Florida 2022 2022 Regular Session

Florida Senate Bill S0620 Analysis / Analysis

Filed 11/30/2021

                    The Florida Senate 
BILL ANALYSIS AND FISCAL IMPACT STATEMENT 
(This document is based on the provisions contained in the legislation as of the latest date listed below.) 
Prepared By: The Professional Staff of the Committee on Judiciary  
 
BILL: SB 620 
INTRODUCER:  Senator Hutson 
SUBJECT:  Local Government 
DATE: November 29, 2021 
 
 ANALYST STAFF DIRECTOR  REFERENCE  	ACTION 
1. Bond Cibula JU Favorable 
2.     RC  
3.     AP  
 
I. Summary: 
SB 620 creates a cause of action for an established business to recover loss of business damages 
from a county or municipality whose regulatory action has caused a significant impact on the 
business. 
 
Currently, landowners have a cause of action under the Bert J. Harris Act to compensate them for 
the lost value of their land caused by certain local government actions; landowners have a cause 
of action for onerous local regulation in the form of exactions; and business landowners have a 
cause of action under eminent domain law for business damages related to a taking of real 
property. Similarly, this bill creates a cause of action for a business to sue a local government 
when the enactment or amendment of an ordinance or charter provision causes at least a 
15 percent loss of income or profits to the business. The business must have been in operation for 
at least 3 years to qualify. Business damages recoverable are the probable damages to such 
business which the application of the enactment or amendment of the ordinance or charter 
provision may reasonably cause. Compliance with a 180-day presuit notice and settlement period 
is required. A prevailing business may also be awarded costs and attorney fees payable by the 
county or municipality. If the parties settle the matter pre-trial, attorney fees are limited to a 
reasonable rate. If the business prevails after the presuit process, attorney fees are a percentage of 
the difference between the county or municipality’s counteroffer and the final award. 
 
The bill may have an indeterminate negative fiscal impact on local governments. The bill does 
not appear to have a fiscal impact on state government. 
 
The bill is effective July 1, 2022, and applies to enactment or amendment of an ordinance or 
charter provision on or after July 1, 2022. 
 
 
REVISED:   BILL: SB 620   	Page 2 
 
II. Present Situation: 
Home Rule Powers  
The Florida Constitution 
The Florida Constitution establishes and describes the duties, powers, structure, function, and 
limitations of government in Florida. Article VIII, sections 1 and 2 of the Florida Constitution, 
endows counties and municipalities the power of self-government or home rule power. Under the 
home rule power, local governments have broad authority to exercise the state’s sovereign police 
powers and legislate on any matter that is not inconsistent with federal law and the State 
Constitution and state laws.  
 
Counties 
A county without a charter has such power of self-government as provided by general or special 
law and may enact county ordinances not inconsistent with general law.
1
 Counties operating 
under county charters have all the powers of local self-government not inconsistent with general 
law or with special law approved by a vote of the electors.
2
 General law authorizes counties “the 
power to carry on county government”
3
 and to “perform any other acts not inconsistent with law, 
which acts are in the common interest of the people of the county, and exercise all powers and 
privileges not specifically prohibited by law.”
4
  
 
Municipalities 
Municipalities may be established or abolished, and their charters amended by general or special 
law. Municipalities have governmental, corporate, and proprietary powers to conduct municipal 
government, perform municipal functions, and render municipal services. They may exercise any 
of these powers for municipal purposes except as otherwise provided by law.
5
 Chapter 166, F.S., 
also known as the Municipal Home Rule Powers Act,
6
 acknowledges these constitutional grants 
of police power and better defines municipal powers of self-government.
7
 Chapter 166, F.S., 
provides municipalities with broad home rule powers to act in a manner not inconsistent with the 
Florida Constitution, general and special law, and a charter for the county in which the 
municipality is located.
8
 
 
                                                
1
 FLA. CONST. art. VIII, s. 1(f). 
2
 FLA. CONST. art. VIII. s. (1)(g). 
3
 Section 125.01(1), F.S. 
4
 Section 125.01(1)(w), F.S. 
5
 FLA. CONST. art. VIII, s. 2. 
6
 Section 166.011, F.S. 
7
 Florida House of Representatives, Publications, The Local Government Formation Manual 2017-2018, p. 16, available at: 
http://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&CommitteeId=2911&Ses
sion=2017&DocumentType=General Publications&FileName=2017-2018 Local Government Formation Manual Final 
Pub.pdf (last visited Nov. 23, 2021). 
8
 Section 166.021(4), F.S.  BILL: SB 620   	Page 3 
 
Current Laws Providing Compensation for County and Municipality Governmental 
Actions 
Eminent Domain 
Both the Federal Constitution and State Constitution guarantee that a person’s private property 
may not be taken for public use without reimbursement. The Fifth Amendment to the United 
States Constitution states that no private property shall “be taken for public use without just 
compensation.” Similarly, the Florida Constitution provides that no private property shall be 
taken except for a public purpose and that each owner must be fully compensated.
9
 Florida 
eminent domain law compensates a landowner for the value of real property taken for a public 
purpose. If the taking impacts an ongoing business, the law also provides for payment of 
business damages related to the eminent domain taking. The term business damages refers to 
“the probable damages to such business which the denial of the use of the property so taken may 
reasonably cause.”
10
 
 
State eminent domain law also provides an affected landowner the right to attorney fees.
11
 Where 
the parties settle, the state or local government must pay a reasonable attorney fee, but where the 
issue is litigated the fee is based on benefit to the landowner. Examples of how this works in the 
context of business damages payable to a landowner in an eminent domain case: 
 
Business Damages in Eminent Domain Attorney Fee Examples 
Description 	Attorney Fee Calculation 
Business owner’s offer is $500,000. The 
government accepts the offer. 
 
Attorney’s fees would be based on a 
reasonable amount of time at a reasonable 
rate. 
 
Business owner’s offer is $500,000. The 
government’s counteroffer is $400,000, 
which is accepted by the business owner. 
 
Attorney’s fees would be based on a 
reasonable amount of time at a reasonable 
rate. 
Business owner’s offer is $500,000. The 
government’s counteroffer is $100,000. 
Business owner rejects the counteroffer. At 
trial, the jury awards $200,000. The 
“benefit” is $100,000 
 
Attorney’s fees, based on that benefit, would 
be $100,000 x 33% = $33,000. 
 
Business owner’s offer is $50,000. The 
government’s counteroffer is $10,000. The 
claim does not go to trial and is settled for 
$20,000. 
 
Attorney’s fees based on the $10,000 benefit 
would be $10,000 x 33% = $3,300. 
 
 
 
                                                
9
 FLA. CONST. art. X, s. 6. 
10
 Section 73.071(2)(b), F.S. 
11
 Section 73.092, F.S.  BILL: SB 620   	Page 4 
 
The Bert J. Harris, Jr., Private Property Rights Protection Act 
The Legislature enacted the “Bert J. Harris, Jr., Private Property Rights Protection Act” in 1995. 
The act provides relief to a property owner whose property is inordinately burdened by 
government regulation. The act is limited in scope and applies only to: 
 Real, and not personal, property; 
 A property owner and not a leaseholder; 
 “As-applied” challenges for specific government actions, not to broad, facial challenges of 
government regulations; and 
 Challenges that are not based on temporary impacts.
12
 
 
The Legislature recognized that some laws, regulations, and ordinances of the state and its 
entities could inordinately burden, restrict, or limit private property rights without amounting to a 
taking
13
 under either the State Constitution or the United States Constitution. The Legislature 
declared that there is “an important state interest in protecting the interests of private property 
owners from those inordinate burdens.” Accordingly, the Legislature created a separate and 
distinct cause of action for governmental actions that might not rise to the level of taking under 
the State Constitution or United States Constitution. The Legislature provided a process for 
private landowners to seek relief, or payment of compensation, when a new law, rule, regulation, 
or ordinance of the state or a political entity, as applied, unfairly affects real property.
14
 
 
The phrases “inordinate burden” and “inordinately burdened” mean that an action by one or 
more governmental entities has directly restricted or limited the use of real property to the extent 
that: 
 The property owner is permanently unable to attain the reasonable, investment-backed 
expectation for the existing use of the real property or a vested right to a specific use of the 
real property with respect to the real property as a whole; or 
 The property owner is left with existing or vested uses that are unreasonable such that the 
property owner bears a disproportionate share of a burden imposed for the good of the public, 
which in fairness should be borne by the public at large.
15
 
 
Before a property owner files an action for compensation under the Bert Harris Act, he or she 
must present a written claim to the head of the government entity at least 90 days before filing an 
action. In addition to the claim, the property owner must submit a valid appraisal that supports 
the claim and demonstrates the loss in fair market value to the property.
16,17
 If other parties are 
                                                
12
 W. Thomas Hawkins, Land Use Law in Florida, 17-3 (Routledge, 2021). 
13
 A “taking” is generally understood to mean a government action that deprives an owner of the use or enjoyment of his or 
her property. A regulatory taking occurs when a government regulation seriously restricts a property owner’s rights. BLACK’S 
LAW DICTIONARY (10th ed. 2014). 
14
 Section 70.001(1), F.S. 
15
 Section 70.001(3)(e)1., F.S. The definition further explains in s. 70.001(3)(e)2., F.S., what the terms do not include with 
regard to other impacts. 
16
 Section 70.001(4)(a), F.S. 
17
 The appraisal should contain valuations of the property both before and after the government’s restriction was imposed. 
This will enable the government to adequately evaluate the property owner’s potential claim for the purpose of developing a 
settlement offer during the pre-suit period. Margaret L. Cooper, Ronald L. Weaver, and Joanne M. Connor, Statutory Private 
Property Rights Protection, 6,The Florida Bar, 2018 Florida Real Property Litigation (2018), 
https://1.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=0368929390&pubNum=0116933&originatingD BILL: SB 620   	Page 5 
 
involved, the governmental entity must notify them, including all owners of real property that is 
contiguous to the owner’s property.
18
 
 
During the 90-day notice period, which may be extended by an agreement of the parties, the 
government is required to make a written settlement offer to the claimant. The settlement may 
contain an offer to: 
 Adjust land development, permit standards, or similar provisions controlling the development 
or use of the land. 
 Increase or modify density, intensity, or use of areas of development. 
 Transfer development rights. 
 Entertain land swaps or exchanges. 
 Mitigate, including payments in lieu of onsite mitigation. 
 Locate on the least sensitive portion of the property. 
 Condition the amount of development or use permitted. 
 Require that issues be addressed on a more comprehensive basis. 
 Issue a development order, variance, special exception, or other extraordinary relief. 
 Purchase the property or an interest in it. 
 Make no changes to the proposed action.
19
 
 
If the property owner rejects the settlement offer with the allowable uses, the property owner 
may file a claim in circuit court and the county where the real property is located.
20
 A cause of 
action may not be filed more than 1 year after a law or regulation is “first applied” by the 
government to the property at issue. The 1-year time frame begins when the law or regulation is 
clear and unequivocal in its terms and notice is provided by mail to the affected property owner 
or registered agent. Otherwise, the law or regulation is considered first applied to the property 
when there is a formal denial of a written request for a development order or variance, unless 
under the terms of the regulation at issue, such requests would be a waste of resources.
21
 
 
The court then conducts a bench trial to determine whether an existing use of the real property or 
a vested right to a specific use of the property existed and whether the government inordinately 
burdened the owner’s property. If the court determines that an inordinate burden was imposed, 
the court must also determine the percentage of responsibility each governmental entity must 
bear.
22
 The property owner may decide whether the amount of compensation is to be determined 
by the court or jury.
23
 
 
The court, and not the jury, will determine what constitutes reasonable costs and attorney fees.
24
  
 
                                                
oc=N090388C02AB211E5823BE24E38CB0B04&refType=SA&originationContext=contextAnalysis&contextData=%28sc.
UserEnteredCitation%29&transitionType=ContextAnalysisItem. 
18
 Section 70.001(4)(b), F.S. 
19
 Section 70.001(4)(c), F.S. 
20
 Section 70.001(5)(b), F.S. 
21
 Section 70.001(11), F.S. 
22
 Section 70.001(6)(a), F.S. 
23
 Section 70.001(6)(b), F.S. 
24
 Section 70.001(6)(c)3., F.S.  BILL: SB 620   	Page 6 
 
The property owner is entitled to recover reasonable costs and attorney fees from the government 
from the date the action was filed in circuit court if: 
 The property owner prevails; and 
 The court determines that the government’s settlement offer did not constitute a bona fide 
offer which reasonably would have resolved the claim during the 90-day notice period.
25
 
 
Similarly, the government is entitled to recover reasonable costs and attorney fees incurred from 
the date the action was filed in circuit court if: 
 The government prevails; and 
 The court determines that the property owner did not accept a bona fide settlement offer 
which reasonably would have fairly resolved the claim if the offer had been accepted by the 
property owner during the 90 day notice period.
26
 
 
Governmental Exactions 
In response to a 2013 U.S. Supreme Court case, Koontz v. St. John’s River Water Management 
District,
27
 the Legislature enacted s. 70.45, F.S., in 2015, and created a cause of action for a 
property owner to recover damages caused by a “prohibited exaction.”
28
 Essential phrases from 
the Koontz decision are embedded in the statute. A prohibited exaction is defined as any 
condition imposed by a governmental entity on a property owner’s proposed use of real property 
that does not have “an essential nexus to a legitimate public purpose and is not roughly 
proportionate to the impacts of the proposed use that the governmental entity” is seeking to 
avoid, minimize, or mitigate.
29
  
 
The action may not be brought until a prohibited exaction is actually imposed or required in 
writing as a final condition of approval for the requested use of real property. The right to bring 
the action may not be waived.
30
 
 
The property owner must provide a written notice to the relevant governmental entity of his or 
her proposed action at least 90 days before filing an action but no later than 180 days after 
imposition of the prohibited exaction. The notice must identify the exaction that the property 
owner believes is prohibited and briefly explain why he or she believes the action is prohibited 
along with an estimate of the damages. The relevant governmental entity must review the notice 
of the claim, respond in writing and identify the basis for the exaction, and explain why it 
maintains that the exaction is proportionate to the harm created by the proposed use of real 
property, or propose to remove all or a proportion of the exaction.
31
 
 
The government has the burden of proving that the exaction has an essential nexus to a legitimate 
public purpose and that it is roughly proportionate to the impact the government seeks to avoid. 
                                                
25
 Section 70.001(6)(c)1., F.S. 
26
 Section 70.001(6)(c)2., F.S. 
27
 Koontz v. St. Johns River Water Management Dist., 570 U.S. 595 (2013). 
28
 Chapter 2015-142, s. 2, Laws of Fla. 
29
 Section 70.45(1)(c), F.S. 
30
 Section 70.45(2), F.S. 
31
 Section 70.45(3), F.S.  BILL: SB 620   	Page 7 
 
The burden of proving damages that result from the prohibited exaction rests upon the property 
owner.
32
 
 
The court may award attorney fees and costs to the prevailing party. However, if the court finds 
that the exaction lacks an essential nexus to a legitimate public purpose, the court must award 
attorney fees and costs to the property owner.
33
 
III. Effect of Proposed Changes: 
SB 620 creates s. 70.91, F.S. to create a cause of action for a business that has been operating for 
at least 3 years to recover business damages from a county or municipality who enacts or amends 
an ordinance or charter provision that causes a 15 percent or greater loss of revenue or profit. 
Unlike the three forms of recovery for government actions described above, this new cause of 
action is not tied to real property ownership. 
 
Legislative Statements of Need for the Bill 
The bill provides the following statements: 
 
 WHEREAS, the Legislature recognizes that the continued economic 
growth and economic prosperity of this state are tied to the protection of 
private property rights and the stability of laws, ordinances, and charter 
provisions, and 
 
 WHEREAS, the Legislature recognizes that the protection of private 
property rights and the stability of laws and local rules and regulations 
affecting business activities encourage investments by businesses in their 
real property, facilities, operations, and workforces, and 
 
 WHEREAS, investments by businesses drive the economic growth 
of a community, and 
 
 WHEREAS, the economic costs of local rules and regulations that 
are primarily for the benefit of a county or municipality as a whole should 
be borne by the county or municipality as a whole, and 
 
 WHEREAS, the Legislature intends to require counties and 
municipalities to compensate businesses for business damages when an 
ordinance or a charter provision causes a business significant economic 
harm. 
 
Exceptions to Application of the Bill 
A county or city is not liable for business damages for any enactment or amendment of an 
ordinance or charter provision that is: 
                                                
32
 Section 70.45(4), F.S. 
33
 Section 70.45(5), F.S.  BILL: SB 620   	Page 8 
 
 Required to comply with state or federal law; 
 An emergency ordinance, declaration or order enacted pursuant to the State Emergency 
Act;
34
 
 A temporary emergency ordinance that remains in effect no more than 90 days; or 
 An ordinance or charter amendment that increases economic freedom. 
 
Additionally, a business may not claim damages under the bill if: 
 The business has been in operation for fewer than 3 years; 
 The business may claim damages under eminent domain law; or 
35
 
 Recovery under another legal theory would lead to a double recovery by the business. 
 
Presuit Requirements 
Similar to eminent domain actions and claims under the Bert J. Harris, Jr. Act or the law on 
exactions, the bill requires the parties to engage in a presuit process before litigation ensues. The 
presuit process starts with a demand letter from the business followed by an opportunity for 
negotiation and settlement before a lawsuit may be filed. Specifically, the following procedures 
are required: 
 
An initial demand letter from the business must be presented to the county or city within 180 
days after the effective date of the enactment or amendment to the ordinance or charter 
provision. The initial demand letter must include a written offer to settle the claim. It must be 
made in good faith, and must include an explanation or the nature, extent, and amount of 
business damages. The initial demand letter must be prepared by the business owner, a certified 
public accountant, or a business damages expert. Copies of relevant business records that 
substantiate the claim must be attached to the demand. The county or city may request additional 
information that the owner may agree to provide. The business records that may be attached 
include, but are not limited to: 
 Federal income tax returns. 
 Federal income tax withholding statements. 
 Federal miscellaneous income tax statements. 
 State sales tax returns. 
 Balance sheets. 
 Profit and loss statements. 
 State corporate income tax returns for the 3 years preceding the enactment of or amendment 
to an ordinance or a charter. 
 Other records relied upon by the business to substantiate a claim for business damages. 
 
The county or city has 120 days to review the demand letter and furnish a response to it by 
certified mail. The response must either be acceptance, rejection, or rejection with a counteroffer. 
A failure to respond is considered a counteroffer of zero.
36
 If the parties agree on the amount of 
business damages, the business may in addition collect costs and attorney fees. Costs and 
                                                
34
 Sections 252.31-.60, F.S. 
35
 Chapter 73, F.S. 
36
 A counteroffer of zero is significant when calculating attorney fees based on the results of the litigation.  BILL: SB 620   	Page 9 
 
attorney fees may be litigated separately even though the amount of business damages is agreed 
upon. 
 
If the parties cannot agree on the amount of business damages, and if 180 days has elapsed since 
service of the initial demand letter, the business may file a lawsuit. 
 
Calculation of Business Damages 
The bill does not specify criteria calculating business damages. The term is used in eminent 
domain litigation, is a familiar concept in that area of the law, and will likely be interpreted by 
the courts in a similar fashion. Thus, business damages are the probable damages to such 
business which application of the enacted or amended ordinance or charter provision may 
reasonably cause.
37
 Business damages include lost profits attributable to the reduced 
profit-making capacity of the business caused by the enactment of amendment of an ordinance or 
charter provision.
38
 
 
The business must state in its complaint the nature and extent of the business damages believed 
to be owed. If contested, the amount is set by the jury, unless the business waives the right to a 
jury and elects trial by a judge. 
 
At trial, due to the similarities with the business damages under eminent domain law, each party 
will likely be “entitled to approach the ‘inherently fact-intensive’ task of business-damage 
valuation by presenting the opinions of qualified experts ‘based upon generally accepted 
accounting principles as to what should be included in the jury’s calculation.’”
39
 These experts in 
calculating damages, depending upon the specific circumstances would seem to be authorized to 
rely on various valuation methods including an: 
 
income-based approach (i.e., value based on current and future revenue 
stream discounted to a total present value), market-based approach (i.e., 
value based on comparison to comparable businesses existing in the 
particular market adjusted for the individual characteristics and risks 
associated with the specific business), or asset-based approach (i.e., value 
based on total assets net liabilities; typically used when the business is not 
profitable).
40
 
 
Costs and Attorney Fees  
The initial offer only includes business damages, the issue of costs and attorney fees only arises 
upon settlement of, or judgment for, the business damages. A business is entitled to an additional 
award of costs and attorney fees if the parties reach a settlement on business damages or if the 
                                                
37
 See, s. 73.071(3)(b), F.S. 
38
 See, LeSuer v. State Rd. Dep’t, 231 So. 2d 265, 268 (Fla. 1st DCA 1970) 
39
 System Components Corp. V. Florida Dept. of Transp., 14 So. 3d 967, 980 (Fla. 2009). 
40
 Id. (citing s. 73.071(3)(b), Fla. Stat. (2004); Jeffrey M. Risius, Business Valuation: A Primer For The Legal Professional 
chs. 8, 10, 12 (2007); American Society of Appraisers, Business Valuation Standards Glossary, available at 
www.bvappraisers. org/glossary/glossary.pdf).  BILL: SB 620   	Page 10 
 
business prevails in court. The calculation of attorney fees differs based on when the business 
damages matter was resolved. Prejudgment interest for costs and attorney fees is not allowed. 
 
Calculation of Costs 
In general, a statutory reference to costs is interpreted by the courts by reference to the Statewide 
Uniform Guidelines for Taxation of Costs in Civil Actions, promulgated by the Florida Supreme 
Court.
41
 Those uniform guidelines include payment of the reasonable costs of experts and 
professionals who assist the court. The bill provides procedural requirements and makes the 
following changes or clarifications to the uniform guidelines: 
 Accountant fees are specifically named as a cost. 
 At least 30 days prior to the hearing on costs, the business must submit to the county or 
municipality billing records of any expert witness. Billing records must include details of the 
expert’s time and services by date, the nature of the services performed, the time spent 
performing the services, and costs incurred. The business must also submit a copy of the fee 
agreement. 
 The court must consider all factors relevant to the reasonableness of the costs, including, but 
not limited to, the fees paid to similar experts retained in the case by the county or 
municipality or other parties and the reasonable costs of similar services by similarly 
qualified persons. 
 The court must consider the amount the business would ordinarily have been expected to pay 
for the services rendered if the county or municipality was not responsible for the costs. 
 The court must make specific findings that justify each sum awarded as an expert witness 
fee. 
 
Attorney Fees when Business Damages are Settled in Pre-Suit Initial Phase 
If the county or municipality accepts the initial offer from the business, or if the business accepts 
the initial counteroffer of the county or municipality, the business is entitled to an award for 
attorney fees.  
 
The parties may negotiate the fee. If they cannot agree, the business has one year from the 
effective date of the enactment or amendment to the ordinance or charter provision to file suit in 
the circuit court to recover a reasonable attorney fee.  
 
To make a claim for fees after agreement on the business damages amount, the attorney for the 
business must submit a claim for fees to the county or municipality at least 30 days prior to any 
hearing. The claim must include: 
 Complete time records. 
 A detailed statement of services rendered by date, the nature of the services rendered, and the 
time spent performing the services. 
 A list of all costs incurred. 
 A copy of the fee agreement. 
 
                                                
41
 Statewide Uniform Guidelines for Taxation of Costs in Civil Actions, Fla.R.Civ.Pro., Appendix II.   BILL: SB 620   	Page 11 
 
The court must be guided by the attorney fees the business would ordinarily be expected to pay 
for these services if the county or municipality was not responsible for the payment of those fees, 
and must be based on the following factors: 
 The novelty, difficulty, and importance of the questions involved. 
 The skill employed by the attorney in conducting the case. 
 The amount of money involved. 
 The responsibility incurred and fulfilled by the attorney. 
 The attorney’s time and labor reasonably required to adequately represent the client in 
relation to the benefits resulting to the client. 
 The fee, or rate of fee, customarily charged for legal services of a comparable or similar 
nature. 
 
Evidence related to negotiations or mediation are admissible when determining the reasonable 
costs or attorney fee. Attorney fees awarded by the court must be used to reduce the amount 
owed or paid by the business. 
 
Attorney Fees when Business Damages are not Determined in the Initial Phase  
If the county or municipality does not accept the initial good faith demand, the business does not 
accept the initial counteroffer of the county or municipality, and the business thereafter prevails 
by settlement or judgment, the court must award the prevailing business an attorney fee in 
addition to the business damage award. The attorney fee is based on the benefit to the business: 
 33 percent of the benefit up to $250,000; plus 
 25 percent of the benefit between $250,000 and $1 million; plus 
 20 percent of the benefit above $1 million. 
 
The benefit to the business is calculated as follows: 
 The term “benefits” means the difference, exclusive of interest, between the final judgment 
or settlement and the last written offer made by the county or municipality before the 
business hires an attorney. If the county or municipality does not make a written settlement 
offer before the business hires an attorney, benefits must be measured from the first written 
offer after the attorney is hired. 
 If business records kept by the owner in the ordinary course of business were provided to the 
county or municipality to substantiate the business damage offer made by the business, 
benefits for amounts awarded for business damages are based upon the difference between 
the final judgment or settlement and the written counteroffer made by the county or 
municipality. 
 If existing business records kept by the owner in the ordinary course of business were not 
provided to the county or municipality to substantiate the business damage offer made by the 
business and those records that were not provided are later deemed material to the 
determination of business damages, benefits for amounts awarded for business damages are 
based upon the difference between the final judgment or settlement and the first written 
counteroffer made by the county or municipality within 90 days after the receipt of the 
business records previously not provided to the county or municipality. 
 The court may also consider nonmonetary benefits obtained for the business through the 
efforts of the attorney, to the extent such nonmonetary benefits are specifically identified by 
the court and can, within a reasonable degree of certainty, be quantified.  BILL: SB 620   	Page 12 
 
 
Effective Date 
The bill takes effect July 1, 2022, and applies to an enactment or amendment of a county or 
municipal ordinance or charter provision that is enacted or amended on or after July 1, 2022. 
IV. Constitutional Issues: 
A. Municipality/County Mandates Restrictions: 
The bill does not require counties or municipalities to spend funds or limit their authority 
to raise revenue or receive state-shared revenues as specified in Article VII, s. 18 of the 
Florida Constitution. 
B. Public Records/Open Meetings Issues: 
None. 
C. Trust Funds Restrictions: 
None. 
D. State Tax or Fee Increases: 
None. 
E. Other Constitutional Issues: 
None identified. 
V. Fiscal Impact Statement: 
A. Tax/Fee Issues: 
None. 
B. Private Sector Impact: 
Indeterminate. The private sector in general may be positively impacted by a more 
favorable regulatory climate created by SB 620. Businesses harmed by certain county or 
municipality actions may recover business damages to compensate them for losses. 
C. Government Sector Impact: 
Indeterminate. The bill does not appear to have a fiscal impact on those counties and 
municipalities that refrain from substantially impacting businesses when enacting or 
amending an ordinance or charter provision. The bill may have a fiscal impact on 
counties and municipalities that elect to enact or amend ordinances or charter provisions 
in a manner that negatively and significantly impacts established businesses. The extent  BILL: SB 620   	Page 13 
 
to which counties or municipalities may elect in the future to be impacted by this bill 
cannot be estimated. 
VI. Technical Deficiencies: 
None. 
VII. Related Issues: 
None. 
VIII. Statutes Affected: 
This bill creates section 70.91, Florida Statutes. 
IX. Additional Information: 
A. Committee Substitute – Statement of Changes: 
(Summarizing differences between the Committee Substitute and the prior version of the bill.) 
None. 
B. Amendments: 
None. 
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.