STATEMENT TO

[Second Reprint]

SENATE, No. 1397

with Senate Floor Amendments

(Proposed by Senator SINGLETON)

ADOPTED: DECEMBER 18, 2025

      This floor amendment protects a provider from liability and prevents a recipient of commercial financing from alleging as a defense in any action, changes in the estimated annual percentage rate (APR) or payment amount after a sales-based financing transaction has been consummated.  A provider of a sales-based financing transaction will not be held liable if : (1) the provider of a sales-based financing transaction provides an estimated APR to a recipient as prescribed in the bill; and (2) the changes in the APR or payment amount result solely from actual fluctuations in the recipient’s sales or revenue.