Post-Meeting Packet — Commerce and Tourism Committee, Florida Senate (March 10, 2025)
Summary
Post-meeting packet for the Commerce and Tourism committee of the Florida Senate, 2025 Regular Session, for the meeting on Monday, March 10, 2025 at 1:30 p.m., with Senator Leek as Chair. The expanded agenda lists committee actions on CS/SB 282 (Warranty Associations), SB 678 (Pawnbroker Transaction Forms), SB 1132 (Digital Right to Repair), SB 676 (Minimum Wage Requirements), SB 702 (Provenance of Digital Content) and SB 1244 (Research and Development Tax Credit). It records, for example, Yeas 5 Nays 3 on SB 676 and Yeas 7 Nays 1 on SB 1132. A CourtSmart tag report follows with time entries for the meeting.
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“Post-Meeting Packet — Commerce and Tourism Committee, Florida Senate (March 10, 2025).”
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Commerce and Tourism - 03/10/2025 1:30 PM 2025 Regular Session
Customized 03/11/2025 11:21 AM
Tab
Tab 1 CS/SB 282 by BI, Truenow; Similar to CS/H 00367 Warranty Associations
Tab 2 SB 678 by Truenow; Similar to CS/H 00139 Pawnbroker Transaction Forms
307946 D S RCS CM, Truenow Delete everything after 03/10 05:18 PM
Tab 3 SB 1132 by Truenow; Identical to H 00235 Digital Right to Repair
120574 A S RCS CM, Truenow btw L.170 - 171: 03/10 04:14 PM
Tab 4 SB 676 by Martin; Identical to H 00541 Minimum Wage Requirements
146974 A S LRCS CM, Martin Delete L.30 - 35: 03/10 05:18 PM
Tab 5 SB 702 by Burgess; Similar to H 00369 Provenance of Digital Content
196458 D S RCS CM, Burgess Delete everything after 03/10 05:18 PM
Tab 6 SB 1244 by Calatayud; Identical to H 01377 Research and Development Tax Credit
Page 1 of 1
2025 Regular Session The Florida Senate
COMMITTEE MEETING EXPANDED AGENDA
COMMERCE AND TOURISM
Senator Leek, Chair
Senator Arrington, Vice Chair
MEETING DATE: Monday, March 10, 2025
TIME: 1:30—3:30 p.m.
PLACE: Toni Jennings Committee Room, 110 Senate Building
MEMBERS: Senator Leek, Chair; Senator Arrington, Vice Chair; Senators Davis, DiCeglie, Gruters, McClain,
Smith, Wright, and Yarborough
BILL DESCRIPTION and
TAB BILL NO. and INTRODUCER SENATE COMMITTEE ACTIONS COMMITTEE ACTION
1 CS/SB 282 Warranty Associations; Revising the circumstances Favorable
Banking and Insurance / Truenow under which certain service warranty associations are Yeas 8 Nays 0
(Similar CS/H 367) not required to establish unearned premium reserves
or to maintain contractual liability insurance and are
authorized to allow their premiums to exceed
specified ratios; requiring that contracts that include
coverage for accidental damage from handling be
covered by a specified policy, etc.
BI 03/03/2025 Fav/CS
CM 03/10/2025 Favorable
RC
2 SB 678 Pawnbroker Transaction Forms; Authorizing Fav/CS
Truenow pawnbroker transaction forms to be in digital or Yeas 8 Nays 0
(Similar CS/H 139) printed formats, etc.
CM 03/10/2025 Fav/CS
AEG
RC
3 SB 1132 Digital Right to Repair; Providing a directive to the Fav/CS
Truenow Division of Law Revision; creating the “Portable Yeas 7 Nays 1
(Identical H 235) Wireless Device Repair Act”; requiring portable
wireless device manufacturers to make certain items
available to device owners and independent repair
providers; prohibiting certain manufacturers from
requiring authorized repair providers to continue
purchasing certain information in a proprietary format,
etc.
CM 03/10/2025 Fav/CS
JU
RC
4 SB 676 Minimum Wage Requirements; Providing that an Fav/CS
Martin employer is not subject to certain minimum wage Yeas 5 Nays 3
(Identical H 541) requirements for specified employees; authorizing
employees to opt out of the minimum wage
requirements in a specified manner, etc.
CM 03/10/2025 Fav/CS
GO
RC
S-036 (10/2008)
03102025.1640 Page 1 of 2
COMMITTEE MEETING EXPANDED AGENDA
Commerce and Tourism
Monday, March 10, 2025, 1:30—3:30 p.m.
BILL DESCRIPTION and
TAB BILL NO. and INTRODUCER SENATE COMMITTEE ACTIONS COMMITTEE ACTION
5 SB 702 Provenance of Digital Content; Creating a digital Fav/CS
Burgess content provenance pilot program within the Division Yeas 7 Nays 1
(Similar H 369) of Emergency Management; requiring the division to
submit an annual report to the Legislature by a
specified date; requiring that provenance data be
included on specified data; requiring providers of
certain artificial intelligence tools to make application
tools and provenance readers available to the public,
etc.
CM 03/10/2025 Fav/CS
ATD
FP
6 SB 1244 Research and Development Tax Credit; Increasing Favorable
Calatayud the total amount of tax credits that may be provided to Yeas 8 Nays 0
(Identical H 1377) business enterprises under the research and
development tax credit; deleting an obsolete
provision, etc.
CM 03/10/2025 Favorable
FT
AP
Other Related Meeting Documents
S-036 (10/2008)
03102025.1640 Page 2 of 2
CourtSmart Tag Report
Room: SB 110 Case No.: Type:
Caption: Senate Commerce Committee Judge:
Started: 3/10/2025 1:31:18 PM
Ends: 3/10/2025 3:20:34 PM Length: 01:49:17
1:31:17 PM Chair Leek calls meeting to order
1:31:24 PM Roll call
1:31:27 PM Quorum announced
1:31:32 PM Chair Leek with comments - Senator Yarborough excused
1:31:54 PM Tab 5, SB 702, Provenance of Digital Content introduced by Chair Leek
1:32:06 PM Explanation of Bill by Senator Burgess
1:32:18 PM Explanation of Strike-All Amendment by Senator Burgess
1:34:59 PM Introduction of Amendment Barcode No. 196458 by Chair Leek
1:35:08 PM Questions
1:35:11 PM Senator Gruters
1:35:14 PM Senator Burgess
1:36:37 PM Senator Davis
1:36:42 PM Senator Burgess
1:38:01 PM Senator Davis
1:38:03 PM Senator Burgess
1:38:18 PM Senator Davis
1:38:20 PM Senator Burgess
1:39:59 PM Senator Davis
1:40:03 PM Senator Burgess
1:40:24 PM Senator Davis
1:40:28 PM Senator Burgess
1:41:17 PM Senator Smith
1:41:32 PM Senator Burgess
1:44:34 PM Senator Smith
1:44:37 PM Senator Burgess
1:46:14 PM Senator Smith
1:46:16 PM Senator Burgess
1:46:45 PM Senator Smith
1:46:51 PM Senator Burgess
1:47:47 PM Senator Smith
1:47:50 PM Senator Burgess
1:48:31 PM Senator Arrington
1:48:39 PM Senator Burgess
1:48:58 PM Chair Leek with comments
1:49:05 PM Appearance Forms
1:49:10 PM Jim Daughton
1:49:14 PM Megan Fay, Adobe
1:49:18 PM Chair Leek with comments
1:49:25 PM Debate
1:49:37 PM Closure waived
1:49:40 PM Amendment adopted
1:49:44 PM Chair Leek with comments
1:49:54 PM Appearance Forms
1:50:09 PM Adam Basford, Associated Industries of Florida
1:52:31 PM Katie Kelly, TechNet
1:53:47 PM Turner Loesel, James Madison Institute
1:56:17 PM Chair Leek with comments
1:56:22 PM Debate
1:56:24 PM Senator DiCeglie
1:56:46 PM Senator Smith
1:58:24 PM Senator Arrington
1:58:39 PM Chair Leek with comments
1:58:43 PM Closure by Senator Burgess
1:59:56 PM Roll call
2:00:58 PM CS/SB 702 reported favorably
2:01:28 PM Tab 1, CS/SB 282, Warranty Associations introduced by Chair Leek
2:01:38 PM Explanation of Bill by Senator Truenow
2:02:54 PM Chair Leek with comments
2:02:57 PM Appearance Form
2:03:03 PM Tim Meenan, Florida Service Agreement Association
2:03:06 PM Chair Leek with comments
2:03:13 PM Closure by Senator Truenow
2:03:23 PM Roll call
2:03:30 PM CS/SB 282 reported favorably
2:04:02 PM Tab 2, SB 678, Pawnbroker Transaction Forms introduced by Chair Leek
2:04:06 PM Explanation of Bill by Senator Truenow
2:04:21 PM Chair Leek with comments
2:04:33 PM Amendment Barcode No. 307946 introduced by Chair Leek
2:04:42 PM Explanation of Amendment by Senator Truenow
2:04:51 PM Chair Leek with comments
2:05:03 PM Appearance Form
2:05:07 PM David Sigerson, The Florida Pawnbrokers' Association
2:05:34 PM Chair Leek with comments
2:05:40 PM Closure waived
2:05:42 PM Amendment adopted
2:05:47 PM Chair Leek with comments
2:06:08 PM Appearance Form
2:06:12 PM Jose Franandez
2:06:29 PM Chair Leek with comments
2:06:40 PM Closure by Senator Truenow
2:06:44 PM Roll call
2:06:51 PM CS/SB 678 reported favorably
2:07:10 PM Tab 3, SB 1132, Digital Right to Repair introduced by Chair Leek
2:07:15 PM Explanation of Bill by Senator Truenow
2:07:58 PM Chair Leek with comments
2:09:01 PM Amendment Barcode No. 307946 introduced by Chair Leek
2:09:06 PM Explanation of Amendment by Senator Truenow
2:09:37 PM Chair Leek with comments
2:09:48 PM Question
2:09:51 PM Senator Smith
2:09:54 PM Senator Truenow
2:10:37 PM Chair Leek with comments
2:10:42 PM Appearance Form
2:10:45 PM Tim Nungesser, NFIB
2:10:49 PM Chair Leek with comments
2:10:53 PM Closure waived
2:10:55 PM Amendment adopted
2:11:02 PM Chair Leek with comments
2:11:11 PM Appearance Forms
2:11:14 PM Tim Nungesser, NFIB
2:11:19 PM Juan Londono, Taxpayers Protection Alliance
2:13:24 PM Question
2:13:27 PM Senator Smith
2:13:32 PM Mr. Londono
2:14:34 PM Katie Kelly, TechNet
2:15:43 PM Dustin Brighton, Repair Done Right Coalition
2:18:24 PM Turner Loesel, James Madison Institute
2:19:26 PM Adam Basford, Associated Industries of Florida
2:21:48 PM Chair Leek with comments
2:21:56 PM Debate
2:21:58 PM Senator Davis
2:23:01 PM Senator Smith
2:24:19 PM Chair Leek with comments
2:24:24 PM Closure by Senator Truenow
2:25:14 PM Roll call
2:26:17 PM CS/SB 1132 reported favorably
2:26:26 PM Tab 4, SB 676, Minimum Wage Requirements introduced by Chair Leek
2:26:33 PM Explanation of Bill by Senator Martin
2:27:43 PM Chair Leek with comments
2:28:03 PM Late-filed Amendment Barcode No. 146974 introduced by Chair Leek
2:28:09 PM Explanation of Amendment by Senator Martin
2:28:38 PM Chair Leek with comments
2:28:42 PM Questions
2:28:45 PM Senator Smith
2:28:47 PM Senator Martin
2:30:48 PM Chair Leek with comments
2:30:58 PM Closure waived
2:31:01 PM Amendment adopted
2:31:05 PM Chair Leek with comments
2:31:13 PM Questions
2:31:18 PM Senator Arrington
2:31:22 PM Senator Martin
2:32:41 PM Senator Arrington
2:32:44 PM Senator Martin
2:33:34 PM Senator Arrington
2:33:38 PM Senator Martin
2:34:19 PM Senator Davis
2:34:22 PM Senator Martin
2:35:55 PM Senator Davis
2:36:06 PM Senator Martin
2:38:41 PM Senator Davis
2:38:44 PM Senator Martin
2:41:04 PM Senator Davis
2:41:07 PM Senator Martin
2:41:47 PM Senator Davis
2:41:50 PM Senator Martin
2:42:52 PM Senator Davis
2:43:06 PM Senator Martin
2:46:18 PM Senator Gruters
2:46:22 PM Senator Martin
2:47:36 PM Senator Gruters
2:47:40 PM Senator Martin
2:49:07 PM Senator Smith
2:49:10 PM Senator Martin
2:51:29 PM Senator Smith
2:51:39 PM Senator Martin
2:53:29 PM Senator Smith
2:53:33 PM Senator Martin
2:54:48 PM Senator Smith
2:54:52 PM Senator Martin
2:55:32 PM Senator Smith
2:56:21 PM Senator Martin
2:58:09 PM Senator Smith
2:58:16 PM Senator Martin
3:01:19 PM Chair Leek with comments
3:01:27 PM Appearance Forms
3:01:33 PM Karen Woodall, Florida Center for Fiscal & Economic Policy
3:03:01 PM Michael Woods
3:03:09 PM Jackson Oberlink, Florida Rising
3:05:56 PM Tim Nungesser, NFIB
3:06:00 PM Barbara DeVane, FL NOW
3:06:11 PM Cheyne Seleski
3:06:15 PM Pamela Burch Fort, NAACP Florida State Conference
3:06:22 PM Asia Scott
3:06:28 PM Cecely Henderson
3:06:32 PM Lorraine Rendon
3:06:37 PM Fernando Rendon
3:07:04 PM Rich Templin, Florida AFL-CIO
3:09:34 PM Chair Leek with comments
3:09:39 PM Debate
3:09:43 PM Chair Leek
3:10:54 PM Senator Smith
3:14:00 PM Senator Gruters
3:14:56 PM Senator Arrington
3:15:32 PM Chair Leek with comments
3:15:37 PM Closure by Senator Martin
3:16:00 PM Roll call
3:17:01 PM CS/SB 676 reported favorably
3:17:28 PM Tab 6, SB 1244, Research and Development Tax Credit introduced by Chair Leek
3:17:45 PM Explanation of Bill by Senator Gruters
3:18:26 PM Chair Leek with comments
3:18:34 PM Appearance Forms
3:18:36 PM French Brown, The Florida Chamber of Commerce
3:18:37 PM Leslie Dughi, BioFlorida
3:18:41 PM Chair Leeks with comments
3:18:46 PM Closure by Senator Gruters
3:18:53 PM Roll call
3:19:15 PM SB 1244 reported favorably
3:19:50 PM Chair Leek with comments
3:19:56 PM Senator Davis shown voting in the negative on CS/SB 702
3:20:14 PM Chair Leek with comments
3:20:17 PM Senator Davis moves to adjourn
3:20:22 PM Meeting adjourned
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 282
INTRODUCER: Banking and Insurance Committee and Senator Truenow
SUBJECT: Warranty Associations
DATE: March 7, 2025 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Johnson Knudson BI Fav/CS
2. Renner McKay CM Favorable
3. RC
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 282 revises the financial requirements of service warranty associations and home
warranty associations, which are regulated by the Office of Insurance Regulation.
Current law allows a service warranty association licensed under Part III of ch. 634, F.S., but
holding no other license under ch. 634, F.S., to forego securing contractual liability insurance,
establishing unearned premium reserves, and complying with premium writing ratios if the
service warranty association, or its parent company, has a net worth of at least $100 million and
provides the Office of Insurance Regulation (OIR) specified audited financial statements and
specified filings made with the Securities and Exchange Commission or other documents which
must be filed with a recognized exchange. Under the bill, such a service warranty association
may qualify for the exemption if it provides specified audited financial statements or provides
specified filings made with the Securities and Exchange Commission or other documents which
must be filed with a recognized exchange. The effect of this change is to allow a service
warranty association that is not publicly traded to be eligible for the exemption because it can
qualify by only providing audited financial statements.
The bill clarifies that a service warranty association selecting the $100 million net worth option
is not required to purchase contractual liability insurance coverage if the association includes
“accidental damage from handling” coverage in its extended warranty contracts.
BILL: CS/SB 282 Page 2
The bill clarifies that a home warranty association or a service warranty association may use
multiple contractual liability insurance policies issued from multiple insurers, rather than a single
policy issued from a single insurer, to cover 100 percent of their claim exposure as an alternative
to establishing an unearned premium reserve.
The bill takes effect July 1, 2025.
The bill has no fiscal impact on state or local governments.
II. Present Situation:
Regulation of Warranty Associations
The Office of Insurance Regulation (OIR)1 is responsible for the regulation of all activities of
insurers and other risk-bearing entities, including the regulation of warranty associations
pursuant to ch. 634, F.S. The scope of the regulation under ch. 634, F.S.,2 includes motor vehicle
service agreement companies,3 home warranty associations,4 and service warranties.5 Motor
vehicle service agreements provide vehicle owners with protection when the manufacturer’s
warranty expires. Home warranty associations indemnify warranty holders against the cost of
repairs or replacement of any structural component or appliance in a home. Service warranty
contracts for consumer electronics and appliances allow consumers to extend the product
protection beyond the manufacturer’s warranty terms.
While a warranty is not considered a traditional insurance product, it is intended to protect
purchasers from future risks and associated costs. The OIR’s regulatory authority of warranty
associations includes approval of forms, investigation of complaints, and monitoring of reserve
requirements, among other duties. However, the OIR does not approve rates for warranty
association products.
Home Warranty Associations
A home warranty association is licensed by OIR to sell these warranties. For a home warranty
association to be licensed, it must be a solvent corporation, provide evidence to OIR of
competent and trustworthy management, and comply with the requirements of section 634.305,
F.S. relating to required deposits or bonds.6 A home warranty association must follow the
financial requirements established in section 634.3077, F.S., which include:
• Maintaining a funded, unearned premium reserve account, consisting of unencumbered
assets, equal to a minimum of 25 percent of the gross written premiums received from all
1
OIR is an office under the Financial Services Commission (commission), which is composed of the Governor, the Attorney
General, the Chief Financial Officer, and the Commissioner of Agriculture. The commission is not subject to control,
supervision, or direction by the Department of Financial Services in any manner, including purchasing, transactions involving
real or personal property, personnel, or budgetary matters. Section 20.121(3), F.S.
2
The Department of Financial Services regulates sales representative pursuant to s. 634.402, F.S.
3
Part I, ch. 634, F.S.
4
Part II, ch. 634, F.S.
5
Part III, ch. 634, F.S.
6
Section 634.304, F.S.
BILL: CS/SB 282 Page 3
warranty contracts in force in Florida. Assets must be held in the form of cash or securities
and in a separate account that can be audited.7
• Maintaining a minimum of net assets equal to one-sixth of the written premiums for any
warranty in force. Net assets may be less than one-sixth of the premiums written, provided
the association has net assets of not less than $500,000 and maintains a funded, unearned
premium reserve account with unencumbered assets of at least 40 percent of the gross written
premiums from all warranty contracts in force in Florida. Assets must be held in the form of
cash or securities and in a separate account that can be audited.8
A home warranty association is not required to set up an unearned premium reserve if it has
purchased contractual liability insurance policy covering 100 percent of its claim exposure with
specified policy provisions. A home warranty association cannot utilize both the unearned
premium reserve and contractual liability policy coverage simultaneously.9
A home warranty association is not required to establish unearned premium reserves or maintain
a contractual liability policy if the association or its parent corporation maintains at least $100
million in net worth and provides proof to OIR in the form of either:10
• Audited financial statements of the association or consolidated audited financial statements
of the parent corporation, if applicable, demonstrating such net worth, or
• Documents filed with the Securities and Exchange Commission or a recognized stock
exchange.
If the net worth of the parent corporation is used to satisfy the net worth requirements of the
warranty association, the parent corporation must guarantee all service warranty obligations of
the association. The parent corporation must provide written notice to the OIR at least 90 days
before the effective date of the cancellation, termination, or modification of the guarantees.
Otherwise, such a change is not effective. Further, the home warranty association must
demonstrate to OIR compliance with all applicable provisions of Part II of ch. 634, F.S.,
including whether the association will meet the financial requirements of s. 634.3077, F.S., by
the purchase of contractual liability insurance, establishment of reserves or other methods
allowed under this section. The home warranty association must maintain net assets of at least
$750,000.11
Service Warranty Associations
Generally, a service warranty association (association) must be licensed by OIR12 and comply
with certain financial requirements13 and other provisions14 to conduct warranty business in
Florida. An association licensed under Part III, ch. 634, F.S., must maintain a funded, unearned
premium reserve account, consisting of unencumbered assets equal to a minimum of 25 percent
of the gross written premiums received on all warranty contracts in force in Florida with
7
Section 634.3077(1), F.S.
8
Section 634.3077(2), F.S.
9
Section 634.3077(3), F.S.
10
Section 634.3077(5), F.S.
11
Id.
12
Section 634.403, F.S.
13
Section 634.406, F.S.
14
Section 634.404, F.S.
BILL: CS/SB 282 Page 4
exceptions.15 Such reserve account must be a separate account, which can be audited, for
contracts in force in Florida. An association using an unearned premium reserve must deposit
with the Department of Financial Services a reserve deposit equal to 10 percent of the gross
written premium received on all warranty contracts in force in Florida.16
Pursuant to s. 634.406(3), F.S., an association licensed under Part III, F.S., is not required to
establish an unearned premium reserve if the association secures contractual liability insurance
from an authorized insurer that demonstrates to OIR that it provides coverage for 100 percent of
claim exposure is covered by such policy.
In addition, Florida law requires a service warranty association that holds a license under Part III
of ch. 634, F.S., to maintain a writing ratio of gross written premiums to net assets of seven-to-
one, meaning for every one dollar of net assets held by the association, the association can write
seven dollars of premium.17 A service warranty association can avoid this minimum writing ratio
requirement by meeting the following criteria:
• Maintains net assets of at least $750,000; and
• Secures a contractual liability insurance policy from an authorized insurer that reimburses the
association for 100 percent of its claim liability. The insurer must maintain a minimum
policyholder surplus of at least $100 million and an “A” or higher credit rating.18 As an
alternative, a service warranty association can comply with s. 634.406(3), F.S., secure
contractual liability insurance through an authorized insurer with an “A” or higher rating, and
maintains policyholder surplus of at least $200 million, and provides quarterly and annual
reports to OIR documenting compliance with these provisions.19
An association that is licensed under Part III and does not hold a license under Parts I or II, of ch.
634, F.S., is not required to establish an unearned premium reserve or maintain contractual
liability insurance and may allow its premiums to exceed the ratio to net assets limitation if the
association, or its parent cooperation, has and maintains a minimum net worth of at least $100
million and provides OIR with the following:20
• The annual audited financial statements of the association or the annual audited consolidated
financial statements of the association’s parent corporation, if applicable, demonstrating
compliance with the net worth requirements and provides the OIR with quarterly written
certification regarding compliance with the net worth requirement; and
• The association’s or its parent corporation’s Form 10K, Form 10-Q, or Form 20-F filings
made with the Securities and Exchange Commission or such other documents that are
required to be filed with the applicable stock exchange.21
15
Section 634.406(1), F.S.
16
Section 634.406(2), F.S.
17
Section 634.406 (4) and (6), F.S.
18
Section 634.406(6), F.S. The credit rating is provided by A.M. Best Company or another national rating service acceptable
to OIR.
19
Id.
20
Section 634.406(7), F.S. If the net worth of a parent corporation is used to satisfy the net worth requirements of the
association, additional requirements must be met, as provided in s. 634.406(7)(b), F.S.
21
These reporting requirements apply to public companies, which has public reporting obligations. Companies are subject to
public reporting requirements if they sell securities in a public offering, allow their investor base to reach a certain size,
which triggers public reporting obligations, or voluntarily register with the Securities and Exchange Commission. Public
Companies | Investor.gov (last visited March 7, 2025).
BILL: CS/SB 282 Page 5
If the net worth of a parent corporation is used to satisfy the net worth provisions described
above, the following requirements must be met:22
• The parent corporation must guarantee all service warranty obligations of the association,
wherever written, on a form approved in advance by OIR. No cancellation, termination, or
modification of the guarantee is effective unless the parent corporation provides 90 days
prior written notice to the OIR. Further, the association must demonstrate to OIR compliance
with all applicable provisions of Part III, ch. 634, F.S., including whether the association will
meet the financial requirements of s. 634.406, F.S., by the purchase of contractual liability
insurance, establishment of reserves or other methods allowed under this section. If the
parent corporation or association does not demonstrate compliance with all the applicable
provisions of Part III, the association or parent corporation must cease writing new and
renewal business upon the effective date of the cancellation, termination, or modification.
• The association must maintain net assets of at least $750,000.
III. Effect of Proposed Changes:
Sections 1 amends s. 634.3077, F.S., relating to home warranty associations, to clarify that a
warranty association may secure contractual liability coverage through one or more policies from
one or more insurers to cover 100 percent of their claim exposure as an alternative to establishing
an unearned premium reserve.
Section 2 amends s. 634.406, F.S., relating to service warranty associations, to clarify that a
home warranty association may secure contractual liability coverage through one or more
policies from one or more insurers to cover 100 percent of their claim exposure as an alternative
to establishing an unearned premium reserve.
The bill revises the financial requirements for an applicant or licensee. The bill exempts a service
warranty association (association) licensed under Part III of ch. 634, F.S., and that holds no other
license under ch. 634, F.S., from securing contractual liability insurance, establishing unearned
premium reserves, and complying with premium writing ratios if the association or, if the
association is a direct or indirect wholly owned subsidiary of a parent corporation, its parent
corporation has, and maintains, a minimum net worth of at least $100 million and provides OIR
with one of the following:
• Submits to the Office of Insurance Regulation (OIR) the association’s annual audited
financial statements or the parent corporation’s annual consolidated audited financial
statements, if applicable, demonstrating compliance with the net worth requirement. The
association or the parent company must also submit a quarterly written certification of
compliance with the net worth requirement; or
• Submits to OIR the association’s or its parent corporation’s Form 10K, Form 10-Q, or Form
20-F filings made with the Securities and Exchange Commission or such other documents
that are required to be filed with the applicable stock exchange.
Section 3 amends s. 634.414, F.S., relating to service warranty associations, to clarify that all
contracts that include coverage for accidental damage from handling must be covered by the
22
Section 634.406(7)(b), F.S.
BILL: CS/SB 282 Page 6
contractual liability policy specified in s. 634.406(3), F.S., unless such coverage is issued by an
association not required to establish an unearned premium reserve or maintain contractual
liability insurance under s. 634.406(7), F.S.
Section 4 provides the bill takes effect July 1, 2025.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The bill provides an option for a non-publicly traded service warranty association to
forego securing contractual liability insurance, establishing unearned premium reserves,
and complying with premium writing ratios if the service warranty association, or its
parent corporation, has a net worth of at least $100 million and provides the Office of
Insurance Regulation specified audited financial statements, and meets other
requirements of s. 634.406(7), F.S.
C. Government Sector Impact:
None.
BILL: CS/SB 282 Page 7
VI. Technical Deficiencies:
None.
VII. Related Issues:
Sections 1 and 2 of CS/SB 282 provide that a home warranty association or a service warranty
association, respectively, may secure contractual liability coverage through an insurer or insurers
for a policy or policies. Section 1.01(1), F.S., provides that the singular (e.g., policy or insurer)
includes the plural (policies or insurers) and vice versa. To the extent that the OIR is interpreting
current references to policy and insurer in the statutes to mean only a single policy, or a single
insurer, presumably OIR has determined that context in which these terms are used does not
allow for the application of the plural.
VIII. Statutes Affected:
This bill substantially amends sections 634.3077, 634.406, and 634.414 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 Banking and Insurance on March 3, 2025:
The CS:
• Clarifies that all service warranty contracts that include coverage for accidental
damage from handling must be covered by the contractual liability policy specified in
s. 634.406(3), F.S., unless such coverage is issued by an association not required to
establish an unearned premium reserve or maintain contractual liability insurance
under s. 634.406(7), F.S., because such service warranty association, or its parent
corporation, has a net worth of at least $100 million and meets other requirements.
• Revises the title of the bill to be entitled “An act relating to warranty associations.”
• Provides technical changes.
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 - 2025 CS for SB 282 Florida Senate - 2025 CS for SB 282
By the Committee on Banking and Insurance; and Senator Truenow
597-02095-25 2025282c1 597-02095-25 2025282c1
1 A bill to be entitled 30 following provisions:
2 An act relating to warranty associations; amending s. 31 (a) In the event that the home warranty association is
3 634.3077, F.S.; making technical changes; amending s. 32 unable to fulfill its obligation under its contracts issued in
4 634.406, F.S.; revising the circumstances under which 33 this state for any reason, including insolvency, bankruptcy, or
5 certain service warranty associations are not required 34 dissolution, the contractual liability insurer or insurers will
6 to establish unearned premium reserves or to maintain 35 pay losses and unearned premiums under such plans directly to
7 contractual liability insurance and are authorized to 36 persons making claims under such contracts.
8 allow their premiums to exceed specified ratios; 37 (b) The insurer or insurers issuing the policy or policies
9 amending s. 634.414, F.S.; requiring that contracts 38 shall assume full responsibility for the administration of
10 that include coverage for accidental damage from 39 claims in the event of the inability of the association to do
11 handling be covered by a specified policy; providing 40 so.
12 an exception; providing an effective date. 41 (c) The policy or policies may not be canceled or not
13 42 renewed by the insurer or insurers or the association unless 60
14 Be It Enacted by the Legislature of the State of Florida: 43 days’ written notice thereof has been given to the office by the
15 44 insurer or insurers before the date of such cancellation or
16 Section 1. Subsection (3) of section 634.3077, Florida 45 nonrenewal.
17 Statutes, is amended to read: 46 (d) The contractual liability insurance policy or policies
18 634.3077 Financial requirements.— 47 must shall insure all home warranty contracts that were issued
19 (3) An association may not be required to set up an 48 while the policy or policies were was in effect regardless of
20 unearned premium reserve if it has purchased contractual 49 whether or not the premium has been remitted to the insurer or
21 liability insurance which demonstrates to the satisfaction of 50 insurers.
22 the office that 100 percent of its claim exposure is covered by 51 Section 2. Subsections (3) and (4), paragraphs (b) and (c)
23 such insurance. Such contractual liability insurance must shall 52 of subsection (6), and paragraph (a) of subsection (7) of
24 be obtained from an insurer or insurers that hold a certificate 53 section 634.406, Florida Statutes, are amended to read:
25 of authority to do business within this the state or from an 54 634.406 Financial requirements.—
26 insurer or insurers approved by the office as financially 55 (3) An association will not be required to establish an
27 capable of meeting the obligations incurred pursuant to the 56 unearned premium reserve if it has purchased contractual
28 policy or policies. For purposes of this subsection, the 57 liability insurance which demonstrates to the satisfaction of
29 contractual liability policy or policies must shall contain the 58 the office that 100 percent of its claim exposure is covered by
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597-02095-25 2025282c1 597-02095-25 2025282c1
59 such policy or policies. The contractual liability insurance 88 service warranty holder cancels the service warranty, it is the
60 must shall be obtained from an insurer or insurers that hold 89 responsibility of the contractual liability policy issuer or
61 holds a certificate of authority to do business within the 90 issuers to effectuate a full refund of unearned premium to the
62 state. For the purposes of this subsection, the contractual 91 consumer. This refund is shall be subject to the cancellation
63 liability policy or policies must shall contain the following 92 fee provisions of s. 634.414. The salesperson or agent shall
64 provisions: 93 refund to the contractual liability policy issuer or issuers the
65 (a) In the event that the service warranty association does 94 unearned pro rata commission.
66 not fulfill its obligation under contracts issued in this state 95 (f) An association may not use utilize both the unearned
67 for any reason, including insolvency, bankruptcy, or 96 premium reserve and contractual liability insurance
68 dissolution, the contractual liability insurer or insurers will 97 simultaneously. However, an association is shall be allowed to
69 pay losses and unearned premium refunds under such plans 98 have contractual liability coverage on service warranties
70 directly to the person making a claim under the contract. 99 previously sold and sell new service warranties covered by the
71 (b) The insurer or insurers issuing the contractual 100 unearned premium reserve, and the converse of this is shall also
72 liability policy or policies shall assume full responsibility 101 be allowed. An association must be able to distinguish how each
73 for the administration of claims in the event of the inability 102 individual service warranty is covered.
74 of the association to do so. 103 (4) No warrantor may allow its gross written premiums in
75 (c) The policy or policies may not be canceled or not 104 force to exceed a 7-to-1 ratio to net assets; however, a company
76 renewed by either the insurer or insurers or the association 105 may exceed this requirement if:
77 unless 60 days’ written notice thereof has been given to the 106 (a) The company:
78 office by the insurer or insurers before the date of such 107 1.(a) Holds licenses issued pursuant to the provisions of
79 cancellation or nonrenewal. 108 part I and this part;, and
80 (d) The contractual liability insurance policy or policies 109 2.(b) Maintains net assets of at least $2.5 million;, and
81 must shall insure all service warranty contracts which were 110 3.(c) Uses Utilizes contractual liability insurance which
82 issued while the policy or policies were was in effect 111 reimburses the service warranty association for 100 percent of
83 regardless of whether or not the premium has been remitted to 112 its paid claims;, and
84 the insurer or insurers. 113 (b)(d) The insurer or insurers issuing the contractual
85 (e) In the event the issuer or issuers of the contractual 114 liability insurance policy or policies maintain maintains a
86 liability policy or policies are is fulfilling the service 115 policyholder surplus of at least $100 million and are is rated
87 warranty covered by policy or policies and in the event the 116 “A” or higher by A.M. Best Company.
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117 (6) An association that holds a license under this part may 146 contractual liability insurance and may allow its premiums to
118 allow its premiums for service warranties written under this 147 exceed the ratio to net assets limitation of this section if the
119 part to exceed the ratio to net assets limitations of this 148 association complies with the following:
120 section if the association meets all of the following: 149 (a) The association or, if the association is a direct or
121 (b) Uses a contractual liability insurance policy or 150 indirect wholly owned subsidiary of a parent corporation, its
122 policies approved by the office that: 151 parent corporation has, and maintains at all times, a minimum
123 1. Reimburse Reimburses the service warranty association 152 net worth of at least $100 million and provides the office with
124 for 100 percent of their its claims liability and are is issued 153 one of the following:
125 by an insurer or insurers that maintain maintains a policyholder 154 1. A copy of the association’s annual audited financial
126 surplus of at least $100 million; or 155 statements or the audited consolidated financial statements of
127 2. Comply Complies with subsection (3) and are is issued by 156 the association’s parent corporation, prepared by an independent
128 an insurer or insurers that maintain maintains a policyholder 157 certified public accountant in accordance with generally
129 surplus of at least $200 million. 158 accepted accounting principles, which clearly demonstrate the
130 (c) The insurer or insurers issuing the contractual 159 net worth of the association or its parent corporation to be
131 liability insurance policy or policies: 160 $100 million and a quarterly written certification to the office
132 1. Are Is rated “A” or higher by A.M. Best Company or an 161 that such entity continues to maintain the net worth required
133 equivalent rating by another national rating service acceptable 162 under this paragraph.
134 to the office. 163 2. The association’s, or its parent corporation’s, Form 10-
135 2. In conjunction with the warranty association’s filing of 164 K, Form 10-Q, or Form 20-F as filed with the United States
136 the quarterly and annual reports, provide provides, on a form 165 Securities and Exchange Commission or such other documents
137 prescribed by the commission, a statement certifying the gross 166 required to be filed with a recognized stock exchange, which
138 written premiums in force reported by the warranty association 167 shall be provided on a quarterly and annual basis within 10 days
139 and a statement that all of the warranty association’s gross 168 after the last date each such report must be filed with the
140 written premium in force is covered under the contractual 169 Securities and Exchange Commission, the National Association of
141 liability policy or policies, regardless of whether it has been 170 Security Dealers Automated Quotation system, or other recognized
142 reported. 171 stock exchange.
143 (7) An association licensed under this part and holding no 172
144 other license under part I or part II of this chapter is not 173 Failure to timely file the documents required under this
145 required to establish an unearned premium reserve or maintain 174 paragraph may, at the discretion of the office, subject the
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Florida Senate - 2025 CS for SB 282
597-02095-25 2025282c1
175 association to suspension or revocation of its license under
176 this part.
177 Section 3. Subsection (5) is added to section 634.414,
178 Florida Statutes, to read:
179 634.414 Forms; required provisions.—
180 (5) All contracts that include coverage for accidental
181 damage from handling must be covered by the contractual
182 liability policy specified in s. 634.406(3), unless such
183 coverage is issued by an association not required to establish
184 an unearned premium reserve or maintain contractual liability
185 insurance under s. 634.406(7).
186 Section 4. This act shall take effect July 1, 2025.
Page 7 of 7
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The Florida Senate
/)
\c
Meeting Date
APPEARANCE RECORD (
Bill Number orTopic
Deliver both copies of this form to
f Senate professional staff conducting the meeting
Committee Amendment Barcode (if applicable)
Name Phone
Address Email
City Zip
Speaking
ffior f] Against I tnformation OR waive speaking: ! tn support ! Against
PLEASE CHECK ONE OFTHE FOLLOWING:
lam appearing without
compensation or sponsorship. tr I am a registered
representing:
lobbyist, I am not a lobbyist, but received
something of value for my appearance
(travel, meals, lodging, etc.),
sponsored by:
6\r\-J^ fsvvr fc foo(k{^n
This form is part of the public record for this meeting. S-OO1 (OB/10/2O21)
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: CS/SB 678
INTRODUCER: Commerce and Tourism Committee and Senator Truenow
SUBJECT: Pawnbroker Transaction Forms
DATE: March 10, 2025 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Fav/CS
2. AEG
3. RC
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 678 authorizes pawnbroker transaction forms, which are approved by the Department of
Agriculture and Consumer Services (DACS) and are used to record pawns and purchases by
pawnbrokers, to be in digital or print format instead of only print format. Digital forms must be
in a font size of at least 12 points. Pawnbrokers may use either format.
The bill is not anticipated to have a fiscal impact on state or local government revenues or
expenditures.
The bill takes effect July 1, 2025.
II. Present Situation:
Pawnbrokers1 must apply for and obtain a license from the DACS annually.2 To be eligible for
the license, each pawnshop must maintain a net worth of at least $50,000 or file security in the
1
A “pawnbroker” is a person who is engaged in the business of making pawns; who makes a public display containing the
term “pawn,” “pawnbroker,” or “pawnshop” or any derivative thereof; or who publicly displays a sign or symbol historically
identified with pawns. Pawnbrokers may also engage in purchasing goods which includes consignment and trade. Section
539.001(1)(i), F.S. A “pawn” is any advancement of funds on the security of pledged goods on condition that the pledged
goods are left in the possession of the pawnbroker for the duration of the pawn and may be redeemed by the pledgor on
certain terms and conditions. Section 539.001(1)(h), F.S.
2
Section 539.001(3), F.S.
BILL: CS/SB 678 Page 2
form of a surety bond, letter of credit, or certificate of deposit in the amount of $10,000 for each
license.3 DACS is authorized to impose penalties of up to $5,000 for noncompliance with the
law.4
Pawnbroker Transaction Forms
When a pawnbroker enters into any pawn or purchase transaction, the pawnbroker must
complete a pawnbroker transaction form, indicating whether the transaction is a pawn or a
purchase. The pledgor5 or seller must sign the completed form. The DACS must approve the
design and format of the pawnbroker transaction form, which must be 8.5 inches x 11 inches in
size.6 The pawnbroker must record the following identifying information on the front of the
form, which must be typed or written indelibly and legibly in English:7
• The name and address of the pawnshop.
• A complete and accurate description of the pledged goods or purchased goods including
certain identifying information.
• The name, address, home, telephone number, place of employment, date of birth, physical
description, and right thumbprint of the pledgor or seller.
• The date and time of the transaction.
• The type of identification accepted from the pledgor or seller, including the issuing agency
and the identification number.
• In the case of a pawn:
o The amount of money advanced, which must be designated as the amount financed.
o The maturity date of the pawn, which must be 30 days after the date of the pawn.
o The default date of the pawn and the amount due on the default date.
o The total pawn service charge payable on the maturity date, which must be designated as
the finance charge.
o The amount financed plus the finance charge that must be paid to redeem the pledged
goods on the maturity date, which must be designated as the total of payments.
o The annual percentage rate.
o The front or back of the pawnbroker transaction form must include certain information
specific to pawns.
• In the case of a purchase, the amount of money paid for the goods or the monetary value
assigned to the goods in connection with the transaction.
• A statement that the pledgor or seller of the item represents and warrants that it is not stolen,
that it has no liens or encumbrances against it, and that the pledgor or seller is the rightful
owner of the goods and has the right to enter into the transaction.
The front or back of the transaction form must include the following statements:
• Any personal property pledged to a pawnbroker in Florida that is not redeemed within 39
days following the maturity date of the pawn is automatically forfeited to the pawnbroker,
3
Section 539.001(4), F.S.
4
Fla. Admin. Code R. 5J-13.004 (2016).
5
A “pledgor” is the person pledging the goods into the possession of a pawnbroker in connection with a pawn. Section
539.001(2)(p), F.S.
6
Section 539.001(8)(a), F.S.
7
Section 539.001(8)(b), F.S.
BILL: CS/SB 678 Page 3
and absolute right, title, and interest in and to the property vests in and is deemed conveyed
to the pawnbroker by operation of law, and no further notice is necessary.
• The pledgor is not obligated to redeem the pledged goods.
• If the pawnbroker transaction form is lost, destroyed, or stolen, the pledgor must immediately
advertise the issuing pawnbroker in writing by certified or registered mail, return receipt
requested, or in person evidenced by a signed receipt.
• A pawn can be extended upon mutual agreement of the parties.
• A statement that the pledgor or seller of the item represents and warrants that it is not stolen,
that it has no liens or encumbrances against it, and that the pledgor or seller is the rightful
owner of the goods and has the right to enter into the transaction. Any person who knowingly
gives false verification of ownership or gives a false or altered identification and who
receives money from a pawnbroker for goods sold or pledged commits:
o A third degree felony8 if the value of money is less than $300; or
o A second degree9 felony if the value of the money received is $300 or more.
Pawnbroker Transaction Form Recordkeeping
A pawnbroker must provide a pledgor or seller with a copy of a pawnbroker transaction form at
the time of the pawn or sale. Pawnbroker transaction forms must be kept on the pawnshop's
premises for at least one year after the transaction's date.10
Before the end of each business day, a pawnbroker must deliver the original pawnbroker
transaction forms to the appropriate official11 for the local law enforcement agency for all of the
transactions during the previous business day unless other arrangements have been agreed upon
by the pawnbroker and the appropriate law enforcement agency.12
In lieu of physically delivering the original pawnbroker transaction forms, a local law
enforcement agency may supply software to a pawnbroker so the pawnbroker may electronically
transfer the transaction forms to the law enforcement agency. If a pawnbroker does not have a
computer to use such software, the law enforcement agency may provide a computer to the
pawnbroker. The law enforcement agency retains ownership of the computer unless otherwise
agreed upon. The pawnbroker must maintain the computer in good working order, ordinary wear
and tear excepted.13
8
A third degree felony is punishable by up to 5 years and a $5,000 fine. Sections 775.082, 775.083, or 775.084, F.S.
9
A second degree felony is punishable by up to 15 years imprisonment and a $10,000 fine. Sections 775.082, 775.083, and
775.084, F.S.
10
Section 539.001(9), F.S.
11
The appropriate law enforcement official is the sheriff of the county in which a pawnshop is located or, in case of a
pawnshop located within a municipality, the police chief of the municipality in which the pawnshop is located. Any sheriff or
police chief may designate any law enforcement officer working within the county or municipality as the appropriate law
enforcement official. Section 539.001(1)(b), F.S.
12
Id.
13
Id.
BILL: CS/SB 678 Page 4
III. Effect of Proposed Changes:
The bill amends s. 539.001, F.S., to authorize pawnbroker transaction forms in digital or print
format instead of only print format. Digital forms must have a font size of at least 12 points.
Pawnbrokers may use either format.
The bill takes effect July 1, 2025.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The bill may have a positive fiscal impact on pawnbrokers by allowing them to use
digital pawnbroker transaction forms.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
BILL: CS/SB 678 Page 5
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 539.001 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on March 10, 2025:
The committee substitute:
• Clarifies that a digital pawnbroker transaction form must be in a font size of at least
12 points and that a pawnbroker is authorized to use either a print or digital format;
and
• Clarifies that the transaction forms may be in a print or digital format for pawnbroker
recordkeeping and reporting requirements.
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 - 2025 COMMITTEE AMENDMENT Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 678 Bill No. SB 678
Ì307946IÎ307946 Ì307946IÎ307946
LEGISLATIVE ACTION 11 purchase transaction, the pawnbroker shall complete a pawnbroker
Senate . House 12 transaction form for such transaction, including an indication
Comm: RCS . 13 of whether the transaction is a pawn or a purchase, and the
03/10/2025 . 14 pledgor or seller shall sign such completed form. The agency
. 15 must approve the design and format of the pawnbroker transaction
. 16 form, which must be 8 1/2 inches x 11 inches in size for printed
. 17 forms and be in a font size of at least 12 points for digital
18 forms and elicit the information required under this section in
19 a digital or printed format. The pawnbroker may use either
20 format. In completing the pawnbroker transaction form, the
21 pawnbroker shall record the following information, which must be
22 typed or written indelibly and legibly in English.
23 (b) The front of a printed the pawnbroker transaction form
24 and the first page of a digital form must include:
25 1. The name and address of the pawnshop.
The Committee on Commerce and Tourism (Truenow) recommended the 26 2. A complete and accurate description of the pledged goods
following: 27 or purchased goods, including the following information, if
28 applicable:
1 Senate Amendment (with title amendment) 29 a. Brand name.
2 30 b. Model number.
3 Delete everything after the enacting clause 31 c. Manufacturer’s serial number.
4 and insert: 32 d. Size.
5 Section 1. Subsection (8) and paragraphs (a) and (b) of 33 e. Color, as apparent to the untrained eye.
6 subsection (9) of section 539.001, Florida Statutes, are amended 34 f. Precious metal type, weight, and content, if known.
7 to read: 35 g. Gemstone description, including the number of stones.
8 539.001 The Florida Pawnbroking Act.— 36 h. In the case of firearms, the type of action, caliber or
9 (8) PAWNBROKER TRANSACTION FORM.— 37 gauge, number of barrels, barrel length, and finish.
10 (a) At the time the pawnbroker enters into any pawn or 38 i. Any other unique identifying marks, numbers, names, or
39 letters.
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Florida Senate - 2025 COMMITTEE AMENDMENT Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 678 Bill No. SB 678
Ì307946IÎ307946 Ì307946IÎ307946
40 69 federal Truth in Lending Act; and
41 Notwithstanding sub-subparagraphs a.-i., in the case of multiple 70 g. The front or back of a printed the pawnbroker
42 items of a similar nature delivered together in one transaction 71 transaction form and the first or second page of a digital
43 which do not bear serial or model numbers and which do not 72 pawnbroker transaction form must include a statement that:
44 include precious metal or gemstones, such as musical or video 73 (I) Any personal property pledged to a pawnbroker within
45 recordings, books, and hand tools, the description of the items 74 this state which is not redeemed within 30 days following the
46 is adequate if it contains the quantity of items and a 75 maturity date of the pawn, if the 30th day is not a business
47 description of the type of items delivered. 76 day, then the following business day, is automatically forfeited
48 3. The name, address, home telephone number, place of 77 to the pawnbroker, and absolute right, title, and interest in
49 employment, date of birth, physical description, and right 78 and to the property vests in and is deemed conveyed to the
50 thumbprint of the pledgor or seller. 79 pawnbroker by operation of law, and no further notice is
51 4. The date and time of the transaction. 80 necessary;
52 5. The type of identification accepted from the pledgor or 81 (II) The pledgor is not obligated to redeem the pledged
53 seller, including the issuing agency and the identification 82 goods; and
54 number. 83 (III) If the pawnbroker transaction form is lost,
55 6. In the case of a pawn: 84 destroyed, or stolen, the pledgor must immediately advise the
56 a. The amount of money advanced, which must be designated 85 issuing pawnbroker in writing by certified or registered mail,
57 as the amount financed; 86 return receipt requested, or in person evidenced by a signed
58 b. The maturity date of the pawn, which must be 30 days 87 receipt.
59 after the date of the pawn; 88 (IV) A pawn may be extended upon mutual agreement of the
60 c. The default date of the pawn and the amount due on the 89 parties.
61 default date; 90 7. In the case of a purchase, the amount of money paid for
62 d. The total pawn service charge payable on the maturity 91 the goods or the monetary value assigned to the goods in
63 date, which must be designated as the finance charge; 92 connection with the transaction.
64 e. The amount financed plus the finance charge that must be 93 8. A statement that the pledgor or seller of the item
65 paid to redeem the pledged goods on the maturity date, which 94 represents and warrants that it is not stolen, that it has no
66 must be designated as the total of payments; 95 liens or encumbrances against it, and that the pledgor or seller
67 f. The annual percentage rate, computed according to the 96 is the rightful owner of the goods and has the right to enter
68 regulations adopted by the Federal Reserve Board under the 97 into the transaction. Any person who knowingly gives false
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Florida Senate - 2025 COMMITTEE AMENDMENT Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 678 Bill No. SB 678
Ì307946IÎ307946 Ì307946IÎ307946
98 verification of ownership or gives a false or altered 127 seller identification is accepted for a transaction, the
99 identification and who receives money from a pawnbroker for 128 pawnbroker must maintain the electronic image in order to meet
100 goods sold or pledged commits: 129 the same recordkeeping requirements as for the original printed
101 a. If the value of the money received is less than $300, a 130 transaction form. If a criminal investigation occurs, the
102 felony of the third degree, punishable as provided in s. 131 pawnbroker shall, upon request, provide a clear and legible copy
103 775.082, s. 775.083, or s. 775.084. 132 of the image to the appropriate law enforcement official.
104 b. If the value of the money received is $300 or more, a 133 (b) If the appropriate law enforcement agency supplies the
105 felony of the second degree, punishable as provided in s. 134 appropriate software and the pawnbroker presently has the
106 775.082, s. 775.083, or s. 775.084. 135 computer ability, pawn transactions shall be electronically
107 (c) A pawnbroker transaction form must provide a space for 136 transferred. If a pawnbroker does not presently have the
108 the imprint of the right thumbprint of the pledgor or seller and 137 computer ability, the appropriate law enforcement agency may
109 a blank line for the signature of the pledgor or seller. 138 provide the pawnbroker with a computer and all necessary
110 (d) At the time of the pawn or purchase transaction, the 139 equipment for the purpose of electronically transferring pawn
111 pawnbroker shall deliver to the pledgor or seller an exact copy 140 transactions. The appropriate law enforcement agency shall
112 of the completed pawnbroker transaction form. 141 retain ownership of the computer, unless otherwise agreed upon.
113 (9) RECORDKEEPING; REPORTING; HOLD PERIOD.— 142 The pawnbroker shall maintain the computer in good working
114 (a) A pawnbroker must maintain a copy of each completed 143 order, ordinary wear and tear excepted. In the event the
115 pawnbroker transaction form on the pawnshop premises for at 144 pawnbroker transfers pawn transactions electronically, the
116 least 1 year after the date of the transaction. On or before the 145 pawnbroker is not required to also deliver to the appropriate
117 end of each business day, the pawnbroker must deliver to the 146 law enforcement official the original or copies of the
118 appropriate law enforcement official the original printed 147 pawnbroker transaction forms. The appropriate law enforcement
119 pawnbroker transaction forms or printed copies of the digital 148 official may, for the purposes of a criminal investigation,
120 pawnbroker transaction forms for each of the transactions 149 request that the pawnbroker produce an original of a printed
121 occurring during the previous business day, unless other 150 transaction form that has been electronically transferred. The
122 arrangements have been agreed upon between the pawnbroker and 151 pawnbroker shall deliver this form to the appropriate law
123 the appropriate law enforcement official. If an the original 152 enforcement official within 24 hours of the request.
124 printed transaction form is lost or destroyed by the appropriate 153 Section 2. This act shall take effect July 1, 2025.
125 law enforcement official, a copy may be used by the pawnbroker 154
126 as evidence in court. When an electronic image of a pledgor or 155 ================= T I T L E A M E N D M E N T ================
Page 5 of 7 Page 6 of 7
3/7/2025 9:50:09 AM 577-02162-25 3/7/2025 9:50:09 AM 577-02162-25
Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 678
Ì307946IÎ307946
156 And the title is amended as follows:
157 Delete everything before the enacting clause
158 and insert:
159 A bill to be entitled
160 An act relating to pawnbroker transaction forms;
161 amending s. 539.001, F.S.; authorizing pawnbroker
162 transaction forms to be in digital or printed formats;
163 authorizing a pawnbroker to use either format;
164 revising recordkeeping requirements; providing an
165 effective date.
Page 7 of 7
3/7/2025 9:50:09 AM 577-02162-25
Florida Senate - 2025 SB 678
By Senator Truenow
13-01658-25 2025678__
1 A bill to be entitled
2 An act relating to pawnbroker transaction forms;
3 amending s. 539.001, F.S.; authorizing pawnbroker
4 transaction forms to be in digital or printed formats;
5 providing an effective date.
6
7 Be It Enacted by the Legislature of the State of Florida:
8
9 Section 1. Paragraph (a) of subsection (8) of section
10 539.001, Florida Statutes, is amended to read:
11 539.001 The Florida Pawnbroking Act.—
12 (8) PAWNBROKER TRANSACTION FORM.—
13 (a) At the time the pawnbroker enters into any pawn or
14 purchase transaction, the pawnbroker shall complete a pawnbroker
15 transaction form for such transaction, including an indication
16 of whether the transaction is a pawn or a purchase, and the
17 pledgor or seller shall sign such completed form. The agency
18 must approve the design and format of the pawnbroker transaction
19 form, which must be 8 1/2 inches x 11 inches in size and elicit
20 the information required under this section in a digital or
21 printed format. In completing the pawnbroker transaction form,
22 the pawnbroker shall record the following information, which
23 must be typed or written indelibly and legibly in English.
24 Section 2. This act shall take effect July 1, 2025.
Page 1 of 1
CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
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The Florida Senate
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The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1132
INTRODUCER: Senator Truenow
SUBJECT: Digital Right to Repair
DATE: March 10, 2025 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Dike McKay CM Fav/CS
2. JU
3. RC
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
SB 1132 creates the Portable Wireless Device Repair Act, which requires manufacturers of
portable wireless devices purchased or used in this state to make documentation, parts, and tools
available to owners and independent repair providers. The bill also provides civil remedies for a
violation of this Act, and remedies and penalties under the Florida Deceptive and Unfair Trade
Practices Act.
Additionally, the bill creates the Agricultural Equipment Fair Repair Act, requiring original
equipment manufacturers of agricultural equipment to provide certain manufacturing, diagnostic,
and repair information to independent repair providers and owners. Original equipment
manufacturers are prohibited from excluding certain information concerning security-related
functions. The bill does not apply to motor vehicle manufacturers or motor vehicle dealers.
Additionally, a civil penalty may be collected from any original equipment manufacturer who is
found to be in violation.
The bill takes effect on July 1, 2025.
BILL: SB 1132 Page 2
II. Present Situation:
Right to Repair Laws
In recent years, state legislatures across the country have been contemplating “right to repair”
laws, requiring manufacturers to share repair information and tools so that consumers may repair
their products more easily and less costly.1 This type of legislation is founded on the idea that
consumers should be able to choose how to repair their products.2 Advocates are concerned due
to the amount of products that are utilizing computer chips and advanced technology, which are
becoming increasingly difficult to repair without sending the entire product back to the
manufacturer.3 Many products, ranging from cars and appliances to wheelchairs, use proprietary
tools and parts.4 Manufacturers may decline to publish documents necessary for a third party or
consumer to repair.5 The policy objectives of these laws are to ensure customers have access to
manuals, schematics, and software updates, as well as diagnostic tools needed to service the
product themselves.6 Moreover, proponents of digital right to repair legislation are concerned
about reducing repair costs for consumers, minimizing electronic waste in landfills, and
increasing the longevity of products.7
While there is a push for this type of legislation, manufacturers are concerned about electronic
privacy and preservation of intellectual property.8 Technological advances in electronic
equipment, such as fitness monitors, home security devices, and smart home appliances, have led
to consumer data being collected at a higher volume.9 Opponents of right to repair legislation are
worried that proprietary access to tools and information needed to repair these electronic
products may undermine consumers’ digital privacy, as diagnostic tools may provide access to
an entire device and improper repair can disable security features.10 Additionally, there is a
concern that unrestricted access into product software design may compromise intellectual
property protections.11 If proprietary knowledge is embedded in the products they sell, some
manufacturers worry that trade secrets will become public knowledge when required to disclose
digital locks and other information.12
1
Luyi Wang, et al., HARV. BUS. REV., Research: The Unintended Consequences of Right-to-Repair Laws, available at
https://hbr.org/2023/01/research-the-unintended-consequences-of-right-to-repair-laws (last visited Mar. 10, 2025).
2
Mike Serra, Looking Under the Hood on the Right to Repair, 101 MICH. B.J. 34 (May 2022), available at
https://www.michbar.org/journal/Details/Looking-under-the-hood-on-the-right-to-repair?ArticleID=4428 (last visited Mar.
10, 2025).
3
Thorin Klosowski, What You Should Know About Right to Repair, available at
https://www.nytimes.com/wirecutter/blog/what-is-right-to-repair/ (last visited Mar. 10, 2025).
4
Id.
5
Id.
6
Id.
7
Brian T. Yeh, CONG. RSCH. SERV., Repair, Modification, or Resale of Software-Enabled Consumer Electronic Devices:
Copyright Law Issues, https://crsreports.congress.gov/product/pdf/R/R44590/3 (last visited Mar. 10, 2025).
8
Ike Brannon, CATO INST., A Criticism of Right to Repair Laws, available at https://www.cato.org/regulation/spring-
2024/criticism-right-repair-laws (last visited Mar. 10, 2025).
9
See id.
10
Id.
11
Id.
12
Id.
BILL: SB 1132 Page 3
Smartphone Repair and Prevalence
Cell phone repair is intentionally limited by manufacturers who do not wish to share proprietary
information on their electronic products.13 As such, consumers with broken devices are limited to
disposing the phone and purchasing a new one; mailing the phone back to the manufacturer to be
repaired; attempting to repair the phone themselves; or seeking out an independent repair
provider.14 If the consumer mails their cell phone to a manufacturer, it could take weeks to
receive the fixed product back.15 If the consumer would rather spend their money locally, they
also face barriers—many small repair shops cannot fix older digital devices due to manufacturer
restrictions.16
Currently, over 98% of Americans own a cellphone, and nine out of ten of all cell phone owners
have a smartphone.17 Smartphones are not only prevalent but necessary for many people, as 15%
of U.S. adults only access the internet from their smartphone because they do not subscribe to a
home broadband service.18 The majority of those smartphone-dependent users are young adults
and the elderly.19 Moreover, smartphone dependency most greatly affects people who make less
than $30,000 per year.20
Agricultural Equipment Repair
Farmers face similar barriers when attempting to repair agricultural equipment.21 As it stands,
only a handful of authorized dealerships have access to the necessary diagnostic tools to fix
farming equipment.22 Without the necessary software to diagnose problems, farmers must ship
their equipment to the closest authorized dealership for repair.23 With lengthy transport times and
wait times for repairs, “farmers can lose tens or even hundreds of thousands of dollars in
potential yields.”24
Currently, at least sixteen states legislatures have introduced agricultural right to repair bills,
alongside attempts to pass a national right to repair law.25 In response to the surge of legislation
13
See Elaine S. Povich, Pandemic Drives Phone, Computer ‘Right-to-Repair’ Bills, available at
https://stateline.org/2021/03/11/pandemic-drives-phone-computer-right-to-repair-bills/ (last visited Mar. 10, 2025).
14
Yeh, supra note 7.
15
Povich, supra note 13.
16
Povich, supra note 13.
17
PEW RSCH. CTR., Mobile Fact Sheet, available at https://www.pewresearch.org/internet/fact-sheet/mobile/ (last visited Mar.
10, 2025).
18
Id.
19
Id.
20
Id.; see also FED. TRADE COMM’N, Nixing the Fix: An FTC Report to Congress on Repair Restrictions, available at
https://www.ftc.gov/system/files/documents/reports/nixing-fix-ftc-report-congress-repair-
restrictions/nixing_the_fix_report_final_5521_630pm-508_002.pdf?ref=cecna-io (last visited Mar. 10, 2025) (“This
smartphone dependency makes repair restrictions on smartphones more likely to affect these communities adversely.”).
21
Jesse Bedayn, AP NEWS, 11 States Consider ‘Right to Repair’ for Farming Equipment, available at
https://apnews.com/article/farm-equipment-repairs-d5ea466725328d965a85a62130503d49 (last visited Mar. 10, 2025).
22
Farm Action, Right to Repair Campaign, available at https://farmaction.us/righttorepair/ (last visited Mar. 10, 2025).
23
Id.
24
Id.
25
Kevin O’Reilly, PIRG, 16 states consider tractor Right to Repair bills in 2023, available at https://pirg.org/articles/tractor-
right-repair-states-2023/ (last visited Mar. 10, 2025); see, e.g., H.R. 5604, 118th Cong. (2023).
BILL: SB 1132 Page 4
attempting to resolve this issue,26 the American Farm Bureau Federation (AFBF) has signed two
memorandums of understanding (MOU) with equipment manufacturers. In January 2023, AFBF
and John Deere signed a MOU to ensure farmers’ rights to repair their own farm equipment.27
The agreement ensures farmers have access to manuals, seminars, on-board diagnostics,
software, and other publications with information on service, parts, operation, and safety under
on fair and reasonable terms.28 In March 2023, the AFBF signed a MOU with Case IH and New
Holland to provide similar access to tools and manuals so that farmers can repair their own
equipment.29
Despite the MOUs, farmers’ grievances have not been assuaged. In February 2025, the Federal
Trade Commission (FTC) filed a lawsuit against John Deere over unfair manufacturer policies
that create a monopoly in the repair market and inflate farmers’ repair costs.30 The complaint
alleges that John Deere is able to raise prices, reduce output, and degrade quality in the market
for large tractors and combines in the U.S.31 Even with the MOU, farmers and independent repair
providers must pay John Deere $3,160 for a one-year subscription to the necessary software to
diagnose and fix their tractors and combines.32 The complaint alleges access to repair is still
impaired, as this software has a degraded functionality compared to the separate software
available to authorized dealerships.33 The FTC’s complaint illustrates the problems that have yet
to be overcome regarding tractor and combine repair.
III. Effect of Proposed Changes:
Digital Right to Repair
Requirements
Section 7 creates s. 559.976, F.S., providing that this part applies to portable wireless devices34
sold or in use on or after July 1, 2025, except for such devices approved by the U.S. Food and
Drug Administration.
26
Bedayn, supra note 21; see also Jennifer Bamberg, John Deere faces lawsuit as lawmakers introduce right-to-repair bills,
available at https://investigatemidwest.org/2025/03/05/john-deere-faces-lawsuit-as-lawmakers-introduce-right-to-repair-bills/
(last visited Mar. 10, 2025).
27
Memorandum of Understanding between the American Farm Bureau Federation and John Deere (Jan. 8, 2023), available at
https://www.fb.org/files/AFBF_John_Deere_MOU.pdf (last visited Mar. 10, 2025).
28
Id.
29
Memorandum of Understanding between the American Farm Bureau Federation and CNH Industrial America LLC (Mar.
9, 2023), available at https://www.fb.org/files/MOU-R2R-CNH-3.9.23-Fully-Executed.pdf (last visited Mar. 10, 2025).
30
Complaint of Plaintiff, Fed. Trade Comm’n v. Deere, Case No. 3:25-cv-50017 (N.D. Ill. filed Feb. 7, 2025), available at
https://www.doj.state.wi.us/sites/default/files/news-media/0044%202025.02.07%20Amended%20Compl.%20-
%20John%20Deere.pdf (last visited Mar. 10, 2025).
31
Id. at 1-4.
32
Id. at 12.
33
Id. at 14-16.
34
“Portable wireless device” means a product that includes a battery, microphone, speaker, and display designed to send and
receive transmissions though a cellular radio-telephone service.
BILL: SB 1132 Page 5
Section 4 creates s. 559.973, F.S., mandating that a manufacturer35 must make documentation,36
parts,37 and tools38 available to owners39 and independent repair providers40 on fair and
reasonable terms.41 Manufacturers are not required to provide parts that are no longer available.
Additionally, a manufacturer that sells diagnostic, service, or repair information to third parties
in a standard format may not require an authorized repair provider42 to continue purchasing
diagnostic, service, or repair information in a proprietary format, unless otherwise specified.
Enforcement
Section 5 creates s. 559.974, F.S., requiring that an independent repair provider or owner who
believes that the manufacturer failed to provide documentation, parts, or tools for diagnosis,
maintenance, or repair, must notify the manufacturer in writing of this failure. The manufacturer
has 30 days following receipt of notice to correct the failure. If the manufacturer responds to the
notice and corrects the failure within 30 days of notice, damages in any subsequent litigation are
limited to actual damages.
If the manufacturer does not respond to the notice or corrects the failure unsatisfactorily, the
owner or independent repair provider may file a complaint in a specified circuit court. The
complaint must include:
35
“Manufacturer” means an individual or a business that sells, leases, or otherwise supplies new portable wireless devices, or
parts of new portable wireless devices, manufactured by or on behalf of the individual or business to another individual or
business.
36
“Documentation” means a manual, a diagram, a reporting output, a service code description, a schematic, a security code
or a password, or any other information used in the diagnosis, maintenance, or repair of portable wireless devices.
37
“Part” means any replacement component made available by or to a manufacturer for the purpose of maintaining or
repairing portable wireless devices manufactured by or on behalf of, sold by, or otherwise supplied by the manufacturer.
38
“Tool” means any software program, hardware implement, or other apparatus used for diagnosing, maintaining, or
repairing portable wireless devices, including software or other mechanisms that program or repair a part, calibrate
functionality, or perform any other function required to bring portable wireless devices back to fully functional condition.
39
“Owner” means an individual or a business that lawfully acquires a portable wireless device purchased or used in this state.
40
“Independent repair provider” means an individual or a business that does not have an arrangement with a manufacturer as
an authorized repair provider and that is not affiliated with any other individual or business that has such an arrangement with
the manufacturer when that individual or business diagnoses, maintains, or repairs portable wireless devices. The term
includes a manufacturer or an independent repair provider that diagnoses, maintains, or repairs portable wireless devices that
are not manufactured by or on behalf of, or sold or otherwise supplied by, the manufacturer.
41
“Fair and reasonable terms,” for purposes of obtaining a part, a tool, or documentation, means costs and terms that are
equivalent to the most favorable costs and terms under which the manufacturer offers the part, tool, or documentation to an
authorized repair provider, accounting for any discount, rebate, convenient and timely means of delivery, means of enabling
fully restored and updated functionality, rights of use, or other incentive or preference that the manufacturer offers to an
authorized repair provider or any additional cost, burden, or impediment that the manufacturer imposes on an owner or
independent repair provider. For documentation, including any relevant updates, the term also means at no charge, except
that, when the documentation is requested in printed form, a charge may be included for the reasonable actual costs of
preparing and mailing the documentation.
42
“Authorized repair provider” means an individual or a business that is unaffiliated with the manufacturer and has an
arrangement with the manufacturer under which the manufacturer grants to the individual or business a license to use a trade
name, service mark, or other proprietary identifier for the diagnosis, maintenance, or repair of portable wireless devices under
the name of the manufacturer, or any other arrangement with the manufacturer to offer services on behalf of the
manufacturer. A manufacturer that offers the services of diagnosis, maintenance, or repair of portable wireless devices
manufactured by the manufacturer or on the manufacturer’s behalf, or sold or otherwise supplied by the manufacturer, and
that does not do so exclusively through one or more arrangements as described in this subsection with an unaffiliated
individual or business, is deemed to be an authorized repair provider of portable wireless devices.
BILL: SB 1132 Page 6
• Written information confirming that the independent repair provider has attempted to acquire
and use, through the then-available standard support function provided by the manufacturer,
relevant documentation, parts, and tools, including communicating with customer assistance;
and
• Evidence of the owner or independent repair provider’s written notification to the
manufacturer.
Additionally, violations of this bill are punishable under the Florida Deceptive and Unfair Trade
Practices Act (FDUTPA), ss. 501.201-501.213, F.S. It is unlawful under the FDUTPA for a party
to take part in “unfair methods of competition, unconscionable acts or practices, and unfair or
deceptive acts of practices in the conduct of any trade or commerce.”43 Such practices include
fraudulent billing,44 misleading a consumer or misrepresenting a product’s characteristics,45 or
other behavior determined to be unfair by a court.46 Under the FDUTPA, the office of the state
attorney or Department of Legal Affairs, either by their own inquiry or through complaints, may
investigate violations of the FDUTPA.47 In addition to other remedies under state and federal
law, the enforcing authority may bring actions for declaratory judgment, injunctive relief, actual
damages on behalf of consumers and businesses, cease and desist orders, and civil penalties up to
$10,000 per violation.48 Moreover, consumers may bring private actions against parties for
violating the FDUTPA, resulting in either:
• Declaratory judgment and injunctive relief when the consumer is aggrieved by a FDUTPA
violation; or
• Actual damages, attorney fees, and court costs, when the consumer has suffered a loss due to
the FDUTPA violation.49
Limitations
Section 6 creates s. 559.975, F.S., providing that this bill does not require:
• A manufacturer to divulge a trade secret,50 except when necessary to provide required
materials on fair and reasonable terms.
• A manufacturer or an authorized repair provider to provide an owner or independent repair
provider access to nondiagnostic and nonrepair information which was provided by the
manufacturer to the authorized repair provider.
Other Provisions
Section 1 creates Part XIV of ch. 559, F.S., “Digital Right to Repair.”
43
Section 501.204, F.S.
44
State Farm Mut. Auto. Ins. Co. v. Medical Service Center of Florida, Inc., 103 F. Supp. 3d 1343 (S.D. Fla. 2015).
45
Lewis v. Mercedes-Benz USA, LLC, 530 F. Supp. 3d 1183 (S.D. Fla. 2021); Marty v. Anheuser-Busch Companies, LLC, 43
F. Supp. 3d 1333 (S.D. Fla. 2014).
46
See Siever v. BWGaskets, Inc., 669 F. Supp. 2d 1286, 1292-93 (M.D. Fla. 2009).
47
The enforcing authority under the FDUTPA may “administer oaths and affirmations, subpoena witnesses or matter, and
collect evidence.” Section 501.206, F.S.
48
Sections 501.207, 501.2077, 501.2075, 501.208, F.S.
49
Sections 501.2105, 501.211, F.S.
50
“Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or
process that: (a) 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 (b) Is
the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
BILL: SB 1132 Page 7
Section 2 creates s. 559.971, F.S., providing that this part may be cited as the Portable Wireless
Device Repair Act.
Section 3 creates s. 559.972, F.S., defining terms used throughout the bill.
The Agricultural Equipment Fair Repair Act
Requirements
Section 8 creates s. 686.35, F.S., requiring original equipment manufacturers51 (OEM) to provide
diagnostic and repair documentation, including updates and corrections to embedded software,52
to any independent repair provider53 or owner54 of equipment55 manufactured by the OEM. Such
information must be available free of charge or provided to an independent repair provider or
owner in the same manner that the OEM would divulge such information to an authorized repair
provider.
Additionally, the OEM may not exclude any diagnostic, service, and repair information
necessary to reset a security-related electronic function on equipment manufactured by the OEM
which is sold or used in this state to provide security-related functions. If such information is
excluded under this bill, the necessary documentation to reset an immobilizer system or security-
related electronic module must be made available through the appropriate secure data release
system.
Exclusions
The bill explicitly does not:
• Require a manufacturer to divulge a trade secret.56
51
“Original equipment manufacturer” means a person or business that, in the ordinary course of business, is engaged in the
selling or leasing of new equipment to a person or business and is engaged in the diagnosis, service, maintenance, or repair of
such equipment.
52
“Embedded software” means any programmable instructions provided on firmware delivered with equipment for the
purpose of equipment operation, including all relevant patches and fixes made by the original equipment manufacturer for
this purpose. The term includes, but is not limited to, a basic internal operating system, an internal operating system, machine
code, assembly code, robot code, or microcode.
53
“Independent repair provider” means a person or business operating in this state which is not affiliated with an original
equipment manufacturer or an original equipment manufacturer’s authorized repair provider and which is engaged in the
diagnosis, service, maintenance, or repair of equipment. However, an original equipment manufacturer meets the definition
of an independent repair provider if such original equipment manufacturer engages in the diagnosis, service, maintenance, or
repair of equipment that is not affiliated with the original equipment manufacturer.
54
“Owner” means a person or business that owns or leases a digital electronic product purchased or used in this state.
55
“Equipment” means digital electronic equipment, or a part for such equipment, which is originally manufactured for farm
equipment, including combines, tractors, implements, self-propelled equipment, and related attachments and implements, and
which is manufactured for distribution and sale in this state.
56
“Trade secret” means anything, whether tangible or intangible or electronically stored or kept, which constitutes,
represents, evidences, or records intellectual property, including secret or confidentially held designs, processes, procedures,
formulas, inventions, or improvements or secret or confidentially held scientific, technical, merchandising, production,
financial, business, or management information. The term also includes any other trade secret as defined in 18 99 U.S.C. s.
1839.
BILL: SB 1132 Page 8
• Interfere with terms of an agreement between the OEM and an authorized repair provider,57
except for any provision within the agreement that waives, avoids, restricts, or limits and
OEM’s compliance with the terms defined within this bill.
• Require that OEMs or authorized repair providers give an owner or independent repair
provider access to non-diagnostic and repair documentation provided by an OEM to an
authorized repair provider pursuant the terms of an authorized repair agreement.
• Apply to motor vehicle manufacturers,58 any product or service of a motor vehicle
manufacturer, or motor vehicle dealers.59
Civil Penalty
An OEM that violates this section is liable for a civil penalty of up to $500 per violation.
Effective Date
Section 9 creates an effective date of July 1, 2025.
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.
57
“Authorized Repair Provider” means an individual or entity that has an arrangement for a definite or indefinite period in
which an original equipment manufacturer grants to a separate individual or entity a license to use a trade name, service
mark, or related characteristic for the purpose of offering repair services under the name of the original equipment
manufacturer.
58
“Motor vehicle manufacturer” means a person or business engaged in the manufacturing or assembling of new motor
vehicles.
59
“Motor vehicle dealer” means a person or business that, in the ordinary course of business, is engaged in the selling or
leasing of new motor vehicles to a person or business pursuant to a franchise agreement; is engaged in the diagnosis, service,
maintenance, or repair of motor vehicles or motor vehicle engines pursuant to such franchise agreement; and has obtained a
license under s. 320.27.
BILL: SB 1132 Page 9
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Indeterminate. Manufacturers may have to adjust costs due to making repair information
and tools available to customers. Repair costs may be affected by increased competition
for independent repair providers.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill creates the following sections of the Florida Statutes: 559.971, 559.976, 559.972,
559.973, 559.974, 559.975, 686.35.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism Committee on March 10, 2025:
The committee substitute creates the Agricultural Equipment Fair Repair Act, requiring
original equipment manufacturers of agricultural equipment to provide certain
manufacturing, diagnostic, and repair information to independent repair providers and
owners. Original equipment manufacturers are prohibited from excluding certain
information concerning security-related functions. The bill does not apply to motor
vehicle manufacturers or motor vehicle dealers. Additionally, a civil penalty may be
collected from any original equipment manufacturer who is found to be in violation.
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 - 2025 COMMITTEE AMENDMENT Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 1132 Bill No. SB 1132
Ì120574)Î120574 Ì120574)Î120574
LEGISLATIVE ACTION 11 period in which an original equipment manufacturer grants to a
Senate . House 12 separate individual or entity a license to use a trade name,
Comm: RCS . 13 service mark, or related characteristic for the purpose of
03/10/2025 . 14 offering repair services under the name of the original
. 15 equipment manufacturer.
. 16 (b) “Embedded software” means any programmable instructions
. 17 provided on firmware delivered with equipment for the purpose of
18 equipment operation, including all relevant patches and fixes
19 made by the original equipment manufacturer for this purpose.
20 The term includes, but is not limited to, a basic internal
21 operating system, an internal operating system, machine code,
22 assembly code, robot code, or microcode.
23 (c) “Equipment” means digital electronic equipment, or a
24 part for such equipment, which is originally manufactured for
25 farm equipment, including combines, tractors, implements, self-
The Committee on Commerce and Tourism (Truenow) recommended the 26 propelled equipment, and related attachments and implements, and
following: 27 which is manufactured for distribution and sale in this state.
28 (d) “Fair and reasonable terms” means an equitable price in
1 Senate Amendment (with title amendment) 29 light of relevant factors, including, but not limited to:
2 30 1. The net cost to the authorized repair provider for
3 Between lines 170 and 171 31 similar information obtained from an original equipment
4 insert: 32 manufacturer, excluding any applicable discount, rebate, or
5 Section 8. Section 686.35, Florida Statutes, is created to 33 other incentive program;
6 read: 34 2. The cost to the original equipment manufacturer for
7 686.35 Agricultural Equipment Fair Repair Act.— 35 preparing and distributing the information, excluding any
8 (1) As used in this section, the term: 36 research and development costs incurred in designing and
9 (a) “Authorized repair provider” means an individual or 37 implementing, upgrading, or altering the product, but including
10 entity that has an arrangement for a definite or indefinite 38 amortized capital costs for the preparation and distribution of
39 the information;
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Florida Senate - 2025 COMMITTEE AMENDMENT Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 1132 Bill No. SB 1132
Ì120574)Î120574 Ì120574)Î120574
40 3. The price charged by other original equipment 69 distribution and sale in the United States. The term does not
41 manufacturers for similar information; 70 include a motorcycle or a recreational vehicle or manufactured
42 4. The price charged by original equipment manufacturers 71 home equipped for habitation.
43 for similar information before the launch of original equipment 72 (h) “Motor vehicle dealer” means a person or business that,
44 manufacturer websites; 73 in the ordinary course of business, is engaged in the selling or
45 5. The ability of aftermarket technicians or shops to 74 leasing of new motor vehicles to a person or business pursuant
46 afford the information; 75 to a franchise agreement; is engaged in the diagnosis, service,
47 6. The means by which the information is distributed; 76 maintenance, or repair of motor vehicles or motor vehicle
48 7. The extent to which the information is used, including 77 engines pursuant to such franchise agreement; and has obtained a
49 the number of users and the frequency, duration, and volume of 78 license under s. 320.27.
50 use; and 79 (i) “Motor vehicle manufacturer” means a person or business
51 8. Inflation. 80 engaged in the manufacturing or assembling of new motor
52 (e) “Firmware” means a software program or set of 81 vehicles.
53 instructions programmed on a hardware device to allow the device 82 (j) “Original equipment manufacturer” means a person or
54 to communicate with other computer hardware. 83 business that, in the ordinary course of business, is engaged in
55 (f) “Independent repair provider” means a person or 84 the selling or leasing of new equipment to a person or business
56 business operating in this state which is not affiliated with an 85 and is engaged in the diagnosis, service, maintenance, or repair
57 original equipment manufacturer or an original equipment 86 of such equipment.
58 manufacturer’s authorized repair provider and which is engaged 87 (k) “Owner” means a person or business that owns or leases
59 in the diagnosis, service, maintenance, or repair of equipment. 88 a digital electronic product purchased or used in this state.
60 However, an original equipment manufacturer meets the definition 89 (l) “Part” means a replacement part, either new or used,
61 of an independent repair provider if such original equipment 90 which the original equipment manufacturer makes available to the
62 manufacturer engages in the diagnosis, service, maintenance, or 91 authorized repair provider for the purpose of effecting repair.
63 repair of equipment that is not affiliated with the original 92 (m) “Trade secret” means anything, whether tangible or
64 equipment manufacturer. 93 intangible or electronically stored or kept, which constitutes,
65 (g) “Motor vehicle” means any vehicle that is designed for 94 represents, evidences, or records intellectual property,
66 transporting persons or property on a street or highway and is 95 including secret or confidentially held designs, processes,
67 certified by the motor vehicle manufacturer under all applicable 96 procedures, formulas, inventions, or improvements or secret or
68 federal safety and emissions standards and requirements for 97 confidentially held scientific, technical, merchandising,
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Florida Senate - 2025 COMMITTEE AMENDMENT Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 1132 Bill No. SB 1132
Ì120574)Î120574 Ì120574)Î120574
98 production, financial, business, or management information. The 127 (a) Require an original equipment manufacturer to divulge a
99 term also includes any other trade secret as defined in 18 128 trade secret.
100 U.S.C. s. 1839. 129 (b) Abrogate, interfere with, contradict, or alter the
101 (2) For equipment sold and used in this state, the original 130 terms of an agreement executed and in force between an
102 equipment manufacturer shall make available diagnostic and 131 authorized repair provider and an original equipment
103 repair information, including repair technical updates and 132 manufacturer, including, but not limited to, the performance or
104 updates and corrections to embedded software, to any independent 133 provision of warranty or recall repair work by an authorized
105 repair provider or owner of equipment manufactured by such 134 repair provider on behalf of an original equipment manufacturer
106 original equipment manufacturer. The information must be made 135 pursuant to such authorized repair agreement, except that any
107 available for no charge or must be provided in the same manner 136 provision in such an authorized repair agreement which purports
108 as the original equipment manufacturer makes such diagnostic and 137 to waive, avoid, restrict, or limit an original equipment
109 repair information available to an authorized repair provider. 138 manufacturer’s compliance with this section is void and
110 Thereafter, the original equipment manufacturer is not 139 unenforceable.
111 responsible for the content and functionality of such 140 (c) Require original equipment manufacturers or authorized
112 aftermarket diagnostic tools, diagnostics, or service 141 repair providers to provide an owner or an independent repair
113 information systems. 142 provider access to nondiagnostic and repair information provided
114 (3) Original equipment manufactured by the original 143 by an original equipment manufacturer to an authorized repair
115 equipment manufacturer which is sold or used in this state to 144 provider pursuant to the terms of an authorized repair
116 provide security-related functions may not exclude from 145 agreement.
117 information provided to an owner or an independent repair 146 (5) This section does not apply to motor vehicle
118 provider any diagnostic, service, and repair information 147 manufacturers, any product or service of a motor vehicle
119 necessary to reset a security-related electronic function. If 148 manufacturer, or motor vehicle dealers.
120 such information is excluded under this section, the information 149 (6) An original equipment manufacturer found in violation
121 necessary to reset an immobilizer system or a security-related 150 of this section is liable for a civil penalty of not more than
122 electronic module must be obtainable by an owner or an 151 $500 for each violation.
123 independent repair provider through the appropriate secure data 152
124 release system. 153 ================= T I T L E A M E N D M E N T ================
125 (4) This section may not be construed to do any of the 154 And the title is amended as follows:
126 following: 155 Delete lines 2 - 15
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Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 1132
Ì120574)Î120574
156 and insert:
157 An act relating to consumers’ right to repair certain
158 equipment; providing a directive to the Division of
159 Law Revision; creating s. 559.971, F.S.; providing a
160 short title; creating s. 559.972, F.S.; defining
161 terms; creating s. 559.973, F.S.; requiring portable
162 wireless device manufacturers to make certain items
163 available to device owners and independent repair
164 providers; prohibiting certain manufacturers from
165 requiring authorized repair providers to continue
166 purchasing certain information in a proprietary
167 format; providing an exception; creating s. 559.974,
168 F.S.; providing for enforcement; creating s. 559.975,
169 F.S.; providing construction; creating s. 559.976,
170 F.S.; providing applicability; creating s. 686.35,
171 F.S.; defining terms; requiring original equipment
172 manufacturers of agricultural equipment to make
173 certain diagnostic and repair information available to
174 independent repair providers and owners; prohibiting
175 original equipment manufacturers from excluding
176 certain information concerning security-related
177 functions; providing construction and applicability;
178 providing civil liability; providing an effective
179 date.
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Florida Senate - 2025 SB 1132 Florida Senate - 2025 SB 1132
By Senator Truenow
13-01670-25 20251132__ 13-01670-25 20251132__
1 A bill to be entitled 30 (1) “Authorized repair provider” means an individual or a
2 An act relating to digital right to repair; providing 31 business that is unaffiliated with the manufacturer and has an
3 a directive to the Division of Law Revision; creating 32 arrangement with the manufacturer under which the manufacturer
4 s. 559.971, F.S.; providing a short title; creating s. 33 grants to the individual or business a license to use a trade
5 559.972, F.S.; defining terms; creating s. 559.973, 34 name, service mark, or other proprietary identifier for the
6 F.S.; requiring portable wireless device manufacturers 35 diagnosis, maintenance, or repair of portable wireless devices
7 to make certain items available to device owners and 36 under the name of the manufacturer, or any other arrangement
8 independent repair providers; prohibiting certain 37 with the manufacturer to offer services on behalf of the
9 manufacturers from requiring authorized repair 38 manufacturer. A manufacturer that offers the services of
10 providers to continue purchasing certain information 39 diagnosis, maintenance, or repair of portable wireless devices
11 in a proprietary format; providing an exception; 40 manufactured by the manufacturer or on the manufacturer’s
12 creating s. 559.974, F.S.; providing for enforcement; 41 behalf, or sold or otherwise supplied by the manufacturer, and
13 creating s. 559.975, F.S.; providing construction; 42 that does not do so exclusively through one or more arrangements
14 creating s. 559.976, F.S.; providing applicability; 43 as described in this subsection with an unaffiliated individual
15 providing an effective date. 44 or business, is deemed to be an authorized repair provider of
16 45 portable wireless devices.
17 Be It Enacted by the Legislature of the State of Florida: 46 (2) “Documentation” means a manual, a diagram, a reporting
18 47 output, a service code description, a schematic, a security code
19 Section 1. The Division of Law Revision is directed to 48 or a password, or any other information used in the diagnosis,
20 create part XIV of chapter 559, Florida Statutes, consisting of 49 maintenance, or repair of portable wireless devices.
21 ss. 559.971-559.976, Florida Statutes, to be entitled “Digital 50 (3) “Fair and reasonable terms,” for purposes of obtaining
22 Right to Repair.” 51 a part, a tool, or documentation, means costs and terms that are
23 Section 2. Section 559.971, Florida Statutes, is created to 52 equivalent to the most favorable costs and terms under which the
24 read: 53 manufacturer offers the part, tool, or documentation to an
25 559.971 Short title.-This part may be cited as the 54 authorized repair provider, accounting for any discount, rebate,
26 “Portable Wireless Device Repair Act.” 55 convenient and timely means of delivery, means of enabling fully
27 Section 3. Section 559.972, Florida Statutes, is created to 56 restored and updated functionality, rights of use, or other
28 read: 57 incentive or preference that the manufacturer offers to an
29 559.972 Definitions.—As used in this act, the term: 58 authorized repair provider or any additional cost, burden, or
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59 impediment that the manufacturer imposes on an owner or 88 includes a battery, microphone, speaker, and display designed to
60 independent repair provider. For documentation, including any 89 send and receive transmissions through a cellular radio-
61 relevant updates, the term also means at no charge, except that, 90 telephone service.
62 when the documentation is requested in print form, a charge may 91 (9) “Tool” means any software program, hardware implement,
63 be included for the reasonable actual costs of preparing and 92 or other apparatus used for diagnosing, maintaining, or
64 mailing the documentation. 93 repairing portable wireless devices, including software or other
65 (4) “Independent repair provider” means an individual or a 94 mechanisms that program or repair a part, calibrate
66 business that does not have an arrangement with a manufacturer 95 functionality, or perform any other function required to bring
67 as an authorized repair provider and that is not affiliated with 96 portable wireless devices back to fully functional condition.
68 any other individual or business that has such an arrangement 97 (10) “Trade secret” has the same meaning as in s. 688.002.
69 with the manufacturer when that individual or business 98 Section 4. Section 559.973, Florida Statutes, is created to
70 diagnoses, maintains, or repairs portable wireless devices. The 99 read:
71 term includes a manufacturer or an independent repair provider 100 559.973 Requirements.—
72 that diagnoses, maintains, or repairs portable wireless devices 101 (1) A manufacturer must make available to an owner of a
73 that are not manufactured by or on behalf of, or sold or 102 portable wireless device, and to an independent repair provider
74 otherwise supplied by, the manufacturer. 103 of such device, on fair and reasonable terms, documentation,
75 (5) “Manufacturer” means an individual or a business that 104 parts, and tools, inclusive of any updates, for diagnosing,
76 sells, leases, or otherwise supplies new portable wireless 105 maintaining, or repairing such device. This subsection does not
77 devices, or parts of new portable wireless devices, manufactured 106 require a manufacturer to provide a part that is no longer
78 by or on behalf of the individual or business to another 107 available to the manufacturer.
79 individual or business. 108 (2) A manufacturer that sells diagnostic, service, or
80 (6) “Owner” means an individual or a business that lawfully 109 repair information to an independent repair provider or any
81 acquires a portable wireless device purchased or used in this 110 other third-party provider in a format that is standardized with
82 state. 111 other manufacturers, and in a manner and on terms and conditions
83 (7) “Part” means any replacement component made available 112 more favorable than the manner and terms and conditions pursuant
84 by or to a manufacturer for the purpose of maintaining or 113 to which an authorized repair provider obtains the same
85 repairing portable wireless devices manufactured by or on behalf 114 diagnostic, service, or repair information, may not require an
86 of, sold by, or otherwise supplied by the manufacturer. 115 authorized repair provider to continue purchasing diagnostic,
87 (8) “Portable wireless device” means a product that 116 service, or repair information in a proprietary format, unless
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117 such proprietary format includes diagnostic, service, repair, or 146 paragraph (a).
118 dealership operations information or functionality that is not 147 (2) In addition to the remedy provided under subsection
119 available in such standardized format. 148 (1), a violation of this part is a deceptive and unfair trade
120 Section 5. Section 559.974, Florida Statutes, is created to 149 practice under the Florida Deceptive and Unfair Trade Practices
121 read: 150 Act. All remedies, penalties, and authority granted to the
122 559.974 Enforcement.— 151 enforcing authority by that act are available for the
123 (1)(a) An independent repair provider or owner who believes 152 enforcement of this part.
124 that a manufacturer has failed to provide documentation, parts, 153 Section 6. Section 559.975, Florida Statutes, is created to
125 or tools for diagnosing, maintaining, or repairing a portable 154 read:
126 wireless device, as required by this part, must notify the 155 559.975 Limitations.—
127 manufacturer, in writing, and give the manufacturer 30 days 156 (1) This part does not require a manufacturer to divulge a
128 following receipt of notice to cure the failure. If the 157 trade secret, except as necessary to provide documentation,
129 manufacturer responds to the notice and cures the failure within 158 parts, and tools on fair and reasonable terms.
130 the cure period, damages are limited to actual damages in any 159 (2) This part does not require a manufacturer or an
131 subsequent litigation. 160 authorized repair provider to provide an owner or independent
132 (b) If a manufacturer fails to respond to the notice 161 repair provider access to nondiagnostic and nonrepair
133 provided under paragraph (a), or if an independent repair 162 information provided by a manufacturer to an authorized repair
134 provider or owner is not satisfied with the manufacturer’s cure, 163 provider.
135 the independent repair provider or owner may file a complaint in 164 Section 7. Section 559.976, Florida Statutes, is created to
136 the circuit court of the county in which the independent repair 165 read:
137 provider has his, her, or its principal place of business or in 166 559.976 Applicability.—
138 which the owner resides. The complaint must include the 167 (1) This part applies to portable wireless devices sold or
139 following: 168 in use on or after July 1, 2025.
140 1. Written information confirming that the independent 169 (2) This part does not apply to portable wireless devices
141 repair provider or owner has attempted to acquire and use, 170 approved by the United States Food and Drug Administration.
142 through the then-available standard support function provided by 171 Section 8. This act shall take effect July 1, 2025.
143 the manufacturer, relevant documentation, parts, and tools,
144 including communicating with customer assistance.
145 2. Evidence of manufacturer notification as required by
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The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 676
INTRODUCER: Senator Martin
SUBJECT: Minimum Wage Requirements
DATE: March 10, 2025 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Dike McKay CM Fav/CS
2. GO
3. RC
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 676 amends the Florida Minimum Wage Act to allow employees to opt out of receiving
the minimum wage for work-study, internship, preapprenticeship, apprenticeship program, or
other similar work-based learning opportunities by signing a waiver acknowledging that the
employee is knowingly and voluntarily choosing to receive a lesser amount. Parents or guardians
must sign the waiver for employees under 18 years of age.
The bill takes effect July 1, 2025.
II. Present Situation:
Federal Minimum Wage
In 1938, the Fair Labor Standards Act (FLSA) was enacted to prescribe federal standards for
minimum wage, overtime, recordkeeping, and child labor.1 As of 2009, the minimum wage that
all covered, nonexempt employees must earn is $7.25.2 No state may enforce a minimum wage
1
29 U.S.C. § 206; U.S. DEPT. OF LABOR, Fact Sheet #14: Coverage Under the Fair Labor Standards Act (FLSA), available at
https://www.dol.gov/agencies/whd/fact-sheets/14-flsa-coverage (last visited Mar. 10, 2025).
2
29 U.S.C. § 206.
BILL: SB 676 Page 2
that is below the federal minimum.3 As of 2021, around 85% of all wage and salary workers in
the U.S. were covered by the FLSA.4
The FLSA applies to employees in two categories:
• Enterprise coverage—employees who work for enterprises, businesses or organizations
doing at least $500,000 of business per year, and hospitals, businesses providing medical
or nursing care for residents, schools and preschools, and government agencies; or
• Individual coverage—Employees whose work involves the production of goods for
commerce or engagement in interstate commerce and domestic workers.5
The FLSA includes several exemptions from the federal minimum hourly wage, that are not
legally required to be paid at the minimum hourly wage rate, including:
• Executive, administrative and professional employees (including teachers and academic
administrative personnel in elementary and secondary schools), outside sales employees,
and employees in certain computer-related occupations;
• Employees in certain seasonal amusement or recreational establishments, employees in
certain small newspapers, seamen employed on foreign vessels, employees engaged in
fishing operations, and employees engaged in newspaper delivery;
• Farm workers employed by anyone who used no more than 500 “man-days” of farm
labor in any calendar quarter of the preceding calendar year;
• Causal babysitters and persons employed as companions for the elderly or infirm;
• Border patrol agents; and
• Baseball players who are compensated pursuant to a contract that provides for a weekly
salary for services performed during the league’s championship season at a rate that is not
less than a weekly salary equal to the minimum wage.6
Under the FLSA, employers may pay subminimum wages for certain classes of workers,
including:
• Youth employees under 20 years old for their first 90 days of employment.
• Student employees who receive a special certificate from the Department of Labor to
work part-time in a vocational training program.
• Full time students who receive a special certificate from the Department of Labor, who
are employed in retail/service establishments, agricultural occupation, or an institution of
higher education.
• Individuals with disabilities who receive a special certificate from the Department of
Labor, whose earning capacity is impaired by a disability.
• Employees who customarily receive tips as part of their job.7
3
See U.S. Const. art. VI (the Supremacy Clause of the U.S. Constitution); U.S DEPT. OF LABOR, Minimum Wage, available at
https://www.dol.gov/general/topic/wages/minimumwage (last visited Mar. 10, 2025).
4
Sarah A. Donovan, CONG. RSCH. SERV., The Federal Minimum Wage: In Brief, available at
https://crsreports.congress.gov/product/pdf/R/R43089 (last visited Mar. 10, 2025).
5
U.S. DEPT. OF LABOR, supra note 1.
6
29 U.S.C. § 213.
7
Donovan, supra note 4.
BILL: SB 676 Page 3
Florida Minimum Wage
Constitutional Amendment
On November 2, 2004, Floridians voted to amend the Florida Constitution by adding a minimum
wage provision that established the state minimum wage.8 Under Fla. Const. art. X, § 24, “all
working Floridians are entitled to be paid a minimum wage that is sufficient to provide a decent
and healthy life for them and their families, that protects their employers from unfair low-wage
competition, and that does not force them to rely on taxpayer-funded public services in order to
avoid economic hardship.”
On November 3, 2020, citizens voted to amend the Florida Constitution to gradually increase the
state minimum wage each year, starting at $10.00 per hour and rising until it reaches $15.00 per
hour on September 30, 2026.9 Currently, the Florida minimum wage is $13.00 per hour.10
Pursuant to the amendment, on September 30, 2027, and each following year on that date,
Florida’s Department of Commerce must increase the minimum wage using a specified inflation
calculation.11
Under Fla. Const. art. X, § 24, the definitions of “employer,” “employee,” and “wage” have the
same meaning as those established under the FLSA. This constitutional provision also states that
the case law, administrative interpretations, and other guiding standards under the FLSA must
guide the construction and implementation of Florida’s constitutional minimum wage.12
Resultingly, the FLSA and its exceptions and exemptions are incorporated into the Florida
minimum wage amendment.13
Florida Statute
In 2005, Florida Legislature enacted the Florida Minimum Wage Act (Act), s. 448.110, F.S., to
implement the requirements of the constitutional amendment in statute. The Act only applies to
individuals entitled to receive federal minimum wage under the FLSA.14 It is also specified that
ss. 213 and 214 of the FLSA, which set forth exceptions and exemptions to the minimum wage,
are incorporated into Florida minimum wage law.15
Additionally, the Act provides a cause of action for individuals against employers who do not
follow minimum wage requirements, retaliate against an employee for exercising their rights, or
otherwise violate the Act.16 The Attorney General is also authorized to bring civil actions against
employers violating it, which may result in injunctive relief or fines paid to the state.17
8
See Fla. Const. art. X, § 24.
9
Id.
10
U.S. DEPT. OF LABOR, State Minimum Wage Laws, available at https://www.dol.gov/agencies/whd/minimum-wage/state
(last visited Mar. 10, 2025).
11
Fla. Const. art. X, § 24.
12
Fla. Const. art. X, § 24(f).
13
Op. Att’y Gen. Fla. 2005-64 (2005); see also In re Advisory Opinion to the Atty. Gen. re Fla. Minimum Wage Amend., 880
So. 2d 636 (Fla. 2004).
14
Section 448.110(3), F.S.
15
Id.
16
Section 448.110(5)-(6), F.S.
17
Section 448.110(7), F.S.
BILL: SB 676 Page 4
Work-Based Learning Opportunities
The federal government provides part-time employment to certain students who are attending
institutions of higher education through its federal work-study program.18 A student is eligible to
take part in this program if they meet the eligibility requirements of 34 C.F.R. 668.32, have a
demonstrated financial need, and are enrolled at an institution of higher education.19 The student
may work for qualifying employers or the education institution itself.20 Further, the student
participating in a work-study program must be paid at least the minimum wage rate under the
FLSA.21
Additionally, the federal government sets forth labor standards and governs registration of
apprenticeship programs under the National Apprenticeship Act.22 Each state has a registered
apprentice program which must be approved by the Office of Apprenticeship at the U.S.
Department of Labor.23 Florida’s apprenticeship program carves out work-based learning
opportunities for people who are at least 16 years old to gain trade skills while still in school.24
The Florida Department of Education has developed standards for apprenticeable trades to
establish programs with public schools and the Florida College System.25 These trades include
plumbing, heating and air conditioning technicians, teaching, cybersecurity, and more.26 Each
employer registered with a state apprenticeship program must pay at least the minimum wage
under the FLSA, or a higher wage if required by applicable state law.27
III. Effect of Proposed Changes:
Section 1 amends s. 448.110, F.S., to provide that an employer is not subject to the minimum
wage requirements of this section for certain employees who choose to opt out of the minimum
wage. The covered employees are those who are employed in a structured work-study,
internship, preapprenticeship program, apprenticeship program, or other similar work-based
learning opportunity. Such employees may opt out of receiving the minimum wage by signing a
waiver, which must state that the employee is knowingly and voluntarily choosing to work for an
amount lower than the minimum wage. If the employee is under 18 years old, a parent or
guardian of the employee must sign the waiver on behalf of the employee.
The bill contains a severability clause providing that if any provision is held invalid, that
provision is severable and does not affect the validity of other provisions.
See Section IV, Constitutional Issues, for a discussion of the constitutionality of the bill.
18
20 U.S.C. § 1087-51; 34 C.F.R. § 675.1.
19
34 C.F.R. § 675.9.
20
34 C.F.R. §§ 675.20-675.21.
21
34 C.F.R. § 675.24.
22
See 29 U.S.C. §§50 et seq; 29 C.F.R. 29.
23
29 C.F.R. 29.3.
24
See ss. 446.011-446.092, F.S.
25
Section 446.011, F.S.
26
Florida Dept. of Education, Florida’s Annual Apprenticeship and Preapprenticeship Report 2023-2024, available at
https://www.fldoe.org/core/fileparse.php/9904/urlt/2024ApprenticeFL-Annual.pdf (last visited Mar. 10, 2025).
27
29 C.F.R. § 29.5.
BILL: SB 676 Page 5
Section 2 provides an effective date of July 1, 2025.
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:
Under Fla. Const. art. X, § 24, “employers shall pay Employee Wages no less than the
Minimum Wage for all hours worked in Florida.” When interpreting the meaning of a
statute or constitutional provision, courts will abide by the plain language of the text if it
is unambiguous.28 The language of the constitutional mandate is clear that employers
must pay the established, hourly minimum wage to employees. If an employee signs a
waiver stating that they opt out of minimum wage requirements, the employer is still
bound by the minimum wage requirements of the state constitution. There is no exception
or exemption from the minimum wage specified in the state constitution, other than those
incorporated from the FLSA.29
Further, in a Florida appellate decision30 on an appeal from a denial of unemployment
compensation benefits, the court found that since “the Florida Statutes expressly adopt
the FLSA, as interpreted and implemented by federal law, ‘[n]o one can doubt but that to
allow waiver of statutory [minimum] wages by agreement would nullify the purposes of
the [FLSA].’”31
28
McCloud v. State, 260 So. 3d 911, 914-15 (Fla. 2018); Garcia v. Andonie, 101 So. 3d 339 (Fla. 2012) (”Constitutional
analysis must begin with examination of explicit language of provisions in question and, where the language is unambiguous
and addresses the matter at issue, the provision should be enforced as written.”).
29
See Fla. Const. art. X, § 24(f) (“It is intended that case law, administrative interpretations, and other guiding standards
developed under the federal FLSA shall guide the construction of this amendment and any implementing statutes or
regulations.”).
30
Martinez v. Ford Midway Mall, Inc., 59 So. 3d 168 (Fla. 3d DCA 2011).
31
Id. at 173, citing Brooklyn Savings Bank v. O’Neill, 324 U.S. 697, 707 (1945).
BILL: SB 676 Page 6
There are some constitutional rights that can be waived, such as the right to remain silent
in police interrogation or the right to a homestead exemption.32 While it is true that “most
personal constitutional rights may be waived… an individual cannot waive a right
designed to protect both the individual and the public.”33 Further, an individual may only
forego a constitutional right if “it was the product of free and deliberate choice rather
than intimidation, coercion, or deception.”34
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:
“Internship” does not appear to have a standardized definition in Florida law, so it may be
unclear what types of internships would be eligible for the minimum wage opt-out.
VIII. Statutes Affected:
This bill substantially amends s. 448.110, F.S.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism Committee on March 10, 2025:
The committee substitute creates a provision that employees may waive their right to
minimum wage by signing a waiver with specified language; provides that parents of
minors must sign the waiver for employees under 18 years old; and adds a severability
clause to the bill.
32
See Chames v. DeMayo, 972 So. 2d 850 (Fla. 2007); Hartwell v. Blasingame, 564 So. 2d 543 (Fla. 2d DCA 1990),
approved, 584 So. 2d 6 (Fla. 1991).
33
Chames, 972 So. 2d at 860.
34
Sliney v. State, 699 So. 2d 662, 668 (Fla. 1997).
BILL: SB 676 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 - 2025 COMMITTEE AMENDMENT Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 676 Bill No. SB 676
Ì146974OÎ146974 Ì146974OÎ146974
LEGISLATIVE ACTION 11 this section and that he or she is knowingly and voluntarily
Senate . House 12 choosing to receive a lesser amount for his or her work-based
Comm: RCS . 13 learning opportunity as described in paragraph (b). If the
03/10/2025 . 14 employee is younger than 18 years of age, the employee’s parent
. 15 or guardian must sign the waiver on behalf of the employee.
. 16 (d) If any provision of this section or its application to
. 17 any person or circumstance is held invalid, that provision or
18 its application is severable and does not affect the validity of
19 other provisions or applications of this section.
20
21 ================= T I T L E A M E N D M E N T ================
22 And the title is amended as follows:
23 Delete line 7
24 and insert:
25 manner; requiring that the parent or guardian of an
The Committee on Commerce and Tourism (Martin) recommended the 26 employee who is younger than 18 years of age sign such
following: 27 waiver on behalf of the employee; providing
28 severability; providing an effective date.
1 Senate Amendment (with title amendment)
2
3 Delete lines 30 - 35
4 and insert:
5 wage.
6 (c) An employee may opt out of receiving the minimum wage
7 by signing a waiver of his or her right to the minimum wage
8 established under this this section. The waiver must state that
9 the employee acknowledges his or her right to the state minimum
10 wage pursuant to s. 24, Art. X of the State Constitution and
Page 1 of 2 Page 2 of 2
3/10/2025 11:24:17 AM 577-02227-25 3/10/2025 11:24:17 AM 577-02227-25
Florida Senate - 2025 SB 676 Florida Senate - 2025 SB 676
By Senator Martin
33-01587-25 2025676__ 33-01587-25 2025676__
1 A bill to be entitled 30 wage. The employee may opt out of receiving the minimum wage by:
2 An act relating to minimum wage requirements; amending 31 1. Checking a box on an application form to opt out of the
3 s. 448.110, F.S.; providing that an employer is not 32 minimum wage requirements; or
4 subject to certain minimum wage requirements for 33 2. Providing the employer with a written acknowledgment
5 specified employees; authorizing employees to opt out 34 signed by the employee that the employee is opting out of the
6 of the minimum wage requirements in a specified 35 minimum wage requirements.
7 manner; providing an effective date. 36 Section 2. This act shall take effect July 1, 2025.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (3) of section 448.110, Florida
12 Statutes, is amended to read:
13 448.110 State minimum wage; annual wage adjustment;
14 enforcement.—
15 (3)(a) Employers shall pay employees a minimum wage at an
16 hourly rate of $6.15 for all hours worked in Florida. Only those
17 individuals entitled to receive the federal minimum wage under
18 the federal Fair Labor Standards Act, as amended, and its
19 implementing regulations shall be eligible to receive the state
20 minimum wage pursuant to s. 24, Art. X of the State Constitution
21 and this section. The provisions of ss. 213 and 214 of the
22 federal Fair Labor Standards Act, as interpreted by applicable
23 federal regulations and implemented by the Secretary of Labor,
24 are incorporated herein.
25 (b) An employer is not subject to the minimum wage
26 requirements of this section for an employee who is in a
27 structured work-study, internship, preapprenticeship, or
28 apprenticeship program or other similar work-based learning
29 opportunity and such employee opts out of receiving the minimum
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.
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March 10,2025 676
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BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SB 702
INTRODUCER: Commerce and Tourism and Senator Burgess
SUBJECT: Provenance of Digital Content
DATE: March 11, 2025 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. McMillan McKay CM Fav/CS
2. ATD
3. FP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 702 creates a number of provisions relating to information about the origin and
modification of digital content. The bill defines “provenance data” as information identifying
whether some or all of the content has been derived through generative artificial intelligence and,
if so, the name of the generative artificial intelligence tool used to generate such content and the
organization that developed such tool.
The bill requires any content purporting to feature an electoral candidate which can be viewed,
heard, or accessed online to include digital provenance data if such content was created by
generative artificial intelligence.
The bill creates a digital content provenance pilot program within the Division of Emergency
Management (DEM), to enhance the security and authenticity of digital content used in
emergency management operations through the inclusion of provenance data.
The bill defines “synthetic content” as any visual or audio content that has been produced or
modified by a generative artificial intelligence tool.
The bill requires the provider of a generative artificial intelligence tool to apply provenance data
to synthetic content wholly generated by the provider’s artificial intelligence tool. The provider
of such tool must make the following available to the public:
• An application tool that can determine whether content is synthetic content; and
BILL: CS/SB 702 Page 2
• A free provenance reader that can view provenance information for synthetic content.
The bill prohibits provenance data from including any personal identifying information or any
unique device, system, or service information which is reasonably capable of being associated
with a particular user, unless directed by the user.
The bill requires a social media platform to retain all available provenance data of any suspected
synthetic content, and requires such platform to make such data available to platform users
through a conspicuous indicator with an encoded link. Additionally, a capture device sold in
Florida is required to have an option to record provenance data of any suspected synthetic
content. The manufacturer of a capture device must ensure that such provenance data can be read
by third-party applications. A violation of s. 501.9741, F.S., constitutes an unfair or deceptive act
or practice. The Department of Legal Affairs must notify the provider of the generative artificial
intelligence system, the manufacturer of a capture device, or the social media platform of any
suspected violation, and allow the provider 30 days to cure the alleged violation.
The bill takes effect July 1, 2025.
II. Present Situation:
Artificial Intelligence
Generally
Artificial intelligence (AI) is the development of computer systems to perform tasks that
normally require human intelligence, such as learning and decision-making.1 It enables computer
systems to receive information that is either provided to them by others or gathered by them (e.g.
through camera lenses or other sensors), which they can then process and respond to in some
meaningful way. To a certain extent, AI systems can adapt their behavior by analyzing the
effects of previous actions and working autonomously.2
Investments in AI have led to many of the transformative advancements that U.S. consumers rely
upon every day,3 including mapping technologies, voice-assisted smartphones, handwriting
recognition for mail delivery, financial trading, smart logistics, spam filtering, and language
translation. AI advances have also provided significant social benefits in areas such as precision
medicine, environmental sustainability, education, and public welfare.4
Types of AI
AI may be generally classified in one of three classes based on its capabilities or its
1
National Conference of State Legislatures (NCSL), Artificial Intelligence 2023 Legislation, Jan. 12, 2024, available at
https://www.ncsl.org/technology-and-communication/artificial-intelligence-2023-legislation (last visited Mar. 11, 2025).
2
European Parliament, What is artificial intelligence and how is it used?, E.U. News, Jun. 20, 2023, available at
https://www.europarl.europa.eu/topics/en/article/20200827STO85804/what-is-artificial-intelligence-and-how-is-it-used (last
visited Mar. 11, 2025).
3
U.S. Department of State, Artificial Intelligence (AI), available at https://www.state.gov/artificial-intelligence/ (last visited
Mar. 11, 2025).
4
Id.
BILL: CS/SB 702 Page 3
functionalities:5
• Artificial Narrow AI. Also known as Weak AI, machines using Weak AI can only perform
specific tasks using human-like capabilities. They can do nothing more than what they are
programmed to do. Examples of Artificial Narrow AI include Siri, Alexa, and ChatGPT.6
• General AI. Also known as Strong AI, and any machine or application using Strong AI in the
future would be able to use what they have learned in the past to accomplish new tasks in
different contexts without the need for additional training by human beings. In other words,
they would be able to learn, perceive, understand, and function completely like a human
beings.7
• Super AI. Also known as artificial superintelligence, Super AI is strictly theoretical. If ever
realized, machines using Super AI would think, reason, learn, make judgments, and possess
cognitive abilities surpassing those of human beings. Machines possessing Super AI
capabilities would have evolved beyond the point of understanding human sentiments and
experiences to feeling emotions, having needs, and possessing beliefs and desires of their
own.8
Under the umbrella of Artificial Narrow AI or Weak AI, there are four kinds of AI based upon
functionalities:9
• Reactive Machine AI. Reactive machines are AI systems with no memory. They are designed
to perform very specific tasks. They can only work with presently available data because
they cannot recollect previous outcomes or decisions. Reactive Machine AI stems from
statistical math and can analyze vast amounts of data to produce a seemingly intelligent
output. Examples of machines and applications that rely upon Reactive Machine AI include
IBM Deep Blue (IBM’s chess-playing supercomputer) and the Netflix recommendation
engine.10
• Limited Memory AI. In addition to having the capabilities of purely reactive machines,
Limited Memory AI machines and applications are also capable of learning from historical
data to make decisions. Almost all present-day Limited Memory AI applications, including
Generative AI tools (e.g. chatbots and virtual assistants) and self-driving vehicles, are
Limited Memory AI machines and applications.11
• Theory of Mind AI. Theory of Mind AI is a kind of General AI that exists only in concept. It
is the “next level” of AI systems that researchers are currently developing. Machines and
applications using a Theory of Mind level AI will be able to understand the thoughts and
emotions of other entities. In theory, this will allow them to simulate humanlike relationships
and to contextualize artwork and essays, which today’s Generative AI tools are unable to
do.12
5
Naveen Joshi, 7 Types of Artificial Intelligence, Jun. 19, 2019, Forbes, available at
https://www.forbes.com/sites/cognitiveworld/2019/06/19/7-types-of-artificial-intelligence/?sh=7b5ddf4d233e (last visited
Mar. 11, 2025).
6
Id.
7
Id.
8
Id.
9
Id.
10
Id.
11
Id.
12
Id. Emotion AI is a kind of Theory of Mind AI that is currently under development. Researchers hope that it will one day
have the ability to analyze voices, images, and other kinds of data to recognize, simulate, monitor, and respond appropriately
to humans on an emotional level. To date, Emotion AI is unable to understand and respond to human feelings. Id.
BILL: CS/SB 702 Page 4
• Self-Aware AI. Self-Aware AI is a kind of Super AI that exists only in concept. It is strictly
theoretical. If ever achieved, it will have the ability to understand its own internal conditions
and traits along with human emotions and thoughts. It will also have its own set of emotions,
needs, and beliefs.13
Generative AI
Generative AI is a type of Limited Memory AI technology14 that can produce high-quality
content, including text, images, audio, or video, within seconds when prompted by a user.15
Although it was first introduced in the 1960s, it was not until 2014, with the introduction of
generative adversarial networks, or GANs (a type of machine learning algorithm),16 that
Generative AI could convincingly create authentic images, videos, and audio of real people.17
Generative AI systems learn patterns and relationships from massive amounts of data, which
enables them to process and create new content that may be similar, but not identical, to the
underlying training data. Such systems rely upon sophisticated machine learning algorithms and
statistical models to work.18
In order to generate new content, Generative AI users are required to submit prompts that guide
the generation of new content. Many iterations may be required to produce the intended result
because Generative AI is sensitive to the wording of prompts.19
Because Generative AI can do so much, it has many potential applications, including in
education, government, medicine, and law. Applications include:
• Writing a speech in a particular tone.
• Summarizing complex research.
• Assessing legal documents.
13
Id.
14
George Lawton, What is generative AI? Everything you need to know, TechTarget, Jan. 2024, available at
https://www.techtarget.com/searchenterpriseai/definition/generative-AI (last visited Mar. 11, 2025).
15
Government Accountability Office (GAO), Science, Technology Assessment, and Analytics, Science & Tech Spotlight:
Generative AI (June 2023), available at https://www.gao.gov/assets/gao-23-106782.pdf; (last visited Mar. 11, 2025). George
Lawton, What is generative AI? Everything you need to know, TechTarget, Jan. 2024, available at
https://www.techtarget.com/searchenterpriseai/definition/generative-AI (last visited Mar. 11, 2025).
16
“A generative adversarial network (GAN) is a deep learning architecture. It trains two neural networks to compete against
each other to generate more authentic new data from a given training dataset. For instance, you can generate new images
from an existing image database or original music from a database of songs. A GAN is called adversarial because it trains
two different networks and pits them against each other. One network generates new data by taking an input data sample and
modifying it as much as possible. The other network tries to predict whether the generated data output belongs in the original
dataset. In other words, the predicting network determines whether the generated data is fake or real. The system generates
newer, improved versions of fake data values until the predicting network can no longer distinguish fake from original.”
Amazon Web Services (AWS), What is a GAN?, available at https://aws.amazon.com/what-is/gan/ (last visited Mar. 11,
2025). GAN can generate images, training data for other models, complete missing information, and generate 3D models
from 2D data. Id.
17
George Lawton, What is generative AI? Everything you need to know, TechTarget, Jan. 2024, available at
https://www.techtarget.com/searchenterpriseai/definition/generative-AI (last visited Mar. 11, 2025).
18
Government Accountability Office (GAO), Science, Technology Assessment, and Analytics, Science & Tech Spotlight:
Generative AI (June 2023), available at https://www.gao.gov/assets/gao-23-106782.pdf (last visited Mar. 11, 2025). Training
data can include opensource information, such as text and images from the internet. Id.
19
Id.
BILL: CS/SB 702 Page 5
• Creating images for different applications.
• Composing music.
• Composing poems.
• Designing molecules for new drugs.
• Generating programming codes.
• Translating languages.
• Implementing chatbots.
• Deploying “deepfakes.”
• Improving dubbing for movies.
• Designing physical products and buildings.20
The U.S. Government Accountability Office has identified several opportunities and challenges
in connection with the proliferation of Generative AI systems.21 With respect to opportunities,
Generative AI can quicken access to ideas and knowledge by helping people more efficiently
gather new information; help automate a wide variety of administrative and repetitive tasks; and
enhance the productivity of many industries.22 With respect to challenges, because Generative AI
systems can respond to harmful instructions, they can increase the speed and scale of many real
world harms, such as facilitating the development and proliferation of false information;
facilitating the use of copyrighted, proprietary, or sensitive data, without the owner’s or subject’s
knowledge; reducing privacy for users, including minors, through the retention of personally
identifiable information without consent; and facilitating the storage and use of sensitive
information by foreign adversaries.23
Regulation
Concerns about the potential misuse or unintended consequences of AI have prompted efforts to
examine and develop standards at the federal and state levels.24
In the 2024 legislative session, at least 45 states, Puerto Rico, the Virgin Islands and
Washington, D.C., introduced AI bills, and 31 states, Puerto Rico and the Virgin Islands adopted
resolutions or enacted legislation. Examples of those actions include the following:25
• Colorado enacted comprehensive AI legislation requiring developers and deployers of high-
risk AI systems to use reasonable care to avoid algorithmic discrimination and requires
disclosures to consumers.
• Hawaii required the University of Hawaii to implement a program to develop a wildfire
forecast system to forecast the risk of wildfire statewide using AI.
20
Government Accountability Office (GAO), Science, Technology Assessment, and Analytics, Science & Tech Spotlight:
Generative AI (Jun. 2023), available at https://www.gao.gov/assets/gao-23-106782.pdf; (last visited Mar. 11, 2025), George
Lawton, What is generative AI? Everything you need to know, TechTarget, Oct. 2024, available at
https://www.techtarget.com/searchenterpriseai/definition/generative-AI (last visited Mar. 11, 2025).
21
Government Accountability Office (GAO), Science, Technology Assessment, and Analytics, Science & Tech Spotlight:
Generative AI (Jun. 2023), available at https://www.gao.gov/assets/gao-23-106782.pdf (last visited Mar. 11, 2025).
22
Id.
23
Id.
24
NCSL, Artificial Intelligence 2024 Legislation, Sep. 9, 2024, available at https://www.ncsl.org/technology-and-
communication/artificial-intelligence-2024-legislation (last visited Mar. 11, 2025).
25
Id.
BILL: CS/SB 702 Page 6
• Indiana created an AI task force.
• Maryland required the Department of Information Technology to adopt policies and
procedures concerning the development, procurement, deployment, use and assessment of
systems that employ AI by units of state government.
• New Hampshire created the crime of the fraudulent use of deepfakes and establishes a cause
of action.
• Tennessee required the governing boards of public institutions of higher education to
promulgate rules and required local education boards and public charter schools to adopt
policies, regarding the use of AI by students, teachers, faculty and staff for instructional
purposes.
• Utah created the Artificial Intelligence Policy Act.
• West Virginia created a select committee on AI.26
Government Technology Modernization Council
In 2024, the Legislature established the Government Technology Modernization Council within
the Department of Management Services to study and monitor the development and deployment
of new technologies and provide reports on recommendations for procurement and regulation of
such systems to the Governor, the President of the Senate, and the Speaker of the House of
representatives.27 By December 31, 2024, and each December 31 thereafter, the council is
required to submit to the President of the Senate and the Speaker of the House of Representatives
any legislative recommendations considered necessary by the council to modernize government
technology, including:
• Recommendations for policies necessary to:
o Accelerate adoption of technologies that will increase productivity of state enterprise
information technology systems, improve customer service levels of government, and
reduce administrative or operating costs;
o Promote the development and deployment of artificial intelligence systems, financial
technology, education technology, or other enterprise management software in Florida;
and
o Protect Floridians from bad actors who use artificial intelligence.
• Any other information the council considers relevant.28
Florida Cybersecurity Advisory Council
In 2021, the Legislature established the Florida Cybersecurity Advisory Council within the
Department of Management Services to assist state agencies in protecting their information
technology resources from cyber threats and incidents. The council is required to submit to the
President of the Senate and the Speaker of the House of Representatives any legislative
recommendations considered by the council to address cybersecurity beginning June 30, 2022
and each June 30th thereafter.29
26
Id.
27
Ch. 2024-118, Laws of Fla.
28
Section 282.802, F.S.
29
Department of Management Services, Cybersecurity Advisory Council, available at
https://www.dms.myflorida.com/other_programs/cybersecurity_advisory_council (last visited Mar. 11, 2025).
BILL: CS/SB 702 Page 7
Disclaimer Requirements for Political Advertising
Current law defines “political advertisement” to mean a paid expression in a communications
medium,30 whether radio, television, newspaper, magazine, periodical, campaign literature, direct
mail, or display or by means other than the spoken word in direct conversation, which expressly
advocates the election or defeat of a candidate or the approval or rejection of an issue.31
However, the term does not include:
• A statement by an organization, in existence before the time during which a candidate
qualifies or an issue is placed on the ballot for that election, in support of or in opposition to a
candidate or issue, in that organization’s newsletter, which newsletter is distributed only to
the members of that organization.
• Editorial endorsements by a newspaper, a radio or television station, or any other recognized
news medium.32
An “electioneering communication” is a text message or communication that is publicly
distributed by a television station, radio station, cable television system, satellite system,
newspaper, magazine, direct mail, or telephone which:
• Refers to or depicts a clearly identified candidate for office without expressly advocating the
election or defeat of a candidate but that is susceptible of no reasonable interpretation other
than an appeal to vote for or against a specific candidate;
• Is made within 30 days before a primary or special primary election or 60 days before any
other election for the office sought by the candidate; and
• Is targeted to the relevant electorate in the geographic area the candidate would represent if
elected.33
Specified types of communications are exempted from the definition.34
Political advertisements, electioneering communications, and certain text message and telephone
solicitations must disclose who approved and paid for the advertisement or communication.35
Voter guides must also include the required disclaimers, as applicable, and be marked “Voter
Guide.”36 In addition, any advertisement, other than a political advertisement, independent
30
Section 106.011(4), F.S., defines “communications medium” to include broadcasting stations, newspapers, magazines,
outdoor advertising facilities, printers, direct mail, advertising agencies, the Internet, and telephone companies.
31
Section 106.011(15), F.S.
32
Id.
33
Section 106.011(8)(a), F.S.
34
See s. 106.011(8)(b), F.S.
35
Sections 106.071, 106.143, 106.1439, and 106.147, F.S. A failure to include a required disclaimer for an electioneering
communication or for a political advertisement paid for by independent expenditure constitutes a first-degree misdemeanor
(ss. 106.1439(2) and 106.071(4), F.S.). A willful failure to include a required disclaimer for other political advertisements is
subject to prescribed civil penalties (s. 106.143(11), F.S.). A willful violation of text message and telephone solicitation
requirements constitutes a first-degree misdemeanor (s. 106.147(4), F.S.).
36
Section 106.1436, F.S. The term “voter guide” means direct mail that is either an electioneering communication or a
political advertisement sent for the purpose of advocating for or endorsing particular issues or candidates by recommending
specific electoral choices to the voter or by indicating issue or candidate selections on an unofficial ballot (s. 106.1436(1),
F.S.). In addition to any other penalties provided by law, a person who fails to include the required disclaimer commits a
first-degree misdemeanor (s. 106.1436(4), F.S.).
BILL: CS/SB 702 Page 8
expenditure,37 or electioneering communication, on billboards, bumper stickers, radio, or
television, or in a newspaper, a magazine, or a periodical, intended to influence public policy or
the vote of a public official, must clearly designate the sponsor of such advertisement by
including a statement of sponsorship.38
Generally, penalties for failure to include a required disclaimer apply to a “person” as defined in
s. 106.011(14), F.S. – an individual or a corporation, association, firm, partnership, joint venture,
joint stock company, club, organization, estate, trust, business trust, syndicate or other
combination of individuals having collective capacity. The term includes a political party,
affiliated party committee, or political committee. Examples of past cases relating to existing
Florida Election Code39 requirements that apply to a “person:”
• Allowed for an officer of a political committee to be held personally liable for failure to
include a required disclaimer on a political advertisement;40
• Imposed penalties on a political consulting firm and the president of the firm for failing to
include disclaimers in, and report expenditures for, certain independent political
advertisements;41
• Imposed penalties on a political committee for exceeding contribution limits;42 and
• Allowed a corporation to be criminally charged for exceeding a contribution limit.43
Election-Related Use of Artificial Intelligence
The proliferation of Generative AI use and its outpacing of government regulation has created
concern among policymakers about its potentially negative effect on the electoral process.
Specific concerns include, but are not limited to, voter misinformation by chatbots,44 phishing
scams on election officials through AI-generated voices, and the use of deepfakes45 to deceive
voters and damage political rivals. Over time, the use of AI may also erode trust in authentic
information.46
37
Section 106.011(12)(a), F.S., defines “independent expenditure” to mean an expenditure by a person for the purpose of
expressly advocating the election or defeat of a candidate or the approval or rejection of an issue, which expenditure is not
controlled by, coordinated with, or made upon consultation with, any candidate, political committee, or agent of such
candidate or committee.
38
Section 106.1437, F.S. The section does not specify a penalty for failure to include the required statement.
39
Chapters 97-106, F.S., are known as “The Florida Election Code.” Section 97.011, F.S.
40
See Fulton v. Division of Elections, 689 So.2d 1180 (Fla. Dist. Ct. App. 1997).
41
See Guetzloe v. Florida Elections Commission, 927 So.2d 942 (Fla. Dist. Ct. App. 2006).
42
See Florida PBA-PAC v. Division of Elections, 430 So.2d 483 (Fla. Dist. Ct. App. 1983).
43
See Winn-Dixie Stores, Inc., v. State of Florida, 408 So.2d 211 (Fla. 1982).
44
IBM defines “chatbot” to mean a computer program that simulates human conversation with an end user (see What is a
Chatbot?, available at https://www.ibm.com/topics/chatbots (last visited Mar. 11, 2025)).
45
Although exact definitions of “deepfake” vary, all reflect a depiction of something that has not actually occurred. Merriam-
Webster, for example, defines “deepfake” to mean an image or recording that has been convincingly altered and manipulated
to misrepresent someone as doing or saying something that was not actually said or done (see https://www.merriam-
webster.com/dictionary/deepfake, last visited March 11, 2025).
46
National Conference of State Legislatures, Challenges Ahead for Lawmakers Seeking to Legislate AI in Campaigns,
available at https://www.ncsl.org/state-legislatures-news/details/challenges-ahead-for-lawmakers-seeking-to-legislate-ai-in-
campaigns?utm_source=national+conference+of+state+legislatures&utm_term=0_-61bea1f450-
%5blist_email_id%5d&utm_campaign=8fbf8e40e8-canvass-jan-4&utm_medium=email (last visited Mar. 11, 2025).
BILL: CS/SB 702 Page 9
In 2024, the Legislature enacted a law to regulate the use of AI in political advertising.47 If a
political advertisement, an electioneering communication, or other miscellaneous advertisement
of a political nature contains images, video, audio, graphics, or other digital content created in
whole or in part with the use of Generative AI, if the generated content appears to depict a real
person performing an action that did not actually occur, and if the generated content was created
with intent to injure a candidate or to deceive regarding a ballot issue, the political
advertisement, electioneering communication, or other miscellaneous advertisement must
prominently state the following disclaimer: “Created in whole or in part with the use of
Generative Artificial Intelligence (AI).”48 Additionally, the disclaimer must:
• For a printed communication, be stated in bold font with a font size of at least 12 points.
• For a television or video communication, be clearly readable throughout the communication
and occupy at least 4 percent of the vertical picture height.
• For an Internet public communication that includes text or graphic components, be viewable
without the user taking any action and be large enough to be clearly readable.
• For any audio component of a communication, be at least 3 seconds in length and spoken in a
clearly audible and intelligible manner at either the beginning or the end of the audio
component of the communication.
• For a graphic communication, be large enough to be clearly readable but no less than 4
percent of the vertical height of the communication.49
Florida Elections Commission
The Florida Elections Commission (commission) has jurisdiction50 to investigate and determine
violations of campaign finance laws and other specified provisions of the Florida Election
Code51 upon receipt of a report by the Division of Elections52 or a sworn complaint.53 Upon a
finding of a violation of one of the laws under its jurisdiction, the commission, or in cases
referred to the Division of Administrative Hearings, an administrative law judge, may impose
fines up to $2,500 per count.54
Provenance Data
There are various methods to make AI outputs more identifiable and traceable, which include the
following:
• Provenance refers to the origin of data or AI system outputs;
47
Ch. 2024-126, Laws of Fla.
48
Section 106.145(2), F.S.
49
Section 106.145(3), F.S.
50
For the purposes of commission jurisdiction, a violation means the willful performance of an act prohibited by ch. 104 or
106, F.S., or the willful failure to perform an act required by such chapters. Willfulness is a determination of fact. Section
106.25(3), F.S.
51
Section 106.25(2), F.S. The commission is housed within the Department of Legal Affairs, but is not subject to the
department’s control, supervision, or direction. Section 106.24(1), F.S.
52
The Division of Elections is an administrative unit of the Department of State. Section 97.021(9), F.S.
53
Section 106.25(4), F.S.
54
Section 106.265, F.S. The fine may be multiplied by a factor of 3, not to exceed $7,500, after a person commits three
counts of the same category of offense. If applicable, the commission or administrative law judge may instead impose a civil
penalty as provided in s. 104.271 or s. 106.19, F.S.
BILL: CS/SB 702 Page 10
• Authentication is a method of establishing provenance via verifiable assertions about the
origins of the content;
• Watermarking is a method of establishing provenance through “the act of embedding
information, which is typically difficult to remove, into outputs created by AI;” and
• Content labeling refers to informing people as part of the user interface about the source of
the information they are receiving.55
Data Provenance aims to help people make informed decisions about what data or content can be
confidently trusted. To do this, Data Provenance platforms track metadata while making it
immutable, transparent, and verifiable.56
The Coalition for Content Provenance and Authenticity (C2PA) is an industry-led organization
that creates technical standards to verify the origin and history of media.57 The C2PA’s goal is to
provide a mechanism for producers and custodians of any given content to assert, in a verifiable
manner, any information they wish to disclose about the creation of such content, as well as any
actions taken since the content’s creation.58
In 2020, the “Data & Trust Alliance” was established by a group of CEOs of major companies,
which is based on a shared conviction that the future of business will be powered by the
responsible use of data and AI.59 The Data & Trust Alliance created the first cross-industry
metadata standards to bring transparency to the origin of datasets used for both traditional data
and AI applications.60
Division of Emergency Management
Under the leadership of the Governor, the Florida Division of Emergency Management (DEM)
plans for and responds to both natural and man-made disasters.61 The disasters include floods,
hurricanes, and incidents involving hazardous materials or nuclear power.62 Additionally, the
DEM prepares and implements a statewide Comprehensive Emergency Management Plan, and
conducts exercises to test state and county emergency response capabilities.63
55
National Telecommunications and Information Administration, AI Output Disclosures: Use, Provenance, Adverse
Incidents, Mar. 27, 2024, available at https://www.ntia.gov/issues/artificial-intelligence/ai-accountability-policy-
report/developing-accountability-inputs-a-deeper-dive/information-flow/ai-output-
disclosures#:~:text=Watermarking%20is%20a%20method%20for,output%20or%20the%20identity%20or (last visited Mar.
11, 2025).
56
Data Trails, What is Data Provenance, Jan. 30, 2024, available at https://www.datatrails.ai/what-is-data-provenance/ (last
visited Mar. 11, 2025).
57
Coalition for Content Provenance and Authenticity, Overview, available at
https://c2pa.org/#:~:text=The%20Coalition%20for%20Content%20Provenance,media%20creation%2C%20publication%20a
nd%20sharing. (last visited Mar. 11, 2025).
58
Coalition for Content Provenance and Authenticity, Guiding Principles, available at https://c2pa.org/principles/ (last
visited Mar. 11, 2025).
59
The Data & Trust Alliance, About D&TA, available at https://dataandtrustalliance.org/about (last visited Mar. 11, 2025).
60
The Data & Trust Alliance, Latest Work, available at https://dataandtrustalliance.org/work (last visited Mar. 11, 2025).
61
Florida Division of Emergency Management, About the Division, available at https://www.floridadisaster.org/dem/about-
the-division/ (last visited Mar. 11, 2025).
62
Id.
63
Id.
BILL: CS/SB 702 Page 11
Florida Deceptive and Unfair Trade Practices Act
History and Purpose
The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) became law in 1973.64 The
FDUTPA is a consumer and business protection measure that prohibits unfair methods of
competition, unconscionable acts or practices, and unfair or deceptive acts or practices in trade or
commerce.65 The FDUTPA is based on federal law, and s. 501.204(2), F.S., provides that it is the
intent of the Legislature that due consideration and great weight must be given to the
interpretations of the Federal Trade Commission and the federal courts relating to section 5 of
the Federal Trade Commission Act.66
The State Attorney or the Department of Legal Affairs may bring actions when it is in the public
interest on behalf of consumers or governmental entities.67 The Office of the State Attorney may
enforce violations of the FDUTPA if the violations take place in its jurisdiction.68 The
Department of Legal Affairs has enforcement authority if the violation is multi-jurisdictional, the
state attorney defers in writing, or the state attorney fails to act within 90 days after a written
complaint is filed.69 Consumers may also file suit through private actions.70
Remedies under the FDUTPA
The Department of Legal Affairs and the State Attorney, as enforcing authorities, may seek the
following remedies:
• Declaratory judgments.
• Injunctive relief.
• Actual damages on behalf of consumers and businesses.
• Cease and desist orders.
• Civil penalties of up to $10,000 per willful violation.71
Remedies for private parties are limited to the following:
• A declaratory judgment and an injunction where a person is aggrieved by a FDUTPA
violation.
• Actual damages, attorney fees, and court costs, where a person has suffered a loss due to a
FDUTPA violation.72
64
Ch. 73-124, Laws of Fla.; codified at part II of ch. 501, F.S.
65
See s. 501.202, F.S. Trade or commerce means the advertising, soliciting, providing, offering, or distributing, whether by
sale, rental, or otherwise, of any good or service, or any property, whether tangible or intangible, or any other article,
commodity, or thing of value, wherever situated. “Trade or commerce” shall include the conduct of any trade or commerce,
however denominated, including any nonprofit or not-for-profit person or activity. See s. 501.203(8), F.S.
66
See s 501.204(2), F.S.
67
See ss. 501.203(2), 501.206, and 501.207, F.S.
68
Section 501.203(2), F.S.
69
Id.
70
Section 501.211, F.S.
71
Sections 501.207(1), 501.208, and 501.2075, F.S. Civil Penalties are deposited into general revenue. Section 501.2075,
F.S. Enforcing authorities may also request attorney fees and costs of investigation or litigation. Section 501.2105, F.S.
72
Section 501.211(1) and (2), F.S.
BILL: CS/SB 702 Page 12
III. Effect of Proposed Changes:
Provenance Data Definition
Section 1 of the bill amends s. 106.145, F.S., to define “provenance data” as information
identifying whether some or all of the content has been derived through generative artificial
intelligence and, if so, the name of the generative artificial intelligence tool used to generate such
content and the organization that developed such tool.
Election Campaign Content
The bill requires any content purporting to feature an electoral candidate which can be viewed,
heard, or accessed online to include digital provenance data if such content was created by
generative artificial intelligence.
Digital Content Provenance Pilot Program
Section 2 of the bill creates s. 252.353, F.S., to establish a digital content provenance pilot
program within the DEM. The purpose of the pilot program is to enhance the security and
authenticity of digital content used in emergency management operations through the inclusion
of provenance data.
The bill requires the DEM to include a conspicuous indicator with an encoded link allowing a
user to access provenance data on all digital images and videos created by the DEM on or after
July 1, 2025. Additionally, by November 15, 2026, the DEM must submit to the President of the
Senate and the Speaker of the House of Representatives a report that includes information
concerning the pilot program, including whether the integration of provenance data can be scaled
effectively within the DEM’s digital content library and recommendations for other valuable
uses of provenance data and credentialing the could be implemented within other agencies. This
section is repealed June 30, 2027.
Provenance Data of Digital Content
Section 3 of the bill creates s. 501.9741, F.S., and provides the following definitions:
• “Application tool” means a tool or service that enables the user to apply provenance data,
either directly or through the use of third-party technology, to any data that has been
modified to include synthetic content.
• “Capture device” means a device that can record any visual or audio digital content,
including, but not limited to, a camera, a cellular phone with a camera, a microphone, or an
audio or video recorder.
• “Generative artificial intelligence” has the same meaning as in s. 106.145(1), F.S.73
• “Generative artificial intelligence tool” means a product or feature that uses generative
artificial intelligence to create visual or audio digital content.
73
Section 106.145(1), F.S., defines “generative artificial intelligence” as a machine-based system that can, for a given set of
human-defined objectives, emulate the structure and characteristics of input data in order to generate derived synthetic
content including images, videos, audio, text, and other digital content.
BILL: CS/SB 702 Page 13
• “Provenance data” has the same meaning as in s. 106.145(1), F.S.74
• “Provenance reader” means a tool or service that allows users to identify the provenance data
of visual or audio digital content.
• “Synthetic content” means any visual or audio content that has been produced or modified by
a generative artificial intelligence tool.
The bill requires the provider of a generative artificial intelligence tool to apply provenance data,
either directly or through the use of third-party technology, to synthetic content wholly generated
by the provider’s artificial intelligence tool. The provider of such tool must make the following
available to the public:
• An application tool that can determine whether content is synthetic content; and
• A free provenance reader that can view provenance information for synthetic content.
The bill prohibits provenance data from including any personal identifying information or any
unique device, system, or service information which is reasonably capable of being associated
with a particular user, unless directed by the user.
The bill requires a social media platform75 to retain all available provenance data of any
suspected synthetic content, and requires such platform to make such data available to platform
users through a conspicuous indicator with an encoded link.
The bill requires a capture device sold in Florida to have an option to record provenance data of
any suspected synthetic content. The manufacturer of a capture device must ensure that such
provenance data can be read by third-party applications.
The bill provides that a violation of this section constitutes an unfair or deceptive act or practice,
and requires enforcement by the Attorney General. Additionally, the Department of Legal
Affairs must notify the provider of the generative artificial intelligence system, the manufacturer
of a capture device, or the social media platform of any suspected violation, and allow the
provider 30 calendar days to cure the alleged violation before initiating enforcement action.
The bill takes effect July 1, 2025.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
74
“Provenance data” is defined as information identifying whether some or all of the content has been derived through
generative artificial intelligence and, if so, the name of the generative artificial intelligence tool used to generate such content
and the organization that developed such tool.
75
Section 501.2041(1), F.S., defines “social media platform” as any information service, system, Internet search engine, or
access software provider that: (1) provides or enables computer access by multiple users to a computer server, including an
Internet platform or a social media site; (2) operates as a sole proprietorship, partnership, limited liability company,
corporation, association, or other legal entity; (3) does business in Florida; and (4) satisfies at least one of the following
thresholds: (1) has annual gross revenues in excess of $100 million, as adjusted in January of each odd-numbered year to
reflect any increase in the Consumer Price Index; or (2) has at least 100 million monthly individual platform participants
globally.
BILL: CS/SB 702 Page 14
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
The First Amendment of the U.S. Constitution promotes the free exchange of ideas and
information by prohibiting the government from restricting speech because of the
message expressed.76 Content-based restrictions are presumptively invalid.77 Among
specific rights, the First Amendment protects the right to associate for expressive or
political activity. The government may infringe upon this right only if it has a compelling
interest unrelated to the suppression of speech and if the interest cannot be achieved
through significantly less restrictive means.78
This bill does not prohibit or restrict the content of speech generated by AI. Instead, it
requires a social media company to retain all available provenance data of any suspected
synthetic content, and make such data available to platform users through a conspicuous
indicator.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Social media platforms will be required to retain all available provenance data of any
suspected synthetic content, and make such data available to platform users through a
conspicuous indicator with an encoded link.
Sellers of a capture device in Florida will be required to allow an option to include
provenance data on any suspected synthetic content. Additionally, the manufacturer of a
capture device sold in Florida must ensure that such provenance data can be read by
third-party applications.
76
See, e.g., Texas v. Johnson (491 U.S. 397 (1989); State v. T.B.D., 656 So.2d 479 (Fla. 1995).
77
See, e.g., Police Dept. of Chicago v. Mosley, 408 U.S. 92 (1972).
78
City of Dallas v. Stanglin, 490 U.S. 19 (1989).
BILL: CS/SB 702 Page 15
C. Government Sector Impact:
The Division of Emergency Management will be responsible for implementing the
Digital Content Provenance Pilot Program.
VI. Technical Deficiencies:
None.
VII. Related Issues:
The bill requires social media platforms to retain all available provenance data of any suspected
synthetic content, and make such data available to platform users through a conspicuous
indicator with an encoded link. However, the meaning of “conspicuous indicator” may not be
clear, and may be interpreted differently across platforms.
The definition of “capture device” is broad enough to include many types of consumer electronic
devices.
The provider of a generative artificial intelligence tool must apply provenance data to synthetic
content “wholly” generated by the provider’s generative artificial intelligence tool; any synthetic
content not “wholly created” by a generative AI would not be required to be available to the
public by a provider.
VIII. Statutes Affected:
This bill substantially amends section 106.145 of the Florida Statutes.
The bill creates the following sections of the Florida Statutes: 252.353 and 501.9741.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on March 10, 2025
The committee substitute changes the definition of "provenance data,” and requires any
content purporting to feature an electoral candidate which can be viewed, heard, or
accessed online to include digital provenance data if such content was created by
generative AI.
The committee substitute provides that all digital images and videos created by the DEM
on or after July 1, 2025, must include a conspicuous indicator with an encoded link
allowing a user to access provenance data. By November 15, 2026, the DEM must submit
a report that includes information concerning the digital content provenance pilot
program to the President of the Senate and the Speaker of the House of Representatives.
BILL: CS/SB 702 Page 16
The committee substitute defines "synthetic content" as any visual or audio content that
has been produced or modified by a generative AI intelligence tool. The provider of a
generative AI tool is required to apply provenance data, either directly or through the use
of third-party technology, to synthetic content wholly generated by the provider's
generative AI tool. The provider of a generative AI tool is required to make available to
the public an application tool that can determine whether an image, video, or audio
content is synthetic content, as well as have a free provenance reader that can view
provenance information.
The committee substitute prohibits provenance data from including any personal
identifying information or any unique device, system, or service information which is
reasonably capable of being associated with a particular user, unless directed by the user.
A social media platform is required to retain all available provenance data of any
suspected synthetic content. Additionally, a capture device sold in Florida is required to
have an option to record provenance data of any suspected synthetic content.
The committee substitute requires the Department of Legal Affairs to notify the provider
of the generative AI system, the manufacturer of a capture device, or the social media
platform of any suspected violation, as well as allow the provider 30 calendar days to
cure an alleged violation.
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 - 2025 COMMITTEE AMENDMENT Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 702 Bill No. SB 702
Ì196458SÎ196458 Ì196458SÎ196458
LEGISLATIVE ACTION 11 (a) “Generative artificial intelligence” means a machine-
Senate . House 12 based system that can, for a given set of human-defined
Comm: RCS . 13 objectives, emulate the structure and characteristics of input
03/10/2025 . 14 data in order to generate derived synthetic content including
. 15 images, videos, audio, text, and other digital content.
. 16 (b) “Provenance data” means information identifying whether
. 17 some or all of the content has been derived through generative
18 artificial intelligence and, if so, the name of the generative
19 artificial intelligence tool used to generate such content and
20 the organization that developed such tool.
21 (4) Any content purporting to feature an electoral
22 candidate which can be viewed, heard, or accessed online must
23 include digital provenance data if such content was created by
24 generative artificial intelligence, as defined in s. 106.145(1).
25 (5)(4)(a) In addition to any civil penalties provided by
The Committee on Commerce and Tourism (Burgess) recommended the 26 law, a person identified pursuant to another disclaimer required
following: 27 under this chapter as paying for, sponsoring, or approving a
28 political advertisement, an electioneering communication, or an
1 Senate Amendment (with title amendment) 29 other miscellaneous advertisement of a political nature which is
2 30 required to contain the disclaimer prescribed under subsection
3 Delete everything after the enacting clause 31 (2) in this section and who fails to include the required
4 and insert: 32 disclaimer commits a misdemeanor of the first degree, punishable
5 Section 1. Present subsection (4) of section 106.145, 33 as provided in s. 775.082 or s. 775.083.
6 Florida Statutes, is redesignated as subsection (5), a new 34 Section 2. Section 252.353, Florida Statutes, is created to
7 subsection (4) is added to that section, and subsection (1) and 35 read:
8 paragraph (a) of present subsection (4) are amended, to read: 36 252.353 Digital content provenance pilot program.—
9 106.145 Use of artificial intelligence.— 37 (1) There is established within the division a digital
10 (1) As used in this section, the term: 38 content provenance pilot program. The purpose of the pilot
39 program is to enhance the security and authenticity of digital
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Florida Senate - 2025 COMMITTEE AMENDMENT Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 702 Bill No. SB 702
Ì196458SÎ196458 Ì196458SÎ196458
40 content used in emergency management operations through the 69 (d) “Generative artificial intelligence tool” means a
41 inclusion of provenance data. 70 product or feature that uses generative artificial intelligence
42 (2) For all digital images and videos created by the 71 to create visual or audio digital content.
43 division on or after July 1, 2025, the division shall include a 72 (e) “Provenance data” has the same meaning as in s.
44 conspicuous indicator with an encoded link allowing a user to 73 106.145(1).
45 access provenance data. 74 (f) “Provenance reader” means a tool or service that allows
46 (3) By November 15, 2026, the division shall submit to the 75 users to identify provenance data of visual or audio digital
47 President of the Senate and the Speaker of the House of 76 content.
48 Representatives a report that includes information concerning 77 (g) “Synthetic content” means any visual or audio content
49 the pilot program, including whether the integration of 78 that has been produced or modified by a generative artificial
50 provenance data can be scaled effectively within the division’s 79 intelligence tool.
51 digital content library and recommendations for other valuable 80 (2) The provider of a generative artificial intelligence
52 uses of provenance data and credentialing that could be 81 tool must apply provenance data, either directly or through the
53 implemented within other agencies. 82 use of third-party technology, to synthetic content wholly
54 (4) This section shall stand repealed on June 30, 2027. 83 generated by the provider’s generative artificial intelligence
55 Section 3. Section 501.9741, Florida Statutes, is created 84 tool.
56 to read: 85 (3) The provider of a generative artificial intelligence
57 501.9741 Provenance data of digital content.— 86 tool must make available to the public:
58 (1) As used in this section, the term: 87 (a) An application tool that can determine whether an
59 (a) “Application tool” means a tool or service that enables 88 image, a video, or audio content, or content that is any
60 the user to apply provenance data, either directly or through 89 combination thereof, is synthetic content.
61 the use of third-party technology, to any digital content that 90 (b) A free provenance reader that can view provenance
62 has been modified to include synthetic content. 91 information for synthetic content.
63 (b) “Capture device” means a device that can record any 92 (4) Provenance data may not include any personal
64 visual or audio digital content, including, but not limited to, 93 identifying information or any unique device, system, or service
65 a camera, a cellular phone with a camera, a microphone, or an 94 information which is reasonably capable of being associated with
66 audio or video recorder. 95 a particular user, unless directed by the user.
67 (c) “Generative artificial intelligence” has the same 96 (5) A social media platform as defined in s. 501.2041 shall
68 meaning as in s. 106.145(1). 97 retain all available provenance data of any suspected synthetic
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Florida Senate - 2025 COMMITTEE AMENDMENT Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 702 Bill No. SB 702
Ì196458SÎ196458 Ì196458SÎ196458
98 content. Social media platforms shall make such data available 127 creating a digital content provenance pilot program
99 to platform users through a conspicuous indicator with an 128 within the Division of Emergency Management; providing
100 encoded link on such content. 129 the pilot program’s purpose; requiring the division to
101 (6) A capture device sold in this state must have an option 130 include a conspicuous indicator with an encoded link
102 to record provenance data of any suspected synthetic content. 131 on the digital images and videos it creates after a
103 The manufacturer of a capture device sold in this state must 132 specified date to allow users to access provenance
104 ensure that such provenance data can be read by third-party 133 data; requiring the division to submit an annual
105 applications. 134 report to the Legislature by a specified date;
106 (7) A violation of this section constitutes an unfair or 135 specifying requirements for the report; providing for
107 deceptive act or practice as described in s. 501.204. The 136 future repeal; creating s. 501.9741, F.S.; defining
108 Attorney General shall enforce this section. The Department of 137 terms; requiring a provider of a generative artificial
109 Legal Affairs shall notify the provider of the generative 138 intelligence tool to apply provenance data, either
110 artificial intelligence system, the manufacturer of a capture 139 directly or through a third-party technology, to
111 device, or the social media platform of any suspected violation, 140 synthetic content wholly generated by the provider’s
112 and allow the provider 30 calendar days to cure the alleged 141 generative artificial intelligence tool; requiring a
113 violation before initiating enforcement action. 142 provider of a generative artificial intelligence tool
114 Section 4. This act shall take effect July 1, 2025. 143 to make available to the public specified tools and
115 144 readers to determine whether certain content was
116 ================= T I T L E A M E N D M E N T ================ 145 created by the provider’s generative artificial
117 And the title is amended as follows: 146 intelligence tool; prohibiting the inclusion of
118 Delete everything before the enacting clause 147 certain information in provenance data which is
119 and insert: 148 reasonably capable of being associated with a
120 A bill to be entitled 149 particular user, unless directed by the user;
121 An act relating to provenance of digital content; 150 requiring social media platforms to retain provenance
122 amending s. 106.145, F.S.; defining the term 151 data of synthetic content provided to or posted on its
123 “provenance data”; requiring that certain content 152 platform; requiring social media platforms to make
124 created by generative artificial intelligence 153 such data available to platform users through a
125 purporting to depict an electoral candidate include 154 conspicuous indicator on such content; requiring that
126 digital provenance data; amending s. 252.353, F.S.; 155 a capture device sold in this state have an option to
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Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. SB 702
Ì196458SÎ196458
156 record provenance data of certain content; requiring
157 manufacturers of such capture devices to ensure
158 provenance data can be read by third-party
159 applications; providing that a violation of this
160 section is an unfair or deceptive act or practice;
161 requiring the Attorney General to enforce this
162 section; requiring the Department of Legal Affairs to
163 notify any person suspected of violating this section
164 and allow them to cure such violations within a
165 specified timeframe before initiating enforcement
166 action; providing an effective date.
Page 7 of 7
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Florida Senate - 2025 SB 702 Florida Senate - 2025 SB 702
By Senator Burgess
23-00603A-25 2025702__ 23-00603A-25 2025702__
1 A bill to be entitled 30 subsection (4) is added to that section, and subsection (1) and
2 An act relating to provenance of digital content; 31 present subsection (4) of that section are amended, to read:
3 amending s. 106.145, F.S.; defining the term 32 106.145 Use of artificial intelligence.—
4 “provenance data”; requiring that certain content 33 (1) As used in this section, the term:
5 include provenance data; creating s. 252.353, F.S.; 34 (a) “Generative artificial intelligence” means a machine-
6 creating a digital content provenance pilot program 35 based system that can, for a given set of human-defined
7 within the Division of Emergency Management; providing 36 objectives, emulate the structure and characteristics of input
8 the pilot program’s purpose; requiring the division to 37 data in order to generate derived synthetic content including
9 adopt rules; requiring the division to submit an 38 images, videos, audio, text, and other digital content.
10 annual report to the Legislature by a specified date; 39 (b) “Provenance data” means information that records the
11 specifying requirements for the report; providing for 40 origin of a piece of visual or audio digital content and the
12 future repeal; creating s. 501.9741, F.S.; defining 41 history of modifications to such content which is in a format
13 terms; requiring that provenance data be included on 42 that is compliant with widely adopted guidelines or
14 specified data; requiring providers of certain 43 specifications promulgated by an established standard-setting
15 artificial intelligence tools to make application 44 body. The term includes, but is not limited to, information
16 tools and provenance readers available to the public; 45 identifying whether some or all of the content has been derived
17 requiring certain social media platforms to retain and 46 through generative artificial intelligence and, if so, the name
18 make available certain provenance data; requiring that 47 of the generative artificial intelligence tool used to generate
19 certain capture devices allow an option to include 48 such content and the organization that developed such tool.
20 provenance data on certain content; providing a 49 (4) Any content regarding an election or purporting to
21 requirement for the manufacturer of such devices; 50 feature a candidate which can be viewed, heard, or accessed
22 providing that a violation constitutes an unfair or 51 online must carry digital provenance data.
23 deceptive act or practice; providing an effective 52 (5)(a)(4)(a) In addition to any civil penalties provided by
24 date. 53 law, a person identified pursuant to another disclaimer required
25 54 under this chapter as paying for, sponsoring, or approving a
26 Be It Enacted by the Legislature of the State of Florida: 55 political advertisement, an electioneering communication, or any
27 56 other an other miscellaneous advertisement of a political nature
28 Section 1. Present subsection (4) of section 106.145, 57 which is required to contain the disclaimer prescribed under
29 Florida Statutes, is redesignated as subsection (5), a new 58 subsection (2) in this section and who fails to include the
Page 1 of 5 Page 2 of 5
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2025 SB 702 Florida Senate - 2025 SB 702
23-00603A-25 2025702__ 23-00603A-25 2025702__
59 required disclaimer commits a misdemeanor of the first degree, 88 Legislature.
60 punishable as provided in s. 775.082 or s. 775.083. 89 Section 3. Section 501.9741, Florida Statutes, is created
61 (b) Any person may file a complaint with the Florida 90 to read:
62 Elections Commission pursuant to s. 106.25 alleging a violation 91 501.9741 Provenance data of digital content.—
63 of this section. The commission shall adopt rules to provide an 92 (1) As used in this section, the term:
64 expedited hearing of complaints filed under this section, or, in 93 (a) “Application tool” means a tool or service that enables
65 cases referred to the Division of Administrative Hearings 94 the user to apply provenance data, either directly or through
66 pursuant to s. 106.25(5), the director shall assign an 95 the use of third-party technology, to any data that has been
67 administrative law judge to provide an expedited hearing. 96 modified to include synthetic content.
68 Section 2. Section 252.353, Florida Statutes, is created to 97 (b) “Capture device” means a device that can record any
69 read: 98 visual or audio digital content, including, but not limited to,
70 252.353 Digital content provenance pilot program.— 99 a camera, a cellular phone with a camera, a microphone, or an
71 (1) There is established within the division a digital 100 audio or video recorder.
72 content provenance pilot program. The purpose of the pilot 101 (c) “Generative artificial intelligence” has the same
73 program is to enhance the security and authenticity of digital 102 meaning as in s. 106.145(1).
74 content used in emergency management operations through the 103 (d) “Generative artificial intelligence tool” means a
75 inclusion of provenance data as defined in s. 106.145(1). 104 product or feature that uses generative artificial intelligence
76 (2) The division shall adopt rules necessary to implement 105 to create visual or audio digital content.
77 the pilot program. 106 (e) “Provenance data” has the same meaning as in s.
78 (3) By December 1 of each year, the division shall submit 107 106.145(1).
79 to the President of the Senate and the Speaker of the House of 108 (f) “Provenance reader” means a tool or service that allows
80 Representatives a report that includes information concerning 109 users to identify the provenance data of visual or audio digital
81 the pilot program and whether any changes should be made to the 110 content.
82 pilot program which would increase its effectiveness. In the 111 (2) Provenance data must be included on any synthetic data
83 report submitted by December 1, 2029, the division shall include 112 wholly created by a generative artificial intelligence tool. The
84 a recommendation of whether the pilot program should be 113 provider of such artificial intelligence tool shall make
85 continued, terminated, or expanded. 114 available to the public:
86 (4) This section shall stand repealed on June 30, 2030, 115 (a) An application tool.
87 unless reviewed and saved from repeal through reenactment by the 116 (b) A free provenance reader.
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Florida Senate - 2025 SB 702
23-00603A-25 2025702__
117 (3) A social media platform as defined in s. 501.2041(1)
118 shall retain all available provenance data of visual or audio
119 digital content provided to or posted on such platform and make
120 such data available to users of the platform through a
121 conspicuous indicator.
122 (4) A capture device sold in this state must allow an
123 option to include provenance data on any visual or audio digital
124 content recorded with such device. The manufacturer of a capture
125 device must ensure that such provenance data can be read by
126 third-party applications.
127 (5) A violation of this section constitutes an unfair or
128 deceptive act or practice as specified in s. 501.204.
129 Section 4. This act shall take effect July 1, 2025.
Page 5 of 5
CODING: Words stricken are deletions; words underlined are additions.
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The Florida Senate
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BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1244
INTRODUCER: Senator Calatayud
SUBJECT: Research and Development Tax Credit
DATE: March 10, 2025 REVISED: 03/10/25
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Favorable
2. FT
3. AP
I. Summary:
SB 1244 increases the combined amount of tax credits which may be awarded to qualified
businesses for research and development under s. 220.196, F.S., from $9 million to $50 million
in any calendar year and provides that the increase first applies to the 2026 allocation of tax
credits for expenses incurred in the 2025 calendar year.
The Revenue Estimating Conference (REC) reviewed the bill on March 7, 2025, and determined
the bill would reduce General Revenue receipts by $41 million in Fiscal Year 2025-2026 and by
$41 million in future years.
The bill takes effect July 1, 2025.
II. Present Situation:
Federal Tax Credit
The U.S. Research and Experimentation Tax Credit (R&D)1 was created in 1981 as part of the
Economic Recovery Tax Act, a comprehensive package of initiatives designed to boost U.S.
business competitiveness and encourage American taxpayers' investment and savings during an
economic recession.2 In 2015, the Protecting Americans from Tax Hikes (PATH) Act
permanently extended the R&D after 16 temporary extensions.3
1
The U.S. Research and Experimentation Tax Credit is also known as the Research and Development Tax Credit, 26 U.S.C.
§ 41, Credit for increasing research activities.
2
Francisco Moris, National Science Foundation Report, The U.S. Research and Experimentation Tax Credit in the 1990s
(July 2005), available at https://wayback.archive-
it.org/5902/20150627200929/http:/www.nsf.gov/statistics/infbrief/nsf05316/ (last visited March 7, 2025).
3
U.S. Department of Treasury, Office of Tax Analysis, Research and Experimentation (R&E) Credit, Oct. 12, 2016,
available at https://home.treasury.gov/system/files/131/RE-Credit.pdf (last visited March 7, 2025).
BILL: SB 1244 Page 2
In September 2021, the Internal Revenue Service (IRS) issued a Memorandum containing new
guidance for taxpayers applying for a research credit refund. The memorandum described new
requirements for increased documentation and more detailed information, including a declaration
under the penalty of perjury verifying that the information and facts provided by the taxpayer are
accurate.4 To qualify as a valid research credit claim request, the taxpayer, at a minimum must:
• Identify all the business components to which the I.R.C. § 41 research credit claim relates for
that year.
• For each business component,
o Identify all research activities performed;
o Identify all individuals who performed each research activity; and
o Identify all the information each individual sought to discover.
• Provide the total qualified employee wage expenses, total qualified supply expenses, and
total qualified contract research expenses for the claim year.5
These changes remained in a grace period until January 10, 2022. Then, they transitioned to a
one-year transition period, which was subsequently extended for an additional two years through
January 10, 2025. During this period, the IRS provided taxpayers 45 days to perfect research
credit claims for refund prior to a final determination by the IRS.6
Florida Tax Credit
Florida law authorizes an R&D tax credit against state corporate income taxes for certain
businesses with qualified research expenses.7 Under the federal definition, a qualified research
expense includes in-house research expenses, including any wages paid or incurred to
employees, supplies used in the conduct of qualified research, and any amounts paid or incurred
to another person for the right to use computers in the conduct of qualified research.8
A business is eligible for the tax credit if it:
• Has qualified research expenses in Florida in the taxable year exceeding the base amount;9
• Claims, and is allowed, a research credit for such qualified expenses under federal law for the
same taxable year; and
4
Internal Revenue Service, Office of the Chief Counsel, Memorandum Relating to I.R.C. § 41 Research Credit Refund
Claims (September 17, 2021), available at https://www.irs.gov/pub/irs-lafa/20214101f.pdf (last visited March 7, 2025).
5
Id.
6
Internal Revenue Service, Research Credit Claims (Section 41) on Amended Returns Frequently Asked Questions, available
at https://www.irs.gov/businesses/corporations/research-credit-claims-section-41-on-amended-returns-frequently-asked-
questions#:~:text=The%20IRS%20provided%20a%20grace,Research%20Credit%20claims%20for%20refund. (last visited
March 7, 2025).
7
Section 220.196(1)(c), F.S. “Qualified research expenses” is defined as research expenses qualifying for the credit under
federal law for in-house research expenses incurred in Florida or contract research expenses incurred in Florida.
8
See 26 U.S.C. § 41(b). Credit for increasing qualified research; qualified research expenses.
9
“Base amount” means the average of the business’ qualified research expenses in Florida allowed under 26 U.S.C s. 41 for
the preceding 4 taxable years. Section 220.196(1)(a), F.S.
BILL: SB 1244 Page 3
• Is a qualified target industry as defined in former s. 288.106(2)(n) (2022), F.S.,10 specifically
manufacturing, life sciences, information technology, aviation and aerospace, homeland
security and defense, cloud information technology, marine sciences, materials sciences, or
nanotechnology.11
The tax credit is 10 percent of the difference between the current tax year’s R&D expenditures in
Florida and the average of R&D expenditures over the previous four tax years. However, if the
business has existed for fewer than four years, then the credit amount is reduced by 25 percent
for each year the business or predecessor corporation did not exist.12 The state tax credit taken in
any taxable year may not exceed 50 percent of the company’s remaining net corporate income
tax liability under ch. 220, F.S., after all other credits to which the business is entitled have been
applied.13 Any unused credits may be carried forward by the business for up to five years
following the year in which the qualified research expenses were incurred.14
Currently, the maximum amount of R&D credits that may be approved by the Department of
Revenue (DOR) during any calendar year is $9 million. Applications for the credit may be filed
with the DOR on or after March 20 and before March 27 for qualified research expenses incurred
within the preceding calendar year. If the total amount of credits applied for exceeds the annual
cap, credits are allocated on a prorated basis.15 Eligible taxpayers are notified of the amount of
credit allocated to them and the year for which the credit may be claimed.
According to the DOR’s 2024 R&D Allocation Report (the latest report available), for calendar
year 2023, the DOR received 153 applications requesting a total of $88,468,627 in credit. Of the
153 applications, 141 were approved, with the applicants receiving an allocation of the available
$9 million in credit. Each applicant received approximately 10.9 percent of the amount of credit
determined in their applications. The 141 approved applications requested $82,659,847 in
credit.16
III. Effect of Proposed Changes:
The bill amends s. 220.196, F.S., to increase the total amount of annual R&D credits available
each calendar year from $9 million to $50 million in any calendar year and provides that the
increase first applies to the 2026 allocation of tax credits for expenses incurred in the 2025
calendar year.
The bill removes obsolete language relating to the 2018 calendar year.
The bill takes effect July 1, 2025.
10
A target industry business is defined as a corporate headquarters business or any business that is engaged in one of the
target industries identified pursuant to criteria developed by the Department of Commerce. Former s. 288.106(2)(n), F.S. The
Qualified Target Industry Tax Refund Program was repealed in 2023 by ch. 2023-173, Laws of Fla.
11
See s. 220.196(2)(a)3., F.S.
12
Section 220.196(2)(b), F.S.
13
Section 220.196(2)(c), F.S.
14
Section 220.196(2)(d), F.S.
15
Section 220.196(2)(e), F.S.
16
Department of Revenue, Research and Development Tax Credit for Florida Corporate Income Tax, 2024 Allocation
Report, available at https://floridarevenue.com/taxes/Documents/flCitRDCredit.pdf (last visited March 7, 2025).
BILL: SB 1244 Page 4
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, section 18 of the Florida Constitution requires a two-thirds vote of the
membership of each house of the Legislature requiring counties and municipalities to
spend funds, limit their ability to raise revenue, or reduce the percentage of a state tax
shared with them. This bill does not require counties and municipalities to spend funds,
limit their ability to raise revenue, or reduce the percentage of a shared state tax.
Therefore, the provisions of Article VII, section 18 of the Florida Constitution do not
apply.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
The bill does not create or raise a state tax or fee. Therefore, the requirements of Art. VII,
s. 19 of the Florida Constitution do not apply.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The REC reviewed the bill on March 7, 2025, and determined the bill would reduce
General Revenue receipts by $41 million in Fiscal Year 2025-2026 and by $41 million in
future years.
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
BILL: SB 1244 Page 5
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 220.196 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2025 SB 1244
By Senator Calatayud
38-00902-25 20251244__
1 A bill to be entitled
2 An act relating to the research and development tax
3 credit; amending s. 220.196, F.S.; increasing the
4 total amount of tax credits that may be provided to
5 business enterprises under the research and
6 development tax credit; deleting an obsolete
7 provision; providing applicability; providing an
8 effective date.
9
10 Be It Enacted by the Legislature of the State of Florida:
11
12 Section 1. Paragraph (e) of subsection (2) of section
13 220.196, Florida Statutes, is amended to read:
14 220.196 Research and development tax credit.—
15 (2) TAX CREDIT.—
16 (e) The combined total amount of tax credits which may be
17 granted to all business enterprises under this section during
18 any calendar year is $50 $9 million, except that the total
19 amount that may be awarded in the 2018 calendar year is $16.5
20 million. Applications may be filed with the department on or
21 after March 20 and before March 27 for qualified research
22 expenses incurred within the preceding calendar year. If the
23 total credits for all applicants exceed the maximum amount
24 allowed under this paragraph, the credits must shall be
25 allocated on a prorated basis.
26 Section 2. The amendment made by this act to s. 220.196,
27 Florida Statutes, first applies to the 2026 allocation of tax
28 credits for expenses incurred in calendar year 2025.
29 Section 3. This act shall take effect July 1, 2025.
Page 1 of 1
CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
3110125 APPEARANCE RECORD sB 1244
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Street
Tallahassee FL 32301
City State Zip
:
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The Florida Senate
March 10 1244
APPEARANCE RECORD
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Stteet
Tallahassee FI 32303
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