Post Meeting Packet - Florida Senate Commerce and Tourism (January 10, 2022)
Summary
A post-meeting packet for the Florida Senate Committee on Commerce and Tourism meeting of Monday, January 10, 2022, in the 2022 Regular Session, with Senator Hooper as Chair and Senator Wright as Vice Chair. The expanded agenda lists SB 842 by Brodeur (Invalid Restrictive Covenants in Health Care), SB 418 by Pizzo (Assistive Technology Advisory Council), SB 546 by Gruters (Consumer Finance Loans) and SB 946 by Gruters (Entertainment Industry). It records SB 842 as Favorable with Yeas 10 and Nays 0, and SB 946 with Yeas 9 and Nays 1. The packet ends with a timed meeting record stating that SB 418 and SB 842 were reported favorably.
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Cite this document
“Post Meeting Packet - Florida Senate Commerce and Tourism (January 10, 2022).”
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Selection From: 01/10/2022 - Commerce and Tourism (4:00 PM - 6:00 PM) 2022 Regular Session
Customized 01/12/2022 11:35 AM
Amendment Status
Tab 1 SB 842 by Brodeur; (Identical to H 01449) Invalid Restrictive Covenants in Health Care
SB 418 by Pizzo (CO-INTRODUCERS) Jones, Gruters, Perry; (Identical to H 00055) Assistive Technology
Tab 2
Advisory Council
Tab 3 SB 546 by Gruters; (Similar to CS/H 00123) Consumer Finance Loans
SB 946 by Gruters (CO-INTRODUCERS) Wright, Hooper, Stewart, Berman, Jones, Harrell, Taddeo,
Tab 4
Gibson, Torres, Polsky, Ausley, Rouson; (Similar to H 00217) Entertainment Industry
Page 1 of 1
2022 Regular Session The Florida Senate
COMMITTEE MEETING EXPANDED AGENDA
COMMERCE AND TOURISM
Senator Hooper, Chair
Senator Wright, Vice Chair
MEETING DATE: Monday, January 10, 2022
TIME: 4:00—6:00 p.m.
PLACE: Toni Jennings Committee Room, 110 Senate Building
MEMBERS: Senator Hooper, Chair; Senator Wright, Vice Chair; Senators Diaz, Garcia, Gruters, Hutson, Pizzo,
Powell, Taddeo, and Torres
BILL DESCRIPTION and
TAB BILL NO. and INTRODUCER SENATE COMMITTEE ACTIONS COMMITTEE ACTION
1 SB 842 Invalid Restrictive Covenants in Health Care; Defining Favorable
Brodeur the terms “hospital” and “physician”; specifying that Yeas 10 Nays 0
(Identical H 1449) certain restrictive covenants in employment
agreements between physicians and hospitals do not
support a legitimate business interest; authorizing a
party to an employment agreement to elect to have a
mutually agreed upon arbitrator make a specified
binding determination, etc.
CM 01/10/2022 Favorable
HP
RC
2 SB 418 Assistive Technology Advisory Council; Revising Favorable
Pizzo provisions relating to the membership of and Yeas 10 Nays 0
(Identical H 55) appointments and reappointments to the Assistive
Technology Advisory Council; requiring council
members to select a chair from among the council
membership; revising provisions relating to
committees appointed to perform the council’s
functions; expanding the council’s functions to include
fundraising activities, etc.
ED 11/30/2021 Favorable
CM 01/10/2022 Favorable
RC
3 SB 546 Consumer Finance Loans; Authorizing an applicant Favorable
Gruters for a license to make and collect loans under the Yeas 10 Nays 0
(Similar CS/H 123) Florida Consumer Finance Act to provide certain
documents in lieu of evidence of liquid assets;
prohibiting a person licensed to make and collect
consumer finance loans from charging prepayment
penalties for loans; authorizing a licensee or an
applicant for a license to make and collect consumer
finance loans to provide a surety bond, certificate of
deposit, or letter of credit in lieu of evidence of liquid
assets; modifying grounds for denial of license or
disciplinary action for certain violations of the Florida
Consumer Finance Act, etc.
BI 12/01/2021 Favorable
CM 01/10/2022 Favorable
RC
S-036 (10/2008)
01102022.1638 Page 1 of 2
COMMITTEE MEETING EXPANDED AGENDA
Commerce and Tourism
Monday, January 10, 2022, 4:00—6:00 p.m.
BILL DESCRIPTION and
TAB BILL NO. and INTRODUCER SENATE COMMITTEE ACTIONS COMMITTEE ACTION
4 SB 946 Entertainment Industry; Creating the Targeted High Favorable
Gruters Wage Production Program within the Department of Yeas 9 Nays 1
(Similar H 217) Economic Opportunity under the supervision of the
Commissioner of Film and Entertainment; requiring
that film, television, and digital media projects being
produced in this state meet specified criteria to be
eligible for tax credit awards; requiring a certified
project to make a good faith effort to use existing
providers of infrastructure or equipment in this state
and to employ residents of this state; requiring the
Florida Film and Entertainment Advisory Council to
determine a score for each qualified project using
specified criteria; requiring the department to
disqualify a project under certain circumstances, etc.
CM 01/10/2022 Favorable
FT
AP
Other Related Meeting Documents
S-036 (10/2008)
01102022.1638 Page 2 of 2
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 842
INTRODUCER: Senator Brodeur
SUBJECT: Invalid Restrictive Covenants in Health Care
DATE: January 7, 2022 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. McMillan McKay CM Favorable
2. HP
3. RC
I. Summary:
SB 842 amends Florida’s non-compete statute, which allows for the enforcement of contracts
that restrict or prohibit competition as long as such contracts are reasonable in time, area, and
line of business. Under current law, a person seeking enforcement of a non-compete agreement
must prove the existence of one or more “legitimate business interests,” which include trade
secrets; valuable confidential business or professional information; substantial relationships with
specific prospective or existing customers, patients, or clients; customer goodwill associated with
an ongoing business by way of trade name, specific geographic location, or specific marketing or
trade area; or extraordinary or specialized training.
The bill provides that a restrictive covenant in an employment agreement between a physician
and a hospital is not supported by a legitimate business interest if it does not include an option
for the physician to buy out of the restrictive covenant at a reasonable price. If such an option is
not provided, the restrictive covenant is void and unenforceable. This provision applies to
restrictive covenants entered into on or after July 1, 2022. The bill also provides that any party to
an employment agreement which believes that the price to buy out of the restrictive covenant in
the agreement is unreasonable may elect to have a mutually agreed upon arbitrator determine a
reasonable price.
The bill takes effect July 1, 2022.
BILL: SB 842 Page 2
II. Present Situation:
Federal Antitrust Laws
In 1890, Congress passed the first antitrust law, the Sherman Act, as a comprehensive charter of
economic liberty aimed at preserving free and unfettered competition as the rule of trade.
Congress subsequently passed two additional antitrust laws in 1914: the Federal Trade
Commission Act, which created the Federal Trade Commission (FTC), and the Clayton Act.
Currently, these are the three core federal antitrust laws.1
The Sherman Act
The Sherman Act outlaws every contract, combination, or conspiracy in restraint of trade, and
any monopolization, attempted monopolization, or conspiracy or combination to monopolize.
The Sherman Act does not prohibit every restraint of trade, only those that are unreasonable. For
example, an agreement between two individuals to form a partnership may restrain trade, but
may not do so unreasonably, and thus may be lawful under the antitrust laws. In contrast, certain
acts are considered “per se” violations of the Sherman Act because they are so harmful to
competition. These include plain arrangements among competing individuals or businesses to fix
prices, divide markets, or rig bids.2
The penalties for violating the Sherman Act can be severe. Although most enforcement actions
are civil, the Sherman Act is also a criminal law, and individuals and businesses that violate it
may be prosecuted by the U.S. Department of Justice (DOJ). Criminal prosecutions are typically
limited to intentional and clear violations, such as when competitors fix prices or rig bids. The
Sherman Act imposes criminal penalties of up to $100 million for a corporation and $1 million
for an individual, along with up to 10 years in prison.3 Under some circumstances, the maximum
fines can reach twice the gain or loss involved.4
The Federal Trade Commission Act
The Federal Trade Commission Act prohibits unfair methods of competition and unfair or
deceptive acts or practices. The Supreme Court has said that all violations of the Sherman Act
also violate the FTC Act. Therefore, the FTC can bring cases under the FTC Act against the
same kinds of activities that violate the Sherman Act. The FTC Act also reaches other practices
that harm competition but that may not fit neatly into categories of conduct formally prohibited
by the Sherman Act. Only the FTC brings cases under the FTC Act.5
1
See The Antitrust Laws, Federal Trade Commission, available at https://www.ftc.gov/tips-advice/competition-
guidance/guide-antitrust-laws/antitrust-laws (last visited Jan. 7, 2022).
2
Id.
3
See Antitrust Enforcement and the Consumer, U.S. Department of Justice, available at
https://www.justice.gov/atr/file/800691/download (last visited Jan. 7, 2022).
4
Id.
5
See The Antitrust Laws, Federal Trade Commission, available at https://www.ftc.gov/tips-advice/competition-
guidance/guide-antitrust-laws/antitrust-laws (last visited Jan. 7, 2022).
BILL: SB 842 Page 3
The Clayton Act
The Clayton Act addresses specific practices that the Sherman Act does not clearly prohibit, such
as mergers and interlocking directorates.6 It also bans mergers and acquisitions where the effect
may substantially lessen competition or create a monopoly. As amended by the Robinson-
Patman Act of 1936, the Clayton Act also prohibits certain discriminatory prices, services, and
allowances in dealings between merchants. The Clayton Act was amended again in 1976 by the
Hart-Scott-Rodino Antitrust Improvements Act to require companies planning large mergers or
acquisitions to notify the government of their plans in advance. Additionally, private parties are
authorized to sue for triple damages when they have been harmed by conduct that violates either
the Sherman or Clayton Act and to obtain a court order prohibiting the anticompetitive practice
in the future.7
Florida Antitrust Laws
Florida law also provides protections against anticompetitive practices. Chapter 542, F.S., the
Florida Antitrust Act of 1980, has a stated purpose to complement the body of federal law
prohibiting restraints of trade or commerce in order to foster effective competition.8 It outlaws
every contract, combination, or conspiracy in restraint of trade or commerce in Florida9 and any
person from monopolizing or attempting or conspiring to monopolize any part of trade.10
Contracts in Restraint of Trade or Commerce
Generally, a contract in restraint of trade or commerce in Florida is unlawful.11 However, non-
competition restrictive covenants12 contained in employment agreements that are reasonable in
time, area, and line of business are not prohibited.13 In any action concerning enforcement of a
restrictive covenant, a court may not enforce a restrictive covenant unless it is set forth in a
writing signed by the person against whom enforcement is sought, and the person seeking
enforcement of a restrictive covenant must prove the existence of one or more legitimate
business interests justifying the restrictive covenant.14 The term “legitimate business interest”
includes, but is not limited to:
Trade secrets;15
Valuable confidential business or professional information that otherwise does not qualify as
trade secrets;
6
“Interlocking directorates” means the same person making business decisions for competing companies. See also Id.
7
Id.
8
Section 542.16, F.S.
9
Section 542.18, F.S.
10
Section 542.19, F.S.
11
Section 542.18, F.S.
12
Section 542.335, F.S. employs the term “restrictive covenants” and includes all contractual restrictions such as
noncompetition/nonsolicitation agreements, confidentiality agreements, exclusive dealing agreements, and all other
contractual restraints of trade. See Henao v. Prof'l Shoe Repair, Inc., 929 So.2d 723, 726 (Fla. 5th DCA 2006).
13
Section 542.335(1), F.S.
14
Id.
15
Section 688.002(4), F.S., defines a trade secret as information, including a formula, pattern, compilation, program, device,
method, technique, or process that derives independent economic value, actual or potential, from not being generally known
to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure
or use; and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
BILL: SB 842 Page 4
Substantial relationships with specific prospective or existing customers, patients, or clients;
Customer, patient, or client goodwill associated with:
o An ongoing business or professional practice, by way of trade name, trademark, service
mark, or “trade dress”;
o A specific geographic location; or
o A specific marketing or trade area; or
Extraordinary or specialized training.16
Any restrictive covenant not supported by a legitimate business interest is unlawful and is void
and unenforceable.17 A person seeking enforcement of a restrictive covenant must prove that the
contractually specified restraint is reasonably necessary to protect the legitimate business interest
or interests justifying the restriction.18
Restrictive Covenants in Healthcare
Currently in Florida, a restrictive covenant entered into with a physician who practices a medical
specialty in a county where one entity employs or contracts with all physicians who practice that
specialty in that county is not supported by a legitimate business interest, and is void and
unenforceable.19 The restrictive covenant remains void and unenforceable until 3 years after the
date on which a second entity that employs or contracts with one or more physicians who
practice that specialty begins serving patients in that county.20
III. Effect of Proposed Changes:
The bill amends s. 542.336, F.S., to provide that a restrictive covenant in an employment
agreement between a physician and a hospital is not supported by a legitimate business interest if
it does not include an option for the physician to buy out of the restrictive covenant at a
reasonable price.21 If such an option is not provided, the restrictive covenant is void and
unenforceable. This provision applies to restrictive covenants entered into on or after July 1,
2022. The bill also provides that any party to an employment agreement which believes that the
price to buy out of the restrictive covenant in the agreement is unreasonable may elect to have a
mutually agreed upon arbitrator determine a reasonable price.
The bill establishes the following definitions:
“Hospital” means a hospital as defined in s. 395.002(13), F.S.,22 which is licensed under
Chapter 395 of the Florida Statutes and part II of Chapter 408 of the Florida Statutes; and
16
Section 542.335(1)(b), F.S.
17
Id.
18
Section 542.335(1)(c), F.S.
19
Section 542.336, F.S.
20
Id.
21
The bill does not define the term “reasonable price,” which may lead to differing interpretations of the meaning of the term.
22
Section 395.002(13), F.S. defines “hospital” as any establishment that offers services more intensive than those required
for room, board, personal services, and general nursing care, and offers facilities and beds for use beyond 24 hours by
individuals requiring diagnosis, treatment, or care for illness, injury, deformity, infirmity, abnormality, disease, or pregnancy,
and regularly makes available at least clinical laboratory services, diagnostic X-ray services, and treatment facilities for
surgery or obstetrical care, or other definitive medical treatment of similar extent, except that a critical access hospital, as
defined in s. 408.07, F.S., must not be required to make available treatment facilities for surgery, obstetrical care, or similar
BILL: SB 842 Page 5
“Physician” means a person licensed to practice medicine under Chapter 458 of the Florida
Statutes or osteopathic medicine under Chapter 459 of the Florida Statutes.
The bill takes effect July 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:
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The ability for physicians to buy out of a restrictive covenant in an employment
agreement with a hospital may provide patients with more access to physicians and
decrease healthcare costs.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
services as long as it maintains its critical access hospital designation and must be required to make such facilities available
only if it ceases to be designated as a critical access hospital.
BILL: SB 842 Page 6
VII. Related Issues:
If parties to an employment agreement mutually agree that arbitration is necessary, the Florida
Arbitration Code applies.23
VIII. Statutes Affected:
This bill substantially amends section 542.336 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.
23
See s. 682.013, F.S.
Florida Senate - 2022 SB 842 Florida Senate - 2022 SB 842
By Senator Brodeur
9-00540-22 2022842__ 9-00540-22 2022842__
1 A bill to be entitled 30 in that county is not supported by a legitimate business
2 An act relating to invalid restrictive covenants in 31 interest. The Legislature finds that such covenants restrict
3 health care; amending s. 542.336, F.S.; defining the 32 patient access to physicians, increase costs, and are void and
4 terms “hospital” and “physician”; specifying that 33 unenforceable under current law. Such restrictive covenants
5 certain restrictive covenants in employment agreements 34 shall remain void and unenforceable for 3 years after the date
6 between physicians and hospitals do not support a 35 on which a second entity that employs or contracts with, either
7 legitimate business interest; authorizing a party to 36 directly or through related or affiliated entities, one or more
8 an employment agreement to elect to have a mutually 37 physicians who practice such specialty begins offering such
9 agreed upon arbitrator make a specified binding 38 specialty services in that county.
10 determination; providing a legislative finding; 39 (3) A restrictive covenant in an employment agreement
11 providing applicability; providing an effective date. 40 between a physician and a hospital is not supported by a
12 41 legitimate business interest if it does not include an option
13 Be It Enacted by the Legislature of the State of Florida: 42 for the physician to buy out of the restrictive covenant at a
14 43 reasonable price. Any party to an employment agreement which
15 Section 1. Section 542.336, Florida Statutes, is amended to 44 believes that the price to buy out of the restrictive covenant
16 read: 45 in the agreement is unreasonable may elect to have a mutually
17 542.336 Invalid restrictive covenants.— 46 agreed upon arbitrator determine a reasonable price, and such
18 (1) As used in this section, the term: 47 arbitrator’s decision is binding on the parties. The Legislature
19 (a) “Hospital” means a hospital as defined in s. 48 finds that a restrictive covenant without this option limits
20 395.002(13) which is licensed under chapter 395 and part II of 49 patient access to physicians and increases costs and is void and
21 chapter 408. 50 unenforceable. This subsection applies to restrictive covenants
22 (b) “Physician” means a person licensed to practice 51 entered into on or after July 1, 2022.
23 medicine under chapter 458 or osteopathic medicine under chapter 52 Section 2. This act shall take effect July 1, 2022.
24 459.
25 (2) A restrictive covenant entered into with a physician
26 who is licensed under chapter 458 or chapter 459 and who
27 practices a medical specialty in a county wherein one entity
28 employs or contracts with, either directly or through related or
29 affiliated entities, all physicians who practice such specialty
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
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 418
INTRODUCER: Senator Pizzo and others
SUBJECT: Assistive Technology Advisory Council
DATE: January 7, 2022 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Palazesi Bouck ED Favorable
2. McMillan McKay CM Favorable
3. RC
I. Summary:
SB 418 modifies the composition of the Florida Assistive Technology Advisory Council
(Council), which is responsible for the comprehensive statewide program of technology related
assistance for individuals with disabilities. The bill also:
Removes the maximum limit on Council membership and modifies requirements specifying
representation on the Council;
Requires the appointment of a single chair of the Council;
Modifies requirements for reappointments to the Council;
Removes the designation of specific committees; and
Expands the Council’s functions to include fundraising activities.
The bill takes effect on July 1, 2022.
II. Present Situation:
Assistive technology helps people with disabilities live, work, learn, and play as independently
as possible. It is any device, item, gadget, tool, hardware, or software used to increase, maintain,
or improve the functional capabilities of both individuals of all ages who have disabilities and
older adults who may find a need for assistance. Assistive technology provides people who have
disabilities the option to access education and the workplace, to live within their communities,
and enjoy recreational activities.1
1
Florida Alliance for Assistive Services & Technology, What is Assistive Technology (A.T.)? https://faast.org/ (last visited
Jan. 7, 2022).
BILL: SB 418 Page 2
Federal Law
In 2004, the Assistive Technology Act of 1998 was amended by the Assistive Technology Act of
2004 (Act), to recognize the substantial progress that had been made in the development of
assistive technology devices that benefit individuals with disabilities.2 The Act requires the
Secretary of Education to support state grant programs that assist states in undertaking activities
for maximizing the ability of individuals with disabilities across the human lifespan and across
the wide array of disabilities.3 In addition, the Act requires states to establish advisory councils
for the purpose of consumer-response and consumer-driven advice to the state for planning,
implementation, and evaluation of activities carried out through the grants made available by the
Act.4
The state implemented advisory council must be comprised of the following members:5
Individuals with disabilities that use assistive technology or the family members or guardians
of the individuals;
A representative of the designated State agency;
A representative of a state center for independent living;
A representative of the state workforce development board established under section 101 of
the Workforce Innovation and Opportunity Act;
A representative of the State educational agency; and
Representatives of other state agencies, public agencies, or private organizations, as
determined by the state.
Further, states are required to ensure a majority of the members of the advisory council are
members appointed as individuals with disabilities, or family members or guardians of
individuals with disabilities that use assistive technology.6 The council must also be
geographically representative of the state and reflect the diversity of the state with respect to
race, ethnicity, types of disabilities across the age span, and users of types of services that an
individual with a disability may receive.7
Florida Law
The Assistive Technology Advisory Council (Council) is responsible for ensuring consumer
involvement in the creation, application, and distribution of technology-related assistance to and
for persons who have disabilities.8 The Council acts as the board of directors and provides
direction, through a not-for-profit corporation created by the Division of Vocational
2
29 U.S.C. s. 3001, et. seq.
3
29 U.S.C. s. 3003(a).
4
29 U.S.C. s. 3003(c)(2)(A).
5
29 U.S.C. s. 3003(c)(2)(B)(i).
6
29 U.S.C. s. 3003(c)(2)(B)(ii)(I).
7
29 U.S.C. s. 3003(c)(2)(B)(iii).
8
Section 413.407, F.S.
BILL: SB 418 Page 3
Rehabilitation (DVR) of the Department of Education, to Florida’s Alliance for Assistive
Services and Technology.9
The Council may not exceed 27 members at any one time. The Council must be composed of the
following members:10
Individuals who have disabilities11 and who are assistive technology consumers or family
members or guardians of those individuals;12
Representatives of consumer organizations concerned with assistive technology;
Representatives of business and industry, including the insurance industry, concerned with
assistive technology;
A representative of the Division of Vocational Rehabilitation;
A representative of the Division of Blind Services;
A representative of the Florida Independent Living Council;
A representative of CareerSource Florida, Inc.;
A representative of the Department of Education; and
Representatives of other state agencies that provide or coordinate services for persons with
disabilities.
The Council is appointed by the Commissioner of Education from a list of candidates proposed
by the director of the DVR.13 The Council is required to appoint two co-chairs among the
membership of the Council.14 Members of the Council serve for a term of 3 years and cannot
serve more than two consecutive terms, and a member that has served two consecutive terms
must be retired from the council for at least 1 year prior to reappointment.15
Members of the Council are required to appoint committees made up of members of the council
to focus on specific issues within the council’s mandates.16 The Council’s committees must
include, but are not limited to:17
An interagency committee composed of those members representing state agencies;18
9
Section 413.407(2)(a) F.S. Florida’s Alliance for Assistive Services and Technology is a project sponsored by the
Department of Education for the coordination and delivery of appropriate, cost-effective, state-of-the-art assistive technology
services and devices. See Id.
10
Section 413.407(1)(a), F.S.
11
A “disability” means a physical or mental impairment that constitutes or results in a substantial impediment to
employment. See s. 413.20(7), F.S.
12
These individuals must make up a majority of the membership.
13
Section 413.407(1)(b), F.S.
14
Section 413.407(1)(d), F.S.
15
Section 413.407(1)(e), F.S.
16
Committees may request and accept in-kind contributions of personnel from public or private entities to supply such
staffing as the committees deem necessary to carry out their individual mandates. See s. 413.407(2)(b), F.S.
17
Section 413.407(2)(b), F.S.
18
The interagency committee must work towards the development of cooperative agreements among government agencies
and perform other duties as the council deems appropriate. The interagency committee’s members must assign staff from
their respective agencies to the alliance, as an in-kind contribution for a specified period of time, to review federal and state
legislation and agency policies and practices and to identify both facilitators of, and barriers to, accessibility and utilization of
assistive technology services, devices, and funding sources. See s. 413.407(2)(b)1., F.S.
BILL: SB 418 Page 4
A technology-awareness committee to guide the Council’s public awareness, coordination,
and collaboration activities; and
A public policy and advocacy committee to review federal and state legislation and agency
policies and practices and to identify facilitators of and barriers to access and utilization of
assistive technology services, devices, and funding sources.
III. Effect of Proposed Changes:
The bill modifies s. 413.407, F.S., to revise the composition of the Florida Assistive Technology
Council (Council) to allow only one representative of a consumer organization and one
representative of business and industry. The bill authorizes a representative from a center for
independent living, rather than from the Florida Independent Living Council. The bill also
provides that a representative from another state agency that provides or coordinates services for
persons with disabilities can be added to the Council if requested by a majority vote of the
Council members, and that representative must be appointed by the head of the corresponding
state agency. Additionally, the bill removes the requirement that Council membership may not
exceed 27 members.
The bill aligns the Council membership with federal requirements that members of the Council
be geographically representative of the state, reflective of the diversity of the state’s population
with respect to race, ethnicity, age, gender, type of disability, and type of disability-related
services and devices received. The bill directs the Council to elect a single chair of the council.
The bill maintains the limit of two consecutive terms for members, but revises the number of
years a council member must be retired from the Council after two consecutive terms to be
reappointed, from 1 year to 3 years.
The bill deletes the requirement that Council members form a technology awareness committee
and a public policy and advocacy committee. The bill removes the interagency committee, and
assigns the duties of that committee to the members representing state agencies. The bill also
allows Council members to participate in fundraising activities on behalf of the Council, which
could lead to additional funding for the Council.
The bill takes effect on July 1, 2022.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
BILL: SB 418 Page 5
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:
The bill allows the Council to do fundraising activities. Section 20.03, F.S., provides that a
“council” or “advisory council” means an advisory body created by specific statutory enactment
and appointed to function on a continuing basis for the study of the problems arising in a
specified functional or program area of state government and to provide recommendations and
policy alternatives.
VIII. Statutes Affected:
This bill substantially amends section 413.407 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 - 2022 SB 418 Florida Senate - 2022 SB 418
By Senator Pizzo
38-00542-22 2022418__ 38-00542-22 2022418__
1 A bill to be entitled 30 1. Persons Individuals who have disabilities and who are
2 An act relating to the Assistive Technology Advisory 31 assistive technology consumers or family members or guardians of
3 Council; amending s. 413.407, F.S.; revising 32 those persons individuals.
4 provisions relating to the membership of and 33 2. A representative Representatives of a consumer
5 appointments and reappointments to the Assistive 34 organization organizations concerned with assistive technology.
6 Technology Advisory Council; requiring council members 35 3. A representative Representatives of business and
7 to select a chair from among the council membership; 36 industry, including the insurance industry, concerned with
8 revising provisions relating to committees appointed 37 assistive technology.
9 to perform the council’s functions; expanding the 38 4. A representative of the Division of Vocational
10 council’s functions to include fundraising activities; 39 Rehabilitation.
11 providing an effective date. 40 5. A representative of the Division of Blind Services.
12 41 6. A representative of a center for independent living the
13 Be It Enacted by the Legislature of the State of Florida: 42 Florida Independent Living Council.
14 43 7. A representative of CareerSource Florida, Inc.
15 Section 1. Section 413.407, Florida Statutes, is amended to 44 8. A representative of the Department of Education.
16 read: 45 9. A representative Representatives of any other state
17 413.407 Assistive Technology Advisory Council.—There is 46 agency agencies that provides or coordinates provide or
18 created the Assistive Technology Advisory Council, responsible 47 coordinate services for persons with disabilities, if requested
19 for ensuring consumer involvement in the creation, application, 48 by a majority vote of the council members.
20 and distribution of technology-related assistance to and for 49
21 persons who have disabilities. The council shall fulfill its 50 Total membership on the council may not exceed 27 at any one
22 responsibilities through statewide policy development, both 51 time. A majority of the members shall be appointed in accordance
23 state and federal legislative initiatives, advocacy at both the 52 with subparagraph 1.
24 state and federal levels level, planning of statewide resource 53 (b) Members of the council shall be appointed by the
25 allocations, policy-level management, and reviews of both 54 Commissioner of Education from a list of candidates proposed by
26 consumer responsiveness and the adequacy of program service 55 the division director. However, a member who is a representative
27 delivery, and by performing the functions listed in this 56 of a state agency shall be appointed by the head of that state
28 section. 57 agency.
29 (1)(a) The council shall be composed of: 58 (c) A majority of council members must shall be persons who
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59 have disabilities as defined in s. 413.20 and s. 413.20(7) who 88 council shall be filled in the same manner as the original
60 are also consumers of assistive technology or family members or 89 appointment. A vacancy does not affect the power of the
61 guardians of such persons. 90 remaining members to execute the duties of the council.
62 (d) Members of the council must be geographically 91 (2) In addition to the other functions specified in this
63 representative of the state and reflect the diversity of the 92 section, the council shall:
64 state’s population with respect to race, ethnicity, gender, age, 93 (a) Act as the board of directors of a not-for-profit
65 type of disability, and type of disability-related services and 94 corporation created by the division. Through the corporation,
66 devices received. 95 the council shall provide direction to the Florida Florida’s
67 (e)(d) The members of the council shall select a chair two 96 Alliance for Assistive Services and Technology, a project
68 co-chairs from among the membership of the council. 97 sponsored by the department for the coordination and delivery of
69 1. One co-chair may be selected from the group described in 98 appropriate, cost-effective, state-of-the-art assistive
70 paragraph (c) and one co-chair shall be selected from the other 99 technology services and devices.
71 council members. 100 (b) Appoint committees made up of members of the council to
72 2. The chair No co-chair may not be an elected member or an 101 focus on specific issues within the council’s mandate.
73 employee of a state agency or of any political subdivision of 102 Committees may request and accept in-kind contributions of
74 the state. 103 personnel from public or private entities to supply such
75 (f)1.(e)1. Each member of the council shall serve for a 104 staffing as the committees deem necessary to carry out their
76 term of not more than 3 years, except that a member appointed to 105 individual mandates. These committees shall include, but are not
77 fill a vacancy occurring before prior to the expiration of the 106 limited to:
78 term for which a predecessor was appointed shall be appointed 107 1. Members who are representatives of state agencies
79 for the remainder of such term. 108 serving on the committees An interagency committee composed of
80 2. A No member of the council may not serve more than two 109 those members representing state agencies. The interagency
81 consecutive terms; however, any appointment under subparagraph 110 committee shall work towards the development of cooperative
82 1., if for less than 18 months, is shall not be considered a 111 agreements among government agencies and perform such other
83 term for the purposes of this section. 112 duties as the council deems appropriate.
84 3. A member who has served two consecutive terms and has 113 2. Members who are representatives of state agencies
85 been retired from the council for at least 3 years 1 year may be 114 serving on the committees The interagency committee’s members
86 reappointed to the council on the same basis as a new member. 115 shall assign staff from their respective agencies to the
87 (g)(f) Any vacancy occurring in the membership of the 116 alliance, as an in-kind contribution for a specified period of
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117 time, to review federal and state legislation and agency 146 of its discussions and recommendations and must, all of which
118 policies and practices and to identify both facilitators of, and 147 reports shall be made available to the public.
119 barriers to, accessibility and utilization of assistive 148 (3) In accordance with Pub. L. No. 108-364, the council
120 technology services, devices, and funding sources. 149 shall:
121 2. A technology-awareness committee to guide the council’s 150 (a) Investigate financing options that will increase access
122 public awareness, coordination, and collaboration activities. 151 to and funding for assistive technology devices and assistive
123 3. A public policy and advocacy committee to review federal 152 technology services.
124 and state legislation and agency policies and practices and to 153 (b) Develop assistive technology demonstrations,
125 identify facilitators of and barriers to access and utilization 154 reutilization programs, and loan programs.
126 of assistive technology services, devices, and funding sources. 155 (c) Provide training and technical assistance in order to
127 (c) Review and approve all reports, recommendations, and 156 increase knowledge and awareness of the uses and benefits of
128 proposed actions of committee staff. 157 assistive technology devices and assistive technology services.
129 (d) Appoint the executive director of the alliance who is. 158 (d) Promote public awareness activities designed to provide
130 The executive director shall be responsible for the overall 159 information relating to the benefits of assistive technology
131 administration and day-to-day direction of the alliance, 160 devices and assistive technology services.
132 including the as well as supervision of all staff. 161 (e) Promote coordination and collaboration among public and
133 (e) Annually review and approve the strategic or business 162 private entities that are responsible for policies, procedures,
134 plan of the alliance, as submitted by the executive director. 163 or funding for the provision of assistive technology devices and
135 (f) Submit an annual comprehensive report of the activities 164 assistive technology services.
136 of the council, the corporation, and the alliance to the 165 Section 2. This act shall take effect July 1, 2022.
137 division director.
138 (g) Perform such other functions, including fundraising
139 activities, as the council determines to be appropriate which
140 are comparable to functions performed by the council.
141 (h) Convene at least four meetings each year in locations
142 that such places as it determines to be necessary to conduct
143 council business and may conduct such forums or hearings as it
144 the council considers appropriate. The council shall make a
145 report of each meeting which must contain shall include a record
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2021 AGENCY LEGISLATIVE BILL ANALYSIS
Florida Office of Financial Regulation
BILL INFORMATION
BILL NUMBER: HB 895
BILL TITLE: Consumer Finance Loans
BILL SPONSOR: Representative Stevenson
EFFECTIVE DATE: July 1, 2021
COMMITTEES OF REFERENCE CURRENT COMMITTEE
1)
2)
3) SIMILAR BILLS
BILL NUMBER:
4)
SPONSOR:
5)
IDENTICAL BILLS
BILL NUMBER:
PREVIOUS LEGISLATION
BILL NUMBER: SPONSOR:
SPONSOR:
YEAR:
LAST ACTION: Is this bill part of an agency package?
No
BILL ANALYSIS INFORMATION
DATE OF ANALYSIS: February 17, 2021
LEAD AGENCY ANALYST: Alexander J. Anderson, Director of Legislative Affairs
(850) 410-9601
ADDITIONAL ANALYST(S): Gregory C. Oaks, Director, Division of Consumer Finance
(850) 410-9601
LEGAL ANALYST: Tony Cammarata, General Counsel
(850) 410-9601
FISCAL ANALYST: Buckley Vernon, Financial Administrator
(850) 410-9673
2021 Agency Bill Analysis
POLICY ANALYSIS
1. EXECUTIVE SUMMARY
The legislation would amend s. 516.031, F.S., by explicitly prohibiting a consumer finance company licensee from
charging a prepayment penalty to a borrower paying all or part of loan principal before the due date.
The legislation would amend s. 516.36, F.S., by requiring a consumer finance loan to have a loan term of at least
90 days for loans with a principal balance of no more than $4,000 at the time of origination, or a term of at least
12 months for loans with a principal balance exceeding $4,000 at the time of origination.
The legislation would also apply to a financial technology sandbox licensee licensed pursuant to chapter 559,
F.S., offering consumer finance loans under chapter 516, F.S.
The provisions of the bill would take effect July 1, 2021.
2. SUBSTANTIVE BILL ANALYSIS
1. PRESENT SITUATION:
The Office of Financial Regulation has regulatory oversight over consumer finance companies licensed pursuant
to chapter 516, F.S., money services businesses licensed pursuant to chapter 560, F.S., and financial technology
sandbox business entities licensed pursuant to chapter, F.S., and other financial services entities. As of February
16, 2021, the office records reflect 170 consumer finance companies who hold a total of 382 licenses.
Under the current provisions of chapter 516, F.S., in order to lend any amount up to $25,000 and charge an interest
greater than 18% per annum, a person must be licensed as a consumer finance company. The maximum interest
rates on a consumer finance loan are incremental: 30% per annum, computed on the first $3,000 of the principal
amount; 24% per annum computed on the part of the principal amount exceeding $3,000 and up to $4,000; and
18% per annum on the part of the principal exceeding $4,000 and up to $25,000.
In addition to interest charges, current law only allows the following charges: an amount up to $25 for costs
related to investigating the character and credit of the borrower; an annual fee of $25 on each line-of-credit
account; charges paid for the brokerage fee on a loan or line of credit of more than $10,000; a delinquency
charge of up to $15 for each payment in default for at least 10 days if the charge is agreed upon, in writing,
between the parties before imposing the charge; and certain other allowable ancillary fees and charges related
to the loan. See s. 516.031(3), F.S.
If all or part of the consideration for a new loan contract is the unpaid principal balance of a prior loan, the principal
amount payable under the new loan contract may include not more than 60 days’ unpaid interest accrued on the
prior loan.
Every loan made pursuant to chapter 516, F.S., except for lines of credit, are to be repaid in periodic
installments as nearly equal as mathematically practicable, except that the final payment may be less than the
amount of the prior installments. Installments may be due every 2 weeks, semimonthly, or monthly.
Section 516.15(3), F.S., requires a licensee to permit payment of a loan, in whole or in part, prior to its
maturity, with interest owed up until the date of such payment.
Section 516.031, F.S., sets forth the only charges permissible under chapter 516, F.S. As a pre-payment penalty
is not an allowable charge under section 516.031, F.S., a licensee is implicitly prohibited from charging a
prepayment penalty.
Current law does not set a minimum or maximum loan term. The loan term is negotiated between the licensee and
borrower.
Certain financial technology sandbox business entities licensed pursuant to s. 559.952, F.S., may operate as
consumer finance companies pursuant to limited provisions of chapter 516, F.S. Such licensees are subject to the
provisions of section 516.031, F.S., which sets forth the only allowable charges. Additionally, such licensees are
2
2021 Agency Bill Analysis
subject to the provisions of section 516.36, F.S., meaning such licensees must act in accordance with installment
loan requirements found in section 516.36, F.S.
Persons licensed pursuant to part IV, of chapter 560, F.S., as deferred presentment providers are authorized to
enter into deferred presentment installment transactions with consumers. Such transactions allow a consumer to
borrow up to $1,000 for a period of at least 60-days, but not beyond 90-days, repayable in substantially equal and
consecutive installments according to a payment schedule agreed upon by the parties with no less than 13 days
and not more than 1 calendar month between payments, except that the first payment may be longer than 13 days
and may be greater than the rest of the payments.
2. EFFECT OF THE BILL:
Section 1 explicitly provides that a licensee may not require a borrower to pay a prepayment penalty for paying
all or part of a loan principal before the payment due date. Section 516.15, F.S., requires a licensee to allow
payment of a loan, in part or whole, prior to its maturity with interest owed up until the date of such payment. As
such, the proposed law and the current law allow for the pre-payment of a loan before it reaches maturity. The
proposed law prohibits a pre-payment penalty, while the current law in section 516.15, F.S., prohibits the
assessment of interest after the payment.
Section 516.031, F.S., limits a licensees’ ability to assess certain charges. Consequently, only those charges
explicitly set forth in section 516.031, F.S., may be charged. A pre-payment penalty is not one of the charges
prescribed in s. 516.031, F.S., hence, a licensee is prohibited from charging a borrower a pre-payment penalty.
Much like the proposed language, section 516.031, F.S., prohibits a licensee from charging a pre-payment
penalty, except that once the proposed language becomes law, such behavior would be an explicit prohibition
rather than an implied prohibition.
Additionally, the bill would require other entities licensed by the Office to comply with its provisions. Certain
financial technology sandbox business entities licensed pursuant to section 559.952, F.S., may operate as
consumer finance companies pursuant to limited provisions of chapter 516, F.S. Such licensees are subject to the
provisions of section 516.031, F.S., and would therefore need to comply with the bill’s provisions.
Section 2 requires loan terms of at least 90 days for loans with a principal balance of no more than $4,000 at the
time of origination, while requiring a loan term of at least 12 months for loans with a principal balance exceeding
$4,000 at the time of origination. Current law does not set forth a minimum or maximum loan term. As such, the
new provisions would now require licensees to set minimum and maximum loan terms in accordance with
statutory provisions.
Once in effect, the new provisions would create a loan product substantially similar to a deferred presentment
installment product offered under part IV of chapter, 560, F.S. Under chapter 560, a customer may enter into a
deferred presentment installment transaction that allows a customer to borrow up to $1,000 for a period of at least
60-days, but not beyond 90-days.
This new provision would not only include consumer finance companies licensed under chapter 516, F.S., but
would also include financial technology sandbox licensees licensed pursuant to chapter 559, F.S., offering
consumer finance loans. Once in effect, the new provisions would require such licensees to set minimum and
maximum loan terms.
Section 3 provides an effective date of July 1, 2021, meaning the Office would begin enforcing the provisions of
Section 1 and Section 2, on or after July 1, 2021.
3. DOES THE LEGISLATION DIRECT OR ALLOW THE AGENCY/BOARD/COMMISSION/DEPARTMENT TO
DEVELOP, ADOPT, OR ELIMINATE RULES, REGULATIONS, POLICIES, OR PROCEDURES? Y☐ N☒
If yes, explain:
Is the change consistent
with the agency’s core Y☐ N☒
mission?
Rule(s) impacted (provide
references to F.A.C., etc.): None
3
2021 Agency Bill Analysis
4. WHAT IS THE POSITION OF AFFECTED CITIZENS OR STAKEHOLDER GROUPS?
Proponents and summary
of position: Unknown
Opponents and summary of
position: Unknown
5. ARE THERE ANY REPORTS OR STUDIES REQUIRED BY THIS BILL? Y☐ N☒
If yes, provide a
description:
Date Due:
Bill Section Number(s):
6. ARE THERE ANY NEW GUBERNATORIAL APPOINTMENTS OR CHANGES TO EXISTING BOARDS, TASK
FORCES, COUNCILS, COMMISSIONS, ETC. REQUIRED BY THIS BILL? Y☐ N☒
Board:
Board Purpose:
Who Appoints:
Changes:
Bill Section Number(s):
FISCAL ANALYSIS
1. FISCAL IMPACT TO LOCAL GOVERNMENT Y☐ N☒
Revenues:
Expenditures:
Does the legislation
increase local taxes or No
fees? If yes, explain.
If yes, does the legislation
provide for a local
referendum or local
governing body public vote
prior to implementation of
the tax or fee increase?
2. FISCAL IMPACT TO STATE GOVERNMENT Y☐ N☒
Revenues:
Expenditures:
4
2021 Agency Bill Analysis
Does the legislation contain
a State Government No
appropriation?
If yes, was this
appropriated last year?
3. FISCAL IMPACT TO THE PRIVATE SECTOR Y☐ N☒
Revenues: Unknown
Expenditures:
Unknown
Other:
Unknown
4. DOES THE BILL INCREASE OR DECREASE TAXES, FEES, OR FINES? Y☐ N☒
If yes, explain impact.
Bill Section Number:
TECHNOLOGY IMPACT
1. DOES THE BILL IMPACT THE AGENCY’S TECHNOLOGY SYSTEMS (I.E. IT SUPPORT, LICENSING
SOFTWARE, DATA STORAGE, ETC.)? Y☐ N☒
If yes, describe the
anticipated impact to the
agency including any fiscal
impact.
FEDERAL IMPACT
1. DOES THE BILL HAVE A FEDERAL IMPACT (I.E. FEDERAL COMPLIANCE, FEDERAL FUNDING, FEDERAL
AGENCY INVOLVEMENT, ETC.)? Y☐ N☒
If yes, describe the
anticipated impact including
any fiscal impact.
ADDITIONAL COMMENTS
5
2021 Agency Bill Analysis
LEGAL - GENERAL COUNSEL’S OFFICE REVIEW
Issues/concerns/comments: OGC has reviewed the agency’s bill analysis concerning HB 895, and the
analysis sufficiently details the effect of the bill and the areas of impact. OGC
has no issues, concerns or further comments regarding the bill.
6
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 546
INTRODUCER: Senator Gruters
SUBJECT: Consumer Finance Loans
DATE: January 7, 2022 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Arnold Knudson BI Favorable
2. Harmsen McKay CM Favorable
3. RC
I. Summary:
SB 546 amends the Florida Consumer Finance Act, ch. 516, F.S., to:
Expressly prohibit prepayment penalties for consumer finance loans;
Authorize an applicant for licensure as a consumer finance lender or a licensee to provide a
surety bond, certificate of deposit, or letter of credit in the amount of $25,000, in lieu of the
application requirement to prove that they have at least $25,000 in liquid assets;
Require a company with at least one currently licensed location to provide a rider or surety
bond of at least $5,000 for each additional license; however, the maximum aggregate
requirement for such a company is $100,000; and
Make conforming changes.
The bill takes effect October 1, 2022.
II. Present Situation:
The Office of Financial Regulation’s (OFR) Division of Consumer Finance (Division) licenses
and regulates non-depository financial service entities and individuals, and conducts
investigations of licensed entities to determine their compliance with Florida law.1 One such
product regulated by the OFR is consumer finance loans. A consumer finance loan is a loan of
money, credit, goods, or interests valued at $25,000 or less with permitted interest rates of
between 18 and 30 percent per year.2 This is not a traditional loan made by a bank, credit union,
1
Fla. Office of Fin. Reg, Division of Consumer Finance: What We Do,
https://flofr.gov/sitePages/DivisionOfConsumerFinance.htm (last visited Jan. 7, 2022).
2
Sections 516.01(2) and 516.031(1), F.S. See also, Fla. Office of Fin. Reg, Consumer Finance Companies,
https://flofr.gov/sitePages/ConsumerFinanceCompanies.htm (last visited Jan. 7, 2022).
BILL: SB 546 Page 2
or similar institution. The consumer finance lenders do not accept deposits, and earn their
revenue from the fees charged on the loans they make.3
Licensure
Entities that engage in the business of making consumer finance loans must be licensed by the
Office pursuant to the Florida Consumer Finance Act, ch. 516, F.S. (“the Act”). Each location of
a consumer finance lender must be separately licensed, even if the separate locations are
operated by the same business entity.4
As of February 16, 2021, there are 170 licensed consumer finance loan companies operating in
Florida across a total of 382 locations. The yearly data for licensure under ch. 516, F.S., is
contained in the charts below.5
Chapter 516, F.S., Licenses by Year
10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20
Applications
175 41 82 116 66 102 55 96 109 100
Received
Applications
137 37 53 113 37 81 36 83 104 98
Approved
Active
347 303 293 349 331 349 338 373 348 390
Licenses
Renewals &
226 0 258 0 312 0 326 0 342 0
Reactivations
A consumer finance lender applicant must submit an application fee of $625 and an investigation
fee of $200 with its application for licensure.6 At the time of application, the applicant must
provide evidence that it has liquid assets of at least $25,000 on deposit with an insured
institution.7 An applicant’s failure to maintain liquid assets of at least $25,000 constitutes
grounds for denial of an application for licensure, and grounds for revocation or suspension of an
active license.8 Consumer finance lender licenses granted under the Act must be renewed every
two years, at which time the licensee must pay a $625 biennial license fee.9
The Act does not apply to persons doing business under state or federal laws governing banks,
savings banks, trust companies, building and loan associations, credit unions, or industrial loan
and investment companies.10
3
Naveen Reddy, What are the Primary Functions of Finance Companies? (Nov. 9, 2020),
https://smallbusiness.chron.com/primary-functions-finance-companies-40480.html (last visited January 7, 2022). Also note,
payday lenders are separately regulated pursuant to ch. 560, F.S.
4
Sections 516.01(6) and 516.05(3), F.S.
5
Office of Financial Regulation, Active Licenses, https://www.flofr.com/sitePages/documents/finregstats.pdf (last visited
January 7, 2022).
6
Section 516.03(1), F.S. See also, Fla. Office of Fin. Reg., Application for Consumer Finance Company License,
https://flofr.gov/sitePages/documents/OFR-516-01.pdf (last visited January 7, 2022).
7
Section 516.03(1), F.S. Fla. Admin. Code R. 69V-160.030(1)(d).
8
Section 516.07(1), F.S.
9
Sections 516.03(1) and 516.05(1) & (2), F.S.
10
Section 516.02(4), F.S.
BILL: SB 546 Page 3
Permissible Interest Rates and Fees
Florida’s prohibition on usury generally prohibits11 interest rates in excess of 18 percent per
annum simple interest on any loan, advance of money, line of credit, or forbearance. 12 Licensed
consumer finance lenders, however, may offer interest rates greater than 18 percent per annum
simple interest, up to the following limits, which are based on the amount of the loan’s
principal:13
30 percent on the first $3,000.
24 percent on principal above $3,000 and up to $4,000.
18 percent on principal above $4,000 and up to $25,000.
The Act prohibits lenders from directly or indirectly charging borrowers additional fees as a
condition to the grant of a loan, except for the following:14
Up to $25 for investigating the credit and character of the borrower;
A $25 annual fee on the anniversary date of each line-of-credit account;
Brokerage fees for certain loans, title insurance, and appraisals of real property offered as
security;
Intangible personal property tax on the loan note or obligation, if secured by a lien on real
property;
Documentary excise tax and lawful fees for filing, recording, or releasing an instrument
securing the loan;
The premium for any insurance in lieu of perfecting a security interest otherwise required by
the licensee in connection with the loan;
Actual and reasonable attorney fees and court costs;
Actual and commercially reasonable expenses for repossession, storing, repairing and placing
in condition for sale, and selling of any property pledged as security;
A delinquency charge of up to $15 for each payment in default for at least 10 days, if agreed
upon in writing before the charge is imposed; and
A bad check charge of up to $20.
A consumer finance lender may offer optional credit property, credit life, and disability
insurance at the borrower’s expense via a deduction from the principal amount of the loan.15
A prepayment penalty is not included in the above permissible fees, then impliedly a licensee
cannot charge a borrower a prepayment penalty.16
11
Various lenders and credits licensed or chartered under the laws of the United States or specified chapters of the Florida
Statutes may charge interest at the maximum rate of interest permitted by law for similar loans or extensions of credit. See s.
687.12(1), F.S.
12
Sections 687.02 and 687.12, F.S.
13
Section 516.031(1), F.S.
14
Section 516.031(3), F.S.
15
Section 516.35(2), F.S.
16
Section 516.031(3), F.S. Fla. Office of Fin. Reg., Agency Analysis of 2021 House Bill 895, p. 2 (Feb. 17, 2021) (on file
with the Senate Committee on Commerce and Tourism).
BILL: SB 546 Page 4
III. Effect of Proposed Changes:
Prepayment Penalties
Section 2 amends s. 516.031, F.S., to expressly prohibit prepayment penalties on consumer
finance loans. Florida law allows consumer finance lenders to charge certain expressly stated
fees. Because the list of statutorily-permissible fees does not include a prepayment penalty, by
implication, a consumer finance lender cannot charge a prepayment penalty. The bill makes this
prohibition on prepayment penalties explicit.
Asset Requirements in Lender Application
Section 3 creates s. 516.05(10), F.S., to allow a consumer finance lender applicant or licensee to
file proof of one of the following with the OFR in lieu of the current $25,000 liquid asset
application requirement:
A surety bond in the amount of at least $25,000 that is issued by a bonding company or an
insurance company that is authorized to do business in Florida;
A certificate of deposit in the amount of at least $25,000 deposited in a financial institution
as defined in s. 655.005(1)(i), F.S; or
An irrevocable letter of credit in the amount of at least $25,000.
The bill requires lenders with multiple locations to provide a surety bond or rider in the amount
of at least $5,000 for each additional license. The total aggregate amount of a surety bond
required for a lender with multiple locations may not exceed $100,000.
If the licensee’s surety bond, certificate of deposit, or letter of credit is reduced below the
required amount at any point during the licensee’s activity, the licensee must furnish additional
instruments to restore its capacity to a sum equal that required by the bill. In the alternative, the
licensee may provide an endorsement from the company that issued the original instrument that
reinstates the required principal amount.
The applicant must file the surety bond, certificate of deposit, or letter of credit with the OFR,
name the OFR as a beneficiary, and ensure that the instrument is payable on a pro rata basis.
Although the OFR serves as the named beneficiary, the bill grants both the OFR and any
claimant the right to bring an action on the bond, certificate of deposit, or letter of credit in the
case of injury to a borrower who was injured by the licensee’s wrongful acts. If any such claim is
paid, the bonding company, insurance company, or financial institution that held the instrument
must notify the OFR within 10 days of the claim.
A licensee cannot cancel its surety bond, certificate of deposit, or letter of credit without
providing the OFR with 30 calendar days’ notice by certified mail. Following the licensee’s
cessation of operation in the state, its surety bond, certificate of deposit, or letter of credit must
remain in place for a period of 2 years, although the OFR may allow for a reduction in its amount
to the extent that the licensee’s outstanding loans are reduced.
The bill authorizes the Financial Services Commission to initiate rulemaking to adopt forms and
procedures to implement the alternatives to the liquid asset requirement.
BILL: SB 546 Page 5
Conforming Changes
Sections 1, 4, and 5 amend ss. 516.03, 516.07, 559.952, F.S., respectively, to make conforming
changes to reflect the consumer finance loans licensing requirements added by section three of
this bill.
Effective Date
Section 6 provides an effective date of October 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 identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
This may allow companies with less liquid assets to become licensed as a consumer
finance lender.
C. Government Sector Impact:
The OFR may be required to update Rule 69V-160 of the Florida Administrative Code to
reflect changes made by the bill. Additionally, the OFR may need to amend their
applications for consumer finance loan company licenses to allow applicants to assert
BILL: SB 546 Page 6
what amount of liquid assets, surety bond, letter of credit, or certificate of deposit is
required of them since their business relation to a previously-licensed entity may reduce
their surety bond, letter of credit, or certificate of deposit requirements.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 516.03, 516.031,
516.05, 516.07, and 559.952.
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 - 2022 SB 546 Florida Senate - 2022 SB 546
By Senator Gruters
23-00431-22 2022546__ 23-00431-22 2022546__
1 A bill to be entitled 30 under this chapter shall be in the form prescribed by rule of
2 An act relating to consumer finance loans; amending s. 31 the commission. The commission may require each applicant to
3 516.03, F.S.; authorizing an applicant for a license 32 provide any information reasonably necessary to determine the
4 to make and collect loans under the Florida Consumer 33 applicant’s eligibility for licensure. The applicant shall also
5 Finance Act to provide certain documents in lieu of 34 provide information that the office requires concerning any
6 evidence of liquid assets; amending s. 516.031, F.S.; 35 officer, director, control person, member, partner, or joint
7 prohibiting a person licensed to make and collect 36 venturer of the applicant or any person having the same or
8 consumer finance loans from charging prepayment 37 substantially similar status or performing substantially similar
9 penalties for loans; amending s. 516.05, F.S.; 38 functions or concerning any individual who is the ultimate
10 authorizing a licensee or an applicant for a license 39 equitable owner of a 10-percent or greater interest in the
11 to make and collect consumer finance loans to provide 40 applicant. The office may require information concerning any
12 a surety bond, certificate of deposit, or letter of 41 such applicant or person, including, but not limited to, his or
13 credit in lieu of evidence of liquid assets; providing 42 her full name and any other names by which he or she may have
14 requirements for such bonds, certificates of deposit, 43 been known, age, social security number, residential history,
15 and letters of credit; providing rulemaking authority 44 qualifications, educational and business history, and
16 to the Financial Services Commission; amending s. 45 disciplinary and criminal history. The applicant must provide
17 516.07, F.S.; modifying grounds for denial of license 46 evidence of liquid assets of at least $25,000 or documents
18 or disciplinary action for certain violations of the 47 satisfying the requirements of s. 516.05(10). At the time of
19 Florida Consumer Finance Act; amending s. 559.952, 48 making such application the applicant shall pay to the office a
20 F.S.; revising exceptions for a licensee during the 49 nonrefundable biennial license fee of $625. Applications, except
21 Financial Technology Sandbox period; providing an 50 for applications to renew or reactivate a license, must also be
22 effective date. 51 accompanied by a nonrefundable investigation fee of $200. An
23 52 application is considered received for purposes of s. 120.60
24 Be It Enacted by the Legislature of the State of Florida: 53 upon receipt of a completed application form as prescribed by
25 54 commission rule, a nonrefundable application fee of $625, and
26 Section 1. Subsection (1) of section 516.03, Florida 55 any other fee prescribed by law. The commission may adopt rules
27 Statutes, is amended to read: 56 requiring electronic submission of any form, document, or fee
28 516.03 Application for license; fees; etc.— 57 required by this act if such rules reasonably accommodate
29 (1) APPLICATION.—Application for a license to make loans 58 technological or financial hardship. The commission may
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59 prescribe by rule requirements and procedures for obtaining an 88 least $25,000.
60 exemption due to a technological or financial hardship. 89 (b) The original surety bond, certificate of deposit, or
61 Section 2. Subsection (6) is added to section 516.031, 90 letter of credit must be filed with the office, and the office
62 Florida Statutes, to read: 91 must be named as beneficiary. The surety bond, certificate of
63 516.031 Finance charge; maximum rates.— 92 deposit, or letter of credit must be for the use and benefit of
64 (6) PREPAYMENT PENALTIES PROHIBITED.—A licensee may not 93 any borrower who is injured by acts of a licensee involving
65 require a borrower to pay a prepayment penalty for paying all or 94 fraud, misrepresentation, or deceit, including willful
66 part of the loan principal before the date on which the payment 95 imposition of illegal or excessive charges, or
67 is due. 96 misrepresentation, circumvention, or concealment of any matter
68 Section 3. Subsection (10) is added to section 516.05, 97 required to be stated or furnished to a borrower, where such
69 Florida Statutes, to read: 98 acts are in connection with a loan made under this chapter. The
70 516.05 License.— 99 office, or any claimant, may bring an action in a court of
71 (10)(a) In lieu of the $25,000 liquid asset requirement in 100 competent jurisdiction on the surety bond, certificate of
72 s. 516.03(1), a licensee or an applicant may provide to the 101 deposit, or letter of credit. The surety bond, certificate of
73 office: 102 deposit, or letter of credit must be payable on a pro rata
74 1.a. A surety bond in the amount of at least $25,000, 103 basis, but the aggregate amount may not exceed the amount of the
75 issued by a bonding company or an insurance company authorized 104 surety bond, certificate of deposit, or letter of credit.
76 to do business in this state. 105 (c) The surety bond, certificate of deposit, or letter of
77 b. A company with at least one currently licensed location 106 credit may not be canceled by the licensee, bonding or insurance
78 must provide to the office a rider or surety bond in the amount 107 company, or financial institution except upon notice to the
79 of at least $5,000 for each additional license, issued by a 108 office by certified mail. A cancellation may not take effect
80 bonding company or an insurance company authorized to do 109 until 30 calendar days after receipt by the office of the
81 business in this state. However, the aggregate amount of the 110 written notice.
82 surety bond required for a company with multiple licenses may 111 (d) The bonding or insurance company or financial
83 not exceed $100,000. 112 institution must, within 10 calendar days after it pays a claim,
84 2. Evidence of a certificate of deposit in the amount of at 113 give written notice to the office by certified mail of such
85 least $25,000. The certificate of deposit must be deposited in a 114 payment, with details sufficient to identify the claimant and
86 financial institution as defined in s. 655.005(1)(i). 115 the claim or judgment paid.
87 3. An irrevocable letter of credit in the amount of at 116 (e) If the principal sum of the surety bond, certificate of
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117 deposit, or letter of credit is reduced by one or more 146 location.
118 recoveries or payments, the licensee must furnish to the office 147 Section 5. Paragraph (a) of subsection (4) of section
119 a new or additional surety bond, certificate of deposit, or 148 559.952, Florida Statutes, is amended to read:
120 letter of credit so that the total or aggregate principal sum 149 559.952 Financial Technology Sandbox.—
121 equals the amount required under this subsection. Alternatively, 150 (4) EXCEPTIONS TO GENERAL LAW AND WAIVERS OF RULE
122 a licensee may furnish an endorsement executed by the bonding or 151 REQUIREMENTS.—
123 insurance company or financial institution reinstating the 152 (a) Notwithstanding any other law, upon approval of a
124 required principal amount. 153 Financial Technology Sandbox application, the following
125 (f) The required surety bond, certificate of deposit, or 154 provisions and corresponding rule requirements are not
126 letter of credit must remain in place for 2 years after the 155 applicable to the licensee during the sandbox period:
127 licensee ceases licensed operations in this state. During the 2- 156 1. Section 516.03(1), except for the application fee, the
128 year period, the office may allow for a reduction or elimination 157 investigation fee, the requirement to provide the social
129 of the surety bond, certificate of deposit, or letter of credit 158 security numbers of control persons, evidence of liquid assets
130 to the extent the licensee’s outstanding consumer finance loans 159 of at least $25,000 or documents satisfying the requirements of
131 in this state are reduced. 160 s. 516.05(10), and the office’s authority to investigate the
132 (g) The commission may prescribe by rule forms and 161 applicant’s background. The office may prorate the license
133 procedures to implement this subsection. 162 renewal fee for an extension granted under subsection (7).
134 Section 4. Paragraph (b) of subsection (1) of section 163 2. Section 516.05(1) and (2), except that the office shall
135 516.07, Florida Statutes, is amended to read: 164 investigate the applicant’s background.
136 516.07 Grounds for denial of license or for disciplinary 165 3. Section 560.109, only to the extent that the section
137 action.— 166 requires the office to examine a licensee at least once every 5
138 (1) The following acts are violations of this chapter and 167 years.
139 constitute grounds for denial of an application for a license to 168 4. Section 560.118(2).
140 make consumer finance loans and grounds for any of the 169 5. Section 560.125(1), only to the extent that the
141 disciplinary actions specified in subsection (2): 170 subsection would prohibit a licensee from engaging in the
142 (b) Failure to maintain liquid assets of at least $25,000 171 business of a money transmitter or payment instrument seller
143 or a surety bond, certificate of deposit, or letter of credit in 172 during the sandbox period.
144 the amount required by s. 516.05(10) at all times for the 173 6. Section 560.125(2), only to the extent that the
145 operation of business at a licensed location or proposed 174 subsection would prohibit a licensee from appointing an
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175 authorized vendor during the sandbox period. Any authorized
176 vendor of such a licensee during the sandbox period remains
177 liable to the holder or remitter.
178 7. Section 560.128.
179 8. Section 560.141, except for s. 560.141(1)(a)1., 3., 7.-
180 10. and (b), (c), and (d).
181 9. Section 560.142(1) and (2), except that the office may
182 prorate, but may not entirely eliminate, the license renewal
183 fees in s. 560.143 for an extension granted under subsection
184 (7).
185 10. Section 560.143(2), only to the extent necessary for
186 proration of the renewal fee under subparagraph 9.
187 11. Section 560.204(1), only to the extent that the
188 subsection would prohibit a licensee from engaging in, or
189 advertising that it engages in, the selling or issuing of
190 payment instruments or in the activity of a money transmitter
191 during the sandbox period.
192 12. Section 560.205(2).
193 13. Section 560.208(2).
194 14. Section 560.209, only to the extent that the office may
195 modify, but may not entirely eliminate, the net worth, corporate
196 surety bond, and collateral deposit amounts required under that
197 section. The modified amounts must be in such lower amounts that
198 the office determines to be commensurate with the factors under
199 paragraph (5)(c) and the maximum number of consumers authorized
200 to receive the financial product or service under this section.
201 Section 6. This act shall take effect October 1, 2022.
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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 946
INTRODUCER: Senator Gruters and others
SUBJECT: Entertainment Industry
DATE: January 7, 2022 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Favorable
2. FT
3. AP
I. Summary:
SB 946 creates the Targeted High Wage Production Program (program) within the Department
of Economic Opportunity (DEO) in order to broaden the entertainment industry’s impact,
enhance tourism, and encourage more family-friendly productions to be produced in Florida.
The program gives tax credit awards on qualified expenditures to film, television, and digital
media production projects that, among other requirements, employ a crew of which at least 60
percent are Florida residents and spend at least 70 percent of their production days in Florida. A
project may only receive a tax credit award after it has completed production and its
expenditures have been verified by the DEO.
The Revenue Estimating Conference has not yet reviewed the economic impact of this bill.
The bill takes effect upon becoming law.
II. Present Situation:
The Florida Office of Film and Entertainment (OFE) within the DEO develops, markets,
promotes, and provides services to the state’s entertainment industry.1 The Florida Film and
Entertainment Advisory Council (council) serves as an advisory body to the DEO and OFE to
provide industry insight and expertise related to the state’s entertainment industry.2
Entertainment Industry Sales Tax Exemption
The Entertainment Industry Sales Tax Exemption (tax exemption program), administered by the
OFE, offers a sales and use tax certificate of exemption to production companies that create
1
Section 288.1251, F.S.
2
Section 288.1252, F.S.
BILL: SB 946 Page 2
qualified productions in Florida.3 The tax exemption program offers exemptions from taxes
levied under ch. 212, F.S., for the following:
Lease or rental of real property used as an integral part of the performance of qualified
production services, including photography, casting, location scouting, stage support, and
wardrobe;4
Fabrication labor when a producer is using his or her own equipment and personnel to
produce a qualified motion picture;5
Purchase or lease of motion picture or video equipment and sound recording equipment used
in Florida for motion picture or television production or for the production of master tapes
and master records;6 and
Purchase, lease, storage, or use of blank master tapes, records, films, or video tapes.7
To qualify for these tax exemptions, production companies must submit an application to the
Department of Revenue (DOR) which must then be approved by the OFE.8 If a company has
operated a business in Florida at a permanent address for at least 12 consecutive months, it is
eligible for a one-year certificate of exemption. Companies that do not qualify for a one-year
certificate are eligible for a 90-day certificate of exemption.
The OFE has estimated that qualified production companies have received $46.3 million in
exemptions between Fiscal Years 2016-2017 and 2018-2019.9
Entertainment Industry Financial Incentive Program
The Entertainment Industry Financial Incentive Program (incentive program) was created to
encourage the use of Florida as a site for filming, for the digital production of films, and to
develop and sustain the workforce and infrastructure for film, digital media, and entertainment
production.10 The incentive program offered transferrable tax credits for qualified expenditures
relating to filming and media production activities in Florida, including wages, equipment,
rentals, and other expenditures made to Florida vendors for qualified entertainment industry
productions. Qualified productions that completed their projects and had their expenses verified
by the OFE could receive 20 percent of their qualified expenditures in tax credits, capped at $8
million in tax credits awarded per project.11 Recipients were permitted to apply their tax credits
to their corporate income taxes, sales taxes, or both; alternately, recipients could sell their tax
credits on the market or back to the state at a reduced rate.12
3
Section 288.1258, F.S.
4
Section 212.031(1)(a)9, F.S.
5
Section 212.06(1)(b), F.S.
6
Section 212.08(5)(f), F.S.
7
Section 212.08(12)(a), F.S.
8
Supra note 3
9
Office of Economic and Demographic Research, Return on Investment for the Entertainment Industry Incentive Programs,
7 (2021), available at http://edr.state.fl.us/Content/returnoninvestment/EntertainmentIndustryIncentivePrograms2021.pdf
(last visited Jan. 7, 2022).
10
Section 288.1254(2), F.S.
11
Section 288.1254(4)(b), F.S.
12
Supra note 9, at 5 and 6.
BILL: SB 946 Page 3
The incentive program began on July 1, 2010, and sunset on June 30, 2016.13
Local Incentive Programs
Several local governments in Florida offer their own film and entertainment production
incentives, including:14
Miami-Dade County’s TV, Film, and Entertainment Production Incentive, a performance-
based program that grants up to $100,000 to productions that spend at least $1 million in the
county if at least 70 percent of the hired vendors are county registered businesses;
Hillsborough County’s rebate program, which offers a rebate of up to 10 percent on
expenditures within the county in excess of $100,000; and
Duval County’s Jacksonville Film and Television Job and Business Creation Program, a
performance-based program that offers a 10 percent rebate upon spending at least $50,000 on
qualified expenditures and hiring Duval County residents.
Other States’ Incentives
The popularity of entertainment industry incentives has decreased among state legislatures. In
2009, 44 states offered some form of incentive, compared to only 31 states that offered an
incentive in 2018.15 Of states considered competitive to Florida, Georgia offers one of the most
generous incentive programs; the state continues to fund its tax credit program at the level of
demand by placing no cap on tax credits that can be earned.16
III. Effect of Proposed Changes:
The bill creates the Targeted High Wage Production Program (program) within the DEO, to be
supervised by the Commissioner of Film and Entertainment (commissioner). The program gives
tax credit awards to film, television, and digital media production projects that provide high
returns on investment and economic benefit to the state in order to broaden the entertainment
industry’s impact, enhance tourism, and encourage more family-friendly productions to be
produced in Florida.
Upon completion, a project is eligible to receive a tax credit award of up to 23 percent of its
qualified expenditures, or $2 million, whichever is less. A project’s qualified expenditures must
be verified before the project may receive a tax credit award, and awards are subject to
repayment if a project submits fraudulent information.
General Requirements
A project is eligible for a tax credit award under the program if it:
13
Id.
14
Film Florida, Local Incentive Programs, available at https://filmflorida.org/state-resources/ (last visited Jan. 7, 2022).
15
National Conference of State Legislatures, State Film Production Incentives and Programs (February 2018), available at
https://www.ncsl.org/research/fiscal-policy/state-film-production-incentives-and-programs.aspx (last visited Jan. 7, 2022).
16
Georgia Department of Economic Development, Film, Television, and Digital Entertainment Tax Credit, available at
https://www.georgia.org/industries/film-entertainment/georgia-film-tv-production/production-incentives (last visited Jan. 7,
2022).
BILL: SB 946 Page 4
Is a film, television, or digital media project that is not obscene, as defined in s. 847.001,
F.S.;
Has projected qualified expenditures of at least $1.5 million if the project is a film or digital
media project, or at least $500,000 per episode if the project is a television show;
Employs a crew of which at least 60 percent are Florida residents and at least one is a
military veteran;
Is projected to spend at least 70 percent of its total production days in the state;
Will not receive a sales tax exemption through the Florida entertainment sales tax exemption
established under s. 288.1258, F.S.;
Makes a good faith effort to use existing Florida providers of infrastructure or equipment and
to employ cast and crew who are Florida residents;
Agrees to include marketing that promotes Florida tourism or Florida’s film and
entertainment industry on its project, including, at minimum, placing a “Filmed in Florida” or
“Produced in Florida” logo in its end credits;
Permits the commissioner or an affiliate and at least two guests to visit the project’s
production site; and
Provides at least five photos of the production to the commissioner for use in promoting
Florida as a film, television, or digital media production location or tourist destination.
Application Process
To become a qualified project that is eligible to receive a tax credit award, an applicant must
submit an application to the commissioner. There are two application windows for the tax credit
award program per fiscal year, the start date of which will be determined by the commissioner.
The first window may begin before, and must end no later than 5 business days after, July 1. The
second window must end no later than 5 business days after December 1.
An applicant may submit an application for no more than five projects in any one fiscal year.
Except in the case of a television pilot and the television series the pilot is based on being
certified in the same fiscal year, however, only one project per applicant may be certified within
a fiscal year. A proposed project must begin production within 6 months of July 1 if applying in
the first application window, or within 6 months of January 1, if applying in the second window.
Application
In addition to an affidavit signed by the applicant that the information on the application is
correct and the applicant’s Florida tax identification number, applications must include a film,
television, or digital media project’s:
Proof of funding;
Employment information, including employment numbers for Florida residents;
Line-item budget and detailed qualified expenditures budget;
Distribution plan to assist in determining the project’s potential economic impact in the state;
Expected total qualified expenditures for wages paid to Florida residents;
Expected total qualified and nonqualified expenditures in the state;
Latest script, a production schedule, a Day Out of Days report, and a list of the expected
shooting locations, if the project is a film or a pilot episode of a television project;
BILL: SB 946 Page 5
Latest scripts for at least two episodes, a production schedule, a Day Out of Days report, and
a list of the expected shooting locations, if the project is a television project; and
Game design document, including a production schedule, if the project is a digital media
project.
Scoring Criteria
The commissioner and the council must devise, before the first application window opens, a
priority order and scoring system that qualified projects will be evaluated based on. In addition to
other criteria the council may deem necessary, the scoring system must include consideration of
a project’s:
Overall qualified expenditures;
Full-time equivalent jobs created;
Length of employment and wages paid to Florida residents, in addition to pension, health,
and welfare benefits;
Estimated direct and indirect tourism benefit;
Production in an underutilized area;
Status as a family-friendly production;
Employment of a Florida resident as a writer, producer, director, or star;
Use of a Florida film, television, or digital media school’s assistance;
Leadership team’s track record;
Employment of veterans who are residents of Florida; and
Employment of graduates of Florida film schools.
Review
Within a reasonable period of time after an application window’s last day, the commissioner
must complete a review of the applications. The commissioner must then submit to the council a
package detailing each applicant’s:
Eligibility for the tax credit award program;
Expected qualified expenditures;
Maximum award amount;
Status as a family friendly project;17
Percent of production proposed to occur in an underutilized area,18 if any; and
Registration as a corporation in the state.
The commissioner may contact each applicant with questions and gather any additional
information as necessary and must notify the council of the date and time the council must
convene to score each qualified project.19 The council may meet in person or by conference call.
17
The bill defines “family friendly” as having cross-generational appeal; being appropriate in theme, content, and language
for a broad family audience; embodying a responsible resolution of issues; not containing any act of drunkenness, illicit drug
use, sex, nudity, gratuitous violence, or vulgar or profane language; and not portraying smoking any substance in a positive
manner.
18
The bill defines “underutilized area” as any county within the state other than Broward, Hillsborough, Miami-Dade,
Orange, Pinellas, or Seminole County.
19
A film, television, or media project for which a complete application has been submitted to the commissioner and accepted
for consideration and scoring is considered a “qualified project”.
BILL: SB 946 Page 6
Using its scoring system, the council will determine a score for each qualified project; the
highest scores must be applied to projects determined to provide the best economic impact and
return on investment to the state. The commissioner makes the final decision on certifying or
rejecting each qualified project.
Award of Tax Credit Awards and Verification of Expenditures
After the council scores a project, the commissioner must make a determination on whether to
certify or reject each project and send a notice of the decision to each applicant. The
commissioner must include in a certified project’s notice the specific percentage of qualified
expenditures for which it is eligible and the maximum award it may receive.
The commissioner must also give the DEO a list of certified projects20 and each project’s
maximum allowance in order for the DEO to set aside enough money to fund the total maximum
tax credit awards that may be awarded. However, when setting aside funds for applications
submitted and certified during the first application window, the DEO may not use more than 60
percent of the tax credit awards available for any fiscal year. Any tax credit award funds not set
aside for the first application window roll over for use in the next application window. If all
awards are set aside for certified projects, additional applications cannot be accepted until more
funds become available. If only a partial amount of tax credit awards are available during the
application period, the applicant must notify the commissioner in writing of its decision to either
accept the partial award as the maximum certified tax credit award it would be eligible for or
reject it and drop out of the program. The applicant is not eligible for any additional tax credit
awards that may become available after the application period. Funds appropriated to the credit
award program are not subject to reversion.
Tax Credit Award Allowances
Under the bill, certified projects may receive a tax credit award of up to 20 percent of its verified
qualified expenditures. A project may receive an additional 3 percentage points if 60 percent of
the project’s production takes place in an underutilized area or if its content is deemed family
friendly. A project may not receive more than one bonus, and tax credit awards may not exceed
$2 million.
The bill defines “qualified expenditures” to mean expenditures made in the state made solely for
preproduction, production, or postproduction of a qualified project, including:
Rented or leased goods or services provided by a vendor that is registered with the
Department of State or the Department of Revenue, has a physical address in the state other
than a post office box, and employs one or more Florida residents on a full-time basis;
Salaries and wages of up to $200,000 for Florida residents;
Rented or leased cars, trucks, and trailers;
Catered meals and on-set craft service supplies; and
Rented hotel rooms or other accommodations.
20
A qualified project is considered to be a “certified project” after it has been scored, has been determined to meet or exceed
the desired criteria, and has funds allocated to it based on its estimated qualified expenditures.
BILL: SB 946 Page 7
Qualified expenditures exclude expenditures made before a qualification for the program;
expenditures made via Internet transaction; expenditures for airfare; or any costs related to
development, marketing, or distribution.
Verification
The commissioner must develop a process to verify a certified project’s actual qualified
expenditures and bonus eligibility after a certified project has completed its work in the state.
The process must require the submission by a project within 120 days after making its last
qualified expenditure, but no later than 1 year after its production start date, of:
Data substantiating each qualified expenditure, as verified by an independent certified public
accountant (CPA) licensed by the state;
Documents verifying the Florida residency of persons represented as such, including an
affidavit signed by each resident;
The project’s final script;
The project’s most recent production board and shooting schedule;
The project’s most recent credit list, which shows where the required marketing logo will
appear;
The project’s cast list and final crew list with contact information;
Verification that at least one person employed by the project is a military veteran; and
An affidavit or written declaration signed under the penalty of perjury that states that all
salaries, wages, and other compensation submitted as qualified expenditures are in
compliance with the program’s requirements.
The verification process must also require a compliance audit, conducted by an independent CPA
at the project’s expense, to substantiate a project’s qualified expenditures. The audit and a report
of the audit’s findings must be submitted to the commissioner within a reasonable period of time
after the commissioner’s initial receipt of records from the project.
The commissioner must report to the DEO the final verified amount of actual qualified
expenditures a project made and the amount of the total tax credit award owed to a project. The
DEO must then determine and approve the final tax credit award amount based on the final
verified amount of actual qualified expenditures; notify the DOR that the certified production has
met the requirements and of the final amount of the tax credit award; and issue the award within
a reasonable period of time.
Disqualification
A certified project may be disqualified and may not receive a tax credit award if it:
Does not begin principal photography within 30 days before or 90 days after the project’s
start date;
Does not abide by the policies, procedures, deadlines, or requirements of the program’s
verification process;
Changes the project’s start date without notifying the commissioner;
Submits fraudulent information; or
Uses the entertainment industry sales tax exemption established under s. 288.1258, F.S.
BILL: SB 946 Page 8
Applicants that submit fraudulent information are liable for reimbursement of the costs
associated with the review, processing, investigation, and prosecution of the fraudulent
submission, in addition to a penalty double the tax credit award amount and any criminal penalty
assessed.
Election and Transfer of Tax Credits
A certified production company receiving a tax credit award must, at the time the credit is
awarded by the DEO, make an irrevocable election to apply the credit against income taxes due,
against state sales taxes collected or accrued, or against a combination of the two taxes. The
election is binding on any distribute, successor, transferee, or purchaser. The DEO must notify
the DOR of any election made.
Tax credits awarded may not be claimed against sales and use tax liabilities or corporate income
tax liabilities before July 1, 2022, regardless of when the credits are applied for or awarded.
A certified production company that files a consolidated return as a member of an affiliated
group under s. 220.131(1), F.S., may use the credit on a consolidated return basis up to the
amount of the tax imposed upon the consolidated group under ch. 220, F.S. Additionally, a
certified production company that is not a corporation under s. 220.03(1)(e), F.S., can elect to
distribute tax credits to its partners or members in proportion to their distributive income or loss
in the taxable year in which the tax credits were awarded.
Tax credits may succeed to a surviving or acquiring entity; however, the tax credits cannot be
transferred by the surviving or acquiring entity.
If a certified production company cannot use the entire tax credit in the taxable year or reporting
period in which the credit is awarded, any excess amount may be carried forward to a succeeding
taxable year or reporting period for a maximum of five years after the date the credit is awarded,
after which the credit expires and may not be used again.
A certified production company, or a partner or member of a certified production company that
has received a distribution may elect to transfer, in whole or in part, any unused credit amount it
was granted. An election to transfer any unused income tax or state sales tax credit amount must
be made no later than 5 years after the date the credit is awarded, after which period the credit
expires and may not be used. The DEO must notify the DOR of the election and transfer.
The original transferee and any subsequent transferee must be either the certified company’s
parent company, a subsidiary company, or certain businesses with a certain North American
Industry Classification System code.
A certified production company that elects to apply a credit amount against state sales taxes is
allowed a one-time transfer of unused credits to one transferee. A certified production company
that elects to apply a credit amount against income taxes is allowed a one-time transfer of unused
credits to no more than four transferees, and the transfers must occur on the same taxable year.
BILL: SB 946 Page 9
A transferee receiving the tax credit has the same rights and is subject to the same limitations as
the certified production company that was awarded the tax credit, except that a transferee
receiving the tax credit is prohibited from subsequently transferring the tax credit.
Relinquishment of Tax Credits
Starting July 1, 2022, a certified production company, or a person who has acquired a tax credit
from a production company, can elect to relinquish the tax credit to the DOR in exchange for
payment of 85 percent of the amount of the relinquished tax credit. The DOR is authorized to
approve the payments.
The DOR is authorized to approve payments to entities relinquishing tax credits. Additionally,
the DOR, subject to legislative appropriation, must request the Chief Financial Officer to issue
warrants to entities relinquishing tax credits. Payments must be made from the funds from which
the proceeds from the taxes against which the tax credits could have been applied according to
the irrevocable election made by the certified production company.
Annual Allocation of Tax Credits
The aggregate amount of tax credits allocated to the program must equal, but not exceed, $20
million each fiscal year beginning in fiscal year 2022-2023 through fiscal year 2025-2026. Any
portion of the maximum amount that is not certified by the end of that fiscal year must be carried
forward and made available for certification during the following two fiscal years in addition to
the amounts available for those fiscal years.
After approval of the final tax credit award amount, an amount equal to the difference between
the maximum tax credit award amount previously certified and the approved final tax credit
award amount will immediately be available for recertification during the current and following
fiscal years, in addition to the amounts available for those fiscal years.
If the total amount of credits applied for during a fiscal year exceeds the amount of credits
available for certification in that fiscal year, the excess will be treated as having been applied for
on the first day of the next fiscal year in which credits remain available for certification.
Other Provisions
The DEO is granted rulemaking authority to administer the tax credit award program.
The DOR is authorized to conduct audits to verify that tax credits are received, transferred, and
applied accordingly to the requirements under the program. If the DOR determines that tax
credits are not received, transferred or applied as required, the DOR may pursue recovery of the
funds. The DOR is granted rulemaking to administer this provision. Additionally, the DEO is
authorized to revoke or modify any written decision qualifying, certifying, or otherwise granting
eligibility for tax credits if an applicant submits false statements, records, reports, plans, or other
documents. The DEO must immediately notify the DOR in such cases. Forfeited funds must be
paid into the General Revenue Fund.
BILL: SB 946 Page 10
The commissioner must provide an annual report on the program each November 1 identifying
the return on investment and economic benefits attributable to the program for the previous fiscal
year.
The Targeted High Wage Production Program expires on June 30, 2026, at which point any
funds appropriated to the program not earmarked and set aside for certified projects will revert
back to the General Revenue Fund. All other remaining funds must revert back to the General
Revenue Fund no later than October 31, 2027.
The bill takes effect upon becoming law.
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 a fiscal impact of the bill.
B. Private Sector Impact:
Qualified film, television, or digital media projects that make qualified expenditures
under the program may have their expenses offset by a tax credit award at the
culmination of the project. Because qualified expenditures are required, to a certain
extent, to be made to Florida vendors, businesses, and residents, these parties may see a
positive financial impact.
BILL: SB 946 Page 11
C. Government Sector Impact:
According to the DOR, the bill will have a non-recurring negative fiscal impact in the
amount of $39,662 for fiscal year 2021-2022 in order to make modifications to the
DOR’s software system.21
Additionally, the DOR may be required to undergo rulemaking to update Rule 12-29 of
the Florida Administrative Code.
VI. Technical Deficiencies:
Line 568 of the bill refers to paragraph (4)(g), which does not exist. It is unclear if (4)(g) should
be (12)(e).
VII. Related Issues:
The DOR has the following concerns with the bill:22
The bill only provides rulemaking authority to the department for the audit verification in
paragraph (17)(a); however the department needs broader rulemaking authority to administer
other provisions in the bill, particularly the revoked or forfeited tax credits and the
amendment of tax returns. Furthermore, the bill does not grant the department emergency
rulemaking authority, which it would need since the bill takes effect upon becoming law.
On lines 532-538, the bill provides that a credit may not be claimed for any tax period
beginning before July 1, 2022. However, credits against corporate income/franchise tax do
not usually start in the middle of a calendar year, as most corporate taxpayers operate on a
calendar year basis. The department suggests changing the date from July 1, 2022 to January
1, 2023.
VIII. Statutes Affected:
This bill creates an undesignated section 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.
21
Florida Department of Revenue, SB 946 analysis (2022). On file with Senate Commerce & Tourism Committee.
22
Id.
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By Senator Gruters
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1 A bill to be entitled 30 criteria; requiring the commissioner to take specified
2 An act relating to the entertainment industry; 31 actions in a timely manner relating to the
3 creating the Targeted High Wage Production Program 32 certification or rejection of qualified projects;
4 within the Department of Economic Opportunity under 33 requiring the department to certify projects and
5 the supervision of the Commissioner of Film and 34 maximum tax credit awards to qualified applicants and
6 Entertainment; providing a purpose for the program; 35 the executive director of the Department of Revenue;
7 defining terms; requiring that film, television, and 36 requiring the commissioner to develop a process to
8 digital media projects being produced in this state 37 verify the actual qualified expenditures and bonus
9 meet specified criteria to be eligible for tax credit 38 eligibility of a certified project after the project’s
10 awards; authorizing applicants to receive awards up to 39 work in this state is complete; providing requirements
11 a specified amount, including bonuses; requiring a 40 for the verification process; requiring that the award
12 certified project to make a good faith effort to use 41 be issued within a reasonable period of time upon
13 existing providers of infrastructure or equipment in 42 approval of the final award amount; requiring that
14 this state and to employ residents of this state; 43 certain marketing be included with a project;
15 requiring the commissioner to set application windows; 44 requiring certified projects to allow certain persons
16 providing requirements for the department relating to 45 to visit the production site upon request of the
17 earmarking and setting aside tax credit awards; 46 commissioner and after providing the commissioner with
18 requiring applicants to either accept a partial tax 47 reasonable notice; specifying that the commissioner or
19 credit award or reject the partial award and drop out 48 his or her affiliate is not required to visit the
20 of the program under certain circumstances; providing 49 production site; requiring the department to
21 procedures and requirements for applicants; requiring 50 disqualify a project under certain circumstances;
22 the commissioner to take specified actions within a 51 providing for liability and imposing civil and
23 reasonable period of time; requiring the Florida Film 52 criminal penalties for an applicant that submits
24 and Entertainment Advisory Council to determine a 53 fraudulent information; requiring certified production
25 score for each qualified project using specified 54 companies to make elections relating to tax credit
26 criteria; requiring the commissioner to determine the 55 awards; providing requirements and prohibitions
27 priority order and scoring system of the specified 56 relating to tax credits; authorizing certain entities
28 criteria with assistance from the council and certain 57 to transfer tax credits under certain circumstances;
29 other persons; requiring the council to use specified 58 providing requirements and prohibitions relating to
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59 transferring tax credits; authorizing certain entities 88 and Entertainment.
60 to relinquish tax credits for payments; providing 89 (a) The purpose of the performance-based program is to
61 requirements and prohibitions relating to 90 boost this state’s economic prosperity by:
62 relinquishing tax credits; providing for the annual 91 1. Creating high-paying jobs in an industry with an average
63 allocation of tax credits for the program; authorizing 92 salary 60 percent higher than the state average;
64 the department to adopt rules; authorizing the 93 2. Enhancing tourism by choosing projects that encourage
65 Department of Revenue to conduct certain examinations 94 tourists to visit this state;
66 and audits and pursue recovery of tax credits; 95 3. Broadening the film, television, and digital media
67 authorizing the Department of Revenue to adopt rules; 96 industry’s impact on the state by offering a modest bonus for
68 authorizing the Department of Economic Opportunity to 97 projects that take place in underutilized areas; and
69 revoke or modify certain decisions relating to tax 98 4. Encouraging more family-friendly productions to be
70 credit eligibility under certain circumstances; 99 produced in this state.
71 requiring the department to notify the Department of 100 (b) This purpose shall be accomplished by providing a
72 Revenue of any such revocation or modification; 101 limited tax credit award to projects that provide the highest
73 requiring applicants to notify the Department of 102 return on investment and economic benefit to the state which is
74 Revenue of any change in tax credit claimed; providing 103 not awardable until after a project has made its expenditures in
75 for forfeiture of tax credits; requiring the 104 this state and the expenditures have been verified by the
76 commissioner to provide an annual report to the 105 department.
77 Governor and the Legislature on a specified date; 106 (2) DEFINITIONS.—As used in this act, unless the context
78 providing that certain appropriated funds are not 107 otherwise requires, the term:
79 subject to reversion; providing for the expiration of 108 (a) “Certified project” means a qualified project that has
80 the program; providing an effective date. 109 been scored by the council, has been determined by the
81 110 commissioner to meet or exceed the desired economic impact and
82 Be It Enacted by the Legislature of the State of Florida: 111 other criteria of the program, and has tax credits allocated to
83 112 it based on the project’s estimated qualified expenditures. The
84 Section 1. The Targeted High Wage Production Program.— 113 term does not include a project that may be considered obscene
85 (1) CREATION AND PURPOSE OF PROGRAM.—The Targeted High Wage 114 as defined in s. 847.001, Florida Statutes.
86 Production Program is created within the Department of Economic 115 (b) “Commissioner” means the Commissioner of Film and
87 Opportunity under the supervision of the Commissioner of Film 116 Entertainment as described in s. 288.1251(1)(b), Florida
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117 Statutes. 146 of the majority of the crew is dedicated solely to the project.
118 (c) “Council” means the Florida Film and Entertainment 147 (k) “Production start date” means:
119 Advisory Council. 148 1. For film and television projects, the start date of
120 (d) “Department” means the Department of Economic 149 principal photography, as listed in the project’s application.
121 Opportunity. 150 2. For digital media projects, the start date of final
122 (e) “Digital media project” means a commercial video game, 151 storyboards or a later date as specified in the project’s
123 including an educational video game, which includes at least 30 152 application.
124 minutes of game play time. 153 (l) “Qualified expenditures” means:
125 (f) “Family friendly” means having cross-generational 154 1. Expenditures made in this state and paid to residents of
126 appeal; being appropriate in theme, content, and language for a 155 this state or to businesses registered in this state and made
127 broad family audience; embodying a responsible resolution of 156 solely for preproduction, production, or postproduction of the
128 issues; not containing any act of drunkenness, illicit drug use, 157 qualified project, including the following:
129 sex, nudity, gratuitous violence, or vulgar or profane language; 158 a. Rented or leased goods or services provided by a vendor
130 and not portraying smoking any substance in a positive manner. 159 or supplier in this state which is registered with the
131 (g) “Film project” means a theatrical, direct-to-video, 160 Department of State or the Department of Revenue; which has a
132 television, cable, Internet, streaming service, or animated 161 physical address in this state other than a post office box; and
133 narrative motion picture at least 75 minutes in length. The term 162 which employs one or more Florida residents on a full-time
134 does not include a project deemed by the office to have content 163 basis. The term does not include rebilled goods or services
135 that is obscene, as defined in s. 847.001, Florida Statutes. 164 provided by an in-state company from out-of-state vendors or
136 (h) “Florida resident” means a person who has a valid 165 suppliers. When services provided by the vendor or supplier
137 Florida driver license or Florida identification card issued 166 include personal services or labor, only personal services or
138 under s. 322.051, Florida Statutes, and has signed an affidavit 167 labor provided by Florida residents qualify.
139 confirming residency. 168 b. Payments to Florida residents in the form of salary or
140 (i) “Office” means the Office of Film and Entertainment 169 wages up to a maximum of $200,000 per resident, including
141 within the department. 170 amounts paid per diem to a worker who is a Florida resident and
142 (j) “Principal photography” means, for a film project or 171 amounts paid through payroll service companies, and benefits
143 television project, the filming of major or significant 172 such as pension, health, and welfare payments for technical and
144 components of the project which involve lead actors, or, for a 173 production crews, directors, producers, and performers. For
145 digital media project, the period of time during which the work 174 purposes of this sub-subparagraph, payments do not include wages
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175 for executives, legal staff, or other corporate staff who are 204 events show; a sports or sports recap show; a pornographic
176 not employed to work solely on the project. 205 production; or any production deemed obscene under chapter 847,
177 c. Rented or leased cars, trucks, and trailers, if the 206 Florida Statutes.
178 vehicles or trailers are registered with the Florida Department 207 (n) “Television project” means a television pilot program
179 of Highway Safety and Motor Vehicles. 208 or a television series that:
180 d. Purchases of catered meals and on-set craft service 209 1. Is a scripted drama, comedy, animation, or reality show;
181 supplies. 210 2. Has a runtime to fit, at a minimum, a 30-minute program
182 e. Rented hotel rooms or other accommodations for cast or 211 slot, but no longer than required to fit a 60-minute program
183 crew. 212 slot; and
184 2. The term does not include expenditures not expressly 213 3. If the television project is a television series, has a
185 identified in subparagraph 1., expenditures made before 214 minimum of 7 episodes, or, if the television project is a
186 qualification for the program, expenditures made via Internet 215 reality program or series, has at least 10 episodes.
187 transactions, expenditures for airfare, or any costs associated 216 4. Does not include content that is deemed by the office to
188 with development, marketing, or distribution. 217 be obscene, as defined in s. 847.001, Florida Statutes.
189 3. For the purposes of a digital media project, the term 218 (o) “Underutilized area” means any county in this state
190 includes only those qualified expenditures made within 9 months 219 other than Broward County, Hillsborough County, Miami-Dade
191 after the project’s first qualified expenditure. 220 County, Orange County, Pinellas County, or Seminole County.
192 (m) “Qualified project” means a film project, television 221 (3) TAX CREDIT AWARD ELIGIBILITY.—
193 project, or digital media project that meets the application 222 (a) To be eligible for a tax credit award, an applicant
194 requirements and for which a complete application for the 223 must be registered to do business in this state and must be
195 program has been submitted to the commissioner and accepted for 224 producing a project that:
196 consideration by the office. The term does not apply to any 225 1. Has projected qualified expenditures of:
197 company doing subsidiary work on a certified production, 226 a. For a film project, at least $1.5 million;
198 including, but not limited to, postproduction, visual effects, 227 b. For a television project, at least $500,000 per episode;
199 and music. The term does not include a weather or market 228 or
200 program; a sporting event or a sporting event broadcast; a gala; 229 c. For a digital media project, at least $1.5 million;
201 an awards show; a production that solicits funds; a home 230 2. Is projected to employ a crew, including cast and stand-
202 shopping program; a political program; a gambling-related 231 ins, but not including extras, also known as background
203 project or production; a concert production; a news or current 232 performers, of which at least 60 percent will be residents of
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233 this state and at least one member will be a military veteran; 262 fiscal year for applications submitted during each fiscal year’s
234 3. Is projected to spend at least 70 percent of its total 263 first application window. Tax credit award funds not earmarked
235 production days in this state; and 264 or set aside for applicants applying during one application
236 4. Will not receive a sales tax certificate of exemption 265 window roll over for use in the next application window.
237 pursuant to s. 288.1258, Florida Statutes, for the project. 266 (b) If all tax credit awards are earmarked and set aside
238 (b) A certified project may receive a tax credit award in 267 for certified projects, additional applications may not be
239 the amount of up to 20 percent of its verified qualified 268 accepted until more funds become available for the program.
240 expenditures. A bonus may be earned in the amount of an 269 (c) If during any application period only a partial amount
241 additional 3 percentage points if 60 percent of the project’s 270 of tax credit awards are available to certify to a project
242 production in this state will take place in an underutilized 271 compared to the full amount for which it would be eligible, the
243 area or if its content is deemed family friendly. A certified 272 applicant must elect to either accept the partial tax credit
244 project may not receive more than one bonus, and the total that 273 award as the maximum certified tax credit award it would be
245 may be awarded under any tax credit award may not exceed 23 274 eligible for or reject it and drop out of the program. The
246 percent of its verified qualified expenditures or $2 million, 275 applicant must notify the commissioner in writing of its
247 whichever is less. 276 decision before the application period ends. If additional tax
248 (c) A certified project must make a good faith effort to 277 credit awards become available after the application period, the
249 use existing providers of infrastructure or equipment in this 278 project of an applicant that accepted a partial tax credit award
250 state, when available, including providers of camera gear, grip 279 is not eligible for any such awards.
251 and lighting equipment, vehicles, and postproduction services, 280 (5) APPLICATION PROCESS.—
252 and to employ residents of this state as cast and crew. 281 (a) A company that plans to produce a film, television, or
253 (4) APPLICATION WINDOWS.—Applications must be accepted for 282 digital project in this state may submit an application to the
254 the program during two application windows each fiscal year. The 283 commissioner during one of the two application windows. Each
255 commissioner shall set a start date for both application 284 fiscal year, a project must have a production start date that is
256 windows. However, the first application window may begin before 285 within 6 months after July 1 if applying in the first window or
257 the start of the fiscal year and must end no later than 5 286 within 6 months after January 1 if applying in the second
258 business days after July 1, and the second application window 287 window.
259 must end no later than 5 business days after December 1. 288 (b) An applicant or its parent company may submit an
260 (a) The department may not earmark or set aside more than 289 application for no more than five projects in any single fiscal
261 60 percent of any tax credit awards available for any given 290 year. However, except in the case of a television pilot and the
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291 television series the pilot is based on being certified within 320 12. The applicant’s Florida tax identification number.
292 the same fiscal year, only one project per applicant may be 321 (d) Within a reasonable period of time after the last
293 certified within a fiscal year. 322 business day of each application window, the commissioner shall:
294 (c) The application must include: 323 1. Review all applications submitted during the application
295 1. Proof of funding; 324 window and determine the eligibility of each applicant;
296 2. Project-related employment information, including 325 2. Determine each applicant’s expected qualified
297 employment numbers for residents of this state; 326 expenditures;
298 3. A full line-item budget and a detailed qualified 327 3. Determine the maximum tax credit each qualified
299 expenditures budget; 328 applicant may be awarded;
300 4. A detailed distribution plan to assist with determining 329 4. Determine whether a qualified applicant’s project is
301 the potential economic impact of the project in this state; 330 deemed family friendly;
302 5. The applicant’s expected total qualified expenditures 331 5. Determine the percentage of the applicant’s production,
303 for wages paid to residents of this state; 332 if any, which is proposed to occur in an underutilized area;
304 6. The applicant’s expected total qualified expenditures 333 6. Determine whether each qualified applicant is a
305 and nonqualified expenditures in this state; 334 corporation registered in this state;
306 7. For a film project, the latest script, a production 335 7. Contact each applicant with any questions, as necessary;
307 schedule, a Day Out of Days report, and a list of the expected 336 8. Gather any additional information needed to address the
308 shooting locations; 337 criteria specified under subsection (6);
309 8. For a digital media project, a detailed game design 338 9. Assemble a package containing the details of each
310 document, including a production schedule; 339 qualified applicant’s project and deliver it to each council
311 9. For a television project that is a pilot, a final 340 member; and
312 script, a production schedule, a Day Out of Days report, and a 341 10. Give notice to the council of the date and time when
313 list of the expected shooting locations; 342 the council must convene to assess each qualified project. The
314 10. For a television project that is a series, the latest 343 council may meet in person or by conference call.
315 scripts for at least two episodes and a production schedule, a 344 (e) The council shall determine a score for each qualified
316 Day Out of Days report, and a list of the expected shooting 345 project using the criteria specified under subsection (6), with
317 locations for the first episode; 346 the highest scores going to projects determined to provide the
318 11. An affirmation signed by the applicant that the 347 best economic impact and return on investment to this state.
319 information on the application is correct; and 348 (6) CRITERIA FOR DETERMINING PROJECT SCORES.—
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349 (a) The priority order and scoring system of the criteria 378 13. The number of Florida film school graduates the project
350 specified in paragraph (b) must be determined by the 379 will hire as cast or crew.
351 commissioner, with assistance from the council and other 380 (7) NOTIFICATION OF DECISION.—
352 persons, as determined by the commissioner, before the first 381 (a) After the council determines a project’s score, the
353 application window. 382 commissioner shall, in a timely manner:
354 (b) The council shall use, at a minimum, the following 383 1. Make a final determination on certifying or rejecting
355 criteria in determining a qualified project’s score: 384 each qualified project, giving consideration to the council’s
356 1. The amount of the project’s overall qualified 385 scoring.
357 expenditures. 386 2. Provide a list of certified projects to the department
358 2. The amount of the project’s Florida-resident wages. 387 which includes the associated maximum tax credit that each
359 3. The number of full-time equivalent jobs created by the 388 respective applicant may be awarded.
360 project. 389 3. Notify each certified project of the specified
361 4. Whether the project provides pension, health, and 390 percentage of qualified expenditures for which it is eligible
362 welfare benefits to its workforce in this state. 391 and the maximum tax credit it may be awarded.
363 5. The estimated direct and indirect tourism benefit of the 392 4. Provide a notice of rejection to each rejected
364 project, based on the submitted distribution plan. 393 applicant; however, the failure to notify an applicant of its
365 6. The duration of Florida-resident employment for the 394 rejection does not deem the applicant’s project a certified
366 project. 395 project.
367 7. What percentage of the project, if any, is being made in 396 (b) Based on the final determination of the commissioner,
368 an underutilized area. 397 the department shall certify the project and its maximum tax
369 8. Whether the project is family friendly. 398 credit award, if any, to the applicant and to the executive
370 9. Whether the project has a Florida-resident writer, 399 director of the Department of Revenue.
371 producer, director, or star. 400 (8) VERIFICATION PROCESS.—
372 10. Whether a Florida film, television, or digital media 401 (a) The commissioner shall develop a process to verify the
373 school will assist with the production of the project. 402 actual qualified expenditures and bonus eligibility of a
374 11. Whether the project leadership team has a successful 403 certified project after the project’s work in this state is
375 track record. 404 complete. The process must require all of the following:
376 12. The number of Florida-resident veterans the project 405 1. Submission to the commissioner of at least all of the
377 will hire. 406 following information, electronically or in hard copy, or both,
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407 by each certified project: 436 expenditure but no later than 1 year after its production start
408 a. Data substantiating each qualified expenditure which has 437 date. Pursuant to the rules adopted by the department, the
409 been audited by an independent certified public accountant 438 commissioner may, upon a showing of good cause, grant a one-time
410 licensed in this state, as required under subparagraph 4.; 439 extension of this deadline.
411 b. Copies of documents verifying residency of persons 440 4. A compliance audit conducted at the certified project’s
412 represented as being residents of this state, including an 441 expense by an independent certified public accountant who is a
413 affidavit signed by each resident; 442 resident of this state to substantiate the qualified
414 c. The final script; 443 expenditures, and submission of a report of the audit findings,
415 d. The most recent production board and shooting schedule; 444 including substantiating data, to the commissioner within a
416 e. The most recent credit list showing where the credits 445 reasonable period of time after the initial receipt of records
417 required under subsection (9) will appear; 446 from the certified project.
418 f. A cast list and a final crew list with contact 447 (b) The commissioner shall review the report and data
419 information; 448 required under paragraph (a) within a reasonable period of time
420 g. For any veterans employed by the project, a copy of at 449 after receipt of the report and data and shall report to the
421 least one DD Form 214, as issued by the United States Department 450 department the final verified amount of actual qualified
422 of Defense, or another acceptable form of identification as 451 expenditures the certified project made and the amount of the
423 specified by the Department of Veterans’ Affairs; and 452 total tax credit award due the project.
424 h. Any other information determined necessary by the 453 (c) The department shall determine and approve the final
425 commissioner. 454 tax credit award amount to each certified applicant based on the
426 2. Signing, and submission to the commissioner, by the lead 455 final verified amount of actual qualified expenditures and shall
427 producer or studio executive in charge of the certified project, 456 notify the executive director of the Department of Revenue in
428 of an affidavit or a written declaration signed under the 457 writing that the certified production has met the requirements
429 penalty of perjury as specified in s. 92.525, Florida Statutes, 458 of the incentive program and of the final amount of the tax
430 stating that all salaries, wages, and other compensation 459 credit award. The final tax credit award amount may not exceed
431 submitted as qualified expenditures are in compliance with this 460 the maximum tax credit award amount certified under subparagraph
432 section. 461 (7)(b). The tax credit must be issued within a reasonable period
433 3. The information and affidavit required by subparagraphs 462 of time.
434 1. and 2. must be received by the commissioner within 120 days 463 (9) MARKETING AND TOURISM REQUIREMENT.—
435 after the certified project has made its last qualified 464 (a) The commissioner shall ensure, as a condition of
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465 receiving a tax credit under this section, that a certified 494 (10) DISQUALIFICATION.—The department shall disqualify a
466 project includes marketing promoting this state as a tourist 495 certified project and may not issue a tax credit award to the
467 destination or film and entertainment production destination. At 496 project if the project:
468 a minimum, the marketing must include placement in the end 497 (a) Does not begin principal photography in this state
469 credits of a “Filmed in Florida” or “Produced in Florida” logo, 498 within the period beginning 30 days before and ending 90 days
470 with size and placement commensurate to other logos included in 499 after the project’s listed production start date. Pursuant to
471 the end credits, or, if no logos are used, the statement “Filmed 500 department rule, the commissioner may, upon a showing of good
472 in Florida” or “Produced in Florida” or a similar statement 501 cause, grant a one-time extension of this deadline;
473 approved by the commissioner and the logo of the local film 502 (b) Does not abide by the policies, procedures, deadlines,
474 office, if applicable. A digital media project must also supply 503 or requirements of the application verification process;
475 a 5-second or longer animated logo with “Produced in Florida” or 504 (c) Does not notify the commissioner of any change in the
476 other text, including the logo of the local digital media 505 production start date before commencing production;
477 office, if applicable, as preapproved by the commissioner, in a 506 (d) Submits fraudulent information; or
478 manner easily seen by a consumer of the digital media project. 507 (e) Uses the state sales tax exemption established under s.
479 The commissioner shall provide the logos for the purposes 508 288.1258, Florida Statutes.
480 specified in this paragraph, not including the logo for a local 509 (11) FRAUD.—An applicant that submits fraudulent
481 office, which must be provided by the applicable office. 510 information under this section is liable for reimbursement of
482 (b) A certified project must allow the commissioner, or an 511 the reasonable costs and fees associated with the review,
483 affiliate, and a minimum of two guests to visit the production 512 processing, investigation, and prosecution of the fraudulent
484 site upon the request of the commissioner. Upon such request, 513 submission. An applicant that obtains a tax credit award under
485 the certified project must give the commissioner reasonable 514 this section through a claim that is fraudulent shall reimburse
486 notice of a visit date and time that is acceptable to the 515 the program for the tax credit awarded and reasonable costs and
487 production. The commissioner or an affiliate is not required to 516 fees associated with the review, processing, investigation, and
488 make a visit to the set. 517 prosecution of the fraudulent claim and shall pay a civil
489 (c) A certified project must provide at least five 518 penalty in an amount equal to double the tax credit amount and
490 preapproved photos of the production to the commissioner and 519 any criminal penalty assessed against the applicant.
491 grant the commissioner free use of the photos in promoting this 520 (12) ELECTION AND DISTRIBUTION OF TAX CREDITS.—
492 state as a film, television, or digital media production 521 (a) A certified production company receiving a tax credit
493 location or tourist destination. 522 award under this section shall, at the time the credit is
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523 awarded by the department after production is completed and all 552 (e) A certified production company that is not a
524 requirements to receive a credit award have been met, make an 553 corporation as defined in s. 220.03(1)(e), Florida Statutes, may
525 irrevocable election to apply the credit against taxes due under 554 elect to distribute tax credits awarded under this section to
526 chapter 220, Florida Statutes; against state taxes collected or 555 its partners or members in proportion to their respective
527 accrued under chapter 212, Florida Statutes; or against a stated 556 distributive income or loss in the taxable year in which the tax
528 combination of the two taxes. The election is binding upon any 557 credits were awarded.
529 distributee, successor, transferee, or purchaser. The department 558 (f) Tax credits available under this section to a certified
530 shall notify the Department of Revenue of any election made 559 production company may succeed to a surviving or acquiring
531 pursuant to this paragraph. 560 entity subject to the same conditions and limitations as
532 (b) A qualified production company is eligible for tax 561 described in this section; however, the credits may not be
533 credits against its sales and use tax liabilities and corporate 562 transferred by the surviving or acquiring entity.
534 income tax liabilities as provided in this section. However, tax 563 (13) TRANSFER OF TAX CREDITS.—
535 credits awarded under this section may not be claimed against 564 (a) Upon application to the Office of Film and
536 sales and use tax liabilities or corporate income tax 565 Entertainment and approval by the department, a certified
537 liabilities for any tax period beginning before July 1, 2022, 566 production company, or a partner or member of a certified
538 regardless of when the credits are applied for or awarded. 567 production company, that has received a distribution under
539 (c) If the certified production company cannot use the 568 paragraph (4)(g) may elect to transfer, in whole or in part, any
540 entire tax credit in the taxable year or reporting period in 569 unused credit amount granted under this section. An election to
541 which the credit is awarded, any excess amount may be carried 570 transfer any unused tax credit amount under chapter 212, Florida
542 forward to a succeeding taxable year or reporting period. A tax 571 Statutes, or chapter 220, Florida Statutes, must be made no
543 credit applied against taxes imposed under chapter 212, Florida 572 later than 5 years after the date the credit is awarded, after
544 Statutes, or chapter 220, Florida Statutes, may be carried 573 which period the credit expires and may not be used. The
545 forward for a maximum of 5 years after the date the credit is 574 department shall notify the Department of Revenue of the
546 awarded, after which the credit expires and may not be used. 575 election and transfer. The original transferee and any
547 (d) A certified production company that files a 576 subsequent transferees must be either the certified company’s
548 consolidated return as a member of an affiliated group under s. 577 parent company or a subsidiary company or a business with NAICS
549 220.131(1), Florida Statutes, may use the credit on a 578 code 512110, 512120, 512191, 512199, 512240, 512250, 512290,
550 consolidated return basis up to the amount of the tax imposed 579 515120, 515210, 517410, 541922, 711130, 711410, or 711510.
551 upon the consolidated group under chapter 220, Florida Statutes. 580 (b) A certified production company that elects to apply a
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581 credit amount against taxes remitted under chapter 212, Florida 610 program shall equal, but not exceed:
582 Statutes, is allowed a one-time transfer of unused credits to 611 1. For fiscal year 2022-2023, $20 million.
583 one transferee. A certified production company that elects to 612 2. For fiscal year 2023-2024, $20 million.
584 apply a credit amount against taxes due under chapter 220, 613 3. For fiscal year 2024-2025, $20 million.
585 Florida Statutes, is allowed a one-time transfer of unused 614 4. For fiscal year 2025-2026, $20 million.
586 credits to no more than four transferees, and such transfers 615 (b) Any portion of the maximum amount of tax credits
587 must occur in the same taxable year. 616 established per fiscal year in paragraph (a) which is not
588 (c) A transferee receiving a tax credit has the same rights 617 certified by the end of that fiscal year shall be carried
589 and is subject to the same limitations as the certified 618 forward and made available for certification during the
590 production company awarded the tax credit except that a 619 following 2 fiscal years in addition to the amounts available
591 transferee receiving a tax credit may not subsequently transfer 620 under paragraph (a) for those fiscal years.
592 the tax credit. 621 (c) Upon approval of the final tax credit award amount
593 (14) RELINQUISHMENT OF TAX CREDITS.— 622 pursuant to paragraph (8)(c), an amount equal to the difference
594 (a) Beginning July 1, 2022, a certified production company, 623 between the maximum tax credit award amount previously certified
595 or any person who has acquired a tax credit from a certified 624 under subsection (7) and the approved final tax credit award
596 production company, may elect to relinquish the tax credit to 625 amount shall immediately be available for recertification during
597 the Department of Revenue in exchange for payment of 85 percent 626 the current and following fiscal years in addition to the
598 of the amount of the relinquished tax credit. 627 amounts available under paragraph (a) for those fiscal years.
599 (b) The Department of Revenue may approve payments to 628 (d) If the total amount of credits applied for during a
600 entities relinquishing tax credits pursuant to this subsection. 629 fiscal year pursuant to subsection (5) exceeds the amount of
601 (c) Subject to legislative appropriation, the Department of 630 credits available for certification in that fiscal year, such
602 Revenue shall request the Chief Financial Officer to issue 631 excess shall be treated as having been applied for on the first
603 warrants to entities relinquishing tax credits. Payments under 632 day of the next fiscal year in which credits remain available
604 this subsection shall be made from the funds from which the 633 for certification.
605 proceeds from the taxes against which the tax credits could have 634 (16) RULES, POLICIES, AND PROCEDURES.—The department may
606 been applied pursuant to the irrevocable election made by the 635 adopt rules and develop policies and procedures to implement and
607 certified production company under subsection (4) are deposited. 636 administer this section, including, but not limited to, rules
608 (15) ANNUAL ALLOCATION OF TAX CREDITS.— 637 specifying requirements for the application and approval
609 (a) The aggregate amount of tax credits allocated to the 638 process, records required for substantiation for tax credits,
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639 the manner and form of documentation required to claim tax 668 result of an audit pursuant to paragraph (a) or from information
640 credits awarded, transferred, or relinquished under this 669 received from the Office of Film and Entertainment, that an
641 section, marketing requirements for tax credit recipients, and 670 applicant received tax credits pursuant to this section to which
642 the examination and audit procedures required to administer this 671 the applicant was not entitled is grounds for forfeiture of
643 section. 672 previously claimed and received tax credits. The applicant is
644 (17) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX 673 responsible for returning forfeited tax credits to the
645 CREDITS; FRAUDULENT CLAIMS.— 674 Department of Revenue, and such funds shall be paid into the
646 (a) The Department of Revenue may conduct examinations and 675 General Revenue Fund of the state. Tax credits purchased in good
647 audits as provided in s. 213.34 to verify that tax credits under 676 faith are not subject to forfeiture unless the transferee
648 this section are received, transferred, and applied according to 677 submitted fraudulent information in the purchase or failed to
649 the requirements of this section. If the Department of Revenue 678 meet the requirements in subsection (13).
650 determines that tax credits are not received, transferred, or 679 (18) ANNUAL REPORT.—Each November 1, the commissioner shall
651 applied as required by this section, it may, in addition to the 680 provide an annual report on the program for the previous fiscal
652 remedies provided in this subsection, pursue recovery of such 681 year to the Governor, the President of the Senate, and the
653 funds pursuant to the laws and rules governing the assessment of 682 Speaker of the House of Representatives. The report must
654 taxes. The Department of Revenue may adopt rules to administer 683 identify the return on investment associated with, and economic
655 this paragraph. 684 benefits to this state attributable to, the program.
656 (b) The department may revoke or modify any written 685 (19) FUNDS NOT SUBJECT TO REVERSION.—Notwithstanding s.
657 decision qualifying, certifying, or otherwise granting 686 216.301, Florida Statutes, funds appropriated for this purpose
658 eligibility for tax credits under this section if it is 687 are not subject to reversion.
659 discovered that the tax credit applicant submitted any false 688 (20) EXPIRATION.— The Targeted High Wage Production Program
660 statement, representation, or certification in any application, 689 expires June 30, 2026, at which point all remaining appropriated
661 record, report, plan, or other document filed in an attempt to 690 funds not earmarked and set aside for certified projects must
662 receive tax credits under this section. The department shall 691 revert to the General Revenue Fund. All remaining appropriated
663 immediately notify the Department of Revenue of any revoked or 692 funds must revert to the General Revenue Fund no later than
664 modified orders affecting previously granted tax credits. 693 October 31, 2027.
665 Additionally, the applicant must notify the Department of 694 Section 2. This act shall take effect upon becoming a law.
666 Revenue of any change in its tax credit claimed.
667 (c) A determination by the Department of Revenue, as a
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CourtSmart Tag Report
Room: SB 110 Case No.: Type:
Caption: Commerce and Tourism Judge:
Started: 1/10/2022 4:02:00 PM
Ends: 1/10/2022 4:30:15 PM Length: 00:28:16
4:01:59 PM Chair Hooper calls meeting to order
4:02:00 PM Roll Call by Committee Administrative Assistant
4:02:41 PM Quorum present
4:02:47 PM Chair Hooper gives opening comments
4:03:17 PM Tab 4 - SB 946 by Senator Gruters
4:03:35 PM Senator Gruters explains the bill
4:04:21 PM No questions
4:04:35 PM BD Jogerst, Associated Industries of Florida, waives in support of bill
4:04:40 PM Bob McKee, Florida Association of Counties, waives in support of the bill
4:04:42 PM Phillip Suderman, Americans for Prosperity, speaking against the bill
4:07:11 PM Lauren Starch, Hillsborough County Board of County Commissioners, waives in support of the bill
4:07:20 PM Senator Steve Geller, Broward County Board of County Commissioners, speaking for the bill
4:10:23 PM Edward Briggs, Tampa Hillsborough Film and Digital Media Commission, waives in support of the bill
4:10:32 PM Carolyn Johnson, Florida Chamber of Commerce, waives in support of the bill
4:10:44 PM John Lux, Film Florida, speaking in favor of the bill
4:13:47 PM Jess M. McCarty, Executive Assistant County Attorney Miami-Dade County, waives in support of the bill
4:14:02 PM Senator Wright in debate
4:14:37 PM Senator Gruters closes on bill
4:16:31 PM Roll call on SB 946
4:17:31 PM SB 946 is reported favorably
4:17:53 PM Tab 3 - SB 546 by Senator Gruters
4:18:10 PM Senator Gruters explains the bill
4:18:51 PM Senator Powell in questions
4:19:01 PM Senator Gruters responds
4:19:22 PM Ivonne Fernandez, AARP, waives in support of the bill
4:19:31 PM Scott Jenkins, FL Financial Services Assoc., waives in support of the bill
4:19:45 PM No debate
4:19:48 PM Senator Gruters waives close on bill
4:19:55 PM Roll call on SB 546
4:20:03 PM SB 546 is reported favorably
4:20:17 PM Tab 2 - SB 418 by Senator Pizzo
4:20:26 PM Senator Pizzo explains the bill
4:21:06 PM No questions
4:21:08 PM Whitney Doyle, Florida Alliance for Assistive Services and Technology, speaking for the bill
4:22:55 PM Senator Pizzo in questions
4:23:16 PM Whitney Doyle responds
4:23:20 PM No debate
4:23:42 PM Senator Pizzo closes on bill
4:23:48 PM Roll call on SB 418
4:23:55 PM SB 418 is reported favorably
4:24:09 PM Tab 1 - SB 842 by Senator Brodeur presented by Senator Diaz
4:24:27 PM Senator Diaz explains the bill
4:24:55 PM Senator Torres in questions
4:25:08 PM Senator Diaz responds
4:26:05 PM Amanda Prater, FGA Action, waives in support of the bill
4:26:13 PM David Mica Jr., Florida Hospital Association, waives against the bill
4:26:38 PM David Mica Jr. with Florida Hospital Association speaking against the bill
4:27:21 PM Senator Pizzo in questions
4:27:32 PM David Mica Jr. in response
4:27:40 PM Back and forth in questions
4:29:11 PM Senator Diaz waives close
4:29:19 PM Roll call SB 842
4:29:25 PM SB 842 is reported favorably
4:29:45 PM Chair Hooper in closing remarks
4:29:59 PM Senator Hutson moves to adjourn
4:30:05 PM Meeting is adjourned
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