Florida Senate - 2023 COMMITTEE AMENDMENT Bill No. SB 564 Ì135986[Î135986 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Hutson) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Section 501.0119, Florida Statutes, is created 6 to read: 7 501.0119 Interchange 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. 106 107 ================= 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.