CS/HB 311

1	A bill to be entitled
2	An act relating to local business taxes; amending s.
3	205.022, F.S.; defining the term "independent contractor";
4	creating s. 205.066, F.S.; exempting an individual
5	engaging in or managing a business in an individual
6	capacity as an employee from requirements related to local
7	business taxes; specifying that an individual licensed and
8	operating as a broker associate or sales associate is an
9	employee; specifying that an independent contractor is not
10	an employee; prohibiting a local governing authority from
11	holding an exempt employee liable for the failure of a
12	principal or employer to comply with certain obligations
13	related to a local business tax or requiring an exempt
14	employee to take certain actions related to a local
15	business tax; prohibiting a local governing authority from
16	requiring a principal or employer to provide personal or
17	contact information for exempt individuals in order to
18	obtain a local business tax receipt; amending s. 205.194,
19	F.S.; deleting obsolete language; requiring a person
20	applying for or renewing a local business tax receipt to
21	engage in or manage a business or occupation regulated by
22	a state agency to exhibit certain documentation before
23	such receipt may be issued; authorizing online renewals as
24	a means of providing electronic certifications that meet
25	such requirement; deleting a requirement that the
26	Department of Business and Professional Regulation provide
27	certain professional regulation information to local
28	officials who issue business tax receipts; deleting a
29	provision prohibiting a local official who issues business
30	tax receipts from renewing a license under certain
31	circumstances; providing an effective date.
32
33	Be It Enacted by the Legislature of the State of Florida:
34
35	Section 1.  Subsection (9) is added to section 205.022,
36	Florida Statutes, to read:
37	205.022  Definitions.-When used in this chapter, the
38	following terms and phrases shall have the meanings ascribed to
39	them in this section, except when the context clearly indicates
40	a different meaning:
41	(9)(a)  "Independent contractor" means a person who meets
42	at least four of the following criteria:
43	1.  The independent contractor maintains a separate
44	business with his or her own work facility, truck, equipment,
45	materials, or similar accommodations;
46	2.  The independent contractor holds or has applied for a
47	federal employer identification number, unless the independent
48	contractor is a sole proprietor who is not required to obtain a
49	federal employer identification number under state or federal
50	regulations;
51	3.  The independent contractor receives compensation for
52	services rendered or work performed and such compensation is
53	paid to a business rather than to an individual;
54	4.  The independent contractor holds one or more bank
55	accounts in the name of the business entity for purposes of
56	paying business expenses or other expenses related to services
57	rendered or work performed for compensation;
58	5.  The independent contractor performs work or is able to
59	perform work for any entity in addition to or besides the
60	employer at his or her own election without the necessity of
61	completing an employment application or process; or
62	6.  The independent contractor receives compensation for
63	work or services rendered on a competitive-bid basis or
64	completion of a task or a set of tasks as defined by a
65	contractual agreement, unless such contractual agreement
66	expressly states that an employment relationship exists.
67	(b)  If four of the criteria listed in paragraph (a) are
68	not met, an individual may still be presumed to be an
69	independent contractor based on full consideration of the nature
70	of the individual situation with regard to satisfying any of the
71	following conditions:
72	1.  The independent contractor performs or agrees to
73	perform specific services or work for a specific amount of money
74	and controls the means of performing the services or work.
75	2.  The independent contractor incurs the principal
76	expenses related to the service or work that he or she performs
77	or agrees to perform.
78	3.  The independent contractor is responsible for the
79	satisfactory completion of the work or services that he or she
80	performs or agrees to perform.
81	4.  The independent contractor receives compensation for
82	work or services performed for a commission or on a per-job
83	basis and not on any other basis.
84	5.  The independent contractor may realize a profit or
85	suffer a loss in connection with performing work or services.
86	6.  The independent contractor has continuing or recurring
87	business liabilities or obligations.
88	7.  The success or failure of the independent contractor's
89	business depends on the relationship of business receipts to
90	expenditures.
91	Section 2.  Section 205.066, Florida Statutes, is created
92	to read:
93	205.066  Exemptions; employees acting in an individual
94	capacity.-
95	(1)  An individual who engages in or manages a business,
96	profession, or occupation in an individual capacity as an
97	employee of another person is not required to apply for an
98	exemption from a local business tax, pay a local business tax,
99	or obtain a local business tax receipt. For purposes of this
100	section, an individual licensed and operating as a broker
101	associate or sales associate under chapter 475 is an employee.
102	An individual acting in the capacity of an independent
103	contractor is not an employee.
104	(2)  An employee may not be held liable by any local
105	governing authority for the failure of a principal or employer
106	to apply for an exemption from a local business tax, pay a local
107	business tax, or obtain a local business tax receipt. An
108	individual exempt under this section may not be required by any
109	local governing authority to apply for an exemption from a local
110	business tax, otherwise prove his or her exempt status, or pay
111	any tax or fee related to a local business tax.
112	(3)  A principal or employer who is required to obtain a
113	local business tax receipt may not be required by a local
114	governing authority to provide personal or contact information
115	for individuals exempt under this section in order to obtain a
116	local business tax receipt.
117	Section 3.  Section 205.194, Florida Statutes, is amended
118	to read:
119	205.194  Prohibition of local business tax receipt without
120	exhibition of state license or registration.-
121	(1)  Any person applying for or renewing a local business
122	tax receipt for the period beginning October 1, 1985, to
123	practice any profession or engage in or manage any business or
124	occupation regulated by the Department of Business and
125	Professional Regulation or any other state regulatory agency,
126	including or any board or commission thereof, must exhibit an
127	active state certificate, registration, or license, or proof of
128	copy of the same, before such local receipt may be issued.
129	Online renewals may provide for electronic certification by an
130	applicant to meet this requirement. Thereafter, only persons
131	applying for the first time for a receipt must exhibit such
132	certification, registration, or license.
133	(2)  The Department of Business and Professional Regulation
134	shall, by August 1 of each year, supply to the local official
135	who issues local business tax receipts a current list of
136	professions it regulates and information regarding those persons
137	for whom receipts should not be renewed due to the suspension,
138	revocation, or inactivation of such person's state license,
139	certificate, or registration. The official who issues local
140	business tax receipts shall not renew such license unless such
141	person can exhibit an active state certificate, registration, or
142	license.
143	(2)(3)  This section shall not apply to s. 489.113, s.
144	489.117, s. 489.119, s. 489.131, s. 489.511, s. 489.513, s.
145	489.521, or s. 489.537.
146	Section 4.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.