Florida Senate - 2023                        COMMITTEE AMENDMENT
       Bill No. SB 564
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Banking and Insurance (Hutson) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 501.0119, Florida Statutes, is created
    6  to read:
    7         501.0119Interchange fees on taxes prohibited.—
    8         (1)As used in this section, the term:
    9         (a)“Acquirer bank” means a member of a payment card
   10  network which contracts with a merchant for the settlement of
   11  electronic payment transactions. An acquirer bank may contract
   12  directly with merchants or indirectly through a processor to
   13  process electronic payment transactions.
   14         (b)“Clearance” means the process of transmitting final
   15  transaction data from a merchant to an issuer for posting to the
   16  cardholder’s account and the calculation of fees and charges,
   17  including interchange fees, which apply to the issuer and
   18  merchant.
   19         (c)“Credit card” means a card, plate, coupon book, or
   20  other credit device existing for the purpose of obtaining money,
   21  property, labor, or services on credit.
   22         (d)“Debit card”:
   23         1.Means a card, or other payment code or device, issued or
   24  approved for use through a payment card network to debit an
   25  asset account, regardless of the purpose for which the account
   26  is established, whether authorization is based on a signature, a
   27  personal identification number, or other means;
   28         2.Includes a general-use prepaid card, as defined in 15
   29  U.S.C. s. 1693l-1; and
   30         3.Excludes paper checks.
   31         (e)“Electronic payment transaction” means a transaction in
   32  which a person uses a debit card, credit card, or other payment
   33  code or device issued or approved through a payment card network
   34  to debit a deposit account or use a line of credit, whether
   35  authorization is based on a signature, a personal identification
   36  number, or other means.
   37         (f)Interchange fee” means a fee established, charged, or
   38  received by a payment card network for the purpose of
   39  compensating the issuer for its involvement in an electronic
   40  payment transaction.
   41         (g)Issuer” means a person issuing a debit card or credit
   42  card or the issuer’s agent.
   43         (h)“Merchant” has the same meaning as the term dealer in
   44  s. 212.06(2).
   45         (i)“Payment card network” means an entity:
   46         1.That directly or through licensed members, processors,
   47  or agents provides the proprietary services, infrastructure, and
   48  software that routes information and data to conduct electronic
   49  payment transaction authorization, clearance, and settlement;
   50  and
   51         2.That a merchant uses to accept as a form of payment a
   52  brand of debit card, credit card, or other device that may be
   53  used to carry out electronic payment transactions.
   54         (j)“Processor” means an entity that facilitates, services,
   55  processes, or manages the debit or credit authorization,
   56  billing, transfer, payment procedures, or settlement with
   57  respect to any electronic payment transaction.
   58         (k)Settlement” means the process of transmitting sales
   59  information to the issuing bank for collection and reimbursement
   60  of funds to the merchant and calculating and reporting the net
   61  transaction amount to the issuer and merchant for an electronic
   62  payment transaction that is cleared.
   63         (l)“Tax” means all taxes and fees levied under chapter 212
   64  and s. 125.0104.
   65         (m)“Tax documentation” means documentation sufficient for
   66  the payment card network to determine the total amount of the
   67  electronic payment transaction and the tax amount of such
   68  transaction. Tax documentation may be related to a single
   69  electronic payment transaction or multiple electronic payment
   70  transactions aggregated over a period of time. Examples of tax
   71  documentation include, but are not limited to, invoices,
   72  receipts, journals, ledgers, and tax returns filed with the
   73  Department of Revenue or local taxing authorities.
   74         (2)This section does not apply to an electronic payment
   75  transaction in which the tax amount is not separately stated on
   76  the consumer’s payment invoice, sales slip, or other evidence of
   77  sale as required under s. 212.07(2).
   78         (3)Except as provided in subsection (2), an issuer, a
   79  payment card network, an acquirer bank, or a processor may not
   80  receive or charge the merchant any interchange fees on the tax
   81  amount of an electronic payment transaction if the merchant
   82  informs the acquirer bank, its designee, or any other entity as
   83  provided in the payment card network’s terms and conditions of
   84  service of such tax amount as part of the clearance process for
   85  the electronic payment transaction. A merchant must transmit the
   86  tax amount data as part of the clearance process to avoid being
   87  charged interchange fees on the tax amount of an electronic
   88  payment transaction.
   89         (4)A merchant that does not transmit the tax amount data
   90  in accordance with subsection (3) may submit tax documentation
   91  for the electronic payment transaction to the acquirer bank, its
   92  designee, or any other entity as provided in the payment card
   93  network’s terms and conditions of service no later than 180 days
   94  after the date of the electronic payment transaction, and within
   95  30 days, the issuer must credit to the merchant the amount of
   96  interchange fees charged on the tax amount of the electronic
   97  payment transaction.
   98         (5)An issuer, a payment card network, an acquirer bank, a
   99  processor, or other designated entity that has received the tax
  100  amount data and violates this section is subject to a civil
  101  penalty of $1,000 per electronic payment transaction, and the
  102  issuer must refund the merchant the interchange fee calculated
  103  on the tax amount relative to the electronic payment
  104  transaction.
  105         Section 2. This act shall take effect October 1, 2023.
  107  ================= T I T L E  A M E N D M E N T ================
  108  And the title is amended as follows:
  109         Delete everything before the enacting clause
  110  and insert:
  111                        A bill to be entitled                      
  112         An act relating to interchange fees on taxes; creating
  113         s. 501.0119, F.S.; defining terms; providing
  114         applicability; prohibiting issuers, payment card
  115         networks, acquirer banks, and processors from
  116         receiving or charging merchants interchange fees on
  117         the tax amount of electronic payment transactions if
  118         the merchant provides certain information in a
  119         specified manner; requiring an issuer to credit a
  120         merchant the amount of interchange fees on taxes
  121         within a certain timeframe if the merchant meets
  122         certain conditions; providing a civil penalty;
  123         providing an effective date.