Commerce and Tourism, 2021 Regular Session — Agenda Order (03/29/2021)
Summary
Packet for the Commerce and Tourism committee meeting of Monday, March 29, 2021, in the 2021 Regular Session of The Florida Senate, with Senator Hooper as Chair and Senator Wright as Vice Chair. The expanded agenda records CS/SB 954 (Attorney Compensation) as Favorable on Yeas 9 Nays 2, SB 1072 (Online Marketplace Transparency) as Favorable on Yeas 7 Nays 3, and SB 1882 as Temporarily Postponed. It also includes a Committee Agenda Request dated March 15, 2021 from Senator Aaron Bean for Senate Bill #954 and the bill analysis of CS/SB 954 dated March 26, 2021, which states that the bill removes the estate-value-based fee schedule for attorneys in a probate or trust administration.
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“Commerce and Tourism, 2021 Regular Session — Agenda Order (03/29/2021).”
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Selection From: 03/29/2021 - Commerce and Tourism (3:30 PM - 6:00 PM) 2021 Regular Session
Customized 04/02/2021 12:42 PM
Agenda Order
Tab 1 CS/SB 954 by JU, Bean; (Compare to H 00625) Attorney Compensation
Tab 2 SB 1072 by Baxley; (Compare to H 01223) Online Marketplace Transparency
Tab 3 SB 1176 by Stewart (CO-INTRODUCERS) Bracy; (Identical to H 00855) Barber Services
Tab 4 SB 1246 by Rodrigues; (Identical to H 00863) Capital Investment Tax Credit
Tab 5 SB 1882 by Rodrigues; (Identical to H 01343) Issuance of Licenses to Carry Concealed Weapons or Firearms
SB 1906 by Brodeur (CO-INTRODUCERS) Taddeo, Stewart, Garcia, Gruters; (Compare to H 00207)
Tab 6
Reemployment Assistance
565626 A S UNFAV CM, Torres Delete L.15 - 66: 03/30 02:03 PM
810712 A S RCS CM, Brodeur Delete L.15 - 17: 03/30 02:03 PM
608332 A S UNFAV CM, Powell Delete L.15 - 17: 03/30 02:03 PM
238872 A S UNFAV CM, Powell Before L.15: 03/30 02:03 PM
321614 A S WD CM, Powell Delete L.15 - 17: 03/30 02:03 PM
774460 A S UNFAV CM, Powell Delete L.15 - 37: 03/30 02:03 PM
Tab 7 SB 1758 by Brandes; (Compare to CS/H 01351) Money Services Businesses
Tab 8 SB 1390 by Gruters; (Identical to H 01125) Capital Investment Tax Credit
301108 D S RCS CM, Gruters Delete everything after 03/30 02:05 PM
Tab 9 SB 1682 by Gruters; (Compare to CS/H 01307) Telephone Solicitation
Page 1 of 1
2021 Regular Session The Florida Senate
COMMITTEE MEETING EXPANDED AGENDA
COMMERCE AND TOURISM
Senator Hooper, Chair
Senator Wright, Vice Chair
MEETING DATE: Monday, March 29, 2021
TIME: 3:30—6:00 p.m.
PLACE: Toni Jennings Committee Room, 110 Senate Building
MEMBERS: Senator Hooper, Chair; Senator Wright, Vice Chair; Senators Burgess, Diaz, Garcia, Gruters,
Hutson, Pizzo, Powell, Taddeo, and Torres
BILL DESCRIPTION and
TAB BILL NO. and INTRODUCER SENATE COMMITTEE ACTIONS COMMITTEE ACTION
PUBLIC TESTIMONY WILL BE RECEIVED FROM ROOM A1 AT THE DONALD L
TUCKER CIVIC CENTER, 505 W PENSACOLA STREET, TALLAHASSEE, FL 32301
1 CS/SB 954 Attorney Compensation; Requiring an attorney who Favorable
Judiciary / Bean accepts certain engagements to obtain a fee Yeas 9 Nays 2
(Compare H 625) disclosure statement signed by the person
responsible for administering an estate; deleting
provisions relating to the determination of reasonable
compensation for attorneys of personal
representatives; deleting provisions relating to the
determination of reasonable compensation for
attorneys of trustees, etc.
JU 03/15/2021 Fav/CS
CM 03/29/2021 Favorable
RC
2 SB 1072 Online Marketplace Transparency; Requiring online Favorable
Baxley marketplaces to require high-volume third-party Yeas 7 Nays 3
(Compare H 1223) sellers using their service to provide certain
information to the online marketplace within a
specified timeframe; requiring the online marketplace
to verify such information, or changes to such
information, within a specified timeframe; requiring
the online marketplace to suspend certain sellers who
do not provide such a certification or updated
information; authorizing the Department of Legal
Affairs to adopt rules; preempting the regulation of the
disclosure of such information to the state, etc.
CM 03/29/2021 Favorable
JU
RC
3 SB 1176 Barber Services; Authorizing a barber to shampoo, Favorable
Stewart cut, or arrange hair in a location other than a Yeas 10 Nays 0
(Identical H 855) registered barbershop without specified
arrangements, etc.
RI 03/16/2021 Favorable
CM 03/29/2021 Favorable
RC
S-036 (10/2008)
03292021.1815 Page 1 of 3
COMMITTEE MEETING EXPANDED AGENDA
Commerce and Tourism
Monday, March 29, 2021, 3:30—6:00 p.m.
BILL DESCRIPTION and
TAB BILL NO. and INTRODUCER SENATE COMMITTEE ACTIONS COMMITTEE ACTION
4 SB 1246 Capital Investment Tax Credit; Authorizing passenger Favorable
Rodrigues car rental companies and travel agencies that meet Yeas 10 Nays 0
(Identical H 863) certain criteria in a specified year to use unused tax
credits for certain purposes, etc.
CM 03/29/2021 Favorable
FT
AP
5 SB 1882 Issuance of Licenses to Carry Concealed Weapons or Temporarily Postponed
Rodrigues Firearms; Requiring the Department of Agriculture
(Identical H 1343) and Consumer Services to continually maintain an
online application process for the issuance of
licenses; prohibiting the department from arbitrarily or
subjectively restricting access to the online
application process, etc.
CM 03/29/2021 Temporarily Postponed
GO
AP
6 SB 1906 Reemployment Assistance; Increasing the weekly Fav/CS
Brodeur benefit amounts an individual may receive; increasing Yeas 9 Nays 1
(Compare H 207, H 1617, S 466, the cap on the total benefit amount an individual is
S 592, S 644, S 910, S 1996) entitled to receive during a benefit year, etc.
CM 03/29/2021 Fav/CS
ATD
AP
7 SB 1758 Money Services Businesses; Revising exceptions for Favorable
Brandes a licensee during the Financial Technology Sandbox Yeas 10 Nays 0
(Compare CS/H 1351) period; revising and providing definitions; prohibiting
certain activities by a person without obtaining a
license; providing requirements for a money
transmitter that receives virtual currency; excluding
virtual currency in the calculation of permissible
investments, etc.
BI 03/16/2021 Favorable
CM 03/29/2021 Favorable
RC
S-036 (10/2008)
03292021.1815 Page 2 of 3
COMMITTEE MEETING EXPANDED AGENDA
Commerce and Tourism
Monday, March 29, 2021, 3:30—6:00 p.m.
BILL DESCRIPTION and
TAB BILL NO. and INTRODUCER SENATE COMMITTEE ACTIONS COMMITTEE ACTION
8 SB 1390 Capital Investment Tax Credit; Defining the terms Fav/CS
Gruters “intellectual property” and “strategic priority project”; Yeas 11 Nays 0
(Identical H 1125) providing a credit against the corporate income tax,
the sales and use tax, or a stated combination of the
two taxes to a qualifying business that establishes a
qualifying project for the creation of intellectual
property which meets certain capital investment
criteria; providing a credit against the corporate
income tax, the sales and use tax, or a stated
combination of the two taxes to a qualifying business
that establishes a strategic priority project that meets
certain capital investment criteria, etc.
CM 03/29/2021 Fav/CS
FT
AP
9 SB 1682 Telephone Solicitation; Prohibiting certain telephonic Favorable
Gruters sales calls without the prior express written consent of Yeas 11 Nays 0
(Compare CS/H 1307) the called party; removing provisions authorizing the
use of certain automated telephone dialing systems;
authorizing a court to increase an award for willful and
knowing violations, etc.
CM 03/29/2021 Favorable
RI
RC
Other Related Meeting Documents
S-036 (10/2008)
03292021.1815 Page 3 of 3
The Florida Senate
Committee Agenda Request
To: Senator Ed Hooper, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: March 15, 2021
I respectfully request that Senate Bill #954, relating to Attorney Compensation, be placed on the:
committee agenda at your earliest possible convenience.
next committee agenda.
Senator Aaron Bean
Florida Senate, District 4
File signed original with committee office S-020 (03/2004)
The Florida Senate
3/29/21
APPEARANCE RECORD 954
Meeting Date
Bill Number (if applicable)
Topic
Amendment Barco e (if applicable)
Name Martha Edenfield
Job Title
Address 106 E. Colleg Ave, Suite 1200 Phone 850-999-4100
Street
Tallahasee FL 32301 Email me enf el @deanmead,com
City State Zip
Speaking; For Against Information Waive Speaking; In Support l lAgainst
( e Chair will read this information into the record.)
Representing The eal Property, Probate and Trust La Section of the Florida Bar
Appearing at request of Chair:Yes
|Yes[
No]No Lobbyist registere with Leg slature; I Yes I ]nq
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form Is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SB 954
INTRODUCER: Judiciary Committee and Senator Bean
SUBJECT: Attorney Compensation
DATE: March 26, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Ravelo Cibula JU Fav/CS
2. McMillan McKay CM Favorable
3. RC
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 954 removes the estate-value-based fee schedule that is currently in place for attorneys in
a probate or trust administration.
Currently, the fee schedule provides that an attorney’s fee is presumed reasonable if it conforms
to a calculation based on a percentage of the value of the estate or trust. A judge may increase or
decrease the compensation of an attorney upon petition by an interested party.
The bill removes the presumption that a fee based on the fee schedule is reasonable and requires
an attorney to obtain a fee disclosure statement from a prospective client in a probate or other
administration. This disclosure statement is intended to inform a prospective client that the fee is
subject to negotiation and not required to be based on the value of the estate. The disclosure also
provides that selection of the attorney is at the discretion of the personal representative.
The bill takes effect July 1, 2021.
BILL: CS/SB 954 Page 2
II. Present Situation:
Probate Administration
Probate is a court supervised process for identifying and gathering the assets of a deceased
person, paying his or her debts, and distributing those assets to beneficiaries.1 A personal
representative is appointed to execute this process, and the representative may retain an attorney
using funds from the estate.2
Section 733.6171, F.S., provides that an attorney for the personal representative is entitled to
reasonable compensation for his or her services payable from the estate without a court order.
The attorney, the personal representative, and the heirs to the estate may agree to the specific
compensation of the attorney. Section 733.6171, F.S., identifies a schedule of fees for the
attorney which are presumed to be reasonable, as follows:
Compensable Value of the Estate Reasonable Compensation
$40,000 or less $1,500
$40,000 - $70,000 $2,250
$70,000 - $100,000 $3,000
> $100,000 $3,000 + 3% on the next $900,000
$1,000,000 - $3,000,000 2.5% for all above $1 million and not
exceeding $3 million
$3,000,000 - $5,000,000 2% for all above $3 million and not
exceeding $5 million
$5,000,000 – $10,000,000 1.5% for all above $5 million and not
exceeding $10 million
> $10,000,000 1% for all above $10 million
An attorney for the personal representative may receive further compensation for any
extraordinary service. What constitutes an extraordinary service may depend on a number of
factors like the size of the estate and the number of beneficiaries. Extraordinary services may
include, but are not limited to:
A will contest;
Will drafting and construction;
A proceeding for the determination of beneficiaries;
A contested claim;
An elective share proceeding;
Apportionment of estate taxes;
An adversarial proceeding;
Litigation by or against the estate;
Representation during an audit;
Tax advice on post mortem planning;
Review of estate tax return and preparation of other associated returns;
1
The Florida Bar, Consumer Pamphlet: Probate in Florida, What is Probate? available at
https://www.floridabar.org/public/consumer/pamphlet026/#whatisprobate (last visited Mar. 26, 2021).
2
Section 733.106(2) & (3), F.S.
BILL: CS/SB 954 Page 3
Preparation of the estate’s federal tax return;
Purchase, sale, lease, or encumbrance of real property by the personal representative;
Legal advice regarding the decedent’s business or commercial activity;
Legal advice regarding claims for damage to environment or similar proceedings;
Legal advice related to homestead status of real property;
Involvement in fiduciary, employee, or attorney compensation disputes; or
Administration of assets not subject to administration in Florida.3
Upon the petition of any interested party, the court may increase or decrease the compensation
for ordinary services of the attorney or award compensation for the performance of extraordinary
services. When making a determination regarding reasonable compensation, the court must
consider the:
Promptness, efficiency, and skill with which the administration was handled by the attorney;
Responsibilities assumed by and the potential liabilities of the attorney;
Nature and value of the assets;
Benefits or detriments resulting to the estate or interested parties from the attorney’s services;
Complexity or simplicity of the administration and the novelty of the issues presented;
Attorney’s participation in tax planning for the estate and the estate’s beneficiaries and tax
return preparation, review, or approval;
Nature of the probate, nonprobate, and exempt asset, the expenses of administration, the
liabilities of the decedent, and the compensation paid to other professionals and fiduciaries;
Delay in payment of the compensation after the services were furnished; and
Other relevant factors the court deems appropriate.4
Fees and costs awarded under s. 733.106, F.S., are payable from the estate. The court has the
discretion to assess the burden of the fees paid from the estate to the part of the estate of the
person who should be equitably charged for the fees.5 However, the assessment is limited to the
value of that person's interest in the estate. If the fees and costs awarded are in excess of the
person's share of the estate, there is no personal liability for the fees and costs on the part of such
person.6
Trust Administration
Section 736.1007, F.S., authorizes the trustee of a revocable trust to retain an attorney in
connection with the initial administration of the trust,7 and the attorney is entitled to reasonable
compensation for the legal services provided, payable from the assets of the trust, without a court
order.8 Current law also provides that a trustee and the attorney may agree to compensation
3
Section 733.6171(4), F.S.
4
Section 733.6171(5), F.S.
5
Section 733.106(4), F.S.
6
Dourado v. Chousa, 604 So. 2d 864, 866 (Fla. 5th DCA 1992).
7
Section 736.1007(8), F.S., defines “initial trust administration” to mean administration of a revocable trust during the period
that begins with the death of the settlor and ends on the final distribution of trust assets outright or to continuing trusts created
under the trust agreement but, if an estate tax return is required, not until after issuance of an estate tax closing letter or other
evidence of termination of the estate tax proceeding. This initial period is not intended to include continued regular
administration of the trust.
8
Section 736.1007(1), F.S., is subject to s. 736.0802(10), F.S.
BILL: CS/SB 954 Page 4
outside of the manner or amount provided under s. 736.1007, F.S., and the agreement is not
binding on a person who bears the impact of the compensation unless that person is a party to or
otherwise consents to be bound by the agreement.9
For ordinary services of all attorneys employed to advise a trustee concerning the trustee’s duties
in the initial trust administration, compensation is presumed to be reasonable if it is based on the
value of the trust assets immediately following the settlor’s death and the income earned by the
trust during initial administration at the rate of 75 percent of the schedule provided in s.
733.6171(3)(a)-(h).10
Ordinary services of the attorney in an initial trust administration include legal advice and
representation concerning the trustee's duties relating to the following:
Review of the trust instrument and each amendment for legal sufficiency and interpretation;
Implementation of substitution of the successor trustee;
Persons who must or should be served with required notices and the method and timing of
such service;
The obligation of a successor to require a former trustee to provide an accounting;
The trustee's duty to protect, insure, and manage trust assets and the trustee's liability relating
to these duties;
The trustee's duty regarding investments imposed by the prudent investor rule;
The trustee's obligation to inform and account to beneficiaries and the method of satisfaction
of such obligations, the liability of the trust and trustee to the settlor's creditors, and the
advisability or necessity for probate proceedings to bar creditors;
Contributions due to the personal representative of the settlor's estate for payment of
expenses of administration and obligations of the settlor's estate;
Identifying tax returns required to be filed by the trustee, the trustee's liability for payment of
taxes, and the due date of returns;
Filing a nontaxable affidavit, if not filed by a personal representative;
Order of payment of expenses of administration of the trust and order and priority of
abatement of trust distributions;
Distribution of income or principal to beneficiaries or funding of further trusts provided in
the governing instrument;
Preparation of any legal documents required to effect distribution;
Fiduciary duties, avoidance of self-dealing, conflicts of interest, duty of impartiality, and
obligations to beneficiaries;
If there is a conflict of interest between a trustee who is a beneficiary and other beneficiaries
of the trust, advice to the trustee on limitations of certain authority of the trustee regarding
discretionary distributions or exercise of certain powers and alternatives for appointment of
an independent trustee and appropriate procedures; and
Procedures for the trustee's discharge from liability for administration of the trust on
termination or resignation.11
9
Section 736.1007(1), F.S. The statute provides that the agreement may provide that the trustee is not individually liable for
the attorney fees and costs.
10
Section 736.1007(2), F.S.
11
Section 736.1007(4), F.S.
BILL: CS/SB 954 Page 5
For extraordinary services, the attorney for the trustee must be allowed further reasonable
compensation.12 Extraordinary services may include the following:13
Involvement in a trust contest, trust construction, a proceeding for determination of
beneficiaries, a contested claim, elective share proceedings, apportionment of estate taxes, or
other adversary proceedings or litigation by or against the trust;
Representation of the trustee in an audit or any proceeding for adjustment, determination, or
collection of any taxes;
Tax advice on postmortem tax planning;14
Review of an estate tax return and preparation or review of other tax returns required to be
filed by the trustee;
Preparation of decedent's federal estate tax return;15
Purchase, sale, lease, or encumbrance of real property by the trustee or involvement in
zoning, land use, environmental, or other similar matters;
Legal advice regarding carrying on of decedent's business or conducting other commercial
activity by the trustee;
Legal advice regarding claims for damage to the environment or related procedures;
Legal advice regarding homestead status of trust real property or proceedings involving the
status;
Involvement in fiduciary, employee, or attorney compensation disputes; and
Considerations of special valuation of trust assets, including discounts for blockage, minority
interests, lack of marketability, and environmental liability.16
The court may increase or decrease the compensation for ordinary services of the attorney or
award compensation for extraordinary services if the facts or particular circumstances warrant.17
In determining reasonable compensation, the court must consider all of the following factors:
The promptness, efficiency, and skill with which the initial administration was handled by
the attorney;
The responsibilities assumed by, and potential liabilities of, the attorney;
The nature and value of the assets that are affected by the decedent's death;
The benefits or detriments resulting to the trust or the trust's beneficiaries from the attorney's
services;
The complexity or simplicity of the administration and the novelty of issues presented;
12
See Section 736.1007(5), F.S.
13
Id.
14
Section 736.1007(5)(c), F.S., provides that tax advice on postmortem tax planning, includes, but is not limited to,
disclaimer, renunciation of fiduciary commission, alternate valuation date, allocation of administrative expenses between tax
returns, the QTIP or reverse QTIP election, allocation of GST exemption, qualification for Internal Revenue Code ss. 303 and
6166 privileges,1 deduction of last illness expenses, distribution planning, asset basis considerations, throwback rules,
handling income or deductions in respect of a decedent, valuation discounts, special use and other valuation, handling
employee benefit or retirement proceeds, prompt assessment request, or request for release from personal liability for
payment of tax.
15
Section 736.1007(5)(e), F.S., provides that if the estate tax return is prepared by the attorney, a fee of one-half of 1 percent
up to a value of $10 million and one-fourth of 1 percent on the value in excess of $10 million, of the gross estate as finally
determined for federal estate tax purposes, is presumed to be reasonable compensation for the attorney for this service. These
fees shall include services for routine audit of the return, not beyond the examining agent level, if required.
16
See Section 736.1007(5), F.S.
17
See Section 736.1007(6), F.S.
BILL: CS/SB 954 Page 6
The attorney's participation in tax planning for the estate, the trust, and the trust's
beneficiaries and tax return preparation or review and approval;
The nature of the trust assets, the expenses of administration, and the claims payable by the
trust and the compensation paid to other professionals and fiduciaries;
Any delay in payment of the compensation after the services were furnished; and
Any other relevant factors.18
If a separate written agreement regarding compensation exists between the attorney and the
settlor, the attorney must furnish a copy to the trustee prior to the commencement of employment
and, if employed, must promptly serve a copy on all interested persons.19 The trustee is not
obligated to employ the attorney and the attorney is not obligated to accept representation but, if
the attorney who is a party to the agreement or who drafted the trust is employed, the
compensation paid must not exceed the amount provided in the agreement.20
Other Rules
Attorneys are also bound by the Rules Regulating the Florida Bar when considering
compensation from any client.21 Under the Bar rules, an attorney may not charge a clearly
excessive fee or cost.
A fee or cost is clearly excessive when:
(1) after a review of the facts, a lawyer of ordinary prudence would be left with a
definite and firm conviction that the fee or the cost exceeds a reasonable fee or
cost for services provided to such a degree as to constitute clear overreaching or
an unconscionable demand by the attorney; or
(2) the fee or cost is sought or secured by the attorney by means of intentional
misrepresentation or fraud upon the client, a nonclient party, or any court, as to
either entitlement to, or amount of, the fee.22
Reasonable fees, according to the Bar rules, are determined by taking into account:
The time and labor required, the novelty and difficulty of the question involved, and the skill
requisite to perform the legal service properly;
The likelihood, if apparent to the client, that the acceptance of the particular employment will
preclude other employment by the lawyer;
The fee customarily charged in the locality for similar legal services;
The amount involved and the results obtained;
The time limitations imposed by the client or by the circumstances;
The nature and length of the professional relationship with the client;
The experience, reputation, and ability of the lawyer or lawyers performing the services; and
18
Id.
19
See Section 736.1007(7), F.S.
20
Id.
21
Fla. Bar Code Prof. Resp. 4-1.5.
22
Id.
BILL: CS/SB 954 Page 7
Whether the fee is fixed or contingent.23
Reasonable costs, such as witness costs, may be considered by taking into account:
The nature and extent of the disclosure made to the client about the costs;
Whether a specific agreement exists between the lawyer and client as to the costs a client is
expected to pay and how a cost is calculated that is charged to a client;
The actual amount charged by third party providers of services to the attorney;
Whether specific costs can be identified and allocated to an individual client or a reasonable
basis exists to estimate the costs charged;
The reasonable charges for providing in-house service to a client if the cost is an in-house
charge for services; and
The relationship and past course of conduct between the lawyer and the client.24
Background
In 1988, Florida passed legislation that covered the reasonable compensation of personal
representatives as well as attorneys, accountants, appraisers, and other agents employed by the
personal representative.25 The statute provided that reasonable compensation must be based on
one or more of the following:
The time and labor required;
The novelty and the difficulty of the questions involved, and the skill requisite to perform the
service properly;
The likelihood that the acceptance of the particular employment will preclude other
employment by the person;
The fee customarily charged in the locality for similar services;
The nature and value of the assets of the estate, the amount of income earned by the estate,
and the responsibilities and potential labilities assumed by the person;
The final results obtained;
The time limitations imposed by the circumstances;
The nature and length of the professional relationship with the decedent; and
The experience, reputation, diligence, and ability of the person performing the service.26
In 1993, the Legislature created s. 733.6171, F.S., to differentiate the compensation of attorneys
from others retained by a personal representative covered separately in s. 733.617, F.S.27 In
contrast to the 1988 compensation structure, the new legislation allowed for attorney
compensation to be based on the value of the estate along with the work hours contributed.28
Additionally, the statute allowed for two types of compensations: ordinary and extraordinary. 29
The statute provided that an attorney’s compensation based on the above standard could be
increased or decreased by a court upon petition by an interested party. In determining reasonable
23
Fla. Bar Code Prof. Resp. 4-1.5(b)(1).
24
Fla. Bar Code Prof. Resp. 4-1.5(b)(2).
25
See ch. 88-340, Laws of Fla.
26
Id.
27
See ch. 93-257, Laws of Fla.
28
Id.
29
Id.
BILL: CS/SB 954 Page 8
compensation, the court weighed factors that were similar to those in the 1988 statute. Thus,
although a fee determined using the above guidelines was presumed reasonable, it was not
definitive.30
In 1995, the Legislature amended s. 733.6171, F.S., to provide a fee structure. Specifically,
compensation based on the value of the estate and the income earned by the estate was presumed
reasonable based on a fee schedule similar to the current schedule.31An attorney could be further
compensated for any “extraordinary services,” such as more complex estates that may involve
tax preparation or contested claims.32 The amendment still provided that compensation may be
increased or decreased by a court upon petition by an interested party.33
III. Effect of Proposed Changes:
The bill removes the estate-value-based fee schedule that is currently in place for attorneys in a
probate or trust administration. Under current law, a fee based on the fee schedule for
compensation for ordinary services is presumed reasonable. An attorney could receive further
compensation if he or she provided certain extraordinary services.34 Likewise, a court could
increase or decrease compensation based on the particularities of a case. The bill removes these
provisions.35
The bill creates a duty for an attorney to obtain a fee disclosure statement when representing an
estate during a probate or other administration. The fee disclosure statement will give notice to
the client that the fee is not required to be based on the value of the estate and is subject to
negotiation. Additionally, the disclosure must specify that the selection of an attorney is at the
discretion of the personal representative and that the personal representative is not required to
select the attorney who drafted the will.
The bill takes effect July 1, 2021.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
30
One court, for example, awarded $60,000 as opposed to $265,236.57 as calculated under the statute. The court reasoned
“the statute’s only requirement is that attorneys receive reasonable compensation” and that the higher fee included under the
calculation may not be reasonable considering the amount of time and skill required for the estate in question. See Sitomer v.
First of Am. Bank-Cent., 667 So. 2d 456, 458 (Fla. 4th DCA 1996).
31
See ch. 95-401, Laws of Fla.
32
Id.
33
Id.
34
A non-exhaustive list of extraordinary services eligible for additional compensation for a trust administration is covered in
Section 736.1007(5), F.S. For a probate administration, this is covered in Section 733.6171(4), F.S.
35
Fla. Bar Code Prof. Resp. 4-1.5.
BILL: CS/SB 954 Page 9
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The bill may impact consumers involved in probate and estate administrations. By
removing the presumption that certain fees are per se reasonable, the bill may encourage
negotiated fees or fees based on the work necessary to execute the estate as opposed to
the value of the estate or trust.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
Section 2 of the bill amending s. 736.1007, F.S., refers to the “initial administration of the trust,”
however, the current definition of “initial trust administration” under s. 736.1007(8), F.S., is
deleted in the bill. The meaning of “initial administration of the trust” is potentially unclear.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 733.6171, 736.1007,
733.106, and 736.1005.
BILL: CS/SB 954 Page 10
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Judiciary on March 15, 2021:
The committee substitute changes the bill by:
Repealing the statutory attorney fee schedule for formal estate administration along
with its presumption of reasonableness.
Creating a fee disclosure statement that requires an attorney to make certain
disclosures regarding fees when representing an estate in probate.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2021 CS for SB 954 Florida Senate - 2021 CS for SB 954
By the Committee on Judiciary; and Senator Bean
590-02877-21 2021954c1 590-02877-21 2021954c1
1 A bill to be entitled 30 obtain a fee disclosure statement signed by the person
2 An act relating to attorney compensation; amending s. 31 responsible for administering the estate. Such statement must
3 733.6171, F.S.; requiring an attorney who accepts 32 specify all of the following:
4 certain engagements to obtain a fee disclosure 33 (a) The attorney fee for representing the estate in probate
5 statement signed by the person responsible for 34 matters is not set by law and is not required to be based on the
6 administering an estate; requiring that such 35 size of the estate.
7 disclosure statement contain certain statements; 36 (b) The fee is subject to negotiation between the personal
8 deleting provisions relating to the determination of 37 representative and the attorney.
9 reasonable compensation for attorneys of personal 38 (c) The selection of the attorney to represent the estate
10 representatives; deleting provisions relating to 39 is at the discretion of the personal representative, and the
11 petitions to increase or decrease compensation for 40 personal representative is not required to select the attorney
12 such attorneys; amending s. 736.1007, F.S.; deleting 41 who drafted the will.
13 provisions relating to the determination of reasonable 42 (2) The attorney, the personal representative, and persons
14 compensation for attorneys of trustees; deleting 43 bearing the impact of the compensation may agree to compensation
15 provisions relating to petitions to increase or 44 determined in a different manner than provided in this section.
16 decrease compensation for such attorneys; amending ss. 45 Compensation may also be determined in a different manner than
17 733.106 and 736.1005, F.S.; conforming provisions to 46 provided in this section if the manner is disclosed to the
18 changes made by the act; providing an effective date. 47 parties bearing the impact of the compensation and if no
19 48 objection is made as provided for in the Florida Probate Rules.
20 Be It Enacted by the Legislature of the State of Florida: 49 (3) Compensation for ordinary services of attorneys in
21 50 formal estate administration is presumed to be reasonable if
22 Section 1. Section 733.6171, Florida Statutes, is amended 51 based on the compensable value of the estate, which is the
23 to read: 52 inventory value of the probate estate assets and the income
24 733.6171 Compensation of attorney for the personal 53 earned by the estate during the administration as provided in
25 representative.— 54 the following schedule:
26 (1) Attorneys for personal representatives are shall be 55 (a) One thousand five hundred dollars for estates having a
27 entitled to reasonable compensation payable from the estate 56 value of $40,000 or less.
28 assets without court order. An attorney accepting an engagement 57 (b) An additional $750 for estates having a value of more
29 to represent an estate in probate or other administration must 58 than $40,000 and not exceeding $70,000.
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59 (c) An additional $750 for estates having a value of more 88 QTIP election, allocation of GST exemption, qualification for
60 than $70,000 and not exceeding $100,000. 89 Internal Revenue Code ss. 6166 and 303 privileges, deduction of
61 (d) For estates having a value in excess of $100,000, at 90 last illness expenses, fiscal year planning, distribution
62 the rate of 3 percent on the next $900,000. 91 planning, asset basis considerations, handling income or
63 (e) At the rate of 2.5 percent for all above $1 million and 92 deductions in respect of a decedent, valuation discounts,
64 not exceeding $3 million. 93 special use and other valuation, handling employee benefit or
65 (f) At the rate of 2 percent for all above $3 million and 94 retirement proceeds, prompt assessment request, or request for
66 not exceeding $5 million. 95 release of personal liability for payment of tax.
67 (g) At the rate of 1.5 percent for all above $5 million and 96 (d) Review of estate tax return and preparation or review
68 not exceeding $10 million. 97 of other tax returns required to be filed by the personal
69 (h) At the rate of 1 percent for all above $10 million. 98 representative.
70 (4) In addition to fees for ordinary services, the attorney 99 (e) Preparation of the estate’s federal estate tax return.
71 for the personal representative shall be allowed further 100 If this return is prepared by the attorney, a fee of one-half of
72 reasonable compensation for any extraordinary service. What is 101 1 percent up to a value of $10 million and one-fourth of 1
73 an extraordinary service may vary depending on many factors, 102 percent on the value in excess of $10 million of the gross
74 including the size of the estate. Extraordinary services may 103 estate as finally determined for federal estate tax purposes, is
75 include, but are not limited to: 104 presumed to be reasonable compensation for the attorney for this
76 (a) Involvement in a will contest, will construction, a 105 service. These fees shall include services for routine audit of
77 proceeding for determination of beneficiaries, a contested 106 the return, not beyond the examining agent level, if required.
78 claim, elective share proceeding, apportionment of estate taxes, 107 (f) Purchase, sale, lease, or encumbrance of real property
79 or any adversarial proceeding or litigation by or against the 108 by the personal representative or involvement in zoning, land
80 estate. 109 use, environmental, or other similar matters.
81 (b) Representation of the personal representative in audit 110 (g) Legal advice regarding carrying on of the decedent’s
82 or any proceeding for adjustment, determination, or collection 111 business or conducting other commercial activity by the personal
83 of any taxes. 112 representative.
84 (c) Tax advice on postmortem tax planning, including, but 113 (h) Legal advice regarding claims for damage to the
85 not limited to, disclaimer, renunciation of fiduciary 114 environment or related procedures.
86 commission, alternate valuation date, allocation of 115 (i) Legal advice regarding homestead status of real
87 administrative expenses between tax returns, the QTIP or reverse 116 property or proceedings involving that status and services
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117 related to protected homestead. 146 (h) Any delay in payment of the compensation after the
118 (j) Involvement in fiduciary, employee, or attorney 147 services were furnished.
119 compensation disputes. 148 (i) Any other relevant factors.
120 (k) Proceedings involving ancillary administration of 149 (2)(6) If a separate written agreement regarding
121 assets not subject to administration in this state. 150 compensation exists between the attorney and the decedent, the
122 (5) Upon petition of any interested person, the court may 151 attorney must shall furnish a copy to the personal
123 increase or decrease the compensation for ordinary services of 152 representative prior to commencement of employment, and, if
124 the attorney or award compensation for extraordinary services if 153 employed, must shall promptly file and serve a copy on all
125 the facts and circumstances of the particular administration 154 interested persons. Neither A separate agreement or nor a
126 warrant. In determining reasonable compensation, the court shall 155 provision in the will suggesting or directing that the personal
127 consider all of the following factors, giving weight to each as 156 representative retain a specific attorney does not will obligate
128 it determines to be appropriate: 157 the personal representative to employ the attorney or obligate
129 (a) The promptness, efficiency, and skill with which the 158 the attorney to accept the representation, but if the attorney
130 administration was handled by the attorney. 159 who is a party to the agreement or who drafted the will is
131 (b) The responsibilities assumed by and the potential 160 employed, the compensation paid may shall not exceed the
132 liabilities of the attorney. 161 compensation provided in the agreement or in the will.
133 (c) The nature and value of the assets that are affected by 162 Section 2. Section 736.1007, Florida Statutes, is amended
134 the decedent’s death. 163 to read:
135 (d) The benefits or detriments resulting to the estate or 164 736.1007 Trustee’s attorney fees.—
136 interested persons from the attorney’s services. 165 (1) If the trustee of a revocable trust retains an attorney
137 (e) The complexity or simplicity of the administration and 166 to render legal services in connection with the initial
138 the novelty of issues presented. 167 administration of the trust, the attorney is entitled to
139 (f) The attorney’s participation in tax planning for the 168 reasonable compensation for those legal services, payable from
140 estate and the estate’s beneficiaries and tax return 169 the assets of the trust, subject to s. 736.0802(10), without
141 preparation, review, or approval. 170 court order. The trustee and the attorney may agree to
142 (g) The nature of the probate, nonprobate, and exempt 171 compensation that is determined in a manner or amount other than
143 assets, the expenses of administration, the liabilities of the 172 the manner or amount provided in this section. The agreement is
144 decedent, and the compensation paid to other professionals and 173 not binding on a person who bears the impact of the compensation
145 fiduciaries. 174 unless that person is a party to or otherwise consents to be
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175 bound by the agreement. The agreement may provide that the 204 assets and the trustee’s liability relating to these duties.
176 trustee is not individually liable for the attorney fees and 205 (f) The trustee’s duty regarding investments imposed by the
177 costs. 206 prudent investor rule.
178 (2) Unless otherwise agreed, compensation based on the 207 (g) The trustee’s obligation to inform and account to
179 value of the trust assets immediately following the settlor’s 208 beneficiaries and the method of satisfaction of such
180 death and the income earned by the trust during initial 209 obligations, the liability of the trust and trustee to the
181 administration at the rate of 75 percent of the schedule 210 settlor’s creditors, and the advisability or necessity for
182 provided in s. 733.6171(3)(a)-(h) is presumed to be reasonable 211 probate proceedings to bar creditors.
183 total compensation for ordinary services of all attorneys 212 (h) Contributions due to the personal representative of the
184 employed generally to advise a trustee concerning the trustee’s 213 settlor’s estate for payment of expenses of administration and
185 duties in initial trust administration. 214 obligations of the settlor’s estate.
186 (3) An attorney who is retained to render only limited and 215 (i) Identifying tax returns required to be filed by the
187 specifically defined legal services shall be compensated as 216 trustee, the trustee’s liability for payment of taxes, and the
188 provided in the retaining agreement. If the amount or method of 217 due date of returns.
189 determining compensation is not provided in the agreement, the 218 (j) Filing a nontaxable affidavit, if not filed by a
190 attorney is entitled to a reasonable fee, taking into account 219 personal representative.
191 the factors set forth in subsection (6). 220 (k) Order of payment of expenses of administration of the
192 (4) Ordinary services of the attorney in an initial trust 221 trust and order and priority of abatement of trust
193 administration include legal advice and representation 222 distributions.
194 concerning the trustee’s duties relating to: 223 (l) Distribution of income or principal to beneficiaries or
195 (a) Review of the trust instrument and each amendment for 224 funding of further trusts provided in the governing instrument.
196 legal sufficiency and interpretation. 225 (m) Preparation of any legal documents required to effect
197 (b) Implementation of substitution of the successor 226 distribution.
198 trustee. 227 (n) Fiduciary duties, avoidance of self-dealing, conflicts
199 (c) Persons who must or should be served with required 228 of interest, duty of impartiality, and obligations to
200 notices and the method and timing of such service. 229 beneficiaries.
201 (d) The obligation of a successor to require a former 230 (o) If there is a conflict of interest between a trustee
202 trustee to provide an accounting. 231 who is a beneficiary and other beneficiaries of the trust,
203 (e) The trustee’s duty to protect, insure, and manage trust 232 advice to the trustee on limitations of certain authority of the
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233 trustee regarding discretionary distributions or exercise of 262 proceeds, prompt assessment request, or request for release from
234 certain powers and alternatives for appointment of an 263 personal liability for payment of tax.
235 independent trustee and appropriate procedures. 264 (d) Review of an estate tax return and preparation or
236 (p) Procedures for the trustee’s discharge from liability 265 review of other tax returns required to be filed by the trustee.
237 for administration of the trust on termination or resignation. 266 (e) Preparation of decedent’s federal estate tax return. If
238 (5) In addition to the attorney’s fees for ordinary 267 this return is prepared by the attorney, a fee of one-half of 1
239 services, the attorney for the trustee shall be allowed further 268 percent up to a value of $10 million and one-fourth of 1 percent
240 reasonable compensation for any extraordinary service. What 269 on the value in excess of $10 million, of the gross estate as
241 constitutes an extraordinary service may vary depending on many 270 finally determined for federal estate tax purposes, is presumed
242 factors, including the size of the trust. Extraordinary services 271 to be reasonable compensation for the attorney for this service.
243 may include, but are not limited to: 272 These fees shall include services for routine audit of the
244 (a) Involvement in a trust contest, trust construction, a 273 return, not beyond the examining agent level, if required.
245 proceeding for determination of beneficiaries, a contested 274 (f) Purchase, sale, lease, or encumbrance of real property
246 claim, elective share proceedings, apportionment of estate 275 by the trustee or involvement in zoning, land use,
247 taxes, or other adversary proceedings or litigation by or 276 environmental, or other similar matters.
248 against the trust. 277 (g) Legal advice regarding carrying on of decedent’s
249 (b) Representation of the trustee in an audit or any 278 business or conducting other commercial activity by the trustee.
250 proceeding for adjustment, determination, or collection of any 279 (h) Legal advice regarding claims for damage to the
251 taxes. 280 environment or related procedures.
252 (c) Tax advice on postmortem tax planning, including, but 281 (i) Legal advice regarding homestead status of trust real
253 not limited to, disclaimer, renunciation of fiduciary 282 property or proceedings involving the status.
254 commission, alternate valuation date, allocation of 283 (j) Involvement in fiduciary, employee, or attorney
255 administrative expenses between tax returns, the QTIP or reverse 284 compensation disputes.
256 QTIP election, allocation of GST exemption, qualification for 285 (k) Considerations of special valuation of trust assets,
257 Internal Revenue Code ss. 303 and 6166 privileges, deduction of 286 including discounts for blockage, minority interests, lack of
258 last illness expenses, distribution planning, asset basis 287 marketability, and environmental liability.
259 considerations, throwback rules, handling income or deductions 288 (6) Upon petition of any interested person in a proceeding
260 in respect of a decedent, valuation discounts, special use and 289 to review the compensation paid or to be paid to the attorney
261 other valuation, handling employee benefit or retirement 290 for the trustee, the court may increase or decrease the
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291 compensation for ordinary services of the attorney for the 320 file and serve a copy on all interested persons. A separate
292 trustee or award compensation for extraordinary services if the 321 agreement or a provision in the trust suggesting or directing
293 facts and circumstances of the particular administration 322 the trustee to retain a specific attorney does not obligate the
294 warrant. In determining reasonable compensation, the court shall 323 trustee to employ the attorney or obligate the attorney to
295 consider all of the following factors giving such weight to each 324 accept the representation but, if the attorney who is a party to
296 as the court may determine to be appropriate: 325 the agreement or who drafted the trust is employed, the
297 (a) The promptness, efficiency, and skill with which the 326 compensation paid may shall not exceed the compensation provided
298 initial administration was handled by the attorney. 327 in the agreement.
299 (b) The responsibilities assumed by, and potential 328 (8) As used in this section, the term “initial trust
300 liabilities of, the attorney. 329 administration” means administration of a revocable trust during
301 (c) The nature and value of the assets that are affected by 330 the period that begins with the death of the settlor and ends on
302 the decedent’s death. 331 the final distribution of trust assets outright or to continuing
303 (d) The benefits or detriments resulting to the trust or 332 trusts created under the trust agreement but, if an estate tax
304 the trust’s beneficiaries from the attorney’s services. 333 return is required, not until after issuance of an estate tax
305 (e) The complexity or simplicity of the administration and 334 closing letter or other evidence of termination of the estate
306 the novelty of issues presented. 335 tax proceeding. This initial period is not intended to include
307 (f) The attorney’s participation in tax planning for the 336 continued regular administration of the trust.
308 estate, the trust, and the trust’s beneficiaries and tax return 337 Section 3. Subsection (4) of section 733.106, Florida
309 preparation or review and approval. 338 Statutes, is amended to read:
310 (g) The nature of the trust assets, the expenses of 339 733.106 Costs and attorney fees.—
311 administration, and the claims payable by the trust and the 340 (4) If costs and attorney fees are to be paid from the
312 compensation paid to other professionals and fiduciaries. 341 estate under this section, s. 733.6171(4), s. 736.1005, or s.
313 (h) Any delay in payment of the compensation after the 342 736.1006, the court, in its discretion, may direct from what
314 services were furnished. 343 part of the estate they shall be paid.
315 (i) Any other relevant factors. 344 (a) If the court directs an assessment against a person’s
316 (2)(7) If a separate written agreement regarding 345 part of the estate and such part is insufficient to fully pay
317 compensation exists between the attorney and the settlor, the 346 the assessment, the court may direct payment from the person’s
318 attorney must shall furnish a copy to the trustee prior to 347 part of a trust, if any, if a pour-over will is involved and the
319 commencement of employment and, if employed, must shall promptly 348 matter is interrelated with the trust.
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349 (b) All or any part of the costs and attorney fees to be 378 Section 4. Subsection (2) of section 736.1005, Florida
350 paid from the estate may be assessed against one or more 379 Statutes, is amended to read:
351 persons’ part of the estate in such proportions as the court 380 736.1005 Attorney fees for services to the trust.—
352 finds to be just and proper. 381 (2) If attorney fees are to be paid from the trust under
353 (c) In the exercise of its discretion, the court may 382 subsection (1), s. 736.1007(5)(a), or s. 733.106(4)(a), the
354 consider the following factors: 383 court, in its discretion, may direct from what part of the trust
355 1. The relative impact of an assessment on the estimated 384 the fees shall be paid.
356 value of each person’s part of the estate. 385 (a) All or any part of the attorney fees to be paid from
357 2. The amount of costs and attorney fees to be assessed 386 the trust may be assessed against one or more persons’ part of
358 against a person’s part of the estate. 387 the trust in such proportions as the court finds to be just and
359 3. The extent to which a person whose part of the estate is 388 proper.
360 to be assessed, individually or through counsel, actively 389 (b) In the exercise of its discretion, the court may
361 participated in the proceeding. 390 consider the following factors:
362 4. The potential benefit or detriment to a person’s part of 391 1. The relative impact of an assessment on the estimated
363 the estate expected from the outcome of the proceeding. 392 value of each person’s part of the trust.
364 5. The relative strength or weakness of the merits of the 393 2. The amount of attorney fees to be assessed against a
365 claims, defenses, or objections, if any, asserted by a person 394 person’s part of the trust.
366 whose part of the estate is to be assessed. 395 3. The extent to which a person whose part of the trust is
367 6. Whether a person whose part of the estate is to be 396 to be assessed, individually or through counsel, actively
368 assessed was a prevailing party with respect to one or more 397 participated in the proceeding.
369 claims, defenses, or objections. 398 4. The potential benefit or detriment to a person’s part of
370 7. Whether a person whose part of the estate is to be 399 the trust expected from the outcome of the proceeding.
371 assessed unjustly caused an increase in the amount of costs and 400 5. The relative strength or weakness of the merits of the
372 attorney fees incurred by the personal representative or another 401 claims, defenses, or objections, if any, asserted by a person
373 interested person in connection with the proceeding. 402 whose part of the trust is to be assessed.
374 8. Any other relevant fact, circumstance, or equity. 403 6. Whether a person whose part of the trust is to be
375 (d) The court may assess a person’s part of the estate 404 assessed was a prevailing party with respect to one or more
376 without finding that the person engaged in bad faith, 405 claims, defenses, or objections.
377 wrongdoing, or frivolousness. 406 7. Whether a person whose part of the trust is to be
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407 assessed unjustly caused an increase in the amount of attorney
408 fees incurred by the trustee or another person in connection
409 with the proceeding.
410 8. Any other relevant fact, circumstance, or equity.
411 (c) The court may assess a person’s part of the trust
412 without finding that the person engaged in bad faith,
413 wrongdoing, or frivolousness.
414 Section 5. This act shall take effect July 1, 2021.
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THE FLORIDA SENATE COMMITTEES:
Ethics and Elections, Chair
Tallahassee, Florida 32399-1100 Appropriations Subcommittee on Criminal and
Civil Justice
Community Affairs
Criminal ustice
Health Policy
Judiciary
Rules
JOINT COMMITTEE:
Joint Legislative Auditing Committee,
Alternating Chair
SENATOR DE NIS BAXLEY
12th District
February 15, 2021
The Honorable Chair Ed Hooper
302 Senate Office Building
Tallahassee, FL 32399
Dear Chair Hooper,
I would like to request SB 1072 Online Marketplace Transparency be heard in the next
Commerce & Tourism Committee meeting.
Organized retail crime poses enormous risks to workers, consumers, and retail businesses.
Florida businesses lose millions of dollars each year due to organized retail crime and now this is
even more devastating at a time when many are struggling to stay afloat due to COVID-19.
SB 1072 is common sense legislation that requires online marketplaces to verify and authenticate
the identity of third parties who sell a high volume of products on their platforms. The bill
defines “High Volume Third Party Sellers --we are not talking about selling a mirror or
something you might find at a yard sale on Facebook Marketplace - a high volume seller is a
seller that during a 12-month period, has had 200 or more sales totaling $5,000 or more in gross
revenue. If an online marketplace does not comply, it would be a violation of the Deceptive and
Unfair Trade Practices Act and enforced by the Attorney General s office.
I appreciate your favorable consideration.
Onward & Upward,
Senator Dennis Baxley
Senate District 12
DKB/dd
cc: Todd McKay, Staff Director
REPLY TO:
206 South Hwy 27/441, Lady Lake, Florida 32159 (352) 750-3133
315 SE 25th Avenue, Ocala, Florida 34471 (352) 789-6720
322 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399-1100 (850) 487-5012
Senate s Website: www.flse ate.gov
WILTON SIMPSON AARON BEAN
President of the Senate President Pro Tempore
YOU MUST PRINT A D DELIVER THIS FOR TO THE ASSIGNED TESTIMONY ROOM
The Florida Senate
3.29.21
Meeting Date
APPEARANCE RECORD SB 1072
Bill Number (if applicable)
Topic Online Marketplace Transparency
Amendment Barcode (if applicable)
Name Paul Keller
Job Title Mult -Store Asset Protection Manager (MAPM)
Address 3200 Capital Circle NE Phone 904.612.2425
Street
Tallahassee FL 32308 Email P LLkeller@homedepotcom
City State Zip
Speaking: For Against Information Waive Speaking: LJ
In In Su port Against
Support
(The Chair will read this information into the record.)
Representing Th6 Home Depot
Appearing at request of Chair: Yes No Lobbyist registered with Legislature: Yes No
5603enco a9e t sti ony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is oart of the oublic record f thi<t maatinn
YOU MUST PRINT AND DELIVER THIS FOR TO THE ASSIGNED TESTIMONY ROOM
The Florida Senate
March 29, 2021
APPEARANCE RECORD 1072
Meeting Date Bill Number (if applicable)
Topic Oni>ne Marketplace Transparency
Amendment Barcode (if applicable)
Name Grace Lovett
Job Title VP Governmental Affairs
Address 227 S. Ada s Street Phone 850-222-4082
Street
Tallahassee FL 32301 Email Grace@frf.org
City State zip
Speaking: For Against Information Waive Speaking: LJ In Support Against
(The Chair will read this information into the record.)
Representing Florida etail Federation
Appearing at request of Chair: Yes No Lobbyist registered with Legislature: Yes No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
The Florida Senate
APPEARANCE RECORD
3 1 Meeting Date
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
Bill Number (if applicable)
Topic Amendment Barcode (if applicable)
( I I I 1 z? J .4 - '
Name
Job Title. lon 3) /
Address Phone.
Street
City State Zip ' J
Speakin : r - or | | Against Information Waive Speaking: |~] In Support | | Against
(The Chair will read this information into the record.)
Representing l )cdye j
Appearing at request of Chair: No Lobbyist registered with Legislature: No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is Dart o the oubiic r cord fo this meetina.
YOU MUST PRINT AND DELIVER THIS FOR TO THE ASSIGNED TESTIMONY ROOM
The Florida Senate
3/29/21 APPEARANCE RECORD SB 1072
Meeting Dat Bill Number (if applicable)
Topic Online Marketplace Transparency Amendment Barcode (if applicable)
Name Gre9 Black
Job Title Lobbyist
Address PQ Box 838 Phone 8505098022
Street
Tallahassee FL 32302 Email Greg@WaypointStrat.com
City State Zip
Speaking: For Against Information Waive Speaking: In Support (Against
(The Chair will read this information into the record.)
Representing International Council of Shopping Centers
Appearing at request of Chair: Yes l l No Lobbyist registered with Legislature: Yes No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
S-001 (10/14/14)
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
Z12. 1 12-1 Bill Number (if applicable)
1 Meetin Date
Topic O li Amendment Barcode (if applicable)
Name _ e kto . o
Job Title Dl - oC
Address -.O Phone_ 1-7
Street t --
/ l&tin I Email
City State
Speaking: For Against Information Waive Speaking: | | In Support [ Against
(The Chair will read this information into the record.)
Representing
Appearing at request of Chair: Yes No Lobbyist registered with Legislature: Yes
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
S-001 (10/14/14)
YOU MUST PRINT AND DELIVE THIS FOR TO THE ASSIGNED TESTIMONY ROOM
The Florida Senate
SB 1072
3/29/21 3:30PM APPEARANCE RECORD Bill Number (if applicable)
Meeting Date
Topjc SB 1072 - Online Marketplace Transparency Amend ent Barcode (if applicable)
Name Alti Liby-Schoonover
Job Title Senior Policy Advisor
phone 850-205-9000
Address 119 s Monroe st #200
Street
TLH FL 32301 Ernail ALS@MHDFirm.com
City State Zip
For Against Information Waive Speaking: In Support Against
Speaking: (The Chair will read this information into the record.)
Representing eBay
Appearing at request of Chair:Yes NoIKJNo
LJYes Lobbyist registered
Lobbyist withwLegislature:
registereo [ lYes
n Legisiaiuie. . <== . .No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
S-001 (10/14/14)
This, f rm is oart of the oublic record for this me ting.
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The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1072
INTRODUCER: Senator Baxley
SUBJECT: Online Marketplace Transparency
DATE: March 26, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. McMillan McKay CM Favorable
2. JU
3. RC
I. Summary:
The bill creates s. 559.953, F.S., which establishes that an online marketplace must require high-
volume third-party sellers to provide the online marketplace with verification and disclosure
information.
The bill provides that a violation of s. 559.953, F.S., constitutes a violation of the Florida
Deceptive and Unfair Trade Practices Act, and the Department of Legal Affairs may adopt rules
to collect and verify the required information. Additionally, regulation under s. 559.953, F.S., is
preempted to the Department of Legal Affairs.
The bill takes effect July 1, 2021.
II. Present Situation:
Florida Deceptive and Unfair Trade Practices Act (FDUTPA)
History and Purpose of FDUTPA
The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) became law in 1973.1 The
FDUTPA is a consumer and business protection measure that prohibits unfair methods of
competition, unconscionable acts or practices, and unfair or deceptive acts or practices in trade or
commerce.2 The FDUTPA is based on federal law, and s. 501.204(2), F.S., provides that it is the
intent of the Legislature that due consideration and great weight must be given to the
1
Ch. 73-124, Laws of Fla.; codified at part II of ch. 501, F.S.
2
See s. 501.202, F.S. Trade or commerce means the advertising, soliciting, providing, offering, or distributing, whether by
sale, rental, or otherwise, of any good or service, or any property, whether tangible or intangible, or any other article,
commodity, or thing of value, wherever situated. “Trade or commerce” shall include the conduct of any trade or commerce,
however denominated, including any nonprofit or not-for-profit person or activity. See s. 501.203(8), F.S.
BILL: SB 1072 Page 2
interpretations of the Federal Trade Commission and the federal courts relating to section 5 of
the Federal Trade Commission Act.3
The State Attorney or the Department of Legal Affairs may bring actions when it is in the public
interest on behalf of consumers or governmental entities.4 The Office of the State Attorney may
enforce violations of the FDUTPA if the violations take place in its jurisdiction.5 The
Department of Legal Affairs has enforcement authority if the violation is multi-jurisdictional, the
state attorney defers in writing, or the state attorney fails to act within 90 days after a written
complaint is filed.6 Consumers may also file suit through private actions.7
Remedies under the FDUTPA
The Department of Legal Affairs and the State Attorney, as enforcing authorities, may seek the
following remedies:
Declaratory judgments;
Injunctive relief;
Actual damages on behalf of consumers and businesses;
Cease and desist orders; and
Civil penalties of up to $10,000 per willful violation.8
Remedies for private parties are limited to the following:
A declaratory judgment and an injunction where a person is aggrieved by a FDUTPA
violation; and
Actual damages, attorney fees and court costs, where a person has suffered a loss due to a
FDUTPA violation.9
Federal Unfair and Deceptive Trade Practices
The Federal Trade Commission’s (FTC’s) unfair and deceptive trade practices regulations
prohibit unfair10 or deceptive11 acts or practices in or affecting commerce.12 The FTC’s
regulations include “Truth In Advertising” guidelines, which require advertisements to be
3
See s 501.204(2), F.S.
4
See ss. 501.203(2), 501.206, and 501.207, F.S.
5
Section 501.203(2), F.S.
6
Id.
7
Section 501.211, F.S.
8
Sections 501.207(1), 501.208, and 501.2075, F.S. Civil Penalties are deposited into general revenue. Enforcing authorities
may also request attorney fees and costs of investigation or litigation. Section 501.2105, F.S.
9
Section 501.211(1) and (2), F.S.
10
An “unfair” practice is unfair if it causes or is likely to cause substantial injury to consumers which is not reasonably
avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition. See 15
U.S.C. Sec. 45(n).
11
A “deceptive” practice involves a material representation, omission or practice that is likely to mislead a consumer acting
reasonably in the circumstances. See FTC Policy Statement on Deception (Oct. 14, 1983) available at
https://www.ftc.gov/system/files/documents/public_statements/410531/831014deceptionstmt.pdf (last visited March 26,
2021). See also Federal Trade Commission, A Brief Overview of the Federal Trade Commission's Investigative, Law
Enforcement, and Rulemaking Authority (revised, Oct. 2019) available at https://www.ftc.gov/about-ftc/what-we-
do/enforcement-authority (last visited March 26, 2021).
12
15 U.S.C. s. 45(a)(1).
BILL: SB 1072 Page 3
truthful, not misleading, and, when appropriate, backed by scientific evidence.13 To enforce these
regulations, the FTC takes law enforcement actions, provides consumer and business education,
issues reports and policy guidance, leads workshops, and participates in other forums.14
The FTC also provides “online shopping” guidance to consumers.15 The guidance includes
confirming an online seller’s physical address and phone number, scrutinizing details provided
about a product, paying with credit card, keeping records of any transaction, and protecting
personal information.16 Additionally, the FTC offers resources on how to compare products
online, as well as where to go to report online shopping fraud.17
E-commerce Marketplace
As e-commerce grows, the sale of counterfeit goods alongside authentic products continues to be
a concern.18 In 2020, the Department of Homeland Security published a report detailing potential
strategies and policies to combat the trade of counterfeit goods.19 According to the report, e-
commerce platforms enable counterfeiters to produce products at lower prices, while also
reaching a larger number of potential customers.20 The report points to a scenario where third-
party marketplace websites contain photos of the real product, fake reviews of the counterfeit
product, and other information designed to mislead consumers.21
The report also discusses how the online marketplace is changing consumer attitudes and
perceptions.22 For instance, shopping online makes it harder for consumers to identify what the
report calls traditional “red flag” indicators, which has the potential to cause safety risks when
consumers rely on false claims that certain products have health or safety certificates.23 The
report points out that this dynamic creates a lack of consumer trust, as well as harming the
reputation of brands or businesses.24
In 2019, the Organization for Economic Cooperation and Development (OECD) in partnership
with the EU Intellectual Property Office (EUIPO) also published a study detailing trends in
13
Federal Trade Commission, Truth In Advertising, available at https://www.ftc.gov/news-events/media-resources/truth-
advertising (last visited March 26, 2021).
14
Federal Trade Commission, Protecting Consumers from Fraud and Deception, available at https://www.ftc.gov/news-
events/media-resources/truth-advertising/protecting-consumers (last visited March 26, 2021).
15
See Federal Trade Commission, Shopping Online, available at https://www.consumer.ftc.gov/articles/0020-shopping-
online (last visited March 26, 2021).
16
Id.
17
Id. See also Federal Trade Commission, Comparing Products Online, available at https://www.consumer.ftc.gov/shopping
(last visited March 26, 2021).
18
See Department of Homeland Security, Combating Trafficking in Counterfeit and Pirated Goods (Jan. 24, 2020), available
at https://www.dhs.gov/sites/default/files/publications/20_0124_plcy_counterfeit-pirated-goods-report_01.pdf (last visited
March 26, 2021).
19
Id.
20
Id. at 21.
21
Id. at 22.
22
Id. at 14.
23
Id. at 15.
24
Id.
BILL: SB 1072 Page 4
counterfeit and pirated goods.25 According to the OECD, trade in fake goods infringe on
trademarks and copyright, while also potentially harming the health and safety of consumers.26
The OECD reported that counterfeit and pirated goods were steadily rising, and in March of
2019, accounted for 3.3% of global trade.27
Preemption
Local governments have broad authority to legislate on any matter that is not inconsistent with
federal or state law. A local government enactment may be inconsistent with state law if (1) the
Legislature has preempted a particular subject area or (2) the local enactment conflicts with a
state statute. Where state preemption applies, it precludes a local government from exercising
authority in that particular area.28
Florida law recognizes two types of preemption: express and implied. Express preemption
requires a specific legislative statement; it cannot be implied or inferred.29 Express preemption of
a field by the Legislature must be accomplished by clear language stating that intent.30 In cases
where the Legislature expressly or specifically preempts an area, there is no problem with
ascertaining what the Legislature intended.31
In cases determining the validity of ordinances enacted in the face of state preemption, the effect
has been to find such ordinances null and void.32 Implied preemption is actually a decision by the
courts to create preemption in the absence of an explicit legislative directive.33 Preemption of a
local government enactment is implied only where the legislative scheme is so pervasive as to
evidence an intent to preempt the particular area, and strong public policy reasons exist for
finding preemption.34 Implied preemption is found where the local legislation would present the
danger of conflict with the state's pervasive regulatory scheme.35
III. Effect of Proposed Changes:
The bill creates s. 559.953, F.S., and provides the following definitions:
“High-volume third-party seller” means a participant in an online marketplace who is a third-
party seller and who, in any continuous 12-month period during the previous 24-months, has
25
See Organization for Economic Cooperation and Development, Trends in Trade in Counterfeit and Pirated Goods (2019),
available at https://read.oecd-ilibrary.org/trade/trends-in-trade-in-counterfeit-and-pirated-goods_g2g9f533-en#page1 (last
visited March 26, 2021).
26
See Organization for Economic Cooperation and Development, Trade in Fake Goods is now 3.3% of World Trading and
Rising (March 18, 2019), available at www.oecd.org/newsroom/trade-in-fake-goods-is-now-33-of-world-trade-and-
rising.htm (last visited March 26, 2021).
27
Id.
28
See James R. Wolf and Sarah Harley Bolinder, The Effectiveness of Home Rule: A Preemptions and Conflict Analysis, 83
Fla. B.J. 92 (June 2009).
29
See City of Hollywood v. Mulligan, 934 So.2d 1238, 1243 (Fla. 2006); Phantom of Clearwater, Inc. v. Pinellas County, 894
So.2d 1011, 1018 (Fla. 2d DCA 2005), approved in Phantom of Brevard, Inc. v. Brevard County, 3 So.3d 309 (Fla. 2008).
30
Mulligan, 934 So.2d at 1243.
31
Sarasota Alliance for Fair Elections, Inc. v. Browning, 28 So.3d 880, 886 (Fla. 2010).
32
See, e.g., Nat’l Rifle Ass’n of Am., Inc. v. City of S. Miami, 812 So.2d 504 (Fla. 3d DCA 2002).
33
Phantom of Clearwater, Inc., 894 So.2d at 1019.
34
Id.
35
Sarasota Alliance for Fair Elections, Inc., 28 So.3d at 886.
BILL: SB 1072 Page 5
entered into 200 or more discrete sales or transactions of new or unused consumer products
resulting in the accumulation of an aggregate total of $5,000 or more in gross revenues;
“Third-party seller” means any seller, independent of an operator, a facilitator, or an owner
of an online marketplace, who sells, offers to sell, or contracts to sell a consumer product in
the United States through an online marketplace; and
“Seller” means a person who sells, offers to sell, or contracts to sell a consumer product
through an online marketplace.
The bill establishes that an online marketplace must require high-volume third-party sellers to
provide the online marketplace36 with the following information within 24 hours after becoming
a high-volume third-party seller:
Bank account information, which requires the online marketplace, a payment processor, or
another third party contacted by the online marketplace seller to directly confirm the
accuracy of such information;
Contact information;37
A business tax identification number or, if the high-volume third party seller does not have a
business tax identification number, a taxpayer identification number; and
Whether the high-volume third-party seller is exclusively advertising or offering a consumer
product38 on the online marketplace, or if the high-volume third-party seller is currently
advertising or offering for sale the same consumer product on any Internet websites other
than the online marketplace.
The bill provides that the online marketplace must verify39 the information the high-volume
third-party seller provides under s. 559.953(2)(a), F.S., within 3 days after receiving the
information.40
The bill requires the online marketplace to annually notify each high-volume third-party seller
that they must inform the online marketplace of any changes to the information provided by the
seller within 3 days after receiving the notification.41
36
“Online marketplace” means any electronically based or accessed platform that includes features that allow for, facilitate,
or enable third-party sellers to engage in the sale, purchase, storage, shipping, or delivery of or payment for a consumer
product in the United States, and hosts one or more third-party sellers.
37
Contact information includes: (1) if the high-volume third-party seller is an individual, a copy of a government-issued
photo identification for the individual which includes the individual’s name and physical address; (2) if the high-volume
third-party seller is not an individual, either a copy of a government-issued photo identification for an individual acting on
behalf of the high-volume third-party seller which includes the individual’s name and physical address of the high-volume
third-party seller; and (3) a working e-mail address and working phone number.
38
“Consumer product” means any tangible personal property that is distributed in commerce and normally used for personal,
family, or household purposes. This includes property intended to be attached or installed in any real property without regard
to whether it is so attached or installed.
39
“Verify” means to confirm information provided to an online marketplace as provided under s. 559.953(2), F.S., by the use
of a third-party or proprietary identity verification system that has the capability to confirm a seller’s name, e-mail address,
physical address, and phone number, or a combination of two-factor authentication, public records search, and the
presentation of a government-issued identification.
40
If the seller provides any changes to the information, the online marketplace must verify the changes within 3 days after
receiving the information.
41
The online marketplace must include in the notification direction to each high-volume third-party seller to electronically
certify either that the seller’s information is unchanged or that the seller is providing changes to the information. The high-
BILL: SB 1072 Page 6
The bill establishes that an online marketplace must require a high-volume third-party seller to
disclose to consumers in a conspicuous manner the identity of the high-volume third-party
seller42 and any other information determined to be necessary to address circumvention or
evasion.
The bill provides that upon request of a high-volume third-party seller, an online marketplace
may allow partial disclosure of the identity information required in the following situations:
If the high-volume third-party seller demonstrates to the online marketplace that the seller
does not have a business address and only has a residential street address, the online
marketplace may direct the high-volume third-party seller to disclose only the country, and if
applicable, the state where the high-volume third-party seller resides on the product listing,
and may inform consumers that there is no business address available for the seller and that
consumer inquiries should be submitted to the seller by phone or e-mail;
If the high-volume third-party seller demonstrates to the online marketplace that the seller is
a business that has a physical address for product returns, the online marketplace may direct
the high-volume third-party seller to disclose the seller’s physical address for product returns;
and
If a high-volume third-party seller demonstrates to the online marketplace that the seller does
not have a phone number other than a personal phone number, the online marketplace must
inform consumers that there is no phone number available for the seller and that consumer
inquiries should be submitted to the seller’s e-mail address.43
The bill requires an online marketplace to conspicuously, on the product listing of any high-
volume third-party seller, disclose to consumers a reporting mechanism that allows for electronic
and telephonic reporting of suspicious marketplace activity to the online marketplace and a
message encouraging individuals seeking to purchase products to report suspicious activity to the
online marketplace.
The bill provides that an online marketplace that warehouses, distributes, or otherwise fulfills a
consumer product order must disclose to the consumer the identification of any high-volume
third-party seller supplying the consumer product if it is different than the seller listed on the
product listing page.
The bill establishes that a violation of s. 559.953, F.S., constitutes a violation of the Deceptive
and Unfair Trade Practices Act,44 and the Department of Legal Affairs may adopt rules to collect
and verify the required information.
volume third-party seller’s participation on the marketplace must be suspended until they have certified that their information
is unchanged or has provided any changed information and the information has been verified.
42
The identification must include the full name of the seller; the full physical address of the seller; whether the seller also
engages in manufacturing; importing, or reselling of consumer products; and contact information for the seller, including a
working phone number and a working e-mail address.
43
If an online marketplace becomes aware that a high-volume third-party seller has made a false representation in order to
justify the provision of a partial disclosure or has requested and received a provision for partial disclosure and has not
provided responsive answers within a reasonable timeframe to consumer inquires submitted to the seller by phone or e-mail,
the online marketplace must withdraw its provision for partial disclosure and require the full disclosure.
44
See part II of ch. 501, F.S.
BILL: SB 1072 Page 7
The bill provides that the regulation under s. 559.953, F.S., is preempted to the Department of
Legal Affairs.
The bill takes effect July 1, 2021.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None Identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Marketplace providers will be required to verify high volume third-party sellers, as well
as require certain disclosures. This will potentially provide more safety within the online
marketplace.
C. Government Sector Impact:
This bill will potentially lead to an increase in the investigations and enforcement actions
undertaken by the Department of Legal Affairs relating to violations of the provisions of
this bill.
VI. Technical Deficiencies:
None.
BILL: SB 1072 Page 8
VII. Related Issues:
None.
VIII. Statutes Affected:
The bill creates the following section of the Florida Statutes: 559.953.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2021 SB 1072 Florida Senate - 2021 SB 1072
By Senator Baxley
12-01091A-21 20211072__ 12-01091A-21 20211072__
1 A bill to be entitled 30 date.
2 An act relating to online marketplace transparency; 31
3 creating s. 559.953, F.S.; defining terms; requiring 32 Be It Enacted by the Legislature of the State of Florida:
4 online marketplaces to require high-volume third-party 33
5 sellers using their service to provide certain 34 Section 1. Section 559.953, Florida Statutes, is created to
6 information to the online marketplace within a 35 read:
7 specified timeframe; requiring the online marketplace 36 559.953 Disclosure of information by online marketplaces.—
8 to verify such information, or changes to such 37 (1) DEFINITIONS.—As used in this section, the term:
9 information, within a specified timeframe; providing 38 (a) “Consumer product” means any tangible personal property
10 that information on valid government-issued tax 39 that is distributed in commerce and normally used for personal,
11 documents is presumed to be verified as of the 40 family, or household purposes. The term includes property
12 issuance date; requiring an online marketplace to 41 intended to be attached to or installed in any real property
13 update and require certification of the updated 42 without regard to whether it is so attached or installed.
14 information at least annually; requiring the online 43 (b) “High-volume third-party seller” means a participant in
15 marketplace to suspend certain sellers who do not 44 an online marketplace who is a third-party seller and who, in
16 provide such a certification or updated information; 45 any continuous 12-month period during the previous 24 months,
17 requiring online marketplaces to require high-volume 46 has entered into 200 or more discrete sales or transactions of
18 third-party sellers to disclose certain information in 47 new or unused consumer products resulting in the accumulation of
19 a conspicuous manner on the product’s listing or 48 an aggregate total of $5,000 or more in gross revenues.
20 through a link on the product’s listing; authorizing 49 (c) “Online marketplace” means any electronically based or
21 an online marketplace to allow partial disclosure of 50 accessed platform that:
22 the identity of a high-volume third-party seller under 51 1. Includes features that allow for, facilitate, or enable
23 certain circumstances; requiring the online 52 third-party sellers to engage in the sale, purchase, storage,
24 marketplace to revoke the partial disclosure 53 shipping, or delivery of or payment for a consumer product in
25 authorization under certain circumstances; requiring 54 the United States; and
26 disclosure of suppliers; providing for enforcement; 55 2. Hosts one or more third-party sellers.
27 authorizing the Department of Legal Affairs to adopt 56 (d) “Seller” means a person who sells, offers to sell, or
28 rules; preempting the regulation of the disclosure of 57 contracts to sell a consumer product through an online
29 such information to the state; providing an effective 58 marketplace.
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59 (e) “Third-party seller” means any seller, independent of 88 online marketplace must directly confirm the accuracy of such
60 an operator, a facilitator, or an owner of an online 89 information. If the high-volume third-party seller does not have
61 marketplace, who sells, offers to sell, or contracts to sell a 90 a bank account, the seller may provide the name of the payee for
62 consumer product in the United States through an online 91 payments issued by the online marketplace to the high-volume
63 marketplace. The term does not include a seller who: 92 third-party seller. The seller may provide such bank account or
64 1. Is a business entity that has made available to the 93 payee information to the online marketplace or to a payment
65 general public the entity’s name, business address, and working 94 processor or other third party contracted by the online
66 contact information; 95 marketplace to maintain such information, provided that the
67 2. Has an ongoing contractual relationship with the owner 96 online marketplace may obtain such information on demand from
68 of the online marketplace to provide for the manufacture, 97 such payment processor or other third party.
69 distribution, wholesaling, or fulfillment of shipments of 98 2. Contact information, including all of the following:
70 consumer products; and 99 a. If the high-volume third-party seller is an individual,
71 3. Has provided to the online marketplace identifying 100 a copy of a government-issued photo identification for the
72 information that has been verified. 101 individual which includes the individual’s name and physical
73 (f) “Verify” means to confirm information provided to an 102 address.
74 online marketplace pursuant to this section by the use of: 103 b. If the high-volume third-party seller is not an
75 1. A third-party or proprietary identity verification 104 individual, either a copy of a government-issued photo
76 system that has the capability to confirm a seller’s name, e- 105 identification for an individual acting on behalf of the high-
77 mail address, physical address, and phone number; or 106 volume third-party seller which includes the individual’s name
78 2. A combination of two-factor authentication, public 107 and physical address, or a copy of a government-issued record or
79 records search, and the presentation of a government-issued 108 tax document that includes the business name and physical
80 identification. 109 address of the high-volume third-party seller.
81 (2) VERIFICATION.— 110 c. A working e-mail address and working phone number.
82 (a) An online marketplace shall require that any high- 111 3. A business tax identification number or, if the high-
83 volume third-party seller on the online marketplace provide the 112 volume third-party seller does not have a business tax
84 online marketplace with all of the following information within 113 identification number, a taxpayer identification number.
85 24 hours after becoming a high-volume third-party seller: 114 4. Whether the high-volume third-party seller is
86 1. Bank account information. The online marketplace, a 115 exclusively advertising or offering a consumer product on the
87 payment processor, or another third party contacted by the 116 online marketplace, or if the high-volume third-party seller is
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117 currently advertising or offering for sale the same consumer 146 (3) DISCLOSURE.—
118 product on any Internet websites other than the online 147 (a) An online marketplace shall require a high-volume
119 marketplace. 148 third-party seller to provide, and shall disclose to consumers
120 (b) The online marketplace shall verify the information the 149 in a conspicuous manner either on the product listing or, for
121 high-volume third-party seller provides under this subsection 150 information other than the seller’s full name, through a
122 within 3 days after receiving such information. If the seller 151 conspicuously placed link on the product listing, all of the
123 provides any changes to the information, the online marketplace 152 following information:
124 shall verify such changes within 3 days after receiving the 153 1. Subject to paragraph (b), the identity of the high-
125 information. If a high-volume third-party seller provides a copy 154 volume third-party seller. Such identification must include the
126 of a valid government-issued tax document, information contained 155 full name of the seller; the full physical address of the
127 within such tax document shall be presumed to be verified as of 156 seller; whether the seller also engages in the manufacturing,
128 the date of issuance of such record or document. 157 importing, or reselling of consumer products; and contact
129 (c) The online marketplace shall, on at least an annual 158 information for the seller, including a working phone number and
130 basis, notify each high-volume third-party seller on the online 159 working e-mail address. Such working e-mail address may be
131 marketplace that the seller must inform the online marketplace 160 provided to the high-volume third-party seller by the online
132 of any changes to the information provided by the seller 161 marketplace.
133 pursuant to this subsection within 3 days after receiving the 162 2. Any other information determined to be necessary to
134 notification and shall instruct each high-volume third-party 163 address circumvention or evasion of the requirements of this
135 seller, as part of the notification, to electronically certify 164 paragraph, provided that the additional information is limited
136 either that the seller’s information is unchanged or that the 165 to what is necessary to address such circumvention or evasion.
137 seller is providing changes to the information. If the online 166 (b) Subject to paragraph (c), upon the request of a high-
138 marketplace becomes aware that a high-volume third-party seller 167 volume third-party seller, an online marketplace may provide for
139 has not certified that the seller’s information is unchanged or 168 partial disclosure of the identity information required under
140 has not provided such changed information within 3 days after 169 subparagraph (a)1. in the following situations:
141 receiving such notification, the online marketplace shall 170 1. If the high-volume third-party seller demonstrates to
142 suspend the high-volume third-party seller’s participation on 171 the online marketplace that the seller does not have a business
143 the marketplace until the seller either has certified that the 172 address and only has a residential street address, the online
144 seller’s information is unchanged or has provided such changed 173 marketplace may direct the high-volume third-party seller to
145 information and the information has been verified. 174 disclose only the country and, if applicable, the state in which
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175 the high-volume third-party seller resides on the product 204 third-party seller, a reporting mechanism that allows for
176 listing, and may inform consumers that there is no business 205 electronic and telephonic reporting of suspicious marketplace
177 address available for the seller and that consumer inquiries 206 activity to the online marketplace and a message encouraging
178 should be submitted to the seller by phone or e-mail. 207 individuals seeking products for purchase to report suspicious
179 2. If the high-volume third-party seller demonstrates to 208 activity to the online marketplace.
180 the online marketplace that the seller is a business that has a 209 (e) An online marketplace that warehouses, distributes, or
181 physical address for product returns, the online marketplace may 210 otherwise fulfills a consumer product order shall disclose to
182 direct the high-volume third-party seller to disclose the 211 the consumer the identification of any high-volume third-party
183 seller’s physical address for product returns. 212 seller supplying the consumer product if different than the
184 3. If a high-volume third-party seller demonstrates to the 213 seller listed on the product listing page.
185 online marketplace that the seller does not have a phone number 214 (4) ENFORCEMENT.—A violation of this section constitutes a
186 other than a personal phone number, the online marketplace shall 215 violation of the Deceptive and Unfair Trade Practices Act under
187 inform consumers that there is no phone number available for the 216 part II of chapter 501. A person who violates this section is
188 seller and that consumer inquiries should be submitted to the 217 subject to the penalties and remedies provided therein.
189 seller’s e-mail address. 218 (5) RULES.—The Department of Legal Affairs may adopt rules
190 (c) If an online marketplace becomes aware that a high- 219 with respect to collecting and verifying information under this
191 volume third-party seller has made a false representation to the 220 section, provided that such regulations are limited to what is
192 online marketplace in order to justify the provision of a 221 necessary to collect and verify such information.
193 partial disclosure under paragraph (b) or that a high-volume 222 (6) PREEMPTION.—The regulation of the requirement for
194 third-party seller who has requested and received a provision 223 online marketplaces to verify information from high-volume
195 for a partial disclosure under paragraph (b) has not provided 224 third-party sellers on a one-time or ongoing basis or disclose
196 responsive answers within a reasonable timeframe to consumer 225 information to consumers is preempted to the department. A local
197 inquiries submitted to the seller by phone or e-mail, the online 226 governmental entity may not establish, mandate, or otherwise
198 marketplace shall withdraw its provision for partial disclosure 227 require the verification or disclosure of such information.
199 and require the full disclosure of the high-volume third-party 228 Section 2. This act shall take effect July 1, 2021.
200 seller’s identity information required under subparagraph (a)1.
201 within 3 business days to the high-volume third-party seller.
202 (d) An online marketplace shall disclose to consumers, in a
203 conspicuous manner on the product listing of any high-volume
Page 7 of 8 Page 8 of 8
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
Committee Agenda Request
To: Senator Ed Hooper, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: March 17, 2021
I respectfully request that Senate Bill #1176, relating to Barber Services, be placed on the:
committee agenda at your earliest possible convenience.
next committee agenda.
Senator Linda Stewart
Florida Senate, District 13
File signed original with committee office S-020 (03/2004)
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the eeting)
ft
Bill Number (if applicable)
Topic Amendment Barcode (if applicable)
Name
Job Title
A dress Phone
Street
Email
Zip
Waive In Support | | Against
information into the record.)
Representing
Appearing at request of Chair: Yes o Lobbyist registered with Legislature: No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or. Senate Professional Staff conducting the eeting)
Bill Number (if applicable)
Amendment Barcode (if applicable)
Topic
Name
johTitm R/j?2rC PWc q
Address 1OO Avf Phone OD .
Street ( i I I
Ema '
City State Zip
Soeakincr l For H Against Q Information Waive Speaking: ®1nSupport Q Against
p y- i i » (The Chair will read this information into the record.)
Representing
nk t ff t c ! L . __
Appearing at request of Chair: Yes Lobbyist registered with Legislature: I Yes No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
tm m is nart nf tha> n hlin record for this meetinci. S 001 (10/14/14)
The Florida Senate
APPEARANCE RECORD .
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting) I / )
BilrNumber(if appl cable)
Me< fe
Amendment Barcode (if applicable)
Topic
Name
Job Title
Address
Street
Email
City State Zip
Information Waive Speaking: | I In Support Q Against
Speaking: (The Chair will read this information into the record.)
Representing
No Lobbyist registered with Legislature: es No
Appearing at request of Chair: [ Yes
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to SP be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
nt., nori nf th n hlir. record for this meeting. 5 001
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1176
INTRODUCER: Senator Stewart
SUBJECT: Barber Services
DATE: March 26, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Oxamendi Imhof RI Favorable
2. Reeve McKay CM Favorable
3. RC
I. Summary:
SB 1176 permits a barber to shampoo, cut, or arrange hair in a location other than a registered
barbershop without arranging the barber service through a registered barbershop. Current law
requires arrangements for the performance of barber services in a location other than a registered
barbershop to be made through a registered barbershop.
The bill takes effect July 1, 2021.
II. Present Situation:
Barbering in Florida
Barbers and barbershops in Florida are regulated by ch. 476, F.S., known as the Barbers’ Act
(act), and licensed by the Barber’s Board (board) under the Department of Business and
Professional Regulation (DBPR).
The act defines barbering as any of the following practices when done for payment by the public:
shaving, cutting, trimming, coloring, shampooing, arranging, dressing, curling, or waving the
hair or beard, or applying oils, creams, lotions, or other preparations to the face, scalp, or neck,
either by hand or by mechanical appliances.1
1
Section 476.034(2), F.S. The term does not include those services when done for the treatment of disease or physical or
mental ailments.
BILL: SB 1176 Page 2
Licensing
An applicant for licensure as a barber must pass an examination. To be eligible to take the
examination, an applicant must:2
Be at least 16 years of age;
Pay the application fee;3 and
Hold an active valid license to practice barbering in another state for at least 1 year and not
qualify for licensure by endorsement,4 or have received a minimum of 900 hours of specified
training at a certain barbering school or program.
The board is authorized to establish by rule a procedure for a barber school or program to certify
that an applicant is qualified to take the examination after completing a minimum of 600 actual
school hours. If such an applicant passes the examination, the required 900 training hours is
deemed satisfied; failing the examination requires the applicant to complete the full 900 hours.5
Alternatively, a person may apply for and receive a “restricted license,” which authorizes the
licensee to practice only in areas in which they have demonstrated competency pursuant to the
rules of the board. An applicant for a restricted license must: 6
Complete a restricted barber course at a barbering school or program; or
Hold, or have held within the last 5 years, an active barber license in another state; or
Have held a Florida barber license declared null and void for failure to renew the license.7
Applicants must not have been disciplined relating to the practice of barbering in the past 5 years
and must pass a written examination on the laws and rules governing the practice of barbering in
Florida, as established by the board.8
Barbers must complete an education course by the board on HIV and AIDS as part of licensure
or biennial license renewal.9
Performance of Barber Services
A barbershop, defined as “any place of business wherein the practice of barbering is carried
on,”10 must be licensed by the DBPR in order to operate. Barbershops are inspected periodically
by the DBPR in accordance with sanitary standards set forth by the board.11
Generally, barber services may only be performed by licensed barbers in registered
barbershops.12 However, the board may establish rules allowing a licensed barber to perform
2
Section 476.114(2), F.S.
3
See Fla. Admin. Code R. 61G3-20.002.
4
See s. 476.144(5), F.S.
5
Supra note 2.
6
Section 476.144(6), F.S.
7
Section 476.154, F.S., requires each barber that continues in active practice to renew their license biennially.
8
Supra note 6.
9
Section 455.2228, F.S.
10
Section 476.034(3), F.S.
11
Section 476.184, F.S.
12
Section 476.188(1), F.S.
BILL: SB 1176 Page 3
barber services in a location other than a registered barbershop, such as a nursing home, hospital,
or residence, when a client or resident of such a facility is unable to go to a registered barbershop
due to ill health.13
Arrangements for the performance of such barber services in a location other than a registered
barbershop must be made through a registered barbershop.14 The registered barbershop must
record the name of the client and the address at which the services are to be performed in the
appointment book of the barbershop, which must remain at the barbershop and made available to
any investigator or inspector of the DBPR.15
Licensed barbers may perform barber services for a manufacturer trade show demonstration, for
an education seminar, or in connection with the motion picture, fashion photography, theatrical,
or television industries at a location other than a registered barbershop without arranging the
services through a registered barbershop.16
Cosmetology in Florida
Generally, cosmetology services must be performed by a cosmetologist or a specialist in a
licensed cosmetology salon. However, cosmetologists and specialists are permitted to perform
hair shampooing, hair cutting, hair arranging, nail polish removal, nail filing, nail buffing, and
nail cleansing in a location other than a licensed salon.17
A cosmetologist or specialist was previously prohibited from performing cosmetology services
outside a salon except in limited circumstances and was required to make arrangements through
a salon for services provided outside the salon, similar to the current requirements for barbers. In
2020, the law was changed to allow cosmetologists and specialists to perform a limited number
of cosmetology services outside of a salon and to do so without making such arrangements
through a salon.18
III. Effect of Proposed Changes:
The bill amends s. 476.188, F.S., to permit a barber to shampoo, cut, or arrange hair in a location
other than a registered barber shop without arranging the barber service through a registered
barbershop.
The bill takes effect July 1, 2021.
13
If such services are performed on employees or persons who do not reside in the facility, or any other nonqualified persons,
the location must be a licensed barbershop. See Fla. Admin. Code R. 61G3-19.010(2).
14
Section 476.188(2), F.S.
15
Fla. Admin. Code R. 61G3-19.010(1).
16
Section 476.188(3), F.S.
17
Section 477.0263, F.S.
18
Chapter 2020-160, s. 37, Laws of Fla.
BILL: SB 1176 Page 4
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 476.188 of the Florida Statutes.
BILL: SB 1176 Page 5
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2021 SB 1176
By Senator Stewart
13-00976-21 20211176__
1 A bill to be entitled
2 An act relating to barber services; amending s.
3 476.188, F.S.; authorizing a barber to shampoo, cut,
4 or arrange hair in a location other than a registered
5 barbershop without specified arrangements; providing
6 an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Subsection (2) of section 476.188, Florida
11 Statutes, is amended to read:
12 476.188 Barber services to be performed in registered
13 barbershop; exception.—
14 (2) Pursuant to rules established by the board, barber
15 services may be performed by a licensed barber in a location
16 other than a registered barbershop, including, but not limited
17 to, a nursing home, hospital, or residence, when a client for
18 reasons of ill health is unable to go to a registered
19 barbershop. Arrangements for the performance of barber services
20 in a location other than a registered barbershop shall be made
21 only through a registered barbershop. However, a barber may
22 shampoo, cut, or arrange hair in a location other than a
23 registered barbershop without such arrangements.
24 Section 2. This act shall take effect July 1, 2021.
Page 1 of 1
CODING: Words stricken are deletions; words underlined are additions.
THE FLORIDA SENATE COMMITTEES:
Governmental Oversight and Accountability, Chair
Tallahassee, Florida 32399-1100 Appropriations Subcommittee on Agriculture,
Environment, and General Government, Vice Chair
Appropriations Subcommittee on Health and
Human Services
Banking and Insurance
Finance and Tax
Judiciary
Regulated Industries
JOINT COMMITTEES:
Joint Select Committee on Collective Bargaining,
Alternating Chair
SENATOR RAY WESLEY RODRIGUES Joint Committee on Public Counsel Oversight
27th District
February 18, 2021
The Honorable Ed Hooper
Senate Commerce and Tourism, Chair
310 Knott Building
404 South Monroe Street
Tallahassee, FL 32399
RE: SB 1246 – Capital Investment Tax Credit
Dear Mr. Chair:
Please allow this letter to serve as my respectful request to place SB 1246, relating to the capital
investment tax credit, on the next committee agenda.
Your kind consideration of this request is greatly appreciated. Please feel free to contact my
office for any additional information.
Sincerely,
Ray Rodrigues
Senate District 27
Cc: Todd McKay, Staff Director
Kathryn Vigrass, Administrative Assistant
REPLY TO:
2000 Main Street, Suite 401, Fort Myers, Florida 33901 (239) 338-2570
305 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399-1100 (850) 487-5027
Senate’s Website: www.flsenate.gov
WILTON SIMPSON AARON BEAN
President of the Senate President Pro Tempore
YOU MUST PRINT AND DELIVE THIS FOR TO THE ASSIGNED TESTIMONY ROOM
The Florida S nate
3/29/21 APPEARANCE RECORD 1246
Meeting Date Bill Number (if applicable)
Topic Capital Investment Tax Credit Amendment Barcode (if applicable)
Name
Job Title v ce President, Government Relations
Address 8501 Williams Road Rhone (918) 605-6701
Street
Estero, FL 33928 Email Jim.East@hertz.com
City S e
Speaking: | I For Against Information Waive Speaking: In Support lAgainst
(The Chair will read this information into the record.)
Representing The Hertz Corporation
Appearing at request of Chair: Yes l l No Lobbyist registered with Legislature: Yes [ Ino
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form Is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1246
INTRODUCER: Senator Rodrigues
SUBJECT: Capital Investment Tax Credit
DATE: March 26, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Reeve McKay CM Favorable
2. FT
3. AP
I. Summary:
SB 1246 amends s. 220.191, F.S., to permit certain qualifying travel agency or passenger car
rental businesses to carry over 50 percent of their unused capital investment tax credits from
calendar year 2020 if the business’s gross receipts between April 1 and December 31, 2020, were
50 percent lower than its receipts from the same period in 2019.
A business may transfer its tax credits to another taxpayer, use its tax credits against amounts
payable for sales and use tax liability, or apply its unused tax credits against corporate income
tax payments for tax years beginning January 1, 2021, and ending December 31, 2025.
The Revenue Estimating Conference determined the bill will reduce General Revenue Fund
receipts by $1.7 million and reduce local government receipts by $600,000 in Fiscal Year 2021-
2022.
The bill takes effect July 1, 2021.
II. Present Situation:
Capital Investment Tax Credit
The Capital Investment Tax Credit (CITC), established by the Legislature in 1998 to attract and
grow capital-intensive industries in the state, provides an annual tax credit against corporate
income tax or insurance premium tax liabilities generated by a qualifying project.1
Eligible Projects
Section 220.191(1)(g), F.S., defines the projects that are eligible for the program. They include:
1
Chapter 98-61, Law of Fla.
BILL: SB 1246 Page 2
A new or expanded facility in a designated high-impact sector2 that creates at least 100 new
jobs. High-impact sector projects fall into one of three tiers, depending on the project’s
cumulative capital investment;
A new or expanded facility in a target industry3 that creates or retains at least 1,000 jobs,
provided that at least 100 of those jobs are new, pay an annual average wage of at least 130
percent of the average private sector wage in the area, and result in a cumulative capital
investment of at least $100 million; and
A new or expanded headquarters facility located in an enterprise zone and brownfield area
that creates at least 1,500 jobs which on average pay at least 200 percent of the statewide
average annual private sector wage and makes a cumulative capital investment in this state of
at least $250 million.
Tax Credits Allowable
Qualified businesses are generally allowed an annual tax credit equal to 5 percent of a project’s
eligible capital costs generated by a project for up to 20 years.4
The annual tax credit limit for the three tiers of high-impact sector projects may not exceed the
following percentages of the annual corporate income or insurance premium tax liability
generated by or arising out of a qualifying project:5
100 percent for a qualifying project which results in a cumulative capital investment of at
least $100 million;
75 percent for a qualifying project which results in a cumulative capital investment of at least
$50 million but less than $100 million; or
50 percent for a qualifying project which results in a cumulative capital investment of at least
$25 million but less than $50 million.
Target industry projects are eligible for an annual credit equal to one-half of the increase in the
tax liability arising out of the project without regard to the amount of eligible capital costs, but
may only receive a tax credit for 5 years.6
Headquarters facility projects may take an annual credit equal to the lesser of 5 percent of the
project’s eligible capital costs or $15 million. Tax credits for headquarters facility projects may
only be applied against corporate income tax liability.7
2
The sectors currently designated as high impact are clean energy, life sciences, financial services, information technology,
silicon technology, transportation equipment manufacturing, and corporate headquarters. See Department of Economic
Opportunity, 2020 Annual Incentives Report, 52, available at https://floridajobs.org/docs/default-source/reports-and-
legislation/2019-2020-annual-incentives-report-final.pdf?sfvrsn=af674ab0_2 (last visited Mar. 26, 2021).
3
The current qualified target industries are aviation and aerospace; corporate headquarters; clean technology; defense and
homeland security; financial and professional services; global logistics and trade; information technology; life sciences;
manufacturing; and research and development. See Department of Economic Opportunity, 2020 Annual Incentives Report,
12, available at https://floridajobs.org/docs/default-source/reports-and-legislation/2019-2020-annual-incentives-report-
final.pdf?sfvrsn=af674ab0_2 (last visited Mar. 26, 2021).
4
Section 220.191(2)(a), F.S. Eligible capital costs include all expenses incurred in the acquisition, construction, installation,
and equipping of a project from the beginning of construction to the commencement of operations.
5
Id.
6
Section 220.191(1)(g)2., F.S.
7
Section 220.191(3)(a), F.S.
BILL: SB 1246 Page 3
Tax Credit Carryover and Transfer
Only recipients of a tax credit associated with a corporate headquarters facility project or certain
high-impact sector projects are permitted to carry forward unused credit. If the full tax credit
associated with a corporate headquarters facility is not used in any one year, the taxpayer can
carry the unused credit forward to any year within the normal 20-year window.8 A high-impact
sector business that meets the $100 million capital investment threshold that was unable to fully
use its available credit between years 1 and 20 is permitted to use that credit in years 21 through
30 following the commencement of operations.9
Generally, tax credits may not be transferred or sold to other businesses. However, if a qualifying
project establishes a new solar panel manufacturing facility that generates at least 400 jobs
within 6 months of commencing operations and pays those jobs at least $50,000, it may transfer
its annual tax credit to another business. A business receiving the transferred credits may only
use the credits in the year received.10
Issuance of Tax Credits
The Department of Economic Opportunity (DEO) must certify a business as eligible to receive a
tax credit before the commencement of operations of a qualifying project. If a business is
certified, the DEO will enter into an agreement with the business that specifies the planned
commencement date of operations and the total amount of credit the business can expect if the
project proceeds as planned. Agreements are drafted so that a qualified business’s annual credit
amount begins on the date of commencement of operations, beginning the 20-year credit period.
If for some reason operations do not commence on time, the 20-year window is not adjusted.11
Before receiving a tax credit each year, a qualifying business must achieve and maintain its
minimum employment goals beginning with the commencement of operations of a qualifying
project.12
Economic Impact
According to the DEO, there were 61 active CITC awardees with 32 reporting performance as of
Fiscal Year 2019-2020; the DEO confirmed 2,887 jobs created and over $308 million in capital
investment in said fiscal year.13 Over $67 million in tax credits were approved to be claimed by
qualified business in calendar year 2019.14
8
Section 220.191(3)(b), F.S.
9
Section 220.191(2)(d), F.S.
10
Section 220.191(2)(c), F.S.
11
Florida Senate Committee on Finance and Tax, Issue Brief 2012-2014: Review of the Capital Investment Tax Credit
(September 2011), available at https://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-204ft.pdf (last
visited Mar. 26, 2021).
12
Section 220.191(4), F.S.
13
Department of Economic Opportunity, 2020 Annual Incentives Report, 8, available at https://floridajobs.org/docs/default-
source/reports-and-legislation/2019-2020-annual-incentives-report-final.pdf?sfvrsn=af674ab0_2 (last visited Mar. 26, 2021).
14
Id at 49.
BILL: SB 1246 Page 4
III. Effect of Proposed Changes:
The bill permits businesses that operate within the standard industrial classification codes of
4724, travel agencies, or 7514, passenger car rentals, to carry over unused capital investment tax
credits generated from the 2020 calendar year. A business may use up to 50 percent of its unused
tax credits in the tax year beginning January 1, 2021, if its gross total receipts between April 1
and December 31, 2020, were 50 percent lower than its receipts from the same period in 2019.
A business may either:
Transfer its unused tax credits to another taxpayer subject to corporate income taxes;
Use its unused tax credits against amounts payable to the Department of Revenue, either as
consumer or dealer, for sales and use tax liability; or
Apply its unused tax credits against corporate income tax payments for tax years beginning
January 1, 2021, and ending December 31, 2025.
The bill takes effect July 1, 2021.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, s. 18 of the Florida Constitution governs laws that require counties and
municipalities to spend funds, limit the ability of counties and municipalities to raise
revenue, or reduce the percentage of state tax shared with counties and municipalities.
Subsection (b) of s. 18, Art. VII of the Florida Constitution provides that except upon
approval of each house of the Legislature by two-thirds vote of the membership, the
legislature may not enact, amend, or repeal any general law if the anticipated effect of
doing so would be to reduce the authority that municipalities or counties have to raise
revenue in the aggregate, as such authority existed on February 1, 1989. However, the
mandates requirements do not apply to laws having an insignificant impact,15, 16 which is
$2.2 million or less for Fiscal Year 2021-2022.17
The Revenue Estimating Conference determined that the bill will reduce local
government receipts by $600,000 in Fiscal Year 2021-2022 only.18 Therefore, the
mandate provisions of Art. VII, s. 18 of the State Constitution do not apply.
15
FLA. CONST. art. VII, s. 18(d).
16
An insignificant fiscal impact is the amount not greater than the average statewide population for the applicable fiscal year
multiplied by $0.10. See Florida Senate Committee on Community Affairs, Interim Report 2012-115: Insignificant Impact,
(September 2011), available at http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf (last
visited Mar. 26, 2021).
17
Based on the Demographic Estimating Conference’s population adopted on November 13, 2020. The conference packet is
available at http://edr.state.fl.us/Content/conferences/population/ConferenceResults.pdf (last visited Mar. 26, 2021).
18
Office of Economic and Demographic Research, Revenue Estimating Conference Report: SB 1246 (2021), 203-204,
available at http://edr.state.fl.us/Content/conferences/revenueimpact/archives/2021/_pdf/Impact0319.pdf (last visited Mar.
26, 2021).
BILL: SB 1246 Page 5
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference determined that the bill will reduce General
Revenue Fund receipts by $1.7 million and reduce local government receipts by $600,000
in Fiscal Year 2021-2022 only.19
B. Private Sector Impact:
None.
C. Government Sector Impact:
The Department of Revenue estimates that it will require $93,990 in nonrecurring funds
to modify its software and databases in order to implement the bill.
VI. Technical Deficiencies:
None.
VII. Related Issues:
Lines 28-30 allow a qualifying business to apply its unused tax credits against corporate income
tax payments for tax years beginning January 1, 2021, and ending December 31, 2025. It is
unclear if taxpayers can only use their carried-forward credits in any one tax year between
January 1, 2021, and December 31, 2025, or if they may use the credits during multiple tax years
within that period.
19
Id.
BILL: SB 1246 Page 6
It is unclear if the carryover provisions created by the bill apply only to taxpayers who file taxes
based on the calendar year, or if taxpayers who file taxes in tax years beginning or ending within
the 2020 calendar year.
Lines 23-24 permit a business to transfer its unused tax credits to another taxpayer subject to
corporate income tax, but the bill does not specify a period of time during which the recipient of
a transferred tax credit must use the credit.
The Department of Revenue requests emergency rulemaking authority in order to establish rules
on how a taxpayer would document a credit transfer or carryover.
VIII. Statutes Affected:
This bill substantially amends section 220.191 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2021 SB 1246 Florida Senate - 2021 SB 1246
By Senator Rodrigues
27-01848-21 20211246__ 27-01848-21 20211246__
1 A bill to be entitled 30 ending December 31, 2025.
2 An act relating to capital investment tax credit; 31 Section 2. This act shall take effect July 1, 2021.
3 amending s. 220.191, F.S.; authorizing passenger car
4 rental companies and travel agencies that meet certain
5 criteria in a specified year to use unused tax credits
6 for certain purposes; providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Subsection (9) is added to section 220.191,
11 Florida Statutes, to read:
12 220.191 Capital investment tax credit.—
13 (9) In addition to any methods authorized to carry forward
14 unused tax credits in this section and for the 2020 calendar
15 year only, any qualifying business that operated a company
16 within the standard industrial classification codes of 4724 or
17 7514 which ended the year with unused tax credits as otherwise
18 authorized under this section, and whose total gross receipts
19 between April 1, 2020, and December 31, 2020, were 50 percent
20 less when compared to the same period in 2019, may use up to 50
21 percent of the unused tax credits in the tax year beginning
22 January 1, 2021, by:
23 (a) Transferring its unused tax credits to another taxpayer
24 subject to the tax imposed under this chapter;
25 (b) Using its unused tax credits against amounts payable to
26 the department, either as consumer or dealer, for sales or use
27 taxes imposed under chapter 212; or
28 (c) Applying its unused tax credits against corporate
29 income tax payments for tax years beginning January 1, 2021, and
Page 1 of 2 Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
THE FLORIDA SENATE COMMITTEES:
Governmental Oversight and Accountability, Chair
Tallahassee, Florida 32399-1100 Appropriations Subcommittee on Agriculture,
Environment, and General Government, Vice Chair
Appropriations Subcommittee on Health and
Human Services
Banking and Insurance
Finance and Tax
Judiciary
Regulated Industries
JOINT COMMITTEES:
Joint Select Committee on Collective Bargaining,
Alternating Chair
SENATOR RAY WESLEY RODRIGUES Joint Committee on Public Counsel Oversight
27th District
March 9, 2021
The Honorable Ed Hooper
Senate Commerce and Tourism, Chair
310 Knott Building
404 South Monroe Street
Tallahassee, FL 32399
RE: SB 1882 – Issuance of Licenses to Carry Concealed Weapons or Firearms
Dear Mr. Chair:
Please allow this letter to serve as my respectful request to place SB 1882, relating to the
issuance of licenses to carry concealed weapons or firearms, on the next committee agenda.
Your kind consideration of this request is greatly appreciated. Please feel free to contact my
office for any additional information.
Sincerely,
Ray Rodrigues
Senate District 27
Cc: Todd McKay, Staff Director
Kathryn Vigrass, Administrative Assistant
REPLY TO:
2000 Main Street, Suite 401, Fort Myers, Florida 33901 (239) 338-2570
305 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399-1100 (850) 487-5027
Senate’s Website: www.flsenate.gov
WILTON SIMPSON AARON BEAN
President of the Senate President Pro Tempore
The Florida Senate
i«<-o -fke
chair.
Bill Number (if applicable)
Amendment Barcode (if applicable)
City
Email
Zip
record.)
io
Wh/iP 7 ¦ C LObbyiSt re9istered with Legislature: n Yes
No
record for this meeting. can be h ard.
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1882
INTRODUCER: Senator Rodrigues
SUBJECT: Issuance of Licenses to Carry Concealed Weapons or Firearms
DATE: March 26, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Harmsen McKay CM Pre-meeting
2. GO
3. AP
I. Summary:
SB 1882 requires the Department of Agriculture and Consumer Services (Department) to
continually maintain an online application process to facilitate the issuance of concealed weapon
or firearm licenses pursuant to s. 790.06, F.S. Additionally, the bill provides that the Department
cannot “arbitrarily or subjectively” restrict access to its online application process.
The bill provides that the court presiding over a civil action to enforce any provision of s. 790.06,
F.S., must award attorney fees and costs, in addition to any other relief, to the prevailing
plaintiff.
The bill takes effect July 1, 2021.
II. Present Situation:
The U.S. Constitution protects the right to bear arms, stating “the right of the people to keep and
bear Arms shall not be infringed.”1 The Florida Constitution more specifically guarantees the
right of the people to keep and bear arms in self-defense.2 Generally, Florida law authorizes a
person to own, possess, and lawfully use firearms and other weapons3 without a license, if the
person is not statutorily prohibited and such ownership, possession, or use occurs in a lawful
manner and location.4
1
U.S. CONST. amend. II.
2
FLA. CONST. art. 1, s. 8.
3
A weapon is a knife, metallic knuckles, slugshot, billie club, tear gas gun, chemical weapon or device, or other deadly
weapon except a firearm or a common pocketknife, plastic knife, or blunt bladed table knife. Section 790.001(13), F.S.
4
Section 790.25, F.S.
BILL: SB 1882 Page 2
The Division of Licensing (Division) within the Department of Agriculture and Consumer
Services (Department) issues concealed weapon or firearm licenses pursuant to s. 790.06, F.S.5
In fiscal year 2020, the Department received 231,350 applications for new concealed weapon or
firearm licenses and issued 186,446.6 The Division works in conjunction with local tax
collector’s offices to accept concealed weapon or firearm license applications or renewals for
processing.7
Application Process
An applicant for a concealed weapon or firearm license may apply through the Department’s
website, by mail to the Department, or by physical submission to either one of the Department’s
regional offices or an approved tax collector’s office.8 The applicant must submit an application,
a license fee, a color photograph of him or herself, proof of training or other certificate of
proficiency with a firearm, and a full set of his or her fingerprints (for original applicants only;
in-state-renewals do not require fingerprint submission).9
An applicant can have his or her fingerprints taken at one of the Department’s regional offices,
an approved tax collector’s office, or a local sheriff’s office or police department.10 An applicant
may submit fingerprints via an online application, if his or her fingerprints were taken in an
electronic format. According to the Department, all of its regional offices, most sheriff’s offices,
and some local police departments offer electronic fingerprint scanning, but local tax collectors
are not currently offering the electronic service. Applicants who reside outside of Florida or who
are not able to obtain electronic fingerprint services, may submit an original fingerprint card via
mail delivery to the Department.11
Upon receipt of an application, the Department must issue a license to carry a concealed weapon
or firearm if the applicant:12
Is a resident of the United States and a citizen of the United States or a permanent resident
alien of the United States, as determined by the United States Bureau of Citizenship and
Immigration Services, or is a consular security official of a foreign government that
maintains diplomatic relations and treaties of commerce, friendship, and navigation with the
United States and is certified as such by the foreign government and by the appropriate
embassy in this country;
5
See generally, Dep’t. of Ag. and Consumer Servs., Applying for a Concealed Weapon License,
https://www.fdacs.gov/Consumer-Resources/Concealed-Weapon-License/Applying-for-a-Concealed-Weapon-
License#bymail (last visited Mar. 26, 2021).
6
Dep’t. of Ag. and Consumer Servs., Concealed Weapon or Firearm License Reports: Applications and Dispositions by
County- July 1, 2020 through June 30, 2021,
https://www.fdacs.gov/content/download/92523/file/07012020_06302021_cw_annual.pdf (last visited Mar. 26, 2021).
7
Section 790.0625, F.S., permits the Department to enter into agreements with local tax collector offices to accept
applications. Section 790.06, F.S., governs the Department’s role in accepting and processing applications.
8
Florida Department of Agriculture and Consumer Services, Applying for a Concealed Weapon License: Ways to Apply,
https://www.fdacs.gov/Consumer-Resources/Concealed-Weapon-License/Applying-for-a-Concealed-Weapon-License (last
visited Mar. 26, 2021).
9
Section 790.06(5), F.S.
10
Section 790.06(5)(c), F.S.
11
Dep’t. of Ag. and Consumer Servs., Online Concealed Weapon or Firearm License Application Fingerprint Submission
Instructions, https://laso.freshfromflorida.com/documentTemplates/LASO_FP_Instructions.pdf (last visited Mar. 26, 2021).
12
Section 790.06(2), F.S.
BILL: SB 1882 Page 3
Is 21 years of age or older;
Does not suffer from a physical infirmity which prevents the safe handling of a weapon or
firearm;
Is not ineligible to possess a firearm by virtue of having been convicted of a felony;
Has not been committed for the abuse of a controlled substance or been found guilty of a
crime relating to controlled substances within a 3-year period immediately preceding the date
on which the application is submitted;
Does not chronically and habitually use alcoholic beverages or other substances to the extent
that his or her normal faculties are impaired;
Desires a legal means to carry a concealed weapon or firearm for lawful self-defense;
Demonstrates competence with a firearm;13
Has not been adjudicated an incapacitated person in a guardianship proceeding, unless he or
she has been granted relief from firearms disabilities by a court or pursuant to state law;
Has not been committed to a mental institution, unless he or she has been granted relief from
firearms disabilities by a court or pursuant to state law;
Has not had adjudication of guilt withheld or imposition of sentence suspended on any
felony, or any misdemeanor crime of domestic violence, unless 3 years have elapsed since
probation or any other conditions set by the court have been fulfilled, or expunction has
occurred;
Has not been issued an injunction that is currently in force and effect and that restrains the
applicant from committing acts of domestic violence or acts of repeat violence; and
Is not prohibited from purchasing or possessing a firearm by any other provision of Florida
or federal law.
Cessation of Application Service
On March 20, 2020, the Department closed its regional and state offices to public access due to
public health concerns relating to COVID-19.14 The Department’s regional office closures
continued through June 2020.15 These office closures precluded the fingerprinting of applicants
and submission of applications at the Department’s regional offices.
The Department also began delaying the acceptance of online and in-person initial concealed
weapon or firearm license applications on March 20, 2020.16 The Department states that it closed
its online application process “to prevent frustration from applicants submitting online
applications but unable to obtain fingerprints [from one of the three sources permitted under s.
13
See s. 790.06(2)(h), F.S., for the list of courses and other means of demonstrating competency, and for the required
documentation that one must present to the state relative to this provision.
14
Dep’t. of Ag. and Consumer Servs., Acceptance of New Concealed Weapons License Applications Delayed During
COVID-19 (Mar. 20, 2020), https://www.fdacs.gov/News-Events/Press-Releases/2020-Press-Releases/Acceptance-of-New-
Concealed-Weapons-License-Applications-Delayed-During-COVID-19 (last visited Mar. 26, 2021).
15
Dep’t. of Ag. and Consumer Servs., Commissioner Nikki Fried Announces Reopening of Tallahassee Regional Office,
Return of Online Concealed Weapons Licensing (Jun. 11, 2020), https://www.fdacs.gov/News-Events/Press-Releases/2020-
Press-Releases/Commissioner-Nikki-Fried-Announces-Reopening-of-Tallahassee-Regional-Office-Return-of-Online-
Concealed-Weapons-Licensing (last visited Mar. 26, 2021).
16
Id. at 10, supra.
BILL: SB 1882 Page 4
790.06(5), F.S.] and who would otherwise be denied.”17 The Department further stated that it
would continue to accept online and mailed renewal applications for concealed weapon or
firearm licenses.18 During the shutdown of its online application portal, the Department
displayed a message on its portal that it would accept mailed applications for a concealed
weapon or firearm license.19 The Department re-opened the online application portal on June 15,
2020.20
The Department’s closure of its online application system resulted in a lawsuit to enjoin the
Department to resume its acceptance of online applications for concealed weapon or firearm
licenses.21 The Department succeeded in having the case dismissed on September 28, 2020, but
the case appears to be ongoing pursuant to a request by the plaintiff to file an amended
pleading.22 However, the amended pleading was due by October 9, 2020, and no filings have
been made in the case since October 1, 2020.23
III. Effect of Proposed Changes:
The bill requires the Department to continually maintain an online application process to
facilitate the issuance of concealed weapon or firearm licenses pursuant to s. 790.06, F.S. The
bill further provides that the Department cannot “arbitrarily or subjectively” restrict access to its
online application process.
Additionally, the bill allows a civil action to enforce the subsection, and requires the court to
award the prevailing party reasonable attorney fees and costs upon a finding of a violation by the
Department.
The bill takes effect July 1, 2021.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
17
Dep’t. of Ag. and Consumer Servs., Letter from Commissioner Nikki Fried to Attorney General Moody on Concealed
Weapon Licenses (Apr. 23, 2020), https://www.fdacs.gov/News-Events/Press-Releases/2020-Press-Releases/Letter-from-
Commissioner-Nikki-Fried-to-Attorney-General-Moody-on-Concealed-Weapons-Licenses (last visited Mar. 26, 2021).
18
Id. at 10, supra.
19
Cliff C. Maloney and Young Americans for Liberty, Inc. v. Fl. Dep’t. of Ag. And Consumer Servs., Verified Complaint for
Declaratory and Injunctive Relief p 5, Case 2020-CA-888 (Fla. 2d Cir. Ct. 2020)..
20
Cliff C. Maloney and Young Americans for Liberty, Inc. v. Fl. Dep’t. of Ag. And Consumer Servs., Order Granting
Defendant’s Motion to Dismiss (Sept. 8, 2020) Case 2020-CA-888 (Fla. 2d Cir. Ct. 2020).
21
See generally, News Service of Florida, TAMPA BAY TIMES, After Shutdown Delays Some Florida Concealed Weapon
Permits, Lawsuit Charges Rights Were Violated (May 11, 2020), https://www.tampabay.com/news/health/2020/05/11/after-
shutdown-delays-some-florida-concealed-weapon-permits-lawsuit-charges-rights-were-violated/ (last visited Mar. 26, 2021);
Cliff C. Maloney and Young Americans for Liberty, Inc. v. Fl. Dep’t. of Ag. And Consumer Servs., Case 2020-CA-888 (Fla.
2d Cir. Ct. 2020).
22
Cliff C. Maloney and Young Americans for Liberty, Inc. v. Fl. Dep’t. of Ag. And Consumer Servs., Agreed Order on
Plaintiffs’ Motion for Extension of Time (Oct. 1, 2020) Case 2020-CA-888 (Fla. 2d Cir. Ct. 2020).
23
Id.
BILL: SB 1882 Page 5
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Individuals who prevail in a civil court case against the Department pursuant to
allegations made under s. 790.06, F.S., will be awarded attorney fees and costs in
addition to any other relief.
C. Government Sector Impact:
The Department may be subject to litigation regarding any shutdown of its online
application portal for concealed weapon or firearm licenses.
VI. Technical Deficiencies:
None.
VII. Related Issues:
The bill subjects the Department to liability for system failures beyond its control (e.g., power
outages, system hack, or routine maintenance).
VIII. Statutes Affected:
This bill substantially section 790.06 of the Florida Statutes
BILL: SB 1882 Page 6
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2021 SB 1882 Florida Senate - 2021 SB 1882
By Senator Rodrigues
27-01690-21 20211882__ 27-01690-21 20211882__
1 A bill to be entitled 30 continually maintain an online application process for the
2 An act relating to issuance of licenses to carry 31 issuance of licenses provided for in this section and may not
3 concealed weapons or firearms; amending s. 790.06, 32 arbitrarily or subjectively restrict access to the online
4 F.S.; requiring the Department of Agriculture and 33 application process. The Legislature does not delegate to the
5 Consumer Services to continually maintain an online 34 Department of Agriculture and Consumer Services the authority to
6 application process for the issuance of licenses; 35 regulate or restrict the issuing of licenses provided for in
7 prohibiting the department from arbitrarily or 36 this section, beyond those provisions contained in this section.
8 subjectively restricting access to the online 37 Subjective or arbitrary actions or rules which encumber the
9 application process; providing for an award of 38 issuing process by placing burdens on the applicant beyond those
10 reasonable costs and attorney fees in successful 39 sworn statements and specified documents detailed in this
11 actions against the department to enforce specified 40 section or which create restrictions beyond those specified in
12 provisions; providing an effective date. 41 this section are in conflict with the intent of this section and
13 42 are prohibited.
14 Be It Enacted by the Legislature of the State of Florida: 43 (c) In a civil action to enforce any provision of this
15 44 subsection, upon a finding of a violation by the Department of
16 Section 1. Subsection (15) of section 790.06, Florida 45 Agriculture and Consumer Services, the court shall award the
17 Statutes, is amended to read: 46 prevailing party reasonable attorney fees and costs in addition
18 790.06 License to carry concealed weapon or firearm.— 47 to any other relief.
19 (15)(a) The Legislature finds as a matter of public policy 48 (d) This section shall be liberally construed to carry out
20 and fact that it is necessary to provide statewide uniform 49 the constitutional right to bear arms for self-defense. This
21 standards for issuing licenses to carry concealed weapons and 50 section is supplemental and additional to existing rights to
22 firearms for self-defense and finds it necessary to occupy the 51 bear arms, and nothing in this section shall impair or diminish
23 field of regulation of the bearing of concealed weapons or 52 such rights.
24 firearms for self-defense to ensure that no honest, law-abiding 53 Section 2. This act shall take effect July 1, 2021.
25 person who qualifies under the provisions of this section is
26 subjectively or arbitrarily denied his or her rights.
27 (b) The Department of Agriculture and Consumer Services
28 shall implement and administer the provisions of this section.
29 The Department of Agriculture and Consumer Services must
Page 1 of 2 Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
Committee Agenda Request
To: Senator Ed Hooper, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: March 5, 2021
I respectfully request that Senate Bill 1906, relating to Reemployment Assistance, be placed on
the:
committee agenda at your earliest possible convenience.
next committee agenda.
Senator Jason Brodeur
Florida Senate, District 9
File signed original with committee office S-009 (01/2021)
The Florida Senate
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3/t4 fi9
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; /2_ E ail
City State Z/p
Speaking: j For | | Against | | Information Waive Speaking: Qin Support | I A ainst
(The Chair will read this information into the record.)
Representing Zl Z C I
Appearing at request of Chair: Yes | | No Lobbyist registered with Legislature: [S I Yes | | No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
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While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
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This form Is oa t of the nubile record for this meetina. ci-nm
j< s wo+
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e
Thia fnrm l nart r tha ntihli/ rfiMffl fnr thi maotinn e nni ii am
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loio
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IW/e it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
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meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
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meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SB 1906
INTRODUCER: Commerce and Tourism Committee and Senator Brodeur and others
SUBJECT: Reemployment Assistance
DATE: March 30, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. McKay McKay CM Fav/CS
2. ATD
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
SB 1906 changes the state’s reemployment assistance weekly benefit amount from a range of
$32 to $275 per week to $100 to $375 per week.
The bill removes the requirement that a claimant must include the telephone number of each
prospective employer contacted for each week of unemployment claimed, clarifies that “address”
means a website address, a physical address, or an e-mail address for purposes of reporting the
address of each prospective employer contacted, and reduces the number of prospective
employers that reemployment assistance claimants must contact each week from five to three.
The Revenue Estimating Conference has not yet estimated the impact of the bill.
The bill takes effect July 1, 2021.
II. Present Situation:
Unemployment Compensation Overview
According to the U.S. Department of Labor (USDOL), the Federal-State Unemployment
Insurance Program provides unemployment benefits to eligible workers who are unemployed
through no-fault of their own (as determined under state law) and who meet the requirements of
BILL: CS/SB 1906 Page 2
state law.1 The program is administered as a partnership of the federal government and the
states.2 The individual states collect unemployment compensation (UC) payroll taxes on a
quarterly basis, which are used to pay benefits, while the Internal Revenue Service collects an
annual federal payroll tax under the Federal Unemployment Tax Act (FUTA).3 FUTA
collections go to the states for costs of administering state UC and job service programs. In
addition, FUTA pays one-half of the cost of extended unemployment benefits (during periods of
high unemployment) and provides for a fund from which states may borrow, if necessary, to pay
benefits.4
States are permitted to set benefit eligibility requirements, the amount and duration of benefits,
and the state tax structure, as long as state law does not conflict with FUTA or Social Security
Act requirements. Florida’s UC program was created by the Legislature in 1937.5 The
Department of Economic Opportunity (DEO) is the current agency responsible for administering
Florida’s UC laws, primarily through its Division of Workforce Services. DEO contracts with
the Florida Department of Revenue (DOR) to provide unemployment tax collections services.6
State Reemployment Assistance Benefits
In Florida, which rebranded the unemployment compensation program as the reemployment
assistance (RA) program in 2012,7 a qualified claimant may receive RA benefits equal to 25
percent of wages, not to exceed $6,325 in a benefit year.8 Benefits range from a minimum of $32
per week to a maximum weekly benefit amount9 of $275, for a minimum of 12 weeks and
maximum of 23 weeks,10 depending on the claimant’s length of prior employment and wages
earned, and the unemployment rate.11
1
USDOL, State Unemployment Insurance Benefits, available at: https://oui.doleta.gov/unemploy/uifactsheet.asp (last visited
Mar. 30, 2021).
2
There are 53 programs, including the 50 states, Puerto Rico, the Virgin Islands, and the District of Columbia. USDOL,
Unemployment Compensation, Federal – State Partnership, available at: https://oui.doleta.gov/unemploy/pdf/partnership.pdf
(last visited Mar. 30, 2021).
3
FUTA is codified at 26 U.S.C. § 3301-3309.
4
USDOL, Unemployment Insurance Tax Topic, available at:
https://oui.doleta.gov/unemploy/uitaxtopic.asp#:~:text=FUTA%20taxes%20are%20calculated%20by,times%20the%20emplo
yer's%20taxable%20wages.&text=Employers%20who%20pay%20their%20state,tax%20paid%20to%20the%20state (last
visited Mar. 30, 2021).
5
Chapter 18402, Laws of Fla.
6
Section 443.1316, F.S.
7
Ch. 2012-30, Laws of Fla.
8
Section 443.111(5), F.S. The maximum amount of benefits available is calculated by multiplying an individual’s weekly
benefit amount by the number of available benefit weeks.
9
Pursuant to s. 443.111(3), F.S., the “weekly benefit amount,” is an amount equal to one twenty-sixth of the total wages for
insured work paid during the quarter of the base period where the wages paid were highest.
10
Section 443.111(5)(c), F.S. If the average unemployment rate for the 3 months in the most recent third calendar year
quarter is at or below 5 percent, then the maximum weeks of benefits available is 12; for each 0.5 percent that the
unemployment rate is above 5 percent, an additional week of benefits becomes available up to 23 weeks at an unemployment
rate of 10.5 percent. On January 1, 2021, the maximum weeks of benefits increased from 12 weeks to 19 weeks based on the
three month average of July, August, and September of 2020, which was 8.7 percent.
11
The average weekly benefit amount for the first two quarters of 2020 was approximately $252; the average weekly benefit
amount for the third two quarter of 2020 was approximately $236. USDOL data from report generated at UI Replacement
Rates Report, available at: https://oui.doleta.gov/unemploy/ui_replacement_rates.asp (last visited Mar. 30, 2021).
BILL: CS/SB 1906 Page 3
To receive RA benefits, a claimant must meet certain monetary and non-monetary eligibility
requirements. Key eligibility requirements involve a claimant’s earnings during a certain period
of time,12 the manner in which the claimant became unemployed,13 and the claimant’s efforts to
find new employment.14
Able and Available for Work
A claimant must meet certain requirements in order to be eligible for benefits for each week of
unemployment. These include a finding by DEO that the individual:15
Has filed a claim for benefits;
Is registered to work and reports to the One-Stop Career Center;
Is reporting required information to the DEO;
Is able to and available for work;16
Contacts at least 5 prospective employers each week or reports to the One-Stop Career
Center for reemployment services;
Participates in reemployment services;
Has been unemployed for a waiting period of 1 week;
Has been paid total base period wages equal to the high quarter wages multiplied by 1.5, but
at least $3,400 in the base period; and
Has submitted a valid social security number to the DEO.
Rule 73B-11.021(2), F.A.C., provides that in order to be eligible for benefits an individual must
be able to work and available for work during the major portion of the individual’s customary
work week. Consequently, individuals whose benefits are not based on full-time work are not
required to seek or be available to accept full-time work.
An individual must make a thorough and continued effort to obtain work and take positive
actions to become reemployed. To aid unemployed individuals, free reemployment services and
assistance are available.17
DEO’s website provides links to local, state, and national employment databases. Claimants are
automatically registered with their local One-Stop Career Center when their claims are filed and
are required to report to the One-Stop Career Center as directed by the regional workforce board
12
Section 443.091(g), F.S., requires an individual to have been paid wages for insured work equal to 1.5 times their high
quarter wages during their “base period,” except that an individual is not eligible to receive benefits if the base period wages
are less than $3,400. Section 443.036, F.S. defines “base period” as the first four of the last five completed calendar quarters
immediately preceding the first day of an individual’s benefit year.
13
See s. 443.101, F.S.
14
Section 443.091(d), F.S., requires RA claimant’s to contact at least five prospective employers for each week of
unemployment claimed.
15
Section 443.091(1), F.S.
16
“Able to work” means physically and mentally capable of performing the duties of the occupation in which work is being
sought. “Available for work” means actively seeking and being ready and willing to accept suitable work. See s. 443.036(1)
and (6), F.S.
17
Rule 73B-3.011(12), F.A.C. “Reemployment services” is defined as job search assistance, job and vocational training
referrals, employment counseling and testing, labor market information, employability skills enhancement, needs assessment,
orientation, and other related services provided by One-Stop Career Centers operated by local regional workforce boards
BILL: CS/SB 1906 Page 4
for reemployment services.18 The One-Stops provide job search counseling and workshops,
occupational and labor market information, referral to potential employers, and job training
assistance. Claimants may also receive an e-mail from the Employ Florida Marketplace with
information about employment services or available jobs.19 Additionally, a claimant may be
selected to participate in reemployment assistance services, such as the Reemployment Services
and Eligibility Assessment (RESEA) program, designed to address the reemployment needs of
RA claimants.20
Disqualification for Unemployment Compensation
Section 443.101, F.S., specifies the circumstances under which an individual would be
disqualified from receiving RA benefits, to include:
Voluntarily leaving work without good cause, or being discharged by his or her employing
unit for misconduct connected with the work;21
Failing to apply for available suitable work when directed by the DEO or the One-Stop
Career Center, to accept suitable work when offered, or to return to suitable self-employment
when directed to do so;22
Receiving certain types of remuneration;
Becoming unemployed due to an active labor dispute;
Receiving unemployment or reemployment assistance from other government sources, with
exceptions;
Making false or fraudulent representations in filing for benefits;
Unlawful presence in the U.S.;
Receiving specified pension benefits;
Termination from employment for a crime punishable by imprisonment, or any dishonest act
in connection with his or her work;
Being a certain type of leased employee;
Being discharged from employment due to drug use or rejection from a job offer for failing a
drug test;
Becoming unavailable for work due to incarceration or imprisonment; and
Being discharged for failure without cause to maintain required licenses or registrations.
The statute specifies the duration of the disqualification and the requirements for requalification
for an individual’s next benefit claim, depending on the reason for the disqualification.
18
Section 443.091(1)(b), F.S.
19
Employ Florida Marketplace is a partnership of Workforce Florida, Inc., and the DEO. It provides job-matching and
workforce resources. See https://www.employflorida.com.
20
RESEA services may include an orientation, initial assessment, labor market information, employability development plan,
and work search services. See https://floridajobs.org/office-directory/division-of-workforce-services/workforce-
programs/reemployment-services-and-eligibility-assessment-program (last visited Mar. 30, 2021). Rule 73B-3.028, F.A.C.,
provides more information on reemployment services and requirements for participation.
21
An individual is not disqualified for voluntarily leaving temporary work to return to full time work, or to relocate with his
or her military spouse due to relocation orders, or due to circumstances related to domestic violence.
22
Section 443.101(2), F.S., sets forth the requirements to determine “suitable work.”
BILL: CS/SB 1906 Page 5
Financing Unemployment Compensation
State Unemployment Compensation Contributions
Florida sets its own taxable wage base and rate. The funds collected are paid into the UC Trust
Fund, which is maintained at the U.S. Treasury.23 The trust fund is primarily financed through
the contributory method—by employers who pay taxes on employee wages.24 Employers’ state
UC taxes are used solely to pay RA benefits to unemployed Floridians.
Currently, an employer pays taxes on the first $7,000 of an employee’s wages.25 An employer’s
initial state tax rate is 2.7 percent.26 After an employer is subject to benefit charges for 8-calendar
quarters, the standard tax rate is 5.4 percent, but may be adjusted down to a low of 0.1 percent.27
The adjustment in the tax rate is determined by calculating several factors, including benefit
charges associated with the employer, socialized costs,28 and the balance of the UC Trust Fund.
Employer contributions are due in the month following the end of the quarter (April 30, July 31,
October 31, and January 31). Most employers will have paid the $7,000 wage base to their
employees in the first or second quarter of the year, making their total UC payments due early in
the year.
State Unemployment Compensation Contribution – Trust Fund Triggers
Florida’s tax calculation method, especially due to the benefit ratio, is closer to a “pay as you go”
approach, in which taxes increase rapidly after a surge in benefit costs. Economic conditions
resulting in abnormally high unemployment accompanied by high benefit charges can cause a
severe drain on the UC Trust Fund. The effect triggers the positive fund balance adjustment
factor, which consequently increases tax rates for all employers. Conversely, when
unemployment is low, the negative fund balance adjustment factor triggers, and tax rates for
employers are reduced accordingly.29
23
Section 443.191, F.S.
24
Nonprofit employers may choose to finance compensation through either the contributory method or the reimbursement
method. A reimbursing employer is one who must pay the Unemployment Compensation Trust Fund on a dollar-for-dollar
basis for the benefits paid to its former employees. The employer is otherwise not required to make payments to the trust
fund. See s. 443.1312, F.S. The state and local governments are reimbursing employers. Most employers are contributory
employers.
25
Section 443.1217(2), F.S.
26
Section 443.131(2)(a), F.S.
27
Section 443.131(2)(b) and (3)(d), F.S.
28
Socialized costs include the noncharge ratio (benefits not attributable to any employer over the last 3 years, also called
“overpayments”), the excess payments ratio (that portion of benefit charges which exceed the maximum rate of 5.4 percent),
and the fund size factor (requires the trust fund maintain a certain balance, discussed below as “triggers”). See also DOR,
Reemployment Tax rate Information: How Rates are Calculated, available at:
https://floridarevenue.com/taxes/taxesfees/Pages/rt_rate.aspx (last visited Mar. 30, 2021).
29
If the balance of the UC Trust Fund is below 4 percent of the taxable payrolls for the year immediately preceding the
calendar year for which the contribution rate is being computed, then a positive adjustment factor is computed. The positive
adjustment factor remains in effect for subsequent years until the balance of the UC Trust Fund equals or exceeds 4 percent
of the taxable payrolls. However, if the balance of the UC Trust Fund is above 5 percent of the taxable payrolls for the year
immediately preceding the calendar year for which the contribution rate is being computed, then a negative adjustment factor
must be computed. The negative adjustment factor remains in effect for subsequent years until the balance of the UC Trust
Fund exceeds 4 percent but is less than 5 percent of the taxable payrolls of that year. See s. 443.131(3)(e), F.S.
BILL: CS/SB 1906 Page 6
The basis for the adjustment factors is the level of the trust fund on September 30 of each
calendar year compared to the taxable payrolls for the previous year. Each adjustment factor
remains in effect until the balance of the trust fund rises above or falls below the respective
trigger percentage.30
Other States
The maximum weekly benefit amount (WBA) and maximum weeks of assistance for
unemployment compensation vary by state. For instance, California offers unemployment
insurance applicants a maximum WBA of $450 for up to 26 weeks; Texas offers a maximum
WBA of $535 for up to 26 weeks; New York offers a maximum WBA of $504 for up to 26
weeks; Georgia offers a maximum WBA of $365 for up to 20 weeks; North Carolina offers a
maximum WBA of $350 for up to 20 weeks; and Alabama offers a maximum WBA of $275 for
up to 14 weeks.31
Federal Unemployment Assistance Related to Covid-19
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was
signed into law.32 It expanded states’ abilities to provide unemployment benefits for workers
impacted by the COVID-19 pandemic, and included assistance to workers who are not ordinarily
eligible for unemployment benefits.33 The CARES Act included Federal Pandemic
Unemployment Compensation (FPUC),34 Pandemic Unemployment Assistance (PUA),35 and
Pandemic Emergency Unemployment Compensation (PEUC)36 to aid individuals whose
employment was negatively impacted as a result of COVID-19.37
On December 27, 2020, the federal COVID-19 relief package was extended to provide additional
federal unemployment benefits to eligible claimants.38 The package included an additional $300
30
For tax years 2010 and 2011, the Legislature turned the trust fund trigger “off” to avoid a significant rate increase for
employers. Section 3, ch. 2010-1, Laws of Fla.
31
See USDOL, Significant Provisions of State Unemployment Insurance Laws Effective July 2020, available at:
https://oui.doleta.gov/unemploy/content/sigpros/2020-2029/July2020.pdf (last visited Mar. 30, 2021).
32
See USDOL, Unemployment Insurance Relief During COVID-19 Outbreak, available at:
https://www.dol.gov/coronavirus/unemployment-insurance (last visited Mar. 30, 2021).
33
Id.
34
The FPUC provided an additional $600 per week to any individual eligible under Florida or Federal law for RA requested
for the weeks between March 29, 2020 and July 25, 2020.
35
The PUA provided benefits to those not ordinarily eligible for RA. Eligible individuals could receive up to $275 per week
in benefits for up to 39 weeks beginning February 2, 2020 through the week ending December 26, 2020, as well as the
additional $600 of FPUC benefits.
36
The PEUC provided an additional 13 weeks of benefits to individuals who exhausted their regular benefits beginning on
March 29, 2020 through the week ending December 26, 2020.
37
See Department of Economic Opportunity, Reemployment Assistance Resource Guide – COVID-19 at 13, available at:
http://floridajobs.org/docs/default-source/reemployment-assistance-center/new-individual-faq-includes-cares-act-
final.pdf?sfvrsn=5f2547b0_77 (last visited Mar. 30, 2021).
38
See Department of Economic Opportunity, COVID-19 Relief Provision – 2021, available at:
http://floridajobs.org/docs/default-source/reemployment-assistance-center/cares-act/covid-19-relief-provisions-
2021.pdf?sfvrsn=2f5b4ab0_2 (last visited Mar. 30, 2021).
BILL: CS/SB 1906 Page 7
of FPUC benefits39 for Floridians receiving state or federal RA benefits, an increase of 11 weeks
under the PEUC for claimants who exhausted their state RA claim,40 and a PUA extension.41
On March 11, 2021, the American Rescue Plan Act further extended unemployment benefits.42
The PEUC and PUA benefit programs are extended to September 6, 2021, and eligible claimants
can also receive an additional $300 under the FPUC.43
Florida also opted to provide benefits under the Mixed Earner Unemployment Compensation
(MEUC) program.44 MEUC provides an additional $100 to eligible claimants who receive RA
benefits and earned at least $5,000 from self-employment in the tax year immediately prior to
when the claimant filed their initial RA claim.45 Additionally, the Federal Lost Wages Assistance
(LWA) program provided states with aid through the Federal Emergency Management Agency
(FEMA).46 This program was available to eligible Floridians for 4 weeks,47 and provided an
additional $300.48
III. Effect of Proposed Changes:
The bill amends s. 443.111, F.S., to change the state’s reemployment assistance weekly benefit
amount from a range of $32 to $275 per week to $100 to $375 per week, and makes the
corresponding change for the maximum amount in any benefit year from $6,325 to $8,625.
The bill amends s. 443.091(1)(c), F.S., to remove the requirement that a claimant must include
the telephone number of each prospective employer contacted for each week of unemployment
claimed, and clarifies that “address” means a website address, a physical address, or an e-mail
address for purposes of reporting the address of each prospective employer contacted.
39
FPUC is available to eligible claimants for the week beginning December 27, 2020, through the week ending March 13,
2021. See Id.
40
The PEUC allows up to an additional 24 weeks of benefits. It will also provide claimants with up to $275 in weekly
benefits available beginning December 27, 2020, through the week ending March 13, 2021, plus the FPUC ($300) payments
for weeks requested beginning December 27, 2020, through March 13, 2021 See Id.
41
This extension provides claimants with 50 weeks of PUA from the previous 39 weeks, which is an increase of 11 weeks.
Additional weeks of PUA benefits paid pursuant to the Continued Assistance Act are only available for weeks of
unemployment beginning on or after December 27, 2020. See Id.
42
See Department of Economic Opportunity, Weekly Reemployment Assistance Update - March 24, available at:
https://floridajobs.org/news-center/DEO-Press/2021/03/24/florida-department-of-economic-opportunity-provides-weekly-
reemployment-assistance-update---march-24 (last visited Mar. 30, 2021).
43
FPUC is extended through September 6, 2021. See Id.
44
See Department of Economic Opportunity, COVID-19 Relief Provision – 2021, available at:
http://floridajobs.org/docs/default-source/reemployment-assistance-center/cares-act/covid-19-relief-provisions-
2021.pdf?sfvrsn=2f5b4ab0_2 (last visited Mar. 30, 2021).
45
MEUC has been extended to Sep. 6, 2021. See Department of Economic Opportunity, Guide for Reemployment Assistance
Mixed Earners Unemployment Compensation (MEUC), available at: http://www.floridajobs.org/docs/default-
source/reemployment-assistance-center/cares-act/meuc-guide.pdf (last visited Mar. 30, 2021).
46
See Department of Economic Opportunity, Federal Lost Wages Assistance Program FAQs, available at:
https://floridajobs.org/docs/default-source/reemployment-assistance-center/cares-act/lost-wages-assistance-
faq.pdf?sfvrsn=9add4bb0_10 (last visited Mar. 30, 2021).
47
LWA was available the week ending August 1, 2020 through the week ending August 22, 2020. Applicants had to be
eligible for state or federal Reemployment Assistance benefits, be unemployed or partially unemployed due to COVID-19
and have a weekly benefit amount of at least $100 in a state or Federal Reemployment Assistance. See Id.
48
Id.
BILL: CS/SB 1906 Page 8
The bill amends s. 443.091(1)(d), F.S., to reduce the number of prospective employers that
reemployment assistance claimants must contact each week from five to three, and provides that
a claimant may meet this work search requirement by submitting a resume through an online job
search service.
The bill reenacts related provisions in ss. 443.041 and 443.1116, F.S., to incorporate the
amendments made by the bill.
The bill takes effect July 1, 2021.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
To the extent that the increase in the weekly benefit amount increases the amount of
funds paid out to claimants from the Unemployment Compensation Trust Fund, it may
require employer tax contributions be increased.
The Revenue Estimating Conference has not yet estimated the revenue impact of the bill.
B. Private Sector Impact:
Eligible reemployment assistance claimants could receive higher RA benefits.
Reimbursable employers, such as charities, could experience an increase in costs
consistent with the amount of increased reemployment assistance claims paid.
BILL: CS/SB 1906 Page 9
C. Government Sector Impact:
Governmental employers could experience an increase in costs consistent with the
amount of increased reemployment assistance claims paid.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends sections 443.111, 443.041, and 443.1116 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on March 29, 2021:
The committee substitute removes the requirement that a claimant must include the
telephone number of each prospective employer contacted for each week of
unemployment claimed, and clarifies that “address” means a website address, a physical
address, or an e-mail address for purposes of reporting the address of each prospective
employer contacted.
The committee substitute reduces the number of prospective employers that
reemployment assistance claimants must contact each week from five to three, and
provides that a claimant may meet this work search requirement by submitting a resume
through an online job search service.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2021 COMMITTEE AMENDMENT
Bill No. SB 1906
Ì565626;Î565626
LEGISLATIVE ACTION
Senate . House
Comm: UNFAV .
03/30/2021 .
.
.
.
The Committee on Commerce and Tourism (Torres) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 15 - 66
4 and insert:
5 Section 1. Subsection (3) and paragraphs (b) and (c) of
6 subsection (5) of section 443.111, Florida Statutes, are amended
7 to read:
8 443.111 Payment of benefits.—
9 (3) WEEKLY BENEFIT AMOUNT.—An individual’s “weekly benefit
10 amount” is an amount equal to one twenty-sixth of the total
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Florida Senate - 2021 COMMITTEE AMENDMENT
Bill No. SB 1906
Ì565626;Î565626
11 wages for insured work paid during that quarter of the base
12 period in which the total wages paid were the highest, but not
13 less than $100 $32 or more than $500 $275. The weekly benefit
14 amount, if not a multiple of $1, is rounded downward to the
15 nearest full dollar amount. The maximum weekly benefit amount in
16 effect at the time the claimant establishes an individual weekly
17 benefit amount is the maximum benefit amount applicable
18 throughout the claimant’s benefit year.
19 (5) DURATION OF BENEFITS.—
20 (b) Each otherwise eligible individual is entitled during
21 any benefit year to a total amount of benefits equal to 25
22 percent of the total wages in his or her base period, not to
23 exceed $13,000 $6,325 or the product arrived at by multiplying
24 the weekly benefit amount with the number of weeks determined in
25 paragraph (c), whichever is less. However, the total amount of
26 benefits, if not a multiple of $1, is rounded downward to the
27 nearest full dollar amount. These benefits are payable at a
28 weekly rate no greater than the weekly benefit amount.
29 (c) For claims submitted during a calendar year, the
30 duration of benefits is limited to twenty-six weeks:
31 1. Twelve weeks if this state’s average unemployment rate
32 is at or below 5 percent.
33 2. An additional week in addition to the 12 weeks for each
34 0.5 percent increment in this state’s average unemployment rate
35 above 5 percent.
36 3. Up to a maximum of 23 weeks if this state’s average
37 unemployment rate equals or exceeds 10.5 percent.
38 Section 2. For the purpose of incorporating the amendment
39 made by this act to section 443.111, Florida Statutes, in a
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Bill No. SB 1906
Ì565626;Î565626
40 reference thereto, paragraph (b) of subsection (2) of section
41 443.041, Florida Statutes, is reenacted to read:
42 443.041 Waiver of rights; fees; privileged communications.—
43 (2) FEES.—
44 (b) An attorney at law representing a claimant for benefits
45 in any district court of appeal of this state or in the Supreme
46 Court of Florida is entitled to counsel fees payable by the
47 department as set by the court if the petition for review or
48 appeal is initiated by the claimant and results in a decision
49 awarding more benefits than provided in the decision from which
50 appeal was taken. The amount of the fee may not exceed 50
51 percent of the total amount of regular benefits permitted under
52 s. 443.111(5)(b) during the benefit year.
53 Section 3. For the purpose of incorporating the amendment
54 made by this act to section 443.111, Florida Statutes, in a
55 reference thereto, subsections (6) and (7) and paragraph (a) of
56 subsection (8) of section 443.1116, Florida Statutes, are
57 reenacted to read:
58 443.1116 Short-time compensation.—
59 (6) WEEKLY SHORT-TIME COMPENSATION BENEFIT AMOUNT.—The
60 weekly short-time compensation benefit amount payable to an
61 individual is equal to the product of her or his weekly benefit
62 amount as provided in s. 443.111(3) and the ratio of the number
63 of normal weekly hours of work for which the employer would not
64 compensate the individual to the individual’s normal weekly
65 hours of work. The benefit amount, if not a multiple of $1, is
66 rounded downward to the next lower multiple of $1.
67 (7) TOTAL SHORT-TIME COMPENSATION BENEFIT AMOUNT.—An
68 individual may not be paid benefits under this section in any
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Bill No. SB 1906
Ì565626;Î565626
69 benefit year for more than the maximum entitlement provided in
70 s. 443.111(5), and an individual may not be paid short-time
71 compensation benefits for more than 26 weeks in any benefit
72 year.
73
74 ================= T I T L E A M E N D M E N T ================
75 And the title is amended as follows:
76 Delete lines 6 - 7
77 and insert:
78 to receive during a benefit year; revising the
79 duration of benefits; reenacting ss. 443.041(2)(b) and
80 443.1116(6), (7), and (8)(a), F.S.,
Page 4 of 4
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Florida Senate - 2021 COMMITTEE AMENDMENT
Bill No. SB 1906
Ì810712sÎ810712
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
03/30/2021 .
.
.
.
The Committee on Commerce and Tourism (Brodeur) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 15 - 17
4 and insert:
5 Section 1. Paragraphs (c) and (d) of subsection (1) of
6 section 443.091, Florida Statutes, are amended to read:
7 443.091 Benefit eligibility conditions.—
8 (1) An unemployed individual is eligible to receive
9 benefits for any week only if the Department of Economic
10 Opportunity finds that:
Page 1 of 6
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Florida Senate - 2021 COMMITTEE AMENDMENT
Bill No. SB 1906
Ì810712sÎ810712
11 (c) To make continued claims for benefits, she or he is
12 reporting to the department in accordance with this paragraph
13 and department rules. Department rules may not conflict with s.
14 443.111(1)(b), which requires that each claimant continue to
15 report regardless of any pending appeal relating to her or his
16 eligibility or disqualification for benefits.
17 1. For each week of unemployment claimed, each report must,
18 at a minimum, include the name and, address, and telephone
19 number of each prospective employer contacted, or the date the
20 claimant reported to a one-stop career center, pursuant to
21 paragraph (d). For the purposes of this subparagraph, the term
22 “address” means a website address, a physical address, or an e-
23 mail address.
24 2. The department shall offer an online assessment aimed at
25 identifying an individual’s skills, abilities, and career
26 aptitude. The skills assessment must be voluntary, and the
27 department shall allow a claimant to choose whether to take the
28 skills assessment. The online assessment shall be made available
29 to any person seeking services from a local workforce
30 development board or a one-stop career center.
31 a. If the claimant chooses to take the online assessment,
32 the outcome of the assessment shall be made available to the
33 claimant, local workforce development board, and one-stop career
34 center. The department, local workforce development board, or
35 one-stop career center shall use the assessment to develop a
36 plan for referring individuals to training and employment
37 opportunities. Aggregate data on assessment outcomes may be made
38 available to CareerSource Florida, Inc., and Enterprise Florida,
39 Inc., for use in the development of policies related to
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Florida Senate - 2021 COMMITTEE AMENDMENT
Bill No. SB 1906
Ì810712sÎ810712
40 education and training programs that will ensure that businesses
41 in this state have access to a skilled and competent workforce.
42 b. Individuals shall be informed of and offered services
43 through the one-stop delivery system, including career
44 counseling, the provision of skill match and job market
45 information, and skills upgrade and other training
46 opportunities, and shall be encouraged to participate in such
47 services at no cost to the individuals. The department shall
48 coordinate with CareerSource Florida, Inc., the local workforce
49 development boards, and the one-stop career centers to identify,
50 develop, and use best practices for improving the skills of
51 individuals who choose to participate in skills upgrade and
52 other training opportunities. The department may contract with
53 an entity to create the online assessment in accordance with the
54 competitive bidding requirements in s. 287.057. The online
55 assessment must work seamlessly with the Reemployment Assistance
56 Claims and Benefits Information System.
57 (d) She or he is able to work and is available for work. In
58 order to assess eligibility for a claimed week of unemployment,
59 the department shall develop criteria to determine a claimant’s
60 ability to work and availability for work. A claimant must be
61 actively seeking work in order to be considered available for
62 work. This means engaging in systematic and sustained efforts to
63 find work, including contacting at least three five prospective
64 employers for each week of unemployment claimed. For the
65 purposes of meeting the requirements of this paragraph, a
66 claimant may contact a prospective employer by submitting a
67 resume to an employer through an online job search service. A
68 claimant who submits a resume to at least three employers
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69 through an online job search service satisfies the work search
70 requirements of this paragraph. The department may require the
71 claimant to provide proof of such efforts to the one-stop career
72 center as part of reemployment services. A claimant’s proof of
73 work search efforts may not include the same prospective
74 employer at the same location in 3 consecutive weeks, unless the
75 employer has indicated since the time of the initial contact
76 that the employer is hiring. The department shall conduct random
77 reviews of work search information provided by claimants. As an
78 alternative to contacting at least three five prospective
79 employers for any week of unemployment claimed, a claimant may,
80 for that same week, report in person to a one-stop career center
81 to meet with a representative of the center and access
82 reemployment services of the center. The center shall keep a
83 record of the services or information provided to the claimant
84 and shall provide the records to the department upon request by
85 the department. However:
86 1. Notwithstanding any other provision of this paragraph or
87 paragraphs (b) and (e), an otherwise eligible individual may not
88 be denied benefits for any week because she or he is in training
89 with the approval of the department, or by reason of s.
90 443.101(2) relating to failure to apply for, or refusal to
91 accept, suitable work. Training may be approved by the
92 department in accordance with criteria prescribed by rule. A
93 claimant’s eligibility during approved training is contingent
94 upon satisfying eligibility conditions prescribed by rule.
95 2. Notwithstanding any other provision of this chapter, an
96 otherwise eligible individual who is in training approved under
97 s. 236(a)(1) of the Trade Act of 1974, as amended, may not be
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98 determined ineligible or disqualified for benefits due to
99 enrollment in such training or because of leaving work that is
100 not suitable employment to enter such training. As used in this
101 subparagraph, the term “suitable employment” means work of a
102 substantially equal or higher skill level than the worker’s past
103 adversely affected employment, as defined for purposes of the
104 Trade Act of 1974, as amended, the wages for which are at least
105 80 percent of the worker’s average weekly wage as determined for
106 purposes of the Trade Act of 1974, as amended.
107 3. Notwithstanding any other provision of this section, an
108 otherwise eligible individual may not be denied benefits for any
109 week because she or he is before any state or federal court
110 pursuant to a lawfully issued summons to appear for jury duty.
111 4. Union members who customarily obtain employment through
112 a union hiring hall may satisfy the work search requirements of
113 this paragraph by reporting daily to their union hall.
114 5. The work search requirements of this paragraph do not
115 apply to persons who are unemployed as a result of a temporary
116 layoff or who are claiming benefits under an approved short-time
117 compensation plan as provided in s. 443.1116.
118 6. In small counties as defined in s. 120.52(19), a
119 claimant engaging in systematic and sustained efforts to find
120 work must contact at least three prospective employers for each
121 week of unemployment claimed.
122 7. The work search requirements of this paragraph do not
123 apply to persons required to participate in reemployment
124 services under paragraph (e).
125 Section 2. Subsection (3) and paragraph (b) of subsection
126 (5) of section 443.111, Florida Statutes, are amended, and
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127 paragraph (b) of subsection (1) is republished, to read:
128 443.111 Payment of benefits.—
129 (1) MANNER OF PAYMENT.—Benefits are payable from the fund
130 in accordance with rules adopted by the Department of Economic
131 Opportunity, subject to the following requirements:
132 (b) As required under s. 443.091(1), each claimant must
133 report at least biweekly to receive reemployment assistance
134 benefits and to attest to the fact that she or he is able and
135 available for work, has not refused suitable work, is seeking
136 work and has met the requirements of s. 443.091(1)(d), and, if
137 she or he has worked, to report earnings from that work. Each
138 claimant must continue to report regardless of any appeal or
139 pending appeal relating to her or his eligibility or
140 disqualification for benefits.
141
142 ================= T I T L E A M E N D M E N T ================
143 And the title is amended as follows:
144 Between lines 2 and 3
145 insert:
146 s. 443.091, F.S.; revising requirements for
147 reemployment assistance benefits eligibility; amending
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Ì608332ÅÎ608332
LEGISLATIVE ACTION
Senate . House
Comm: UNFAV .
03/30/2021 .
.
.
.
The Committee on Commerce and Tourism (Powell) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 15 - 17
4 and insert:
5 Section 1. Paragraph (g) of subsection (1) of section
6 443.091, Florida Statutes, is amended to read:
7 443.091 Benefit eligibility conditions.—
8 (1) An unemployed individual is eligible to receive
9 benefits for any week only if the Department of Economic
10 Opportunity finds that:
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11 (g) She or he has been paid wages for insured work equal to
12 1.5 times her or his high quarter wages during her or his base
13 period, except that an unemployed individual is not eligible to
14 receive benefits if the base period wages are less than $1,200
15 $3,400.
16 Section 2. Paragraph (b) of subsection (2), subsection (3),
17 and paragraph (b) of subsection (5) of section 443.111, Florida
18 Statutes, are amended to read:
19 443.111 Payment of benefits.—
20 (2) QUALIFYING REQUIREMENTS.—To establish a benefit year
21 for reemployment assistance benefits, an individual must have:
22 (b) Minimum total base period wage credits equal to the
23 high quarter wages multiplied by 1.5, but at least $1,200 $3,400
24 in the base period.
25
26 ================= T I T L E A M E N D M E N T ================
27 And the title is amended as follows:
28 Delete line 3
29 and insert:
30 s. 443.091, F.S.; revising an eligibility requirement
31 for receiving reemployment assistance benefits;
32 amending s. 443.111, F.S.; revising a qualifying
33 requirement for individuals seeking to establish a
34 benefit year for reemployment assistance; increasing
35 the weekly benefit
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LEGISLATIVE ACTION
Senate . House
Comm: UNFAV .
03/30/2021 .
.
.
.
The Committee on Commerce and Tourism (Powell) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Before line 15
4 insert:
5 Section 1. Paragraph (d) of subsection (1) of section
6 443.091, Florida Statutes, is amended to read:
7 443.091 Benefit eligibility conditions.—
8 (1) An unemployed individual is eligible to receive
9 benefits for any week only if the Department of Economic
10 Opportunity finds that:
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11 (d) She or he is able to work and is available for work. In
12 order to assess eligibility for a claimed week of unemployment,
13 the department shall develop criteria to determine a claimant’s
14 ability to work and availability for work. A claimant must be
15 actively seeking work in order to be considered available for
16 work. This means engaging in systematic and sustained efforts to
17 find work, including contacting at least five prospective
18 employers for each week of unemployment claimed. The department
19 may require the claimant to provide proof of such efforts to the
20 one-stop career center as part of reemployment services. A
21 claimant’s proof of work search efforts may not include the same
22 prospective employer at the same location in 3 consecutive
23 weeks, unless the employer has indicated since the time of the
24 initial contact that the employer is hiring. The department
25 shall conduct random reviews of work search information provided
26 by claimants. As an alternative to contacting at least five
27 prospective employers for any week of unemployment claimed, a
28 claimant may, for that same week, report in person to a one-stop
29 career center to meet with a representative of the center and
30 access reemployment services of the center. The center shall
31 keep a record of the services or information provided to the
32 claimant and shall provide the records to the department upon
33 request by the department. However:
34 1. Notwithstanding any other provision of this paragraph,
35 an individual who is otherwise eligible for benefits may not be
36 deemed ineligible for benefits for any week if his or her
37 ability to work, or availability to work, is precluded by the
38 claimant’s:
39 a. Lack of available transportation to work;
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40 b. Sickness or disability;
41 c. Caring for a family member or a child; or
42 d. Pregnancy.
43 2. Notwithstanding any other provision of this paragraph or
44 paragraphs (b) and (e), an otherwise eligible individual may not
45 be denied benefits for any week because she or he is in training
46 with the approval of the department, or by reason of s.
47 443.101(2) relating to failure to apply for, or refusal to
48 accept, suitable work. Training may be approved by the
49 department in accordance with criteria prescribed by rule. A
50 claimant’s eligibility during approved training is contingent
51 upon satisfying eligibility conditions prescribed by rule.
52 3.2. Notwithstanding any other provision of this chapter,
53 an otherwise eligible individual who is in training approved
54 under s. 236(a)(1) of the Trade Act of 1974, as amended, may not
55 be determined ineligible or disqualified for benefits due to
56 enrollment in such training or because of leaving work that is
57 not suitable employment to enter such training. As used in this
58 subparagraph, the term “suitable employment” means work of a
59 substantially equal or higher skill level than the worker’s past
60 adversely affected employment, as defined for purposes of the
61 Trade Act of 1974, as amended, the wages for which are at least
62 80 percent of the worker’s average weekly wage as determined for
63 purposes of the Trade Act of 1974, as amended.
64 4.3. Notwithstanding any other provision of this section,
65 an otherwise eligible individual may not be denied benefits for
66 any week because she or he is before any state or federal court
67 pursuant to a lawfully issued summons to appear for jury duty.
68 5.4. Union members who customarily obtain employment
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69 through a union hiring hall may satisfy the work search
70 requirements of this paragraph by reporting daily to their union
71 hall.
72 6.5. The work search requirements of this paragraph do not
73 apply to persons who are unemployed as a result of a temporary
74 layoff or who are claiming benefits under an approved short-time
75 compensation plan as provided in s. 443.1116.
76 7.6. In small counties as defined in s. 120.52(19), a
77 claimant engaging in systematic and sustained efforts to find
78 work must contact at least three prospective employers for each
79 week of unemployment claimed.
80 8.7. The work search requirements of this paragraph do not
81 apply to persons required to participate in reemployment
82 services under paragraph (e).
83
84 ================= T I T L E A M E N D M E N T ================
85 And the title is amended as follows:
86 Between lines 2 and 3
87 insert:
88 s. 443.091, F.S.; prohibiting otherwise eligible
89 individuals from being deemed ineligible to receive
90 reemployment assistance benefits if their ability or
91 availability to work is precluded by specified
92 circumstances; amending
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Ì321614{Î321614
LEGISLATIVE ACTION
Senate . House
Comm: WD .
03/30/2021 .
.
.
.
The Committee on Commerce and Tourism (Powell) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 15 - 17
4 and insert:
5 Section 1. Paragraph (d) of subsection (1) of section
6 443.091, Florida Statutes, is amended to read:
7 443.091 Benefit eligibility conditions.—
8 (1) An unemployed individual is eligible to receive
9 benefits for any week only if the Department of Economic
10 Opportunity finds that:
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11 (d) She or he is able to work and is available for work. In
12 order to assess eligibility for a claimed week of unemployment,
13 the department shall develop criteria to determine a claimant’s
14 ability to work and availability for work. A claimant must be
15 actively seeking work in order to be considered available for
16 work. This means engaging in systematic and sustained efforts to
17 find work, including contacting at least three five prospective
18 employers for each week of unemployment claimed. For the
19 purposes of meeting the requirements of this paragraph, a
20 claimant may contact prospective employers by submitting a
21 resume to an employer through an online job search service or a
22 claimant may contact prospective employers through traditional
23 work searches. A claimant who submits a resume to at least three
24 employers through an online job search service satisfies the
25 work search requirements of this paragraph. The department may
26 require the claimant to provide proof of such efforts to the
27 one-stop career center as part of reemployment services. A
28 claimant’s proof of work search efforts may not include the same
29 prospective employer at the same location in 3 consecutive
30 weeks, unless the employer has indicated since the time of the
31 initial contact that the employer is hiring. The department
32 shall conduct random reviews of work search information provided
33 by claimants. As an alternative to contacting at least three
34 five prospective employers for any week of unemployment claimed,
35 a claimant may, for that same week, report in person to a one-
36 stop career center to meet with a representative of the center
37 and access reemployment services of the center. The center shall
38 keep a record of the services or information provided to the
39 claimant and shall provide the records to the department upon
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40 request by the department. However:
41 1. Notwithstanding any other provision of this paragraph or
42 paragraphs (b) and (e), an otherwise eligible individual may not
43 be denied benefits for any week because she or he is in training
44 with the approval of the department, or by reason of s.
45 443.101(2) relating to failure to apply for, or refusal to
46 accept, suitable work. Training may be approved by the
47 department in accordance with criteria prescribed by rule. A
48 claimant’s eligibility during approved training is contingent
49 upon satisfying eligibility conditions prescribed by rule.
50 2. Notwithstanding any other provision of this chapter, an
51 otherwise eligible individual who is in training approved under
52 s. 236(a)(1) of the Trade Act of 1974, as amended, may not be
53 determined ineligible or disqualified for benefits due to
54 enrollment in such training or because of leaving work that is
55 not suitable employment to enter such training. As used in this
56 subparagraph, the term “suitable employment” means work of a
57 substantially equal or higher skill level than the worker’s past
58 adversely affected employment, as defined for purposes of the
59 Trade Act of 1974, as amended, the wages for which are at least
60 80 percent of the worker’s average weekly wage as determined for
61 purposes of the Trade Act of 1974, as amended.
62 3. Notwithstanding any other provision of this section, an
63 otherwise eligible individual may not be denied benefits for any
64 week because she or he is before any state or federal court
65 pursuant to a lawfully issued summons to appear for jury duty.
66 4. Union members who customarily obtain employment through
67 a union hiring hall may satisfy the work search requirements of
68 this paragraph by reporting daily to their union hall.
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69 5. The work search requirements of this paragraph do not
70 apply to persons who are unemployed as a result of a temporary
71 layoff or who are claiming benefits under an approved short-time
72 compensation plan as provided in s. 443.1116.
73 6. In small counties as defined in s. 120.52(19), a
74 claimant engaging in systematic and sustained efforts to find
75 work must contact at least three prospective employers for each
76 week of unemployment claimed.
77 7. The work search requirements of this paragraph do not
78 apply to persons required to participate in reemployment
79 services under paragraph (e).
80 Section 2. Subsection (3) and paragraph (b) of subsection
81 (5) of section 443.111, Florida Statutes, are amended, and
82 paragraph (b) of subsection (1) is republished, to read:
83 443.111 Payment of benefits.—
84 (1) MANNER OF PAYMENT.—Benefits are payable from the fund
85 in accordance with rules adopted by the Department of Economic
86 Opportunity, subject to the following requirements:
87 (b) As required under s. 443.091(1), each claimant must
88 report at least biweekly to receive reemployment assistance
89 benefits and to attest to the fact that she or he is able and
90 available for work, has not refused suitable work, is seeking
91 work and has met the requirements of s. 443.091(1)(d), and, if
92 she or he has worked, to report earnings from that work. Each
93 claimant must continue to report regardless of any appeal or
94 pending appeal relating to her or his eligibility or
95 disqualification for benefits.
96
97 ================= T I T L E A M E N D M E N T ================
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98 And the title is amended as follows:
99 Between lines 2 and 3
100 insert:
101 s. 443.091, F.S.; revising requirements for
102 reemployment assistance benefits eligibility; amending
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LEGISLATIVE ACTION
Senate . House
Comm: UNFAV .
03/30/2021 .
.
.
.
The Committee on Commerce and Tourism (Powell) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 15 - 37
4 and insert:
5 Section 1. Present subsections (3) through (46) of section
6 443.036, Florida Statutes, are redesignated as subsections (4)
7 through (47), respectively, a new subsection (3) is added to
8 that section, and present subsection (24) of that section is
9 amended, to read:
10 443.036 Definitions.—As used in this chapter, the term:
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11 (3) “Alternative base period” means the four most recently
12 completed calendar quarters before an individual’s benefit year,
13 if such quarters qualify the individual for benefits and were
14 not previously used to establish a prior valid benefit year.
15 (25)(24) “High quarter” means the quarter in an
16 individual’s base period, or in the individual’s alternative
17 base period if an alternative base period is used for
18 determining benefits eligibility, in which the individual has
19 the greatest amount of wages paid, regardless of the number of
20 employers paying wages in that quarter.
21 Section 2. Paragraph (g) of subsection (1) of section
22 443.091, Florida Statutes, is amended to read:
23 443.091 Benefit eligibility conditions.—
24 (1) An unemployed individual is eligible to receive
25 benefits for any week only if the Department of Economic
26 Opportunity finds that:
27 (g) She or he has been paid wages for insured work equal to
28 1.5 times her or his high quarter wages during her or his base
29 period, except that an unemployed individual is not eligible to
30 receive benefits if the base period wages are less than $3,400.
31 If an unemployed individual is ineligible for benefits based on
32 base period wages, his or her wages shall be calculated using
33 the alternative base period, and his or her claim shall be
34 established using such wages.
35 Section 3. Subsections (2) and (3) and paragraph (b) of
36 subsection (5) of section 443.111, Florida Statutes, are amended
37 to read:
38 443.111 Payment of benefits.—
39 (2) QUALIFYING REQUIREMENTS.—
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40 (a) To establish a benefit year for reemployment assistance
41 benefits, an individual must have:
42 1.(a) Wage credits in two or more calendar quarters of the
43 individual’s base period or alternative base period.
44 2.(b) Minimum total base period wage credits equal to the
45 high quarter wages multiplied by 1.5, but at least $3,400 in the
46 base period, or in the alternative base period if the
47 alternative base period is used for benefits eligibility.
48 (b)1. If a worker is ineligible for benefits based on base
49 period wages, wages for that worker must be calculated using an
50 alternative base period and the claim shall be established using
51 such wages.
52 2. If the wage information for an individual’s most
53 recently completed calendar quarter is unavailable to the
54 department from regular quarterly reports of systematically
55 accessible wage information, the department must promptly
56 contact the individual’s employer to obtain the wage
57 information.
58 3. Wages that fall within the alternative base period of
59 claims established under this paragraph are not available for
60 reuse in qualifying for any subsequent benefit years.
61 4. The department shall adopt rules to administer this
62 paragraph.
63 (3) WEEKLY BENEFIT AMOUNT.—
64 (a) An individual’s “weekly benefit amount” is an amount
65 equal to one twenty-sixth of the total wages for insured work
66 paid during that quarter of the base period in which the total
67 wages paid were the highest, but not less than $100 $32 or more
68 than $375 $275. The weekly benefit amount, if not a multiple of
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69 $1, is rounded downward to the nearest full dollar amount. The
70 maximum weekly benefit amount in effect at the time the claimant
71 establishes an individual weekly benefit amount is the maximum
72 benefit amount applicable throughout the claimant’s benefit
73 year.
74 (b) The weekly benefit amount shall be based on either the
75 claimant’s base period wages or alternative base period wages,
76 whichever period results in the greater benefit amount.
77 (5) DURATION OF BENEFITS.—
78 (b) Each otherwise eligible individual is entitled during
79 any benefit year to a total amount of benefits equal to 25
80 percent of the total wages in his or her base period, not to
81 exceed $8,625 $6,325 or the product arrived at by multiplying
82 the weekly benefit amount with the number of weeks determined in
83 paragraph (c), whichever is less. However, the total amount of
84 benefits, if not a multiple of $1, is rounded downward to the
85 nearest full dollar amount. These benefits are payable at a
86 weekly rate no greater than the weekly benefit amount.
87 Section 4. Paragraph (a) of subsection (4) of section
88 215.425, Florida Statutes, is amended to read:
89 215.425 Extra compensation claims prohibited; bonuses;
90 severance pay.—
91 (4)(a) On or after July 1, 2011, a unit of government that
92 enters into a contract or employment agreement, or renewal or
93 renegotiation of an existing contract or employment agreement,
94 that contains a provision for severance pay with an officer,
95 agent, employee, or contractor must include the following
96 provisions in the contract:
97 1. A requirement that severance pay provided may not exceed
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98 an amount greater than 20 weeks of compensation.
99 2. A prohibition of provision of severance pay when the
100 officer, agent, employee, or contractor has been fired for
101 misconduct, as defined in s. 443.036(30) s. 443.036(29), by the
102 unit of government.
103 Section 5. Paragraph (a) of subsection (1) and paragraph
104 (f) of subsection (13) of section 443.1216, Florida Statutes,
105 are amended to read:
106 443.1216 Employment.—Employment, as defined in s. 443.036,
107 is subject to this chapter under the following conditions:
108 (1)(a) The employment subject to this chapter includes a
109 service performed, including a service performed in interstate
110 commerce, by:
111 1. An officer of a corporation.
112 2. An individual who, under the usual common-law rules
113 applicable in determining the employer-employee relationship, is
114 an employee. However, whenever a client, as defined in s.
115 443.036(19) s. 443.036(18), which would otherwise be designated
116 as an employing unit has contracted with an employee leasing
117 company to supply it with workers, those workers are considered
118 employees of the employee leasing company. An employee leasing
119 company may lease corporate officers of the client to the client
120 and other workers to the client, except as prohibited by
121 regulations of the Internal Revenue Service. Employees of an
122 employee leasing company must be reported under the employee
123 leasing company’s tax identification number and contribution
124 rate for work performed for the employee leasing company.
125 a. However, except for the internal employees of an
126 employee leasing company, each employee leasing company may make
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127 a separate one-time election to report and pay contributions
128 under the tax identification number and contribution rate for
129 each client of the employee leasing company. Under the client
130 method, an employee leasing company choosing this option must
131 assign leased employees to the client company that is leasing
132 the employees. The client method is solely a method to report
133 and pay unemployment contributions, and, whichever method is
134 chosen, such election may not impact any other aspect of state
135 law. An employee leasing company that elects the client method
136 must pay contributions at the rates assigned to each client
137 company.
138 (I) The election applies to all of the employee leasing
139 company’s current and future clients.
140 (II) The employee leasing company must notify the
141 Department of Revenue of its election by July 1, 2012, and such
142 election applies to reports and contributions for the first
143 quarter of the following calendar year. The notification must
144 include:
145 (A) A list of each client company and the unemployment
146 account number or, if one has not yet been issued, the federal
147 employment identification number, as established by the employee
148 leasing company upon the election to file by client method;
149 (B) A list of each client company’s current and previous
150 employees and their respective social security numbers for the
151 prior 3 state fiscal years or, if the client company has not
152 been a client for the prior 3 state fiscal years, such portion
153 of the prior 3 state fiscal years that the client company has
154 been a client must be supplied;
155 (C) The wage data and benefit charges associated with each
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156 client company for the prior 3 state fiscal years or, if the
157 client company has not been a client for the prior 3 state
158 fiscal years, such portion of the prior 3 state fiscal years
159 that the client company has been a client must be supplied. If
160 the client company’s employment record is chargeable with
161 benefits for less than 8 calendar quarters while being a client
162 of the employee leasing company, the client company must pay
163 contributions at the initial rate of 2.7 percent; and
164 (D) The wage data and benefit charges for the prior 3 state
165 fiscal years that cannot be associated with a client company
166 must be reported and charged to the employee leasing company.
167 (III) Subsequent to choosing the client method, the
168 employee leasing company may not change its reporting method.
169 (IV) The employee leasing company shall file a Florida
170 Department of Revenue Employer’s Quarterly Report for each
171 client company by approved electronic means, and pay all
172 contributions by approved electronic means.
173 (V) For the purposes of calculating experience rates when
174 the client method is chosen, each client’s own benefit charges
175 and wage data experience while with the employee leasing company
176 determines each client’s tax rate where the client has been a
177 client of the employee leasing company for at least 8 calendar
178 quarters before the election. The client company shall continue
179 to report the nonleased employees under its tax rate.
180 (VI) The election is binding on each client of the employee
181 leasing company for as long as a written agreement is in effect
182 between the client and the employee leasing company pursuant to
183 s. 468.525(3)(a). If the relationship between the employee
184 leasing company and the client terminates, the client retains
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185 the wage and benefit history experienced under the employee
186 leasing company.
187 (VII) Notwithstanding which election method the employee
188 leasing company chooses, the applicable client company is an
189 employing unit for purposes of s. 443.071. The employee leasing
190 company or any of its officers or agents are liable for any
191 violation of s. 443.071 engaged in by such persons or entities.
192 The applicable client company or any of its officers or agents
193 are liable for any violation of s. 443.071 engaged in by such
194 persons or entities. The employee leasing company or its
195 applicable client company is not liable for any violation of s.
196 443.071 engaged in by the other party or by the other party’s
197 officers or agents.
198 (VIII) If an employee leasing company fails to select the
199 client method of reporting not later than July 1, 2012, the
200 entity is required to report under the employee leasing
201 company’s tax identification number and contribution rate.
202 (IX) After an employee leasing company is licensed pursuant
203 to part XI of chapter 468, each newly licensed entity has 30
204 days after the date the license is granted to notify the tax
205 collection service provider in writing of their selection of the
206 client method. A newly licensed employee leasing company that
207 fails to timely select reporting pursuant to the client method
208 of reporting must report under the employee leasing company’s
209 tax identification number and contribution rate.
210 (X) Irrespective of the election, each transfer of trade or
211 business, including workforce, or a portion thereof, between
212 employee leasing companies is subject to the provisions of s.
213 443.131(3)(g) if, at the time of the transfer, there is common
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214 ownership, management, or control between the entities.
215 b. In addition to any other report required to be filed by
216 law, an employee leasing company shall submit a report to the
217 Labor Market Statistics Center within the Department of Economic
218 Opportunity which includes each client establishment and each
219 establishment of the leasing company, or as otherwise directed
220 by the department. The report must include the following
221 information for each establishment:
222 (I) The trade or establishment name;
223 (II) The former reemployment assistance account number, if
224 available;
225 (III) The former federal employer’s identification number,
226 if available;
227 (IV) The industry code recognized and published by the
228 United States Office of Management and Budget, if available;
229 (V) A description of the client’s primary business activity
230 in order to verify or assign an industry code;
231 (VI) The address of the physical location;
232 (VII) The number of full-time and part-time employees who
233 worked during, or received pay that was subject to reemployment
234 assistance taxes for, the pay period including the 12th of the
235 month for each month of the quarter;
236 (VIII) The total wages subject to reemployment assistance
237 taxes paid during the calendar quarter;
238 (IX) An internal identification code to uniquely identify
239 each establishment of each client;
240 (X) The month and year that the client entered into the
241 contract for services; and
242 (XI) The month and year that the client terminated the
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243 contract for services.
244 c. The report must be submitted electronically or in a
245 manner otherwise prescribed by the Department of Economic
246 Opportunity in the format specified by the Bureau of Labor
247 Statistics of the United States Department of Labor for its
248 Multiple Worksite Report for Professional Employer
249 Organizations. The report must be provided quarterly to the
250 Labor Market Statistics Center within the department, or as
251 otherwise directed by the department, and must be filed by the
252 last day of the month immediately after the end of the calendar
253 quarter. The information required in sub-sub-subparagraphs b.(X)
254 and (XI) need be provided only in the quarter in which the
255 contract to which it relates was entered into or terminated. The
256 sum of the employment data and the sum of the wage data in this
257 report must match the employment and wages reported in the
258 reemployment assistance quarterly tax and wage report.
259 d. The department shall adopt rules as necessary to
260 administer this subparagraph, and may administer, collect,
261 enforce, and waive the penalty imposed by s. 443.141(1)(b) for
262 the report required by this subparagraph.
263 e. For the purposes of this subparagraph, the term
264 “establishment” means any location where business is conducted
265 or where services or industrial operations are performed.
266 3. An individual other than an individual who is an
267 employee under subparagraph 1. or subparagraph 2., who performs
268 services for remuneration for any person:
269 a. As an agent-driver or commission-driver engaged in
270 distributing meat products, vegetable products, fruit products,
271 bakery products, beverages other than milk, or laundry or
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272 drycleaning services for his or her principal.
273 b. As a traveling or city salesperson engaged on a full-
274 time basis in the solicitation on behalf of, and the
275 transmission to, his or her principal of orders from
276 wholesalers, retailers, contractors, or operators of hotels,
277 restaurants, or other similar establishments for merchandise for
278 resale or supplies for use in the business operations. This sub-
279 subparagraph does not apply to an agent-driver or a commission-
280 driver and does not apply to sideline sales activities performed
281 on behalf of a person other than the salesperson’s principal.
282 4. The services described in subparagraph 3. are employment
283 subject to this chapter only if:
284 a. The contract of service contemplates that substantially
285 all of the services are to be performed personally by the
286 individual;
287 b. The individual does not have a substantial investment in
288 facilities used in connection with the services, other than
289 facilities used for transportation; and
290 c. The services are not in the nature of a single
291 transaction that is not part of a continuing relationship with
292 the person for whom the services are performed.
293 (13) The following are exempt from coverage under this
294 chapter:
295 (f) Service performed in the employ of a public employer as
296 defined in s. 443.036, except as provided in subsection (2), and
297 service performed in the employ of an instrumentality of a
298 public employer as described in s. 443.036(36)(b) or (c) s.
299 443.036(35)(b) or (c), to the extent that the instrumentality is
300 immune under the United States Constitution from the tax imposed
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301 by s. 3301 of the Internal Revenue Code for that service.
302 Section 6. Paragraph (f) of subsection (3) of section
303 443.131, Florida Statutes, is amended to read:
304 443.131 Contributions.—
305 (3) VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT
306 EXPERIENCE.—
307 (f) Transfer of employment records.—
308 1. For the purposes of this subsection, two or more
309 employers who are parties to a transfer of business or the
310 subject of a merger, consolidation, or other form of
311 reorganization, effecting a change in legal identity or form,
312 are deemed a single employer and are considered to be one
313 employer with a continuous employment record if the tax
314 collection service provider finds that the successor employer
315 continues to carry on the employing enterprises of all of the
316 predecessor employers and that the successor employer has paid
317 all contributions required of and due from all of the
318 predecessor employers and has assumed liability for all
319 contributions that may become due from all of the predecessor
320 employers. In addition, an employer may not be considered a
321 successor under this subparagraph if the employer purchases a
322 company with a lower rate into which employees with job
323 functions unrelated to the business endeavors of the predecessor
324 are transferred for the purpose of acquiring the low rate and
325 avoiding payment of contributions. As used in this paragraph,
326 notwithstanding s. 443.036(15) s. 443.036(14), the term
327 “contributions” means all indebtedness to the tax collection
328 service provider, including, but not limited to, interest,
329 penalty, collection fee, and service fee. A successor employer
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330 must accept the transfer of all of the predecessor employers’
331 employment records within 30 days after the date of the official
332 notification of liability by succession. If a predecessor
333 employer has unpaid contributions or outstanding quarterly
334 reports, the successor employer must pay the total amount with
335 certified funds within 30 days after the date of the notice
336 listing the total amount due. After the total indebtedness is
337 paid, the tax collection service provider shall transfer the
338 employment records of all of the predecessor employers to the
339 successor employer’s employment record. The tax collection
340 service provider shall determine the contribution rate of the
341 combined successor and predecessor employers upon the transfer
342 of the employment records, as prescribed by rule, in order to
343 calculate any change in the contribution rate resulting from the
344 transfer of the employment records.
345 2. Regardless of whether a predecessor employer’s
346 employment record is transferred to a successor employer under
347 this paragraph, the tax collection service provider shall treat
348 the predecessor employer, if he or she subsequently employs
349 individuals, as an employer without a previous employment record
350 or, if his or her coverage is terminated under s. 443.121, as a
351 new employing unit.
352 3. The state agency providing reemployment assistance tax
353 collection services may adopt rules governing the partial
354 transfer of experience rating when an employer transfers an
355 identifiable and segregable portion of his or her payrolls and
356 business to a successor employing unit. As a condition of each
357 partial transfer, these rules must require the following to be
358 filed with the tax collection service provider: an application
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359 by the successor employing unit, an agreement by the predecessor
360 employer, and the evidence required by the tax collection
361 service provider to show the benefit experience and payrolls
362 attributable to the transferred portion through the date of the
363 transfer. These rules must provide that the successor employing
364 unit, if not an employer subject to this chapter, becomes an
365 employer as of the date of the transfer and that the transferred
366 portion of the predecessor employer’s employment record is
367 removed from the employment record of the predecessor employer.
368 For each calendar year after the date of the transfer of the
369 employment record in the records of the tax collection service
370 provider, the service provider shall compute the contribution
371 rate payable by the successor employer or employing unit based
372 on his or her employment record, combined with the transferred
373 portion of the predecessor employer’s employment record. These
374 rules may also prescribe what contribution rates are payable by
375 the predecessor and successor employers for the period between
376 the date of the transfer of the transferred portion of the
377 predecessor employer’s employment record in the records of the
378 tax collection service provider and the first day of the next
379 calendar year.
380 4. This paragraph does not apply to an employee leasing
381 company and client contractual agreement as defined in s.
382 443.036, except as provided in s. 443.1216(1)(a)2.a. The tax
383 collection service provider shall, if the contractual agreement
384 is terminated or the employee leasing company fails to submit
385 reports or pay contributions as required by the service
386 provider, treat the client as a new employer without previous
387 employment record unless the client is otherwise eligible for a
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388 variation from the standard rate.
389
390 ================= T I T L E A M E N D M E N T ================
391 And the title is amended as follows:
392 Delete lines 3 - 6
393 and insert:
394 s. 443.036, F.S.; defining and revising terms for
395 purposes of the Reemployment Assistance Program Law;
396 amending s. 443.091, F.S.; revising conditions under
397 which an individual may qualify for reemployment
398 assistance benefits; amending s. 443.111, F.S.;
399 requiring an alternative base period to be used under
400 certain circumstances when calculating wages in
401 determining qualification for reemployment assistance
402 benefits; requiring the Department of Economic
403 Opportunity to contact an individual’s employer if
404 certain wage information is unavailable through
405 specified means; specifying that wages that fall
406 within an alternative base period are not available
407 for reuse in subsequent benefit years; requiring the
408 department to adopt rules; increasing the weekly
409 benefit amounts an individual may receive; providing
410 that weekly benefit amounts be determined based on the
411 greater of the base period or alternative base period;
412 increasing the cap on the total benefit amount an
413 individual is entitled to receive during a benefit
414 year; amending ss. 215.425, 443.1216, and 443.131,
415 F.S.; conforming cross-references; reenacting ss.
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Florida Senate - 2021 SB 1906 Florida Senate - 2021 SB 1906
By Senator Brodeur
9-01786A-21 20211906__ 9-01786A-21 20211906__
1 A bill to be entitled 30 any benefit year to a total amount of benefits equal to 25
2 An act relating to reemployment assistance; amending 31 percent of the total wages in his or her base period, not to
3 s. 443.111, F.S.; increasing the weekly benefit 32 exceed $8,625 $6,325 or the product arrived at by multiplying
4 amounts an individual may receive; increasing the cap 33 the weekly benefit amount with the number of weeks determined in
5 on the total benefit amount an individual is entitled 34 paragraph (c), whichever is less. However, the total amount of
6 to receive during a benefit year; reenacting ss. 35 benefits, if not a multiple of $1, is rounded downward to the
7 443.041(2)(b) and 443.1116(6) and (8)(a), F.S., 36 nearest full dollar amount. These benefits are payable at a
8 relating to fees and short-time compensation, 37 weekly rate no greater than the weekly benefit amount.
9 respectively, to incorporate the amendments made to s. 38 Section 2. For the purpose of incorporating the amendment
10 443.111, F.S., in references thereto; providing an 39 made by this act to section 443.111, Florida Statutes, in a
11 effective date. 40 reference thereto, paragraph (b) of subsection (2) of section
12 41 443.041, Florida Statutes, is reenacted to read:
13 Be It Enacted by the Legislature of the State of Florida: 42 443.041 Waiver of rights; fees; privileged communications.—
14 43 (2) FEES.—
15 Section 1. Subsection (3) and paragraph (b) of subsection 44 (b) An attorney at law representing a claimant for benefits
16 (5) of section 443.111, Florida Statutes, are amended to read: 45 in any district court of appeal of this state or in the Supreme
17 443.111 Payment of benefits.— 46 Court of Florida is entitled to counsel fees payable by the
18 (3) WEEKLY BENEFIT AMOUNT.—An individual’s “weekly benefit 47 department as set by the court if the petition for review or
19 amount” is an amount equal to one twenty-sixth of the total 48 appeal is initiated by the claimant and results in a decision
20 wages for insured work paid during that quarter of the base 49 awarding more benefits than provided in the decision from which
21 period in which the total wages paid were the highest, but not 50 appeal was taken. The amount of the fee may not exceed 50
22 less than $100 $32 or more than $375 $275. The weekly benefit 51 percent of the total amount of regular benefits permitted under
23 amount, if not a multiple of $1, is rounded downward to the 52 s. 443.111(5)(b) during the benefit year.
24 nearest full dollar amount. The maximum weekly benefit amount in 53 Section 3. For the purpose of incorporating the amendment
25 effect at the time the claimant establishes an individual weekly 54 made by this act to section 443.111, Florida Statutes, in a
26 benefit amount is the maximum benefit amount applicable 55 reference thereto, subsection (6) and paragraph (a) of
27 throughout the claimant’s benefit year. 56 subsection (8) of section 443.1116, Florida Statutes, is
28 (5) DURATION OF BENEFITS.— 57 reenacted to read:
29 (b) Each otherwise eligible individual is entitled during 58 443.1116 Short-time compensation.—
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59 (6) WEEKLY SHORT-TIME COMPENSATION BENEFIT AMOUNT.—The
60 weekly short-time compensation benefit amount payable to an
61 individual is equal to the product of her or his weekly benefit
62 amount as provided in s. 443.111(3) and the ratio of the number
63 of normal weekly hours of work for which the employer would not
64 compensate the individual to the individual’s normal weekly
65 hours of work. The benefit amount, if not a multiple of $1, is
66 rounded downward to the next lower multiple of $1.
67 (8) EFFECT OF SHORT-TIME COMPENSATION BENEFITS RELATING TO
68 THE PAYMENT OF REGULAR AND EXTENDED BENEFITS.—
69 (a) The short-time compensation benefits paid to an
70 individual shall be deducted from the total benefit amount
71 established for that individual in s. 443.111(5).
72 Section 4. This act shall take effect July 1, 2021.
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CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
Committee Agenda Request
To: Senator Ed Hooper, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: March 16, 2021
I respectfully request that SJR # 1758, relating to Money Services Businesses, be placed on the:
committee agenda at your earliest possible convenience.
next committee agenda.
Senator Jeff Brandes
Florida Senate, District 24
File signed original with committee office S-020 (03/2004)
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
Meeting Date
Bill Number (if applicable)
Topic
Name _
Job Title
Address
Speaking: QFor | | Against | | Information Waive Speaking: Support Against
(The Chair will read this information into the record.)
Representing
Appearing at request of Chair: Yes No Lobbyist registered with Legislature: Yes No
m innS h Senath tr dition enco a9e public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is pa t of the public reco d for this eeting.
S-001 (10/14/14)
YOU MUST PRINT AND DELIVER THIS FORM TO THE ASSIGNED TESTIMONY ROOM
The Florida Senate
3/29/2021 APPEARANCE RECORD SB 1758
Meeting Date Bill Number (if applicable)
Topic Money Services Businesses Amendment Barcode (if applicable)
Name Russ Weigel
Job Title Commissioner
Address 00 E Gaines St Phone 850-410-9601
Street
Tallahassee FL 32301 Email Russell.Weigel@flofr.gov
city State Zip
Speaking: For Against Information Waive Speaking: In Support Against
(The Chair will read this information into the record.)
Representing Office of Financial Regulation
Appearing at request of Chair: Yes No Lobbyist registered with Legislature: Yes No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1758
INTRODUCER: Senator Brandes
SUBJECT: Money Services Businesses
DATE: March 26, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Arnold Knudson BI Favorable
2. McMillan McKay CM Favorable
3. RC
I. Summary:
SB 1758 makes several amendments to the Money Services Businesses statutes related to virtual
currency. The bill:
Defines virtual currency as a medium of exchange in electronic or digital format that is not
currency;
Subjects money transmitters to licensing requirements when transacting business involving a
virtual currency; and
Prohibits payment instruments sellers from transacting business involving virtual currency.
The bill makes additional revisions to definitions and conforming changes.
The bill takes effect January 1, 2022.
II. Present Situation:
Background on Virtual Currencies
Virtual currency is a digital representation of value that functions as a medium of exchange, a
unit of account, and a store of value other than a representation of the U.S. dollar or a foreign
currency.1 Cryptocurrency is a type of virtual currency that utilizes cryptography to secure
transactions that are digitally recorded on a distributed ledger, such as a blockchain. 2 Units of
cryptocurrency are generally referred to as coins or tokens. Distributed ledger technology uses
independent digital systems to record, share, and synchronize transactions, the details of which
are recorded in multiple places at the same time with no central data store or administration
functionality.
1
Internal Revenue Service, Rev. Rul. 2019-24, https://www.irs.gov/pub/irs-drop/rr-19-24.pdf (last visited March 26, 2021).
2
See Id.
BILL: SB 1758 Page 2
U.S. regulators generally agree that virtual currency does not have legal tender status, even when
it has an equivalent value in real currency or acts as substitute for real currency, as in the case of
convertible virtual currencies like Bitcoin. The U.S. Internal Revenue Service classifies virtual
currency as property.3 The U.S. Commodity Futures Trading Commissions (CFTC) classifies
virtual currency as a commodity.4
While the U.S. Security and Exchange Commission has recently signaled that some virtual
currencies may meet the definitions of a security subject to its regulation,5 most state securities
administrators generally agree that virtual currency is not a security, even when purchased for
investment purposes.6
Recent actions by Florida to begin addressing virtual currencies highlight the challenges
authorities face in keeping up with emerging technologies. In 2017, the Florida Money
Laundering Act was amended to include virtual currency,7 which is defined to mean a medium of
exchange in electronic or digital format that is not a coin or currency of the United States or any
other country.8 In 2018, the Chief Financial Officer announced the appointment of a
cryptocurrency chief for the purpose of ensuring that cryptocurrencies are reliable forms of
payment that do not expose Floridians to financial fraud.9 The Seminole County Tax Collector’s
Office in April 2018, began accepting bitcoin and bitcoin cash as payment for new identification
cards, license plates, and property taxes.10 In 2019, the Florida Third District Court of Appeal in
State v. Espinoza,11 a criminal case involving laundering of a virtual currency, ruled that virtual
currency falls within the express definitions of “monetary value” and “payment instruments”
under ch. 560, F.S., governing money services businesses, thereby requiring registration of
money services businesses engaged in virtual currency transactions.
Florida’s Regulation of Money Services Businesses
The Office of Financial Regulation (OFR) is responsible for the administration and enforcement
of ch. 560, F.S. Under the law, a person must be licensed or exempt from licensure to engage in
3
Internal Revenue Service, Notice 2014-21, https://www.irs.gov/pub/irs-drop/n-14-21.pdf (last visited March 26, 2021).
4
U.S. Commodities Futures Trading Commission, CFTC Backgrounder on Oversight of and Approach to Virtual Currency
Futures Markets (January 4, 2018),
https://www.cftc.gov/sites/default/files/idc/groups/public/%40customerprotection/documents/file/backgrounder_virtualcurren
cy01.pdf (last visited March 26, 2021).
5
U.S Securities and Exchange Commission, Remarks at the Yahoo Finance All Markets Summit: Crypto (June 14,
2018)(Statement of Director William Hinman), https://www.sec.gov/news/speech/speech-hinman-061418 (last visited March
26, 2021).
6
North American Securities Administrators Association, Informed Investor Advisory; Cryptocurrencies,
https://www.nasaa.org/44848/informed-investor-advisory-cryptocurrencies/ (last visited March 26, 2021).
7
Ch. 2017-155, Laws of Fla.
8
Section 896.101(2)(j), F.S.
9
Department of Financial Services, CFO Jimmy Patronis: Florida Needs Cryptocurrency Oversight (June 26, 2018)
https://www.myfloridacfo.com/sitePages/newsroom/pressRelease.aspx?id=5057 (last visited March 26, 2021).
10
Martin E. Comas, Seminole Tax Collector Joel Greenberg Hires Blockchain Director as Legislators Study Technology,
Orlando Sentinel (March 4, 2019) https://www.orlandosentinel.com/news/seminole/os-ne-seminole-tax-collector-greenberg-
blockchain-20190304-story.html (last visited March 26, 2021).
11
State v. Espinoza, 264 So.3d 1055 (Fla. 3d DCA 2019).
BILL: SB 1758 Page 3
the activities of a money services business.12 State and federally chartered financial depository
institutions, banks, credit card banks, credit unions, trust companies, associations, and
international banking corporations are exempt from licensure under ch. 560, F.S.13
Under pt. II of ch. 560, F.S., corporations, limited liability companies, limited liability
partnerships, and foreign entities who, for compensation,14 engage in, or in any manner advertise
that they engage in the activities of a ‘”payment instrument seller” or in the activity of a “money
transmitter,” must be licensed as a money services business.
Payment Instrument Sellers
A payment instrument seller is a corporation, limited liability company, limited liability
partnership, or foreign entity qualified to do business in this state which sells a payment
instrument.15 A payment instrument is a check, draft, warrant, money order, travelers check,
electronic instrument, or other instrument, payment of money, or monetary value16 whether or
not negotiable, and does not include an instrument that is redeemable by the issuer in
merchandise or service, a credit card voucher, or a letter of credit.17
Current law does not address virtual currency related to payment instrument services under
part II of ch. 560, F.S. However in State v. Espinoza,18 the court interpreted the term “monetary
value” to contemplate virtual currency under s. 560.105, F.S., governing money services
business, thus requiring licensure as a payment instrument seller with the OFR for transactions
involving a virtual currency.
Money Transmitters
A money transmitter is a corporation, limited liability company, limited liability partnership, or
foreign entity qualified to do business in this state which receives currency,19 monetary value,20
or payment instruments21 for the purpose of transmitting the same by any means, including
transmission by wire, facsimile, electronic transfer, courier, the Internet, or through bill payment
12
The term “money services business” means any person located in or doing business in this state, from this state, or into this
state from locations outside this state or country who acts as a payment instrument seller, foreign currency exchanger, check
casher, or money transmitter. See Section 560.103(22), F.S.
13
Section 560.104, F.S.
14
The term “compensation” includes profit or loss on the exchange of currency. Section 560.204(1), F.S.
15
Section 560.103(30), F.S.
16
The term “monetary value” means a medium of exchange, whether or not redeemable in currency.
17
Section 560.103(29), F.S.
18
State v. Espinoza at 1067.
19
The term “currency” means the coin and paper money of the United States or of any other country which is designated as
legal tender and which circulates and is customarily used and accepted as a medium of exchange in the country of issuance.
Currency includes United States silver certificates, United States notes, and Federal Reserve notes. Currency also includes
official foreign bank notes that are customarily used and accepted as a medium of exchange in a foreign country. See Section
560.103(11), F.S.
20
The term “monetary value” means a medium of exchange, whether or not redeemable in currency. See s. 560.103(21), F.S.
21
The term “electronic instrument” means a card, tangible object, or other form of electronic payment for the transmission or
payment of money or the exchange of monetary value, including a stored value card or device that contains a microprocessor
chip, magnetic stripe, or other means for storing information; that is prefunded; and for which the value is decremented upon
each use. See Section 560.103(14), F.S.
BILL: SB 1758 Page 4
services or other businesses that facilitate such transfer within the United States (U.S.), or to or
from the U.S.22 In contrast to the federal definition of money transmitter,23 Florida’s definition
does not include a third-party transmission requirement.
Current law does not address virtual currency related to money transmitters under
part II of ch. 560, F.S. However in State v. Espinoza,24 the court interpreted the term “medium of
exchange” within the definition of “monetary value” to contemplate virtual currency under
ch. 560, F.S., governing money services business, thus requiring licensure as a money transmitter
with the OFR for transactions involving a virtual currency.
Requirements of Payment Instrument Seller and Money Transmitter Applicants
To qualify as a payment instrument seller or money transmitter, an applicant must:
Submit an application with the OFR and pay a nonrefundable application fee. If the
application is approved, the payment instrument seller or money transmitter may, without
incurring additional licensing fees, engage in the activities of a check casher or foreign
currency exchanger as authorized under pt. III of ch. 560, F.S. Additionally, the payment
instrument seller or money transmitter may operate through authorized vendors. Authorized
vendors acting within the scope of authority conferred by the licensee are exempt from
licensure but are otherwise subject to the provisions of ch. 560, F.S.;
Submit fingerprints for live-scan processing for persons who have a controlling interest25 in
the applicant;
Demonstrate to the OFR the character and general fitness necessary to command the
confidence of the public and warrant the belief that the money services business shall be
operated lawfully and fairly; 26
Be legally authorized to do business in Florida;27
Be registered as a money services business with the Financial Crimes Enforcement Network
as required by 31 C.F.R. s. 1022.380, if applicable;28
Have an anti-money laundering program (AML) which meets the requirements of 31 C.F.R.
s. 1022.210.29 The AML program is a licensee’s written program designed to deter money
laundering and the financing of terrorist activities by requiring certain record-keeping,
reporting, and compliance measures; and
Have a corporate surety bond in an amount between $50,000 and $2 million.30 In lieu of a
corporate surety bond, an applicant may deposit collateral cash, securities, or alternative
security devices with a federally insured financial institution. 31
22
Section 560.103(23), F.S.
23
31 CFR 1010.100(ff)(5)(i)(A)(2014).
24
State v. Espinoza at 1067.
25
The term “controlling interest” is defined in section 560.127, F.S.
26
Section 560.1401(1), F.S.
27
Section 560.1401(2), F.S.
28
Section 560.1401(3), F,S
29
Section 560.1401(4), F.S.
30
Section 560.209(3)(a), F.S.
31
Section 560.209(4), F.S.
BILL: SB 1758 Page 5
Requirements of Payment Instrument Seller and Money Transmitter Licensees
A licensee must at all times maintain a net worth of at least $100,000 and an additional $10,000
per location in Florida, up to a maximum of $2 million.32
Pursuant to s. 560.123, F.S., the Florida Control of Money Laundering in Money Services
Business Act, a licensee is required to maintain certain records of each transaction involving
currency or payments instruments in order to deter the use of a money services business to
conceal proceeds from criminal activity and to ensure the availability of such records for
criminal, tax, or regulatory investigations or proceedings.
Additionally, a licensee must keep records of each transaction occurring in Florida which it
knows to involve currency or other payment instruments having a greater value than $10,000, to
involve the proceeds of specified unlawful activity, or to be designed to evade the reporting
requirements of s. 560.123, F.S., and ch. 896, F.S.33
Permissive Investments
A licensee must at all times possess permissible investments (e.g. cash, certificates of deposit,
shares in a money market mutual fund, etc.) with an aggregate market value, calculated in
accordance with generally accepted accounting principles, of at least the aggregate face amount
of all outstanding money transmissions and payment instruments issued or sold by the licensee or
an authorized vendor in the U.S.34 The OFR may waive the permissible investments requirement
if the dollar value of a licensee’s outstanding payment instruments and money transmitted do not
exceed the bond or collateral deposit posted by the licensee.35
Permissible investments include:
Cash;
Certificates of deposit or other deposit liabilities of a domestic or foreign financial
institution;
Bankers’ acceptances eligible for purchase by member banks of the Federal Reserve System;
An investment bearing a rating of one of the three highest grades as defined by a nationally
recognized rating service of such securities;
Investment securities that are obligations of the U.S., its agencies or instrumentalities, or
obligations that are guaranteed fully as to principal and interest by the U.S., or any
obligations of any state or municipality, or any political subdivision thereof;
Shares in a money market mutual fund;
A demand borrowing agreement or agreements made to a corporation or a subsidiary of a
corporation whose capital stock is listed on a national exchange;
Receivables that are due to a licensee from the licensee’s authorized vendors except those
that are more than 90 days past due or are doubtful of collection; and
Any other investment approved by rule.
32
Section 560.209(1), F.S.
33
Section 560.209(3), F.S.
34
Section 560.210(1), F.S.
35
Section 560.210(3), F.S.
BILL: SB 1758 Page 6
Current law does not address virtual currency for accounting and investment purposes under
s. 560.210, F.S.
Financial Technology Sandbox
In 2020, the Legislature created the Financial Technology Sandbox within the Office of
Financial Regulation to allow financial technology innovators to test new products and services
in a supervised, flexible, regulatory sandbox using exceptions to specified general law and
waivers of the corresponding rule requirements under defined conditions.36
Currently, Financial Technology Sandbox licensees are exempt from the licensing requirements
for payment instrument sellers and money transmitters under s. 560.204(1), F.S., only to the
extent that the requirements would prohibit a licensee from engaging in, or advertising that it
engages in, the selling or issuing of payment instruments or in the activity of a money transmitter
during the 24-month37 sandbox period.38
III. Effect of Proposed Changes:
Section 1 amends s. 559.952, F.S., related to licensing exceptions for payment instrument sellers
under the Financial Technology Sandbox, to conform with changes made to the referenced
licensing requirement statute in Section 3 of the bill.
Section 2 amends s. 560.103, F.S., to define “virtual currency” to mean a medium of exchange in
electronic or digital format that is not currency as defined in subsection (11). “Currency” is the
coin and paper money of the United States or of any other country which is designated as legal
tender and which circulates and is customarily used and accepted as a medium of exchange in the
country of issuance. The term “virtual currency” does not include a medium of exchange in
electronic or digital format that is used:
Solely within online gaming platforms with no market or application outside such gaming
platforms; or
Exclusively as part of a consumer affinity or rewards program and can be applied solely as
payment for purchases with the issuer or other designated merchants, but cannot be converted
into or redeemed for currency, monetary value, or virtual currency.
The bill amends s. 560.103(14), F.S., to revise the definition of “electronic instrument” by
inserting references to currency.
The bill amends s. 560.103(21), F.S., to revise the definition of “monetary value” by inserting
references to virtual currency, distinguishing it from currency.
The bill amends s. 560.103(23), F.S., to revise the definition of “money transmitter” by inserting
references to payment instrument, virtual currency, currency, monetary value, and payment
instruments and inserting a third-party transmission requirement. This revision has the effect of
36
See s. 559.952, F.S.
37
Section 559.952(3)(k), F.S.
38
Section 559.952(4)(11), F.S.
BILL: SB 1758 Page 7
subjecting a money transmitter to licensing requirements for transactions involving a virtual
currency.
The bill amends s. 560.103(29), F.S., to revise the definition of “payment instrument” by
inserting references to methods of transmission and exchange and inserting references to
currency. This revision, paired with the other revisions to definitions in this section, has the
effect of prohibiting payment instrument sellers from selling, issuing, providing, or delivering
virtual currency.
The bill amends s. 560.103(35), F.S., to revise the definition of “stored value” by inserting
references to currency.
Section 3 amends s. 560.204, F.S., to make a technical change to a reference to payment
instrument sellers and to revise the definition of “compensation” by inserting references to
monetary value and virtual currency.
Section 4 amends s. 560.210, F.S., related to permissible investments, to require a money
transmitter to hold virtual currency in the same type and amount as owed or obligated to the
other location of person. The held virtual currency may not be calculated as a permissible
investment for purposes of equaling the aggregate face amount of all outstanding money
transmission issued by the licensee.
Section 5 provides an effective date of January 1, 2022.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
BILL: SB 1758 Page 8
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Section 560.143, F.S., requires the following fees for money services businesses:
For initial licensure:
o Application fee of $375.
o Fingerprinting fees, to authorized live scan vendors, that average $65 per
individual with a controlling interest.
o Fingerprint retention fees as required by rule - $6 per individual with a controlling
interest.
Bi-annual renewal fees:
o $750 renewal fee
o Fingerprint retention fees as required by rule - $6 per individual with a controlling
interest.
Additionally, licensees are required to reimburse the OFR for examination expenses. The
average examination fee imposed by the office for fiscal year 2019-20 (pre-COVID) was
$3800.39 This fee would be imposed on average once every five years.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 559.952, 560.103,
560.204, and 560.210.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
39
Office of Financial Regulation, Bill Analysis of SB 1758 (March 5, 2021)(On file with the Senate Committee on Banking
and Insurance.
BILL: SB 1758 Page 9
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2021 SB 1758 Florida Senate - 2021 SB 1758
By Senator Brandes
24-01390-21 20211758__ 24-01390-21 20211758__
1 A bill to be entitled 30 the applicant’s background. The office may prorate the license
2 An act relating to money services businesses; amending 31 renewal fee for an extension granted under subsection (7).
3 s. 559.952, F.S.; revising exceptions for a licensee 32 2. Section 516.05(1) and (2), except that the office shall
4 during the Financial Technology Sandbox period; 33 investigate the applicant’s background.
5 amending s. 560.103, F.S.; revising and providing 34 3. Section 560.109, only to the extent that the section
6 definitions; amending s. 560.204, F.S.; prohibiting 35 requires the office to examine a licensee at least once every 5
7 certain activities by a person without obtaining a 36 years.
8 license; revising the definition of the term 37 4. Section 560.118(2).
9 “compensation”; amending s. 560.210, F.S.; providing 38 5. Section 560.125(1), only to the extent that the
10 requirements for a money transmitter that receives 39 subsection would prohibit a licensee from engaging in the
11 virtual currency; excluding virtual currency in the 40 business of a money transmitter or payment instrument seller
12 calculation of permissible investments; providing an 41 during the sandbox period.
13 effective date. 42 6. Section 560.125(2), only to the extent that the
14 43 subsection would prohibit a licensee from appointing an
15 Be It Enacted by the Legislature of the State of Florida: 44 authorized vendor during the sandbox period. Any authorized
16 45 vendor of such a licensee during the sandbox period remains
17 Section 1. Paragraph (a) of subsection (4) of section 46 liable to the holder or remitter.
18 559.952, Florida Statutes, is amended to read: 47 7. Section 560.128.
19 559.952 Financial Technology Sandbox.— 48 8. Section 560.141, except for s. 560.141(1)(a)1., 3., 7.-
20 (4) EXCEPTIONS TO GENERAL LAW AND WAIVERS OF RULE 49 10. and (b), (c), and (d).
21 REQUIREMENTS.— 50 9. Section 560.142(1) and (2), except that the office may
22 (a) Notwithstanding any other law, upon approval of a 51 prorate, but may not entirely eliminate, the license renewal
23 Financial Technology Sandbox application, the following 52 fees in s. 560.143 for an extension granted under subsection
24 provisions and corresponding rule requirements are not 53 (7).
25 applicable to the licensee during the sandbox period: 54 10. Section 560.143(2), only to the extent necessary for
26 1. Section 516.03(1), except for the application fee, the 55 proration of the renewal fee under subparagraph 9.
27 investigation fee, the requirement to provide the social 56 11. Section 560.204(1), only to the extent that the
28 security numbers of control persons, evidence of liquid assets 57 subsection would prohibit a licensee from engaging in, or
29 of at least $25,000, and the office’s authority to investigate 58 advertising that it engages in, the selling or issuing of
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Florida Senate - 2021 SB 1758 Florida Senate - 2021 SB 1758
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59 payment instruments or in the activity of a payment instrument 88 currency instruments for the purpose of acting as an
60 seller or money transmitter during the sandbox period. 89 intermediary to transmit currency, monetary value, a payment
61 12. Section 560.205(2). 90 instrument, or virtual currency from one person to another
62 13. Section 560.208(2). 91 location or person transmitting the same by any means, including
63 14. Section 560.209, only to the extent that the office may 92 transmission by wire, facsimile, electronic transfer, courier,
64 modify, but may not entirely eliminate, the net worth, corporate 93 the Internet, or through bill payment services or other
65 surety bond, and collateral deposit amounts required under that 94 businesses that facilitate such transfer within this country, or
66 section. The modified amounts must be in such lower amounts that 95 to or from this country.
67 the office determines to be commensurate with the factors under 96 (29) “Payment instrument” means a check, draft, warrant,
68 paragraph (5)(c) and the maximum number of consumers authorized 97 money order, travelers check, electronic instrument, or other
69 to receive the financial product or service under this section. 98 instrument utilized for the transmission, exchange, or payment
70 Section 2. Subsections (14), (21), (23), (29), and (35) of 99 of currency money, or monetary value, regardless of whether it
71 section 560.103, Florida Statutes, are amended, and subsection 100 is or not negotiable. The term does not include an instrument
72 (36) is added to that section, to read: 101 that is redeemable by the issuer in merchandise or service, a
73 560.103 Definitions.—As used in this chapter, the term: 102 credit card voucher, or a letter of credit.
74 (14) “Electronic instrument” means a card, tangible object, 103 (35) “Stored value” means currency funds or monetary value
75 or other form of electronic payment used for the transmission, 104 represented in digital electronic format, regardless of whether
76 or payment, of money or the exchange of currency or monetary 105 it is or not specially encrypted, and stored or capable of
77 value, including a stored value card or device that contains a 106 storage on electronic media in such a way as to be retrievable
78 microprocessor chip, magnetic stripe, or other means for storing 107 and transferred electronically.
79 information; that is prefunded; and for which the value is 108 (36) “Virtual currency” means a medium of exchange in
80 decremented upon each use. 109 electronic or digital format that is not currency as defined in
81 (21) “Monetary value” means a medium of exchange, other 110 subsection (11). The term does not include a medium of exchange
82 than virtual currency, regardless of whether it is or not 111 in electronic or digital format that is used:
83 redeemable in currency. 112 (a) Solely within online gaming platforms with no market or
84 (23) “Money transmitter” means a corporation, limited 113 application outside such gaming platforms; or
85 liability company, limited liability partnership, or foreign 114 (b) Exclusively as part of a consumer affinity or rewards
86 entity qualified to do business in this state which receives 115 program and can be applied solely as payment for purchases with
87 currency, monetary value, a or payment instrument, or virtual 116 the issuer or other designated merchants, but cannot be
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117 converted into or redeemed for currency, monetary value, or
118 virtual currency.
119 Section 3. Subsection (1) of section 560.204, Florida
120 Statutes, is amended to read:
121 560.204 License required.—
122 (1) Unless exempted, a person may not engage in, or in any
123 manner advertise that they engage in, the selling or issuing of
124 payment instruments or in the activity of a payment instrument
125 seller or money transmitter, for compensation, without first
126 obtaining a license under this part. For purposes of this
127 subsection section, the term “compensation” includes profit or
128 loss on the exchange of currency, monetary value, or virtual
129 currency.
130 Section 4. Present subsections (2) and (3) of section
131 560.210, Florida Statutes, are redesignated as subsections (3)
132 and (4), respectively, and a new subsection (2) is added to that
133 section, to read:
134 560.210 Permissible investments.—
135 (2) Each money transmitter that receives virtual currency,
136 either directly or through an authorized vendor, for the purpose
137 of transmitting such virtual currency from one person to another
138 location or person must at all times hold virtual currency of
139 the same type and amount owed or obligated to the other location
140 or person. Virtual currency received and held under this
141 subsection is not included in the amount of outstanding money
142 transmissions for purposes of calculating the permissible
143 investments required by subsection (1).
144 Section 5. This act shall take effect January 1, 2022.
Page 5 of 5
CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
Committee Agenda Request
To: Senator Ed Hooper, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: March 3, 2021
I respectfully request that Senate Bill #1390, relating to Capital Investment Tax Credit, be
placed on the:
committee agenda at your earliest possible convenience.
next committee agenda.
Please let me know if you have any questions.
Sincerely,
Joe Gruters
Cc: Todd McKay, Staff Director
Kathryn Vigrass, Committee Administrative Assistant
File signed original with committee office S-020 (03/2004)
YOU MUST PRINT AND DELIVER THIS FOR TO THE ASSIGNED TESTIMONY ROOM
The Florida Senate
3/29/21 APPEARANCE RECORD 1390
Meeting Date Bill Number (if applicable)
Topic Capitallnvestment Tax Credit Amendment Barcode (if applicable)
Name Will McKinley
Job Title Presi ent
Address 106 E- College Ave., Suite 1100 Phone (850)681-1980
Street
Tallahassee FL 32301 Email w ll@poolemckinley.com
City State Zip
Speaking: For Against Information Waive Speaking: In Support Against
(The Chair will read this information into the record.)
R presenting Entertainment Software Association
Appearing at request of Chair: Yes [ ] No Lobbyist registered with Legislature: Yes No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
Thic fnrm ic nsrtnf fha ntihllr' rarnrri fnr this mppflnrt S-001 (10/14/14)
YOU MUST PRINT AND DELIVER THIS FORM TO THE ASSIGNED TESTIMONY ROOM
The Florida Senate
3/29/21 APPEARANCE RECORD 1390
Bill Number (if applicable)
Meeting Date
TOpjC Capital Investment Tax Credit Amendment Barcode (if applicable)
Name Angela De psey
Job Title V e President
Adctress 106 E. College A e., Suite 1100 Phone (850) 681-1980
Street
Tallahassee FL 32301 |zmail angela@poolemckinley.co
City State Zip
Information Waive Speaking: l l In Support Against
Speaking: |For (Against (The Chair will read this information into the record.)
Representing Motion Picture Association
Yes No
Appearing at request of Chair: LJYes Lobbyist
l»LINo Lobbyregistered with
st reg sterea w nLegislature:
Legisla ure: i[ _J
jYes
res l_iNo
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
S-001 (10/14/14)
This form Is oart of the nubile record for this meeting.
YOU MUST PRINT A D DELIVER THIS FORM TO THE ASSIGNED TESTIMONY ROOM
The Florida Senate
3/29/21 APPEARANCE RECORD 1390
Meeting Date Bill Number (if applicable)
Topic capital Investment Tax Credit Amendment Barcode (if applicable)
lx|ame Carolyn Johnson
Job Title Senior Policy Director
Address 136 S Bronough Street phone 850-521-1200
Street
Tallahassee FL 32301 Email cjohnson@flchamber.com
City State Zip
Speaking: For Against Information Waive Speaking: In Support Against
(The Chair will read this information into the record.)
Representing Florida Chamber of Commerce
Appearing at request of Chair: Yes l lNo Lobbyist registered with Legislature: Yes No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
APPEARANCE RECORD
eliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meetin
eeting Dat Bill Number (if applicable)
Topic ent Barcode (if appli able)
Name
Job Title
Address
Stre
City
Speaking: [ For | | Against Speaking: | | In Support | | Against
will read this information into the record.)
Representing
Appearing at request of Chair: Yes I I No Lobbyist registered with Legislature:
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
YOU MUST PRINT A D DELIVER THIS FORM TO THE ASSIGNED TESTIMONY ROOM
The Florida Senate
3/29/21 APPEARANCE RECORD SB 1390
Meeting Date Bill Number (if applicable)
Topic Capital Investment Tax Credit
Amendment Barcode (if applicable)
Name Brewster Bevis
Job Title Senior Vice President
Address 516 N. Adams St Phone 224-7173
Street
Tallahassee
__ FL 32301 Email bbevis@aif.com
State Zip
Speaking: For Against Information Waive Speaking: In Support Against
(The Chair will read this information into the record.)
Representing Associcated Industries of Florida
Appearing at request of Chair: Yes l l No Lobbyist registered with Legislature: Yes | No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1390
INTRODUCER: Commerce and Tourism Committee and Senator Gruters
SUBJECT: Capital Investment Tax Credit
DATE: March 30, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Reeve McKay CM Fav/CS
2. FT
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
SB 1390 amends s. 220.191, F.S., to allow eligible projects that create or develop intellectual
property to qualify for the Capital Investment Tax Credit.
Under the bill, a project that creates intellectual property is eligible for a tax credit equal to 20
percent of the project’s eligible capital costs if the cumulative intellectual property investment of
one or more projects is in aggregate of at least $50 million per year for 3 years, or an aggregate
of $150 million over a 3-year period. A business with a cumulative intellectual property
investment of an aggregate of $500 million over a 3-year period is eligible for a tax credit equal
to 26 percent of the wages or direct production costs generated by the project. These credits may
be used by the business or any corporation affiliated with the business. The bill provides
conditions for the revocation and repayment of such tax credits.
A qualifying business that establishes a certain intellectual property project is eligible for a tax
credit equal to up to 100 percent of its eligible production infrastructure costs if such costs
exceed $100 million during a period of up to 10 years.
A qualifying business that establishes a “strategic priority project,” an intellectual property
project that demonstrates the potential for measurable value to the state, is eligible for a tax
credit equal to 20 percent of its eligible capital costs if the costs are at least $75 million.
BILL: SB 1390 Page 2
Tax credits may be applied to the qualifying business’s corporate income tax liability, sales and
use tax liability, or both.
The bill takes effect July 1, 2021.
II. Present Situation:
Capital Investment Tax Credit
The Capital Investment Tax Credit (CITC), established by the Legislature in 1998 to attract and
grow capital-intensive industries in the state, provides an annual tax credit against corporate
income tax or insurance premium tax liabilities generated by a qualifying project.1
Eligible Projects
Section 220.191(1)(g), F.S., defines the projects that are eligible for the program. They include:
A new or expanded facility in a designated high-impact sector2 that creates at least 100 new
jobs. High-impact sector projects fall into one of three tiers, depending on the project’s
cumulative capital investment;
A new or expanded facility in a target industry3 that creates or retains at least 1,000 jobs,
provided that at least 100 of those jobs are new, pay an annual average wage of at least 130
percent of the average private sector wage in the area, and result in a cumulative capital
investment of at least $100 million; and
A new or expanded headquarters facility located in an enterprise zone and brownfield area
that creates at least 1,500 jobs which on average pay at least 200 percent of the statewide
average annual private sector wage and makes a cumulative capital investment in this state of
at least $250 million.
Tax Credits Allowable
Qualified businesses are generally allowed an annual tax credit equal to 5 percent of a project’s
eligible capital costs generated by a project for up to 20 years.4
The annual tax credit limit for the three tiers of high-impact sector projects may not exceed the
following percentages of the annual corporate income or insurance premium tax liability
generated by or arising out of a qualifying project:5
1
Chapter 98-61, Law of Fla.
2
The sectors currently designated as high impact are clean energy, life sciences, financial services, information technology,
silicon technology, transportation equipment manufacturing, and corporate headquarters. See Department of Economic
Opportunity, 2020 Annual Incentives Report, 52, available at https://floridajobs.org/docs/default-source/reports-and-
legislation/2019-2020-annual-incentives-report-final.pdf?sfvrsn=af674ab0_2 (last visited Mar. 30, 2021).
3
The current qualified target industries are aviation and aerospace; corporate headquarters; clean technology; defense and
homeland security; financial and professional services; global logistics and trade; information technology; life sciences;
manufacturing; and research and development. See Department of Economic Opportunity, 2020 Annual Incentives Report,
12, available at https://floridajobs.org/docs/default-source/reports-and-legislation/2019-2020-annual-incentives-report-
final.pdf?sfvrsn=af674ab0_2 (last visited Mar. 30, 2021).
4
Section 220.191(2)(a), F.S. Eligible capital costs include all expenses incurred in the acquisition, construction, installation,
and equipping of a project from the beginning of construction to the commencement of operations.
5
Id.
BILL: SB 1390 Page 3
100 percent for a qualifying project which results in a cumulative capital investment of at
least $100 million;
75 percent for a qualifying project which results in a cumulative capital investment of at least
$50 million but less than $100 million; or
50 percent for a qualifying project which results in a cumulative capital investment of at least
$25 million but less than $50 million.
Target industry projects are eligible for an annual credit equal to one-half of the increase in the
tax liability arising out of the project without regard to the amount of eligible capital costs, but
may only receive a tax credit for 5 years.6
Headquarters facility projects may take an annual credit equal to the lessor of 5 percent of the
project’s eligible capital costs or $15 million. Tax credits for headquarters facility projects may
only be applied against corporate income tax liability.7
Tax Credit Carryover and Transfer
Only recipients of a tax credit associated with a corporate headquarters facility project or certain
high-impact sector projects are permitted to carry forward unused credit. If the full tax credit
associated with a corporate headquarters facility is not used in any one year, the taxpayer can
carry the unused credit forward to any year within the normal 20-year window.8 A high-impact
sector business that meets the $100 million capital investment threshold that was unable to fully
use its available credit between years 1 and 20 is permitted to use that credit in years 21 through
30 following the commencement of operations.9
Generally, tax credits may not be transferred or sold to other businesses. However, if a qualifying
project establishes a new solar panel manufacturing facility that generates at least 400 jobs
within 6 months of commencing operations and pays those jobs at least $50,000, it may transfer
its annual tax credit to another business. A business receiving the transferred credits may only
use the credits in the year received.10
Issuance of Tax Credits
The Department of Economic Opportunity (DEO) must certify a business as eligible to receive a
tax credit before the commencement of operations of a qualifying project. If a business is
certified, the DEO will enter into an agreement with the business that specifies the planned
commencement date of operations and the total amount of credit the business can expect if the
project proceeds as planned. Agreements are drafted so that a qualified business’s annual credit
amount begins on the date of commencement of operations, beginning the 20-year credit period.
If for some reason operations do not commence on time, the 20-year window is not adjusted.11
6
Section 220.191(1)(g)2., F.S.
7
Section 220.191(3)(a), F.S.
8
Section 220.191(3)(b), F.S.
9
Section 220.191(2)(d), F.S.
10
Section 220.191(2)(c), F.S.
11
Florida Senate Committee on Finance and Tax, Issue Brief 2012-2014: Review of the Capital Investment Tax Credit
(September 2011), available at https://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-204ft.pdf (last
visited Mar. 30, 2021).
BILL: SB 1390 Page 4
Before receiving a tax credit each year, a qualifying business must achieve and maintain its
minimum employment goals beginning with the commencement of operations of a qualifying
project.12
Economic Impact
According to the DEO, there were 61 active CITC awardees with 32 reporting performance as of
Fiscal Year 2019-2020; the DEO confirmed 2,887 jobs created and over $308 million in capital
investment in said fiscal year.13 Over $67 million in tax credits were approved to be claimed by
qualified business in calendar year 2019.14
III. Effect of Proposed Changes:
The bill amends s. 220.191, F.S., to allow eligible projects that create or develop intellectual
property to qualify for the Capital Investment Tax Credit; the bill establishes four different tax
credits available to qualifying business that establish an intellectual property project.
Intellectual property includes copyrightable projects for the development of computer software
or multimedia application and related expansion content; internal development platforms; cloud-
based services; and data visualization and sound synchronization technologies for digital media.
Eligible capital costs for intellectual property projects are all expenses incurred in connection
with the project from the start date of the project to the completion date of the project. Such
expenses include, but are not limited to, wages, salaries, employer-paid taxes and benefits or
other compensation paid to legal residents of Florida, as well as direct production costs paid to
any business authorized to do business in Florida.
Direct production costs are direct expenses related to the preproduction, development or filming,
and postproduction of intellectual property, not including the distribution and marketing of
intellectual property.
Production infrastructure costs are the cost of property, including buildings, facilities, studios,
soundstages, and equipment, intended to be used for the development of multiple intellectual
property projects.
A project’s cumulative intellectual property investment is the total investment made from the
start date of the project to the completion date of the project in buildings or equipment; wages,
salaries, employer-paid taxes and benefits; and direct production costs paid to any business,
regardless of its location.
The annual average wage of an intellectual property project’s jobs must be at least 150 percent of
the average private sector wage in the area. A project that creates intellectual property may
consist of one or more projects with different start and completion dates.
12
Section 220.191(4), F.S.
13
Department of Economic Opportunity, 2020 Annual Incentives Report, 8, available at https://floridajobs.org/docs/default-
source/reports-and-legislation/2019-2020-annual-incentives-report-final.pdf?sfvrsn=af674ab0_2 (last visited Mar. 30, 2021).
14
Id at 49.
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A business that establishes an intellectual property project is eligible for a tax credit equal to 20
percent of the project’s eligible capital costs if the cumulative intellectual property investment of
one or more is at least $50 million dollars per year for 3 consecutive years, or an aggregate of
$150 million over a 3-year period. A business with a cumulative intellectual property investment
of an aggregate of $500 million over a 3-year period is eligible for a tax credit equal to 26
percent of the wages or direct production costs generated by the project.
Such tax credits may be used in whole or in part by the qualifying business or any corporation
associated with the business, or may be transferred to any third party within 1 year. Taxpayers
electing to use the tax credit may do so in any one year or years beginning with the
commencement of the project and ending the second year after the completion of the project;
recipients of a transferred credit must use the credit in the year received.
If a business that receives a 20 percent tax credit fails to meet the required level of cumulative
intellectual property investment, any previously issued tax credit will be revoked and rescinded.
If a business that receives a 26 percent tax credit fails to meet the investment requirements, any
tax credit amount that exceeds 20 percent will be revoked and rescinded. A business that uses or
transfers a credit prior to its revocation and rescission must repay the credit with interest,
pursuant to s. 213.235, F.S., and a 10 percent penalty.
A qualifying business that establishes an intellectual property project is eligible for a tax credit
equal to up to 100 percent of its eligible production infrastructure costs if such costs exceed $100
million during a period of up to 10 years. Tax credits may not exceed 100 percent of the
business’s corporate income and sales and use tax liability. A business may not carry its tax
credit forward or backward; however, if a business does not have sufficient tax liability to fully
use its credit in any given year, the business may use any unused amounts between the 11th and
20th years following the project’s commencement of operations.
A qualifying business that establishes a “strategic priority project,” an intellectual property
project that demonstrates the potential for measurable value to the state, is eligible for a tax
credit equal to 20 percent of the eligible capital costs if the capital costs are at least $75 million.
There is no annual average wage requirement for a strategic priority project’s jobs.
Upon being granted a tax credit for a strategic priority project, taxpayers must elect to either use
or transfer the tax credit. Taxpayers electing to use the tax credit may do so in any one year or
years beginning with the commencement of the project and ending the second year after the
completion of the project. Taxpayers electing to transfer the credit must do so within 1 year;
recipients must use the credit in the year received.
Tax credits issued to businesses that establish an intellectual property project or a strategic
priority project may be applied to the qualifying business’s corporate income tax liability, sales
and use tax liability, or both.
The DEO must first certify a business as eligible to receive a tax credit under the CITC before
the commencement of operations or the completion date of a qualifying project. Before receiving
a tax credit each year, a qualifying business must achieve and maintain its minimum employment
BILL: SB 1390 Page 6
goals beginning with the commencement of operations or the completion date of a qualifying
project.
The bill updates a cross-reference in s. 288.1089, F.S., referring to the definition of “cumulative
investment” in s. 220.191, F.S.
The bill takes effect July 1, 2021.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has not yet determined the fiscal impact of the bill.
B. Private Sector Impact:
Qualified businesses that establish qualified intellectual property projects will realize
savings on corporate income tax and sales and use tax liabilities.
C. Government Sector Impact:
The Department of Revenue estimates that it will require $77,529 in nonrecurring funds
to modify its software and databases in order to implement the bill.
VI. Technical Deficiencies:
None.
BILL: SB 1390 Page 7
VII. Related Issues:
The bill makes several references to, but does not define, the start date and completion of an
intellectual property project. For example, lines 69-71 amend the definition of “eligible capital
costs” to include expenses incurred by an intellectual property project during the period from the
start date of the project to the completion of the project. It is unclear if this period is intended to
begin on the date the project planning begins or the date development work begins. Similarly, the
completion of a project could be interpreted as the date the development of a project concludes
or when the project is delivered to a client.
Eligible capital costs for intellectual property projects include wages, salaries, or other
compensation paid to legal residents of Florida, but the bill does not specify whether the wages
and salaries are limited to wages and salaries of the project’s jobs.
Under the bill, a project that creates or develops intellectual property may consist of one or more
projects with different start and completion dates. It is unclear if all the jobs created by a
business with multiple projects must pay the annual average wage requirement of 150 percent of
the average private sector wage in that area. Additionally, it is unclear if a qualifying business
with multiple projects would be eligible to claim a tax credit for each qualifying project.
Lines 202-208 define a “strategic priority project” as an intellectual property project that
demonstrates the potential for “measurable value” to the state, but it is unclear how and by whom
“value to the state” will be measured.
The bill provides for a tax credit for intellectual property projects, production infrastructure
projects, and strategic priority projects in ss. 220.191(3)(a), (4), and (5)(a), F.S. Existing
language for CITC tax credits offered to other projects requires projects to meet certain job
creation goals in order to receive an annual tax credit for a period of 20 years; the bill does not
require intellectual property projects to create a certain number of jobs in order to receive a tax
credit.
Lines 310-327 and 396-412 authorize businesses with qualified intellectual property projects or
strategic priority projects that receive a tax credit to either use or transfer the tax credit.
However, the bill does not specify how many transfers may be made each year or how many
taxpayers the credits may be transferred to.
Lines 458-463 require a qualifying business to achieve and maintain the minimum employment
goals beginning with the commencement of operations or the completion date of a qualifying
project before receiving a tax credit. Lines 464-475 require the DEO to certify a business as
eligible to receive a tax credit under the CITC before the commencement of operations or the
completion date of a qualifying project. As written, it is unclear whether the option to use the
completion date of a project for certification and to meet the minimum employment goals only
applies to intellectual property projects. Section 220.191(2)(a), F.S., for example, provides that a
tax credit shall be granted to a qualified business for a period of 20 years beginning with the
commencement of operations of the project.
BILL: SB 1390 Page 8
The Department of Revenue requests emergency rulemaking authority to implement the bill, and
recommends the following language:
“(1) The Department of Revenue is authorized, and all conditions are deemed met, to
adopt emergency rules pursuant to s. 120.54(4), Florida Statutes, for the purposes of
administering this act.
(2) Notwithstanding any other law, emergency rules adopted pursuant to subsection (1)
are effective for 6 months after adoption and may be renewed during the pendency of
procedures to adopt permanent rules addressing the subject of the emergency rules.
(3) This section shall take effect upon this act becoming law and expires July 1, 2022.”
VIII. Statutes Affected:
This bill substantially amends sections 220.191 and 288.1089 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on March 29, 2021:
The committee substitute:
Defines “cumulative intellectual property investment,” “direct production costs,”
“employer-paid taxes and benefits,” and “production infrastructure costs”;
Expands the investment requirements that a business that establishes an intellectual
property project must meet in order to receive a 20 percent tax credit;
Creates a tax credit equal to 26 percent of a project’s wages and direct production
costs for projects that meet certain investment requirements;
Creates a tax credit equal to up to 100 percent of a project’s production infrastructure
costs for projects that meet certain production infrastructure cost requirements;
Provides that certain tax credits may be used by a business or any corporation
affiliated with the business; and
Provides conditions for the revocation and repayment of certain tax credits.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
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LEGISLATIVE ACTION
Senate . House
Comm: RCS .
03/30/2021 .
.
.
.
The Committee on Commerce and Tourism (Gruters) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Section 220.191, Florida Statutes, is amended to
6 read:
7 220.191 Capital investment tax credit.—
8 (1) DEFINITIONS.—As used in For purposes of this section,
9 the term:
10 (a) “Commencement of operations” means the beginning of
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11 active operations by a qualifying business of the principal
12 function for which a qualifying project was constructed.
13 (b) “Cumulative capital investment” means the total capital
14 investment in land, buildings, and equipment made in connection
15 with a qualifying project during the period from the beginning
16 of construction of the project to the commencement of
17 operations.
18 (c) “Cumulative intellectual property investment” means the
19 total investment for the development of intellectual property
20 during the period from the start date of the project to the
21 completion of the project in buildings or equipment; in wages,
22 salaries, or other compensation paid to employees, including
23 amounts paid through an employee leasing company and any
24 employer-paid taxes and benefits; and in the direct production
25 costs paid to any business, regardless of location.
26 (d) “Direct production costs” means direct expenses related
27 to the preproduction, development or filming, and postproduction
28 of intellectual property. The term does not include the
29 distribution and marketing of intellectual property.
30 (e)1.(c) “Eligible capital costs” means all expenses
31 incurred by a qualifying business in connection with:
32 a. The acquisition, construction, installation, and
33 equipping of a qualifying project during the period from the
34 beginning of construction of the project to the commencement of
35 operations; or
36 b. A qualifying project for the development or creation of
37 intellectual property during the period from the start date of
38 the project to the completion of the project.
39 2. The term includes, including, but is not limited to:
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40 a.1. The costs of acquiring, constructing, installing,
41 equipping, and financing a qualifying project, including all
42 obligations incurred for labor and obligations to contractors,
43 subcontractors, builders, and materialmen.
44 b.2. The costs of acquiring land or rights to land and any
45 cost incidental thereto, including recording fees.
46 c.3. The costs of architectural and engineering services,
47 including test borings, surveys, estimates, plans and
48 specifications, preliminary investigations, environmental
49 mitigation, and supervision of construction, as well as the
50 performance of all duties required by or consequent to the
51 acquisition, construction, installation, and equipping of a
52 qualifying project.
53 d.4. The costs associated with the installation of fixtures
54 and equipment; surveys, including archaeological and
55 environmental surveys; site tests and inspections; subsurface
56 site work and excavation; removal of structures, roadways, and
57 other surface obstructions; filling, grading, paving, and
58 provisions for drainage, storm water retention, and installation
59 of utilities, including water, sewer, sewage treatment, gas,
60 electricity, communications, and similar facilities; and offsite
61 construction of utility extensions to the boundaries of the
62 property.
63 e. For the development or creation of intellectual
64 property, the wages, salaries, employer-paid taxes and benefits,
65 or other compensation paid to legal residents of this state,
66 including amounts paid through a loan-out company, an employee
67 leasing company, or a payroll service company; and the direct
68 production costs paid to any business authorized to do business
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69 in this state.
70
71 Eligible capital costs do shall not include the cost of any
72 property previously owned or leased by the qualifying business.
73 (f) “Employer-paid taxes and benefits” includes social
74 security tax; Medicare tax; federal unemployment and state
75 reemployment assistance taxes; workers’ compensation premiums
76 and benefits; vacation pay, holiday pay, and sick pay; payroll-
77 handling fees; mileage; car allowances; housing allowances; and
78 per diem.
79 (g)(d) “Income generated by or arising out of the
80 qualifying project” means the qualifying project’s annual
81 taxable income as determined by generally accepted accounting
82 principles and under s. 220.13.
83 (h)(e) “Intellectual property” means a copyrightable
84 project for which the eligible capital costs are principally
85 paid directly or indirectly for the development or creation of
86 the project. As used in this paragraph, the term “copyrightable
87 project” includes, but is not limited to, a copyrightable
88 software or multimedia application and its expansion content
89 made available to an end user, which includes, but is not
90 limited to, technological activities relating to updating the
91 project; internal development platforms that support the
92 production of multiple applications; cloud-based services that
93 support the functionality of multiple applications; and
94 copyrightable projects that include, but are not limited to,
95 digital visualization and sound synchronization technologies for
96 digital media, or that are necessary for the production of
97 scripted content intended for theatrical, streaming, or
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98 television distribution.
99 (i) “Jobs” means full-time equivalent positions, as that
100 term is consistent with terms used by the Department of Economic
101 Opportunity and the United States Department of Labor for
102 purposes of reemployment assistance tax administration and
103 employment estimation, resulting directly from a project in this
104 state. The term does not include temporary construction jobs
105 involved in the construction of the project facility.
106 (j) “Production infrastructure costs” means the costs of
107 property intended to be used for the development of multiple
108 intellectual property projects. Such investment property
109 includes, but is not limited to, buildings, facilities, studios,
110 soundstages, and any ancillary machinery and equipment used for
111 the development of intellectual property, regardless of whether
112 the property is a fixture or is otherwise affixed to or
113 incorporated into real property. The term does not include the
114 direct production costs related to a specific intellectual
115 property project.
116 (k)(f) “Qualifying business” means a business which
117 establishes a qualifying project or strategic priority project
118 in this state and which is certified by the Department of
119 Economic Opportunity to receive tax credits pursuant to this
120 section.
121 (l)(g) “Qualifying project” means a facility or project in
122 this state meeting one or more of the following criteria:
123 1. A new or expanding facility in this state which creates
124 at least 100 new jobs in this state and is in one of the high-
125 impact sectors identified by Enterprise Florida, Inc., and
126 certified by the Department of Economic Opportunity pursuant to
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127 s. 288.108(6), including, but not limited to, aviation,
128 aerospace, automotive, and silicon technology industries.
129 However, between July 1, 2011, and June 30, 2014, the
130 requirement that a facility be in a high-impact sector is waived
131 for any otherwise eligible business from another state which
132 locates all or a portion of its business to a Disproportionally
133 Affected County. For purposes of this section, the term
134 “Disproportionally Affected County” means Bay County, Escambia
135 County, Franklin County, Gulf County, Okaloosa County, Santa
136 Rosa County, Walton County, or Wakulla County.
137 2. A new or expanded facility in this state which is
138 engaged in a target industry designated pursuant to the
139 procedure specified in s. 288.106(2) and which is induced by
140 this credit to create or retain at least 1,000 jobs in this
141 state, provided that at least 100 of those jobs are new, pay an
142 annual average wage of at least 130 percent of the average
143 private sector wage in the area as defined in s. 288.106(2), and
144 make a cumulative capital investment of at least $100 million.
145 Jobs may be considered retained only if there is significant
146 evidence that the loss of jobs is imminent. Notwithstanding
147 subsection (2), annual credits against the tax imposed by this
148 chapter may not exceed 50 percent of the increased annual
149 corporate income tax liability or the premium tax liability
150 generated by or arising out of a project qualifying under this
151 subparagraph. A facility that qualifies under this subparagraph
152 for an annual credit against the tax imposed by this chapter may
153 take the tax credit for a period not to exceed 5 years.
154 3. A new or expanded headquarters facility in this state
155 which locates in an enterprise zone and brownfield area and is
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156 induced by this credit to create at least 1,500 jobs which on
157 average pay at least 200 percent of the statewide average annual
158 private sector wage, as published by the Department of Economic
159 Opportunity, and which new or expanded headquarters facility
160 makes a cumulative capital investment in this state of at least
161 $250 million.
162 4. A project involving the development or creation of
163 intellectual property, provided that the project’s jobs in this
164 state pay an annual average wage of at least 150 percent of the
165 average private sector wage in the area as defined in s.
166 288.106. A project that qualifies under this subparagraph may
167 consist of one or more projects with different start and
168 completion dates.
169 (m) “Strategic priority project” means a qualifying project
170 identified in subparagraph (l)4. which demonstrates the
171 potential for measurable value to this state, including, but not
172 limited to, marketing this state as a visitor destination,
173 making improvements to infrastructure supporting future industry
174 use, or providing measurable technology skills development for
175 residents of this state.
176 (2)(a) An annual credit against the tax imposed by this
177 chapter shall be granted to any qualifying business in an amount
178 equal to 5 percent of the eligible capital costs generated by a
179 qualifying project, for a period not to exceed 20 years
180 beginning with the commencement of operations of the project.
181 Unless assigned as described in this subsection, the tax credit
182 shall be granted against only the corporate income tax liability
183 or the premium tax liability generated by or arising out of the
184 qualifying project, and the sum of all tax credits provided
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185 pursuant to this section shall not exceed 100 percent of the
186 eligible capital costs of the project. In no event may any
187 credit granted under this section be carried forward or backward
188 by any qualifying business with respect to a subsequent or prior
189 year. The annual tax credit granted under this section shall not
190 exceed the following percentages of the annual corporate income
191 tax liability or the premium tax liability generated by or
192 arising out of a qualifying project:
193 1. One hundred percent for a qualifying project which
194 results in a cumulative capital investment of at least $100
195 million.
196 2. Seventy-five percent for a qualifying project which
197 results in a cumulative capital investment of at least $50
198 million but less than $100 million.
199 3. Fifty percent for a qualifying project which results in
200 a cumulative capital investment of at least $25 million but less
201 than $50 million.
202 (b) A qualifying project which results in a cumulative
203 capital investment of less than $25 million is not eligible for
204 the capital investment tax credit. An insurance company claiming
205 a credit against premium tax liability under this program shall
206 not be required to pay any additional retaliatory tax levied
207 pursuant to s. 624.5091 as a result of claiming such credit.
208 Because credits under this section are available to an insurance
209 company, s. 624.5091 does not limit such credit in any manner.
210 (c) A qualifying business that establishes a qualifying
211 project that includes locating a new solar panel manufacturing
212 facility in this state that generates a minimum of 400 jobs
213 within 6 months after commencement of operations with an average
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214 salary of at least $50,000 may assign or transfer the annual
215 credit, or any portion thereof, granted under this section to
216 any other business. However, the amount of the tax credit that
217 may be transferred in any year shall be the lesser of the
218 qualifying business’s state corporate income tax liability for
219 that year, as limited by the percentages applicable under
220 paragraph (a) and as calculated before prior to taking any
221 credit pursuant to this section, or the credit amount granted
222 for that year. A business receiving the transferred or assigned
223 credits may use the credits only in the year received, and the
224 credits may not be carried forward or backward. To perfect the
225 transfer, the transferor shall provide the department with a
226 written transfer statement notifying the department of the
227 transferor’s intent to transfer the tax credits to the
228 transferee; the date the transfer is effective; the transferee’s
229 name, address, and federal taxpayer identification number; the
230 tax period; and the amount of tax credits to be transferred. The
231 department shall, upon receipt of a transfer statement
232 conforming to the requirements of this paragraph, provide the
233 transferee with a certificate reflecting the tax credit amounts
234 transferred. A copy of the certificate must be attached to each
235 tax return for which the transferee seeks to apply such tax
236 credits.
237 (d) If the credit granted under subparagraph (a)1. is not
238 fully used in any one year because of insufficient tax liability
239 on the part of the qualifying business, the unused amounts may
240 be used in any one year or years beginning with the 21st year
241 after the commencement of operations of the project and ending
242 the 30th year after the commencement of operations of the
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243 project.
244 (3)(a)1. Notwithstanding subsection (2), a credit against
245 the tax imposed by this chapter, against state taxes collected
246 or accrued under chapter 212, or against a stated combination of
247 the two taxes must be granted to a qualifying business that
248 establishes a qualifying project identified in subparagraph
249 (1)(l)4. for which the cumulative intellectual property
250 investment of one or more projects is, at the election of the
251 qualifying business, at least:
252 a. Fifty million dollars per year for 3 consecutive years;
253 b. An aggregate of $150 million over a 3-year period; or
254 c. An aggregate of $500 million over a 3-year period.
255 2. For sub-subparagraphs 1.a. and b., the tax credit must
256 be granted in an amount equal to 20 percent of the eligible
257 capital costs generated by the qualifying project. The tax
258 credit must be granted against the tax liability of the
259 qualifying business.
260 3. For projects meeting the threshold of sub-subparagraph
261 1.c., the tax credit must be granted in an amount equal to 26
262 percent of the eligible wages, salaries, employer paid taxes and
263 benefits, or other compensation paid to any individual,
264 including amounts paid through an employee leasing company, and
265 the direct production costs paid to any business, regardless of
266 the location, generated by the qualifying project. The tax
267 credit must be granted against the tax liability of the
268 qualifying business.
269 (b)1. The credit granted under this subsection may be used
270 in whole or in part by the qualifying business or any
271 corporation that is a member of that qualifying business’
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272 affiliated group of corporations. Any credit may be used by any
273 of the affiliated corporations to the same extent as it could
274 have been used by the qualifying business. However, any such use
275 may not operate to increase the amount of the credit or extend
276 the period within which the credit must be used.
277 2. The credit granted under this subsection may be
278 transferred to any third party. A qualifying business that
279 elects to transfer the tax credit shall transfer the tax credit
280 within 1 year after the date the tax credit is granted. A
281 business receiving the transferred tax credit may use the credit
282 only in the year received, and the credit may not be carried
283 forward or backward. To perfect the transfer, the transferor
284 shall provide the department with a written transfer statement
285 of the transferor’s intent to transfer the tax credits to the
286 transferee; the date the transfer is effective; the transferee’s
287 name, address, and federal taxpayer identification number; the
288 tax period to which the transfer applies; and the amount of tax
289 credits to be transferred. The department shall, upon receipt of
290 a transfer statement conforming to the requirements of this
291 subparagraph, provide the transferee with a certificate
292 reflecting the tax credit amounts transferred. A copy of the
293 certificate must be attached to each tax return for which the
294 transferee seeks to apply such tax credits.
295 (c) A qualifying business that elects to use the tax credit
296 may use the tax credit in any one year or years beginning with
297 the commencement of the project and ending the second year after
298 the completion of the project.
299 (d) Notwithstanding the cumulative intellectual property
300 investment thresholds under subparagraph (a)1., tax credits must
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301 be granted as costs described in that subparagraph are certified
302 by the Department of Economic Opportunity.
303 (e)1. In any year in which the qualifying business fails to
304 meet the level of cumulative intellectual property investment
305 required by this subsection for that year:
306 a. For purposes of sub-subparagraph (a)1.a., any previously
307 granted tax credit issued pursuant to this subsection in such
308 year must be revoked and rescinded.
309 b. For purposes of sub-subparagraph (a)1.b., any previously
310 granted tax credit issued pursuant to this subsection must be
311 revoked and rescinded.
312 c. For purposes of sub-subparagraph (a)1.c., the portion of
313 any previously granted tax credit that exceeds 20 percent of
314 costs specified in subparagraph (a)3. which was issued pursuant
315 to this subsection must be revoked and rescinded. However, if
316 the total cumulative intellectual property investment is less
317 than $150 million, sub-subparagraph b. applies.
318 2. This paragraph may not result in the revocation or
319 rescission of any credits or incentives awarded to a project
320 outside of this subsection.
321 3. If such revoked and rescinded credit has already been
322 claimed on a return, the business must repay the credit plus the
323 interest applicable under s. 213.235 and a 10 percent penalty.
324 4. If such revoked and rescinded credit has already been
325 transferred to another business, the transferor must repay the
326 credit plus interest applicable under s. 231.235 and a 10
327 percent penalty.
328 (4) Notwithstanding subsection (2), an annual credit
329 against the tax imposed by this chapter, against state taxes
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330 collected or accrued under chapter 212, or against a stated
331 combination of the two taxes must be granted to a qualifying
332 business that establishes a qualifying project that incurs
333 eligible production infrastructure costs in this state exceeding
334 $100 million during a period not to exceed 10 years, beginning
335 with the commencement of operations of the project. The sum of
336 all tax credits provided pursuant to this subsection may not
337 exceed 100 percent of the eligible production infrastructure
338 costs of the project. Any credit granted under this subsection
339 may not be carried forward or backward by any qualifying
340 business with respect to a subsequent or prior year. The annual
341 tax credit granted under this section may not exceed 100 percent
342 of the sum of the annual corporate income tax liability and the
343 sales and use tax liability of the qualifying business. If the
344 credit granted under this subsection is not fully used in any
345 given year because of insufficient tax liability on the part of
346 the qualifying business, the unused amounts may be used in any
347 given year or years beginning with the 11th year after the
348 commencement of operations of the project and ending the 20th
349 year after the commencement of operations of the project.
350 (5)(a) Notwithstanding subsection (2), a credit against the
351 tax imposed by this chapter, against state taxes collected or
352 accrued under chapter 212, or against a stated combination of
353 the two taxes must be granted to a qualifying business that
354 establishes a strategic priority project as defined in paragraph
355 (1)(i), for which the eligible capital costs are at least $75
356 million. The tax credit must be granted in an amount equal to 20
357 percent of the eligible capital costs generated by the
358 qualifying project. The tax credit must be granted against the
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359 tax liability of the qualifying business.
360 (b) At the time a tax credit is granted under this
361 subsection, a qualifying business granted the credit shall elect
362 to either use or transfer the tax credit.
363 1. A qualifying business that elects to transfer the tax
364 credit shall transfer the tax credit within 1 year after the
365 date the tax credit is granted. A business receiving the
366 transferred tax credit may use the credit only in the year
367 received, and the credit may not be carried forward or backward.
368 To perfect the transfer, the transferor shall provide the
369 department with a written transfer statement of the transferor’s
370 intent to transfer the tax credits to the transferee; the
371 effective date of the transfer; the transferee’s name, address,
372 and federal taxpayer identification number; the tax period to
373 which the transfer applies; and the amount of tax credits to be
374 transferred. Upon receipt of a transfer statement conforming to
375 the requirements of this subparagraph, the department shall
376 provide the transferee with a certificate reflecting the tax
377 credit amounts transferred. A copy of the certificate must be
378 attached to each tax return for the period for which the
379 transferee seeks to apply such tax credits.
380 2. A qualifying business that elects to use the tax credit
381 may use the tax credit in any one year or years beginning with
382 the commencement of the project and ending the second year after
383 the completion of the project.
384 (6)(a) Notwithstanding subsection (2), an annual credit
385 against the tax imposed by this chapter must shall be granted to
386 a qualifying business which establishes a qualifying project
387 pursuant to subparagraph (1)(l)3. (1)(g)3., in an amount equal
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388 to the lesser of $15 million or 5 percent of the eligible
389 capital costs made in connection with a qualifying project, for
390 a period not to exceed 20 years beginning with the commencement
391 of operations of the project. The tax credit must shall be
392 granted against the corporate income tax liability of the
393 qualifying business and as further provided in paragraph (c).
394 The total tax credit provided pursuant to this subsection must
395 shall be equal to no more than 100 percent of the eligible
396 capital costs of the qualifying project.
397 (b) If the credit granted under this subsection is not
398 fully used in any one year because of insufficient tax liability
399 on the part of the qualifying business, the unused amount may be
400 carried forward for a period not to exceed 20 years after the
401 commencement of operations of the project. The carryover credit
402 may be used in a subsequent year when the tax imposed by this
403 chapter for that year exceeds the credit for which the
404 qualifying business is eligible in that year under this
405 subsection after applying the other credits and unused
406 carryovers in the order provided by s. 220.02(8).
407 (c) The credit granted under this subsection may be used in
408 whole or in part by the qualifying business or any corporation
409 that is either a member of that qualifying business’s affiliated
410 group of corporations, is a related entity taxable as a
411 cooperative under subchapter T of the Internal Revenue Code, or,
412 if the qualifying business is an entity taxable as a cooperative
413 under subchapter T of the Internal Revenue Code, is related to
414 the qualifying business. Any entity related to the qualifying
415 business may continue to file as a member of a Florida-nexus
416 consolidated group pursuant to a prior election made under s.
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417 220.131(1), Florida Statutes (1985), even if the parent of the
418 group changes due to a direct or indirect acquisition of the
419 former common parent of the group. Any credit can be used by any
420 of the affiliated companies or related entities referenced in
421 this paragraph to the same extent as it could have been used by
422 the qualifying business. However, any such use shall not operate
423 to increase the amount of the credit or extend the period within
424 which the credit must be used.
425 (7)(4) Before Prior to receiving tax credits pursuant to
426 this section, a qualifying business must achieve and maintain
427 the minimum employment goals beginning with the commencement of
428 operations or the completion date of at a qualifying project and
429 continuing each year thereafter during which tax credits are
430 available pursuant to this section.
431 (8)(5) Applications must shall be reviewed and certified
432 pursuant to s. 288.061. The Department of Economic Opportunity,
433 upon a recommendation by Enterprise Florida, Inc., shall first
434 certify a business as eligible to receive tax credits pursuant
435 to this section before prior to the commencement of operations
436 or the completion date of a qualifying project, and such
437 certification must shall be transmitted to the Department of
438 Revenue. Upon receipt of the certification, the Department of
439 Revenue shall enter into a written agreement with the qualifying
440 business specifying, at a minimum, the method by which income
441 generated by or arising out of the qualifying project will be
442 determined.
443 (9)(6) The Department of Economic Opportunity, in
444 consultation with Enterprise Florida, Inc., is authorized to
445 develop the necessary guidelines and application materials for
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446 the certification process described in subsection (8)(5).
447 (10)(7) It shall be the responsibility of the qualifying
448 business to affirmatively demonstrate to the satisfaction of the
449 Department of Revenue that such business meets the job creation
450 and capital investment requirements of this section.
451 (11)(8) The Department of Revenue may specify by rule the
452 methods by which a project’s pro forma annual taxable income is
453 determined.
454 Section 2. Paragraph (d) of subsection (2) of section
455 288.1089, Florida Statutes, is amended to read:
456 288.1089 Innovation Incentive Program.—
457 (2) As used in this section, the term:
458 (d) “Cumulative investment” means cumulative capital
459 investment and all eligible capital costs, as defined in s.
460 220.191, Florida Statutes (2020).
461 Section 3. This act shall take effect July 1, 2021.
462
463 ================= T I T L E A M E N D M E N T ================
464 And the title is amended as follows:
465 Delete everything before the enacting clause
466 and insert:
467 A bill to be entitled
468 An act relating to the capital investment tax credit;
469 amending s. 220.191, F.S.; defining and redefining
470 terms; providing a credit against the corporate income
471 tax, the sales and use tax, or a stated combination of
472 the two taxes to a qualifying business that
473 establishes a qualifying project for the creation of
474 intellectual property which meets certain capital
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475 investment criteria; specifying the calculation of the
476 credit; authorizing use of the credit or portions of
477 the credit by the business members of its affiliated
478 group of corporations; authorizing the transfer of
479 credits, subject to certain conditions; requiring
480 credits to be granted as costs are certified by the
481 Department of Economic Opportunity; providing for
482 revocation and rescission of credits under certain
483 circumstances; providing a credit against the
484 corporate income tax, the sales and use tax, or a
485 stated combination of the two taxes to a qualifying
486 business that incurs eligible production
487 infrastructure costs that exceed a certain threshold;
488 specifying the calculation of the credit; prohibiting
489 the carryover of credits; authorizing use of unused
490 credits after a certain time period; providing a
491 credit against the corporate income tax, the sales and
492 use tax, or a stated combination of the two taxes to a
493 qualifying business that establishes a strategic
494 priority project that meets certain capital investment
495 criteria; specifying the calculation of the credit;
496 authorizing the carryover or transfer of credits,
497 subject to certain conditions; conforming provisions
498 to changes made by the act; amending s. 288.1089,
499 F.S.; revising the definition of the term “cumulative
500 investment”; providing an effective date.
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By Senator Gruters
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1 A bill to be entitled 30 (1) DEFINITIONS.—As used in For purposes of this section,
2 An act relating to the capital investment tax credit; 31 the term:
3 amending s. 220.191, F.S.; redefining terms; defining 32 (a) “Commencement of operations” means the beginning of
4 the terms “intellectual property” and “strategic 33 active operations by a qualifying business of the principal
5 priority project”; providing a credit against the 34 function for which a qualifying project was constructed.
6 corporate income tax, the sales and use tax, or a 35 (b) “Cumulative capital investment” means the total capital
7 stated combination of the two taxes to a qualifying 36 investment in land, buildings, and equipment made in connection
8 business that establishes a qualifying project for the 37 with a qualifying project during the period from the beginning
9 creation of intellectual property which meets certain 38 of construction of the project to the commencement of
10 capital investment criteria; specifying the 39 operations.
11 calculation of the credit; authorizing the carryover 40 (c)1. “Eligible capital costs” means all expenses incurred
12 or transfer of credits, subject to certain conditions; 41 by a qualifying business in connection with:
13 providing a credit against the corporate income tax, 42 a. The acquisition, construction, installation, and
14 the sales and use tax, or a stated combination of the 43 equipping of a qualifying project during the period from the
15 two taxes to a qualifying business that establishes a 44 beginning of construction of the project to the commencement of
16 strategic priority project that meets certain capital 45 operations; or
17 investment criteria; specifying the calculation of the 46 b. A qualifying project for the development or creation of
18 credit; authorizing the carryover or transfer of 47 intellectual property during the period from the start date of
19 credits, subject to certain conditions; conforming 48 the project to the completion of the project.
20 provisions to changes made by the act; amending s. 49 2. The term includes, including, but is not limited to:
21 288.1089, F.S.; revising the definition of the term 50 a.1. The costs of acquiring, constructing, installing,
22 “cumulative investment” to conform to changes made by 51 equipping, and financing a qualifying project, including all
23 the act; providing an effective date. 52 obligations incurred for labor and obligations to contractors,
24 53 subcontractors, builders, and materialmen.
25 Be It Enacted by the Legislature of the State of Florida: 54 b.2. The costs of acquiring land or rights to land and any
26 55 cost incidental thereto, including recording fees.
27 Section 1. Section 220.191, Florida Statutes, is amended to 56 c.3. The costs of architectural and engineering services,
28 read: 57 including test borings, surveys, estimates, plans and
29 220.191 Capital investment tax credit.— 58 specifications, preliminary investigations, environmental
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59 mitigation, and supervision of construction, as well as the 88 (e) “Intellectual property” means a copyrightable project
60 performance of all duties required by or consequent to the 89 for which the eligible capital costs are principally paid
61 acquisition, construction, installation, and equipping of a 90 directly or indirectly for the development or creation of the
62 qualifying project. 91 project. As used in this paragraph, the term “copyrightable
63 d.4. The costs associated with the installation of fixtures 92 project” includes, but is not limited to, a copyrightable
64 and equipment; surveys, including archaeological and 93 software or multimedia application and its expansion content
65 environmental surveys; site tests and inspections; subsurface 94 made available to an end user, which includes, but is not
66 site work and excavation; removal of structures, roadways, and 95 limited to, technological activities relating to updating the
67 other surface obstructions; filling, grading, paving, and 96 project; internal development platforms that support the
68 provisions for drainage, storm water retention, and installation 97 production of multiple applications; cloud-based services that
69 of utilities, including water, sewer, sewage treatment, gas, 98 support the functionality of multiple applications; and
70 electricity, communications, and similar facilities; and offsite 99 copyrightable projects that include, but are not limited to,
71 construction of utility extensions to the boundaries of the 100 digital visualization and sound synchronization technologies for
72 property. 101 digital media, or that are necessary for the production of
73 e. For the development or creation of intellectual 102 scripted content intended for theatrical, streaming, or
74 property, the wages, salaries, or other compensation paid to 103 television distribution.
75 legal residents of this state, including amounts paid through a 104 (f) “Jobs” means full-time equivalent positions, as that
76 loan-out company, an employee leasing company, or a payroll 105 term is consistent with terms used by the Department of Economic
77 service company. The term also includes expenditures for the 106 Opportunity and the United States Department of Labor for
78 rental of tangible personal property or the provision of 107 purposes of reemployment assistance tax administration and
79 services directly related to the development or creation of 108 employment estimation, resulting directly from a project in this
80 intellectual property. 109 state. The term does not include temporary construction jobs
81 110 involved in the construction of the project facility.
82 Eligible capital costs do shall not include the cost of any 111 (g)(f) “Qualifying business” means a business which
83 property previously owned or leased by the qualifying business. 112 establishes a qualifying project or strategic priority project
84 (d) “Income generated by or arising out of the qualifying 113 in this state and which is certified by the Department of
85 project” means the qualifying project’s annual taxable income as 114 Economic Opportunity to receive tax credits pursuant to this
86 determined by generally accepted accounting principles and under 115 section.
87 s. 220.13. 116 (h)(g) “Qualifying project” means a facility or project in
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117 this state meeting one or more of the following criteria: 146 subparagraph. A facility that qualifies under this subparagraph
118 1. A new or expanding facility in this state which creates 147 for an annual credit against the tax imposed by this chapter may
119 at least 100 new jobs in this state and is in one of the high- 148 take the tax credit for a period not to exceed 5 years.
120 impact sectors identified by Enterprise Florida, Inc., and 149 3. A new or expanded headquarters facility in this state
121 certified by the Department of Economic Opportunity pursuant to 150 which locates in an enterprise zone and brownfield area and is
122 s. 288.108(6), including, but not limited to, aviation, 151 induced by this credit to create at least 1,500 jobs which on
123 aerospace, automotive, and silicon technology industries. 152 average pay at least 200 percent of the statewide average annual
124 However, between July 1, 2011, and June 30, 2014, the 153 private sector wage, as published by the Department of Economic
125 requirement that a facility be in a high-impact sector is waived 154 Opportunity, and which new or expanded headquarters facility
126 for any otherwise eligible business from another state which 155 makes a cumulative capital investment in this state of at least
127 locates all or a portion of its business to a Disproportionally 156 $250 million.
128 Affected County. For purposes of this section, the term 157 4. A project involving the creation of intellectual
129 “Disproportionally Affected County” means Bay County, Escambia 158 property, provided that the project’s jobs in this state pay an
130 County, Franklin County, Gulf County, Okaloosa County, Santa 159 annual average wage of at least 150 percent of the average
131 Rosa County, Walton County, or Wakulla County. 160 private sector wage in the area as defined in s. 288.106. A
132 2. A new or expanded facility in this state which is 161 project that qualifies under this subparagraph may consist of
133 engaged in a target industry designated pursuant to the 162 one or more projects with different start and completion dates.
134 procedure specified in s. 288.106(2) and which is induced by 163 (i) “Strategic priority project” means a qualifying project
135 this credit to create or retain at least 1,000 jobs in this 164 identified in subparagraph (h)4. which demonstrates the
136 state, provided that at least 100 of those jobs are new, pay an 165 potential for measurable value to this state, including, but not
137 annual average wage of at least 130 percent of the average 166 limited to, marketing Florida as a visitor destination,
138 private sector wage in the area as defined in s. 288.106(2), and 167 improvements to infrastructure supporting future industry use,
139 make a cumulative capital investment of at least $100 million. 168 or measurable technology skills development for residents of
140 Jobs may be considered retained only if there is significant 169 this state.
141 evidence that the loss of jobs is imminent. Notwithstanding 170 (2)(a) An annual credit against the tax imposed by this
142 subsection (2), annual credits against the tax imposed by this 171 chapter shall be granted to any qualifying business in an amount
143 chapter may not exceed 50 percent of the increased annual 172 equal to 5 percent of the eligible capital costs generated by a
144 corporate income tax liability or the premium tax liability 173 qualifying project, for a period not to exceed 20 years
145 generated by or arising out of a project qualifying under this 174 beginning with the commencement of operations of the project.
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175 Unless assigned as described in this subsection, the tax credit 204 (c) A qualifying business that establishes a qualifying
176 shall be granted against only the corporate income tax liability 205 project that includes locating a new solar panel manufacturing
177 or the premium tax liability generated by or arising out of the 206 facility in this state that generates a minimum of 400 jobs
178 qualifying project, and the sum of all tax credits provided 207 within 6 months after commencement of operations with an average
179 pursuant to this section shall not exceed 100 percent of the 208 salary of at least $50,000 may assign or transfer the annual
180 eligible capital costs of the project. In no event may any 209 credit, or any portion thereof, granted under this section to
181 credit granted under this section be carried forward or backward 210 any other business. However, the amount of the tax credit that
182 by any qualifying business with respect to a subsequent or prior 211 may be transferred in any year shall be the lesser of the
183 year. The annual tax credit granted under this section shall not 212 qualifying business’s state corporate income tax liability for
184 exceed the following percentages of the annual corporate income 213 that year, as limited by the percentages applicable under
185 tax liability or the premium tax liability generated by or 214 paragraph (a) and as calculated before prior to taking any
186 arising out of a qualifying project: 215 credit pursuant to this section, or the credit amount granted
187 1. One hundred percent for a qualifying project which 216 for that year. A business receiving the transferred or assigned
188 results in a cumulative capital investment of at least $100 217 credits may use the credits only in the year received, and the
189 million. 218 credits may not be carried forward or backward. To perfect the
190 2. Seventy-five percent for a qualifying project which 219 transfer, the transferor shall provide the department with a
191 results in a cumulative capital investment of at least $50 220 written transfer statement notifying the department of the
192 million but less than $100 million. 221 transferor’s intent to transfer the tax credits to the
193 3. Fifty percent for a qualifying project which results in 222 transferee; the date the transfer is effective; the transferee’s
194 a cumulative capital investment of at least $25 million but less 223 name, address, and federal taxpayer identification number; the
195 than $50 million. 224 tax period; and the amount of tax credits to be transferred. The
196 (b) A qualifying project which results in a cumulative 225 department shall, upon receipt of a transfer statement
197 capital investment of less than $25 million is not eligible for 226 conforming to the requirements of this paragraph, provide the
198 the capital investment tax credit. An insurance company claiming 227 transferee with a certificate reflecting the tax credit amounts
199 a credit against premium tax liability under this program shall 228 transferred. A copy of the certificate must be attached to each
200 not be required to pay any additional retaliatory tax levied 229 tax return for which the transferee seeks to apply such tax
201 pursuant to s. 624.5091 as a result of claiming such credit. 230 credits.
202 Because credits under this section are available to an insurance 231 (d) If the credit granted under subparagraph (a)1. is not
203 company, s. 624.5091 does not limit such credit in any manner. 232 fully used in any one year because of insufficient tax liability
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233 on the part of the qualifying business, the unused amounts may 262 the transfer applies; and the amount of tax credits to be
234 be used in any one year or years beginning with the 21st year 263 transferred. The department shall, upon receipt of a transfer
235 after the commencement of operations of the project and ending 264 statement conforming to the requirements of this subparagraph,
236 the 30th year after the commencement of operations of the 265 provide the transferee with a certificate reflecting the tax
237 project. 266 credit amounts transferred. A copy of the certificate must be
238 (3)(a) Notwithstanding subsection (2), a credit against the 267 attached to each tax return for which the transferee seeks to
239 tax imposed by this chapter, against state taxes collected or 268 apply such tax credits.
240 accrued under chapter 212, or against a stated combination of 269 2. A qualifying business that elects to use the tax credit
241 the two taxes must be granted to a qualifying business that 270 may use the tax credit in any one year or years beginning with
242 establishes a qualifying project identified in subparagraph 271 the commencement of the project and ending the second year after
243 (1)(h)4. for which the eligible capital costs of one or more 272 the completion of the project.
244 projects are an aggregate of at least $50 million per year for 3 273 (4)(a) Notwithstanding subsection (2), a credit against the
245 years. The tax credit must be granted in an amount equal to 20 274 tax imposed by this chapter, against state taxes collected or
246 percent of the eligible capital costs generated by the 275 accrued under chapter 212, or against a stated combination of
247 qualifying project. The tax credit shall be granted against the 276 the two taxes must be granted to a qualifying business that
248 tax liability of the qualifying business. 277 establishes a strategic priority project as defined in paragraph
249 (b) At the time a tax credit is granted under this 278 (1)(i), for which the eligible capital costs are at least $75
250 subsection, a qualifying business granted the credit shall elect 279 million. The tax credit must be granted in an amount equal to 20
251 to either use or transfer the tax credit. 280 percent of the eligible capital costs generated by the
252 1. A qualifying business that elects to transfer the tax 281 qualifying project. The tax credit shall be granted against the
253 credit shall transfer the tax credit within 1 year after the 282 tax liability of the qualifying business.
254 date the tax credit is granted. A business receiving the 283 (b) At the time a tax credit is granted under this
255 transferred tax credit may use the credit only in the year 284 subsection, a qualifying business granted the credit shall elect
256 received, and the credit may not be carried forward or backward. 285 to either use or transfer the tax credit.
257 To perfect the transfer, the transferor shall provide the 286 1. A qualifying business that elects to transfer the tax
258 department with a written transfer statement of the transferor’s 287 credit shall transfer the tax credit within 1 year after the
259 intent to transfer the tax credits to the transferee; the date 288 date the tax credit is granted. A business receiving the
260 the transfer is effective; the transferee’s name, address, and 289 transferred tax credit may use the credit only in the year
261 federal taxpayer identification number; the tax period to which 290 received, and the credit may not be carried forward or backward.
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291 To perfect the transfer, the transferor shall provide the 320 (b) If the credit granted under this subsection is not
292 department with a written transfer statement of the transferor’s 321 fully used in any one year because of insufficient tax liability
293 intent to transfer the tax credits to the transferee; the 322 on the part of the qualifying business, the unused amount may be
294 effective date of the transfer; the transferee’s name, address, 323 carried forward for a period not to exceed 20 years after the
295 and federal taxpayer identification number; the tax period to 324 commencement of operations of the project. The carryover credit
296 which the transfer applies; and the amount of tax credits to be 325 may be used in a subsequent year when the tax imposed by this
297 transferred. Upon receipt of a transfer statement conforming to 326 chapter for that year exceeds the credit for which the
298 the requirements of this subparagraph, the department shall 327 qualifying business is eligible in that year under this
299 provide the transferee with a certificate reflecting the tax 328 subsection after applying the other credits and unused
300 credit amounts transferred. A copy of the certificate must be 329 carryovers in the order provided by s. 220.02(8).
301 attached to each tax return for the period for which the 330 (c) The credit granted under this subsection may be used in
302 transferee seeks to apply such tax credits. 331 whole or in part by the qualifying business or any corporation
303 2. A qualifying business that elects to use the tax credit 332 that is either a member of that qualifying business’s affiliated
304 may use the tax credit in any one year or years beginning with 333 group of corporations, is a related entity taxable as a
305 the commencement of the project and ending the second year after 334 cooperative under subchapter T of the Internal Revenue Code, or,
306 the completion of the project. 335 if the qualifying business is an entity taxable as a cooperative
307 (5)(a) Notwithstanding subsection (2), an annual credit 336 under subchapter T of the Internal Revenue Code, is related to
308 against the tax imposed by this chapter must shall be granted to 337 the qualifying business. Any entity related to the qualifying
309 a qualifying business which establishes a qualifying project 338 business may continue to file as a member of a Florida-nexus
310 pursuant to subparagraph (1)(h)3. (1)(g)3., in an amount equal 339 consolidated group pursuant to a prior election made under s.
311 to the lesser of $15 million or 5 percent of the eligible 340 220.131(1), Florida Statutes (1985), even if the parent of the
312 capital costs made in connection with a qualifying project, for 341 group changes due to a direct or indirect acquisition of the
313 a period not to exceed 20 years beginning with the commencement 342 former common parent of the group. Any credit can be used by any
314 of operations of the project. The tax credit must shall be 343 of the affiliated companies or related entities referenced in
315 granted against the corporate income tax liability of the 344 this paragraph to the same extent as it could have been used by
316 qualifying business and as further provided in paragraph (c). 345 the qualifying business. However, any such use shall not operate
317 The total tax credit provided pursuant to this subsection must 346 to increase the amount of the credit or extend the period within
318 shall be equal to no more than 100 percent of the eligible 347 which the credit must be used.
319 capital costs of the qualifying project. 348 (6)(4) Before Prior to receiving tax credits pursuant to
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349 this section, a qualifying business must achieve and maintain 378 288.1089, Florida Statutes, is amended to read:
350 the minimum employment goals beginning with the commencement of 379 288.1089 Innovation Incentive Program.—
351 operations or the completion date of at a qualifying project and 380 (2) As used in this section, the term:
352 continuing each year thereafter during which tax credits are 381 (d) “Cumulative investment” means cumulative capital
353 available pursuant to this section. 382 investment and all eligible capital costs, as defined in s.
354 (7)(5) Applications must shall be reviewed and certified 383 220.191, Florida Statutes (2020).
355 pursuant to s. 288.061. The Department of Economic Opportunity, 384 Section 3. This act shall take effect July 1, 2021.
356 upon a recommendation by Enterprise Florida, Inc., shall first
357 certify a business as eligible to receive tax credits pursuant
358 to this section before prior to the commencement of operations
359 or the completion date of a qualifying project, and such
360 certification must shall be transmitted to the Department of
361 Revenue. Upon receipt of the certification, the Department of
362 Revenue shall enter into a written agreement with the qualifying
363 business specifying, at a minimum, the method by which income
364 generated by or arising out of the qualifying project will be
365 determined.
366 (8)(6) The Department of Economic Opportunity, in
367 consultation with Enterprise Florida, Inc., is authorized to
368 develop the necessary guidelines and application materials for
369 the certification process described in subsection (7)(5).
370 (9)(7) It shall be the responsibility of the qualifying
371 business to affirmatively demonstrate to the satisfaction of the
372 Department of Revenue that such business meets the job creation
373 and capital investment requirements of this section.
374 (10)(8) The Department of Revenue may specify by rule the
375 methods by which a project’s pro forma annual taxable income is
376 determined.
377 Section 2. Paragraph (d) of subsection (2) of section
Page 13 of 14 Page 14 of 14
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
Committee Agenda Request
To: Senator Ed Hooper, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: March 18, 2021
I respectfully request that Senate Bill #1682, relating to Telephone Solicitation, be placed on the:
committee agenda at your earliest possible convenience.
next committee agenda.
Please let me know if you have any questions.
Sincerely,
Joe Gruters
Cc: Todd McKay, Staff Director
Kathryn Vigrass, Committee Administrative Assistant
File signed original with committee office S-020 (03/2004)
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professionai Staff conducting the meeting)
Meeting Date
Bill Number (if applicable)
Topic Amendment Barcode (if applicable)
Name
Job Title
Address Phone
Street .
City State Zip
Speaking: u For | |/ Information Waive Speaking: |~l In Support | | Against
(The Chair will read this information into the record.)
Representing
Appearing at request of Chair: No Lobbyist registered with Legislature: Yes No
While it is a Senat tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
eeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form Is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
appearance record
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
Mt Bill Number (if applicable)
Topic Amendment Barcode (if applicable)
Name
Job Title
Address
City Zip
Speaking: Waive Speaking: In Support | | Against
information intcflth record.)
Representing
Appearing at request of Chair: Yes o Lo byist registered with Legislature: | | Yes No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1682
INTRODUCER: Senator Gruters
SUBJECT: Telephone Solicitation
DATE: March 26, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Harmsen McKay CM Favorable
2. RI
3. RC
I. Summary:
The bill requires all sales telephone calls, text messages, and direct-to-voicemail transmissions to
have the receiving consumer’s prior express written consent if the call will (1) be made using an
automated machine to dial the recipient’s phone number, or (2) play a recorded message upon
connection with the recipient.
The bill creates a rebuttable presumption that a telephonic sales call that is made to a Florida area
code is made either to a Florida resident or to a person in this state at the time of the call.
The bill creates a private right of action to enforce violations of s. 501.059, F.S.
II. Present Situation:
Unsolicited Phone Calls
Consumers are often inundated with unwanted calls. In fiscal year 2020, the Federal Trade
Commission (FTC) received 293,071 complaints from Florida consumers about unwanted
telephone calls.1 The Federal Communications Commission (FCC) reports that unwanted calls
constitute their top consumer complaint.2 Unwanted calls can come in many forms, including
1
Federal Trade Commission, Do Not Call Data Book 2020, (Oct. 2020), available at
https://www.ftc.gov/system/files/documents/reports/national-do-not-call-registry-data-book-fiscal-year-
2020/dnc_data_book_2020.pdf (last visited Mar. 26, 2020).
2
Federal Communications Commission, Stop Unwanted Calls and Texts, (Mar. 2, 2021)
https://www.fcc.gov/consumers/guides/stop-unwanted-calls-and-texts (last visited Mar. 26, 2021).
BILL: SB 1682 Page 2
robocalls,3 which use an autodialer4 and play a recorded message upon connection with the
consumer; spoofed calls, which transmit falsified information to a consumer’s caller ID to
disguise the solicitor’s identity; and unwanted telemarketing calls.
State and federal action is limited to combat these issues because there are legitimate and legal
uses of this technology. For example, a doctor’s office may legally use a robocall to remind one
of an upcoming appointment.5 Additionally, some solicitors act outside the scope of federal or
state enforcement authority.
Federal Law
Telephone Consumer Protection Act6
The Telephone Consumer Protection Act of 1991 (TCPA) protects U.S. consumers from
unwanted communications by restricting the use of automatic telephone dialing system
(autodialers), prerecorded sales messages, and unsolicited sales calls, text messages, or faxes.
The TCPA prohibits telephone solicitations that:
Are made to residences before 8 am, and after 9 pm;
Fail to provide the consumer with the solicitor’s identity, including his or her true phone
number via caller identification service,7 and an opportunity to opt out of the current call, and
all future calls made by that solicitor;
Send pre-recorded messages to a residential line without the consumer’s prior express
consent;8 and
Use an autodialer or pre-recorded messages to a cellular, emergency, or hospital room line
without prior express consent. Any telemarketing calls made to a cellular telephone number
require written prior express consent; all others require either oral or written consent.9 This
specific provision does not apply to residential phone lines.10
3
“At the FCC, we use the term ‘robocalls’ to refer not to just prerecorded calls but also autodialed calls, regardless of
whether the call is live or prerecorded.” Stopping Fraudulent Robocall Scams: Can More be Done?, Hearing Before the S.
Subcomm. On Cons. Protection, Product Safety, and Ins. Of the Comm. On Commerce, Science, and Trasp., 130 th Cong.
(July 10, 2013)(Statement of Eric J. Bash, Assoc. Chief, Enforcement Bureau, FCC).
https://www.govinfo.gov/content/pkg/CHRG-113shrg85765/pdf/CHRG-113shrg85765.pdf (last visited Mar. 26, 2021).
4
An autodialer is equipment that has the capacity to produce or store phone numbers using a random or sequential number
generator, and to call those phone numbers. 47 U.S.C. § 227(a)(1).
5
FCC, Consumer and Governmental Affairs Bureau, Report on Robocalls 2-4 (Feb. 2019), CG Docket No. 17-59, available
at https://www.fcc.gov/document/fcc-issues-report-illegal-robocalls (last visited Mar. 26, 2021). See also, FCC, Stop
Unwanted Calls and Texts--Spoofing, (Mar. 2, 2021) https://www.fcc.gov/consumers/guides/stop-unwanted-calls-and-texts
(last visited Mar. 26, 2021).
6
47 U.S.C. § 227. See also, 47 CFR § 64.1200 (2012).
7
47 CFR § 64.1601(e). See also, FCC, Public Notice: FCC’s Caller ID Rules for Telemarketers Become Effective (Jan. 29,
2004) https://apps.fcc.gov/edocs_public/attachmatch/DA-04-206A1.pdf (last visited Mar. 26, 2021).
8
See also, 47 CFR § 64.1200(a)(7)(i)(B), (b)(3). Certain calls made to a residential line, such as those by a tax-exempt
nonprofit organization or calls that are subject to HIPPA may be made without prior express consent.
9
FCC, 2015 TCPA Declaratory Ruling and Order, 30 FCC Rcd at 7999, para. 4 (Jun. 18, 2015).
10
In 2015, language was added to the TCPA to allow robocalls and autodialed calls to cell phones for the purpose of
collecting a debt owed to the U.S. government. See 47 U.S.C. § 227(b)(1)(A)(iii). This provision was severed from the by the
U.S. Supreme Court in 2020 based on their finding that it was a content-specific speech regulation in violation of the first
amendment. The Court left the TCPA’s prohibition of robocalls and autodialed calls to cell phones intact. Barr v. American
Assc. Of Political Consultants, Inc., 140 S. Ct. 2335 (2020). See also, 47 CFR § 64.1200(f)(8).
BILL: SB 1682 Page 3
The TCPA defines autodialers as “equipment which has the capacity—(A) to store or produce
telephone numbers to be called, using a random or sequential number generator; and (B) to dial
such numbers.”11
The TCPA grants a private right of action to pursue actual monetary damages or up to $500 per
violation.12 State attorneys general and the FCC also have jurisdiction to investigate and file civil
claims based on violations of the TCPA.13
The TCPA’s protections extend to text messaging in the same manner that they apply to
telephone calls.14
Federal Do Not Call Program15
The FTC, in concert with the FCC, administers the National Do Not Call Program.16 Telephone
solicitors may not contact a consumer who participates in the National Do Not Call Program,
unless the calls are:17
Made with a consumer’s prior, express permission;
Informational in nature, such as those made to convey a utility outage, school closing, or
flight information; or
Made by a tax-exempt organization.
Truth in Caller ID Act18
The Truth in Caller ID Act of 2009 protects consumers by making it unlawful for any person to
transmit misleading or inaccurate caller ID information with the intent to defraud, cause harm, or
wrongfully obtain anything of value. The FCC investigates and prosecutes violations of the act
under its rules.19 The FCC has taken enforcement actions totaling $450 million in recent years
against telemarketers for call spoofing violations—of note, the FCC imposed its largest fine ever
against a Florida-based timeshare marketing operation.20
To protect individual privacy concerns, an individual caller may still request to hide his or her
phone number when making a call.21
11
47 U.S.C. § 227(b)(1)(A).
12
47 U.S.C. § 227 (c)(5).
13
47 U.S.C. § 227 (f).
14
FCC, 2015 TCPA Declaratory Ruling and Order, 30 FCC Rcd at 7999, para. 2 (Jun. 18, 2015); FCC, FCC Strengthens
Consumer Protections Against Unwanted Calls and Texts (Jun. 18, 2015)
https://apps.fcc.gov/edocs_public/attachmatch/DOC-333993A1.pdf (last visited Mar. 26, 2021).
15
See, 15 U.S.C. § 6101.
16
FCC, Stop Unwanted Calls and Texts—The National Do Not Call List, (Mar. 2, 2021)
https://www.fcc.gov/consumers/guides/stop-unwanted-calls-and-texts (last visited Mar. 26, 2021).
17
47 U.S.C. § 227(a)(4); See also, 47 C.F.R. § 64.1200 (2012).
18
47 U.S.C. § 227 (e).
19
See, 47 CFR § 64.
20
FCC, The FCC’s Push to Combat Robocalls & Spoofing: Major Fines Against Spoofers https://www.fcc.gov/spoofed-
robocalls (last visited Mar. 26, 2021). See also, FCC, FCC Fines Massive Neighbor Spoofing Robocall Operation $120
Million (May 10, 2018) https://www.fcc.gov/document/fcc-fines-massive-neighbor-spoofing-robocall-operation-120-million
(last visited Mar. 26, 2021).
21
47 CFR § 64.1601
BILL: SB 1682 Page 4
Florida Law
Florida Telemarketing Act
The Florida Telemarketing Act (Telemarketing Act), part IV of ch. 501, F.S., requires
commercial telephone sellers (usually a business entity) and their individual salespersons to
obtain a license from the Department of Agriculture and Consumer Services (Department). An
applicant for licensure as a commercial telephone seller must submit, among other information:22
Its criminal, civil, and administrative disciplinary background;
All phone numbers from which the applicant will solicit business and the physical address at
which the phones will be located;
The script it will use during a solicitation, or any informational literature it will provide to a
consumer; and
A bond, letter of credit, or certificate of deposit to serve as security in any future case of
fraud, breach of contract, financial failure, or violation by the licensee.
As part of their licensure, individual salespersons (who are hired by commercial telephone sellers
to act as their salespersons) undergo a similar review of their criminal, civil, administrative or
regulatory disciplinary history, but they are not required to post a bond, letter of credit, or
certificate of deposit.23
Many solicitors are exempt from licensure under the Telemarketing Act, including religious,
charitable, political, or educational organizations that have a s. 501(c)(3) or (6) exemption from
the Internal Revenue Code; licensed securities, commodities, or investment brokers and dealers;
and newspaper or cable television sellers, among others.24
Licensed telephone sellers and solicitors must identify themselves to the consumer within 30
seconds of the beginning of the phone call.25 To ensure that the Department can conduct
thorough investigations, when needed, a licensed telephone seller must also maintain copies of
their business records for at least 2 years—including all of the names and telephone numbers that
they contacted.26
All telephone sellers and solicitors, whether exempt or not, are prohibited from calling
consumers outside of the hours of 8:00 a.m. and 9:00 p.m. of the called person’s local time.27
Additionally, all solicitors must allow their name or telephone number to be transmitted to the
consumer if the equipment they use is capable. This prevents solicitors from ‘spoofing’ a
different number or otherwise blocking their caller identification to induce a consumer to answer
the phone.28
22
Section 501.605, F.S.
23
Section 501.607, F.S.
24
See, s. 501.604, F.S.
25
Section 501.613, F.S.
26
Section 501.6175, F.S.
27
Section 501.616(6); see also, s. 501.604, F.S., which provides a general exemption from the Telemarketing Act, “except ss.
501.608 and 501.616(6) and (7).”
28
Section 501.616(7), F.S.
BILL: SB 1682 Page 5
Florida Do Not Call Act
Do Not Call List
The Department also administers the Florida Do Not Call Act (also called the “Do Not Call
List”), which prohibits unsolicited phone calls and text messages.29 Residents who do not wish to
receive sales calls may request to have their residential, mobile, or paging device telephone
number included on the Department’s list.30
A communication is unsolicited, and therefore prohibited under the Do Not Call List, unless the
contact is made:
At the consumer’s request;
By a charitable or political organization that is seeking donations;
As part of a survey, or for the purpose of research seeking an opinion;
In connection with an existing debt or contract for which payment is due; or
By a newspaper publisher, or his or her agent or employee, in connection with the publisher’s
business.
Continued Solicitations
Section 501.059(5), F.S., prohibits a telephone solicitor31 from calling, text messaging, sending a
direct voicemail transmission to contact any consumer who has previously communicated to the
solicitor that he or she does not wish to receive a telephone call, whether or not he or she is part
of the Do Not Call List. However, this prohibition applies only to calls made by or on behalf of a
seller who offers goods or services or a charity that solicits a charitable contribution.
Automated Dialers and Recorded Messages
Section 501.059(8), F.S., prohibits solicitations via telephone calls, text messages, and direct-to-
voicemail transmissions if the communication is initiated with an automated system that selects
or dials the telephone numbers (autodialer), or if the communication plays a recorded message
upon connection with the consumer. Autodialed calls and recorded messages are permitted if (1)
they are in response to a call that the consumer initiated, (2) the person initiating the call screens
out unlisted telephone numbers and those that are on the “Do Not Call” list, or (3) made
regarding goods or services that the consumer previously purchased.
This section also prevents call spoofing (in cases of solicitation calls), wherein a telephone call,
text message, or direct-to-voicemail transmission does not transmit the correct originating
telephone number; and fraudulent attempts to disguise the caller’s identity in order to defraud,
confuse, or otherwise injure the call’s recipient.
Penalties
A telephone solicitor who violates the above provisions is subject to a civil penalty with a
maximum fine of $10,000 per violation, or an administrative fine with a maximum of $1,000 per
29
See, s. 501.059, F.S. Florida Department of Agriculture and Consumer Services, Florida Do Not Call,
https://www.fdacs.gov/Consumer-Resources/Florida-Do-Not-Call (last visited Mar. 26, 2021).
30
Section 501.059(3)-(4), F.S.
31
Section 501.059(1)(f), defines a ‘telephone solicitor’ as a natural person or business that does business in this state by
making or causing to be made a telephone sales call.
BILL: SB 1682 Page 6
violation, in addition to attorney’s fees and costs.32 This section does not provide for a private
cause of action—the Department of Agriculture and Consumer Services and the Office of the
Attorney General have exclusive enforcement authority.
III. Effect of Proposed Changes:
A telephonic sales call is a telephone call, text message, or voicemail transmission that will
solicit a good or service to a consumer.
The bill requires any person who makes a telephonic sales call with an automated system for the
selection or dialing of telephone numbers (autodialer), or who makes a telephonic sales call that
will play a recorded message upon connection with the consumer, to obtain signed prior express
written consent from the consumer he or she calls.
The bill defines prior express written consent as an agreement that clearly authorizes the person
who makes or allows the call, text message, or voicemail transmission, to do so by an autodialer
or for the purpose of playing a recorded message or prerecorded voicemail. The agreement must:
Be signed by the party who is the regular user of the telephone number that will receive the
call, text message, or voicemail, and his or her signature may be in any form that federal or
state contract law recognizes as valid, which may include an electronic or digital signature;
Include the telephone number to which the consumer will allow the telephonic phone call to
be made; and
Inform the consumer in a clear and conspicuous manner that he or she is not required to
agree to receive calls, text messages, or direct-to-voicemail recordings as a condition of
purchasing any property, goods, or services.
This will generally conform Florida’s telephone solicitor language to the federal TCPA
provisions regarding autodialed calls and calls that will play a prerecorded message. However,
this bill applies the requirement for a consumer’s prior express consent to all calls equally, and
does not follow the TCPA’s distinction between residential and cellular telephone calls.
The bill also deletes language that allows telephonic sales calls that are made with an autodialer
or that will play a recorded message upon connection with the consumer in the following specific
cases: those made in response to a call initiated by the consumer; those made only to persons
whose phone numbers are not unlisted or are not on the “Do Not Call” list, and those made
regarding goods or services that the consumer previously purchased. Therefore, those telephonic
sales calls, text messages, and direct-to voicemail messages are now also prohibited without
prior written express consent.
The bill creates a rebuttable presumption under s. 501.059(8), F.S., that a telephonic sales call
(which includes telephone calls, text messages, and direct-to-voicemail transmissions) made to a
Florida area code is made to a Florida resident or to a person who is in Florida at the time of the
call. It is unclear whether this presumption will apply to all telephonic sales call regulations
within s. 501.059, F.S., or just those listed under s. 501.059(8), F.S.
32
Section 501.059(9), F.S.
BILL: SB 1682 Page 7
The bill creates a private cause of action to enforce violations of the provision. An aggrieved
party may petition a court to enjoin the violating party and may receive an award of either actual
damages or $500, whichever is greater, in addition to attorney fees and costs. A court may
increase damages by up to three times if it finds that the defendant willfully or knowingly
violated s. 501.059, F.S.
The bill takes effect on July 1, 2021.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
Federal Preemption
The TCPA expressly permits state regulations that impose more restrictive intrastate
requirements or regulations on, or which prohibit:
The use of telephone facsimile machines or other electronic devices to send
unsolicited advertisements;
The use of automatic telephone dialing systems;
The use of artificial or prerecorded voice messages; or
The making of telephone solicitations.33
In fact, it expressly disclaims a complete preemption of state laws that govern the
regulation of unsolicited sales calls and the improper use of prerecorded messages
claims.34 A Florida district court of appeal determined that Florida’s regulation of
recorded messages and autodialers, although more stringent than the TCPA, was not
preempted by the federal law because Congress had indicated that the TCPA was the
“‘minimum necessary to protect the public against the harm caused by’ automated dialing
33
47 U.S.C. § 227(e).
34
47 U.S.C. § 227(g)(6). See also, TSA Stores, Inc. v. Dep’t. of Ag. And Consumer Servs., 957 So.2d 25, 28 (Fla. 5th DCA
2007).
BILL: SB 1682 Page 8
machines.”35 The Court further reasoned that “[e]ven though it [Congress] recognized
that states might not have jurisdiction over interstate communications, Congress thus
provided language that specifically allows states to impose more restrictive measures in
this area.”36
Additionally, the TCPA clearly contemplates that state attorneys general or other
designated state official has authority to bring civil actions on behalf of the state’s
residents to enjoin calls that violate the TCPA and to recover damages.37
Commercial Speech Regulations
In Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council, the
Supreme Court held that commercial speech should receive First Amendment
protections.38 The Court based its opinion on the public’s right to receive a free flow of
commercial information.39 Although commercial speech does receive protection, it is
below the protection provided to completely protected speech, and states retain the ability
to regulate commercial speech that is inherently misleading or that has proven to be
misleading in practice.40
In Central Hudson Gas & Elec. Corp. v. Public Service Commission of New York, the
Supreme Court established a four-part test for analyzing the limitations of advertising
regulations.41 Under the Central Hudson test, a state must show that any commercial
speech regulation is aimed at regulating lawful and “non-misleading” commercial speech
in service of a substantial state interest, in a manner that directly advances that interest,
and that is no more extensive than necessary to serve that interest.42 Although
commercial speech regulations must meet the Central Hudson test, in Bates v. State Bar
of Arizona, the Supreme Court held that reasonable time, place, and manner restrictions
on advertising are authorized if the content or subject matter is not regulated.43
Content-Based Speech Regulations
A government may impose reasonable time, place, and manner restrictions on speech.
However, Content-based laws are subject to strict scrutiny.44 A law is a content-based
regulation of speech if it, on its face, draws distinctions based on the message a speaker
conveys or singles out specific subject matter for differential treatment.45
35
TSA Stores, Inc. v. Dep’t. of Ag. And Consumer Servs., 957 So.2d 25, 30 (Fla. 5th DCA 2007), quoting S. Rep. No. 102-178
at 5 (1991).
36
Id. at 31, citing FreeEats.Com, Inc. v. Indiana, 2006 WL 3025810 (S.D.Ind. Oct. 24, 2006).
37
47 U.S.C. § 227 (g).
38
See Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council, 96 S. Ct. 1817 (1976).
39
Id.
40
See In re R.M.J., 102 S. Ct. 929 (1982).
41
See Central Hudson Gas & Elec. Corp. v. Public Service Commission of New York, 100 S. Ct. 2343 (1980).
42
Id.
43
See Bates v. State Bar of Arizona, 97 S. Ct. 2691 (1977).
44
Id.
45
Reed v. Town of Gilbert, 576 U.S. 155, 163-169, 135 S. Ct. 2218 (2015).
BILL: SB 1682 Page 9
A 2015 amendment to the TCPA allowed robocalls and prerecorded messages to be made
to cellphone users to collect government debt. The U.S. Supreme Court determined this
to be an invalid, content-based regulation of speech. The Court invalidated the 2015
amendment that allowed the government debt collection calls, and left the overall ban on
robocalls and prerecorded messages intact.46
Commerce Clause
A state law that has the practical effect of regulating commerce that occurs entirely
outside of the State’s borders is invalid under the Commerce Clause of the of the U.S.
Constitution, regardless of its intent to reach outside of the state’s borders.47 Conversely,
the dormant commerce clause prohibits states from enacting laws that unduly burden
interstate commerce.48
A Florida law that prohibited persons from causing false information to be displayed on
the call recipient’s caller ID system was found to regulate commerce wholly outside of
Florida by making it impossible for parties to use or offer caller ID spoofing services
anywhere.49 The Court reasoned that the law affected interstate commerce because the
increased use of mobile phones and call forwarding make it impossible to be certain
where the parties one calls are located.
For example, a business located in New York might place a call,
using caller ID spoofing services, to a telephone number with an
Ohio area code. Because of call forwarding and the mobility of
cellular telephones, the recipient of that call might be present in
Florida, and the New York business would be criminally liable for
violating [the law] when they called the Ohio telephone number.
… The logical consequence of this impossibility is that Plaintiffs
are unable to offer caller ID spoofing services anywhere in the
country without risking criminal liability under Florida’s statute.50
It is unclear whether the bill’s presumption regarding Florida area codes will have an
effect on interstate commerce to an extent that has the practical effect of regulating
commerce outside of Florida’s borders.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
46
Barr v. American Association of Political Consultants, Inc., 140 S. Ct. 2335, 2345-2346 (2020).
47
Healy v. Beer Institute, Inc., 491 U.S. 324, 332 (1989). See also, U.S. CONST. art. 1 § 8, cl. 3.
48
Pike v. Bruce Church, Inc., 397 U.S. 137, 90 S.Ct. 844 (1970).
49
Taltech Systems, Inc. v. McCollum, 2009 WL 10626585 (S.D. Fla. July 16, 2009).
50
Id.
BILL: SB 1682 Page 10
B. Private Sector Impact:
Businesses that make telephonic sales calls, text messages, or direct-to-voicemail
transmissions either with an autodialer or for the purpose of playing a recorded message
to a Florida consumer or to a phone with a Florida-based area code may have to adjust
their businesses to accommodate this restriction.
C. Government Sector Impact:
This will likely lead to an increase in the investigations and enforcement actions
undertaken by the Department of Agriculture and Consumer Services relating to
violations of the provisions of this bill.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends s. 501.059 of the Florida Statutes:
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2021 SB 1682 Florida Senate - 2021 SB 1682
By Senator Gruters
23-01533B-21 20211682__ 23-01533B-21 20211682__
1 A bill to be entitled 30 1. Bears the signature of the called party;
2 An act relating to telephone solicitation; amending s. 31 2. Clearly authorizes the person making or allowing the
3 501.059, F.S.; defining terms; prohibiting certain 32 placement of a telephonic sales call by telephone call, text
4 telephonic sales calls without the prior express 33 message, or voicemail transmission to deliver or cause to be
5 written consent of the called party; removing 34 delivered to the called party a telephonic sales call using an
6 provisions authorizing the use of certain automated 35 automated system for the selection or dialing of telephone
7 telephone dialing systems; providing a rebuttable 36 numbers, the playing of a recorded message when a connection is
8 presumption for certain calls made to an area code in 37 completed to a number called, or the transmission of a
9 this state; providing a cause of action for aggrieved 38 prerecorded voicemail;
10 called parties; authorizing a court to increase an 39 3. Includes the telephone number to which the signatory
11 award for willful and knowing violations; revising 40 authorizes a telephonic sales call to be delivered; and
12 awards of attorney fees and costs for violations to 41 4. Includes a clear and conspicuous disclosure informing
13 authorize only a prevailing defendant to receive such 42 the called party that:
14 an award; providing an effective date. 43 a. By executing the agreement, the called party authorizes
15 44 the person making or allowing the placement of a telephonic
16 Be It Enacted by the Legislature of the State of Florida: 45 sales call to deliver or cause to be delivered a telephonic
17 46 sales call to the called party using an automated system for the
18 Section 1. Present paragraphs (a) through (e) and (f) 47 selection or dialing of telephone numbers or the playing of a
19 through (i) of subsection (1) of section 501.059, Florida 48 recorded message when a connection is completed to a number
20 Statutes, are redesignated as paragraphs (b) through (f) and (i) 49 called; and
21 through (l), respectively, new paragraphs (a), (g), and (h) are 50 b. He or she is not required to directly or indirectly sign
22 added to that subsection, and subsections (8), (10), (11), and 51 the written agreement or to agree to enter into such an
23 (12) are amended, to read: 52 agreement as a condition of purchasing any property, goods, or
24 501.059 Telephone solicitation.— 53 services.
25 (1) As used in this section, the term: 54 (h) “Signature” includes an electronic or digital
26 (a) “Called party” means a person who is the regular user 55 signature, to the extent that such form of signature is
27 of the telephone number who receives a telephonic sales call. 56 recognized as a valid signature under applicable federal law or
28 (g) “Prior express written consent” means a written 57 state contract law.
29 agreement that: 58 (8)(a) A No person may not shall make or knowingly allow a
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59 telephonic sales call to be made if such call involves an 88 telephone number is capable of receiving telephone calls and
60 automated system for the selection or dialing of telephone 89 must connect the original call recipient, upon calling such
61 numbers or the playing of a recorded message when a connection 90 number, to the telephone solicitor or to the seller on behalf of
62 is completed to a number called without the prior express 91 which a telephonic sales call was placed. For purposes of this
63 written consent of the called party. 92 section, the term “caller identification service” means a
64 (b) Nothing herein prohibits the use of an automated 93 service that allows a telephone subscriber to have the telephone
65 telephone dialing system with live messages if the calls are 94 number and, where available, the name of the calling party
66 made or messages given solely in response to calls initiated by 95 transmitted contemporaneously with the telephone call and
67 the persons to whom the automatic calls or live messages are 96 displayed on a device in or connected to the subscriber’s
68 directed or if the telephone numbers selected for automatic 97 telephone.
69 dialing have been screened to exclude any telephone subscriber 98 (c)(d) It shall be unlawful for any person who makes a
70 who is included on the department’s then-current “no sales 99 telephonic sales call or causes a telephonic sales call to be
71 solicitation calls” listing or any unlisted telephone number, or 100 made to intentionally alter the voice of the caller in an
72 if the calls made concern goods or services that have been 101 attempt to disguise or conceal the identity of the caller in
73 previously ordered or purchased. 102 order to defraud, confuse, or financially or otherwise injure
74 (c) It shall be unlawful for any person who makes a 103 the recipient of a telephonic sales call or in order to obtain
75 telephonic sales call or causes a telephonic sales call to be 104 personal information from the recipient of a telephonic sales
76 made to fail to transmit or cause not to be transmitted the 105 call which may be used in a fraudulent or unlawful manner.
77 originating telephone number and, when made available by the 106 (d) There is a rebuttable presumption that a telephonic
78 telephone solicitor’s carrier, the name of the telephone 107 sales call made to an area code in this state is made to a
79 solicitor to any caller identification service in use by a 108 Florida resident or to a person in this state at the time of the
80 recipient of a telephonic sales call. However, it is shall not 109 call.
81 be a violation to substitute, for the name and telephone number 110 (10)(a) A called party who is aggrieved by a violation of
82 used in or billed for making the call, the name of the seller on 111 this section may bring an action to:
83 behalf of which a telephonic sales call is placed and the 112 1. Enjoin such violation.
84 seller’s customer service telephone number, which is answered 113 2. Recover actual damages or $500, whichever is greater.
85 during regular business hours. If a telephone number is made 114 (b) If the court finds that the defendant willfully or
86 available through a caller identification service as a result of 115 knowingly violated this section or rules adopted pursuant to
87 a telephonic sales call, the solicitor must ensure that 116 this section, the court may, in its discretion, increase the
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117 amount of the award to an amount equal to not more than three 146 (a) Annual inserts in the billing statements mailed to
118 times the amount available under paragraph (a). 147 customers; and
119 (11)(a) If a plaintiff prevails in any civil litigation 148 (b) Conspicuous publication of the notice in the consumer
120 resulting from a transaction involving a violation of this 149 information pages of the local telephone directories.
121 section, the prevailing party, after judgment in the trial court 150 (13)(12) The department may adopt rules to implement this
122 and exhaustion of all appeals, if any, the plaintiff shall 151 section.
123 receive his or her reasonable attorney attorney’s fees and costs 152 Section 2. This act shall take effect July 1, 2021.
124 from the defendant nonprevailing party.
125 (b) The attorney for the prevailing plaintiff party shall
126 submit a sworn affidavit of his or her time spent on the case
127 and his or her costs incurred for all the motions, hearings, and
128 appeals to the trial judge who presided over the civil case.
129 (c) The trial judge shall award the prevailing plaintiff
130 party the sum of reasonable costs incurred in the action plus a
131 reasonable legal fee for the hours actually spent on the case as
132 sworn to in an affidavit.
133 (d) Any award of attorney attorney’s fees or costs shall
134 become a part of the judgment and subject to execution as the
135 law allows.
136 (e) In any civil litigation initiated by the department or
137 the Department of Legal Affairs, the court may award to the
138 prevailing party reasonable attorney attorney’s fees and costs
139 if the court finds that there was a complete absence of a
140 justiciable issue of either law or fact raised by the losing
141 party or if the court finds bad faith on the part of the losing
142 party.
143 (12)(11) Telecommunications companies shall inform their
144 customers of the provisions of this section. The notification
145 may be made by:
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CourtSmart Tag Report
Room: SB 110 Case No.: Type:
Caption: Commerce and Tourism Committee Judge:
Started: 3/29/2021 3:30:44 PM
Ends: 3/29/2021 5:57:34 PM Length: 02:26:51
3:30:43 PM Roll call, Quorum is present
3:31:31 PM SB 1882 is Temporarily Postponed
3:31:46 PM SB 1906 is introduced by Senator Brodeur
3:43:45 PM Senator Pizzo has a question for Brodeur
3:44:54 PM Senator Brodeur answers
3:46:01 PM Senator Pizzo has a follow up question
3:47:35 PM Senator Brodeur answers
3:48:36 PM Senator Pizzo has a follow up question
3:49:39 PM Senator Brodeur answers
3:50:46 PM Senator Taddeo has a question
3:51:49 PM Senator Brodeur answers
3:52:36 PM Senator Taddeo has a follow up question
3:53:28 PM Amendment 565626 by Senator Torres is introduced
3:54:48 PM Karen Woodall, FL Center for Fiscal & Ec. Policy waives in support
3:55:05 PM Appearance by Dr. Rich Templin, AFL-CIO, speaks in support
3:57:13 PM Senator Powell debates in favor of amendment
3:57:55 PM Senator Brodeur speaks against amendment
3:58:58 PM Senator Torres closes on amendment 565626
3:59:42 PM Amendment is not adopted
4:00:43 PM Amendment 810712 is introduced by Senator Brodeur
4:01:50 PM Senator pizzo has question on amendment
4:02:22 PM Appearance by Karen Woodall, FL Center for Fiscal & Ec. Policy waives in support of amendment
4:03:01 PM Appearance by Dr. Rich Templin, AFL-CIO speaks in support
4:03:46 PM Senator Taddeo is in debate
4:04:31 PM Senator Powell is in debate
4:05:13 PM Amendment 810712 is adopted
4:05:36 PM Amendment 608332 is introduced by Senator Powell
4:06:09 PM Appearance by Karen Woodall, FL Center for Fiscal & Ec. Policy waives in support
4:06:47 PM Appearance by Dr. Rich Templin, AFL-CIO speaks in support
4:07:48 PM Senator Brodeur debates on the amendment
4:08:37 PM Senator Powell closes on his amendment
4:09:30 PM Amendment fails
4:10:33 PM Amendment 238872 by Senator Powell is introduced
4:11:30 PM Appearance by Karen Woodall, FL Center for Fiscal & Ec. Policy speaks in in support
4:12:55 PM Debate by Senator Taddeo
4:14:06 PM Debate by Senator Brodeur
4:16:01 PM Senator Powell closes on his amendment
4:16:38 PM Amendment fails
4:18:09 PM Amendment 321614 withdrawn
4:18:18 PM Amendment 774460 by Senator Powell
4:19:10 PM Senator Pizzo question to sponsor
4:19:26 PM Karen Woodall, FL Center for Fiscal & Ec. Policy speaking for the amendment
4:22:11 PM Speaker, Dr. Rich Templin, AFL-CIO for the amendment
4:23:02 PM Debate on Powell amendment
4:23:09 PM Sen. Brodeur comment on amendment
4:24:10 PM Senator Powell close on amendment
4:24:56 PM Amendment fails
4:25:02 PM Back on bill as amended
4:25:10 PM Sen. Pizzo question/comment
4:25:49 PM Response by bill sponsor
4:26:01 PM Sen. Pizzo follow up
4:26:32 PM Response of sponsor
4:26:41 PM Sen. Pizzo follow up
4:26:57 PM Response of sponsor
4:27:03 PM Back and forth of Sen. Pizzo and bill sponsor
4:28:47 PM Chair Hooper question to Sen. Pizzo
4:29:00 PM Sen. Pizzo further explain
4:29:40 PM Sen. Brodeur responds
4:30:35 PM Dr. Rich Templin, AFL-CIO speaking for the bill
4:33:15 PM Speaker, Karen Woodall, Center for Fiscal & Ec. Policy speaking for the bill
4:35:16 PM In debate:
4:35:20 PM Sen. Pizzo
4:38:10 PM Sen. Torres in debate.
4:39:13 PM Sen. Powell
4:41:35 PM Sen. Taddeo comments
4:43:50 PM Sen. Diaz
4:44:32 PM Sen. Brodeur closes on SB 1906
4:46:07 PM Roll call on SB 1906
4:46:21 PM SB 1906 passes as CS favorably
4:46:47 PM CS/SB 954 by Sen. Bean
4:48:36 PM Questions
4:48:39 PM Sen. Torres to sponsor
4:49:15 PM Sponsor response
4:50:11 PM Sen. Torres follow up
4:50:25 PM Sponsor response
4:50:53 PM Speaker, Martha Edenfield, The Real Property, Probate and Trust Law Sect of the FL Bar speaking
against bill
4:51:40 PM Sen. Pizzo to Ms. Edenfield
4:52:56 PM Ms. Edenfield response
4:54:18 PM Debate:
4:54:20 PM Sen. Pizzo
4:55:01 PM Sen. Torres in debate
4:55:23 PM Sen. Bean close on CS/SB 954
4:56:14 PM Roll call on CS/SB 954
4:56:25 PM CS/SB 954 passes favorably
4:56:56 PM Tab 8, SB 1390 by Sen. Gruters
4:57:14 PM Amendment 301108 by Sen. Gruters
4:58:56 PM Questions on amendment:
4:59:03 PM Sen. Powell question
4:59:20 PM Sen. Gruters responds
4:59:46 PM Sen. Powell follow up
5:00:03 PM Sen. Gruters responds
5:00:56 PM Sen. Gruters closes on amendment
5:01:04 PM Amendment 301108 is adopted
5:01:23 PM
5:01:25 PM Brewster Bevis, Associated Industries waive in support
5:01:33 PM Carolyn Johnson, FL Chamber of Commerce waive in support
5:01:44 PM Angela Dempsey, Motion Picture Association waive in support
5:01:45 PM Will McKinley, Entertainment Software Association waive in support
5:02:00 PM Sen. Gruters closes on bill as amended
5:02:22 PM Roll call on SB 1390
5:02:35 PM SB 1390 passes as CS favorably
5:02:48 PM Tab 9, SB 1682 by Sen. Gruters
5:03:55 PM Speaker, Ed Normand, FL Justice Association speaking for the bill
5:05:11 PM David Serdar, speaking for the bill
5:05:46 PM Debate on bill:
5:05:51 PM Sen. Pizzo
5:06:17 PM Sen. Gruters close on SB 1682
5:06:31 PM Roll call on SB 1682
5:06:41 PM SB 1682 passes favorably
5:06:59 PM Tab 3, SB 1176 by Sen. Stewart
5:07:52 PM Sen. Pizzo, question to sponsor
5:08:03 PM Response of sponsor
5:08:28 PM Sen. Powell, question
5:09:05 PM Response of sponsor
5:09:17 PM Diego Echeverri, Americans for Prosperity, waive in support
5:09:29 PM Cesar Grajales, The Libre Initiative waive in support
5:09:33 PM Christian Camara, Institute for Justice, speaking in support
5:10:36 PM Debate: None
5:10:45 PM Sen. Stewart waives close
5:10:55 PM Roll call
5:10:59 PM SB 1176 passes favorably
5:11:27 PM In informal recess while wait on bill sponsors
5:11:44 PM Recording Paused
5:13:36 PM Recording Resumed
5:13:42 PM Chair Hooper calls Sen. Brandes, Tab 7, SB 1758
5:14:55 PM Speaker, Jeffrey Sharkey, FL BlockChain Alliance waive in support
5:15:07 PM Russ Weigel, Office of financial regulation, waive in support
5:15:20 PM Sen. Brandes waives close
5:15:29 PM Roll call
5:15:31 PM SB 1758 passes favorably
5:15:49 PM Tab 4, SB 1246 by Sen. Rodrigues
5:18:30 PM Sen. Torres question to sponsor
5:18:43 PM Response of sponsor
5:19:19 PM Speaker, Jim East, The Hertz Corp. waive in support
5:20:02 PM Sen. Rodrigues waive close
5:20:11 PM Roll call
5:20:14 PM SB 1246 passes favorably
5:20:28 PM Chair Hooper comments to committee/staff
5:22:14 PM Sen. Taddeo comments and motion to be shown voting Yea on SB 758
5:22:46 PM Sen. Wright comments and motions to Vote Yea on Tab 6
5:23:08 PM Motion by Sen. Burgess to Vote Yea on Tab 7, SB 1758
5:23:24 PM Tab 2, SB SB 1072 by Sen. Baxley
5:25:51 PM Sen. Taddeo questions to bill sponsor
5:26:23 PM Sen. Baxley response
5:28:10 PM Sen. Taddeo further question
5:28:54 PM Further response of sponsor
5:29:53 PM Sen. Powell, question
5:30:45 PM Response of sponsor
5:30:46 PM Follow up question
5:32:28 PM Sen. Baxley further responds
5:33:50 PM Sen. Powell in questions
5:34:20 PM Sen. Baxley responds
5:34:42 PM Sen. Pizzo question to sponsor
5:36:20 PM Sen. Baxley responds
5:38:16 PM Sen. Pizzo follow up
5:40:42 PM Sen. Hutson question
5:41:13 PM Sen. Baxley response
5:42:08 PM Sen. Hutson follow up
5:42:26 PM Sen. Baxley responds
5:42:55 PM Paul Keller, The Home Depot speaking for the bill
5:46:20 PM Speaker, Grace Lovett, Florida Retail Federation, speaking for the bill
5:47:43 PM Speaker, Sally West, Walgreens for the bill
5:48:04 PM Sen. Hutson motion to stop testimony at 5:53PM
5:50:20 PM Sen. Pizzo question to Ms. West
5:50:53 PM Response of speaker
5:51:03 PM Further comment, Sen. Pizzo
5:51:15 PM Greg Black, International Council of Shopping Centers waive in support
5:51:22 PM Servando Esparza, Tech Net waive against
5:51:33 PM Alli Liby-Schoonover, Ebay waive against bill
5:51:49 PM David Serdar, speaking for the bill
5:52:11 PM Debate:
5:52:15 PM Sen. Pizzo
5:52:50 PM Sen. Torres
5:53:08 PM Sen. Taddeo
5:54:01 PM Sen. Powell
5:54:21 PM Sen. Hutson comments
5:54:52 PM Sen. Baxley close on bill
5:55:11 PM Roll call
5:55:19 PM SB 1072 passes favorably
5:56:00 PM Sen. Powell comments to staff
5:56:42 PM Sen. Torres comments
5:57:08 PM Sen. Torres moves adjournment
5:57:16 PM Committee adjourned
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