Florida Senate - 2013                                    SB 1274
       
       
       
       By Senator Clemens
       
       
       
       
       27-01014A-13                                          20131274__
    1                        A bill to be entitled                      
    2         An act relating to corporations; providing a directive
    3         to the Division of Law Revision and Information;
    4         amending s. 607.1302, F.S.; providing that the
    5         amendment of articles of incorporation or the merger,
    6         conversion, or share exchange of a social purpose or
    7         benefit corporation entitles the shareholders to
    8         appraisal rights; providing a directive to the
    9         Division of Law Revision and Information; creating s.
   10         607.501, F.S.; providing application and effect;
   11         creating s. 607.502, F.S.; providing definitions;
   12         creating s. 607.503, F.S.; establishing requirements
   13         for the formation of a social purpose corporation;
   14         creating s. 607.504, F.S.; providing procedures for an
   15         existing corporation to become a social purpose
   16         corporation; creating s. 607.505, F.S.; providing
   17         procedures for the termination of a social purpose
   18         corporation; creating s. 607.506, F.S.; requiring that
   19         the corporate purpose must be to create a public
   20         benefit; providing criteria; creating s. 607.507,
   21         F.S.; requiring that the directors of a social purpose
   22         corporation meet a standard of conduct; providing
   23         criteria for the standards; creating s. 607.508, F.S.;
   24         authorizing the articles of incorporation of a social
   25         purpose corporation to provide for a benefit director;
   26         providing powers and duties of a benefit director;
   27         creating s. 607.509, F.S.; requiring that the officers
   28         of a social purpose corporation meet a standard of
   29         conduct; providing criteria for the standards of
   30         conduct; creating s. 607.510, F.S.; authorizing a
   31         social purpose corporation to designate an officer as
   32         a benefit officer; providing for the powers and duties
   33         of a benefit officer; creating s. 607.511, F.S.;
   34         authorizing certain legal actions to be brought
   35         against a social purpose corporation, its officers, or
   36         its directors; creating s. 607.512, F.S.; requiring
   37         the board of directors to prepare an annual benefit
   38         report; providing criteria for the preparation of the
   39         report; creating s. 607.513, F.S.; establishing
   40         requirements for the availability and dissemination of
   41         the annual report; authorizing a court to order
   42         dissemination of the report; providing criteria;
   43         providing a directive to the Division of Law Revision
   44         and Information; creating s. 607.601, F.S.; providing
   45         for application and effect; creating s. 607.602, F.S.;
   46         providing definitions; creating s. 607.603, F.S.;
   47         establishing requirements for the formation of a
   48         benefit corporation; creating s. 607.604, F.S.;
   49         providing procedures for an existing corporation to
   50         become a benefit corporation; creating s. 607.605,
   51         F.S.; providing procedures for the termination of a
   52         benefit corporation; creating s. 607.606, F.S.;
   53         requiring that the corporate purpose be to create a
   54         public benefit; providing criteria; creating s.
   55         607.607, F.S.; requiring the directors of a benefit
   56         corporation to meet a standard of conduct; providing
   57         criteria for the standards; creating s. 607.608, F.S.;
   58         authorizing the articles of incorporation of a benefit
   59         corporation to provide for a benefit director;
   60         providing powers and duties of the benefit director;
   61         creating s. 607.609, F.S.; requiring the officers of a
   62         benefit corporation to meet a standard of conduct;
   63         providing criteria for the standards of conduct;
   64         creating s. 607.610, F.S.; authorizing a benefit
   65         corporation to designate an officer as a benefit
   66         officer; providing for the powers and duties of the
   67         benefit officer; creating s. 607.611, F.S.;
   68         authorizing certain legal actions to be brought
   69         against a benefit corporation, its officers, or its
   70         directors; creating s. 607.612, F.S.; requiring the
   71         board of directors to prepare an annual benefit
   72         report; providing criteria for the preparation of the
   73         report; creating s. 607.613, F.S.; establishing
   74         requirements for the availability and dissemination of
   75         the annual report; authorizing a court to order
   76         dissemination of the report; providing criteria;
   77         providing an effective date.
   78  
   79  Be It Enacted by the Legislature of the State of Florida:
   80  
   81         Section 1. The Division of Law Revision and Information is
   82  requested to create part I of chapter 607, Florida Statutes,
   83  consisting of ss. 607.0101-607.193, entitled “CORPORATIONS.”
   84         Section 2. Subsection (1) of section 607.1302, Florida
   85  Statutes, is amended to read:
   86         607.1302 Right of shareholders to appraisal.—
   87         (1) A shareholder of a domestic corporation is entitled to
   88  appraisal rights, and to obtain payment of the fair value of
   89  that shareholder’s shares, in the event of any of the following
   90  corporate actions:
   91         (a) Consummation of a conversion of such corporation
   92  pursuant to s. 607.1112 if shareholder approval is required for
   93  the conversion and the shareholder is entitled to vote on the
   94  conversion under ss. 607.1103 and 607.1112(6), or the
   95  consummation of a merger to which such corporation is a party if
   96  shareholder approval is required for the merger under s.
   97  607.1103 and the shareholder is entitled to vote on the merger
   98  or if such corporation is a subsidiary and the merger is
   99  governed by s. 607.1104;
  100         (b) Consummation of a share exchange to which the
  101  corporation is a party as the corporation whose shares will be
  102  acquired if the shareholder is entitled to vote on the exchange,
  103  except that appraisal rights is shall not be available to any
  104  shareholder of the corporation with respect to any class or
  105  series of shares of the corporation that is not exchanged;
  106         (c) Consummation of a disposition of assets pursuant to s.
  107  607.1202 if the shareholder is entitled to vote on the
  108  disposition, including a sale in dissolution but not including a
  109  sale pursuant to court order or a sale for cash pursuant to a
  110  plan by which all or substantially all of the net proceeds of
  111  the sale will be distributed to the shareholders within 1 year
  112  after the date of sale;
  113         (d) An amendment of the articles of incorporation with
  114  respect to the class or series of shares which reduces the
  115  number of shares of a class or series owned by the shareholder
  116  to a fraction of a share if the corporation has the obligation
  117  or right to repurchase the fractional share so created;
  118         (e) Any other amendment to the articles of incorporation,
  119  merger, share exchange, or disposition of assets to the extent
  120  provided by the articles of incorporation, bylaws, or a
  121  resolution of the board of directors, except that no bylaw or
  122  board resolution providing for appraisal rights may be amended
  123  or otherwise altered except by shareholder approval; or
  124         (f) With regard to a class of shares prescribed in the
  125  articles of incorporation prior to October 1, 2003, including
  126  any shares within that class subsequently authorized by
  127  amendment, any amendment of the articles of incorporation if the
  128  shareholder is entitled to vote on the amendment and if such
  129  amendment would adversely affect such shareholder by:
  130         1. Altering or abolishing any preemptive rights attached to
  131  any of his or her shares;
  132         2. Altering or abolishing the voting rights pertaining to
  133  any of his or her shares, except as such rights may be affected
  134  by the voting rights of new shares then being authorized of any
  135  existing or new class or series of shares;
  136         3. Effecting an exchange, cancellation, or reclassification
  137  of any of his or her shares, when such exchange, cancellation,
  138  or reclassification would alter or abolish the shareholder’s
  139  voting rights or alter his or her percentage of equity in the
  140  corporation, or effecting a reduction or cancellation of accrued
  141  dividends or other arrearages in respect to such shares;
  142         4. Reducing the stated redemption price of any of the
  143  shareholder’s redeemable shares, altering or abolishing any
  144  provision relating to any sinking fund for the redemption or
  145  purchase of any of his or her shares, or making any of his or
  146  her shares subject to redemption when they are not otherwise
  147  redeemable;
  148         5. Making noncumulative, in whole or in part, dividends of
  149  any of the shareholder’s preferred shares which had theretofore
  150  been cumulative;
  151         6. Reducing the stated dividend preference of any of the
  152  shareholder’s preferred shares; or
  153         7. Reducing any stated preferential amount payable on any
  154  of the shareholder’s preferred shares upon voluntary or
  155  involuntary liquidation;.
  156         (g) An amendment of the articles of incorporation of a
  157  social purpose corporation to which s. 607.504 or s. 607.505
  158  applies;
  159         (h) An amendment of the articles of incorporation of a
  160  benefit corporation to which s. 607.604 or s. 607.605 applies;
  161         (i) A merger, conversion, or share exchange of a social
  162  purpose corporation to which s. 607.504 applies; or
  163         (j) A merger, conversion, or share exchange of a benefit
  164  corporation to which s. 607.604 applies.
  165         Section 3. The Division of Law Revision and Information is
  166  requested to create part II of chapter 607, Florida Statutes,
  167  consisting of ss. 607.501-607.513, entitled “SOCIAL PURPOSE
  168  CORPORATIONS.”
  169         Section 4. Section 607.501, Florida Statutes, is created to
  170  read:
  171         607.501Application and effect.—
  172         (1) This part shall be applicable to all social purpose
  173  corporations.
  174         (2) The existence of a provision of this part may not in
  175  itself create an implication that a contrary or different rule
  176  of law is applicable to a corporation that is not a social
  177  purpose corporation. This part may not affect a statute or rule
  178  that is applicable to a corporation that is not a social purpose
  179  corporation.
  180         (3) Except as otherwise provided in this part, all other
  181  provisions of this chapter shall be generally applicable to all
  182  social purpose corporations. The specific provisions of this
  183  part shall control over the general provisions of this chapter.
  184         (4) A social purpose corporation may be simultaneously
  185  subject to this part and to one or more other chapters,
  186  including chapter 621. In such event, the provisions and
  187  sections of this part shall take precedence with respect to a
  188  social purpose corporation.
  189         (5) Except as permitted by this part, a provision of the
  190  articles of incorporation or bylaws, or a shareholders agreement
  191  among shareholders of a social purpose corporation, may not
  192  limit, be inconsistent with, or supersede a provision of this
  193  part.
  194         Section 5. Section 607.502, Florida Statutes, is created to
  195  read:
  196         607.502Definitions.—As used in this part, unless the
  197  context otherwise requires, the term:
  198         (1)“Benefit director” means:
  199         (a) The director designated as the benefit director of a
  200  social purpose corporation under s. 607.508; or
  201         (b) A person with one or more of the powers, duties, or
  202  rights of a benefit director to the extent provided in the
  203  articles of incorporation or bylaws under s. 607.508.
  204         (2)“Benefit enforcement proceeding” means a claim or
  205  action for:
  206         (a) The failure of a social purpose corporation to pursue
  207  or create a public benefit or a specific public benefit
  208  established in its articles of incorporation; or
  209         (b) A violation of any obligation, duty, or standard of
  210  conduct under this part.
  211         (3)“Benefit officer” means the individual designated as
  212  the benefit officer of a social purpose corporation under s.
  213  607.510.
  214         (4)“Independent” means not having a material relationship
  215  with the social purpose corporation or a subsidiary of the
  216  social purpose corporation. A person does not have a material
  217  relationship solely by virtue of serving as the benefit director
  218  or benefit officer of the social purpose corporation or a
  219  subsidiary of the social purpose corporation. In determining
  220  whether a director or officer is independent, a material
  221  relationship between an individual and a social purpose
  222  corporation or any of its subsidiaries will be conclusively
  223  presumed to exist, at the time independence is to be determined,
  224  if any of the following apply:
  225         (a) The individual is or was within the prior 3 years an
  226  employee, other than a benefit officer, of the social purpose
  227  corporation or a subsidiary.
  228         (b) An immediate family member of the individual is or was
  229  within the prior 3 years an executive officer, other than a
  230  benefit officer, of the social purpose corporation or a
  231  subsidiary.
  232         (c) When ownership is calculated as if all outstanding
  233  rights to acquire equity interests in the social purpose
  234  corporation had been exercised, there is beneficial or record
  235  ownership of 5 percent or more of the outstanding shares of the
  236  social purpose corporation by:
  237         1. The individual; or
  238         2. An entity:
  239         a.Of which the individual is a director, an officer, or a
  240  manager; or
  241         b.In which, when ownership is calculated as if all
  242  outstanding rights to acquire equity interests in the entity had
  243  been exercised, the individual owns beneficially or of record 5
  244  percent or more of the outstanding equity interests.
  245         (5) “Minimum status vote” means:
  246         (a) In the case of a corporation that is to become a social
  247  purpose corporation, whether by amendment of the articles of
  248  incorporation or by way of or pursuant to a merger, conversion,
  249  or share exchange; a social purpose corporation whose articles
  250  of incorporation are to be amended pursuant to s. 607.506(4); or
  251  a social purpose corporation that is to cease being a social
  252  purpose corporation, in addition to any other required approval
  253  or vote, the satisfaction of the following conditions:
  254         1. The shareholders of each class or series shall be
  255  entitled to vote as a separate voting group on the corporate
  256  action regardless of any limitation on the voting rights of any
  257  class or series stated in the articles of incorporation or
  258  bylaws.
  259         2. The corporate action is approved by vote of each class
  260  or series of equity interest entitled to vote by at least two
  261  thirds of the total votes of the class or series.
  262         (b) In the case of a domestic entity, other than a
  263  corporation, which is to be simultaneously converted to a social
  264  purpose corporation or merged into a social purpose corporation,
  265  in addition to any other required approval, vote, or consent,
  266  the satisfaction of the following conditions:
  267         1. The holders of each class or series of equity interest
  268  in the entity who are entitled to receive a distribution of any
  269  kind are entitled, as a separate voting group, to vote on or
  270  consent to the action regardless of any applicable limitation on
  271  the voting or consent rights of any class or series.
  272         2. The action is approved by vote or consent of the holders
  273  of each class and each series described in subparagraph 1. who
  274  are entitled to cast at least two-thirds of the total votes or
  275  consent of the class or series which all of those holders are
  276  entitled to cast on the action.
  277         (6)Public benefit” means a positive effect, or the
  278  minimization of negative effects taken as a whole, on the
  279  environment or on one or more categories of persons or entities
  280  other than shareholders in their capacity as shareholders, of an
  281  artistic, charitable, economic, educational, cultural, literary,
  282  religious, social, ecological, or scientific nature, from the
  283  business and operations of a social purpose corporation,
  284  including, but not limited to:
  285         (a) Providing low-income or underserved individuals or
  286  communities with beneficial products or services;
  287         (b) Promoting economic opportunity for individuals or
  288  communities beyond the creation of jobs in the normal course of
  289  business;
  290         (c) Protecting or restoring the environment;
  291         (d) Improving human health;
  292         (e) Promoting the arts, sciences, or advancement of
  293  knowledge; and
  294         (f) Increasing the flow of capital to entities that have as
  295  their stated purpose the provision of a benefit to society or
  296  the environment.
  297         (7)“Social purpose corporation” means a corporation that
  298  has elected to become subject to this part and the status of
  299  which as a social purpose corporation has not been terminated.
  300         (8)“Specific public benefit” means a benefit identified as
  301  a purpose of the social purpose corporation which is set forth
  302  in the articles of incorporation and is consistent with a public
  303  benefit as that term is defined in this section.
  304         (9)“Subsidiary” means, in relation to a person other than
  305  an individual, an entity in which a person owns beneficially or
  306  of record 50 percent or more of the outstanding equity
  307  interests.
  308         (10)“Third-party standard” means a recognized standard for
  309  defining, reporting, and assessing the societal and
  310  environmental performance of a business which is:
  311         (a) Comprehensive because it assesses the effect of the
  312  business and its operations upon the interests listed in s.
  313  607.507(1)(a).
  314         (b) Developed by an entity that is not controlled by the
  315  social purpose corporation.
  316         (c) Credible because it is developed by an entity that has
  317  access to necessary expertise to assess the overall effect of
  318  the business and uses a balanced, collaborative approach to
  319  develop the standard, including a period for public comment.
  320         (d) Transparent because the following information is
  321  publicly available:
  322         1. The criteria considered under the standard when
  323  measuring the overall effect of the business and its operations
  324  upon the interests provided in s. 607.507(1)(a) and the relative
  325  weights, if any, of those criteria; and
  326         2. The process used in the development and revision of the
  327  third-party standard regarding the identity of the directors,
  328  officers, material owners, and governing body of the entity that
  329  developed and controls revisions to the standard; the process by
  330  which revisions are made to the standard and changes are made to
  331  the membership of the governing body; and an accounting of the
  332  revenue and sources of financial support for the entity with
  333  sufficient detail to disclose any relationships that could
  334  reasonably be considered to present a potential conflict of
  335  interest.
  336         Section 6. Section 607.503, Florida Statutes, is created to
  337  read:
  338         607.503Incorporation of social purpose corporation.—A
  339  corporation to be formed as a social purpose corporation shall
  340  be incorporated in accordance with this chapter. The articles of
  341  incorporation filed must state that the corporation is a social
  342  purpose corporation under this part.
  343         Section 7. Section 607.504, Florida Statutes, is created to
  344  read:
  345         607.504Election of social purpose corporation status.—
  346         (1)An existing corporation may become a social purpose
  347  corporation under this part by amending its articles of
  348  incorporation to include, in addition to the requirements of s.
  349  607.0202, a statement that the corporation is a social purpose
  350  corporation under this part. The amendment must be adopted by
  351  the minimum status vote.
  352         (2)A plan of merger, conversion, or share exchange must be
  353  adopted by the minimum status vote if an entity that is not a
  354  social purpose corporation is a party to the merger or
  355  conversion or if the exchanging entity in a share exchange and
  356  the surviving, new, or resulting entity is, or will be, a social
  357  purpose corporation.
  358         (3) If an entity elects to become a social purpose
  359  corporation by amendment of the articles of incorporation or by
  360  a merger, conversion, or share exchange, the shareholders of the
  361  entity are entitled to appraisal rights under ss. 607.1301
  362  607.1333 to the extent of, and in accordance with, such
  363  appraisal rights provisions.
  364         Section 8. Section 607.505, Florida Statutes, is created to
  365  read:
  366         607.505Termination of social purpose corporation status.—
  367         (1)A social purpose corporation may terminate its status
  368  as such and cease to be subject to this part by amending its
  369  articles of incorporation to delete the provision required under
  370  s. 607.503 or s. 607.504. The amendment must be adopted by the
  371  minimum status vote.
  372         (2)A plan of merger, conversion, or share exchange which
  373  has the effect of terminating the status of a corporation as a
  374  social purpose corporation must be adopted by the minimum status
  375  vote. A sale, lease, exchange, or other disposition of the
  376  assets of a social purpose corporation is not effective unless
  377  the transaction is approved by the minimum status vote. However,
  378  a minimum status vote is not required if the transaction is in
  379  the usual and regular course of business, is pursuant to court
  380  order, or is a sale pursuant to which all or a substantial
  381  portion of the net proceeds of the sale will be distributed to
  382  the shareholders within 1 year after the date of the sale.
  383         (3) If a corporation’s status as a social purpose
  384  corporation is terminated pursuant to subsections (1) or (2),
  385  shareholders of the corporation are entitled to appraisal rights
  386  under ss. 607.1301-607.1333 to the extent of, and in accordance
  387  with, such appraisal rights provisions.
  388         Section 9. Section 607.506, Florida Statutes, is created to
  389  read:
  390         607.506Corporate purpose.—
  391         (1)A social purpose corporation shall have a purpose of
  392  creating a public benefit. This purpose is in addition to its
  393  purpose under s. 607.0301.
  394         (2)The articles of incorporation of a social purpose
  395  corporation may identify the creation of one or more specific
  396  public benefits as its purpose in addition to its purposes under
  397  s. 607.0301 and subsection (1).
  398         (3)The creation of a public benefit and a specific public
  399  benefit under subsections (1) and (2) is deemed to be in the
  400  best interest of the social purpose corporation.
  401         (4)A social purpose corporation may amend its articles of
  402  incorporation to add, amend, or delete the identification of a
  403  specific public benefit purpose, however, the amendment must be
  404  adopted by the minimum status vote.
  405         (5)A professional corporation that is a social purpose
  406  corporation does not violate s. 621.08 by having the purpose to
  407  create public benefit or a specific public benefit.
  408         Section 10. Section 607.507, Florida Statutes, is created
  409  to read:
  410         607.507Standard of conduct for directors.—
  411         (1)In discharging their duties and in considering the best
  412  interests of the social purpose corporation, the directors:
  413         (a) Shall consider the effects of any action or inaction
  414  upon:
  415         1. The shareholders of the social purpose corporation;
  416         2. The ability of the social purpose corporation to
  417  accomplish its public benefit or any specific public benefit
  418  purpose; and
  419         (b) May consider the effects of any action or inaction upon
  420  any of the following:
  421         1. The employees and work force of the social purpose
  422  corporation, its subsidiaries, and its suppliers;
  423         2. The interests of customers and suppliers as
  424  beneficiaries of the general public benefit or specific public
  425  benefits of the social purpose corporation;
  426         3. Community and societal factors, including those of each
  427  community in which offices or facilities of the social purpose
  428  corporation, its subsidiaries, or its suppliers are located;
  429         4. The local and global environment; and
  430         5. The short-term and long-term interests of the social
  431  purpose corporation, including benefits that may accrue to the
  432  social purpose corporation from its long-term plans and the
  433  possibility that these interests may be best served by the
  434  continued independence of the social purpose corporation; and
  435         (c) May consider other pertinent factors or the interests
  436  of any other group that they deem appropriate.
  437         (d)Are not required to give priority to the interests of a
  438  particular person or group referred to in paragraphs (a), (b),
  439  or (c) unless the social purpose corporation states in its
  440  articles of incorporation its intention to give such priority;
  441  and
  442         (e) Are not required to give equal weight to the interests
  443  of any particular person or group referred to in paragraphs (a),
  444  (b), or (c) unless the social purpose corporation has stated in
  445  its articles of incorporation its intention to give such equal
  446  weight.
  447         (2)Except as provided in the articles of incorporation, a
  448  director is not personally liable for monetary damages to the
  449  corporation, or to any other person, for the failure of the
  450  social purpose corporation to pursue or create a public benefit
  451  or a specific public benefit. A director is subject to the
  452  duties specified in s. 607.0830.
  453         (3)Except as otherwise provided in the articles of
  454  incorporation, a director does not have a duty to a person who
  455  is a beneficiary of the public benefit purpose or any one or
  456  more specific public benefit purposes of a social purpose
  457  corporation.
  458         Section 11. Section 607.508, Florida Statutes, is created
  459  to read:
  460         607.508Benefit director.—
  461         (1)If the articles of incorporation so provide, the board
  462  of directors of a social purpose corporation may include a
  463  director who is designated as the benefit director and, in
  464  addition to the powers, duties, rights, and immunities of the
  465  other directors of the social purpose corporation, has the
  466  powers, duties, rights, and immunities provided in this part.
  467         (2)The benefit director shall be elected, and may be
  468  removed, in the manner provided by this chapter. The benefit
  469  director must be independent and may also serve as a benefit
  470  officer. The articles of incorporation or bylaws may prescribe
  471  additional qualifications of the benefit director.
  472         (3)Unless the articles of incorporation or bylaws provide
  473  otherwise, the benefit director shall prepare, and the social
  474  purpose corporation shall include in the annual benefit report
  475  to shareholders required under s. 607.512, the opinion of the
  476  benefit director on the following:
  477         (a) Whether the social purpose corporation in all material
  478  respects acted in accordance with its public benefit purpose and
  479  any specific public benefit purpose during the period covered by
  480  the report.
  481         (b) Whether the directors and officers complied with ss.
  482  607.507(1) and 607.509(1).
  483         (c) If, in the opinion of the benefit director, the social
  484  purpose corporation or its directors or officers failed to
  485  comply with paragraph (a) or s. 607.507(1) or s. 607.509(1), a
  486  description of the ways in which the social purpose corporation
  487  or its directors or officers failed to comply.
  488         (4)The action or inaction of an individual in his or her
  489  capacity as a benefit director shall constitute for all purposes
  490  an action or inaction of that individual in his or her capacity
  491  as a director of the social purpose corporation.
  492         (5) The benefit director of a corporation formed under
  493  chapter 621 does not need to be independent.
  494         Section 12. Section 607.509, Florida Statutes, is created
  495  to read:
  496         607.509Standard of conduct for officers.—
  497         (1)If an officer of a social purpose corporation
  498  reasonably believes that a matter may have a material effect on
  499  the ability of the corporation to create a public benefit or a
  500  specific public benefit identified in the articles of
  501  incorporation and the officer has discretion to act on the
  502  matter, the officer shall consider the interests and factors
  503  provided in s. 607.507(1).
  504         (2)The officer’s consideration of interests and factors
  505  under subsection (1) does not constitute a violation of s.
  506  607.0841.
  507         (3)Except as provided in the articles of incorporation, an
  508  officer is not personally liable for monetary damages to the
  509  corporation or any other person for the failure of the social
  510  purpose corporation to pursue or create a public benefit or a
  511  specific public benefit, however, he or she is subject to s.
  512  607.0841.
  513         (4)Except as provided in the articles of incorporation, an
  514  officer does not have any duty to a person who is a beneficiary
  515  of the public benefit purpose or any specific public benefit
  516  purpose of a social purpose corporation arising from the status
  517  of the person as a beneficiary.
  518         Section 13. Section 607.510, Florida Statutes, is created
  519  to read:
  520         607.510Benefit officer.—
  521         (1)A social purpose corporation may designate an officer
  522  as the benefit officer.
  523         (2)The benefit officer has the powers and duties set forth
  524  in the bylaws or determined by the board of directors, which may
  525  include, but are not limited to:
  526         (a) Powers and duties relating to the public benefit or a
  527  specific public benefit purpose of the corporation; and
  528         (b) The duty to prepare the annual benefit report required
  529  by s. 607.512.
  530         Section 14. Section 607.511, Florida Statutes, is created
  531  to read:
  532         607.511Right of action.—
  533         (1)(a) Except in a benefit enforcement proceeding to
  534  enforce a benefit, no person may bring an action or assert a
  535  claim against a social purpose corporation or its directors or
  536  officers with respect to:
  537         1. A failure to pursue or create a public benefit or a
  538  specific public benefit set forth in its articles of
  539  incorporation; or
  540         2. A violation of an obligation, duty, or standard of
  541  conduct under this part.
  542         (b) A social purpose corporation is not liable for monetary
  543  damages under this part for the failure of the social purpose
  544  corporation to pursue or create a public benefit or a specific
  545  public benefit.
  546         (2)A benefit enforcement proceeding may be commenced or
  547  maintained only:
  548         (a) Directly by the social purpose corporation; or
  549         (b) Derivatively by:
  550         1. A shareholder of record on the date of the action or
  551  inaction complained of in the benefit enforcement proceeding;
  552         2. A director;
  553         3. A person or group of persons that owns beneficially or
  554  of record 5 percent or more of the outstanding equity interests
  555  in an entity of which the social purpose corporation is a
  556  subsidiary on the date of the action complained of in the
  557  benefit enforcement proceeding; or
  558         4. Any other person who is specified in the articles of
  559  incorporation or bylaws of the social purpose corporation.
  560         Section 15. Section 607.512, Florida Statutes, is created
  561  to read:
  562         607.512Preparation of annual benefit report.—
  563         (1)Unless it is prepared by a benefit director or benefit
  564  officer, the board of directors shall prepare an annual benefit
  565  report that must include all of the following:
  566         (a) A narrative description of:
  567         1. The ways in which the social purpose corporation pursued
  568  a public benefit during the year and the extent to which a
  569  public benefit was created.
  570         2. Any circumstance that has hindered the pursuit or
  571  creation of a public benefit by the social purpose corporation.
  572         3. The process and rationale for selecting or changing the
  573  third-party standard used to prepare the benefit report, if the
  574  articles of incorporation of the social purpose corporation
  575  require, or the board of directors determines, that the annual
  576  benefit report must be prepared in accordance with a third-party
  577  standard.
  578         (b) If the articles of incorporation of the social purpose
  579  corporation require, or the board of directors determines, that
  580  the annual benefit report must be prepared in accordance with a
  581  third-party standard, an assessment of the overall societal and
  582  environmental performance of the social purpose corporation
  583  using a third-party standard that is:
  584         1. Applied consistently with any previous application in
  585  prior annual benefit reports; or
  586         2. Accompanied by an explanation of the reasons for
  587  inconsistent application or any change in the standard from the
  588  immediate prior report.
  589         (c) The name of the benefit director and the benefit
  590  officer, if those positions exist, and the respective addresses
  591  to which correspondence may be directed.
  592         (d) If the corporation has a benefit director, his or her
  593  statement as provided in s. 607.508(3).
  594         (e) If the articles of incorporation of the social purpose
  595  corporation require, or the board of directors determines, that
  596  the annual benefit report must be prepared in accordance with a
  597  third-party standard, a statement of any connection between the
  598  organization that established the third-party standard, or its
  599  directors, officers, or any holder of 5 percent or more of the
  600  governance interests in the organization, and the social purpose
  601  corporation or its directors, officers, or any holder of 5
  602  percent or more of the outstanding shares of the social purpose
  603  corporation, including any financial or governance relationship
  604  which might materially affect the credibility of the use of the
  605  third-party standard.
  606         (2) If, during the year covered by an annual benefit
  607  report, a benefit director resigned from, or refused to stand
  608  for reelection to, his or her position, or was removed from his
  609  or her position, and he or she furnished written correspondence
  610  to the social purpose corporation concerning the circumstances
  611  surrounding his or her departure, that correspondence must be
  612  included as an exhibit in the annual benefit report.
  613         (3)The annual benefit report or the assessment of the
  614  performance of the social purpose corporation in the annual
  615  benefit report required under paragraph (1)(b) do not need to be
  616  audited or certified by a third-party standard provider.
  617         Section 16. Section 607.513, Florida Statutes, is created
  618  to read:
  619         607.513Availability of annual benefit report.—
  620         (1)Each social purpose corporation shall send its annual
  621  benefit report to each shareholder:
  622         (a) Within 120 days after the end of the fiscal year of the
  623  social purpose corporation; or
  624         (b) At the same time that the social purpose corporation
  625  delivers any other annual report to its shareholders.
  626         (2)A social purpose corporation shall post each annual
  627  benefit report on the public portion of its Internet website, if
  628  any, and it shall remain posted for at least 3 years.
  629         (3)If a social purpose corporation does not have an
  630  Internet website, the corporation shall provide a copy of its
  631  most recent annual benefit report, without charge, to any person
  632  who requests a copy.
  633         (4) If a social purpose corporation does not comply with
  634  the annual benefit report delivery requirement, the circuit
  635  court in the county in which the principal office of the social
  636  purpose corporation is located or, if no office is located in
  637  this state, the county in which its registered office is
  638  located, may, after a shareholder of the social purpose
  639  corporation requests a copy, summarily order the corporation to
  640  furnish the annual benefit report. If the court orders the
  641  annual benefit report to be furnished, the court may also order
  642  the social purpose corporation to pay the shareholders costs,
  643  including reasonable attorney fees, which were incurred in
  644  obtaining the order and otherwise enforce their rights under
  645  this section.
  646         Section 17. The Division of Law Revision and Information is
  647  requested to create part III of chapter 607, Florida Statutes,
  648  consisting of ss. 607.601-607.613, entitled “BENEFIT
  649  CORPORATIONS.”
  650         Section 18. Section 607.601, Florida Statutes, is created
  651  to read:
  652         607.601Application and effect.—
  653         (1) This part shall be applicable to all benefit
  654  corporations.
  655         (2) The existence of a provision of this part shall not of
  656  itself create an implication that a contrary or different rule
  657  of law is applicable to a corporation that is not a benefit
  658  corporation. This part may not affect a statute or rule that is
  659  applicable to a corporation that is not a benefit corporation.
  660         (3) Except as otherwise provided in this part, all other
  661  provisions of this chapter shall be generally applicable to all
  662  benefit corporations. The specific provisions of this part shall
  663  control over the general provisions of this chapter.
  664         (4) A benefit corporation may be simultaneously subject to
  665  this part and to one or more other chapters, including chapter
  666  621. In such event, the provisions and sections of this part
  667  shall take precedence with respect to a benefit corporation.
  668         (5) Except as permitted by this part, a provision of the
  669  articles of incorporation or bylaws, or a shareholders agreement
  670  among shareholders of a benefit corporation, may not limit, be
  671  inconsistent with, or supersede a provision of this part.
  672         Section 19. Section 607.602, Florida Statutes, is created
  673  to read:
  674         607.602Definitions.—As used in this part, unless the
  675  context otherwise requires, the term:
  676         (1)“Benefit corporation” means a corporation that has
  677  elected to become subject to this part and the status as a
  678  benefit corporation has not been terminated.
  679         (2)“Benefit director” means:
  680         (a) The director designated as the benefit director of a
  681  benefit corporation under s. 607.608; or
  682         (b) A person with one or more of the powers, duties, or
  683  rights of a benefit director to the extent provided in the
  684  articles of incorporation or bylaws under s. 607.608.
  685         (3)“Benefit enforcement proceeding” means any claim or
  686  action for:
  687         (a) The failure of a benefit corporation to pursue or
  688  create a general public benefit or a specific public benefit
  689  purpose set forth in its articles of incorporation; or
  690         (b) A violation of any obligation, duty, or standard of
  691  conduct under this part.
  692         (4)“Benefit officer” means the individual designated as
  693  the benefit officer of a benefit corporation under s. 607.610.
  694         (5)“General public benefit” means a material, positive
  695  effect on society and the environment, taken as a whole, which
  696  is attributable to the business and operations of a benefit
  697  corporation.
  698         (6)“Independent” means not having a material relationship
  699  with the benefit corporation or a subsidiary of the benefit
  700  corporation. A person does not have a material relationship
  701  solely by virtue of serving as the benefit director or benefit
  702  officer of the benefit corporation or a subsidiary of the
  703  benefit corporation. In determining whether a director or
  704  officer is independent, a material relationship between an
  705  individual and a benefit corporation or any of its subsidiaries
  706  will be conclusively presumed to exist, at the time independence
  707  is to be determined, if any of the following apply:
  708         (a) The individual is or has been within the prior 3 years,
  709  an employee, other than a benefit officer, of the benefit
  710  corporation or a subsidiary.
  711         (b) An immediate family member of the individual is or has
  712  been within the prior 3 years, an executive officer, other than
  713  a benefit officer, of the benefit corporation or a subsidiary.
  714         (c) When ownership is calculated as if all outstanding
  715  rights to acquire equity interests in the benefit corporation
  716  had been exercised, there is beneficial or record ownership of 5
  717  percent or more of the outstanding shares of the benefit
  718  corporation by:
  719         1. The individual; or
  720         2. An entity:
  721         a.Of which the individual is a director, an officer, or a
  722  manager; or
  723         b.In which, when ownership is calculated as if all
  724  outstanding rights to acquire equity interests in the entity had
  725  been exercised, the individual owns beneficially or of record 5
  726  percent or more of the outstanding equity interests.
  727         (7)“Minimum status vote” means:
  728         (a) In the case of a corporation that is to become a
  729  benefit corporation, whether by amendment of the articles of
  730  incorporation or by way of or pursuant to a merger, conversion,
  731  or share exchange; a benefit corporation whose articles of
  732  incorporation are to be amended pursuant to s. 607.606(4); or a
  733  benefit corporation that is to cease being a benefit
  734  corporation, in addition to any other required approval or vote,
  735  the satisfaction of the following conditions:
  736         1. The shareholders of each class or series shall be
  737  entitled to vote as a separate voting group on the corporate
  738  action regardless of any limitation on the voting rights of any
  739  class or series stated in the articles of incorporation or
  740  bylaws.
  741         2. The corporate action is approved by vote of the
  742  shareholders of each class or series entitled to cast at least
  743  two-thirds of the votes that all shareholders of the class or
  744  series are entitled to cast on the action.
  745         (b) In the case of a domestic entity, other than a
  746  corporation, which is to be simultaneously converted to a
  747  benefit corporation or merged into a benefit corporation in
  748  addition to any other required approval, vote, or consent, the
  749  satisfaction of the following conditions:
  750         1. The holders of each class or series of equity interest
  751  in the entity who are entitled to receive a distribution of any
  752  kind are entitled, as a separate voting group, to vote on or
  753  consent to the action regardless of any applicable limitation on
  754  the voting or consent rights of any class or series.
  755         2. The action is approved by vote or consent of each class
  756  or series of equity interest described in subparagraph 1. who
  757  are entitled to vote by at least two-thirds of the votes or
  758  consent of the class or series.
  759         (8)“Specific public benefit” includes, but is not limited
  760  to:
  761         (a) Providing low-income or underserved individuals or
  762  communities with beneficial products or services;
  763         (b) Promoting economic opportunity for individuals or
  764  communities beyond the creation of jobs in the normal course of
  765  business;
  766         (c) Protecting or restoring the environment;
  767         (d) Improving human health;
  768         (e) Promoting the arts, sciences, or advancement of
  769  knowledge;
  770         (f) Increasing the flow of capital to entities that have as
  771  their stated purpose the provision of a benefit to society or
  772  the environment; and
  773         (g) Any other public benefit consistent with the purposes
  774  of the benefit corporation.
  775         (9)“Subsidiary” means, in relation to a person other than
  776  an individual, an entity in which a person owns beneficially or
  777  of record 50 percent or more of the outstanding equity
  778  interests.
  779         (10)“Third-party standard” means a recognized standard for
  780  defining, reporting, and assessing the societal and
  781  environmental performance of a business which is:
  782         (a) Comprehensive because it assesses the effect of the
  783  business and its operations upon the interests provided in s.
  784  607.607(1)(a)2.-5.
  785         (b) Developed by an entity that is not controlled by the
  786  benefit corporation.
  787         (c) Credible because it is developed by an entity that has
  788  access to necessary expertise to assess the overall societal and
  789  environmental performance of a business and uses a balanced,
  790  collaborative approach to develop the standard, including a
  791  reasonable public comment period.
  792         (d) Transparent because the following information is
  793  publicly available:
  794         1. The criteria considered under the standard when
  795  measuring the overall societal and environmental performance of
  796  a business and the relative weights, if any, of those criteria.
  797         2. The identity of the directors, officers, material
  798  owners, and the governing body of the entity that developed and
  799  control revisions; the process by which revisions to the
  800  standard and changes to the membership of the governing body are
  801  made; and an accounting of the revenue and sources of financial
  802  support for the entity, with sufficient detail to disclose any
  803  relationships that could reasonably be considered to present a
  804  potential conflict of interest.
  805         Section 20. Section 607.603, Florida Statutes, is created
  806  to read:
  807         607.603Incorporation of benefit corporation.—A corporation
  808  to be formed as a benefit corporation shall be incorporated in
  809  accordance with this chapter. The articles of incorporation
  810  filed must state that the corporation is a benefit corporation
  811  under this part.
  812         Section 21. Section 607.604, Florida Statutes, is created
  813  to read:
  814         607.604Election of benefit corporation status.—
  815         (1)An existing corporation may become a benefit
  816  corporation under this part by amending its articles of
  817  incorporation to contain, in addition to the requirements of s.
  818  607.0202, a statement that the corporation is a benefit
  819  corporation under this part. The amendment must be adopted by
  820  the minimum status vote.
  821         (2) A plan of merger, conversion, or share exchange must be
  822  adopted by the minimum status vote if an entity that is not a
  823  benefit corporation is a party to a merger or conversion or if
  824  the exchanging entity in a share exchange and the surviving,
  825  new, or resulting entity is, or will be, a benefit corporation.
  826         (3) If an entity elects to become a benefit corporation by
  827  amendment of the articles of incorporation or by a merger,
  828  conversion, or share exchange, the shareholders of the entity
  829  are entitled to appraisal rights under ss. 607.1301-607.1333 to
  830  the extent of, and in accordance with, such appraisal rights
  831  provisions.
  832         Section 22. Section 607.605, Florida Statutes, is created
  833  to read:
  834         607.605Termination of benefit corporation status.—
  835         (1)A benefit corporation may terminate its status as such
  836  and cease to be subject to this part by amending its articles of
  837  incorporation to delete the provision required under s. 607.603
  838  or s. 607.604. The amendment must be adopted by the minimum
  839  status vote.
  840         (2)A plan of merger, conversion, or share exchange which
  841  has the effect of terminating the status of a corporation as a
  842  benefit corporation must be adopted by the minimum status vote.
  843  A sale, lease, exchange, or other disposition of the assets of a
  844  benefit corporation is not effective unless the transaction is
  845  approved by the minimum status vote. However, a minimum status
  846  vote is not required if the transaction is in the usual and
  847  regular course of business or is pursuant to court order, or is
  848  a sale pursuant to which all or a substantial portion of the net
  849  proceeds of the sale will be distributed to the shareholders
  850  within 1 year after the date of the sale.
  851         (3) If a corporation’s status as a benefit corporation is
  852  terminated pursuant to subsections (1) or (2), shareholders of
  853  the corporation are entitled to appraisal rights under ss.
  854  607.1301-607.1333 to the extent of, and in accordance with, such
  855  appraisal rights provisions.
  856         Section 23. Section 607.606, Florida Statutes, is created
  857  to read:
  858         607.606Corporate purpose.—
  859         (1)A benefit corporation shall have the purpose of
  860  creating general public benefit. This purpose is in addition to
  861  its purpose under s. 607.0301.
  862         (2)The articles of incorporation of a benefit corporation
  863  may identify one or more specific public benefits as its purpose
  864  in addition to its purposes under s. 607.0301 and subsection
  865  (1). The identification of a specific public benefit under this
  866  subsection does not limit the obligation of a benefit
  867  corporation under subsection (1).
  868         (3)The creation of general public benefit and a specific
  869  public benefit under subsections (1) and (2) is deemed to be in
  870  the best interest of the benefit corporation.
  871         (4)A benefit corporation may amend its articles of
  872  incorporation to add, amend, or delete the identification of a
  873  specific public benefit purpose; however, the amendment must be
  874  adopted by the minimum status vote.
  875         (5)A professional corporation that is a benefit
  876  corporation does not violate s. 621.08 by having the purpose to
  877  create general public benefit or a specific public benefit.
  878         Section 24. Section 607.607, Florida Statutes, is created
  879  to read:
  880         607.607Standard of conduct for directors.—
  881         (1)In discharging their duties and in considering the best
  882  interests of the benefit corporation, the directors:
  883         (a) Shall consider the effects of any action or inaction
  884  upon:
  885         1. The shareholders of the benefit corporation;
  886         2. The employees and work force of the benefit corporation,
  887  its subsidiaries, and its suppliers;
  888         3. The interests of customers and suppliers as
  889  beneficiaries of the general public benefit and any specific
  890  public benefit purposes of the benefit corporation;
  891         4. Community and societal factors, including those of each
  892  community in which offices or facilities of the benefit
  893  corporation, its subsidiaries, or its suppliers are located;
  894         5. The local and global environment;
  895         6. The short-term and long-term interests of the benefit
  896  corporation, including benefits that may accrue to the benefit
  897  corporation from its long-term plans and the possibility that
  898  these interests may be best served by the continued independence
  899  of the benefit corporation; and
  900         7. The ability of the benefit corporation to accomplish its
  901  general public benefit purpose and each of its specific public
  902  benefit purposes, if any; and
  903         (b) May consider other pertinent factors or the interests
  904  of any other group that they deem appropriate.
  905         (c)Are not required to give priority to the interests of a
  906  particular person or group referred to in paragraphs (a) or (b)
  907  over the interests of any other person or group, unless the
  908  benefit corporation has stated in its articles of incorporation
  909  its intention to give priority to certain interests; and
  910         (d)Are not required to give equal weight to the interests
  911  of a particular person or group referred to in paragraphs (a) or
  912  (b), unless the benefit corporation has stated in its articles
  913  of incorporation its intention to give such equal weight.
  914         (2)Except as otherwise provided in the articles of
  915  incorporation, a director is not personally liable for monetary
  916  damages for the failure of the benefit corporation to pursue or
  917  create general public benefit or a specific public benefit
  918  identified in its articles of incorporation. A director is
  919  subject to the duties established in s. 607.0830.
  920         (3)Except as otherwise provided in the articles of
  921  incorporation, a director does not have a duty to a person who
  922  is a beneficiary of the general public benefit purpose or any
  923  one or more specific public benefit purposes of the benefit
  924  corporation arising from the status of the person as a
  925  beneficiary.
  926         Section 25. Section 607.608, Florida Statutes, is created
  927  to read:
  928         607.608Benefit director.—
  929         (1)If the articles of incorporation so provide, the board
  930  of directors of a benefit corporation may include a director who
  931  is designated as the benefit director and, in addition to the
  932  powers, duties, rights, and immunities of the other directors of
  933  the benefit corporation, has the powers, duties, rights, and
  934  immunities provided in this part.
  935         (2)The benefit director shall be elected, and may be
  936  removed, in the manner provided by this chapter. The benefit
  937  director shall be an individual who is independent. The benefit
  938  director may also serve as a benefit officer. The articles of
  939  incorporation or bylaws may prescribe additional qualifications
  940  of the benefit director.
  941         (3)Unless the articles of incorporation or bylaws provide
  942  otherwise, the benefit director shall prepare, and the benefit
  943  corporation shall include in the annual benefit report to
  944  shareholders required by s. 607.612, the opinion of the benefit
  945  director on the following:
  946         (a) Whether the benefit corporation in all material
  947  respects acted in accordance with its general public benefit
  948  purpose and any specific public benefit purpose during the
  949  period covered by the report.
  950         (b) Whether the directors and officers complied with ss.
  951  607.607(1) and 607.609(1).
  952         (c) If, in the opinion of the benefit director, the benefit
  953  corporation or its directors or officers failed to comply with
  954  paragraph (a) or s. 607.607(1) or s. 607.609(1), a written
  955  description of the ways in which the benefit corporation or its
  956  directors failed to comply.
  957         (4)The action or inaction of an individual in his or her
  958  capacity as a benefit director shall constitute for all purposes
  959  an action or inaction of that individual in his or her capacity
  960  as a director of the benefit corporation.
  961         (5) The benefit director of a corporation formed under
  962  chapter 621 does not need to be independent.
  963         Section 26. Section 607.609, Florida Statutes, is created
  964  to read:
  965         607.609Standard of conduct for officers.—
  966         (1)If an officer of a benefit corporation reasonably
  967  believes that a matter may have a material effect on the ability
  968  of the corporation to create, or the creation by the corporation
  969  of, general public benefit or a specific public benefit
  970  identified in the articles of incorporation and the officer has
  971  discretion to act on the matter, the officer shall consider the
  972  interests and factors provided in s. 607.607(1).
  973         (2)The officer’s consideration of interests and factors
  974  under subsection (1) does not constitute a violation of s.
  975  607.0841.
  976         (3)Except as provided in the articles of incorporation, an
  977  officer is not personally liable for monetary damages to the
  978  corporation or to any other person for the failure of the
  979  benefit corporation to pursue or create general public benefit
  980  or a specific public benefit, however, he or she is subject to
  981  s. 607.0841.
  982         (4)Except as otherwise provided in the articles of
  983  incorporation, an officer does not have a duty to a person who
  984  is a beneficiary of the general public benefit purpose or any
  985  specific public benefit purpose of the benefit corporation
  986  arising from the status of the person as a beneficiary.
  987         Section 27. Section 607.610, Florida Statutes, is created
  988  to read:
  989         607.610Benefit officer.—
  990         (1)A benefit corporation may designate an officer as the
  991  benefit officer.
  992         (2)The benefit officer has the powers and duties set forth
  993  in the bylaws or determined by the board of directors, which may
  994  include, but are not limited to:
  995         (a)Powers and duties relating to the general public
  996  benefit or a specific public benefit purpose of the corporation;
  997  and
  998         (b) The duty to prepare the annual benefit report required
  999  under s. 607.612.
 1000         Section 28. Section 607.611, Florida Statutes, is created
 1001  to read:
 1002         607.611Right of action.—
 1003         (1)(a) Except in a benefit enforcement proceeding, no
 1004  person may bring an action or assert a claim against a benefit
 1005  corporation or its directors or officers with respect to:
 1006         1. A failure to pursue or create general public benefit or
 1007  a specific public benefit set forth in its articles of
 1008  incorporation; or
 1009         2. A violation of an obligation, duty, or standard of
 1010  conduct under this part.
 1011         (b) A benefit corporation is not liable for monetary
 1012  damages under this part for the failure of the benefit
 1013  corporation to pursue or create a general public benefit or a
 1014  specific public benefit.
 1015         (2)A benefit enforcement proceeding may be commenced or
 1016  maintained only:
 1017         (a) Directly by the benefit corporation; or
 1018         (b) Derivatively by:
 1019         1. A shareholder of record on the date of the action or
 1020  inaction complained of in the benefit enforcement proceeding;
 1021         2. A director;
 1022         3. A person or group of persons that owns beneficially or
 1023  of record 5 percent or more of the outstanding equity interests
 1024  in an entity of which the benefit corporation is a subsidiary on
 1025  the date of the action or inaction complained of in the
 1026  proceeding; or
 1027         4. Any other person who is specified in the articles of
 1028  incorporation or bylaws of the benefit corporation.
 1029         Section 29. Section 607.612, Florida Statutes, is created
 1030  to read:
 1031         607.612Preparation of annual benefit report.—
 1032         (1)Unless it is prepared by a benefit director or a
 1033  benefit officer, the board of directors shall prepare an annual
 1034  benefit report which includes all of the following:
 1035         (a) A narrative description of:
 1036         1. The ways in which the benefit corporation pursued
 1037  general public benefit during the year and the extent to which
 1038  general public benefit was created.
 1039         2. Any circumstance that has hindered the pursuit or
 1040  creation of general public benefit or a specific public benefit
 1041  by the benefit corporation.
 1042         3. The process and rationale for selecting or changing the
 1043  third-party standard used to prepare the benefit report.
 1044         (b) The annual benefit report must be prepared in
 1045  accordance with a third-party standard that is:
 1046         1. Applied consistently with any previous application in
 1047  prior annual benefit reports; or
 1048         2. Accompanied by an explanation of the reasons for any
 1049  inconsistent application or any change in the standard from the
 1050  immediate prior report.
 1051         (c) The name of the benefit director and the benefit
 1052  officer, if those positions exist, and the respective business
 1053  addresses to which correspondence may be directed.
 1054         (d) If the corporation has a benefit director, the
 1055  statement as provided in s. 607.608(3).
 1056         (e) A statement of any connection between the organization
 1057  that established the third-party standard, or its directors,
 1058  officers, or any holder of 5 percent or more of the governance
 1059  interests in the organization, and the benefit corporation or
 1060  its directors, officers, or any holder of 5 percent or more of
 1061  the outstanding shares of the benefit corporation, including any
 1062  financial or governance relationship which might materially
 1063  affect the credibility of the use of the third-party standard.
 1064         (2)If, during the year covered by an annual benefit
 1065  report, a benefit director resigned from, or refused to stand
 1066  for reelection to, his or her position, or was removed from his
 1067  or her position, and he or she furnished written correspondence
 1068  to the benefit corporation concerning the circumstances
 1069  surrounding his or her departure, that correspondence must be
 1070  included as an exhibit in the annual benefit report.
 1071         (3) The annual benefit report or the assessment of the
 1072  performance of the benefit corporation in the annual benefit
 1073  report required under paragraph (1)(b) does not need to be
 1074  audited or certified by a third-party standards provider.
 1075         Section 30. Section 607.613, Florida Statutes, is created
 1076  to read:
 1077         607.613Availability of annual benefit report.—
 1078         (1)Each benefit corporation shall send its annual benefit
 1079  report to each shareholder:
 1080         (a) Within 120 days after the end of the fiscal year of the
 1081  benefit corporation; or
 1082         (b) At the same time that the benefit corporation delivers
 1083  any other annual report to its shareholders.
 1084         (2)A benefit corporation shall post each annual benefit
 1085  report on the public portion of its Internet website, if any,
 1086  and it shall remain posted for at least 3 years.
 1087         (3)If a benefit corporation does not have an Internet
 1088  website, the benefit corporation shall provide a copy of its
 1089  most recent annual benefit report, without charge, to any person
 1090  who requests a copy.
 1091         (4) If a benefit corporation does not comply with the
 1092  annual benefit report delivery requirement, the circuit court in
 1093  the county in which the principal office of the benefit
 1094  corporation or, if no office is located in this state, the
 1095  county in which its registered office is located, may, after a
 1096  shareholder of the benefit corporation requests a copy,
 1097  summarily order the corporation to furnish the report. If the
 1098  court orders the report to be furnished, the court may also
 1099  order the benefit corporation to pay the shareholder’s costs,
 1100  including reasonable attorney fees, which were incurred in
 1101  obtaining the order and otherwise enforce its rights under this
 1102  section.
 1103         Section 31. This act shall take effect July 1, 2013.