Florida Senate - 2022 SB 1570
By Senator Jones
35-00384A-22 20221570__
1 A bill to be entitled
2 An act relating to economic assistance to new
3 businesses; amending s. 287.042, F.S.; requiring the
4 Department of Management Services to encourage
5 agencies to allocate a certain percentage of specified
6 funds to purchase commodities and contractual services
7 from certain businesses; amending s. 288.006, F.S.;
8 requiring the Department of Economic Opportunity to
9 award a specified minimum amount of funds to certain
10 businesses; creating s. 288.102, F.S.; providing a
11 short title; defining the term “eligible new
12 business”; prohibiting agencies from requiring
13 eligible new businesses or persons establishing an
14 eligible new business from paying fees relating to
15 licenses or registrations for the business for a
16 specified amount of time; prohibiting agencies from
17 requiring home-based businesses to pay any fees
18 relating to licenses or registrations; requiring
19 Enterprise Florida, Inc., to develop and post a
20 specified annual report on its website and to serve as
21 the primary point of contact to assist eligible new
22 businesses seeking certain information; decreasing the
23 tax rate for certain income of eligible new businesses
24 under certain circumstances; authorizing the
25 Department of Revenue to adopt rules; creating s.
26 443.31, F.S.; creating the Self-Employment Assistance
27 Program within the Department of Economic Opportunity;
28 providing a purpose for the program; authorizing
29 individuals meeting certain criteria relating to
30 reemployment assistance benefits to apply to the
31 department for participation in the program; providing
32 application and eligibility requirements; specifying
33 requirements for individuals approved to participate
34 in the program; defining the term “full-time basis”;
35 exempting individuals participating in the program
36 from specified requirements relating to reemployment
37 assistance benefits; specifying that individuals
38 participating in the program are disqualified from the
39 program if the individuals become ineligible for
40 reemployment assistance benefits; requiring the
41 department to adopt rules; repealing s. 542.335, F.S.,
42 relating to valid restraints of trade or commerce;
43 amending s. 445.004, F.S.; requiring that a specified
44 percentage of workforce development funding go to
45 certain individuals and businesses; creating s.
46 687.21, F.S.; prohibiting lenders from requiring small
47 businesses to sign confessions of judgment; defining
48 the term “small business”; providing an effective
49 date.
50
51 Be It Enacted by the Legislature of the State of Florida:
52
53 Section 1. Paragraph (i) is added to subsection (1) of
54 section 287.042, Florida Statutes, to read:
55 287.042 Powers, duties, and functions.—The department shall
56 have the following powers, duties, and functions:
57 (1)
58 (i) The department shall encourage agencies to allocate at
59 least 5 percent of funds used to purchase commodities and
60 contractual services pursuant to this chapter to purchase
61 commodities and contractual services from businesses established
62 within the previous 5 years and whose principal place of
63 business is in this state.
64 Section 2. Subsection (2) of section 288.006, Florida
65 Statutes, is amended to read:
66 288.006 General operation of loan programs.—
67 (2) State funds appropriated for a loan program may be used
68 only by an eligible recipient or loan administrator, and the use
69 of such funds is restricted to the specific state purpose of the
70 loan program, subject to any compensation due to a loan
71 administrator as provided under this chapter. State funds may be
72 awarded directly by the department to an eligible recipient or
73 awarded by the department to a loan administrator. All state
74 funds, including any interest earned, remain state funds unless
75 otherwise stated in the statutory requirements of the loan
76 program. The department shall award at least 5 percent of funds
77 awarded under this chapter to businesses established within the
78 previous 5 years and whose principal place of business is in
79 this state.
80 Section 3. Section 288.102, Florida Statutes, is created to
81 read:
82 288.102 Florida Right to Start Act.—
83 (1) This section may be cited as the “Florida Right to
84 Start Act.”
85 (2) As used in this section, the term “eligible new
86 business” means:
87 (a) A business entity licensed under the applicable laws of
88 this state that begins business operations on or after July 1,
89 2022; or
90 (b) A home-based business as described under s. 559.955(3)
91 that begins business operations on or after July 1, 2022.
92 (3) Notwithstanding any other law, an agency may not
93 require an eligible new business or a person establishing an
94 eligible new business to pay any fee relating to a license or
95 registration for the first 5 years that the business is
96 established and may not require a home-based business that meets
97 the criteria under s. 559.955(3) to pay any fee relating to a
98 license or registration.
99 (4) Enterprise Florida, Inc., shall do all of the
100 following:
101 (a) Develop and post on its website an annual report that
102 details how laws, rules, and regulations passed or adopted in
103 the previous year affect businesses established for 5 years or
104 less.
105 (b) Serve as the primary point of contact to assist
106 eligible new businesses seeking information relating to this act
107 and the government agencies that support businesses established
108 for 5 years or less.
109 (5)(a) If an eligible new business is required to pay taxes
110 under chapter 220:
111 1. The first $250,000 of an eligible new business’s income
112 in the business’s first tax year is exempt from the tax imposed
113 by chapter 220.
114 2. The first $500,000 of an eligible new business’s income
115 in the business’s second tax year shall be taxed at a rate of 1
116 percent, and any remaining income shall be taxed pursuant to
117 chapter 220.
118 3. The first $750,000 of an eligible new business’s income
119 in the business’s third tax year shall be taxed at a rate of 2
120 percent, and any remaining income shall be taxed pursuant to
121 chapter 220.
122 4. The first $1 million of an eligible new business’s
123 income in the business’s fourth tax year shall be taxed at a
124 rate of 3 percent, and any remaining income shall be taxed
125 pursuant to chapter 220.
126 5. Any income of an eligible new business after the fourth
127 tax year shall be taxed pursuant to chapter 220.
128 (b) The Department of Revenue may adopt rules to administer
129 this subsection.
130 Section 4. Section 443.31, Florida Statutes, is created to
131 read:
132 443.31 Self-Employment Assistance Program.—
133 (1) The Self-Employment Assistance Program is created
134 within the Department of Economic Opportunity. The purpose of
135 the program is to authorize an individual receiving benefits
136 under this chapter to retain his or her eligibility while the
137 individual works toward establishing a business in this state
138 which will serve as the full-time employer of the individual.
139 (2)(a) An individual may apply on a form prescribed by the
140 department for approval to participate in the program. The
141 application must include the projected start-up costs for the
142 applicant’s business, why the applicant believes there is a
143 demand for the business’s product, the business’s target
144 customer base, and the methods and strategies the applicant
145 plans to use to market the business.
146 (b) To be eligible for the program, an individual must:
147 1. Be receiving benefits under this chapter;
148 2. Be likely to exhaust his or her benefits before finding
149 employment; and
150 3. Have at least 18 weeks of benefit eligibility remaining.
151 (3) If an individual is approved to participate in the
152 program, he or she must work on a full-time basis toward
153 starting a business in this state, including, but not limited
154 to, participating in training and activities, such as business
155 counseling, which are required by department rule. An individual
156 who fails to meet the requirements of this subsection is
157 disqualified for benefits for the week in which the failure
158 occurs. For the purposes of this subsection, the term “full-time
159 basis” means the amount of time necessary each week, as
160 determined by the department, to establish a business that will
161 serve as the full-time occupation of the individual.
162 (4) An individual participating in the program is exempt
163 from the work search requirements under s. 443.091 and from
164 being disqualified for benefits under s. 443.101(2) for failing
165 to apply for or accept suitable work.
166 (5) Except as otherwise provided in subsection (3), if an
167 individual is ineligible for benefits under this chapter at any
168 time while participating in the program, the individual is
169 disqualified from the program.
170 (6) The department shall adopt rules to administer this
171 section.
172 Section 5. Section 542.335, Florida Statutes, is repealed.
173 Section 6. Paragraph (a) of subsection (5) of section
174 445.004, Florida Statutes, is amended to read:
175 445.004 CareerSource Florida, Inc., and the state board;
176 creation; purpose; membership; duties and powers.—
177 (5) The state board has all the powers and authority not
178 explicitly prohibited by statute which are necessary or
179 convenient to carry out and effectuate its purposes as
180 determined by statute, Pub. L. No. 113-128, and the Governor, as
181 well as its functions, duties, and responsibilities, including,
182 but not limited to, the following:
183 (a) Serving as the state’s workforce development board
184 pursuant to Pub. L. No. 113-128. Unless otherwise required by
185 federal law, at least 90 percent of workforce development
186 funding must go toward direct customer service, and 5 percent of
187 workforce development funding must go to support individuals
188 starting new businesses or to businesses established within the
189 previous 5 years and whose principal place of business is in
190 this state.
191 Section 7. Section 687.21, Florida Statutes, is created to
192 read:
193 687.21 Confessions of judgment prohibited for small
194 business loans.—A lender, regardless of whether the lender is
195 based in this state, may not require a small business based in
196 this state to sign a confession of judgment as a condition for
197 receiving a loan. For the purposes of this section, the term
198 “small business” has the same meaning as in s. 445.014(4).
199 Section 8. This act shall take effect January 1, 2023.