This law isn't federal (yet) so we are being specific to Florida.
New definition now adheres to the USDA regulations adopted by the introduction of PAWS.
These regulations are applied as the States try to sign them in. In this case we are speaking of Florida.
If I own animals, and I sell one, and it is more than $500, I now become a retailer/dealer.
That subjects me to the USDA dealer definitions.
I cannot have a license if it is part of the home, it has to be a separate facility.
I don't see where that keeps dogs from being in the home. It's worded oddly, and I haven't looked it up to see if there is more to it than you've said... but it seems to be talking about seperation from other ~businesses~ to prevent entry of pests (disease carrying pests presumably). It doesn't say it must be seperate from a residence in that exerpt.