DeSantis Vetoes Controversial "Local Business Protection Act

TALLAHASSEE – Florida Governor Ron DeSantis recently vetoed a bill passed by the Florida Legislature that would have forced taxpayers to pay damages whenever a local government ordinance resulted in a business losing 15 percent or more of its revenues. Manatee's state legislators–Senator Jim Boyd, Rep. Tommy Gregory, and Rep. Will Robinson–all voted in favor of the bill.

"The broad and ambiguous language of the bill will lead to both unintended and unforeseen consequences and costly litigation," DeSantis wrote in his veto message.

SB 620 would have allowed businesses that have been in operation for at least three years to file lawsuits seeking to recover lost profits for up to seven years whenever it was determined that a local ordinance or citizen initiative led to the loss. The bill was one of several that were targeted at tensions between state-level Republicans and local governments that arose over mask mandates, curfews, and stay-at-home orders during the COVID-19 pandemic.

Proponents of the bill claimed it was a pro-business solution to over-regulation that would protect private property rights. Opponents argued that determining the root cause of losses would be subjective and that it would encourage frivolous litigation, posing an enormous risk to taxpayers.

Florida TaxWatch had estimated that legislation arising from the bill could cost local governments around $900 million a year and that many would have no choice but to hike property taxes or curb services to cover the additional expenses.

DeSantis agreed with legislatures that local governments "do overstep their authority" and sometimes burden businesses with regulatory policies that "range from the merely misguided to the politically motivated," but also noted that the bill "exempts compensating businesses due to Ôemergency’ orders of local government."

DeSantis advised that he'd prefer to "enact targeted preemption legislation when local governments act in a way that frustrates state policy and/or undermines the rights of Floridians."