The bill establishes a new section, 112.3662, in the Florida Statutes that prohibits political subdivisions from using public funds to finance any not-for-profit entity or organization within the state. It defines "not-for-profit entity or organization" as a Florida corporation that is not for profit and is incorporated under chapter 617, as well as "political subdivision" in accordance with existing law. The bill explicitly states that public funds cannot be allocated to these entities, with the exception of rural hospitals as defined in section 395.602(2).

The effective date for this legislation is set for July 1, 2026. This bill aims to ensure that public funds are not used to support not-for-profit organizations, thereby promoting fiscal responsibility among political subdivisions while allowing for an exception for rural hospitals.