Florida Senate - 2023                CS for CS for CS for SB 564
       By the Committees on Rules; Commerce and Tourism; and Banking
       and Insurance; and Senator Hutson
       595-04221-23                                           2023564c3
    1                        A bill to be entitled                      
    2         An act relating to interchange fees on taxes; creating
    3         s. 501.0119, F.S.; defining terms; providing
    4         applicability and construction; prohibiting issuers,
    5         payment card networks, acquirer banks, and processors
    6         from receiving or charging merchants interchange fees
    7         on the tax amounts of electronic payment transactions
    8         if the merchant provides certain information in a
    9         specified manner; requiring an issuer to credit a
   10         merchant the amount of interchange fees on taxes
   11         within a certain timeframe if the merchant meets
   12         certain conditions; providing a civil penalty;
   13         prohibiting specified actions relating to electronic
   14         payment transaction data by certain entities;
   15         specifying penalties and the enforcing authority for
   16         such violations; authorizing the enforcing authority
   17         to recover reasonable attorney fees and costs;
   18         requiring the Office of Economic and Demographic
   19         Research to submit a certain report to the Legislature
   20         by a specified date; authorizing the office to
   21         contract with certain entities for a specified
   22         purpose; providing effective dates.
   24  Be It Enacted by the Legislature of the State of Florida:
   26         Section 1. Effective October 1, 2024, section 501.0119,
   27  Florida Statutes, is created to read:
   28         501.0119Interchange fees on taxes prohibited.—
   29         (1)As used in this section, the term:
   30         (a)“Acquirer bank” means a member of a payment card
   31  network which contracts with a merchant for the settlement of
   32  electronic payment transactions. An acquirer bank may contract
   33  directly with merchants or indirectly through a processor to
   34  process electronic payment transactions.
   35         (b)“Authorization” means the process through which a
   36  merchant requests approval for an electronic payment transaction
   37  from the issuer.
   38         (c)“Clearance” means the process of transmitting final
   39  transaction data from a merchant to an issuer for posting to the
   40  cardholder’s account and the calculation of fees and charges,
   41  including interchange fees, which apply to the issuer and
   42  merchant.
   43         (d)“Credit card” means a card, plate, coupon book, or
   44  other credit device existing for the purpose of obtaining money,
   45  property, labor, or services on credit.
   46         (e)“Debit card”:
   47         1.Means a card, or other payment code or device, issued or
   48  approved for use through a payment card network to debit an
   49  asset account, regardless of the purpose for which the account
   50  is established, whether authorization is based on a signature, a
   51  personal identification number, or other means;
   52         2.Includes a general-use prepaid card, as defined in 15
   53  U.S.C. s. 1693l-1; and
   54         3.Excludes paper checks.
   55         (f)“Electronic payment transaction” means a transaction in
   56  which a person uses a debit card, credit card, or other payment
   57  code or device issued or approved through a payment card network
   58  to debit a deposit account or use a line of credit, whether
   59  authorization is based on a signature, a personal identification
   60  number, or other means.
   61         (g)Interchange fee” means a fee established, charged, or
   62  received by a payment card network for the purpose of
   63  compensating the issuer for its involvement in an electronic
   64  payment transaction.
   65         (h)Issuer” means a person issuing a debit card or credit
   66  card or the issuer’s agent.
   67         (i)“Merchant” has the same meaning as the term dealer in
   68  s. 212.06(2).
   69         (j)“Payment card network” means an entity:
   70         1.That directly or through licensed members, processors,
   71  or agents provides the proprietary services, infrastructure, and
   72  software that route information and data to conduct electronic
   73  payment transaction authorization, clearance, and settlement;
   74  and
   75         2.That a merchant uses to accept as a form of payment a
   76  brand of debit card, credit card, or other device that may be
   77  used to carry out electronic payment transactions.
   78         (k)“Processor” means an entity that facilitates, services,
   79  processes, or manages the debit or credit authorization,
   80  billing, transfer, payment procedures, or settlement with
   81  respect to any electronic payment transaction.
   82         (l)Settlement” means the process of transmitting sales
   83  information to the issuing bank for collection and reimbursement
   84  of funds to the merchant and calculating and reporting the net
   85  transaction amount to the issuer and merchant for an electronic
   86  payment transaction that is cleared.
   87         (m)“Tax” means all taxes and fees levied under chapter 212
   88  and s. 125.0104.
   89         (n)“Tax documentation” means documentation sufficient for
   90  the payment card network to determine the total amount of the
   91  electronic payment transaction and the tax amount of such
   92  transaction. Tax documentation may be related to a single
   93  electronic payment transaction or multiple electronic payment
   94  transactions aggregated over a period of time. Examples of tax
   95  documentation include, but are not limited to, invoices,
   96  receipts, journals, ledgers, and tax returns filed with the
   97  Department of Revenue or local taxing authorities.
   98         (2)This section does not apply to an electronic payment
   99  transaction in which the tax amount is not separately stated on
  100  the consumer’s payment invoice, sales slip, or other evidence of
  101  sale as required under s. 212.07(2).
  102         (3) This section does not create liability for a payment
  103  card network regarding the accuracy of the tax data reported by
  104  the merchant.
  105         (4)Except as provided in subsection (2), an issuer, a
  106  payment card network, an acquirer bank, or a processor may not
  107  receive or charge the merchant any interchange fees on the tax
  108  amount of an electronic payment transaction if the merchant
  109  informs the acquirer bank or its designee of such tax amount as
  110  part of the authorization or settlement process for the
  111  electronic payment transaction. A merchant must transmit the tax
  112  amount data as part of the authorization or settlement process
  113  to avoid being charged interchange fees on the tax amount of an
  114  electronic payment transaction.
  115         (5)A merchant that does not transmit the tax amount data
  116  in accordance with subsection (4) may submit tax documentation
  117  for the electronic payment transaction to the acquirer bank or
  118  its designee no later than 180 days after the date of the
  119  electronic payment transaction, and within 30 days, the issuer
  120  must credit to the merchant the amount of interchange fees
  121  charged on the tax amount of the electronic payment transaction.
  122         (6)An issuer, a payment card network, an acquirer bank, a
  123  processor, or other designated entity that has received the tax
  124  amount data and violates this section is subject to a civil
  125  penalty of $1,000 per electronic payment transaction, and the
  126  issuer must refund the merchant the interchange fee calculated
  127  on the tax amount relative to the electronic payment
  128  transaction.
  129         (7) An entity, other than the merchant, involved in
  130  facilitating or processing an electronic payment transaction,
  131  including, but not limited to, an issuer, a payment card
  132  network, an acquirer bank, a processor, or other designated
  133  entity, may not distribute, exchange, transfer, disseminate, or
  134  use the electronic payment transaction data except to facilitate
  135  or process the electronic payment transaction or as required by
  136  law. A violation of this subsection constitutes a violation of
  137  the Florida Deceptive and Unfair Trade Practices Act under part
  138  II of this chapter. Notwithstanding s. 501.211, a violation of
  139  this subsection must be enforced only by the enforcing authority
  140  as defined in s. 501.203(2) and subjects the violator to the
  141  sanctions and penalties provided for in part II of this chapter.
  142  If such action is successful, the enforcing authority is
  143  entitled to reasonable attorney fees and costs.
  144         Section 2. The Office of Economic and Demographic Research
  145  (EDR) shall submit a report to the President of the Senate and
  146  the Speaker of the House of Representatives by January 9, 2024,
  147  containing findings of any policy options related to the
  148  implementation of prohibiting interchange fees on taxes. The
  149  report must address the impacts of the legislation, including,
  150  but not limited to, technological, financial, and economic
  151  impacts on merchants, processors, payment card networks,
  152  acquiring banks, and issuers. EDR may contract with a public or
  153  private institution of higher learning or a nationally
  154  recognized organization or entity with experience in performing
  155  this type of evaluation for the sole purpose of developing some
  156  or all of the underlying analysis and findings to be included in
  157  the report.
  158         Section 3. Except as otherwise expressly provided in this
  159  act, this act shall take effect upon becoming a law.