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Post Meeting Packet — Florida Senate Commerce and Tourism Committee (February 6, 2024)

Summary

The post-meeting packet for the Florida Senate Commerce and Tourism committee meeting of Tuesday, February 6, 2024 contains the expanded agenda, which lists SB 352, CS/SB 458, CS/SB 966, CS/SB 1074 and SB 1206 with committee actions. The Senate staff analysis says CS/SB 352 (Virtual Currency Sales Tax Holiday) provides a sales tax exemption from June 1, 2025, through July 31, 2025, on retail sales by specified establishments if payment is made in virtual currency, and that the Revenue Estimating Conference has not reviewed the bill. The agenda records Yeas 5 Nays 0 for SB 352 and Yeas 4 Nays 1 for SB 1206 (Live Performances). Letters to Chair Trumbull from Senator Linda Stewart and Senator Alexis M. Calatayud request an excused absence and ask that Senator Rodriguez present SB 1074.

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

Cite this document

“Post Meeting Packet — Florida Senate Commerce and Tourism Committee (February 6, 2024).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-02-06-post-meeting-packet-7884-f61342a835/, SHA-256 69007c5c0728513f6b40d6e34d876c5b301e08281d8953af277dba087476e1fe.

Full text

02/06/2024 - Commerce and Tourism (11:30 AM - 2:00 PM)                                       2024 Regular Session
Customized                                                                                    02/07/2024 8:52 AM
Agenda Order

 Tab 1   SB 352 by Brodeur; (Identical to H 00369) Virtual Currency Sales Tax Holiday
441992   A       S     RCS             CM, Brodeur                   Delete L.24:              02/06 12:39 PM

 Tab 2   CS/SB 458 by HP, Brodeur; (Compare to H 00011) Invalid Restrictive Covenants in Health Care
876150   A      S      RCS          CM, Brodeur                  Delete L.57 - 69:               02/06 12:51 PM

 Tab 3   CS/SB 966 by BI, Burgess; (Similar to CS/CS/H 00623) Home Warranty Transfers
488320   A      S      RCS           CM, Burgess                 Delete L.90 - 93:             02/06 12:51 PM

Tab 4    CS/SB 1074 by BI, Calatayud; (Identical to CS/H 01031) Debt Relief Services


Tab 5    SB 1206 by Martin; (Compare to H 00015) Live Performances




                                                         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, February 6, 2024
                    TIME:         11:30 a.m.—2:00 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 352                                 Virtual Currency Sales Tax Holiday; Defining the           Fav/CS
        Brodeur                                terms “convenience store” and “virtual currency”;              Yeas 5 Nays 0
        (Identical H 369)                      providing a sales tax exemption during a specified
                                               period for the retail sale of tangible personal property
                                               and services which is paid in virtual currency and is
                                               made by specified establishments, etc.

                                               CM       02/06/2024 Fav/CS
                                               FT
                                               AP


   2    CS/SB 458                              Invalid Restrictive Covenants in Health Care;              Fav/CS
        Health Policy / Brodeur                Specifying that certain restrictive covenants in               Yeas 5 Nays 0
        (Compare H 11)                         employment agreements relating to certain licensed
                                               physicians are not supported by a legitimate business
                                               interest; specifying that such restrictive covenants are
                                               void and unenforceable, etc.

                                               HP       01/30/2024 Fav/CS
                                               CM       02/06/2024 Fav/CS
                                               RC


   3    CS/SB 966                              Home Warranty Transfers; Providing a limitation on         Fav/CS
        Banking and Insurance / Burgess        the application of provisions relating to home warranty        Yeas 5 Nays 0
        (Similar CS/CS/H 623)                  contract assignments; providing requirements for
                                               express written warranties and home warranties
                                               transferred to subsequent home purchasers;
                                               specifying conditions for the automatic transfer of
                                               home warranties that are conditions included in
                                               maintenance contracts; providing requirements of a
                                               subsequent purchaser who accepts the assignment of
                                               a maintenance contract, and of a builder or home
                                               warranty association in such instance, etc.

                                               BI       01/29/2024 Fav/CS
                                               CM       02/06/2024 Fav/CS
                                               RC




                                                                                                                         S-036 (10/2008)
02062024.1302                                                                                                                Page 1 of 2
COMMITTEE MEETING EXPANDED AGENDA
Commerce and Tourism
Tuesday, February 6, 2024, 11:30 a.m.—2:00 p.m.

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

  4     CS/SB 1074                         Debt Relief Services; Providing an exception from        Favorable
        Banking and Insurance /            specified provisions for telemarketers and sellers who       Yeas 5 Nays 0
        Calatayud                          provide debt relief services under certain
        (Identical CS/H 1031)              circumstances, etc.

                                           BI       01/22/2024 Fav/CS
                                           CM       02/06/2024 Favorable
                                           RC


  5     SB 1206                            Live Performances; Citing this act as the "Right to      Favorable
        Martin                             Rock Act"; prohibiting public venue owners or                Yeas 4 Nays 1
        (Compare H 15)                     operators from canceling certain live performances on
                                           specified bases; providing an exception; providing
                                           that venue owners or operators who violate the
                                           prohibition bear the costs enumerated in the related
                                           contract with the artist, performer, or musical group
                                           whose performance was canceled, etc.

                                           CM       02/06/2024 Favorable
                                           JU
                                           RC


        Other Related Meeting Documents




                                                                                                                   S-036 (10/2008)
02062024.1302                                                                                                          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:           CS/SB 352
INTRODUCER:     Commerce and Tourism Committee and Senator Brodeur
SUBJECT:        Virtual Currency Sales Tax Holiday
DATE:           February 6, 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 352 provides an exemption from sales tax for a two month period from June 1, 2025,
        through July 31, 2025, on the retail sale of tangible personal property and taxable services made
        by the following establishments if payment is made in virtual currency:
         Retail service stations that sells motor fuels or special fuels to the public;
         Food service establishments;
         Public food service establishments;
         Grocery stores;
         Convenience stores;
         Cosmetology salons or specialty salons;
         Spas;
         Barbershops; and
         Bars or nightclubs.

        The Revenue Estimating Conference has not reviewed the bill.

        The bill takes effect upon becoming a law.
BILL: CS/SB 352                                                                                         Page 2

    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

          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

          Virtual Currency

          The term “currency” is defined in Florida law as the coin and paper money of the United States
          or of any other country which is designated as legal tender and which circulates and is
          customarily used and accepted as a medium of exchange in the country of issuance.9

          The term “virtual currency” is defined as a medium of exchange in electronic or digital format
          that is not currency. The term does not include a medium of exchange in electronic or digital
          format that is:
           Issued by or on behalf of a publisher and used solely within an online game, game platform,
              or family of games sold by the same publisher or offered on the same game platform; or
           Used exclusively as part of a consumer affinity or rewards program and can be applied solely
              as payment for purchases with the issuer or other designated merchants but cannot be
              converted into or redeemed for currency or another medium of exchange.10

          Some virtual currencies may be used to purchase goods and services in the real economy and can
          be converted into government-issued currencies through virtual currency exchanges. Virtual
          currency transactions can occur online through a network that can be accessed using wallet

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.
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 Feb. 5, 2024).
9
  Section 560.103(12), F.S.
10
   Section 560.103(36), F.S.
BILL: CS/SB 352                                                                                                            Page 3

         software. Other virtual currencies can only be used within virtual economies (e.g. within online
         role-playing games) and may not be readily exchanged for government-issued currencies.11
         According to the United States Government Accountability Office, the total market capitalization
         of all virtual currencies was about $2.2 trillion in 2021.12 Overall, 17 percent of United States
         adults say they have ever invested in, traded, or used a cryptocurrency (a type of virtual
         currency).13

III.     Effect of Proposed Changes:

         The bill provides an exemption from sales tax for a two month period from June 1, 2025, through
         July 31, 2025, on the retail sale of tangible personal property and taxable services made by the
         following establishments if payment is made in virtual currency:
          Retail service stations that sells motor fuels or special fuels under NAICS code 457120;14
          Food service establishments permitted or licensed under ch. 500, F.S.;
          Public food service establishments licensed under ch. 509, F.S.;
          Grocery stores;
          Convenience stores;
          Cosmetology salons or specialty salons licensed under ch. 477, F.S.;
          Spas;
          Barbershops;15 and
          Bars or nightclubs.

         The bill defines a “convenience store” as a business that is engaged primarily in the retail sale of
         groceries or motor fuels or special fuels and may offer food services to the public. The term
         includes businesses providing motor fuels or special fuels to the public, which also offer
         groceries or food service.

         The bill defines the term “virtual currency” as having the same meaning as in s. 560.103, F.S.,
         and specifies that the definition does not include central bank digital currency.16

         The Department of Revenue is authorized to adopt emergency rules.
11
   United States Government Accountability Office, Virtual Currencies (December 2021), p. 9
https://www.gao.gov/assets/gao-22-105462.pdf (last visited Feb. 5, 2024).
12
   Id at p. 1
13
   Pew Research Center, Majority of Americans Aren’t Confident in the Safety and Reliability of Cryptocurrency (April 10,
2023), https://www.pewresearch.org/short-reads/2023/04/10/majority-of-americans-arent-confident-in-the-safety-and-
reliability-of-cryptocurrency/ (last visited February 5, 2024).
14
   NAICS code 457120 is comprised of establishments generally known as gasoline stations (except those with convenience
stores) or truck stops primarily engaged in (1) retailing automotive fuels (e.g. gasoline, diesel fuel, gasohol, alternative fuels),
or (2) retailing these fuels in combination with activities; such as providing repair services, selling automotive oils,
replacement parts, and accessories; and/or providing food services. https://usa.infocnae.com/codes/naics-457120/ (last visited
Feb. 5, 2024).
15
   A “barbershop” is defined as any place of business wherein the practice of barbering is carried on. Section 476.034(3), F.S.
16
   The term “central bank digital currency” means a digital currency, a digital medium of exchange, or a digital monetary unit
of account issued by the United States Federal Reserve System, a federal agency, a foreign government, a foreign central
bank, or a foreign reserve system, that is made directly available to a consumer by such entities. The term includes a digital
currency, a digital medium of exchange, or a digital monetary unit of account issued by the United States Federal Reserve
System, a federal agency, a foreign government, a foreign central bank, or a foreign reserve system, that is processed or
validated directly by such entities. Section 671.201, F.S.
BILL: CS/SB 352                                                                                                         Page 4


         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,17,18 which is
                  $2.3 million or less for Fiscal Year 2024-2025.19

                  The Revenue Estimating Conference 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.

         E.       Other Constitutional Issues:

                  None identified.




17
   FLA. CONST. art. VII, s. 18(d).
18
   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 Feb.
5, 2024).
19
   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 Feb. 5, 2024).
 BILL: CS/SB 352                                                                                                    Page 5

  V.        Fiscal Impact Statement:

            A.      Tax/Fee Issues:

                    The Revenue Estimating Conference has not reviewed this bill.

            B.      Private Sector Impact:

                    The establishments listed in the bill will experience reduced costs associated with the
                    retail sale of tangible personal property and taxable services if payments are made in
                    virtual currency.

            C.      Government Sector Impact:

                    None.

 VI.        Technical Deficiencies:

            None.

VII.        Related Issues:

            According to the Department of Revenue, virtual currency could include any payment by digital
            means, including a payment made with a credit or debit card.20

            Additionally, the bill includes a spa as one of the establishments for which the sales tax
            exemption would apply. It is unclear what is meant by a spa as there is no specific licensing
            requirement or statutory definition for the term.

VIII.       Statutes Affected:

            None.

 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 Feb. 6, 2024:

                    The committee substitute specifies that the definition of “virtual currency” does not
                    include central bank digital currency as defined in s. 671.201, F.S.

            B.      Amendments:

                    None.



 20
      Department of Revenue analysis for SB 352 (2024). On file with Senate Commerce and Tourism Committee.
BILL: CS/SB 352                                                                                                                     Page 6

       This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
    Florida Senate - 2024                         COMMITTEE AMENDMENT
    Bill No. SB 352




                            Ì441992AÎ441992


                            LEGISLATIVE ACTION
          Senate                    .                   House
         Comm: RCS                  .
        02/06/2024                  .
                                    .
                                    .
                                    .




    The Committee on Commerce and Tourism (Brodeur) recommended the
    following:


1       Senate Amendment
2
3       Delete line 24
4   and insert:
5   560.103, Florida Statutes. The term does not include central
6   bank digital currency as defined in s. 671.201, Florida
7   Statutes.




                               Page 1 of 1
    2/2/2024 12:18:29 PM                                 577-02061-24
       Florida Senate - 2024                                         SB 352          Florida Senate - 2024                                         SB 352



       By Senator Brodeur




       10-00075B-24                                               2024352__          10-00075B-24                                            2024352__
1                              A bill to be entitled                          30     establishments in this state:
2           An act relating to a virtual currency sales tax                   31          (a) A retail service station that sells motor fuels or
3           holiday; defining the terms “convenience store” and               32     special fuels to the public and is classified under the North
4           “virtual currency”; providing a sales tax exemption               33     American Industry Classification System code 457120.
5           during a specified period for the retail sale of                  34          (b) A food service establishment permitted or licensed
6           tangible personal property and services which is paid             35     under chapter 500, Florida Statutes, or a public food service
7           in virtual currency and is made by specified                      36     establishment licensed under chapter 509, Florida Statutes.
8           establishments; authorizing the Department of Revenue             37          (c) A grocery store.
9           to adopt emergency rules; providing that such rules               38          (d) A convenience store.
10          are effective for a specified period of time;                     39          (e) A cosmetology salon or specialty salon licensed under
11          providing an effective date.                                      40     chapter 477, Florida Statutes; a spa; or a barbershop as defined
12                                                                            41     in s. 476.034, Florida Statutes.
13     Be It Enacted by the Legislature of the State of Florida:              42          (f) A bar or nightclub.
14                                                                            43          (3) The Department of Revenue is authorized, and all
15          Section 1. Virtual currency transactions; sales tax               44     conditions are deemed met, to adopt emergency rules pursuant to
16     holiday.—                                                              45     s. 120.54(4), Florida Statutes, for the purpose of implementing
17          (1) As used in this section, the term:                            46     this section. Notwithstanding any other law, emergency rules
18          (a) “Convenience store” means a business that is engaged          47     adopted under this section are effective for the length of the
19     primarily in the retail sale of groceries or motor fuels or            48     exemption period and may be renewed during the pendency of
20     special fuels and may offer food services to the public. The           49     procedures to adopt permanent rules addressing the subject of
21     term includes businesses providing motor fuels or special fuels        50     the emergency rules.
22     to the public which also offer groceries or food service.              51          Section 2. This act shall take effect upon becoming a law.
23          (b) “Virtual currency” has the same meaning as in s.
24     560.103, Florida Statutes.
25          (2) The tax levied under chapter 212, Florida Statutes, may
26     not be collected during the period of June 1, 2025, through July
27     31, 2025, on the retail sale of tangible personal property or
28     services which is taxable under that chapter if the sale is paid
29     in virtual currency and the sale is made by any of the following

                                    Page 1 of 2                                                                  Page 2 of 2
     CODING: Words stricken are deletions; words underlined are additions.         CODING: Words stricken are deletions; words underlined are additions.
                                               THE FLORIDA SENATE                                     COMMITTEES:
                                                                                                      Aooropriations Committee on Agriculture,                           2024 AGENCY LEGISLATIVE BILL ANALYSIS
                                                                                                       Ehviionment, and General Government, C/,a,l
                                                    Tallahassee, Florida 32399-1 100                  Health Policy, Vice Chair
                                                                                                      Appropriations                                                            DEPARTMENT OF REVENUE
                                                                                                      Appropriations Committee on Health
                                                                                                       and Human Services
                                                                                                      Children, Families, and ElderAffairs
                                                                                                      Community Affairs
                                                                                                      Regulated lndustries
                                                                                                      Rules
                                                                                                                                                                                             BILL INFORMATION
                                                                                                      JOINT COMMITTEE:
                                                                                                      Joint Legislative Auditing Committee
SENATOR JASON BRODEUR                                                                                                                                BILL NUMBER:        SB 352
       1Oth District
                                                                                                                                                     BILL TITLE:         Virtual Currency Sales Tax Holiday
   November 14th,2023                                                                                                                                BILL SPONSOR:       Senator Brodeur
                                                                                                                                                     EFFECTIVE DATE:     Upon becoming a law
   The Honorable Jay Trumbull
   Chair, Committee on Commerce and Tourism                                                                                                                                            COMMITTEES OF REFERENCE
   313 Senate Building
   404 South Monroe Street                                                                                                                           1) N/A
   Tallahassee, FL 32399-1 I 00                                                                                                                      2)
                                                                                                                                                     3)
   Dear Chair Trumbull,                                                                                                                              4)
                                                                                                                                                     5)
   I respectfully request that Senate Bilt 352, Virtual Currency Sales Tax Holiday, be placed on
   the agenda of the Commerce and Tourism Committee meeting to be considered at your earliest                                                                                              CURRENT COMMITTEE
   convenience.
                                                                                                                                                     N/A
   If you have any questions or concems, please do not hesitate to reach out to me or my office.
                                                                                                                                                                                               SIMILAR BILLS
                                                                                                                                                     BILL NUMBER:
   Sincerely,
                                                                                                                                                     SPONSOR:


   j^^W                                                                                                                                              BILL NUMBER:      HB 369
                                                                                                                                                                                             IDENTICAL BILLS


                                                                                                                                                     SPONSOR:          Representative Barnaby
   Senator Jason Brodeur - District 10

                                                                                                                                                                                           PREVIOUS LEGISLATION
   CC: Todd McKay - Staff Director                                                                                                                   YEAR/BILL NUMBER/SPONSOR/LAST ACTION:
   Jennifer Renner - Deputy Staff Director
   Renita Hayes - Committee Administrative Assistant
                                                                                                                                                                                       BILL ANALYSIS INFORMATION
                                                                                                                                                     DATE OF ANALYSIS:            November 14, 2023
                                                                                                                                                     AGENCY CONTACT:              Alec Yarger (850) 717-6153
                  REPLY TO:
                    D 110 Timberlachen Circle, Suite 1012, Lake Mary, Florida32746 (407)333'1802
                    O 405 Senate Building,4o4 South Monroe Street, Tallahassee, Florida 32399-1100 (850) 487-5010
                                                    Senate's Website: www.flsenate.gov


                       KATHLEEN PASSIDOMO                                                         DENNIS BAXLEY
                        President of the Senate                                               President Pro Tempore
HB 352                                                                                                            HB 352


                                                POLICY ANALYSIS                                                   5. ARE THERE ANY GUBERNATORIAL APPOINTMENTS OR CHANGES TO EXISTING BOARDS, TASK
                                                                                                                     FORCES, COUNCILS, COMMISSIONS, ETC. REQUIRED BY THIS BILL? ☐ YES ☒ NO
1. ANALYSIS OF EACH SECTION THAT AFFECTS THE DEPARTMENT OF REVENUE.
                                                                                                                        Board:
Section 1. Virtual currency transactions; sales tax holiday. (pp. 1-2):
                                                                                                                        Board Purpose:
                                             PRESENT SITUATION                                                          Who Appoints:

Tangible personal property is subject to sales and use tax, unless specifically exempt. A sales tax exemption           Changes:
for purchases of taxable goods and services made with virtual currency does not currently exist.                        Bill Section Number(s):
                                              EFFECT OF THE BILL
                                                                                                                                                                  FISCAL ANALYSIS
The bill provides an exemption from sales tax beginning June 1, 2025, through July 31, 2025, on the retail sale
of tangible personal property and taxable services made by the following establishments if payment is made in     6. DOES THE BILL HAVE A FISCAL IMPACT TO LOCAL GOVERNMENT? The Department of Revenue
virtual currency:                                                                                                    does not conduct this analysis. The Revenue Estimating Conference will determine the revenue impact, if
                                                                                                                     any, to local governments.
         A retail service station classified under NAICS code 457120;
         A food service establishment permitted or licensed under Ch. 500, F.S.;                                  7. DOES THE BILL HAVE A FISCAL IMPACT TO STATE GOVERNMENT?
         A public food service establishment licensed under Ch. 509, F.S.;
         A grocery store;                                                                                                                           The Department of Revenue does not conduct this analysis. The Revenue
         A convenience store;                                                                                           Revenues:                   Estimating Conference will determine the revenue impact, if any, to state
         A cosmetology salon or specialty salon licensed under Ch. 477, F.S.;                                                                       government.
         A spa;                                                                                                         Expenditures:
         A barbershop as defined in s. 476.034, F.S.; and                                                               (Department of
         A bar or nightclub.                                                                                                                        ☐ NO IMPACT ☐ LESS THAN $25,000 ☐ MORE THAN $25,000
                                                                                                                        Revenue expenditures
                                                                                                                                                    ☐ UNABLE TO DETERMINE ☒ OPERATIONAL IMPACT ONLY
                                                                                                                        and operational
Section 2. (p. 2): Provides that the bill shall be effective upon becoming law.                                         impacts)
                                                                                                                        Does the legislation
2. DOES THE DEPARTMENT EXPECT TO DEVELOP, ADOPT, MODIFY OR ELIMINATE ANY RULES,                                         contain an appropriation    ☐ YES ☒ NO
   REGULATIONS, POLICIES, OR PROCEDURES?                    ☒ YES     ☐ NO                                              to the Department?

      If yes, explain:             An emergency rule may be created to administer the exemption period.           8. DOES THE BILL HAVE A FISCAL IMPACT TO THE PRIVATE SECTOR? The Department of Revenue
      Rule(s) impacted                                                                                               does not conduct this analysis.
      (provide references to
      F.A.C., etc.):                                                                                              9. DOES THE BILL INCREASE OR DECREASE TAXES, FEES OR FINES? The Department of Revenue
                                                                                                                     does not conduct this analysis. The Revenue Estimating Conference will determine the revenue impact on
3. WHAT IS THE POSITION OF AFFECTED CITIZENS OR STAKEHOLDER GROUPS? N/A                                              state and local government, if any.

4. DOES THE BILL REQUIRE THE DEPARTMENT TO SUBMIT, MODIFY OR DELETE ANY REPORTS,                                                                                 TECHNOLOGY IMPACT
   STUDIES OR PLANS?                                         ☐ YES     ☒ NO
     If yes, provide a                                                                                            If any, see attached Fiscal Impact Analysis.
     description:
      Date Due:                                                                                                                                                    FEDERAL IMPACT
      Bill Section Number(s):
                                                                                                                  If any, see Additional Comments section below.

                                                                                                                                                                 ADDITIONAL COMMENTS

                                                                                                                  10. STATUTE(S) AFFECTED: N/A




                                                                                                             2                                                                                                                  3
HB 352


11. HAS SIMILAR LANGUAGE, A COMPANION BILL OR A PREVIOUS VERSION OF THE BILL BEEN
    ANALYZED THIS SESSION? ☒ YES ☐ NO If no, go to #12. If yes:
    A. Identify language or bill number. Proposed Bill – Bitcoin Sales Tax Holiday 08282023

   B. Were issues/problems identified? ☒ YES ☐ NO

            a. If yes, have they been resolved?       ☒ YES ☐ NO If no, briefly explain.

   C. Are new issues/problems created? ☒ YES ☐ NO If yes, briefly identify.

   Please see 12.

12. DOES THE BILL PRESENT DIFFICULTY IN IMPLEMENTATION, ADMINISTRATION OR
    ENFORCEMENT? ☒ YES ☐ NO

   If yes, describe administrative problems, technical errors, or other difficulties:

        It is unclear what is intended by limiting the exemption to a payment made in “virtual currency.” Section
         560.103(36), F.S., defines “virtual currency” to mean “a medium of exchange in electronic or digital
         format that is not currency. . . .” The term “currency” is defined in s. 560.103(12), F.S., to mean “the
         coin and paper money of the United States . . . which is designated as legal tender and which circulates
         and is customarily used and accepted as a medium of exchange . . . .” Based on these definitions,
         virtual currency could include any payment by digital means including a payment made with a credit or
         debit card.

13. RECOMMENDED CORRECTIONS:                  ☒ YES ☐ NO If yes, provide corrections.

   Lines 39-41:

         (e) A cosmetology salon or specialty salon licensed under chapter 477, Florida Statutes; a spa; or a
         barbershop as defined in s. 476.034, Florida Statutes.

14. OTHER:

   The bill includes a cosmetology salon or specialty salon licensed under Ch. 477, F.S., barbershops as
   defined in s. 476.034, F.S., and spas. It is unclear what is meant by the term “spa,” as there is no specific
   licensing requirement or statutory definition for the term. The term spa appears to be a generic term for an
   establishment such as a cosmetology salon or specialty salon. It may be helpful to strike the term from line
   40. (see 13)




                                                                                                                4
                                                      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/CS/SB 458
INTRODUCER:     Commerce and Tourism Committee; Health Policy Committee; and Senator Brodeur
SUBJECT:        Invalid Restrictive Covenants in Health Care
DATE:           February 7, 2024                REVISED:


           ANALYST                    STAFF DIRECTOR                 REFERENCE                                 ACTION
1. Looke                            Brown                                 HP              Fav/CS
2. McMillan                         McKay                                 CM              Fav/CS
3.                                                                        RC



                     Please see Section IX. for Additional Information:
                                   COMMITTEE SUBSTITUTE - Substantial Changes




  I.    Summary:

        CS/CS/SB 458 amends s. 542.336, F.S., to prohibit any restrictive covenant entered into with an
        allopathic or osteopathic physician which restricts the physician from practicing medicine in any
        geographic area for any period of time after the termination of his or her contract or other
        employment relationship. The bill provides exceptions from the prohibition for restrictive
        covenants related to research, related to physicians whose individual compensation is $250,000
        per year or more, or related to physicians who have an ownership interest in a medical business,
        practice, management services organization, or entity of any kind who sells a specified type of
        related asset. The bill specifies that its provisions apply to restrictive covenants entered into on or
        after July 1, 2024.

        The bill provides an effective date of July 1, 2024.

 II.    Present Situation:

        Federal Antitrust Laws

        In 1890, Congress passed the first antitrust law, the Sherman Act, as a comprehensive charter of
        economic liberty aimed at preserving free and unfettered competition as the rule of trade.
        Congress subsequently passed two additional antitrust laws in 1914: the Federal Trade
BILL: CS/CS/SB 458                                                                                              Page 2

        Commission Act, which created the Federal Trade Commission (FTC), and the Clayton Act.
        Currently, these are the three core federal antitrust laws.1

        The Sherman Act
        The Sherman Act outlaws every contract, combination, or conspiracy in restraint of trade, and
        any monopolization, attempted monopolization, or conspiracy or combination to monopolize.
        The Sherman Act does not prohibit every restraint of trade – only those that are unreasonable.
        For example, an agreement between two individuals to form a partnership may restrain trade, but
        may not do so unreasonably, and thus may be lawful under the antitrust laws. In contrast, certain
        acts are considered “per se” violations of the Sherman Act because they are harmful to
        competition. These include plain arrangements among competing individuals or businesses to fix
        prices, divide markets, or rig bids.2

        The penalties for violating the Sherman Act can be severe. Although most enforcement actions
        are civil, the Sherman Act is also a criminal law, and individuals and businesses that violate it
        may be prosecuted by the U.S. Department of Justice. Criminal prosecutions are typically limited
        to intentional and clear violations. The Sherman Act imposes criminal penalties of up to $10
        million for a corporation and $1 million for an individual, along with up to 10 years in prison. 3
        Under some circumstances, the maximum fines can reach twice the gain or loss involved.4

        The Federal Trade Commission Act
        The Federal Trade Commission Act prohibits unfair methods of competition and unfair or
        deceptive acts or practices. The U.S. Supreme Court has ruled that all violations of the Sherman
        Act also violate the FTC Act. Therefore, the FTC can bring cases under the FTC Act against the
        same kinds of activities that violate the Sherman Act. The FTC Act also reaches other practices
        that harm competition but may not fit neatly into categories of conduct formally prohibited by
        the Sherman Act. Only the FTC may bring cases under the FTC Act.5

        The Clayton Act
        The Clayton Act addresses specific practices that the Sherman Act does not clearly prohibit, such
        as mergers and interlocking directorates.6 It also bans mergers and acquisitions where the effect
        may substantially lessen competition or create a monopoly. As amended by the Robinson-
        Patman Act of 1936, the Clayton Act also prohibits certain discriminatory prices, services, and
        allowances in dealings between merchants. The Clayton Act was amended again in 1976 by the
        Hart-Scott-Rodino Antitrust Improvements Act to require companies planning large mergers or
        acquisitions to notify the government of their plans in advance. Additionally, private parties are

1
  See The Antitrust Laws, Federal Trade Commission, available at https://www.ftc.gov/tips-advice/competition-
guidance/guide-antitrust-laws/antitrust-laws (last visited Feb. 7, 2024).
2
  Id.
3
  Antitrust Enforcement and the Consumer, U.S. Department of Justice, available at
https://www.govinfo.gov/content/pkg/GOVPUB-J-PURL-LPS16084/pdf/GOVPUB-J-PURL-LPS16084.pdf (last visited Feb.
7, 2024). See also 15 U.S.C.A. § 2
4
  Id.
5
  The Antitrust Laws, Federal Trade Commission, available at https://www.ftc.gov/tips-advice/competition-guidance/guide-
antitrust-laws/antitrust-laws (last visited Feb. 7, 2024).
6
  “Interlocking directorates” means the same person making business decisions for competing companies. See also Id.
BILL: CS/CS/SB 458                                                                                                      Page 3

         authorized to sue for triple damages when they have been harmed by conduct that violates either
         the Sherman or Clayton Act and to obtain a court order prohibiting the anticompetitive practice
         prospectively.7

         Florida Antitrust Laws

         Florida law also provides protections against anticompetitive practices. Chapter 542, F.S., the
         Florida Antitrust Act of 1980, has a stated purpose to complement the body of federal law
         prohibiting restraints of trade or commerce in order to foster effective competition.8 It outlaws
         every contract, combination, or conspiracy in restraint of trade or commerce in Florida9 and any
         person from monopolizing or attempting or conspiring to monopolize any part of trade.10

         Contracts in Restraint of Trade or Commerce
         Generally, a contract in restraint of trade or commerce in Florida is unlawful.11 However, non-
         competition restrictive covenants12 contained in employment agreements that are reasonable in
         time, area, and line of business, are not prohibited.13 In any action concerning enforcement of a
         restrictive covenant, a court may not enforce a restrictive covenant unless it is set forth in a
         writing signed by the person against whom enforcement is sought, and the person seeking
         enforcement of a restrictive covenant must prove the existence of one or more legitimate
         business interests justifying the restrictive covenant.14 The term “legitimate business interest”
         includes, but is not limited to:
          Trade secrets;15
          Valuable confidential business or professional information that does not otherwise qualify as
             trade secrets;
          Substantial relationships with specific prospective or existing customers, patients, or clients;
          Customer, patient, or client goodwill associated with:
             o An ongoing business or professional practice, by way of trade name, trademark, service
                  mark, or “trade dress;”
             o A specific geographic location; or
             o A specific marketing or trade area; or
          Extraordinary or specialized training.16



7
  Id.
8
  Section 542.16, F.S.
9
  Section 542.18, F.S.
10
   Section 542.19, F.S.
11
   Section 542.18, F.S.
12
   Section 542.335, F.S. employs the term “restrictive covenants” and includes all contractual restrictions such as
noncompetition/nonsolicitation agreements, confidentiality agreements, exclusive dealing agreements, and all other
contractual restraints of trade. See Henao v. Prof'l Shoe Repair, Inc., 929 So.2d 723, 726 (Fla. 5th DCA 2006).
13
   Section 542.335(1), F.S.
14
   Id.
15
   Section 688.002(4), F.S., defines a trade secret as information, including a formula, pattern, compilation, program, device,
method, technique, or process that derives independent economic value, actual or potential, from not being generally known
to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure
or use; and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
16
   Section 542.335(1)(b), F.S.
BILL: CS/CS/SB 458                                                                                                     Page 4

         Any restrictive covenant not supported by a legitimate business interest is unlawful and is void
         and unenforceable.17 A person seeking enforcement of a restrictive covenant must prove that the
         contractually specified restraint is reasonably necessary to protect the legitimate business interest
         or interests justifying the restriction.18

         Restrictive Covenants in Florida Health Care
         Under s. 542.336, F.S., a restrictive covenant entered into with a physician who practices a
         medical specialty in a county where one entity employs or contracts with all physicians who
         practice that specialty in that county, is not supported by a legitimate business interest and is
         void and unenforceable.19 The restrictive covenant remains void and unenforceable until three
         years after the date on which a second entity that employs or contracts with one or more
         physicians who practice that specialty begins serving patients in that county.20

         In 21st Century Oncology, Inc., the plaintiff sought a preliminary injunction to enjoin the
         application and enforcement of s. 542.336, F.S. In August of 2019, the U.S. District Court for the
         Northern District of Florida denied the injunction. While s. 542.336, F.S., was found to impair
         the plaintiff's employment contracts within the meaning of the Contracts Clause, the court held
         that the degree of impairment did not outweigh the statute’s significant, legitimate public
         purpose.21

III.     Effect of Proposed Changes:

         CS/CS/SB 458 amends s. 542.336, F.S., to declare that any restrictive covenant entered into with
         an allopathic or osteopathic physician22 which restricts the physician from practicing medicine in
         any geographic area for any period of time after the termination of his or her contract,
         partnership, employment, independent contractor arrangement, or professional relationship or
         other employment relationship is not supported by a legitimate business interest and is void and
         unenforceable.

         The bill provides exceptions from the provisions of the bill described above for restrictive
         covenants that are:
          Related to any research conducted by the physician under the terms of a contract or in
            furtherance of a partnership, employment, or professional relationship, if the covenant does

17
   Id.
18
   Section 542.335(1)(c), F.S.
19
   Section 542.336, F.S.
20
   Id.
21
   “The ostensible public purpose of section 542.336 is to reduce healthcare costs and improve patients' access to physicians.
See § 542.336, Fla. Stat. (2019); ECF No. 64 at 8 (Attorney General's post-hearing brief, stating “section 542.336 explicitly
sets forth its own rational basis in declaring that the restrictive covenants addressed by it are not supported by a legitimate
business interest, restrict patient access to physicians, and increase costs”). It is well settled that access to affordable
healthcare is a legitimate state interest.” 21st Century Oncology, Inc. v. Moody, 402 F. Supp. 3d 1351, 1359 (N.D. Fla. 2019).
22
   “Allopathy” is a system of medical practice that emphasizes diagnosing and treating disease and the use of conventional,
evidence-based therapeutic measures (such as drugs or surgery). See Merriam-Webster Dictionary, “allopathy,” available at
https://www.merriam-webster.com/dictionary/allopathy (last visited Feb. 7, 2024). “Osteopathy” is a system of medical
practice that emphasizes a holistic and comprehensive approach to patient care and utilizes the manipulation of
musculoskeletal tissues along with therapeutic measures to prevent or treat disease. See Merriam-Webster Dictionary,
“osteopathy,” available at https://www.merriam-webster.com/dictionary/osteopathy (last visited Feb. 7, 2024).
BILL: CS/CS/SB 458                                                                                    Page 5

           not impair the continuing care and treatment of a specific patient or patients whose care and
           treatment were part of the research;
          Related to physicians whose individual compensation is $250,000 per year or more. The bill
           defines individual compensation to mean:
           o For an employed physician, the amount of wages, bonuses, benefits, and salary paid to
               the physician for the previous tax year or expected to be paid for the current tax year; or
           o For a physician with a partnership or similar ownership interest in the profits of a
               practice, the amount of business income attributed to the physician for the previous tax
               year or expected to be attributed to the physician for the current tax year; or
          Related to physicians who have an ownership interest in a medical business, practice,
           management services organization, or entity of any kind and who sells:
           o The goodwill of such business, practice, or entity;
           o Any or all of his or her ownership interest in such business, practice, management
               services organization, or entity; or
           o Any or all portions of the assets of such business, practice, management services
               organization, or entity together with its goodwill and who contractually agrees with a
               buyer of such business, practice, management services organization, or entity, or portion
               thereof, to refrain from carrying on a competing business, practice, management services
               organization, or entity within a specified geographic area reasonably necessary to protect
               the legitimate business interest of the acquiring party or the acquired business, practice,
               management services organization, or entity.

      The bill specifies that its provisions apply to restrictive covenants entered into on or after July 1,
      2024.

      The bill provides 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.

      E.      Other Constitutional Issues:

              None Identified.
 BILL: CS/CS/SB 458                                                                                             Page 6

  V.    Fiscal Impact Statement:

        A.      Tax/Fee Issues:

                None.

        B.      Private Sector Impact:

                Prohibiting restrictive covenants as provided in the bill may provide patients with more
                access to physicians and decrease health care costs.

        C.      Government Sector Impact:

                None.

 VI.    Technical Deficiencies:

        None.

VII.    Related Issues:

        None.

VIII.   Statutes Affected:

        This bill substantially amends section 542.336 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 February 6, 2024:
                The committee substitute provides that the prohibition against restrictive covenants does
                not apply to a physician who has ownership interest in a medical business, practice,
                management services organization, or entity of any kind when such entity meets certain
                criteria.

                CS by Health Policy on January 30, 2024:
                The committee substitute amends two exceptions allowing restrictive covenants that
                would have been prohibited by the underlying bill to:
                 Increase the minimum salary, from $160,000 per year to $250,000 per year, that a
                   physician must make in order for an otherwise prohibited restrictive covenant to be
                   valid; and
                 Rework the exception for a physician who sells a business interest in a medical
                   practice to apply the exception to all medical entities and to add additional detail as to
                   the types of sales of such an entity that would validate a restrictive covenant.
BILL: CS/CS/SB 458                                                                                                                  Page 7

      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. CS for SB 458                                                   Bill No. CS for SB 458




                              Ì876150ÅÎ876150                                                          Ì876150ÅÎ876150


                              LEGISLATIVE ACTION                         11   business, practice, management services organization, or entity;
           Senate                     .                  House           12   or
          Comm: RCS                   .                                  13        c. Any or all portions of the assets of such business,
         02/06/2024                   .                                  14   practice, management services organization, or entity together
                                      .                                  15   with its goodwill and who contractually agrees with a buyer of
                                      .                                  16   such business, practice, management services organization, or
                                      .                                  17   entity, or portion thereof, to refrain from carrying on a
                                                                         18   competing business, practice, management services organization,
                                                                         19   or entity within a specified geographic area reasonably
                                                                         20   necessary to protect the legitimate business interest of the
                                                                         21   acquiring party or the acquired business, practice, management
                                                                         22   services organization, or entity.




     The Committee on Commerce and Tourism (Brodeur) recommended the
     following:


1        Senate Amendment
2
3        Delete lines 57 - 69
4    and insert:
5        3. For a physician who has any ownership interest in a
6    medical business, practice, management services organization, or
7    entity of any kind and who sells:
8        a. The goodwill of such business, practice, management
9    services organization, or entity;
10       b. Any or all of his or her ownership interest in such



                                 Page 1 of 2                                                             Page 2 of 2
     2/5/2024 8:45:39 AM                                  577-02788-24        2/5/2024 8:45:39 AM                                  577-02788-24
       Florida Senate - 2024                               CS for SB 458             Florida Senate - 2024                               CS for SB 458



       By the Committee on Health Policy; and Senator Brodeur




       588-02640-24                                               2024458c1          588-02640-24                                               2024458c1
1                              A bill to be entitled                          30          (2) A restrictive covenant entered into with a physician
2           An act relating to invalid restrictive covenants in               31     who is licensed under chapter 458 or chapter 459 which restricts
3           health care; amending s. 542.336, F.S.; specifying                32     the physician from practicing medicine in any geographic area
4           that certain restrictive covenants in employment                  33     for any period of time after the termination of a contract,
5           agreements relating to certain licensed physicians are            34     partnership, employment, independent contractor arrangement, or
6           not supported by a legitimate business interest;                  35     professional relationship is not supported by a legitimate
7           specifying that such restrictive covenants are void               36     business interest. Such restrictive covenants are void and
8           and unenforceable; providing applicability; defining              37     unenforceable.
9           the term “compensation”; providing an effective date.             38          (a) This subsection does not apply to a restrictive
10                                                                            39     covenant that is:
11     Be It Enacted by the Legislature of the State of Florida:              40          1. Related to any research conducted by the physician under
12                                                                            41     the terms of a contract or in furtherance of a partnership,
13          Section 1. Section 542.336, Florida Statutes, is amended to       42     employment, or professional relationship; provided, however,
14     read:                                                                  43     that the covenant does not impair the continuing care and
15          542.336 Invalid restrictive covenants.—                           44     treatment of a specific patient or patients whose care and
16          (1) A restrictive covenant entered into with a physician          45     treatment were part of the research.
17     who is licensed under chapter 458 or chapter 459 and who               46          2. Related to physicians whose individual compensation
18     practices a medical specialty in a county wherein one entity           47     totals at least $250,000 per year. As used in this subparagraph,
19     employs or contracts with, either directly or through related or       48     the term “compensation” means:
20     affiliated entities, all physicians who practice such specialty        49          a. For an employed physician, the amount of wages, bonuses,
21     in that county is not supported by a legitimate business               50     benefits, and salary paid to the physician for the previous tax
22     interest. The Legislature finds that such covenants restrict           51     year or expected to be paid for the current tax year; or
23     patient access to physicians, increase costs, and are void and         52          b. For a physician with a partnership or similar ownership
24     unenforceable under current law. Such restrictive covenants            53     interest in the profits of a practice, the amount of business
25     shall remain void and unenforceable for 3 years after the date         54     income attributed to the physician for the previous tax year or
26     on which a second entity that employs or contracts with, either        55     expected to be attributed to the physician for the current tax
27     directly or through related or affiliated entities, one or more        56     year.
28     physicians who practice such specialty begins offering such            57          3. For a physician who has any ownership interest in a
29     specialty services in that county.                                     58     medical business, practice, or entity of any kind and who sells:

                                   Page 1 of 3                                                                  Page 2 of 3
     CODING: Words stricken are deletions; words underlined are additions.         CODING: Words stricken are deletions; words underlined are additions.
       Florida Senate - 2024                               CS for SB 458




       588-02640-24                                               2024458c1
59          a. The goodwill of such business, practice, or entity;
60          b. Any or all of his or her ownership interest in such
61     business, practice, or entity; or
62          c. Any or all portions of the assets of such business,
63     practice, or entity together with its goodwill and who
64     contractually agrees with a buyer of such business, practice, or
65     entity, or portion thereof, to refrain from carrying on a
66     competing business, practice, or entity within a specified
67     geographic area reasonably necessary to protect the legitimate
68     business interest of the acquiring party or the acquired
69     business, practice, or entity.
70          (b) This subsection applies to restrictive covenants
71     entered into on or after July 1, 2024.
72          Section 2. This act shall take effect July 1, 2024.




                                  Page 3 of 3
     CODING: Words stricken are deletions; words underlined are additions.
                                                                          The Florida Senate

              Ll Alzr
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                                                 THE FLORIDA SENATE                                         GOMMITTEES:
                                                                                                            Appropriations Committee on Agriculture,
                                                                                                             Ehviionment, and General Government, Cra,7
                                                       Tallahassee, Florida 32399-1 100                     Health Policy, Vice Chair
                                                                                                            Aoorooriations
                                                                                                            Abbrobriations Commiftee on Health
                                                                                                             and Human Services
                                                                                                            Children, Families, and ElderAffairs
                                                                                                            Community Affairs
                                                                                                            Regulated lndustries
                                                                                                            Rules

                                                                                                            JOINT COMMITTEE:
                                                                                                             Joint Legislative Auditing Committee
SENATOR JASON BRODEUR
        1Oth District


   January 30th,2024


   The Honorable Jay Trumbull
   Chair, Committee on Commerce and Tourism
   313 Senate Building
   404 South Monroe Street
   Tallahassee, FL 32399-l I 00



   Dear Chair Trumbull,


   I respectfully request that Senate Bill458, Invalid Restrictive Covenants in Health Care, be
   placed on the agenda of the Commerce and Tourism Committee meeting to be considered at your
   earliest convenience.

   If you have any questions or concerns, please do not hesitate to reach out to me or my office.


   Sincerely,



    lo^ hhoob,*
   JJ
    Senator Jason Brodeur - District 10



    CC: Todd McKay - Staff Director
    Jennifer Renner - Deputy Staff Director
    Renita Hayes - Committee Administrative Assistant




                   REPLY TO:
                     O 1 10 Timberlachen Circle, Suite 1 012, Lake Mary, Florida 32746 (407) 333-1 802
                     Ct 405 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399- 1 1 00 (850) 487-501 0

                                                       Senate's Website. www.flsenate.gov


                        KATHLEEN PASSIDOMO                                                              DENNIS BAXLEY
                         President of 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/CS/SB 966
INTRODUCER:     Commerce and Tourism Committee; Banking and Insurance Committee; and Senator
                Burgess
SUBJECT:        Home Warranty Transfers
DATE:           February 6, 2024                REVISED:


           ANALYST                    STAFF DIRECTOR                 REFERENCE                                 ACTION
1. Moody                            Knudson                               BI              Fav/CS
2. Renner                           McKay                                 CM              Fav/CS
3.                                                                        RC



                     Please see Section IX. for Additional Information:
                                   COMMITTEE SUBSTITUTE - Substantial Changes




  I.    Summary:

        CS/CS/SB 966 requires certain warranties provided by builders to home purchasers to be
        automatically transferred in certain circumstances. If a builder provides an express written
        warranty or purchases a home warranty from a home warranty association on or after January 1,
        2025, such warranties, if active, automatically transfer to a subsequent purchaser.

        The bill provides that a home warranty that is conditioned on the continuation of a maintenance
        contract automatically transfers to a subsequent purchaser unless the subsequent purchaser
        declines the assignment of the maintenance contract. A subsequent purchaser is bound by the
        terms of a maintenance contract if it is assigned to him or her. A builder or home warranty
        association must notify the subsequent purchaser of any amounts due under the maintenance
        contract at the home address unless the purchaser informs the builder or home warranty
        association of a preferred method of notification. A maintenance contract that is not a condition
        of a home warranty does not automatically transfer to a subsequent purchaser unless the builder
        association or home warranty association and the subsequent purchaser agree to its assignment.

        A subsequent purchaser who receives the benefit of a warranty being automatically transferred
        must notify the builder or home warranty association that he or she is the warrantee under the
        home warranty. Such notice may be given at any time while the warranty remains in effect, and a
        builder or home warranty association may not require a shorter notice period. A builder is
        prohibited from charging a fee for the automatic transfer of a warranty. The bill provides for
BILL: CS/CS/SB 966                                                                                                   Page 2

          construction of the bill’s provisions and specifies that the provisions do not have specified
          consequences.

          The bill provides that the provisions relating to the assignment of home warranties apply except
          for any provisions related to the automatic transfer of warranties established under the bill.

          The bill provides that the requirements relating to the automatic transfer of home warranties
          under s. 634.601, F.S., apply to a home warranty that is transferred to the home purchaser. The
          bill clarifies that a premium charged for a home warranty when the home is listed is due at the
          end of the listing period, and removes the option for it to be due the earlier of the end of the
          listing period or the date the sale of the residential property is closed.

          Finally, the bill renames ch. 634, F.S., to “Warranties and Warranty Associations.”

          This bill provides an effective date of July 1, 2024.

    II.   Present Situation:

          Background

          A warranty agreement is a contract that may be given by a builder or purchased by a builder
          from a home warranty association. In Florida, home warranty associations are regulated by the
          Office of Insurance Regulation (OIR)1 and must maintain certain minimum financial standards to
          do business.2

          Home Warranties
          A home warranty is a contract or agreement between the homeowner and the issuing company,
          safeguarding the homeowner from expenses related to the repair or replacement of structural
          components or appliances in the home.3 This protection extends to issues caused by normal wear
          and tear or defects in these components or appliances.4 A home warranty agreement is tied to the
          owner selling the home and does not transfer to the person buying the home unless the home
          seller transfers it to the new owner.5 A warranty means that a manufacturer or seller will replace
          or repair the product under certain instances.6

          Home warranty contracts or agreements can be drafted by a home warranty association7 licensed
          under s. 634.303, F.S., or by an authorized insurance company permitted to offer coverage in this
          category.8



1 Section 634.302, F.S.
2 Section 634.305, F.S.
3
  Section 634.301(2), F.S.
4
  Id.
5
  Section 634.312(1), F.S.
6
   45 Fla. Jur 2d Sales and Exchanges of Goods § 156.
7
  Section 634.301(3), F.S., defines “home warranty association” as any corporation or any other organization, other than an
authorized insurer, issuing home warranties.
8
  Section 634.303, F.S.
BILL: CS/CS/SB 966                                                                                                    Page 3

         Builder Warranties
         A builder warranty, like a home warranty, is a contractual agreement between the builder and the
         homeowner, shielding the homeowner from expenses related to the repair or replacement of
         structural components in the home.9

         Despite these similarities, there are distinctions in their coverage.10 While a home warranty
         typically covers household appliances and systems, such as refrigerators and heating/cooling
         systems, and is commonly associated with residential real estate transactions, a builder
         warranty—also referred to as a structural warranty—is specifically provided by a builder to a
         homebuyer.11 The purpose of the builder warranty is to safeguard the homebuyer against
         significant structural defects in workmanship and materials used during the construction of the
         new home by the builder.12

         Magnuson-Moss Warranty Act
         The Magnuson-Moss Warranty Act (MMWA)13 is a federal law that governs consumer product
         warranties. Passed in 1975, the MMWA 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.14

         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; and
          Any other person who is entitled by the terms of such warranty or under applicable state law
            to enforce the obligations of the warranty.15

         Home and Builder Warranties

         The elective market in Florida allows a builder, seller, buyer, or owner of a home to choose
         whether they would like to purchase a home warranty to cover against the cost of repair or
         replacement, or furnishes repair or replacement, of any structural component or appliance of a
         home, caused by wear and tear or a defect of a structural component or appliance.16



9
  Section 634.301(2), F.S.
10
   Quality Builders Warranty, What is a Structural Warranty?, available at: https://qbwc.com/blog-news/what-is-a-structural-
warranty/ (last visited Feb. 5, 2024).
11
   Id.
12
   Id.
13
   15 U.S.C. §§ 2301-2312 (1975).
14
   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, Sept. 26, 2021, available at:
https://thebusinessprofessor.com/en_US/consumer-law/magnuson-moss-warranty-act (last visited Feb. 5, 2024).
15
   15 U.S.C. § 2301(3) of MMWA; O'Connor v. BMW of N. Am., LLC, 905 So. 2d 235, 236–37 (Fla. 2d DCA 2005); see
also, § 2310(d) of MMWA 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…”
16
   Section 634.301(2), F.S.
BILL: CS/CS/SB 966                                                                                                   Page 4

         Warranty associations and companies in Florida, including those associations selling home and
         service warranties, and those companies selling motor vehicle service agreements, are regulated
         by the OIR.17 OIR regulates the insurance industry in Florida. OIR is responsible for the
         regulation of all activities in the state concerning insurers and other risk bearing entities,
         including licensing, rates, policy forms, market conduct, claims, issuance of certificates of
         authority, solvency, viatical settlements, premium financing, and administrative supervision.18

         While warranties are not considered traditional insurance products, OIR regulates warranty
         associations and companies similarly to the way in which it regulates insurers.19 Home and
         service warranty associations must be licensed by OIR20 and must maintain certain minimum
         financial standards in order to do warranty business in Florida.21

         The following chart reflects the number of licensed warranty associations in Florida as of
         January 23, 2024:22

                                   Type of                                     Number of
                                   Association/Company                         Licensees
                                   Home Warranty                               46
                                   Association
                                   Service Warranty                            102
                                   Association
                                   Motor Vehicle Warranty                      119
                                   Company
                                   Total                                       267

         Home warranty providers must ensure that every home warranty is sent or delivered to the
         warranty holder within 45 days after the commencement of coverage, subject to the insurer's or
         home warranty association's premium payment requirements.23 Furthermore, all home warranty
         contracts are transferable.24 The contract should explicitly inform the purchaser of their right to
         assign it within 15 days of selling or transferring the home. The home warranty company may




17
   See ch. 634, F.S.
18
   Florida Office of Insurance Regulation, Organization and Operation, available at: https://floir.com/about-us/organization-
and-
operation#:~:text=The%20Florida%20Office%20of%20Insurance,settlements%2C%20premium%20financing%2C%20and
%20administrative (last visited Feb. 5, 2024). See also s. 624.308, F.S., and R. 69O, et seq., F.A.C.
19
   See ch. 634, F.S.
20
   Sections 634.303 and 634.403, F.S. Neither the Florida Insurance Code nor this section grants permission for any home
warranty association to conduct insurance business beyond what is specifically defined as home warranty or to participate in
any other form of insurance. Any engagement in alternative insurance types requires explicit authorization through a
certificate of authority issued by the office under the provisions of the Florida Insurance Code. Section 634.325, F.S.
21
   Sections 634.3077 and 634.406, F.S.
22
   Data retrieved from OIR Active Company Search application, available at: https://floir.com/CompanySearch/index.aspx
(last visited Jan. 23, 2024).
23
   Section 634.312(2), F.S.
24
   Section 634.312(1), F.S.
BILL: CS/CS/SB 966                                                                                                   Page 5

        charge an assignment fee not exceeding $40.25 The home warranty may be assigned, as well
        from a home builder, who initially purchased the warranty, to subsequent home purchasers.26

        Currently, several companies offer warranties covering structural components of a home in
        Florida; however, Florida law does not regulate these warranties. Below are companies that
        provide builder warranties:27

                 Manufacturer                                     Coverage Offered
          America’s Preferred Structural             1-year coverage on workmanship
          Warranty                                   1 or 2-year coverage on home systems
                                                     10-year coverage on structural defects

          2-10 HBW                                   1-year coverage for workmanship
                                                     2-year coverage for distribution systems
                                                     10-year coverage for qualifying structural defects
                                                      on newly built homes

          Residential Warranty                       1-year coverage for workmanship
          Company                                    7-year coverage for qualifying structural defects
                                                     10-year coverage for qualifying structural defects



III.    Effect of Proposed Changes:

        Section 1 amends s. 634.312(1), F.S., to provide that the current law provisions relating to the
        assignment of home warranties apply except for any provisions related to the automatic transfer
        of warranties established under the bill.

        Section 2 amends s. 634.331, F.S., to provide that the requirements relating to the automatic
        transfer of home warranties under s. 634.601, F.S., including the new provisions summarized
        below, apply to a home warranty that is transferred to the home purchaser. The bill clarifies that
        a premium charged for a home warranty when the home is listed is due at the end of the listing


25
   Id.
26
   Id. Certain exemptions in the home warranty association statute cover cases where builders or appliance sellers offer
standard guarantees without extra charges, exclude service contracts with non-profits handling repairs, and accept contracts
aligning with Florida's Insurance Code for systems and appliances, excluding structural components. Individuals affiliated
with a domestic insurer are exempt if they avoid offering home warranties to Florida residents, but compliance requires the
insurer to directly issue warranties or provide a specific policy. Non-compliance, as determined by the Office of Insurance
Regulation, subjects the person to home warranty association regulations. Additionally, the regulations do not apply to
programs offering warranties on new homes if supported by an insurance policy from a licensed Florida insurer, contingent
on approval by the Office. Sections 634.301(2) and 634.327, F.S.
27
   America’s Preferred Structural Warranty, Coverage, available at: https://www.apsw.com/ (last visited Feb. 5, 2024). 2-10
HBW, Structural Warranties, available at: https://www.2-10.com/builders-warranty/structural-warranties/ (last visited Feb. 5,
2024). Residential Warranty Company, Structural Warranties vs Extended Warranties – What’s the Difference?, available at:
https://www.rwcwarranty.com/homeowners-2/structural-warranties-vs-extended-warranties/ (last visited Feb. 5, 2024).
BILL: CS/CS/SB 966                                                                                     Page 6

         period and removes the option for it to be due the earlier of the end of the listing period or the
         date the sale of the residential property is closed.

         Section 3 creates sections 634.601 and 634.602, F.S., which together form a new Part IV of ch.
         634, F.S., entitled “Miscellaneous Provisions.”

         Section 634.601, F.S., defines the following terms:
          “Builder” means “the primary contactor of a home who possesses the requisite skill,
            knowledge, and experience, and has the responsibility, to supervise, direct, manage, and
            control the contracting activities of the business organization with which he or she is
            connected and who has the responsibility to supervise, direct, manage, and control the
            construction work on a job for which he or she has obtained a building permit. Construction
            work includes, but is not limited to, construction of structural components.”
          “Home warranty” or “warranty” has the same meaning as in s. 634.301, F.S., which defines
            the terms to mean, “any contract or agreement whereby a person undertakes to indemnify the
            warranty holder against the cost of repair or replacement, or actually furnishes repair or
            replacement, of any structural component or applicant of a home, necessitated by wear and
            tear or an inherent defect of any such structural component or appliance or necessitated by
            the failure of an inspection to detect the likelihood of any such loss.”28
          “Home warranty association” has the same meaning as in s. 634.301, F.S., which defines the
            term to mean, “any corporation or any other organization, other than an authorized insurer,
            issuing home warranties.”29
          “Indemnify” means “to undertake repair or replacement of a home’s structural component, or
            pay compensation for such repair or replacement by cash, check, or other similar means,
            including by not limited to, electronic means.”
          “Structural component” means “one or more essential elements of a home, including the
            roof, foundation, basement, exterior or interior walls, electrical and plumbing systems,
            ceilings, floors, or spray foam. The term includes any item covered in the terms of a home
            warranty.

         Section 634.602, F.S., provides that if a builder provides an express written warranty or
         purchases a home warranty from a home warranty association on or after January 1, 2025, such
         warranties and all indemnification rights, terms, and conditions of such warranties automatically
         transfer to a subsequent purchaser unless the warranty has become null and void or lawfully
         terminated.

         A home warranty that is conditioned on the continuation of a maintenance contract automatically
         transfers to a subsequent purchaser unless the subsequent purchaser declines the assignment of
         the maintenance contract. If a subsequent purchaser accepts the assignment of a maintenance
         contract, the subsequent purchaser is bound by its terms, including the requirement to make
         payments under the terms of the agreement. A builder must notify the subsequent purchaser of
         any amounts due under the maintenance contract at the home address covered by such contract
         unless the purchaser notifies the builder of home warranty association of a preferred method of
         notification. A maintenance contract that is not a condition of a home warranty does not

28 Section 634.301(2), F.S.
29 Section 634.301(3), F.S.
BILL: CS/CS/SB 966                                                                                Page 7

      automatically transfer to a subsequent purchaser unless the builder or home warranty association
      and the subsequent purchaser agree to its assignment.

      A subsequent purchaser who receives the benefit of a warranty being automatically transferred
      must notify the builder or home warranty association that he or she has purchased the home and
      therefore is the warrantee under the home warranty. Such notice may be given at any time while
      the warranty remains in effect. A builder or home warranty association may not require in the
      terms of the warranty a shorter notice period. A builder is prohibited from charging a fee for the
      automatic transfer of a warranty.

      The section does not:
       Modify or extend the commencement date, duration, or scope of coverage of the express
         written warranty or home warranty beyond their terms.
       Require a builder or home warranty association to be obligated under a warranty that has
         become null and void.
       Require a builder that is obligated under and provides a home purchaser an express written
         warranty to obtain a license under the Florida Insurance Code, and such practice does not
         constitute the transaction of insurance subject to the requirements of the code unless
         otherwise required by law.
       Permit the provision of indemnification against consequential damages arising from the
         failure of any structural component, which practice constitutes the transaction of insurance
         subject to the requirements of the Florida Insurance Code.
       Require any subsequent purchaser to be bound by the terms of a home maintenance contract
         being assigned to him or her.

      Section 4 of the bill renames ch. 634, F.S., entitled “Warranty Associations” as “Warranties and
      Warranty Associations.”

      Section 5 of the bill provides an effective date as 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/CS/SB 966                                                                                 Page 8

        E.      Other Constitutional Issues:

                None identified.

  V.    Fiscal Impact Statement:

        A.      Tax/Fee Issues:

                None.

        B.      Private Sector Impact:

                There may be a positive economic impact for property owners and subsequent owners as
                they can benefit from the remaining home warranty coverage for their residential real
                property without needing additional paperwork due to the currently required separate
                assignment agreement. The home purchaser could bear lower out of pocket costs if there
                is covered damage or wear and tear.

                Home warranty associations and insurers may experience nominal increased costs due to
                the bill’s prohibition on assignment fees.

        C.      Government Sector Impact:

                None.

 VI.    Technical Deficiencies:

        The bill provides that unless a maintenance contract is a condition of a home warranty, the home
        warranty does not automatically transfer to a subsequent purchaser. However, a home warranty
        must automatically transfer to a subsequent purchaser if the conditions stated in the bill are met.
        As a result, reference to “home warranty” at line 128 should state “maintenance contract” to
        suggest that a maintenance contract that is not a condition of a home warranty does not
        automatically transfer to a subsequent purchaser.

VII.    Related Issues:

        None.

VIII.   Statutes Affected:

        This bill substantially amends the following sections of the Florida Statutes: 634.312, 634.331.

        This bill creates the following sections of the Florida Statutes: 634.601, 634.602.
BILL: CS/CS/SB 966                                                                                           Page 9

IX.   Additional Information:

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

             CS/CS by Commerce and Tourism on February 6, 2024:
             The committee substitute modifies the definition of a “structural component” to:
              Include electrical and plumbing systems;
              Specify that the term includes any item covered in the terms of a home warranty; and
              Remove a provision that “exterior walls” includes, but is not limited to, any siding,
                stucco, or paint on the exterior walls.

             CS by Banking and Insurance on January 29, 2024:
              Removes the amendments to s. 634.312(1), F.S., relating to home warranties;
              Removes the provision that adds failing to continue to perform obligations under the
                terms of an assigned home warranty contract as a ground for unfair and deceptive acts
                or practices;
              Provides that the provisions on the assignment of home warranties apply except as
                provided in s. 634.602, F.S., created in the bill relating to the automatic transfer of
                certain warranties;
              Amends the provisions on coverage of property for sale to modify the time within
                payment must be made for the purchase of warranty when a property is listed for sale,
                and provides that the requirements in s. 634.602, F.S., created in the bill relating to
                the automatic transfer of certain warranties, apply to a home warranty that is
                transferred to the home purchaser;
              Provides that a builder’s express written warranty or a warranty that a builder
                purchases from a home warranty association automatically transfers to a subsequent
                purchaser in certain circumstances;
              Provides when maintenance contracts automatically transfer to a subsequent
                purchaser;
              Requires a subsequent homeowner who accepts assignment of a maintenance contract
                to be bound by the terms of the contract;
              Requires a builder or home warranty association to provide notice of any amounts
                due under the maintenance contract by specified method;
              Requires a subsequent purchaser who receives the benefit of an automatic transfer of
                a warranty to notify the builder or home warranty association of the new warrantee;
              Prohibits a builder from charging a fee for a transfer of a warranty which occurs
                automatically;
              Provides for construction of the provisions, including that the section does not:
                o Modify or extend the commencement date or the duration or scope of the
                    warranty’s terms;
                o Require a builder or home warranty association to be obligated under a warranty
                    that has become null and void;
                o Require a builder to obtain a license under the Florida Insurance Code;
                o Permit the provision of indemnification against consequential damages arising
                    from the failure of any structural component; and
BILL: CS/CS/SB 966                                                                                                                  Page 10

                    o Require any subsequent purchaser to be bound by the terms of a home
                       maintenance contract unless he or she agrees to the maintenance contract being
                       assigned to him or her;
                   Renames ch. 634 to “Warranties and Warranty Associations”; and
                   Defines terms.

      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
    Bill No. CS for SB 966




                             Ì488320~Î488320


                             LEGISLATIVE ACTION
          Senate                     .                  House
         Comm: RCS                   .
        02/06/2024                   .
                                     .
                                     .
                                     .




    The Committee on Commerce and Tourism (Burgess) recommended the
    following:


1       Senate Amendment
2
3       Delete lines 90 - 93
4   and insert:
5   exterior or interior walls, electrical and plumbing systems,
6   ceilings, floors, or spray foam. The term includes any item
7   covered in the terms of a home warranty.




                                Page 1 of 1
    2/5/2024 9:52:46 AM                                  577-02843-24
       Florida Senate - 2024                                  CS for SB 966          Florida Senate - 2024                               CS for SB 966



       By the Committee on Banking and Insurance; and Senator Burgess




       597-02605-24                                               2024966c1          597-02605-24                                              2024966c1
1                              A bill to be entitled                          30          construction; renaming ch. 634, F.S.; providing an
2           An act relating to home warranty transfers; amending              31          effective date.
3           s. 634.312, F.S.; providing a limitation on the                   32
4           application of provisions relating to home warranty               33     Be It Enacted by the Legislature of the State of Florida:
5           contract assignments; amending s. 634.331, F.S.;                  34
6           making technical changes; conforming provisions to                35          Section 1. Subsection (1) of section 634.312, Florida
7           changes made by the act; creating part IV of ch. 634,             36     Statutes, is amended to read:
8           F.S., entitled “Miscellaneous Provisions”; creating s.            37          634.312 Forms; required provisions and procedures.—
9           634.601, F.S., defining terms; creating s. 634.602,               38          (1) Except as provided in s. 634.602: All
10          F.S.; providing requirements for express written                  39          (a) Home warranty contracts are assignable in a consumer
11          warranties and home warranties transferred to                     40     transaction and must contain a statement informing the purchaser
12          subsequent home purchasers; providing for the                     41     of the home warranty of her or his right to assign it, at least
13          assignment of maintenance contracts in certain                    42     within 15 days from the date the home is sold or transferred, to
14          circumstances; specifying conditions for the automatic            43     a subsequent retail purchaser of the home covered by the home
15          transfer of home warranties that are conditions                   44     warranty and all conditions on such right of transfer.
16          included in maintenance contracts; providing                      45          (b) The home warranty company may charge an assignment fee
17          requirements of a subsequent purchaser who accepts the            46     not to exceed $40.
18          assignment of a maintenance contract, and of a builder            47          (c) Home warranty assignments include, but are not limited
19          or home warranty association in such instance;                    48     to, the assignment from a home builder who purchased the home
20          requiring a builder or home warranty association to               49     warranty to a subsequent home purchaser.
21          provide certain notice to a subsequent purchaser;                 50          Section 2. Section 634.331, Florida Statutes, is amended to
22          providing that such notification be at a certain                  51     read:
23          address unless the builder or home warranty                       52          634.331 Coverage of property for sale.—A home warranty may
24          association are notified by the purchaser of a                    53     provide coverage of residential property during the listing
25          preferred method; restricting a builder or home                   54     period of such property for a period not to exceed 12 months,
26          warranty association from limiting the timeframe for              55     provided that the home warranty company charges the warranty
27          notice by a subsequent purchaser; prohibiting a                   56     purchaser a separately identifiable charge for the listing
28          builder or home warranty association from charging a              57     period coverage in an amount equal to at least 15 percent of the
29          fee for transferring the warranty; providing                      58     annual premium charged for the home warranty and the charge for

                                   Page 1 of 6                                                                  Page 2 of 6
     CODING: Words stricken are deletions; words underlined are additions.         CODING: Words stricken are deletions; words underlined are additions.
       Florida Senate - 2024                               CS for SB 966             Florida Senate - 2024                                  CS for SB 966




       597-02605-24                                            2024966c1             597-02605-24                                               2024966c1
59     such coverage is due at the earlier of the end of the listing         88           (5) “Structural component” means one or more essential
60     period or the date the sale of the residential property is            89      elements of a home, including the roof, foundation, basement,
61     closed. The requirements in s. 634.602 apply to a home warranty       90      exterior or interior walls, ceilings, floors, or spray foam. As
62     that is transferred to the home purchaser.                            91      used in this subsection, the term “exterior walls” includes, but
63          Section 3. Part IV of chapter 634, Florida Statutes,             92      is not limited to, any siding, stucco, or paint on the exterior
64     consisting of sections 634.601 and 634.602, Florida Statutes, is      93      walls.
65     created to read:                                                      94           634.602 Structural component indemnification or coverage.—
66                                                                           95           (1) Except as provided in this section, if a builder is
67                                  PART IV                                  96      obligated under and provides a home purchaser an express written
68                         MISCELLANEOUS PROVISIONS                          97      warranty on or after January 1, 2025, that indemnifies a home
69                                                                           98      purchaser against the cost of repairing the structural
70          634.601 Definitions.—As used in this part, the term:             99      components of a home and such warranty has not become null and
71          (1) “Builder” means the primary contractor of a home who         100     void or lawfully terminated under the terms of the warranty, the
72     possesses the requisite skill, knowledge, and experience, and         101     express written warranty and all indemnification rights, terms,
73     has the responsibility, to supervise, direct, manage, and             102     and conditions thereunder shall automatically transfer to any
74     control the contracting activities of the business organization       103     subsequent purchaser of the home for the duration of the express
75     with which he or she is connected and who has the responsibility      104     written warranty.
76     to supervise, direct, manage, and control the construction work       105          (2) Except as provided in this section, if a builder
77     on a job for which he or she has obtained a building permit.          106     purchases a home warranty from a licensed home warranty
78     Construction work includes, but is not limited to, construction       107     association on or after January 1, 2025, covering the structural
79     of structural components.                                             108     components of a home and such warranty has not become null and
80          (2) “Home warranty” or “warranty” has the same meaning as        109     void or lawfully terminated under the terms of the warranty, the
81     in s. 634.301.                                                        110     home warranty and all indemnification rights, terms, and
82          (3) “Home warranty association” has the same meaning as in       111     conditions thereunder shall automatically transfer to any
83     s. 634.301.                                                           112     subsequent purchaser for the duration of the home warranty.
84          (4) “Indemnify” means to undertake repair or replacement of      113          (3) With respect to home maintenance contracts:
85     a home’s structural component, or pay compensation for such           114          (a) A home warranty that is conditioned on the continuation
86     repair or replacement by cash, check, or other similar means,         115     of a maintenance contract shall automatically transfer to a
87     including, but not limited to, electronic means.                      116     subsequent purchaser pursuant to subsections (1) and (2) unless

                                   Page 3 of 6                                                                  Page 4 of 6
     CODING: Words stricken are deletions; words underlined are additions.         CODING: Words stricken are deletions; words underlined are additions.
        Florida Senate - 2024                                 CS for SB 966           Florida Senate - 2024                               CS for SB 966




        597-02605-24                                              2024966c1           597-02605-24                                               2024966c1
117     the subsequent purchaser declines the assignment of the               146          (a) Modify or extend the commencement date or the duration,
118     underlying maintenance contract. If a subsequent purchaser            147     or expand the scope of coverage, of the express written warranty
119     accepts the assignment of the maintenance contract, the               148     or home warranty, as applicable, beyond the express written
120     subsequent purchaser is obligated to comply with the terms and        149     warranty’s or home warranty’s terms.
121     conditions of the maintenance contract, including, but not            150          (b) Require a builder or home warranty association to be
122     limited to, the payment of consideration. A builder or home           151     obligated under a warranty that has become null and void
123     warranty association must provide notice of any amounts due           152     pursuant to the terms of the warranty.
124     under the maintenance contract to a subsequent purchaser at the       153          (c) Require a builder that is obligated under and provides
125     home address covered by such contract unless the subsequent           154     a home purchaser an express written warranty to obtain a license
126     purchaser notifies the builder or home warranty association of a      155     under the Florida Insurance Code, and such practice does not
127     preferred method of notification.                                     156     constitute the transaction of insurance subject to the
128          (b) Unless a maintenance contract is a condition of a home       157     requirements of the code, unless otherwise required by law.
129     warranty, the home warranty does not automatically transfer to a      158          (d) Permit the provision of indemnification against
130     subsequent purchaser. Such maintenance contract shall transfer        159     consequential damages arising from the failure of any structural
131     to a subsequent purchaser only to the extent that the builder or      160     component, which practice constitutes the transaction of
132     home warranty association and subsequent purchaser agree to the       161     insurance subject to the requirements of the Florida Insurance
133     assignment of the contract.                                           162     Code.
134          (4) A subsequent purchaser who receives the benefit of a         163          (e) Require any subsequent purchaser to be bound by the
135     warranty being automatically transferred to him or her for the        164     terms of a home maintenance contract unless he or she agrees to
136     duration of the home warranty pursuant to this section must           165     the maintenance contract being assigned to him or her.
137     notify the builder or home warranty association that he or she        166          Section 4. Chapter 634, Florida Statutes, entitled
138     has purchased the home and therefore is the warrantee under the       167     “Warranty Associations,” is renamed “Warranties and Warranty
139     home warranty. Such notice may be given at any time while the         168     Associations.”
140     warranty remains in effect. A builder or home warranty                169          Section 5. This act shall take effect July 1, 2024.
141     association may not require in the terms of a warranty a shorter
142     notice period than provided for in this subsection.
143          (5) A builder may not charge a fee for a transfer of a
144     warranty which occurs automatically pursuant to this section.
145          (6) This section does not:

                                      Page 5 of 6                                                                Page 6 of 6
      CODING: Words stricken are deletions; words underlined are additions.         CODING: Words stricken are deletions; words underlined are additions.
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                                        The Florida Senate

                          Committee Agenda Request




To:            Senator Jay Trumbull, Chair
               Committee on Commerce and Tourism


Subject:       Committee Agenda Request


Date:          January 31,2024



I respectfully request that Senate Bitl #966, relating to Home Warranty Transfers, be placed on
the:

               committee agenda at your earliest possible convenience.

        x      next committee agenda.




                                             Senator Danny Burgess
                                             Florida Senate, District 23




Fib 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:           CS/SB 1074
INTRODUCER:     Banking and Insurance Committee and Senator Calatayud
SUBJECT:        Debt Relief Services
DATE:           February 5, 2024                REVISED:


           ANALYST                    STAFF DIRECTOR                 REFERENCE                                 ACTION
1. Moody                            Knudson                               BI              Fav/CS
2. Baird                            McKay                                 CM              Favorable
3.                                                                        RC



                     Please see Section IX. for Additional Information:
                                   COMMITTEE SUBSTITUTE - Substantial Changes




 I.     Summary:

        CS/SB 1074 establishes an exception to the credit counseling services provisions in Part IV of
        ch. 817, F.S., for any telemarketer or seller who:
         Provides any debt relief service within the scope of specified federal telemarketing laws;
         Is required to comply with such federal regulation; and
         Such telemarketer or seller does not receive from the debtor and disburse to a creditor any
            money or other thing of value.

        The bill defines the terms “telemarketer,” “seller,” and “debt relief service” to have the same
        meaning as in the Telemarketing Sales Rule, 16 C.F.R. s. 310.2.

        The bill has an effective date of July 1, 2024.

 II.    Present Situation:

        Credit counseling agencies operating in Florida may provide services that meet the definition of
        “debt relief services” under Federal law and also fall within the definition of “debt management
        services” under Florida law.

        Telemarketers who sell debt relief services are regulated under federal law, which defines “debt
        relief services” as:
BILL: CS/SB 1074                                                                                                 Page 2

                 [A]ny program or service represented, directly or by implication, to renegotiate,
                 settle, or in any way alter the terms of payment or other terms of the debt between
                 a person and one or more unsecured creditors or debt collectors, including, but not
                 limited to, a reduction in the balance, interest rate, or fees owed by a person to an
                 unsecured creditor or debt collector.1

        Under Florida law, “debt management services” are defined as “services provided to a debtor by
        a credit counseling organization for a fee to:
             Effect the adjustment, compromise, or discharge of any unsecured account, note, or other
                indebtedness of the debtor; or
             Receive from the debtor and disburse to a creditor any money or other thing of value.”2

        Providers of services captured by both of the foregoing definitions are therefore subject to
        Federal law regulating debt relief services and the credit counseling services provisions in ch.
        817, F.S. Some providers that sell debt relief services, who comply with compensation
        requirements under federal law but fail to comply with the compensation requirements under
        Florida law for credit counseling agencies that provide debt management services, are at risk of
        being subjected to private causes of action under the Florida Deceptive and Unfair Trade
        Practices Act (FDUTPA)3 for violating provisions of ch. 817, F.S.4

        Debt Relief Services in Florida

        Consumer Debt Relief Initiative and American Association of Debt Relief report that
        approximately 180 debt settlement/debt resolution companies currently provide debt relief
        services to Floridians. Based on data points and general information provided by payment
        processors and industry leading organizations, there are approximately 325,000 Floridians who
        are actively enrolled in debt relief services, which is expected to increase in the next couple of
        years to more than 400,000 Floridians. With respect to debt settlement plans:5
         The average debt is approximately $30,000 spread over 6.7 accounts;
         The average income for enrolled consumers is approximately 10-15% above average
            household income;
         The average credit score for an enrolled consumer is 590;
         The average length of a plan is approximately 38 months; and
         The average monthly payment deposited into the client’s personal dedicated account is
            approximately $465.

        Currently, more than $5.6 billion of Floridians’ unsecured debt is enrolled in debt settlement
        plans.6


1
  16 C.F.R. s. 310.2(o)
2
  Section 817.801(4), F.S.
3
  Part II of ch. 501, F.S.
4
  Section 817.806(1), F.S.
5
  Email from Kelly C. Mallette, Ronald L. Book, P.A., to Jacqueline Moody, Senior Attorney, Florida Senate Committee on
Banking and Insurance, Additional Information [Relating to SB 1074], (Jan. 18, 2024) (on file with Senate Committee on
Banking and Insurance) (attaching “Debt Relief Services”).
6
  Id.
BILL: CS/SB 1074                                                                                                      Page 3

         Federal law
         There are no federal laws that require credit counseling agencies to be licensed. As required
         under federal bankruptcy laws, however, the U.S. Department of Justice publishes a list of credit
         counseling agencies that are approved pursuant to this law.7 According to the Consumer
         Financial Protection Bureau, credit counseling organizations are nonprofit organizations and
         provide services relating to:8
          Providing guidance on managing money and debts;
          Providing the consumer with a credit report or free educational materials and workshops;
          Assisting with developing a budget; and
          Creating and organizing a debt management plan to reduce the consumer’s debt.

         A consumer under a debt management plan makes payments to the credit counseling agency
         each month or pay period and the agency makes monthly payments to each of the consumer’s
         creditors.9 Under a debt management plan, a consumer may reduce their debt payment and save
         more money in interest than the fees required for the credit counseling service.10

         Federal Debt Relief Services Regulation

         The Telemarketing and Consumer Fraud and Abuse Prevention Act (the Telemarketing Act), 15
         U.S.C. ss. 6101-6108, requires the Federal Trade Commission (FTC) to adopt rules prohibiting
         deceptive or other abusive telemarketing11 acts or practices. The Telemarketing Act sets out
         specific provisions that must be contained in the rules, including, but not limited to, a provision
         that requires any person engaged in telemarketing for the sale of goods or services to promptly
         and clearly disclose that the purpose of the call is to sell the services, the nature and price of the
         services, and any other disclosures required by the FTC.12 The FTC has adopted the required
         rules in the Telemarketing Sales Rule (TSR). The Telemarketing Act authorizes any state to
         bring a civil action against any person who has violated the TSR to obtain damages, restitution,
         or other compensation, to enjoin the telemarketing, to enforce compliance, or to obtain such
         further relief as the court may deem appropriate.13




7
  The U.S. Department of Justice, List of Credit Counseling Agencies Approved Pursuant to 11 U.S.C. §111, available at:
U.S. Trustee Program | List of Credit Counseling Agencies Approved Pursuant to 11 U.S.C. § 111 | United States Department
of Justice (last visited February 5, 2024).
8
  The CFPB, What is Credit Counseling, Aug. 2, 2023, available at: What is credit counseling? | Consumer Financial
Protection Bureau (consumerfinance.gov) (last visited February 5, 2024).
9
  Id.
10
   Experian, How Much Can a Debt Management Plan Save You?, Apr. 3, 2023, available at: Can a Debt Management Plan
(DMP) Save You Money? - Experian (last visited February 5, 2024).
11
   15 U.S.C. s. 6106 defines “telemarketing” as “a plan, program, or campaign which is conducted to induce purchases of
goods or services, or a charitable contribution, donation, or gift of money or any other thing of value, by use of one or more
telephones and which involves more than one interstate telephone call. The term does not include the solicitation of sales
through the mailing of a catalog.”
12
   15 U.S.C. s. 6102(a)(3).
13
   15 U.S.C. s. 6103(a).
BILL: CS/SB 1074                                                                                                           Page 4

         The TSR, amongst other things, prohibits any person, such as a seller14 or telemarketer,15 from
         engaging in deceptive telemarketing acts or practices which include, but are not limited to:16
          Before a customer consents to the purchase of services, failing to truthfully, clearly, and
            consciously disclose specified material information, including specific information relating to
            the sale of any debt relief service;17
          Misrepresenting in the sale of services any of the specified material information; and
          Causing billing information to be submitted for payment, or collecting or attempting to
            collect payment for services without express verifiable authorization, except in specified
            circumstances.

         The specified disclosures for debt relief services include, to the extent applicable, information
         relating to:18
          The amount of time necessary to achieve the represented results or to make a bona fide
             settlement offer;
          The amount of money or the percentage of each outstanding debt that the customer must
             accumulate before the debt relief service provider will make a bona fide settlement offer to
             each of them;
          The use of the debt relief services that will likely adversely affect the customer’s
             creditworthiness, may result in the customer being subject to collections or sued by creditors
             or debt collectors, and may increase the amount of money the customer owes; and
          The customer’s funds held in an account being owned by the customer.

         The TSR also prohibits abusive telemarketing acts or practices that restrict when a telemarketer
         or seller may request or receive payment of any fee or consideration for any debt relief service
         until or unless:19
          The telemarketer or seller has renegotiated, settled, reduced, or otherwise altered the terms of
             at least one debt;
          The customer has made at least one payment pursuant to a specified agreement or plan; and
          The fee:
             o Bears the same proportional relationship to the total fee for renegotiating, settling,
                  reducing, or altering the terms of the entire debt balance as the individual debt amount
                  bears to the entire debt amount; or
             o Is a percentage of the amount saved as a result of the renegotiation, settlement, reduction,
                  or alteration.



14
   16 C.F.R. s. 310.2(dd) defines “seller” as “any person who, in connection with a telemarketing transaction, provides, offers
to provide, or arranges for others to provide goods or services to the customer in exchange for consideration.”
15
   16 C.F.R. s. 310.2(ff) defines “telemarketer” as “any person who, in connection with telemarketing, initiates or receives
telephone calls to or from a customer or donor.”
16
   16 C.F.R. s. 310.3.
17
   16 C.F.R. s. 310.2(o) defines “debt relief service” as “any program or service represented, directly or by implication, to
renegotiate, settle, or in any way alter the terms of payment or other terms of the debt between a person and one or more
unsecured creditors or debt collectors, including, but not limited to, a reduction in the balance, interest rate, or fees owed by a
person to an unsecured creditor or debt collector.”
18
   16 C.F.R. s. 310.3(a)(1)(viii).
19
   16 C.F.R. s. 310.4(a)(5).
BILL: CS/SB 1074                                                                                                       Page 5

         Florida law
         Credit counseling services are regulated under part IV of ch. 817 of the Florida Statutes. A credit
         counseling agency may provide credit counseling services or debt management services.20 Credit
         counseling services may include “confidential money management, debt reduction, and financial
         education services.”21

         There are several exceptions for which part IV does not apply, including:22
          Any debt management or credit counseling services provided in the practice of law;
          Any person23 who engages in debt adjustment to adjust the indebtedness owed to such
            person;
          Specified entities or their subsidiaries, including:
            o The Federal National Mortgage Association,
            o The Federal Home Loan Mortgage Corporation,
            o The Florida Housing Finance Corporation,
            o A bank, bank holding company, trust company, savings and loan association, credit
                union, credit card bank, or savings bank that is regulated and supervised by a specified
                federal regulator or any state banking regulator,
            o A consumer reporting agency,24 or
            o Any subsidiary or affiliate of a bank holding company, its employees and its exclusive
                agents acting under written agreement.

         It is unlawful for any person to charge or accept more than the regulated fee or contribution 25
         from a debtor residing in Florida while engaging in debt management services or credit
         counseling services. Specifically, a fee or contribution:26
          May not be greater than $50 for the initial setup or consultation;
          May not be greater than $120 per year for additional consultations; or
          If debt management services are provided, the lesser of 15% of the amount paid monthly by
              the debtor to the person or $75 per month.

         Any person engaging in debt management services or credit counseling services must disburse to
         the appropriate creditors all funds received from a debtor, less any permitted fees and credit
         contributions, within 30 days after receipt of the funds. Such person is required to maintain a
         separate trust account for the receipt and disbursement of any funds.27
20
   Section 817.801(1), F.S.
21
   Section 817.801(2), F.S.
22
   Section 817.803, F.S.
23
   Section 817.801(5), F.S., defines “person” as “any individual, corporation, partnership, trust, association, or other legal
entity.”
24
   “Consumer reporting agency” means “any person which, for monetary fees, dues, or on a cooperative nonprofit basis,
regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other
information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or
facility of interstate commerce for the purpose of preparing or furnishing consumer reports.” 15 U.S.C. s. 1681a(f).
25
   Section 817.801(3), F.S., defines creditor contribution as “any sum that a creditor agrees to contribute to a credit
counseling agency, whether directly or by setoff against amounts otherwise payable to the creditor on behalf of debtors.”
26
   Section 817.802(1), F.S. Florida law does not prohibit any person who is providing debt management or credit counseling
services from imposing upon and receiving from a debtor a reasonable and separate charge or fee for insufficient funds
transactions. Section 817.802(2), F.S.
27
   Section 817.805, F.S.
BILL: CS/SB 1074                                                                                                           Page 6


         Any person engaged in debt management services or credit counseling services must comply
         with the following requirements:28
          Obtain from a licensed certified public accountant an annual audit that must include specified
            accounts; and
          Obtain and maintain insurance coverage of minimum specified amounts for employee
            dishonesty, depositor’s forgery, and computer fraud.

         Any person who violates any provision of the credit counseling services provision under Part IV
         commits an unfair and deceptive trade practice.29

         Florida Deceptive and Unfair Trade Practices
         The FDUTPA provides that unfair methods of competition, unconscionable acts or practices, and
         unfair or deceptive acts or practices in the conduct of any trade or commerce are unlawful.30 This
         makes sellers and telemarketers subject to the enforcement actions identified in part II of ch. 501,
         F.S., which include civil actions brought by the Attorney General and criminal prosecution by a
         State Attorney in the appropriate judicial circuit. Civil actions may also include an injunction, an
         action seeking damages, or a civil penalty up to $10,000 per violation.31

         Florida Telemarketing Act
         Although the Florida Telemarketing Act32 (the Act) does not contain explicit provisions on
         telemarketing debt relief services, telemarketers who sell debt relief services in Florida are
         nonetheless required to comply with the general provisions of the Act. Unless an exemption
         applies,33 a commercial telephone seller or an entity providing substance abuse marketing
         services must obtain a license from the Department of Agriculture and Consumer Services
         (DACS) to conduct business in Florida.34 The Act requires the entities that apply for a license to
         disclose specified information to the DACS.35 The DACS may issue a notice of noncompliance,
         impose an administrative fine, or issue other orders if any regulated entity, applicant, or certain
         specified related persons meet certain criteria, such as being convicted of certain crimes or filed
         for bankruptcy within the previous 7 years.36 The Act provides other protections such as
         subjecting any person who engages in certain unlawful acts or practices to civil penalties or
         criminal prosecution.37




28
   Section 817.804, F.S.
29
   Section 817.806(1), F.S.
30
   Section 501.204(1), F.S.
31
   Section 501.2075, F.S.
32
   Part IV of chapter 501, F.S.
33
   Section 501.604, F.S., provides for exemptions relating to, for instance, an isolated transaction, solicitation for religious or
charitable purposes, or a licensed securities broker.
34
   Section 501.605(1), F.S.
35
   Section 501.606, F.S.
36
   Section 501.612, F.S.
37
   Sections 501.616, 501.619, and 501.623 F.S.
BILL: CS/SB 1074                                                                                      Page 7

III.     Effect of Proposed Changes:

         CS/SB 1074 provides that the credit counseling services provisions do not apply to debt relief
         services, which are regulated under the TSR. Section 1 of the bill adds an exception to the
         provisions of credit counseling services for telemarketers and sellers who:
          Provide debt relief services within the scope of the Telemarketing and Consumer Fraud and
             Abuse Prevention Act, 15 U.S.C. ss. 6101-6108, and the Telemarketing Sales Rule, 16
             C.F.R. part 310;
          Are required to comply with such federal regulation; and
          Do not receive from the debtor or disburse to a creditor any money or other thing of value, in
             accordance with the second prong of the definition of “debt management services” under s.
             817.801(4)(b), F.S.

         The terms “telemarketer,”38 “seller,”39 and “debt relief service”40 have the same meaning as the
         definitions in the TSR.

         The bill’s amendments to current law will limit the legal actions brought against telemarketers of
         debt relief services for failing to comply with ch. 817, F.S. However, such sellers would remain
         subject to causes of action pursuant to 15 U.S.C. s. 6103 for violating the provisions of the TSR.
         Telemarketers of debt relief services are also subject to causes of action for any violations of the
         requirements under FDUTPA or any violations of the Florida Telemarketing Act.

         Section 2 of the bill provides 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.

         E.          Other Constitutional Issues:

                     None.

38
   Supra, note 21.
39
   Supra, note 20.
40
   Supra, note 23.
 BILL: CS/SB 1074                                                                                                                       Page 8

  V.     Fiscal Impact Statement:

         A.        Tax/Fee Issues:

                   None.

         B.        Private Sector Impact:

                   The Florida Office of Attorney General reports that the bill may subject consumers to
                   higher fees but it is unknown to what extent or with what frequency this may occur.41

         C.        Government Sector Impact:

                   The Florida Office of Attorney General reports that the fiscal impact would be “minimal
                   or indeterminate, and would be absorbed within current resources.”42

 VI.     Technical Deficiencies:

         None.

VII.     Related Issues:

         None.

VIII.    Statutes Affected:

         This bill substantially amends the following sections of the Florida Statutes: 817.803.

 IX.     Additional Information:

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

                   CS by Banking and Insurance on January 22, 2024:
                    Expands the list of exceptions that are within the scope of the credit counseling
                      services provisions under ch. 817, F.S., relating to debt relief services;
                    Provides certain terms have the same meaning as the TSR.

         B.        Amendments:

                   None.

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


 41
    Email from Elizabeth Guzzo, Director of Legislative Affairs, the OAG, to Jacqueline Moody, Senior Attorney, Florida
 Senate Committee on Banking and Insurance, SB 1074 – Debt Relief Services, (Jan. 17, 2024) (on file with Senate Committee
 on Banking and Insurance).
 42
    Email from Elizabeth Guzzo, Director of Legislative Affairs, the OAG, to Jacqueline Moody, Senior Attorney, Florida
 Senate Committee on Banking and Insurance, SB 1074 – Debt Relief Services, (Jan. 19, 2024) (on file with Senate Committee
 on Banking and Insurance).
       Florida Senate - 2024                               CS for SB 1074            Florida Senate - 2024                              CS for SB 1074



       By the Committee on Banking and Insurance; and Senator Calatayud




       597-02366-24                                              20241074c1          597-02366-24                                            20241074c1
1                              A bill to be entitled                          30     any state banking regulator.;
2           An act relating to debt relief services; amending s.              31          (e) A consumer reporting agency as defined in the Federal
3           817.803, F.S.; providing an exception from specified              32     Fair Credit Reporting Act, 15 U.S.C. ss. 1681-1681y, as it
4           provisions for telemarketers and sellers who provide              33     existed on April 5, 2004.; or
5           debt relief services under certain circumstances;                 34          (f) Any subsidiary or affiliate of a bank holding company,
6           defining terms; providing an effective date.                      35     its employees and its exclusive agents acting under written
7                                                                             36     agreement.
8      Be It Enacted by the Legislature of the State of Florida:              37          (4)(a) Any telemarketer or seller who provides any debt
9                                                                             38     relief service within the scope of the Telemarketing and
10          Section 1. Section 817.803, Florida Statutes, is amended to       39     Consumer Fraud and Abuse Prevention Act, 15 U.S.C. ss. 6101-
11     read:                                                                  40     6108, and the Telemarketing Sales Rule, 16 C.F.R. part 310, and
12          817.803 Exceptions.—Nothing in This part does not apply           41     who therefore is required to comply with such federal
13     applies to:                                                            42     regulation, if such telemarketer or seller does not receive from
14          (1) Any debt management or credit counseling services             43     the debtor and disburse to a creditor any money or other thing
15     provided in the practice of law in this state.;                        44     of value, in accordance with the definition of debt management
16          (2) Any person who engages in debt adjustment to adjust the       45     services under s. 817.801(4)(b).
17     indebtedness owed to such person.; or                                  46          (b) As used in this subsection, the terms “telemarketer,”
18          (3) Any of the following entities or their subsidiaries:          47     “seller,” and “debt relief service” have the same meaning as in
19          (a) The Federal National Mortgage Association.;                   48     16 C.F.R. s. 310.2.
20          (b) The Federal Home Loan Mortgage Corporation.;                  49          Section 2. This act shall take effect July 1, 2024.
21          (c) The Florida Housing Finance Corporation, a public
22     corporation created in s. 420.504.;
23          (d) A bank, bank holding company, trust company, savings
24     and loan association, credit union, credit card bank, or savings
25     bank that is regulated and supervised by the Office of the
26     Comptroller of the Currency, the Office of Thrift Supervision,
27     the Federal Reserve, the Federal Deposit Insurance Corporation,
28     the National Credit Union Administration, the Office of
29     Financial Regulation of the Department of Financial Services, or

                                   Page 1 of 2                                                                  Page 2 of 2
     CODING: Words stricken are deletions; words underlined are additions.         CODING: Words stricken are deletions; words underlined are additions.
                                                                         The Florida Senate

                                                              APPEARANCE RECORD                                                   {b1
                              fr $rv1
                                                                                                                                     Bill Number orTopic
                                                                       Deliver both copies of this form to
                                                                Senate professional staff conducting the meeting

                                                                                                                             Amendment Barcode (if applicable)


Name                             t'l                                                                   Phone       frro) v7,{- g'{ z1
Address
           Street
                                                                     Sv"tP                             Email


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           City                                       State                      Zip




              Speaking:             For    !    Against I       lnformatlon OR                    WaiveSpeaking:     !   lnSupport I       Against



                                                              PLEASE CHECK ONE OF THE FOLLOWING:

       lam appearing without                                          am a registered lobbyist,                             I am not a lobbyist, but received
       compensation or sponsorship.                                  representing                                           something of value for my appearance
                                                                                                                            (travel, meals, lodging, etc.),


                       hns'u(vrLf \n-b+ Wt,*I h^',j*hvz                                                                  t CllKr
This form is part of the public record for this meeting.                                                                                            s-001 (o8/1o/2o21)
                                                      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 1206
INTRODUCER:     Senator Martin
SUBJECT:        Live Performances
DATE:           February 5, 2024                REVISED:


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



  I.    Summary:

        SB 1206 creates the “Right to Rock Act,” which prohibits the owner or operator of a public
        venue from canceling a live performance of an artist, a performer, or a musical group because of
        their lawful exercise of freedom of speech or their personal beliefs.

        The bill defines “public venue” as a place, building, or structure, regardless of whether owned by
        or rented to a governmental entity, school, college, or university, which is funded by or
        constructed with public or government funds.

        The bill does not apply to an owner or operator who cancels a live performance based on a
        reasonable belief that the performance would violate any applicable state law or rule.

        The bill requires a venue owner or operator who cancels a live performance of an artist, a
        performer, or a musical group in violation of the provisions in the bill to bear all costs, fees, and
        penalties enumerated in the related contract with the artist, performer, or musical group.

        The bill takes effect July 1, 2024.
BILL: SB 1206                                                                                                            Page 2

    II.   Present Situation:

          Local Option Taxes

          Local governments in Florida are authorized to impose certain types of local option taxes.1 The
          Department of Revenue (DOR) or the local government is responsible for administering the tax.2
          When the DOR administers the tax, its responsibilities include collecting the tax and distributing
          the funds to local governments to spend on locally authorized projects.3

          Convention Development Taxes
          Duval, Miami-Dade, and Volusia Counties are authorized to levy convention development taxes
          on transient rental transactions.4 The revenues of convention development taxes may generally
          be used for capital construction of convention centers and other facilities related to tourism and
          tourist promotion.5 However, the authorized uses vary according to each particular levy.6 The
          five available levies that may apply are:
           Consolidated government levy for convention development;7
           Charter county levy for convention development;8
           Special district levy for convention development;9
           Special levy for convention development;10 and

1
  Department of Revenue, Local Option Taxes, available at
https://floridarevenue.com/taxes/taxesfees/Pages/local_option.aspx#:~:text=Florida%20Statutes%20(F.S.)-
,Consolidated%20County%20Convention%20Development%20Tax,charged%20for%20transient%20rental%20transactions
(last visited Feb. 5, 2024).
2
  Id.
3
  Id.
4
  Department of Revenue, Local Option Taxes: Convention Development Taxes, available at
https://floridarevenue.com/taxes/taxesfees/Pages/local_option.aspx#:~:text=Florida%20Statutes%20(F.S.)-
,Consolidated%20County%20Convention%20Development%20Tax,charged%20for%20transient%20rental%20transactions
(last visited Feb. 5, 2024). See also s. 212.0305, F.S.
5
  Id.
6
  Id.
7
  Each county that operates under a government consolidated with that of one or more municipalities in the county may
impose, pursuant to an ordinance enacted by the governing body of the county, a levy on the exercise within its boundaries of
the taxable privilege of leasing or letting transient rental accommodations described in s. 212.0305(3), F.S., at the rate of 2
percent of each dollar and major fraction of each dollar of the total consideration charged therefor. See s. 212.0305(4)(a), F.S.
8
  Each county, as defined in s. 125.011(1), F.S., may impose, under an ordinance enacted by the governing body of the
county, a levy on the exercise within its boundaries of the taxable privilege of leasing or letting transient rental
accommodations described in s. 212.0305(3), F.S., at the rate of 3 percent of the total consideration charged therefor. See s.
212.0305(4)(b), F.S. Section 125.011(1), F.S., defines “county” as any county operating under a home rule charter adopted
pursuant to ss. 10, 11, and 24, Art. VIII of the State Constitution of 1885, as preserved by Art. VIII, s. 6(e) of the State
Constitution, which county, by resolution of its board of county commissioners, elects to exercise the powers herein
conferred. Use of the word “county” within the above provisions shall include “board of county commissioners” of such
county.
9
  Each county which was chartered under Art. VIII of the State Constitution and which on January 1, 1984, levied a tourist
advertising ad valorem tax within a special taxing district in that county may impose, pursuant to an ordinance enacted by the
governing body of the county, a levy within the boundaries of such special taxing district on the exercise of the taxable
privilege of leasing or letting transient rental accommodations described in s. 212.0305(3), F.S., at a rate of up to 3 percent of
each dollar and major fraction of each dollar of the total consideration charged therefor. See s. 212.0305(4)(c), F.S.
10
   Each county which was chartered under Art. VIII of the State Constitution and which on January 1, 1984, levied a tourist
advertising ad valorem tax within a special taxing district in that county may impose, pursuant to an ordinance enacted by the
governing body of the county, a levy outside the boundaries of such special taxing district and to the southeast of State Road
BILL: SB 1206                                                                                                           Page 3

            Subcounty levy for convention development.11

         Economic Development Programs

         Florida’s economic development programs are used to help promote a diverse and resilient
         economy.12 Each program is designed to serve a different role, and there is an emphasis on
         attracting businesses and retaining jobs.13 The programs come in various forms such as tax
         refunds, tax credits, tax exemptions, and grants.14 An analysis of a project’s needs, as well as
         eligibility requirements of various programs help determine which programs may be a good fit
         for each project.15 Below is a chart that provides an overview of the different types of economic
         development programs, the claims process, and revenue sources.16

                  Program                     Description             Overview of Claims              Revenue Source
                                                                           Process
                Tax Refunds             Refund of taxes paid          (1) Business pays taxes        Annual appropriation
                                                                      (2) State verifies job
                                                                      creation, wages, and tax
                                                                      payments
                                                                      (3) State issues refund
                                                                      to eligible business
                Tax Credits               Credit against taxes        (1) State verifies jobs          Foregone revenue
                                                 owed                 and capital investment
                                                                      (as applicable)
                                                                      (2) Eligible business
                                                                      claims credits on state
                                                                      taxes after meeting
                                                                      program requirements
              Tax Exemptions             Exemption from taxes         (1) DOR issues tax               Foregone revenue
                                                owed                  exemption permit to
                                                                      business for approved
                                                                      tax-exempt purchases
                                                                      (2) Business uses
                                                                      permit to make eligible
                                                                      tax-exempt purchases



415, on the exercise of the taxable privilege of leasing or letting transient rental accommodations described in s. 212.0305(3),
F.S., at a rate of up to 3 percent of each dollar and major fraction of each dollar of the total consideration charged therefor.
See 212.0305(4)(d), F.S.
11
   Each county which was chartered under Art. VIII of the State Constitution and which on January 1, 1984, levied a tourist
advertising ad valorem tax within a special taxing district in that county may impose, pursuant to an ordinance enacted by the
governing body of the county, a levy outside the boundaries of such special taxing district and to the northwest of State Road
415, on the exercise of the taxable privilege of leasing or letting transient rental accommodations described in s. 212.0305(3),
F.S., at a rate of up to 3 percent of each dollar and major fraction of each dollar of the total consideration charged therefor.
The proceeds of this levy shall be known as the subcounty convention development tax. See 212.0305(4)(e), F.S.
12
   Department of Economic Opportunity, 2022 Incentives Report, available at https://www.floridajobs.org/docs/default-
source/reports-and-legislation/2021-2022-annual-incentives-report.pdf (last visited Feb. 5, 2024).
13
   Id.
14
   Id.
15
   Id.
16
   Id.
BILL: SB 1206                                                                                          Page 4

                   Grants                Grant with a       (1) Business achieves      Annual appropriation
                                      performance-based     performance milestones
                                          agreement         (2) State verifies job
                                                            creation, wages, and
                                                            capital investment (as
                                                            applicable)
                                                            (3) State issues
                                                            payment

         Professional Sports Franchise Program
         Florida is home to many professional and semi-professional sports teams, organizations and
         facilities, including professional football, basketball, baseball, hockey, soccer, and National
         Association of Stock Car Racing sanctioned tracks. The Professional Sports Franchise program
         allows professional sports franchises to receive state sales and use tax revenues to pay for the
         acquisition, construction, reconstruction, or renovation of a facility for a new or retained
         professional sports franchise.17 Local governments, non-profit, and for-profit entities may apply
         to the program.

         The Florida Department of Commerce (DCM) is responsible for screening and certifying
         applicants for state funding.18 For both new and retained franchises, the DCM must confirm and
         verify the following:19
          A local government is responsible for the construction, management, or operation of the
             professional sports franchise facility, or holds title to the property where the facility is
             located;
          The applicant has a verified copy of a signed agreement with a new professional sports
             franchise for at least 10 years, or for 20 years in the case of a retained franchise;
          The applicant has a verified copy of the approval by the governing body of the NFL, MLB,
             NHL, or NBA authorizing the location of a new franchise in Florida after April 1, 1987, for
             new professional sports franchises, or verified evidence of a league-authorization location in
             Florida on or before December 31, 1976, for a retained professional sports franchise;
          The applicant has projections demonstrating a paid annual attendance of over 300,000;
          The applicant has an independent analysis demonstrating that the annual amount of sales
             taxes generated by the use or operation of the franchise’s facility will be at least $2 million;
          The local government where the franchise’s facility is located, or the county of the facility is
             in an unincorporated area, has certified by resolution after a public hearing that the
             application serves a public purpose; and
          The applicant has demonstrated that it has provided, is capable of providing, financial or
             other commitments of more than one-half of the costs incurred or related to the
             improvements or development of the franchise’s facility.




17
   Section 288.1162, F.S.
18
   Section 288.1162(1), F.S.
19
   Section 288.1162(4)(a)-(g), F.S.
BILL: SB 1206                                                                                                      Page 5

        Approved applicants are eligible to receive up to $2,000,004 per year for a period of up to 30
        years.20 No more than eight facilities can be certified under this program at one time.21

        Currently, at least seven facilities receive distributions under the Professional Sports Franchise
        Program, and one facility received its final distribution in June of 2023. Each facility is on track
        to receive $60 million, which is the maximum distribution allowable under this program
        ($166,667 per month or $2,000,004 per year, over 30 years) as follows:22

           Facility name           Location,                Franchise          First and Final        Total payments
                                 Certified entity,                                payments             as of Nov. 30,
                                 & certification                                                            2023
                                       date
            BB&T Center         Sunrise, Broward        Florida Panthers           Aug. 1996             $54,666,776
                                County, June 1996                                  July 2026
              Hard Rock           Miami, South           Miami Dolphins            June 1994             $60,000,120
               Stadium           Florida Stadium                                   June 2023
                                 Corp., May 1993
          TIAA Bank Field       Jacksonville, City         Jacksonville            June 1994             $59,000,118
                                 of Jacksonville,            Jaguars               May 2024
                                    April 1994
              American          Miami, Basketball          Miami Heat             March 1998             $51,333,436
            Airlines Arena       Properties, LTD,                                 March 2028
                                    Feb. 1998
           Amway Center          Orlando, City of         Orlando Magic            Feb. 2008             $31,666,730
                                  Orlando, Nov.                                    Jan. 2038
                                       2007
           Raymond James             Tampa,                 Tampa Bay              Jan. 1997             $53,833,441
              Stadium              Hillsborough             Buccaneers             Dec. 2026
                                  County, Nov.
                                       1996

           AMALIE Arena           Tampa, Tampa              Tampa Bay              Sept. 1995            $56,500,113
                                     Bay Sports              Lightning             Aug. 2025
                                  Authority, July
                                        1995
            Tropicana Field        St. Petersburg,       Tampa Bay Rays            July 1995             $56,833,447
                                     City of St.                                   June 2025
                                  Petersburg, July
                                        1995
                                                                                           Total:      $423,834,181

        Public-private Partnerships (P3s)

        Public-private partnerships are contractual agreements formed between public entities and
        private sector entities that allow for greater private sector participation in the delivery and

20
   Section 212.20(6)(d)6.b., F.S.
21
   Section 288.1162(6), F.S.
22
   Florida Department of Commerce, All Professional Sports Facilities Payments as of Nov. 30, 2023. On file with the Senate
Commerce and Tourism Committee.
BILL: SB 1206                                                                                                   Page 6

        financing of public building and infrastructure projects. Through these agreements, the skills and
        assets of each sector, public and private, are shared in delivering a service or facility for use by
        the general public. In addition to the sharing of resources, each party shares in the risks and
        rewards potential in the delivery of the service or facility.23

        Section 255.065, F.S., governs the procurement process for P3s for public purpose projects. It
        authorizes a responsible public entity to enter into a P3 for a specified qualifying project if the
        responsible public entity determines the project is in the public’s best interest.24

        A “responsible public entity” is defined as a county, municipality, school district, special district,
        or any other political subdivision of the state; a public body politic and corporate; or a regional
        entity that serves a public purpose and is authorized to develop or operate a qualifying project. 25

        A “qualifying project” is defined as:
         A facility or project that serves a public purpose, including any ferry or mass transit facility,
           vehicle parking facility, airport or seaport facility, rail facility or project, fuel supply facility,
           oil or gas pipeline, medical or nursing care facility, recreational facility, sporting or cultural
           facility, or educational facility or other building or facility that is used or will be used by a
           public educational institution, or any other public facility or infrastructure that is used or will
           be used by the public at large or in support of an accepted public purpose or activity;
         An improvement, including equipment, of a building that will be principally used by a public
           entity or the public at large or that supports a service delivery system in the public sector;
         A water, wastewater, or surface water management facility or other related infrastructure; or
         For projects that involve a facility owned or operated by the governing board of a county,
           district, or municipal hospital or health care system, or projects that involve a facility owned
           or operated by a municipal electric utility, only those projects that the governing board
           designates as qualifying projects.26

        Freedom of Speech

        Freedom of speech is the right to engage in expression without censorship or interference from
        government or its agencies.27 This right is guaranteed by the Constitution of the United States
        and the Constitution of the State of Florida.

        The First Amendment of the United States Constitution provides that,

                 Congress shall make no law respecting an establishment of religion, or prohibiting
                 the free exercise thereof; or abridging the freedom of speech, or of the press; or
                 the right of the people peaceably to assemble, and to petition the Government for
                 a redress of grievances.


23
   See United States Department of Transportation, The Federal Highway Administration, Innovative Program Delivery, P3
Defined, available at http://www.fhwa.dot.gov/ipd/p3/defined/index.htm (last visited on Feb. 5, 2024).
24
   Section 255.065(3)(d), F.S.
25
   Section 255.065(1)(j), F.S.
26
   Section 255.065(1)(i), F.S.
27
   See Perry Education Ass’n v. Perry Local Educators’ Ass’n, 460 U.S. 37 (1983).
BILL: SB 1206                                                                                                        Page 7

         Article I, section 4 of the Florida Constitution provides that,

                 Every person may speak, write and publish sentiments on all subjects but shall be
                 responsible for the abuse of that right. No law shall be passed to restrain or
                 abridge the liberty of speech or of the press. In all criminal prosecutions and civil
                 actions for defamation the truth may be given in evidence. If the matter charged
                 as defamatory is true and was published with good motives, the party shall be
                 acquitted or exonerated.

         Violations and Permissible Regulations of Free Speech and Expression

         The government or another state actor, such as a public university, violates a person’s right of
         free speech and expression when the person’s speech is punished or restricted based on its
         content. Even offensive content is constitutionally protected and subject to the highest level of
         constitutional scrutiny so long as it does not constitute a threat or incite violence,28 is not
         fraudulent or falsely defamatory,29 or is not grossly obscene, as in the case of child
         pornography.30 For example, in Cohen v. California, the United States Supreme Court reversed
         the conviction of a man arrested for wearing a jacket that said “F**k The Draft” while walking
         through the corridor of a courthouse, where the conviction was based solely on the contents of
         the jacket’s message.31 As noted by the Supreme Court, “so long as there is no showing of an
         intent to incite disobedience to or disruption of the draft, Cohen could not, consistently with the
         First and Fourteenth Amendments, be punished for asserting the evident position on the inutility
         or immorality of the draft his jacket reflected.”32

         However, the government or a public actor may limit or regulate an individual’s freedom of
         speech or expression if the speech or expression occurs on government-owned property, such as
         at a public elementary, middle, or high school, or at public universities.33 Such limitations are
         determined by the characterization of the type of public forum created on government property. 34

         Public Forums on Government Property
         There are three types of public forums:35
          A “traditional” or “open public forum”36 is a place with a longstanding tradition of freedom
            of expression, such as a public park, sidewalk, or street corner. In an open public forum, the
            government may only impose content-neutral, logistical restrictions on the time, place, and
            manner of speech and expression.37 Such content-neutral restrictions must be narrowly

28
   See Cohen v. California, 403 U.S. 15, 18 (1981), which notes the message on defendant’s jacket did not incite violence or
disrupt the draft.
29
   See U.S. v. Alvarez, 567 U.S. 709, 723 (2012) (“Where false claims are made to effect a fraud or secure moneys or other
valuable considerations, say offers of employment, it is well established that the Government may restrict speech without
affronting the First Amendment.”).
30
   New York v. Ferber, 458 U.S. 747, 764 (1982).
31
   See Cohen, 403 U.S. 15, 18 (1981).
32
   Id.
33
   International Society for Krishna Consciousness, Inc. v. Lee, 505 U.S. 672, 678 (1992).
34
   Id. at 678-79.
35
   Id.
36
   See Perry Education Association v. Perry Local Educators Association, 460 U.S. 37, 45-46 (1992).
37
   Id.
BILL: SB 1206                                                                                                         Page 8

             tailored to serve a significant governmental interest and leave open alternative channels for
             communication.38
            “Designated” public forums and “limited public forums”39 are places with a more limited
             history of expressive activity. Examples may include a community theater or a university
             meeting hall.40 A designated public forum usually refers to a place opened up for and
             designated to function like a traditional public forum, meaning the rules of a traditional
             public forum apply.41 On the other hand, a limited public forum is usually opened only for
             certain groups or topics, and thus, the government may also restrict the use of the forum to
             the purposes for which the forum was opened in addition to time, place, and manner
             restrictions.42 For example, when a public school permits outside groups to use its building
             after hours for certain types of meetings, a limited public forum has been opened.43 Once a
             limited forum is open, any limitation must be reasonable and viewpoint-neutral.44
            A “closed public forum” or “nonpublic forum” is a place that is not traditionally open to
             public expression, such as the teacher’s school mailroom at issue in Perry or a military base.

III.     Effect of Proposed Changes:

         The bill creates s. 760.61, F.S., the “Right to Rock Act,” which prohibits the owner or operator
         of a public venue from canceling a live performance of an artist, a performer, or a musical group
         because of the artist’s, performer’s, or musical group’s lawful exercise of freedom of speech or
         the artist’s, performer’s, or musical group members’ personal beliefs.

         The bill defines “public venue” as a place, building, or structure, regardless of whether owned by
         or rented to a governmental entity, school, college, or university, which is funded by or
         constructed with public or government funds.

         The bill provides that s. 760.61(1), F.S., does not apply to an owner or operator who cancels a
         live performance based on a reasonable belief that the performance would violate any applicable
         state law or rule.

         The bill requires a venue owner or operator who cancels a live performance of an artist, a
         performer, or a musical group in violation of s. 760.61(1), F.S., to bear all costs, fees, and
         penalties enumerated in the related contract with the artist, performer, or musical group.

         The bill takes effect July 1, 2024.




38
   Id.
39
   Id.
40
   Id.
41
   Pleasant Grove City, Utah v. Summum, 555 U.S. 460, 469-70 (2009).
42
   Id.
43
   Good News Club v. Milford Central School, 533 U.S. 98, 106–07 (2001) (holding a school’s exclusion of Christian
children’s club from meeting after hours based on its religious nature was unconstitutional viewpoint discrimination given the
public school had opened as a limited public forum).
44
   Summum, 555 U.S. at 470.
 BILL: SB 1206                                                                       Page 9

 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:

                 See the “Present Situation,” in Section II of this bill analysis.

  V.    Fiscal Impact Statement:

        A.       Tax/Fee Issues:

                 None.

        B.       Private Sector Impact:

                 None.

        C.       Government Sector Impact:

                 None.

 VI.    Technical Deficiencies:

        None.

VII.    Related Issues:

        None.

VIII.   Statutes Affected:

        This bill creates section 760.61 of the Florida Statutes.
BILL: SB 1206                                                                                                                        Page 10

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 1206           Florida Senate - 2024                                      SB 1206



       By Senator Martin




       33-00002B-24                                              20241206__          33-00002B-24                                            20241206__
1                              A bill to be entitled                          30          (b) This subsection does not apply to an owner or operator
2           An act relating to live performances; providing a                 31     who cancels a live performance based on a reasonable belief that
3           short title; creating s. 760.61, F.S.; prohibiting                32     the performance would violate any applicable state law or rule.
4           public venue owners or operators from canceling                   33          (2) A venue owner or operator who cancels a live
5           certain live performances on specified bases; defining            34     performance of an artist, a performer, or a musical group in
6           the term “public venue”; providing an exception;                  35     violation of subsection (1) shall bear all costs, fees, and
7           providing that venue owners or operators who violate              36     penalties enumerated in the related contract with the artist,
8           the prohibition bear the costs enumerated in the                  37     performer, or musical group.
9           related contract with the artist, performer, or                   38          Section 3. This act shall take effect July 1, 2024.
10          musical group whose performance was canceled;
11          providing an effective date.
12
13     Be It Enacted by the Legislature of the State of Florida:
14
15          Section 1. This act may be cited as the “Right to Rock
16     Act.”
17          Section 2. Section 760.61, Florida Statutes, is created to
18     read:
19          760.61 Discriminatory practices against artists or
20     performers prohibited.—
21          (1)(a) The owner or operator of a public venue may not
22     cancel a live performance of an artist, a performer, or a
23     musical group because of the artist’s, performer’s, or musical
24     group’s lawful exercise of freedom of speech or the artist’s,
25     performer’s, or musical group members’ personal beliefs. For the
26     purposes of this section, the term “public venue” means a place,
27     building, or structure, regardless of whether owned by or rented
28     to a governmental entity, school, college, or university, which
29     is funded by or constructed with public or government funds.

                                   Page 1 of 2                                                                  Page 2 of 2
     CODING: Words stricken are deletions; words underlined are additions.         CODING: Words stricken are deletions; words underlined are additions.
                                                                         The Florida Senate

   az lnru I                  1-Ll                            APPEARANCE RECORD                                                 tLbb
                    Meeting Date                                                                                                      Bill Number orTopic
                                                                       Deliver both copies of this form to
                                   -r
                                        \           Sr\t        Senate professional staff conducting the meeting

                     Committee                                                                                                Amendment Barcode (if applicable)


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Address      ll1|              €, Qa(V                                                                Email                     b             q
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           City                                       State                      Zip




              Speaking: I           ror I          Against I    lnformation OR                     Waive Speaking:   !   ln Support          Against



                                                              PLEASE CHECK ONE OF THE FOLLOWING:

       lam appearing without                                         t am a registered lobbyist,                             I am not a lobbyist, but received
                                                                !    representing:                                           something ofvalue for my appearance
       compensation or sponsorship.
                                                                                                                             (travel, meals, lodging, etc.),
                                                                                                                             sponsored by:




This form is part of the public record for this   meeting.                                                                                          5-001 (08/10/2021)
                                                                                         11:41:12 AM   Senator Torres
                                 CourtSmart Tag Report                                   11:41:15 AM   Senator Martin
                                                                                         11:41:30 AM   Senator Torres
                                                                                         11:41:36 AM   Senator Martin
Room: SB 110                       Case No.:                                 Type:       11:42:39 AM   Chair Trumbull
Caption: Senate Commerce and Tourism Committee                               Judge:      11:42:43 AM   Lauren Buete waives
                                                                                         11:42:55 AM   Chair Trumbull
Started: 2/6/2024 11:31:32 AM                                                            11:43:02 AM   Closure waived
Ends:    2/6/2024 11:45:22 AM        Length: 00:13:51                                    11:43:04 AM   Roll call
                                                                                         11:43:08 AM   SB 1206 reported favorably
11:31:32 AM   Chair Trumbull calls the meeting to order                                  11:43:29 AM   Tab 4 CS/SB 1074, Debt Relief Services introduced
11:31:36 AM   Roll call                                                                  11:43:48 AM   Explanation by Senator Rodriguez presenting for Senator Calatayud
11:31:40 AM   Quorum present                                                             11:43:59 AM   Chair Trumbull
11:31:55 AM   Chair Trumbull with opening comments                                       11:44:05 AM   Kelly Mallette waives
11:32:02 AM   Tab 1 SB 352, Virtual Currency Sales Tax Holiday introduced                11:44:09 AM   Chair Trumbull
11:32:23 AM   Explanation by Senator Brodeur                                             11:44:15 AM   Closure by Senator Rodriguez
11:32:58 AM   Amendment Barcode 441992 introduced                                        11:44:20 AM   Roll call
11:33:04 AM   Explanation by Senator Brodeur                                             11:44:22 AM   CS/SB 1074 reported favorably
11:33:14 AM   Chair Trumbull                                                             11:44:33 AM   Chair Trumbull
11:33:24 AM   Closure waived                                                             11:44:45 AM   Senator Wright moves to adjourn
11:33:28 AM   Amendment adopted                                                          11:45:12 AM   Meeting adjourned
11:33:33 AM   Chair Trumbull
11:33:40 AM   Questions
11:33:45 AM   Senator Torres
11:33:48 AM   Senator Brodeur
11:34:17 AM   Chair Trumbull
11:34:53 AM   Senator Brodeur with closure
11:35:01 AM   Roll call
11:35:14 AM   CS/SB 352 reported favorably
11:35:30 AM   Tab 2 CS/SB 458, Invalid Restrictive Covenants in Health Care introduced
11:35:41 AM   Explanation by Senator Brodeur
11:36:05 AM   Amendment Barcode 876150 introduced
11:36:09 AM   Explanation by Senator Brodeur
11:36:19 AM   Chair Trumbull
11:36:27 AM   Closure waived
11:36:30 AM   Amendment adopted
11:36:32 AM   Chair Trumbull
11:36:40 AM   Darren Patz waives
11:36:43 AM   Aimee Diaz Lyon waives
11:36:52 AM   Chair Trumbull
11:36:57 AM   Closure waived
11:36:59 AM   Roll call
11:37:02 AM   CS/CS/SB 458 reported favorably
11:37:12 AM   Tab 3 CS/SB 966, Home Warranty Transfers introduced
11:37:34 AM   Explanation by Senator Burgess
11:37:40 AM   Amendment Barcode 488320 introduced
11:37:44 AM   Explanation by Senator Burgess
11:37:53 AM   Chair Trumbull
11:38:18 AM   Closure waived
11:38:20 AM   Amendment adopted
11:38:25 AM   Chair Trumbull
11:38:29 AM   Edward Briggs waives
11:38:35 AM   Speaker Rusty Payton
11:39:20 AM   Karen Murillo waives
11:39:30 AM   Senator Burgess with closure
11:39:41 AM   Chair Trumbull
11:40:01 AM   Roll call
11:40:04 AM   CS/CS/SB 966 reported favorably
11:40:15 AM   Tab 5 SB 1206, Live Performances
11:40:35 AM   Explanation by Senator Martin
11:40:40 AM   Chair Trumbull
11:41:09 AM   Questions
                                               THE FLORIDA SENATE                                    COMMITTEES:
                                                                                                     Education Postsecondary, Vice Chair                                                                 THE FLORIDA SENATE                                          COMMITTEES:
                                                                                                     Fiscal Policv. Vice Chair                                                                                                                                       Community Afiairs, Chair
                                                     Tallahassee, Florida 32399-1100                 Appropriati<ins Commitlee on Transpottation,                                                              Tallahassee, Florida 32399-1'100                      Appropriations Committee on Education
                                                                                                      iourism, and Economic Development
                                                                                                     Commerce and Tourism                                                                                                                                            Education Pre-K 12
                                                                                                     Environment and Natural Resources                                                                                                                               Fiscal Policy
                                                                                                     Judiciary                                                                                                                                                       Health Policy
                                                                                                     SELECT COMMITTEE:                                                                                                                                               Select Commiftee on Resiliency
                                                                                                     Select Committee on Resiliency

                                                                                                     JOINT COMMITTEES:
                                                                                                     Joint Select Committee on Collective Bargaining
SENATOR LINDA STEWART                                                                                                                                  SENATOR Alexis Galatayud
       17th District
                                                                                                                                                               38th District


   February 6,2024                                                                                                                                                                                                                                         February 6th,2024
                                                                                                                                                          Honorable Senator Jay Trumbull
   Chairman Trumbull,                                                                                                                                     Chair - Committee on Commerce and Tourism
                                                                                                                                                          Honorable Chair Trumbull,
   Today I will need to leave committee to present multiple bills. Should I not be able to return to
   committee in a timely manner, please consider this letter a request to receive an excused absence                                                       I respectfully request that you allow SB 1074, relating to Debt Relief Services to be presented by
   from the Commerce and Tourism meeting today.
                                                                                                                                                          Committee on Commerce and Tourism member Senator Rodriguez, at today's meeting of the
   Best regards,
                                                                                                                                                           Commerce and Tourism Committee. Should you have any questions or concerns, please feel free to

             &                                                                                                                                             contact me or my office. Thank you in advance for your consideration.


   Senator Linda Stewart
                                                                                                                                                           Sincerely,




                                                                                                                                                              .lZzh r4 /ahty./
                                                                                                                                                           Senator Alexis M. Calatayud
                                                                                                                                                           Florida Senate, District 38


                                                                                                                                                           CC: Todd McKay, Staff Director
                                                                                                                                                                 Renita Hayes, Comm ittee Administrative Assistant




                   REPLY TO:
                      O 1726 South BumbyAvenue, Orlando, Florida 32806 (407) 893-2422
                      o zos senae Building, 4oa south Monroe street, Tallahassee, Florida 32399-1100 (850) 487-5017
                                                                                                                                                                               O 326 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399-'1100 (850) 487-5038
                                                     Senate's Website: www.fl sen ate.gov


                       KATHLEEN PASSIDOMO                                                           DENNIS BAXLEY
                                                                                                President Pro TemPore                                                          KATHLEEN PASSIDOMO                                                              DENNIS BAXLEY
                        President of the Senate                                                                                                                                                                                                            President Pro Tempore
                                                                                                                                                                                President of the Senate


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