Florida Senate - 2023 COMMITTEE AMENDMENT
Bill No. SB 564
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LEGISLATIVE ACTION
Senate . House
Comm: RCS .
03/17/2023 .
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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.