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Meeting Packet — Tourism, Infrastructure & Energy Subcommittee (February 3, 2022)

Summary

Meeting packet for the Tourism, Infrastructure & Energy Subcommittee of the Commerce Committee, Thursday, February 3, 2022, 9:00 AM in Reed Hall (102 HOB). The agenda lists HB 91 Digital License Plates by Duran, HB 631 Airport Funding by Grall, HB 741 Net Metering by McClure, HB 867 Towing, Storage, and Release of Motor Vehicles by Rizo, HB 1543 Broadband Infrastructure by Tomkow, and proposed committee substitutes for HB 445 (Transportation Network Companies) and HB 915 (Commercial Motor Vehicle Registration). The staff analysis of HB 91 says digital license plates are dynamic screens that may replace the current metal license plate. The packet ends with the text of PCS for HB 915, whose Section 2 provides that the act takes effect July 1, 2022.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Meeting Packet — Tourism, Infrastructure & Energy Subcommittee (February 3, 2022).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-02-03-3103-tourism-infrastructure-energy-subcommittee-meeting-pac-6e15e1e51d/, SHA-256 f3709903e1c959e423b0d3992fc1b377c2ae9eaa62f192073cd5d3598c9162bb.

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        Tourism, Infrastructure & Energy
                 Subcommittee
                Thursday, February 3, 2022
                   9:00 am – 11:00 am
                   Reed Hall (102 HOB)




                   Meeting Packet




Chris Sprowls                                Brad Drake
Speaker                                           Chair
                 The Florida House of Representatives
                                        Commerce Committee
                       Tourism, Infrastructure & Energy Subcommittee
Chris Sprowls                                                                                    Brad Drake
Speaker                                                                                               Chair


                                    Meeting Agenda
                                  Thursday, February 3, 2022
                                    9:00 AM – 11:00 AM
                                    Reed Hall (102 HOB)

   I.      Call to Order

   II.     Roll Call

   III.    Welcome and Opening Remarks

   IV.     Consideration of the following bill(s):

           HB 91 Digital License Plates by Duran
           HB 631 Airport Funding by Grall
           HB 741 Net Metering by McClure
           HB 867 Towing, Storage, and Release of Motor Vehicles by Rizo
           HB 871 Department of Highway Safety and Motor Vehicles by Brannan
           HB 1287 Pub. Rec./Information Held by a Utility Owned or Operated by
           a Unit of Local Government by Botana, Yarborough
           HM 1531 Free Trade Agreement Between the United States and the
           United Kingdom by Barnaby
           HB 1543 Broadband Infrastructure by Tomkow



                303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                                (850) 717-4870
Page 2


         HB 1545 Trust Funds/Broadband Pole Replacement Trust Fund/DEO by
         Tomkow


         Consideration of the following proposed committee substitute(s):
         PCS for HB 445 -- Transportation Network Companies
         PCS for HB 915 -- Commercial Motor Vehicle Registration

   V.    Closing Remarks

   VI.   Adjournment
HB 91
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 91 Digital License Plates
SPONSOR(S): Duran and others
TIED BILLS:      IDEN./SIM. BILLS: SB 1178

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    1) Tourism, Infrastructure & Energy Subcommittee                                    Walsh              Keating

    2) Commerce Committee


                                               SUMMARY ANALYSIS
Current law requires motor vehicle license plates to be made out of metal retroreflective material and meet
certain statutory requirements regarding size and number of characters allowed on the plate. License plates
must be securely fastened to a vehicle and be free of defacement, mutilation, grease, and other obscuring
matter, so that the plate is always plainly visible and legible. The Department of Highway Safety and Motor
Vehicles (DHSMV) may conduct a pilot program on government vehicles to evaluate alternative license plates.

Digital license plates are dynamic screens, which may be used to replace the current metal license plate. They
are able to display information such as a license plate number and annual validation of the current license
plate. A digital license plate may also be used for applications such as electronic tolling and broadcasting
emergency alerts.

The bill eliminates DHSMV’s authority to evaluate alternative license plates through a pilot program . The bill
defines digital license plate as an electronic display that is designed to display the information required by law
to be included on a physical license plate and be placed on a motor vehicle in lieu of a physical license plate.
The bill requires DHSMV to allow a registered motor vehicle to be equipped with a digital license plate in lieu of
a physical license plate by October 1, 2023. However, DHSMV must first determine that digital license plates
are readable by current automated license plate recognition hardware and software. DHSMV is authorized to
adopt implementing rules.

The bill provides that except as otherwise specified in the bill or a DHSMV rule, a digital license plate is subject
to Florida’s laws applicable to a physical license plate; however, digital license plates are exempt from the
statutory design requirements. The bill requires that, before purchasing a digital license plate, the vehicle
owner must purchase a metal license plate from DHSMV and pay all applicable motor vehicle fees.

The bill authorizes DHSMV to contract with one or more digital license plate providers. DHSMV may authorize
the display of a plate number and validation sticker on a digital license plate. DHSMV may authorize the use of
digital license plates for toll collection, if approved by the Department of Transportation or other appropriate
tolling authority, and parking permits. DHSMV may establish procedures for displaying emergency alerts, static
logo displays, and other displays on the license plate. The bill also provides requirements for the digital license
plate and requires providers to maintain an inventory of digital license plates, make available digital versions of
each specialty license plate, and update the vehicle’s registration in real time.

The bill does not appear to impact state or local government revenues or local government expenditures. The
bill appears to have an indeterminate impact on state government expenditures, depending on whether
DHSMV is expected to program connectivity.

The bill is effective upon becoming a law.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0091.TIE
DATE: 1/10/2022
                                                     FULL ANALYSIS

                                                 I. SUBSTANTIVE ANALYSIS

        A. EFFECT OF PROPOSED CHANGES:
          Present Situation

          Florida law requires motor vehicle registration license plates to be made of metal specially treated with
          a retroreflection material. The license plate must be designed to increase nighttime visibility and
          legibility and must be at least 6 inches tall and not less than 12 inches wide, unless a plate with
          reduced dimensions is deemed necessary by the Department of Highway Safety and Motor Vehicles
          (DHSMV) to accommodate motorcycles, mopeds, or similar smaller vehicles. Annual validation stickers
          must also be treated with a retroreflection material and must adhere to the license plate. 1

          The license plate must be imprinted with a combination of bold letters and numerals, not to exceed
          seven digits, so as to identify the license plate number. The license plate must be imprinted with the
          word “Florida” at the top and the name of the county in which it is sold, the state motto, or the words
          “Sunshine State” at the bottom. Any county may, upon majority vote of the county commission, elect to
          have the county name removed from the license plates sold in that county. If the county votes as such,
          the state motto or the words “Sunshine State” must be printed in lieu of the county name. 2

          Current law requires that every vehicle display a license plate securely fastened to the vehicle’s rear 3 in
          a manner to prevent the plate from swinging. All letters, numerals, printing, writing, the registration
          decal, and the alphanumeric designation of the registration license plate must be clear, distinct, and
          free from defacement, mutilation, grease, and other obscuring matter, so that the plate is always plainly
          visible and legible from 100 feet away.4

          Florida law provides for the expiration of a motor vehicle registration and the required renewal. Law
          provides penalties for operating a motor vehicle without a registration license plate or validation sticker.
          The penalties are as follows:
               Any person whose motor vehicle or mobile home registration has been expired for a period of
                  six months or less commits a noncriminal traffic infraction, punishable as a nonmoving violation.
               Any person whose motor vehicle or mobile home registration has been expired for more than
                  six months, upon a first offense, is subject to the penalty provided in s. 318.14, F.S.5
               Any person whose motor vehicle or mobile home registration has been expired for more than
                  six months, upon a second or subsequent offense, commits a misdemeanor of the second
                  degree.6

          Current law provides that DHSMV may conduct a pilot program to evaluate the designs, concepts, and
          technologies for alternative license plates. For purposes of the pilot program, DHSMV must investigate
          the feasibility and use of alternative license plate technologies and the long-term cost impact to the
          consumer. A pilot program is limited to license plates that are used on government-owned motor
          vehicles. Such license plates are exempt from statutory design and material requirements for license
          plates.7 DHSMV has had this authority since 2012, and currently has six digital license plates installed
          on vehicles.8



1 S. 320.06(3)(a),   F.S.
2 Id.
3 An additional front facing plate is required
                                             by law for some vehicles, and such plates must meet the same requirements
as rear facing plates. See s. 316.605(1), F.S.
4 S. 316.605(1), F.S.
5 Section 318.14, F.S., provides certain exceptions to noncriminal traffic infractions and provides for court appearances,

payment plans, and authorizes proof of compliance with motor vehicle registration requirements.
6 S. 320.07(3), F.S.
7 S. 320.06(5), F.S.
8 Florida Department of Highway Safety and Motor Vehicles, Agency Analysis of 2022 House Bill 91, p. 3 (Dec. 1, 2021).
STORAGE NAME: h0091.TIE                                                                                             PAGE: 2
DATE: 1/10/2022
        Under current law, PRIDE, Inc.,9 may manufacture license plates and validation stickers for DHSMV.
        DHSMV is not required to obtain competitive bids in order to contract with the corporation.10

        Digital License Plates
        Digital license plates are dynamic screens that may replace current physical license plate. The digital
        license plates can display information such as a license plate number and validation of the current
        license plate. Digital license plates also have the capability to work with a vehicle’s computer system
        and communicate with outside sources that may access it remotely. 11 The license plate may be used
        for applications such as electronic tolling and broadcasting emergency alerts.12

        Digital license plates are currently available in California and Arizona. 13 One digital license plate
        provider, Reviver, prices their digital license plates starting at $899.14

        Effect of the Bill

        The bill repeals DHSMV’s authority to conduct a pilot program to evaluate the designs, concepts, and
        technologies of alternative license plates.

        Under the bill, “digital license plate” is defined as an electronic display that is designed to:
            Display the information required to be included on a physical license plate; and
            Be placed on a motor vehicle registered under ch. 320, F.S. in lieu of a physical license plate.

        The bill requires DHSMV to allow a registered motor vehicle to be equipped with a digital license plate
        in lieu of a physical license plate by October 1, 2023. Under the bill, DHSMV must determine that digital
        license plates are readable by current automated license plate recognition hardware and software.
        Before obtaining a digital license plate, the purchaser must first obtain a physical license plate from
        DHSMV.

        Under the bill, DHSMV is authorized to adopt rules for digital license plates as outlined in the bill.

        The bill also provides that the owner of a digital license plate is not subject to the penalties in s. 320.07,
        F.S., for failure to display a validation sticker if the vehicle was operated in compliance with ch. 320,
        F.S., and any DHSMV rules governing the placement of digital license plates and registration renewal.

        Under the bill, DHSMV may authorize the display of the motor vehicle’s validation on each digital
        license plate in lieu of the validation sticker. The validation must display the owner’s birth month, the
        license plate number, and the year of expiration or appropriate renewal period if the owner is not a
        natural person. The validation must be displayed in the upper right corner of the digital license plate.

        The bill provides that except as otherwise specified in the bill or a DHSMV rule, a digital license plate is
        subject to Florida’s laws applicable to a physical license plate; however, digital license plates are
        exempt from the statutory design requirements.

        The bill also allows DHSMV to authorize the use of a digital license plate for electronic toll collection, if
        such use has been approved by the Department of Transportation or other appropriate tolling authority
        or to display a parking permit.

        Further, DHSMV may establish procedures for displaying the following information on a digital license
        plate:
             An emergency alert, including an alert regarding a missing child or missing adult;

9 PRIDE, Inc., is the corporation  organized under ch. 947, F.S., relating to inmate work programs.
10 S. 320.06(4),   F.S.
11 Florida Department of Highway Safety and Motor Vehicles, Agency Analysis of 2022 House Bill 91, p. 2 (Dec. 1, 2021).
12 Reviver, https://reviver.com/shop/ (last visited Jan. 7, 2022).
13 Jacob Ogles, Digital License Plates Could Come to Florida Roads, Florida Politics (Mar. 3, 2021),

https://floridapolitics.com/archives/409080-digital-license-plates-could-come-to-florida-roads/ (last visited Jan. 7, 2022).
14 Reviver, https://reviver.com/shop/ (last visited Jan. 7, 2022).
STORAGE NAME: h0091.TIE                                                                                               PAGE: 3
DATE: 1/10/2022
                 Static logo displays, including displays for fleet license plates, digital versions of specialty
                  license plates, special license plates for military service, and special license plates for the
                  Governor and federal and state legislators; and
                 Other displays that DHSMV, in consultation with law enforcement agencies, determines are in
                  the interest of public safety.

         The bills states that a digital license plate must:
             Meet the requirements and specifications previously described;
             Include the same information required to be included on a physical license plate and legibly
                 display that information at all times and in all light conditions; and
             Have wireless connectivity capability.

         Under the bill, DHSMV may contract with one or more digital license plate providers 15 for the issuance
         of digital license plates, including any services related to the issuance of digital license plates. The
         contract must include provisions governing the protection of personal and motor vehicle registration
         data obtained by a digital license plate provider in the performance of its services.

         A digital license plate provider with whom DHSMV contracts must:
              Maintain an inventory of digital license plates in this state;
              Make available a digital version of each specialty license plate authorized by DHSMV; and
              If a digital license plate displays a validation to reflect the current registration period for the
                 motor vehicle, and upon DHSMV request, suspend the display of the validation or indicate in the
                 digital license plate that the motor vehicle’s registration has expired.

         The bill provides that a consumer who chooses to purchase a digital license plate must purchase it
         directly from the digital license plate provider. In addition to any fees associated with the purchase of
         the digital license plate, the consumer is also responsible for paying to DHSMV all applicable motor
         vehicle fees, including the annual use fee associated with any specialty license plate the consumer
         wishes to display on the digital license plate.

         The bill is effective upon becoming a law.

    B. SECTION DIRECTORY:
         Section 1: Amends s. 320.06, F.S., relating to registration certificates, license plates, and validation
         stickers.

         Section 2: Amends s. 320.07, F.S., relating to expiration of registration, renewal required.

         Section 3: Creates s. 320.08069, F.S., relating to digital license plates.

         Section 4: Provides that the bill is effective upon becoming a law.


                           II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

         1. Revenues:
             None. Since purchasers of digital license plates are also required to pay the statutorily required
             motor vehicle fees, the bill does not appear to impact state government revenues.

         2. Expenditures:


15 The bill defines
                  “digital license plate provider” as a person or an entity engaged in the bus iness of providing digital
license plate hardware and services to motor vehicle owners.
STORAGE NAME: h0091.TIE                                                                                                 PAGE: 4
DATE: 1/10/2022
            Indeterminate. Assuming that most of the connectivity programming is between the digital license
            plate provider and the consumer, the bill will have an insignificant impact on DHSMV expenditures .
            If DHSMV is expected to provide connectivity, DHSMV asserts that this will require a significant
            amount of programming to multiple major DHSMV computer systems. 16

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
            None.

        2. Expenditures:
            None.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        Digital license plate providers may see additional revenues associated with the program.

    D. FISCAL COMMENTS:
        None.


                                                    III. COMMENTS

    A. CONSTITUTIONAL ISSUES:

        1. Applicability of Municipality/County Mandates Provision:
          Not applicable. The bill does not appear to impact county or municipal governments.

        2. Other:
          None.

    B. RULE-MAKING AUTHORITY:
        The bill eliminates DHSMV’s current authority to conduct a license plate pilot program and authorizes
        DHSMV to adopt rules to implement digital license plates.

    C. DRAFTING ISSUES OR OTHER COMMENTS:
        The bill authorizes DHSMV to contract with one or more digital license plate providers for the issuance
        of such plates, but it does not expressly require digital license plate providers to contract with DHSMV
        prior to sale and distribution of such plates. Absent a contract, the bill does not provide for protection of
        personal information.

                            IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
    Not applicable.




16 Florida Department   of Highway Safety and Motor Vehicles, Agency Analysis of 2022 House Bill 91, p. 7 (Dec. 1, 2021).
STORAGE NAME: h0091.TIE                                                                                            PAGE: 5
DATE: 1/10/2022
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           HB 91                                                                                                 2022




    1                                         A bill to be entitled
    2              An act relating to digital license plates; amending s.
    3              320.06, F.S.; deleting provisions relating to the
    4              authority of the Department of Highway Safety and
    5              Motor Vehicles to conduct a pilot program to evaluate
    6              the designs, concepts, and technologies for
    7              alternative license plates; amending s. 320.07, F.S.;
    8              exempting owners of digital license plates from
    9              certain penalties; creating s. 320.08069, F.S.;
10                 providing definitions; providing applicability;
11                 authorizing motor vehicles to be equipped with digital
12                 license plates by a certain date; authorizing the
13                 department to contract with digital license plate
14                 providers; providing department authority relating to
15                 the display and use of digital license plates;
16                 specifying requirements for digital license plates,
17                 digital license plate providers, and digital license
18                 plate consumers; authorizing the department to adopt
19                 rules; providing an effective date.
20
21         Be It Enacted by the Legislature of the State of Florida:
22
23                 Section 1.         Subsection (5) of section 320.06, Florida
24         Statutes, is amended to read:
25                 320.06       Registration certificates, license plates, and

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        HB 91                                                                                                 2022




26      validation stickers generally.—
27              (5)         The department may conduct a pilot program to evaluate
28      the designs, concepts, and technologies for alternative license
29      plates. For purposes of the pilot program, the department shall
30      investigate the feasibility and use of alternative license plate
31      technologies and the long-term cost impact to the consumer. The
32      pilot program shall be limited to license plates that are used
33      on government-owned motor vehicles as described in s. 320.0655.
34      Such license plates are exempt from the requirements in
35      paragraph (3)(a).
36              Section 2.          Subsection (7) is added to section 320.07,
37      Florida Statutes, to read:
38              320.07        Expiration of registration; renewal required;
39      penalties.—
40              (7)         An owner of a digital license plate as described in s.
41      320.08069 is not subject to the penalties in this section for
42      failure to display a validation sticker if the vehicle was
43      operated in compliance with this chapter and any rules adopted
44      by the department governing the placement of digital license
45      plates and registration renewal.
46              Section 3.          Section 320.08069, Florida Statutes, is crea ted
47      to read:
48              320.08069          Digital license plates.—
49              (1)         DEFINITIONS.—As used in this section, the term:
50              (a)         "Digital license plate" means an electronic display

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        HB 91                                                                                                 2022




51      that is designed to:
52              1.      Display the information required in this chapter to be
53      included on a physical license plate.
54              2.      Be placed on a motor vehicle registered under this
55      chapter in lieu of a physical license plate.
56              (b)         "Digital license plate provider" means a person or an
57      entity engaged in the business of providing digital license
58      plate hardware and services to motor vehicle owners.
59              (2)         APPLICABILITY.—Except as otherwise provided in this
60      section or a rule adopted under this section, a digital license
61      plate issued under this section is subject to the laws of this
62      state applicable to a physical license plate. However, digital
63      license plates issued under this section are exempt from s.
64      320.06(3)(a).
65              (3)         DIGITAL LICENSE PLATE ISSUANCE.—
66              (a)         By October 1, 2023, the department shall allow a motor
67      vehicle registered under this chapter to be equipped with a
68      digital license plate in lieu of a physical license plate issued
69      under s. 320.06 upon a determination that the information on the
70      digital license plate display is readable by current automated
71      license plate recognition hardware and software. However, the
72      purchaser of a digital license plate must first obtain a
73      physical license plate from the department before obtaining a
74      digital license plate from a digital license plate provider.
75              (b)         The department may contract with one or more digital

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         HB 91                                                                                                 2022




 76      license plate providers for the issuance of digital license
 77      plates, including any services related to the issuance of
 78      digital license plates. The contract must include provisions
 79      governing the protection of personal and motor vehicle
 80      registration data obtained by a digital license plate provider
 81      in the performance of its services.
 82              (c)         The department may authorize the display of the motor
 83      vehicle's validation on each digital license plate in lieu of
 84      the validation sticker. The validation must display the ow ner's
 85      birth month, the license plate number, and the year of
 86      expiration or appropriate renewal period if the owner is not a
 87      natural person. The validation must be displayed in the upper
 88      right corner of the digital license plate.
 89              (d)         The department may authorize the use of a digital
 90      license plate for electronic toll collection, if such use has
 91      been approved by the Department of Transportation or other
 92      appropriate tolling authority, or to display a parking permit.
 93              (e)         The department may establish procedures for displaying
 94      the following information on a digital license plate:
 95              1.      An emergency alert or other public safety alert issued
 96      by a governmental entity, including an alert pursuant to s.
 97      937.021.
 98              2.      Static logo displays, including unique displays for
 99      fleet license plates as described in s. 320.0657 and digital
100      versions of specialty license plates as described in s.

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         HB 91                                                                                                 2022




101      320.08058, special license plates for military service as
102      authorized in s. 320.089, and special license plates for the
103      Governor and federal and state legislators as authorized in s.
104      320.0807.
105              3.      Other displays that the department, in consultation
106      with law enforcement agencies, determines are in the interest of
107      public safety.
108              (4)         DIGITAL LICENSE PLATE REQUIREMENTS.—A digital license
109      plate issued under this section must:
110              (a)         Meet the specifications and requirements adopted under
111      subsection (3).
112              (b)         Include the same information required to be included
113      on a physical license plate and legibly display that information
114      at all times and in all light conditions.
115              (c)         Have wireless connectivity capability.
116              (5)         DIGITAL LICENSE PLATE PROVIDERS.—A digital license
117      plate provider with whom the department contracts shall:
118              (a)         Maintain an inventory of digital license plates issued
119      in this state by the digital license plate provider.
120              (b)         Make available a digital version of each specialty
121      license plate authorized by the department.
122              (c)         If a digital license plate displays a validation,
123      promptly update the display of the validation to reflect the
124      current registration period for the motor vehicle and, upon
125      request of the department, suspend the display of the validation

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         HB 91                                                                                                 2022




126      or indicate on the digital license plate that the registration
127      for the motor vehicle has expired.
128              (6)         DIGITAL LICENSE PLATE CONSUMERS.—A consumer who
129      chooses to purchase a digital license plate must purchase a
130      digital license plate directly from a digital license plate
131      provider. In addition to any fees associated with the purchase
132      of a digital license plate, the consumer is also responsible for
133      paying to the department all applicable motor vehicle fees
134      required by this chapter, including any annual use fees pursuant
135      to s. 320.08056 associated with any specialty license plate the
136      consumer wishes to display on the digital license plate .
137              (7)         RULEMAKING.—The department may adopt rules to
138      implement this section.
139              Section 4.         This act shall take effect upon becoming a law.




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      TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                              HB 91 by Rep. Duran
                              Digital License Plates

                            AMENDMENT SUMMARY
                               February 3, 2022


Amendment 1 by Rep. Duran (Lines 48-74):

  •   Clarifies that a digital license plate must be determined by the Department of
      Transportation to have a display that is readable by current automated license
      plate readers.
  •   Affirms that the Department of Highway Safety and Motor Vehicles must allow
      digital license plates issued pursuant to a contract between the digital license
      plate provider and the department.
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                      Bill No. HB 91   (2022)
       Amendment No. 1




            COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                       (Y/N)
       ADOPTED AS AMENDED            (Y/N)
       ADOPTED W/O OBJECTION         (Y/N)
       FAILED TO ADOPT               (Y/N)
       WITHDRAWN                     (Y/N)
       OTHER


 1     Committee/Subcommittee hearing bill:       Tourism, Infrastructure &
 2     Energy Subcommittee
 3     Representative Duran offered the following:
 4
 5          Amendment
 6          Remove lines 48-74 and insert:
 7          320.08069    Digital license plates.—
 8          (1)     DEFINITIONS.—As used in this section, the term:
 9          (a)     "Digital license plate" means an electronic display
10     that:
11          1.     Is designed to display the information required in this
12     chapter to be included on a physical license plate;
13          2.     Is designed to be placed on a motor vehicle registered
14     under this chapter in lieu of a physical license plate; and




     715449 - h0091-line 48.docx
      Published On: 1/11/2022 8:56:43 PM
                                    Page 1 of 2
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                       Bill No. HB 91   (2022)
       Amendment No. 1


15          3.     Has been determined by the Department of Transportation
16     to have a display that is readable by current automated license
17     plate recognition hardware and software.
18          (b)     "Digital license plate provider" means a person or an
19     entity engaged in the business of providing digital license
20     plate hardware and services to motor vehicle owners.
21          (2)     APPLICABILITY.—Except as otherwise provided in this
22     section or a rule adopted under this section, a digital license
23     plate issued under this section is subject to the laws of this
24     state applicable to a physical license plate. However, digital
25     license plates issued under this section are exempt from s.
26     320.06(3)(a).
27          (3)     DIGITAL LICENSE PLATE ISSUANCE.—
28          (a)     By October 1, 2023, the department shall allow a motor
29     vehicle registered under this chapter to be equipped with a
30     digital license plate in lieu of a physical license plate issued
31     under s. 320.06 pursuant to a contract between the digital
32     license plate provider and the department entered into under
33     (b). However, the purchaser of a digital license plate must
34     first obtain a physical license plate from the department before
35     obtaining a digital license plate from a digital license plate
36     provider.




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      Published On: 1/11/2022 8:56:43 PM
                                    Page 2 of 2
      TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                              HB 91 by Rep. Duran
                              Digital License Plates

                            AMENDMENT SUMMARY
                               February 3, 2022


Amendment 2 by Rep. Duran (Lines 48-121):

  •   Clarifies that a digital license plate must be determined by the Department of
      Transportation to have a display that is readable by current automated license
      plate readers.
  •   Affirms that the Department of Highway Safety and Motor Vehicles must allow
      digital license plates issued pursuant to a contract between the digital license
      plate provider and the department.
  •   Ensures geolocation data is protected as personal data under any contract
      entered into by the department with a digital license plate provider.
  •   Clarifies that specialty license plates offered by digital license plate providers
      must comply with department procedures.
                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                       Bill No. HB 91   (2022)
       Amendment No. 2




            COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                        (Y/N)
       ADOPTED AS AMENDED             (Y/N)
       ADOPTED W/O OBJECTION          (Y/N)
       FAILED TO ADOPT                (Y/N)
       WITHDRAWN                      (Y/N)
       OTHER


 1     Committee/Subcommittee hearing bill:        Tourism, Infrastructure &
 2     Energy Subcommittee
 3     Representative Duran offered the following:
 4
 5          Amendment
 6          Remove lines 48-121 and insert:
 7          320.08069    Digital license plates.—
 8          (1)     DEFINITIONS.—As used in this section, the term:
 9          (a)     "Digital license plate" means an electronic display
10     that:
11          1.     Is designed to display the information required in this
12     chapter to be included on a physical license plate;
13          2.     Is designed to be placed on a motor vehicle registered
14     under this chapter in lieu of a physical license plate; and




     641991 - h0091-line 48a2.docx
      Published On: 2/2/2022 7:17:30 PM
                                     Page 1 of 4
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                       Bill No. HB 91   (2022)
       Amendment No. 2


15          3.     Has been determined by the Department of Transportation
16     to have a display that is readable by current automated license
17     plate recognition hardware and software.
18          (b)     "Digital license plate provider" means a person or an
19     entity engaged in the business of providing digital license
20     plate hardware and services to motor vehicle owners.
21          (2)     APPLICABILITY.—Except as otherwise provided in this
22     section or a rule adopted under this section, a digital license
23     plate issued under this section is subject to the laws of this
24     state applicable to a physical license plate. However, digital
25     license plates issued under this section are exempt from s.
26     320.06(3)(a).
27          (3)     DIGITAL LICENSE PLATE ISSUANCE.—
28          (a)     By October 1, 2023, the department shall allow a motor
29     vehicle registered under this chapter to be equipped with a
30     digital license plate in lieu of a physical license plate issued
31     under s. 320.06 pursuant to a contract between the digital
32     license plate provider and the department entered into under
33     (b). However, the purchaser of a digital license plate must
34     first obtain a physical license plate from the department before
35     obtaining a digital license plate from a digital license plate
36     provider.
37          (b)     The department may contract with digital license plate
38     providers for the issuance of digital license plates, including
39     any services related to the issuance of digital license plates.
     641991 - h0091-line 48a2.docx
      Published On: 2/2/2022 7:17:30 PM
                                     Page 2 of 4
                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 91     (2022)
       Amendment No. 2


40     The contract must include provisions governing the protection of
41     personal and motor vehicle registration data, including
42     geolocation data, obtained by a digital license plate provider
43     in the performance of its services.
44          (c)    The department may authorize the display of the motor
45     vehicle's validation on each digital license plate in lieu of
46     the validation sticker. The validation must display the owner's
47     birth month, the license plate number, and the year of
48     expiration or appropriate renewal period if the owner is not a
49     natural person. The validation must be displayed in the upper
50     right corner of the digital license plate.
51          (d)    The department may authorize the use of a digital
52     license plate for electronic toll collection, if such use has
53     been approved by the Department of Transportation or other
54     appropriate tolling authority, or to display a parking permit.
55          (e)    The department may establish procedures for displaying
56     the following information on a digital license plate:
57          1.    An emergency alert or other public safety alert issued
58     by a governmental entity, including an alert pursuant to s.
59     937.021.
60          2.    Static logo displays, including unique displays for
61     fleet license plates as described in s. 320.0657 and digital
62     versions of specialty license plates as described in s.
63     320.08058, special license plates for military service as
64     authorized in s. 320.089, and special license plates for the
     641991 - h0091-line 48a2.docx
      Published On: 2/2/2022 7:17:30 PM
                                     Page 3 of 4
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                     Bill No. HB 91   (2022)
       Amendment No. 2


65     Governor and federal and state legislators as authorized in s.
66     320.0807.
67          3.     Other displays that the department, in consultation
68     with law enforcement agencies, determines are in the interest of
69     public safety.
70          (4)     DIGITAL LICENSE PLATE REQUIREMENTS.—A digital license
71     plate issued under this section must:
72          (a)     Meet the specifications and requirements adopted under
73     subsection (3).
74          (b)     Include the same information required to be included
75     on a physical license plate and legibly display that information
76     at all times and in all light conditions.
77          (c)     Have wireless connectivity capability.
78          (5)     DIGITAL LICENSE PLATE PROVIDERS.—A digital license
79     plate provider with whom the department contracts shall:
80          (a)     Maintain an inventory of digital license plates issued
81     in this state by the digital license plate provider.
82          (b)     Make available a digital version of each specialty
83     license plate authorized by the department, pursuant to
84     procedures adopted by the department under subparagraph (3)(e)
85     of this section.




     641991 - h0091-line 48a2.docx
      Published On: 2/2/2022 7:17:30 PM
                                     Page 4 of 4
HB 631
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 631 Airport Funding
SPONSOR(S): Grall
TIED BILLS:       IDEN./SIM. BILLS:                   SB 780

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    1) Tourism, Infrastructure & Energy Subcommittee                                    Neuffer            Keating

    2) Commerce Committee


                                              SUMMARY ANALYSIS
The Federal Aviation Administration (FAA) oversees the planning and development of airports across the
nation with a focus on safety and security. In order to further its goal, the FAA provides grants through the
Airport Improvement Program (AIP) for the funding of airport infrastructure projects. The FAA classifies all
airports using data related to the number of passengers that board an aircraft (passenger boardings).

To qualify for AIP funding, an airport must be included in the National Plan of Integrated Airport Systems
(NPIAS), a database which is published every two years. The NPIAS classifies airports by category and hub.
The amount of funding through the AIP is dependent upon the classification of the airport.

The Florida Department of Transportation (DOT) provides financial assistance to airports in the areas of safety,
security, preservation, capacity improvement, land acquisition, planning, and economic development through
its Aviation Grant Program. The Aviation Grant Program is funded from the State Transportation Trust Fund.
Unless otherwise provided in the General Appropriations Act or a substantive bill implementing it, DOT may
participate, if funds are available, in the capital cost of eligible public airport and aviation development projects.

DOT may provide, when such funding is available, up to 50 percent of eligible project costs to commercial
service airports. General aviation airports may receive up to 80 percent funding from DOT for eligible costs so
long as the airport has no scheduled commercial service.

The bill permits DOT funding for up to 80 percent of eligible project costs for airports classified as commercial
service or general aviation with fewer than 100,000 annual passenger boardings. DOT funding will continue to
come from the Aviation Grant fund. Annual passenger boardings will be determined by the FAA.

The bill does not impact state or local government revenues. The bill appears to have an indeterminate impact
on state and local government expenditures.

The bill has an effective date of July 1, 2022.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0631.TIE
DATE: 2/2/2022
                                                    FULL ANALYSIS

                                             I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Federal Classification and Funding of Airports

        The Federal Aviation Administration (FAA) oversees the planning and development of airports across
        the nation with a focus on safety and security. In order to further its goal, the FAA provides grants
        through the Airport Improvement Program (AIP) for the funding of airport infrastructure projects. 1
        Grants are available to publicly owned airports – and, in some cases, to privately owned airports – for
        planning and development,2 airport noise compatibility planning,3 and the implementation of those
        plans.4

        The FAA classifies all airports using data related to the number of passengers that board an aircraft
        (passenger boardings).5 The agency also considers the types of activities conducted at the airport,
        such as cargo service.

        To qualify for AIP funding, an airport must be included in the National Plan of Integrated Airport
        Systems (NPIAS), a database which is published every two years. 6 The NPIAS identifies existing and
        proposed public-use airports that are deemed important to the national transportation system. 7
        Additionally, the NPIAS classifies airports by category8 and hub.9 The amount of grants funded through
        the AIP are dependent upon the classification of the airport. Large and medium primary hubs can
        receive up to 75 percent of eligible costs while small primary, reliever, and general aviation airports are
        eligible for 90 to 95 percent of qualifying costs. 10 The table below shows the federal airport
        classification system.




1 49 U.S.C. § 48103(a).
2 49 U.S.C. § 47104.
3 49 U.S.C. § 47505(a)(2).
4 49 U.S.C. § 47504(c).
5 49 U.S.C. § 47102(15)    (defining “passenger boardings” as revenue passenger boardings in the United States in the prior
calendar year on an aircraft in service in air commerce).
6 FAA Order 5090.5 s. 2.3.5, September 3, 2019.
7 Id.
8 See FAA, National Plan of Integration Airport Systems (2021-2025), September 2020 (explaining a category describes

the type of service the airport currently provides to the community and is anticipated to provide at the end of the 5 -year
planning period).
9 Id. (explaining a “hub” is defined in statute to delineate commercial service airports based on the percentage of total

passenger enplanements).
10 See FAA, Overview: What is AIP?, United States Department of Transportation,

https://www.faa.gov/airports/aip/overview/ #:~:text=For%20large% 20and% 20medium%20primary,costs%2C%20based%2
0on%20statutory%20requirements (last visited January 28, 2022).
STORAGE NAME: h0631.TIE                                                                                             PAGE: 2
DATE: 2/2/2022
                  Airport Classifications11                 Hub Type: Percentage of          Common Name
                                                               Annual Passenger
                                                                    Boardings
       Commercial Service:              Primary:                        Large:                    Large Hub
      Publicly owned airports        Have more than                   1% or more
      that have at least 2,500      10,000 passenger                   Medium:                   Medium Hub
        passenger boardings        boardings each year       At least 0.25% but less than
      each calendar year and                                               1%
         receive scheduled                                              Small:                    Small Hub
         passenger service                                   At least 0.05% but less than
                                                                         0.25%
                                                                       Nonhub:                 Nonhub Primary
                                                              More than 10,000 but less
                                                                      than 0.05%
                                       Nonprimary             Nonhub: At least 2,500      Nonprimary Commercial
                                                             and no more than 10,000             Service
        Nonprimary (other than commercial service)                      N/A                      Reliever

        Florida Airport Funding

        The Florida Department of Transportation (DOT) is tasked with the duty, function, and responsibility of
        planning airport systems in the state.12 DOT is also responsible for the creation and periodic update of
        the statewide aviation system plan.13 Any proposed airport14 must receive DOT approval for any and all
        site acquisitions, construction, or establishment of airport facilities. A public airport 15 is required to
        obtain a license from DOT prior to receiving or sending any aircraft from its location, subject to
        inspection upon initial application for the license and renewal. While DOT operates on a statewide
        level, local governments are charged with adopting, administering, and enforcing airport land use
        compatibility zoning regulations.16

        DOT is charged with coordinating and assisting in the development of a viable aviation system within
        the state.17 It statewide aviation system plan must be developed and periodically updated with 5-year,
        10-year, and 20-year summaries for the state’s needs.18 The plans set forth by DOT must be consistent
        with the goals of the Florida Transportation Plan and with approved local airport master plans.19 DOT
        provides financial assistance to airports in the areas of safety, security, preservation, capacity
        improvement, land acquisition, planning, and economic development through its Aviation Grant
        Program.20 The Aviation Grant Program is funded from the State Transportation Trust Fund, which
        Florida’s aviation industry contributes to through the state aviation tax of 4.27 cents per gallon of fuel. 21
        Unless otherwise provided in the General Appropriations Act or a substantive bill implementing it, DOT
        may participate, if funds are available, in the capital cost of eligible public airport and aviation
        development projects.22 Operational expenses are often not considered eligible for aviation grants.23



11 See 42 U.S.C. § 47102.
12 S. 332.001,  F.S.
13 S. 332.006,  F.S.
14 See s. 330.27(2), F.S.
15 See s. 330.27(6), F.S. (defining “public airport” as an airport, publicly or privately owned, which is open for use by the

public).
16 S. 333.03, F.S.
17 S. 332.006(1), F.S.
18 Id.
19 Id.
20 See Florida Department of Transportation, Grant Program, available at https://www.fdot.gov/aviation/fundinginfo.shtm

(last visited on December 14, 2021).
21 S. 206.9825, F.S.
22 S. 332.007(6), F.S. (emphasis added).
23 The Florida Department of Transportation – Aviation Office, Florida Aviation Project Handbook 2021-2022, pg. 7 (2021),

https://fdotwww.blob.core.windows.net/sitefinity/docs/default -source/aviation/florida-aviation-project-handbook-(2020-
2021)v7b5cc93c31f25452db01244377cc65215.pdf?sfvrsn= 2ee80049_12 (last visited January 28, 2022).
STORAGE NAME: h0631.TIE                                                                                               PAGE: 3
DATE: 2/2/2022
        When federal funding is available through an AIP grant, DOT may fund up to 50 percent of the
        nonfederal share of eligible project costs for commercial service airports.24The FAA determines the
        types of persons or entities eligible for AIP grant funding, as well as the types of projects that may be
        included in a grant.25 General aviation airports may receive up to 80 percent of master planning and
        eligible aviation development project costs from DOT if federal funds are not available.26 If federal funds
        are available, DOT may fund up to 80 percent of the nonfederal share of such projects. 27 DOT funding
        of up to 80 percent is limited to those airports having no scheduled commercial service.28 Certain
        strategic airport investment projects are eligible for up to 100 percent funding from DOT, whether
        classified as commercial service or general aviation.29
                                                                                                 30




        Vero Beach Regional Airport

        Vero Beach Regional airport was classified as a nonprimary commercial service, nonhub31 airport in
        2017 by the FAA.32 In 2018, annual passenger boardings surpassed the 10,000 threshold, reclassifying
        the airport as a commercial service primary, nonhub airport.33 Annual passenger boardings decreased
        in 2019 to slightly under 10,000, reclassifying Vero Beach Regional as a nonprimary commercial
        service, nonhub airport. In 2020, annual passenger boardings decreased drastically resulting in a
        reclassification by the FAA to a general aviation airport. 34

24 S. 332.007(6)(a),  F.S.; AIP funding is available to sponsors, which can include airports, public agencies not owning or
leasing a public-use airport, metropolitan and state planning agencies.
25 See United States Department of Transportation, Order 5100.38D, Change 1, February 26, 2019 (explaining a recipient

of an AIP grant is normally called a sponsor).
26 S. 332.007(6)(c), F.S.
27 Id.
28 Florida Department of Transportation, supra note 22.
29 See s. 332.007(9), F.S. (providing for project criteria qualifying for 100 percent DOT funding).
30 The Florida Department of Transportation – Aviation Office, Florida Aviation Project Handbook 2021-2022, pg. 7 (2021),

https://fdotwww.blob.core.windows.net/sitefinity/docs/default -source/aviation/florida-aviation-project-handbook-(2020-
2021)v7b5cc93c31f25452db01244377cc65215.pdf?sfvrsn= 2ee80049_12 (last visited January 28, 2022).
31 This classification was assigned as the airport had scheduled passenger service and 9,110 enplanements.
32 See FAA, Calendar Year 2019 Final Revenue Enplanements at All Airports, September 25, 2020.
33 This classification was assigned as the airport had scheduled passenger service and more 10,314 enplanements during

the year, but less than 0.05 percent of the annual U.S. commercial enplanements. ; see FAA, Calendar Year 2018 Final
Revenue Enplanements at All Airports, December 20, 2019.
34 See FAA, Calendar Year 2020 Enplanements at U.S. Airports, by State, November 8, 2021 (showing a 69.64%

decrease in enplanements from 2019 to 2020).
STORAGE NAME: h0631.TIE                                                                                            PAGE: 4
DATE: 2/2/2022
        In December of 2015, Elite Airways began direct, non-stop service from Vero Beach to Newark and
        other destinations. City officials did not expect the commercial service to grow at the rate it did,
        surpassing the 10,000 annual enplanement cap set by the FAA for non-primary, nonhub airports.35 As a
        result of the reclassification, Vero Beach Regional stood to lose funding from DOT. Instead of receiving
        up to 80 percent for eligible projects when classified as a general aviation airport, it would only be
        eligible for up to 50 percent as a commercial service airport.36

        Effect of the Bill

        The bill permits DOT funding for up to 80 percent of eligible project costs for airports classified as
        commercial service or general aviation with fewer than 100,000 annual passenger boardings . DOT
        funding will continue to come from the Aviation Grant fund. Annual passenger boardings will be
        determined by the FAA.


    B. SECTION DIRECTORY:
        Section 1         Amends s. 332.007, F.S.; related to FDOT funding eligibility.

        Section 2         Provides an effective date.


                           II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
            None.

        2. Expenditures:
            Indeterminate.37 See Fiscal Comments.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
            None.

        2. Expenditures:
            Indeterminate.38 See Fiscal Comments.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        None.

    D. FISCAL COMMENTS:


35 Nicole Rodriguez, Vero City Council ‘Blindsided’ by Airport Funding Problem, VeroNews.com (January 23, 2020),
http://veronews.com/2020/01/23/ vero-city-council-blindsided-by-airport-funding-problem/ (last visited January 27, 2022).
36 See FAA, Passenger Boarding (Enplanement) and All-Cargo Data for U.S. Airports – Previous Years Airports,

https://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/passenger/previous_years/ (last visited January
31, 2022) (providing data that Fort Lauderdale Executive airport also appears to be trending upward in annual passenger
boardings. In 2018, annual boardings increased 141 percent from the previous year. In 2019, annual passenger boardings
increased 523 percent to reach 7,386).
37 See Florida Department of Transportation, Agency Analysis of 2021 House Bill 631, p. 5-6 (November 05, 2021).
38 Id.
STORAGE NAME: h0631.TIE                                                                                           PAGE: 5
DATE: 2/2/2022
       The bill expands the number of airports qualifying for a larger percentage of DOT funding for eligible
       projects. This change could impact the opportunity of these airports to engage in eligible types of
       projects as the local match requirement is decreased. The cost is shifted to the state, and while the
       match required is indeterminate, all costs are still limited to available aviation project funding within
       DOT’s adopted Work Program.

                                                III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
          raise revenue in the aggregate; or reduce the percentage of sales tax shared with counties or
          municipalities

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       The bill requires neither rulemaking nor does it provide a grant of rulemaking authority.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   Not applicable.




STORAGE NAME: h0631.TIE                                                                                      PAGE: 6
DATE: 2/2/2022
F   L     O    R    I   D   A      H   O   U   S   E   O    F     R    E   P    R   E   S   E   N   T   A   T    I   V   E   S




           HB 631                                                                                                2022




    1                                          A bill to be entitled
    2               An act relating to airport funding; amending s.
    3               332.007, F.S.; revising the types of airports eligible
    4               for specified funding of master planning and eligible
    5               aviation development projects by the Department of
    6               Transportation; providing an effective date.
    7
    8      Be It Enacted by the Legislature of the State of Florida:
    9
10                  Section 1.         Paragraph (c) of subsection (6) of section
11         332.007, Florida Statutes, is amended to read:
12                  332.007        Administration and financing of aviation and
13         airport programs and projects; state plan.—
14                  (6)         Subject to the availability of appropriated funds, the
15         department may participate in the capital cost of eligible
16         public airport and aviation development projects in accordance
17         with the following rates, unless otherwise provided in the
18         General Appropriations Act or the substantive bill implementing
19         the General Appropriations Act:
20                  (c)         When federal funds are not available, the department
21         may fund up to 80 percent of master planning and eligible
22         aviation development projects at publicly owned, publicly
23         operated airports. If federal funds are available, the
24         department may fund up to 80 percent of the nonfederal share of
25         such projects. Such funding is limited to general aviation

                                                         Page 1 of 2

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                                hb0631-00
F   L   O   R    I   D   A    H   O   U   S   E     O    F     R    E   P    R   E   S   E   N   T   A   T    I   V   E   S




        HB 631                                                                                                2022




26      airports, or commercial service airports that have fewer than
27      100,000 passenger boardings per year as determined by the
28      Federal Aviation Administration airports that have no scheduled
29      commercial service.
30               Section 2.        This act shall take effect July 1, 2022.




                                                      Page 2 of 2

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb0631-00
HB 741
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 741 Net Metering
SPONSOR(S): McClure and others
TIED BILLS:       IDEN./SIM. BILLS:                   CS/SB 1024

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                                    Walsh              Keating

  2) State Administration & Technology
     Appropriations Subcommittee

  3) Commerce Committee


                                               SUMMARY ANALYSIS
The role of the Florida Public Service Commission (PSC) is to ensure that Florida's consumers receive some
of their most essential services in a safe, affordable, and reliable manner. Current law requires the PSC to
allow investor-owned electric utilities (IOUs) to recover honestly and prudently invested costs of providing
service, including investments in infrastructure and operating expenses used to provide electric service.

Florida law states that a utility’s full avoided cost is the incremental costs of electric energy or capacity, which,
but for the purchase from a non-utility generator, the utility would have to generate itself or purchase from
another source.

Net energy metering, commonly referred to as net metering, is a billing arrangement designed to compensate
customers who own on-site renewable energy generation systems and export electricity generated on-site to
an electric utility’s system. Net metering is most commonly referenced in relation to customer-owned solar
panels. Net metering requires customers who own on-site renewable energy generation systems to
interconnect with the electric grid.

In 2008, the Legislature required all electric utilities to develop standardized interconnection agreements and a
net metering program for customer-owned renewable generation systems. Under Florida’s current net metering
framework for IOUs, the credit the customer receives on their monthly bill equates the value of the excess
energy to the utility’s retail rate.

Under the bill, the PSC must propose a revised net metering rule for IOUs by January 1, 2023. The proposed
rule must ensure that: net metering customers pay the full cost of electric service and are not subsidized by the
general body of ratepayers; all energy delivered by the IOU is purchased at the applicable retail rate; all energy
delivered by the customer-owned or leased renewable generation to the IOU’s system is credited to the
customer at the IOU’s full avoided cost; and the net metering may include fixed charges, including base
facilities charges, electric grid access fees, or monthly minimum bills.

The bill allows any IOU customer who owns or leases renewable generation that is in service before January 1,
2023, to continue to use the current net metering rate design for ten years.

The bill does not appear to have a fiscal impact on state or local government revenues or expenditures.

The bill provides and effective date of July 1, 2022.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0741.TIE
DATE: 2/1/2022
                                                       FULL ANALYSIS

                                               I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Florida Public Service Commission

        The Florida Public Service Commission (PSC) is an arm of the legislative branch of government. 1 The
        role of the PSC is to ensure that Florida's consumers receive some of their most essential services –
        electric, natural gas, telephone, water, and wastewater – in a safe, affordable, and reliable manner. In
        doing so, the PSC exercises regulatory authority over utilities in one or more of three key areas: rate
        base/economic regulation; competitive market oversight; and monitoring of safety, reliability, and
        service issues.2

        Investor-Owned Electric Utilities

        The PSC regulates the rates and services of investor-owned electric utilities (IOUs).3 There are four
        IOUs in Florida: Florida Power & Light Company (FPL),4 Duke Energy Florida (Duke), Tampa Electric
        Company (TECO), and Florida Public Utilities Corporation.5 Together, these four IOUs serve over 8.1
        million customers in Florida.6 IOU rates and revenues are regulated by the PSC.7 The IOUs must file
        periodic earnings reports, which allow the PSC to monitor earnings levels on an ongoing basis and
        adjust customer rates quickly if a company appears to be overearning.8

        IOUs must provide sufficient and adequate service to customers.9 To fulfill that obligation, utilities
        monitor customer usage patterns in order to plan for future energy needs. Utilities use billing data to
        predict the future energy needs of customers and make investments in their infrastructure based on
        these predictions.10 Current law requires the PSC to allow IOUs to recover honestly and prudently
        invested costs of providing service, including investments in infrastructure and operating expenses
        used to provide electric service.11

        Full Avoided Costs

        An IOU’s full avoided cost is the incremental cost of electric energy or capacity, 12 which, but for a
        purchase from a non-utility generator, the IOU would have to generate itself or purchase from another
        source.13 Full avoided cost is based upon either the utility’s cost to construct and operate its next




1 S. 350.001,   F.S.
2 Florida Public Service Commission, http://www.psc.state.fl.us/ (last visited Jan. 17, 2022).
3 The PSC does not regulate the rates of municipal electric utilities or rural electric cooperatives .
4 FPL acquired Gulf Power Company       in 2019 and merged as of January 3, 2022.
5 Florida Department   of Agriculture and Consumer Services, Electric Utilities, https://www.fdacs.gov/Energy/Florida-
Energy-Clearinghouse/Electric-Utilities (last visited Jan. 19, 2022).
6 Florida Public Service Commission, Facts & Figures of the Florida Utility Industry (2021), p, 4, available at

http://www.psc.state.fl.us/Files/PDF/Publications/Reports/General/Factsandfigures/April%202021. pdf (last visited Jan. 19,
2022).
7 Florida Department of Agriculture and Consumer Services, Electric Utilities, supra at n. 6.
8 Florida Public Service Commission, 2020 Annual Report, supra at n. 5, p. 6.
9 S. 366.03, F.S.
10 Florida Public Service Commission, Agency Analysis of 2022 HB 741, p. 2 (Jan. 3, 2022).
11 S. 366.06, F.S.
12 Capacity is the maximum electric output, in megawatts, that an electricity generator can produce under ideal conditions.

See U.S. Energy Information Administration, What is the difference between electricity generation capacity and electricity
generation?, https://www.eia.gov/tools/faqs/faq.php?id= 101&t=3 (last visited Jan. 22, 2022).
13 S. 366.051, F.S.
STORAGE NAME: h0741.TIE                                                                                             PAGE: 2
DATE: 2/1/2022
        planned generating unit or the cost of purchasing capacity and energy from generating units owned by
        other utilities in the wholesale market.14

        An IOU’s full avoided costs is not the same as the rate it pays for energy provided on an as-available
        basis. Full avoided costs can include avoided capacity and energy costs, while an as-available energy
        rate only includes avoided energy costs, which are largely comprised of fuel costs.15 In 2021, as-
        available energy rates ranged for Florida IOUs from $0.025 to $0.037 per kilowatt hour (kWh).16

        Net Metering

        Net energy metering, commonly referred to as net metering, is a billing arrangement designed to
        compensate customers who own on-site, renewable energy17 generation systems and export electricity
        generated on-site to the utility grid.18 Net metering essentially allows customers to sell excess electricity
        to an electric utility, and the utility credits the customer’s energy bill on a per kWh basis.19 The
        compensation structure for utility customers who engage in net metering varies by location depending
        on state and local policies.20

        Common customer-owned renewable energy generation sources around the country include solar
        panels, natural gas micro-turbines, methane digesters, and small wind power generators; 21 however,
        net metering is most commonly referenced in relation to customer-owned solar panels.

        Net metering requires customers who own on-site renewable energy generation systems to
        interconnect with the electric grid, which allows customers to reliably power their homes even when
        their systems are not generating enough power to meet their energy needs.22 The U.S. Department of
        Energy defines the term “interconnection” as “the technical procedures and legal requirements
        surrounding energy customers’ ability to connect their small-scale renewable energy projects to the
        electricity grid.”23 Utility customers primarily benefit from interconnected renewable generation systems
        through personal use and reducing the amount of electricity they purchase from the utility. 24

        As of August 2021, thirty-seven states, including Florida, have state-developed mandatory net metering
        rules for certain utilities, eight states have statewide compensation rules other than net metering, two
        states have some utilities that allow net metering, and three states offer no form of net metering or
        compensation.25


14 Florida Public Service Commission, States’ Electric Restructuring Activities Update: Wholesale Sales ,

http://www.psc.state.fl.us/Publications/ElectricRestructuringDetails#4 (last visited Jan. 22, 2022).
15 Florida Public Service Commission, Agency Analysis of 2022 HB 741, supra at n. 11, p. 2.
16 Email from Kaley Slattery, Legislative Director, Florida Public Service Commission, Request for informa tion (Feb. 1,

2022).
17 “Renewable energy” means electrical energy produced from a method that uses one or more of the following fuels or

energy sources: hydrogen produced from sources other than fossil fuels, biomass, solar energy, geothermal energy, wind
energy, ocean energy, and hydroelectric power. The term includes the alternative energy resource, waste heat, from
sulfuric acid manufacturing operations and electrical energy produced using pipeline-quality synthetic gas produced from
waste petroleum coke with carbon capture and sequestration. S. 366.91(2)(d), F.S.
18 National Renewable Energy Laboratory, Net Metering, https://www.nrel.gov/state-local-tribal/basics-net-metering.html

(last visited Jan. 20, 2022).
19 Id.
20 Id.
21 National Conference of State Legislatures, State Net Metering Policies (Nov. 20, 2017),

https://www.ncsl.org/research/energy/net-metering-policy-overview-and-state-legislative-updates.aspx (last visited Jan.
20, 2022).
22 U.S. Department of Energy, Grid-Connected Renewable Energy Systems, https://www.energy.gov/energysaver/grid-

connected-renewable-energy-systems (last visited Jan. 22, 2022).
23 U.S. Department of Energy, Renewable Energy: Distributed Generation Policies and Programs ,

https://www.energy.gov/eere/slsc/renewable-energy-distributed-generation-policies-and-programs (last visited Jan. 22,
2022)
24 Florida Public Service Commission, Agency Analysis of 2022 HB 741, supra at n. 11, p. 1.
25 DSIRE, Net Metering, NC Clean Energy Technology Center (August 2021), https://ncsolarcen-

prod.s3.amazonaws.com/wp-content/uploads/2021/08/DS IRE _Net_Metering_August2021.pdf (last visited Jan. 20, 2022).
STORAGE NAME: h0741.TIE                                                                                          PAGE: 3
DATE: 2/1/2022
        Net Metering in Florida

        In 2008, the Legislature required all electric utilities to develop standardized interconnection
        agreements 26 and a net metering27 program for customer-owned renewable generation28 systems.29
        Under this section, the PSC is tasked with establishing requirements relating to expedited
        interconnection and net metering of customer-owned renewable generation by IOUs and may adopt
        rules to accomplish this task.30, 31

        In response to the net metering requirements passed by the Legislature in 2008, the PSC amended
        Rule 25-6.065, F.A.C.,32 to expand the applicability of the rule to all renewable energy types up to two
        megawatts (MW) in capacity.33 The rule creates a billing mechanism by which net metering customers
        can offset their usage through self-generated energy, with any excess energy delivered to the IOU’s
        system. The amount of any excess energy delivered to the IOU is applied to the customer’s next
        monthly bill as a kWh credit. At the end of the calendar year, the IOU pays for any remaining unused
        energy credits at a rate based on the utility’s avoided cost of generating electricity. 34

        Under Florida’s current net metering framework, the credit the customer receives on their monthly bill
        equates the value of the excess energy to the utility’s retail rate. The retail rates for each of the IOUs
        range from roughly $0.12 to $0.15 per kWh.35 A utility’s retail rate accounts for its cost to provide power
        to customers, which includes, but is not limited to, the cost of generation, transmission, distribution,
        fuel, and operating and maintenance expenses.36

        IOUs must charge net metering customers the applicable rates and charges for the electricity provided
        by the utility.37 The applicable rates and charges are dependent on the rate class the customer falls
        under, and these rates and charges can include a fixed monthly customer charge or base facility
        charge, volumetric rates based on consumption, demand rates based on the maximum electric demand
        in a monthly billing cycle, or a combination of the above.38 Additionally, FPL and Duke were recently
        authorized to charge customers a monthly minimum bill of $25 and $30 respectively. 39


26 An interconnection agreement      is a contract between a customer and a utility to interconnect the customer’s renewable
generation system to the utility’s electric grid. See e.g. Florida Public Utilities Company, Interconnection of Customer-
Owned Renewable Generation Systems Application, p. 1, available at https://fpuc.com/wp-content/uploads/FPU17-
123_Interconnection-Form. pdf (last visited Jan. 20, 2022).
27 S. 366.091(2)(d), F.S., defines the term “net metering” as a metering and billing methodology where customer-owned

renewable generation is allowed to offset the customer’s electricity consumption.
28 S. 366.091(2)(c), F.S., defines the term “customer-owned renewable generation” as an electric generating system

located on a customer’s premises that is primarily intended to offset part or all of the customer’s electricity requirements
with renewable energy.
29 S. 366.091(5) and (6), F.S.
30 S. 366.091(5), F.S.
31 Municipal electric utilities and rural cooperatives are required to develop their own standardized interconnection

agreements and net metering programs, but each year they must file a report detailing customer participation in such
programs with the PSC. S. 366.91(6), F.S.
32 This rule was initially promulgated by the PSC in 2002 for the purpose of standardizing and expediting the

interconnection of small solar photovoltaic (PV) systems for customers of IOUs. Florida Public Service Commission,
Agency Analysis of 2022 HB 741, supra at n. 11, p. 1.
33 Id. at 2.
34 Id.
35 Florida Public Service Commission, Florida Investor-Owned Electric Utilities Total Cost for 1,000 Kilowatt Hours –

Residential Service, available at http://www.psc.state.fl.us/Files/PDF/Utilities/Electricgas/BillingAdjustments/ba_total -
2022.pdf (last visited Feb. 1, 2022).
36 Id.
37 R. 25-6.065, F.A.C.
38 Florida Public Service Commission, Agency Analysis of 2022 HB 741, supra at n. 11, p. 2.
39 Florida Power & Light Company, Building a more resilient and sustainable energy future, EnergyNews (January 2022),

available at https://www.fpl.com/#home (last visited Feb. 1, 2022); Sam Sachs, Duk e Energy Florida customers to have
minimum $30 bills, News Channel 8 (Jan. 28, 2022), https://www.wfla.com/news/florida/duke-energy-florida-customers-to-
have-minimum-30-bills/ (last visited Feb. 1, 2022).
STORAGE NAME: h0741.TIE                                                                                              PAGE: 4
DATE: 2/1/2022
        In 2020, Florida electric utilities reported 90,552 customer-owned renewable generation
        interconnections, reflecting more than 30,000 new interconnections since the 59,508 interconnections
        reported in 2019.40 Of the 90,552 customer-owned renewable generation interconnections reported in
        2020, Florida’s four IOUs accounted for 71,567 of those interconnections.41 Almost all customer-owned
        renewable generation installations in Florida are solar. 42 As of year-end 2020, less than one percent of
        Florida’s 10,504,960 electric utility customers had installed renewable generation equipment. 43

        Concerns of cross-subsidization of customers who partake in net metering by non-net metering
        customers have been raised before the PSC.44 There is debate as to the components of the utility’s
        cost of service that are offset by energy generated by net metering customers and, accordingly, the
        appropriate credit to provide for such energy.45

        Effect of the Bill

        The bill requires the PSC to adopt a revised net metering rule that credits excess energy delivered to
        an IOU’s system by customer-owned renewable generation at the full avoided cost rate.

        The bill provides legislative findings that:
            It is in the public interest to promote the development of renewable energy resources in the
                state in a manner that is fair to all public utility customers;
            The development of the solar industry, the decline in the cost of solar panels, and the increase
                in customer-owned renewable generation support the redesign of net metering by the
                commission;
            Customer-owned and leased renewable generation is not available to public utility customers
                who lack the financial resources or who reside in multitenant buildings; and
            The growth of customer-owned renewable generation has resulted in increased cross-
                subsidization of the full cost of service onto the general body of ratepayers.

        The bill requires the PSC to propose a redesigned net metering rate structure that ensures IOU
        customers who own or lease renewable generation pay their full cost of electric service and are not
        cross-subsidized by the general body of ratepayers.

        Under the bill, the PSC must propose a revised net metering rule by January 1, 2023. The bill states
        that this proposed rule must comply with the following criteria:
             The net metering rate structures and billing must ensure that an IOU’s net metering customers
                 pay their full cost of electric service and are not subsidized by the IOU’s general body of
                 ratepayers;
             All energy delivered by the IOU is purchased at its applicable retail rate;
             All energy delivered by the customer-owned or leased renewable generation to the IOU is
                 credited to the customer at the IOU’s full avoided costs; and
             The net metering may include fixed charges, including base facilities charges, electric grid
                 access fees, or monthly minimum bills.



40 Florida Public Service Commission, Review      of the 2021 Ten-Year Site Plans of Florida’s Electric Utilities (Oct. 2021), p.
29, available at http://www.psc.state.fl.us/Files/PDF/Utilities/Electricgas/TenYearSitePlans/2021/ Review.pdf (last visited
Jan. 20, 2022).
41 Florida Public Service Commission, Interconnection and Net Metering of Customer-Owned Renewable Generation

(2020), available at
https://www.floridapsc.com/Files/PDF/Utilities/Electricgas/CustomerRenewable/2020/2020%20Net%20Metering%20Sum
mary%20Spreadsheet/2020% 20Net%20Metering% 20Report.pdf (last visited Jan. 20, 2022).
42 Florida Public Service Commission, Review of the 2021 Ten-Year Site Plans of Florida’s Electric Utilities, supra at n. 38.
43 Florida Public Service Commission, Agency Analysis of 2022 HB 741, supra at n. 11, p. 3.
44 Id. at 4.
45 See Id. (“For example, questions have been raised as to whether the excess energy offsets the utility’s cost of power

plants, given that power plants must be available to meet a renewable energy customer’s electric needs when their
systems are not operating or when their demand exceeds the capability of their renewable energy system.”).
STORAGE NAME: h0741.TIE                                                                                                  PAGE: 5
DATE: 2/1/2022
        The bill allows any IOU customer who owns or leases renewable generation that is in service before
        January 1, 2023, pursuant to a standard interconnection agreement offered by an IOU, to continue to
        use the current net metering rate design and rates for ten years.

        Thus, the effect of the bill is that:
            Customers that currently use net metering or begin to use net metering by the end of this year
               may continue to be credited at the IOU’s retail rate for excess energy delivered to an IOU’s
               system, and
            Beginning in 2023, customers that install renewable generation and wish to use net metering
               will be credited for the excess energy they deliver to an IOU’s system at the IOU’s full avoided
               cost rate as determined by the PSC.46

        The bill directs the PSC to require an IOU requesting a change in base rates to report to the PSC the
        impact of net metering on the IOU’s revenues and cost of service.

    B. SECTION DIRECTORY:
        Section 1: Amends s. 366.91, F.S., relating to renewable energy.

        Section 2: Provides an effective date of July 1, 2022.


                              II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
              None.

        2. Expenditures:
              The bill may have an insignificant impact on state government expenditures, because the bill
              requires the PSC to propose new rules establishing a new rate structure for net metering public
              utility customers.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
              None.

        2. Expenditures:
              None.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        The bill may have an indeterminate negative impact on the revenues of private businesses that install
        customer-owned renewable generation systems, since customers may not purchase these systems if
        they cannot recoup as much of the costs through the new net metering rate design. Some current net
        metering customers may not achieve the expected payback on their renewable generation systems.

    D. FISCAL COMMENTS:
        None.

                                                 III. COMMENTS


46 Avoided   cost rates vary by utility.
STORAGE NAME: h0741.TIE                                                                                    PAGE: 6
DATE: 2/1/2022
   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. The bill does not appear to impact county or municipal governments.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       The bill requires the PSC to propose a new rule for net metering customer rate design by January 1,
       2023.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   Not applicable.




STORAGE NAME: h0741.TIE                                                                               PAGE: 7
DATE: 2/1/2022
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           HB 741                                                                                                2022




    1                                          A bill to be entitled
    2               An act relating to net metering; amending s. 366.91,
    3               F.S.; revising and providing legislative findings
    4               relating to the redesign of net metering to avoid
    5               cross-subsidization of electric service costs between
    6               classes of ratepayers; requiring the Public Service
    7               Commission to propose new net metering rules that
    8               comply with specified criteria by a certain date;
    9               authorizing certain customers who own or lease
10                  renewable generation before a specified date to remain
11                  under the existing net metering rules for a specified
12                  time; providing applicability; requiring certain
13                  public utilities to provide a specified report to the
14                  commission; providing an effective date.
15
16         Be It Enacted by the Legislature of the State of Florida:
17
18                  Section 1.         Subsections (6) through (9) of section 366.91,
19         Florida Statutes, are renumbered as subsections (7) through
20         (10), respectively, subsections (1) and present (7) of that
21         section are amended, and a new subsection (6) is added to that
22         section, to read:
23                  366.91        Renewable energy.—
24                  (1)         The Legislature finds that:
25                  (a)         It is in the public interest to continue promote the

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        HB 741                                                                                                2022




26      development of renewable energy resources in this state in a
27      manner that is fair and equitable to all public utility
28      customers. Renewable energy resources have the potential to help
29      diversify fuel types to meet Florida's growing dependency on
30      natural gas for electric production, minimize the volatility of
31      fuel costs, encourage investment within the state, improve
32      environmental conditions, and make Florida a leader in new and
33      innovative technologies. The development and maturation of the
34      solar energy industry, the substantial decline in the cost of
35      solar panels, and the increase in customer-owned and leased
36      renewable generation support the redesign of net metering by the
37      commission.
38               (b)         Customer-owned and leased renewable generation are not
39      available to many public utility customers who lack the
40      financial resources to purchase or lease rooftop solar panels or
41      who reside in multitenant buildings. The substantial growth of
42      customer-owned and leased renewable generation has resulted in
43      increased cross-subsidization of the full cost of electric
44      service onto the public utility's general body of ratepayers.
45      Therefore, the redesigned net metering rate structures required
46      in paragraph (6)(a) must ensure that public utility customers
47      who own or lease renewable generation pay the full cost of
48      electric service and are not cross-subsidized by the public
49      utility's general body of ratepayers.
50               (6)(a)        On or before January 1, 2023, the commission shall

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        HB 741                                                                                                2022




51      propose a revised net metering rule that complies with the
52      following criteria:
53               1.      The net metering rate structures and billing must
54      ensure that public utility customers owning or leasing renewable
55      generation pay the full cost of electric service and are not
56      subsidized by the public utility's general body of ratepayers.
57               2.      The net metering must ensure that all energy delivered
58      by the public utility is purchased at the public utility's
59      applicable retail rate and that all energy delivered by the
60      customer-owned or leased renewable generation to the public
61      utility is credited to the customer at the public utility's full
62      avoided costs.
63               3.      The net metering may include fixed charges, including
64      base facilities charges, electric grid access fees, or monthly
65      minimum bills, to help ensure that the public utility recovers
66      the fixed costs of serving customers who engage in net metering
67      and that the general body of public utility ratepayers do not
68      subsidize customer-owned or leased generation.
69               (b)         Any public utility customer who owns or leases
70      renewable generation that is in service before January 1, 2023,
71      pursuant to a standard interconnection agreement offered by a
72      public utility, shall be granted 10 years to continue to use the
73      net metering rate design and rates that applied before the
74      revised net metering rule was adopted under paragraph (a). This
75      paragraph applies to customers who purchase or lease re al

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        HB 741                                                                                                2022




76      property upon which customer-owned or leased renewable
77      generation is installed for all or part of that 10-year period.
78               (c)         The commission shall require a public utility
79      requesting a change in base rates under s. 366.06 to report to
80      the commission the impact of net metering on the public
81      utility's revenues and cost of service.
82               (8)(7)        Under the provisions of subsections (5) and (7)(6),
83      when a utility purchases power generated from biogas produced by
84      the anaerobic digestion of agricultural waste, includ ing food
85      waste or other agricultural byproducts, net metering shall be
86      available at a single metering point or as a part of conjunctive
87      billing of multiple points for a customer at a single location,
88      so long as the provision of such service and its associa ted
89      charges, terms, and other conditions are not reasonably
90      projected to result in higher cost electric service to the
91      utility's general body of ratepayers or adversely affect the
92      adequacy or reliability of electric service to all customers, as
93      determined by the commission for public utilities, or as
94      determined by the governing authority of the municipal electric
95      utility or rural electric cooperative that serves at retail.
96               Section 2.         This act shall take effect July 1, 2022.




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                                                                                                             hb0741-00
      TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                            HB 741 by Rep. McClure
                                 Net Metering

                            AMENDMENT SUMMARY
                               February 3, 2022


Amendment 1 by Rep. McClure (Lines 69-77):

  •   Changes the period in which customers who own or lease renewable generation
      prior to January 1, 2023, can utilize the existing net metering rate design from 10
      years to 20 years.
                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 741   (2022)
       Amendment No. 1




            COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                       (Y/N)
       ADOPTED AS AMENDED            (Y/N)
       ADOPTED W/O OBJECTION         (Y/N)
       FAILED TO ADOPT               (Y/N)
       WITHDRAWN                     (Y/N)
       OTHER


 1     Committee/Subcommittee hearing bill:      Tourism, Infrastructure &
 2     Energy Subcommittee
 3     Representative McClure offered the following:
 4
 5          Amendment
 6          Remove lines 69-77 and insert:
 7          (b)    Any public utility customer who owns or leases
 8     renewable generation that is in service before January 1, 2023,
 9     pursuant to a standard interconnection agreement offered by a
10     public utility, shall be granted 20 years to continue to use the
11     net metering rate design and rates that applied before the
12     revised net metering rule was adopted under paragraph (a). This
13     paragraph applies to customers who purchase or lease real
14     property upon which customer-owned or leased renewable
15     generation is installed for all or part of that 20-year period.


     588063 - h0741-line69.docx
      Published On: 2/2/2022 7:09:55 PM
                                   Page 1 of 1
HB 867
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 867 Towing, Storage, and Release of Motor Vehicles
SPONSOR(S): Rizo
TIED BILLS:       IDEN./SIM. BILLS: SB 990

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                                    Walsh              Keating

  2) Civil Justice & Property Rights Subcommittee

  3) Commerce Committee


                                           SUMMARY ANALYSIS
A county or municipal government may contract with one or more wrecker operators to tow or remove
wrecked, disabled, or abandoned vehicles from streets, highways, and accident sites . Counties must establish
maximum rates for the towing of vehicles removed from private property, as well as the towing and storage of
vehicles removed from the scene of an accident or from where a vehicle is towed at the request of a law
enforcement officer.

When an officer has probable cause to believe that a vehicle should be seized under Florida law, was used to
commit a crime, is evidence that a crime has been committed, or was involved in a traffic accident causing
serious injury or death, an investigating agency may place a hold on a motor vehicle stored within a wrecker
operator’s storage facility for up to 5 business days. The investigating agency must inform the wrecker operator
within the five-day holding period if the agency intends to hold the vehicle for a longer period.

A vehicle or vessel may be towed at the direction of an owner or lessee of real property, or their designee if the
vehicle or vessel is parked on the property without permission. The towing or removal of any vehicle or vessel
from private property without the consent of the registered owner or another legally authorized person in
control of that vehicle or vessel is subject to strict compliance with certain conditions and restrictions.

The bill provides protections to ensure that wrecker operator companies are paid for the towing and storage
charges of impounded vehicles. The bill also clarifies that a rental agreement is not sufficient to prove agency
when a wrecker operator is releasing a vehicle to an owner’s agent.

The bill does not appear to effect state or local government revenues or expenditures.

The bill provides an effective date of July 1, 2022.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0867.TIE
DATE: 2/2/2022
                                                      FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        A county or municipal government may contract with one or more wrecker operators to tow or remove
        wrecked, disabled, or abandoned vehicles from streets, highways, and accident sites. 1 After the
        establishment of such contract(s), the county or municipality must create a “wrecker operator system”
        to apportion towing assignments between the contracted wrecker services. This apportionment may
        occur through the creation of geographic zones, a rotation schedule, or a combination of those
        methods.2 Any wrecker operator that is included in the wrecker operator system is an “authorized
        wrecker operator” in the jurisdiction, while any wrecker operation not included is an “unauthorized
        wrecker operator.”3

        Counties must establish maximum rates for the towing of vehicles removed from private property, as
        well as the towing and storage of vehicles removed from the scene of an accident or from where a
        vehicle is towed at the request of a law enforcement officer. Municipalities are also authorized to adopt
        maximum rate ordinances. If a municipality enacts an ordinance to establish towing fees, the county
        ordinance will not apply within the municipality.4

        Vehicle Holds, Wrecker Operator Storage Facilities, and Liens

        An investigating agency may place a hold on a motor vehicle stored within a wrecker operator’s storage
        facility for up to five business days.5 A hold may be applied when a law enforcement officer has
        probable cause to believe the vehicle:
             Should be seized under the Florida Contraband and Forfeiture Act or ch. 379, F.S.;
             Was used as the means of committing a crime;
             Is evidence that tends to show a crime has been committed; or
             Was involved in a traffic accident resulting in death or personal injury. 6

        An officer may also apply a hold when the vehicle is impounded under s. 316.193, F.S., (relating to
        driving under the influence), or s. 322.34, F.S., (relating to driving with a suspended or revoked
        license), or when the officer is complying with a court order.7 The hold must be in writing and include
        the name and agency of the law enforcement officer placing the hold, the date and time the hold is
        placed on the vehicle, a general description of the vehicle, the specific reason for the hold, the
        condition of the vehicle, the location where the vehicle is being held, and the name and contact
        information for the wrecker operator and storage facility.8


1 S. 323.002(1)(c),  F.S. The definition of “vehicle” does not include a vessel or a trailer intended for the transport on land
of a vessel. See s. 320.01, F.S. (defining “motor vehicle” for the purpose of issuance of motor vehicle licenses and
separately defining a “marine boat trailer dealer” as a person engaged in “business of buying … trailers specifically
designed to be drawn by another vehicle and used for the transportation on land of vessels.”) But see s. 323.002(4)(b),
F.S., which expressly authorizes a county or municipality to adopt or maintain an ordinance or rule that imposes a
reasonable administrative fee or charge on the registered owner or other legally authorized person in control of a vehicle
or vessel that is towed by an authorized wrecker operator, not to exceed 25 percent of the maximum towing rate, to cover
the cost of enforcement, including parking enforcement, by the county or municipality when the vehicle or vessel is towed
from public property. This administrative fee, if imposed and collected by an authorized wrecker operator or towing
business, must be remitted to the county or municipality after it is collected.
2 Id.
3 S. 323.002(1)(a)-(b), F.S.
4 Ss. 125.0103(1)(c) and 166.043(1)(c), F.S.
5 S. 323.001(1), F.S.
6 S. 323.001(4)(a)-(e), F.S.
7 S. 323.001(4)(f)-(g), F.S.
8 S. 323.001(5), F.S.
STORAGE NAME: h0867.TIE                                                                                                 PAGE: 2
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         The investigating agency must inform the wrecker operator within the five-day holding period if
         the agency intends to hold the vehicle for a longer period.9 The vehicle owner is liable for towing and
         storage charges for the first five days. If the vehicle is held beyond five days, the investigating agency
         may choose to have the vehicle stored at a designated impound lot or to pay for storage at the wrecker
         operator’s storage facility.10

         A wrecker operator or other person engaged in the business of transporting vehicles or vessels
         who recovers, removes, or stores a vehicle or vessel possesses a lien on the vehicle or vessel for
         a reasonable towing fee and storage fee if the vehicle or vessel is removed upon instructions
         from:
              The owner of the vehicle or vessel;
              The owner, lessor, or authorized person acting on behalf of the owner/lessor of property on
                which the vehicle or vessel is wrongly parked (as long as the removal is performed according to
                s. 715.07, F.S.);
              The landlord or authorized person acting on behalf of a landlord, when the vehicle or vessel
                remains on the property after the expiration of tenancy and the removal is performed pursuant
                to enforcing a lien pursuant to s. 83.806, F.S., or for the removal of property left after a lease is
                vacated under s. 715.104, F.S.; or
              Any law enforcement agency.11

        Recovery of a Vehicle or Vessel from a Towing-Storage Operator

        Pursuant to s. 713.78(10), F.S., towing and storage operators must permit vehicle or vessel owners,
        lienholders, insurance company representatives, or agents to inspect a towed vehicle or vessel and
        release to that person all personal property that was not affixed when the vehicle or vessel came into
        the custody of the towing or storage operator.12 The authorization of agency must be documented in an
        original writing acknowledged by the owner before a notary public or someone authorized to administer
        oaths. However, this subsection does not provide guidance on how an interested party may take
        possession of the vehicle or vessel once it has been towed or stored.

        Whoever violates these inspection provisions is guilty of a third-degree felony which is punishable by a
        fine that does not exceed $5,00013 and a term of imprisonment that does not exceed five years.14

        Towing from Private Property

        A vehicle or vessel may be towed at the direction of an owner or lessee of real property, or their
        designee if the vehicle or vessel is parked on the property without permission.15 A person regularly
        engaged in the business of towing vehicles or vessels must conduct the tow. The towing or removal of
        any vehicle or vessel from private property without the consent of the registered owner or another
        legally authorized person in control of that vehicle or vessel is subject to strict compliance with certain
        conditions and restrictions. These conditions and restrictions include: 16
             Any towed or removed vehicle or vessel must be stored at a site within a specified distance of
                the point of removal.17


9 S. 323.001(2),   F.S.
10 S. 323.001(2)(a)-(b), F.S.
11 S. 713.78(2), F.S.
12 S. 713.78(10), F.S.
13 S. 775.083(1)(c), F.S.
14 S. 775.082(3)(e), F.S.
15 S. 715.07(2), F.S.
16 S. 715.07(2)(a), F.S.
17 S. 715.07(2)(a), F.S. The vehicle or vessel must be stored within a 10-mile radius of the removal point in a county with a

population of at least 500,000 and within a 15-mile radius of the removal point in a county with a population of fewer than
500,000. If no towing business operates within the given area, these radiuses are extended to 20 miles (for a county with
a population of at least 500,000) and 30 miles (for a county with a population of fewer than 500,000). The si te must be
open from 8 am to 6 pm when the towing business is in operation and must post a telephone number where the operator
STORAGE NAME: h0867.TIE                                                                                              PAGE: 3
DATE: 2/2/2022
               The towing company must notify local law enforcement, within 30 minutes of completing the
                tow, of the storage site; the time the vehicle or vessel was towed; and the make, model, color,
                and license plate number of the vehicle or description and registration number of the vessel.
                The towing truck operator is required to record the name of the law enforcement officer who
                received the information in the operator’s trip record.
               The owner of a vehicle or vessel must be allowed to redeem the vehicle or vessel from the
                towing company if the owner seeks the return of the vehicle or vessel before the tow has
                occurred. The towing company may charge a reasonable service fee of up to one-half of the
                posted towing rate for the return of the vehicle or vessel and may tow the vehicle or vessel if the
                owner is unable to pay the fee after a reasonable opportunity.
               A towing company may not pay or accept money in exchange for the privilege of towing or
                removing vehicles or vessels from a particular location.
               If the towing company requires the owner of a vehicle to pay the costs of towing and storage
                before redemption, the towing company must file and keep on record its rate schedule with the
                local law enforcement agency and post the rate schedule at the storage site.
               Trucks and wreckers used by the towing company must have the name, address, and telephone
                number of the company printed on both sides of the vehicle in contrasting letters. The name of
                the towing company must be in 3-inch or taller permanently affixed letters, while the address
                and telephone number must be in 1-inch or taller permanently affixed letters.
               The towing company must exercise reasonable care when entering a vehicle or vessel to
                remove it. The towing company is liable for any damage to the vehicle caused by failure to
                exercise reasonable care.
               The vehicle or vessel must be released to its owner within one hour after request. The owner
                maintains a right to inspect the vehicle or vessel, and the towing company operation may not
                require a release or waiver of damages to be signed as a condition of returning the vehicle. The
                towing company operator must issue a detailed, single receipt to the owner of the vehicle or
                vessel.

        Additionally, a vehicle or vessel may not be towed without consent of its owner, except from property
        appurtenant to a single-family residence, unless a notice is posted which states the area in which that
        vehicle or vessel is parked is reserved or otherwise unavailable for unauthorized vehicles or that the
        vehicle or vessel is subject to being removed at the owner’s or operator’s expense and the notice
        meets the following requirements:18
            The notice is placed prominently at each driveway access or curb cut, within five feet from the
                public right-of-way line. If the property has no curbs or access barriers, signs must be posted at
                least once every 25 feet of lot frontage.
            The notice must indicate, in not less than 2-inch high, light-reflective letters on a contrasting
                background, that unauthorized vehicles will be towed away at the owner’s expense and contain
                the words “tow-away zone” in letters not less than 4 inches high.
            The notice must provide the name and telephone number of the towing company.
            The sign containing the notices must be permanently installed in such a way that the words
                “tow-away zone” is between three and six feet above ground level and the sign must have been
                continuously maintained on the property for not less than 24 hours before the towing of any
                vehicle or vessel.
            Local governments may also require permitting and inspection of signage before any towing is
                authorized.
            A business with 20 or fewer parking spaces may satisfy the requirement by prominently
                displaying a sign stating “Reserved Parking for Customers Only Unauthorized Vehicles or
                Vessels Will be Towed Away At the Owner’s Expense” in not less than 4-inch high, light-
                reflective letters on a contrasting background.




of the site can be reached when the site is closed. Upon receipt of a telephoned request to open the site and redeem a
vehicle of vessel, the operator must return to the site within one hour.
18 S. 715.07(2)(a), F.S.
STORAGE NAME: h0867.TIE                                                                                           PAGE: 4
DATE: 2/2/2022
                A property owner towing or removing vessels from real property must post a notice, consistent
                 with the requirements in the statute which apply to vehicles, 19 that unauthorized vehicles or
                 vessels will be towed away at the owners’ expense.

        A vehicle or vessel may be towed even in the absence of a tow-away zone sign if the vehicle or vessel
        is parked in such a way that it restricts the normal operation of a business or restricts access to a
        private driveway and the business owner or lessee requests the tow.20

        Effect of the Bill

        The bill provides protections to ensure that wrecker operator companies are paid for the towing and
        storage charges of impounded vehicles and clarifies that a rental agreement is not sufficient to prove
        agency when releasing a vehicle to an owner’s agent.

        The bill clarifies that an investigating agency may have a wrecker operator tow a vehicle directly to the
        investigating agency’s storage facility. If an investigating agency tows a vehicle directly to the agency’s
        storage facility, the bill requires that, prior to releasing the vehicle to the owner or lienholder, the
        investigating agency must obtain proof of payment by the owner or lienholder of the vehicle of the
        towing and storage charges incurred by the wrecker operator. If an investigating agency does not
        obtain such proof of payment prior to releasing the vehicle, the investigating agency must pay the
        wrecker operator such towing and storage charges within 60 days after the vehicle is released.

        Under the bill, an investigating agency that places a hold on an impounded vehicle beyond 5 days,
        excluding holidays and weekends, has the vehicle removed to a designated impound lot, and releases
        the vehicle to the owner or lienholder without obtaining proof of payment of the towing and storage
        charges incurred by the wrecker operator must pay the wrecker operator such charges within 60 days
        after the vehicle is released.

        The bill requires that payment to a wrecker operator for accrued towing and storage charges by an
        investigating agency pursuant to a judicial finding that there is no probable cause to continue
        impoundment must be paid by the investigating agency within 60 days after the judicial finding.

        The bill provides that for the purposes of a wrecker operator releasing a vehicle to the owner’s agent, a
        rental agreement is insufficient to convey agency. A rental car company must appoint a person its
        agent by notarized writing.

    B. SECTION DIRECTORY:
        Section 1: Amends s. 323.001, F.S., relating to wrecker operator storage facilities; vehicle holds.

        Section 2: Amends s. 713.78, F.S., relating to liens for recovering, towing, or storing vehicles and
        vessels.

        Section 3: Amends s. 715.07, F.S., relating to vehicles or vessels parked on private property; towing.

        Section 4: Provides an effective date of July 1, 2022.


                                II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
             None.


19 These requirements        are contained in s. 715.07(2)(a), F.S.
20 S. 715.07(2)(a),   F.S.
STORAGE NAME: h0867.TIE                                                                                       PAGE: 5
DATE: 2/2/2022
       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None. See Fiscal Comments.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill may help ensure wrecker operators recover towing and storage fees.

   D. FISCAL COMMENTS:
       Under the bill, an investigating law enforcement agency may be required to pay the towing and storage
       charges of an impounded vehicle if the agency fails to obtain proof of payment prior to releasing the
       vehicle to the owner or lienholder.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
          raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
          municipalities.

       2. Other:
          Not applicable.

   B. RULE-MAKING AUTHORITY:
       The bill does require or authorize rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       The bill and the existing statute the bill would amend use the term “investigating agency” without
       providing a definition of the term.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   Not applicable.




STORAGE NAME: h0867.TIE                                                                                     PAGE: 6
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           HB 867                                                                                                2022




    1                                         A bill to be entitled
    2               An act relating to towing, storage, and release of
    3               motor vehicles; amending s. 323.001, F.S.; providing
    4               construction; providing requirements for the release
    5               of a motor vehicle towed to an investigating agency's
    6               storage facility; requiring the investigating agency
    7               to pay towing and storage charges to a wrecker
    8               operator under certain circumstances; amending ss.
    9               713.78 and 715.07, F.S.; prohibiting a towing company
10                  from releasing a motor vehicle owned by a rental car
11                  company to the person who rented the vehicle unless
12                  the person is appointed as an agent of the rental car
13                  company; providing requirements for evidence of such
14                  agency; providing an effective date.
15
16         Be It Enacted by the Legislature of the State of Florida:
17
18                  Section 1.        Subsection (1), paragraph (a) of subsection
19         (2), and subsection (3) of section 323.001, Florida Statutes,
20         are amended to read:
21                  323.001      Wrecker operator storage facilities; vehicle
22         holds.—
23                  (1)(a)      An investigating agency may place a hold on a motor
24         vehicle stored within a wrecker operator's storage facility for
25         up to a period not to exceed 5 days, excluding holidays and

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        HB 867                                                                                                2022




26      weekends, unless extended in writing as provided in subsection
27      (2).
28               (b)         This section does not prohibit an investigating agency
29      from having a wrecker operator tow a vehicle directly from the
30      scene of the tow to the investigating agency's storage facility.
31      If a vehicle is towed directly from the scene of the tow to the
32      investigating agency's storage facility, the investigating
33      agency may not release the vehicle to the owner or lienholder of
34      the vehicle until proof of payment of the towing and storage
35      charges incurred by the wrecker operator is presented to the
36      investigating agency. If the investigating agency releases the
37      vehicle to the owner or lienholder without obtaining such proof
38      of payment, the investigating agency must pay the wrecker
39      operator such towing and storage charges within 60 days after
40      the vehicle is released.
41               (2)         The investigating agency must notify the wrecker
42      operator in writing within 5 days, excluding holidays and
43      weekends, whether the hold is to be continued. If no
44      notification follows this period of time, the wrecker operator
45      may release the vehicle to the designated person pursuant to s.
46      713.78.
47               (a)         If the hold is to continue beyond 5 days, excluding
48      holidays and weekends, the investigating agency may have the
49      vehicle removed to a designated impound lot, in which event the
50      vehicle will not be released by the investigating agency to the

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        HB 867                                                                                                2022




51      owner or lienholder of the vehicle until proof of payment of the
52      towing and storage charges incurred by the wrecker operator is
53      presented to the investigating agency. If the investigating
54      agency releases the vehicle to the owner or lienholder without
55      obtaining such proof of payment, the investigating agency must
56      pay the wrecker operator such towing and storage charges within
57      60 days after the vehicle is released.
58               (3)         If there is a judicial finding of no probable ca use
59      for having continued the immobilization or impoundment, the
60      investigating agency ordering the hold must pay the wrecker
61      operator the accrued charges for any towing and storage within
62      60 days after the judicial finding.
63               Section 2.         Subsection (10) of section 713.78, Florida
64      Statutes, is amended to read:
65               713.78        Liens for recovering, towing, or storing vehicles
66      and vessels.—
67               (10)(a)         Persons who provide services pursuant to this
68      section shall permit vehicle or vessel owners, lienholders,
69      insurance company representatives, or their agents, which agency
70      is evidenced by an original writing acknowledged by the owner
71      before a notary public or other person empowered by law to
72      administer oaths, to inspect the towed vehicle or vessel and
73      shall release to the owner, lienholder, or agent the vehicle,
74      vessel, or all personal property not affixed to the vehicle or
75      vessel which was in the vehicle or vessel at the time the

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         HB 867                                                                                                2022




 76      vehicle or vessel came into the custody of the person providing
 77      such services.
 78               (b)         Notwithstanding any provision of this section to the
 79      contrary, a rental car agreement does not constitute evidence
 80      that the person who rented a vehicle is an agent of the owner of
 81      the rental car. A towing company may not release a vehicle owned
 82      by a rental car company to the person who rented the vehicle
 83      unless the rental car company appoints the person who rented the
 84      vehicle as its agent, which agency is evidenced by an original
 85      writing acknowledged by the rental car company before a notary
 86      public or other person empowered by law to administer oaths,
 87      authorizing the person to inspect and redeem the towed vehicle.
 88               Section 3.         Paragraph (a) of subsection (2) of section
 89      715.07, Florida Statutes, is amended to read:
 90               715.07        Vehicles or vessels parked on private property;
 91      towing.—
 92               (2)         The owner or lessee of real property, or any person
 93      authorized by the owner or lessee, which person may be the
 94      designated representative of the condominium association if the
 95      real property is a condominium, may cause any vehicle or vessel
 96      parked on such property without her or his permission to be
 97      removed by a person regularly engaged in the business of towing
 98      vehicles or vessels, without liability for the costs of removal,
 99      transportation, or storage or damages caused by such removal,
100      transportation, or storage, under any of the following

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         HB 867                                                                                                2022




101      circumstances:
102               (a)         The towing or removal of any vehicle or vessel from
103      private property without the consent of the registered owner or
104      other legally authorized person in control of that vehicle or
105      vessel is subject to substantial compliance with the following
106      conditions and restrictions:
107               1.a.        Any towed or removed vehicle or vessel must be stored
108      at a site within a 10-mile radius of the point of removal in any
109      county of 500,000 population or more, and within a 15 -mile
110      radius of the point of removal in any county of fewer than
111      500,000 population. That site must be open for the purpose of
112      redemption of vehicles on any day that the person or firm towing
113      such vehicle or vessel is open for towing purposes, from 8:00
114      a.m. to 6:00 p.m., and, when closed, shall have prominently
115      posted a sign indicating a telephone number where the operator
116      of the site can be reached at all times. Upon receipt of a
117      telephoned request to open the site to redeem a vehicle or
118      vessel, the operator shall return to the site within 1 hour or
119      she or he will be in violation of this section.
120               b.      If no towing business providing such service is located
121      within the area of towing limitations set forth in sub-
122      subparagraph a., the following limitations apply: any towed or
123      removed vehicle or vessel must be stored at a site within a 20-
124      mile radius of the point of removal in any county of 500,000
125      population or more, and within a 30-mile radius of the point of

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         HB 867                                                                                                2022




126      removal in any county of fewer than 500,000 population.
127               2.      The person or firm towing or removing the vehicle or
128      vessel shall, within 30 minutes after completion of such towing
129      or removal, notify the municipal police department or, in an
130      unincorporated area, the sheriff, of such towing or removal, the
131      storage site, the time the vehicle or vessel was towed or
132      removed, and the make, model, color, and license plate number of
133      the vehicle or description and registration number of the vessel
134      and shall obtain the name of the person at that department to
135      whom such information was reported and note that name on the
136      trip record.
137               3.      A person in the process of towing or removing a vehicle
138      or vessel from the premises or parking lot in which the vehicle
139      or vessel is not lawfully parked must stop when a person seeks
140      the return of the vehicle or vessel. The vehicle or vessel must
141      be returned upon the payment of a reasonable service fee of not
142      more than one-half of the posted rate for the towing or removal
143      service as provided in subparagraph 6. The vehicle or vessel may
144      be towed or removed if, after a reasonable opportunity, the
145      owner or legally authorized person in control of the vehicle or
146      vessel is unable to pay the service fee. If the vehicle or
147      vessel is redeemed, a detailed signed receipt must be given to
148      the person redeeming the vehicle or vessel.
149               4.      A person may not pay or accept money or other valuable
150      consideration for the privilege of towing or removing vehicles

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         HB 867                                                                                                2022




151      or vessels from a particular location.
152               5.      Except for property appurtenant to and obviously a part
153      of a single-family residence, and except for instances when
154      notice is personally given to the owner or other legally
155      authorized person in control of the vehicle or vessel that the
156      area in which that vehicle or vessel is parked is reserved or
157      otherwise unavailable for unauthorized vehicles or vessels and
158      that the vehicle or vessel is subject to being removed at the
159      owner's or operator's expense, any property owner or lessee, or
160      person authorized by the property owner or lessee, before towing
161      or removing any vehicle or vessel from private property without
162      the consent of the owner or other legally authorized person in
163      control of that vehicle or vessel, must post a notice meeting
164      the following requirements:
165               a.      The notice must be prominently placed at each driveway
166      access or curb cut allowing vehicular access to the property
167      within 10 feet from the road, as defined in s. 334.03(22). If
168      there are no curbs or access barriers, the signs must be posted
169      not fewer than one sign for each 25 feet of lot frontage.
170               b.      The notice must clearly indicate, in not fewer than 2-
171      inch high, light-reflective letters on a contrasting background,
172      that unauthorized vehicles will be towed away at the owner's
173      expense. The words "tow-away zone" must be included on the sign
174      in not fewer than 4-inch high letters.
175               c.      The notice must also provide the name and current

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         HB 867                                                                                                2022




176      telephone number of the person or firm towing or removing the
177      vehicles or vessels.
178               d.      The sign structure containing the required notices must
179      be permanently installed with the words "tow-away zone" not
180      fewer than 3 feet and not more than 6 feet above ground level
181      and must be continuously maintained on the property for not
182      fewer than 24 hours before the towing or removal of any vehicles
183      or vessels.
184               e.      The local government may require permitting and
185      inspection of these signs before any towing or removal of
186      vehicles or vessels being authorized.
187               f.      A business with 20 or fewer parking spaces satisfies
188      the notice requirements of this subparagraph by prominently
189      displaying a sign stating "Reserved Parking for Customers Only
190      Unauthorized Vehicles or Vessels Will be Towed Away At the
191      Owner's Expense" in not fewer than 4-inch high, light-reflective
192      letters on a contrasting background.
193               g.      A property owner towing or removing vessels from real
194      property must post notice, consistent with the requirements in
195      sub-subparagraphs a.-f., which apply to vehicles, that
196      unauthorized vehicles or vessels will be towed away at the
197      owner's expense.
198
199      A business owner or lessee may authorize the removal of a
200      vehicle or vessel by a towing company when the vehicle or vessel

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         HB 867                                                                                                2022




201      is parked in such a manner that restricts the normal operation
202      of business; and if a vehicle or vessel parked on a public
203      right-of-way obstructs access to a private driveway the owner,
204      lessee, or agent may have the vehicle or vessel removed by a
205      towing company upon signing an order that the vehicle or vessel
206      be removed without a posted tow-away zone sign.
207               6.      Any person or firm that tows or removes vehicles or
208      vessels and proposes to require an owner, operator, or person in
209      control or custody of a vehicle or vessel to pay the costs of
210      towing and storage before redemption of the vehicle or vessel
211      must file and keep on record with the local law enforcement
212      agency a complete copy of the current rates to be charged for
213      such services and post at the storage site an identical rate
214      schedule and any written contracts with property owners,
215      lessees, or persons in control of property which auth orize such
216      person or firm to remove vehicles or vessels as provided in this
217      section.
218               7.      Any person or firm towing or removing any vehicles or
219      vessels from private property without the consent of the owner
220      or other legally authorized person in control or custody of the
221      vehicles or vessels shall, on any trucks, wreckers as defined in
222      s. 713.78(1)(c), or other vehicles used in the towing or
223      removal, have the name, address, and telephone number of the
224      company performing such service clearly printed in contras ting
225      colors on the driver and passenger sides of the vehicle. The

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         HB 867                                                                                                2022




226      name shall be in at least 3-inch permanently affixed letters,
227      and the address and telephone number shall be in at least 1-inch
228      permanently affixed letters.
229               8.      Vehicle entry for the purpose of removing the vehicle
230      or vessel shall be allowed with reasonable care on the part of
231      the person or firm towing the vehicle or vessel. Such person or
232      firm shall be liable for any damage occasioned to the vehicle or
233      vessel if such entry is not in accordance with the standard of
234      reasonable care.
235               9.a.        When a vehicle or vessel has been towed or removed
236      pursuant to this section, it must be released to its owner or
237      person in control or custody within 1 hour after requested. Any
238      vehicle or vessel owner or person in control or custody has the
239      right to inspect the vehicle or vessel before accepting its
240      return, and no release or waiver of any kind which would release
241      the person or firm towing the vehicle or vessel from liability
242      for damages noted by the owner or person in control or custody
243      at the time of the redemption may be required from any vehicle
244      or vessel owner or person in control or custody as a condition
245      of release of the vehicle or vessel to its owner or person in
246      control or custody.
247               b.      Notwithstanding any provision of this section to the
248      contrary, a towing company may not release a vehicle owned by a
249      rental car company to the person who rented the vehicle unless
250      the rental car company appoints the person who rented the

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         HB 867                                                                                                2022




251      vehicle as its agent, which agency is evidenced by an original
252      writing acknowledged by the rental car company before a notary
253      public or other person empowered by law to administer oaths,
254      authorizing the person to inspect and redeem the towed vehicle.
255               c.      A detailed receipt showing the legal name of the
256      company or person towing or removing the vehicle or vessel must
257      be given to the person paying towing or storage charges at the
258      time of payment, whether requested or not requested.
259               Section 4.        This act shall take effect July 1, 2022.




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                                                                                                              hb0867-00
HB 871
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 871 Department of Highway Safety and Motor Vehicles
SPONSOR(S): Brannan
TIED BILLS:       IDEN./SIM. BILLS: SB 914

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    1) Tourism, Infrastructure & Energy Subcommittee                                    Johnson            Keating

    2) Infrastructure & Tourism Appropriations
       Subcommittee

    3) Commerce Committee


                                               SUMMARY ANALYSIS
The bill addresses several matters involving the Department of Highway Safety and Motor Vehicles (DHSMV).
The bill:
    Provides law enforcement agencies additional time to submit required data concerning violations of the
        Ban on Texting While Driving Law and provides DHSMV additional time to compile this information and
        submit an annual report.
    Requires any operator of a motor vehicle to provide proof of insurance when requested by a law
        enforcement officer.
    Extends the private rebuilt vehicle inspection program, currently only authorized in Miami-Dade County,
        to 11 additional counties.
    Prohibits collection of title fees and service charges (except for expedited title fees) from a surviving
        spouse transferring a motor vehicle title into his or her name when only the deceased spouse’s name is
        on the title.
    Provides that a charter bus is an “apportionable vehicle” to make Florida law consistent with the
        International Registration Plan.
    Prohibits persons with certain unpaid violations from obtaining a replacement motor vehicle registration
        or license plate to avoid a registration stop.
    Establishes time frames within which various dealers and manufacturers of recreational vehicles and
        mobile homes must report to DHSMV changes in required insurance and surety bonds.
    Adds minimum insurance requirements for commercial motor vehicles carrying passengers, referring to
        requirements in federal regulations.

The bill will have an indeterminate fiscal impact on state government revenues and an insignificant impact on
state government expenditures. It does not appear to impact local government revenues or expenditures.

The bill has an effective date of July 1, 2021.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0871.TIE
DATE: 2/1/2022
                                                        FULL ANALYSIS

                                                 I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Texting While Driving Report Due Date

         Current Situation

         Florida’s Ban on Texting While Driving Law prohibits, with specified exceptions, a person from
         operating a motor vehicle while manually typing or entering multiple letters, numbers, symbols, or other
         characters into a wireless communications device1 or while sending or reading data on such a device
         for the purpose of nonvoice interpersonal communication. This includes texting, e-mailing, and instant
         messaging.2

         When a law enforcement officer issues a citation for a violation of this law, the officer must record the
         race and ethnicity of the violator. All law enforcement agencies must maintain and report such
         information to the Department of Highway Safety and Motor Vehicles (DHSMV). DHSMV must
         annually, by February 1 of each year, report the data collected to the Governor, the President of the
         Senate, and the Speaker of the House of Representatives. This data must be reported at least by
         statewide totals for local law enforcement agencies, state law enforcement agencies, and state
         university law enforcement agencies. The statewide total for local law enforcement agencies must
         combine the data for the county sheriffs and the municipal law enforcement agencies. 3

         Effect of the Bill

         The bill revises the deadline for DHSMV’s annual report on violations of the Ban on Texting While
         Driving Law. It requires law enforcement agencies to provide the race and ethnicity of violators to
         DHSMV by April 1 of each year. On July, 1, 2023, and on July 1 of each year thereafter, DHSMV must
         report the data to the Governor, the President of the Senate, and the Speaker of the House or
         Representatives.

         Proof of Motor Vehicle Insurance

         Current Situation

         Under Florida law, any person required to carry motor vehicle insurance must have proof of such
         insurance in his or her immediate possession while operating a motor vehicle.4

         If it appears to a law enforcement officer or other person authorized to issue traffic citations that vehicle
         operator is also the owner or registrant of the vehicle, the operator must show proper proof of insurance
         upon demand.5

         Effect of the Bill

         The bill requires any operator of a motor vehicle, regardless of whether the person is the owner of the
         vehicle, to show proof of insurance upon the demand of a law enforcement officer or other person
         authorized to issue traffic violations.


1 For purposes of s. 316.305, F.S., the term “wireless communications device” means any handheld device used or capable of bein g

used in a handheld manner, that is designed or intended to receive or transmit text or character -based messages, access or store data,
or connect to the Internet or any communications service and that allows text communications.
2 S. 316.305(3), F.S.
3 S. 316.305(5), F.S. A copy of the report for January 1, 2020, through December 31, 2020 is available at:

https://www3.flhsmv.gov/pdf/cabinetreports/TextingWhileDrivingReport_2020.pdf (last visited Jan. 12, 2022).
4 S. 316.646(1), F.S.
5 S. 316.646(2), F.S.

STORAGE NAME: h0871.TIE                                                                                                        PAGE: 2
DATE: 2/1/2022
           Private Rebuilt Vehicle Inspection Program

           Current Situation

           A rebuilt vehicle inspection is an examination of a rebuilt vehicle, specified documents, photographs of
           damage, receipts and invoices of certain repairs made, and proof that notice of rebuilding of the vehicle
           has been reported to the National Motor Vehicle Title Information System. 6

           In 2013, the Legislature directed DHSMV to implement and evaluate a pilot program allowing rebuilt
           vehicle inspection services to be offered by the private sector. The Private Rebuilt Vehicle Inspection
           Program (PRVIP) was implemented in Miami-Dade County from October 1, 2013, through June 30,
           2015, and was subsequently extended through June 30, 2018. The program expired on July 1, 2018,
           since no legislation was enacted to continue it. Consequently, all rebuilt vehicle inspections reverted to
           DHSMV, resulting in an increase in DHSMV-provided rebuilt vehicle inspection services for fiscal year
           2018-2019.7 In 2019, the pilot program was reenacted and amended.8 The program still applies to only
           Miami-Dade County.9

           A PRVIP participant must sign a memorandum of understanding with DHSMV allowing the participant
           to conduct rebuilt motor vehicle inspections and specifying the requirements for oversight, bonding and
           insurance, procedures, and forms, and requiring the electronic transmission of documents. The annual
           authorization period for PRVIP participation runs from October 1 through September 30 each year and
           requires participants to annually renew their authorizations. Currently, there are 14 authorized facilities
           operating under PRVIP.10

           Under PRVIP, DHSMV must conduct an onsite facility inspection at least once per quarter and must
           immediately terminate any participant from the program who fails to meet the minimum eligibility
           requirements.11

           In July 2021, DHSMV issued its report on the effectiveness of the PRVIP Program. Although the
           program was only authorized for Miami-Dade County, customers from other counties also utilize the
           PRVIPs. Therefore, to meet customer demand, DHSMV recommended that locations in additional
           counties be authorized in statute. In addition to Miami-Dade County, DHSMV has offices in Escambia,
           Bay, Leon, Marion, Duval, Orange, Hillsborough, Volusia, Palm Beach, Broward and Manatee Counties
           and could provide required oversight to prospective PRVIPs in those counties.12

           Effect of the Bill

           The bill requires DHSMV, by October 1, 2022, to expand the PRVIP to Bay, Broward, Duval, Escambia,
           Hillsborough, Leon, Manatee, Marion, Orange, Palm Beach and Volusia Counties.

           The bill also removes an obsolete requirement that DHSMV, by July 1, 2021, submit a report on
           PRVIP.

           Surviving Spouse Title Transfer

           Current Situation

           A certificate of title is a record that proves ownership of a vehicle, which can be a certificate in either
           paper or electronic form, and is authorized or stored by DHSMV.13 In Florida, most vehicles are

6
    S. 319.141(1)(b), F.S.
7 Department of Highway Safety and Motor Vehicles (DHSMV), Private Reb uilt Inspection Program, July 1, 2021. p. 2.

https://www.flhsmv.gov/pdf/cabinetreports/privaterebuiltreport.pdf (last visited Dec. 16, 2021).
8 Ch. 2019-169, Laws of Fla.

9 S. 319.141(2),     F.S.
10 DHSMV, supra note 7.
11 S. 319.141(8), F.S
12 DHSMV supra note 7 at 4.
13 S. 319.001(1), F.S.

STORAGE NAME: h0871.TIE                                                                                               PAGE: 3
DATE: 2/1/2022
         required to have a certificate of title. However, there are exceptions for mopeds, motorized bicycles,
         and trailers weighing less than 2,000 pounds.14 A person is required to apply for a title in his or her
         name after purchasing a new vehicle, bringing a vehicle into Florida, or at any time the ownership of a
         vehicle changes.15

         For transferring a motor vehicle title, a fee of $75.25 applies. The fee is distributed as follows:
              Base Title fee of $48 goes to General Revenue.
              Odometer Fee of $1 goes to the Highway Safety Operating Trust Fund.
              Title Security Fee of $1 goes to General Revenue.
              State Transportation Title Fee of $21 goes to the Department of Transportation.
              Title Service Fee of $4.25 goes to the agency processing the certificate of title, which may be
                 either DHSMV or the county tax collector.16

         In 2017, the Legislature passed CS/SB 16417 prohibiting DHSMV and county tax collectors from
         charging any fee or service charge, except for an expedited title fee, for removing a deceased spouse
         from a motor vehicle title when the co-owner is the surviving spouse.18 This exemption does not apply
         when only the deceased spouse’s name is on the title.

         Effect of the Bill

         The bill prohibits DHSMV and county tax collectors from charging any fee or service charge, except for
         an expedited title fee, to issue a certificate of title solely to change the ownership of a motor vehicle
         from a deceased spouse’s name to the surviving spouse’s name.

         Charter Buses/Apportionable Vehicles

         Current Situation

         The International Registration Plan (IRP) is a reciprocity agreement among states of the United States,
         the District of Columbia, and provinces of Canada which recognizes the registration of commercial
         motor vehicles (CMVs) registered by other jurisdictions. The plan provides for payment of apportioned
         licensing fees based on the total distance that these vehicles are operated in all member jurisdictions.19

         For purposes of motor vehicle licensing, Florida law defines the term “apportionable vehicle” as any
         vehicle, except recreational vehicles, vehicles displaying restricted plates, city pickup and delivery
         vehicles, buses used in transportation of chartered parties, and government-owned vehicles, which is
         used or intended for use in two or more IRP member jurisdictions that allocate or proportionally register
         vehicles and which is used for the transportation of persons for hire or is designed, used, or maintained
         primarily for the transportation of property meets certain weight and axle requirements.20

         In 2016, the IRP removed the charter bus exemption from its definition of apportionable vehicle.
         Therefore, Florida statutes are inconsistent with the current IRP definitions.21

         Effect of the Bill

         The bill provides that charter buses are no longer excepted from the statutory definition of
         “apportionable vehicle,” making Florida’s statutory definition consistent with the IRP.

         Motor Vehicle Registration Stop

14 DHSMV, Liens and Titles, http://www.flhsmv.gov/dmv/faqtitle.html (last visited Nov. 18, 2021).
15 Id.

16 Ss. 319.32 and 319.324,      F.S.
17 Ch. 2017-89, Laws of Fla.
18 S. 319.32(7), F.S.
19 International Registration Plan, Inc., Welcome to IRP, Inc. https://www.irponline.org/ (last visited Nov. 3, 2021).
20 S. 320.01(24), F.S.
21 DHSMV, Agency Analysis of 2022 House Bill 871, p. 3. (Dec. 17, 2021).

STORAGE NAME: h0871.TIE                                                                                                  PAGE: 4
DATE: 2/1/2022
         Current Situation

         Under Florida law, if the name of an applicant for a motor vehicle registration appears on a DHSMV list
         of persons with unpaid tolls,22 unpaid parking fines,23 unpaid red light camera violations,24 or wrecker
         liens,25 a license plate or revalidation sticker may not be issued until that person's name no longer
         appears on the list or until the person presents a receipt from the governmental entity or the clerk of
         court showing that the outstanding fines have been paid or liens have been satisfied. This applies only
         to the annual renewal of a motor vehicle registration and does not apply to the transfer of a registration
         of a motor vehicle sold by a licensed motor vehicle dealer, except for the transfer of registrations which
         include the annual renewals.26

         While current law prohibits individuals with the above stops from renewing their registration, the law lets
         them obtain a replacement license plate, allowing them to circumvent the collection process.27

         According to DHSMV, between October 2019 and October 2021, 3,994 registrations had their license
         plates replaced via a “replace registration” transaction while an open stop existed. Of these, over 3,700
         were for unpaid toll violations.28

         Effect of the Bill

         The bill provides that these prohibitions against renewing a motor vehicle registration apply both to an
         annual renewal of a registration and the replacement of the motor vehicle registration or license plate.

         Garage Liability Insurance/Surety Bonds

         Current Situation

         Florida law requires mobile home dealers, recreational vehicle dealers, mobile home manufacturers,
         and recreational vehicle manufacturers, distributors, or importers to provide certain surety bonds, cash
         bonds, or irrevocable letters of credit to DHSMV, which must be conditioned on the dealer,
         manufacturer, distributor, or importer’s compliance with specified laws and certain provisions in
         contracts regarding the sale of mobile homes or recreational vehicles. 29

         An application for a license as a recreational vehicle dealer must contain a statement that the applicant
         is insured under a garage liability insurance30 policy, which must include, at a minimum, $25,000
         combined single limit liability coverage, including bodily injury and property damage protection, and
         $10,000 personal injury protection, if the applicant is to be licensed as a dealer in, or intends to sell,
         recreational vehicles.31

         Current law does not provide a timeframe for mobile home dealers, recreational vehicle dealers, mobile
         home manufacturers, or recreational vehicle manufacturers, importers, or distributors to submit to
         DHSMV the required surety or cash bonds or irrevocable letters of credit. Further, there is no required
         timeframe for recreational vehicle dealers to submit to DHSMV the required proof of garage liability
         insurance. Thus, DHSMV often must contact these entities to obtain this information. Failure to have



22 S. 316.1001(4), F.S.
23 S. 316.1967(6), F.S.
24 S. 318.15(3), F.S.
25 S. 713.78(13), F.S.
26 S. 320.03(8), F.S.
27 Attachment to E-mail from Kevin Jacobs, Legislative Affairs Director, DHSMV, 2022 Legislative Concepts, p. 1. (Jan. 25, 2022).
28 Email from Kevin Jacobs, Legislative Affairs Director, DHSMV, fyi   – toll stop legislation part of HSMV bill (Jan. 10, 2022).
29 Ss. 320.77(16), 320.771(16), and 320.8225(5), F.S.
30 Garage liability insurance is specifically designed for automotive repair shops, dealerships, towing companies, and service s tations.

This insurance includes general liability which covers bodily injury and property damage for others.
31 S. 320.771(3)(j), F.S.

STORAGE NAME: h0871.TIE                                                                                                             PAGE: 5
DATE: 2/1/2022
         the required garage liability insurance or surety bond, cash bond, or letter of credit submitted violates
         Florida law and may expose consumers and other stakeholders to financial loss. 32

         In 2021, the Legislature codified insurance and surety bond requirements for motor vehicle dealers but
         did not include mobile home dealers, or recreational vehicle dealers, manufacturers, importers, and
         distributors.33

         Effect of the Bill

         The bill requires that, within 10 calendar days of any renewal or continuation of or material change in a
         surety bond, a cash bond, or irrevocable letter of credit or issuance of a new surety bond, mobile home
         dealers and mobile home and recreational vehicle manufacturers, distributors, and importers must
         deliver to DHSMV, in a DHSMV-prescribed manner, a copy of the renewed, continued, changed, or
         new surety bond, cash bond, or irrevocable letter of credit.

         The bill requires recreational vehicle dealers and mobile home dealers who deal in recreational
         vehicles to carry garage liability insurance for the period of their DHSMV license and within 10 calendar
         days after any renewal, continuation of, or material change to such policy, or issuance of a new policy,
         to deliver to DHSMV, in a DHSMV-prescribed manner, the new policy.

         According to DHSMV, this timeframe will help ensure that mobile home and recreational vehicle
         manufacturers, distributors, and importers submit and maintain any required garage liability insurance
         or surety bonds, cash bonds, or letters of credit in place at the time of an original application or renewal
         of a dealer license and when changes take place during the period of DHSMV licensure.34

         Commercial Motor Vehicle – Liability Insurance

         Current Situation

         Under Florida law, commercial motor vehicles must be insured with the following minimum levels of
         combined bodily liability insurance and property damage liability insurance in addition to any other
         insurance requirements:
              $50,000 per occurrence for a commercial motor vehicle with a gross vehicle weight of 26,000
                 pounds or more, but less than 35,000 pounds.
              $100,000 per occurrence for a commercial motor vehicle with a gross vehicle weight of 35,000
                 pounds or more, but less than 44,000 pounds.
              $300,000 per occurrence for a commercial motor vehicle with a gross vehicle weight of 44,000
                 pounds or more.
              All commercial motor vehicles subject to regulations of the United States Department of
                 Transportation must be insured in an amount equivalent to the minimum levels of financial
                 responsibility as set forth in those regulations.
         A violation is a noncriminal traffic infraction, punishable as a nonmoving violation. 35

         Federal regulations separately provide the minimum required levels of financial responsibility for motor
         carriers carrying property and for motor carriers carrying passengers.36

         The minimum levels currently required by federal regulations for-hire motor carriers of passengers
         operating in interstate or foreign commerce are:37




32 DHSMV, supra note 21 at 4.
33 Attachment to E-mail from Kevin Jacobs, Legislative Affairs Director, DHSMV, 2022 Legislative Concepts, p. 2. (Jan. 25, 2022).
34 DSHMV, supra note 21 at 6.
35 S. 627.7415, F.S.
36 49 C.FR. part 387, subpart A, provides minimum levels of financial responsibility for commercial motor carriers carrying prop erty.

Subpart B, provides minimum levels of financial responsibility for motor carriers carrying passengers.
37 80 FR 63709, Oct. 21, 2015, as amended at 83 FR 22876, May 17, 2018.

STORAGE NAME: h0871.TIE                                                                                                           PAGE: 6
DATE: 2/1/2022
                                                                                                 Minimum
                          Vehicle Seating Capacity
                                                                                                 Limits

                          (1) Any vehicle with a seating capacity of 16 passengers               $5,000,000
                          or more, including the driver
                          (2) Any vehicle with a seating capacity of 15 passengers
                                                                                                 $1,500,000
                          or less, including the driver


        Currently, Florida law does not incorporate these federal regulations; therefore; Florida law does not
        conform with federal regulations.

        Effect of the Bill

        The bill requires all commercial motor vehicles subject to the regulations of the United States
        Department of Transportation, 49 C.F.R., part 387, subpart B, relating to motor carriers of passengers,
        as these regulations may be amended, to be insured in an amount equivalent to the minimum levels of
        financial responsibility set forth in federal regulations. This will allow DHSMV to enforce federal
        insurance requirements on buses and other commercial motor vehicles carrying passengers. 38

        Effective Date

        The bill has an effective date of July 1, 2021.

    B. SECTION DIRECTORY:
        Section 1         Amends s. 316.03, F.S., relating to wireless communications devices; prohibition.

        Section 2         Amends s. 316.646, F.S., relating to security required; proof of security and display
                          thereof.

        Section 3         Amends s. 319.141, F.S., relating to the rebuilt motor vehicle inspection program.

        Section 4         Amends s. 319.32, F.S., relating to fees; service charges; disposition.

        Section 5         Amends s. 320.01, F.S., providing definitions.

        Section 6         Amends s. 320.03, F.S., relating to registration; duties of tax collectors; International
                          Registration Plan.

        Section 7         Amends s. 320.77, F.S., relating to license required of mobile home dealers.

        Section 8         Amends s. 320.771, F.S., relating to license required of recreational vehicle dealers.

        Section 9         Amends s. 320.8225, F.S., relating to mobile home and recreational vehicle
                          manufacturer, distributor, and importer license.

        Section 10        Amends s. 627.7415, F.S., relating to commercial motor vehicles, additional liability
                          insurance coverage.

        Section 11        Provides an effective date.


                             II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT


38 DHSMV, supra note 21 at 6.

STORAGE NAME: h0871.TIE                                                                                          PAGE: 7
DATE: 2/1/2022
    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
            Indeterminate.

            Including charter buses in the definition of an apportionable vehicle may result in an indeterminate
            decrease in revenues to DHSMV, as registration fees for charter buses will be apportioned between
            the states within which these vehicles operate.

            Prohibiting individuals who have motor vehicle registration stops from replacing their vehicle
            registration and license plate until satisfying the stop may result in increased payments of fees and
            fines. This may result in an indeterminate increase in revenues to the state and collection
            authorities.

            Allowing a surviving spouse to transfer a vehicle title into his or her name when only the deceased
            spouse is named on the title without the payment of a title transfer fee may result in a decrease in
            revenues to tax collectors, the Highway Safety Operating Trust Fund, the State Transportation Trust
            Fund and the General Revenue Fund.

        2. Expenditures:
            Expanding PRVIP will require a minimal increase of staffing and resources at regional offices where
            the program is implemented. Staffing and resource needs would be determined based on the
            number of authorized PRVIP facilities in each region. This oversight could be accomplished using
            existing resources.39

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
            Allowing a surviving spouse to transfer a vehicle title into his or her name when only the deceased
            spouse is named on the title without the payment of a title transfer fee may result in a decrease in
            revenues to tax collectors.

        2. Expenditures:
            None.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        Expanding the PRVIP to additional counties may have a positive impact on business opportunities for
        residents in those counties and simultaneously may have a negative impact on PRVIP operators in
        Miami-Dade County, as vehicles may be inspected at locations in counties closer the registered
        owner’s location.

        Surviving spouses transferring a vehicle title into their name when only the deceased spouse is named
        on the title will be exempt from the $70 title transfer fee.

    D. FISCAL COMMENTS:
        According to DHSMV, the bill will have a moderate impact on its technology resources and resources
        dedicated to its motorist modernization projects.40 These costs are associated with training, updated
        procedures, and programming costs. According to DHSMV, these costs can be absorbed using existing
        resources.41



39 DHSMV supra note 9 at 4.
40 DSHMV, supra note 22 at 8.
41 Email from Kevin Jacobs, Legislative Affairs Director, DHSMV, RE: HB 871 DHSMV Package (Jan. 3, 2022).

STORAGE NAME: h0871.TIE                                                                                     PAGE: 8
DATE: 2/1/2022
                                              III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. This bill does not appear to impact county or municipal governments.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       The bill does not require or authorize rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.




STORAGE NAME: h0871.TIE                                                                          PAGE: 9
DATE: 2/1/2022
F   L     O    R    I   D   A    H   O   U   S   E     O    F     R    E   P    R   E   S   E   N   T   A   T    I   V   E   S




           HB 871                                                                                                2022




    1                                         A bill to be entitled
    2               An act relating to the Department of Highway Safety
    3               and Motor Vehicles; amending s. 316.305, F.S.;
    4               requiring law enforcement agencies to annually report
    5               race and ethnicity data of certain violators to the
    6               department; revising the date by which the department
    7               must begin annually reporting such data to the
    8               Governor and the Legislature; amending s. 316.646,
    9               F.S.; deleting a precondition to a requirement that
10                  the operator of a motor vehicle display proof of
11                  maintenance of security to a law enforcement officer
12                  or certain other persons; amending s. 319.141, F.S.;
13                  extending the date by which the department must
14                  implement a rebuilt motor vehicle inspection program;
15                  adding counties where the program must be implemented;
16                  deleting an obsolete provision; amending s. 319.32,
17                  F.S.; prohibiting the department and a tax collector
18                  from charging fees or service charges, except a
19                  certain fee, under certain circumstances; amending s.
20                  320.01, F.S.; revising the definition of the term
21                  "apportionable vehicle"; amending s. 320.03, F.S.;
22                  revising applicability; amending s. 320.77, F.S.;
23                  requiring licensed mobile home dealers to deliver
24                  certain documents to the department within a certain
25                  timeframe; amending s. 320.771, F.S.; specifying the

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        HB 871                                                                                                2022




26               required term of a certain garage liability insurance
27               policy; requiring licensed recreational vehicle
28               dealers to deliver certain documents to the department
29               within a certain timeframe; amending s. 320.8225,
30               F.S.; requiring licensed mobile home manufacturers and
31               recreational vehicle manufacturers, distributors, and
32               importers to submit certain documents to the
33               department within a certain timeframe; amending s.
34               627.7415, F.S.; requiring that certain commercial
35               motor vehicles meet certain federal financial
36               responsibility requirements; providing an effective
37               date.
38
39      Be It Enacted by the Legislature of the State of Florida:
40
41               Section 1.         Subsection (5) of section 316.305, Florida
42      Statutes, is amended to read:
43               316.305        Wireless communications devices; prohibition.—
44               (5)         When a law enforcement officer issues a citation for a
45      violation of this section, the law enforcement officer must
46      record the race and ethnicity of the violator. All law
47      enforcement agencies must maintain such information and report
48      the information to the department by April 1 annually in a form
49      and manner determined by the department. Beginning July 1, 2023
50      February 1, 2020, the department shall annually report the data

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        HB 871                                                                                                2022




51      collected under this subsection to the Governor, the President
52      of the Senate, and the Speaker of the House of Representatives.
53      The data collected must be reported at least by statewide totals
54      for local law enforcement agencies, state law enforcement
55      agencies, and state university law enforcement agencies. The
56      statewide total for local law enforcement agencies shall combine
57      the data for the county sheriffs and the municipal law
58      enforcement agencies.
59               Section 2.         Subsection (2) of section 316.646, Florida
60      Statutes, is amended to read:
61               316.646        Security required; proof of security and display
62      thereof.—
63               (2)         If, upon a comparison of the vehicle registration
64      certificate or other evidence of registration or ownership with
65      the operator's driver license or other evidence of personal
66      identity, it appears to a law enforcement officer or other
67      person authorized to issue traffic citations that the operator
68      is also the owner or registrant of the vehicle, Upon the demand
69      of a the law enforcement officer or other person authorized to
70      issue traffic citations, the operator shall display proper proof
71      of maintenance of security as specified by subsection (1).
72               Section 3.         Subsections (2) and (10) of section 319.141,
73      Florida Statutes, are amended to read:
74               319.141        Rebuilt motor vehicle inspection program.—
75               (2)         By October 1, 2022 2019, the department shall

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         HB 871                                                                                                2022




 76      implement a program in Bay, Broward, Duval, Escambia,
 77      Hillsborough, Leon, Manatee, Marion, Miami-Dade, Orange, Palm
 78      Beach, and Volusia Counties County for rebuilt inspection
 79      services offered by private sector participants.
 80               (10)        On or before July 1, 2021, the department shall
 81      submit a written report to the President of the Senate and the
 82      Speaker of the House of Representatives evaluating the
 83      effectiveness of the program and whether to expand the program
 84      to other counties.
 85               Section 4.         Subsection (7) of section 319.32, Florida
 86      Statutes, is amended to read:
 87               319.32        Fees; service charges; disposition.—
 88               (7)         Notwithstanding any other provision of this section,
 89      the department and tax collector may not charge any fee or
 90      service charge, except for the expedited title fee, if
 91      applicable:,
 92               (a)         For a certificate of title issued for a motor vehicle
 93      solely to remove a deceased co-owner from a title registered in
 94      the names of two persons if the other co-owner is the surviving
 95      spouse; or
 96               (b)         To issue a certificate of title solely to change the
 97      ownership of a motor vehicle from a deceased spouse's name to
 98      the surviving spouse's name.
 99               Section 5.         Subsection (24) of section 320.01, Florida
100      Statutes, is amended to read:

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         HB 871                                                                                                2022




101               320.01        Definitions, general.—As used in the Florida
102      Statutes, except as otherwise provided, the term:
103               (24)        "Apportionable vehicle" means any vehicle, except
104      recreational vehicles, vehicles displaying restricted plates,
105      city pickup and delivery vehicles, buses used in transportation
106      of chartered parties, and government-owned vehicles, which is
107      used or intended for use in two or more member jurisdictions
108      that allocate or proportionally register vehicles and which is
109      used for the transportation of persons for hire or is designed,
110      used, or maintained primarily for the transportation of property
111      and:
112               (a)         Is a power unit having a gross vehicle weight in
113      excess of 26,000 pounds;
114               (b)         Is a power unit having three or more axles, regardless
115      of weight; or
116               (c)         Is used in combination, when the weight of such
117      combination exceeds 26,000 pounds gross vehicle weight.
118
119      Vehicles, or combinations thereof, having a gross vehicle weight
120      of 26,000 pounds or less and two-axle vehicles may be
121      proportionally registered.
122               Section 6.         Subsection (8) of section 320.03, Florida
123      Statutes, is amended to read:
124               320.03        Registration; duties of tax collectors;
125      International Registration Plan.—

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         HB 871                                                                                                2022




126               (8)         If the applicant's name appears on the list referred
127      to in s. 316.1001(4), s. 316.1967(6), s. 318.15(3), or s.
128      713.78(13), a license plate or revalidation sticker may not be
129      issued until that person's name no longer appears on the list or
130      until the person presents a receipt from the governmental entity
131      or the clerk of court that provided the data showing that the
132      fines outstanding have been paid. This subsection does not apply
133      to the owner of a leased vehicle if the vehicle is registered in
134      the name of the lessee of the vehicle. The tax collector and the
135      clerk of the court are each entitled to receive monthly, as
136      costs for implementing and administering this subsection, 10
137      percent of the civil penalties and fines recovered from such
138      persons. As used in this subsection, the term "civil penalties
139      and fines" does not include a wrecker operator's lien as
140      described in s. 713.78(13). If the tax collector has private tag
141      agents, such tag agents are entitled to receive a pro rata share
142      of the amount paid to the tax collector, based upon the
143      percentage of license plates and revalidation stickers issued by
144      the tag agent compared to the total issued within the county.
145      The authority of any private agent to issue license plates shall
146      be revoked, after notice and a hearing as provided in chapter
147      120, if he or she issues any license plate or revalidation
148      sticker contrary to the provisions of this subsection. This
149      section applies both only to the annual renewal in the owner's
150      birth month of a motor vehicle registration and the replacement

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         HB 871                                                                                                2022




151      of the motor vehicle registration or license plate, but does not
152      apply to the transfer of a registration of a motor vehicle sold
153      by a motor vehicle dealer licensed under this chapter, except
154      for the transfer of registrations which includes the annual
155      renewals. This section does not affect the issuance of the title
156      to a motor vehicle, notwithstanding s. 319.23(8)(b).
157               Section 7.         Paragraph (a) of subsection (16) of section
158      320.77, Florida Statutes, is amended to read:
159               320.77        License required of mobile home dealers.—
160               (16)        SURETY BOND, CASH BOND, OR IRREVOCABLE LETTER OF
161      CREDIT REQUIRED.—
162               (a)         Before any license shall be issued or renewed, the
163      applicant or licensee shall deliver to the department a good and
164      sufficient surety bond, cash bond, or irrevocable letter of
165      credit, executed by the applicant or licensee as principal.
166      Within 10 calendar days after any renewal or continuation of or
167      material change in such surety bond, cash bond, or irrevocable
168      letter of credit or issuance of a new surety bond, a licensee
169      shall deliver to the department, in a manner prescribed by the
170      department, a copy of the renewed, continued, changed, or new
171      surety bond, cash bond, or irrevocable letter of credit. The
172      bond or irrevocable letter of credit shall be in a form to be
173      approved by the department and shall be conditioned upon the
174      dealer's complying with the conditions of any written contract
175      made by the dealer in connection with the sale, exchange, or

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176      improvement of any mobile home and his or her not violating any
177      of the provisions of chapter 319 or this chapter in the conduct
178      of the business for which the dealer is licensed. The bond or
179      irrevocable letter of credit shall be to the department and in
180      favor of any retail customer who shall suffer any loss as a
181      result of any violation of the conditions contained in this
182      section. The bond or irrevocable letter of credit shall be for
183      the license period, and a new bond or irrevocable letter of
184      credit or a proper continuation certificate shall be delivered
185      to the department at the beginning of each license period.
186      However, the aggregate liability of the surety in any one
187      license year shall in no event exceed the sum of such bond, or,
188      in the case of a letter of credit, the aggregate liability of
189      the issuing bank shall not exceed the sum of the credit. The
190      amount of the bond required shall be as follows:
191               1.      A single dealer who buys, sells, or deals in mobile
192      homes and who has four or fewer supplemental licenses shall
193      provide a surety bond, cash bond, or irrevocable letter of
194      credit executed by the dealer applicant or licensee in the
195      amount of $25,000.
196               2.      A single dealer who buys, sells, or deals in mobile
197      homes and who has more than four supplemental licenses shall
198      provide a surety bond, cash bond, or irrevocable letter of
199      credit executed by the dealer applicant or licensee in the
200      amount of $50,000.

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         HB 871                                                                                                2022




201
202      For the purposes of this paragraph, any person who buys, sells,
203      or deals in both mobile homes and recreational vehicles shall
204      provide the same surety bond required of dealers who buy, sell,
205      or deal in mobile homes only.
206               Section 8.         Paragraph (j) of subsection (3) and paragraph
207      (a) of subsection (16) of section 320.771, Florida Statutes, are
208      amended to read:
209               320.771        License required of recreational vehicle dealers. —
210               (3)         APPLICATION.—The application for such license shall be
211      in the form prescribed by the department and subject to such
212      rules as may be prescribed by it. The application shall be
213      verified by oath or affirmation and shall contain:
214               (j)         Evidence A statement that the applicant is insured
215      under a garage liability insurance policy, which shall include,
216      at a minimum, $25,000 combined single-limit liability coverage,
217      including bodily injury and property damage protection, and
218      $10,000 personal injury protection, if the applicant is to be
219      licensed as a dealer in, or intends to sell, recreational
220      vehicles. Such policy must be for the license period. Within 10
221      calendar days after any renewal or continuation of or material
222      change in such policy or issuance of a new policy, the licensee
223      shall deliver to the department, in a manner prescribed by the
224      department, a copy of such renewed, continued, changed, or new
225      policy. However, a garage liability policy is not required for

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         HB 871                                                                                                2022




226      the licensure of a mobile home dealer who sells only park
227      trailers.
228
229      The department shall, if it deems necessary, cause an
230      investigation to be made to ascertain if the facts set forth in
231      the application are true and shall not issue a license to the
232      applicant until it is satisfied that the facts set forth in the
233      application are true.
234               (16)        BOND.—
235               (a)         Before any license shall be issued or renewed, the
236      applicant shall deliver to the department a good and sufficient
237      surety bond, executed by the applicant as principal and by a
238      surety company qualified to do business in the state as surety.
239      Within 10 calendar days after any renewal or continuation of or
240      material change in such surety bond or issuance of a new surety
241      bond, a licensee shall deliver to the department, in a manner
242      prescribed by the department, a copy of such renewed, continued,
243      changed, or new surety bond. The bond shall be in a form to be
244      approved by the department and shall be conditioned upon the
245      dealer's complying with the conditions of any written contract
246      made by that dealer in connection with the sale, exchange, or
247      improvement of any recreational vehicle and his or her not
248      violating any of the provisions of chapter 319 or this chapter
249      in the conduct of the business for which he or she is licensed.
250      The bond shall be to the department and in favor of any retail

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         HB 871                                                                                                2022




251      customer who shall suffer any loss as a result of any violation
252      of the conditions hereinabove contained. The bond shall be for
253      the license period, and a new bond or a proper continuation
254      certificate shall be delivered to the department at the
255      beginning of each license period. However, the aggregate
256      liability of the surety in any one license year shall in no
257      event exceed the sum of such bond. The amount of the bond
258      required shall be as follows:
259               1.      A single dealer who buys, sells, or deals in
260      recreational vehicles and has four or fewer supplemental
261      licenses shall provide a surety bond in the amount of $10,000.
262               2.      A single dealer who buys, sells, or deals in
263      recreational vehicles and who has more than four supplemental
264      licenses shall provide a surety bond in the amount of $20,000.
265
266      For the purposes of this paragraph, any person who buys, sells,
267      or deals in both mobile homes and recreational vehicles shall
268      provide the same surety bond required of dealers who buy, sell,
269      or deal in mobile homes only.
270               Section 9.          Paragraphs (a) and (b) of subsection (5) of
271      section 320.8225, Florida Statutes, are amended to read:
272               320.8225           Mobile home and recreational vehicle
273      manufacturer, distributor, and importer license.—
274               (5)         REQUIREMENT OF ASSURANCE.—
275               (a)         Annually, prior to the receipt of a license to

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         HB 871                                                                                                2022




276      manufacture mobile homes, the applicant or licensee shall submit
277      a surety bond, cash bond, or letter of credit from a financial
278      institution, or a proper continuation certificate, sufficient to
279      assure satisfaction of claims against the licensee for failure
280      to comply with appropriate code standards, failure to provide
281      warranty service, or violation of any provisions of this
282      section. The amount of the surety bond, cash bond, or letter of
283      credit must be $50,000. Only one surety bond, cash bond, or
284      letter of credit shall be required for each manufacturer,
285      regardless of the number of factory locations. The surety bond,
286      cash bond, or letter of credit must be to the department, in
287      favor of any retail customer who suffers a loss arising out of
288      noncompliance with code standards or failure to honor or provide
289      warranty service. The department may disapprove any bond or
290      letter of credit that does not provide assurance as provided in
291      this section. Within 10 calendar days after any renewal or
292      continuation of or material change in such surety bond, cash
293      bond, or letter of credit or issuance of a new surety bond, cash
294      bond, or letter of credit, a licensee shall deliver to the
295      department, in a manner prescribed by the department, a copy of
296      such renewed, continued, changed, or new surety bond, cash bond,
297      or letter of credit.
298               (b)         Annually, prior to the receipt of a license to
299      manufacture, distribute, or import recreational vehicles, the
300      applicant or licensee shall submit a surety bond, or a proper

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         HB 871                                                                                                2022




301      continuation certificate, sufficient to assure satisfaction of
302      claims against the licensee for failure to comply with
303      appropriate code standards, failure to provide warranty service,
304      or violation of any provisions of this section. The amou nt of
305      the surety bond must be $10,000 per year. The surety bond must
306      be to the department, in favor of any retail customer who
307      suffers loss arising out of noncompliance with code standards or
308      failure to honor or provide warranty service. The department may
309      disapprove any bond that does not provide assurance as provided
310      in this section. Within 10 calendar days after any renewal or
311      continuation of or material change in such surety bond or
312      issuance of a new surety bond, a licensee shall deliver to the
313      department, in a manner prescribed by the department, a copy of
314      such renewed, continued, changed, or new surety bond.
315               Section 10.             Subsection (4) of section 627.7415, Florida
316      Statutes, is amended to read:
317               627.7415           Commercial motor vehicles; additional liability
318      insurance coverage.—Commercial motor vehicles, as defined in s.
319      207.002 or s. 320.01, operated upon the roads and highways of
320      this state shall be insured with the following minimum levels of
321      combined bodily liability insurance and property damage
322      liability insurance in addition to any other insurance
323      requirements:
324               (4)         All commercial motor vehicles subject to regulations
325      of the United States Department of Transportation, 49 C.F.R.

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326      part 387, subparts subpart A and B, and as may be hereinafter
327      amended, shall be insured in an amount equivalent to the minimum
328      levels of financial responsibility as set forth in such
329      regulations.
330
331      A violation of this section is a noncriminal traffic infraction,
332      punishable as a nonmoving violation as provided in chapter 318.
333               Section 11.          This act shall take effect July 1, 2022.




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HB 1287
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 1287 Pub. Rec./Information Held by a Utility Owned or Operated by a Unit of Local
Government
SPONSOR(S): Botana and Yarborough
TIED BILLS:       IDEN./SIM. BILLS: SB 1740

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                                    Neuffer            Keating

  2) Government Operations Subcommittee

  3) Commerce Committee

                                                     SUMMARY ANALYSIS
Under current law, certain information held by a utility owned or operated by a unit of local government, is
exempt from disclosure as a public record. This information includes:
    Information related to the security of technology, processes, or practices designed to protect the utility’s
       networks, computers, programs, and data, which, if disclosed, would facilitate the alteration, disclosure,
       or destruction of such data or information technology resources; and
    Information related to existing or proposed information technology systems or industrial control systems
       which, if disclosed, would facilitate alteration or destruction of such systems in a manner that would
       adversely impact the safe and reliable operation of the systems and the utility.

The bill expands this public record exemption to include the following:
    Information related to threat detection, defense, deterrence, or response plans and action for
        information technology (IT) and operational technology (OT) systems, including plans and actions made
        or taken in response to a ransomware or cyberattack on or threat to IT or OT systems.
    Information related to insurance or other risk mitigation products or coverages for the protection of the
        IT and OT systems and data.
    Critical energy infrastructure information, whether created or received by the utility.

Critical energy infrastructure information is defined as specific engineering, vulnerability, or detailed design
information about proposed or existing critical infrastructure which:
     Includes details about the production, generation, transportation, transmission, or distribution of energy.
     Could be useful in planning an attack on critical infrastructure.
     Provides more than a general location of critical energy infrastructure.

Critical infrastructure is defined as existing or proposed systems and assets, whether physical or virtual, the
incapacity or destruction of which would negatively affect security, economic security, health, or public safety.

The bill provides that these public record exemptions are subject to repeal under the Open Government Sunset
Review Act unless the Legislature reviews and reenacts the exemptions by October 2, 2027. The bill provides
a public necessity statement for each exemption as required by the Florida Constitution.

The bill may have an insignificant positive impact on local government expenditures.

Article I, s. 24(c) of the Florida Constitution requires a two-thirds vote of the members present and
voting for final passage of a newly created or expanded public record or public meeting exemption.
The bill creates a public record exemption; thus, it requires a two-thirds vote for final passage.

The bill has an effective date of July 1, 2022.



This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1287.TIE
DATE: 2/1/2022
                                                    FULL ANALYSIS

                                             I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Present Situation

         Public Records

         Article I, section 24(a) of the Florida Constitution sets forth the state’s public policy regarding access to
         government records. This section guarantees every person a right to inspect or copy any public record
         of the legislative, executive, and judicial branches of government. The Legislature, however, may
         provide by general law for the exemption of records from the requirements of article I, section 24(a) of
         the Florida Constitution.1 The general law must state with specificity the public necessity justifying the
         exemption2 and must be no broader than necessary to accomplish its purpose.3

         Public policy regarding access to government records is addressed further in s. 119.07(1)(a), F.S.,
         which guarantees every person a right to inspect and copy any state, county, or municipal record,
         unless the record is exempt. Furthermore, the Open Government Sunset Review Act 4 provides that a
         public record or public meeting exemption may be created or maintained only if it serves an identifiable
         public purpose and may be no broader than necessary to meet one of the following purposes:
              Allow the state or its political subdivisions to effectively and significantly administer a
                 governmental program, which administration would be significantly impaired without the
                 exemption.
              Protect sensitive personal information that, if released, would be defamatory or would
                 jeopardize an individual’s safety; however, only the identity of an individual may be exempted
                 under this provision.
              Protect trade or business secrets.5

         The Open Government Sunset Review Act requires the automatic repeal of a newly created public
         record exemption on October 2nd of the fifth year after creation or substantial amendment of the
         exemption, unless the Legislature reenacts the exemption.6

         Cybersecurity

         Operational technology (OT) is the hardware and software which monitors and controls devices,
         processes, and infrastructure.7 Informational technology (IT) combines two or more technologies to
         manage data and applications.8 IT is used to monitor, manage, and secure core functions and data
         which are stored in the data center or cloud of an organization. OT, on the other hand, is used for
         connecting, monitoring, managing and securing an organization’s industrial operations. 9 OT devices
         are distinct from most IT devices as they generally contain specialized software. Within the OT sector
         are industrial control systems (ICS) which function to monitor and control the actual operation of
         physical equipment and plant process automation and production.10 Essentially, ICS are a combination
         of OT and IT technologies.


1 Art. 1, s. 24(a),   Fla. Const.
2 This portion of a public record exemption is commonly referred   to as a “public necessity statement.”
3 Art. 1, s. 24(c). Fla. Const.
4 S. 119.15, F.S.
5 S. 119.15(6)(b),F.S.
6 S. 119.15(3), F.S.
7 Cisco, How Do OT and IT Differ?, https://www.cisco.com/c/en/us/solutions/internet-of-things/what-is-ot-vs-it.html (last

visited January 27, 2022).
8 https://www.cisco.com/c/en/us/solutions/internet-of-things/what-is-ot -vs-it.html
9 Id.
10 David Meltzer & Jeff Lund, Industrial Cyber Security for Dummies 5 (John Wiley & Sons, Inc., Belden/Tripwire Special

ed. 2017).
STORAGE NAME: h1287.TIE                                                                                             PAGE: 2
DATE: 2/1/2022
        ICS are vital across a vast number of industries to ensure that processes and systems run effectively,
        making them a target for cyber threats in recent years.11 On May 29, 2019, Riviera Beach was the
        target of a ransomware attack which paralyzed their computer systems, including the water utility. 12 The
        systems controlling both the pumping stations and water quality testing were compromised in the
        ransomware attack. The city council approved their insurance company to pay approximately $600,000
        to the attackers in order to regain control of the systems.13 The city paid an additional $25,000 to the
        insurance company for the cybersecurity policy deductible.14 Due to the increased numbers of
        ransomware attacks in recent years, and the resulting claims to insurance companies, premiums are
        expected to increase by 25 percent to 40 percent across many industries. 15 Ransomware operators are
        taking advantage of the increased insurance coverage, viewing insured companies as key targets for
        cyberattacks.16

        Existing Public Record Exemptions for Information Held by a Local Government Utility

        Under current law, certain information held by a utility owned or operated by a unit of local government,
        is exempt from disclosure as a public record. This information includes:
             Information related to the security of technology, processes, or practices designed to protect the
               utility’s networks, computers, programs, and data from attack, damage, or unauthorized access,
               which, if disclosed, would facilitate the alteration, disclosure, or destruction of such data or
               information technology resources;17 and
             Information related to existing or proposed information technology systems or industrial control
               systems which, if disclosed, would facilitate unauthorized access to, and alteration or
               destruction of, such systems in a manner that would adversely impact the safe and reliable
               operation of the systems and the utility.18

        Critical Infrastructure Protection Act

        In 2011, the federal government enacted the Critical Infrastructure Protection Act (act) to protect the
        increasingly relied upon critical physical and information infrastructures across a vast number of
        industries.19 These include telecommunications, energy, financial services, water, and transportation
        sectors.20 The act aimed to create a comprehensive and effective program to ensure the continuity of
        essential functions.21 Critical infrastructure is defined in the act as “systems and assets, whether
        physical or virtual, so vital to the United States that the incapacity or destruction of such systems and
        assets would have a debilitating impact on security, national economic security, national public health
        or safety, or any combination of those matters.”22 Recently, the federal government has launched an
        ICS initiative in an attempt to encourage electric utilities and natural gas pipelines to deploy control




11 See https://www.cisa.gov/uscert/ics/content/cyber-threat-source-descriptions
                                                                              for more in-depth discussion about the
threats targeting ICS.
12 Id.
13 Id.
14 Id.
15 Laura Sanicola, After Colonial Attack , Energy Companies Rush to Secure Cyber Insurance, Reuters, (May 28, 2021)

https://www.reuters.com/technology/after-colonial-attack-energy-companies-rush-s ecure-cyber-insurance-2021-05-28/
(last visited January 27, 2022).
16 See Matthew Delman, Cyber Insurance May Be Mak ing Ransomware Worse, Here’s Why, Morphisec (July 1, 2021),

https://blog.morphisec.com/cyber-insurance-may-be-making-ransomware-worse-heres -why (last visited January 27, 2022)
(explaining that ransomware groups target insured companies because insurers are more likely to pay the ransom).
17 S. 119.0713(5)(a)(1), F.S.
18 S. 119.0713(5)(a)(2), F.S.
19 See 42 U.S.C. § 5195c.
20 42 U.S.C. § 5195c(b)(3).
21 42 U.S.C. § 5195c(c)(3).
22 42 U.S.C. § 5195c(e).
STORAGE NAME: h1287.TIE                                                                                      PAGE: 3
DATE: 2/1/2022
        system cybersecurity technologies to bolster the security and resilience of their facilities.23 The initiative
        will be expanded to include the water sector as well. 24

        Effect of the Bill

        The bill expands the public record exemption for certain information held by a utility owned or operated
        by a unit of local government to include:
            Information related to threat detection, defense, deterrence, or response plans and action for
                information technology (IT) and operational technology (OT) systems, including, but not limited
                to, plans and actions made or taken in response to a ransomware or cyberattack direct towards
                IT or OT systems.
            Information related to insurance or other risk mitigation products or coverages for the protection
                of IT and OT systems and data, including, but not limited to, deductible or self-insurance
                amounts, coverage limits, and policy terms and conditions.
            Critical energy infrastructure information, whether created or received by the utility.

        Critical energy infrastructure information is defined in the bill as specific engineering, vulnerability, or
        detailed design information about proposed or existing critical infrastructure which:
             Includes details about the production, generation, transportation, transmission, or distribution of
                 energy.
             Could be useful in planning an attack on critical infrastructure.
             Provides more than a general location of critical energy infrastructure.

        Critical infrastructure is defined as existing or proposed systems and assets, whether physical or
        virtual, the incapacity or destruction of which would negatively affect security, economic security, public
        health, or public safety.

        These exemptions are subject to the Open Government Sunset Review Act and stands repealed on
        October 2, 2027, unless reviewed and saved from repeal by the Legislature.

        The bill provides a public necessity statement as required by article 1, section 24(c) of the Florida
        Constitution. The statement provides that:
            The sensitivity of information being shared and threats from increased connectivity will continue
                to grow as the electric grid integrates more information and communication technologies and as
                states look to partner more closely with utilities on energy assurance and resiliency.
            The maintenance of functional and safe utility systems is important to protecting public health,
                safety, and economic well-being of the state.

        The bill has an effective date of July 1, 2022.

    B. SECTION DIRECTORY:
        Section 1      Amends s. 119.0713, F.S., relating to local government agency exemptions from
        inspection or copying of public records.

        Section 2         Provides statement of public necessity.

        Section 3         Provides an effective date.


                           II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

23 The White House, Fact Sheet: Ongoing Public U.S. Efforts to Counter Ransomware    (October 13, 2021),
https://www.whitehouse.gov/briefing-room/statements-releases/2021/10/ 13/fact-sheet-ongoing-public-u-s-efforts-to-
counter-ransomware/ (last visited January 27, 2022).
24 Id.
STORAGE NAME: h1287.TIE                                                                                              PAGE: 4
DATE: 2/1/2022
       1. Revenues:
           None.

       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           The bill may have an insignificant negative fiscal impact on local governments because staff
           responsible for complying with public record requests may require training related to the newly
           created public record exemptions. These costs, however, would be absorbed, as they are part of
           the day-to-day responsibilities of each local government.

           The bill may lower the risk of cyberattacks on local government utility infrastructure, in turn lowering
           costs to the local government and its utility customers associated with such attacks.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.


                                                III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
          raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
          municipalities.

       2. Other:
          Vote Requirement
          Article I, s. 24(c) of the Florida Constitution requires a two-thirds vote of the members present and
          voting for final passage of a newly created or expanded public record or public meeting exemption.
          The bill creates a public record exemption; thus, it requires a two-thirds vote for final passage.


          Public Necessity Statement
          Article I, s. 24(c) of the Florida Constitution requires a public necessity statement for a newly created
          or expanded public record or public meeting exemption. The bill includes a public necessity
          statement for each newly created exemption in the bill.

          Breadth of Exemption
          Article I, s. 24(c) of the Florida Constitution requires a newly created or expanded public record or
          public meeting exemption to be no broader than necessary to accomplish the stated purpose of the
          law.
STORAGE NAME: h1287.TIE                                                                                     PAGE: 5
DATE: 2/1/2022
   B. RULE-MAKING AUTHORITY:
       This bill does not require or authorize rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       The bill does not specify if the elements forming the definition of “critical energy infrastructure” at lines
       55-60 are conjunctive or disjunctive.

       The statement of public necessity does not explain with specificity why each exemption is needed to
       address the specific information exempted.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   Not applicable.




STORAGE NAME: h1287.TIE                                                                                        PAGE: 6
DATE: 2/1/2022
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           HB 1287                                                                                               2022




    1                                         A bill to be entitled
    2                An act relating to public records; amending s.
    3                119.0713, F.S.; providing an exemption from public
    4                records requirements for certain information held by a
    5                utility owned or operated by a unit of local
    6                government; providing definitions; providing
    7                applicability; providing for future legislative review
    8                and repeal of the exemption; providing a statement of
    9                public necessity; providing an effective date.
10
11         Be It Enacted by the Legislature of the State of Florida:
12
13                   Section 1.       Subsection (5) of section 119.0713, Florida
14         Statutes, is amended to read:
15                   119.0713        Local government agency exemptions from
16         inspection or copying of public records.—
17                   (5)(a)     The following information held by a utility owned
18         or operated by a unit of local government is exempt from s.
19         119.07(1) and s. 24(a), Art. I of the State Constitution:
20                   1.    Information related to the security of the technology,
21         processes, or practices of a utility owned or operated by a unit
22         of local government that are designed to protect the utility's
23         networks, computers, programs, and data from attack, damage, or
24         unauthorized access, which information, if disclosed, would
25         facilitate the alteration, disclosure, or destructi on of such

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        HB 1287                                                                                               2022




26      data or information technology resources.
27                2.    Information related to the security of existing or
28      proposed information technology systems or industrial control
29      technology systems of a utility owned or operated by a unit of
30      local government, which, if disclosed, would facilitate
31      unauthorized access to, and alteration or destruction of, such
32      systems in a manner that would adversely impact the safe and
33      reliable operation of the systems and the utility.
34                3.    Information related to threat detection, defense,
35      deterrence, or response plans and actions for information
36      technology and operational technology systems of a utility owned
37      or operated by a unit of local government, including, but not
38      limited to, plans and actions made or taken in response to a
39      ransomware or cyberattack on or threat to information technology
40      or operational technology systems.
41                4.    Information related to insurance or other risk
42      mitigation products or coverages, including, but not limited to,
43      deductible or self-insurance amounts, coverage limits, and
44      policy terms and conditions, for the protection of the
45      information technology and operational technology systems and
46      data of a utility owned or operated by a unit of local
47      government.
48                5.    Critical energy infrastructure information create d or
49      received by a utility owned or operated by a unit of local
50      government. As used in this subparagraph, the term:

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        HB 1287                                                                                               2022




51                a.     "Critical energy infrastructure information" means
52      specific engineering, vulnerability, or detailed design
53      information about proposed or existing critical infrastructure
54      which:
55                (I)        Includes details about the production, generation,
56      transportation, transmission, or distribution of energy.
57                (II)       Could be useful in planning an attack on critical
58      infrastructure.
59                (III)       Provides more detailed location information than the
60      general location of the critical infrastructure.
61                b.     "Critical infrastructure" means existing and proposed
62      systems and assets, whether physical or virtual, the incapacity
63      or destruction of which would negatively affect security,
64      economic security, public health, or public safety.
65                6.3.       Customer meter-derived data and billing information
66      in increments less than one billing cycle.
67                (b)        This exemption applies to such information held by a
68      utility owned or operated by a unit of local government before,
69      on, or after the effective date of this exemption.
70                (c)        This subsection is subject to the Open Government
71      Sunset Review Act in accordance with s. 119.15 and shall stand
72      repealed on October 2, 2027 2024, unless reviewed and saved from
73      repeal through reenactment by the Legislature.
74                Section 2.        The Legislature finds that it is a public
75      necessity that information related to threat detection, defense,

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        HB 1287                                                                                               2022




76      deterrence, or response plans and actions for information
77      technology and operational technology systems of a utility owned
78      or operated by a unit of local government; information related
79      to insurance or other risk mitigation products or coverages for
80      the protection of the information technology and operational
81      technology systems and data of a utility owned or operated by a
82      unit of local government; and critical energy infrastructure
83      information created or received by a utility owned or operated
84      by a unit of local government be made exempt from s. 119.07(1),
85      Florida Statutes, and s. 24(a), Article I of the State
86      Constitution. Multiple states are developing rules to better
87      facilitate the exchange of sensitive information needed to
88      protect critical energy, water, natural gas, and wastewater
89      infrastructure from cyber and other threats. As the electric
90      grid continues to integrate more information and communication
91      technologies, and as states look to partner more closely with
92      utilities on energy assurance and resiliency, the sensitivity of
93      information being shared and threats from increased connectivity
94      will grow. Maintaining safe and reliable utility systems is
95      vital to protecting public health and safety and to ensuring the
96      economic well-being of the state.
97                Section 3.       This act shall take effect July 1, 2022.




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      TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                      HB 1287 by Rep. Botana
Pub. Rec./Information Held by a Utility Owned or Operated by a Unit of
                         Local Government

                             AMENDMENT SUMMARY
                                February 3, 2022



Amendment 1 by Rep. Botana (line 55):

  •   Clarifies that the elements listed in the definition of critical energy infrastructure
      information are conjunctive.
  •   Elaborates on the public necessity for the bill.
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 1287   (2022)
       Amendment No. 1




            COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                       (Y/N)
       ADOPTED AS AMENDED            (Y/N)
       ADOPTED W/O OBJECTION         (Y/N)
       FAILED TO ADOPT               (Y/N)
       WITHDRAWN                     (Y/N)
       OTHER


 1     Committee/Subcommittee hearing bill:       Tourism, Infrastructure &
 2     Energy Subcommittee
 3     Representative Botana offered the following:
 4
 5          Amendment
 6          Remove lines 55-96 and insert:
 7          (I)     Includes details about the production, generation,
 8     transportation, transmission, or distribution of energy ;
 9          (II)    Could be useful in planning an attack on critical
10     infrastructure; and
11          (III)     Provides more detailed location information than the
12     general location of the critical infrastructure.
13          b.     "Critical infrastructure" means existing and proposed
14     systems and assets, whether physical or virtual, the incapacity
15     or destruction of which would negatively affect security,
16     economic security, public health, or public safety.
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                                    Page 1 of 3
                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                 Bill No. HB 1287      (2022)
       Amendment No. 1


17          6.3.   Customer meter-derived data and billing information
18     in increments less than one billing cycle.
19          (b)    This exemption applies to such information held by a
20     utility owned or operated by a unit of local government before,
21     on, or after the effective date of this exemption.
22          (c)    This subsection is subject to the Open Government
23     Sunset Review Act in accordance with s. 119.15 and shall stand
24     repealed on October 2, 2027 2024, unless reviewed and saved from
25     repeal through reenactment by the Legislature.
26          Section 2.    The Legislature finds that it is a public
27     necessity that information held by a utility owned or operated
28     by a unit of local government and relating to the utility’s
29     threat detection, defense, or deterrence of increasing
30     ransomware or cyber-attacks from foreign or domestic terrorists;
31     information regarding the insurance coverage amounts, premium
32     amount paid, self-insurance amounts, and policy terms and
33     conditions of such cyber-security insurance policies held by a
34     utility owned or operate by a unit of local government; and
35     critical energy infrastructure information created or received
36     by the utility, which consists of details about the production,
37     generation, transportation, transmission, or distribution of
38     energy, be exempt from s. 119.07(1), Florida Statutes, and s.
39     24(a), Article I of the State Constitution. Such information
40     held by a utility owned or operated by a local government is
41     critical information, the release of which could lead to extreme
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                                   Page 2 of 3
                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                 Bill No. HB 1287   (2022)
       Amendment No. 1


42     danger or harm to the citizens of this state. Typical critical
43     energy infrastructure information held by a utility consists of
44     critical asset location, vulnerable electric grid transmission
45     information, emerging technologies utilized by the utility to
46     prevent a cyber-attack, and secure information that utilities in
47     Florida share with regional and federal entities. The exposure
48     or leak of such information could lead to interruptions in the
49     delivery of essential services, as well as financial or physical
50     harm to the citizens of this state. Critical energy
51     infrastructure information has been defined and codified in law
52     in over half of the states in the United States of America in
53     conjunction with the Federal Energy Regulatory Commission.
54     Utilities in Florida have recently been attacked by criminals
55     who hold hostage critical data and operability of the utility
56     for ransom. Public disclosure of insurance coverages provides
57     information to potential attackers as to the monetary limits to
58     which they may seek ransom from these utilities. These
59     vulnerabilities leave all utilities owned and operated by a unit
60     of local government, which control water, electricity,
61     wastewater, and natural gas utilities throughout this state,
62     exposed to cyber-attacks and ransom demands. The Legislature
63     finds that the harm that may result from the release of such
64     information outweighs any public benefit that may be derived
65     from disclosure of the information.


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                                   Page 3 of 3
HB 1531
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HM 1531 Free Trade Agreement Between the United States and the United Kingdom
SPONSOR(S): Barnaby
TIED BILLS:       IDEN./SIM. BILLS: CS/SM 174

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    1) Tourism, Infrastructure & Energy Subcommittee                                    Neuffer            Keating

    2) Commerce Committee


                                             SUMMARY ANALYSIS
The United Kingdom (UK) officially left the European Union (EU) Single Market and Customs Union on January
31, 2020.

Effective on its official departure from the EU, any EU trade agreements, including trade agreements with the
United States (US), no longer applied to the UK. Three separate trade agreements were reached between the
UK and EU prior to the UK’s official exit from the EU.

As the sixth-largest economy in the world and a major financial center, the UK maintains a vital role in assuring
economic stability across the globe. On December 31, 2020, the US and UK entered into the US-UK Trade
and Investment Working Group to ensure no disruption to trade for specific products resulted from Brexit.
Since its decision to leave the EU, the UK has conducted negotiations with the US in an effort to form new,
broader free trade agreements, but negotiations have not been completed.

The US-UK bilateral investment relationship is the largest in the world. In 2019, the US foreign direct
investment (FDI) in the UK was $851.4 billion, and the UK FDI in the US was $505.1 billion. More than 1.27
million Americans are employed by UK-owned firms based in the US. In 2019, US exports of goods and
services to the UK was worth $147.4 billion, and imports of goods and services from the UK was worth $125.6
billion. In 2018, 67,800 citizens of Florida were employed by UK subsidiaries. The UK ranked as the third
largest export market for Florida, with a total value of goods and services exports in 2019 of $5.4 billion.

The memorial urges the Congress of the United States to reenact Trade Promotion Authority laws to guide the
executive branch in pursuing trade agreements. Additionally, it urges the executive branch to complete a timely
and successful free trade negotiation with the UK for Congress to ratify.

Legislative memorials are not subject to the Governor’s veto power and are not presented to the Governor for
review. Memorials have no force of law, as they are mechanisms for formally petitioning the federal
government to act on a particular subject.

This memorial does not have a fiscal impact on state or local governments.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1531.TIE
DATE: 2/1/2022
                                                   FULL ANALYSIS

                                            I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Current Trade Situation

        On June 23, 2016, the United Kingdom (UK) held a referendum on the issue of whether to leave the
        European Union (EU), which received support from 51.89% of the voters.1 This referendum would later
        become known as Brexit.2 The UK officially left the EU Single Market and Customs Union on January
        31, 2020.3

        Effective on its official departure from the EU, any EU trade agreements, including trade agreements
        with the US, no longer applied to the UK. Three separate trade agreements were reached between the
        UK and EU prior to the UK’s official exit from the EU.

        As the sixth-largest economy in the world and a major financial center, the UK maintains a vital role in
        assuring economic stability across the globe. The instability caused by Brexit meant the UK sought to
        reinforce its close ties with the United States (US).4 On December 31, 2020, the US and UK entered
        into the US-UK Trade and Investment Working Group to ensure Brexit did not disturb the trade of
        specific products.5 Since its decision to leave the EU, the UK has conducted negotiations with the US in
        an effort to form new, broader, free trade agreements. As the US and UK entered trade agreement
        negotiations, Congress expressed its awareness of the implications the UK’s withdrawal from the EU
        will mean for the global economy, trade relations, and other political and security issues. 6 That
        recognized, the US has expressed grave concern over the impact the 2020 Brexit treaty could have on
        the Belfast Agreement, commonly known as the Good Friday Agreement.

        The Belfast Agreement was signed on April 10, 1998. It led to the establishment of a system of
        government in Northern Ireland and related institutions. 7 The agreement created a political framework
        for Northern Ireland centered on power-sharing between competing groups.8 Of importance was the
        confirmation that Northern Ireland was part of the UK, but a stipulation set forth that Ireland could be
        united only if supported by a vote in both Northern Ireland and the Republic of Ireland. 9 When the UK
        voted to leave the EU, the border between Northern Ireland and the Republic of Ireland caused
        concern. Since the Belfast Agreement, the border between these two countries, which was once
        heavily militarized, has become almost invisible. Following Brexit, an agreement was reached between



1 See Government     of the Netherlands, Questions and Answers on Brexit,
https://www.government.nl/topics/brexit/question -and-answer/ what-is-brexit (last visited January 28, 2022).
2 See Id. (explaining the term is a combination of ‘Britain’ and ‘exit’).
3 See Alasdair Sanford, Post-Brexit Guide: Where Are We Now – And How Did We Get Here?, Euronews (January 17,

2022), https://www.euronews.com/2021/06/23/ brexit-draft-deal-first-of-many -hurdles-to-a-smooth-exit (last visited January
28, 2022).
4 Congressional Research Service, The United Kingdom: Back ground, Brexit, and Relations with the United States

(updated April 1, 2021).
5 See Office of the United States Trade Representative, U.S.-UK Trade Agreement Negotiations,

https://ustr.gov/countries-regions/europe-middle-east/europe/ united-kingdom/us -uk-trade-agreement-negotiations (last
visited January 28, 2022).
6 Id.
7 See Citizens Information, The Good Friday Agreement, March 31, 2021,

https://www.citizensinformation.ie/en/government_in_ireland/ireland_and_the_uk/good_friday_agreement.html (last visited
January 25, 2022).
8 See Charles Landow and James McBride, Moving Past the Troubles: The Future of Northern Ireland Peace, Council on

Foreign Relations, April 23, 2021, https://www.cfr.org/backgrounder/moving -past-troubles-future-northern-ireland-peace
(last visited January 25, 2022).
9 Id.
STORAGE NAME: h1531.TIE                                                                                            PAGE: 2
DATE: 2/1/2022
        the EU and UK to avoid the reappearance of a hard border. 10 Stipulated in the agreement, there would
        be no new check on goods crossing the border between Northern Ireland and the Republic of Ireland. 11

        The current US administration has made clear that a trade deal with the UK will only be considered if
        Brexit does not undermine the Belfast Agreement.12 Additional sticking points of the trade agreement
        negotiations include the tariffs on steel and aluminum imposed during the previous US administration,
        as well as the UK’s regulations on chicken washed in chlorine.13

        US Trade Relations with the UK

        The US-UK bilateral investment relationship is one of the largest in the world. In 2019, US foreign direct
        investment (FDI) in the UK was $851.4 billion14, and UK FDI in the US was $505.1 billion.15 More than
        1.27 million Americans are employed by UK-owned firms based in the US.16 In 2019, US exports of
        goods and services to the UK was worth $147.4 billion17, and imports of goods and services from the
        UK was worth $125.6 billion.18

        In 2018, 67,800 citizens of Florida were employed by UK subsidiaries. 19 The UK ranked as the third
        largest export market for Florida, with a total value of exports of goods and services in 2019 reaching
        $5.4 billion.20

        Trade Promotion Authority

        The President of the US has the authority to negotiate treaties with foreign countries, but Congress has
        the sole authority to regulate international trade.21 Trade Promotion Authority (TPA) is a time-limited
        authority that Congress may use to establish trade negotiating objectives, notification and consultation
        requirements, and procedures to consider when implementing legislation for certain reciprocal trade
        agreements.22 TPA does not provide new power to the executive branch, but is a legislative procedure
        written by Congress, though which it defines US negotiating objectives and sets forth a detailed
        oversight and consultation process to be followed during trade negotiations. 23 TPA acts as a fast-track
        process made available by Congress to the President for limited periods to enable legislation to
        approve and implement certain international trade agreements to be considered under expedited




10 Nidirect, EU Exit and the Northern Ireland Protocol, nidirect government    services,
https://www.nidirect.gov.uk/articles/eu-exit-and-northern-ireland-prot ocol (last visited January 25, 2020).
11 Id.
12 Megan Boyanton, How the Post-Brexit U.S.-U.K. Trade Deal Lost Momentum, The Washington Post, October 14, 2021,

https://www.washingtonpost.com/business/how-thepost-brexit-us-uk -trade-deal-lost-momentum/2021/10/14/ 8216a67c-
2cc5-11ec-b17d-985c186de338_story.html (last visited January 25, 2022).
13 Id.
14 Office of the United States Trade Representative, United Kingdom, United States Government,

https://ustr.gov/countries-regions/europe-middle-east/europe/ united-kingdom (last visited January 28, 2022).
15 Id.
16 United States Department of State, U.S. Relations with United Kingdom, United States Government (February 6, 2020),

https://www.state.gov/u-s-relations-with-united-kingdom/ (last visited January 28, 2022).
17 Office of the United States Trade Representative, supra note 18.
18 Id.
19 Enterprise Florida, United Kingdom, https://www.enterpriseflorida.com/for-international-companies/international-

offices/uk/#:~:text=Florida%2DUK%20Bilateral%20Merchandise%20Trade, -
Both%20the%20United&text=A%20Vital%20Trade% 20Relationship% 3A%20The,in% 202019%20reaching%20% 243.5%2
0billion (last visited January 28, 2022).
20 Gov.uk, UK-Florida Trade and Investment Highlights, Government Digital Service (updated June 25, 2021),

https://www.gov.uk/government/publications/uk-florida-trade-and-investment-highlights/uk-florida-trade-and-investment-
highlights (last visited January 28, 2022).
21 U.S. Const. art. 1, § 8.
22 Congressional Research Service, Trade Promotion Authority (TPA), December 14, 2020.
23 Office of the United States Trade Representative, Trade Promotion Authority, United States Government,

https://ustr.gov/trade-topics/trade-promotion-authority (last visited January 28, 2022).
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        legislative procedures.24 Under TPA, Congress retains the authority to review and decide whether any
        proposed US trade agreement will be implemented.25

        The most recent TPA was authorized through July 1, 2021, by the Bipartisan Congressional Trade
        Priories Act of 2015.26

        Free Trade Agreements

        A Free Trade Agreement (FTA) is an agreement between two or more countries where the signed
        parties agree on certain trade obligations for the purpose of reducing barriers to trade.27 As a result of
        reduced barriers, a more stable and transparent trading environment is created for business actors.

        The US currently has FTAs with 20 countries, of which the EU and UK are not included. 28 In 2013, the
        US and EU attempted negotiations for the Transatlantic Trade and Investment Partnership (TTIP) but
        ended in 2016 without conclusion.29

        Effect of the Memorial

        The memorial urges:
            The Congress of the United States to reenact Trade Promotion Authority laws to guide the
              executive branch in pursuing trade agreements
            The executive branch to complete a timely and successful free trade negotiation with the UK
            The Congress of the United States to ratify the agreement

        Copies of the memorial will be sent to the President of the United States, the President of the United
        States Senate, the Speaker of the United States House of Representatives, and each member of the
        Florida delegation to the United States Congress.

        Legislative memorials are not subject to the Governor’s veto power and are not presented to the
        Governor for review. Memorials have no force of law, as they are mechanisms for formally petitioning
        the federal government to act on a particular subject.


                          II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
            None.

        2. Expenditures:
            None.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:

24 Congressional   Research Center, Trade Promotion Authority (TPA): Frequently Ask ed Questions (updated June 21,
2019).
25 Id.
26 Id.
27 International Trade Administration, Free Trade Agreement Overview, United States Department of Commerce,

https://www.trade.gov/free-t rade-agreement-overview (last visited January 28, 2022).
28 Id.
29 European Commission, United States (updated September 6, 2021), https://ec.europa.eu/trade/policy/countries-and-

regions/countries/united-states/#:~:text=Despite%20the%20US%20being% 20the,at%20the%20end%20of% 202016. (last
visited January 28, 2022).
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           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:

       None.

                                              III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       This memorial does not require or authorize rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   Not applicable.




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                                R E P R E S E N T A T I V E S
           


           HM 1531                                                                                               2022


    1                                                House Memorial
    2              A memorial to the Congress of the United States and
    3              the President of the United States encouraging
    4              Congress to reenact Trade Promotion Authority laws to
    5              guide the executive branch, urging the executive
    6              branch to negotiate a comprehensive and mutually
    7              beneficial free trade agreement between the United
    8              States and the United Kingdom, and urging Congress to
    9              ratify such agreement.
10
11                 WHEREAS, the United States is the United Kingdom's largest
12         single-country trade partner with a relationship valued at over
13         $200 billion; both countries are each other's largest foreign
14         direct investors, having approximately $1 trillion invested in
15         each other's economies; and the UK-US Trade and Investment
16         Working Group has laid the groundwork to strengthen trade and
17         investment ties for the present and in the future, including
18         through the use of a free trade agreement, and
19                 WHEREAS, expansion of global trade, especially with the
20         United Kingdom, is of vital importance to the growth of the
21         United States' economy, small business participation in the
22         international marketplace, and job creation, and
23                 WHEREAS, the state would benefit greatly from the
24         ratification of a comprehensive free trade agreement, which,
25         since the United Kingdom is currently the largest foreign direct

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                             R E P R E S E N T A T I V E S
        


        HM 1531                                                                                               2022


26      employer in the state and is the second largest market for
27      tourism, would create employment opportunities for residents of
28      the state as a direct result of removing and reducing b arriers
29      to trade and free markets, and
30              WHEREAS, the successful implementation of a free trade
31      agreement will increase exports to the United Kingdom from the
32      state, and
33              WHEREAS, the United States Constitution grants the United
34      States Congress exclusive authority to regulate commerce with
35      foreign nations, and
36              WHEREAS, the negotiation of a successful free trade
37      agreement between the United States and the United Kingdom will
38      require bipartisan cooperation between state, federal, and
39      foreign governments, NOW, THEREFORE,
40
41      Be It Resolved by the Legislature of the State of Florida:
42
43              That Congress of the United States is requested to reenact
44      Trade Promotion Authority laws to guide the executive branch in
45      pursuing trade agreements, the executive branch is requ ested to
46      complete a timely and successful negotiation of a comprehensive
47      and mutually beneficial free trade agreement between the United
48      States and the United Kingdom, and the Congress of the United
49      States is further requested to ratify such agreement.



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                             R E P R E S E N T A T I V E S
        


        HM 1531                                                                                               2022


50              BE IT FURTHER RESOLVED that copies of this memorial be
51      dispatched to the President of the United States, to the
52      President of the United States Senate, to the Speaker of the
53      United States House of Representatives, and to each member of
54      the Florida delegation to the United States Congress.




                                                      Page 3 of 3

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HB 1543
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 1543 Broadband Infrastructure
SPONSOR(S): Tomkow
TIED BILLS: HB 1545    IDEN./SIM. BILLS: CS/SB 1800

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                                    Keating            Keating

  2) Infrastructure & Tourism Appropriations
     Subcommittee

  3) Commerce Committee


                                               SUMMARY ANALYSIS
In 2021, the Legislature took steps to improve broadband Internet access in unserved areas of the state.
Among other things, the Legislature:
     Created the Broadband Opportunity Program to be administered by the Office of Broadband (Office)
       within the Department of Economic Opportunity (DEO). Subject to appropriation, the program would
       award grants to applicants, regardless of technology, who seek to expand access to broadband service
       in unserved areas of the state. This grant program has not yet received funding.
     Provided for a promotional rate of $1 per wireline attachment per pole, per year for any new pole
       attachment necessary to make broadband service available to an unserved or underserved end user
       within a municipal electric utility service territory.
     Appropriated $1.5 million to DEO to develop geographic information system maps of broadband service
       availability, including transmission speeds. These maps continue to be developed and updated.

The Office is currently developing a strategic plan for increasing the availability and use of broadband service
in the state. Florida law requires this plan to be completed by June 30, 2022.

The bill creates the Broadband Pole Replacement Program, to be administered by the Office. The program will
reimburse fixed, wireline broadband service providers for their costs incurred for the removal and replacement
of existing utility poles in areas of Florida that are unserved by broadband Internet service. Reimbursements
under the program are limited to 50 percent of the broadband Internet service provider’s eligible pole
replacement cost or $5,000, whichever is less, in addition to their administrative costs related to the
preparation and submission of the application for reimbursement.

The bill directs the Secretary of DEO to apply for $100 million in federal funding from the Coronavirus Capital
Projects Fund and directs any such funds received to be placed into the Broadband Pole Replacement Trust
Fund, which is created by linked bill, HB 1545.

For the 2022-2023 fiscal year, the bill appropriates $400 million in nonrecurring funds from the General
Revenue Fund to DEO for the purpose of administering the Broadband Opportunity Program created in 2021.

The bill takes effect upon becoming law, if HB 1545 or similar legislation is adopted in the same legislative
session or an extension thereof and becomes law.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1543.TIE
DATE: 2/1/2022
                                                       FULL ANALYSIS

                                                I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Present Situation

         Broadband Internet Deployment

         Fixed and mobile broadband Internet services provide access to numerous employment, education,
         entertainment, and health care opportunities.1 Communities that lack broadband access can have
         difficulty attracting new capital investment. While Florida’s urban areas are served at a fixed broadband
         coverage rate of 98 percent, its rural areas are served at a rate of 78.6 percent. 2 This disparity is
         caused primarily by high per-unit construction costs required to build broadband infrastructure across
         larger swaths of rural geographic areas.3

         The recent COVID-19 pandemic has enhanced the need for broadband Internet access in everyday
         life. Studies indicate that broadband Internet access matters for jobs, income, business relocation, civic
         engagement, and health.4 In addressing broadband Internet access issues, states have established
         broadband offices and created special funding programs to offer financial incentives for broadband in
         lower density areas.5 Additionally, as schools go online, data indicates that low income households
         disproportionally lack access to broadband Internet service, which puts their children at risk of falling
         behind.6

         Federal Broadband Initiatives

         FCC Rural Digital Opportunity Fund

         In January 2020, the Federal Communications Commission (FCC) established the Rural Digital
         Opportunity Fund (Fund) to fund the deployment of broadband networks in rural America over the next
         decade. The program will consist of two phases. Using data from the FCC’s previous mapping efforts,
         the first phase began in 2020 and made available up to $16 billion to target census blocks that are
         wholly unserved with fixed broadband speeds of at least 25 megabits per second (Mbps) downstream
         and 3 Mbps upstream (25/3 Mbps).7 The winning bidders from the first round under Phase I were
         announced in December 2020, with entities that bid to provide service in Florida receiving over $190
         million over the next 10 years.8

         Phase II of the Fund will target underserved localities, as identified by the FCC’s Digital Opportunity
         Data Collection Program.9 Using this more precise data, the second phase of FCC grants will make

1 U.S. Federal Communications Commission        (FCC), 2018 Broadband Deployment Report, at 1 (Feb. 2, 2018), available at
https://docs.fcc.gov/public/attachments/FCC-18-10A1.pdf (last visited Feb. 1, 2022).
2 FCC, 2021 Broadband Deployment Report at 63 (Jan. 19, 2021), available at https://docs.fcc.gov/public/attachments/FCC-21-

18A1.pdf (last visited Feb. 1, 2022). For purposes of this data, ‘fixed broadband services’ are measured at 25 megabits per s econd
downstream and 3 megabits per second upstream.
3 American Broadband Initiative, Milestones Report, at 11 (Feb. 13, 2019), available at

https://www.ntia.doc.gov/files/ntia/publications/american_broadband_initiative_milestones_report.pdf (last visited Feb. 1, 2022).
4 COVID-19 lockdowns expose the digital have-nots in rural areas – here’s which policies can get them connected (Sep. 2, 2020),

https://theconversation.com/covid-19-lockdowns-expose-the-digital-have-nots-in-rural-areas-heres-which-policies-can-get-them-
connected-144324 (last visited Feb. 1, 2022).
5 Id.
6 New American Economy Research Fund, Back to School: A Look at the Internet Access Gap. (Aug. 6, 2020),

https://research.newamericaneconomy.org/report/internet-access-covid-19/ (last visited Feb. 1, 2022).
7 FCC, FCC Launches $20 Billion Rural Digital Opportunity Fund, https://www.fcc.gov/document/fcc-launches-20-billion-rural-

digital-opportunity-fund-0 (last visited Feb. 1, 2022).
8 FCC, Auction 904 Winning Bidders, https://www.fcc.gov/document/auction-904-winning-bidders (last visited Feb. 1, 2022).
9 See, FCC, FCC Launches $20 Billion Rural Digital Opportunity Fund , supra note 7 at 3. In August 2019, the FCC adopted the

Digital Opportunity Data Collection Program, which modernized the collection of broadband deployment data by creating granula r
coverage maps, as opposed to census tract maps, and by implementing a process to accept public data to confirm the maps’ accuracy.
STORAGE NAME: h1543.TIE                                                                                                     PAGE: 2
DATE: 2/1/2022
         available at least $4.4 billion to target geographic areas where some locations lack access to 25/3
         Mbps broadband.10 Grants from both phases of the Fund are provided directly to service providers.

         Department of Commerce Coronavirus Capital Projects Fund

         The 2021 American Rescue Plan11 allocated $10 billion to eligible governments to carry out capital
         projects to meet critical needs, with an emphasis on broadband infrastructure. 12 Each state is eligible
         for a fixed amount of $100 million plus an additional allocation based on the state’s population, the
         proportion of its population that lives in rural areas, and the proportion of individuals who receive a
         household income below 150 percent of the poverty line.13

         Eligible states must have applied by December 27, 2021, and submit a grant plan by September 24,
         2022.14 Capital Projects Fund recipients may pass the funds on to subrecipients, such as other levels of
         government, non-profits, or private entities. Florida’s allocation of these funds is $366 million,15 for
         which Florida’s Department of Economic Opportunity (DEO) timely applied.

         Presumptively eligible projects under the program include the construction and deployment of
         broadband infrastructure that is designed to deliver service that reliably meets or exceeds symmetrical
         speeds of 100 Mbps, or if impracticable, speeds of 100 Mbps downstream and 20 Mbps upstream. 16
         Projects that may be eligible on a case-by-case review include investments in capital assets, such as
         buildings, towers, digital devices and equipment, fiber-optic lines, and broadband networks.17

         USDA Programs

         The U.S. Department of Agriculture (USDA) has several rural utilities programs to provide a variety of
         loans and grants to build and expand broadband networks. 18 The ReConnect Program offers federal
         loans, grants, and loan/grant combinations to facilitate broadband deployment to rural areas without
         access to sufficient broadband service. Eligible entities include cooperatives and nonprofits, for-profit
         companies, and state and local governments and their agencies and political subdivisions. Applicants
         for a grant or a loan/grant combination under the ReConnect Program must submit a scoring sheet by
         which USDA may analyze nine separate evaluation criteria to score the application. One of the
         evaluation criteria is whether the proposed project is in a state with a broadband plan that has been
         updated within the previous 5 years.19

         Additional Federal Broadband Funding and Initiatives




In March 2020, Congress ratified the FCC’s Data Collection Program with passage of the Broadband Data Act, which requires the
FCC to establish a semiannual collection of geographically granular broadband coverage data to use to create coverage maps.
Congress allocated $65 million to the FCC to achieve this mapping project in December 2020.
10 Id. at 4.
11 Pub. L. 117-2 (117th Congress) (H.R. 1319).
12 U.S. Dep’t. of Treasury, Capital Projects Fund, https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-

tribal-governments/capital-projects-fund (last visited Feb. 1, 2022).
13 U.S. Dep’t. of Treasury, Coronavirus Capital Projects Fund: Allocations Methodology for States, Territories, and Freely

Associated States (Aug. 2021), https://home.treasury.gov/system/files/136/Allocations -Methodology-States-Territories-Freely-
Associated-States.pdf (last visited Feb. 1, 2022).
14 Id. See also, U.S. Dep’t. of Treasury, Guidance for the Coronavirus Capital Projects Fund for States, Territories, and Freely

Associated States, 1, 14 (Sept. 2021), https://home.treasury.gov/system/files/136/Capital-Projects-Fund-Guidance-States-Territories-
and-Freely-Associated-States.pdf (last visited Feb. 1, 2022).
15 U.S. Dep’t. of Treasury, Coronavirus Capital Projects Fund: Allocations for States, District of Columbia, and Puerto Rico,

https://home.treasury.gov/system/files/136/Allocations -States.pdf (last visited Feb. 1, 2022).
16 U.S. Dep’t. of Treasury, Guidance for the Coronavirus Capital Projects Fund for States, Territories, and Freely Associated States,

supra note 14 at 3.
17 Id. at 7.
18 USDA, Telecom Programs, available at https://www.rd.usda.gov/programs -services/all-programs/telecom-programs (last visited

Feb. 1, 2022).
19 See USDA, ReConnect Loan and Grant Program, available at https://www.usda.gov/reconnect#anchor1 (last visited Feb. 1, 2022).
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DATE: 2/1/2022
         Multiple federal assets have been made available to assist with the expansion of broadband, for
         example:20
              The U.S. Department of Housing and Urban Development 21 offers block grants that can support
                 broadband infrastructure;
              The Department of the Interior launched a mapping tool to allow service providers to locate
                 federal property available for infrastructure development;22 and
              The National Telecommunications and Information Administration (NTIA) within the U.S.
                 Department of Commerce is working to improve coordination between federal programs that
                 fund broadband and statewide efforts.23

         The Consolidated Appropriations Act passed by Congress in December 202024 included the following
         funding to expand broadband Internet access for students, families, and unemployed workers:25
             $300 million for areas lacking broadband, especially rural areas;26
             $250 million for the FCC’s telehealth program;27
             $285 million to fund a pilot program to assist with broadband issues at historically Black colleges
                and universities;28 and
             $1 billion in grants for tribal broadband programs.29

         The American Rescue Plan, signed into law on March 11, 2021, includes multiple appropriations that
         can be used for broadband infrastructure, including $10 billion for the Coronavirus Capital Projects
         Fund (discussed above) to provide grants to states for the costs of capital projects, like broadband
         infrastructure, and $130.2 billion for Community Development Block Grants that can be used for
         community development projects, including broadband infrastructure.30

         Additionally, the Infrastructure Investment and Jobs Act,31 signed into law on November 15, 2021,
         contains $64 billion in funding for broadband expansion and access. The law: 32


20 See generally, National Telecommunications     and Information Administration (NTIA), American Broadband Initiative, Progress
Report (June 2020), available at https://www.ntia.doc.gov/files/ntia/publications/abi_progress_report_june2020.pdf (last Jan. 21,
2022).
21 U.S. Department of Housing and Urban Development, State CDBG Program Broadband Infrastructure FAQs (Jan. 7, 2016),

available at https://files.hudexchange.info/resources/documents/State-CDBG-Program-Broadband-Infrastructure-FAQs.pdf (last
visited Feb. 1, 2022).
22 U.S. Department of Interior, Supporting Broadband Tower Facilities in Rural America on Federal Properties Managed at Interior ,

available at https://www.doi.gov/broadband (last visited Feb. 1, 2022).
23 Broadband USA, State Broadband Leaders Network (Dec. 19, 2018), available at https://broadbandusa.ntia.doc.gov/ntia-

resources/state-broadband-leaders-network-sbln (last visited Feb. 1, 2022).
24 Consolidated Appropriations Act of 2020, H.R. 1865, 116th Cong. (2020).
25 NCSL, COVID-19 Economic Relief Bill: Broadband, (Jan. 4, 2021) https://www.ncsl.org/ncsl-in-dc/publications-and-

resources/covid-19-economic-relief-bill-stimulus.aspx#:~:text=Erlinda%20Doherty-
,Overview,agency%20operations%20through%20September%202021. (last visited Feb. 1, 2022).
26 See generally, NTIA, Overview of Consolidated Appropriations Act, 2021: Broadband Infrastructu re Deployment Grants, available

at https://broadbandusa.ntia.doc.gov/ntia-common-content/overview-consolidated-appropriations-act-2021 (last visited Feb. 1, 2022).
These grants will be available to support infrastructure for the deployment of fixed broadband service in a census block with at least
one household or business that does not have access to internet at 25/3Mbps or higher.
27 FCC, COVID-19 Telehealth Program (Feb. 9, 2021), available at https://www.fcc.gov/covid-19-telehealth-program (last visited

Feb. 1, 2022).
28 See generally, NTIA, Minority Broadband Initiative, available at https://www.ntia.doc.gov/category/minority-broadband-initiative

(last visited Feb. 1, 2022).
29 See generally, NTIA, NTIA Announces Tribal Consultations on New Program to Increase Broadband Access Across Indian

Country (Feb. 5, 2021), available at https://www.ntia.gov/blog/2021/ntia-announces-tribal-consultations-new-program-increase-
broadband-access-across-indian (last visited Feb. 1, 2022).
30 Pub. L. No. 112-2, ss. 603 and 604 (117th Congress) (H.R. 1319). U.S. Treasury, FACT SHEET: The American Rescue Plan Will

Deliver Immediate Economic Relief to Families, https://home.treasury.gov/news/press-releases/jy0069 (last visited Feb. 1, 2022).
31 Pub. L. No. 117-58 (117th Congress) (H.R. 3684). See also, Congressional Research Service, The Infrastructure Investment and

Jobs Act (P.L. 117-58): Summary of the Broadband Provisions in Division F (Nov. 16, 2021),
https://crsreports.congress.gov/product/pdf/R/R46967 (last visited Feb. 1, 2022).
32 NTIA, Infrastructure Investment and Jobs Act Overview, https://www.ntia.doc.gov/category/grants (last visited Feb. 1, 2022).
STORAGE NAME: h1543.TIE                                                                                                       PAGE: 4
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                    Establishes the Broadband Equity, Access, and Development Program to be administered by
                     the NTIA to states through matching grants;
                    Allocates $2.75 billion to the Digital Equity Act Competitive Grant Programs administered by the
                     Department of Commerce;
                    Invests $2 billion in the Tribal Broadband Connectivity Program; and
                    Funds the Middle Mile Grants program, administered by the NTIA, with $1 billion, especially to
                     support construction, improvement, or acquisition of broadband infrastructure.

         Florida Broadband Initiatives

         Florida’s Office of Broadband

         In 2020, the Legislature designated the Department of Economic Opportunity (DEO) as the lead state
         agency to facilitate the expansion of broadband Internet service in the state. 33 The Florida Office of
         Broadband (Office) was created within DEO’s Division of Community Development for purposes of
         developing, marketing, and promoting broadband Internet service in the state. 34

         The Office must:35
             Create a strategic plan36 for increasing the availability and use of broadband Internet service in
                the state, which must identify federal funding sources for the expansion of broadband and
                include a process to review and verify public input regarding transmission speeds and
                availability of broadband Internet service throughout the state;
             Build local technology planning teams representing, among others, libraries, schools, colleges
                and universities, local health care providers, private businesses, community organizations,
                economic development organizations, local governments, tourism, parks and recreation, and
                agriculture to identify needs and resources to reduce barriers to the deployment of broadband
                Internet services;
             Encourage the use of broadband Internet service, especially in rural, unserved, and
                underserved37 areas of the state through grant programs; and
             Monitor, participate in, and provide input in proceedings of the FCC and other federal agencies
                related to the geographic availability and deployment of broadband Internet service as
                necessary to ensure that Florida’s rural, unserved, and underserved areas are best positioned
                to benefit from federal and state broadband deployment programs; and
             Administer Florida’s Broadband Opportunity Program.38

         DEO may apply for and accept federal grant funds, enter into necessary or useful contracts, and
         establish any committee or workgroup to administer the program to further the above goals.39

         In 2021, the Legislature appropriated $1.5 million to DEO to develop geographic information system
         maps of broadband Internet service availability, including transmission speeds, consistent with the
         FCC’s data collection program standards.40 DEO must collaborate with broadband service providers,
         state agencies, local government entities, private businesses, educational institutions, and community
         organizations to develop these maps.41 Through its website, DEO allows for public input concerning the
         speed, connectivity, and access to broadband Internet service in areas throughout the state to help

33 Ch. 2002-26,   Laws of Fla.
34 Id.
35 S. 288.9961(4),   F.S.
36 The strategic plan must be submitted to the Governor, the President of the Senate, and the Speaker of the House of Representa tives

by June 30, 2022, and updated biennially thereafter. S. 288.9961(4)(a), F.S.
37 Section 288.9961(2)(f), F.S., defines the term “underserved” to mean a geographic area of this state in which there is no provider of

broadband Internet service that offers a connection to the Internet with a capacity for transmission at a consistent speed of at least 10
Mbps downstream and at least 1 Mbps upstream.
38 The Broadband Opportunity Program is established in s. 288.9962, F.S., to award grants to those who seek to expand broadband

Internet service to unserved areas of Florida.
39 S. 288.9961(5), F.S.
40 Ch. 2021-24, Laws of Fla.
41 Id.
STORAGE NAME: h1543.TIE                                                                                                          PAGE: 5
DATE: 2/1/2022
         identify unserved and underserved areas. DEO’s mapping efforts are not complete and will continue to
         be updated as more data is added.42

         Broadband Opportunity Program

         In 2021, the Legislature created the Broadband Opportunity Program 43 (grant program) to award grants
         to applicants who seek to expand access to broadband Internet service44 in unserved45 areas of the
         state, regardless of the technology to be used. Grant funds may not be used to provide broadband
         Internet service to a geographic area where broadband Internet is already deployed by at least one
         provider. Applicants eligible for grant awards include corporations, limited liability companies, general
         partnerships, limited partnerships, political subdivisions, and Indian tribes.

         In evaluation grant applications and awarding grants, the Office must prioritize applications that:
              Offer broadband Internet service to important community institutions, including, but not limited
                 to, libraries, educational institutions, public safety facilities, and healthcare facilities;
              Facilitate the use of telemedicine and electronic health records;
              Serve economically distressed areas of the state, as measured by indices of unemployment,
                 poverty, or population loss that are significantly greater than the statewide average;
              Provide for scalability to transmission speeds of at least 100 megabits per second download
                 and 10 megabits per second upload;
              Include a component to actively promote the adoption of the newly available broadband Internet
                 services in the community;
              Provide evidence of strong support for the project from citizens, government, businesses, and
                 institutions in the community;
              Provide access to broadband Internet service to the greatest number of unserved households
                 and businesses;
              Leverage greater amounts of funding for the project from private sources; or
              Demonstrate consistency with the Office’s strategic plan. 46

         The Office must endeavor to award grants to qualified applicants in all regions of the state. The Office
         may not award any grant to an otherwise eligible grant applicant to provide broadband Internet service
         in a project area for which any other federal funding has been awarded. A grant, when combined with
         any state or local funds, may not fund more than 50 percent of the total cost of a project, and a single
         project may not be awarded a grant in excess of $5 million.

         The Office has not yet received funding for the grant program.

         Promotional Pole Attachment Rates

         The term “pole attachment” refers to the process by which communications companies can collocate
         communications infrastructure on existing electric utility poles. Utility poles are divided into various
         “spaces” for specific uses, and different vertical portions of the pole serve different functions.47 Utility
         poles often accommodate equipment used to provide a variety of services, including electric power,
         telephone, cable, wireline broadband, and wireless, which benefits the public by minimizing
         “unnecessary and costly duplication of plant for all pole users.”48

42 DEO, Office of Broadband, https://floridajobs.org/community-planning-and-development/broadband/office-of-broadband (last

visited Feb. 1, 2022).
43 Section 288.9962, F.S.
44 Section 288.9961(2)(a), F.S., defines the term “broadband Internet service” to mean any service that provides access to the Internet

with a capacity for transmission at a consistent speed of at least 25 megabits per second download and 3 megabits per second upload.
45 Section 288.9961(2)(g), F.S., defines the term “unserved” to mean a geographic area of the state without access to broadband

Internet service.
46 The Office is in the process of developing a strategic plan for submission by June 30, 2022, as required by section 288.9961(4)(a),

F.S.
47 See Florida Public Service Commission, What’s on a Utility Pole? http://www.psc.state.fl.us/ConsumerAssistance/UtilityPole (last

visited Feb. 1, 2022).
48 S. REP . NO. 95-580, at 13 (1977), as reprinted in 1978 U.S.C.C.A.N. 109, 121.
STORAGE NAME: h1543.TIE                                                                                                         PAGE: 6
DATE: 2/1/2022
         When a new attacher, such as a broadband Internet service provider, seeks access to a pole, it is
         necessary to evaluate whether adding the attachment will be safe and whether there is room for it. In
         many cases, existing attachments must be moved to make room for the new attachment. In some
         cases, it is necessary to install a larger pole to accommodate a new attachment. 49

         Except for certain small cell wireless facilities, attachments of cable and telecommunications carrier
         facilities to utility poles owned by a municipal electric utility are not regulated at the state or federal
         level.

         In 2021, the Legislature provided for a promotional rate of $1 per wireline attachment per pole, per year
         for any new attachment necessary to make broadband Internet service available to an unserved or
         underserved end user within a municipal electric utility service territory. This rate began July 1, 2021,
         and ends July 1, 2024.50

         Under this promotional program, if a municipal electric utility is required to replace a utility pole due to a
         broadband provider’s attachment, the municipal electric utility may require the broadband provider to
         reimburse all reasonable costs attributable to the new attachment, minus the salvage value of the pole.
         A utility cannot require pole replacement to accommodate the broadband provider’s pole attachment
         unless it is necessary to comply with applicable engineering and safety standards. Additionally, if the
         pole replacement is necessary to correct an existing violation, to bring the pole into compliance with
         changes in applicable standards, or because the pole is at the end of its useful life, the replacement
         cost may not be passed on to the broadband provider.51

         Effect of Proposed Changes

         Broadband Pole Replacement Program

         The bill creates the Broadband Pole Replacement Program within the Office. The Office will accept
         applications for the reimbursement of eligible pole replacement costs, and distribute payments from the
         Broadband Pole Replacement Trust Fund (trust fund) until the funds are exhausted.

         Eligibility

         Private businesses or nonprofit corporations that currently provide, or will provide, qualifying broadband
         service to Florida are eligible for reimbursements under the Program. These entities must provide, or
         commit to providing broadband Internet service that can deliver Internet access at speeds of at least
         100 Mbps downstream and 100 Mbps upstream with a latency at a level sufficient to allow real-time,
         interactive applications. Additionally, the applicants’ pole replacements must occur in unserved areas 52
         for the purpose of attaching facilities to provide qualifying broadband service to residences or
         businesses in that area.

         Reimbursements

         The Office must reimburse an applicant within 60 days after it receives its completed application. The
         Office will reimburse according to availability of funds in the trust fund. Any application that is pending
         when the trust fund is exhausted is denied, but the applicant may reapply if funds are later added to the
         trust fund.


49 FCC-CIRC1808-03       at 4-5.
50 S. 288.9963,   F.S.
51 Id.
52 The bill defines an “unserved area” as a location in which: (1) fixed,terrestrial, or retail wireline broadband Internet service is
unavailable at the time that the broadband service provider requests to attach its facilities to a pole in that location, and no other person
has committed to providing qualifying broadband service; or (2) the applicant is committed under the terms of a state or fede ral grant
to provide qualifying broadband service, provided that the availability of the grant is limited to areas that lack access to fixed,
terrestrial, or retail wireline broadband Internet service.
STORAGE NAME: h1543.TIE                                                                                                             PAGE: 7
DATE: 2/1/2022
       An application for reimbursement must include the following:
           Information sufficient to establish the number and cost of eligible pole replacements;
           Documentation sufficient to establish that the eligible pole replacements are completed;
           The total reimbursement amount requested, and any state or federal grant funding or
              accounting information required to justify the amount requested;
           A notarized statement from an officer or agent of the applicant which certifies that the
              application’s contents are true and accurate, and that the applicant will comply with applicable
              law as a condition of receiving reimbursement under the Program; and
           Receipts to verify the amount of eligible pole replacement costs paid by the applicant.

       An eligible pole replacement cost is the actual cost paid by the applicant to perform a pole replacement,
       excluding any amount that is otherwise reimbursed through another state or federal broadband grant
       program or other governmental entity. Specifically, the cost includes:
           The removal and disposal of the existing utility pole;
           The purchase and installation of a replacement utility pole: and
           The transfer of any existing facilities to the replacement utility pole.

       An eligible applicant shall receive a reimbursement of up to 50 percent of the total amount it paid for
       each eligible pole replacement, or $5,000, whichever is less, and up to 100 percent of its actual and
       reasonable administrative expenses paid to prepare and submit the application. Reimbursement of
       administrative expenses may be provided in an amount up to 5 percent of the eligible pole replacement
       costs that the applicant requests in its application.

       If the applicant cannot provide the information required by the application, it may request that the pole
       owner that performed the pole replacement submit the required information, including the pole
       replacement costs paid by the applicant. A pole owner that submits this information on behalf of a
       broadband Internet service provider may require reimbursement of its administrative expenses from the
       applicant.

       As a condition of receiving reimbursement, the applicant must certify its compliance with the terms of
       reimbursement program and agree to refund with interest any reimbursements or portions thereof if the
       Office finds that the applicant materially violated any requirement of the program.

       Administrative Duties

       The bill directs the Secretary of DEO to apply for $100 million in federal funding for the reimbursement
       program, including funds available under the Coronavirus Capital Projects Fund. If Florida receives any
       such funds, they must be deposited into the trust fund created by linked bill, HB 1545. If Florida
       receives federal funds from the Coronavirus Capital Projects Fund, state funds allocated to the
       reimbursement program must be reduced by an equal amount. The bill does not allocate state funds to
       the program.

       The Office must publish and update the following information on its website within 60 days after the
       trust fund receives its first deposit of funds:
            Statistics on the number of applications received, processed, and rejected by the
               reimbursement program;
            Statistics on the value, number, and status of reimbursements provided under the program,
               including the names of pole owners and retail providers of qualifying broadband service which
               received reimbursements under the program; and
            The amount of funds remaining in the trust fund.

       The Office must further provide a report to the Governor, the President of the Senate, and the Speaker
       of the House of Representatives within one year after the trust fund is exhausted of its funds. This
       report must identify and examine the deployment of broadband infrastructure and technology facilitated
       by reimbursements from the program.


STORAGE NAME: h1543.TIE                                                                                  PAGE: 8
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       The bill expressly prohibits rulemaking by DEO, the Office, or any other agency, to administer the
       reimbursement program.

       The Office of the Auditor General must perform an audit of the trust fund and its administration for
       compliance with pertinent law within one year after funds are deposited into the trust fund.

       Broadband Opportunity Program Funding

       For the 2022-2023 fiscal year, the bill appropriates $400 million in nonrecurring funds from the General
       Revenue Fund, from payments received by the state pursuant to the Federal Coronavirus State Fiscal
       Recovery Fund, to the Office for the purpose of administering the Broadband Opportunity Program
       established in s. 288.9962, F.S.

       Effective Date

       The bill takes effect upon becoming law, if HB 1545 or similar legislation is adopted in the same
       legislative session or an extension thereof and also becomes law.


   B. SECTION DIRECTORY:
       Section 1 Amends s. 288.9961, F.S., relating to promotion of broadband adoption and the Florida
                 Office of Broadband.

       Section 2 Creates s. 288.9964, F.S., establishing the Broadband Pole Replacement Program.

       Section 3     Provides an appropriation.

       Section 4     Provides a contingent effective date.


                          II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           The bill appropriates $400 million in nonrecurring funds from the General Revenue Fund, from
           payments received by the state pursuant to the federal Coronavirus State Fiscal Recovery Fund, to
           the Office to administer the grant program created by the Legislature in 2021. The bill does not
           appropriate funds to the reimbursement program created by the bill. It is unclear whether the
           Department will require additional funds or FTE’s to administer the program. However, linked bill HB
           1545 allows funds deposited into the Broadband Pole Replacement Trust Fund to be used to
           administer the program.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
STORAGE NAME: h1543.TIE                                                                                    PAGE: 9
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         The reimbursement program created by the bill, if funded, will lower the costs of fixed, terrestrial, retail
         wireline broadband service providers, i.e., companies that provide broadband via coaxial cable, fiber, or
         other wireline technology, to extend broadband service to unserved areas in the state. This may
         encourage the extension of service to such areas, providing greater access to broadband service in
         those areas.

         The grant program created by the Legislature in 2021 and funded by the bill will lower the costs for
         broadband service providers, regardless of technology, to extend broadband service to unserved areas
         in the state. This may encourage the extension of service to such areas, providing greater access to
         broadband service in those areas.

    D. FISCAL COMMENTS:
         None.


                                                        III. COMMENTS

    A. CONSTITUTIONAL ISSUES:

         1. Applicability of Municipality/County Mandates Provision:
            Not Applicable. This bill does not appear to affect county or municipal governments

         2. Other:
            None.

    B. RULE-MAKING AUTHORITY:
         The bill expressly prohibits rulemaking by DEO, the Office, or any other agency to administer the
         reimbursement program.

    C. DRAFTING ISSUES OR OTHER COMMENTS:
         The bill provides that an applicant shall receive a reimbursement of up to 50 percent of the total amount
         it paid for eligible pole replacement costs, or $5,000, whichever is less. It is not clear whether the
         $5,000 cap is intended to apply on a per pole or per application basis.

         DEO will be limited in its administration of the reimbursement program, as it is not granted rulemaking
         authority to administer the program. This may result in a less agile or responsive program that may
         require further legislative action to address any implementation issues that arise.

         The Office’s strategic plan for increasing the availability and use of broadband Internet service in the
         state is due to be completed by June 30, 2022. Funds from the reimbursement program will be
         distributed on a first-come, first-serve basis, and may be distributed without regard for a project’s
         consistency with the state’s strategic plan.

         The allowance for reimbursement program applicants or pole owners to recover administrative
         expenses (up to 5% of eligible pole replacement costs) may conflict with guidance from the U.S.
         Department of the Treasury concerning eligible costs under the Coronavirus Capital Projects Fund.
         That guidance defines eligible program administrative costs as the costs to the recipient (i.e., the state)
         to administer the funds, to provide technical assistance to subrecipients (i.e., broadband service
         providers), and complying with grant administration and audit requirements. 53




53 U.S. Dep’t. of Treasury, Guidance for the Coronavirus Capital Projects Fund for States, Territories, and Freely Associated States ,

supra note 14 at 10.
STORAGE NAME: h1543.TIE                                                                                                      PAGE: 10
DATE: 2/1/2022
                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   Not applicable.




STORAGE NAME: h1543.TIE                                                 PAGE: 11
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           HB 1543                                                                                               2022




    1                                         A bill to be entitled
    2                An act relating to broadband infrastructure; amending
    3                s. 288.9961, F.S.; revising the duties of the Florida
    4                Office of Broadband to include administering the
    5                Broadband Pole Replacement Program; creating s.
    6                288.9964, F.S.; providing legislative findings;
    7                providing definitions; establishing the Broadband Pole
    8                Replacement Program within the office; providing
    9                responsibilities of the office; providing eligibility
10                   requirements for reimbursements under the program;
11                   providing that reimbursements are subject to the
12                   availability of certain funds; providing that certain
13                   denied applicants may reapply in certain
14                   circumstances; providing requirements for the program
15                   application; requiring the office to provide certain
16                   reimbursements within a specified timeframe; requiring
17                   an applicant to meet certain conditions; requiring the
18                   Secretary of Economic Opportunity to apply for certain
19                   federal funding for the program; requiring that the
20                   amount of state funds allocated to the program be
21                   reduced by the amount of certain federal funds
22                   provided to the program; requiring the office to
23                   publish and continually update certain information on
24                   its public website; requiring an audit of the
25                   Broadband Pole Replacement Trust Fund within a

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        HB 1543                                                                                               2022




26                specified timeframe; requiring the office to provide a
27                report containing certain information to the Governor
28                and Legislature within a specified timeframe;
29                prohibiting rulemaking; providing an appropriation;
30                providing a contingent effective date.
31
32      Be It Enacted by the Legislature of the State of Florida:
33
34                Section 1.        Paragraph (g) is added to subsection (4) of
35      section 288.9961, Florida Statutes, to read:
36                288.9961         Promotion of broadband adoption; Florida Office
37      of Broadband.—
38                (4)       FLORIDA OFFICE OF BROADBAND.—The Florida Office of
39      Broadband is created within the Division of Community
40      Development in the department for the purpose of developing,
41      marketing, and promoting broadband Internet services in this
42      state. The office, in the performance of its duties, shall do
43      all of the following:
44                (g)       Administer the Broadband Pole Replacement Program
45      established in s. 288.9964.
46                Section 2.        Section 288.9964, Florida Statutes, is created
47      to read:
48                288.9964         Broadband Pole Replacement Program.—
49                (1)       LEGISLATIVE FINDINGS.—The Legislature finds that a
50      broadband pole replacement program administered by the Florida

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        HB 1543                                                                                               2022




51      Office of Broadband is necessary to further the state's goal of
52      expanding and accelerating access to broadband service in
53      unserved areas throughout the state.
54                (2)       DEFINITIONS.—As used in this section, the term:
55                (a)       "Applicant" means any private business, including a
56      corporation, limited liability company, partnership, nonprofit
57      corporation, or other entity, which provides or will provide
58      qualifying broadband service in the state.
59                (b)       "Application" means an application made under this
60      section for reimbursement of eligible pole replacement costs.
61                (c)       "Broadband Pole Replacement Trust Fund" means the
62      trust fund established pursuant to s. 288.9965.
63                (d)       "Eligible pole replacement" means the removal of an
64      existing utility pole and replacement with a new utility pole in
65      an unserved area in order to accommodate the attachment to such
66      new utility pole of facilities used in whole or in part by a
67      retail provider of qualifying broadband service for the purpose
68      of providing qualifying broadband service access to residences
69      or businesses in an unserved area. The term does not include the
70      removal and replacement of an existing utility pole by the
71      pole's owner, or an affiliated company, unless the removal and
72      replacement is performed as an accommodation to a provider of
73      qualifying broadband service.
74                (e)       "Eligible pole replacement costs" means the actual
75      costs to perform an eligible pole replacement which are paid by

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         HB 1543                                                                                               2022




 76      an applicant, excluding any amount separately reimbur sed through
 77      another state or federal broadband grant program or by a
 78      governmental entity other than the office. The term includes the
 79      costs to remove and dispose of the existing utility pole, to
 80      purchase and install a replacement utility pole, and to trans fer
 81      any existing facilities to the replacement utility pole.
 82                (f)       "Office" means the Florida Office of Broadband.
 83                (g)       "Pole" means any pole used in whole or in part for
 84      wire communications or electric distribution.
 85                (h)       "Pole owner" means any electric utility as defined in
 86      s. 366.02(2), public utility as defined in s. 366.02(1),
 87      communications services provider as defined in s. 366.02(5),
 88      cable television operator, or local exchange carrier that owns
 89      or controls a pole.
 90                (i)       "Program" means the Broadband Pole Replacement Program
 91      established under this section.
 92                (j)       "Qualifying broadband service" means a fixed,
 93      terrestrial, retail wireline broadband Internet service capable
 94      of delivering Internet access at speeds of at least 100 megabits
 95      per second both downstream and upstream with latency at a level
 96      sufficient to allow real-time, interactive applications.
 97                (k)       "Reimbursed through another state or federal broadband
 98      grant program" means, with respect to eligible pole replacement
 99      costs, that an applicant paying such costs has received or is
100      entitled to receive reimbursement for such costs under the terms

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         HB 1543                                                                                               2022




101      of another state or federal broadband grant program for the
102      deployment of broadband facilities, whether through a specific
103      reimbursement for such costs or through support payments that
104      equal or exceed the applicant's actual deployment costs,
105      including eligible pole replacement costs. The term does not
106      include the receipt of a state or federal grant that covers only
107      a portion of the applicant's actual deployment costs, including
108      eligible pole replacement costs, if the applicant pays the
109      eligible pole replacement costs with its own funds.
110                (l)       "Unserved area" means a location in which:
111                1.    Fixed, terrestrial, retail wireline broadband Internet
112      service is unavailable according to the latest available
113      broadband deployment data from the Federal Communications
114      Commission, provided that no person other than the applicant has
115      committed to providing qualifying broadband service in such
116      area; or
117                2.    An applicant is committed under the terms of a federal
118      or state grant to provide qualifying broadband service, provided
119      that the availability of such grant is limited to areas lacking
120      access to fixed, terrestrial, retail wireline broadband Internet
121      service.
122
123      As used in this paragraph, "broadband Internet service" means a
124      service that offers a connection to the Internet with a capacity
125      for transmission at a consistent speed of at least 25 megabits

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         HB 1543                                                                                               2022




126      per second downstream and 3 megabits per second upstream.
127                (3)       BROADBAND POLE REPLACEMENT PROGRAM.—
128                (a)       The Broadband Pole Replacement Program is established
129      within the office. The office shall administer the program and
130      is responsible for receiving and reviewing applications and
131      distributing reimbursements under the program.
132                (b)       Any applicant that pays eligible pole replacement
133      costs is eligible for reimbursement of such costs under the
134      program and may submit an application for reimbursement in
135      accordance with this section.
136                (c)       Reimbursements provided under the program are subject
137      to the availability of funds in the Broadband Pole Replacement
138      Trust Fund. The office shall accept applications for
139      reimbursement until all funds in the Broadband Pole Replacement
140      Trust Fund are exhausted.
141                (d)       An application pending when all funds in the Broadband
142      Pole Replacement Trust Fund are exhausted is deemed denied;
143      however, the applicant may reapply if sufficient funds are later
144      made available in the trust fund.
145                (e)       Within 60 days after the first deposit of funds into
146      the Broadband Pole Replacement Trust Fund, the office shall
147      publish an application form for reimbursement of eligible pole
148      replacement costs under the program. The application must
149      require the following:
150                1.    Information sufficient to establish the number and

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         HB 1543                                                                                               2022




151      costs of eligible pole replacements that qualify for
152      reimbursement under the program.
153                2.    Documentation sufficient to establish that the claimed
154      eligible pole replacements have been completed.
155                3.    The total reimbursement amount requested and any state
156      or federal grant funding or accounting information required to
157      justify the amount requested.
158                4.    A notarized statement from an officer or agent of the
159      applicant certifying that the contents of the application are
160      true and accurate and that such applicant will comply with t he
161      requirements of this section as a condition of receiving a
162      reimbursement under the program.
163                5.    Receipts verifying the amount of eligible pole
164      replacement costs paid by the applicant.
165                (f)       Within 60 days after receipt of a complete application
166      that establishes an applicant's eligible pole replacement costs,
167      the office shall reimburse the applicant in an amount equal to:
168                1.    Up to 50 percent of the total amount paid by such
169      applicant for eligible pole replacement costs or $5,000,
170      whichever is less; and
171                2.    Up to 100 percent of the documented actual and
172      reasonable administrative expenses paid by such applicant in
173      preparing and submitting the application, including any
174      reimbursement of administrative expenses required by a pole
175      owner pursuant to paragraph (g). However, the amount reimbursed

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         HB 1543                                                                                               2022




176      under this subparagraph may not exceed 5 percent of the amount
177      of eligible pole replacement costs verified by receipts
178      submitted with the application.
179                (g)       An applicant may request that a pole owner performing
180      an eligible pole replacement provide information sufficient to
181      establish the number and costs of eligible pole replacements and
182      receipts verifying the amount of eligible pole replacement costs
183      paid by the applicant if such information is not otherwise
184      reasonably available. A pole owner providing such information
185      and receipts may require the applicant to reimburse the pole
186      owner's administrative expenses, which may not exceed 5 percent
187      of the amount of eligible pole replacement costs.
188                (h)       As a condition of receiving a reimbursement under the
189      program, an applicant must:
190                1.    Certify its compliance with the requirements of this
191      section; and
192                2.    Agree to refund with interest at the applicable Federal
193      Funds rate as specified in s. 670.506 any reimbursements or
194      portions thereof received under the program to the Broadband
195      Pole Replacement Trust Fund or the General Revenue Fund, at the
196      direction of the office, if the office, after providing the
197      applicant with notice and an opportunity to respond, finds that
198      substantial evidence exists to support that such applicant
199      materially violated a requirement of this section with respect
200      to such reimbursements or portions thereof.

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         HB 1543                                                                                               2022




201                (i)       As applicable, if an applicant that is a pole owner
202      calculates its pole rental and other fees on the basis of a
203      formula required or approved by federal or state law or
204      regulation that includes consideration of the pole owner's
205      expenses, the applicant, as a condition of receiving
206      reimbursement under the program, must exclude from such expenses
207      any eligible pole replacement costs that were reimbursed by the
208      program, paid for by a retail provider of qualifying broadband
209      service, or funded by another state or federal grant.
210                (4)       PROGRAM FUNDING.—
211                (a)       The Secretary of Economic Opportunity shall apply for
212      $100 million in federal funding, including funds available from
213      the Coronavirus Capital Projects Fund pursuant to the
214      authorization set forth in s. 9901 of the American Rescue Plan
215      Act of 2021 and codified at s. 604, Title VI of the Social
216      Security Act, 42 U.S.C. s. 801, et seq., for the program. Any
217      such funds received must be deposited into the Broadband Pole
218      Replacement Trust Fund.
219                (b)       The amount of state funds allocated to the program
220      must be reduced by the amount of federal funds provided to the
221      program from the Coronavirus Capital Projects Fund.
222                (5)       TRANSPARENCY.—Within 60 days after the initial deposit
223      of funds into the Broadband Pole Replacement Trust Fund, the
224      office shall publish, and thereafter continually update, the
225      following information on its public website:

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         HB 1543                                                                                               2022




226                (a)       Statistics on the number of applications received,
227      processed, and rejected under the program.
228                (b)       Statistics on the value, number, and status of
229      reimbursements provided under the program, including the names
230      of pole owners and retail providers of qualifying broadband
231      service that received reimbursements under the program.
232                (c)       The amount of funds remaining in the Broadband Pole
233      Replacement Trust Fund.
234                (6)       AUDIT.—Within 1 year after the initial deposit of
235      funds into the Broadband Pole Replacement Trust Fund, the
236      Auditor General shall audit the fund and its administration for
237      compliance with the requirements of this section and s.
238      288.9965.
239                (7)       REPORT.—Within 1 year after all funds in the Broadband
240      Pole Replacement Trust Fund are exhausted, the office shall
241      provide a report to the Governor, the President of the Senate,
242      and the Speaker of the House of Representatives which identifies
243      and examines the deployment of broadband infrastructure and
244      technology facilitated by reimbursements provided under the
245      program.
246                (8)       RULEMAKING PROHIBITED.—Notwithstanding any provision
247      of law to the contrary, the department, the office, and other
248      agencies may not adopt rules to administer this section.
249                Section 3.       For the 2022-2023 fiscal year, the sum of $400
250      million in nonrecurring funds is appropriated from the General

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         HB 1543                                                                                               2022




251      Revenue Fund from payments received by the state pursuant to the
252      Coronavirus State Fiscal Recovery Fund established in 42 U.S.C.
253      s. 802 to the Florida Office of Broadband within the Department
254      of Economic Opportunity for the purpose of administering the
255      Broadband Opportunity Program established in s. 288.9962,
256      Florida Statutes.
257                Section 4.       This act shall take effect upon becoming a law,
258      if HB 1545 or similar legislation is adopted in the same
259      legislative session or an extension thereof and becomes a law .




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                                                                                                              hb1543-00
HB 1545
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 1545 Trust Funds/Broadband Pole Replacement Trust Fund/DEO
SPONSOR(S): Tomkow
TIED BILLS: HB 1543    IDEN./SIM. BILLS: CS/SB 1802

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                                    Johnson            Keating

  2) Infrastructure & Tourism Appropriations
     Subcommittee

  3) Commerce Committee


                                                     SUMMARY ANALYSIS

HB 1543 (2022), to which this bill is linked, creates the Broadband Pole Replacement Program, administered
by the Florida Broadband Office (Office) within the Department of Economic Opportunity (DEO). The program
will reimburse fixed, terrestrial, wireline broadband service providers for their costs incurred for the removal
and replacement of existing utility poles in areas of Florida that are unserved by broadband Internet service.
Reimbursements under the program are limited to 50 percent of the broadband Internet service provider’s
eligible pole replacement cost or $5,000, whichever is less, in addition to their administrative costs related to
the preparation and submission of the application for reimbursement.

HB 1543 (2022) also directs the Secretary of DEO to apply for $100 million in federal funding from the
Coronavirus Capital Projects Fund and directs any such funds received to be placed into the Broadband Pole
Replacement Trust Fund.

This bill creates the Broadband Pole Replacement Trust Fund within DEO and provides that the trust fund is
established as a depository for funds appropriated by the Legislature, federal funds received from the federal
Coronavirus Capital Projects Fund, funds transferred by DEO, interest earnings, and grants, gifts, and other
contributions made directly to the fund. In accordance with article III, section 19(f)(2) of the Florida Constitution,
the trust fund terminates four years after the effective date of the bill. Before its scheduled termination, the trust
fund must be reviewed pursuant to state law.

Article III, s. 19(f)(1) of the State Constitution specifies that a trust fund of the State of Florida or other
public body may only be created or recreated by law in a separate bill. The bill creating or recreating
the trust fund must pass with a three-fifths vote of the membership of each house of Legislature. Thus,
this bill requires a three-fifths vote for passage.

This bill takes effect on the same date that HB 1543 takes effect, if such legislation is adopted in the same
legislative session or an extension thereof and becomes law.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1545.TIE
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                                                        FULL ANALYSIS

                                                 I. SUBSTANTIVE ANALYSIS

       A. EFFECT OF PROPOSED CHANGES:
           Current Situation

           Trust Funds

           Article III, section 19(f) of the Florida Constitution requires that state trust funds may only be created by
           the Legislature if passed by a three-fifths vote of the membership of each house of the Legislature in a
           separate bill for the sole purpose of creating a trust fund. Each trust fund must be created by general
           law that specifies at a minimum all of the following:
                The name of the trust fund;
                The agency or branch of state government responsible for administering the trust fund;
                The requirements or purposes the trust fund is established to meet;
                The sources of moneys to be credited to the trust fund or specific sources of receipts to be
                    deposited in the trust fund.1

           State trust funds terminate no more than four years after the effective date of the act authorizing the
           initial creation of the trust fund.2 The Legislature is required to review all state trust funds at least once
           every four years.3 If the Legislature does not re-create a trust fund, it will be abolished four years after
           its initial creation pursuant to the Florida Constitution.4

           Department of Commerce Coronavirus Capital Projects Fund

           In 2021, the American Rescue Plan5 allocated $10 billion to eligible governments to carry out capital
           projects to meet critical needs, with an emphasis on broadband infrastructure.6 Each state is eligible for
           a fixed amount of $100 million plus an additional allocation based on the state’s population, the
           proportion of its population that lives in rural areas, and the proportion of individuals who receive a
           household income below 150 percent of the poverty line. 7

           Eligible states must have applied by December 27, 2021, and submit a grant plan by September 24,
           2022.8 Capital Projects Fund recipients may pass the funds on to subrecipients, such as other levels of
           government, non-profits, or private entities. Florida’s allocation of these funds is $366 million, 9 for which
           Florida’s Department of Economic Opportunity (DEO) timely applied.

           Presumptively eligible projects under the program include the construction and deployment of
           broadband infrastructure that is designed to deliver service that reliably meets or exceeds symmetrical
           speeds of 100 Mbps, or if impracticable, speeds of 100 Mbps downstream and 20 Mbps upstream.10


1
    S. 215.3207, F.S.
2 Art III, s. 19. Fla. Const.
3 Section 215.3208, F.S.
4 Art III, s. 19. Fla. Const.
5 Pub. L. 117-2 (117 th Congress) (H.R. 1319).
6
  U.S. Dep’t. of Treasury, Capital Projects Fund, https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-
tribal-governments/capital-projects-fund (last visited Feb. 1, 2022).
7 U.S. Dep’t. of Treasury, Coronavirus Capital Projects Fund: Allocations Methodology for States, Territories, and Freely Associated

States (Aug. 2021), https://home.treasury.gov/system/files/136/Allocations-Methodology-States-Territories-Freely-Associated-States.pdf
(last visited Feb. 1, 2022).
8 Id. See also, U.S. Dep’t. of Treasury, Guidance for the Coronavirus Capital Projects Fund for States, Territories, and Freely

Associated States, 1, 14 (Sept. 2021), https://home.treasury.gov/system/files/136/Capital-Projects-Fund-Guidance-States-Territories-
and-Freely-Associated-States.pdf (last visited Feb. 1, 2022).
9 U.S. Dep’t. of Treasury, Coronavirus Capital Projects Fund: Allocations for States, District of Columb ia, and Puerto Rico,

https://home.treasury.gov/system/files/136/Allocations-States.pdf (last visited Feb. 1, 2022)
10U.S. Dep’t. of Treasury, Guidance for the Coronavirus Capital Projects Fund for States, Territories, and Freely Associated States, at

3. (Sept. 2021), https://home.treasury.gov/system/files/136/Capital-Projects-Fund-Guidance-States-Territories-and-Freely-Associated-
States.pdf (last visited Feb. 1, 2022).
STORAGE NAME: h1545.TIE                                                                                                       PAGE: 2
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           Projects that may be eligible on a case-by-case review include investments in capital assets, such as
           buildings, towers, digital devices and equipment, fiber-optic lines, and broadband networks.11

           HB 1543 (2022)

           HB 1543 (2022), to which this bill is linked, creates the Broadband Pole Replacement Program to be
           administered by the Office. The program will reimburse fixed, terrestrial, wireline broadband service
           providers for their costs incurred for the removal and replacement of existing utility poles in areas of
           Florida that are unserved by broadband Internet service. Reimbursements under the program are
           limited to 50 percent of the broadband Internet service provider’s eligible pole replacement cost or
           $5,000, whichever is less, in addition to their administrative costs related to the preparation and
           submission of the application for reimbursement.

           That bill directs the Secretary of DEO to apply for $100 million in federal funding from the Coronavirus
           Capital Projects Fund and directs any such funds received to be placed into the Broadband Pole
           Replacement Trust Fund.

           Effect of the Bill

           This bill creates the Broadband Pole Replacement Trust Fund within DEO for the deposit of funds
           appropriated by the Legislature; federal funds received from the Coronavirus Capital Projects Fund for
           the Broadband Pole Replacement Program; funds transferred by DEO; interest earnings; and grants,
           gifts, and other contributions made directly to the fund.

           The bill provides that funds from the trust fund will be used to provide reimbursements to qualified
           applicants from the Broadband Pole Replacement Program, created by linked bill HB 1543, and for use
           by the Office to administer the program.

           The bill further provides that any balance that is in the trust fund at the end of any fiscal year shall be
           carried forward in the trust fund for the purposes of continued administration of the Broadband Pole
           Replacement Program.

           Pursuant to the requirements of the Florida Constitution, the trust fund will terminate four years after its
           effective date, but must first be reviewed as provided in s. 215.3206(1) and (2), F.S.

           The bill directs the Division of Law Revision to replace the phrase “4 years after the effective date of
           this act” with the date that the trust fund will terminate.

           The bill provides that the act takes effect on the same date that HB 1543, relating to the Broadband
           Pole Replacement Program, takes effect, if such legislation is adopted in the same legislative session
           or an extension thereof and becomes law.

     B. SECTION DIRECTORY:
           Section 1      Creates s. 288.9965, F.S., creating the Broadband Pole Replacement Trust Fund.

           Section 2      Provides a directive to the Division of Law Revision.

           Section 3      Provides a contingent effective date.


                            II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

     A. FISCAL IMPACT ON STATE GOVERNMENT:

           1. Revenues:

11 Id. at 7.

STORAGE NAME: h1545.TIE                                                                                           PAGE: 3
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           None.

       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.


                                                III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. This bill does not appear to impact county or municipal governments.

       2. Other:
          Trust Funds
          Article III, s. 19(f), of the Florida Constitution requires that every trust fund be created by a three-
          fifths vote of the membership of each house of the Legislature in a separate bill for the sole purpose
          of creating a trust fund. State trust funds terminate no more than four years after the initial creation,
          unless they are re-created.

   B. RULE-MAKING AUTHORITY:
       This bill does not require or authorize rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.




STORAGE NAME: h1545.TIE                                                                                      PAGE: 4
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           HB 1545                                                                                               2022




    1                                          A bill to be entitled
    2                An act relating to the Broadband Pole Replacement
    3                Trust Fund; creating s. 288.9965, F.S.; creating the
    4                Broadband Pole Replacement Trust Fund within the
    5                Department of Economic Opportunity; providing the
    6                purpose of the trust fund; providing that moneys
    7                credited to the trust fund shall consist of certain
    8                funds; requiring that funds in the trust fund be used
    9                in a manner consistent with federal law; providing
10                   that the balance in the trust fund at the end of a
11                   fiscal year remains in the trust fund and is available
12                   for carrying out the purposes of the trust fund;
13                   providing for future legislative review and
14                   termination or re-creation of the trust fund;
15                   providing a directive to the Division of Law Revision;
16                   providing a contingent effective date.
17
18         Be It Enacted by the Legislature of the State of Florida:
19
20                   Section 1.        Section 288.9965, Florida Statutes, is created
21         to read:
22                   288.9965         Broadband Pole Replacement Trust Fund.—
23                   (1)       The Broadband Pole Replacement Trust Fund is created
24         within the Department of Economic Opportunity for the purpose of
25         providing reimbursements to qualified applicants under the

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        HB 1545                                                                                               2022




26      Broadband Pole Replacement Program pursuant to s. 288.9964 a nd
27      for use by the Florida Office of Broadband in the administration
28      of that program. Moneys credited to the trust fund shall consist
29      of funds appropriated by the Legislature; federal funds received
30      from the Coronavirus Capital Projects Fund for the Broadba nd
31      Pole Replacement Program; funds transferred by the department;
32      interest earnings; and grants, gifts, and other contributions
33      made directly to the trust fund. Funds in the trust fund must be
34      used in a manner consistent with federal law.
35                (2)       Notwithstanding s. 216.301 and pursuant to s. 216.351,
36      any balance in the trust fund at the end of any fiscal year
37      shall remain in the trust fund at the end of the year and shall
38      be available for carrying out the purposes of the trust fund.
39                (3)       In accordance with s. 19(f)(2), Art. III of the State
40      Constitution, unless terminated sooner, the Broadband Pole
41      Replacement Trust Fund shall be terminated 4 years after the
42      effective date of this act. Before its scheduled termination,
43      the trust fund shall be reviewed as provided in s. 215.3206(1)
44      and (2).
45                Section 2.       The Division of Law Revision is directed to
46      replace the phrase "4 years after the effective date of this
47      act" wherever it occurs in this act with the date the trust fund
48      will terminate.
49                Section 3.       This act shall take effect on the same date
50      that HB 1543 or similar legislation takes effect, if such

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        HB 1545                                                                                               2022




51      legislation is adopted in the same legislative session or an
52      extension thereof and becomes a law.




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                                                                                                             hb1545-00
PCS for HB 445
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     PCS for HB 445 Transportation Network Companies
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee
TIED BILLS:       IDEN./SIM. BILLS:

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    Orig. Comm.: Tourism, Infrastructure & Energy                                       Johnson            Keating
       Subcommittee

                                             SUMMARY ANALYSIS
In 2017, the Legislature adopted a regulatory framework for the operation of transportation network companies
(TNCs) in the state. Pursuant to Florida law, a TNC is an entity that provides prearranged rides through the use
of a digital network that connects a TNC driver with riders. Examples of TNCs operating in Florida include Uber
and Lyft.

Florida law prohibits most local regulations of TNCs, but does not prohibit airports and seaports from charging
reasonable pickup fees to TNCs for the use of airport or seaport facilities, provided that those fees are
consistent with fees charged to taxicab companies.

The bill limits the pickup fee that an airport or seaport may charge a TNC to $2 per pickup. The bill appears to
effectively limit the pickup fees for taxicab companies at $2 per pickup, given the requirement that pickup fees
charged to TNCs be consistent with those charged to taxicab companies.

The bill does not appear to have a fiscal impact on state government. The bill may have a negative fiscal
impact on counties, municipalities, and special districts that operate airports and seaports that currently impose
TNC pickup fees of greater than $2 per pickup.

The bill has an effective date of July 1, 2022.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs0445.TIE
DATE: 2/1/2022
                                                         FULL ANALYSIS

                                                 I. SUBSTANTIVE ANALYSIS

       A. EFFECT OF PROPOSED CHANGES:
           Current Situation

           Transportation Network Companies

           In 2017, the Legislature adopted a regulatory framework for the operation of transportation network
           companies (TNCs) in the state.1 Pursuant to Florida law, a TNC is an entity that provides prearranged
           rides through the use of a digital network that connects a TNC driver with riders. 2 A TNC is not deemed
           to own, control, operate, direct, or manage the TNC vehicles or TNC drivers that connect to its digital
           network, except where agreed to by written contract, and is not a taxicab association.3

           Florida law prohibits a county, municipality, special district, airport authority, port authority, or other
           local governmental entity or subdivision from:
                Imposing a tax on, or requiring a license for a TNC, a TNC driver, or a TNC vehicle if such tax
                   or license relates to providing prearranged rides;
                Subjecting a TNC, a TNC driver, or a TNC vehicle to any rate, entry, operation, or other
                   requirement of the county, municipality, special district, airport authority, port authority, or other
                   local governmental entity or subdivision; or
                Requiring a TNC or a TNC driver to obtain a business license or any other type of similar
                   authorization to operate within the local governmental entity's jurisdiction.4

           However, the law does not prohibit an airport or seaport from charging reasonable pickup fees to TNCs
           consistent with any pickup fees charged to taxicab companies at that airport or seaport for the use of
           the airports’ or seaports’ facilities.5

           Airports

           Florida is home to 20 commercial service airports and 100 general aviation airports.6 Commercial
           service airports are publicly-owned airports that have at least 2,500 passenger boardings each year
           and receive scheduled passenger service. General aviation airports are airports that do not have
           scheduled service or have less than 2,500 passenger boardings each year. 7

           Florida’s commercial service airports range in size from large-hub airports 8 with over 20 million annual
           passenger boardings to small municipal airports with approximately 10,000 annual passenger
           boardings.9 In Florida, commercial service airports operate as either departments of a municipality or
           county or as a special district.

           Federal Aviation Administration grant assurances require an airport to maintain a fee and rental
           structure for the facilities and services at the airport which will make the airport as self-sustaining as


1 Ch. 2017-12, Laws of Fla.
2
    S. 627.748(1)(e), F.S.
3 S. 627.748(1), F.S.
4 S. 627.748(17)(a), F.S.
5 S. 627.748(17)(b), F.S.
6 Florida Department of Transportation, Florida Aviation System Plan 2021 Annual Report, p. 3.

https://fdotwww.blob.core.windows.net/sitefinity/docs/default-source/aviation/fasp-elevate-2021-brochure_final.pdf (last visited Nov. 15,
2021)
7 49 U.S.C. § 47102.
8 A subset of commercial airports is large-hub airports. Large-hub airports are commercial service airports that have at least 1 percent

of the passenger boardings in the United States.
9 FAA, Commercial Service Airports, Rank Order based on calendar year 2019, Sep. 25, 2020,

https://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/passenger/media/cy19 -commercial-service-enplanements.pdf
(last visited Nov. 15, 2021).
STORAGE NAME: pcs0445.TIE                                                                                                       PAGE: 2
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         possible under the circumstances existing at the particular airport, taking into account such factors as
         the volume of traffic and economy of collection.10

         The table below shows a sample of the current TNC pickup fees being charged at Florida commercial
         service airports as of August 2020:11

          Airport                                     Owner/Operator                                             Pickup Fee
          Orlando                                     Greater Orlando Aviation Authority                         $5.80
          Tampa                                       Hillsborough County Aviation Authority                     $5
          St. Pete/Clearwater                         Pinellas County                                            $4
          Jacksonville                                Jacksonville Aviation Authority                            $3.25
          Ft. Lauderdale/Hollywood                    Broward County                                             $3
          Tallahassee                                 City of Tallahassee                                        $3
          Punta Gorda                                 Charlotte County Airport Authority                         $3
          Key West                                    Monroe County                                              $3
          Southwest Florida (Ft. Myers)               Lee County Port Authority                                  $3
          Orlando/Sanford                             Sanford Airport Authority                                  $2.75
          Sarasota/Bradenton                          Sarasota Manatee Airport Authority                         $2.50
          Miami                                       Miami-Dade County                                          $2.50
          Daytona Beach                               Volusia County                                             $1.50
          Gainesville                                 Gainesville Alachua County Regional Airport                $1
                                                      Authority

         Seaports

         Florida is home to 15 deepwater seaports,12 which may be operated as a department of a municipality
         or county or as a special district. Five of the state’s deepwater seaports offer cruise ship departures
         and arrivals. The table below shows current TNC pickup fees being charged at Florida seaports offering
         cruise ship departures and arrivals:13

          Seaport                                        Owner/Operator                          Pickup Charge
          Port Canaveral                                 Canaveral Port Authority                $4
          Miami                                          Miami-Dade County                       $2
          Everglades (Ft. Lauderdale)                    Broward County                          $2
          JAXPORT                                        Jacksonville Port Authority             $3
          Tampa Bay                                      Tampa Port Authority                    $0

         Effect of the Bill

         This bill limits the pickup fees that airports and seaports may charge TNCs to $2 per pickup. Due to
         existing law requiring that pickup fees charged to TNCs be consistent with those charged to taxicab
         companies at the same airport or seaport, the bill appears to effectively limit the pickup fees for taxicab
         companies to $2 per pickup.

         The bill has an effective date of July 1, 2022.

    B. SECTION DIRECTORY:
         Section 1          Amends s. 627.478, F.S., relating to transportation network companies.


10 Federal Aviation Administration, Airport Sponsor Assurances, February 2020, p. 1 1.

https://www.faa.gov/airports/aip/grant_assurances/media/airport-sponsor-assurances-aip-2020.pdf (last visited Jan 30, 2022).
11 Attachment to e-mail from Lisa Waters, President, Florida Airports Council, RE HB 445 - Transportation Network Companies. (Nov.

12, 2021).
12 Florida Ports Council, The Florida System of Seaports, https://flaports.org/about/the-florida-system-of-seaports/ (last visited Nov. 15,

2021).
13 E-mail from Mike Rubin, President, Florida Ports Council, RE:HB 455 – Transportation Network Companies (Nov. 19, 2021).

STORAGE NAME: pcs0445.TIE                                                                                                           PAGE: 3
DATE: 2/1/2022
       Section 2       Provides an effective date.


                            II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           Municipalities, counties, and special districts operating airports and seaports may see a significant
           reduction in revenues associated with TNC and taxicab pickup fees.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       At most airports and some seaports, TNCs and taxicab companies will see cost savings associated
       with the $2 limit on pickup fees. These savings may or may not be passed along to consumers.

       To adjust for lost revenue from TNC and taxicab pickup fees and maintain self-sustainability, airports
       and seaports may increase charges to other users or tenants.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          The county/municipality mandates provision of Art. VII, section 18, of the Florida Constitution may
          apply to the extent that airports and seaports subject to the bill are operated by counties and
          municipalities whose authority to raise total aggregate revenues, as such authority existed on
          February 1, 1989, is reduced by the bill; however an exemption may apply if the bill creates an
          insignificant fiscal impact.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       This bill does not require or authorize rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.

STORAGE NAME: pcs0445.TIE                                                                                  PAGE: 4
DATE: 2/1/2022
                            IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
Not applicable.




STORAGE NAME: pcs0445.TIE                                                  PAGE: 5
DATE: 2/1/2022
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           PCS for HB 445                                                                                       2022



    1                                         A bill to be entitled
    2              An act relating to transportation network companies ;
    3              amending s. 627.748, F.S.; providing a limitation on
    4              certain fees charged by airports or seaports;
    5              providing an effective date.
    6
    7      Be It Enacted by the Legislature of the State of Florida:
    8
    9              Section 1.         Paragraph (b) of subsection (17) of section
10         627.748, Florida Statutes, is amended to read:
11                 627.748        Transportation network companies.—
12                 (17)        PREEMPTION.—
13                 (b)         This subsection does not prohibit an airport or
14         seaport from charging reasonable pickup fees consistent with any
15         pickup fees charged to taxicab companies at that airport or
16         seaport for their use of the airport's or seaport's facilities,
17         provided such fees do not exceed $2 per pickup, or prohibit the
18         airport or seaport from designating locations for staging,
19         pickup, and other similar operations at the airport or seaport.
20                 Section 2.         This act shall take effect July 1, 2022.




                                                         Page 1 of 1
        PCS for HB 445
        CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 915
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     PCS for HB 915 Commercial Motor Vehicle Registration
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee
TIED BILLS:       IDEN./SIM. BILLS: SB 1582

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    Orig. Comm.: Tourism, Infrastructure & Energy                                       Johnson            Keating
       Subcommittee

                                           SUMMARY ANALYSIS
Under current law, each commercial motor vehicle (CMV) registered under the International Registration Plan
(IRP) must pay a $28 fee annually for a new license plate along with a cab card denoting its declared vehicle
weight.

Effective January 1, 2024, the bill requires vehicles registered under the IRP to be issued a license plate for a
three-year period. At the end of the three-year period, the plate must be replaced upon renewal. Each license
plate must include a validation sticker reflecting the month that the plate expires. Under the bill, an annually
issued cab card, including payment of a $28 annual fee, is still required. The bill provides that the $28 annual
fee must be deposited into the Highway Safety Operating Trust Fund and authorizes the Department of
Highway Safety and Motor Vehicles (DHSMV) to replace a damaged or worn license plate at no cost to an
applicant surrendering the current license plate.

The bill does not appear to impact state government revenues but may have an indeterminate positive impact
to DHSMV due to a reduced cost in printing license plates for CMVs. The bill does not appear to have a fiscal
impact to local governments.

The bill has an effective date of July 1, 2022.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs0915.TIE
DATE: 2/1/2022
                                                         FULL ANALYSIS

                                                 I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Current Situation

         The International Registration Plan (IRP) is a reciprocity agreement among states of the United States,
         the District of Columbia and provinces of Canada which recognizes the registration of commercial
         motor vehicles (CMVs) 1 registered by other jurisdictions. The plan provides for payment of apportioned
         licensing fees based on the total distance operated in all member jurisdictions. 2

         Current law requires the Department of Highway Safety and Motor Vehicles (DHSMV), upon receipt of
         an application and payment of the appropriate fees, to issue to a vehicle owner or lessee a certificate of
         registration and a license plate.3 License plates are issued for a ten-year period and must be replaced
         upon renewal at the end of the ten-year period. The fee for license plate replacement is $28, $2.80 of
         which is paid each year before the plate is replaced, and such fees must be deposited into the Highway
         Safety Operating Trust Fund. A validation sticker must also be issued, reflecting the owner’s birth
         month, license plate number, and the year of expiration, or the appropriate renewal period if the owner
         is not a natural person.4

         CMVs registered in accordance with the IRP,5 known as “apportioned vehicles,”6 are issued an annual
         license plate, as well as a cab card denoting the declared gross vehicle weight for each apportioned
         jurisdiction in which the vehicle is authorized to operate. 7 The $28 license plate replacement fee is paid
         annually upon initial registration and subsequent renewal and includes issuance of a cab card.

         Effect of the Bill

         The bill removes the requirement that vehicles registered under the IRP must be issued an annual
         license plate and cab card effective December 31, 2023.

         The bill provides that effective January 1, 2024, apportioned vehicles must be issued a license plate for
         a three-year period. The license plate must be replaced upon renewal at the end of the three-year
         period and, as under current law, each license plate must include a validation sticker reflecting the
         month that the license plate expires.

         Under the bill, an annually issued cab card, including payment of a $28 annual fee, is still required. The
         $28 fee must be deposited into Highway Safety Operating Trust Fund.

         Finally, the bill provides that if the license plate is damaged or worn, the license plate may be replaced
         at no charge by applying to DHSMV and surrendering the current license plate.

         The bill has an effective date of July 1, 2022.


1 Section 320.01(25), F.S., defines the term “commercial motor vehicle’ to mean any vehicle not owned or operated by a governmental

entity, which uses special fuel or motor fuel on the public highways, and which has a gross vehicle weight of 26,001 pounds o r more, or
has three or more axles regardless of weight, or is used in combination when the weight of such combination exceeds 26,001 pounds
gross vehicle weight.
2 International Registration Plan, Inc., Welcome to IRP, Inc. https://www.irponline.org/ (last visited Nov. 3, 2021).
3 Section 320.06(1)(a), F.S. See s. 320.0706, F.S., for license plate display requirements for commercial trucks with a gross vehicle

weight of 26,001 pounds or more, and for dump trucks and truck tractors.
4 Section 320.06(1)(b), F.S.
5 Department of Highway Safety and Motor Vehicles, Commercial Motor Vehicle Drivers, International Registration Plan, available at

https://www.flhsmv.gov/driver-licenses-id-cards/commercial-motor-vehicle-drivers/international-registration-plan/ (last visited Jan 28,
2022).
6 Section 320.0715(1), F.S., requires all apportionable vehicles domiciled in this state to be registered in accordance with the

International Registration Plan and to display license plates.
7 S. 316.06(1)(b), F.S.

STORAGE NAME: pcs0915.TIE                                                                                                       PAGE: 2
DATE: 2/1/2022
   B. SECTION DIRECTORY:
       Section 1       Amends s. 320.06, F.S., relating to registration certificates, license plates, and validation
                       stickers generally.

       Section 2       Provides an effective date.


                            II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           Indeterminate. DHSMV will likely see a reduction in expenditures associated with a reduced cost in
           printing CMV license plates.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       CMV owners with vehicles registered under the International Registration Plan may see a reduction in
       costs associated with only having to replace the license plate on each vehicle once every three years
       instead of annually.

   D. FISCAL COMMENTS:
       None.


                                                III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. This bill does not appear to impact county or municipal governments.

       2. Other:
          None

   B. RULE-MAKING AUTHORITY:
       This bill does not require or authorize rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None


STORAGE NAME: pcs0915.TIE                                                                                    PAGE: 3
DATE: 2/1/2022
                            IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.




STORAGE NAME: pcs0915.TIE                                                 PAGE: 4
DATE: 2/1/2022
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           PCS for HB 915                                                                                       2022



    1                                         A bill to be entitled
    2              An act relating to commercial motor vehicle
    3              registration; amending s. 320.06, F.S.; providing for
    4              future expiration of a provision relating to vehicles
    5              with apportioned registrations; providing, beginning
    6              on a specified date, license plate and cab card
    7              requirements for vehicles registered in accordance
    8              with the International Registration Plan; specifying
    9              the fee for an original or renewal cab card and the
10                 trust fund where the fee is deposited; providing for
11                 the replacement at no charge of damaged or worn
12                 license plates; providing an effective date.
13
14         Be It Enacted by the Legislature of the State of Florida:
15
16                 Section 1.         Paragraph (b) of subsection (1) of section
17         320.06, Florida Statutes, is amended to read:
18                 320.06       Registration certificates, license plates, and
19         validation stickers generally.—
20                 (1)
21                 (b)1.        Registration license plates bearing a graphic symbol
22         and the alphanumeric system of identification shall be issued
23         for a 10-year period. At the end of the 10-year period, upon
24         renewal, the plate shall be replaced. The department shall
25         extend the scheduled license plate replacement date from a 6 -

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        PCS for HB 915                                                                                       2022



26      year period to a 10-year period. The fee for such replacement is
27      $28, $2.80 of which shall be paid each year before the plate is
28      replaced, to be credited toward the next $28 replacement fee.
29      The fees shall be deposited into the Highway Safety Operating
30      Trust Fund. A credit or refund may not be given for any prior
31      years' payments of the prorated replacement fee if the plate is
32      replaced or surrendered before the end of the 10-year period,
33      except that a credit may be given if a registrant is required by
34      the department to replace a license plate under s.
35      320.08056(8)(a). With each license plate, a validation sticker
36      shall be issued showing the owner's birth month, license plate
37      number, and the year of expiration or the appropriate renewal
38      period if the owner is not a natural person. The validation
39      sticker shall be placed on the upper right corner of the license
40      plate. The license plate and validation sticker shall be issued
41      based on the applicant's appropriate renewal period. The
42      registration period is 12 months, the extended registration
43      period is 24 months, and all expirations occur based on the
44      applicant's appropriate registration period. Rental vehicles
45      taxed pursuant to s. 320.08(6)(a) may elect a permanent
46      registration period, provided payment of the appropriate license
47      taxes and fees occurs annually.
48              2.       A vehicle that has an apportioned registration shall be
49      issued an annual license plate and a cab card that denote the
50      declared gross vehicle weight for each apportioned jurisdiction

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        PCS for HB 915                                                                                       2022



51      in which the vehicle is authorized to operate. This subparagraph
52      expires December 31, 2023.
53              3.       Beginning January 1, 2024, a vehicle registered in
54      accordance with the International Registration Plan must be
55      issued a license plate for a 3-year period. At the end of the 3-
56      year period, upon renewal, the license plate must be replaced.
57      Each license plate must include a validation sticker showing the
58      month of expiration. A cab card denoting the declared gross
59      vehicle weight for each apportioned jurisdiction must be issued
60      annually. The fee for an original or a renewal cab card is $28,
61      which must be deposited into the Highway Safety Operating Trust
62      Fund. If the license plate is damaged or worn, it may be
63      replaced at no charge by applying to the department and
64      surrendering the current license plate.
65              4.2.         In order to retain the efficient administration of
66      the taxes and fees imposed by this chapter, the 80-cent fee
67      increase in the replacement fee imposed by chapter 2009 -71, Laws
68      of Florida, is negated as provided in s. 320.0804.
69              Section 2.         This act shall take effect July 1, 2022.




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