HB 1353 — Commercial Financing Product Brokers and Providers

F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB135,CS/HB1353 Engrossed 1 2023 A bill to be entitled An act relating to commercial financing product brokers and providers;

authorizing providers to provide specified required disclosures when consummating a commercial financing facility which are based on an example of a transaction;

specifying that disclosures are not required under certain circumstances;

Part XIII of chapter 559, Florida Statutes, Pageconsisting 1ofof 10sections CODING:559.961, 559.9611, 559.9612, 559.9613, 559.9614, and 559.9615, Florida Statutes, is created to read:

PART XIII FLORIDA COMMERCIAL FINANCING DISCLOSURE LAW 559.961 Short title.—This part may be cited as the Page 1of 10 CODING:

hb1353-02-e1hb1353-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB135,CS/HB1353 Engrossed 1 2023 consisting"Florida ofCommercial sectionsFinancing 559.961,Disclosure 559.9611,Law." 559.9612,559.9611 559.9613,Definitions.—As 559.9614,used andin 559.9615,this Floridapart, Statutes,the isterm: created to read:

PART XIII FLORIDA COMMERCIAL FINANCING DISCLOSURE LAW 559.961 Short title.—This part may be cited as the "Florida Commercial Financing Disclosure Law." 559.9611 Definitions.—As used in this part, the term:

The term excludes a provider and any individualperson or entity Pagewhose 2ofcompensation 10is CODING:not based or dependent upon the terms of the specific commercial financing transaction obtained or offered.

(4) "Business" means a person or a group of persons, a sole proprietorship, a corporation, a limited liability company, Page 2of 10 CODING:

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(4) "Business" means an individual or a group of individuals, a sole proprietorship, a corporation, a limited liability company, a trust, an estate, a cooperative, an association, or a limited or general partnership engaged in a business activity.

The statement may be a separate statement or may be contained in an application, an agreement, or Pageany 3ofother 10document CODING:signed by the business or the business owner.

Words strickenare deletions;

words underlined are additions.

hb1353-02-e1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB13, Engrossed 1 2023 other document signed by the business or the business owner.

(a) The provider reasonably contemplates repeat transactions.Page 3of 10 CODING:

Words strickenare deletions;

words underlined are additions.

hb1353-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB1353 2023 transactions.

(9) "Depository institution" meansmeans: a Florida state- chartered bank, savings bank, credit union, or trust company, or a federal savings or thrift association, bank, credit union, savings bank, or thrift.

(a) A bank, a trust company, or an industrial loan company doing business under the authority of, or in accordance with, a license, a certificate, or a charter issued by the United States, this state, or any other state, district, territory, or commonwealth of the United States which is authorized to transact business in this state;

(b) A federally chartered savings and loan association, a federal savings bank, or a federal credit union that is authorized to transact business in this state;

or (c) A savings and loan association, a savings bank, or a credit union organized under the laws of this or any other state which is authorized to transact business in this state.

The term also includes a person who enters into a written agreement with a depository institution to arrange a commercial financing transaction between the depository institution and a business via an online lending platform administered by the person.

The fact that a provider extends a specific offer for a commercial financing transaction on behalf of a depository institution may not be construed to mean that the provider engaged in lending or Page 4of 10 CODING:

hb1353-02-e1hb1353-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB13,CS/HB1353 Engrossed2023 1provider 2023extends a specific offer for a commercial financing transaction on behalf of a depository institution may not be construed to mean that the provider engaged in lending or financing or originated that loan or financing.

or (b) A subsidiary or service corporation that is owned and controlled by a federally insured depository institution or that is under common ownership with sucha federally insured depository institution.

(4) A commercial financing transaction in which the recipient is a motor vehicle dealer or an affiliate of such a dealer, or a vehicle rental company or an affiliate of such a company, pursuant to a commercial loan or commercial open-end credit plan of at least $50,000 or a commercial financing transaction offered by a person in connection with the sale or Page 5of 10 CODING:

hb1353-02-e1hb1353-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB13,CS/HB1353 Engrossed2023 1dealer, 2023or a vehicle rental company or an affiliate of such a company, pursuant to a commercial loan or commercial open-end credit plan of at least $50,000 or a commercial financing transaction offered by a person in connection with the sale or lease of products or services that such person manufactures, licenses, or distributes, or whose parent company or any of its directly or indirectly owned and controlled subsidiaries manufactures, licenses, or distributes.

(5) A provider that is licensed as a money transmitter underin chapteraccordance 560with ora licensedlicense, ascertificate, aor moneycharter transmitterissued by this state or any other state, district, territory, or commonwealth of the United States.

Only one disclosure must be provided for each commercial financing transaction, and a disclosure is not required as result of a modification, forbearance, or change to aPage consummated6of commercial10 financingCODING: transaction.

(2) A provider shall provide a written disclosure of the following information in connection with each commercial financing transaction:

Page 6of 10 CODING:

hb1353-02-e1hb1353-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB13,CS/HB1353 Engrossed 1 2023 (a)a Theconsummated totalcommercial amountfinancing oftransaction. funds provided to the business under the terms of the agreement.

(2) A provider shall provide a written disclosure of the following information in connection with each commercial financing transaction:

(a) The total amount of funds provided to the business under the terms of the agreement.

(f) Whether there are any costs or discounts associated withPage prepayment,7of including10 aCODING: reference to the provision in the agreement which creates the contractual rights of the parties related to prepayment.

(3) A provider that consummates a commercial financing Page 7of 10 CODING:

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The(3) exampleA mustprovider bethat consummates a commercial financing facility may provide the disclosure required by subsection (2) based on an accountexample receivableof totala facetransaction amountthat owedcould ofoccur $10,000.under the agreement.