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Commerce and Tourism — 2022 Regular Session Customized Agenda Order (01/18/2022)

Summary

Expanded agenda and meeting record of the Florida Senate Committee on Commerce and Tourism for Tuesday, January 18, 2022, with Senator Hooper, Chair, and Senator Wright, Vice Chair. The committee action column lists Favorable for SB 944 (Online Marketplace Transparency), Yeas 9 Nays 0, SB 1310 (Florida Main Street Program and Historic Preservation Tax Credits), Yeas 9 Nays 0, SB 1076 (Florida Kratom Consumer Protection Act), Yeas 8 Nays 0, and SB 1298 (Agreements with Professional Sports Teams), Yeas 7 Nays 1. The meeting notes record that SB 1298 passes favorably and that a late appearance card for SB 1310 from Sean Pittman, City of Orlando, waives in support. A letter from Senator Ileana Garcia asks to be excused from the meeting.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Commerce and Tourism — 2022 Regular Session Customized Agenda Order (01/18/2022).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-01-18-post-meeting-packet-4887-57fda5b5b4/, SHA-256 f96d1ab3810d578311a5cdac633d7b074b9e6dae925e52077f29a62f04235b7d.

Full text

Selection From: 01/18/2022 - Commerce and Tourism (9:00 AM - 10:30 AM)                           2022 Regular Session
Customized                                                                                        01/20/2022 1:09 PM
Agenda Order

Tab 1    SB 944 by Baxley; (Identical to H 01227) Online Marketplace Transparency

         SB 1310 by Rodriguez; (Similar to H 00247) Florida Main Street Program and Historic Preservation Tax
Tab 2
         Credits

Tab 3    SB 1076 by Gruters; (Similar to H 01071) Florida Kratom Consumer Protection Act


Tab 4    SB 1298 by Gruters; (Similar to H 00499) Agreements with Professional Sports Teams




                                                       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:    Tuesday, January 18, 2022
                    TIME:    9:00—10:30 a.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 944                            Online Marketplace Transparency; Requiring online         Favorable
        Baxley                            marketplaces to require high-volume third-party               Yeas 9 Nays 0
        (Identical H 1227)                sellers using their service to provide certain
                                          information to the online marketplace within a
                                          specified timeframe; requiring the online marketplace
                                          to suspend certain sellers who do not provide such a
                                          certification or updated information; requiring online
                                          marketplaces to disclose certain information in a
                                          specified manner; preempting the regulation of the
                                          verification and disclosure of such information to the
                                          Department of Legal Affairs, etc.

                                          CM       01/18/2022 Favorable
                                          CA
                                          RC


   2    SB 1310                           Florida Main Street Program and Historic                  Favorable
        Rodriguez                         Preservation Tax Credits; Citing this act as the "Main        Yeas 9 Nays 0
        (Similar H 247)                   Street Historic Tourism and Revitalization Act";
                                          specifying eligibility requirements for receiving
                                          specified tax credits for taxpayers that rehabilitate
                                          certified historic structures; authorizing the
                                          carryforward, sale, and transfer of tax credits;
                                          providing the Department of Revenue audit and
                                          examination powers for specified purposes related to
                                          certified rehabilitation expenses; requiring the return
                                          of forfeited tax credits under certain circumstances,
                                          etc.

                                          CM       01/18/2022 Favorable
                                          FT
                                          AP


   3    SB 1076                           Florida Kratom Consumer Protection Act; Creating          Favorable
        Gruters                           the "Florida Kratom Consumer Protection Act";                 Yeas 8 Nays 0
        (Similar H 1071)                  defining the terms “kratom extract,” “kratom product,”
                                          and “processor”; prohibiting processors from selling,
                                          preparing, distributing, or exposing for sale certain
                                          kratom products; prohibiting processors from
                                          distributing, selling, or exposing for sale a kratom
                                          product to an individual under 21 years of age;
                                          providing civil penalties, etc.

                                          CM       01/18/2022 Favorable
                                          AEG
                                          AP




                                                                                                                   S-036 (10/2008)
01182022.1044                                                                                                          Page 1 of 2
COMMITTEE MEETING EXPANDED AGENDA
Commerce and Tourism
Tuesday, January 18, 2022, 9:00—10:30 a.m.

                                                      BILL DESCRIPTION and
 TAB      BILL NO. and INTRODUCER                  SENATE COMMITTEE ACTIONS                         COMMITTEE ACTION

  4     SB 1298                           Agreements with Professional Sports Teams;             Favorable
        Gruters                           Defining the terms “professional sports team” and          Yeas 7 Nays 1
        (Similar H 499)                   “sporting event”; prohibiting a governmental entity
                                          from entering into certain agreements with a
                                          professional sports team unless the agreement
                                          includes specified provisions; requiring a
                                          governmental entity that enters into such an
                                          agreement to strictly enforce such provisions;
                                          authorizing the Attorney General to intervene to
                                          enforce such provisions under certain circumstances,
                                          etc.

                                          CM      01/18/2022 Favorable
                                          CA
                                          RC


        Other Related Meeting Documents




                                                                                                                S-036 (10/2008)
01182022.1044                                                                                                       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 944
INTRODUCER:          Senator Baxley
SUBJECT:             Online Marketplace Transparency
DATE:                January 14, 2022                REVISED:


             ANALYST                       STAFF DIRECTOR                 REFERENCE                                 ACTION
1. McMillan                              McKay                                 CM              Favorable
2.                                                                             CA
3.                                                                             RC



    I.     Summary:

           SB 944 creates s. 559.953, F.S., which establishes that an online marketplace must require high-
           volume third-party sellers to provide the online marketplace with verification and disclosure
           information. Additionally, an online marketplace must require high-volume third-party sellers
           with an aggregate total of $20,000 or more in annual gross revenues on its online platform to
           provide consumers with disclosure information.

           The bill requires an online marketplace to provide consumers with a reporting mechanism that
           allows for electronic and telephonic reporting of suspicious marketplace activity to the online
           marketplace and a message encouraging individuals seeking to purchase products to report
           suspicious activity to the online marketplace.

           The bill provides that a violation of s. 559.953, F.S., constitutes a violation of the Florida
           Deceptive and Unfair Trade Practices Act, and the Department of Legal Affairs may adopt rules
           to collect and verify the required information. Additionally, regulation under s. 559.953, F.S., is
           preempted to the Department of Legal Affairs.

           The bill takes effect July 1, 2022.

    II.    Present Situation:

           Florida Deceptive and Unfair Trade Practices Act (FDUTPA)

           History and Purpose of FDUTPA
           The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) became law in 1973.1 The
           FDUTPA is a consumer and business protection measure that prohibits unfair methods of

1
    Ch. 73-124, Laws of Fla.; codified at part II of ch. 501, F.S.
BILL: SB 944                                                                                                          Page 2

         competition, unconscionable acts or practices, and unfair or deceptive acts or practices in trade or
         commerce.2 The FDUTPA is based on federal law, and s. 501.204(2), F.S., provides that it is the
         intent of the Legislature that due consideration and great weight must be given to the
         interpretations of the Federal Trade Commission and the federal courts relating to section 5 of
         the Federal Trade Commission Act.3

         The State Attorney or the Department of Legal Affairs may bring actions when it is in the public
         interest on behalf of consumers or governmental entities.4 The Office of the State Attorney may
         enforce violations of the FDUTPA if the violations take place in its jurisdiction.5 The
         Department of Legal Affairs has enforcement authority if the violation is multi-jurisdictional, the
         state attorney defers in writing, or the state attorney fails to act within 90 days after a written
         complaint is filed.6 Consumers may also file suit through private actions.7

         Remedies under the FDUTPA
         The Department of Legal Affairs and the State Attorney, as enforcing authorities, may seek the
         following remedies:
          Declaratory judgments;
          Injunctive relief;
          Actual damages on behalf of consumers and businesses;
          Cease and desist orders; and
          Civil penalties of up to $10,000 per willful violation.8

         Remedies for private parties are limited to the following:
          A declaratory judgment and an injunction where a person is aggrieved by a FDUTPA
            violation; and
          Actual damages, attorney fees and court costs, where a person has suffered a loss due to a
            FDUTPA violation.9




2
  See s. 501.202, F.S. Trade or commerce means the advertising, soliciting, providing, offering, or distributing, whether by
sale, rental, or otherwise, of any good or service, or any property, whether tangible or intangible, or any other article,
commodity, or thing of value, wherever situated. “Trade or commerce” shall include the conduct of any trade or commerce,
however denominated, including any nonprofit or not-for-profit person or activity. See s. 501.203(8), F.S.
3
  See s 501.204(2), F.S.
4
  See ss. 501.203(2), 501.206, and 501.207, F.S.
5
  Section 501.203(2), F.S.
6
  Id.
7
  Section 501.211, F.S.
8
  Sections 501.207(1), 501.208, and 501.2075, F.S. Civil Penalties are deposited into general revenue. Enforcing authorities
may also request attorney fees and costs of investigation or litigation. Section 501.2105, F.S.
9
  Section 501.211(1) and (2), F.S.
BILL: SB 944                                                                                                          Page 3

         Federal Unfair and Deceptive Trade Practices

         The Federal Trade Commission’s (FTC’s) unfair and deceptive trade practices regulations
         prohibit unfair10 or deceptive11 acts or practices in or affecting commerce.12 The FTC’s
         regulations include “Truth In Advertising” guidelines, which require advertisements to be
         truthful, not misleading, and, when appropriate, backed by scientific evidence.13 To enforce these
         regulations, the FTC takes law enforcement actions, provides consumer and business education,
         issues reports and policy guidance, leads workshops, and participates in other forums.14

         The FTC also provides “online shopping” guidance to consumers.15 The guidance includes
         confirming an online seller’s physical address and phone number, scrutinizing details provided
         about a product, paying with credit card, keeping records of any transaction, and protecting
         personal information.16 Additionally, the FTC offers resources on how to compare products
         online, as well as where to go to report online shopping fraud.17

         E-commerce Marketplace

         As e-commerce grows, the sale of counterfeit goods alongside authentic products continues to be
         a concern.18 In 2020, the Department of Homeland Security published a report detailing potential
         strategies and policies to combat the trade of counterfeit goods.19 According to the report, e-
         commerce platforms enable counterfeiters to produce products at lower prices, while also
         reaching a larger number of potential customers.20 The report points to a scenario where third-
         party marketplace websites contain photos of the real product, fake reviews of the counterfeit
         product, and other information designed to mislead consumers.21


10
   An “unfair” practice is unfair if it causes or is likely to cause substantial injury to consumers which is not reasonably
avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition. See 15
U.S.C. Sec. 45(n).
11
   A “deceptive” practice involves a material representation, omission or practice that is likely to mislead a consumer acting
reasonably in the circumstances. See FTC Policy Statement on Deception (Oct. 14, 1983) available at
https://www.ftc.gov/system/files/documents/public_statements/410531/831014deceptionstmt.pdf (last visited Jan. 14, 2022).
See also Federal Trade Commission, A Brief Overview of the Federal Trade Commission's Investigative, Law Enforcement,
and Rulemaking Authority (revised, May 2021) available at https://www.ftc.gov/about-ftc/what-we-do/enforcement-authority
(last visited Jan. 14, 2022).
12
   15 U.S.C. s. 45(a)(1).
13
   Federal Trade Commission, Truth In Advertising, available at https://www.ftc.gov/news-events/media-resources/truth-
advertising (last visited Jan. 14, 2022).
14
   Federal Trade Commission, Protecting Consumers from Fraud and Deception, available at https://www.ftc.gov/news-
events/media-resources/truth-advertising/protecting-consumers (last visited Jan. 14, 2022).
15
   See Federal Trade Commission, Shopping Online, available at https://www.consumer.ftc.gov/articles/0020-shopping-
online (last visited Jan. 14, 2022).
16
   Id.
17
   Id. See also Federal Trade Commission, Comparison Shopping, available at https://www.consumer.ftc.gov/shopping (last
visited Jan. 14, 2022).
18
   See Department of Homeland Security, Combating Trafficking in Counterfeit and Pirated Goods (Jan. 24, 2020), available
at https://www.dhs.gov/sites/default/files/publications/20_0124_plcy_counterfeit-pirated-goods-report_01.pdf (last visited
Jan. 14, 2022).
19
   Id.
20
   Id. at 21.
21
   Id. at 22.
BILL: SB 944                                                                                                       Page 4

        The report also discusses how the online marketplace is changing consumer attitudes and
        perceptions.22 For instance, shopping online makes it harder for consumers to identify what the
        report calls traditional “red flag” indicators, which has the potential to cause safety risks when
        consumers rely on false claims that certain products have health or safety certificates.23 The
        report points out that this dynamic creates a lack of consumer trust, as well as harming the
        reputation of brands or businesses.24

        In 2019, the Organization for Economic Cooperation and Development (OECD) in partnership
        with the EU Intellectual Property Office also published a study detailing trends in counterfeit and
        pirated goods.25 According to the OECD, trade in fake goods infringe on trademarks and
        copyright, while also potentially harming the health and safety of consumers.26 The OECD
        reported that counterfeit and pirated goods were steadily rising, and in March of 2019, accounted
        for 3.3 percent of global trade.27

        Preemption

        Local governments have broad authority to legislate on any matter that is not inconsistent with
        federal or state law. A local government enactment may be inconsistent with state law if (1) the
        Legislature has preempted a particular subject area or (2) the local enactment conflicts with a
        state statute. Where state preemption applies, it precludes a local government from exercising
        authority in that particular area.28

        Florida law recognizes two types of preemption: express and implied. Express preemption
        requires a specific legislative statement; it cannot be implied or inferred.29 Express preemption of
        a field by the Legislature must be accomplished by clear language stating that intent.30 In cases
        where the Legislature expressly or specifically preempts an area, there is no problem with
        ascertaining what the Legislature intended.31

        In cases determining the validity of ordinances enacted in the face of state preemption, the effect
        has been to find such ordinances null and void.32 Implied preemption is actually a decision by the
        courts to create preemption in the absence of an explicit legislative directive.33 Preemption of a

22
   Id. at 14.
23
   Id. at 15.
24
   Id.
25
   See Organization for Economic Cooperation and Development, Trends in Trade in Counterfeit and Pirated Goods (2019),
available at https://read.oecd-ilibrary.org/trade/trends-in-trade-in-counterfeit-and-pirated-goods_g2g9f533-en#page1 (last
visited Jan. 14, 2022).
26
   See Organization for Economic Cooperation and Development, Trade in Fake Goods is now 3.3% of World Trading and
Rising (March 18, 2019), available at www.oecd.org/newsroom/trade-in-fake-goods-is-now-33-of-world-trade-and-
rising.htm (last visited Jan. 14, 2022).
27
   Id.
28
   See James R. Wolf and Sarah Harley Bolinder, The Effectiveness of Home Rule: A Preemptions and Conflict Analysis, 83
Fla. B.J. 92 (June 2009).
29
   See City of Hollywood v. Mulligan, 934 So.2d 1238, 1243 (Fla. 2006); Phantom of Clearwater, Inc. v. Pinellas County, 894
So.2d 1011, 1018 (Fla. 2d DCA 2005), approved in Phantom of Brevard, Inc. v. Brevard County, 3 So.3d 309 (Fla. 2008).
30
   Mulligan, 934 So.2d at 1243.
31
   Sarasota Alliance for Fair Elections, Inc. v. Browning, 28 So.3d 880, 886 (Fla. 2010).
32
   See, e.g., Nat’l Rifle Ass’n of Am., Inc. v. City of S. Miami, 812 So.2d 504 (Fla. 3d DCA 2002).
33
   Phantom of Clearwater, Inc., 894 So.2d at 1019.
BILL: SB 944                                                                                                         Page 5

        local government enactment is implied only where the legislative scheme is so pervasive as to
        evidence an intent to preempt the particular area, and strong public policy reasons exist for
        finding preemption.34 Implied preemption is found where the local legislation would present the
        danger of conflict with the state's pervasive regulatory scheme.35

III.    Effect of Proposed Changes:

        The bill creates s. 559.953, F.S., and provides the following definitions:
         “Consumer product” means a product that is used or bought for use primarily for personal,
           family, or household purposes;
         “High-volume third-party seller” means a participant in an online marketplace that is a third-
           party seller and who, in any continuous 12-month period during the previous 24-months, has
           entered into 200 or more discrete sales or transactions of new or unused consumer products
           resulting in the accumulation of an aggregate total of $5,000 or more in gross revenues;36
         “Online marketplace” means any consumer-directed electronically based or accessed
           platform that includes features that allow for, facilitate, or enable third-party sellers to engage
           in the sale, purchase, payment, storage, shipping, or delivery of a consumer product in the
           United States, is used by one or more third-party sellers for such purposes, and has a
           contractual or similar relationship with consumers governing their use of the platform to
           purchase consumer products;
         “Seller” means a person who sells, offers to sell, or contracts to sell a consumer product
           through an online marketplace;
         “Third-party seller” means any seller, independent of an operator, a facilitator, or an owner
           of an online marketplace, who sells, offers to sell, or contracts to sell a consumer product in
           the United States through an online marketplace;37 and
         “Verify” means to confirm information and documentation provided to an online
           marketplace by the use of one or more methods that enable the online marketplace to reliably
           determine that any information and documents provided which correspond to the seller or an
           individual acting on the seller’s behalf are valid, not misappropriated, and not falsified.

        The bill establishes that an online marketplace must require high-volume third-party sellers to
        provide the online marketplace with the following information within 10 business days after
        qualifying as a high-volume third-party seller:
         Deposit account information from a financial institution;
         Contact information;38and

34
   Id.
35
   Sarasota Alliance for Fair Elections, Inc., 28 So.3d at 886.
36
   Only sales or transactions made through the online marketplace for which payment was processed by the online
marketplace, either directly or through the seller’s payment processer, count towards the calculation for the number of
discrete sales or transactions or gross revenues.
37
   The term “third-party seller” does not include, with respect to an online marketplace: a seller that operates the online
marketplace; a business entity that has made available to the general public the entity’s name, business address, and working
contact information; a business entity with an ongoing contractual relationship with the online marketplace to provide the
online marketplace with the manufacture, distribution, wholesaling, or fulfillment of shipments of consumer products; or a
business entity that has provided to the online marketplace identifying information that has been verified.
38
   Contact information includes: a valid e-mail address and working phone number; if the high-volume third-party seller is an
individual, a copy of a valid government-issued photo identification for the individual which includes the individual’s name
and physical address; if the high-volume third-party seller is not an individual, either a copy of a government-issued photo
BILL: SB 944                                                                                                           Page 6

            A business tax identification number or, if the high-volume third party seller does not have a
             business tax identification number, a taxpayer identification number.

         The bill provides that the online marketplace must verify the information the high-volume third-
         party seller provides under s. 559.953(2)(a), F.S., within 10 business days after receiving the
         information. If the high-volume third-party seller provides any changes to the information, the
         online marketplace must verify such changes within 10 business days after receiving the
         information.39

         The bill requires the online marketplace to annually notify each high-volume third-party seller
         that they must inform the online marketplace of any changes to the information provided by the
         seller within 10 business days after receiving the notification.40

         The bill establishes that an online marketplace must require a high-volume third-party seller to
         disclose to consumers in a conspicuous manner on the product listing, through a conspicuously
         placed link on the product listing, or in the order confirmation message or other document of
         communication made to the consumer after the purchase is finalized and in the consumer’s
         account transaction history, all of the following information of any high-volume third party seller
         with an aggregate total of $20,000 or more in annual gross revenues on its online platform:
          The full name of the high-volume third-party seller;
          The full physical address of the high-volume third-party seller;41
          Contact information for the high-volume third-party seller, including a working telephone
             number and working e-mail address to allow for direct, unhindered communication with the
             high-volume third-party seller;42 and
          The identification of any seller that supplies the consumer product to the consumer upon
             purchase, if such seller is different than the high-volume third-party seller listed on the
             consumer product listing before the purchase.

         The bill provides that if an online marketplace becomes aware that a high-volume third-party
         seller has made a false representation to the online marketplace in order to restrict access to the
         full physical address, telephone number, or e-mail address required, then the online marketplace,
         after providing the seller with written or electronic notice, must require the full disclosure of the
         high-volume third-party seller’s full physical address, telephone number, and e-mail address. If
         such information is not disclosed within 10 business days after notification, the online

identification for an individual acting on behalf of such seller which includes such individual’s name and physical address or
a copy of a government-issued record or tax document that includes the business name and physical address of the high-
volume third-party seller.
39
   If a high-volume third-party seller provides a copy of a valid government-issued tax document, the information contained
within such document must be presumed verified as of the date of issuance of the document.
40
   The online marketplace must include in the notification direction to each high-volume third-party seller to electronically
certify either that the seller’s information is unchanged or that the seller is providing changes to the information. The high-
volume third-party seller’s participation on the marketplace must be suspended until they have certified that their information
is unchanged or has provided any changed information and the information has been verified.
41
   If the full physical address of the high-volume third-party seller is the primary residential address of such high-volume
third-party seller, only the city, state, and country of the high-volume third-party seller is required to be disclosed.
42
   If the only telephone number of the high-volume third-party seller is the personal telephone number of the high-volume
third-party seller, then only the working e-mail address is required to be disclosed or the online marketplace must provide
other means of electronic messaging to contact the seller.
BILL: SB 944                                                                                        Page 7

        marketplace must suspend the selling privileges of the high-volume third-party seller on the
        online marketplace until the required information is disclosed.

        The bill requires an online marketplace to conspicuously, on the product listing of any high-
        volume third-party seller, provide to consumers a reporting mechanism that allows for electronic
        and telephonic reporting of suspicious marketplace activity to the online marketplace and a
        message encouraging individuals seeking to purchase products to report suspicious activity to the
        online marketplace.

        The bill provides that an online marketplace is not prevented from providing additional
        measures, electronic or otherwise, that it deems necessary to prevent the sale of fraudulent,
        stolen, or counterfeit consumer products on its platform.

        The bill establishes that a violation of s. 559.953, F.S., constitutes a violation of the Deceptive
        and Unfair Trade Practices Act,43 and the Department of Legal Affairs may adopt rules to collect
        and verify the required information.

        The bill provides that the regulation under s. 559.953, F.S., is preempted to the Department of
        Legal Affairs.

        The bill takes effect July 1, 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.




43
 See part II of ch. 501, F.S.
 BILL: SB 944                                                                                                                         Page 8

  V.    Fiscal Impact Statement:

        A.       Tax/Fee Issues:

                 None.

        B.       Private Sector Impact:

                 Marketplace providers will be required to verify high volume third-party sellers, as well
                 as require certain disclosures. This will potentially provide more safety within the online
                 marketplace.

        C.       Government Sector Impact:

                 This bill will potentially lead to an increase in the investigations and enforcement actions
                 undertaken by the Department of Legal Affairs relating to violations of the provisions of
                 this bill.

 VI.    Technical Deficiencies:

        None.

VII.    Related Issues:

        None.

VIII.   Statutes Affected:

        The bill creates the following section of the Florida Statutes: 559.953.

 IX.    Additional Information:

        A.       Committee Substitute – Statement of Changes:
                 (Summarizing differences between the Committee Substitute and the prior version of the bill.)

                 None.

        B.       Amendments:

                 None.

         This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
       Florida Senate - 2022                                         SB 944          Florida Senate - 2022                                         SB 944



       By Senator Baxley




       12-00821A-22                                               2022944__          12-00821A-22                                               2022944__
1                              A bill to be entitled                          30          (1) DEFINITIONS.—As used in this section, the term:
2           An act relating to online marketplace transparency;               31          (a) “Consumer product” means a product that is used or
3           creating s. 559.953, F.S.; defining terms; requiring              32     bought for use primarily for personal, family, or household
4           online marketplaces to require high-volume third-party            33     purposes.
5           sellers using their service to provide certain                    34          (b) “High-volume third-party seller” means a participant in
6           information to the online marketplace within a                    35     an online marketplace that is a third-party seller and that, in
7           specified timeframe; requiring the online marketplace             36     any continuous 12-month period during the previous 24 months,
8           to verify such information, or changes to such                    37     has entered into 200 or more discrete sales or transactions of
9           information, within a specified timeframe; providing              38     new or unused consumer products resulting in the accumulation of
10          that information on valid government-issued tax                   39     an aggregate total of $5,000 or more in gross revenues. Only
11          documents is presumed verified as of the issuance                 40     sales or transactions made through the online marketplace for
12          date; requiring an online marketplace to update and               41     which payment was processed by the online marketplace, either
13          require certification of the updated information at               42     directly or through the seller’s payment processer, count
14          least annually; requiring the online marketplace to               43     towards the calculation for the number of discrete sales or
15          suspend certain sellers who do not provide such a                 44     transactions or the gross revenues.
16          certification or updated information; requiring online            45          (c) “Online marketplace” means any consumer-directed
17          marketplaces to disclose certain information in a                 46     electronically based or accessed platform that:
18          specified manner; requiring disclosure of suppliers;              47          1. Includes features that allow for, facilitate, or enable
19          providing for enforcement; authorizing the Department             48     third-party sellers to engage in the sale, purchase, payment,
20          of Legal Affairs to adopt rules; preempting the                   49     storage, shipping, or delivery of a consumer product in the
21          regulation of the verification and disclosure of such             50     United States;
22          information to the department; providing an effective             51          2. Is used by one or more third-party sellers for such
23          date.                                                             52     purposes; and
24                                                                            53          3. Has a contractual or similar relationship with consumers
25     Be It Enacted by the Legislature of the State of Florida:              54     governing their use of the platform to purchase consumer
26                                                                            55     products.
27          Section 1. Section 559.953, Florida Statutes, is created to       56          (d) “Seller” means a person who sells, offers to sell, or
28     read:                                                                  57     contracts to sell a consumer product through an online
29          559.953 Disclosure of information by online marketplaces.—        58     marketplace.

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59          (e) “Third-party seller” means any seller, independent of         88      institution. If the high-volume third-party seller does not have
60     an operator, a facilitator, or an owner of an online                   89      deposit account information at a financial institution, such
61     marketplace, that sells, offers to sell, or contracts to sell a        90      seller must provide the online marketplace with the name of the
62     consumer product in the United States through an online                91      payee for payments issued by the online marketplace to the high-
63     marketplace. The term does not include, with respect to an             92      volume third-party seller, and the information must be confirmed
64     online marketplace:                                                    93      by the online marketplace or by another third party contracted
65          1. A seller that operates the online marketplace;                 94      by the online marketplace.
66          2. A business entity that has made available to the general       95           2. Contact information, including all of the following:
67     public the entity’s name, business address, and working contact        96           a. A valid e-mail address and working phone number.
68     information;                                                           97           b. If the high-volume third-party seller is an individual,
69          3. A business entity with an ongoing contractual                  98      a copy of a valid government-issued photo identification for the
70     relationship with the online marketplace to provide the online         99      individual which includes the individual’s name and physical
71     marketplace with the manufacture, distribution, wholesaling, or        100     address.
72     fulfillment of shipments of consumer products; or                      101          c. If the high-volume third-party seller is not an
73          4. A business entity that has provided to the online              102     individual, either a copy of a government-issued photo
74     marketplace identifying information that has been verified.            103     identification for an individual acting on behalf of such seller
75          (f) “Verify” means to confirm information and documentation       104     which includes such individual’s name and physical address or a
76     provided to an online marketplace by the use of one or more            105     copy of a government-issued record or tax document that includes
77     methods that enable the online marketplace to reliably determine       106     the business name and physical address of the high-volume third-
78     that any information and documents provided which correspond to        107     party seller.
79     the seller or an individual acting on the seller’s behalf are          108          3. A business tax identification number or, if the high-
80     valid, not misappropriated, and not falsified.                         109     volume third-party seller does not have a business tax
81          (2) VERIFICATION.—                                                110     identification number, a taxpayer identification number.
82          (a) An online marketplace shall require that any high-            111          (b) The online marketplace shall verify the information the
83     volume third-party seller on the online marketplace provide the        112     high-volume third-party seller provides under this subsection
84     online marketplace with all of the following information within        113     within 10 business days after receiving such information. If the
85     10 business days after qualifying as a high-volume third-party         114     high-volume third-party seller provides any changes to the
86     seller:                                                                115     information, the online marketplace must verify such changes
87          1. Deposit account information from a financial                   116     within 10 business days after receiving the information. If a

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117     high-volume third-party seller provides a copy of a valid              146          1. The full name of the high-volume third-party seller.
118     government-issued tax document, the information contained within       147          2. The full physical address of the high-volume third-party
119     such tax document shall be presumed verified as of the date of         148     seller. If the full physical address of the high-volume third-
120     issuance of such document.                                             149     party seller is the primary residential address of such high-
121          (c) The online marketplace shall, on at least an annual           150     volume third-party seller, only the city, state, and country of
122     basis, notify each high-volume third-party seller on the online        151     the high-volume third-party seller is required to be disclosed.
123     marketplace that such seller must inform the online marketplace        152          3. Contact information for the high-volume third-party
124     of any changes to the information previously provided by the           153     seller, including a working telephone number and working e-mail
125     seller within 10 business days after receiving the notification.       154     address to allow for direct, unhindered communication with the
126     The notification must require the high-volume third-party seller       155     high-volume third-party seller. If the only telephone number of
127     to either electronically certify that the high-volume third-           156     the high-volume third-party seller is the personal telephone
128     party seller’s information is unchanged or provide changes to          157     number of the high-volume third-party seller, then only the
129     the information as necessary. If the online marketplace becomes        158     working e-mail address is required to be disclosed or the online
130     aware that a high-volume third-party seller has not certified          159     marketplace must provide other means of electronic messaging to
131     that such information is unchanged or provided such changed            160     contact such seller.
132     information within 10 business days after receiving such               161          4. The identification of any seller that supplies the
133     notification, the online marketplace must suspend the selling          162     consumer product to the consumer upon purchase, if such seller
134     privileges of the high-volume third-party seller until such            163     is different than the high-volume third-party seller listed on
135     seller provides such certification or changed information.             164     the consumer product listing before the purchase.
136          (3) DISCLOSURE.—                                                  165          (b) If an online marketplace becomes aware that a high-
137          (a) An online marketplace shall disclose to consumers in a        166     volume third-party seller has made a false representation to the
138     conspicuous manner on the product listing, through a                   167     online marketplace in order to restrict access to the full
139     conspicuously placed link on the product listing, or in the            168     physical address, telephone number, or e-mail address required
140     order confirmation message or other document or communication          169     in paragraph (a), the online marketplace must, after providing
141     made to the consumer after the purchase is finalized and in the        170     the seller with written or electronic notice, require the full
142     consumer’s account transaction history, all of the following           171     disclosure of the high-volume third-party seller’s full physical
143     information of any high-volume third party seller with an              172     address, telephone number, and e-mail address. If such
144     aggregate total of $20,000 or more in annual gross revenues on         173     information is not disclosed within 10 business days after
145     its online platform:                                                   174     notification, the online marketplace must suspend the selling

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        12-00821A-22                                               2022944__
175     privileges of the high-volume third-party seller on the online
176     marketplace until the required information is disclosed.
177          (c) An online marketplace shall provide to consumers, in a
178     conspicuous manner on the consumer product listing of any high-
179     volume third-party seller, a reporting mechanism that allows for
180     electronic and telephonic reporting of suspicious marketplace
181     activity to the online marketplace and a message encouraging
182     individuals seeking goods for purchase to report suspicious
183     activity to the online marketplace.
184          (d) This subsection does not prevent an online marketplace
185     from providing any additional measures, electronic or otherwise,
186     that it deems necessary to prevent the sale of fraudulent,
187     stolen, or counterfeit consumer products on its platform.
188          (4) ENFORCEMENT.—A violation of this section constitutes a
189     violation of the Deceptive and Unfair Trade Practices Act under
190     part II of chapter 501. A person who violates this section is
191     subject to the penalties and remedies provided therein.
192          (5) RULES.—The Department of Legal Affairs may adopt rules
193     with respect to collecting and verifying information under this
194     section, provided that such rules are limited to what is
195     necessary to collect and verify such information.
196          (6) PREEMPTION.—The regulation of the requirement for
197     online marketplaces to verify information from high-volume
198     third-party sellers on a one-time or ongoing basis or disclose
199     information to consumers is preempted to the department. A local
200     governmental entity may not establish, mandate, or otherwise
201     require the verification or disclosure of such information.
202          Section 2. This act shall take effect July 1, 2022.



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                                         The Florida Senate

                          Committee Agenda Request




To:            Senator Ed Hooper, Chair
               Committee on Commerce and Tourism

Subject:       Committee Agenda Request

Date:          January 5, 2022


I respectfully request that Senate Bill #1310, relating to Florida Main Street Program and
Historic Preservation Tax Credits, be placed on the:

               committee agenda at your earliest possible convenience.

               next committee agenda.




                                             Senator Ana Maria Rodriguez
                                             Florida Senate, District 39




File signed original with committee office                                           S-020 (03/2004)
                                                      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 1310
INTRODUCER:     Senator Rodriguez
SUBJECT:        Florida Main Street Program and Historic Preservation Tax Credits
DATE:           January 14, 2022                REVISED:


           ANALYST                    STAFF DIRECTOR                 REFERENCE                                 ACTION
1. Renner                           McKay                                 CM              Favorable
2.                                                                        FT
3.                                                                        AP



  I.    Summary:

        SB 1310 creates the Main Street Historic Tourism and Revitalization Act (Act), which provides a
        tax credit against corporate income taxes and insurance premium taxes for qualified expenses
        incurred in the rehabilitation of a certified historic structure.

        The tax credit may not exceed 20 percent of qualified expenses incurred in the rehabilitation of a
        certified historic structure that has been approved by the National Park Service to receive the
        federal historic rehabilitation tax credit or 30 percent of the total qualified expenses incurred in
        the rehabilitation of a certified historic structure that has been approved by the National Park
        Service to receive the federal historic rehabilitation tax credit that is located within a local
        program area of an Accredited Main Street Program.

        Any unused amount may be carried forward for a period up to 10 years. There is no limit on the
        total number of transactions for the sale or transfer of all or part of a tax credit. However,
        qualified expenses may only be counted once in determining the amount of an available tax
        credit, and more than one taxpayer may not claim a tax credit for the same qualified expenses.

        The Revenue Estimating Conference has not yet reviewed the economic impact of this bill.

        The bill takes effect on July 1, 2022.
BILL: SB 1310                                                                                                           Page 2

    II.   Present Situation:

          National Register of Historic Places

          The National Historic Register of Historic Places,1 under the National Park Service, is “part of a
          national program to coordinate and support public and private efforts to identify, evaluate, and
          protect America’s historic and archeological resources.”2 The program reviews property
          nominations and lists eligible properties in the National Register; offers guidance on evaluating,
          documenting, and listing historic places, and helps qualified historic properties receive
          preservation benefits and incentives.3

          Properties listed in the National Register are eligible for federal preservation tax credits. A 20
          percent income tax credit is available for the rehabilitation of historic, income-producing
          buildings that are determined by the Secretary of the Interior, through the National Park Service,
          to be certified historic structures.4

          Main Street America

          Main Street America, a program under the National Main Street Center,5 is a network of
          grassroots organizations that “revitalizes older and historic commercial districts to build vibrant
          neighborhoods and thriving economies.”6 The program offers community-based revitalization
          initiatives to transform downtowns. In order to be designated as either an affiliate or accredited
          member of Main Street America, a community must first become a member of the National Main
          Street Center and meet certain requirements.7 Main Street America has coordinating programs
          that are organized at the state, county, and city level that partner with the National Main Street
          Center to provide support and training to Main Street America communities.

          Florida has two coordinating programs: Florida Main Street America located in Tallahassee and
          Orlando Main Street located in Orlando.8 Florida Main Street is administered by the Division of
          Historical Resources (division) under the Florida Department of State.9 Forty-five Florida Main


1
  54 U.S.C., § 3021.
2
  U.S. Department of the Interior, National Park Service, National Register of Historic Places, What is the National Register
of Historic Places?, available at https://www.nps.gov/subjects/nationalregister/what-is-the-national-register.htm (last visited
Jan. 14, 2022).
3
  Id.
4
  U.S. Department of the Interior, National Park Service, Technical Preservation Services, available at
https://www.nps.gov/tps/tax-incentives.htm (last visited Jan. 14, 2022).
5
  The National Main Street Center was established in 1980 as a program of the National Trust for Historic Preservation as a
way to address issues facing aging and historic downtowns. The Center launched the Main Street America program in 2015.
See Main Street America, About Us, available at https://www.mainstreet.org/about-us (last visited Jan. 14, 2022).
6
  Main Street America, About Us, available at https://www.mainstreet.org/about-us (last visited Jan. 14, 2022).
7
  Main Street America, Designation, available at https://higherlogicdownload.s3.amazonaws.com/NMSC/390e0055-2395-
4d3b-af60-81b53974430d/UploadedImages/Main_Street_America_Tier_System_Overview_-_2021_July_Update.pdf (last
visited Jan. 14, 2022).
8
  Main Street America, Coordinating Programs, available at
https://higherlogicdownload.s3.amazonaws.com/NMSC/390e0055-2395-4d3b-af60-
81b53974430d/UploadedImages/The_Programs/2020_Coordinating_Program_List.pdf (last visited Jan. 14, 2022).
9
  Section 267.031(5), F.S.
BILL: SB 1310                                                                                                                Page 3

         Streets and 10 Orlando Main Streets have received technical assistance toward the goal of
         revitalizing historic downtowns and encouraging economic development.10

         Corporate Income Tax

         Florida levies a 5.5 percent tax on certain income of corporations and financial institutions doing
         business in Florida.11 Florida utilizes the taxable income determined for federal income tax
         purposes as a starting point to determine the total amount of Florida corporate income tax due.12
         This means that a corporation paying taxes in Florida generally receives the same benefits from
         deductions allowed when determining taxable income for federal tax purposes as it does when
         determining taxable income for state taxation purposes.

         Insurance Premium Tax

         Florida imposes a 1.75 percent tax on most Florida insurance premiums.13 Insurance premium
         taxes are paid by insurance companies under ch. 624, F.S., and are remitted to the Department of
         Revenue (DOR). These revenues are distributed to General Revenue.

III.     Effect of Proposed Changes:

         The bill creates the Main Street Historic Tourism and Revitalization Act (Act) which provides a
         tax credit against corporate income tax and insurance premium tax for qualified expenses14
         incurred in the rehabilitation of a certified historic structure.

         Eligibility

         A taxpayer must apply to the DOR for a tax credit before taking a credit on their return and must
         document that:
          The rehabilitation is a certified rehabilitation;15
          The structure is a certified historic structure,16 is income-producing, is located within the
             state, and was rehabilitated and placed into service on or after July 1, 2022;



10
   Visit Florida, Florida Main Street Programs Have Stories to Tell, available at https://www.visitflorida.com/travel-
ideas/articles/florida-main-street/ (last visited Jan. 14, 2022).
11
   Section 220.11(2), F.S.
12
   Section 220.12, F.S.
13
   Section 624.509, F.S.
14
   The bill defines “qualified expenses” as qualified rehabilitation expenditures (defined in 26 U.S.C., §47(c)(2)) and
structural components (defined in 26 C.F.R., § 1.48-1(e)(2)) at the time of project certification by the U.S. Secretary of the
Interior and the U.S. Internal Revenue Service (IRS).
15
   The bill defines “certified rehabilitation” as the rehabilitation of a certified historic structure that the U.S. Secretary of the
Interior has certified to the U.S. Secretary of the Treasury as being consistent with the historic character of the certified
historic structure and, if applicable, consistent with the registered historic district in which the structure is located. See 36
C.F.R., § 67.2
16
   The bill defines a “certified historic structure” as a building and its structural components which is of a character subject to
the allowance for depreciation provided in s. 167 of the Internal Revenue Code and which is listed on the National Register
of Historic Places or located within a registered historic district and certified by the U.S. Secretary of the Interior as being of
historic significance to the registered historic district.
BILL: SB 1310                                                                                        Page 4

         The taxpayer had an ownership interest in the certified historic structure in the year during
          which the certified historic structure was placed into service after the certified rehabilitation
          was complete; and
         The total amount of qualified expenses incurred in rehabilitating the certified historic
          structure exceeded $5,000.

      Filing Requirements

      Before claiming or transferring a tax credit, the taxpayer must provide the following information
      to the DOR:
       An official certificate of eligibility from the division attesting that the project has been
          approved by the National Park Service and confirming whether the project is or is not located
          within a Main Street local program;
       National Park Service Form 10-168c, signed by the National Park Service attesting that the
          completed rehabilitation meets the U.S. Secretary of the Interior’s Standards for
          Rehabilitation and is consistent with the historic character of the property and, if applicable,
          the district in which the completed rehabilitation is located;
       Identification of the dates during which the structure was rehabilitated, the date the structure
          was first placed into service after certified rehabilitation was completed, and evidence that
          the structure was placed into service after the certified rehabilitation was completed;
       A list of total qualified expenses incurred by the taxpayer in rehabilitation the certified
          historic structure. For certified rehabilitations with qualified expenses that exceeded
          $750,000, the taxpayer must submit an audited cost report that itemizes the qualified
          expenses incurred in rehabilitating the structure as provided in the Florida Single Audit Act.
       An attestation of the total qualified expenses incurred by the taxpayer in rehabilitating the
          certified historic structure;
       A completed “Florida Corporate Income/Franchise Tax Return” form issued by the DOR for
          insurance premium tax reporting; and
       The information required to be reported by the DOR to enable the DOR to compile its annual
          report based on the tax credit applications submitted and approved.

      Amount and Carryforward of Tax Credit

      The tax credit may be used to offset the corporate income tax and the insurance premium tax.
      The total tax credit claimed annually may not exceed the amount of tax due after any other
      applicable tax credits and may not exceed:
       Twenty percent of the total qualified expenses incurred in rehabilitating a certified historic
         structure that has been approved by the National Park Service to receive the federal historic
         rehabilitation tax credit; or
       Thirty percent of the total qualified expenses incurred in rehabilitating a certified historic
         structure that has been approved by the National Park Service to receive the federal historic
         rehabilitation tax credit and that is located within a local program area of an Accredited Main
         Street Program.

      If a taxpayer is eligible for a tax credit that exceeds taxes owed, the taxpayer may carry the
      unused tax credit forward for a period of up to 10 years.
BILL: SB 1310                                                                                         Page 5


      Sale or Transfer of Tax Credit

      The bill provides that there is no limit on the total number of transactions for the sale or transfer
      of all or part of a tax credit. However, qualified expenses may only be counted once in
      determining the amount of an available tax credit, and more than one taxpayer may not claim a
      tax credit for the same qualified expenses.

      A taxpayer that sells or transfers a tax credit, and the purchaser or transferee must jointly submit
      written notice of the sale or transfer to the DOR no later than the 30th day after the date of the
      sale or transfer. The notice must include the following information:
       The date of the sale or transfer;
       The amount of the tax credit sold or transferred;
       The name and federal tax identification number of the taxpayer that sold or transferred the
          tax credit and the purchaser or transferee; and
       The amount of the tax credit owed by the taxpayer before the sale or transfer and the amount
          the selling or transferring taxpayer retained, if any, after the sale or transfer.

      The sale or transfer of a tax credit does not extend the period for which a tax credit may be
      carried forward and does not increase the total amount of the tax credit that may be claimed.

      A tax credit earned, purchased, or transferred to a partnership, limited liability company, S
      corporation, or other pass-through taxpayer may be allocated to the partners, members, or
      shareholders of that taxpayer and without regard to the ownership interest of the partners,
      members, or shareholders in the rehabilitated certified historic structure.

      If the tax credit is reduced due to a determination, examination, or audit by the DOR, the tax
      deficiency must be recovered from the taxpayer that sold or transferred the tax credit or the
      purchaser or transferee that claimed the tax credit up to the amount of the tax credit taken. Any
      subsequent deficiencies must be assessed against the purchaser or transferee that claimed the tax
      credit, or in the case of multiple succeeding entities, in the order of tax credit succession.

      DOR Audit Authority

      The DOR is authorized to perform additional financial and technical audits and examinations,
      including examining the accounts, books, or records of the tax credit applicant, to verify the
      legitimacy of the qualified expenses included in a tax credit return and to ensure compliance.

      It is grounds for forfeiture of previously claimed and received tax credits if the DOR determines
      that a taxpayer received a tax credit to which the taxpayer was not entitled. The taxpayer must
      return the forfeited tax credits to the DOR, which will then be paid into the General Revenue
      Fund.

      The taxpayer must file an amended tax return and pay any required tax within 60 days after the
      taxpayer receives notification from the IRS that a previously approved tax credit has been
      revoked or modified, if uncontested, or within 60 days after a final order is issued following
      proceedings involving a contested revocation or modification order.
BILL: SB 1310                                                                                       Page 6


      The DOR may issue a notice of deficiency at any time within five years after the date on which
      the taxpayer receives notification from the IRS that a previously approved tax credit has been
      revoked or modified.

      The DOR may issue a notice of deficiency at any time if the taxpayer fails to notify the DOR of
      any change in its tax credit claimed. The amount of any proposed assessment in the notice of
      deficiency is limited to the amount of any deficiency from the precomputation of the taxpayer’s
      tax for the taxable year. Furthermore, a taxpayer is subject to applicable penalties and interest for
      failing to report and timely paying any tax due as a result of the forfeiture of its tax credit.

      Other Provisions

      The DOR must provide an annual report that identifies, in the aggregate, the number of
      employees hired during construction phases, the use of each newly rehabilitated building and the
      expected number of employees hired, the number of affordable housing units created or
      preserved, and the property values before and after the certified rehabilitations.

      The DOR must also establish any necessary forms required to claim a tax credit; provide
      administrative guidelines and procedures required to administer the Act, including rules
      establishing an entitlement to and sale or transfer of a tax credit; and provide examination and
      audit procedures required to administer the Act.

      The DOR is granted rulemaking authority to administer the Act.

      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.

      D.        State Tax or Fee Increases:

                None.

      E.        Other Constitutional Issues:

                None.
BILL: SB 1310                                                                                                    Page 7

 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:

                   Taxpayers who have ownership interest in a certified historic structure in the year during
                   which the structure was placed into service after the certified rehabilitation was complete
                   may be eligible to receive a tax credit to offset corporate income taxes and insurance
                   premium taxes for qualified expenses incurred in the rehabilitation of the certified
                   historic structure.

           C.      Government Sector Impact:

                   According to the DOR, the bill will have a non-recurring negative fiscal impact in the
                   amount of $250,772 for fiscal year 2021-2022 in order to make modifications to the
                   DOR’s software systems, databases and applications.17

                   Additionally, new rules and forms would need to be promulgated in order to administer
                   the tax credit.

VI.        Technical Deficiencies:

           None.

VII.       Related Issues:

           The DOR raised the following concerns:
            The bill does not provide for a cooperative agreement between the DOR and the division to
              assist with the administration of the program.
            The DOR requests emergency rulemaking authority to administer the Act.
            The DOR is authorized to perform audits to verify the legitimacy of the qualified expenses
              included in a tax credit return; however, the DOR lacks the expertise and experience to
              perform such audits. The division may need to assist the DOR with the audits.
            The bill provides that it is grounds for forfeiture of previously claimed and received tax
              credits if the DOR determines, as a result of an audit or information received from the
              division of the U.S. Department of the Interior, that a taxpayer received a tax credit to which
              the taxpayer was not entitled. It is unclear how the DOR would receive information from the
              division or the U.S. Department of the Interior because the bill does not provide for
              information sharing among the three entities.
            The annual report requires the DOR to list “employees hired.” It is unclear what that term
              means. The report also requires the DOR to identify the number of affordable housing units
              created or preserved. The bill does not define the term “affordable housing unit.”


17
     Florida Department of Revenue, SB 1310 analysis (2022). On file with Senate Commerce & Tourism Committee.
 BILL: SB 1310                                                                                                                        Page 8

VIII.   Statutes Affected:

        This bill creates section 220.197 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 1310          Florida Senate - 2022                                           SB 1310



       By Senator Rodriguez




       39-01155A-22                                              20221310__          39-01155A-22                                                 20221310__
 1                              A bill to be entitled                         30             WHEREAS, repurposing historic buildings saves resources and
 2          An act relating to the Florida Main Street Program and            31     activates vacant spaces, and
 3          historic preservation tax credits; creating s.                    32             WHEREAS, historic rehabilitation projects leverage
 4          220.197, F.S.; providing a short title; defining                  33     significant private investment, and
 5          terms; specifying eligibility requirements for                    34             WHEREAS, leveraging state tax incentives increases the
 6          receiving specified tax credits for taxpayers that                35     effectiveness of federal Historic Preservation Tax Incentives
 7          rehabilitate certified historic structures; specifying            36     and the Opportunity Zones Program to encourage the historic
 8          requirements for claiming or transferring specified               37     preservation of existing buildings, and
 9          tax credits; specifying the amount of tax credits;                38             WHEREAS, an increase in rehabilitation activity occurs when
10          authorizing the carryforward, sale, and transfer of               39     a state incentive is combined with federal Historic Preservation
11          tax credits; providing the Department of Revenue audit            40     Tax Incentives, and
12          and examination powers for specified purposes related             41             WHEREAS, many historic buildings in the state need safety
13          to certified rehabilitation expenses; requiring the               42     upgrades and other improvements that require both public and
14          return of forfeited tax credits under certain                     43     private investment to return these buildings as assets of their
15          circumstances; providing penalties; requiring the                 44     local communities, NOW, THEREFORE,
16          department to provide specified annual reports to the             45
17          Legislature; providing duties of the department;                  46     Be It Enacted by the Legislature of the State of Florida:
18          authorizing the department to adopt rules; providing              47
19          an effective date.                                                48             Section 1. Section 220.197, Florida Statutes, is created to
20                                                                            49     read:
21          WHEREAS, historic revitalization creates highly paid local        50             220.197 The Main Street Historic Tourism and Revitalization
22     construction jobs, and                                                 51     Act; tax credits; reports.—
23          WHEREAS, historic rehabilitation increases the value of           52             (1) SHORT TITLE.—This act may be cited as the “Main Street
24     buildings and results in a growing state and local tax base, and       53     Historic Tourism and Revitalization Act.”
25          WHEREAS, historic revitalization boosts heritage tourism          54             (2) DEFINITIONS.—As used in this section, the term:
26     and creates thriving downtowns that are attractive to main             55             (a) “Accredited Main Street Program” means an active
27     street businesses, and                                                 56     Florida Main Street Program or the Orlando Main Streets program,
28          WHEREAS, reusing historic buildings creates affordable            57     provided that such program meets the Main Street America
29     spaces for small business incubation, and                              58     accreditation standards. An Accredited Main Street Program must:

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59          1. Have broad-based community support for the commercial          88     the Treasury as being consistent with the historic character of
60     district revitalization process with strong support from the           89     the certified historic structure and, if applicable, consistent
61     public and private sectors.                                            90     with the registered historic district in which the certified
62          2. Have a developed vision and mission statement relevant         91     historic structure is located as set forth in 36 C.F.R. s. 67.2.
63     to community conditions and to Main Street America’s                   92          (d) “Division” means the Division of Historical Resources
64     organizational stage.                                                  93     of the Department of State.
65          3. Have a comprehensive Main Street America work plan.            94          (e) “Florida Main Street Program” means a statewide
66          4. Possess a historic preservation ethic.                         95     historic preservation-based downtown revitalization assistance
67          5. Have an active board of directors and committees.              96     program created, maintained, and administered by the division
68          6. Have an adequate operating budget.                             97     under s. 267.031(5).
69          7. Have a paid professional program manager.                      98          (f) “Local program area” means the specific geographic area
70          8. Conduct a program of ongoing training for staff and            99     in which an Accredited Main Street Program is conducted as
71     volunteers.                                                           100     approved and maintained by the division or in which the Orlando
72          9. Report key statistics.                                        101     Main Streets program is conducted.
73          10. Be a current member of Main Street America.                  102          (g) “Main Street America” means a national network of
74          (b) “Certified historic structure” means a building and its      103     grassroots organizations revitalizing historic downtown areas
75     structural components as defined in 36 C.F.R. s. 67.2 which is        104     under the leadership of the National Main Street Center, Inc., a
76     of a character subject to the allowance for depreciation              105     subsidiary of the National Trust for Historic Preservation.
77     provided in s. 167 of the Internal Revenue Code of 1986, as           106          (h) “National Register of Historic Places” means the list
78     amended, and which is:                                                107     of historic properties significant in American history,
79          1. Individually listed in the National Register of Historic      108     architecture, archeology, engineering, and culture maintained by
80     Places; or                                                            109     the United States Secretary of the Interior as authorized in 54
81          2. Located within a registered historic district and             110     U.S.C. s. 3021.
82     certified by the United States Secretary of the Interior as           111          (i) “Orlando Main Streets” means a historic preservation-
83     being of historic significance to the registered historic             112     based district revitalization program administered by the City
84     district as set forth in 36 C.F.R. s. 67.2.                           113     of Orlando.
85          (c) “Certified rehabilitation” means the rehabilitation of       114          (j) “Qualified expenses” means qualified rehabilitation
86     a certified historic structure that the United States Secretary       115     expenditures as defined in 26 U.S.C. s. 47(c)(2) and structural
87     of the Interior has certified to the United States Secretary of       116     components as defined in 26 C.F.R. s. 1.48-1(e)(2) at the time

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117     of project certification by the United States Secretary of the         146     transferring a tax credit under this section, the taxpayer must
118     Interior and the United States Internal Revenue Service.               147     provide the department with the following information:
119          (k) “Registered historic district” means a district listed        148          (a) An official certificate of eligibility from the
120     in the National Register of Historic Places or a district:             149     division signed by the State Historic Preservation Officer or
121          1. Designated under general law or local ordinance and            150     the Deputy State Historic Preservation Officer attesting that
122     certified by the United States Secretary of the Interior as            151     the project has been approved by the National Park Service and
123     containing criteria that will substantially achieve the purposes       152     confirming whether the project is or is not located within a
124     of preserving and rehabilitating buildings of historic                 153     Main Street local program area.
125     significance to the district; and                                      154          (b) National Park Service Form 10-168c (Rev. 2019), titled
126          2. Certified by the United States Secretary of the Interior       155     “Historic Preservation Certification Application–Part 3-Request
127     as meeting substantially all of the requirements for listing a         156     for Certification of Completed Work,” signed by the National
128     district in the National Register of Historic Places.                  157     Park Service attesting that the completed rehabilitation meets
129          (3) ELIGIBILITY FOR TAX CREDIT.—To claim and receive a tax        158     the United States Secretary of the Interior’s Standards for
130     credit under this section, a taxpayer must first apply to the          159     Rehabilitation and is consistent with the historic character of
131     department for a tax credit for qualified expenses in the amount       160     the property and, if applicable, the district in which the
132     and under the conditions and limitations provided in this              161     completed rehabilitation is located. The form may be obtained
133     section against the tax due for a taxable year under this              162     through the National Park Service.
134     chapter and must document that:                                        163          (c) An identification of the dates during which the
135          (a) The rehabilitation is a certified rehabilitation.             164     certified historic structure was rehabilitated, the date the
136          (b) The structure is a certified historic structure, is           165     certified historic structure was first placed into service after
137     income-producing, is located within the state, and was                 166     the certified rehabilitation was completed, and evidence that
138     rehabilitated and placed into service on or after July 1, 2022.        167     the certified historic structure was placed into service after
139          (c) The taxpayer had an ownership interest in the certified       168     the certified rehabilitation was completed.
140     historic structure in the year during which the certified              169          (d) A list of total qualified expenses incurred by the
141     historic structure was placed into service after the certified         170     taxpayer in rehabilitating the certified historic structure. For
142     rehabilitation was completed.                                          171     certified rehabilitations with qualified expenses that exceeded
143          (d) The total amount of qualified expenses incurred in            172     $750,000, the taxpayer must submit an audited cost report issued
144     rehabilitating the certified historic structure exceeded $5,000.       173     by a certified public accountant that itemizes the qualified
145          (4) TAX CREDIT FILING REQUIREMENTS.—Before claiming or            174     expenses incurred in rehabilitating the certified historic

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175     structure as provided in s. 215.97.                                    204     for a period of up to 10 years.
176          (e) An attestation of the total qualified expenses incurred       205          (b) A carryforward is considered the remaining portion of a
177     by the taxpayer in rehabilitating the certified historic               206     tax credit that cannot be claimed in the current tax year.
178     structure.                                                             207          (7) SALE OR TRANSFER OF TAX CREDIT.—
179          (f) A completed Form F-1120, titled “Florida Corporate            208          (a) A taxpayer that incurs qualified expenses may sell or
180     Income/Franchise Tax Return,” or other appropriate tax form            209     transfer all or part of the tax credit that may otherwise be
181     issued by the department for insurance premium tax reporting.          210     claimed to another taxpayer.
182          (g) The information required to be reported by the                211          (b) A taxpayer to which all or part of the tax credit is
183     department in subsection (9) to enable the department to compile       212     sold or transferred may sell or transfer all or part of the tax
184     its annual report.                                                     213     credit that may otherwise be claimed to another taxpayer.
185          (5) AMOUNT OF TAX CREDIT.—The total tax credit claimed            214          (c) A taxpayer that sells or transfers a tax credit to
186     annually may not exceed the amount of tax due after any other          215     another taxpayer must provide a copy of the certificate of
187     applicable tax credits and may not exceed the following:               216     eligibility together with the audited cost report to the
188          (a) Twenty percent of the total qualified expenses incurred       217     purchaser or transferee.
189     in rehabilitating a certified historic structure that has been         218          (d) Qualified expenses may only be counted once in
190     approved by the National Park Service to receive the federal           219     determining the amount of an available tax credit, and more than
191     historic rehabilitation tax credit; or                                 220     one taxpayer may not claim a tax credit for the same qualified
192          (b) Thirty percent of the total qualified expenses incurred       221     expenses.
193     in rehabilitating a certified historic structure that has been         222          (e) There is no limit on the total number of transactions
194     approved by the National Park Service to receive the federal           223     for the sale or transfer of all or part of a tax credit.
195     historic rehabilitation tax credit and that is located within a        224          (f)1. A taxpayer that sells or transfers a tax credit under
196     local program area of an Accredited Main Street Program.               225     this subsection and the purchaser or transferee shall jointly
197                                                                            226     submit written notice of the sale or transfer to the department
198     The tax credit may be used to offset the corporate income tax          227     on a form adopted by the department no later than the 30th day
199     imposed in s. 220.11 and the insurance premium tax imposed in s.       228     after the date of the sale or transfer. The notice must include
200     624.509.                                                               229     all of the following:
201          (6) CARRYFORWARD OF TAX CREDIT.—                                  230          a. The date of the sale or transfer.
202          (a) If a taxpayer is eligible for a tax credit that exceeds       231          b. The amount of the tax credit sold or transferred.
203     taxes owed, the taxpayer may carry the unused tax credit forward       232          c. The name and federal tax identification number of the

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233     taxpayer that sold or transferred the tax credit and the               262     credit succession.
234     purchaser or transferee.                                               263             (8) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
235          d. The amount of the tax credit owed by the taxpayer before       264     CREDITS; FRAUDULENT CLAIMS.—
236     the sale or transfer and the amount the selling or transferring        265             (a) The department may perform any additional financial and
237     taxpayer retained, if any, after the sale or transfer.                 266     technical audits and examinations, including examining the
238          2. The sale or transfer of a tax credit under this                267     accounts, books, or records of the tax credit applicant, to
239     subsection does not extend the period for which a tax credit may       268     verify the legitimacy of the qualified expenses included in a
240     be carried forward and does not increase the total amount of the       269     tax credit return and to ensure compliance with this section.
241     tax credit that may be claimed.                                        270             (b) It is grounds for forfeiture of previously claimed and
242          3. If a taxpayer claims a tax credit for qualified                271     received tax credits if the department determines, as a result
243     expenses, another taxpayer may not use the same expenses as the        272     of an audit or information received from the division or the
244     basis for claiming a tax credit.                                       273     United States Department of the Interior, that a taxpayer
245          4. Notwithstanding the requirements of this subsection, a         274     received a tax credit pursuant to this section to which the
246     tax credit earned by, purchased by, or transferred to a                275     taxpayer was not entitled. In the case of fraud, the taxpayer
247     partnership, limited liability company, S corporation, or other        276     may not claim any future tax credits under this section.
248     pass-through taxpayer may be allocated to the partners, members,       277             (c) The taxpayer must return forfeited tax credits to the
249     or shareholders of that taxpayer and claimed under this section        278     department and such funds shall be paid into the General Revenue
250     in accordance with any agreement among the partners, members, or       279     Fund.
251     shareholders and without regard to the ownership interest of the       280             (d) The taxpayer shall file with the department an amended
252     partners, members, or shareholders in the rehabilitated                281     tax return or such other report as the department prescribes and
253     certified historic structure.                                          282     shall pay any required tax within 60 days after the taxpayer
254          (g) If the tax credit is reduced due to a determination,          283     receives notification from the United States Internal Revenue
255     examination, or audit by the department, the tax deficiency            284     Service that a previously approved tax credit has been revoked
256     shall be recovered from the taxpayer that sold or transferred          285     or modified, if uncontested, or within 60 days after a final
257     the tax credit or the purchaser or transferee that claimed the         286     order is issued following proceedings involving a contested
258     tax credit up to the amount of the tax credit taken.                   287     revocation or modification order.
259          (h) Any subsequent deficiencies shall be assessed against         288             (e) A notice of deficiency may be issued by the department
260     the purchaser or transferee that claimed the tax credit or, in         289     at any time within 5 years after the date on which the taxpayer
261     the case of multiple succeeding entities, in the order of tax          290     receives notification from the United States Internal Revenue

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291     Service that a previously approved tax credit has been revoked         320     required to administer this section, including rules
292     or modified.                                                           321     establishing an entitlement to and sale or transfer of a tax
293          (f) If a taxpayer fails to notify the department of any           322     credit under this section.
294     change in its tax credit claimed, a notice of deficiency may be        323          (c) Provide examination and audit procedures required to
295     issued at any time. In either case, the amount of any proposed         324     administer this section.
296     assessment set forth in such notice of deficiency is limited to        325          (11) RULES.—The department may adopt rules to administer
297     the amount of any deficiency resulting under this section from         326     this section.
298     the precomputation of the taxpayer’s tax for the taxable year.         327          Section 2. This act shall take effect July 1, 2022.
299          (g) A taxpayer that fails to report and timely pay any tax
300     due as a result of the forfeiture of its tax credit violates
301     this section and is subject to applicable penalties and
302     interest.
303          (9) ANNUAL REPORTS.—Each year, based on the applications
304     submitted and approved, the department must issue a report to
305     the President of the Senate and the Speaker of the House of
306     Representatives that identifies, in the aggregate, all of the
307     following:
308          (a) The number of employees hired during construction
309     phases.
310          (b) The use of each newly rehabilitated building and the
311     expected number of employees hired.
312          (c) The number of affordable housing units created or
313     preserved.
314          (d) The property values before and after the certified
315     rehabilitations.
316          (10) DEPARTMENT DUTIES.—The department shall:
317          (a) Establish any necessary forms required to claim a tax
318     credit under this section.
319          (b) Provide administrative guidelines and procedures

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                                        The Florida Senate

                          Committee Agenda Request




To:           Senator Ed Hooper, Chair
              Committee on Commerce and Tourism

Subject:      Committee Agenda Request

Date:         January 12, 2022


I respectfully request that Senate Bill #1076, relating to Florida Kratom Consumer Protection
Act, be placed on the:

              committee agenda at your earliest possible convenience.

              next committee agenda.

Please let me know if you have any questions.



Sincerely,




Joe Gruters

Cc: Todd McKay, Staff Director
Kathryn Vigrass, Committee Administrative Assistant




File signed original with committee office                                          S-020 (03/2004)
                                                      The Florida Senate
                  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 1076
INTRODUCER:     Senator Gruters
SUBJECT:        Florida Kratom Consumer Protection Act
DATE:           January 14, 2022                REVISED:


           ANALYST                    STAFF DIRECTOR                 REFERENCE                                 ACTION
1. McMillan                         McKay                                CM               Favorable
2.                                                                       AEG
3.                                                                        AP



  I.    Summary:

        SB 1076 creates the Florida Kratom Consumer Protection Act, which provides that a processor
        may not sell, prepare, distribute, or expose for sale a kratom product that:
         Is adulterated with a dangerous non-kratom substance that affects the quality or strength of
           the kratom product to such a degree that it may injure a consumer;
         Contains a poisonous or otherwise harmful non-kratom ingredient;
         Contains a level of 7-hydroxymitragynine in the alkaloid fraction which is greater than 2
           percent of the alkaloid composition of the product;
         Contains a synthetic alkaloid;
         Does not include directions for the safe and effective use of the product; or
         Has a label that contains any claim that the product is intended to diagnose, treat, cure, or
           prevent any medical condition or disease.

        The bill establishes that a processor may not sell, prepare, distribute, or expose for sale kratom
        extract that contains levels of residual solvents higher than the standards set forth in United
        States Pharmacopeia and the National Formulary (USP-NF) chapter 467. Additionally, a
        processor may not distribute, sell, or expose for sale a kratom product to an individual under 21
        years of age.

        The bill provides that a processor who violates s. 501.9745(3), F.S., is subject to an
        administrative fine. However, a processor selling kratom products at retail does not violate s.
        501.9745(3), F.S., if it is shown by a preponderance of the evidence that the processor relied in
        good faith upon the representations of a manufacturer, processor, packer, or distributor of the
        kratom product.

        The bill takes effect July 1, 2022.
BILL: SB 1076                                                                                                   Page 2

    II.   Present Situation:

          Kratom

          Kratom is a tropical tree native to Southeast Asia that contains mitragynine and 7-
          hydroxymytragynine in its leaves, which are two major psychoactive ingredients.1 The leaves are
          crushed and then smoked, brewed with tea, or placed into gel capsules.2 Consumption of kratom
          leaves can produce stimulant and sedative effects, and may also lead to psychotic symptoms.3

          Some research finds that kratom can be used as a substitute for opiate users to combat
          withdrawal symptoms, as well as to treat muscle ache, fatigue, and other conditions.4 Low doses
          of kratom are said to produce a stimulant effect, while higher doses may produce an opioid-like
          effect.5 Additionally, research points to the potential for further development of mitragynine and
          the use of kratom as a harm reduction agent.6 Even so, the toxicity of kratom remains a topic of
          discussion, as well as its potential to cause herb-drug interactions and even be involved in
          fatalities.7

          Currently, kratom is not listed as a controlled substance under federal law or Florida law.
          However, in 2014, Sarasota County banned kratom, labeling it as a designer drug.8 With the
          exception of Sarasota County, in Florida, all parts of the plant and its extracts are legal to
          cultivate, buy, possess, and distribute without a license or prescription. Kratom is illegal in
          Alabama,9 Arkansas,10 Indiana,11 Vermont,12 and Wisconsin.13 Other states such as Arizona,14
          Georgia,15 and Utah16 regulate kratom under their state’s version of the Kratom Consumer
          Protection Act.

          Following an updated import alert that provides information to U.S. Food and Drug
          Administration (FDA) field staff about detaining without physical examination imported dietary
          supplements and bulk dietary ingredients that are or contain kratom, in May of 2021, the FDA

1
  Drug Enforcement Administration, Kratom (April 2020), available at https://www.dea.gov/sites/default/files/2020-
06/Kratom-2020_0.pdf (last visited Jan. 14, 2022).
2
  Id.
3
  Id.
4
  See Dimy Fluyau and Neelambika Revedigar, Biochemical Benefits, Diagnosis, and Clinical Risks Evaluation of Kratom,
Frontiers in Psychiatry Journal Volume 8 (April 24, 2017).
5
  Id.
6
  See Charles Veltri and Oliver Grundmann, Current Perspectives on the Impact of Kratom Use. Substance Abuse and
Rehabilitation Journal Volume 10 23-31 (July 1, 2019).
7
  Id.
8
  See Sarasota, FL., Code of Ordinances, Sec. 62-351 (2014).
9
  See Alabama Public Health, Controlled Substance List (Jan. 20, 2021), available at
https://www.alabamapublichealth.gov/blog/assets/controlledsubstanceslist.pdf (last visited Jan. 14, 2022).
10
   See Arkansas Department of Health, List of Controlled Substances, available at
http://secureservercdn.net/166.62.109.105/e17.085.myftpupload.com/wp-content/uploads/2016/02/arkansas-
controlled_substances_list.pdf (last visited Jan. 14, 2022).
11
   See IC 35-31.5-2-321.
12
   See Vt. Admin. Code 12-5-23:4.0.
13
   See W.S.A. 961.14.
14
   See AZ Rev Stat § 36-795.02.
15
   See GA Code § 16-13-121.
16
   See UT Code § 4-45-101.
BILL: SB 1076                                                                                                       Page 3

        announced the seizure of around 37,500 tons of adulterated kratom in Florida, worth an
        estimated $1.3 million.17 The FDA’s Associate Commissioner for Regulatory Affairs, stated that
        there is substantial concern regarding the safety of kratom and the risk it may pose to public
        health, and indicated that there are currently no FDA-approved uses for kratom.18

        The U.S. Department of Justice, on behalf of the FDA, filed a complaint in the U.S. District
        Court for the Middle District of Florida alleging that kratom is a new dietary ingredient for
        which there is inadequate information to provide reasonable assurance that it does not present a
        significant or unreasonable risk of illness or injury.19 Additionally, the FDA stated that dietary
        supplements and bulk dietary ingredients that are or contain kratom are adulterated under the
        Federal Food, Drug, and Cosmetic Act.20 On October 26, 2021, a consent decree of
        condemnation and destruction against the articles seized by the FDA in May of 2021 was
        entered, which requires the claimants to pay a penal bond and destroy all seized articles.21

III.    Effect of Proposed Changes:

        The bill creates the Florida Kratom Consumer Protection Act, and establishes the following
        definitions:
         “Kratom extract” means a food product or dietary ingredient that contains any part of the leaf
            of the plant Mitragyna speciose which has been extracted and concentrated to provide more
            standardized dosing;
         “Kratom product” means a food product, food ingredient, dietary ingredient, dietary
            supplement, or beverage intended for human consumption which contains any part of the leaf
            of the plant Mitragyna speciose or an extract of such plant and is manufactured as a powder,
            capsule, pill, beverage, or other edible form; and
         “Processor” means a person who sells, prepares, manufactures, distributes, or maintains
            kratom products.

        The bill provides that a processor may not sell, prepare, distribute, or expose for sale a kratom
        product that:
         Is adulterated with a dangerous non-kratom substance that affects the quality or strength of
           the kratom product to such a degree that it may injure a consumer;
         Contains a poisonous or otherwise harmful non-kratom ingredient, including, but not limited
           to, any substance listed in s. 893.03, F.S.;22
         Contains a level of 7-hydroxymitragynine in the alkaloid fraction which is greater than 2
           percent of the alkaloid composition of the product;




17
   U.S. Food and Drug Administration, FDA Announces Seizure of Adulterated Dietary Supplements Containing Kratom
(May 21, 2021), available at https://www.fda.gov/news-events/press-announcements/fda-announces-seizure-adulterated-
dietary-supplements-containing-kratom (last visited Jan. 14, 2022).
18
   Id.
19
   Id.
20
   Id.
21
   Id.
22
   Chapter 893, F.S., sets forth the Florida Comprehensive Drug Abuse Prevention and Control Act and classifies controlled
substances into five categories, known as schedules.
BILL: SB 1076                                                                                                          Page 4

             Contains a synthetic alkaloid, including, but not limited to, synthetic mitragynine, synthetic
              7-hydroxymitragynine, or any other synthetically derived compound of the plant Mitragyna
              speciose;
             Does not include directions for the safe and effective use of the product, including, but not
              limited to, a suggested serving size, on the product’s packaging or label; or
             Has a label that contains any claim that the product is intended to diagnose, treat, cure, or
              prevent any medical condition or disease.

         The bill establishes that a processor may not sell, prepare, distribute, or expose for sale kratom
         extract that contains levels of residual solvents higher than the standards set forth in USP-NF23
         chapter 467.24 Additionally, a processor may not distribute, sell, or expose for sale a kratom
         product to an individual under 21 years of age.

         The bill provides that a processor who violates s. 501.9745(3), F.S., is subject to an
         administrative fine of not more than $500 for the first offense and not more than $1000 for the
         second or subsequent offense. However, a processor selling kratom products at retail does not
         violate s. 501.9745(3), F.S., if it is shown by a preponderance of the evidence that the processor
         relied in good faith upon the representations of a manufacturer, processor, packer, or distributor
         of the kratom product.

         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.


23
   The United States Pharmacopeia (USP) and the National Formulary (NF) contains standards for medicines, dosage forms,
drug substances, excipients, biologics, compounded preparations, medical devices, dietary supplements, and other
therapeutics. The current version of USP-NF standards deemed official by USP are enforceable by the U.S. Food and Drug
Administration for medicines manufactured and marketed in the United States.
24
   Residual solvents in pharmaceuticals are defined as organic volatile chemicals that are used or produced in the manufacture
of drug substances or excipients, or in the preparation of drug products. The residual solvents are not completely removed by
practical manufacturing techniques. Drug products should contain no higher levels of residual solvents than can be supported
by safety data. Solvents that are known to cause unacceptable toxicities, “Class 1,” should be avoided in the production of
drug substances, excipients, or drug products unless their use can be strongly justified in a risk-benefit assessment. Solvents
associated with less severe toxicity, “Class 2,” should be limited in order to protect patients from potential adverse effects.
Less toxic solvents, “Class 3,” should be used where practical. See The United States Pharmacopeia and the National
Formulary, Residual Solvents, available at
https://www.uspnf.com/sites/default/files/usp_pdf/EN/USPNF/generalChapter467Current.pdf (last visited Jan. 14, 2022).
 BILL: SB 1076                                                                                                   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:

                 Processors of kratom products will be required to adhere to the regulations set forth in the
                 Florida Kratom Consumer Protection Act, which may benefit consumers.

        C.       Government Sector Impact:

                 None.

 VI.    Technical Deficiencies:

        None.

VII.    Related Issues:

        The bill does not designate an entity to enforce violations, and does not provide an administrative
        penalty for a processor who violates s. 501.9745(4), F.S.

        The Florida Department of Law Enforcement has indicated that they do not have the testing
        capabilities to prove non-compliance with this proposed law.

VIII.   Statutes Affected:

        This bill creates the following sections of the Florida Statutes: 501.9745

 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.
BILL: SB 1076                                                                                                                        Page 6

        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 1076          Florida Senate - 2022                                          SB 1076



       By Senator Gruters




       23-01139-22                                              20221076__           23-01139-22                                              20221076__
1                              A bill to be entitled                          30     edible form.
2           An act relating to the Florida Kratom Consumer                    31            (c) “Processor” means a person who sells, prepares,
3           Protection Act; creating s. 501.9745, F.S.; providing             32     manufactures, distributes, or maintains kratom products.
4           a short title; defining the terms “kratom extract,”               33            (3) A processor may not sell, prepare, distribute, or
5           “kratom product,” and “processor”; prohibiting                    34     expose for sale:
6           processors from selling, preparing, distributing, or              35            (a) A kratom product that:
7           exposing for sale certain kratom products; prohibiting            36            1. Is adulterated with a dangerous non-kratom substance
8           processors from distributing, selling, or exposing for            37     that affects the quality or strength of the kratom product to
9           sale a kratom product to an individual under 21 years             38     such a degree that it may injure a consumer.
10          of age; providing civil penalties; providing an                   39            2. Contains a poisonous or otherwise harmful non-kratom
11          exception; providing an effective date.                           40     ingredient, including, but not limited to, any substance listed
12                                                                            41     in s. 893.03.
13     Be It Enacted by the Legislature of the State of Florida:              42            3. Contains a level of 7-hydroxymitragynine in the alkaloid
14                                                                            43     fraction which is greater than 2 percent of the alkaloid
15          Section 1. Section 501.9745, Florida Statutes, is created         44     composition of the product.
16     to read:                                                               45            4. Contains a synthetic alkaloid, including, but not
17          501.9745 Florida Kratom Consumer Protection Act.—                 46     limited to, synthetic mitragynine, synthetic 7-
18          (1) This section may be cited as the “Florida Kratom              47     hydroxymitragynine, or any other synthetically derived compound
19     Consumer Protection Act.”                                              48     of the plant Mitragyna speciosa.
20          (2) As used in this section, the term:                            49            5. Does not include directions for the safe and effective
21          (a) “Kratom extract” means a food product or dietary              50     use of the product, including, but not limited to, a suggested
22     ingredient that contains any part of the leaf of the plant             51     serving size, on the product’s packaging or label.
23     Mitragyna speciosa which has been extracted and concentrated to        52            6. Has a label that contains any claim that the product is
24     provide more standardized dosing.                                      53     intended to diagnose, treat, cure, or prevent any medical
25          (b) “Kratom product” means a food product, food ingredient,       54     condition or disease.
26     dietary ingredient, dietary supplement, or beverage intended for       55            (b) Kratom extract that contains levels of residual
27     human consumption which contains any part of the leaf of the           56     solvents higher than the standards set forth in USP-NF chapter
28     plant Mitragyna speciosa or an extract of such plant and is            57     467.
29     manufactured as a powder, capsule, pill, beverage, or other            58            (4) A processor may not distribute, sell, or expose for

                                   Page 1 of 3                                                                     Page 2 of 3
     CODING: Words stricken are deletions; words underlined are additions.         CODING: Words stricken are deletions; words underlined are additions.
       Florida Senate - 2022                                        SB 1076




       23-01139-22                                            20221076__
59     sale a kratom product to an individual under 21 years of age.
60          (5) A processor who violates subsection (3) is subject to
61     an administrative fine of not more than $500 for the first
62     offense and not more than $1,000 for the second or subsequent
63     offense. A processor selling kratom products at retail does not
64     violate subsection (3) if it is shown by a preponderance of the
65     evidence that the processor relied in good faith upon the
66     representations of a manufacturer, processor, packer, or
67     distributor of the kratom product.
68          Section 2. This act shall take effect July 1, 2022.




                                  Page 3 of 3
     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 1298
INTRODUCER:     Senator Gruters
SUBJECT:        Agreements with Professional Sports Teams
DATE:           January 14, 2022                REVISED:


           ANALYST                    STAFF DIRECTOR                 REFERENCE                                 ACTION
1. Renner                           McKay                                 CM              Favorable
2.                                                                        CA
3.                                                                        RC



  I.    Summary:

        SB 1298 prohibits a governmental entity from entering into an agreement with a professional
        sports team that requires a financial commitment by the state or a governmental entity unless the
        agreement includes a written verification that the professional sports team will play the U.S.
        national anthem at the beginning of each team sporting event.

        Failure to comply with the written verification constitutes a default and subjects the team to any
        penalty the agreement authorizes for default, which may include the team repaying money paid
        to the team by the state or governmental entity.

        The agreement must be strictly enforced. Should a governmental entity fail to timely enforce the
        written verification, the Attorney General is authorized to intervene.

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

        The bill takes effect on July 1, 2022.

 II.    Present Situation:

        Professional Sports Franchise Program

        Florida is home to many professional and semi-professional sports teams, organizations and
        facilities, including professional football, basketball, baseball, hockey, soccer, and National
        Association of Stock Car Racing (NASCAR) sanctioned tracks. The Professional Sports
        Franchise program allows professional sports franchises to receive state sales and use tax
        revenue to pay for the acquisition, construction, reconstruction, or renovation of a facility for a
BILL: SB 1298                                                                                                      Page 2

        new or retained professional sports franchise.1 Local governments, non-profit, and for-profit
        entities may apply to the program.

        The Department of Economic Opportunity (DEO) is responsible for screening and certifying
        applicants for state funding.2 For both new and retained franchises, the DEO must confirm and
        verify the following:3
         A local government is responsible for the construction, management, or operation of the
            professional sports franchise facility, or holds title to the property where the facility is
            located.
         The applicant has a verified copy of a signed agreement with a new professional sports
            franchise for at least 10 years, or for 20 years in the case of a retained franchise.
         The applicant has a verified copy of the approval by the governing body of the NFL, MLB,
            NHL, or NBA authorizing the location of a new franchise in the state after April 1, 1987, for
            new professional sports franchises, or verified evidence of a league-authorization location in
            the state on or before December 31, 1976, for a retained professional sports franchise.
         The applicant has projections demonstrating a paid annual attendance of over 300,000.
         The applicant has an independent analysis demonstrating that the annual amount of sales
            taxes generated by the use or operation of the franchise’s facility will be at least $2 million.
         The local government where the franchise’s facility is located, or the county of the facility is
            in an unincorporated area, has certified by resolution after a public hearing that the
            application serves a public purpose.
         The applicant has demonstrated that it has provided, is capable of providing, financial or
            other commitments of more than one-half of the costs incurred or related to the
            improvements or development of the franchise’s facility.

        Approved applicants are eligible to receive up to $2,000,004 per year for a period of up to 30
        years.4 No more than eight facilities can be certified under this program at one time.5

        Currently, eight facilities receive distributions under the Professional Sports Franchise Program.
        Each facility is on track to receive $60 million, which is the maximum distribution allowable
        under this program ($166,667 per month or $2,000,004 per year, over 30 years) as follows:6

          Facility name         Location,         Franchise                   First and Final        Total payments
                                Certified entity,                             payments               as of Aug. 2020
                                & certification
                                date
          BB&T Center           Sunrise, Broward Florida Panthers             Aug. 1996              $47,833,429
                                County, June                                  July 2026
                                1996

1
  Section 288.1162, F.S.
2
  Section 288.1162(1), F.S.
3
  Section 288.1162(4)(a)-(g), F.S.
4
  Section 212.20(6)(d)6.b., F.S.
5
  Section 288.1162(6), F.S.
6
  Office of Program Policy Analysis and Government Accountability, Report 20-08, Florida Economic Development
Program Evaluations-Year 8, p. 48 (Dec. 2020), available at https://oppaga.fl.gov/Documents/Reports/20-08.pdf (last visited
Jan. 14, 2022).
BILL: SB 1298                                                                                        Page 3

          TIAA Bank                Jacksonville,      Jacksonville     June 1994          $52,166,771
          Field                    City of            Jaguars          May 2024
                                   Jacksonville,
                                   April 1994
          Hard Rock                Miami, South       Miami Dolphins   June 1994          $54,000,108
          Stadium                  Florida Stadium                     June 2023
                                   Corp., May 1993
          American                 Miami,             Miami Heat       March 1998         $44,500,089
          Airlines Arena           Basketball                          March 2028
                                   Properties, LTD,
                                   Feb. 1998
          Amway Center             Orlando, City of   Orlando Magic    Feb. 2008          $24,833,383
                                   Orlando, Nov.                       Jan. 2038
                                   2007
          Raymond James            Tampa,             Tampa Bay        Jan. 1997          $47,000,094
          Stadium                  Hillsborough       Buccaneers       Dec. 2026
                                   County, Nov.
                                   1996
          AMALIE Arena             Tampa, Tampa       Tampa Bay        Sept. 1995         $49,666,766
                                   Bay Sports         Lightning        Aug. 2025
                                   Authority, July
                                   1995
          Tropicana Field          St. Petersburg,    Tampa Bay Rays July 1995            $50,000,100
                                   City of St.                       June 2025
                                   Petersburg, July
                                   1995
                                                                                   Total: $370,000,740

         State Incentives for Spring Training Facilities

         Spring Training Baseball Franchises
         The DEO may certify local governments to receive a distribution of $41,667 per month
         ($500,000 per year) for a period of up to 30 years.7 The funds may be used to acquire, construct,
         reconstruct, or renovate a facility for a baseball spring training franchise, pay debt service on
         bonds issued for those purposes, or, in some instances, assist a spring training franchise in
         moving from one local government to another.8 The DEO is authorized to certify up to 10
         facilities at any given time.9

         Retention of Spring Training Baseball Franchises
         Local governments that partner with a spring training baseball franchise may apply for
         certification from the DEO to receive state distributions for renovating or constructing a spring


7
  Section 212.20(6)(d)6.b., F.S.
8
  Section 288.11621(3), F.S.
9
  Section 288.11621(2)(b), F.S.
BILL: SB 1298                                                                                                        Page 4

        training baseball facility.10 Certified applicants receive a distribution from state sales tax revenue
        of up to $83,333 per month for 20 years for a facility used by a single spring training baseball
        franchise or up to $166,667 per month for 25 years for a facility used by more than one spring
        baseball training franchise.11 The amount of state incentive funding per certified applicant may
        not exceed $20 million if the applicant’s facility is used by one franchise or $50 million if the
        applicant’s facility is used by more than one franchise.12

        Sales and Use Tax

        Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
        property,13 admissions,14 transient rentals,15 and a limited number of services. Chapter 212, F.S.,
        contains provisions authorizing the levy and collection of Florida’s sales and use tax, as well as
        the exemptions and credits applicable to certain items or uses under specified circumstances.

        Additionally, s. 212.20(6)(d)6, F.S., requires the Department of Revenue (DOR) to distribute
        specified amounts on a monthly basis to applicants certified as a sports training facility,
        applicants certified as the professional golf hall of fame, and applicants certified as a spring
        training facility.

        Local Government Half-cent Sales Tax

        The Local Government Half-cent Sales Tax program distributes a portion of state sales tax
        revenue via three separate distributions to eligible county or municipal governments. Allocation
        formulas serve as the basis for these separate distributions.16 The program’s primary purpose is
        to provide relief from ad valorem and utility taxes in addition to providing counties and
        municipalities with revenues for local programs.17

        Counties may use up to $3 million annually of the local government half-cent sales tax for the
        following purposes:18
         New or retained professional sports franchises under the Professional Sports Franchise
            Program, or a spring training franchise under s. 288.11621, F.S.; or
         A certified applicant as a motorsport entertainment complex under s. 288.1171, F.S.19




10
   Section 288.11631(1)-(2), F.S.
11
   Section 212.20(6)(d)6.e., F.S.
12
   Section 288.11631(2)(c), F.S.
13
   Section 212.05(1)(a)1.a, F.S.
14
   Section 212.04(b), F.S.
15
   Section 212.03(1)(a), F.S.
16
   Office of Economic and Demographic Research, 2021 Local Government Financial Information Handbook, p. 55,
available at http://edr.state.fl.us/Content/local-government/reports/lgfih21.pdf (last visited Jan. 6, 2022).
17
   Id.
18
   Section 218.64(3), F.S.
19
   The motorsports entertainment complex has had no applicants or funds dispersed since program inception. See Office of
Program Policy Analysis and Government Accountability, Report 20-08, Florida Economic Development Program
Evaluations-Year 8, p. 35 (Dec. 2020), available at https://oppaga.fl.gov/Documents/Reports/20-08.pdf (last visited Jan. 14,
2022).
BILL: SB 1298                                                                                                          Page 5

III.     Effect of Proposed Changes:

         The bill provides that beginning July 1, 2022, a governmental entity is prohibited from entering
         into an agreement with a professional sports team that requires a financial commitment by the
         state or a governmental entity unless the agreement includes:
          A written verification that the professional sports team will play the United States national
             anthem at the beginning of each team sporting event20 held at the team’s home venue or other
             facility controlled by the team for the event; and
          A provision providing that a failure to comply with the written verification:
                      o Constitutes a default of the agreement.
                      o Immediately subjects the team to any penalty the agreement authorizes for
                         default, which may include repaying any money paid to the team by the state or
                         any governmental entity or classifying the team as ineligible to receive further
                         money under the agreement.
                      o May subject the team to a prohibition on contracting with the state.

         A governmental entity that enters into an agreement with a professional sports team must strictly
         enforce the “failure to comply” provision. The Attorney General may intervene to enforce the
         provision should the governmental entity fail to timely enforce the provision.

         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.

         D.       State Tax or Fee Increases:

                  None.

         E.       Other Constitutional Issues:

                  The First Amendment of the U.S. Constitution guarantees that “Congress shall make no
                  law…abridging the freedom of speech, or of the press; or the right of the people
                  peaceably to assemble, and to petition the Government for a redress of grievances.”21 The

20
   The bill defines a “sporting event” as any preseason, regular season, or postseason game or event of a professional sports
team.
21
   Amend I, U.S. Const.
BILL: SB 1298                                                                                                     Page 6

                 rights guaranteed by the First Amendment apply with equal force to state governments
                 through the due process clause of the Fourteenth Amendment.22

                 The right of freedom of thought protected by the First Amendment against state action
                 includes both the right to speak freely and the right to refrain from speaking at all.23
                 Speech that is mandated or compelled alters the content of speech.24 A government
                 regulation based on the content of speech is presumptively invalid and will be upheld
                 only if it is necessary to advance a compelling governmental interest, precisely tailored to
                 serve that interest, and is the least restrictive means available for establishing that
                 interest.25 The government bears the burden of demonstrating the constitutionality of any
                 such content-based regulation.26

                 The U.S. Supreme Court rejected a private college’s argument that conditioning federal
                 funds on compliance with federal education law violated the First Amendment, finding
                 that “Congress is free to attach reasonable and unambiguous conditions to federal
                 financial assistance that educational institutions are not obligated to accept.”27 However,
                 under the unconstitutional conditions doctrine, there is a limit on Congress’ ability to
                 place conditions on the receipt of funds.28 “[T]he government ‘may not deny a benefit to
                 a person on a basis that infringes his constitutionally protected ... freedom of speech’
                 even if he has no entitlement to that benefit.”29

                 SB 1298 prohibits a governmental entity from entering into an agreement with a
                 professional sports team that requires a financial commitment by the state or a
                 governmental entity unless the agreement includes a written verification that the
                 professional sports team will play the U.S. national anthem at the beginning of each team
                 sporting event.

V.      Fiscal Impact Statement:

        A.       Tax/Fee Issues:

                 If a professional sports team receiving funding from the state or a governmental entity
                 does not play the national anthem per an agreement with a governmental entity, then that
                 professional sports team could not only see a loss in distributions, but may have to repay
                 any money paid to the team by the state or a governmental entity.




22
   Amend XIV, U.S. Const., See also Art. I, Fla. Const.
23
   Wooley v. Maynard, 430 U.S. 705, 714 (1977). See also West Virginia State Board of Education v. Barnette, 319 U.S. 624
(1943).
24
   Riley v. National Federation of the Blind of North Carolina, Inc., 487 U.S. 781, 795 (1988). See also Miami Herald
Publishing Co. v. Tornillo, 418 U.S. 241, 256-58 (1974).
25
   Ashcroft v. Am. Civil Liberties Union, 521 U.S. 656-66 (2004).
26
   Id. at 660.
27
   Grove City College v. Bell, 465 U.S. 555, 575 (1984).
28
   Rumsfeld v. Forum for Academic and Institutional Rights, Inc., 547 U.S. 47 (2006)
29
   Board of Comm'rs, Wabaunsee Cty. v. Umbehr, 518 U. S. 668, 674 (1996).
 BILL: SB 1298                                                                                                                        Page 7

        B.       Private Sector Impact:

                 None.

        C.       Government Sector Impact:

                 None.

 VI.    Technical Deficiencies:

        None.

VII.    Related Issues:

        Currently, the DOR distributes specified amounts to certain recipients for facilities used by
        sports teams. It is unclear, under the bill, if these required payments made by the DOR are
        considered an agreement between a governmental entity and a professional sports team.
        Additionally, it is unclear how the governmental entity would be notified of a default on the
        agreement.

        The bill provides that if a governmental entity fails to timely enforce the “failure to comply”
        provision in the agreement, the Attorney General may step in to enforce the provision. However,
        it is unclear what constitutes timely enforcement.

        Neither the bill nor Chapter 286, F.S., define “governmental entity.”

VIII.   Statutes Affected:

        This bill creates section 286.31 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 1298          Florida Senate - 2022                                        SB 1298



       By Senator Gruters




       23-01604-22                                                  20221298__          23-01604-22                                               20221298__
 1                                 A bill to be entitled                         30     Soccer League, or the Women’s National Basketball Association;
 2             An act relating to agreements with professional sports            31          2. A person hosting a motorsports racing event sanctioned
 3             teams; creating s. 286.31, F.S.; defining the terms               32     by the National Association for Stock Car Auto Racing (NASCAR),
 4             “professional sports team” and “sporting event”;                  33     IndyCar, or another nationally recognized motorsports racing
 5             prohibiting a governmental entity from entering into              34     association at a venue in this state with a permanent seating
 6             certain agreements with a professional sports team                35     capacity of at least 75,000; or
 7             unless the agreement includes specified provisions;               36          3. An organization hosting a Professional Golfers’
 8             requiring a governmental entity that enters into such             37     Association event.
 9             an agreement to strictly enforce such provisions;                 38          (b) “Sporting event” means any preseason, regular season,
10             authorizing the Attorney General to intervene to                  39     or postseason game or event of a professional sports team.
11             enforce such provisions under certain circumstances;              40          (2) PROVISIONS REQUIRED IN CERTAIN AGREEMENTS.—Beginning
12             providing an effective date.                                      41     July 1, 2022, a governmental entity may not enter into an
13                                                                               42     agreement with a professional sports team that requires a
14     Be It Enacted by the Legislature of the State of Florida:                 43     financial commitment by the state or a governmental entity
15                                                                               44     unless the agreement includes:
16             Section 1. Section 286.31, Florida Statutes, is created to        45          (a) A written verification that the professional sports
17     read:                                                                     46     team will play the United States national anthem at the
18             286.31 Agreements with professional sports teams.—                47     beginning of each sporting event held at the team’s home venue
19             (1) DEFINITIONS.—                                                 48     or other facility controlled by the team for the event.
20             (a) “Professional sports team” means:                             49          (b) A provision providing that any failure to comply with
21             1. A team organized in this state that is a member of the         50     the written verification required by paragraph (a):
22     National League or the American League of Major League Baseball,          51          1. Constitutes a default of the agreement.
23     the National Basketball Association, the National Football                52          2. Immediately subjects the team to any penalty the
24     League, the National Hockey League, Major League Soccer, the              53     agreement authorizes for default, which may include requiring
25     American Hockey League, the East Coast Hockey League, the                 54     the team to repay any money paid to the team by the state or any
26     American Association of Independent Professional Baseball, the            55     governmental entity or classifying the team as ineligible to
27     Atlantic League of Professional Baseball, Minor League Baseball,          56     receive further money under the agreement.
28     the National Basketball Association G League, the National                57          3. May subject the team to a prohibition on contracting
29     Women’s Soccer League, the Major Arena Soccer League, the United          58     with the state.

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       Florida Senate - 2022                                        SB 1298




       23-01604-22                                            20221298__
59          (3) STRICT ADHERENCE TO DEFAULT PROVISION.—
60          (a) A governmental entity that enters into an agreement
61     with a professional sports team shall strictly enforce the
62     provision required under paragraph (2)(b).
63          (b) If a governmental entity fails to timely enforce the
64     provision required under paragraph (2)(b), the Attorney General
65     may intervene to enforce the provision.
66          Section 2. This act shall take effect July 1, 2022.




                                  Page 3 of 3
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                                CourtSmart Tag Report
Room: SB 110                       Case No.:                             Type:
Caption: Senate Commerce and Tourism Committee                           Judge:

Started: 1/18/2022 9:01:12 AM
Ends:    1/18/2022 9:35:49 AM       Length: 00:34:38

9:01:11 AM    Chair calls meeting to order
9:01:18 AM    Committee Administrative Assistant, CAA, calls roll - quorum present
9:01:54 AM    Tab 2 - SB 1310 by Senator Rodriguez
9:02:07 AM    Senator Rodriguez introduces bill
9:03:06 AM    No questions
9:03:12 AM    Tiffany Garling, Marianna, FL, waives in support
9:03:20 AM    Meagan Basford, Main Street Marianna, waives in support
9:03:31 AM    Zack Gilmore, Jackson County Economic Development Committee, waives in support
9:03:39 AM    Robert Laj, New Orleans, VA, waives in support
9:03:50 AM    Lisa Finkelstein, Fernandina Beach Main Street, waives in support
9:03:58 AM    Melissa Wyllie, Florida Trust for Historic Preservation, speaks for the bill
9:04:33 AM    Erin Schuck, Melbourne Main Street, waives in support
9:04:48 AM    Karine Morgan, Venice Main Street, waives in support
9:04:55 AM    JuliaTruilo, Ormond Beach Main Street, waives in support
9:05:05 AM    Kimberly Agee, Melbourne Main Street, waives in support
9:05:22 AM    Amanda Muzaurieta, Historic Cocoa Village Main Street, waives in support
9:05:33 AM    Pauline Eaton, Orlando Main Street, waives in support
9:05:42 AM    Gregory WIlliams, Plant City Main Street, waives in support
9:05:48 AM    Jane West, 1000 Friends of Florida, speaking for the bill
9:07:24 AM    Thondra Lanese, Ft. Pierce, FL, waives in support
9:07:36 AM    Mileyka Burgos-Flores, Miami, FL, waives in support
9:08:09 AM    Wayne Carter, Main Street Deland, waives in support
9:08:28 AM    Vice chair Wright in debate
9:08:49 AM    Senator Rodriguez closes on bill
9:09:18 AM    CAA calls roll on bill
9:09:33 AM    SB 1310 reported favorably
9:09:46 AM    Tab 1 - SB 944 by Senator Baxley
9:09:56 AM    Senator Baxley explains bill
9:11:30 AM    Senator Pizzo in questions
9:11:45 AM    Senator Baxley responds
9:13:39 AM    Jake Farmer, Walgreens, waives in support
9:13:46 AM    Grace Lovett, Florida Retail Federation, speaking for the bill
9:14:41 AM    Senator Pizzo in questions
9:15:56 AM    Grace Lovett responds
9:16:03 AM    Senator Pizzo in questions
9:16:28 AM    Grace Lovett responds
9:17:03 AM    Senator Powell in questions
9:17:27 AM    Grace Lovett responds
9:18:15 AM    Tracy Mayernick, The Home Depot, waives in support
9:18:28 AM    Jim Daughton, Ebay, speaking against the bill
9:20:57 AM    Senator Pizzo in questions
9:21:07 AM    Jim Daughton responds
9:21:57 AM    Senator Powell in questions
9:22:05 AM    Jim Daughton responds
9:23:55 AM    Senator Torres in debate
9:24:42 AM    Senator Baxley closes on the bill
9:26:16 AM    CAA calls roll on bill
9:26:27 AM    SB 944 passes favorably
9:26:48 AM    Tab 3 - SB 1076 by Senator Gruters
9:26:57 AM    Senator Gruters explains the bill
9:28:25 AM    Senator Pizzo in questions
9:28:40 AM    Senator Gruters responds
9:28:49 AM   Mac Haddow, American Kratom Association, speaking in favor of bill
9:32:22 AM   No debate
9:32:26 AM   Senator Gruters closes on the bill
9:32:45 AM   CAA calls roll on the bill
9:32:51 AM   SB 1076 passes favorably
9:33:10 AM   Tab 4 - SB 1298 by Senator Gruters
9:33:20 AM   Senator Gruters explains the bill
9:33:40 AM   Senator Torres in questions
9:34:00 AM   Senator Gruters responds
9:34:11 AM   No debate
9:34:20 AM   Senator Gruters waives close
9:34:28 AM   CAA calls roll on the bill
9:34:33 AM   SB 1298 Passes favorably
9:34:57 AM   Late appearance card for SB 1310-Sean Pittman, City of Orlando, waives in support
9:35:20 AM   Senator Taddeo votes late
9:35:34 AM   Chair Hooper adjourns meeting
                                                 THE FLORIDA SENATE                                  COMMITTEES:
                                                                                                     Children, Families, and Elder Affairs, Chair
                                                    Tallahassee, Florida 32399-1100                  Community Affairs, Vice Chair
                                                                                                     Rules, Vice Chair
                                                                                                     Appropriations Subcommittee on Agriculture,
                                                                                                      Environment, and General Government
                                                                                                     Appropriations Subcommittee on Transportation,
                                                                                                       Tourism, and Economic Development
                                                                                                     Commerce and Tourism
                                                                                                     Ethics and Elections
                                                                                                     Health Policy


SENATOR ILEANA GARCIA
       37th District


   January 18, 2022

   Commerce and Tourism Committee


   Good afternoon,

   I am writing to request to be excused from today’s meeting, Tuesday, January 18, 2022, of the
   Committee on Commerce and Tourism meeting.

   Thank you for your consideration and understanding.




                                                    Sincerely,




                                                    Ileana Garcia




                 REPLY TO:
                    2828 Coral Way, Suite 208, Miami, Florida 33145 (305) 442-6841
                    326 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399-1100 (850) 487-5037

                                                   Senate’s Website: www.flsenate.gov


                         WILTON SIMPSON                                                           AARON BEAN
                       President of the Senate                                                President Pro Tempore


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