar as provided for in subsection (9).
1246 (11) The department shall make available in an electronic
1247 format or otherwise the tax amounts and brackets applicable to
1248 all taxable transactions that occur in counties that have a
1249 surtax at a rate other than 1 percent which would otherwise have
1250 been transactions taxable at the rate of 6 percent. Likewise,

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1251 the department shall make available in an electronic format or
1252 otherwise the tax amounts and brackets applicable to
1253 transactions taxable at 4.35 percent pursuant to s.
1254 212.05(1)(e)1.c. or the applicable tax rate pursuant to s.
1255 212.031(1) and on transactions which would otherwise have been
1256 so taxable in counties which have adopted a discretionary sales
1257 surtax.
1258 (14) If it is determined upon audit that a dealer has
1259 collected and remitted taxes by applying the applicable tax rate
1260 to each transaction as described in subsection (9) and rounding
1261 the tax due to the nearest whole cent rather than applying the
1262 appropriate bracket system provided by law or department rule,
1263 the dealer shall not be held liable for additional tax, penalty,
1264 and interest resulting from such failure if:
1265 (a) The dealer acted in a good faith belief that rounding
1266 to the nearest whole cent was the proper method of determining
1267 the amount of tax due on each taxable transaction.
1268 (b) The dealer timely reported and remitted all taxes
1269 collected on each taxable transaction.
1270 (c) The dealer agrees in writing to future compliance with
1271 the laws and rules concerning brackets applicable to the
1272 dealer's transactions.
1273 Section 12. Present paragraphs (c) through (f) of
1274 subsection (3) of section 212.18, Florida Statutes, are
1275 redesignated as paragraphs (d) through (g), respectively, a new

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1276 paragraph (c) is added to that subsection, and present paragraph
1277 (f) of that subsection is amended, to read:
1278 212.18 Administration of law; registration of dealers;
1279 rules.—
1280 (3)
1281 (c) A marketplace provider that is a dealer under this
1282 chapter or a person who is required to collect and remit sales
1283 tax on remote sales must file with the department an application
1284 for a certificate of registration electronically.
1285 (g)(f) As used in this paragraph, the term "exhibitor"
1286 means a person who enters into an agreement authorizing the
1287 display of tangible personal property or services at a
1288 convention or a trade show. The following provisions apply to
1289 the registration of exhibitors as dealers under this chapter:
1290 1. An exhibitor whose agreement prohibits the sale of
1291 tangible personal property or services subject to the tax
1292 imposed in this chapter is not required to register as a dealer.
1293 2. An exhibitor whose agreement provides for the sale at
1294 wholesale only of tangible personal property or services subject
1295 to the tax imposed by this chapter must obtain a resale
1296 certificate from the purchasing dealer but is not required to
1297 register as a dealer.
1298 3. An exhibitor whose agreement authorizes the retail sale
1299 of tangible personal property or services subject to the tax
1300 imposed by this chapter must register as a dealer and collect

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1301 the tax on such sales.
1302 4. An exhibitor who makes a remote mail order sale
1303 pursuant to s. 212.0596 must register as a dealer.
1304
1305 A person who conducts a convention or a trade show must make his
1306 or her exhibitor's agreements available to the department for
1307 inspection and copying.
1308 Section 13. Subsection (4) and paragraph (d) of subsection
1309 (6) of section 212.20, Florida Statutes, are amended to read:
1310 212.20 Funds collected, disposition; additional powers of
1311 department; operational expense; refund of taxes adjudicated
1312 unconstitutionally collected.—
1313 (4) When there has been a final adjudication that any tax
1314 pursuant to s. 212.0596 or s. 212.05965 was levied, collected,
1315 or both, contrary to the Constitution of the United States or
1316 the State Constitution, the department shall, in accordance with
1317 rules, determine, based upon claims for refund and other
1318 evidence and information, who paid such tax or taxes, and refund
1319 to each such person the amount of tax paid. For purposes of this
1320 subsection, a "final adjudication" is a decision of a court of
1321 competent jurisdiction from which no appeal can be taken or from
1322 which the official or officials of this state with authority to
1323 make such decisions has or have decided not to appeal.
1324 (6) Distribution of all proceeds under this chapter and
1325 ss. 202.18(1)(b) and (2)(b) and 203.01(1)(a)3. is as follows:

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1326 (d) The proceeds of all other taxes and fees imposed
1327 pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
1328 and (2)(b) shall be distributed as follows:
1329 1. In any fiscal year, the greater of $500 million, minus
1330 an amount equal to 4.6 percent of the proceeds of the taxes
1331 collected pursuant to chapter 201, or 5.2 percent of all other
1332 taxes and fees imposed pursuant to this chapter or remitted
1333 pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
1334 monthly installments into the General Revenue Fund.
1335 2. After the distribution under subparagraph 1., 8.9744
1336 percent of the amount remitted by a sales tax dealer located
1337 within a participating county pursuant to s. 218.61 shall be
1338 transferred into the Local Government Half-cent Sales Tax
1339 Clearing Trust Fund. Beginning July 1, 2003, the amount to be
1340 transferred shall be reduced by 0.1 percent, and the department
1341 shall distribute this amount to the Public Employees Relations
1342 Commission Trust Fund less $5,000 each month, which shall be
1343 added to the amount calculated in subparagraph 3. and
1344 distributed accordingly.
1345 3. After the distribution under subparagraphs 1. and 2.,
1346 0.0966 percent shall be transferred to the Local Government
1347 Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
1348 to s. 218.65.
1349 4. After the distributions under subparagraphs 1., 2., and
1350 3., 2.0810 percent of the available proceeds shall be

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1351 transferred monthly to the Revenue Sharing Trust Fund for
1352 Counties pursuant to s. 218.215.
1353 5. After the distributions under subparagraphs 1., 2., and
1354 3., 1.3653 percent of the available proceeds shall be
1355 transferred monthly to the Revenue Sharing Trust Fund for
1356 Municipalities pursuant to s. 218.215. If the total revenue to
1357 be distributed pursuant to this subparagraph is at least as
1358 great as the amount due from the Revenue Sharing Trust Fund for
1359 Municipalities and the former Municipal Financial Assistance
1360 Trust Fund in state fiscal year 1999-2000, no municipality shall
1361 receive less than the amount due from the Revenue Sharing Trust
1362 Fund for Municipalities and the former Municipal Financial
1363 Assistance Trust Fund in state fiscal year 1999-2000. If the
1364 total proceeds to be distributed are less than the amount
1365 received in combination from the Revenue Sharing Trust Fund for
1366 Municipalities and the former Municipal Financial Assistance
1367 Trust Fund in state fiscal year 1999-2000, each municipality
1368 shall receive an amount proportionate to the amount it was due
1369 in state fiscal year 1999-2000.
1370 6. Of the remaining proceeds:
1371 a. In each fiscal year, the sum of $29,915,500 shall be
1372 divided into as many equal parts as there are counties in the
1373 state, and one part shall be distributed to each county. The
1374 distribution among the several counties must begin each fiscal
1375 year on or before January 5th and continue monthly for a total

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1376 of 4 months. If a local or special law required that any moneys
1377 accruing to a county in fiscal year 1999-2000 under the then-
1378 existing provisions of s. 550.135 be paid directly to the
1379 district school board, special district, or a municipal
1380 government, such payment must continue until the local or
1381 special law is amended or repealed. The state covenants with
1382 holders of bonds or other instruments of indebtedness issued by
1383 local governments, special districts, or district school boards
1384 before July 1, 2000, that it is not the intent of this
1385 subparagraph to adversely affect the rights of those holders or
1386 relieve local governments, special districts, or district school
1387 boards of the duty to meet their obligations as a result of
1388 previous pledges or assignments or trusts entered into which
1389 obligated funds received from the distribution to county
1390 governments under then-existing s. 550.135. This distribution
1391 specifically is in lieu of funds distributed under s. 550.135
1392 before July 1, 2000.
1393 b. The department shall distribute $166,667 monthly to
1394 each applicant certified as a facility for a new or retained
1395 professional sports franchise pursuant to s. 288.1162. Up to
1396 $41,667 shall be distributed monthly by the department to each
1397 certified applicant as defined in s. 288.11621 for a facility
1398 for a spring training franchise. However, not more than $416,670
1399 may be distributed monthly in the aggregate to all certified
1400 applicants for facilities for spring training franchises.

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1401 Distributions begin 60 days after such certification and
1402 continue for not more than 30 years, except as otherwise
1403 provided in s. 288.11621. A certified applicant identified in
1404 this sub-subparagraph may not receive more in distributions than
1405 expended by the applicant for the public purposes provided in s.
1406 288.1162(5) or s. 288.11621(3).
1407 c. Beginning 30 days after notice by the Department of
1408 Economic Opportunity to the Department of Revenue that an
1409 applicant has been certified as the professional golf hall of
1410 fame pursuant to s. 288.1168 and is open to the public, $166,667
1411 shall be distributed monthly, for up to 300 months, to the
1412 applicant.
1413 d. Beginning 30 days after notice by the Department of
1414 Economic Opportunity to the Department of Revenue that the
1415 applicant has been certified as the International Game Fish
1416 Association World Center facility pursuant to s. 288.1169, and
1417 the facility is open to the public, $83,333 shall be distributed
1418 monthly, for up to 168 months, to the applicant. This
1419 distribution is subject to reduction pursuant to s. 288.1169.
1420 e. The department shall distribute up to $83,333 monthly
1421 to each certified applicant as defined in s. 288.11631 for a
1422 facility used by a single spring training franchise, or up to
1423 $166,667 monthly to each certified applicant as defined in s.
1424 288.11631 for a facility used by more than one spring training
1425 franchise. Monthly distributions begin 60 days after such

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1426 certification or July 1, 2016, whichever is later, and continue
1427 for not more than 20 years to each certified applicant as
1428 defined in s. 288.11631 for a facility used by a single spring
1429 training franchise or not more than 25 years to each certified
1430 applicant as defined in s. 288.11631 for a facility used by more
1431 than one spring training franchise. A certified applicant
1432 identified in this sub-subparagraph may not receive more in
1433 distributions than expended by the applicant for the public
1434 purposes provided in s. 288.11631(3).
1435 f. Beginning 45 days after notice by the Department of
1436 Economic Opportunity to the Department of Revenue that an
1437 applicant has been approved by the Legislature and certified by
1438 the Department of Economic Opportunity under s. 288.11625 or
1439 upon a date specified by the Department of Economic Opportunity
1440 as provided under s. 288.11625(6)(d), the department shall
1441 distribute each month an amount equal to one-twelfth of the
1442 annual distribution amount certified by the Department of
1443 Economic Opportunity for the applicant. The department may not
1444 distribute more than $13 million annually under this sub-
1445 subparagraph.
1446 g. The department shall distribute $15,333 monthly to the
1447 State Transportation Trust Fund.
1448 h.(I) On or before July 25, 2021, August 25, 2021, and
1449 September 25, 2021, the department shall distribute $324,533,334
1450 in each of those months to the Unemployment Compensation Trust

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1451 Fund, less an adjustment for refunds issued from the General
1452 Revenue Fund pursuant to s. 443.131(3)(e)3. before making the
1453 distribution. The adjustments made by the department to the
1454 total distributions shall be equal to the total refunds made
1455 pursuant to s. 443.131(3)(e)3. If the amount of refunds to be
1456 subtracted from any single distribution exceeds the
1457 distribution, the department may not make that distribution and
1458 must subtract the remaining balance from the next distribution.
1459 (II) Beginning July 2022, and on or before the 25th day of
1460 each month, the department shall distribute $90 million monthly
1461 to the Unemployment Compensation Trust Fund.
1462 (III) If the ending balance of the Unemployment
1463 Compensation Trust Fund exceeds $4,071,519,600 on the last day
1464 of any month, as determined from United States Department of the
1465 Treasury data, the Office of Economic and Demographic Research
1466 shall certify to the department that the ending balance of the
1467 trust fund exceeds such amount.
1468 (IV) This sub-subparagraph is repealed, and the department
1469 shall end monthly distributions under sub-sub-subparagraph (II),
1470 on the date the department receives certification under sub-sub-
1471 subparagraph (III) or December 31, 2025, whichever is earlier.
1472 7. All other proceeds must remain in the General Revenue
1473 Fund.
1474 Section 14. Paragraph (a) of subsection (1) of section
1475 443.1216, Florida Statutes, is amended to read:

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1476 443.1216 Employment.—Employment, as defined in s. 443.036,
1477 is subject to this chapter under the following conditions:
1478 (1)(a) The employment subject to this chapter includes a
1479 service performed, including a service performed in interstate
1480 commerce, by:
1481 1. An officer of a corporation.
1482 2. An individual who, under the usual common-law rules
1483 applicable in determining the employer-employee relationship, is
1484 an employee. However, whenever a client, as defined in s.
1485 443.036(18), which would otherwise be designated as an employing
1486 unit has contracted with an employee leasing company to supply
1487 it with workers, those workers are considered employees of the
1488 employee leasing company. An employee leasing company may lease
1489 corporate officers of the client to the client and other workers
1490 to the client, except as prohibited by regulations of the
1491 Internal Revenue Service. Employees of an employee leasing
1492 company must be reported under the employee leasing company's
1493 tax identification number and contribution rate for work
1494 performed for the employee leasing company.
1495 a. However, except for the internal employees of an
1496 employee leasing company, each employee leasing company may make
1497 a separate one-time election to report and pay contributions
1498 under the tax identification number and contribution rate for
1499 each client of the employee leasing company. Under the client
1500 method, an employee leasing company choosing this option must

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1501 assign leased employees to the client company that is leasing
1502 the employees. The client method is solely a method to report
1503 and pay unemployment contributions, and, whichever method is
1504 chosen, such election may not impact any other aspect of state
1505 law. An employee leasing company that elects the client method
1506 must pay contributions at the rates assigned to each client
1507 company.
1508 (I) The election applies to all of the employee leasing
1509 company's current and future clients.
1510 (II) The employee leasing company must notify the
1511 Department of Revenue of its election by July 1, 2012, and such
1512 election applies to reports and contributions for the first
1513 quarter of the following calendar year. The notification must
1514 include:
1515 (A) A list of each client company and the unemployment
1516 account number or, if one has not yet been issued, the federal
1517 employment identification number, as established by the employee
1518 leasing company upon the election to file by client method;
1519 (B) A list of each client company's current and previous
1520 employees and their respective social security numbers for the
1521 prior 3 state fiscal years or, if the client company has not
1522 been a client for the prior 3 state fiscal years, such portion
1523 of the prior 3 state fiscal years that the client company has
1524 been a client must be supplied;
1525 (C) The wage data and benefit charges associated with each

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1526 client company for the prior 3 state fiscal years or, if the
1527 client company has not been a client for the prior 3 state
1528 fiscal years, such portion of the prior 3 state fiscal years
1529 that the client company has been a client must be supplied. If
1530 the client company's employment record is chargeable with
1531 benefits for less than 8 calendar quarters while being a client
1532 of the employee leasing company, the client company must pay
1533 contributions at the initial rate of 2.7 percent; and
1534 (D) The wage data and benefit charges for the prior 3
1535 state fiscal years that cannot be associated with a client
1536 company must be reported and charged to the employee leasing
1537 company.
1538 (III) Subsequent to choosing the client method, the
1539 employee leasing company may not change its reporting method.
1540 (IV) The employee leasing company shall file a Florida
1541 Department of Revenue Employer's Quarterly Report for each
1542 client company by approved electronic means, and pay all
1543 contributions by approved electronic means.
1544 (V) For the purposes of calculating experience rates when
1545 the client method is chosen, each client's own benefit charges
1546 and wage data experience while with the employee leasing company
1547 determines each client's tax rate where the client has been a
1548 client of the employee leasing company for at least 8 calendar
1549 quarters before the election. The client company shall continue
1550 to report the nonleased employees under its tax rate.

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1551 (VI) The election is binding on each client of the
1552 employee leasing company for as long as a written agreement is
1553 in effect between the client and the employee leasing company
1554 pursuant to s. 468.525(3)(a). If the relationship between the
1555 employee leasing company and the client terminates, the client
1556 retains the wage and benefit history experienced under the
1557 employee leasing company.
1558 (VII) Notwithstanding which election method the employee
1559 leasing company chooses, the applicable client company is an
1560 employing unit for purposes of s. 443.071. The employee leasing
1561 company or any of its officers or agents are liable for any
1562 violation of s. 443.071 engaged in by such persons or entities.
1563 The applicable client company or any of its officers or agents
1564 are liable for any violation of s. 443.071 engaged in by such
1565 persons or entities. The employee leasing company or its
1566 applicable client company is not liable for any violation of s.
1567 443.071 engaged in by the other party or by the other party's
1568 officers or agents.
1569 (VIII) If an employee leasing company fails to select the
1570 client method of reporting not later than July 1, 2012, the
1571 entity is required to report under the employee leasing
1572 company's tax identification number and contribution rate.
1573 (IX) After an employee leasing company is licensed
1574 pursuant to part XI of chapter 468, each newly licensed entity
1575 has 30 days after the date the license is granted to notify the

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1576 tax collection service provider in writing of their selection of
1577 the client method. A newly licensed employee leasing company
1578 that fails to timely select reporting pursuant to the client
1579 method of reporting must report under the employee leasing
1580 company's tax identification number and contribution rate.
1581 (X) Irrespective of the election, each transfer of trade
1582 or business, including workforce, or a portion thereof, between
1583 employee leasing companies is subject to the provisions of s.
1584 443.131(3)(h) s. 443.131(3)(g) if, at the time of the transfer,
1585 there is common ownership, management, or control between the
1586 entities.
1587 b. In addition to any other report required to be filed by
1588 law, an employee leasing company shall submit a report to the
1589 Labor Market Statistics Center within the Department of Economic
1590 Opportunity which includes each client establishment and each
1591 establishment of the leasing company, or as otherwise directed
1592 by the department. The report must include the following
1593 information for each establishment:
1594 (I) The trade or establishment name;
1595 (II) The former reemployment assistance account number, if
1596 available;
1597 (III) The former federal employer's identification number,
1598 if available;
1599 (IV) The industry code recognized and published by the
1600 United States Office of Management and Budget, if available;

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1601 (V) A description of the client's primary business
1602 activity in order to verify or assign an industry code;
1603 (VI) The address of the physical location;
1604 (VII) The number of full-time and part-time employees who
1605 worked during, or received pay that was subject to reemployment
1606 assistance taxes for, the pay period including the 12th of the
1607 month for each month of the quarter;
1608 (VIII) The total wages subject to reemployment assistance
1609 taxes paid during the calendar quarter;
1610 (IX) An internal identification code to uniquely identify
1611 each establishment of each client;
1612 (X) The month and year that the client entered into the
1613 contract for services; and
1614 (XI) The month and year that the client terminated the
1615 contract for services.
1616 c. The report must be submitted electronically or in a
1617 manner otherwise prescribed by the Department of Economic
1618 Opportunity in the format specified by the Bureau of Labor
1619 Statistics of the United States Department of Labor for its
1620 Multiple Worksite Report for Professional Employer
1621 Organizations. The report must be provided quarterly to the
1622 Labor Market Statistics Center within the department, or as
1623 otherwise directed by the department, and must be filed by the
1624 last day of the month immediately after the end of the calendar
1625 quarter. The information required in sub-sub-subparagraphs b.(X)

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1626 and (XI) need be provided only in the quarter in which the
1627 contract to which it relates was entered into or terminated. The
1628 sum of the employment data and the sum of the wage data in this
1629 report must match the employment and wages reported in the
1630 reemployment assistance quarterly tax and wage report.
1631 d. The department shall adopt rules as necessary to
1632 administer this subparagraph, and may administer, collect,
1633 enforce, and waive the penalty imposed by s. 443.141(1)(b) for
1634 the report required by this subparagraph.
1635 e. For the purposes of this subparagraph, the term
1636 "establishment" means any location where business is conducted
1637 or where services or industrial operations are performed.
1638 3. An individual other than an individual who is an
1639 employee under subparagraph 1. or subparagraph 2., who performs
1640 services for remuneration for any person:
1641 a. As an agent-driver or commission-driver engaged in
1642 distributing meat products, vegetable products, fruit products,
1643 bakery products, beverages other than milk, or laundry or
1644 drycleaning services for his or her principal.
1645 b. As a traveling or city salesperson engaged on a full-
1646 time basis in the solicitation on behalf of, and the
1647 transmission to, his or her principal of orders from
1648 wholesalers, retailers, contractors, or operators of hotels,
1649 restaurants, or other similar establishments for merchandise for
1650 resale or supplies for use in the business operations. This sub-

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1651 subparagraph does not apply to an agent-driver or a commission-
1652 driver and does not apply to sideline sales activities performed
1653 on behalf of a person other than the salesperson's principal.
1654 4. The services described in subparagraph 3. are
1655 employment subject to this chapter only if:
1656 a. The contract of service contemplates that substantially
1657 all of the services are to be performed personally by the
1658 individual;
1659 b. The individual does not have a substantial investment
1660 in facilities used in connection with the services, other than
1661 facilities used for transportation; and
1662 c. The services are not in the nature of a single
1663 transaction that is not part of a continuing relationship with
1664 the person for whom the services are performed.
1665 Section 15. Effective upon becoming a law and applying
1666 retroactively to April 1, 2020, present paragraphs (f) through
1667 (k) of subsection (3) of section 443.131, Florida Statutes, are
1668 redesignated as paragraphs (g) through (l), respectively, a new
1669 paragraph (f) is added to that subsection, and paragraphs (b)
1670 and (e) of that subsection are amended, to read:
1671 443.131 Contributions.—
1672 (3) VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT
1673 EXPERIENCE.—
1674 (b) Benefit ratio.—
1675 1. As used in this paragraph, the term "annual payroll"

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1676 means the calendar quarter taxable payroll reported to the tax
1677 collection service provider for the quarters used in computing
1678 the benefit ratio. The term does not include a penalty resulting
1679 from the untimely filing of required wage and tax reports. All
1680 of the taxable payroll reported to the tax collection service
1681 provider by the end of the quarter preceding the quarter for
1682 which the contribution rate is to be computed must be used in
1683 the computation.
1684 2. As used in this paragraph, the term "benefits charged
1685 to the employer's employment record" means the amount of
1686 benefits paid to individuals multiplied by:
1687 a. For benefits paid prior to July 1, 2007, 1.
1688 b. For benefits paid during the period beginning on July
1689 1, 2007, and ending March 31, 2011, 0.90.
1690 c. For benefits paid after March 31, 2011, 1.
1691 d. For benefits paid during the period beginning April 1,
1692 2020, and ending December 31, 2020, 0.
1693 e. For benefits paid during the period beginning January
1694 1, 2021, and ending June 30, 2021, 1, except as otherwise
1695 adjusted in accordance with paragraph (f).
1696 3. For each calendar year, the tax collection service
1697 provider shall compute a benefit ratio for each employer whose
1698 employment record was chargeable for benefits during the 12
1699 consecutive quarters ending June 30 of the calendar year
1700 preceding the calendar year for which the benefit ratio is

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1701 computed. An employer's benefit ratio is the quotient obtained
1702 by dividing the total benefits charged to the employer's
1703 employment record during the 3-year period ending June 30 of the
1704 preceding calendar year by the total of the employer's annual
1705 payroll for the 3-year period ending June 30 of the preceding
1706 calendar year. The benefit ratio shall be computed to the fifth
1707 decimal place and rounded to the fourth decimal place.
1708 4. The tax collection service provider shall compute a
1709 benefit ratio for each employer who was not previously eligible
1710 under subparagraph 3., whose contribution rate is set at the
1711 initial contribution rate in paragraph (2)(a), and whose
1712 employment record was chargeable for benefits during at least 8
1713 calendar quarters immediately preceding the calendar quarter for
1714 which the benefit ratio is computed. The employer's benefit
1715 ratio is the quotient obtained by dividing the total benefits
1716 charged to the employer's employment record during the first 6
1717 of the 8 completed calendar quarters immediately preceding the
1718 calendar quarter for which the benefit ratio is computed by the
1719 total of the employer's annual payroll during the first 7 of the
1720 9 completed calendar quarters immediately preceding the calendar
1721 quarter for which the benefit ratio is computed. The benefit
1722 ratio shall be computed to the fifth decimal place and rounded
1723 to the fourth decimal place and applies for the remainder of the
1724 calendar year. The employer must subsequently be rated on an
1725 annual basis using up to 12 calendar quarters of benefits

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1726 charged and up to 12 calendar quarters of annual payroll. That
1727 employer's benefit ratio is the quotient obtained by dividing
1728 the total benefits charged to the employer's employment record
1729 by the total of the employer's annual payroll during the
1730 quarters used in his or her first computation plus the
1731 subsequent quarters reported through June 30 of the preceding
1732 calendar year. Each subsequent calendar year, the rate shall be
1733 computed under subparagraph 3. The tax collection service
1734 provider shall assign a variation from the standard rate of
1735 contributions in paragraph (c) on a quarterly basis to each
1736 eligible employer in the same manner as an assignment for a
1737 calendar year under paragraph (e).
1738 (e) Assignment of variations from the standard rate.—
1739 1. As used in this paragraph, the terms "total benefit
1740 payments," "benefits paid to an individual," and "benefits
1741 charged to the employment record of an employer" mean the amount
1742 of benefits paid to individuals multiplied by:
1743 a. For benefits paid prior to July 1, 2007, 1.
1744 b. For benefits paid during the period beginning on July
1745 1, 2007, and ending March 31, 2011, 0.90.
1746 c. For benefits paid after March 31, 2011, 1.
1747 d. For benefits paid during the period beginning April 1,
1748 2020, and ending December 31, 2020, 0.
1749 e. For benefits paid during the period beginning January
1750 1, 2021, and ending June 30, 2021, 1, except as otherwise

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1751 adjusted in accordance with paragraph (f).
1752 2. For the calculation of contribution rates effective
1753 January 1, 2012, and thereafter:
1754 a. The tax collection service provider shall assign a
1755 variation from the standard rate of contributions for each
1756 calendar year to each eligible employer. In determining the
1757 contribution rate, varying from the standard rate to be assigned
1758 each employer, adjustment factors computed under sub-sub-
1759 subparagraphs (I)-(IV) are added to the benefit ratio. This
1760 addition shall be accomplished in two steps by adding a variable
1761 adjustment factor and a final adjustment factor. The sum of
1762 these adjustment factors computed under sub-sub-subparagraphs
1763 (I)-(IV) shall first be algebraically summed. The sum of these
1764 adjustment factors shall next be divided by a gross benefit
1765 ratio determined as follows: Total benefit payments for the 3-
1766 year period described in subparagraph (b)3. are charged to
1767 employers eligible for a variation from the standard rate, minus
1768 excess payments for the same period, divided by taxable payroll
1769 entering into the computation of individual benefit ratios for
1770 the calendar year for which the contribution rate is being
1771 computed. The ratio of the sum of the adjustment factors
1772 computed under sub-sub-subparagraphs (I)-(IV) to the gross
1773 benefit ratio is multiplied by each individual benefit ratio
1774 that is less than the maximum contribution rate to obtain
1775 variable adjustment factors; except that if the sum of an

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1776 employer's individual benefit ratio and variable adjustment
1777 factor exceeds the maximum contribution rate, the variable
1778 adjustment factor is reduced in order for the sum to equal the
1779 maximum contribution rate. The variable adjustment factor for
1780 each of these employers is multiplied by his or her taxable
1781 payroll entering into the computation of his or her benefit
1782 ratio. The sum of these products is divided by the taxable
1783 payroll of the employers who entered into the computation of
1784 their benefit ratios. The resulting ratio is subtracted from the
1785 sum of the adjustment factors computed under sub-sub-
1786 subparagraphs (I)-(IV) to obtain the final adjustment factor.
1787 The variable adjustment factors and the final adjustment factor
1788 must be computed to five decimal places and rounded to the
1789 fourth decimal place. This final adjustment factor is added to
1790 the variable adjustment factor and benefit ratio of each
1791 employer to obtain each employer's contribution rate. An
1792 employer's contribution rate may not, however, be rounded to
1793 less than 0.1 percent. In determining the contribution rate,
1794 varying from the standard rate to be assigned, the computation
1795 shall exclude any benefit that is excluded by the multipliers
1796 under subparagraph (b)2. and subparagraph 1. The computation of
1797 the contribution rate, varying from the standard rate to be
1798 assigned, shall also exclude any benefit paid as a result of a
1799 governmental order related to COVID-19 to close or reduce
1800 capacity of a business. In addition, the contribution rate for

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1801 the 2021 and 2022 calendar years shall be calculated without the
1802 application of the positive adjustment factor in sub-sub-
1803 subparagraph (III).
1804 (I) An adjustment factor for noncharge benefits is
1805 computed to the fifth decimal place and rounded to the fourth
1806 decimal place by dividing the amount of noncharge benefits
1807 during the 3-year period described in subparagraph (b)3. by the
1808 taxable payroll of employers eligible for a variation from the
1809 standard rate who have a benefit ratio for the current year
1810 which is less than the maximum contribution rate. For purposes
1811 of computing this adjustment factor, the taxable payroll of
1812 these employers is the taxable payrolls for the 3 years ending
1813 June 30 of the current calendar year as reported to the tax
1814 collection service provider by September 30 of the same calendar
1815 year. As used in this sub-sub-subparagraph, the term "noncharge
1816 benefits" means benefits paid to an individual, as adjusted
1817 pursuant to subparagraph (b)2. and subparagraph 1., from the
1818 Unemployment Compensation Trust Fund, but which were not charged
1819 to the employment record of any employer, but excluding any
1820 benefit paid as a result of a governmental order related to
1821 COVID-19 to close or reduce capacity of a business.
1822 (II) An adjustment factor for excess payments is computed
1823 to the fifth decimal place, and rounded to the fourth decimal
1824 place by dividing the total excess payments during the 3-year
1825 period described in subparagraph (b)3. by the taxable payroll of

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1826 employers eligible for a variation from the standard rate who
1827 have a benefit ratio for the current year which is less than the
1828 maximum contribution rate. For purposes of computing this
1829 adjustment factor, the taxable payroll of these employers is the
1830 same figure used to compute the adjustment factor for noncharge
1831 benefits under sub-sub-subparagraph (I). As used in this sub-
1832 subparagraph, the term "excess payments" means the amount of
1833 benefits charged to the employment record of an employer, as
1834 adjusted pursuant to subparagraph (b)2. and subparagraph 1.,
1835 during the 3-year period described in subparagraph (b)3., but
1836 excluding any benefit paid as a result of a governmental order
1837 related to COVID-19 to close or reduce capacity of a business,
1838 less the product of the maximum contribution rate and the
1839 employer's taxable payroll for the 3 years ending June 30 of the
1840 current calendar year as reported to the tax collection service
1841 provider by September 30 of the same calendar year. As used in
1842 this sub-sub-subparagraph, the term "total excess payments"
1843 means the sum of the individual employer excess payments for
1844 those employers that were eligible for assignment of a
1845 contribution rate different from the standard rate.
1846 (III) With respect to computing a positive adjustment
1847 factor:
1848 (A) Beginning January 1, 2012, if the balance of the
1849 Unemployment Compensation Trust Fund on September 30 of the
1850 calendar year immediately preceding the calendar year for which

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1851 the contribution rate is being computed is less than 4 percent
1852 of the taxable payrolls for the year ending June 30 as reported
1853 to the tax collection service provider by September 30 of that
1854 calendar year, a positive adjustment factor shall be computed.
1855 The positive adjustment factor is computed annually to the fifth
1856 decimal place and rounded to the fourth decimal place by
1857 dividing the sum of the total taxable payrolls for the year
1858 ending June 30 of the current calendar year as reported to the
1859 tax collection service provider by September 30 of that calendar
1860 year into a sum equal to one-fifth of the difference between the
1861 balance of the fund as of September 30 of that calendar year and
1862 the sum of 5 percent of the total taxable payrolls for that
1863 year. The positive adjustment factor remains in effect for
1864 subsequent years until the balance of the Unemployment
1865 Compensation Trust Fund as of September 30 of the year
1866 immediately preceding the effective date of the contribution
1867 rate equals or exceeds 4 percent of the taxable payrolls for the
1868 year ending June 30 of the current calendar year as reported to
1869 the tax collection service provider by September 30 of that
1870 calendar year.
1871 (B) Beginning January 1, 2018, and for each year
1872 thereafter, the positive adjustment shall be computed by
1873 dividing the sum of the total taxable payrolls for the year
1874 ending June 30 of the current calendar year as reported to the
1875 tax collection service provider by September 30 of that calendar

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1876 year into a sum equal to one-fourth of the difference between
1877 the balance of the fund as of September 30 of that calendar year
1878 and the sum of 5 percent of the total taxable payrolls for that
1879 year. The positive adjustment factor remains in effect for
1880 subsequent years until the balance of the Unemployment
1881 Compensation Trust Fund as of September 30 of the year
1882 immediately preceding the effective date of the contribution
1883 rate equals or exceeds 4 percent of the taxable payrolls for the
1884 year ending June 30 of the current calendar year as reported to
1885 the tax collection service provider by September 30 of that
1886 calendar year.
1887 (IV) If, beginning January 1, 2015, and each year
1888 thereafter, the balance of the Unemployment Compensation Trust
1889 Fund as of September 30 of the year immediately preceding the
1890 calendar year for which the contribution rate is being computed
1891 exceeds 5 percent of the taxable payrolls for the year ending
1892 June 30 of the current calendar year as reported to the tax
1893 collection service provider by September 30 of that calendar
1894 year, a negative adjustment factor must be computed. The
1895 negative adjustment factor shall be computed annually beginning
1896 on January 1, 2015, and each year thereafter, to the fifth
1897 decimal place and rounded to the fourth decimal place by
1898 dividing the sum of the total taxable payrolls for the year
1899 ending June 30 of the current calendar year as reported to the
1900 tax collection service provider by September 30 of the calendar

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1901 year into a sum equal to one-fourth of the difference between
1902 the balance of the fund as of September 30 of the current
1903 calendar year and 5 percent of the total taxable payrolls of
1904 that year. The negative adjustment factor remains in effect for
1905 subsequent years until the balance of the Unemployment
1906 Compensation Trust Fund as of September 30 of the year
1907 immediately preceding the effective date of the contribution
1908 rate is less than 5 percent, but more than 4 percent of the
1909 taxable payrolls for the year ending June 30 of the current
1910 calendar year as reported to the tax collection service provider
1911 by September 30 of that calendar year. The negative adjustment
1912 authorized by this section is suspended in any calendar year in
1913 which repayment of the principal amount of an advance received
1914 from the federal Unemployment Compensation Trust Fund under 42
1915 U.S.C. s. 1321 is due to the Federal Government.
1916 (V) The maximum contribution rate that may be assigned to
1917 an employer is 5.4 percent, except employers participating in an
1918 approved short-time compensation plan may be assigned a maximum
1919 contribution rate that is 1 percent greater than the maximum
1920 contribution rate for other employers in any calendar year in
1921 which short-time compensation benefits are charged to the
1922 employer's employment record.
1923 (VI) As used in this subsection, "taxable payroll" shall
1924 be determined by excluding any part of the remuneration paid to
1925 an individual by an employer for employment during a calendar

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1926 year in excess of the first $7,000. Beginning January 1, 2012,
1927 "taxable payroll" shall be determined by excluding any part of
1928 the remuneration paid to an individual by an employer for
1929 employment during a calendar year as described in s.
1930 443.1217(2). For the purposes of the employer rate calculation
1931 that will take effect in January 1, 2012, and in January 1,
1932 2013, the tax collection service provider shall use the data
1933 available for taxable payroll from 2009 based on excluding any
1934 part of the remuneration paid to an individual by an employer
1935 for employment during a calendar year in excess of the first
1936 $7,000, and from 2010 and 2011, the data available for taxable
1937 payroll based on excluding any part of the remuneration paid to
1938 an individual by an employer for employment during a calendar
1939 year in excess of the first $8,500.
1940 b. If the transfer of an employer's employment record to
1941 an employing unit under paragraph (g) (f) which, before the
1942 transfer, was an employer, the tax collection service provider
1943 shall recompute a benefit ratio for the successor employer based
1944 on the combined employment records and reassign an appropriate
1945 contribution rate to the successor employer effective on the
1946 first day of the calendar quarter immediately after the
1947 effective date of the transfer.
1948 3. The tax collection service provider shall reissue rates
1949 for the 2021 calendar year. However, an employer shall continue
1950 to timely file its employer's quarterly reports and pay the

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1951 contributions due in a timely manner in accordance with the
1952 rules of the Department of Economic Opportunity. The Department
1953 of Revenue shall post the revised rates on its website to enable
1954 employers to securely review the revised rates. For
1955 contributions for the first quarter of the 2021 calendar year,
1956 if any employer remits to the tax collection service provider an
1957 amount in excess of the amount that would be due as calculated
1958 pursuant to this paragraph, the tax collection service provider
1959 shall refund the excess amount from the amount erroneously
1960 collected. Notwithstanding s. 443.141(6), refunds issued through
1961 August 31, 2021, for first quarter 2021 contributions must be
1962 paid from the General Revenue Fund.
1963 4. The tax collection service provider shall calculate and
1964 assign contribution rates effective January 1, 2022, through
1965 December 31, 2022, excluding any benefit charge that is excluded
1966 by the multipliers under subparagraph (b)2. and subparagraph 1.;
1967 without the application of the positive adjustment factor in
1968 sub-sub-subparagraph 2.a.(III); and without the inclusion of any
1969 benefit charge directly related to COVID-19 as a result of a
1970 governmental order to close or reduce capacity of a business, as
1971 determined by the Department of Economic Opportunity, for each
1972 employer who is eligible for a variation from the standard rate
1973 pursuant to paragraph (d). The Department of Economic
1974 Opportunity shall provide the tax collection service provider
1975 with all necessary benefit charge information by August 1, 2021,

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1976 including specific information for adjustments related to COVID-
1977 19 charges resulting from a governmental order to close or
1978 reduce capacity of a business, to enable the tax collection
1979 service provider to calculate and issue tax rates effective
1980 January 1, 2022. The tax collection service provider shall
1981 calculate and post rates for the 2022 calendar year by March 1,
1982 2022.
1983 5. Subject to subparagraph 6., the tax collection service
1984 provider shall calculate and assign contribution rates effective
1985 January 1, 2023, through December 31, 2025, excluding any
1986 benefit charge that is excluded by the multipliers under
1987 subparagraph (b)2. and subparagraph 1.; without the application
1988 of the positive adjustment factor in sub-sub-subparagraph
1989 2.a.(III); and without the inclusion of any benefit charge
1990 directly related to COVID-19 as a result of a governmental order
1991 to close or reduce capacity of a business, as determined by the
1992 Department of Economic Opportunity, for each employer who is
1993 eligible for a variation from the standard rate pursuant to
1994 paragraph (d). The Department of Economic Opportunity shall
1995 provide the tax collection service provider with all necessary
1996 benefit charge information by August 1 of each year, including
1997 specific information for adjustments related to COVID-19 charges
1998 resulting from a governmental order to close or reduce capacity
1999 of a business, to enable the tax collection service provider to
2000 calculate and issue tax rates effective the following January.

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2001 6. If the balance of the Unemployment Compensation Trust
2002 Fund on June 30 of any year exceeds $4,071,519,600, subparagraph
2003 5. is repealed for rates effective the following years. The
2004 Office of Economic and Demographic Research shall advise the tax
2005 collection service provider of the balance of the trust fund on
2006 June 30 by August 1 of that year. After the repeal of
2007 subparagraph 5. and notwithstanding the dates specified in that
2008 subparagraph, the tax collection service provider shall
2009 calculate and assign contribution rates for each subsequent
2010 calendar year as otherwise provided in this section.
2011 (f) Adjustment in benefit ratio multiplier.—For purposes
2012 of calculating the benefits charged for the period beginning
2013 January 1, 2021, and ending June 30, 2021, pursuant to sub-
2014 subparagraphs (b)2.e. and (e)1.e., the amount of benefits paid
2015 to individuals shall be multiplied by 1, unless such calculation
2016 results in estimated total contributions of more than $475.5
2017 million for calendar year 2022 as estimated by the Office of
2018 Economic and Demographic Research, based on the preliminary 2022
2019 computed rate. If the estimated total contributions calculated
2020 are more than $475.5 million, the multiplier in sub-
2021 subparagraphs (b)2.e. and (e)1.e. shall be reduced by increments
2022 of 0.05 until the estimated total contributions are $475.5
2023 million or less. The Office of Economic and Demographic Research
2024 shall provide the incremental reduction, if any, to the tax
2025 collection service provider by January 1, 2022.

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2026 Section 16. Subsection (1) of section 443.191, Florida
2027 Statutes, is amended to read:
2028 443.191 Unemployment Compensation Trust Fund;
2029 establishment and control.—
2030 (1) There is established, as a separate trust fund apart
2031 from all other public funds of this state, an Unemployment
2032 Compensation Trust Fund, which shall be administered by the
2033 Department of Economic Opportunity exclusively for the purposes
2034 of this chapter. The fund must consist of:
2035 (a) All contributions and reimbursements collected under
2036 this chapter;
2037 (b) Interest earned on any moneys in the fund;
2038 (c) Any property or securities acquired through the use of
2039 moneys belonging to the fund;
2040 (d) All earnings of these properties or securities;
2041 (e) All money credited to this state's account in the
2042 federal Unemployment Compensation Trust Fund under 42 U.S.C. s.
2043 1103;
2044 (f) All money collected for penalties imposed pursuant to
2045 s. 443.151(6)(a); and
2046 (g) Advances on the amount in the federal Unemployment
2047 Compensation Trust Fund credited to the state under 42 U.S.C. s.
2048 1321, as requested by the Governor or the Governor's designee;
2049 and
2050 (h) All money deposited in this account as a distribution

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2051 pursuant to s. 212.20(6)(d)6.h.
2052
2053 Except as otherwise provided in s. 443.1313(4), all moneys in
2054 the fund must be mingled and undivided.
2055 Section 17. Paragraph (b) of subsection (1) of section
2056 212.04, Florida Statutes, is amended to read:
2057 212.04 Admissions tax; rate, procedure, enforcement.—
2058 (1)
2059 (b) For the exercise of such privilege, a tax is levied at
2060 the rate of 6 percent of sales price, or the actual value
2061 received from such admissions, which 6 percent shall be added to
2062 and collected with all such admissions from the purchaser
2063 thereof, and such tax shall be paid for the exercise of the
2064 privilege as defined in the preceding paragraph. Each ticket
2065 must show on its face the actual sales price of the admission,
2066 or each dealer selling the admission must prominently display at
2067 the box office or other place where the admission charge is made
2068 a notice disclosing the price of the admission, and the tax
2069 shall be computed and collected on the basis of the actual price
2070 of the admission charged by the dealer. The sale price or actual
2071 value of admission shall, for the purpose of this chapter, be
2072 that price remaining after deduction of federal taxes and state
2073 or locally imposed or authorized seat surcharges, taxes, or
2074 fees, if any, imposed upon such admission. The sale price or
2075 actual value does not include separately stated ticket service

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2076 charges that are imposed by a facility ticket office or a
2077 ticketing service and added to a separately stated, established
2078 ticket price. The rate of tax on each admission shall be
2079 according to the algorithm provided in s. 212.12 brackets
2080 established by s. 212.12(9).
2081 Section 18. Subsection (6) of section 212.0506, Florida
2082 Statutes, is amended to read:
2083 212.0506 Taxation of service warranties.—
2084 (6) This tax shall be due and payable according to the
2085 algorithm provided brackets set forth in s. 212.12.
2086 Section 19. Subsection (3) of section 213.015, Florida
2087 Statutes, is amended to read:
2088 213.015 Taxpayer rights.—There is created a Florida
2089 Taxpayer's Bill of Rights to guarantee that the rights, privacy,
2090 and property of Florida taxpayers are adequately safeguarded and
2091 protected during tax assessment, collection, and enforcement
2092 processes administered under the revenue laws of this state. The
2093 Taxpayer's Bill of Rights compiles, in one document, brief but
2094 comprehensive statements which explain, in simple, nontechnical
2095 terms, the rights and obligations of the Department of Revenue
2096 and taxpayers. Section 192.0105 provides additional rights
2097 afforded to payors of property taxes and assessments. The rights
2098 afforded taxpayers to ensure that their privacy and property are
2099 safeguarded and protected during tax assessment and collection
2100 are available only insofar as they are implemented in other

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2101 parts of the Florida Statutes or rules of the Department of
2102 Revenue. The rights so guaranteed Florida taxpayers in the
2103 Florida Statutes and the departmental rules are:
2104 (3) The right to be represented or advised by counsel or
2105 other qualified representatives at any time in administrative
2106 interactions with the department, the right to procedural
2107 safeguards with respect to recording of interviews during tax
2108 determination or collection processes conducted by the
2109 department, the right to be treated in a professional manner by
2110 department personnel, and the right to have audits, inspections
2111 of records, and interviews conducted at a reasonable time and
2112 place except in criminal and internal investigations (see ss.
2113 198.06, 199.218, 201.11(1), 203.02, 206.14, 211.125(3),
2114 211.33(3), 212.0305(3), 212.12(5)(a), (6)(a), and (12) (13),
2115 212.13(5), 213.05, 213.21(1)(a) and (c), and 213.34).
2116 Section 20. (1) For the period of July 1, 2021, through
2117 September 30, 2021, a taxpayer may calculate the tax due under
2118 chapter 212, Florida Statutes, by applying s. 212.12, Florida
2119 Statutes, as amended by this act, or by applying the appropriate
2120 bracket system pursuant to former s. 212.12, Florida Statutes
2121 2020.
2122 (2) This section does not establish a right to a refund or
2123 credit of taxes already paid.
2124 (3) This section is repealed October 1, 2021.
2125 Section 21. Subsection (5) of section 213.27, Florida

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2126 Statutes, is amended to read:
2127 213.27 Contracts with debt collection agencies and certain
2128 vendors.—
2129 (5) The department may, for the purpose of ascertaining
2130 the amount of or collecting any taxes due from a person making
2131 or facilitating remote sales under s. 212.0596 or s. 212.05965
2132 doing mail order business in this state, contract with any
2133 auditing agency doing business within or without this state for
2134 the purpose of conducting an audit of such person mail order
2135 business; however, such audit agency may not conduct an audit on
2136 behalf of the department of any person domiciled in this state,
2137 person registered for sales and use tax purposes in this state,
2138 or corporation filing a Florida corporate tax return, if any
2139 such person or corporation objects to such audit in writing to
2140 the department and the auditing agency. The department shall
2141 notify the taxpayer by mail at least 30 days before the
2142 department assigns the collection of such taxes.
2143 Section 22. For the purpose of incorporating the amendment
2144 made by this act to section 212.054, Florida Statutes, in
2145 references thereto, paragraph (c) of subsection (2), paragraph
2146 (c) of subsection (3), paragraph (c) of subsection (8), and
2147 paragraph (c) of subsection (9) of section 212.055, Florida
2148 Statutes, are reenacted to read:
2149 212.055 Discretionary sales surtaxes; legislative intent;
2150 authorization and use of proceeds.—It is the legislative intent

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2151 that any authorization for imposition of a discretionary sales
2152 surtax shall be published in the Florida Statutes as a
2153 subsection of this section, irrespective of the duration of the
2154 levy. Each enactment shall specify the types of counties
2155 authorized to levy; the rate or rates which may be imposed; the
2156 maximum length of time the surtax may be imposed, if any; the
2157 procedure which must be followed to secure voter approval, if
2158 required; the purpose for which the proceeds may be expended;
2159 and such other requirements as the Legislature may provide.
2160 Taxable transactions and administrative procedures shall be as
2161 provided in s. 212.054.
2162 (2) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.—
2163 (c) Pursuant to s. 212.054(4), the proceeds of the surtax
2164 levied under this subsection shall be distributed to the county
2165 and the municipalities within such county in which the surtax
2166 was collected, according to:
2167 1. An interlocal agreement between the county governing
2168 authority and the governing bodies of the municipalities
2169 representing a majority of the county's municipal population,
2170 which agreement may include a school district with the consent
2171 of the county governing authority and the governing bodies of
2172 the municipalities representing a majority of the county's
2173 municipal population; or
2174 2. If there is no interlocal agreement, according to the
2175 formula provided in s. 218.62.

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2176
2177 Any change in the distribution formula must take effect on the
2178 first day of any month that begins at least 60 days after
2179 written notification of that change has been made to the
2180 department.
2181 (3) SMALL COUNTY SURTAX.—
2182 (c) Pursuant to s. 212.054(4), the proceeds of the surtax
2183 levied under this subsection shall be distributed to the county
2184 and the municipalities within the county in which the surtax was
2185 collected, according to:
2186 1. An interlocal agreement between the county governing
2187 authority and the governing bodies of the municipalities
2188 representing a majority of the county's municipal population,
2189 which agreement may include a school district with the consent
2190 of the county governing authority and the governing bodies of
2191 the municipalities representing a majority of the county's
2192 municipal population; or
2193 2. If there is no interlocal agreement, according to the
2194 formula provided in s. 218.62.
2195
2196 Any change in the distribution formula shall take effect on the
2197 first day of any month that begins at least 60 days after
2198 written notification of that change has been made to the
2199 department.
2200 (8) EMERGENCY FIRE RESCUE SERVICES AND FACILITIES SURTAX.—

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2201 (c) Pursuant to s. 212.054(4), the proceeds of the
2202 discretionary sales surtax collected under this subsection, less
2203 an administrative fee that may be retained by the Department of
2204 Revenue, shall be distributed by the department to the county.
2205 The county shall distribute the proceeds it receives from the
2206 department to each local government entity providing emergency
2207 fire rescue services in the county. The surtax proceeds, less an
2208 administrative fee not to exceed 2 percent of the surtax
2209 collected, shall be distributed by the county based on each
2210 entity's average annual expenditures for fire control and
2211 emergency fire rescue services in the 5 fiscal years preceding
2212 the fiscal year in which the surtax takes effect in proportion
2213 to the average annual total of the expenditures for such
2214 entities in the 5 fiscal years preceding the fiscal year in
2215 which the surtax takes effect. The county shall revise the
2216 distribution proportions to reflect a change in the service area
2217 of an entity receiving a distribution of the surtax proceeds. If
2218 an entity declines its share of surtax revenue, such revenue
2219 shall be redistributed proportionally to the entities that are
2220 participating in the sharing of such revenue based on each
2221 participating entity's average annual expenditures for fire
2222 control and emergency fire rescue services in the preceding 5
2223 fiscal years in proportion to the average annual total of the
2224 expenditures for the participating entities in the preceding 5
2225 fiscal years.

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2226 (9) PENSION LIABILITY SURTAX.—
2227 (c) Pursuant to s. 212.054(4), the proceeds of the surtax
2228 collected under this subsection, less an administrative fee that
2229 may be retained by the department, shall be distributed by the
2230 department to the local government.
2231 Section 23. This act first applies to remote sales made or
2232 facilitated on or after July 1, 2021, by a person who made or
2233 facilitated a substantial number of remote sales in calendar
2234 year 2020. A marketplace seller shall consider only those sales
2235 made outside of a marketplace to determine whether it made a
2236 substantial number of remote sales in calendar year 2020.
2237 Section 24. (1) A person subject to the requirements of
2238 this act to collect and remit the tax under chapter 212, Florida
2239 Statutes, on remote sales is relieved of liability for tax,
2240 penalty, and interest due on remote sales that occurred before
2241 July 1, 2021, provided that the person registers with the
2242 department before October 1, 2021. This subsection is also
2243 intended to provide relief to a marketplace seller for remote
2244 sales made before July 1, 2021, which were facilitated by a
2245 marketplace provider. For a marketplace provider with a physical
2246 presence in this state, this subsection is intended to provide
2247 relief only for sales facilitated by the marketplace provider on
2248 behalf of a marketplace seller. This subsection does not apply
2249 to a person who is under audit; has been issued a bill, notice,
2250 or demand for payment; or is under an administrative or judicial

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2251 proceeding as of July 1, 2021.
2252 (2) The department may not use data received from
2253 registered marketplace providers or persons making remote sales
2254 for the purposes of identifying use tax liabilities occurring
2255 before July 1, 2021, from unregistered persons who but for their
2256 purchases from the registered taxpayer would not be required to
2257 remit sales or use tax directly to the department. This
2258 subsection does not apply to a person who is under audit; has
2259 been issued a bill, notice, or demand for payment; or is under
2260 an administrative or judicial proceeding as of July 1, 2021.
2261 (3) This section does not establish a right to a refund or
2262 credit of taxes already paid.
2263 Section 25. (1) The Department of Revenue is authorized,
2264 and all conditions are deemed met, to adopt emergency rules
2265 pursuant to s. 120.54(4), Florida Statutes, for the purpose of
2266 administering this act.
2267 (2) Notwithstanding any other law, emergency rules adopted
2268 pursuant to subsection (1) are effective for 6 months after
2269 adoption and may be renewed during the pendency of procedures to
2270 adopt permanent rules addressing the subject of the emergency
2271 rules.
2272 (3) This section shall take effect upon this act becoming
2273 a law and expires July 1, 2023.
2274 Section 26. Notwithstanding s. 287.057, Florida Statutes,
2275 the Department of Revenue is authorized to contract with a

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2276 qualified vendor to provide services necessary to administer
2277 this act without using a competitive solicitation process. The
2278 authority granted to the Department of Revenue by this section
2279 applies solely to the implementation and administration of this
2280 act and may not be used for any other purpose. Such authority
2281 ends, and any contract entered into pursuant to this section
2282 still in force becomes void, upon the expiration of this
2283 section. This section expires June 30, 2023.
2284 Section 27. For the 2020-2021 fiscal year, the sum of
2285 $353,000 in nonrecurring funds is appropriated from the General
2286 Revenue Fund to the Department of Revenue for the purpose of
2287 implementing this act. Funds remaining unexpended or
2288 unencumbered from this appropriation as of June 30, 2021, shall
2289 revert and be reappropriated for the same purpose in the 2021-
2290 2022 fiscal year.
2291 Section 28. If any provision of this act or its
2292 application to any person or circumstance is held invalid, the
2293 invalidity does not affect other provisions or applications of
2294 the act which can be given effect without the invalid provision
2295 or application, and to this end the provisions of this act are
2296 severable.
2297 Section 29. Except as otherwise expressly provided in this
2298 act and except for this section, which shall take effect upon
2299 this act becoming a law, this act shall take effect July 1,
2300 2021.

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