Meeting Packet — Florida Senate, Commerce and Tourism (Tuesday, January 16, 2024)
Summary
Customized meeting packet of the Florida Senate Commerce and Tourism committee for Tuesday, January 16, 2024, 1:30—3:30 p.m., 2024 Regular Session, with Senator Trumbull as Chair and Senator Wright as Vice Chair. The agenda order lists SB 314 by Boyd, SB 890 by Boyd, SB 612 by Hooper, SB 842 by Perry, SB 1126 by Martin and SB 1166 by DiCeglie. The expanded agenda shows SB 314 as Temporarily Postponed and SB 890 as Favorable with Yeas 5 Nays 0. The time-stamped record at the end shows a late-filed amendment to SB 1126 adopted, CS/SB 1126 reported favorably, and the meeting adjourned.
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
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“Meeting Packet — Florida Senate, Commerce and Tourism (Tuesday, January 16, 2024).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-01-16-post-meeting-packet-7881-1e708ed003/
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01/16/2024 - Commerce and Tourism (1:30 PM - 3:30 PM) 2024 Regular Session
Customized 01/18/2024 3:08 PM
Agenda Order
Tab 1 SB 314 by Boyd; (Identical to H 00519) Business Transactions
Tab 2 SB 890 by Boyd; Taxation
Tab 3 SB 612 by Hooper; (Similar to CS/H 00481) Building Construction Regulations and System Warranties
645676 A S RCS CM, Hooper Delete L.65 - 141: 01/16 03:48 PM
568094 A S RCS CM, Hooper Delete L.155 - 295. 01/16 03:48 PM
Tab 4 SB 842 by Perry; (Similar to H 00861) Florida Kratom Consumer Protection Act
Tab 5 SB 1126 by Martin; (Similar to H 01641) Regulation of Auxiliary Containers
354080 A S L RCS CM, Martin Delete L.24 - 64: 01/16 03:49 PM
Tab 6 SB 1166 by DiCeglie; (Similar to H 01183) Main Street Historical Tourism and Revitalization Act
857016 D S RCS CM, DiCeglie Delete everything after 01/16 04:02 PM
Page 1 of 1
2024 Regular Session The Florida Senate
COMMITTEE MEETING EXPANDED AGENDA
COMMERCE AND TOURISM
Senator Trumbull, Chair
Senator Wright, Vice Chair
MEETING DATE: Tuesday, January 16, 2024
TIME: 1:30—3:30 p.m.
PLACE: Toni Jennings Committee Room, 110 Senate Building
MEMBERS: Senator Trumbull, Chair; Senator Wright, Vice Chair; Senators Gruters, Rodriguez, Stewart, and
Torres
BILL DESCRIPTION and
TAB BILL NO. and INTRODUCER SENATE COMMITTEE ACTIONS COMMITTEE ACTION
1 SB 314 Business Transactions; Requiring the Department of Temporarily Postponed
Boyd Law Enforcement to supply the statewide reporting
(Identical H 519) system to law enforcement agencies by a specified
date; requiring a seller to provide certain government-
issued identification before a precious metals dealer
may remit payment to the seller; requiring the
department to contract with a private provider to
supply a statewide reporting system for a specified
purpose; requiring pawn transactions to be
transmitted electronically using the statewide
reporting system, etc.
CM 01/16/2024 Temporarily Postponed
ACJ
AP
2 SB 890 Taxation; Exempting from sales and use tax the retail Favorable
Boyd sale of impact-resistant windows, impact-resistant Yeas 5 Nays 0
doors, and impact-resistant garage doors during a
specified timeframe; authorizing the Department of
Revenue to adopt emergency rules, etc.
CM 01/16/2024 Favorable
FT
AP
3 SB 612 Building Construction Regulations and System Fav/CS
Hooper Warranties; Authorizing prevailing parties in Yeas 5 Nays 0
(Similar CS/H 481) proceedings on interpretations of the Florida Building
Code and the Florida Accessibility Code for Building
Construction to recover attorney fees; providing that
certain provisions governing the transfer of HVAC
manufacturer’s warranties apply to transfers made on
or after a specified date; prohibiting HVAC
manufacturer’s warranties from being conditioned
upon the product registration; providing the effective
date for certain HVAC system and component
warranties under a specified circumstance, etc.
CM 01/16/2024 Fav/CS
CA
RC
S-036 (10/2008)
01162024.1443 Page 1 of 2
COMMITTEE MEETING EXPANDED AGENDA
Commerce and Tourism
Tuesday, January 16, 2024, 1:30—3:30 p.m.
BILL DESCRIPTION and
TAB BILL NO. and INTRODUCER SENATE COMMITTEE ACTIONS COMMITTEE ACTION
4 SB 842 Florida Kratom Consumer Protection Act; Prohibiting Favorable
Perry processors from selling, preparing, distributing, or Yeas 5 Nays 0
(Similar H 861) exposing for sale certain kratom products or kratom
extracts; providing civil penalties for processors who
violate certain provisions; providing an exception, etc.
CM 01/16/2024 Favorable
AEG
FP
5 SB 1126 Regulation of Auxiliary Containers; Defining the term Fav/CS
Martin “auxiliary container”; expressly preempting the Yeas 4 Nays 0
(Similar H 1641) regulation of auxiliary containers to the state; deleting
obsolete provisions requiring the Department of
Environmental Protection to review and update a
specified report, etc.
CM 01/16/2024 Fav/CS
CA
FP
6 SB 1166 Main Street Historical Tourism and Revitalization Act; Fav/CS
DiCeglie Citing this act as the "Main Street Historical Tourism Yeas 5 Nays 0
(Similar H 1183) and Revitalization Act"; providing a credit against the
state corporate income tax and the insurance
premium tax for qualified expenses in rehabilitating
certain historic structures; specifying eligibility
requirements for the tax credit; prohibiting entities or
individuals from receiving more than a certain amount
in tax credits; specifying the order in which the credit
is applied against the corporate income tax or
franchise tax; specifying the order in which the credit
is applied against the insurance premium tax, etc.
CM 01/16/2024 Fav/CS
FT
AP
Other Related Meeting Documents
S-036 (10/2008)
01162024.1443 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 314
INTRODUCER: Senator Boyd
SUBJECT: Business Transactions
DATE: January 12, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. McMillan McKay CM Pre-meeting
2. ACJ
3. AP
I. Summary:
SB 314 requires the Department of Law Enforcement to contract with a private vendor to supply
a statewide reporting system for law enforcement agencies to use in the reporting of transactions
by secondhand dealers and pawnbrokers, and requires secondhand dealers and pawnbrokers that
have computer capability to electronically transmit required transactions to the statewide
reporting system. The system is also for law enforcement agencies to use for investigations.
The bill clarifies that the sheriff may provide a secondhand dealer or pawnbroker with a
computer and all necessary equipment for the purpose of electronically transferring secondhand
dealer or pawn transactions using the statewide reporting system.
The bill clarifies that an “automated kiosk” must provide verification of a seller’s identity by a
United States Government-issued photographic identification card or an electronic image taken
from a United States Government-issued photographic identification or other verifiable
government issued identification.
The bill takes effect July 1, 2024.
II. Present Situation:
Secondhand Dealers
Chapter 538, F.S., regulates secondhand dealers and secondary metal recyclers in the trade of
secondhand goods. The purpose of such regulations is to assist law enforcement in recovering
stolen property and in solving other theft-related crimes.1
1
See ss. 538.04, 538.06, F.S. (identifying recordkeeping requirements and holding periods in connection with secondhand
goods); see also Jarret C. Oeltjen, Florida Pawnbroking: An Industry in Transition, 23 FLA. ST. U. L. REV. 995, 1013 (Spring
1996) (noting that “[t]he main impetus behind [ch. 538, F.S.] was to confront the problem of property theft and drug-related
BILL: SB 314 Page 2
A secondhand dealer is defined as any person, corporation, or other business organization or
entity that is not a secondary metals recycler and is engaged in the business of purchasing,
consigning, or trading secondhand goods. The term also includes a secondhand dealer engaged in
purchasing secondhand goods by means of an automated kiosk.2
Secondhand goods are previously owned or used personal property that is purchased, consigned,
or traded as used property.3 The term also includes gift certificates and credit memos4 that are
purchased, consigned, or traded by a secondhand dealer. Secondhand goods do not include office
furniture, pianos, books, clothing, organs, coins, motor vehicles, costume jewelry; gold, silver,
platinum, palladium, or rhodium bullion that has been assayed and is properly marked as to its
weight and fineness; cardio and strength training or conditioning equipment designed primarily
for indoor use, and secondhand sports equipment that is not permanently labeled with a serial
number.5
A secondhand dealer must annually register his or her business with the Department of Revenue
(DOR).6
Upon each acquisition of secondhand goods, a secondhand dealer must complete a transaction
form that details the goods purchased and the seller’s identity. The secondhand dealer must
retain this document for at least 3 years and forward a copy to the appropriate law enforcement
agency within 24 hours after the acquisition of the secondhand goods.7 In addition to the
descriptive statements of the secondhand goods and the seller’s identity, the transaction record
must also include:
A statement of the date, time, and place of the transaction;
A summary of the goods acquired, including brand name, model number, serial number, and
other unique identifiers;
Digital photographs of the goods acquired in the report that is submitted to law enforcement;
and
A description of the person from whom the goods were acquired, including his or her right
thumbprint, name and address, and a physical description.8
If the appropriate law enforcement official supplies a secondhand dealer with appropriate
software and the secondhand dealer has computer capability, the secondhand dealer must
electronically transmit the required transaction records.9 Additionally, if a secondhand dealer
crimes by facilitating recovery of stolen goods and apprehending those criminals who may turn to secondhand dealers for
cash”).
2
Section 538.03(1)(h), F.S.
3
Section 538.03(1)(i), F.S.
4
Section 501.95, F.S., defines “credit memo” as a certificate, card, stored value card, or similar instrument issued in
exchange for returned merchandise when the certificate, card, or similar instrument is redeemable for merchandise, food, or
services regardless of whether any cash may be paid to the owner of the certificate, card, or instrument as part of the
redemption transaction.
5
Section 538.03(1)(i), F.S.
6
See generally s. 538.09, F.S. (providing for registration).
7
Section 538.04(1), F.S.
8
Id.
9
Section 538.04(6), F.S.
BILL: SB 314 Page 3
does not have the computer capability, the appropriate law enforcement official may provide a
computer and all of the equipment necessary to electronically transmit transactions.10
Secondhand dealers are required to hold all secondhand goods for at least 15 days after they
acquire the property. However, secondhand dealers are required to hold a precious metal,11
gemstone, jewelry; antique furnishings, fixtures, or decorative objects; or an item of art as
defined in s. 686.501, F.S.,12 for 30 days after they acquire the property.13 Additionally, a
secondhand good must be held for 30 days if the secondhand dealer uses an automated kiosk.14
If a law enforcement officer has probable cause to believe that the goods held by a secondhand
dealer are stolen, the officer may place a 90-day written hold order on the goods.15 This prevents
the secondhand dealer from selling the goods and preserves them for use as evidence in a
criminal trial. Additionally, this allows for the possibility of the goods to be returned to their
rightful owner.16
Law enforcement agencies having jurisdiction enforce compliance with registration, record
keeping, holding periods, and inspection requirements.17 A person who knowingly violates the
requirements governing secondhand dealers in ch. 538, F.S., commits a first degree
misdemeanor, punishable by up to 1 year in jail and a $10,000 fine.18
Mail-in Secondhand Precious Metals Dealers
A mail-in secondhand precious metals dealer19 must register with the DOR and comply with all
of the regulation requirements provided in s. 538.09, F.S., which is the section that regulates the
registration of secondhand dealers. Additionally, a mail-in secondhand precious metals dealer
may only remit payment to a seller if the seller has provided the following information:
The seller’s name, address, telephone number, and e-mail address, if available;
10
Id.
11
Section 538.03(1)(f), F.S., defines “precious metals” as any item containing any gold, silver, or platinum, or any
combination thereof, excluding any chemical or any automotive, photographic, electrical, medical, or dental materials or
electronic parts.
12
Section 686.501(1), F.S., defines “art” as a painting, sculpture, drawing, work of graphic art, pottery, weaving, batik,
macramé, quilt, print, photograph, or craft work executed in materials including, but not limited to, clay, textile, paper, fiber,
wood, tile, metal, plastic, or glass. The term includes a rare map which is offered as a limited edition or a map 80 years old or
older; or a rare document or rare print which includes, a print, engraving, etching, woodcut, lithograph, or serigraph which is
offered as a limited edition, or one 80 years old or older.
13
Section 538.06(1), F.S.
14
Id. An “automated kiosk” is an interactive device that is permanently installed within a secure retail space and that has the
following technological functions: remotely monitored by a live representative during all business hours; verification of a
seller’s identity by government-issued photographic identification card; automated reading and recording of item serial
numbers; ability to compare item serial numbers against databases of stolen items; secure storage of goods accepted by the
kiosk; and capture and storage of images during the transaction. Section 538.03(1)(c), F.S.
15
Section 538.06(3), F.S.
16
Id.
17
Section 538.05, F.S.
18
Section 538.07(1), F.S.
19
Section 538.31(c), F.S., defines a “mail-in secondhand precious metals dealer” as any person or entity that: (1) conducts
business within this state and that contracts with other persons or entities to buy precious metals or jewelry through an
Internet website, the United States mail, or telemarketing; or (2) conducts business within this state and regularly engages in
the business of purchasing jewelry or precious metals through the mail or Internet-based transactions.
BILL: SB 314 Page 4
The seller’s driver license number and issuing state or other government-issued identification
number; and
A sworn statement made by the seller that the seller is of lawful age and that the driver
license number or other government-issued identification number, as well as other
identifying information provided by the seller is true and correct and that the seller is the
lawful owner of the goods with absolute authority to sell the goods.20
The Department of Agriculture and Consumer Services
In addition to regulating agriculture in Florida, the Department of Agriculture and Consumer
Services (DACS) protects consumers from unfair and deceptive business practices and provides
consumer information.
The DACS achieves this, in part, through licensing and registering various professionals,
including:
Professional Surveyors and Mappers (ch. 472, F.S.);
Private Investigative, Private Security, and Repossession Services (ch. 493, F.S.);
Health Studios (ch. 501, pt. I, F.S.);
Telemarketing Services (ch. 501, pt. IV, F.S.);
Intrastate Movers and Brokers (ch. 507, F.S.);
Sellers of Liquefied Petroleum Gas (ch. 527, F.S.);
Pawnbroking (ch. 539, F.S.);
Motor Vehicle Repair Shops (ch. 559, pt. IX, F.S.); and
Sellers of Travel (ch. 559, pt. XI, F.S.).
The DACS provides licenses and regulates each of the above professionals in accordance with
that profession’s practice act. Generally, applicants must meet specific statutory requirements
and must pay all applicable fees.
Pawnbroking
The Florida Pawnbroking Act requires pawnshops to obtain an annual license with the DACS.21
To be eligible for a pawnbroker’s license, an applicant must:
Be of good moral character;
Maintain a net worth of at least $50,000 or file security in the form of a bond, letter of credit,
or certificate of deposit in the amount of $10,000 with the DACS; and
Not have been convicted of, or found guilty of, or pled guilty or nolo contendere to, or not
have been incarcerated within the last 10 years as a result of having previously been
convicted of, or found guilty of, or pled guilty or nolo contendere to, regardless of
adjudication, a crime that involves theft, larceny, dealing in stolen property, receiving stolen
property, burglary, embezzlement, obtaining property by false pretenses, possession of
altered property, or any other fraudulent or dishonest dealing within the last 10 years.22
20
Section 538.32(2), F.S.
21
Section 539.001(3), F.S. See also The Florida Department of Agriculture and Consumer Services, Pawnbroking, available
at https://www.fdacs.gov/Business-Services/Pawnbroking (last visited Jan. 12, 2024).
22
Section 539.001(4), F.S.
BILL: SB 314 Page 5
Pawnbroker Transaction Forms
At the time a pawnbroker enters into any pawn or purchase transaction, the pawnbroker is
required to complete a pawnbroker transaction form.23 The form must include an indication of
whether the transaction is a pawn or a purchase, and the seller must also sign the form.24
A pawnbroker is required to maintain a copy of each completed pawnbroker transaction form on
the pawnshop premises for at least 1 year after the date of the transaction.25 On or before the end
of each business day, the pawnbroker must deliver the original pawnbroker transaction forms for
each of the transactions occurring during the previous business day to the appropriate law
enforcement official.26 Additionally, an electronic image that is accepted for a transaction, must
be maintained electronically in order to meet the same recordkeeping requirements.27
If the appropriate law enforcement agency supplies adequate software and the pawnbroker
presently has the computer capability, pawn transactions are required to be electronically
transferred.28
All goods delivered to a pawnbroker in a pawn or purchase transaction must be securely stored
and maintained in an unaltered condition within the jurisdiction of the appropriate law
enforcement official for a period of 30 calendar days after the transaction.29
III. Effect of Proposed Changes:
Secondhand Dealers
The bill amends s. 538.03, F.S., to provide that “automated kiosk,” means an interactive device
that is permanently installed within a secure retail space and that has the following technological
functions:
Remotely monitored by a live representative during all business operating hours;
Verification of a seller’s identity by a United States Government-issued photographic
identification card or an electronic image taken from a United States Government-issued
photographic identification or other verifiable government-issued identification;
Automated reading and recording of item serial numbers;
Ability to compare item serial numbers against databases of stolen items;
23
Section 593.001(8)(a), F.S.
24
Id.
25
Section 593.001(9)(a), F.S.
26
Id.
27
Id.
28
Section 593.001(9)(b), F.S. If a pawnbroker does not presently have the computer ability, the appropriate law enforcement
agency may provide the pawnbroker with a computer and all necessary equipment for the purpose of electronically
transferring pawn transactions. The appropriate law enforcement agency must retain ownership of the computer, unless
otherwise agreed upon. Additionally, the pawnbroker must maintain the computer in good working order. If the pawnbroker
transfers pawn transactions electronically, the pawnbroker is not required to also deliver to the appropriate law enforcement
official the original or copies of the pawnbroker transaction forms. The appropriate law enforcement official may, for the
purposes of a criminal investigation, request that the pawnbroker produce an original of a transaction form that has been
electronically transferred. The pawnbroker shall deliver this form to the appropriate law enforcement official within 24 hours
of the request.
29
Section 593.001(9)(c), F.S.
BILL: SB 314 Page 6
Secure storage of goods accepted by the kiosk, and
Capture and storage of images during the transaction.
The bill defines “statewide reporting system” as software that the Department of Law
Enforcement shares with law enforcement agencies in Florida for all pawnbrokers, secondhand
dealers, and secondary metals recyclers in Florida to use to report transactions to law
enforcement and for law enforcement agencies to use for investigations.
The bill amends s. 538.04(6), F.S., to require the Department of Law Enforcement to supply a
statewide reporting system to law enforcement agencies on or before July 1, 2027. The system
must be developed and maintained pursuant to s. 790.335(5), F.S.,30 through a department
contract with a third-party private provider that is exclusively incorporated, owned, and operated
in the United States and that restricts access to such transaction information to appropriate law
enforcement agencies for legitimate law enforcement purposes only. The system must have the
ability to provide daily exports of the transaction data, in compliance with s. 790.335, F.S., to the
Department of Law Enforcement for use in law enforcement data-sharing systems.
The bill requires a secondhand dealer that has computer capability to electronically transmit the
required secondhand dealer transactions to the statewide reporting system. If a secondhand
dealer does not have computer capability, the sheriff may provide the secondhand dealer with a
computer and all of the necessary equipment to electronically transmit secondhand dealer
transactions using the statewide reporting system. Additionally, the sheriff retains ownership of
the computer, unless otherwise agreed upon, and the secondhand dealer must maintain the
computer in good working order.
Mail-in Precious Metals Dealers
The bill amends s. 538.32, F.S., to provide that a mail-in secondhand precious metals dealer may
only remit payment to a seller if the seller has provided the following information:
The seller’s name, address, telephone number, and e-mail address, if available;
The seller’s driver license number and issuing state or other United States government-issued
identification number or other verifiable government issued identification; and
A sworn statement made by the seller that the seller is of lawful age and that the driver
license number or other government-issued identification number, as well as other
identifying information provided by the seller is true and correct and that the seller is the
lawful owner of the goods with absolute authority to sell the goods.
Pawnbroking
The bill amends s. 539.001, F.S., to clarify that “identification” means a United States
Government-issued photographic identification or an electronic image taken from a United
States Government-issued photographic identification or other verifiable government-issued
identification.
30
Section 790.335(5), F.S., provides that secondhand dealers and pawnbrokers who electronically submit firearms transaction
records to the appropriate law enforcement agencies as required by chapters 538 and 539, F.S., are required to submit the
name of the manufacturer and caliber information of each firearm in Florida Crime Information Center coding, and also must
include the model and serial number of each firearm.
BILL: SB 314 Page 7
The bill provides that “statewide reporting system” means software that the Department of Law
Enforcement shares with law enforcement agencies in Florida for all pawnbrokers, secondhand
dealers, and secondhand metals recyclers in Florida to use to report transactions to law
enforcement and for law enforcement agencies to use for investigations.
The bill amends s. 539.001(9), F.S., to require the Department of Law Enforcement to supply a
statewide reporting system to law enforcement agencies. The system must be developed and
maintained pursuant to s. 790.335(5), F.S.,31 through a department contract with a third-party
private provider that is exclusively incorporated, owned, and operated in the United States and
that restricts access to such transaction information to appropriate law enforcement agencies for
legitimate law enforcement purposes only. The system must have the ability to provide daily
exports of the transaction data, in compliance with s. 790.335, F.S., to the Department of Law
Enforcement for use in law enforcement data-sharing systems.
The bill requires a pawnbroker that has computer capability to electronically transmit pawn
transactions. If a pawnbroker does not currently have computer capability, the sheriff having
jurisdiction over the pawnshop location may provide the pawnbroker with a computer and all
equipment necessary to electronically transfer pawn transactions using the statewide reporting
system. Additionally, the sheriff retains ownership of the computer, unless otherwise agreed
upon.
Effective Date
The bill takes effect July 1, 2024.
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.
31
Section 790.335(5), F.S., provides that secondhand dealers and pawnbrokers who electronically submit firearms transaction
records to the appropriate law enforcement agencies as required by chapters 538 and 539, F.S., are required to submit the
name of the manufacturer and caliber information of each firearm in Florida Crime Information Center coding, and also must
include the model and serial number of each firearm.
BILL: SB 314 Page 8
E. Other Constitutional Issues:
None Identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Secondhand dealers and pawnbrokers will be required to use the statewide reporting
system to report transactions.
C. Government Sector Impact:
The Florida Department of Law Enforcement will be required to supply a statewide
reporting system for all secondhand dealers and pawnbrokers to report transactions. The
bill requires the Florida Department of Law Enforcement to contract with a private
provider to supply the statewide reporting system.
VI. Technical Deficiencies:
None.
VII. Related Issues:
The bill amends s. 538.04(6), F.S., which is the section of law regulating the recordkeeping of
secondhand dealers, to require the Department of Law Enforcement to supply a statewide
reporting system to law enforcement agencies on or before July 1, 2027. The bill also amends s.
539.001(9), F.S., which is the section of law regulating the recordkeeping of pawnbrokers, to
require the Department of Law Enforcement to supply a statewide reporting system to law
enforcement agencies. However, the bill does not indicate when the statewide reporting system
must be supplied in s. 539.001(9), F.S.
The bill creates a definition of “statewide reporting system” in s. 538.03, F.S., which is
applicable to Part I of Chapter 538 – Secondhand Dealers. The definition references secondary
metals recyclers, but secondary metals recyclers are regulated by Part II of Chapter 538. The bill
creates the same definition in s. 539.001, F.S., but this definition section is applicable to The
Florida Pawnbroking Act in s. 539.001, F.S. If the intent of the bill is to require secondary metals
recyclers to use the statewide system, the bill should impose that duty in Part II of Chapter 538.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 538.03, 538.04,
538.32, and 539.001.
BILL: SB 314 Page 9
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 - 2024 SB 314 Florida Senate - 2024 SB 314
By Senator Boyd
20-00384-24 2024314__ 20-00384-24 2024314__
1 A bill to be entitled 30 have computer capability; providing an effective date.
2 An act relating to business transactions; amending s. 31
3 538.03, F.S.; revising the definition of the term 32 Be It Enacted by the Legislature of the State of Florida:
4 “automated kiosk”; defining the term “statewide 33
5 reporting system”; amending s. 538.04, F.S.; requiring 34 Section 1. Present paragraph (k) of subsection (1) of
6 the Department of Law Enforcement to supply the 35 section 538.03, Florida Statutes, is redesignated as paragraph
7 statewide reporting system to law enforcement agencies 36 (l), a new paragraph (k) is added to that subsection, and
8 by a specified date; requiring the Department of Law 37 paragraph (c) of that subsection is amended, to read:
9 Enforcement to contract with a private provider to 38 538.03 Definitions; applicability.—
10 supply a statewide reporting system for a specified 39 (1) As used in this part, the term:
11 purpose; providing requirements for the private 40 (c) “Automated kiosk” means an interactive device that is
12 provider and the system; requiring secondhand dealers 41 permanently installed within a secure retail space and that has
13 to transmit their transactions electronically to the 42 the following technological functions:
14 statewide reporting system; authorizing sheriffs to 43 1. Remotely monitored by a live representative during all
15 supply the necessary computer equipment to secondhand 44 business operating hours;
16 dealers that do not have computer capability; amending 45 2. Verification of a seller’s identity by a United States
17 s. 538.32, F.S.; requiring a seller to provide certain 46 Government-issued photographic identification card or an
18 government-issued identification before a precious 47 electronic image taken from a United States Government-issued
19 metals dealer may remit payment to the seller; 48 photographic identification or other verifiable government-
20 reordering and amending s. 539.001, F.S.; revising the 49 issued identification;
21 definition of the term “identification”; defining the 50 3. Automated reading and recording of item serial numbers;
22 term “statewide reporting system”; requiring the 51 4. Ability to compare item serial numbers against databases
23 department to contract with a private provider to 52 of stolen items;
24 supply a statewide reporting system for a specified 53 5. Secure storage of goods accepted by the kiosk; and
25 purpose; providing requirements for the private 54 6. Capture and storage of images during the transaction.
26 provider and the system; requiring pawn transactions 55 (k) “Statewide reporting system” means software that the
27 to be transmitted electronically using the statewide 56 Department of Law Enforcement shares with law enforcement
28 reporting system; authorizing sheriffs to supply the 57 agencies in this state for all pawnbrokers, secondhand dealers,
29 necessary computer equipment to pawnbrokers who do not 58 and secondary metals recyclers in this state to use to report
Page 1 of 9 Page 2 of 9
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2024 SB 314 Florida Senate - 2024 SB 314
20-00384-24 2024314__ 20-00384-24 2024314__
59 transactions to law enforcement and for law enforcement agencies 88 maintain the computer in good working order, except for ordinary
60 to use for investigations. 89 wear. A secondhand dealer who transmits secondhand dealer
61 Section 2. Subsection (6) of section 538.04, Florida 90 transactions electronically is not required to also deliver the
62 Statutes, is amended to read: 91 original or paper copies of the secondhand transaction forms to
63 538.04 Recordkeeping requirements; penalties.— 92 the appropriate law enforcement official. However, such official
64 (6) On or before July 1, 2027, the Department of Law 93 may, for purposes of a criminal investigation, request the
65 Enforcement shall supply a statewide reporting system to law 94 secondhand dealer to deliver the original transaction form that
66 enforcement agencies. The system shall be developed and 95 was electronically transmitted. The secondhand dealer shall
67 maintained pursuant to s. 790.335(5) through a department 96 deliver the form to the appropriate law enforcement official
68 contract with a third-party private provider that is exclusively 97 within 24 hours after receipt of the request.
69 incorporated, owned, and operated in the United States and that 98 Section 3. Paragraph (b) of subsection (2) of section
70 restricts access to such transaction information to appropriate 99 538.32, Florida Statutes, is amended to read:
71 law enforcement agencies for legitimate law enforcement purposes 100 538.32 Registration, transaction, and recordkeeping
72 only. The system must have the ability to provide daily exports 101 requirements; penalties.—
73 of the transaction data, in compliance with s. 790.335, to the 102 (2) A mail-in secondhand precious metals dealer may not
74 Department of Law Enforcement for use in law enforcement data- 103 remit payment to a seller unless the seller has provided the
75 sharing systems. If the appropriate law enforcement official 104 following information:
76 supplies a secondhand dealer has the with appropriate software 105 (b) The seller’s driver license number and issuing state or
77 and the secondhand dealer has computer capability, the 106 other United States Government-issued identification number or
78 secondhand dealer must electronically transmit secondhand dealer 107 other verifiable government-issued identification.
79 transactions required by this section to the statewide reporting 108 Section 4. Subsection (2) of section 539.001, Florida
80 system such official. If a secondhand dealer does not have 109 Statutes, is reordered and amended, and paragraph (b) of
81 computer capability, the sheriff having jurisdiction appropriate 110 subsection (9) of that section is amended, to read:
82 law enforcement official may provide the secondhand dealer with 111 539.001 The Florida Pawnbroking Act.—
83 a computer and all equipment necessary to electronically 112 (2) DEFINITIONS.—As used in this section, the term:
84 transmit secondhand dealer transactions using the statewide 113 (a) “Agency” means the Department of Agriculture and
85 reporting system. The sheriff retains appropriate law 114 Consumer Services.
86 enforcement official shall retain ownership of the computer, 115 (c)(b) “Appropriate law enforcement official” means the
87 unless otherwise agreed upon, and the secondhand dealer shall 116 sheriff of the county in which a pawnshop is located or, in case
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117 of a pawnshop located within a municipality, the police chief of 146 business of making pawns; who makes a public display containing
118 the municipality in which the pawnshop is located; however, any 147 the term “pawn,” “pawnbroker,” or “pawnshop” or any derivative
119 sheriff or police chief may designate as the appropriate law 148 thereof; or who publicly displays a sign or symbol historically
120 enforcement official for the county or municipality, as 149 identified with pawns. A pawnbroker may also engage in the
121 applicable, any law enforcement officer working within the 150 business of purchasing goods which includes consignment and
122 county or municipality headed by that sheriff or police chief. 151 trade.
123 Nothing in this subsection limits the power and responsibilities 152 (o)(j) “Pawnbroker transaction form” means the instrument
124 of the sheriff. 153 on which a pawnbroker records pawns and purchases as provided in
125 (e)(c) “Claimant” means a person who claims that his or her 154 subsection (8).
126 property was misappropriated. 155 (m)(k) “Pawn service charge” means a charge for
127 (f)(d) “Conveying customer” means a person who delivers 156 investigating the title, storage, and insuring of the security;
128 property into the custody of a pawnbroker, either by pawn, sale, 157 closing the transaction; making daily reports to appropriate law
129 consignment, or trade. 158 enforcement officials; expenses and losses; and all other
130 (h)(e) “Identification” means a United States Government- 159 services.
131 issued photographic identification or an electronic image taken 160 (p)(l) “Pawnshop” means the location at which a pawnbroker
132 from a United States Government-issued photographic 161 conducts business.
133 identification or other verifiable government-issued 162 (q)(m) “Permitted vendor” means a vendor who furnishes a
134 identification. 163 pawnbroker with an invoice specifying the vendor’s name and
135 (i)(f) “Misappropriated” means stolen, embezzled, 164 address, the date of the sale, a description of the items sold,
136 converted, or otherwise wrongfully appropriated against the will 165 and the sales price, and who has an established place of
137 of the rightful owner. 166 business, or, in the case of a secondhand dealer as defined in
138 (j)(g) “Net worth” means total assets less total 167 s. 538.03, has represented in writing that such dealer has
139 liabilities. 168 complied with all applicable recordkeeping, reporting, and
140 (l)(h) “Pawn” means any advancement of funds on the 169 retention requirements pertaining to goods sold or otherwise
141 security of pledged goods on condition that the pledged goods 170 delivered to a pawnbroker.
142 are left in the possession of the pawnbroker for the duration of 171 (r)(n) “Person” means an individual, partnership,
143 the pawn and may be redeemed by the pledgor on the terms and 172 corporation, joint venture, trust, association, or other legal
144 conditions contained in this section. 173 entity.
145 (n)(i) “Pawnbroker” means any person who is engaged in the 174 (s)(o) “Pledged goods” means tangible personal property
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175 that is deposited with, or otherwise delivered into the 204 vested with a certain amount of discretion and independent
176 possession of a pawnbroker in connection with a pawn. “Pledged 205 judgment.
177 goods” does not include titles or any other form of written 206 (v) “Statewide reporting system” means software that the
178 security in tangible property in lieu of actual physical 207 Department of Law Enforcement shares with law enforcement
179 possession, including, but not limited to, choses in action, 208 agencies in this state for all pawnbrokers, secondhand dealers,
180 securities, printed evidence of indebtedness, or certificates of 209 and secondary metals recyclers in this state to use to report
181 title and other instruments evidencing title to separate items 210 transactions to law enforcement and for law enforcement agencies
182 of property, including motor vehicles. For purposes of federal 211 to use for investigations.
183 and state bankruptcy laws, a pledgor’s interest in his or her 212 (9) RECORDKEEPING; REPORTING; HOLD PERIOD.—
184 pledged goods during the pendency of a pawn is a right of 213 (b)1. The Department of Law Enforcement shall supply a
185 redemption only. 214 statewide reporting system to law enforcement agencies. The
186 (t)(p) “Pledgor” means an individual who delivers pledged 215 system shall be developed and maintained pursuant to s.
187 goods into the possession of a pawnbroker in connection with a 216 790.335(5) through a department contract with a third-party
188 pawn. 217 private provider that is exclusively incorporated, owned, and
189 (u)(q) “Purchase” means the transfer and delivery of goods, 218 operated in the United States and that restricts access to such
190 by a person other than a permitted vendor, to a pawnbroker by 219 transaction information to appropriate law enforcement agencies
191 acquisition for value, consignment, or trade for other goods. 220 for legitimate law enforcement purposes only. The system must
192 (b)(r) “Amount financed” is used interchangeably to mean 221 have the ability to provide daily exports of the transaction
193 the same as “amount of money advanced” or “principal amount”. 222 data, in compliance with s. 790.335, to the Department of Law
194 (g)(s) “Default date” means that date upon which the 223 Enforcement for use in law enforcement data-sharing systems.
195 pledgor’s right of redemption expires and absolute right, title, 224 2. If a the appropriate law enforcement agency supplies the
196 and interest in and to the pledged goods shall vest in and shall 225 appropriate software and the pawnbroker presently has the
197 be deemed conveyed to the pawnbroker by operation of law. 226 computer capability ability, pawn transactions shall be
198 (d)(t) “Beneficial owner” means a person who does not have 227 electronically transferred. If a pawnbroker does not presently
199 title to property but has rights in the property which are the 228 have the computer capability ability, the sheriff having
200 normal incident of owning the property. 229 jurisdiction over the pawnshop location appropriate law
201 (k)(u) “Operator” means a person who has charge of a 230 enforcement agency may provide the pawnbroker with a computer
202 corporation or company and has control of its business, or of 231 and all necessary equipment for the purpose of electronically
203 its branch establishments, divisions, or departments, and who is 232 transferring pawn transactions using the statewide reporting
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233 system. The sheriff retains appropriate law enforcement agency
234 shall retain ownership of the computer, unless otherwise agreed
235 upon. The pawnbroker shall maintain the computer in good working
236 order, ordinary wear and tear excepted. In the event the
237 pawnbroker transfers pawn transactions electronically, the
238 pawnbroker is not required to also deliver to the appropriate
239 law enforcement official the original or copies of the
240 pawnbroker transaction forms. The appropriate law enforcement
241 official may, for the purposes of a criminal investigation,
242 request that the pawnbroker produce an original of a transaction
243 form that has been electronically transferred. The pawnbroker
244 shall deliver this form to the appropriate law enforcement
245 official within 24 hours of the request.
246 Section 5. This act shall take effect July 1, 2024.
Page 9 of 9
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THE FLORIDA SENATE GOMMITTEES:
Banking and lnsurance, Chair
Aoriculture. Vice Chair
Tallahassee, Florida 32399-1100 Aipropriatibns Committee on Agriculture, Environment,
and General Government
Finance and Tax
Fiscal Policy
Judiciary
Rules
SENATOR JIM BOYD
20th District
November 15,2023
Senator Jay Trumbull
Senate Committee on Commerce and Tourism
310 Knott Building
404 South Monroe Street
Tallahassee,FL 32399
Dear Chairman Trumbull:
I respectfully request Senate Bill 314: Business Transactions, be scheduled for a Committee on
Commerce and Tourism hearing at your earliest convenience.
If I can assist you on this or any other matter, please do not hesitate to contact me
I appreciate your consideration of this matter.
Best regards,
w4
Jim Boyd
cc: Todd McKay
Renita Hayes
REPLY TO:
O 717 ManateeAvenueWest, Bradenton, Florida 34205 (941)742-6445
O4l5SenateBuilding,404SouthMonroeStreet,Tallahassee,Florida32399-1100 (850)487-5020
Senate's Website: www.fl senate.gov
KATHLEEN PASSIDOMO DENNIS BAXLEY
President of the Senate President Prc Tempore
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 890
INTRODUCER: Senator Boyd
SUBJECT: Taxation
DATE: January 12, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Favorable
2. FT
3. AP
I. Summary:
SB 890 exempts from the sales and use tax the retail sale of impact-resistant windows, doors, and
garage doors for two years between July 1, 2024 and June 30, 2026.
The Revenue Estimating Conference (REC) has not reviewed the bill; however, a two-year sales
and use tax exemption on impact-resistant windows, doors, and garage doors was included in
chapter 2022-97, Laws of Florida. The REC determined that those exemptions would reduce
General Revenue Fund receipts by $158 million and would reduce local revenues by $46.7
million in Fiscal Year 2022-2023.
The bill takes effect upon becoming a law.
II. Present Situation:
Florida Sales and Use Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,1 admissions,2 transient rentals,3 and a limited number of services, and a 5.5 percent
sales and use tax on the rental of commercial real estate.4 Chapter 212, F.S., contains provisions
authorizing the levy and collection of Florida’s sale and use tax, as well as the exemptions and
credits applicable to certain items or uses under specified circumstances. Sales tax is added to the
price of the taxable good or service and collected from the purchaser at the time of sale.5
1
Section 212.05(1)(a)1.a., F.S.
2
Section 212.04(1)(b), F.S.
3
Section 212.03(1)(a), F.S.
4
Section 212.031, F.S.
5
Section 212.07(2), F.S.
BILL: SB 890 Page 2
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales
tax.6 A surtax applies to “all transactions occurring in the county which transactions are subject
to the state tax imposed on sales, use, services, rentals, admissions, and other transactions by [ch.
212, F.S.], and communications services as defined in ch. 202.”7 The discretionary sales surtax is
based on the tax rate imposed by the county where the taxable goods or services are sold or
delivered. Discretionary sales surtax rates currently levied vary by county in a range of 0.0 to 1.5
percent.8
Impact-resistant windows, doors, and garage doors are subject to Florida sales tax. However,
chapter 2022-97, Laws of Florida, exempted these items from the sales and use tax for a two-
year period. The exemption expires on July 1, 2024.
Impact-Resistant Windows, Doors, and Garage Doors
All of Florida’s coastline has been impacted by at least one hurricane. The southeast coastline is
extremely susceptible to a land-falling hurricane, followed by the panhandle. If a hurricane
makes landfall elsewhere in the state, the impacts can be felt hundreds of miles away.9
The biggest impact from hurricanes is wind. The highest winds occur just outside of the center of
the eye-wall and the strongest hurricanes can have winds in excess of 155 miles per hour. Roofs,
trees and power lines are frequently damaged.10
Retrofitting buildings with impact-resistant doors can help reduce the damage caused by
hurricanes. Windborne debris can easily break standard doors with unprotected glass.11 This
allows wind and water into the building, damaging its contents. In addition, the wind can break
the building apart from the inside by blowing off the roof and water damage can lead to
significant deterioration of the structural elements of the building.12 Installing impact-resistant
doors can help protect against windborne debris as they minimize the risk of breaking doors and
door glass.13 Impact-resistant doors must be third-party tested/rated and commonly include
reinforced frames, tighter weather stripping, and energy efficient glass.14
6
Section 212.055, F.S.
7
Section 212.054(2)(a), F.S.
8
Florida Department of Revenue, Discretionary Sales Surtax Information for Calendar Year 2024,
https://floridarevenue.com/Forms_library/current/dr15dss_24.pdf (last visited Jan. 12, 2024).
9
Florida State University Florida Climate Center, Hurricanes, https://climatecenter.fsu.edu/topics/hurricanes (last visited Jan.
12, 2024).
10
Id.
11
National Association of Home Builders, Retrofit Improvements, https://www.nahb.org/-/media/NAHB/advocacy/docs/top-
priorities/codes/retrofit-improvements/retrofit-improvements-impact-resistant-doors-2020.pdf (last visited Jan. 12, 2024).
12
Id.
13
Id.
14
Id.
BILL: SB 890 Page 3
III. Effect of Proposed Changes:
The bill exempts from the sales and use tax the retail sale of impact-resistant windows, doors,
and garage doors for two years between July 1, 2024 and June 30, 2026.
The Department of Revenue is authorized to adopt emergency rules.
The bill takes effect upon becoming a law.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, s. 18 of the Florida Constitution governs laws that require counties and
municipalities to spend funds, limit the ability of counties and municipalities to raise
revenue, or reduce the percentage of state tax shared with counties and municipalities.
Subsection (b) of Art. VII, s. 18 of the Florida Constitution provides that except upon
approval of each house of the Legislature by two-thirds vote of the membership, the
legislature may not enact, amend, or repeal any general law if the anticipated effect of
doing so would be to reduce the authority that municipalities or counties have to raise
revenue in the aggregate, as such authority existed on February 1, 1989. However, the
mandates requirements do not apply to laws having an insignificant impact,15,16 which is
$2.3 million or less for Fiscal Year 2024-2025.17
The REC has not reviewed the bill.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
Section 19 of Article VII, Florida Constitution requires increased taxes or fees to be
passed in a separate bill and by two-thirds vote of the membership of each house of the
Legislature. This bill does not increase any taxes or fees; therefore, the increased tax or
fee requirements do not apply.
15
FLA. CONST. art. VII, s. 18(d).
16
An insignificant fiscal impact is the amount not greater than the average statewide population for the applicable fiscal year
multiplied by $0.10. See Florida Senate Committee on Community Affairs, Interim Report 2012-115: Insignificant Impact,
(September 2011), http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf (last visited Jan.
12, 2024).
17
Based on the Demographic Estimating Conference’s estimated population adopted on July 11, 2023,
http://edr.state.fl.us/Content/conferences/population/archives/230711demographic.pdf (last visited Jan. 12, 2024).
BILL: SB 890 Page 4
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The REC has not reviewed the bill; however, a two-year sales and use tax exemption on
impact-resistant windows, doors, and garage doors was included in chapter 2022-97,
Laws of Florida. The REC determined that those exemptions would reduce General
Revenue Fund receipts by $158 million and would reduce local revenues by $46.7
million in Fiscal Year 2022-2023.
B. Private Sector Impact:
The private sector will experience reduced costs associated with the purchase of impact-
resistant windows, doors, and garage doors due to the sales and use tax exemption
provided in this legislation.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
None.
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 - 2024 SB 890
By Senator Boyd
20-00876-24 2024890__
1 A bill to be entitled
2 An act relating to taxation; exempting from sales and
3 use tax the retail sale of impact-resistant windows,
4 impact-resistant doors, and impact-resistant garage
5 doors during a specified timeframe; authorizing the
6 Department of Revenue to adopt emergency rules;
7 providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. (1) The tax levied under chapter 212, Florida
12 Statutes, may not be collected during the period from July 1,
13 2024, through June 30, 2026, on the retail sale of impact-
14 resistant windows, impact-resistant doors, and impact-resistant
15 garage doors.
16 (2) The Department of Revenue is authorized, and all
17 conditions are deemed met, to adopt emergency rules pursuant to
18 s. 120.54(4), Florida Statutes, for the purpose of implementing
19 this section.
20 Section 2. This act shall take effect upon becoming a law.
Page 1 of 1
CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
t/ te
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This form is part of the public record for this meeting. s-001 (08/10/2021)
The Florida Senate
APPEARANCE RECORD v $gc Bill Number orTopic
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(travel, meals, lodging, etc.),
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This form is part of the public record for this meeting. s-001 (08/10/2021)
The Florida Senate
Date
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Bill Number orTopic
Deliver both copies of this form to
( Senate professional staff conducting the meeting
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This form is part of the public record forthis meeting. s-001 (o8/1o/2o2't)
THE FLORIDA SENATE COMiIITIEES:
Banking and lnsurance, Chair
Aoriculture. Vice Chair
Tallahassee, Florida 32399-1100 Aflpropriatibns Committee on Agriculture, Environment,
and General Government
Finance and Tax
Fiscal Policy
Judiciary
Rules
SENATOR JIM BOYD
20th District
January 4,2024
Senator Jay Trumbull
Senate Committee on Commerce and Tourism
310 Knott Building
404 South Monroe Street
Tallahassee,FL 32399
Dear Chairman Trumbull:
I respectfully request Senate Bill 890: Taxation, be scheduled for a hearing in the Committee on
Commerce and Tourism, at your earliest convenience.
If I can assist you on this or any other matter, please do not hesitate to contact me.
I appreciate your consideration of this matter
Best regards,
ww
Jim Boyd
cc: Todd McKay
Renita Hayes
REPLY TO:
O 717 ManateeAvenueWes{, Bradenton, Florida 34205 (941)742'6445
D4l5SenaleBuilding,404SouthMonroeStreet,Tallahassee,Florida32399-1100 (850)487-5020
Senate's Website'. www.flsenate.gov
KATHLEEN PASSIDOMO DENNIS BAXLEY
President ot the Senate President Pro Tempore
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SB 612
INTRODUCER: Senator Hooper
SUBJECT: Building Construction Regulations and System Warranties
DATE: January 18, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Baird McKay CM Fav/CS
2. CA
3. RC
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 612 implements the following changes:
Expands the scope of work for specified HVAC system contractors to include specified line-
side repairs or replacements and the repair or replacement of specified components for
dedicated HVAC circuits with proper use of a circuit breaker lock.
Prohibits the conditioning of an HVAC system warranty on product registration and specifies
that the full length of such a warranty’s coverage term begins on the date a licensed
contractor installs the system.
The bill provides an effective date of July 1, 2024.
II. Present Situation:
Explanation of the Present Situation is provided in the Effect of Proposed Changes, below.
III. Effect of Proposed Changes:
Definitions of Contractor
Part I of Chapter 489, F.S., pertains to regulation of construction contracting. Section 489.105,
F.S., provides the definitions used throughout the part.
BILL: CS/SB 612 Page 2
“Contractor” means the person who is qualified for, and is only responsible for, the project
contracted for and means, except as exempted in this part, the person who, for compensation,
undertakes to, submits a bid to, or does himself or herself or by others construct, repair, alter,
remodel, add to, demolish, subtract from, or improve any building or structure, including related
improvements to real estate, for others or for resale to others; and whose job scope is
substantially similar to the job scope described in one of the paragraphs of this subsection. For
the purposes of regulation under this part, the term “demolish” applies only to demolition of steel
tanks more than 50 feet in height; towers more than 50 feet in height; other structures more than
50 feet in height; and all buildings or residences.1
“Class A air-conditioning contractor” means a contractor whose services are unlimited in the
execution of contracts requiring the experience, knowledge, and skill to install, maintain, repair,
fabricate, alter, extend, or design, if not prohibited by law, central air-conditioning, refrigeration,
heating, and ventilating systems, including duct work in connection with a complete system if
such duct work is performed by the contractor as necessary to complete an air-distribution
system, boiler and unfired pressure vessel systems, and all appurtenances, apparatus, or
equipment used in connection therewith, and any duct cleaning and equipment sanitizing that
requires at least a partial disassembling of the system; to install, maintain, repair, fabricate, alter,
extend, or design, if not prohibited by law, piping, insulation of pipes, vessels and ducts, pressure
and process piping, and pneumatic control piping; to replace, disconnect, or reconnect power
wiring on the load side of the dedicated existing electrical disconnect switch; to install,
disconnect, and reconnect low voltage heating, ventilating, and air-conditioning control wiring;
and to install a condensate drain from an air-conditioning unit to an existing safe waste or other
approved disposal other than a direct connection to a sanitary system. The scope of work for
such contractor also includes any excavation work incidental thereto, but does not include any
work such as liquefied petroleum or natural gas fuel lines within buildings, except for
disconnecting or reconnecting changeouts of liquefied petroleum or natural gas appliances within
buildings; potable water lines or connections thereto; sanitary sewer lines; swimming pool piping
and filters; or electrical power wiring. A Class A air-conditioning contractor may test and
evaluate central air-conditioning, refrigeration, heating, and ventilating systems, including duct
work; however, a mandatory licensing requirement is not established for the performance of
these specific services.2
“Class B air-conditioning contractor” means a contractor whose services are limited to 25 tons of
cooling and 500,000 Btu of heating in any one system in the execution of contracts requiring the
experience, knowledge, and skill to install, maintain, repair, fabricate, alter, extend, or design, if
not prohibited by law, central air-conditioning, refrigeration, heating, and ventilating systems,
including duct work in connection with a complete system only to the extent such duct work is
performed by the contractor as necessary to complete an air-distribution system being installed
under this classification, and any duct cleaning and equipment sanitizing that requires at least a
partial disassembling of the system; to install, maintain, repair, fabricate, alter, extend, or design,
if not prohibited by law, piping and insulation of pipes, vessels, and ducts; to replace, disconnect,
or reconnect power wiring on the load side of the dedicated existing electrical disconnect switch;
to install, disconnect, and reconnect low voltage heating, ventilating, and air-conditioning control
1
Section 498.105(3), F.S.
2
Section 489.105(3)(f), F.S.
BILL: CS/SB 612 Page 3
wiring; and to install a condensate drain from an air-conditioning unit to an existing safe waste or
other approved disposal other than a direct connection to a sanitary system. The scope of work
for such contractor also includes any excavation work incidental thereto, but does not include
any work such as liquefied petroleum or natural gas fuel lines within buildings, except for
disconnecting or reconnecting changeouts of liquefied petroleum or natural gas appliances within
buildings; potable water lines or connections thereto; sanitary sewer lines; swimming pool piping
and filters; or electrical power wiring. A Class B air-conditioning contractor may test and
evaluate central air-conditioning, refrigeration, heating, and ventilating systems, including duct
work; however, a mandatory licensing requirement is not established for the performance of
these specific services.3
“Mechanical contractor” means a contractor whose services are unlimited in the execution of
contracts requiring the experience, knowledge, and skill to install, maintain, repair, fabricate,
alter, extend, or design, if not prohibited by law, central air-conditioning, refrigeration, heating,
and ventilating systems, including duct work in connection with a complete system if such duct
work is performed by the contractor as necessary to complete an air-distribution system, boiler
and unfired pressure vessel systems, lift station equipment and piping, and all appurtenances,
apparatus, or equipment used in connection therewith, and any duct cleaning and equipment
sanitizing that requires at least a partial disassembling of the system; to install, maintain, repair,
fabricate, alter, extend, or design, if not prohibited by law, piping, insulation of pipes, vessels
and ducts, pressure and process piping, pneumatic control piping, gasoline tanks and pump
installations and piping for same, standpipes, air piping, vacuum line piping, oxygen lines,
nitrous oxide piping, ink and chemical lines, fuel transmission lines, liquefied petroleum gas
lines within buildings, and natural gas fuel lines within buildings; to replace, disconnect, or
reconnect power wiring on the load side of the dedicated existing electrical disconnect switch; to
install, disconnect, and reconnect low voltage heating, ventilating, and air-conditioning control
wiring; and to install a condensate drain from an air-conditioning unit to an existing safe waste or
other approved disposal other than a direct connection to a sanitary system. The scope of work
for such contractor also includes any excavation work incidental thereto, but does not include
any work such as potable water lines or connections thereto, sanitary sewer lines, swimming pool
piping and filters, or electrical power wiring. A mechanical contractor may test and evaluate
central air-conditioning, refrigeration, heating, and ventilating systems, including duct work;
however, a mandatory licensing requirement is not established for the performance of these
specific services.4
HVAC System Contractor Limitations
An electrical disconnect switch is a switch that isolates all wiring in a home or other structure, or
the wiring in a dedicated electrical circuit,5 from its power source.6 Electricity to a disconnect
3
Section 489.105(3)(g), F.S.
4
Section 489.105(3)(i), F.S.
5
A “dedicated electrical circuit” has its own circuit breaker and supports a single outlet; thus, only one electrically powered
device can draw power from that circuit at any given time. Harrison Electric, Inc. Dedicated Circuits: What They Are & How
to Determine If You Need Them, (August 16, 2021), available at https://harrison-electric.com/Blog/entryid/243/dedicated-
circuits-what-they-are-how-to-determine-if-you-need-them (last visited January 16, 2024).
6
Power will flow to the breaker so long as the power source is operational, but power will only flow from the breaker
through the structure if the disconnect switch is flipped to the “on” position. This is what is meant by “isolate.” American
Electrical, Inc., Switching to Safety: Exploring the Importance of Disconnect Switches in Electrical Systems, (June 20, 2023),
BILL: CS/SB 612 Page 4
switch is fed from the “load side,” or outgoing side, of the power source to the “line side,” or
incoming side, of the switch; electricity is then fed from the “load side” of the disconnect switch
to the “line side” of the device to be powered.7 The components of an electrical circuit, including
an electrical disconnect switch, are rated for a maximum flow of electrical current, measured in
amperes; the higher the ampere rating, the more continuous electrical current an electrical circuit
can handle without the risk of component deterioration or overheating.8
An HVAC unit must have a dedicated electrical disconnect switch, which switch must be located
within sight of and be readily accessible from the HVAC unit.9 Electricity runs from the power
source to the dedicated HVAC electrical disconnect switch through the switch’s “line side,” and
from the switch’s “load side” to the HVAC unit.
Under Florida law, only a licensed electrical contractor may perform “line side” work on the
dedicated HVAC electrical disconnect switch.10 Thus, HVAC system contractors, whether they
are class A, class B, or mechanical, are currently prohibited from replacing, disconnecting, or
reconnecting power wiring on the line side of the dedicated HVAC disconnect switch or from
repairing or replacing power wiring, disconnects, breakers, or fuses for dedicated HVAC circuits.
However, the Building Code requires that HVAC units and components thereof be installed in
compliance with the amperage requirements of the unit or component.11 Thus, where
components of a home or structure’s existing electrical circuit cannot handle the ampere
requirements of the new or repaired HVAC unit, a licensed electrical contractor is generally
needed to upgrade the insufficient components before the HVAC contractor may safely turn on
the new or repaired HVAC unit.
Section 1 amends the definition of “Class A air-conditioning contractor,” “Class B air-
conditioning contractor,” and “mechanical contractor” to allow them to replace, disconnect, or
reconnect power wiring on the line or load side of the dedicated existing electrical disconnect
switch on single-phase electrical systems, and to repair or replace power wiring, disconnects,
breakers, or fuses for dedicated HVAC circuits with proper use of a circuit breaker lock.
HVAC System Warranties
A warranty is an assurance that a manufacturer or seller makes about the condition of its
product.12 A warranty means that a manufacturer or seller will replace or repair the product under
certain instances. A warranty can be either express or implied.13
available at https://www.linkedin.com/pulse/switching-safety-exploring-importance-disconnect/ (last visited January 12,
2024).
7
Barbara Bellesi Zito, Line vs. Load Wire: What’s the Difference, (May 5, 2023), available at
https://www.angi.com/articles/line-vs-load-wire.htm (last visited January 16, 2024).
8
Dave Robbs, What are Amps, Watts, Volts, and Ohms, How Stuff Works, (October 3, 2022), available at
https://science.howstuffworks.com/environmental/energy/question501.htm (last visited January 16, 2024).
9
Section 301.10, Florida Building Code (7th Ed. 2020); s. 440.14 of NFPA 70, National Electrical Code (2023 ed.).
10
Section 489.505(12), F.S.
11
Section 301.10, Florida Building Code (7th Ed. 2020); s. 440.14 of NFPA 70, National Electrical Code (2023 ed.).
12 Will Kenton, Warranty Definition, Types, Example, and How It Works, Investopedia, (November 24, 2022), available at
https://www.investopedia.com/terms/w/warranty.asp (last visited January 16, 2024).
13
45 Fla. Jur 2d Sales and Exchanges of Goods § 156.
BILL: CS/SB 612 Page 5
An express warranty is a verbal or written assurance for the product.14 On the other hand, an
implied warranty is an unstated assurance that the product is made for its intended purpose.15 An
implied warranty is in addition to an express warranty. However, an implied warranty may be
negated or limited by an express warranty. There is no implied warranty if a seller states that the
product is “as is,” “with all faults,” or similar language.16
A manufacturer warranty attaches to the purchase of the product by the manufacturer. A
manufacturer warranty is considered a limited warranty because the warranty is only valid for a
certain time period after the purchase. These terms and conditions are created by the
manufacturer. Once the period of coverage is over, someone can purchase an extended warranty
under different coverage terms to extend the protection of the product beyond the terms and
conditions laid out in the manufacturer warranty.17
Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act (MMWA)18 is a federal law that governs consumer product
warranties. Passed in 1975, the Act requires manufacturers and sellers of consumer products to
provide consumers with detailed information about warranty coverage before and after the sale
of the warranted product.19
The MMWA defines three kinds of consumers:
A buyer of any consumer product.
Any person to whom such product is transferred during the duration of an implied or express
warranty applicable to the product.
Any other person who is entitled by the terms of such warranty or under applicable State law
to enforce the obligations of the warranty.20
Manufacturer Warranties for HVAC Systems in Florida
Most manufacturers require that an HVAC contractor purchase and install the HVAC system
before the consumer can register the HVAC system for the limited manufacturer warranty.
Generally, manufacturers provide a warranty for the HVAC system for 5 to 10 years. The
warranty covers parts that might fail such as the air compressor or furnace heat exchanger. The
14
“An express warranty is created by an affirmation of fact or promise made by the seller to the buyer that relates to the
goods, by any description of the goods that is made part of the basis of the bargain, or by any sample or model that is made
part of the basis of the bargain.” Section 672.313, F.S.
15
Section 672.314, F.S.
16
Section 672.316, F.S.
17
Tom Scott, Extended Warranties vs. Manufacturer Warranties: What's the Difference?, Fortegra, (July 9, 2019), available
at https://blog.fortegra.com/extended-warranties-vs.-manufacturer-warranties-whats-the-difference (last visited January 16,
2024).
18
15 U.S.C. §§ 2301-2312 (1975).
19
MMWA does not apply if a seller or manufacturer does not provide a warranty on their product. Jason Gordon, Magnuson
Moss Warranty Act – Explained, The Business Professor, (September 26, 2021), available at
https://thebusinessprofessor.com/en_US/consumer-law/magnuson-moss-warranty-act (last visited January 16, 2024).
20
O'Connor v. BMW of N. Am., LLC, 905 So. 2d 235, 236–37 (Fla. 2d DCA 2005); see also, § 2310(d) of MMMWA
provides that, “a consumer who is damaged by the failure of a supplier, warrantor, or service contractor to comply with any
obligation under this title, or under a written warranty, implied warranty, or service contract, may bring suit for damages…”.
BILL: CS/SB 612 Page 6
manufacturer will replace or repair any parts at no cost if the parts are covered under the
warranty.21
Before July 1, 2023, if a building or house that contained an HVAC system with a manufacturer
warranty was sold to another person, the warranty time could be cut short or not transfer to the
new owner. The assignment of the HVAC warranty to the new owner was contingent upon the
terms and conditions for the warranty. In Florida, most manufacturer warranties are tied to a
person instead of the property. Usually, the manufacturer warranty is tied to the original owner
and does not transfer when the property is sold unless the previous owner transfers it to the new
owner if that is an option in the warranty.
However, in 2023, the Florida Legislature enacted Chapter 2023-288, Laws of Florida, which, in
pertinent part, provided that an HVAC manufacturer’s warranty on a system that is a fixture to
the property runs with the property, not with the original purchaser; thus, in the sale of a
residential property, the manufacturer’s warranty automatically passes to the new owner.22
Further, the law specifies that:
The warranty continues in effect as if the new owner were the original purchaser of the
covered system or component;
A warrantor continues to be obligated under the terms of a manufacturer’s warranty
agreement for a warranty so transferred and may not charge a fee for such transfer;23 and
Such a transfer does not extend the remaining time of the warranty’s coverage period.24
Before July 1, 2023, an HVAC system manufacturer could refuse to honor the terms of an
HVAC system warranty if the purchaser of the HVAC system or a component covered by the
warranty did not register the warranty with the manufacturer. Pursuant to the law enacted in
2023, a manufacturer’s HVAC warranty is deemed registered with the manufacturer if a
contractor licensed under Part I of Ch. 489, F.S.:
Installs the new HVAC system; and
Provides the manufacturer with the date of issuance of the certificate of occupancy for
installations relating to new construction, or the serial number of the HVAC system for
installations relating to existing construction, as applicable.25
Such a contractor must document the installation through an invoice or a receipt and give the
invoice or receipt to the customer.26
Section 2 amends s. 559.956, F.S., to remove language:
Indicating that an HVAC system manufacturer’s warranty is deemed registered if a licensed
contractor installs the new HVAC system and provides the manufacturer with the date of
21
Bryan Carnahan, HVAC Warranties and You: What Are They, and Why Should You Register Your Product?, Fire & Ice
Heating and Air Conditioning, Inc., (July 1, 2022), available at https://indoortemp.com/resources/hvac-warranties-and-
product-registration (last visited January 16, 2024).
22
Section 559.956(1), F.S.
23
Id.
24
Section 559.956(2), F.S.
25
Section 559.956(4), F.S.
26
Section 559.956(5), F.S.
BILL: CS/SB 612 Page 7
issuance of the certificate of occupancy for installations relating to new construction or the
serial number of the HVAC system for installations relating to existing construction.
Requiring a licensed contractor who installs a new HVAC system to document the
installation through an invoice or receipt and provide the invoice or receipt to the customer.
Section 3 creates s. 559.957, F.S., to specify that the full length of a manufacturer’s,
distributor’s, or retailer’s HVAC system or system component warranty is effective in Florida on
the date of installation if installed by a contractor licensed under Part I of Ch. 48, F.S. Under this
new section created by the bill, if an HVAC system or system component manufacturer,
distributor, or retailer provides a warranty or product registration card form, or an electronic,
online warrant or product registration form, the card or form must contain the following
information, which information must be displayed in a clear and conspicuous manner:
The card or form is for the product registration.
Failure to complete and return the card or form does not diminish any warranty rights or
decrease the warranty length.
Any offered manufacturer’s, distributor’s, or retailer’s HVAC system or system component
warranty may not be in any way conditioned upon the product registration.
Relatedly, the bill amends s. 559.956, F.S., to specify that an HVAC system manufacturer’s
warranty may not be in any way conditioned upon product registration. This provision applies if:
A sale of a residential property that includes an HVAC system as a fixture occurs on or after
July 1, 2024; and
A manufacturer’s warranty is still in effect on the HVAC system or a system component.
Effective Date
Section 4 specifies an effective date of July 1, 2024.
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.
BILL: CS/SB 612 Page 8
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
489.105, 553.775, 559.956, 559.957
This bill substantially amends sections 489.105 and 559.956 of the Florida Statutes.
The bill creates section 559.957 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on January 16, 2024:
The committee substitute removes the provision authorizing an attorney fee award to the
prevailing party in a Building Code or Accessibility Code interpretation challenge. It also
clarifies that an HVAC contractor authorized by the bill can perform specified work on
the line side of the dedicated existing electrical disconnect switch on a single-phase
electrical system, and to repair or replace specified components for dedicated HVAC
circuits with proper use of a circuit breaker lock.
B. Amendments:
None.
BILL: CS/SB 612 Page 9
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2024 COMMITTEE AMENDMENT Florida Senate - 2024 COMMITTEE AMENDMENT
Bill No. SB 612 Bill No. SB 612
Ì645676QÎ645676 Ì645676QÎ645676
LEGISLATIVE ACTION 11 such contractor also includes any excavation work incidental
Senate . House 12 thereto, but does not include any work such as liquefied
Comm: RCS . 13 petroleum or natural gas fuel lines within buildings, except for
01/16/2024 . 14 disconnecting or reconnecting changeouts of liquefied petroleum
. 15 or natural gas appliances within buildings; potable water lines
. 16 or connections thereto; sanitary sewer lines; swimming pool
. 17 piping and filters; or electrical power wiring. A Class A air-
18 conditioning contractor may test and evaluate central air-
19 conditioning, refrigeration, heating, and ventilating systems,
20 including duct work; however, a mandatory licensing requirement
21 is not established for the performance of these specific
22 services.
23 (g) “Class B air-conditioning contractor” means a
24 contractor whose services are limited to 25 tons of cooling and
25 500,000 Btu of heating in any one system in the execution of
The Committee on Commerce and Tourism (Hooper) recommended the 26 contracts requiring the experience, knowledge, and skill to
following: 27 install, maintain, repair, fabricate, alter, extend, or design,
28 if not prohibited by law, central air-conditioning,
1 Senate Amendment 29 refrigeration, heating, and ventilating systems, including duct
2 30 work in connection with a complete system only to the extent
3 Delete lines 65 - 141 31 such duct work is performed by the contractor as necessary to
4 and insert: 32 complete an air-distribution system being installed under this
5 fuses for dedicated HVAC circuits with proper use of a circuit 33 classification, and any duct cleaning and equipment sanitizing
6 breaker lock; to install, disconnect, and reconnect low voltage 34 that requires at least a partial disassembling of the system; to
7 heating, ventilating, and air-conditioning control wiring; and 35 install, maintain, repair, fabricate, alter, extend, or design,
8 to install a condensate drain from an air-conditioning unit to 36 if not prohibited by law, piping and insulation of pipes,
9 an existing safe waste or other approved disposal other than a 37 vessels, and ducts; to replace, disconnect, or reconnect power
10 direct connection to a sanitary system. The scope of work for 38 wiring on the line or load side of the dedicated existing
39 electrical disconnect switch on single-phase electrical systems;
Page 1 of 4 Page 2 of 4
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Florida Senate - 2024 COMMITTEE AMENDMENT Florida Senate - 2024 COMMITTEE AMENDMENT
Bill No. SB 612 Bill No. SB 612
Ì645676QÎ645676 Ì645676QÎ645676
40 to repair or replace power wiring, disconnects, breakers, or 69 connection therewith, and any duct cleaning and equipment
41 fuses for dedicated HVAC circuits with proper use of a circuit 70 sanitizing that requires at least a partial disassembling of the
42 breaker lock; to install, disconnect, and reconnect low voltage 71 system; to install, maintain, repair, fabricate, alter, extend,
43 heating, ventilating, and air-conditioning control wiring; and 72 or design, if not prohibited by law, piping, insulation of
44 to install a condensate drain from an air-conditioning unit to 73 pipes, vessels and ducts, pressure and process piping, pneumatic
45 an existing safe waste or other approved disposal other than a 74 control piping, gasoline tanks and pump installations and piping
46 direct connection to a sanitary system. The scope of work for 75 for same, standpipes, air piping, vacuum line piping, oxygen
47 such contractor also includes any excavation work incidental 76 lines, nitrous oxide piping, ink and chemical lines, fuel
48 thereto, but does not include any work such as liquefied 77 transmission lines, liquefied petroleum gas lines within
49 petroleum or natural gas fuel lines within buildings, except for 78 buildings, and natural gas fuel lines within buildings; to
50 disconnecting or reconnecting changeouts of liquefied petroleum 79 replace, disconnect, or reconnect power wiring on the line or
51 or natural gas appliances within buildings; potable water lines 80 load side of the dedicated existing electrical disconnect switch
52 or connections thereto; sanitary sewer lines; swimming pool 81 on single-phase electrical systems; to repair or replace power
53 piping and filters; or electrical power wiring. A Class B air- 82 wiring, disconnects, breakers, or fuses for dedicated HVAC
54 conditioning contractor may test and evaluate central air- 83 circuits with proper use of a circuit breaker lock; to install,
55 conditioning, refrigeration, heating, and ventilating systems, 84 disconnect, and reconnect low voltage
56 including duct work; however, a mandatory licensing requirement
57 is not established for the performance of these specific
58 services.
59 (i) “Mechanical contractor” means a contractor whose
60 services are unlimited in the execution of contracts requiring
61 the experience, knowledge, and skill to install, maintain,
62 repair, fabricate, alter, extend, or design, if not prohibited
63 by law, central air-conditioning, refrigeration, heating, and
64 ventilating systems, including duct work in connection with a
65 complete system if such duct work is performed by the contractor
66 as necessary to complete an air-distribution system, boiler and
67 unfired pressure vessel systems, lift station equipment and
68 piping, and all appurtenances, apparatus, or equipment used in
Page 3 of 4 Page 4 of 4
1/12/2024 10:27:40 AM 577-02077-24 1/12/2024 10:27:40 AM 577-02077-24
Florida Senate - 2024 COMMITTEE AMENDMENT
Bill No. SB 612
Ì568094CÎ568094
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
01/16/2024 .
.
.
.
The Committee on Commerce and Tourism (Hooper) recommended the
following:
1 Senate Amendment(with title amendment)
2
3 Delete lines 155 - 295.
4
5 ================= T I T L E A M E N D M E N T ================
6 And the title is amended as follows:
7 Delete lines 4 - 8
8 and insert:
9 revising definitions; amending s. 559.956, F.S.;
Page 1 of 1
1/12/2024 10:25:07 AM 577-02076-24
Florida Senate - 2024 SB 612 Florida Senate - 2024 SB 612
By Senator Hooper
21-00589A-24 2024612__ 21-00589A-24 2024612__
1 A bill to be entitled 30 is only responsible for, the project contracted for and means,
2 An act relating to building construction regulations 31 except as exempted in this part, the person who, for
3 and system warranties; amending s. 489.105, F.S.; 32 compensation, undertakes to, submits a bid to, or does himself
4 revising definitions; amending s. 553.775, F.S.; 33 or herself or by others construct, repair, alter, remodel, add
5 authorizing prevailing parties in proceedings on 34 to, demolish, subtract from, or improve any building or
6 interpretations of the Florida Building Code and the 35 structure, including related improvements to real estate, for
7 Florida Accessibility Code for Building Construction 36 others or for resale to others; and whose job scope is
8 to recover attorney fees; amending s. 559.956, F.S.; 37 substantially similar to the job scope described in one of the
9 providing that certain provisions governing the 38 paragraphs of this subsection. For the purposes of regulation
10 transfer of HVAC manufacturer’s warranties apply to 39 under this part, the term “demolish” applies only to demolition
11 transfers made on or after a specified date; 40 of steel tanks more than 50 feet in height; towers more than 50
12 prohibiting HVAC manufacturer’s warranties from being 41 feet in height; other structures more than 50 feet in height;
13 conditioned upon the product registration; providing 42 and all buildings or residences. Contractors are subdivided into
14 applicability; removing provisions relating to HVAC 43 two divisions, Division I, consisting of those contractors
15 manufacturer’s warranty registration; creating s. 44 defined in paragraphs (a)-(c), and Division II, consisting of
16 559.957, F.S.; providing the effective date for 45 those contractors defined in paragraphs (d)-(q):
17 certain HVAC system and component warranties under a 46 (f) “Class A air-conditioning contractor” means a
18 specified circumstance; providing required information 47 contractor whose services are unlimited in the execution of
19 for warranty and product registration cards and forms; 48 contracts requiring the experience, knowledge, and skill to
20 prohibiting HVAC system and component warranties from 49 install, maintain, repair, fabricate, alter, extend, or design,
21 being conditioned upon product registration; providing 50 if not prohibited by law, central air-conditioning,
22 an effective date. 51 refrigeration, heating, and ventilating systems, including duct
23 52 work in connection with a complete system if such duct work is
24 Be It Enacted by the Legislature of the State of Florida: 53 performed by the contractor as necessary to complete an air-
25 54 distribution system, boiler and unfired pressure vessel systems,
26 Section 1. Paragraphs (f), (g), and (i) of subsection (3) 55 and all appurtenances, apparatus, or equipment used in
27 of section 489.105, Florida Statutes, are amended to read: 56 connection therewith, and any duct cleaning and equipment
28 489.105 Definitions.—As used in this part: 57 sanitizing that requires at least a partial disassembling of the
29 (3) “Contractor” means the person who is qualified for, and 58 system; to install, maintain, repair, fabricate, alter, extend,
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59 or design, if not prohibited by law, piping, insulation of 88 refrigeration, heating, and ventilating systems, including duct
60 pipes, vessels and ducts, pressure and process piping, and 89 work in connection with a complete system only to the extent
61 pneumatic control piping; to replace, disconnect, or reconnect 90 such duct work is performed by the contractor as necessary to
62 power wiring on the line or load side of the dedicated existing 91 complete an air-distribution system being installed under this
63 electrical disconnect switch on single-phase electrical systems; 92 classification, and any duct cleaning and equipment sanitizing
64 to repair or replace power wiring, disconnects, breakers, or 93 that requires at least a partial disassembling of the system; to
65 fuses for dedicated HVAC circuits; to install, disconnect, and 94 install, maintain, repair, fabricate, alter, extend, or design,
66 reconnect low voltage heating, ventilating, and air-conditioning 95 if not prohibited by law, piping and insulation of pipes,
67 control wiring; and to install a condensate drain from an air- 96 vessels, and ducts; to replace, disconnect, or reconnect power
68 conditioning unit to an existing safe waste or other approved 97 wiring on the line or load side of the dedicated existing
69 disposal other than a direct connection to a sanitary system. 98 electrical disconnect switch on single-phase electrical systems;
70 The scope of work for such contractor also includes any 99 to repair or replace power wiring, disconnects, breakers, or
71 excavation work incidental thereto, but does not include any 100 fuses for dedicated HVAC circuits; to install, disconnect, and
72 work such as liquefied petroleum or natural gas fuel lines 101 reconnect low voltage heating, ventilating, and air-conditioning
73 within buildings, except for disconnecting or reconnecting 102 control wiring; and to install a condensate drain from an air-
74 changeouts of liquefied petroleum or natural gas appliances 103 conditioning unit to an existing safe waste or other approved
75 within buildings; potable water lines or connections thereto; 104 disposal other than a direct connection to a sanitary system.
76 sanitary sewer lines; swimming pool piping and filters; or 105 The scope of work for such contractor also includes any
77 electrical power wiring. A Class A air-conditioning contractor 106 excavation work incidental thereto, but does not include any
78 may test and evaluate central air-conditioning, refrigeration, 107 work such as liquefied petroleum or natural gas fuel lines
79 heating, and ventilating systems, including duct work; however, 108 within buildings, except for disconnecting or reconnecting
80 a mandatory licensing requirement is not established for the 109 changeouts of liquefied petroleum or natural gas appliances
81 performance of these specific services. 110 within buildings; potable water lines or connections thereto;
82 (g) “Class B air-conditioning contractor” means a 111 sanitary sewer lines; swimming pool piping and filters; or
83 contractor whose services are limited to 25 tons of cooling and 112 electrical power wiring. A Class B air-conditioning contractor
84 500,000 Btu of heating in any one system in the execution of 113 may test and evaluate central air-conditioning, refrigeration,
85 contracts requiring the experience, knowledge, and skill to 114 heating, and ventilating systems, including duct work; however,
86 install, maintain, repair, fabricate, alter, extend, or design, 115 a mandatory licensing requirement is not established for the
87 if not prohibited by law, central air-conditioning, 116 performance of these specific services.
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117 (i) “Mechanical contractor” means a contractor whose 146 such contractor also includes any excavation work incidental
118 services are unlimited in the execution of contracts requiring 147 thereto, but does not include any work such as potable water
119 the experience, knowledge, and skill to install, maintain, 148 lines or connections thereto, sanitary sewer lines, swimming
120 repair, fabricate, alter, extend, or design, if not prohibited 149 pool piping and filters, or electrical power wiring. A
121 by law, central air-conditioning, refrigeration, heating, and 150 mechanical contractor may test and evaluate central air-
122 ventilating systems, including duct work in connection with a 151 conditioning, refrigeration, heating, and ventilating systems,
123 complete system if such duct work is performed by the contractor 152 including duct work; however, a mandatory licensing requirement
124 as necessary to complete an air-distribution system, boiler and 153 is not established for the performance of these specific
125 unfired pressure vessel systems, lift station equipment and 154 services.
126 piping, and all appurtenances, apparatus, or equipment used in 155 Section 2. Paragraph (c) of subsection (3) of section
127 connection therewith, and any duct cleaning and equipment 156 553.775, Florida Statutes, is amended to read:
128 sanitizing that requires at least a partial disassembling of the 157 553.775 Interpretations.—
129 system; to install, maintain, repair, fabricate, alter, extend, 158 (3) The following procedures may be invoked regarding
130 or design, if not prohibited by law, piping, insulation of 159 interpretations of the Florida Building Code or the Florida
131 pipes, vessels and ducts, pressure and process piping, pneumatic 160 Accessibility Code for Building Construction:
132 control piping, gasoline tanks and pump installations and piping 161 (c) The commission shall review decisions of local building
133 for same, standpipes, air piping, vacuum line piping, oxygen 162 officials and local enforcement agencies regarding
134 lines, nitrous oxide piping, ink and chemical lines, fuel 163 interpretations of the Florida Building Code or the Florida
135 transmission lines, liquefied petroleum gas lines within 164 Accessibility Code for Building Construction after the local
136 buildings, and natural gas fuel lines within buildings; to 165 board of appeals has considered the decision, if such board
137 replace, disconnect, or reconnect power wiring on the line or 166 exists, and if such appeals process is concluded within 25
138 load side of the dedicated existing electrical disconnect switch 167 business days.
139 on single-phase electrical systems; to repair or replace power 168 1. The commission shall coordinate with the Building
140 wiring, disconnects, breakers, or fuses for dedicated HVAC 169 Officials Association of Florida, Inc., to designate a panel
141 circuits; to install, disconnect, and reconnect low voltage 170 composed of seven members to hear requests to review decisions
142 heating, ventilating, and air-conditioning control wiring; and 171 of local building officials. Five members must be licensed as
143 to install a condensate drain from an air-conditioning unit to 172 building code administrators under part XII of chapter 468, one
144 an existing safe waste or other approved disposal other than a 173 member must be licensed as an architect under chapter 481, and
145 direct connection to a sanitary system. The scope of work for 174 one member must be licensed as an engineer under chapter 471.
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Florida Senate - 2024 SB 612 Florida Senate - 2024 SB 612
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175 Each member must have experience interpreting or enforcing 204 which are being interpreted by the local building official.
176 provisions of the Florida Building Code and the Florida 205 e. A statement of the interpretation given to provisions of
177 Accessibility Code for Building Construction. 206 the Florida Building Code or the Florida Accessibility Code for
178 2. Requests to review a decision of a local building 207 Building Construction by the local building official and the
179 official interpreting provisions of the Florida Building Code or 208 manner in which the interpretation was rendered.
180 the Florida Accessibility Code for Building Construction may be 209 f. A statement of the interpretation that the petitioner
181 initiated by any substantially affected person, including an 210 contends should be given to the provisions of the Florida
182 owner or builder subject to a decision of a local building 211 Building Code or the Florida Accessibility Code for Building
183 official or an association of owners or builders having members 212 Construction and a statement supporting the petitioner’s
184 who are subject to a decision of a local building official. In 213 interpretation.
185 order to initiate review, the substantially affected person must 214 g. Space for the local building official to respond in
186 file a petition with the commission. The commission shall adopt 215 writing. The space shall, at a minimum, require the local
187 a form for the petition, which shall be published on the 216 building official to respond by providing a statement admitting
188 Building Code Information System. The form shall, at a minimum, 217 or denying the statements contained in the petition and a
189 require the following: 218 statement of the interpretation of the provisions of the Florida
190 a. The name and address of the county or municipality in 219 Building Code or the Florida Accessibility Code for Building
191 which provisions of the Florida Building Code or the Florida 220 Construction which the local jurisdiction or the local building
192 Accessibility Code for Building Construction are being 221 official contends is correct, including the basis for the
193 interpreted. 222 interpretation.
194 b. The name and address of the local building official who 223 3. The petitioner shall submit the petition to the local
195 has made the interpretation being appealed. 224 building official, who shall place the date of receipt on the
196 c. The name, address, and telephone number of the 225 petition. The local building official shall respond to the
197 petitioner; the name, address, and telephone number of the 226 petition in accordance with the form and shall return the
198 petitioner’s representative, if any; and an explanation of how 227 petition along with his or her response to the petitioner within
199 the petitioner’s substantial interests are being affected by the 228 5 days after receipt, exclusive of Saturdays, Sundays, and legal
200 local interpretation of the Florida Building Code or the Florida 229 holidays. The petitioner may file the petition with the
201 Accessibility Code for Building Construction. 230 commission at any time after the local building official
202 d. A statement of the provisions of the Florida Building 231 provides a response. If no response is provided by the local
203 Code or the Florida Accessibility Code for Building Construction 232 building official, the petitioner may file the petition with the
Page 7 of 13 Page 8 of 13
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Florida Senate - 2024 SB 612 Florida Senate - 2024 SB 612
21-00589A-24 2024612__ 21-00589A-24 2024612__
233 commission 10 days after submission of the petition to the local 262 proceeding conducted in accordance with subparagraph 7. The
234 building official and shall note that the local building 263 prevailing party is entitled to the recovery of all attorney
235 official did not respond. 264 fees accrued from the losing party.
236 4. Upon receipt of a petition that meets the requirements 265 6. It is the intent of the Legislature that review
237 of subparagraph 2., the commission shall immediately provide 266 proceedings be completed within 21 days after the date that a
238 copies of the petition to the panel, and the commission shall 267 petition seeking review is filed with the commission, and the
239 publish the petition, including any response submitted by the 268 time periods set forth in this paragraph may be waived only upon
240 local building official, on the Building Code Information System 269 consent of all parties.
241 in a manner that allows interested persons to address the issues 270 7. Any substantially affected person may appeal an
242 by posting comments. 271 interpretation rendered by the panel by filing a petition with
243 5. The panel shall conduct proceedings as necessary to 272 the commission. Such appeals shall be initiated in accordance
244 resolve the issues; shall give due regard to the petitions, the 273 with chapter 120 and the uniform rules of procedure and must be
245 response, and to comments posed on the Building Code Information 274 filed within 30 days after publication of the interpretation on
246 System; and shall issue an interpretation regarding the 275 the Building Code Information System or in the Florida
247 provisions of the Florida Building Code or the Florida 276 Administrative Register. Hearings shall be conducted pursuant to
248 Accessibility Code for Building Construction within 21 days 277 chapter 120 and the uniform rules of procedure. Decisions of the
249 after the filing of the petition. The panel shall render a 278 commission are subject to judicial review pursuant to s. 120.68.
250 determination based upon the Florida Building Code or the 279 The final order of the commission is binding upon the parties
251 Florida Accessibility Code for Building Construction or, if the 280 and upon all jurisdictions subject to the Florida Building Code
252 code is ambiguous, the intent of the code. The panel’s 281 or the Florida Accessibility Code for Building Construction.
253 interpretation shall be provided to the commission, which shall 282 8. The burden of proof in any proceeding initiated in
254 publish the interpretation on the Building Code Information 283 accordance with subparagraph 7. is on the party who initiated
255 System and in the Florida Administrative Register. The 284 the appeal.
256 interpretation shall be considered an interpretation entered by 285 9. In any review proceeding initiated in accordance with
257 the commission, and shall be binding upon the parties and upon 286 this paragraph, including any proceeding initiated in accordance
258 all jurisdictions subject to the Florida Building Code or the 287 with subparagraph 7., the fact that an owner or builder has
259 Florida Accessibility Code for Building Construction, unless it 288 proceeded with construction may not be grounds for determining
260 is superseded by a declaratory statement issued by the Florida 289 an issue to be moot if the issue is one that is likely to arise
261 Building Commission or by a final order entered after an appeal 290 in the future.
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291 320 system as a fixture to the property occurs on or after July 1,
292 This paragraph provides the exclusive remedy for addressing 321 2024.
293 requests to review local interpretations of the Florida Building 322 (b) A manufacturer’s warranty is still in effect on the
294 Code or the Florida Accessibility Code for Building Construction 323 HVAC system or a component of the system. A manufacturer’s
295 and appeals from review proceedings. 324 warranty for an HVAC system is deemed registered with the
296 Section 3. Section 559.956, Florida Statutes, is amended to 325 manufacturer if a contractor licensed under part I of chapter
297 read: 326 489:
298 559.956 Registrations and Transfers of heating, 327 (a) Installs the new HVAC system; and
299 ventilation, and air-conditioning system manufacturer 328 (b) Provides the manufacturer of the HVAC system with the
300 warranties; required contractor documentation.— 329 date of the issuance of the certificate of occupancy for
301 (1) If a residential real property that includes a heating, 330 installations relating to new construction, or the serial number
302 ventilation, and air-conditioning (HVAC) system as a fixture to 331 of the HVAC system for installations relating to existing
303 the property is conveyed to a new owner on or after July 1, 332 construction, as applicable.
304 2024, a manufacturer’s warranty in effect on that system or a 333 (5) A contractor licensed under part I of chapter 489 who
305 component of that system: 334 installs a new HVAC system must document the installation
306 (a) Is automatically transferred to the new owner; and 335 through an invoice or a receipt and provide the invoice or
307 (b) Continues in effect as if the new owner was the 336 receipt to the customer.
308 original purchaser of such system or component, as applicable. 337 Section 4. Section 559.957, Florida Statutes, is created to
309 (2) A warrantor continues to be obligated under the terms 338 read:
310 of a manufacturer’s warranty agreement for a warranty 339 559.957 Registration of heating, ventilation, and air-
311 transferred under this section and may not charge a fee for the 340 conditioning systems; prohibition against warranty conditioned
312 transfer of the warranty. 341 upon registration.—
313 (3) The transfer of a manufacturer’s warranty under this 342 (1) The full length of a manufacturer’s, distributor’s, or
314 section does not extend the remaining term of the warranty. 343 retailer’s warranty of a heating, ventilation, and air-
315 (4) A manufacturer’s warranty of an HVAC system or a 344 conditioning (HVAC) system or any component of the system is
316 component of the system may not be in any way conditioned upon 345 effective in this state on the date of installation if installed
317 the product registration. 346 by a contractor licensed under part I of chapter 489.
318 (5) This section applies if: 347 (2) If a manufacturer, distributor, or retailer of an HVAC
319 (a) A sale of a residential property that includes an HVAC 348 system or any component of the system provides a warranty or
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Florida Senate - 2024 SB 612
21-00589A-24 2024612__
349 product registration card or form, or an electronic, online
350 warranty or product registration form, the card or form must
351 contain the following information, displayed in a clear and
352 conspicuous manner:
353 (a) The card or form is for the product registration.
354 (b) Failure to complete and return the card or form does
355 not diminish any warranty rights or decrease the warranty
356 length.
357 (3) Any offered manufacturer’s, distributor’s, or
358 retailer’s warranty of an HVAC system or a component of the
359 system may not be in any way conditioned upon the product
360 registration.
361 Section 5. This act shall take effect July 1, 2024.
Page 13 of 13
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The Florida Senate
{ItejlL? €tL
I I Meeting Date Bill Number orTopic
Deliver both copies of this form to
(or*r*-z a Tr,^;'n*' Senate professional staff conducting the meeting
Committee Amendment Barcode (if applicable)
Name €J**'\ K'-\ ) Phone €ro -ff\-ffiqtt
Address Email
Street
City State Zip
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PLEASE CHECK ONE OFTHE FOLLOWING:
I am appearing without
compensation or sponsorship.
K lam a registered lobbyist,
representing
I am not a lobbyist, but received
something ofvalue for my appearance
(travel, meals, lodging. etc.),
Fla.lJ^ Yl"{"" 'l
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This form is part of the public record for this meeting. s-001 (o8/10/2021)
The Florida Senate
Committee Agenda Request
To: Senator Jay Trumbull, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: December 13,2023
I respectfully request that Senate Blill#612, relating to Building Construction Regulations and
System Warranties, be placed on the:
X committee agenda at your earliest possible convenience.
next committee agenda.
Senator Ed Hooper
Florida Senate, District 2l
File signed originalwith 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 842
INTRODUCER: Senator Perry
SUBJECT: Florida Kratom Consumer Protection Act
DATE: January 12, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Baird McKay CM Favorable
2. AEG
3. FP
I. Summary:
SB 842 amends the Florida Kratom Consumer Protection Act to provide definitions, certain
prohibitions, and administrative fines for violations of kratom product standards.
The bill defines “kratom extract” and “processor” and provides that a processor may not sell,
prepare, or distribute a kratom product that:
Is adulterated 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 1
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, or distribute 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.
A processor who violates requirements related to product standards is subject to an
administrative fine, unless the processor relied in good faith upon the representation of a
manufacturer, processor, packer, or distributor of the kratom product.
BILL: SB 842 Page 2
II. Present Situation:
Florida Kratom Consumer Protection Act of 2023
In 2023, the Legislature enacted the Florida Kratom Consumer Protection Act,1 which made it
unlawful to sell, deliver, barter, furnish, or give, directly or indirectly, any kratom product to a
person under 21 years of age. The Department of Agriculture and Consumer Services (DACS)
was required and did adopt rules to administer the act.2
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.3 The leaves are
crushed and then smoked, brewed with tea, or placed into gel capsules.4 Consumption of kratom
leaves can produce stimulant and sedative effects, and may also lead to psychotic symptoms. 5
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.6 Low doses
of kratom are said to produce a stimulant effect, while higher doses may produce an opioid-like
effect.7 Additionally, research points to the potential for further development of mitragynine and
the use of kratom as a harm reduction agent.8 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.9
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.10 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
1
Section 500.92, F.S.
2
Fla. Admin. Code R. 5K-4.030.
3
Drug Enforcement Administration, Kratom (April 2020), available at https://www.dea.gov/sites/default/files/2020-
06/Kratom-2020_0.pdf (last visited January 12, 2024).
4
Id.
5
Id.
6
See Dimy Fluyau and Neelambika Revedigar, Biochemical Benefits, Diagnosis, and Clinical Risks Evaluation of Kratom,
Frontiers in Psychiatry Journal Volume 8 (April 24, 2017) available at
https://www.frontiersin.org/articles/10.3389/fpsyt.2017.00062/full (last visited January 12, 2024).
7
Id.
8
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) available at https://pubmed.ncbi.nlm.nih.gov/31308789/ (last visited
January 12, 2024).
9
Id. See also Drugs Identified in Deceased Persons by Florida Medical Examiners, FDLE (May 2022), available at
https://www.fdle.state.fl.us/MEC/Publications-and-Forms/Documents/Drugs-in-Deceased-Persons/2021-Interim-Drug-
Report-FINAL.aspx (last visited March 7, 2023). In May of 2022 the Florida Department of Law Enforcement published its
2021 Interim Report, which found a 36% rise in kratom-involved deaths over the first half of 2021.
10
See Sarasota, FL., Code of Ordinances, Sec. 62-351 (2014).
BILL: SB 842 Page 3
Alabama,11 Arkansas,12 Indiana,13 Rhode Island,14 Vermont,15 and Wisconsin.16 In 12 other states
the possession, sale, manufacture, and distribution of kratom products is regulated.17
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,18 in May of 2021, the FDA
announced the seizure of around 37,500 tons of adulterated kratom in Florida, worth an
estimated $1.3 million.19 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.20
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.21 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.22 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.23
III. Effect of Proposed Changes:
The bill amends the Florida Kratom Consumer Protection Act by specifying and using the
following definitions:
11
See Alabama Public Health, Controlled Substance List (Jan. 20, 2021), available at
https://www.alabamapublichealth.gov/blog/assets/controlledsubstanceslist.pdf (last visited January 12, 2024).
12
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 January 12, 2024).
13
See IC 35-31.5-2-321.
14
See Rhode Island Dept. of Health, Notice of Designation of Controlled Substance (May 31, 2017), available at
https://docs.wixstatic.com/ugd/9ba5da_9836aee2b9f04a30b55fe480fe3c6ff4.pdf. (last visited January 12, 2024).
15
See Vt. Admin. Code 12-5-23:4.0.
16
See W.S.A. 961.14.
17
See Regulation of Kratom in America: Update (September 2022), available at Kratom Fact Sheet (legislativeanalysis.org)
(last visited January 12, 2024).
18
The import alert labels kratom as an adultering ingredient. See Food and Drug Administration, Import Alert 54-15, Import
Alert 54-15 (fda.gov) (last visited March 3, 2023) The FDA labeled kratom as adulterating based on the absence of a history
of use or other evidence of safety establishing that kratom will reasonably be expected to be safe as a dietary ingredient,
kratom and kratom-containing dietary supplements and bulk dietary ingredients are adulterated because they contain a new
dietary ingredient for which there is inadequate information to provide reasonable assurance that such ingredient does not
present a significant or unreasonable risk of illness or injury.
19
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 January 12, 2024).
20
Id.
21
Id.
22
Id.
23
Id.
BILL: SB 842 Page 4
“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;
“Processor” means a person who sells, prepares, manufactures, distributes, or maintains
kratom products.
The bill also 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 controlled substance listed in s. 893.03, F.S.;
Contains a level of 7-hydroxymitragynine in the alkaloid fraction which is greater than 1
percent of the alkaloid composition of the product;
Contains a synthetic alkaloid, including, but not limited to, synthetic mitragynine, synthetic
7-hydroxymitragynine, or any other synthetically derived compound of the plant Mitragyna
speciosa;
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-NF24
chapter 467.25
The bill provides that a processor who violates the kratom product standards provisions 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 the kratom product standards provisions 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, 2024.
24
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.
25
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 January 12, 2024).
BILL: SB 842 Page 5
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
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:
There will potentially be an increase in administrative fines collected by the DACS.
Additionally, the DACS will likely see an increase in regulatory costs.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 500.92 of the Florida Statutes.
BILL: SB 842 Page 6
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2024 SB 842 Florida Senate - 2024 SB 842
By Senator Perry
9-00471-24 2024842__ 9-00471-24 2024842__
1 A bill to be entitled 30 manufactures, distributes, or maintains kratom products.
2 An act relating to the Florida Kratom Consumer 31 (3) A processor may not sell, prepare, distribute, or
3 Protection Act; amending s. 500.92, F.S.; defining 32 expose for sale:
4 terms; prohibiting processors from selling, preparing, 33 (a) A kratom product that meets any of the following
5 distributing, or exposing for sale certain kratom 34 conditions:
6 products or kratom extracts; providing civil penalties 35 1. Is adulterated with a dangerous non-kratom substance
7 for processors who violate certain provisions; 36 that affects the quality or strength of the kratom product to
8 providing an exception; providing an effective date. 37 such a degree that it may injure a consumer.
9 38 2. Contains a poisonous or otherwise harmful non-kratom
10 Be It Enacted by the Legislature of the State of Florida: 39 ingredient, including, but not limited to, any substance listed
11 40 in s. 893.03.
12 Section 1. Section 500.92, Florida Statutes, is amended to 41 3. Contains a level of 7-hydroxymitragynine in the alkaloid
13 read: 42 fraction which is greater than 2 percent of the alkaloid
14 500.92 Florida Kratom Consumer Protection Act.— 43 composition of the product.
15 (1) This section may be cited as the “Florida Kratom 44 4. Contains a synthetic alkaloid, including, but not
16 Consumer Protection Act.” 45 limited to, synthetic mitragynine, synthetic 7-
17 (2) As used in this section, the term: 46 hydroxymitragynine, or any other synthetically derived compound
18 (a) “Kratom extract” means a food product or dietary 47 of the plant Mitragyna speciosa.
19 ingredient that contains any part of the leaf of the plant 48 5. Does not include directions for the safe and effective
20 Mitragyna speciosa which has been extracted and concentrated to 49 use of the product, including, but not limited to, a suggested
21 provide more standardized dosing. 50 serving size, on the product’s packaging or label.
22 (b) “Kratom product” means a food product, food ingredient, 51 6. Has a label that contains any claim that the product is
23 dietary ingredient, dietary supplement, or beverage intended for 52 intended to diagnose, treat, cure, or prevent any medical
24 human consumption which contains any part of the leaf of the 53 condition or disease.
25 plant Mitragyna speciosa or an extract, a synthetic alkaloid, or 54 (b) Kratom extract that contains levels of residual
26 a synthetically derived compound of such plant and is 55 solvents higher than the standards set forth in USP-NF chapter
27 manufactured as a powder, capsule, pill, beverage, or other 56 467.
28 edible form. 57 (4) It is unlawful to sell, deliver, barter, furnish, or
29 (c) “Processor” means a person who sells, prepares, 58 give, directly or indirectly, any kratom product to a person who
Page 1 of 3 Page 2 of 3
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Florida Senate - 2024 SB 842
9-00471-24 2024842__
59 is 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 (6)(4) A violation of subsection (4) (3) is a misdemeanor
69 of the second degree, punishable as provided in s. 775.082 or s.
70 775.083.
71 (7)(5) The department shall adopt rules to administer this
72 section.
73 Section 2. This act shall take effect July 1, 2024.
Page 3 of 3
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The Florida Senate
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Committee Agenda Request
To: Senator Jay Trumbull, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: January 7,2024
I respectfully request that Senate Bill #842, relating to Florida Kratom Consumer Protection Act,
be placed on the:
X Committee agenda at your earliest possible convenience.
n Next committee agenda.
,l\ut,
Senator Keith Perry
Florida Senate, District 9
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: CS/SB 1126
INTRODUCER: Senator Martin
SUBJECT: Regulation of Auxiliary Containers
DATE: January 16, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Baird McKay CM Fav/CS
2. CA
3. FP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1126 preempts to the state the regulation of auxiliary containers, defined by the bill as
reusable or single-use bag, cup, bottle, or other packaging designed for transporting, consuming,
or protecting merchandise, food, or beverages from or at a food service establishment or retailer.
The bill takes effect July 1, 2024.
II. Present Situation:
Auxiliary Containers
The United Nations has estimated that the world consumes between 1 trillion and 5 trillion
plastic bags (a form of auxiliary container) per year.1 Additionally, in the United States fewer
than 10 percent of plastic bags are recycled per year.2 In Florida, the Department of
1
United Nations Environment Programme, Single-Use Plastics: A Roadmap for Sustainability, (March 26, 2018), available
at https://www.unep.org/resources/report/single-use-plastics-roadmap-sustainability (last visited January 16, 2024).
2
United States Environmental Protection Agency, Advancing Sustainable Materials Management: 2016 and 2017 Tables
and Figures, (November, 2019), available at https://www.epa.gov/sites/default/files/2019-
11/documents/2016_and_2017_facts_and_figures_data_tables_0.pdf (last visited January 16, 2024).
BILL: CS/SB 1126 Page 2
Environmental Protection estimated that about 5-6 million tons of collected municipal solid
waste per year are single use carryout packaging.3
Subsequently, environmentalists across the world have targeted auxiliary containers and their
consumption to try and limit their use and harmfulness to the environment. This has been
manifested through many local governments in Florida, as well as across the world, trying to
impose their own local regulations on auxiliary containers and their use.
In recent years some of these local ordinances have been challenged in the court system.4
State Preemption
There are two ways that a local enactment can be inconsistent with state law and therefore
unconstitutional. First, a local government cannot legislate in a field if the subject area has been
preempted to the state. Second, in a field where both the state and local government can legislate
concurrently, a local government cannot enact an ordinance that directly conflicts with the state
statute.5
State law recognizes two types of state preemption: express and implied. Express preemption
requires a specific legislative statement of intent to preempt a specific area of law; it cannot be
implied or inferred.6 In contrast, implied preemption exists if the legislative scheme is so
pervasive as to evidence an intent to preempt the particular area, and where strong public policy
reasons exist for finding such an area to be preempted by the Legislature.7 Courts determining
the validity of local government ordinances enacted in the face of state preemption, whether
express or implied, have found such ordinances to be null and void.8
Home Rule Authority
The Florida Constitution grants local governments broad home rule authority. Specifically,
non-charter county governments may exercise those powers of self-government that are provided
by general or special law.9 Counties operating under a county charter have all powers of self-
3
Townsend, Update of the 2010 Retail Bags Report, (December, 2021), available at
https://floridadep.gov/sites/default/files/FDEP%20Plastic%20Bag%20Report%20Final%20v4.pdf (last visited January 16,
2024).
4
See Florida Retail Federation, Inc. v. City of Coral Gables, 282 So. 3d 889 (Fla. 3d Dist. Ct. App. 2019) where originally
the ordinance prohibited the use of expanded polystyrene to restaurants and businesses as well as city vendors/contractors
and special events permittees and their subcontractors. After the Florida Retail Federation challenged the ordinance the courts
declared the part of the ordinance regarding private restaurants and businesses unconstitutional.
5
Orange County v. Singh, 268 So. 3d 668, 673 (Fla. 2019) (citing Phantom of Brevard, Inc. v. Brevard County, 3 So. 3d 309,
314 (Fla. 2008)); see also James Wolf & Sarah Bolinder, The Effectiveness of Home Rule: A Preemptions and Conflict
Analysis, 83 FLA. BAR J. 92 (2009), available at https://www.floridabar.org/the-florida-bar-journal/the-effectiveness-of-
home-rule-a-preemption-and-conflict-analysis/ (last visited January 16, 2024).
6
City of Hollywood v. Mulligan, 934 So. 2d 1238, 1243 (Fla. 2006); Phantom of Brevard, Inc., 3 So. 3d at 1018.
7
Sarasota Alliance for Fair Elections, Inc. v. Browning, 28 So. 3d 880, 886 (Fla. 2010).
8
See, e.g., National Rifle Association of America, Inc. v. City of South Miami, 812 So. 2d 504 (Fla. 3d DCA 2002)
(concluding that a City of South Miami local government ordinance, which purported to provide safety standards for
firearms, was null and void because the Legislature expressly preempted the entire field of firearm and ammunition
regulation when it enacted section 790.33, F.S.).
9
FLA. CONST., art. VIII, s. 1.(f).
BILL: CS/SB 1126 Page 3
government not inconsistent with general law or special law approved by vote of the electors.10
Likewise, municipalities have governmental, corporate, and proprietary powers that enable them
to conduct municipal government, perform municipal functions and provide services, and
exercise any power for municipal purposes except as otherwise provided by law.11
County governments have authority to provide fire protection, ambulance services, parks and
recreation, libraries, museums and other cultural facilities, waste and sewage collection and
disposal, and water and alternative water supplies.12 Municipalities are afforded broad home rule
powers with the exception of annexation, merger, exercise of extraterritorial power, or subjects
prohibited or preempted by the Federal or State Constitution, county charter, or statute.13
Department of Environmental Protection Retail Bag Report
In response to growing concerns regarding the impact of retail plastic bags on the environment,
the Legislature enacted s. 403.7033, F.S., in 2008 to require the Department of Environmental
Protection (DEP) to analyze “the need for new or different regulation of auxiliary containers,
wrappings, or disposable plastic bags used by consumers to carry products from retail
establishments.” DEP was required to submit a report with its conclusions and recommendations
to the Legislature by December 31, 2021.14
Additionally, s. 403.7033, F.S., includes a prohibition on local governments, local governmental
agencies, and state government agencies from enacting any rule, regulation, or ordinance
regarding the use, disposition, sale, prohibition, restriction, or tax of such auxiliary containers,
wrappings, or disposable plastic bags until the Legislature adopts the DEP’s recommendations.15
To date, the Legislature has not adopted any recommendations contained in the report and the
prohibition on any rule, regulation, or ordinance regarding use, disposition, sale, prohibition,
restriction, or tax of such auxiliary containers, wrappings, or disposable plastic bags remains in
effect.16
III. Effect of Proposed Changes:
The bill creates a definition for the term “auxiliary container” defining it as “a reusable or single-
use bag, cup, bottle, or other packaging that meets” the following requirements:
Is made of cloth; paper; plastic, including, but not limited to, foamed plastic, expanded
plastic, or polystyrene; cardboard; molded fiber; corrugated material; aluminum; glass;
postconsumer recycled material; or similar material or substrates, including coated,
laminated, or multilayer substrates.
10
FLA. CONST., art. VIII, s. 1.(g).
11
FLA. CONST., art. VIII, s. 2.(b); see also s. 166.021(1), F.S.
12
Sections 125.01(1)(d)(e)(f) and (k)1., F.S.
13
Section 166.021(3), F.S.
14
Section 403.7033, F.S.
15
Id.
16
The 2021 report created by the DEP is available online at
https://floridadep.gov/sites/default/files/FDEP%20Plastic%20Bag%20Report%20Final%20v4.pdf.
BILL: CS/SB 1126 Page 4
Is designed for transporting, consuming, or protecting merchandise, food, or beverages from
or at a public food service establishment as defined in s. 509.013(5), F.S., a food
establishment as defined in s. 500.03(1), F.S., or a retailer as defined in s. 212.02(13), F.S.
The bill places the authority of any regulating of auxiliary containers to be made at the state level
as opposed to the local level.
The bill also removes the following language in s. 403.7033, F.S., that:
Emphasized legislative intent that “prudent regulation of recyclable materials is crucial to the
ongoing welfare of Florida’s ecology and economy”;
The DEP needed to review and update their 2010 report on retail bags that included input
from stakeholders analyzing the need for new or different regulation of auxiliary containers;
No local or state government agency enact any rule, regulation, or ordinance, until the
Legislature adopts the recommendations of the DEP.
Additionally, the bill makes conforming changes to section 403.707 of the Florida Statutes.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
BILL: CS/SB 1126 Page 5
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 403.703, 403.7033,
and 403.707.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on January 16, 2024:
The committee substitute clarifies the requirements of what an auxiliary container can be
made of, adding foamed plastic, expanded plastic, polystyrene, and molded fiber.
Additionally, the amendment provides that the included list of materials that auxiliary
containers can be made of is not the exclusive list. The amendment also includes a
statutory reference definition for a public food service establishment, a food service
establishment, and a retailer. Finally the amendment more clearly states that the
regulation of auxiliary containers is expressly preempted to the state.
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 - 2024 COMMITTEE AMENDMENT Florida Senate - 2024 COMMITTEE AMENDMENT
Bill No. SB 1126 Bill No. SB 1126
Ì354080}Î354080 Ì354080}Î354080
LEGISLATIVE ACTION 11 (b) Is designed for transporting, consuming, or protecting
Senate . House 12 merchandise, food, or beverages from or at a public food service
Comm: RCS . 13 establishment as defined in s. 509.013(5), a food establishment
01/16/2024 . 14 as defined in s. 500.03(1), or a retailer as defined in s.
. 15 212.02(13).
. 16 (36)(35) “Solid waste” means sludge unregulated under the
. 17 federal Clean Water Act or Clean Air Act, sludge from a waste
18 treatment works, water supply treatment plant, or air pollution
19 control facility, or garbage, rubbish, refuse, special waste, or
20 other discarded material, including solid, liquid, semisolid, or
21 contained gaseous material resulting from domestic, industrial,
22 commercial, mining, agricultural, or governmental operations.
23 Recovered materials as defined in subsection (29) (28) and post-
24 use polymers as defined in subsection (25) (24) are not solid
25 waste.
The Committee on Commerce and Tourism (Martin) recommended the 26 Section 2. Section 403.7033, Florida Statutes, is amended
following: 27 to read:
28 403.7033 Preemption of regulation for auxiliary containers
1 Senate Amendment (with title amendment) 29 Departmental analysis of particular recyclable materials.—The
2 30 Legislature finds that prudent regulation of recyclable
3 Delete lines 24 - 64 31 materials is crucial to the ongoing welfare of Florida’s ecology
4 and insert: 32 and economy. As such, the Department of Environmental Protection
5 (a) Is made of cloth; paper; plastic, including, but not 33 shall review and update its 2010 report on retail bags analyzing
6 limited to, foamed plastic, expanded plastic, or polystyrene; 34 the need for new or different regulation of auxiliary
7 cardboard; molded fiber; corrugated material; aluminum; glass; 35 containers, wrappings, or disposable plastic bags used by
8 postconsumer recycled material; or similar material or 36 consumers to carry products from retail establishments. The
9 substrates, including coated, laminated, or multilayer 37 updated report must include input from state and local
10 substrates. 38 government agencies, stakeholders, private businesses, and
39 citizens and must evaluate the efficacy and necessity of both
Page 1 of 3 Page 2 of 3
1/16/2024 9:26:38 AM 577-02105-24 1/16/2024 9:26:38 AM 577-02105-24
Florida Senate - 2024 COMMITTEE AMENDMENT
Bill No. SB 1126
Ì354080}Î354080
40 statewide and local regulation of these materials. To ensure
41 consistent and effective implementation, the department shall
42 submit the updated report with conclusions and recommendations
43 to the Legislature no later than December 31, 2021. Until such
44 time that the Legislature adopts the recommendations of the
45 department, A local government, local governmental agency, or
46 state governmental agency may not enact any rule, regulation, or
47 ordinance regarding use, disposition, sale, prohibition,
48 restriction, or tax of such auxiliary containers. The regulation
49 of auxiliary containers is expressly preempted to the state,
50 wrappings, or
51
52 ================= T I T L E A M E N D M E N T ================
53 And the title is amended as follows:
54 Delete lines 5 - 9
55 and insert:
56 amending s. 403.7033, F.S.; deleting obsolete
57 provisions requiring the Department of Environmental
58 Protection to review and update a specified report;
59 expressly preempting the regulation of auxiliary
60 containers to the state; amending s. 403.707, F.S.;
Page 3 of 3
1/16/2024 9:26:38 AM 577-02105-24
Florida Senate - 2024 SB 1126 Florida Senate - 2024 SB 1126
By Senator Martin
33-01432B-24 20241126__ 33-01432B-24 20241126__
1 A bill to be entitled 30 retail facility.
2 An act relating to regulation of auxiliary containers; 31 (36)(35) “Solid waste” means sludge unregulated under the
3 amending s. 403.703, F.S.; defining the term 32 federal Clean Water Act or Clean Air Act, sludge from a waste
4 “auxiliary container”; conforming cross-references; 33 treatment works, water supply treatment plant, or air pollution
5 amending s. 403.7033, F.S.; expressly preempting the 34 control facility, or garbage, rubbish, refuse, special waste, or
6 regulation of auxiliary containers to the state; 35 other discarded material, including solid, liquid, semisolid, or
7 deleting obsolete provisions requiring the Department 36 contained gaseous material resulting from domestic, industrial,
8 of Environmental Protection to review and update a 37 commercial, mining, agricultural, or governmental operations.
9 specified report; amending s. 403.707, F.S.; 38 Recovered materials as defined in subsection (29) (28) and post-
10 conforming cross-references; providing an effective 39 use polymers as defined in subsection (25) (24) are not solid
11 date. 40 waste.
12 41 Section 2. Section 403.7033, Florida Statutes, is amended
13 Be It Enacted by the Legislature of the State of Florida: 42 to read:
14 43 403.7033 Preemption of regulation for auxiliary containers
15 Section 1. Present subsections (2) through (48) of section 44 Departmental analysis of particular recyclable materials.—The
16 403.703, Florida Statutes, are redesignated as subsections (3) 45 regulation of auxiliary containers is expressly preempted to the
17 through (49), respectively, a new subsection (2) is added to 46 state Legislature finds that prudent regulation of recyclable
18 that section, and present subsection (35) of that section is 47 materials is crucial to the ongoing welfare of Florida’s ecology
19 amended, to read: 48 and economy. As such, the Department of Environmental Protection
20 403.703 Definitions.—As used in this part, the term: 49 shall review and update its 2010 report on retail bags analyzing
21 (2) “Auxiliary container” means a reusable or single-use 50 the need for new or different regulation of auxiliary
22 bag, cup, bottle, or other packaging that meets both of the 51 containers, wrappings, or disposable plastic bags used by
23 following requirements: 52 consumers to carry products from retail establishments. The
24 (a) Is made of cloth, paper, plastic, cardboard, corrugated 53 updated report must include input from state and local
25 material, aluminum, glass, postconsumer recycled material, or 54 government agencies, stakeholders, private businesses, and
26 similar material or substrates, including coated, laminated, or 55 citizens and must evaluate the efficacy and necessity of both
27 multilayer substrates. 56 statewide and local regulation of these materials. To ensure
28 (b) Is designed for transporting, consuming, or protecting 57 consistent and effective implementation, the department shall
29 merchandise, food, or beverages from or at a food service or 58 submit the updated report with conclusions and recommendations
Page 1 of 4 Page 2 of 4
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2024 SB 1126 Florida Senate - 2024 SB 1126
33-01432B-24 20241126__ 33-01432B-24 20241126__
59 to the Legislature no later than December 31, 2021. Until such 88 of such county. The county may make such a determination only if
60 time that the Legislature adopts the recommendations of the 89 it finds that, prior to June 1, 2007, the county has established
61 department, A local government, local governmental agency, or 90 an adequate method for the use or recycling of such wood
62 state governmental agency may not enact any rule, regulation, or 91 material at an existing or proposed solid waste management
63 ordinance regarding use, disposition, sale, prohibition, 92 facility that is permitted or authorized by the department on
64 restriction, or tax of such auxiliary containers, wrappings, or 93 June 1, 2007. The county is not required to hold a hearing if
65 disposable plastic bags. 94 the county represents that it previously has held a hearing for
66 Section 3. Paragraph (j) of subsection (9) of section 95 such purpose, or if the county represents that it previously has
67 403.707, Florida Statutes, is amended to read: 96 held a public meeting or hearing that authorized such method for
68 403.707 Permits.— 97 the use or recycling of trash or other nonputrescible waste
69 (9) The department shall establish a separate category for 98 materials and that such materials include those materials
70 solid waste management facilities that accept only construction 99 described in s. 403.703(7)(b) s. 403.703(6)(b). The county shall
71 and demolition debris for disposal or recycling. The department 100 provide written notice of its determination to the department by
72 shall establish a reasonable schedule for existing facilities to 101 no later than April 30, 2008; thereafter, the materials
73 comply with this section to avoid undue hardship to such 102 described in s. 403.703(7) s. 403.703(6) shall be excluded from
74 facilities. However, a permitted solid waste disposal unit that 103 the definition of “construction and demolition debris” in s.
75 receives a significant amount of waste prior to the compliance 104 403.703(7) s. 403.703(6) within the jurisdiction of such county.
76 deadline established in this schedule shall not be required to 105 The county may withdraw or revoke its determination at any time
77 be retrofitted with liners or leachate control systems. 106 by providing written notice to the department.
78 (j) The Legislature recognizes that recycling, waste 107 Section 4. This act shall take effect July 1, 2024.
79 reduction, and resource recovery are important aspects of an
80 integrated solid waste management program and as such are
81 necessary to protect the public health and the environment. If
82 necessary to promote such an integrated program, the county may
83 determine, after providing notice and an opportunity for a
84 hearing prior to April 30, 2008, that some or all of the
85 material described in s. 403.703(7)(b) s. 403.703(6)(b) shall be
86 excluded from the definition of “construction and demolition
87 debris” in s. 403.703(7) s. 403.703(6) within the jurisdiction
Page 3 of 4 Page 4 of 4
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
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1t16t2024 APPEARANCE RECORD 1126
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BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SB 1166
INTRODUCER: Commerce and Tourism Committee and Senator DiCeglie
SUBJECT: Main Street Historical Tourism and Revitalization Act
DATE: January 16, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Fav/CS
2. FT
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1166 creates the Main Street Historical Tourism and Revitalization 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 (up to a maximum of $200,000) of qualified expenses
incurred in the rehabilitation of a certified historic structure that has been approved by the
National Park Service to receive federal historic rehabilitation tax credit, or 30 percent (up to a
maximum of $200,000) of the total qualified expenses incurred in the rehabilitation of such a
structure that is located within a Florida Main Street or Orlando Main Streets Program.
Any unused amount may be carried forward for a period of up to five taxable years. Tax credits
may also be sold or transferred. There is a limit of two 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 no more than one taxpayer may claim a tax credit for the
same qualified expenses.
The annual state revenue loss may not exceed $25 million in any fiscal year. A single entity or
individual is authorized to receive up to $1 million in tax credits cumulatively for a single
development project. Tax credits purchased from another taxpayer or entity, and any carryover
tax credits, may be used in addition to the $1 million limit. If the annual amount exceeds $25
million, applications must be rolled over and awarded the following fiscal year.
BILL: CS/SB 1166 Page 2
The Revenue Estimating Conference (REC) has not analyzed the bill. The REC analysis for a
similar version of the bill in 2023 estimated that the bill would reduce recurring General
Revenue Fund receipts in Fiscal Year 2023-2024 by $39.3 million. Beginning in Fiscal Year
2024-2025, General Revenue Fund receipts were estimated to be reduced by $39.7 million, cash
and recurring.
The bill takes effect on July 1, 2024. The emergency rulemaking authority granted to the
Department of Revenue takes effect upon the bill becoming a law.
II. Present Situation:
National Register of Historic Places
The National 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 The National Parks Service reports that each year,
“approximately 1,200 projects are approved, leveraging nearly $6 billion annually in private
investment in the rehabilitation of historic buildings across the country.”5
In Florida, there are more than 1,700 properties and districts listed on the National Register.
Nominations for those properties must be submitted to the National Park Service through the
Florida Department of State’s Division of Resources, following a review and recommendation
by the Florida National Register Review Board.6 The cumulative total of “Qualified
Rehabilitation Expenses” (the value of items that can be written off by developers on their
federal tax bill) for Florida projects over the most recent five-year period (FY 2018-2022) is
$252 million, resulting in $50.4 million in federal tax credits.7
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?, https://www.nps.gov/subjects/nationalregister/what-is-the-national-register.htm (last visited Jan. 16,
2024).
3
Id.
4
U.S. Department of the Interior, National Park Service, Technical Preservation Services, https://www.nps.gov/tps/tax-
incentives.htm (last visited Jan. 16, 2024).
5
U.S. Department of the Interior, National Park Service, Historic Preservation Tax Incentives, About the Incentives,
https://www.nps.gov/subjects/taxincentives/about.htm (last visited Jan. 16, 2024).
6
Florida Department of State, Division of Historical Resources, National Register of Historic Places,
https://dos.myflorida.com/historical/preservation/national-register/ (last visited Jan. 16, 2024).
7
U.S. Department of the Interior, National Park Service, Historic Preservation Tax Incentives, 2022 Annual Report,
https://www.nps.gov/subjects/taxincentives/upload/report-2022-annual.pdf (last visited Jan. 16, 2024).
BILL: CS/SB 1166 Page 3
Main Street America
Main Street America, a program under the National Main Street Center,8 is a network of
grassroots organizations that “revitalizes older and historic commercial districts to build vibrant
neighborhoods and thriving economies.”9 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.10 Main Street America has coordinating programs
that are organized at the state, county, and city level which 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 Streets located in Orlando.11 Florida Main Street is administered by the Division
of Historical Resources (division) under the Florida Department of State (DOS).12 Fifty-five
Florida Main Streets and 12 Orlando Main Streets have received technical assistance toward the
goal of revitalizing historic downtowns and encouraging economic development.13
Florida Initiatives
Currently, Florida does not offer a program that provides corporate income tax credits to offset
the costs of rehabilitating historic properties. The Historic Preservation Grant Program,
administered by the division, provides grants for the preservation and protection of the state’s
historic and archaeological sites and properties. However, any property owned by private
individuals or for-profit corporations are ineligible for such grants.14
Florida’s constitution grants any county or municipality the authority to offer ad valorem tax
exemptions to owners of historic properties making preservation improvements.15 Codified in the
Florida Statutes under three sections, residential and commercial properties improved in a
manner consistent with historic preservation standards are eligible for an exemption of up to
100 percent of the value of the improvement made to the property.16 Generally, the property
must be either individually listed in the National Register of Historic Places; be a contributing
property to a national-register-listed district; or be designated as a historic property, or as a
contributing property to a historic district. If the property is used for a governmental,
8
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, https://www.mainstreet.org/aboutus (last visited Jan. 16, 2024).
9
Main Street America, About Us, https://www.mainstreet.org/aboutus (last visited Jan. 16, 2024).
10
Main Street America, Designation, 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.
16, 2024).
11
Main Street America, Coordinating Programs, https://higherlogicdownload.s3.amazonaws.com/NMSC/390e0055-2395-
4d3b-af60-81b53974430d/UploadedImages/The_Programs/2020_Coordinating_Program_List.pdf (last visited Jan. 16, 2024).
12
Section 267.031(5), F.S.
13
Visit Florida, Florida Main Street Programs Have Stories to Tell, https://www.visitflorida.com/travel-ideas/articles/florida-
main-street/ (last visited Jan. 16, 2024).
14
Section 267.0617(2), F.S.
15
Art. VII, s. 3, Fla. Const.
16
See ss. 196.1961, 196.1997, and 196.1998, F.S.
BILL: CS/SB 1166 Page 4
not-for-profit, or commercial purpose, it must be open to the public on a regular basis.
Additionally, property used for governmental or nonprofit purposes are eligible to have the entire
value of the property exempted.17
Corporate Income Tax
Florida levies a 5.5 percent tax on certain income of corporations and financial institutions doing
business in Florida.18 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.19
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, a 1 percent tax on
annuity premiums; and a 1.6 percent tax on self-insurers.20 Insurance premium taxes are paid by
insurance companies and remitted to the Department of Revenue (DOR). The revenues are
distributed to General Revenue. In addition, some insurers pay a retaliatory tax to the extent the
insurer's state of domicile would impose a greater tax burden than Florida imposes.
III. Effect of Proposed Changes:
The bill creates the Main Street Historical Tourism and Revitalization Act which provides a tax
credit against corporate income tax and insurance premium tax for qualified expenses21 incurred
in the rehabilitation of a certified historic structure. 22
Eligibility
For taxable years beginning on or after January 1, 2025, a credit is allowed against any tax due
for a taxable year after the application of any other allowable credits by the taxpayer. An
applicant must submit an application to the DOS to receive a tax credit and must provide the
following:
An official certificate of eligibility from the division attesting that the project has been
approved by the National Park Service and indicating whether the project is located within a
local program area in the state;
17
Section 196.1998, F.S.
18
Section 220.11(2), F.S.
19
Section 220.12, F.S.
20
Section 624.509, F.S., and s. 624.4621, F.S.
21
The bill defines “qualified expenses” as qualified rehabilitation expenditures (defined in 26 U.S.C., §47(c)(2)) and
structural components that were incurred in Florida (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).
22
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: CS/SB 1166 Page 5
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;
List of all the dates during which the structure was rehabilitated, the date the structure was
first placed into service after certified rehabilitation23 was completed, and evidence that the
structure was placed in service;
Documentation that the taxpayer had an ownership or a long-term leasehold interest in the
certified historic structure in the year during which the structure was placed in service after
the certified rehabilitation was completed;
A list of total qualified expenses incurred in this state by the taxpayer in rehabilitating the
certified historic structure. The applicant must submit an audited cost report that itemizes the
qualified expenses incurred in rehabilitating the structure;
An attestation of the total qualified expenses incurred in this state by the taxpayer for
rehabilitating the certified historic structure in this state; 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.
Within 60 days after receipt of the information detailed above the DOR must approve or deny the
submitted application. If approved, the DOR must provide a letter to the taxpayer. If the taxpayer
is denied, the DOR must inform the taxpayer of the grounds for denial.
Tax Credit Amount
The total tax credit claimed annually may not exceed the amount of tax due after any other
applicable tax credits and may not exceed the following:
Twenty percent (up to a maximum of $200,000) of the total qualified expenses incurred for
rehabilitating one or more certified historic structures that have been approved by the
National Park Service to receive the federal historic rehabilitation tax credit; or
Thirty percent (up to a maximum of $200,000) of the total qualified expenses incurred for
rehabilitating one or more certified historic structures that have been approved by the
National Park Service to receive the federal historic rehabilitation tax credit and that are
located within a local program area of an Accredited Main Street Program.
The bill prohibits the annual state revenue loss from exceeding $25 million in any fiscal year. If
the annual amount exceeds $25 million, applications must be rolled forward and awarded by the
DOR during the following fiscal year.
A single entity or individual is prohibited from receiving more than $1 million in tax credits
cumulatively for a single development project, even if the credits have accrued over multiple tax
years. Tax credits purchased from another taxpayer or entity, and carryover tax credits from a
prior tax year, may be used in addition to the $1 million limit, if the additional tax credits were
23
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
BILL: CS/SB 1166 Page 6
accrued from a different development project. The DOR must award the credits on a first-come,
first-served basis.
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 five taxable years.
Sale or Transfer of Tax Credit
The bill provides that there is a limit of two 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 no more than one taxpayer may 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 name and federal tax identification number of 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 entity may be allocated to the partners, members, or
shareholders of that entity and claimed 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 and Division Audit Authority
The DOR is authorized to perform additional financial and technical audits and examinations,
including examining the accounts, books, or records of the taxpayer, to verify the legitimacy of
the qualified expenses included in a tax credit return and to ensure compliance. The division
must provide technical assistance for any technical audits or examinations if requested by the
DOR.
BILL: CS/SB 1166 Page 7
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.
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 resulting from the recomputation 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 a report annually by December 1, which identifies, in the aggregate, the
number of people employed during construction phases of the certified rehabilitation; the use of
each newly rehabilitated building and the number of additional people employed for ongoing
operations after the certified historic structure is placed in service, the expected number of
people employed during construction phases of the certified rehabilitation who worked to
complete the project, including contractors and subcontractors; the number of affordable housing
units created or preserved, and the property values before and after the certified rehabilitations.
The DOR must also establish or amend 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 and the division are granted rulemaking authority and the DOR is granted additional
emergency rulemaking authority to administer the Act.
The DOR is authorized to make available to the division and the Secretary of the Department of
the Interior of the United States information relating to the Act.
The bill makes conforming changes.
The bill creates s. 624.5095, F.S., to specify that tax credits may be used to offset the insurance
premium tax. The certified rehabilitation can either be completed by the insurer or the insurer
may purchase the tax credits from a different entity that accrued or purchased the tax credits. An
BILL: CS/SB 1166 Page 8
insurer claiming a credit against the insurance premium tax liability is not required to pay any
additional retaliatory tax as a result of claiming such credit.
The bill applies to taxable years beginning on or after January 1, 2025.
The bill takes effect on July 1, 2024. The emergency rulemaking authority granted to the DOR
takes effect upon the bill becoming a law.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, section 18 of the Florida Constitution requires a two-thirds vote of the
membership of each house of the Legislature to pass legislation requiring counties and
municipalities to spend funds, limiting their ability to raise revenue, or reducing the
percentage of a state tax shared with them. This bill does not require counties or
municipalities to spend funds, limit their authority to raise revenue, or reduce the
percentage of a state tax shared with them as specified in Article VII, section 18 of the
Florida Constitution. Therefore, the provisions of Article VII, section 18 of the Florida
Constitution do not apply.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
The bill does not create or raise a state tax or fee. Therefore, the requirements of
Article VII, section 19 of the Florida Constitution do not apply.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference (REC) has not analyzed the bill. The REC analysis
for a similar version of the bill in 2023 estimated that the bill would reduce recurring
General Revenue Fund receipts in Fiscal Year 2023-2024 by $39.3 million. Beginning in
Fiscal Year 2024-2025, General Revenue Fund receipts were estimated to be reduced by
$39.7 million, cash and recurring.
BILL: CS/SB 1166 Page 9
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:
For a prior version of the bill in 2023, the DOR determined that $91,488 in non-recurring
funds would be necessary to implement the bill. The funds would be used to update the
state’s tax software system and modify necessary forms.24
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends sections 212.053, 220.02, 220.13, and 624.509, of the Florida
Statutes.
This bill creates sections 220.197 and 624.5095 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on Jan. 16, 2024:
The amendment conforms to the House bill.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
24
Florida Department of Revenue, Senate Bill 288 Bill Analysis (Feb. 01, 2023) (on file with Senate Committee on
Commerce & Tourism).
Florida Senate - 2024 COMMITTEE AMENDMENT Florida Senate - 2024 COMMITTEE AMENDMENT
Bill No. SB 1166 Bill No. SB 1166
Ì857016%Î857016 Ì857016%Î857016
LEGISLATIVE ACTION 11 (2) DEFINITIONS.—As used in this section, the term:
Senate . House 12 (a) “Active Main Street program” means an area
Comm: RCS . 13 participating under a recognized, coordinated Main Street
01/16/2024 . 14 America licensed program or the Orlando Main Streets program. An
. 15 Active Main Street program must:
. 16 1. Have broad-based community support for the commercial
. 17 district revitalization process with strong support from the
18 public and private sectors.
19 2. Have a developed vision and mission statement relevant
20 to community conditions.
21 3. Have a comprehensive work plan.
22 4. Possess a historic preservation ethic.
23 5. Have an active board of directors and committees.
24 6. Have an adequate operating budget.
25 7. Have a paid professional program manager.
The Committee on Commerce and Tourism (DiCeglie) recommended the 26 8. Conduct a program of ongoing training for staff and
following: 27 volunteers.
28 9. Report key statistics.
1 Senate Amendment (with title amendment) 29 10. Be a current, designated Florida Main Street program.
2 30 (b) “Affordable housing unit” means a housing unit that is
3 Delete everything after the enacting clause 31 affordable, as defined in s. 420.0004(3).
4 and insert: 32 (c) “Certified historic structure” means a building,
5 Section 1. Section 220.197, Florida Statutes, is created to 33 including its structural components, as defined in 36 C.F.R. s.
6 read: 34 67.2, which is of a character subject to the allowance for
7 220.197 Main Street Historical Tourism and Revitalization 35 depreciation provided in s. 167 of the Internal Revenue Code of
8 Act; tax credits; reports.— 36 1986, as amended, and which is:
9 (1) SHORT TITLE.—This act may be cited as the “Main Street 37 1. Individually listed in the National Register of Historic
10 Historical Tourism and Revitalization Act.” 38 Places; or
39 2. Located within a registered historic district and
Page 1 of 20 Page 2 of 20
1/12/2024 10:51:35 AM 577-02073-24 1/12/2024 10:51:35 AM 577-02073-24
Florida Senate - 2024 COMMITTEE AMENDMENT Florida Senate - 2024 COMMITTEE AMENDMENT
Bill No. SB 1166 Bill No. SB 1166
Ì857016%Î857016 Ì857016%Î857016
40 certified by the United States Secretary of the Interior as 69 (j) “Orlando Main Streets program” means a historic
41 being of historic significance to the registered historic 70 preservation-based district revitalization program administered
42 district as set forth in 36 C.F.R. s. 67.2. 71 by the City of Orlando.
43 (d) “Certified rehabilitation” means the rehabilitation of 72 (k) “Placed in service” means when the property is placed
44 a certified historic structure that the United States Secretary 73 in a condition or state of readiness and availability for a
45 of the Interior has certified to the United States Secretary of 74 specifically assigned function. A building is placed in service
46 the Treasury as being consistent with the historic character of 75 when the appropriate work has been completed which would allow
47 the certified historic structure and, if applicable, consistent 76 for occupancy of either the entire building or some identifiable
48 with the registered historic district in which the certified 77 portion of the building as detailed in Treasury Regulation 1.46-
49 historic structure is located as set forth in 36 C.F.R. s. 67.2. 78 3(d).
50 (e) “Division” means the Division of Historical Resources 79 (l) “Qualified expenses” means rehabilitation expenditures
51 of the Department of State. 80 that qualify for the credit under 26 U.S.C. s. 47 incurred in
52 (f) “Florida Main Street program” means a statewide 81 this state.
53 historic preservation-based downtown revitalization assistance 82 (m) “Registered historic district” means a district listed
54 program created, maintained, and administered by the division 83 in the National Register of Historic Places or a district:
55 under s. 267.031(5). 84 1. Designated under general law or local ordinance and
56 (g) “Local program area” means the specific geographic area 85 certified by the United States Secretary of the Interior as
57 in which an Active Main Street program is conducted as approved 86 meeting criteria that will substantially achieve the purposes of
58 and maintained by the division or in which the Orlando Main 87 preserving and rehabilitating buildings of historic significance
59 Streets program is conducted. 88 to the district; and
60 (h) “Long-term leasehold” means a leasehold in a 89 2. Certified by the United States Secretary of the Interior
61 nonresidential real property for a term of 39 years or more or a 90 as meeting substantially all of the requirements for listing a
62 leasehold in a residential real property for a term of 27.5 91 district in the National Register of Historic Places.
63 years or more. 92 (3) ELIGIBILITY FOR TAX CREDIT.—For taxable years beginning
64 (i) “National Register of Historic Places” means the list 93 on or after January 1, 2025, there is allowed a credit against
65 of historic properties significant in American history, 94 any tax due for a taxable year under this chapter after the
66 architecture, archeology, engineering, and culture maintained by 95 application of any other allowable credits by the taxpayer.
67 the United States Secretary of the Interior as authorized in 54 96 (a) To claim and receive a tax credit under this section, a
68 U.S.C. s. 302101. 97 taxpayer must submit an application to the department for a tax
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98 credit for qualified expenses in the amount and under the 127 certified public accountant which itemizes the qualified
99 conditions and limitations provided in this section against the 128 expenses incurred in rehabilitating the certified historic
100 tax due for a taxable year under this chapter and must provide 129 structure.
101 the department with all of the following: 130 6. An attestation of the total qualified expenses incurred
102 1. An official certificate of eligibility from the 131 in this state by the taxpayer in rehabilitating the certified
103 division, signed by the State Historic Preservation Officer or 132 historic structure in this state.
104 the Deputy State Historic Preservation Officer, attesting that 133 7. The information required to be reported by the
105 the project has been approved by the National Park Service and 134 department in subsection (8) to enable the department to compile
106 indicating whether the project is located within a local program 135 its annual report.
107 area in this state. 136 (b) Within 60 days after receipt of the information
108 2. National Park Service Form 10-168c (Rev. 2023), titled 137 required under paragraph (a), the department must approve or
109 “Historic Preservation Certification Application Part 3-Request 138 deny the application. If approved, the department must provide a
110 for Certification of Completed Work,” or a similar form, signed 139 letter of certification to the taxpayer consistent with any
111 by an officer of the National Park Service, attesting that the 140 restrictions imposed. If the department denies any part of the
112 completed rehabilitation meets the United States Secretary of 141 requested credit, the department must inform the taxpayer of the
113 the Interior’s Standards for Rehabilitation and is consistent 142 grounds for the denial.
114 with the historic character of the property and, if applicable, 143 (4) AMOUNT AND DISTRIBUTION OF TAX CREDIT.—
115 the district in which the completed rehabilitation is located. 144 (a) The total tax credit claimed annually may not exceed
116 The form may be obtained through the National Park Service. 145 the amount of tax due after any other applicable tax credits and
117 3. An identification of the dates during which the 146 may not exceed the following:
118 certified historic structure was rehabilitated and the date on 147 1. Twenty percent, up to a maximum of $200,000, of the
119 which the certified historic structure was placed in service. 148 total qualified expenses incurred in this state in
120 4. Documentation that the taxpayer had an ownership or a 149 rehabilitating at least one certified historic structure that
121 long-term leasehold interest in the certified historic structure 150 has been approved by the National Park Service to receive the
122 in the year during which such structure was placed in service 151 federal historic rehabilitation tax credit; or
123 after the certified rehabilitation was completed. 152 2. Thirty percent, up to a maximum of $200,000, of the
124 5. A list of total qualified expenses incurred by the 153 total qualified expenses incurred in this state in
125 taxpayer in rehabilitating the certified historic structure. The 154 rehabilitating at least one certified historic structure that
126 taxpayer must submit an audited cost report issued by a 155 has been approved by the National Park Service to receive the
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156 federal historic rehabilitation tax credit and that is located 185 (b) A carryforward is considered the remaining portion of a
157 within a local program area in this state. 186 tax credit that cannot be claimed in the current tax year.
158 (b) The tax credit may be used to offset the corporate 187 (6) SALE OR TRANSFER OF TAX CREDIT.—
159 income tax imposed in s. 220.11 and the insurance premium tax 188 (a) A taxpayer that incurs qualified expenses may sell or
160 imposed in s. 624.509. An insurer claiming a credit against 189 transfer all or part of the tax credit that may otherwise be
161 insurance premium tax liability under this section may not be 190 claimed to another taxpayer.
162 required to pay any additional retaliatory tax levied pursuant 191 (b) A taxpayer to which all or part of the tax credit is
163 to s. 624.5091 as a result of claiming such credit. Section 192 sold or transferred may sell or transfer all or part of the tax
164 624.5091 does not limit such credit in any manner. 193 credit that may otherwise be claimed to another taxpayer.
165 (c) The combined total amount of tax credits that may be 194 (c) A taxpayer that sells or transfers a tax credit to
166 granted for all taxpayers under this section is $25 million per 195 another taxpayer must provide a copy of the certificate of
167 state fiscal year. 196 eligibility together with the audited cost report to the
168 (d) A taxpayer may not receive more than $1 million in tax 197 purchaser or transferee.
169 credits for a single development project, even if such credits 198 (d) Qualified expenses may be counted only once in
170 are accrued over multiple tax years. However, additional tax 199 determining the amount of an available tax credit, and more than
171 credits purchased from another taxpayer or entity, and carryover 200 one taxpayer may not claim a tax credit for the same qualified
172 tax credits from a prior tax year, may be used by such taxpayer 201 expenses.
173 if the additional tax credits were accrued from a different 202 (e) There is a limit of two transactions for the sale or
174 development project. 203 transfer of all or part of a tax credit.
175 (e) The department shall award the tax credits on a first- 204 1. A taxpayer that sells or transfers a tax credit under
176 come, first-served basis. 205 this subsection and the purchaser or transferee shall jointly
177 (f) If the annual amount of approved tax credits exceeds 206 submit written notice of the sale or transfer to the department
178 the maximum provided in paragraph (c), applications must be 207 on a form adopted by the department no later than the 30th day
179 rolled forward to be granted by the department during the 208 after the date of the sale or transfer. The notice must include
180 following fiscal year. 209 all of the following:
181 (5) CARRYFORWARD OF TAX CREDIT.— 210 a. The date of the sale or transfer.
182 (a) If a taxpayer is eligible for a tax credit that exceeds 211 b. The amount of the tax credit sold or transferred.
183 taxes owed, the taxpayer may carry the unused tax credit forward 212 c. The name and federal tax identification number of the
184 for a period of up to 5 taxable years. 213 taxpayer that sold or transferred the tax credit and the
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214 purchaser or transferee. 243 credit succession.
215 d. The amount of the tax credit owned by the taxpayer 244 (7) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
216 before the sale or transfer and the amount the selling or 245 CREDITS; FRAUDULENT CLAIMS.—
217 transferring taxpayer retained, if any, after the sale or 246 (a) The department may perform any additional financial and
218 transfer. 247 technical audits and examinations, including examining the
219 2. The sale or transfer of a tax credit under this 248 accounts, books, or records of the taxpayer, to verify the
220 subsection does not extend the period for which a tax credit may 249 legitimacy of the qualified expenses included in a tax credit
221 be carried forward and does not increase the total amount of the 250 return and to ensure compliance with this section. If requested
222 tax credit that may be claimed. 251 by the department, the division must provide technical
223 3. If a taxpayer claims a tax credit for qualified 252 assistance for any technical audits or examinations performed
224 expenses, another taxpayer may not use the same expenses as the 253 under this subsection.
225 basis for claiming a tax credit. 254 (b) It is grounds for forfeiture of previously claimed and
226 4. Notwithstanding the requirements of this subsection, a 255 received tax credits if the department determines, as a result
227 tax credit earned by, purchased by, or transferred to a 256 of an audit or information received from the division, the
228 partnership, limited liability company, S corporation, or other 257 division, or the United States Department of the Interior or
229 pass-through entity may be allocated to the partners, members, 258 Internal Revenue Service, that a taxpayer received a tax credit
230 or shareholders of that entity and claimed under this section in 259 pursuant to this section to which the taxpayer was not entitled.
231 accordance with any agreement among the partners, members, or 260 In the case of fraud, the taxpayer may not claim any future tax
232 shareholders and without regard to the ownership interest of the 261 credits under this section.
233 partners, members, or shareholders in the rehabilitated 262 (c) The taxpayer must return forfeited tax credits to the
234 certified historic structure. 263 department, and such funds shall be paid into the General
235 (f) If the tax credit is reduced due to a determination, 264 Revenue Fund.
236 examination, or audit by the department, the tax deficiency must 265 (d) The taxpayer shall file with the department an amended
237 be recovered from the taxpayer that sold or transferred the tax 266 tax return or such other report as the department prescribes and
238 credit or the purchaser or transferee that claimed the tax 267 shall pay any required tax within 60 days after the taxpayer
239 credit up to the amount of the tax credit taken. 268 receives notification from the United States Internal Revenue
240 (g) Any subsequent deficiencies shall be assessed against 269 Service that a previously approved tax credit has been revoked
241 the purchaser or transferee that claimed the tax credit or, in 270 or modified, if uncontested, or within 60 days after a final
242 the case of multiple succeeding entities, in the order of tax 271 order is issued following proceedings involving a contested
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272 revocation or modification order. 301 rehabilitations.
273 (e) A notice of deficiency may be issued by the department 302 (9) DEPARTMENT DUTIES.—The department shall:
274 at any time within 5 years after the date on which the taxpayer 303 (a) Establish or amend any necessary forms required to
275 receives notification from the United States Internal Revenue 304 claim a tax credit under this section.
276 Service that a previously approved tax credit has been revoked 305 (b) Provide administrative guidelines and procedures
277 or modified. If a taxpayer fails to notify the department of any 306 required to administer this section, including rules
278 change in its tax credit claimed, a notice of deficiency may be 307 establishing an entitlement to and sale or transfer of a tax
279 issued at any time. In either case, the amount of any proposed 308 credit under this section.
280 assessment set forth in such notice of deficiency is limited to 309 (c) Provide examination and audit procedures required to
281 the amount of any deficiency resulting under this section from 310 administer this section.
282 the recomputation of the taxpayer’s tax for the taxable year. 311 (10) RULES.—The department may adopt rules to administer
283 (f) A taxpayer that fails to report and timely pay any tax 312 this section.
284 due as a result of the forfeiture of its tax credit violates 313 Section 2. Subsection (26) is added to section 213.053,
285 this section and is subject to applicable penalties and 314 Florida Statutes, to read:
286 interest. 315 213.053 Confidentiality and information sharing.—
287 (8) ANNUAL REPORT.—Based on the applications submitted and 316 (26) The department may make available to the Division of
288 approved, the department must submit a report by December 1 of 317 Historical Resources of the Department of State and the
289 each year to the President of the Senate and the Speaker of the 318 Secretary of the United States Department of the Interior or his
290 House of Representatives that identifies, in the aggregate, all 319 or her delegate, exclusively for official purposes, information
291 of the following: 320 for the purposes of administering the Main Street Historical
292 (a) The number of people employed during the construction 321 Tourism and Revitalization Act pursuant to s. 220.197.
293 phases of the certified rehabilitation who worked to complete 322 Section 3. Subsection (8) of section 220.02, Florida
294 the project, including contractors and subcontractors. 323 Statutes, is amended to read:
295 (b) The use of each newly rehabilitated building and the 324 220.02 Legislative intent.—
296 number of additional people employed for ongoing operations 325 (8) It is the intent of the Legislature that credits
297 after the certified historic structure is placed in service. 326 against either the corporate income tax or the franchise tax be
298 (c) The number of affordable housing units created or 327 applied in the following order: those enumerated in s. 631.828,
299 preserved. 328 those enumerated in s. 220.191, those enumerated in s. 220.181,
300 (d) The property values before and after the certified 329 those enumerated in s. 220.183, those enumerated in s. 220.182,
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330 those enumerated in s. 220.1895, those enumerated in s. 220.195, 359 subparagraph 11. and is taken as a deduction for federal tax
331 those enumerated in s. 220.184, those enumerated in s. 220.186, 360 purposes in the current taxable year, the amount of the
332 those enumerated in s. 220.1845, those enumerated in s. 220.19, 361 deduction allowed shall not be added to taxable income in the
333 those enumerated in s. 220.185, those enumerated in s. 220.1875, 362 current year. The exception in this sub-subparagraph is intended
334 those enumerated in s. 220.1876, those enumerated in s. 363 to ensure that the credit under s. 220.1875, s. 220.1876, s.
335 220.1877, those enumerated in s. 220.1878, those enumerated in 364 220.1877, or s. 220.1878 is added in the applicable taxable year
336 s. 220.193, those enumerated in former s. 288.9916, those 365 and does not result in a duplicate addition in a subsequent
337 enumerated in former s. 220.1899, those enumerated in former s. 366 year.
338 220.194, those enumerated in s. 220.196, those enumerated in s. 367 2. The amount of interest which is excluded from taxable
339 220.198, those enumerated in s. 220.1915, those enumerated in s. 368 income under s. 103(a) of the Internal Revenue Code or any other
340 220.199, and those enumerated in s. 220.1991, and those 369 federal law, less the associated expenses disallowed in the
341 enumerated in s. 220.197. 370 computation of taxable income under s. 265 of the Internal
342 Section 4. Paragraph (a) of subsection (1) of section 371 Revenue Code or any other law, excluding 60 percent of any
343 220.13, Florida Statutes, is amended to read: 372 amounts included in alternative minimum taxable income, as
344 220.13 “Adjusted federal income” defined.— 373 defined in s. 55(b)(2) of the Internal Revenue Code, if the
345 (1) The term “adjusted federal income” means an amount 374 taxpayer pays tax under s. 220.11(3).
346 equal to the taxpayer’s taxable income as defined in subsection 375 3. In the case of a regulated investment company or real
347 (2), or such taxable income of more than one taxpayer as 376 estate investment trust, an amount equal to the excess of the
348 provided in s. 220.131, for the taxable year, adjusted as 377 net long-term capital gain for the taxable year over the amount
349 follows: 378 of the capital gain dividends attributable to the taxable year.
350 (a) Additions.—There shall be added to such taxable income: 379 4. That portion of the wages or salaries paid or incurred
351 1.a. The amount of any tax upon or measured by income, 380 for the taxable year which is equal to the amount of the credit
352 excluding taxes based on gross receipts or revenues, paid or 381 allowable for the taxable year under s. 220.181. This
353 accrued as a liability to the District of Columbia or any state 382 subparagraph shall expire on the date specified in s. 290.016
354 of the United States which is deductible from gross income in 383 for the expiration of the Florida Enterprise Zone Act.
355 the computation of taxable income for the taxable year. 384 5. That portion of the ad valorem school taxes paid or
356 b. Notwithstanding sub-subparagraph a., if a credit taken 385 incurred for the taxable year which is equal to the amount of
357 under s. 220.1875, s. 220.1876, s. 220.1877, or s. 220.1878 is 386 the credit allowable for the taxable year under s. 220.182. This
358 added to taxable income in a previous taxable year under 387 subparagraph shall expire on the date specified in s. 290.016
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388 for the expiration of the Florida Enterprise Zone Act. 417 of this state as both a deduction from income and a credit
389 6. The amount taken as a credit under s. 220.195 which is 418 against the tax. The addition is not intended to result in
390 deductible from gross income in the computation of taxable 419 adding the same expense back to income more than once.
391 income for the taxable year. 420 14. The amount taken as a credit for the taxable year
392 7. That portion of assessments to fund a guaranty 421 pursuant to s. 220.198.
393 association incurred for the taxable year which is equal to the 422 15. The amount taken as a credit for the taxable year
394 amount of the credit allowable for the taxable year. 423 pursuant to s. 220.1915.
395 8. In the case of a nonprofit corporation which holds a 424 16. The amount taken as a credit for the taxable year
396 pari-mutuel permit and which is exempt from federal income tax 425 pursuant to s. 220.199.
397 as a farmers’ cooperative, an amount equal to the excess of the 426 17. The amount taken as a credit for the taxable year
398 gross income attributable to the pari-mutuel operations over the 427 pursuant to s. 220.1991.
399 attributable expenses for the taxable year. 428 18. The amount taken as a credit for the taxable year
400 9. The amount taken as a credit for the taxable year under 429 pursuant to s. 220.197.
401 s. 220.1895. 430 Section 5. Subsection (7) of section 624.509, Florida
402 10. Up to nine percent of the eligible basis of any 431 Statutes, is amended to read:
403 designated project which is equal to the credit allowable for 432 624.509 Premium tax; rate and computation.—
404 the taxable year under s. 220.185. 433 (7) Credits and deductions against the tax imposed by this
405 11. Any amount taken as a credit for the taxable year under 434 section shall be taken in the following order: deductions for
406 s. 220.1875, s. 220.1876, s. 220.1877, or s. 220.1878. The 435 assessments made pursuant to s. 440.51; credits for taxes paid
407 addition in this subparagraph is intended to ensure that the 436 under ss. 175.101 and 185.08; credits for income taxes paid
408 same amount is not allowed for the tax purposes of this state as 437 under chapter 220 and the credit allowed under subsection (5),
409 both a deduction from income and a credit against the tax. This 438 as these credits are limited by subsection (6); the credit
410 addition is not intended to result in adding the same expense 439 allowed under s. 624.51057; the credit allowed under s.
411 back to income more than once. 440 624.51058; the credit allowed under s. 624.5095; and all other
412 12. The amount taken as a credit for the taxable year under 441 available credits and deductions.
413 s. 220.193. 442 Section 6. Section 624.5095, Florida Statutes, is created
414 13. The amount taken as a credit for the taxable year under 443 to read:
415 s. 220.196. The addition in this subparagraph is intended to 444 624.5095 Premium tax credits related to historic
416 ensure that the same amount is not allowed for the tax purposes 445 preservation.—
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446 (1) Tax credits accrued through a certified rehabilitation 475 And the title is amended as follows:
447 as defined in s. 220.197 and 36 C.F.R. s. 67.2 may be used 476 Delete everything before the enacting clause
448 against any tax due for the taxable year under s. 624.509(1), as 477 and insert:
449 limited under s. 624.509(6). 478 A bill to be entitled
450 (2) The certified rehabilitation may either be completed by 479 An act relating to the Florida Main Street Program and
451 the insurer pursuant to s. 220.197 or the insurer may purchase 480 historic preservation tax credits; creating s.
452 the tax credit from a different entity that accrued or purchased 481 220.197, F.S.; providing a short title; defining
453 the tax credit pursuant s. 220.197. 482 terms; specifying eligibility requirements for
454 (3) An insurer claiming a tax credit under this section is 483 receiving specified tax credits; specifying
455 not required to pay any additional retaliatory tax levied 484 requirements for the Department of Revenue relating to
456 pursuant to s. 624.5091 as a result of claiming such credit. The 485 approving and denying certain applications and
457 tax credit under this section is not limited by s. 624.5091. 486 granting credits; specifying requirements for such tax
458 Section 7. (1) The Department of Revenue may, and all 487 credits; requiring that applications be rolled forward
459 conditions are deemed met to, adopt emergency rules under s. 488 in certain circumstances; authorizing the
460 120.54(4), Florida Statutes, for the purpose of implementing the 489 carryforward, sale, and transfer of such tax credits;
461 Main Street Historical Tourism and Revitalization Act. 490 providing a limitation; authorizing the department to
462 (2) Notwithstanding any other law, emergency rules adopted 491 perform certain audits and examinations; specifying
463 under this section are effective for 6 months after adoption and 492 requirements for taxpayers; authorizing the department
464 may be renewed during the pendency of procedures to adopt 493 to issue a notice of deficiency under certain
465 permanent rules addressing the subject of the emergency rules. 494 circumstances; providing penalties; requiring the
466 (3) This section shall take effect upon this act becoming a 495 department to submit specified annual reports to the
467 law and expires July 1, 2025. 496 Legislature; providing duties of the department;
468 Section 8. This act applies to taxable years beginning, and 497 authorizing the department to adopt rules; amending s.
469 for qualified expenses incurred, on or after January 1, 2025. 498 213.053, F.S.; authorizing the department to make
470 Section 9. Except as otherwise expressly provided in this 499 certain information available to the Division of
471 act and except for this section, which shall take effect upon 500 Historical Resources and the Secretary of the United
472 becoming a law, this act shall take effect July 1, 2024. 501 States Department of the Interior for specified
473 502 purposes; amending s. 220.02, F.S.; revising the order
474 ================= T I T L E A M E N D M E N T ================ 503 in which tax credits against the corporate income tax
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504 or the franchise tax are applied; amending s. 220.13, 533 WHEREAS, an increase in rehabilitation activity occurs when
505 F.S.; revising the definition of the term “adjusted 534 a state incentive is combined with federal Historic Preservation
506 federal income”; amending s. 624.509, F.S.; revising 535 Tax Incentives, and
507 the order in which tax credits and deductions against 536 WHEREAS, many historic buildings in this state need safety
508 the insurance premium tax are applied; creating s. 537 upgrades and other improvements that require both public and
509 624.5095, F.S.; authorizing certain tax credits to be 538 private investment to return these buildings as assets of their
510 used against a specified tax; providing applicability; 539 local communities, NOW, THEREFORE,
511 providing construction; authorizing the Department of
512 Revenue to adopt emergency rules for a specified
513 timeframe; providing for expiration of such authority;
514 providing applicability; providing effective dates.
515
516 WHEREAS, historic revitalization creates highly paid local
517 construction jobs, and
518 WHEREAS, historic rehabilitation increases the value of
519 buildings and results in a growing state and local tax base, and
520 WHEREAS, historic revitalization boosts heritage tourism
521 and creates thriving downtowns that are attractive to main
522 street businesses, and
523 WHEREAS, reusing historic buildings creates affordable
524 spaces for small business incubation, and
525 WHEREAS, repurposing historic buildings saves resources and
526 activates vacant spaces, and
527 WHEREAS, historic rehabilitation projects leverage
528 significant private investment, and
529 WHEREAS, leveraging state tax incentives increases the
530 effectiveness of federal Historic Preservation Tax Incentives
531 and the Opportunity Zones Program to encourage the historic
532 preservation of existing buildings, and
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By Senator DiCeglie
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1 A bill to be entitled 30 certain circumstances; requiring the return of
2 An act relating to the Main Street Historical Tourism 31 forfeited tax credits; requiring the taxpayer to file
3 and Revitalization Act; creating s. 220.197, F.S.; 32 an amended tax return under certain circumstances;
4 providing a short title; defining terms; providing a 33 authorizing the department to issue a notice of
5 credit against the state corporate income tax and the 34 deficiency to the taxpayer under certain
6 insurance premium tax for qualified expenses in 35 circumstances; specifying a limit on the amount of any
7 rehabilitating certain historic structures; specifying 36 proposed assessment in the notice of deficiency;
8 eligibility requirements for the tax credit; requiring 37 specifying that certain actions are violations of the
9 the Department of Revenue to approve or deny an 38 section; requiring the department to provide an annual
10 application within a specified timeframe; requiring 39 report to the Legislature; providing requirements for
11 the department to take certain actions after the 40 the report; providing duties of the department;
12 application is approved or denied; specifying the 41 authorizing the department and the division to adopt
13 amount of the tax credits; providing construction; 42 rules; amending s. 213.053, F.S.; authorizing the
14 prohibiting the annual state revenue loss from 43 department to make certain information available to
15 exceeding a certain amount; prohibiting entities or 44 the division and the Federal Government for a
16 individuals from receiving more than a certain amount 45 specified purpose; amending s. 220.02, F.S.;
17 in tax credits; requiring the department to award 46 specifying the order in which the credit is applied
18 credits on a first-come, first-served basis; requiring 47 against the corporate income tax or franchise tax;
19 that applications be rolled forward under certain 48 amending s. 220.13, F.S.; requiring the addition of
20 circumstances; authorizing the carryforward, sale, and 49 amounts taken for the credit to taxable income;
21 transfer of tax credits, subject to certain 50 amending s. 624.509, F.S.; specifying the order in
22 requirements and limitations; providing the department 51 which the credit is applied against the insurance
23 with audit and examination powers for specified 52 premium tax; creating s. 624.5095, F.S.; specifying
24 purposes; requiring the Division of Historical 53 that certain tax credits may be used to offset
25 Resources of the Department of State to provide 54 insurance premium tax; specifying that the certified
26 technical assistance if requested by the department; 55 rehabilitation may be completed by the insurer or that
27 requiring a taxpayer to forfeit a previously claimed 56 the insurer may purchase the tax credits; specifying
28 tax credit under certain circumstances; prohibiting 57 that an insurer is not required to pay any additional
29 the taxpayer from claiming future tax credits under 58 retaliatory tax under certain circumstances; providing
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59 construction; authorizing the department to adopt 88 local communities, NOW, THEREFORE,
60 emergency rules; providing for expiration of that 89
61 authority; providing applicability; providing 90 Be It Enacted by the Legislature of the State of Florida:
62 effective dates. 91
63 92 Section 1. Section 220.197, Florida Statutes, is created to
64 WHEREAS, historic revitalization creates highly-paid local 93 read:
65 construction jobs, and 94 220.197 Main Street Historical Tourism and Revitalization
66 WHEREAS, historic rehabilitation increases the value of 95 Act; tax credits; reports.—
67 buildings and results in a growing state and local tax base, and 96 (1) SHORT TITLE.—This act may be cited as the “Main Street
68 WHEREAS, historic revitalization boosts heritage tourism 97 Historical Tourism and Revitalization Act.”
69 and creates thriving downtowns that attract patrons and 98 (2) DEFINITIONS.—As used in this section, the term:
70 investors to main street businesses, and 99 (a) “Active Main Street program” means an area
71 WHEREAS, reusing historic buildings creates affordable 100 participating under a recognized coordinated Main Street America
72 spaces for small business incubation, and 101 licensed program or the Orlando Main Streets program. An active
73 WHEREAS, repurposing historic buildings saves resources and 102 Main Street program must:
74 activates dormant spaces, and 103 1. Have broad-based community support for the commercial
75 WHEREAS, historic rehabilitation projects require a 104 district revitalization process along with strong support from
76 significant private investment, and 105 the public and private sectors.
77 WHEREAS, it is in the best interest of the state to 106 2. Have a developed vision and mission statement relevant
78 increase the effectiveness of both the Federal Historic 107 to community conditions.
79 Preservation Tax Incentives and the Opportunity Zones programs 108 3. Have a comprehensive work plan to achieve the goals set
80 and to encourage the historic preservation of existing 109 forth in the mission statement.
81 buildings, and 110 4. Attest to having a historic preservation ethic.
82 WHEREAS, when state incentives are combined with federal 111 5. Have an active board of directors and committees.
83 historic preservation tax incentives, it results in an increase 112 6. Have an adequate operating budget.
84 in historic rehabilitation activity, and 113 7. Have a paid professional program manager.
85 WHEREAS, many historic buildings in this state need safety 114 8. Conduct a program of ongoing training for staff and
86 upgrades and other improvements that require both public and 115 volunteers.
87 private investment to restore the buildings as assets of their 116 9. Report key statistics on its website.
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117 10. Be a current designated Florida Main Street program. 146 historic preservation-based downtown revitalization assistance
118 (b) “Affordable housing unit” means a housing unit on which 147 program created, maintained, and administered by the division
119 the monthly rents or monthly mortgage payments, including taxes, 148 under s. 267.031(5).
120 insurance, and utilities, do not exceed 30 percent of that 149 (g) “Local program area” means the specific geographic area
121 amount which represents the percentage of the median adjusted 150 in which an active Main Street program is conducted as approved
122 gross annual income for the households as indicated in 151 and maintained by the division or in which the Orlando Main
123 subsection (9), subsection (11), and subsection (12), or 152 Streets program is conducted.
124 subsection (17) of s. 420.0004. 153 (h) “Long-term leasehold” means a leasehold in a
125 (c) “Certified historic structure” means a building, 154 nonresidential real property for a term of 39 years or more or a
126 including its structural components, as defined in 36 C.F.R. s. 155 leasehold in a residential real property for a term of 27.5
127 67.2, which is of a character subject to the allowance for 156 years or more.
128 depreciation provided in s. 167 of the Internal Revenue Code of 157 (i) “National Register of Historic Places” means the list
129 1986, as amended, and which is: 158 of historic properties significant in American history,
130 1. Individually listed in the National Register of Historic 159 architecture, archeology, engineering, and culture maintained by
131 Places; or 160 the United States Secretary of the Interior as authorized in 54
132 2. Located within a registered historic district and 161 U.S.C. s. 302101.
133 certified by the United States Secretary of the Interior as 162 (j) “Orlando Main Streets program” means a historic
134 being of historic significance to the registered historic 163 preservation-based district revitalization program administered
135 district as set forth in 36 C.F.R. s. 67.2. 164 by the City of Orlando.
136 (d) “Certified rehabilitation” means the rehabilitation of 165 (k) “Placed in service” means when the property is placed
137 a certified historic structure which the United States Secretary 166 in a condition or state of readiness and availability for a
138 of the Interior has certified to the United States Secretary of 167 specifically assigned function. A building is “placed in
139 the Treasury as being consistent with the historic character of 168 service” when the appropriate work has been completed which
140 the certified historic structure and, if applicable, consistent 169 would allow for occupancy of either the entire building, or some
141 with the registered historic district in which the certified 170 identifiable portion of the building as detailed in U.S.
142 historic structure is located as set forth in 36 C.F.R. s. 67.2. 171 Treasury Regulation s. 1.46-3(d).
143 (e) “Division” means the Division of Historical Resources 172 (l) “Qualified expenses” means rehabilitation expenditures
144 of the Department of State. 173 incurred that qualify for the tax credit under 26 U.S.C. s. 47
145 (f) “Florida Main Street program” means a statewide 174 and that were incurred in this state.
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175 (m) “Registered historic district” means a district listed 204 by an officer of the National Park Service, attesting that the
176 in the National Register of Historic Places or a district: 205 completed rehabilitation meets the United States Secretary of
177 1. Designated under general law or local ordinance and 206 the Interior’s Standards for Rehabilitation and is consistent
178 certified by the United States Secretary of the Interior as 207 with the historic character of the property and, if applicable,
179 meeting criteria that will substantially achieve the purposes of 208 the district in which the completed rehabilitation is located.
180 preserving and rehabilitating buildings of historic significance 209 The form may be obtained through the National Park Service
181 to the district; and 210 website’s Historic Preservation Tax Incentives page.
182 2. Certified by the United States Secretary of the Interior 211 3. A list of all of the dates during which the certified
183 as meeting substantially all of the requirements to be listed in 212 historic structure was rehabilitated and the date the certified
184 the National Register of Historic Places. 213 historic structure was placed in service.
185 (3) ELIGIBILITY FOR TAX CREDIT.—For taxable years beginning 214 4. Documentation that the taxpayer had an ownership or a
186 on or after January 1, 2025, a credit is allowed against any tax 215 long-term leasehold interest in the certified historic structure
187 due for a taxable year under this chapter after the application 216 in the year during which the certified historic structure was
188 of any other allowable credits by the taxpayer. 217 placed in service after the certified rehabilitation was
189 (a) To claim and receive a tax credit under this section, a 218 completed.
190 taxpayer must submit an application to the department for a tax 219 5. A list of total qualified expenses incurred in this
191 credit for qualified expenses in the amount and under the 220 state by the taxpayer for the purpose of rehabilitating the
192 conditions and limitations provided in this section against the 221 certified historic structure. The taxpayer must submit an
193 tax due for a taxable year under this chapter and must provide 222 audited cost report issued by a certified public accountant
194 the department with all of the following: 223 which itemizes the qualified expenses incurred for the purpose
195 1. An official certificate of eligibility from the 224 of rehabilitating the certified historic structure.
196 division, signed by the State Historic Preservation Officer or 225 6. An attestation of the total qualified expenses incurred
197 the Deputy State Historic Preservation Officer, attesting that 226 in this state by the taxpayer for the purpose of rehabilitating
198 the project has been approved by the National Park Service and 227 the certified historic structure in this state.
199 indicating whether the project is located within a local program 228 7. The information required to be reported by the
200 area in the state. 229 department in subsection (8) to enable the department to compile
201 2. National Park Service Form 10-168c (Rev. 6/2023), titled 230 its annual report.
202 “Historic Preservation Certification Application-Part 3-Request 231 (b) Within 60 days after receipt of the information
203 for Certification of Completed Work,” or a similar form, signed 232 required under paragraph (a), the department must approve or
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233 deny the application submitted. If approved, the department must 262 (d) A single entity or individual may not receive more than
234 provide a letter of certification to the taxpayer consistent 263 $1 million in tax credits cumulatively for a single development
235 with any restrictions imposed. If the department denies any part 264 project, even if the credits have accrued over multiple tax
236 of the requested credit, the department must inform the taxpayer 265 years. Tax credits purchased from another taxpayer or entity,
237 of the grounds for the denial. 266 and carryover tax credits from a prior tax year, may be used in
238 (4)(a) AMOUNT OF TAX CREDIT.—The total tax credit claimed 267 addition to the $1 million limit, if the additional tax credits
239 annually may not exceed the amount of tax due after any other 268 were accrued from a different development project.
240 applicable tax credits and may not exceed the following: 269 (e) The department shall award the credits on a first-come,
241 1. Twenty percent, up to a maximum of $200,000, of the 270 first-served basis.
242 total qualified expenses incurred in this state for the purpose 271 (f) If the annual amount of approved tax credits exceeds
243 of rehabilitating one or more certified historic structures that 272 the maximum annual amount referenced in paragraph (c),
244 have been approved by the National Park Service to receive the 273 applications must be rolled forward and awarded by the
245 federal historic rehabilitation tax credit; or 274 department during the following fiscal year.
246 2. Thirty percent, up to a maximum of $200,000, of the 275 (5) CARRYFORWARD OF TAX CREDIT.—
247 total qualified expenses incurred in this state for the purpose 276 (a) If a taxpayer is eligible for a tax credit that exceeds
248 of rehabilitating one or more certified historic structures that 277 taxes owed, the taxpayer may carry the unused tax credit forward
249 have been approved by the National Park Service to receive the 278 for a period of up to 5 taxable years.
250 federal historic rehabilitation tax credit and that are located 279 (b) A carryforward is considered the remaining portion of a
251 within a local program area. 280 tax credit that cannot be claimed in the current tax year.
252 (b) The tax credit may be used to offset the corporate 281 (6) SALE OR TRANSFER OF TAX CREDIT.—
253 income tax imposed in s. 220.11 and the insurance premium tax 282 (a) A taxpayer that incurs qualified expenses may sell or
254 imposed in s. 624.509. An insurer claiming a credit against 283 transfer all or part of the tax credit that may otherwise be
255 insurance premium tax liability under this section may not be 284 claimed to another taxpayer.
256 required to pay any additional retaliatory tax levied pursuant 285 (b) A taxpayer to which all or part of the tax credit is
257 to s. 624.5091 as a result of claiming such credit. Section 286 sold or transferred may sell or transfer all or part of the tax
258 624.5091 may not be interpreted to limit such credit in any 287 credit that may otherwise be claimed to another taxpayer.
259 manner. 288 (c) A taxpayer that sells or transfers a tax credit to
260 (c) The annual state revenue loss for this program may not 289 another taxpayer must provide a copy of the certificate of
261 exceed $25 million in any fiscal year. 290 eligibility together with the audited cost report to the
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291 purchaser or transferee. 320 basis for claiming a tax credit.
292 (d) Qualified expenses may be counted only once in 321 4. Notwithstanding the requirements of this subsection, a
293 determining the amount of an available tax credit, and more than 322 tax credit earned by, purchased by, or transferred to a
294 one taxpayer may not claim a tax credit for the same qualified 323 partnership, limited liability company, S corporation, or other
295 expenses. 324 pass-through entity may be allocated to the partners, members,
296 (e) There is a limit of two transactions for the sale or 325 or shareholders of that entity and claimed under this subsection
297 transfer of all or part of a tax credit. 326 in accordance with any agreement among the partners, members, or
298 1. A taxpayer that sells or transfers a tax credit under 327 shareholders and without regard to the ownership interest of the
299 this subsection and the purchaser or transferee must jointly 328 partners, members, or shareholders in the rehabilitated
300 submit written notice of the sale or transfer to the department 329 certified historic structure.
301 on a form adopted by the department no later than the 30th day 330 (f) If the tax credit is reduced due to a determination, an
302 after the date of the sale or transfer. The notice must include 331 examination, or an audit by the department, the tax deficiency
303 all of the following: 332 must be recovered from the taxpayer that sold or transferred the
304 a. The date of the sale or transfer. 333 tax credit or the purchaser or transferee that claimed the tax
305 b. The amount of the tax credit sold or transferred. 334 credit up to the amount of the tax credit taken.
306 c. The name and federal tax identification number of the 335 (g) Any subsequent deficiencies must be assessed against
307 taxpayer that sold or transferred the tax credit and the name 336 the purchaser or transferee that claimed the tax credit or, in
308 and federal tax identification number of the purchaser or 337 the case of multiple succeeding entities, in the order of tax
309 transferee. 338 credit succession.
310 d. The amount of the tax credit owned by the taxpayer 339 (7) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
311 before the sale or transfer and the amount the selling or 340 CREDITS; FRAUDULENT CLAIMS.—
312 transferring taxpayer retained, if any, after the sale or 341 (a) The department may perform any additional financial and
313 transfer. 342 technical audits and examinations, including examining the
314 2. The sale or transfer of a tax credit under this 343 accounts, books, or records of the taxpayer, to verify the
315 subsection does not extend the period for which a tax credit may 344 legitimacy of the qualified expenses included in a tax credit
316 be carried forward and does not increase the total amount of the 345 return and to ensure compliance with this section. If requested
317 tax credit that may be claimed. 346 by the department, the division must provide technical
318 3. If a taxpayer claims a tax credit for qualified 347 assistance for any technical audits or examinations performed
319 expenses, another taxpayer may not use the same expenses as the 348 under this subsection.
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349 (b) It is grounds for forfeiture of previously claimed and 378 (f) A taxpayer that fails to report and timely pay any tax
350 received tax credits if the department determines, as a result 379 due as a result of the forfeiture of its tax credit violates
351 of an audit or information received from the division, the 380 this section and is subject to applicable penalties and
352 United States Department of the Interior, or the Internal 381 interest.
353 Revenue Service, that a taxpayer received a tax credit pursuant 382 (8) ANNUAL REPORT.—Based on the applications submitted and
354 to this section to which the taxpayer was not entitled. In the 383 approved, the department shall submit a report by December 1 of
355 case of fraud, the taxpayer may not claim any future tax credits 384 each year to the President of the Senate and the Speaker of the
356 under this section. 385 House of Representatives which identifies, in the aggregate, all
357 (c) The taxpayer must return forfeited tax credits to the 386 of the following:
358 department, and such funds shall be paid into the General 387 (a) The number of people employed during construction
359 Revenue Fund. 388 phases of the certified rehabilitation who worked to complete
360 (d) The taxpayer must file with the department an amended 389 the project, including contractors and subcontractors.
361 tax return or such other report as the department prescribes and 390 (b) The use of each newly rehabilitated building and the
362 must pay any required tax within 60 days after the taxpayer 391 number of additional people employed for ongoing operations
363 receives notification from the United States Internal Revenue 392 after the certified historic structure is placed in service.
364 Service that a previously approved tax credit has been revoked 393 (c) The number of affordable housing units created or
365 or modified, if uncontested, or within 60 days after a final 394 preserved.
366 order is issued following proceedings involving a contested 395 (d) The property values before and after the certified
367 revocation or modification order. 396 rehabilitations.
368 (e) A notice of deficiency may be issued by the department 397 (9) DEPARTMENT DUTIES.—The department shall:
369 at any time within 5 years after the date on which the taxpayer 398 (a) Establish or amend any necessary forms required to
370 receives notification from the Internal Revenue Service that a 399 claim a tax credit under this section.
371 previously approved tax credit has been revoked or modified. If 400 (b) Provide administrative guidelines and procedures
372 a taxpayer fails to notify the department of any change in its 401 required to administer this section, including rules
373 tax credit claimed, a notice of deficiency may be issued at any 402 establishing an entitlement to and sale or transfer of a tax
374 time. In either case, the amount of any proposed assessment set 403 credit under this section.
375 forth in such notice of deficiency is limited to the amount of 404 (c) Provide examination and audit procedures required to
376 any deficiency resulting under this section from the 405 administer this section.
377 recomputation of the taxpayer’s tax for the taxable year. 406 (10) RULES.—The department and the division may adopt rules
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407 to administer this section. 436 enumerated in s. 220.197.
408 Section 2. Subsection (26) is added to section 213.053, 437 Section 4. Paragraph (a) of subsection (1) of section
409 Florida Statutes, to read: 438 220.13, Florida Statutes, is amended to read:
410 213.053 Confidentiality and information sharing.— 439 220.13 “Adjusted federal income” defined.—
411 (26) The department may make available to the Division of 440 (1) The term “adjusted federal income” means an amount
412 Historical Resources of the Department of State and the 441 equal to the taxpayer’s taxable income as defined in subsection
413 Secretary of the United States Department of the Interior or his 442 (2), or such taxable income of more than one taxpayer as
414 or her delegate, exclusively for official purposes, information 443 provided in s. 220.131, for the taxable year, adjusted as
415 for the purposes of administering the Main Street Historical 444 follows:
416 Tourism and Revitalization Act pursuant to s. 220.197. 445 (a) Additions.—There shall be added to such taxable income:
417 Section 3. Subsection (8) of section 220.02, Florida 446 1.a. The amount of any tax upon or measured by income,
418 Statutes, is amended to read: 447 excluding taxes based on gross receipts or revenues, paid or
419 220.02 Legislative intent.— 448 accrued as a liability to the District of Columbia or any state
420 (8) It is the intent of the Legislature that credits 449 of the United States which is deductible from gross income in
421 against either the corporate income tax or the franchise tax be 450 the computation of taxable income for the taxable year.
422 applied in the following order: those enumerated in s. 631.828, 451 b. Notwithstanding sub-subparagraph a., if a credit taken
423 those enumerated in s. 220.191, those enumerated in s. 220.181, 452 under s. 220.1875, s. 220.1876, s. 220.1877, or s. 220.1878 is
424 those enumerated in s. 220.183, those enumerated in s. 220.182, 453 added to taxable income in a previous taxable year under
425 those enumerated in s. 220.1895, those enumerated in s. 220.195, 454 subparagraph 11. and is taken as a deduction for federal tax
426 those enumerated in s. 220.184, those enumerated in s. 220.186, 455 purposes in the current taxable year, the amount of the
427 those enumerated in s. 220.1845, those enumerated in s. 220.19, 456 deduction allowed shall not be added to taxable income in the
428 those enumerated in s. 220.185, those enumerated in s. 220.1875, 457 current year. The exception in this sub-subparagraph is intended
429 those enumerated in s. 220.1876, those enumerated in s. 458 to ensure that the credit under s. 220.1875, s. 220.1876, s.
430 220.1877, those enumerated in s. 220.1878, those enumerated in 459 220.1877, or s. 220.1878 is added in the applicable taxable year
431 s. 220.193, those enumerated in former s. 288.9916, those 460 and does not result in a duplicate addition in a subsequent
432 enumerated in former s. 220.1899, those enumerated in former s. 461 year.
433 220.194, those enumerated in s. 220.196, those enumerated in s. 462 2. The amount of interest which is excluded from taxable
434 220.198, those enumerated in s. 220.1915, those enumerated in s. 463 income under s. 103(a) of the Internal Revenue Code or any other
435 220.199, and those enumerated in s. 220.1991, and those 464 federal law, less the associated expenses disallowed in the
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465 computation of taxable income under s. 265 of the Internal 494 attributable expenses for the taxable year.
466 Revenue Code or any other law, excluding 60 percent of any 495 9. The amount taken as a credit for the taxable year under
467 amounts included in alternative minimum taxable income, as 496 s. 220.1895.
468 defined in s. 55(b)(2) of the Internal Revenue Code, if the 497 10. Up to nine percent of the eligible basis of any
469 taxpayer pays tax under s. 220.11(3). 498 designated project which is equal to the credit allowable for
470 3. In the case of a regulated investment company or real 499 the taxable year under s. 220.185.
471 estate investment trust, an amount equal to the excess of the 500 11. Any amount taken as a credit for the taxable year under
472 net long-term capital gain for the taxable year over the amount 501 s. 220.1875, s. 220.1876, s. 220.1877, or s. 220.1878. The
473 of the capital gain dividends attributable to the taxable year. 502 addition in this subparagraph is intended to ensure that the
474 4. That portion of the wages or salaries paid or incurred 503 same amount is not allowed for the tax purposes of this state as
475 for the taxable year which is equal to the amount of the credit 504 both a deduction from income and a credit against the tax. This
476 allowable for the taxable year under s. 220.181. This 505 addition is not intended to result in adding the same expense
477 subparagraph shall expire on the date specified in s. 290.016 506 back to income more than once.
478 for the expiration of the Florida Enterprise Zone Act. 507 12. The amount taken as a credit for the taxable year under
479 5. That portion of the ad valorem school taxes paid or 508 s. 220.193.
480 incurred for the taxable year which is equal to the amount of 509 13. The amount taken as a credit for the taxable year under
481 the credit allowable for the taxable year under s. 220.182. This 510 s. 220.196. The addition in this subparagraph is intended to
482 subparagraph shall expire on the date specified in s. 290.016 511 ensure that the same amount is not allowed for the tax purposes
483 for the expiration of the Florida Enterprise Zone Act. 512 of this state as both a deduction from income and a credit
484 6. The amount taken as a credit under s. 220.195 which is 513 against the tax. The addition is not intended to result in
485 deductible from gross income in the computation of taxable 514 adding the same expense back to income more than once.
486 income for the taxable year. 515 14. The amount taken as a credit for the taxable year
487 7. That portion of assessments to fund a guaranty 516 pursuant to s. 220.198.
488 association incurred for the taxable year which is equal to the 517 15. The amount taken as a credit for the taxable year
489 amount of the credit allowable for the taxable year. 518 pursuant to s. 220.1915.
490 8. In the case of a nonprofit corporation which holds a 519 16. The amount taken as a credit for the taxable year
491 pari-mutuel permit and which is exempt from federal income tax 520 pursuant to s. 220.199.
492 as a farmers’ cooperative, an amount equal to the excess of the 521 17. The amount taken as a credit for the taxable year
493 gross income attributable to the pari-mutuel operations over the 522 pursuant to s. 220.1991.
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523 18. The amount taken as a credit for the taxable year 552 result of claiming such credit. Section 624.5091 does not limit
524 pursuant to s. 220.197. 553 such credit in any manner.
525 Section 5. Subsection (7) of section 624.509, Florida 554 Section 7. (1) The Department of Revenue may, and all
526 Statutes, is amended to read: 555 conditions are deemed met to, adopt emergency rules under s.
527 624.509 Premium tax; rate and computation.— 556 120.54(4), Florida Statutes, for the purpose of implementing the
528 (7) Credits and deductions against the tax imposed by this 557 Main Street Historical Tourism and Revitalization Act.
529 section shall be taken in the following order: deductions for 558 (2) Notwithstanding any other law, emergency rules adopted
530 assessments made pursuant to s. 440.51; credits for taxes paid 559 under this section are effective for 6 months after adoption and
531 under ss. 175.101 and 185.08; credits for income taxes paid 560 may be renewed during the pendency of procedures to adopt
532 under chapter 220 and the credit allowed under subsection (5), 561 permanent rules addressing the subject of the emergency rules.
533 as these credits are limited by subsection (6); the credit 562 (3) This section shall take effect upon this act becoming a
534 allowed under s. 624.51057; the credit allowed under s. 563 law and expires July 1, 2025.
535 624.51058; the credit allowed under s. 220.197; and all other 564 Section 8. This act applies to taxable years beginning, and
536 available credits and deductions. 565 for qualified expenses incurred, on or after January 1, 2025.
537 Section 6. Section 624.5095, Florida Statutes, is created 566 Section 9. Except as otherwise expressly provided in this
538 to read: 567 act and except for this section, which shall take effect upon
539 624.5095 Premium tax credits related to historic 568 this act becoming a law, this act shall take effect July 1,
540 preservation.— 569 2024.
541 (1) Tax credits accrued through a certified rehabilitation
542 as defined in s. 220.197 and 36 C.F.R. s. 67.2 may be used to
543 offset insurance premium tax owed by insurers under s. 624.509
544 and as limited under s. 624.509(5).
545 (2) The certified rehabilitation may either be completed by
546 the insurer pursuant to s. 220.197; or the insurer may purchase
547 the tax credits from a different entity that accrued or
548 purchased the tax credits pursuant s. 220.197.
549 (3) An insurer claiming a credit against insurance premium
550 tax liability under this section is not required to pay any
551 additional retaliatory tax levied pursuant to s. 624.5091 as a
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The Florida Senate
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The Florida Senate
APPEARANCE RECORD 6
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This form is part of the public record for this meeting. 5-001 (08/iO/2021)
THE FLORIDA SENATE
SENATOR NICK DICEGLIE
District 18
Kathleen Passidomo Dennis Baxley
President ofthe Senate President Pro Tempore
January 11,2024
Dear Chair Trumbull,
I respectfully request that SB 1166: Main Street Historical Tourism and Revitalization
Act be placed on the agenda of the Commerce and Tourism Committee at your earliest
convenience. If my office can be of any assistance to the committee please do not hesitate to
contact me at DiCeglie.Nick@flsenate.gov or (850) 487-5018. Thank you for your
consideration.
Sincerely,
Nick DiCeglie
State Senator, District l8
THE FLORIDA SENATE COMMITTEES:
Military and Veterans Affairs, Space, and Domestic
Securiv, vice Chah
CourtSmart Tag Report
Tallahassee, Florida 32399-1 100 Approprhtions Committee on Criminal and Civil Justice
Banking and lnsurance
Commerce and Tourism
Fiscal Policy Room: SB 110 Case No.: Type:
Rules
Transportation Caption: Senate Commerce and Tourism Committee Judge:
JOINT COMMITTEES: Started: 1/16/2024 1:32:37 PM
Joint Select Committee on Collective Bargaining
Ends: 1/16/2024 2:20:06 PM Length: 00:47:30
SENATORVICTOR M. TORRES, JR.
25th District
1:32:36 PM Chair Trumbull calls meeting to order
1:32:43 PM Roll call
January 16,2024 1:32:55 PM Quorum present
1:33:01 PM Chair Trumbull
Jay Trumbull, Chair 1:33:14 PM Tab 1 - SB 314, Business Transactions TP'd
1:33:28 PM Tab 2 - SB 890, Taxation introduced
Commerce and Tourism 1:33:41 PM Explanation by Senator Boyd
404 S Monroe Street 1:34:04 PM Chair Trumbull
Tallahassee 1:34:12 PM Tasha Carter, DFS, Office of Insurance Consumer Advocate; waives in support
1:34:16 PM Murphy Kennedy Giering, FL Realtors; waives in support
1:34:27 PM Parker Powers; CFO, Jimmy Patronis; waives in support
1:34:34 PM Debate
Please accept this letter of excusal from myself for the January 16ff meeting of the Commerce 1:34:37 PM Senator Wright
and Tourism committee due to an illness. Please accept this letter as a formal request for excusal 1:34:48 PM Senator Rodriguez
of this absence. Please let me know if you have any questions or need any additional 1:35:06 PM Senator Stewart
information. 1:35:15 PM Senator Gruters
1:35:31 PM Chair Trumbull
1:35:39 PM Closure by Senator Boyd
Respectfully Submitted, 1:35:43 PM Roll call
1:35:54 PM SB 890 reported favorably
1:36:10 PM Tab 3 - SB 612, Building Construction introduced
1:37:22 PM Explanation by Senator Hooper
1:37:33 PM Amendment Barcode #645676 introduced
1:37:53 PM Explanation of Amendment by Senator Hooper
1:37:57 PM Chair Trumbull
1:38:04 PM Amendment adopted
Victor M. Torres, Jr. 1:38:08 PM Amendment Barcode No. 568094 introduced
Florida State Senator 1:38:22 PM Explanation of Amendment by Senator Hooper
1:38:25 PM Senator Trumbull
District 25 1:38:29 PM Amendment adopted
1:38:33 PM Senator Trumbull
1:38:38 PM Edward Briggs, FL Refrigeration & Air Conditioning, Generators Assoc.; speaks in support
1:38:48 PM Chair Trumbull
1:39:11 PM Closure waived
1:39:15 PM Roll call
1:39:21 PM CS/SB 612 reported favorably
1:39:30 PM Tab 6 - SB 1166, Main Street Historical Tourism and Revitalization Act introduced
1:39:47 PM Explanation by Senator DiCeglie
1:39:53 PM Introduction of Amendment Barcode No. 857016
1:40:03 PM Explanation of Amendment by Senator DiCeglie
1:40:13 PM Chair Trumbull
1:40:30 PM Katherine Woodby, FL Dept. of State; waives in support
1:40:53 PM Amendment adopted
1:40:56 PM Debate
1:41:02 PM Chair Trumbull
1:41:19 PM Kim Dirkins, 1000 Friends of FL; waives in support
1:41:21 PM Maisie Wagner; waives in support
REPLY TO:
D 1Ol Church Street, Suite 305, Kissimmee, Florida 34741 (407) 846-5187 FAX: (850) 410-4817
1:41:29 PM Melissa Wyllie; FL Trust for Historic Preservation; waives in support
O 214 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399-1 100 (850) 487-5025 1:41:35 PM Mark Zubaly; waives in support
Senate's Website'. www.flsenate.gov
1:41:44 PM Chair Trumbull
1:41:50 PM Closure by Senator DiCeglie
KATHLEEN PASSIDOMO DENNIS BAXLEY 1:41:52 PM Roll call
President of the Senate President Pro Tempore
1:41:57 PM CS/SB 1166 reported favorably
1:42:07 PM Tab 4 - SB 842, Florida Kratom Consumer Protection Act
1:42:14 PM Explanation by Senator Perry
1:42:47 PM Chair Trumbull
1:42:54 PM Dr. Laura Chilcutt, Nemours Children's Health; waives in support
1:43:02 PM Mac Haddow, speaks in support
1:45:09 PM Ellen Snelling; speaks against
1:48:29 PM Question
1:49:14 PM Senator Gruters
1:49:47 PM Response by Mac Haddow
1:52:12 PM Teresa Miller; speaks against
1:55:59 PM Chair Trumbull
1:56:07 PM Debate
1:56:09 PM Senator Gruters
1:56:55 PM Chair Trumbull
1:57:42 PM Closure by Senator Perry
1:57:46 PM Roll call
1:58:40 PM SB 842 reported favorably
1:58:57 PM Chair Trumbull
1:59:09 PM Recording Paused
2:06:47 PM Recording Resumed
2:06:54 PM Chair Trumbull
2:06:55 PM Tab 5 - SB 1126, Regulation of Auxiliary Containers
2:07:13 PM Explanation by Senator Martin
2:07:52 PM Chair Trumbull
2:08:40 PM Late-filed Amendment Barcode No. 354080 introduced
2:08:53 PM Explanation of Amendment by Senator Martin
2:09:46 PM Chair Trumbull
2:09:57 PM Samantha Padgett; waives in support
2:10:03 PM Chair Trumbull
2:10:07 PM Closure waived
2:10:09 PM Amendment adopted
2:10:12 PM Chair Trumbull
2:10:18 PM Jackson Oberlink, Florida Rising; speaks against
2:12:15 PM David Cullen, Sierra Club Florida; speaks against
2:13:37 PM Charles Horowitz; speaks against
2:15:45 PM Angela Bonds, Florida Retail Federation; waives in support
2:15:52 PM Holly Parker Curry; speaks against
2:17:58 PM Samatha Padgett , FL Restaurant & Lodging Association; waives in support
2:18:09 PM Yenisbel Vilorio, Six Action; waives against
2:18:13 PM Karen Woodall, Earth Justice; waives against
2:18:20 PM Chad Kunde, FL Chamber of Commerce; waives in support
2:18:22 PM Andy Palmer, American Recyclable Plastic Bag Alliance; waives in support
2:18:34 PM Chair Trumbull
2:18:41 PM Closure by Senator Martin
2:18:46 PM Roll call
2:19:18 PM CS/SB 1126 reported favorably
2:19:33 PM Chair Trumbull
2:19:48 PM Senator Rodriguez moves to adjourn
2:19:56 PM Meeting adjourned
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