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Meeting Packet — Tourism, Infrastructure & Energy Subcommittee (February 15, 2022)

Summary

Meeting packet for the Tourism, Infrastructure & Energy Subcommittee of the Commerce Committee, Tuesday, February 15, 2022, 8:00 AM in Reed Hall (102 HOB). The agenda lists HB 247 by Salzman (Florida Main Street Program and Historic Preservation Tax Credits), CS/HB 399 Motor Vehicle and Vessel Law Enforcement, HB 1031 Transportation Research by Andrade, HB 1419, CS/HB 1461 Reinstatement of Suspended Driver Licenses, and a proposed committee substitute for HB 737 (Electric Vehicle Transportation Electrification Plan). The staff analysis of HB 247 discusses the National Register of Historic Places and the Main Street America program. The packet closes with the text of PCS for HB 737, whose Section 2 provides that the act takes effect July 1, 2022.

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“Meeting Packet — Tourism, Infrastructure & Energy Subcommittee (February 15, 2022).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-02-15-3103-tourism-infrastructure-energy-subcommittee-meeting-pac-b8e485f458/, SHA-256 e8282d0885765c3908175dc45f0c248c7360137bb820d1239fad1055f8dd8654.

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        Tourism, Infrastructure & Energy
                 Subcommittee
                Tuesday, February 15, 2022
                   8:00 am – 10:00 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
                                     Tuesday, February 15, 2022
                                       8:00 AM – 10:00 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 247 Florida Main Street Program and Historic Preservation Tax Credits by
           Salzman
           CS/HB 399 Motor Vehicle and Vessel Law Enforcement by Criminal Justice &
           Public Safety Subcommittee, Rodriguez
           HB 1031 Transportation Research by Andrade
           HB 1419 Financial Assistance for Municipal Solid Waste-to-Energy Facilities by
           Mariano
           CS/HB 1461 Reinstatement of Suspended Driver Licenses by Criminal Justice &
           Public Safety Subcommittee, Driskell
           Consideration of the following proposed committee substitute(s):
           PCS for HB 737 -- Electric Vehicle Transportation Electrification Plan
   V.      Closing Remarks
   VI.     Adjournment




                303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                                (850) 717-4870
HB 247
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 247 Florida Main Street Program and Historic Preservation Tax Credits
SPONSOR(S): Salzman and others
TIED BILLS:       IDEN./SIM. BILLS: CS/SB 1310

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                                    Walsh              Keating

  2) Ways & Means Committee

  3) Commerce Committee


                                              SUMMARY ANALYSIS
The National Register of Historic Places, under the National Park Service, is “part of a national program to
coordinate and support public and private efforts to identify, evaluate, and protect America’s historic and
archeological resources.” Properties listed in the National Register are eligible for federal preservation tax
credits.

The Main Street America program offers community-based revitalization initiatives to assist in transforming
downtowns. In order to be designated as either an affiliate or accredited member of Main Street America, a
community must first become a member of the National Main Street Center and meet certain requirements .

Florida levies a 5.5 percent tax on certain income of corporations and financial institutions doing business in
Florida. Florida also imposes a 1.75 percent tax on most Florida insurance premiums.

The bill creates the Main Street Historic Tourism and Revitalization Act (Act) which provides a tax credit
against corporate income tax and insurance premium tax for qualified expenses incurred in the rehabilitation of
a certified historic structure. The bill provides eligibility and filing requirements. Under the bill, a tax credit as
authorized by the Act may be sold or transferred. The bill gives DOR the authority to audit tax credit applicants
to verify the legitimacy of qualified expenditures. Under the bill, DOR is granted rulemaking authority to
administer the Act.

The bill does not appear to impact local government revenues or expenditures. By implementing a new tax
credit, the bill will likely decrease state revenues. The bill may increase state 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: h0247.TIE
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                                                      FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        National Register of Historic Places

        The National Register of Historic Places (National Register),1 under the National Park Service, is “part
        of a national program to coordinate and support public and private efforts to identify, evaluate, and
        protect America’s historic and archeological resources.” 2 The program:
             Reviews property nominations and lists eligible properties in the National Register;
             Offers guidance on evaluating, documenting, and listing historic places; and
             Helps qualified historic properties receive preservation benefits and incentives. 3

        Properties listed in the National Register are eligible for federal preservation tax credits. A twenty
        percent federal income tax credit is available for the rehabilitation of historic, income-producing
        buildings that are determined by the Secretary of the Interior, through the National Park Service, to be
        certified historic structures.4

        Main Street America

        Main Street America, a program under the National Main Street Center, 5 is a network of grassroots
        organizations that “revitalizes older and historic commercial districts to build vibrant neighborhoods and
        thriving economies.”6 The program offers community-based revitalization initiatives to assist in
        transforming downtowns. In order to be designated as either an affiliate or accredited member of Main
        Street America, a community must first become a member of the National Main Street Center and meet
        certain requirements.7 Main Street America has coordinating programs that are organized at the state,
        county, and city level that partner with the National Main Street Center to provide support and training
        to Main Street America communities.

        Florida has two coordinating programs: Florida Main Street America located in Tallahassee and
        Orlando Main Street located in Orlando.8 Florida Main Street is administered by the Division of
        Historical Resources (division) under the Florida Department of State. 9 Forty-five Florida Main Streets
        and ten Orlando Main Streets have received technical assistance toward the goal of revitalizing historic
        downtowns and encouraging economic development. 10


1 54 U.S.C., § 3201.
2 U.S. Department     of the Interior, National Park Service, National Register of Historic Places, What is the National
Register of Historic Places?, https://www.nps.gov/subjects/nationalregister/ what -is-the-national-register.htm (last visited
Feb. 11, 2022).
3 Id.
4 U.S. Department of the Interior, National Park Service, Technical Preservation Services , https://www.nps.gov/tps/tax-

incentives.htm (last visited Feb. 11, 2022).
5 The National Main Street Center was established in 1980 as a program of the National Trust for Historic Preservation to

address issues facing aging and historic downtowns. The Center launched the Main Street America program in 2015. See
Main Street America, About Us, https://www.mainstreet.org/about-us (last visited Feb. 11, 2022).
6 Id.
7 Main Street America, Designation, https://higherlogicdownload.s3.amazonaws.com/NMSC/390e0055 -2395-4d3b-af60-

81b53974430d/UploadedImages/Main_Street_America_Tier_System_Overview_ -_2021_July_Update. pdf (last visited
Feb. 11, 2022).
8 Main Street America, Coordinating Programs, https://higherlogicdownload.s3.amazonaws.com/NMS C/390e0055-2395-

4d3b-af60-81b53974430d/UploadedImages/ The_P rograms/2020_Coordinating_Program_List.pdf (last visited Feb. 11,
2022).
9 S. 267.031(5), F.S.
10 Visit Florida, Florida Main Street Programs Have Stories to Tell, https://www.visitflorida.com/travel-ideas/articles/florida-

main-street/ (last visited Feb. 11, 2022).
STORAGE NAME: h0247.TIE                                                                                                 PAGE: 2
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         Corporate Income Tax

         Florida levies a 5.5 percent tax on certain income of corporations and financial institutions doing
         business in Florida.11 Florida utilizes the taxable income determined for federal income tax purposes as
         a starting point to determine the total amount of Florida corporate income tax due. 12 This means that a
         corporation paying taxes in Florida generally receives the same benefits from deductions allowed when
         determining taxable income for federal tax purposes as it does when determining taxable income for
         state taxation purposes.

         Insurance Premium Tax

         Florida imposes a 1.75 percent tax on most Florida insurance premiums.13 Insurance premium taxes
         are paid by insurance companies under ch. 624, F.S., and are remitted to the Department of Revenue
         (DOR). These revenues are distributed to General Revenue.

         Effect of the Bill

         The bill creates the Main Street Historic Tourism and Revitalization Act (Act) which provides a tax credit
         against corporate income tax and insurance premium tax for qualified expenses 14 incurred in the
         rehabilitation of a certified historic structure.

         To be eligible for the tax credits, a taxpayer must apply to DOR for a tax credit before taking a credit on
         their return and must document that:
              The rehabilitation is a certified rehabilitation;15
              The structure is a certified historic structure,16 is income-producing, is located within the state,
                  and was rehabilitated and placed into service on or after July 1, 2022;
              The taxpayer had an ownership interest in the certified historic structure in the year during
                  which the certified historic structure was placed into service after the certified rehabilitation was
                  completed; and
              The total amount of qualified expenses incurred in rehabilitating the certified historic structure
                  exceeded $5,000.

         Under the bill, before a taxpayer can claim or transfer a tax credit, the taxpayer must provide the
         following information to DOR:
               An official certificate of eligibility from the Division of Historical Resources of the Department of
                 State signed by the State Historic Preservation Officer or the Deputy State Historic Preservation
                 Officer attesting that the project has been approved by the National Park Service and confirming
                 whether the project is or is not located within a Main Street local program area;
               National Park Service Form 10-168c, signed by the National Park Service attesting that the
                 completed rehabilitation meets the U.S. Secretary of the Interior’s Standards for Rehabilitation
                 and is consistent with the historic character of the property and, if applicable, the district in
                 which the completed rehabilitation is located;

11 S. 220.11(2),   F.S.
12 S. 220.12, F.S.
13 S. 624.509,   F.S.
14 The bill defines  “qualified expenses” as qualified rehabilitation expenditures (defined in 26 U.S.C., §47(c)(2)) and
structural components (defined in 26 C.F.R., § 1.48-1(e)(2)) at the time of project certification by the U.S. Secretary of the
Interior and the U.S. Internal Revenue Service (IRS).
15 The bill defines “certified rehabilitation” as the rehabilitation of a certified historic structure that the United States

Secretary of the Interior has certified to the United States Secretary of the Treasury as being consistent with the historic
character of the certified historic structure and, if applicable, consistent with the registered historic district in which t he
certified historic structure is located as set forth in 36 C.F.R. s. 67.2.
16 The bill defines “certified historic structure” as a building and its structural components which are of a character subject

to the allowance for depreciation provided in s. 167 of the Internal Revenue Code and which is listed on the National
Register of Historic Places or located within a registered historic district and certified by the U.S. Secretary of the Inter ior
as being of historic significance to the registered historic district.
STORAGE NAME: h0247.TIE                                                                                                   PAGE: 3
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                 Identification of the dates during which the structure was rehabilitated, the date the structure
                  was first placed into service after certified rehabilitation was completed, and evidence that the
                  structure was placed into service after the certified rehabilitation was completed;
                 A list of total qualified expenses incurred by the taxpayer in rehabilitating the certified historic
                  structure;17
                 An attestation of the total qualified expenses incurred by the taxpayer in rehabilitating the
                  certified historic structure;
                 A completed “Florida Corporate Income/Franchise Tax Return” form issued by DOR for
                  insurance premium tax reporting; and
                 The information required to be reported by DOR to enable the agency to compile its annual
                  report based on the tax credit applications submitted and approved.

         Under the bill, the tax credit may be used to offset the corporate income tax and the insurance premium
         tax. The total tax credit claimed annually may not exceed the amount of tax due after any other
         applicable tax credits and may not exceed:
              Twenty percent of the total qualified expenses incurred in rehabilitating a certified historic
                structure that has been approved by the National Park Service to receive the federal historic
                rehabilitation tax credit; or
              Thirty percent of the total qualified expenses incurred in rehabilitating a certified historic
                structure that has been approved by the National Park Service to receive the federal historic
                rehabilitation tax credit and that is located within a local program area of an Accredited Main
                Street Program.

         If a taxpayer is eligible for a tax credit that exceeds taxes owed, the taxpayer may carry the unused tax
         credit forward for a period of up to 10 years.

         The bill provides that there is no limit on the total number of transactions for the sale or transfer of all or
         part of a tax credit. However, qualified expenses may only be counted once in determining the amount
         of an available tax credit, and more than one taxpayer may not claim a tax credit for the same qualified
         expenses.

         Under the bill, a taxpayer that sells or transfers a tax credit and the purchaser or transferee must jointly
         submit written notice of the sale or transfer to DOR no later than the 30th day after the date of the sale
         or transfer. The notice must include the following information:
               The date of the sale or transfer;
               The amount of the tax credit sold or transferred;
               The name and federal tax identification number of the taxpayer that sold or transferred the tax
                 credit and the purchaser or transferee; and
               The amount of the tax credit owned by the taxpayer before the sale or transfer and the amount
                 the selling or transferring taxpayer retained, if any, after the sale or transfer.

         The sale or transfer of a tax credit does not extend the period for which a tax credit may be carried
         forward and does not increase the total amount of the tax credit that may be claimed.

         The bill provides that a tax credit earned, purchased, or transferred to a partnership, limited liability
         company, S corporation, or other pass-through taxpayer may be allocated to the partners, members, or
         shareholders of that taxpayer and without regard to the ownership interest of the partners, members, or
         shareholders in the rehabilitated certified historic structure.

         The bill provides that if the tax credit is reduced due to a determination, examination, or audit by DOR,
         the tax deficiency must be recovered from the taxpayer that sold or transferred the tax credit or the
         purchaser or transferee that claimed the tax credit up to the amount of the tax credit taken. Any


17 For certified rehabilitationswith qualified expenses that exceeded $750,000, the taxpayer must submit an audited cost
report that itemizes the qualified expenses incurred in rehabilitating the structure as provided in the Florida Single Audit
Act.
STORAGE NAME: h0247.TIE                                                                                               PAGE: 4
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       subsequent deficiencies must be assessed against the purchaser or transferee that claimed the tax
       credit, or in the case of multiple succeeding entities, in the order of tax credit succession.

       Under the bill, DOR is authorized to perform additional financial and technical audits and examinations,
       including examining the accounts, books, or records of the tax credit applicant, to verify the legitimacy
       of the qualified expenses included in a tax credit return and to ensure compliance. It is grounds for
       forfeiture of previously claimed and received tax credits if DOR determines that a taxpayer received a
       tax credit to which the taxpayer was not entitled. The taxpayer must return the forfeited tax credits to
       DOR, which will then be paid into the General Revenue Fund.

       The bill provides that the taxpayer must file an amended tax return and pay any required tax within 60
       days after the taxpayer receives notification from the IRS that a previously approved tax credit has
       been revoked or modified, if uncontested, or within 60 days after a final order is issued following
       proceedings involving a contested revocation or modification order. DOR may issue a notice of
       deficiency at any time within five years after the date on which the taxpayer receives notification from
       the IRS that a previously approved tax credit has been revoked or modified.

       The bill permits DOR to issue a notice of deficiency at any time if the taxpayer fails to notify DOR of any
       change in its tax credit claimed. The amount of any proposed assessment in the notice of deficiency is
       limited to the amount of any deficiency from the precomputation of the taxpayer’s tax for the taxable
       year. Furthermore, a taxpayer is subject to applicable penalties and interest for failing to report and
       timely paying any tax due as a result of the forfeiture of its tax credit.

       The bill provides that DOR must provide an annual report that identifies, in the aggregate:
           The number of employees hired during construction phases;
           The use of each newly rehabilitated building and the expected number of employees hired;
           The number of affordable housing units created or preserved; and
           The property values before and after the certified rehabilitations.

       Under the bill, DOR must also establish any necessary forms required to claim a tax credit; provide
       administrative guidelines and procedures required to administer the Act, including rules establishing an
       entitlement to and sale or transfer of a tax credit; and provide examination and audit procedures
       required to administer the Act.

       The bill grants DOR rulemaking authority to administer the Act.

   B. SECTION DIRECTORY:
       Section 1: Creates 220.197, F.S., which creates and provides terms for the Main Street Historic
       Tourism and Revitalization Act.

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




STORAGE NAME: h0247.TIE                                                                                    PAGE: 5
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                             II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

     A. FISCAL IMPACT ON STATE GOVERNMENT:

          1. Revenues:
                By implementing a new tax credit, the bill will likely decrease state revenues.

          2. Expenditures:
                According to DOR, the bill will have a non-recurring negative fiscal impact in the amount of
                $250,772 for fiscal year 2021-2022 in order to make modifications to the DOR’s software systems,
                databases and applications.18 Additionally, new rules and forms must be promulgated in order to
                administer the tax credit.

     B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

          1. Revenues:
                None.

          2. Expenditures:
                None.

     C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
          Taxpayers who have an ownership interest in a certified historic structure in the year during which the
          structure was placed into service after the certified rehabilitation was complete may be eligible to
          receive a tax credit to offset corporate income taxes and insurance premium taxes for qualified
          expenses incurred in the rehabilitation of the certified historic structure. This may lead to greater private
          investment in the rehabilitation of certified historic structures, which may have a positive impact on jobs
          and property values.

     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 authorizes DOR to adopt rules to administer the Act.

     C. DRAFTING ISSUES OR OTHER COMMENTS:
          To administer this section, DOR suggests that the bill include language which gives them emergency
          rulemaking authority and changes the effective date to July 1, 2023. 19


18 Department     of Revenue, Agency Analysis of 2022 House Bill 247, p.11 (Oct. 25, 2021).
19 Id. at 8.
STORAGE NAME: h0247.TIE                                                                                         PAGE: 6
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         The bill makes multiple references to when the certified historic structure is “placed into service,” but
         does not define this term. According to DOR, the bill is also unclear when it refers to a certified historic
         structure that has been “rehabilitated and placed into service on or after July 1, 2022.” This language is
         unclear as to whether the rehabilitation may begin before July 1, 2022.20


                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
     Not applicable.




20 Id.
STORAGE NAME: h0247.TIE                                                                                       PAGE: 7
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           HB 247                                                                                                2022




    1                                         A bill to be entitled
    2               An act relating to Florida Main Street Program and
    3               historic preservation tax credits; creating s.
    4               220.197, F.S.; providing a short title; defining
    5               terms; specifying eligibility requirements for
    6               receiving specified tax credits for taxpayers that
    7               rehabilitate certified historic structures; specifying
    8               the amount of tax credits; authorizing the
    9               carryforward, sale, and transfer of tax credits;
10                  providing the Department of Revenue audit and
11                  examination powers for specified purposes related to
12                  certified rehabilitation expenses; requiring the
13                  return of forfeited tax credits under certain
14                  circumstances; requiring the department to provide
15                  specified annual reports to the Legislature; providing
16                  duties of the department; authorizing the department
17                  to adopt rules; providing an effective date.
18
19                  WHEREAS, historic revitalization creates highly paid local
20         construction jobs, and
21                  WHEREAS, historic rehabilitation increases the value of
22         buildings and results in a growing state and local tax base, and
23                  WHEREAS, historic revitalization boosts heritage tourism
24         and creates thriving downtowns that are attractive to main
25         street businesses, and

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        HB 247                                                                                                2022




26               WHEREAS, reusing historic buildings creates affordable
27      spaces for small business incubation, and
28               WHEREAS, repurposing historic buildings saves resources and
29      activates vacant spaces, and
30               WHEREAS, historic rehabilitation projects leverage
31      significant private investment, and
32               WHEREAS, leveraging state tax incentives increases the
33      effectiveness of federal Historic Preservation Tax Incentives
34      and the Opportunity Zones Program to encourage the historic
35      preservation of existing buildings, and
36               WHEREAS, an increase in rehabilitation activity occurs when
37      a state incentive is combined with federal Historic Preservation
38      Tax Incentives, and
39               WHEREAS, many historic buildings in the state need safety
40      upgrades and other improvements that require both public and
41      private investment to return these buildings as assets of their
42      local communities, NOW, THEREFORE,
43
44      Be It Enacted by the Legislature of the State of Florida:
45
46               Section 1.         Section 220.197, Florida Statutes, is created
47      to read:
48               220.197        The Main Street Historic Tourism and
49      Revitalization Act; tax credits; reports.—
50               (1)         SHORT TITLE.-This act may be cited as the "Main Street

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        HB 247                                                                                                2022




51      Historic Tourism and Revitalization Act."
52               (2)         DEFINITIONS.—As used in this section, the term:
53               (a)         "Accredited Main Street Program" means an active
54      Florida Main Street Program that meets Main Street America
55      accreditation standards. An Accredited Main Street Program must:
56               1.      Have broad-based community support for the commercial
57      district revitalization process with strong support from the
58      public and private sectors.
59               2.      Have a developed vision and mission statement relevant
60      to community conditions and to Main Street America's
61      organizational stage.
62               3.      Have a comprehensive Main Street America work plan.
63               4.      Possess an historic preservation ethic.
64               5.      Have an active board of directors and committees.
65               6.      Have an adequate operating budget.
66               7.      Have a paid professional program manager.
67               8.      Conduct a program of ongoing training for staff and
68      volunteers.
69               9.      Report key statistics.
70               10.         Be a current member of Main Street America.
71               (b)         "Certified historic structure" means a building and
72      its structural components as defined in 36 C.F.R s. 67.2 that is
73      of a character subject to the allowance for depreciation
74      provided in s. 167 of the Internal Revenue Code of 1986, as
75      amended, and that is:

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         HB 247                                                                                                2022




 76               1.      Individually listed in the National Register of
 77      Historic Places; or
 78               2.      Located within a registered historic district and
 79      certified by the United States Secretary of the Interior as
 80      being of historic significance to the registered historic
 81      district as set forth in 36 C.F.R. s. 67.2.
 82               (c)         "Certified rehabilitation" means the rehabilitation of
 83      a certified historic structure that the United States Secretary
 84      of the Interior has certified to the United States Secretary of
 85      the Treasury as being consistent with the historic character of
 86      the certified historic structure and, if applicable, consistent
 87      with the registered historic district in which the certified
 88      historic structure is located as set forth in 36 C.F.R. s. 67.2.
 89               (d)         "Division" means the Division of Historical Resources
 90      of the Department of State.
 91               (e)         "Florida Main Street Program" means a statewide
 92      historic preservation-based downtown revitalization assistance
 93      program created, maintained, and administered by the division
 94      under s. 267.031(5).
 95               (f)         "Local program area" means the specific geographic
 96      area in which an Accredited Main Street Program is conducted as
 97      approved and maintained by the division.
 98               (g)         "Main Street America" means a national network of
 99      grassroots organizations revitalizing historic downtown areas
100      under the leadership of the National Main Street Center, Inc., a

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         HB 247                                                                                                2022




101      subsidiary of the National Trust for Historic Preservation.
102               (h)         "National Register of Historic Places" means the list
103      of historic properties significant in American history,
104      architecture, archeology, engineering, and culture maintained by
105      the United States Secretary of the Interior as authorized in 54
106      U.S.C s. 3021.
107               (i)         "Qualified expenses" means qualified rehabilitation
108      expenditures as defined in 26 U.S.C. s. 47(c)(2) and structural
109      components as defined in 26 C.F.R. s. 1.48-1(e)(2) at the time
110      of project certification by the United States Secretary of the
111      Interior and the United States Internal Revenue Service.
112               (j)         "Registered historic district" means a district listed
113      in the National Register of Historic Places or a district:
114               1.      Designated under general law or local ordinance and
115      certified by the United States Secretary of the Interior as
116      containing criteria that will substantially achieve the purp oses
117      of preserving and rehabilitating buildings of historic
118      significance to the district; and
119               2.      Certified by the United States Secretary of the
120      Interior as meeting substantially all of the requirements for
121      listing a district in the National Register of Historic Places.
122               (3)         ELIGIBILITY FOR TAX CREDIT.—To claim and receive a tax
123      credit under this section, a taxpayer must first apply to the
124      department for a tax credit for qualified expenses in the amount
125      and under the conditions and limitations provided i n this

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         HB 247                                                                                                2022




126      section against the tax due for a taxable year under this
127      chapter and must document that:
128               (a)         The rehabilitation is a certified rehabilitation.
129               (b)         The structure is a certified historic structure, is
130      income-producing, is located within the state, and was
131      rehabilitated and placed into service on or after July 1, 2022.
132               (c)         The taxpayer had an ownership interest in the
133      certified historic structure in the year during which the
134      certified historic structure was placed into service after the
135      certified rehabilitation was completed.
136               (d)         The total amount of qualified expenses incurred in
137      rehabilitating the certified historic structure exceeded $5,000.
138               (4)         TAX CREDIT FILING REQUIREMENTS.—Before claiming or
139      transferring a tax credit under this section, the taxpayer must
140      provide the department with the following information:
141               (a)         An official certificate of eligibility from the
142      division signed by the State Historic Preservation Officer or
143      the Deputy State Historic Preservation Officer attesting that
144      the project has been approved by the National Park Service and
145      confirming whether the project is or is not located within a
146      Main Street local program area.
147               (b)         National Park Service Form 10-168e (Rev. 2019), titled
148      "Historic Preservation Certification Application–Request for
149      Certification of Completed Work-Part 3," signed by the National
150      Park Service attesting that the completed rehabilitation meets

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151      the United States Secretary of the Interior's Standards for
152      Rehabilitation and is consistent with the historic character of
153      the property and, if applicable, the district in which the
154      completed rehabilitation is located. The form may be obtained
155      through the National Park Service.
156               (c)         An identification of the dates during which the
157      certified historic structure was rehabilitated, the date the
158      certified historic structure was first placed into service after
159      the certified rehabilitation was completed, and evidence that
160      the certified historic structure was placed into service after
161      the certified rehabilitation was completed.
162               (d)         A list of total qualified expenses incurred by the
163      taxpayer in rehabilitating the certified historic structure. For
164      certified rehabilitations with qualified expenses that exceeded
165      $750,000, the taxpayer must submit an audited cost report issued
166      by a certified public accountant that itemizes the qualified
167      expenses incurred in rehabilitating the certified historic
168      structure as provided in s. 215.97.
169               (e)         An attestation of the total qualified expenses
170      incurred by the taxpayer in rehabilitating the certified
171      historic structure.
172               (f)         A completed Form F-1120, titled "Florida Corporate
173      Income/Franchise Tax Return," or other appropriate tax form
174      issued by the department for insurance premium tax reporting.
175               (g)         The information required to be reported by the

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176      department in subsection (9) to enable the department to compile
177      its annual report.
178               (5)         AMOUNT OF TAX CREDIT.—The total tax credit claimed
179      annually may not exceed the amount of tax due after any other
180      applicable tax credits and may not exceed the following:
181               (a)         Twenty percent of the total qualified expenses
182      incurred in rehabilitating a certified historic structure that
183      has been approved by the National Park Service to receive the
184      federal historic rehabilitation tax credit; or
185               (b)         Thirty percent of the total qualified expenses
186      incurred in rehabilitating a certified historic structure that
187      has been approved by the National Park Service to receive the
188      federal historic rehabilitation tax credit and that is located
189      within a local program area of an Accredited Main Street
190      Program.
191
192      The tax credit may be used to offset the corporate income tax
193      imposed in s. 220.11 and the insurance premium tax imposed in s.
194      624.509.
195               (6)         CARRYFORWARD OF TAX CREDIT.—
196               (a)         If a taxpayer is eligible for a tax credit that
197      exceeds taxes owed, the taxpayer may carry the unused tax credit
198      forward for a period of up to 10 years.
199               (b)         A carryforward is considered the remaining portion of
200      a tax credit that cannot be claimed in the current tax year.

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201               (7)         SALE OR TRANSFER OF TAX CREDIT.—
202               (a)         A taxpayer that incurs qualified expenses may sell or
203      transfer all or part of the tax credit that may otherwise be
204      claimed to another taxpayer.
205               (b)         A taxpayer to which all or part of the tax credit is
206      sold or transferred may sell or transfer all or part of the tax
207      credit that may otherwise be claimed to another taxpayer.
208               (c)         A taxpayer that sells or transfers a tax credit to
209      another taxpayer must provide a copy of the certificate of
210      eligibility together with the audited cost report to th e
211      purchaser or transferee.
212               (d)         Qualified expenses may only be counted once in
213      determining the amount of an available tax credit, and more than
214      one taxpayer may not claim a tax credit for the same qualified
215      expenses.
216               (e)         There is no limit on the total number of transactions
217      for the sale or transfer of all or part of a tax credit.
218               (f)1.        A taxpayer that sells or transfers a tax credit
219      under this subsection and the purchaser or transferee shall
220      jointly submit written notice of the sale or transfer to the
221      department on a form adopted by the department no later than the
222      30th day after the date of the sale or transfer. The notice must
223      include all of the following:
224               a.      The date of the sale or transfer.
225               b.      The amount of the tax credit sold or transferred.

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226               c.      The name and federal tax identification number of the
227      taxpayer that sold or transferred the tax credit and the
228      purchaser or transferee.
229               d.      The amount of the tax credit owed by the taxpayer
230      before the sale or transfer and the amount the selling or
231      transferring taxpayer retained, if any, after the sale or
232      transfer.
233               2.      The sale or transfer of a tax credit under this
234      subsection does not extend the period for which a tax credit may
235      be carried forward and does not increase the total amount of the
236      tax credit that may be claimed.
237               3.      If a taxpayer claims a tax credit for qualified
238      expenses, another taxpayer may not use the same expenses as the
239      basis for claiming a tax credit.
240               4.      Notwithstanding the requirements of this subsection, a
241      tax credit earned, purchased by, or transferred to a
242      partnership, limited liability company, S corporation, or other
243      pass-through taxpayer may be allocated to the partners, members,
244      or shareholders of that taxpayer and claimed under this section
245      in accordance with any agreement among the partners, members, or
246      shareholders and without regard to the ownership interest of the
247      partners, members, or shareholders in the rehabilitated
248      certified historic structure.
249               (g)         If the tax credit is reduced due to a determination,
250      examination, or audit by the department, the tax deficiency shall

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251      be recovered from the taxpayer that sold or transferred the tax
252      credit or the purchaser or transferee that claimed the tax
253      credit up to the amount of the tax credit taken.
254               (h)         Any subsequent deficiencies shall be assessed against
255      the purchaser or transferee that claimed the tax credit or, in
256      the case of multiple succeeding entities, in the order of tax
257      credit succession.
258               (8)         AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
259      CREDITS; FRAUDULENT CLAIMS.—
260               (a)         The department may perform any additional financial and
261      technical audits and examinations, including examining the
262      accounts, books, or records of the tax credit applicant, to
263      verify the legitimacy of the qualified expenses included in a
264      tax credit return and to ensure compliance with this section.
265               (b)         It is grounds for forfeiture of previously claimed and
266      received tax credits if the department determines, as a result
267      of an audit or information received from the division or the
268      United States Department of the Interior, that a taxpayer
269      received a tax credit pursuant to this section to which the
270      taxpayer was not entitled. In the case of fraud, the taxpayer
271      may not claim any future tax credits under this section.
272               (c)         The taxpayer must return forfeited tax credits to the
273      department and such funds shall be paid into the General Revenue
274      Fund.
275               (d)         The taxpayer shall file with the department an amended

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276      tax return or such other report as the department prescribes and
277      shall pay any required tax within 60 days after the taxpayer
278      receives notification from the United States Internal Revenue
279      Service that a previously approved tax credit has been revoked
280      or modified, if uncontested, or within 60 days after a final order
281      is issued following proceedings involving a contested revocation
282      or modification order.
283               (e)         A notice of deficiency may be issued by the department
284      at any time within 5 years after the date on which the taxpayer
285      receives notification from the United States Internal Revenue
286      Service that a previously approved tax credit has been revoked
287      or modified.
288               (f)         If a taxpayer fails to notify the department of any
289      change in its tax credit claimed, a notice of deficiency may be
290      issued at any time. In either case, the amount of any proposed
291      assessment set forth in such notice of deficiency is limited to
292      the amount of any deficiency resulting under this section from
293      the precomputation of the taxpayer's tax for the taxable year.
294               (g)         A taxpayer that fails to report and timely pay any tax
295      due as a result of the forfeiture of its tax credit violates
296      this section and is subject to applicable penalties and
297      interest.
298               (9)         ANNUAL REPORTS.—Each year, based on the applications
299      submitted and approved, the department must issue a report to
300      the President of the Senate and the Speaker of the House of

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301      Representatives that identifies, in the aggregate, all of the
302      following:
303               (a)         The number of employees hired during construction
304      phases.
305               (b)         The use of each newly rehabilitated building and the
306      expected number of employees hired.
307               (c)         The number of affordable housing units created or
308      preserved.
309               (d)         The property values before and after the certified
310      rehabilitations.
311               (10)        DEPARTMENT DUTIES.-The department shall:
312               (a)         Establish any necessary forms required to claim a tax
313      credit under this section.
314               (b)         Provide administrative guidelines and procedures
315      required to administer this section, including rules
316      establishing an entitlement to and sale or transfer of a tax
317      credit under this section.
318               (c)         Provide examination and audit procedures required to
319      administer this section.
320               (11)        RULES.—The department may adopt rules to administer
321      this section.
322               Section 2.         This act shall take effect July 1, 2022.




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       TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                         HB 247 by Rep. Salzman
    Florida Main Street Program and Historic Preservation Tax Credits

                             AMENDMENT SUMMARY
                               February 15, 2022


Amendment 1 by Rep. Salzman (strike-all):

•   Adds a definition for “long-term leasehold” and revises definitions.
•   Provides that the tax credit may be taken for taxable years beginning on or after
    January 1, 2023.
•   Requires the Division of Historical Resources of the Department of State (division),
    rather than the Department of Revenue (DOR), to evaluate and certify applications
    for the tax credit.
•   Authorizes a taxpayer to submit to the division an audited cost report which was
    created when applying for a federal historic rehabilitation tax credit.
•   Expands the evaluation process and provides duties for the division.
•   Provides the division with audit and examination powers.
•   Provides a date by which DOR must annually submit a report to the Legislature.
•   Authorizes DOR to make certain information available relating to the tax credit.
•   Authorizes DOR to adopt emergency rules.
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 247    (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 Salzman offered the following:
 4
 5          Amendment (with title amendment)
 6          Remove everything after the enacting clause and insert:
 7          Section 1.   Section 220.197, Florida Statutes, is created
 8     to read:
 9          220.197   Main Street Historic Tourism and Revitalization
10     Act; tax credits; reports.—
11          (1)    SHORT TITLE.—This act may be cited as the "Main Street
12     Historic Tourism and Revitalization Act."
13          (2)    DEFINITIONS.—As used in this section, the term:
14          (a)    "Accredited Main Street Program" means an active
15     Florida Main Street Program or the Orlando Main Streets program,
16     provided that such program meets the Main Street America
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17     accreditation standards. An Accredited Main Street Program must:
18          1.    Have broad-based community support for the commercial
19     district revitalization process with strong support from the
20     public and private sectors.
21          2.    Have a developed vision and mission statement relevant
22     to community conditions and to Main Street America's
23     organizational stage.
24          3.    Have a comprehensive Main Street America work plan.
25          4.    Possess a historic preservation ethic.
26          5.    Have an active board of directors and committees.
27          6.    Have an adequate operating budget.
28          7.    Have a paid professional program manager.
29          8.    Conduct a program of ongoing training for staff and
30     volunteers.
31          9.    Report key statistics.
32          10.    Be a current member of Main Street America.
33          (b)    "Certified historic structure" means a building and
34     its structural components as defined in 36 C.F.R. s. 67.2 which
35     is of a character subject to the allowance for depreciation
36     provided in s. 167 of the Internal Revenue Code of 1986, as
37     amended, and which is:
38          1.    Individually listed in the National Register of
39     Historic Places; or
40          2.    Located within a registered historic district and
41     certified by the United States Secretary of the Interior as
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42     being of historic significance to the registered historic
43     district as set forth in 36 C.F.R. s. 67.2.
44          (c)   "Certified rehabilitation" means the rehabilitation of
45     a certified historic structure that the United States Secretary
46     of the Interior has certified to the United States Secretary of
47     the Treasury as being consistent with the historic character of
48     the certified historic structure and, if applicable, consistent
49     with the registered historic district in which the certified
50     historic structure is located as set forth in 36 C.F.R. s. 67.2.
51          (d)   "Division" means the Division of Historical Resources
52     of the Department of State.
53          (e)   "Florida Main Street Program" means a statewide
54     historic preservation-based downtown revitalization assistance
55     program created, maintained, and administered by the division
56     under s. 267.031(5).
57          (f)   "Local program area" means the specific geographic
58     area in which an Accredited Main Street Program is conducted as
59     approved and maintained by the division or in which the Orlando
60     Main Streets program is conducted.
61          (g)   "Long-term leasehold" means a leasehold in a
62     nonresidential real property for a term of 39 years or more or a
63     leasehold in a residential real property for a term of 27.5
64     years or more.
65          (h)   "Main Street America" means a national network of
66     grassroots organizations revitalizing historic downtown areas
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67     under the leadership of the National Main Street Center, Inc., a
68     subsidiary of the National Trust for Historic Preservation.
69          (i)    "National Register of Historic Places" means the list
70     of historic properties significant in American history,
71     architecture, archeology, engineering, and culture maintained by
72     the United States Secretary of the Interior as authorized in 54
73     U.S.C. s. 3021.
74          (j)    "Orlando Main Streets" means a historic preservation-
75     based district revitalization program administered by the City
76     of Orlando.
77          (k)    "Qualified expenses" means rehabilitation expenditures
78     qualifying for the credit under 26 U.S.C. s. 47 incurred in this
79     state.
80          (l)    "Registered historic district" means a district listed
81     in the National Register of Historic Places or a district:
82          1.    Designated under general law or local ordinance and
83     certified by the United States Secretary of the Interior as
84     meeting criteria that will substantially achieve the purposes of
85     preserving and rehabilitating buildings of historic significance
86     to the district; and
87          2.    Certified by the United States Secretary of the
88     Interior as meeting substantially all of the requirements for
89     listing a district in the National Register of Historic Places.
90          (3)    ELIGIBILITY FOR TAX CREDIT.—For taxable years
91     beginning on or after January 1, 2023, there is allowed a credit
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 92     against any tax due for a taxable year under this chapter after
 93     the application of any other allowable credits by the taxpayer.
 94          (a)    To claim and receive a tax credit under this section,
 95     a taxpayer must apply to the division for a tax credit for
 96     qualified expenses in the amount and under the conditions and
 97     limitations provided in this section against the tax due for a
 98     taxable year under this chapter and must provide the division
 99     with all of the following:
100          1.    Documentation showing that:
101          a.    The rehabilitation is a certified rehabilitation;
102          b.    The structure is a certified historic structure, is
103     income-producing, is located within this state, and is
104     rehabilitated and placed in service on or after January 1, 2023;
105          c.    The taxpayer had an ownership or a long-term leasehold
106     interest in the certified historic structure in the year during
107     which the certified historic structure was placed into ser vice
108     after the certified rehabilitation was completed;
109          d.    The total amount of qualified expenses incurred in
110     rehabilitating the certified historic structure exceeded $5,000;
111          e.    The qualified expenses were incurred in this state; and
112          f.    The taxpayer received a tax credit for the qualified
113     expenses under 26 U.S.C. s. 47.
114          2.    An official certificate of eligibility from the
115     division, signed by the State Historic Preservation Officer or
116     the Deputy State Historic Preservation Officer, attesting that
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117     the project has been approved by the National Park Service and
118     confirming that the project is located within a local program
119     area.
120          3.   National Park Service Form 10-168c (Rev. 2019), titled
121     "Historic Preservation Certification Application–Part 3-Request
122     for Certification of Completed Work," or a similar form, signed
123     by an officer of the National Park Service, attesting that the
124     completed rehabilitation meets the United States Secretary of
125     the Interior's Standards for Rehabilitation and is consistent
126     with the historic character of the property and, if applicable,
127     the district in which the completed rehabilitation is located.
128     The form may be obtained through the National Park Service.
129          4.   An identification of the dates during which the
130     certified historic structure was rehabilitated, the date the
131     certified historic structure was placed in service after the
132     certified rehabilitation was completed, and evidence that the
133     certified historic structure was placed in service after the
134     certified rehabilitation was completed.
135          5.   A list of total qualified expenses incurred by the
136     taxpayer in rehabilitating the certified historic structure. For
137     certified rehabilitations with qualified expenses that exceed
138     $750,000, the taxpayer must submit an audited cost report issued
139     by a certified public accountant which itemizes the qualified
140     expenses incurred in rehabilitating the certified historic
141     structure. A taxpayer may submit an audited cost report issued
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142     by a certified public accountant which was created for purposes
143     of applying for a federal historic rehabilitation tax credit and
144     which includes all of the qualified expenses incurred in
145     rehabilitating the certified historic structure.
146          6.    An attestation of the total qualified expenses incurred
147     by the taxpayer in rehabilitating the certified historic
148     structure.
149          7.    The information required to be reported by the
150     department in subsection (8) to enable the department to compile
151     its annual report.
152          (b)     Within 60 days after receipt of the information
153     required under paragraph (a), the division shall evaluate the
154     application and recommend the applicant for certification or
155     denial. The division must approve or deny the application within
156     30 days after receiving the recommendation. If approved, the
157     division must provide a letter of certification to the applicant
158     consistent with any restrictions imposed. If the division denies
159     any part of the requested credit, the division must inform the
160     applicant of the grounds for the denial. The division must
161     submit a copy of the certification and the information provided
162     by the taxpayer to the department within 10 days after the
163     division's approval.
164          (4)     AMOUNT OF TAX CREDIT.—The total tax credit claimed
165     annually may not exceed the amount of tax due after any other
166     applicable tax credits and may not exceed the following:
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167          (a)   Twenty percent of the total qualified expenses
168     incurred in this state in rehabilitating a certified historic
169     structure that has been approved by the National Park Service to
170     receive the federal historic rehabilitation tax credit; or
171          (b)   Thirty percent of the total qualified expenses
172     incurred in this state in rehabilitating a certified historic
173     structure that has been approved by the National Park Service to
174     receive the federal historic rehabilitation tax credit and that
175     is located within a local program area.
176
177     The tax credit may be used to offset the corporate income tax
178     imposed in s. 220.11 and the insurance premium tax imposed in s.
179     624.509. An insurer claiming a credit against insurance premium
180     tax liability under this section may not be required to pay any
181     additional retaliatory tax levied pursuant to s. 624.5091 as a
182     result of claiming such credit. Section 624.5091 does not limit
183     such credit in any manner.
184          (5)   CARRYFORWARD OF TAX CREDIT.—
185          (a)   If a taxpayer is eligible for a tax credit that
186     exceeds taxes owed, the taxpayer may carry the unused tax credit
187     forward for a period of up to 5 taxable years.
188          (b)   A carryforward is considered the remaining portion of
189     a tax credit that cannot be claimed in the current tax year.
190          (6)   SALE OR TRANSFER OF TAX CREDIT.—
191          (a)   A taxpayer that incurs qualified expenses may sell or
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192     transfer all or part of the tax credit that may otherwise be
193     claimed to another taxpayer.
194          (b)     A taxpayer to which all or part of the tax credit is
195     sold or transferred may sell or transfer all or part of the tax
196     credit that may otherwise be claimed to another taxpayer.
197          (c)     A taxpayer that sells or transfers a tax credit to
198     another taxpayer must provide a copy of the certificate of
199     eligibility together with the audited cost report to the
200     purchaser or transferee.
201          (d)     Qualified expenses may be counted only once in
202     determining the amount of an available tax credit, and more than
203     one taxpayer may not claim a tax credit for the same qualified
204     expenses.
205          (e)     There is no limit on the total number of transactions
206     for the sale or transfer of all or part of a tax credit.
207          (f)1.     A taxpayer that sells or transfers a tax credit
208     under this subsection and the purchaser or transferee shall
209     jointly submit written notice of the sale or transfer to the
210     department on a form adopted by the department no later than the
211     30th day after the date of the sale or transfer. The notice must
212     include all of the following:
213          a.     The date of the sale or transfer.
214          b.     The amount of the tax credit sold or transferred.
215          c.     The name and federal tax identification number of the
216     taxpayer that sold or transferred the tax credit and the
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217     purchaser or transferee.
218          d.     The amount of the tax credit owned by the taxpayer
219     before the sale or transfer and the amount the selling or
220     transferring taxpayer retained, if any, after the sale or
221     transfer.
222          2.     The sale or transfer of a tax credit under this
223     subsection does not extend the period for which a tax credit may
224     be carried forward and does not increase the total am ount of the
225     tax credit that may be claimed.
226          3.     If a taxpayer claims a tax credit for qualified
227     expenses, another taxpayer may not use the same expenses as the
228     basis for claiming a tax credit.
229          4.     Notwithstanding the requirements of this subsection, a
230     tax credit earned by, purchased by, or transferred to a
231     partnership, limited liability company, S corporation, or other
232     pass-through taxpayer may be allocated to the partners, members,
233     or shareholders of that taxpayer and claimed under this section
234     in accordance with any agreement among the partners, members, or
235     shareholders and without regard to the ownership interest of the
236     partners, members, or shareholders in the rehabilitated
237     certified historic structure.
238          (g)     If the tax credit is reduced due to a determination,
239     examination, or audit by the department, the tax deficiency
240     shall be recovered from the taxpayer that sold or transferred
241     the tax credit or the purchaser or transferee that claimed the
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242     tax credit up to the amount of the tax credit taken.
243          (h)   Any subsequent deficiencies shall be assessed against
244     the purchaser or transferee that claimed the tax credit or, in
245     the case of multiple succeeding entities, in the order of tax
246     credit succession.
247          (7)   AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
248     CREDITS; FRAUDULENT CLAIMS.—
249          (a)   The department, with assistance from the division, may
250     perform any additional financial and technical audits and
251     examinations, including examining the accounts, books, or
252     records of the tax credit applicant, to verify the legitimacy of
253     the qualified expenses included in a tax credit return and to
254     ensure compliance with this section. If requested by the
255     department, the division must provide technical assistance for
256     any technical audits or examinations performed under this
257     subsection.
258          (b)   It is grounds for forfeiture of previously claimed and
259     received tax credits if the department determines, as a result
260     of an audit or information received from the division or the
261     United States Department of the Interior, that a taxpayer
262     received a tax credit pursuant to this section to which the
263     taxpayer was not entitled. In the case of fraud, the taxpayer
264     may not claim any future tax credits under this section.
265          (c)   The taxpayer must return forfeited tax credits to the
266     department, and such funds shall be paid into the General
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267     Revenue Fund.
268          (d)    The taxpayer shall file with the department an amended
269     tax return or such other report as the department prescribes and
270     shall pay any required tax within 60 days after the taxpayer
271     receives notification from the United States Internal Revenue
272     Service that a previously approved tax credit has been revoked
273     or modified, if uncontested, or within 60 days after a final
274     order is issued following proceedings involving a contested
275     revocation or modification order.
276          (e)    A notice of deficiency may be issued by the department
277     at any time within 5 years after the date on which the taxpayer
278     receives notification from the United States Internal Revenue
279     Service that a previously approved tax credit has been revoke d
280     or modified.
281          (f)    If a taxpayer fails to notify the department of any
282     change in its tax credit claimed, a notice of deficiency may be
283     issued at any time. In either case, the amount of any proposed
284     assessment set forth in such notice of deficiency is lim ited to
285     the amount of any deficiency resulting under this section from
286     the precomputation of the taxpayer's tax for the taxable year.
287          (g)    A taxpayer that fails to report and timely pay any tax
288     due as a result of the forfeiture of its tax credit violates
289     this section and is subject to applicable penalties and
290     interest.
291          (8)    ANNUAL REPORTS.—Based on the applications submitted
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292     and approved, the department must submit a report by December 1
293     of each year to the President of the Senate and the Speaker of
294     the House of Representatives that identifies, in the aggregate,
295     all of the following:
296          (a)     The number of employees hired during construction
297     phases.
298          (b)     The use of each newly rehabilitated building and the
299     expected number of employees hired.
300          (c)     The number of affordable housing units created or
301     preserved.
302          (d)     The property values before and after the certified
303     rehabilitations.
304          (9)     DEPARTMENT DUTIES.—The department shall:
305          (a)     Establish a cooperative agreement with the division.
306          (b)     Establish any necessary forms required to claim a tax
307     credit under this section.
308          (c)     Provide administrative guidelines and procedures
309     required to administer this section, including rules
310     establishing an entitlement to and sale or transfer of a tax
311     credit under this section.
312          (d)     Provide examination and audit procedures required to
313     administer this section.
314          (10)    RULES.—The department and the division may adopt
315     rules to administer this section.


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316          Section 2.    Subsection (23) is added to section 213.053,
317     Florida Statutes, to read:
318          213.053    Confidentiality and information sharing.—
319          (23)   The department may make available to the Division of
320     Historical Resources of the Department of State and the
321     Secretary of the Department of the Interior of the United States
322     or his or her delegate, exclusively for official purposes,
323     information for the purposes of administering the Main Street
324     Historic Tourism and Revitalization Act pursuant to s. 220.197.
325          Section 3.    Subsection (8) of section 220.02, Florida
326     Statutes, is amended to read:
327          220.02    Legislative intent.—
328          (8)    It is the intent of the Legislature that credits
329     against either the corporate income tax or the franchise tax be
330     applied in the following order: those enumerated in s. 631.828,
331     those enumerated in s. 220.191, those enumerated in s. 220.181,
332     those enumerated in s. 220.183, those enumerated in s. 220.182,
333     those enumerated in s. 220.1895, those enumerated in s. 220.195,
334     those enumerated in s. 220.184, those enumerated in s. 220.186,
335     those enumerated in s. 220.1845, those enumerated i n s. 220.19,
336     those enumerated in s. 220.185, those enumerated in s. 220.1875,
337     those enumerated in s. 220.1876, those enumerated in s.
338     220.1877, those enumerated in s. 220.193, those enumerated in s.
339     288.9916, those enumerated in s. 220.1899, those enumerated in


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340     s. 220.194, those enumerated in s. 220.196, and those enumerated
341     in s. 220.198, and those enumerated in s. 220.197.
342          Section 4.     Paragraph (a) of subsection (1) of section
343     220.13, Florida Statutes, is amended to read:
344          220.13    "Adjusted federal income" defined.—
345          (1)     The term "adjusted federal income" means an amount
346     equal to the taxpayer's taxable income as defined in subsection
347     (2), or such taxable income of more than one taxpayer as
348     provided in s. 220.131, for the taxable year, adjusted as
349     follows:
350          (a)     Additions.—There shall be added to such taxable
351     income:
352          1.a.    The amount of any tax upon or measured by income,
353     excluding taxes based on gross receipts or revenues, paid or
354     accrued as a liability to the District of Columbia or any state
355     of the United States which is deductible from gross income in
356     the computation of taxable income for the taxable year.
357          b.     Notwithstanding sub-subparagraph a., if a credit taken
358     under s. 220.1875, s. 220.1876, or s. 220.1877 is added to
359     taxable income in a previous taxable year under subparagraph 11.
360     and is taken as a deduction for federal tax purposes in the
361     current taxable year, the amount of the deduction allowed shall
362     not be added to taxable income in the current year. The
363     exception in this sub-subparagraph is intended to ensure that
364     the credit under s. 220.1875, s. 220.1876, or s. 220.1877 is
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365     added in the applicable taxable year and does not result in a
366     duplicate addition in a subsequent year.
367          2.   The amount of interest which is excluded from taxable
368     income under s. 103(a) of the Internal Revenue Code or any other
369     federal law, less the associated expenses disallowed in the
370     computation of taxable income under s. 265 of the Internal
371     Revenue Code or any other law, excluding 60 percent of any
372     amounts included in alternative minimum taxable income, as
373     defined in s. 55(b)(2) of the Internal Revenue Code, if the
374     taxpayer pays tax under s. 220.11(3).
375          3.   In the case of a regulated investment company or real
376     estate investment trust, an amount equal to the excess of the
377     net long-term capital gain for the taxable year over the amount
378     of the capital gain dividends attributable to the taxable year.
379          4.   That portion of the wages or salaries paid or incurred
380     for the taxable year which is equal to the amount of the credit
381     allowable for the taxable year under s. 220.181. This
382     subparagraph shall expire on the date specified in s. 290.016
383     for the expiration of the Florida Enterprise Zone Act.
384          5.   That portion of the ad valorem school taxes paid or
385     incurred for the taxable year which is equal to the amount of
386     the credit allowable for the taxable year under s. 220.182. This
387     subparagraph shall expire on the date specified in s. 290.016
388     for the expiration of the Florida Enterprise Zone Act.


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389          6.    The amount taken as a credit under s. 220.195 which is
390     deductible from gross income in the computation of taxable
391     income for the taxable year.
392          7.    That portion of assessments to fund a guaranty
393     association incurred for the taxable year which is equal to the
394     amount of the credit allowable for the taxable year.
395          8.    In the case of a nonprofit corporation which holds a
396     pari-mutuel permit and which is exempt from federal income tax
397     as a farmers' cooperative, an amount equal to the excess of the
398     gross income attributable to the pari-mutuel operations over the
399     attributable expenses for the taxable year.
400          9.    The amount taken as a credit for the taxable year under
401     s. 220.1895.
402          10.    Up to nine percent of the eligible basis of any
403     designated project which is equal to the credit allowable for
404     the taxable year under s. 220.185.
405          11.    Any amount taken as a credit for the taxable year
406     under s. 220.1875, s. 220.1876, or s. 220.1877. The addition in
407     this subparagraph is intended to ensure that the same amount is
408     not allowed for the tax purposes of this state as both a
409     deduction from income and a credit against the tax. This
410     addition is not intended to result in adding the same expense
411     back to income more than once.
412          12.    The amount taken as a credit for the taxable year
413     under s. 220.193.
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414          13.   Any portion of a qualified investment, as defined in
415     s. 288.9913, which is claimed as a deduction by the taxpayer and
416     taken as a credit against income tax pursuant to s. 288.9916.
417          14.   The costs to acquire a tax credit pursuant to s.
418     288.1254(5) that are deducted from or otherwise reduce federal
419     taxable income for the taxable year.
420          15.   The amount taken as a credit for the taxable year
421     pursuant to s. 220.194.
422          16.   The amount taken as a credit for the taxable year
423     under s. 220.196. The addition in this subparagraph i s intended
424     to ensure that the same amount is not allowed for the tax
425     purposes of this state as both a deduction from income and a
426     credit against the tax. The addition is not intended to result
427     in adding the same expense back to income more than once.
428          17.   The amount taken as a credit for the taxable year
429     pursuant to s. 220.198.
430          18.   The amount taken as a credit for the taxable year
431     pursuant to s. 220.197.
432          Section 5.   Subsection (7) of section 624.509, Florida
433     Statutes, is amended to read:
434          624.509   Premium tax; rate and computation.—
435          (7)   Credits and deductions against the tax imposed by this
436     section shall be taken in the following order: deductions for
437     assessments made pursuant to s. 440.51; credits for taxes paid
438     under ss. 175.101 and 185.08; credits for income taxes paid
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439     under chapter 220 and the credit allowed under subsection (5),
440     as these credits are limited by subsection (6); the credit
441     allowed under s. 624.51057; the credit allowed under s. 220.197;
442     and all other available credits and deductions.
443          Section 6.   (1)   The Department of Revenue may, and all
444     conditions are deemed met to, adopt emergency rules under s.
445     120.54(4), Florida Statutes, for the purpose of implementing
446     provisions related to the Main Street Historic Tourism and
447     Revitalization Act.
448          (2)   Notwithstanding any other law, emergency rules adopted
449     under this section are effective for 6 months after adoption and
450     may be renewed during the pendency of procedures to adopt
451     permanent rules addressing the subject of the emergency rules.
452          (3)   This section shall take effect upon this act becoming
453     a law and expires July 1, 2023.
454          Section 7.   This act applies to taxable years beginning and
455     for qualified expenses incurred on or after January 1, 2023.
456          Section 8.   This act shall take effect January 1, 2023.
457
458           -----------------------------------------------------
459                        T I T L E   A M E N D M E N T
460          Remove everything before the enacting clause and insert:
461          An act relating to the Florida Main Street Program and
462          historic preservation tax credits; creating s. 220.197,
463          F.S.; providing a short title; defining terms; specifying
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464          eligibility requirements for receiving specified tax
465          credits for taxpayers that rehabilitate certified historic
466          structures; specifying requirements for taxpayers claiming
467          or transferring specified tax credits; specifying
468          requirements for the Division of Historical Resources of
469          the Department of State for evaluating and certifying
470          applications for specified tax credits; specifying the
471          amount of tax credits; providing construction; authorizing
472          the carryforward, sale, and transfer of tax credits;
473          providing the Department of Revenue and the division audit
474          and examination powers for specified purposes related to
475          certified rehabilitation expenses; requiring the return of
476          forfeited tax credits under certain circumstances;
477          providing penalties; requiring the Department of Revenue to
478          provide specified annual reports to the Legislature;
479          providing duties of the Department of Revenue; authorizing
480          the Department of Revenue and the division to adopt rules;
481          amending s. 213.053, F.S.; authorizing the Department of
482          Revenue and the Secretary of the Department of the Interior
483          of the United States to make certain information available
484          for specified purposes; amending s. 220.02, F.S.; revising
485          the order in which tax credits against the corporate income
486          tax credit or the franchise tax are applied; amending s.
487          220.13, F.S.; revising the definition of the term "adjusted
488          federal income"; amending s. 624.509, F.S.; revising the
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489          order in which credits and deductions against the insurance
490          premium tax are applied; authorizing the Department of
491          Revenue to adopt emergency rules to implement certain
492          provisions; providing for expiration of that authority;
493          providing applicability; providing an effective date.
494
495          WHEREAS, historic revitalization creates highly paid local
496     construction jobs, and
497          WHEREAS, historic rehabilitation increases the value of
498     buildings and results in a growing state and local tax base, and
499          WHEREAS, historic revitalization boosts heritage tourism
500     and creates thriving downtowns that are attractive to main
501     street businesses, and
502          WHEREAS, reusing historic buildings creates affordable
503     spaces for small business incubation, and
504          WHEREAS, repurposing historic buildings saves resources and
505     activates vacant spaces, and
506          WHEREAS, historic rehabilitation projects leverage
507     significant private investment, and
508          WHEREAS, leveraging state tax incentives increases the
509     effectiveness of federal Historic Preservation Tax Incentives
510     and the Opportunity Zones Program to encourage the historic
511     preservation of existing buildings, and




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512          WHEREAS, an increase in rehabilitation activity occurs when
513     a state incentive is combined with federal Historic Preservation
514     Tax Incentives, and
515          WHEREAS, many historic buildings in this state need safety
516     upgrades and other improvements that require both public and
517     private investment to return these buildings as assets of their
518     local communities, NOW, THEREFORE,




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CS / HB 399
                       HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 399 Motor Vehicle and Vessel Law Enforcement
SPONSOR(S): Criminal Justice & Public Safety Subcommittee, Rodriguez
TIED BILLS:       IDEN./SIM. BILLS: CS/SB 876

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    1) Criminal Justice & Public Safety Subcommittee            17 Y, 0 N, As CS        Frost              Hall

    2) Tourism, Infrastructure & Energy Subcommittee                                    Neuffer            Keating

    3) Judiciary Committee

                                                     SUMMARY ANALYSIS
Recently, dangerous events known as “street takeovers” have grown in popularity across the country. These events
involve large numbers of vehicles and persons gathering at a predetermined site, typically blocking a large intersection,
for vehicles to perform donuts, drifting, burn-outs and other dangerous vehicular maneuvers. Due to the large size of
these gatherings, it may be difficult for law enforcement to respond to and control such events, as participants typically
flee the location as soon as law enforcement presence is detected.

Florida law prohibits the following racing activities on highways, roadways, or parking lots, unless sanctioned by the
proper authorities:
      Driving a motor vehicle, including a motorcycle, in any: race; speed competition or contest; drag race; test of
         physical endurance; or exhibition of speed or acceleration or for making a speed record;
      Participating in, coordinating, facilitating, or collecting money at any such race, competition, test, or exhibition
         location;
      Knowingly riding as a passenger in any such race, competition, test, or exhibition; or
      Purposefully stopping or slowing traffic movement for any such race, competition, test, or exhibition.

A racing violation is a first degree misdemeanor, punishable by up to one year in county jail and specified fines. A person
may be arrested without a warrant if there is probable cause to believe he or she has committed a racing violation.
Additionally, being a spectator at a drag race is punishable as a noncriminal traffic infraction.

CS/HB 399 amends the crimes under s. 316.191(2), F.S., to add additional types of vehicles and additional prohibited
conduct including a street takeover, stunt driving, and operating a vehicle to film or record prohibited activities or to car ry
fuel for other vehicles involved in prohibited activities. The bill defines the terms “burnout,” “doughnut,” “drifting,” “motor
vehicle,” “street takeover,” “stunt driving,” and “wheelie.” The bill also amends the current definition of “spectator” to
include a person who is knowingly present at and views a street takeover and provides that evidence of filming or
recording such an event or posting the event on social media are factors to be considered in determining whether a
person qualifies as a spectator. Under the bill, a person commits a noncriminal traffic infraction if he or she is found to be
a spectator at a race or street takeover.

The bill amends the first degree misdemeanor crimes under s. 316.191(2), F.S., to add drag race, street takeover, and
stunt driving to each type of prohibited conduct. The bill also adds street takeovers and stunt driving to the list of violatio ns
which require an offender to pay a $65 penalty.

Under the bill, if an officer has probable cause to believe that a person has c ommitted a violation relating to a street
takeover or stunt driving, the officer may arrest the person without a warrant.

The bill also increases the penalty for using certain lights on vehicles and vessels from a noncriminal traffic infraction to a
first degree misdemeanor or a third degree felony.

The bill may have a positive indeterminate fiscal impact on state and local government entities receiving funds from
violations related to street takeovers and stunt driving. The bill may have a positive indet erminate impact on prison and jail
beds by prohibiting additional conduct punishable as a misdemeanor or felony offense.

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: h0399b.TIE
DATE: 2/11/2022
                                                            FULL ANALYSIS

                                                    I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Present Situation

         Street-racing involves cars, motorcycles, and other motor vehicles engaging in prearranged or
         spontaneous competitions on roadways. The practice endangers participants, bystanders, and
         property. In addition to street-racing, another dangerous activity, which has recently grown in popularity
         across the country, is known as a “street takeover.”1 Street takeovers occur when large numbers,
         sometimes hundreds, of cars and occupants gather at a predetermined site, typically a large
         intersection. Vehicles are then parked in a manner which blocks the intersection to make a space for
         other cars to perform donuts, drifting, burn-outs and other dangerous vehicular maneuvers.2 Due to the
         large size of these gatherings, law enforcement may experience difficultly responding to and controlling
         these events because of the time it takes to assemble appropriate law enforcement resources to
         address the crowd. Typically, by the time law enforcement presence is detected, the vehicles
         participating in the street takeover flee the location, along with the many bystanders that came to watch
         the cars.3

         Recently, the Dallas Police Department’s speeding and racing task force (task force) made a concerted
         local effort to crack down on street takeovers and other illegal events. As of September 2021, the task
         force has arrested 944 people associated with street takeovers. 4 Because street takeovers are a
         relatively new phenomenon, specific data related to accidents, injuries, and deaths resulting from these
         events in Florida is not readily available. However, there are accounts of these events happening
         throughout the state. In Jacksonville, street takeover participants have acknowledged that their meet-
         ups have anywhere from 300 to thousands of people in attendance, 5 and residents nearby indicate that
         these events are dangerous and often continue until well past midnight. 6

         Racing Offenses

         Under Florida law, a “race” may be prearranged or occur spontaneously, consists of a challenge and
         acceptance or competitive response to the challenge, 7 and involves one or more motor vehicles in
         competition to demonstrate the superiority of a vehicle or driver by:
             Attempting to outgain or outdistance another motor vehicle;
             Preventing another motor vehicle from passing;
             Arriving at a given destination before another motor vehicle; or
             Testing the physical stamina or endurance of drivers over a long-distance.8

         A “drag race” is a specific type of race involving:

1 Erin Myers, Car that crashed into Van Nuys b uilding, killing 1, was b eing followed b y police after doing donuts in street takeover ,

October 25, 2021, ktla.com, https://ktla.com/news/local-news/car-that-crashed-into-van-nuys-building-killing-1-was-being-followed-by-
police-after-doing-donuts-in-street-takeover/ (last visited Feb. 3, 2022).
2 Elizabeth Fuller, What’s a Street “Takeover” and Why Should You Be Concerned?, Larchmont Buzz (Sept. 21, 2020),

https://www.larchmontbuzz.com/featured-stories-larchmont-village/whats-a-street-takeover-and-why-you-should-be-concerned/ (last
visited Feb. 3, 2022).
3
  Thom Taylor, Street Takeovers Are Turning More Deadly, MotorBiscuit (Nov. 15, 2021), https://www.motorbiscuit.com/street-
takeovers-turning-more-deadly/ (last visited Feb. 3, 2022).
4 Michael Lozano, Illegal Dallas 'street takeovers' feeling pinch from Dallas PD , October 2, 2021, spectrumlocalnews.com,

https://spectrumlocalnews.com/tx/dallas -fort-worth/news/2021/09/30/dallas-illegal--street-takeovers--feeling-pinch-from-dallas-pd- (last
visited Feb. 3, 2022).
5 Corley Peel, I-TEAM: Local car group speaks following street takeover complaints, News4Jax (Jan. 17, 2022),

https://www.news4jax.com/news/local/2022/01/16/local-car-group-speaks-following-street-takeover-complaints/ (last visited Feb. 3,
2022).
6 Scott Johnson, I-TEAM: Complaints continue over car groups driving erratically in vacant parking lo ts, News4Jax (Jan. 13, 2022),

https://www.news4jax.com/news/local/2022/01/13/i-team-complaints-continue-over-dangerous-driving-in-vacant-parking-lots/ (last
visited Feb. 3, 2021).
7 Id.
8 S. 316.191(1)(c), F.S.

STORAGE NAME: h0399b.TIE                                                                                                              PAGE: 2
DATE: 2/11/2022
                 Two9 or more motor vehicles driven side-by-side at accelerating speeds in a competitive
                  attempt to outdistance each other; or
                 One or more motor vehicles driven over a common selected course, from the same starting
                  point to the same ending point, for the purpose of comparing the relative speed or power of
                  acceleration of such motor vehicle or vehicles within a certain distance or time limit.10

         Florida law prohibits the following racing activities on any highway, roadway, or parking lot, unless
         sanctioned by the proper authorities:11
              Driving a motor vehicle, including a motorcycle, in a:
                    o Race;
                    o Speed competition or contest;
                    o Drag race;
                    o Test of physical endurance;
                    o Exhibition of speed or acceleration; or
                    o Exhibition for making a speed record;12
              Participating in, coordinating, facilitating, or collecting money at a race, competition, test, or
                 exhibition location;
              Knowingly riding as a passenger in a race, competition, test, or exhibition; or
              Purposefully stopping or slowing traffic movement for a race, competition, test, or exhibition. 13

        A racing violation is a first degree misdemeanor,14 punishable by up to one year in county jail.15
        Additionally, a court must impose the following penalties for a:
             Violation with no prior convictions in the preceding five years, a fine of $500 up to $1,000 and a
                one year driver license suspension.
             Second violation within five years of a prior violation resulting in a conviction, a fine of $1,000 up
                to $3,000 and a two year driver license suspension.
             Third or subsequent violation within five years of a prior violation resulting in a conviction, a fine
                of $2,000 up to $5,000 and a four year driver license suspension. 16

        In addition to the criminal penalties provided, a person who commits a racing violation must pay a $65
        penalty. Monies collected pursuant to this additional penalty are remitted to the Department of Revenue
        for deposit into the Emergency Medical Services Trust Fund of the Department of Health to be used to
        ensure the availability and accessibility of trauma services throughout the state as provided in s.
        316.192, F.S.

        Section 316.191, F.S., also prohibits a person from being a spectator at a drag race. To be considered
        a spectator, a person must be knowingly present at and view a drag race, when his or her presence is
        the result of an affirmative choice to attend or participate in the race. In determining whether or not an
        individual is a spectator, the following factors must be considered: the relationship between the racer
        and the individual; evidence of gambling or betting on the outcome of the race; and any other factor that
        tends to show knowing attendance or participation. Being a spectator at a drag race is a noncriminal
        traffic infraction, punishable as a moving violation as provided in ch. 318, F.S. 17 However, current law
        does not similarly punish being a spectator at a regular race.
        Warrantless Arrest

        A judge may issue a warrant authorizing a person’s arrest for a felony or misdemeanor crime upon
        finding probable cause that the person committed a crime in the judge’s jurisdiction. 18 However, the

9 Drag racing most commonly involves two motor vehicles operating side -by-side. National Hot Rod Association, Basics of Drag Racing,

http://www.nhra.com/nhra101/basics.aspx (last visited Feb. 1 2022).
10 S. 316.191(1)(b), F.S.
11 S. 316.191(7), F.S.
12 S. 316.191(2), F.S.
13 Id.
14 Id.
15 S. 775.082, F.S.
16 S. 316.191(3), F.S.
17 S. 316.191(4), F.S.
18 S. 901.02, F.S.

STORAGE NAME: h0399b.TIE                                                                                                    PAGE: 3
DATE: 2/11/2022
            United States Supreme Court has held that the Fourth Amendment to the United States Constitution
            does not forbid warrantless arrest, even for a misdemeanor offense.19
            In Florida, a law enforcement officer may arrest a person without a warrant under certain statutorily
            enumerated circumstances,20 such as when:
                 An officer reasonably believes a person committed a felony;
                 There is probable cause to believe a person has committed certain enumerated misdemeanor
                     offenses,21 including a racing violation under s. 316.191(2), F.S.; or
                 A person commits a misdemeanor in an officer’s presence.
                         o In this circumstance, the officer must arrest the person immediately or in fresh pursuit
                            after observing the offense.

            Prohibited Use of Certain Lights

            Flashing Lights on Vehicles

            Section 316.2397, F.S., prohibits flashing lights on vehicles except under specified circumstances,
            including:
                 As a means of indicating a right or left turn, to change lanes, or to indicate that the vehicle is
                    lawfully stopped or disabled upon the highway;
                 When a motorist intermittently flashes his or her vehicle’s headlamps at an oncoming vehicle
                    notwithstanding the motorist’s intent for doing so;
                 During periods of extreme low visibility on roadways with a posted speed limit of 55 miles per
                    hour or more; and
                 For certain lamps authorized in statute, which may flash, including various types of emergency
                    vehicles.22

            A violation of s. 316.2397, F.S., is currently a noncriminal traffic infraction, punishable as a nonmoving
            violation.23

            Prohibited Use of Blue Lights on Vehicles and Vessels

            Section 843.081, F.S., provides legislative intent indicating that Florida citizens are vulnerable to
            becoming the victims of criminal acts through the illegal use of blue lights by the criminal elements , and
            that the Legislature intends to reduce this vulnerability to injury and loss of life and property by
            prohibiting the use of certain blue lights by any person other than an authorized law enforcement
            officer.

            Under s. 843.081, F.S., a person commits a first degree misdemeanor if he or she uses any flashing or
            rotating blue lights 24 in or on any non-governmentally owned vehicle or vessel, unless he or she is a law
            enforcement officer employed by a federal, state, county, or city law enforcement agency, or is
            appointed as a special officer by the Governor under ch. 354, F.S. 25

            False Personation

            Section 843.08, F.S., prohibits the false personation of any of the following law enforcement officers or
            other specified persons:
                 A firefighter;

19 Atwater v. City of Lago Vista, 532 U.S. 318 (2001).
20
     S. 901.15, F.S.
21 S. 901.15, F.S., includes other misdemeanor offenses such as battery, criminal mischief or graffiti, an act of domestic violence, an

injunction violation, or sexual cyberharassment in the list of offenses where a warrantless arrest is authorized.
22 S. 316.2397(7), F.S.
23 S. 316.2397(10), F.S.
24 “Flashing or rotating blue light” includes all forms of lights which display a blue light source or whic h were designed with the intent of

displaying a blue light source whether or not such light is actually in use. S. 843.081(4), F.S.
25 A salesperson, service representative, or other employee of a businesses licensed to sell or repair law enforcement equipm ent is

exempt from criminal liability. S. 843.081(3), F.S.
STORAGE NAME: h0399b.TIE                                                                                                               PAGE: 4
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                 Sheriff;
                 Officer of the Florida Highway Patrol;
                 Officer of the Fish and Wildlife Conservation Commission;
                 Fire or arson investigator of the Department of Financial Services;
                 Officer of the Department of Financial Services;
                 Officer of the Department of Corrections;
                 Correctional probation officer;
                 Deputy sheriff;
                 State attorney or assistant state attorney;
                 Statewide prosecutor or assistant statewide prosecutor;
                 State attorney investigator;
                 Coroner;
                 Police officer;
                 Lottery special agent or lottery investigator;
                 Beverage enforcement agent;
                 Watchman (a security officer licensed under ch. 493, F.S.);
                 Any member of the Florida Commission on Offender Review and any administrative aide or
                  supervisor employed by the commission;
                 Any personnel or representative of the FDLE; or
                 A federal law enforcement officer as defined in s. 901.1505, F.S.

         A person commits the offense of false personation if he or she falsely assumes or pretends to be any
         person specified in s. 843.08, F.S., and takes it upon himself or herself to act as such person, or
         requires any other person to aid or assist him or her in a matter pertaining to the duty of any such
         specified person.

         False personation is generally a third degree felony.26 However, false personation becomes a second
         degree felony27 if committed during the course of committing another felony offense, unless the offense
         results in the death or personal injury of another human being, in which case the offense of false
         personation is a first degree felony.28, 29

         Effect of Proposed Changes

         CS/HB 399 amends s. 316.191, F.S., to provide the following definitions:
          "Burnout" means a maneuver performed while operating a motor vehicle whereby the motor vehicle
            is kept stationary, or is in motion, while the wheels are spun, resulting in friction which causes the
            motor vehicle's tires to heat up and emit smoke.
          "Doughnut" means a maneuver performed while operating a motor vehicle whereby the front or rear
            of the motor vehicle is rotated around the opposite set of wheels in a continuous motion, resulting in
            friction which may cause a circular skid-mark pattern of rubber on the driving surface, may cause
            the motor vehicle's tires to heat up and emit smoke, or both.
          "Drifting" means a maneuver performed while operating a motor vehicle whereby the motor vehicle
            is steered so that it makes a controlled skid sideways through a turn with the front wheels pointed in
            a direction opposite to that of the turn.
          "Street takeover" means the use of one or more motor vehicles to block or impede the regular flow
            of traffic on any portion of a highway, roadway, or parking lot for the purpose of performing any
            burnout, doughnut, drifting, wheelie, or other stunt driving.
          "Stunt driving" means the use of a motor vehicle to perform or engage in any burnout, doughnut,
            drifting, wheelie, or other dangerous driving maneuver on a highway, roadway, or parking lot which
            is likely to delay, distract, startle, or interfere with other users of the highway, roadway, or parking
            lot.

26 A third degree felony is punishable by up to five years in prison and a fine of up to $5,000. Ss. 775.082 and 775.083, F.S.
27 A second degree felony is punishable by up to 15 years in prison and a fine of up to $10,000. S s. 775.082 and 775.083, F.S.
28 A first degree felony is punishable by up to 30 years in prison and a fine of up to $10,000. S s. 775.082 and 775.083, F.S.
29 False personation under s. 843.08, F.S., is ranked as a level 2 offense on the Criminal Punishment Code offense severity ranking

chart. S. 921.0022(3)(b), F.S.
STORAGE NAME: h0399b.TIE                                                                                                          PAGE: 5
DATE: 2/11/2022
            "Wheelie" means a maneuver performed while operating a motor vehicle whereby a motor vehicle is
             ridden for a distance with the front wheel or wheels raised off the driving surface.

         The bill amends the first degree misdemeanor crimes under s. 316.191(2), F.S., to add drag race,
         street takeover, and stunt driving to each type of prohibited conduct. Additionally, under the bill a
         person commits a first degree misdemeanor offense if he or she:
              Purposely interrupts the movement of pedestrian traffic for any such prohibited event; or
              Operates a motor vehicle for the purpose of:
                     o Filming or recording the activities of participants in any race, drag race, street takeover,
                        stunt driving, competition, contest, test, or exhibition; or
                     o Carrying any amount of fuel intended to be used for fueling a motor vehicle involved in
                        any race, drag race, street takeover, stunt driving, competition, contest, test, or
                        exhibition.

         The bill amends the current definition of “spectator” to include a person who is knowingly present at and
         views a street takeover and provides that evidence of filming or recording such an event or posting the
         event on social media are factors to be considered in determining whether a person qualifies as a
         spectator. The bill also amends the noncriminal traffic infraction for being a spectator at a drag race to
         include a prohibition on being a spectator at a race or street takeover.

         The bill adds street takeovers and stunt driving to the list of violations requiring an offender to pay a $65
         penalty in addition to any other penalty, which is remitted to the Department of Revenue for deposit into
         the Emergency Medical Services Trust Fund of the Department of Health.

         Under the bill, if an officer has probable cause to believe that a person has committed a violation
         relating to a street takeover or stunt driving, the officer may arrest the person without a warrant. An
         officer may already arrest a person without a warrant for current racing offenses.

         The bill increases the penalty for using flashing lights or other lights on a vehicle in violation of s.
         316.2397, F.S., from a noncriminal traffic infraction to a first degree misdemeanor. The bill also amends
         the crime of false personation to provide that a person who takes upon himself or herself to act as an
         officer or person listed in s. 843.08, F.S., including by using prohibited flashing lights in violation of s.
         316.2397, F.S., or prohibited blue lights in violation of s. 843.081, F.S., commits an offense, which is
         punishable as a third degree felony.30

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

    B. SECTION DIRECTORY:
         Section 1: Amends s. 316.191, F.S., relating to racing on highways.

         Section 2: Amends s. 316.2397, F.S., relating to certain lights prohibited; exceptions.

         Section 3: Amends s. 318.18, F.S., relating to amount of penalties.

         Section 4: Reenacts s. 316.027, F.S., relating to crash involving death or personal injuries.

         Section 5: Reenacts s. 322.0261, F.S., relating to driver improvement course; requirement to maintain
                    driving privileges; failure to complete; department approval of course.

         Section 6: Reenacts s. 901.15, F.S., relating to when arrest by officer without warrant is lawful.

         Section 7: Amends s. 843.08, F.S., relating to false personation.

         Section 8: Provides an effective date of July 1, 2022.

30 Or may be punishable as a: second degree felony if committed during the course of committing anoth er felony offense; or as a first

degree felony if the offense results in the death or personal injury of another human being. S. 843.08, F.S.
STORAGE NAME: h0399b.TIE                                                                                                        PAGE: 6
DATE: 2/11/2022
                           II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           The bill may have a positive indeterminate impact on state entities which receive fines and fees
           collected from the new conduct which, under the bill, is considered a misdemeanor crime related to
           street takeovers and stunt driving.

       2. Expenditures:
           The bill may have a positive indeterminate impact on prison beds by prohibiting additional conduct
           punishable as a felony offense.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           The bill may have a positive indeterminate impact on local government entities which may receive
           monies collected from the new conduct considered a noncriminal traffic infraction for being a
           spectator at a race or street takeover.

           The bill may have a positive indeterminate impact on The Emergency Medical Services Trust Fund
           of the Department of Health by adding street takeovers and stunt driving to the list of violations
           which require a $65 penalty, in addition to any other penalty, under s. 318.18(20), F.S.

       2. Expenditures:
           The bill may have a positive indeterminate impact on the number of jail beds by creating new
           conduct punishable as a misdemeanor crime relating to racing, street takeovers, and stunt driving.

   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. The bill does not appear to affect county or municipal governments.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
       action requiring the expenditures 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.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.

STORAGE NAME: h0399b.TIE                                                                                  PAGE: 7
DATE: 2/11/2022
                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   On February 3, 2022, the Criminal Justice & Public Safety Subcommittee adopted an amendment and
   reported the bill favorably as a committee substitute. The amendment:
       Provided definitions for the terms “burnout,” “doughnut,” “drifting,” “motor vehicle,” “stunt driving,”
          and “wheelie.”
       Replaced the term “takeover ride” with the term “street takeover” and amended the definition of the
          term.
       Made other technical, clarifying, and conforming changes.

       This analysis is drafted to the committee substitute as passed by the Criminal Justice & Public Safety
       Subcommittee.




STORAGE NAME: h0399b.TIE                                                                                 PAGE: 8
DATE: 2/11/2022
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           CS/HB 399                                                                                            2022




    1                                         A bill to be entitled
    2              An act relating to motor vehicle and vessel law
    3              enforcement; reenacting and amending s. 316.191, F.S.;
    4              revising and providing definitions; prohibiting a
    5              person from driving any motor vehicle in any street
    6              takeover, stunt driving, race, speed competition or
    7              contest, drag race or acceleration contest, test of
    8              physical endurance, or exhibition of speed or
    9              acceleration on any highway, roadway, or parking lot;
10                 prohibiting a person from participating in or
11                 coordinating via social media any such race, drag
12                 race, street takeover, stunt driving, competition,
13                 contest, test, or exhibition; prohibiting a person
14                 from knowingly riding as a passenger in any such race,
15                 drag race, street takeover, stunt driving,
16                 competition, contest, test, or exhibition; prohibiting
17                 a person from purposefully causing the movement of
18                 traffic, including pedestrian traffic, to slow, stop,
19                 or be impeded in any way for such race, drag race,
20                 street takeover, stunt driving, competition, contest,
21                 test, or exhibition; prohibiting a person from
22                 operating a motor vehicle for the purpose of filming
23                 or recording activities of participants in any such
24                 race, drag race, street takeover, stunt driving,
25                 competition, contest, test, or exhibition; providing

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        CS/HB 399                                                                                            2022




26              an exception; prohibiting a person from operating a
27              motor vehicle carrying any amount of fuel for the
28              purposes of fueling a motor vehicle involved in any
29              such race, drag race, street takeover, stunt driving,
30              competition, contest, test, or exhibition; providing
31              penalties; prohibiting a person from being a specta tor
32              at any such race, drag race, or street takeover;
33              providing penalties; amending s. 316.2397, F.S.;
34              providing criminal penalties for unlawful use of
35              certain lights; amending s. 318.18, F.S.; conforming
36              provisions to changes made by the act; reenacting ss.
37              316.027(2)(c) and 322.0261(4)(a) and (b), F.S.,
38              relating to a crash involving death or personal
39              injuries and driver improvement courses, respectively,
40              to incorporate the amendment made to s. 316.191, F.S.,
41              in references thereto; amending s. 901.15, F.S.;
42              conforming provisions to changes made by the act;
43              amending s. 843.08, F.S.; including the unlawful use
44              of certain lights in the commission of the offense of
45              false personation; providing penalties; providing an
46              effective date.
47
48      Be It Enacted by the Legislature of the State of Florida:
49
50              Section 1.         Section 316.191, Florida Statutes, is reenacted

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        CS/HB 399                                                                                            2022




51      and amended to read:
52              316.191        Racing on highways, street takeovers, and stunt
53      driving.—
54              (1)         As used in this section, the term:
55              (a)         "Burnout" means a maneuver performed while operating a
56      motor vehicle whereby the motor vehicle is kept stationary, or
57      is in motion, while the wheels are spun, resulting in friction
58      which causes the motor vehicle's tires to heat up and emit
59      smoke.
60              (b)(a)        "Conviction" means a determination of guilt that is
61      the result of a plea or trial, regardless of whether
62      adjudication is withheld.
63              (c)         "Doughnut" means a maneuver performed while operating
64      a motor vehicle whereby the front or rear of the motor vehicle
65      is rotated around the opposite set of wheels in a continuous
66      motion which may cause a circular skid-mark pattern of rubber on
67      the driving surface or the tires to heat up and emit smoke from
68      friction, or both.
69              (d)(b)        "Drag race" means the operation of two or more
70      motor vehicles from a point side by side at accelerating speeds
71      in a competitive attempt to outdistance each other, or the
72      operation of one or more motor vehicles over a common selected
73      course, from the same point to the same point, for the purpose
74      of comparing the relative speeds or power of acceleration of
75      such motor vehicle or motor vehicles within a certain distance

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         CS/HB 399                                                                                            2022




 76      or time limit.
 77              (e)         "Drifting" means a maneuver performed while operating
 78      a motor vehicle whereby the motor vehicle is steered so that it
 79      makes a controlled skid sideways through a turn with the front
 80      wheels pointed in a direction opposite to that of the turn.
 81              (f)         "Motor vehicle" has the same meaning as in s. 316.003.
 82      The term "motor vehicle" also includes any motorcycle,
 83      autocycle, moped, all-terrain vehicle, off-road vehicle, or
 84      vehicle not licensed to operate on a highway or roadway.
 85              (g)(c)        "Race" means the use of one or more motor vehicles
 86      in competition, arising from a challenge to demonstrate
 87      superiority of a motor vehicle or driver and the accept ance or
 88      competitive response to that challenge, either through a prior
 89      arrangement or in immediate response, in which the competitor
 90      attempts to outgain or outdistance another motor vehicle, to
 91      prevent another motor vehicle from passing, to arrive at a given
 92      destination ahead of another motor vehicle or motor vehicles, or
 93      to test the physical stamina or endurance of drivers over long-
 94      distance driving routes. A race may be prearranged or may occur
 95      through a competitive response to conduct on the part of one or
 96      more drivers which, under the totality of the circumstances, can
 97      reasonably be interpreted as a challenge to race.
 98              (h)(d)        "Spectator" means any person who is knowingly
 99      present at and views a drag race or street takeover, when such
100      presence is the result of an affirmative choice to attend or

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         CS/HB 399                                                                                            2022




101      participate in the event race. For purposes of determining
102      whether or not an individual is a spectator, finders of fact
103      shall consider the relationship between the motor vehicle
104      operator racer and the individual, evidence of gambling or
105      betting on the outcome of the event race, filming or recording
106      the event, or posting the event on social media, and any other
107      factor that would tend to show knowing attendance or
108      participation.
109              (i)         "Street takeover" means the taking over of a portion
110      of a highway, roadway, or parking lot by blocking or impeding
111      the regular flow of traffic to perform a race, drag race,
112      burnout, doughnut, drifting, wheelie, or other stunt driving.
113              (j)         "Stunt driving" means to perform or engage in any
114      burnouts, doughnuts, drifting, wheelies, or other dangerous
115      motor vehicle activity on a highway, roadway, or parking lot
116      which is likely to delay, distract, startle, or interfere with
117      other users of the highway, roadway, or parking lot.
118              (k)         "Wheelie" means a maneuver performed while operating a
119      motor vehicle whereby a motor vehicle is ridden for a distance
120      with the front wheel or wheels raised off the ground.
121              (2)         A person may not:
122              (a)         Drive any motor vehicle, including any motorcycle, in
123      any street takeover, stunt driving, race, speed competition or
124      contest, drag race or acceleration contest, test of physical
125      endurance, or exhibition of speed or acceleration or for the

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         CS/HB 399                                                                                            2022




126      purpose of making a speed record on any highway, roadway, or
127      parking lot;
128              (b)         In any manner participate in, coordinate through
129      social media or otherwise, facilitate, or collect moneys at any
130      location for any such race, drag race, street takeover, stunt
131      driving, competition, contest, test, or exhibition;
132              (c)         Knowingly ride as a passenger in any such race, drag
133      race, street takeover, stunt driving, competition, contest,
134      test, or exhibition; or
135              (d)         Purposefully cause the movement of traffic, including
136      pedestrian traffic, to slow, or stop, or be impeded in any way
137      for any such race, drag race, street takeover, stunt driving,
138      competition, contest, test, or exhibition;
139              (e)         Operate a motor vehicle for the purpose of filming or
140      recording the activities of participants in any such race, drag
141      race, street takeover, stunt driving, competition, contest,
142      test, or exhibition. This paragraph does not apply to bona fide
143      members of the news media; or
144              (f)         Operate a motor vehicle carrying any amount of fuel
145      for the purposes of fueling a motor vehicle involved in any such
146      race, drag race, street takeover, stunt driving, competition,
147      contest, test, or exhibition.
148              (3)(a)        Any person who violates subsection (2) commits a
149      misdemeanor of the first degree, punishable as provided in s.
150      775.082 or s. 775.083. Any person who violates subsection (2)

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         CS/HB 399                                                                                            2022




151      shall pay a fine of not less than $500 and not more than $1,000,
152      and the department shall revoke the driver license of a person
153      so convicted for 1 year. A hearing may be requested pursuant to
154      s. 322.271.
155              (b)         Any person who commits a second violation of
156      subsection (2) within 5 years after the date of a prior
157      violation that resulted in a conviction for a violation of
158      subsection (2) commits a misdemeanor of the first degree,
159      punishable as provided in s. 775.082 or s. 775.083, and shall
160      pay a fine of not less than $1,000 and not more than $3,000. The
161      department shall also revoke the driver license of that person
162      for 2 years. A hearing may be requested pursuant to s. 322.271.
163              (c)         Any person who commits a third or subsequent violation
164      of subsection (2) within 5 years after the date of a prior
165      violation that resulted in a conviction for a violation of
166      subsection (2) commits a misdemeanor of the first degree,
167      punishable as provided in s. 775.082 or s. 775.083, and shall
168      pay a fine of not less than $2,000 and not more than $5,000. The
169      department shall also revoke the driver license of that person
170      for 4 years. A hearing may be requested pursuant to s. 322.271.
171              (d)         In any case charging a violation of subsection (2),
172      the court shall be provided a copy of the driving record of the
173      person charged and may obtain any records from any other source
174      to determine if one or more prior convictions of the person for
175      a violation of subsection (2) have occurred within 5 years

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         CS/HB 399                                                                                            2022




176      before prior to the charged offense.
177              (4)(a)        A person may not be a spectator at any race, drag
178      race, or street takeover prohibited under subsection (2).
179              (b)         A person who violates paragraph (a) commits a
180      noncriminal traffic infraction, punishable as a moving violation
181      as provided in chapter 318.
182              (5)         Whenever a law enforcement officer has probable cause
183      to believe that a person violated subsection (2), the officer
184      may arrest and take such person into custody without a warrant.
185      The court may enter an order of impoundment or immobilization as
186      a condition of incarceration or probation. Within 7 business
187      days after the date the court issues the order of impoundment or
188      immobilization, the clerk of the court must send notice by
189      certified mail, return receipt requested, to the registered
190      owner of the motor vehicle, if the registered owner is a person
191      other than the defendant, and to each person of record claiming
192      a lien against the motor vehicle.
193              (a)         Notwithstanding any provision of law to the contrary,
194      the impounding agency shall release a motor vehicle under the
195      conditions provided in s. 316.193(6)(e), (f), (g), and (h), if
196      the owner or agent presents a valid driver license at the time
197      of pickup of the motor vehicle.
198              (b)         All costs and fees for the impoundment or
199      immobilization, including the cost of notification, must be paid
200      by the owner of the motor vehicle or, if the motor vehicle is

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         CS/HB 399                                                                                            2022




201      leased or rented, by the person leasing or renting the motor
202      vehicle, unless the impoundment or immobilization order is
203      dismissed. All provisions of s. 713.78 shall apply.
204              (c)         Any motor vehicle used in violation of subsection (2)
205      may be impounded for a period of 30 business days if a law
206      enforcement officer has arrested and taken a person into custody
207      pursuant to this subsection and the person being arrested is the
208      registered owner or co-owner of the motor vehicle. If the
209      arresting officer finds that the criteria of this paragraph are
210      met, the officer may immediately impound the motor vehicle. The
211      law enforcement officer shall notify the Department of Highway
212      Safety and Motor Vehicles of any impoundment for violation of
213      this subsection in accordance with procedures established by the
214      department. Paragraphs (a) and (b) shall be applicable to such
215      impoundment.
216              (6)         Any motor vehicle used in violation of subsection (2)
217      by any person within 5 years after the date of a prior
218      conviction of that person for a violation under subsection (2)
219      may be seized and forfeited as provided by the Florida
220      Contraband Forfeiture Act. This subsection shall only be
221      applicable if the owner of the motor vehicle is the person
222      charged with violating subsection (2).
223              (7)         This section does not apply to licensed or duly
224      authorized racetracks, drag strips, or other designated areas
225      set aside by proper authorities for such purposes.

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         CS/HB 399                                                                                            2022




226              Section 2.         Subsection (10) of section 316.2397, Florida
227      Statutes, is amended to read:
228              316.2397          Certain lights prohibited; exceptions.—
229              (10)        A person who violates violation of this section
230      commits a misdemeanor of the first degree is a noncriminal
231      traffic infraction, punishable as a nonmoving violation as
232      provided in s. 775.082 or s. 775.083 chapter 318.
233              Section 3.         Subsection (20) of section 318.18, Florida
234      Statutes, is amended to read:
235              318.18       Amount of penalties.—The penalties required for a
236      noncriminal disposition pursuant to s. 318.14 or a criminal
237      offense listed in s. 318.17 are as follows:
238              (20)        In addition to any other penalty, $65 for a violation
239      of s. 316.191, prohibiting racing on highways, street takeovers,
240      and stunt driving, or s. 316.192, prohibiting reckless driving.
241      The additional $65 collected under this subsection shall be
242      remitted to the Department of Revenue for deposit into the
243      Emergency Medical Services Trust Fund of the Department of
244      Health to be used as provided in s. 395.4036.
245              Section 4.         For the purpose of incorporating the amendment
246      made by this act to section 316.191, Florida Statutes, in a
247      reference thereto, paragraph (c) of subsection (2) of section
248      316.027, Florida Statutes, is reenacted to read:
249              316.027        Crash involving death or personal injuries.—
250              (2)

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         CS/HB 399                                                                                            2022




251              (c)         The driver of a vehicle involved in a crash occurring
252      on public or private property which results in the death of a
253      person shall immediately stop the vehicle at the scene of the
254      crash, or as close thereto as possible, and shall remain at the
255      scene of the crash until he or she has fulfilled the
256      requirements of s. 316.062. A person who is arrested for a
257      violation of this paragraph and who has previously been
258      convicted of a violation of this section, s. 316.061, s.
259      316.191, or s. 316.193, or a felony violation of s. 322.34,
260      shall be held in custody until brought before the court for
261      admittance to bail in accordance with chapter 903. A person who
262      willfully violates this paragraph commits a felony of the first
263      degree, punishable as provided in s. 775.082, s. 775.083, or s.
264      775.084, and shall be sentenced to a mandatory minimum term of
265      imprisonment of 4 years. A person who willfully commits such a
266      violation while driving under the influence as set forth in s.
267      316.193(1) shall be sentenced to a mandatory minimum term of
268      imprisonment of 4 years.
269              Section 5.          For the purpose of incorporating the amendment
270      made by this act to section 316.191, Florida Statutes, in
271      references thereto, paragraphs (a) and (b) of subsection (4) of
272      section 322.0261, Florida Statutes, are reenacted to read:
273              322.0261           Driver improvement course; requirement to
274      maintain driving privileges; failure to complete; department
275      approval of course.—

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         CS/HB 399                                                                                            2022




276              (4)(a)        The department shall identify any operator
277      convicted of, or who pleaded nolo contendere to, a violation of
278      s. 316.074(1), s. 316.075(1)(c)1., s. 316.172, s. 316.191, or s.
279      316.192 and shall require that operator, in addition to other
280      applicable penalties, to attend a department-approved driver
281      improvement course in order to maintain driving privileges. The
282      department shall, within 10 days after receiving a notice of
283      judicial disposition, send notice to the operator of the
284      requirement to attend a driver improvement course. If the
285      operator fails to complete the course within 90 days after
286      receiving notice from the department, the operator's driver
287      license shall be canceled by the department until the course is
288      successfully completed.
289              (b)         Any operator who receives a traffic citation for a
290      violation of s. 316.074(1), s. 316.075(1)(c)1., s. 316.191, or
291      s. 316.192, for which the court withholds adjudication, is not
292      required to attend a driver improvement course, unless the court
293      finds that the nature or severity of the violation is such that
294      attendance to a driver improvement course is necessary. The
295      department shall, within 10 days after receiving a notice of
296      judicial disposition, send notice to the operator of the
297      requirement to attend a driver improvement course. If the
298      operator fails to complete the course within 90 days after
299      receiving notice from the department, the operator's driver
300      license shall be canceled by the department until the course is

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         CS/HB 399                                                                                            2022




301      successfully completed.
302              Section 6.         Paragraph (d) of subsection (9) of section
303      901.15, Florida Statutes, is amended to read:
304              901.15        When arrest by officer without warrant is lawful.—A
305      law enforcement officer may arrest a person without a warrant
306      when:
307              (9)         There is probable cause to believe that the person has
308      committed:
309              (d)         A racing, street takeover, or stunt driving violation
310      as described in s. 316.191(2).
311              Section 7.         Section 843.08, Florida Statutes, is amended to
312      read:
313              843.08        False personation.—A person who falsely assumes or
314      pretends to be a firefighter, a sheriff, an officer of the
315      Florida Highway Patrol, an officer of the Fish and Wildlife
316      Conservation Commission, an officer of the Department of
317      Environmental Protection, an officer of the Department of
318      Financial Services, any personnel or representative of the
319      Division of Investigative and Forensic Services, an officer of
320      the Department of Corrections, a correctional probation officer,
321      a deputy sheriff, a state attorney or an assistant state
322      attorney, a statewide prosecutor or an assistant statewide
323      prosecutor, a state attorney investigator, a coroner, a police
324      officer, a lottery special agent or lottery investigator, a
325      beverage enforcement agent, a school guardian as described in s.

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         CS/HB 399                                                                                            2022




326      30.15(1)(k), a security officer licensed under chapter 493, any
327      member of the Florida Commission on Offender Review or any
328      administrative aide or supervisor employed by the commission,
329      any personnel or representative of the Department of Law
330      Enforcement, or a federal law enforcement officer as defined in
331      s. 901.1505, and takes upon himself or herself to act as such,
332      including by using lights in violation of s. 316.2397 or s.
333      843.081, or to require any other person to aid or assist him or
334      her in a matter pertaining to the duty of any such officer,
335      commits a felony of the third degree, punishable as provided in
336      s. 775.082, s. 775.083, or s. 775.084. However, a person who
337      falsely personates any such officer during the course of the
338      commission of a felony commits a felony of the second degree,
339      punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
340      If the commission of the felony results in the death or personal
341      injury of another human being, the person commits a felony of
342      the first degree, punishable as provided in s. 775.082, s.
343      775.083, or s. 775.084.
344              Section 8.         This act shall take effect July 1, 2022.




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      TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                      CS/HB 399 by Rep. Rodriguez
                Motor Vehicle and Vessel Law Enforcement

                             AMENDMENT SUMMARY
                               February 15, 2022


Amendment 1 by Rep. Drake (Line 116):

  •   Prohibits stunt driving if it takes place as part of a street takeover.
                                            COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                  Bill No. CS/HB 399   (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 Drake offered the following:
 4
 5          Amendment (with title amendment)
 6          Remove lines 116-117 and insert:
 7     as part of a street takeover.
 8
 9             -----------------------------------------------------
10                          T I T L E    A M E N D M E N T
11          Remove line 6 and insert:
12     takeover, stunt driving performed as part of a street takeover,
13     racing, speed competition or




     231813 - h0399-line 116.docx
      Published On: 2/14/2022 6:56:00 PM
                                    Page 1 of 1
HB 1031
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 1031 Transportation Research
SPONSOR(S): Andrade
TIED BILLS:       IDEN./SIM. BILLS: SB 1160

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                                    Johnson            Keating

  2) Higher Education Appropriations Subcommittee

  3) Commerce Committee


                                             SUMMARY ANALYSIS
The University of Florida (UF), the Florida Department of Transportation (DOT), and the City of Gainesville
have partnered to create the Implementing Solutions from Transportation Research and Evaluation of
Emerging Technologies (I-STREET) Living Lab. I-STREET’s principal objective is to make significant
improvements to transportation safety and mobility, utilizing a real-world testbed environment that has been
created on and surrounding the UF campus and the expanding set of diverse technology installed on Florida
segments of the Interstate Highway System.

The bill codifies the I-STREET Living Lab within UF and provides for its duties relating to transportation
research, education, workforce development, and related issues. The bill requires I-STREET, by July 1, 2023,
and annually thereafter, to provide to the Governor, the President of the Senate, and the Speaker of the House
of Representatives a report outlining its goals, as well as its efforts and progress on reaching those goals.

The bill also creates a nine-member advisory board to periodically review and advise I-STREET concerning its
research program.

The bill does not provide funding for any costs associated with participation in I-STREET. Such costs are
indeterminate and are expected to be absorbed within the existing resources of UF, DOT, and other
participants.

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: h1031.TIE
DATE: 2/11/2022
                                                             FULL ANALYSIS

                                                     I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Current Situation

         Various centers, institutes, and special programs within the State University System are codified in
         Florida Statutes, including the Florida Industrial and Phosphate Research Institute at Florida
         Polytechnic University,1 the H. Lee Moffitt Cancer Center and Research Institute at the University of
         South Florida,2 the Louis de la Parte Florida Mental Health Institute at the University of South Florida,3
         the Florida Institute for Child Welfare at Florida State University,4 and the Center for Urban
         Transportation Research at the University of South Florida. 5

         The University of Florida (UF) College of Engineering’s Transportation Institute aims to advance
         transportation, disseminate research results, and provide educational opportunities related to
         transportation. The institute is an umbrella organization housing several transportation-related centers.6

         UF’s Transportation Institute, the Department of Transportation (DOT), and the City of Gainesville have
         partnered to create the Implementing Solutions from Transportation Research and Evaluation of
         Emerging Technologies (I-STREET) Living Lab. I-STREET’s principal objective is to make significant
         improvements to transportation safety and mobility, utilizing a real-world testbed environment that has
         been created on and surrounding the UF campus and the expanding set of diverse technology installed
         on Florida segments of the Interstate Highway System.7 I-STREET has received funding from the
         National Science Foundation and through research conducted as part of the United States Department
         of Transportation’s University Transportation Centers Program. 8

         I-STREET’s mission and main goals are to:
              Facilitate the development and implementation of advanced and emerging technologies to
               improve safety and mobility that are suitable for implementation statewide and beyond;
              Foster collaboration with industry wishing to develop, test, and implement their own
               technologies to improve safety, and mobility; and
              Become a recognized national and global leader in the development and implementation of
               advanced technologies to improve transportation safety and mobility. 9

         I-STREET projects include:
              I-75 Florida Regional Advanced Mobility Elements;
              Pedestrian and Bicycle Safety Demonstration;
              Gainesville Autonomous Shuttle Evaluation; and
              Transportation Mobility Assessment and Recommendations for Smart City Planning. 10

         DOT has issued an invitation to transportation industry leaders for participation in the “UF I-STREET
         program.” According to DOT:

              I-STREET is designed to assist in implementing emerging technologies aimed at safety and
              mobility improvements. DOT will develop requests for proposals utilizing the emerging
1 S. 1004.346, F.S.
2 S. 1004.43, F.S.
3 S. 1004.44, F.S.
4 S. 1004.615, F.S.
5 S. 334.065(1), F.S.
6 University of Florida (UF) Transportation Institute, Overview, https://www.transportation.institute.ufl.edu/overview/ (last visited Jan 13,

2022).
7 UF, I-Street Living Lab , https://www.transportation.institute.ufl.edu/i-street-living-lab/ (last visited Feb, 11, 2022).
8 House of Representatives, Appropriations Project Request – Fiscal Year 2022-2023 HB 4285 (2022) p. 5.
9 UF, supra note 7.
10 UF Transportation Institute, Projects, https://www.transportation.institute.ufl.edu/i-street-living-lab/projects/ (last visited Jan. 13,

2022).
STORAGE NAME: h1031.TIE                                                                                                                  PAGE: 2
DATE: 2/11/2022
              technologies and will select vendors through a competitive bidding process. The selected
              vendor for each project will deploy technology solutions. UF will conduct before-and-after
              evaluations of implemented projects. After evaluation, DOT will consider whether to expand the
              successful I-STREET projects elsewhere in the state.

              DOT has allocated funding for these innovative projects per fiscal year (FY) from FY 2020-2021
              until FY 2024-2025. Each FY, DOT will fund multiple projects based on the projects' merits and
              safety and mobility improvement potential. The number of awards will vary depending on the
              project type and scope.11

         Effect of the Bill

         The bill codifies the I-STREET Living Lab within UF. The bill requires I-STREET to, at a minimum:
             Conduct and facilitate research on issues related to innovative transportation mobility and safety
                 technology development and deployment in Florida and serve as an information exchange and
                 depository for the most current information pertaining to transportation research, education,
                 workforce development, and related issues.
             Be a continuous resource for the Legislature, DOT, local governments, the nation’s metropolitan
                 regions, and the private sector in the area of transportation and related research.
             Promote intercampus transportation and related research activities among Florida universities
                 to enhance the ability of these universities to attract federal and private sector funding for
                 transportation and related research.
             Provide by July 1, 2023, and each July 1 thereafter, to the Governor, the President of the
                 Senate, and the Speaker of the House of Representatives a comprehensive report that outlines
                 I-STREET’s clearly defined goals and its efforts and progress on reaching those goals.

         The bill creates an advisory board to periodically review and advise I-STREET concerning its research
         program. The board must consist of nine members with expertise in transportation-related areas,
         including:
              A member appointed by the President of the Senate.
              A member appointed by the Speaker of the House of Representatives.
              The Secretary of Transportation or his or her designee.
              The Secretary of Economic Opportunity or his or her designee.
              A member of the Florida Transportation Commission. 12
              Four members nominated by UF’s College of Engineering and approved by UF’s president.
                 These nominees may include representatives of UF, other academic and research institutions,
                 or private entities.

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

    B. SECTION DIRECTORY:
         Section 1         Creates s. 334.066, F.S., creating the Implementing Solutions from Transportation
                           Research and Evaluating Emerging Technologies (I-STREET) Living Lab.

         Section 2         Provides an effective date.

                              II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

         1. Revenues:
             None.

11 Department of Transportation (DOT), UF I-Street, https://www.fdot.gov/traffic/its/projects -deploy/cv/maplocations/uf-testbed.shtm (last

visited Jan. 14, 2022).
12 The Florida Transportation Commission is a citizen’s advisory board for the Department of Transportation.

STORAGE NAME: h1031.TIE                                                                                                           PAGE: 3
DATE: 2/11/2022
        2. Expenditures:
             Indeterminate. The costs associated with I-STREET are unknown but are expected to be absorbed
             within the existing resources of the UF, DOT, and other potential government sector participants.
             The bill does not provide funding for any costs associated with participation.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
             None.

        2. Expenditures:
             Indeterminate. The costs associated with I-STREET are unknown but are expected to be absorbed
             within the existing resources of the UF, DOT, and other potential government sector participants.
             The bill does not provide funding for any costs associated with participation.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        None.

    D. FISCAL COMMENTS:
        While the bill does not have a direct fiscal impact on state or local government revenues, appropriations
        bill HB 4285 (2022) provides a $3,373,000 appropriation request for I-STREET.13


                                                       III. COMMENTS

    A. CONSTITUTIONAL ISSUES:

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

        2. Other:
           None.

    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.




13 House of Representatives, Appropriations Project Request – Fiscal Year 2022-2023 for HB 4285 (2022) p. 1.

STORAGE NAME: h1031.TIE                                                                                        PAGE: 4
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           HB 1031                                                                                               2022




    1                                         A bill to be entitled
    2                An act relating to transportation research; creating
    3                s. 334.066, F.S.; establishing the Implementing
    4                Solutions from Transportation Research and Evaluating
    5                Emerging Technologies Living Lab (I-STREET) within the
    6                University of Florida; specifying the duties of I-
    7                STREET; requiring I-STREET to annually provide the
    8                Governor and the Legislature with a certain report;
    9                requiring the creation of a certain advisory board;
10                   specifying the composition of the board; providing an
11                   effective date.
12
13         Be It Enacted by the Legislature of the State of Florida:
14
15                   Section 1.       Section 334.066, Florida Statutes, is created
16         to read:
17                   334.066      Implementing Solutions from Transportation
18         Research and Evaluating Emerging Technologies Living Lab.—
19                   (1)       The Implementing Solutions from Transportation
20         Research and Evaluating Emerging Technologies Living Lab (I-
21         STREET) is established within the University of Florida.
22                   (2)       At a minimum, I-STREET shall:
23                   (a)       Conduct and facilitate research on issues related to
24         innovative transportation mobility and safety technology
25         development and deployment in this state and serve as an

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        HB 1031                                                                                               2022




26      information exchange and depository for the most current
27      information pertaining to transportation research, education,
28      workforce development, and related issues.
29                (b)       Be a continuing resource for the Legislature, the
30      department, local governments, the nation's metropolitan
31      regions, and the private sector in the area of transportation
32      and related research.
33                (c)       Promote intercampus transportation and related
34      research activities among Florida universities to enhance the
35      ability of these universities to attract federal and private
36      sector funding for transportation and related research.
37                (d)       Provide by July 1, 2023, and each July 1 thereafter,
38      to the Governor, the President of the Senate, and the Speaker of
39      the House of Representatives a comprehensive report that
40      outlines its clearly defined goals and its efforts and progress
41      on reaching those goals.
42                (3)       An advisory board shall be created to periodically
43      review and advise I-STREET concerning its research program. The
44      board shall consist of nine members with expertise in
45      transportation-related areas, as follows:
46                (a)       A member appointed by the President of the Senate.
47                (b)       A member appointed by the Speaker of the House of
48      Representatives.
49                (c)       The Secretary of Transportation or his or her
50      designee.

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        HB 1031                                                                                               2022




51                (d)       The Secretary of Economic Opportunity or his or her
52      designee.
53                (e)       A member of the Florida Transportation Commission.
54                (f)       Four members nominated by the University of Florida's
55      College of Engineering and approved by the university's
56      president. The College of Engineering's nominees may include
57      representatives of the University of Florida, other academic and
58      research institutions, or private entities.
59                Section 2.       This act shall take effect July 1, 2022.




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                                                                                                             hb1031-00
HB 1419
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 1419 Financial Assistance for Municipal Solid Waste-to-Energy Facilities
SPONSOR(S): Mariano
TIED BILLS:       IDEN./SIM. BILLS: SB 1764

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                                    Walsh              Keating

  2) Agriculture & Natural Resources Appropriations
     Subcommittee

  3) Commerce Committee


                                            SUMMARY ANALYSIS
Energy recovery from waste is the conversion of non-recyclable waste materials into useable heat, electricity,
or fuel. Municipal solid waste (MSW), otherwise known as trash or garbage, can be used to produce energy at
WTE plants and landfills. For over 30 years, WTE has been a part of Florida’s solid waste management
program. Florida has the largest MSW burn capacity in the country.

Utilities are required to purchase power, at the utility’s full avoided cost, from “qualifying facilities” (QF) which
fall into two categories: qualifying small power production facilities and qualifying cogeneration facilities. In
Florida, investor-owned utilities (IOUs) must annually establish and file with the Public Service Commission
(PSC) a standard offer contract with terms, conditions, and payments based on projected costs for each fossil-
fueled generating unit type identified in the IOU’s ten-year site plan. Payment terms and conditions for QFs are
based on the projected cost to construct and operate the IOU’s next planned generation unit. The standard
offer contract provides a basis for developing negotiated contracts. “As-available” energy contracts are also an
option for QFs, including municipal solid waste-to-energy (MSWE) facilities.

The bill creates the Municipal Solid Waste-to-Energy Program (program) within the Department of Agriculture
and Consumer Services (DACS). The purpose of the program is to provide financial assistance grants and
incentive grants to MSWE facilities. To enable DACS to administer the program, the bill provides a $100 million
appropriation from the General Revenue Fund in recurring funds.

Under the bill, the financial assistance grants will provide MSWE facilities funding at a rate of 2 cents per
kilowatt-hour of electricity purchased by an electric utility during the preceding state fiscal year, not to exceed
the difference between the electric utility’s avoided cost and the commercial retail rate. The bill also provides
for incentive grants, which will provide facilities with matching funds on a dollar-for-dollar basis to assist with
planning and design for constructing, upgrading, or expanding MSWE facilities, including necessary legal or
administrative expenses. The bill authorizes DACS to adopt rules to implement the program.

The bill will not impact state government revenues or local government expenditures. The bill provides a $100
million appropriation in recurring funds from the General Revenue Fund to DACS for the 2022-2023 fiscal year.
The bill may result in a positive impact to local revenues if publicly-owned MSWE facilities qualify for the
program.

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: h1419.TIE
DATE: 2/11/2022
                                                 FULL ANALYSIS

                                          I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Municipal Solid Waste-to-Energy

        Energy recovery from waste is the conversion of non-recyclable waste materials into useable heat,
        electricity, or fuel. This process is often called waste-to-energy (WTE), and the conversion may use a
        few different methods, including combustion, gasification, pyrolization, anaerobic digestion, and landfill
        gas recovery.1

        Municipal solid waste (MSW), otherwise known as trash or garbage, can be used to produce energy at
        WTE plants and landfills.2 At this type of facility MSW is typically unloaded from collection trucks and
        placed in storage, then an overhead crane sorts the waste and lifts it into a combustion chamber to be
        burned. The heat released from burning converts water to steam in a boiler that is used to generate
        electricity.3,4 MSW may contain:
             Biomass or biogenic (plant or animal products) materials such as paper, cardboard, food waste,
                grass clippings, leaves, wood, and leather products;
             Nonbiomass combustible materials such as plastics and other synthetic materials made from
                petroleum; and
             Noncombustible materials such as glass and metals. 5

        In 2018, about 12 percent of the 292 million tons of MSW produced in the U.S. was burned in WTE
        plants.6 The remaining MSW was managed as follows:
             50 percent was landfilled;
             23.6 percent was recycled;
             8.5 percent was composted; and
             6.1 percent is listed as “other.”7

        In 2020, 65 U.S. power plants generated around 13.5 billion kilowatt-hours of electricity from 25 million
        tons of MSW. In addition to producing electricity, WTE is a waste management option. Utilizing WTE
        methods reduces the amount of material otherwise buried in landfills by about 87 percent. A WTE plant
        can reduce 2,000 pounds of MSW down to around 300 to 600 pounds of ash.8

        Energy recovery from waste is encouraged by the U.S. Environmental Protection Agency and is
        recognized as a renewable energy source. WTE facilities produce relatively clean, renewable energy
        through the combustion of municipal solid waste in specially designed power plants equipped with
        pollution control equipment to clean emissions.9

        Municipal Solid Waste-to-Energy in Florida


1 U.S. Environmental  Protection Agency, Energy Recovery from the Combustion of Municipal Solid Waste (MSW),
https://www.epa.gov/smm/energy-recovery-combustion-municipal-solid-waste-msw (last visited Feb. 9, 2022).
2 U.S. Energy Information Admin., Biomass explained, Waste-to-energy (Municipal Solid Waste), Basics,

https://www.eia.gov/energy explained/biomass/waste -to-energy.php (last visited Feb. 9, 2022).
3 U.S. Energy Information Admin., Biomass explained, Waste-to-energy (Municipal Solid Waste), In Depth, How waste-to-

energy plants work , https://www.eia.gov/energyexplained/biomass/waste-to-energy-in-depth.php (last visited Feb. 9,
2022).
4 U.S. Environmental Protection Agency, supra note 1.
5 U.S. Energy Information Admin., supra note 2.
6 Id.
7 Id.
8 Id.
9 U.S. Environmental Protection Agency, supra note 1.
STORAGE NAME: h1419.TIE                                                                                        PAGE: 2
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         For over 30 years, WTE has been a part of Florida’s solid waste management program. 10 In the 1993
         revisions to the 1988 Solid Waste Management Act, the Legislature recognized the need to use an
         integrated approach to municipal solid waste management by using waste reduction, recycling, WTE
         facilities, and landfills.11

         Current law defines the term “waste-to-energy facility” as a facility that uses an enclosed device using
         controlled combustion to thermally break down solid, liquid, or gaseous combustible solid waste to
         an ash residue that contains little or no combustible material and that produces electricity, steam, or
         other energy as a result. Under current law, the term does not include facilities that primarily burn fuels
         other than solid waste even if such facilities also burn some solid waste as a fuel supplement. 12,13

         Florida has the largest MSW burn capacity of any state in the country. The state went from having one
         small WTE plant in 1982 to operating twelve facilities.14 The following counties have at least
         one facility:
              Bay
              Broward
              Miami-Dade
              Hillsborough
              Lake
              Palm Beach
              Pasco
              Pinellas.15

         Florida Public Service Commission and Regulation of Investor-Owned Electric Utilities

         The Florida Public Service Commission (PSC) is an arm of the legislative branch of government. 16 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.17

         The PSC regulates the rates and services of investor-owned electric utilities (IOUs). There are four
         IOUs in Florida: Florida Power & Light Company (FPL), 18 Duke Energy Florida (Duke), Tampa Electric
         Company (TECO), and Florida Public Utilities Corporation. 19 Together, these four IOUs serve over 8.1
         million customers in Florida.20 IOU rates and revenues are regulated by the PSC.21 The IOUs must file
         periodic earnings reports, which allow the PSC to monitor earnings levels on an ongoing basis and



10 See s. 403.7061(1),   F.S.
11 Id.
12 S. 403.1061,   F.S.
13 The term also does not include facilities that burn vegetative,agricultural, or silvicultural wastes, bagasse, clean dry
wood, methane or other landfill gas, wood fuel derived from construction or demolit ion debris, or waste tires, alone or in
combination with fossil fuels. Id.
14 Florida Department of Environmental Protection, Waste-to-Energy, https://floridadep.gov/ waste/permitting-c ompliance-

assistance/content/waste-energy (last visited Feb. 9, 2022).
15 Florida Department of Environmental Protection, Florida Waste-to-Energy Facilities,

https://floridadep.gov/sites/default/files/W TE_Cont acts-2016.pdf (last visited Feb. 9, 2022).
16 S. 350.001, F.S.
17 Florida Public Service Commission, http://www.psc.state.fl.us/ (last visited Feb. 10, 2022).
18 FPL acquired Gulf Power Company in 2019 and merged as of January 3, 2022, for ratemaking purposes.
19 Florida Department of Agriculture and Consumer Services, Electric Utilities, https://www.fdacs.gov/Energy/Florida-

Energy-Clearinghouse/Electric-Utilities (last visited Feb. 10, 2022).
20 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 Feb. 10,
2022).
21 Florida Department of Agriculture and Consumer Services, Electric Utilities, supra at n. 20.
STORAGE NAME: h1419.TIE                                                                                             PAGE: 3
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        adjust customer rates if a company appears to be overearning. 22 IOUs must provide sufficient and
        adequate service to customers.23 To fulfill that obligation, utilities monitor customer usage patterns in
        order to plan for future energy needs.

        Required IOU Purchases from Qualifying Facilities

        In 1978, the federal government enacted the Public Utility Regulatory Policies Act (PURPA),24 which
        required promotion of energy efficiency and use of renewables. PURPA requires utilities to purchase
        power, at the utility’s full avoided cost, from “qualifying facilities” (QF) 25 which fall into two categories:
        qualifying small power production facilities and qualifying cogeneration facilities. 26 These facilities can
        include WTE facilities. PURPA directed the Federal Energy Regulatory Commission to implement this
        requirement, which in turn directed the states to do the same. In response, the Florida Legislature
        directed utilities to purchase power from cogenerators and small power producers.27

        An IOU’s full avoided cost is the incremental cost of electric energy or capacity, 28 which, but for a
        purchase from a non-utility generator, like a QF, the IOU would have to generate itself or purchase from
        another source.29 Full avoided cost is based upon either the utility’s cost to construct and operate its
        next planned generating unit or the cost of purchasing capacity and energy from generating units
        owned by other utilities in the wholesale market.30

        Power Purchase Agreements

        IOUs must annually establish and file with the PSC a standard offer contract with terms, conditions, and
        payments based on projected costs for each fossil-fueled generating unit type identified in the IOU’s
        ten-year site plan. Payment terms and conditions for QFs are based on the projected cost to construct
        and operate the IOU’s next planned generation unit. Essentially, the next planned unit becomes an
        avoided unit and the basis for the avoided costs. 31

        The standard offer contract provides a basis for developing negotiated contracts. 32 Rule 25-17.240,
        F.A.C., encourages IOUs and generating facilities to negotiate contracts for firm capacity and energy to
        provide fuel diversity, fuel price stability, and energy security. The PSC addresses petitions by IOUs for
        approval of cost recovery of negotiated contracts between the IOU and the QFs. The PSC’s review
        considers various matters including whether the contract is at or below the IOU’s avoided cost.33

        Payments to Qualified Facilities

        “As-available” energy contracts are an option for QFs, including municipal solid waste-to-energy
        (MSWE) facilities. These contracts are not subject to the PSC’s approval but must be filed with the PSC
        within ten working days of being signed.34 As-available energy is energy produced and sold on an hour-
        by-hour basis for which contractual commitments regarding the quantity and time of delivery are not

22 Florida Public Service Commission, Florida PSC 2020 Annual Report,      p. 6, available at
http://www.psc.state.fl.us/Files/PDF/Publications/Reports/General/Annualreports/2020.pdf (last visited Feb. 10, 2022).
23 S. 366.03, F.S.
24 16 U.S.C. s.2601 et seq.
25 See Federal Energy Regulatory Commission, PURPA Qualifying Facilities, https://www.ferc.gov/qf (last visited Feb. 10,

2022).
26 Id.
27 S. 366.051, F.S.
28 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 Feb. 10, 2022).
29 S. 366.051, F.S.
30 Florida Public Service Commission, States’ Electric Restructuring Activities Update: Wholesale Sales ,

http://www.psc.state.fl.us/Publications/ElectricRestructuringDetails#4 (last visited Feb. 10, 2022).
31 Florida Public Service Commission, Agency Analysis of 2022 House Bill 1419, p. 1 (Jan. 20, 2022).
32 Id.
33 Id.
34 R. 25-17.0825(1)(b), F.A.C.; Florida Public Service Commission, supra note 33, p. 2.
STORAGE NAME: h1419.TIE                                                                                             PAGE: 4
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          required.35 As-available energy is purchased at a rate equal to the utility’s hourly incremental system
          fuel cost, which reflects the highest fuel cost of generation each hour. 36

          According to the PSC, the following MSWE facilities receive as-available energy payments from FPL:
              Broward County Resource Recovery – South AA QF
              Brevard County
              Miami Dade Resource Recovery
              Lee County Solid Waste.37

          A QF is eligible for capacity and energy payments under a firm contract if the QF can meet certain
          contractual provisions as to the quantity, time, and reliability of the delivery of electricity. 38 Capacity is
          the maximum electric output, in megawatts, that an electricity generator can produce under ideal
          conditions.39

          To promote alternative and renewable energy generation, the PSC requires IOUs to offer multiple
          capacity payment options, including early payments or levelized payments. The different payment
          options allow QFs flexibility to best meet their financial needs. If an early capacity payment option is
          selected, then the QF will begin receiving capacity payments earlier than the in-service date of the
          avoided unit and payments will generally be lower in the later years of the contract.40

          According to the PSC, the following six MSWE facilities are operating under active firm contracts with
          their host IOU:
               Pinellas County Resource Recovery, with Duke, ending December 2024
               Pasco County Resource Recovery, with Duke, ending December 2024
               Broward County Resource Recovery - South QF, with FPL, ending December 2026
               Palm Beach County Solid Waste Authority 1, with FPL, ending March 2034
               Palm Beach County Solid Waste Authority 2, with FPL, ending March 2034
               Bay County/Engen LLC, with FPL/Gulf, ending July 2023. 41

          Commercial Retail Rates

          Commercial retail rates vary across utilities. Each IOU has various commercial rate levels pursuant to
          tariffs approved by the PSC. The retail rate depends on the kilowatt demand that a commercial
          customer places on an IOU’s system. Demand provides an indication of the customer’s load size.
          Demand is based on the highest usage over a specified time interval. Demand is intended to allow a
          utility to recover the fixed cost of maintaining its facilities, including generation, transmission, and
          distribution, which must be able to meet a customer’s highest electricity needs.42

          Effect of the Bill

          The bill provides findings that:
              It is in the public interest to promote the development of renewable energy resources in Florida;
              MSWE facilities 43 using biomass as fuel or an energy source are deemed to be producing
                  renewable energy;

35 R. 25-17.0825,   F.A.C.
36 Florida Public Service Commission, supra note 33, p. 2.
37 Id.
38 Id. at 1.
39 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 Feb. 11, 2022).
40 Florida Public Service Commission, supra note 33, p. 1.
41 Id. at 2.
42 Id.
43 The bill defines “municipal solid waste-to-energy facility” as a publicly owned or government affiliate-owned facility that

uses an enclosed device using controlled combustion to thermally break down solid waste to an ash residue that contains
little or no combustible material and that produces electricity, steam, or other energy as a result. The term does not
include facilities that primarily burn fuels other than solid waste even if such facil ities also burn some solid waste as a fuel
STORAGE NAME: h1419.TIE                                                                                                   PAGE: 5
DATE: 2/11/2022
               MSWE facilities provide a practical and sustainable solution to reducing landfill waste, reducing
                volume by about 87 percent;
               Recognize the benefits that MSWE facilities contribute to Florida and its local communities; and
               The Legislature intends to incentivize the production and sale of energy from MSWE facilities
                through grant programs.

        The bill creates the Municipal Solid Waste-to-Energy Program (program) within the Department of
        Agriculture and Consumer Services (DACS). The purpose of the program is to provide financial
        assistance grants and incentive grants to MSWE facilities. To enable DACS to administer the program,
        the bill provides a $100 million appropriation in recurring funds allocated to the department.

        Under the bill, the financial assistance grants will provide MSWE facilities funding at a rate of 2 cents
        per kilowatt-hour of electricity purchased by an electric utility during the preceding state fiscal year, not
        to exceed the difference between the electric utility’s avoided cost and the commercial retail rate. If
        funds are insufficient to cover every qualifying kilowatt-hour from all qualifying applicants, DACS must
        prorate the available funds on an equitable basis, taking into consideration the comm ercial retail rate
        within the applicable service territory.

        The bill provides that in order to qualify for the program, an MSWE must have previously entered into a
        power purchase agreement with an electric utility that included capacity payments which the MSWE
        facility will no longer receive under the agreement. The facility owner must submit an application to
        DACS, including the MSWE facility’s name and the amount of energy purchased from the facility by an
        electric utility during the preceding state fiscal year.

        The bill requires DACS to establish a process in coordination with the PSC to verify eligibility and the
        amount of energy purchased from the facility by an electric utility.

        Under the bill, the incentive grants will provide facilities with matching funds on a dollar-for-dollar basis
        to assist with planning and design for constructing, upgrading, or expanding MSWE facilities, including
        necessary legal or administrative expenses.

        The bill provides that to qualify for the incentive grants, a facility owner must apply to DACS and
        demonstrate that the project is cost-effective, permittable, and implementable and complies with s.
        403.7061, F.S., which establishes the requirements for review of new WTE facility capacity by the
        Department of Environmental Protection (DEP).

        The bill requires DEP to assist DACS with determining eligibility and with establishing
        requirements to ensure long-term and efficient operation and maintenance of such facilities.

        The bill requires DACS to perform adequate overview of applications and awards, including technical
        review, regular inspections, disbursement approvals, and auditing. The bill further provides that DACS
        must terminate or require repayment of incentive grant funds if it determines that the program
        requirements are not being met.

        The bill states that any funds appropriated to the program must first be used for the financial assistance
        grants and any remaining funds in a fiscal year may be used for the incentive grants.

        The bill requires DACS to adopt rules to implement and administer the program. The rules must:
            Establish an application process for both grant types;
            Include application deadlines; and
            Establish supporting documentation to be provided to DACS.

        The bill requires DACS to consult with the PSC in developing rules for the financial assistance grants.

supplement. The term also does not include facilities that primarily burn vegetative, agricultural, or silvicultural wastes,
bagasse, clean dry wood, methane or other landfill gas, wood fuel derived from construct ion or demolition debris, or waste
tires, alone or in combination with fossil fuels.
STORAGE NAME: h1419.TIE                                                                                             PAGE: 6
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   B. SECTION DIRECTORY:
       Section 1: Creates s. 377.814, F.S., which establishes the Municipal Solid Waste-to-Energy Program.

       Section 2: Appropriates funds from the General Revenue Fund.

       Section 3: 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 provides a $100 million appropriation in recurring funds from the General Revenue Fund to
           DACS for the 2022-2023 fiscal year.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           The bill may result in a positive impact to publicly-owned MSWE facilities that qualify for the
           program by providing grants to offset capacity payments and to assist with certain planning and
           design expenses.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill may result in a positive impact to government affiliate-owned MSWE facilities that qualify for the
       program by providing grants to offset capacity payments and to assist with certain planning and design
       expenses.

   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:
          None.

   B. RULE-MAKING AUTHORITY:
STORAGE NAME: h1419.TIE                                                                                    PAGE: 7
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          The bill authorizes DACS, in consultation with the PSC and DEP, to adopt rules to implement and
          administer the program.

     C. DRAFTING ISSUES OR OTHER COMMENTS:
          According to the PSC, the bill is unclear as to the status of capacity payments pursuant to a purchase
          power agreement. The PSC also states that the bill is unclear regarding the applicable commercial
          retail rate, since there is more than one commercial retail rate approved for each IOU. 44


                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
     Not applicable.




44 Id. at 5.
STORAGE NAME: h1419.TIE                                                                                    PAGE: 8
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           HB 1419                                                                                               2022




    1                                         A bill to be entitled
    2                An act relating to financial assistance for municipal
    3                solid waste-to-energy facilities; creating s. 377.814,
    4                F.S.; creating the Municipal Solid Waste-to-Energy
    5                Program within the Department of Agriculture and
    6                Consumer Services for a specified purpose; defining
    7                terms; requiring the department, subject to
    8                appropriation, to provide financial assistance grants
    9                to municipal solid waste-to-energy facilities that
10                   meet certain requirements; requiring the department to
11                   distribute funds to qualifying applicants based on
12                   certain criteria; requiring the department to
13                   establish a process to verify the amount of certain
14                   electric power purchases; directing the Public Service
15                   Commission to provide assistance in verifying grant
16                   eligibility; requiring the department, subject to
17                   appropriation, to provide incentive grants to
18                   municipal solid waste-to-energy facilities to assist
19                   with certain costs; specifying requirements for
20                   applying for the funding; requiring the Department of
21                   Environmental Protection to provide assistance in
22                   determining grant eligibility and establishing
23                   requirements; requiring the department to perform
24                   grant overview; establishing priority for funding for
25                   the grants; requiring the Department of Agriculture

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        HB 1419                                                                                               2022




26                and Consumer Services to adopt rules; providing an
27                appropriation; providing an effective date.
28
29                WHEREAS, as provided in s. 366.91(1), Florida Statutes, the
30      Legislature has determined that it is in the public interest to
31      promote the development of renewable energy resources in this
32      state, and
33                WHEREAS, under s. 366.91, Florida Statutes, municipal solid
34      waste-to-energy facilities that use biomass as a fuel or energy
35      source are deemed to be producing renewable energy, and
36                WHEREAS, municipal solid waste-to-energy facilities provide
37      a practical and sustainable solution to reducing landfill waste,
38      reducing volume by about 87 percent, and
39                WHEREAS, the Legislature recognizes the benefits that
40      municipal solid waste-to-energy facilities contribute to the
41      state and its local communities, and
42                WHEREAS, the Legislature intends to incentivize the
43      production and sale of energy from municipal solid waste -to-
44      energy facilities through grant programs, NOW, THEREFORE,
45
46      Be It Enacted by the Legislature of the State of Florida:
47
48                Section 1.       Section 377.814, Florida Statutes, is created
49      to read:
50                377.814     Municipal Solid Waste-to-Energy Program.—

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        HB 1419                                                                                               2022




51                (1)       CREATION AND PURPOSE OF THE PROGRAM.—The Municipal
52      Solid Waste-to-Energy Program is created within the department.
53      The purpose of the program is to provide financial assistanc e
54      grants and incentive grants to municipal solid waste-to-energy
55      facilities to incentivize the production and sale of energy from
56      municipal solid waste-to-energy facilities while also reducing
57      the amount of waste that would otherwise be disposed of in a
58      landfill.
59                (2)       DEFINITIONS.—For purposes of this section, the term:
60                (a)       "Department" means the Department of Agriculture and
61      Consumer Services.
62                (b)       "Municipal solid waste-to-energy facility" means a
63      publicly owned or government affiliate-owned facility that uses
64      an enclosed device using controlled combustion to thermally
65      break down solid waste to an ash residue that contains little or
66      no combustible material and that produces electricity, steam, or
67      other energy as a result. The term does not include faci lities
68      that primarily burn fuels other than solid waste even if such
69      facilities also burn some solid waste as a fuel supplement. The
70      term does not include facilities that primarily burn vegetative,
71      agricultural, or silvicultural wastes, bagasse, clean dry wood,
72      methane or other landfill gas, wood fuel derived from
73      construction or demolition debris, or waste tires, alone or in
74      combination with fossil fuels.
75                (3)       FINANCIAL ASSISTANCE GRANT PROGRAM.—The department,

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         HB 1419                                                                                               2022




 76      subject to appropriation, shall provide financial assistance
 77      grants to municipal solid waste-to-energy facilities that have
 78      entered into a power purchase agreement with an electric utility
 79      which includes capacity payments and the municipal solid waste-
 80      to-energy facility will no longer receive capacity payments
 81      under the agreement.
 82                (a)       To receive a financial assistance grant, the owner of
 83      a municipal solid waste-to-energy facility must submit an
 84      application to the department. The application must include the
 85      name of the applicant's municipal solid waste-to-energy facility
 86      and how much energy has been purchased from the facility by an
 87      electric utility during the preceding state fiscal year.
 88                (b)       The department shall distribute funds, subject to
 89      appropriation, to each qualifying applicant at a rate of 2 cents
 90      per kilowatt-hour of electric power purchased by an electric
 91      utility during the preceding state fiscal year, not to exceed
 92      the difference between the electric utility's avoided cost and
 93      the commercial retail rate. To the extent that funds are not
 94      available to provide financial assistance to each qualifying
 95      applicant for every qualifying kilowatt-hour purchased, the
 96      department shall prorate the funds on an equitable basis, taking
 97      into consideration the commercial retail rate within the
 98      applicable service territory.
 99                (c)       The department shall establish a process to verify the
100      amount of electric power purchased from a municipal solid waste -

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         HB 1419                                                                                               2022




101      to-energy facility by an electric utility during each preceding
102      state fiscal year. The Public Service Commission shall provide
103      assistance to the department to help verify grant eligibility
104      and award amounts and to ensure that the sum, per kilowatt -hour,
105      of the award plus the electric utility's purchase at the avoided
106      cost, do not exceed the applicable commercial retail rate within
107      the service territory.
108                (4)       INCENTIVE GRANT PROGRAM.—The department, subject to
109      appropriation, shall provide incentive grants to municipal solid
110      waste-to-energy facilities to assist with the planning and
111      designing for constructing, upgrading, or expanding a municipal
112      solid waste-to-energy facility, including necessary legal or
113      administrative expenses.
114                (a)       To qualify for an incentive grant, the owner of a
115      municipal solid waste-to-energy facility must apply to the
116      department for funding; provide matching funds on a dollar-for-
117      dollar basis; and demonstrate that the project is cost-
118      effective, permittable, and implementable and complies with s.
119      403.7061.
120                (b)       The Department of Environmental Protection shall
121      provide assistance to the department in determining the
122      eligibility of grant applications and establishing requirements
123      to ensure the long-term and efficient operation and maintenance
124      of facilities constructed or expanded under an incentive grant.
125                (c)       The department shall perform adequate overview of each

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         HB 1419                                                                                               2022




126      grant application and grant award, including technical review,
127      regular inspections, disbursement approvals, and auditing, to
128      implement this section.
129                (d)       The department shall require the termination or
130      repayment of incentive grant funds if the department determines
131      that program requirements are not being met.
132                (5)       FUNDING.—Funds appropriated for the Municipal Solid
133      Waste-to-Energy Program must first be used for financial
134      assistance grants. Any funds remaining in a state fiscal year
135      after disbursement to all qualifying applicants may be used to
136      fund the incentive grant program.
137                (6)       RULES.—The department shall adopt rules to implement
138      and administer this section, including establishing grant
139      application processes for financial assistance grants and
140      incentive grants. The rules shall include application deadlines
141      and establish the supporting documentation necessary to be
142      provided to the department. In adopting rules relating to the
143      financial assistance grant program, the department shall consult
144      the Public Service Commission. In adopting rules for the
145      incentive grant program, the department shall consult the
146      Department of Environmental Protection.
147                Section 2.       For the 2022-2023 fiscal year, the sum of $100
148      million in recurring funds is appropriated from the General
149      Revenue Fund to the Department of Agriculture and Consumer
150      Services for the Municipal Solid Waste-to-Energy Program, as

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         HB 1419                                                                                               2022




151      provided in s. 377.814, Florida Statutes.
152                Section 3.       This act shall take effect July 1, 2022.




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        TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                        HB 1419 by Rep. Mariano
    Financial Assistance for Municipal Solid Waste-to-Energy Facilities

                               AMENDMENT SUMMARY
                                 February 15, 2022


Amendment 1 by Rep. Mariano (strike-all):

•    Clarifies eligibility, application requirements, and fund distribution guidelines for the
     financial assistance grant program.
•    Appropriates recurring funds from the General Revenue Fund to the Department of
     Agriculture and Consumer Services (DACS) for the 2022-2023 fiscal year as follows:
         o $100 million to fund the grant program.
         o $149,832 to provide for the staff necessary to administer the program.
•    Appropriates non-recurring funds from the General Revenue Fund to DACS for
     administration expenses in the amount of $9,984.
•    Provides that allocated funds which are not disbursed by the end of the fiscal year
     may be carried forward for up to 5 years.
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                  Bill No. HB 1419   (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 Mariano offered the following:
 4
 5          Amendment (with title amendment)
 6          Remove everything after the enacting clause and insert:

 7          Section 1. Section 377.814, Florida Statutes, is created to
 8     read:
 9          377.814 Municipal Solid Waste-to-Energy Program.—
10          (1) CREATION AND PURPOSE OF THE PROGRAM.—The Municipal
11     Solid Waste-to-Energy Program is created within the department.
12     The purpose of the program is to provide financial assistance
13     grants and incentive grants to municipal solid waste-to-energy
14     facilities to incentivize the production and sale of energy from
15     municipal solid waste-to-energy facilities while also reducing
16     the amount of waste that would otherwise be disposed of in a

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                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                  Bill No. HB 1419   (2022)
       Amendment No. 1



17     landfill.
18          (2) DEFINITIONS.—For purposes of this section, the term:
19          (a) “Department” means the Department of Agriculture and
20     Consumer Services.
21          (b) “Municipal solid waste-to-energy facility” means a
22     publicly owned or government affiliate-owned facility that uses
23     an enclosed device using controlled combustion to thermally
24     break down solid waste to an ash residue that contains little or
25     no combustible material and that produces electricity, steam, or
26     other energy as a result. The term does not include facilities
27     that primarily burn fuels other than solid waste even if such
28     facilities also burn some solid waste as a fuel supplement. The
29     term does not include facilities that primarily burn vegetative,
30     agricultural, or silvicultural wastes, bagasse, clean dry wood,
31     methane or other landfill gas, wood fuel derived from
32     construction or demolition debris, or waste tires, alone or in
33     combination with fossil fuels.
34          (3) FINANCIAL ASSISTANCE GRANT PROGRAM.—The department,
35     subject to appropriation, shall provide annual financial
36     assistance grants to municipal solid waste-to-energy facilities
37     that entered into a power purchase agreement with an electric
38     utility before January 1, 2022, which included capacity and
39     energy payments, and the owner of the municipal solid waste-to-
40     energy facility has entered into a new or amended power purchase
41     agreement that either no longer includes capacity payments or
42     includes capacity and energy payments in an amount less than the

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                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                  Bill No. HB 1419   (2022)
       Amendment No. 1



43     total of the capacity and energy payments the municipal solid
44     waste-to-energy facility received under the power purchase
45     agreement entered into before January 1, 2022.
46          (a) To apply for an annual financial assistance grant, the
47     owner of a municipal solid waste-to-energy facility must submit
48     an application to the department. The application must include
49     the name of the applicant’s municipal solid waste-to-energy
50     facility, the name of the utility purchasing the electric power
51     from the municipal solid waste-to-energy facility, the total
52     capacity and energy payment the municipal solid waste -to-energy
53     facility received during the last year of the power purchase
54     agreement entered into before January 1, 2022, and the amount of
55     energy delivered to and the total amount paid for such power by
56     an electric utility pursuant to a new or amended power purchase
57     agreement during the preceding state fiscal year.
58          (b) The department shall distribute funds, subject to
59     appropriation, to each qualifying applicant at a rate of 2 cents
60     per kilowatt-hour of electric power purchased by an electric
61     utility during the preceding state fiscal year, not to exceed
62     the difference between the total capacity and energy payment the
63     municipal solid waste-to-energy facility received during the
64     last year of the power purchase agreement entered into before
65     January 1, 2022, and the total of the capacity and energy
66     payment the municipal solid waste-to-energy facility received
67     under a new or amended power purchase agreement during the
68     preceding state fiscal year. To the extent that funds are not

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                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                  Bill No. HB 1419   (2022)
       Amendment No. 1



69     available to provide financial assistance to each qualifying
70     applicant for every qualifying kilowatt-hour purchased, the
71     department shall prorate the funds on an equitable basis.
72          (c) The department shall establish a process to verify the
73     amount of electric power purchased from a municipal solid waste -
74     to-energy facility by an electric utility during each preceding
75     state fiscal year. The Public Service Commission shall provide
76     assistance to the department to help verify the information
77     provided pursuant to paragraph (a).
78          (4) INCENTIVE GRANT PROGRAM.—The department, subject to
79     appropriation, shall provide incentive grants to municipal solid
80     waste-to-energy facilities to assist with the planning and
81     designing for constructing, upgrading, or expanding a municipal
82     solid waste-to-energy facility, including necessary legal or
83     administrative expenses.
84          (a) To qualify for an incentive grant, the owner of a
85     municipal solid waste-to-energy facility must apply to the
86     department for funding; provide matching funds on a dollar -for-
87     dollar basis; and demonstrate that the project is cost-
88     effective, permittable, and implementable and complies with s.
89     403.7061.
90          (b) The Department of Environmental Protection shall
91     provide assistance to the department in determining the
92     eligibility of grant applications and establishing requirements
93     to ensure the long-term and efficient operation and maintenance
94     of facilities constructed or expanded under an incentive grant.

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                                            COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 1419   (2022)
        Amendment No. 1



 95          (c) The department shall perform adequate overview of each
 96     grant application and grant award, including technical review,
 97     regular inspections, disbursement approvals, and auditing, to
 98     implement this section.
 99          (d) The department shall require the termination or
100     repayment of incentive grant funds if the department determines
101     that program requirements are not being met.
102          (5) FUNDING.—Funds appropriated for the Municipal Solid
103     Waste-to-Energy Program must first be used for financial
104     assistance grants. Any funds remaining in a state fiscal year
105     after disbursement to all qualifying applicants may be used to
106     fund the incentive grant program.
107          (6) RULES.—The department shall adopt rules to implement
108     and administer this section, including establishing grant
109     application processes for financial assistance grants and
110     incentive grants. The rules shall include application deadlines
111     and establish the supporting documentation necessary to be
112     provided to the department. In adopting rules relating to the
113     financial assistance grant program, the department shall consult
114     the Public Service Commission. In adopting rules for the
115     incentive grant program, the department shall consult the
116     Department of Environmental Protection.
117          Section 2. (1) For the 2022-2023 fiscal year, the sum of
118     $100 million in recurring funds is appropriated from the General
119     Revenue Fund to the Department of Agriculture and Consumer
120     Services for the Municipal Solid Waste-to-Energy Program, as

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                                            COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 1419   (2022)
        Amendment No. 1



121     provided in s. 377.814, Florida Statutes.
122          (2) Notwithstanding s. 216.301, Florida Statutes, and
123     pursuant to s. 216.351, Florida Statutes, funds allocated for
124     the purpose of this section which are not disbursed by June 30
125     of the fiscal year in which the funds are allocated may be
126     carried forward for up to 5 years after the effective date of
127     the original appropriation.
128          Section 3. For the 2022-2023 fiscal year, the sums of
129     $149,832 in recurring funds and $9,984 in nonrecurring funds are
130     appropriated from the General Revenue Fund to the Depart ment of
131     Agriculture and Consumer Services, and two full-time equivalent
132     positions with associated salary rate of 80,540 are authorized,
133     for the purpose of implementing this act.
134          Section 4. This act shall take effect July 1, 2022.
135
136           -----------------------------------------------------
137                       T I T L E     A M E N D M E N T
138          Remove everything before the enacting clause and insert:

139          An act relating to financial assistance for municipal
140          solid waste-to-energy facilities; creating s. 377.814,
141          F.S.; creating the Municipal Solid Waste-to-Energy
142          Program within the Department of Agriculture and
143          Consumer Services for a specified purpose; defining
144          terms; requiring the department, subject to
145          appropriation, to provide annual financial assistance
146          grants to municipal solid waste-to-energy facilities

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                                            COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 1419   (2022)
        Amendment No. 1



147          that meet certain requirements; requiring the
148          department to distribute funds to qualifying
149          applicants based on certain criteria; requiring the
150          department to establish a process to verify the amount
151          of certain electric power purchases; directing the
152          Public Service Commission to provide assistance in
153          verifying grant eligibility; requiring the department,
154          subject to appropriation, to provide incentive grants
155          to municipal solid waste-to-energy facilities to
156          assist with certain costs; specifying requirements for
157          applying for the funding; requiring the Department of
158          Environmental Protection to provide assistance in
159          determining grant eligibility and establishing
160          requirements; requiring the department to perform
161          grant overview; establishing priority for funding for
162          the grants; authorizing the balance of certain
163          unexpended funds to be carried forward for a specified
164          number of years; requiring the Department of
165          Agriculture and Consumer Services to adopt rules;
166          providing appropriations; authorizing positions;
167          providing an effective date.
168
169          WHEREAS, as provided in s. 366.91(1), Florida Statutes, the
170     Legislature has determined that it is in the public interest to
171     promote the development of renewable energy resources in this
172     state, and

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                                            COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 1419   (2022)
        Amendment No. 1



173          WHEREAS, under s. 366.91, Florida Statutes, municipal solid
174     waste-to-energy facilities that use biomass as a fuel or energy
175     source are deemed to be producing renewable energy, and
176          WHEREAS, municipal solid waste-to-energy facilities provide
177     a practical and sustainable solution to reducing landfill waste,
178     reducing volume by about 87 percent, and
179          WHEREAS, the Legislature recognizes the benefits that
180     municipal solid waste-to-energy facilities contribute to the
181     state and its local communities, and
182          WHEREAS, the Legislature intends to incentivize the
183          production and sale of energy from municipal solid
184          waste-to-energy facilities through grant programs,
185          NOW, THEREFORE,




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CS / HB 1461
                       HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 1461 Reinstatement of Suspended Driver Licenses
SPONSOR(S): Criminal Justice & Public Safety Subcommittee, Driskell
TIED BILLS:       IDEN./SIM. BILLS: SB 1638

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Criminal Justice & Public Safety Subcommittee            18 Y, 0 N, As CS        Frost              Hall

  2) Tourism, Infrastructure & Energy Subcommittee                                    Johnson            Keating

  3) Appropriations Committee

  4) Judiciary Committee

                                              SUMMARY ANALYSIS
The Department of Highway Safety and Motor Vehicles (DHSMV) may, at the request of a clerk of court,
suspend or revoke the driver license of a person for certain financial reasons, such as failure to pay court costs
associated with a criminal case or civil penalties for a traffic violation. Upon referral to collections, an
outstanding obligation may also accumulate a collections surcharge of up to 40 percent. A person with a
suspended or revoked driver license cannot drive or obtain motor vehicle insurance, which can inhibit his or
her ability to work and further compound the problem of outstanding financial obligations. While many counties
participate in periodic Operation Green Light events and all counties are required to host Driver License
Reinstatement days for at least one day a year, current law does not require any ongoing program to assist
individuals with reinstating driver licenses which are suspended for outstanding financial obligations.
CS/HB 1461 creates the Drive for Success Pilot Program (Pilot Program) within the Florida Clerks of Court
Operations Corporation (FCCOC) to be administered in at least six counties, selected by the FCCOC. Unlike
current Operation Green Light and Driver License Reinstatement Days events, the Pilot Program is not limited
to a single yearly event but rather is available year-round to those who qualify. The bill requires the
participating clerks of court to:
   Make an effort to contact persons whose driver licenses are suspended for failing to pay court-ordered
     financial obligations, including unpaid traffic citations or unpaid court costs, fines, or fees and encourage
     such persons to establish with the clerk a partial payment agreement to fulfill the person’s outstanding
     financial obligations;
   Test the efficacy of communicating with Pilot Program participants via telephone, text message, email, or
     other electronic means to provide notification of payment due dates and missed payments; and
   Establish consequences for failing to make timely payments, including, but not limited to, specifying the
     period of time after which a participant’s license may be re-suspended for failing to make payments.
Under the bill, a person is not eligible for the Pilot Program if his or her driver license is suspended or revoked
for enumerated reasons, including failure to pay child support and serious traffic offenses such as driving under
the influence and traffic felonies. The bill does not require a participant to pay a driver license reinstatement fee
to have his or her driver license reinstated and authorizes a participant’s driver license to be reinstated upon
the first payment made under his or her partial payment plan. The bill also requires the participating clerks of
court to provide specified data to the FCCOC who must subsequently provide such information along with
recommendations related to the Pilot Program to the Governor and specified members of the Legislature. The
bill provides that the Pilot Program expires on June 30, 2026, unless otherwise provided by law, but any partial
payment plan established prior to June 30, 2026 remains valid.
The bill may have an indeterminate positive fiscal impact to state and local government revenues ; an
indeterminate, though likely insignificant negative fiscal impact to clerks of court chosen for the Pilot Program;
and a negative indeterminate fiscal impact on DHSMV.
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: h1461b.TIE
DATE: 2/11/2022
                                                            FULL ANALYSIS

                                                    I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Background

         Florida Driving Privileges and Driver Licenses

         Florida requires a person to hold a driver license1 or be exempted from licensure to operate a motor
         vehicle on the state’s roadways.2 Exemptions to the licensure requirement include nonresidents who
         possess a valid driver license issued by their home states, federal government employees operating a
         government vehicle for official business, and people operating a road machine, 3 tractor, or golf cart.4
         Both licensed drivers and exempted individuals have a driving privilege in Florida.5

         The Department of Highway Safety and Motor Vehicles (DHSMV) can revoke or suspend a driver
         license or driving privilege for several driving-related and non-driving-related reasons. Revocation
         means a termination of the privilege to drive,6 while suspension means the temporary withdrawal of the
         privilege to drive.7 Both revocations and suspensions can be indefinite or for a defined period of time,
         but only revocations in certain circumstances can be permanent. 8 As both revocations and suspensions
         functionally prohibit a person from driving, the terms are often used interchangeably in statute.

         Examples of driving-related bases for suspension or revocation include:
             A conviction for fleeing or attempting to elude a law enforcement officer; 9
             Certain noncriminal traffic infractions, such as those causing death or serious bodily injury; 10
             Driving under the influence (DUI);11
             Habitual traffic offender (HTO) classification;12
             Refusal to submit to a lawful breath, blood, or urine test in a DUI investigation; 13
             Accumulation of points 14 on a driving record; and
             Incompetency to drive a motor vehicle.15

         Examples of non-driving-related bases for suspension or revocation include:
             Failure to comply with certain court-imposed obligations;
             Child support delinquency;
             Truancy;
             Adjudication of guilt for certain theft offenses committed by a minor, in lieu of probation;
             Graffiti by a minor; and
             Certain drug convictions.16


1 Driver license means a certificate that, subject to all other requirements of law, authorizes an individual to drive a motor vehicle . S.

322.01(17), F.S.
2
  S. 322.03(1), F.S.
3 Road machines are road construction equipment. Marrero v. State, 921 So.2d 748, 750 (Fla. 5th DCA 2006).
4 S. 322.04, F.S.
5 State v. Miller, 227 So.3d 562, 564 (Fla. 2017) (“the Legislature’s use of ‘driving privilege’ refers to all individuals who may lawfully

operate vehicles on Florida’s roads, even if they do not possess a Florida driver li cense”).
6
  S. 322.01(37), F.S.
7 S. 322.01(41), F.S.
8 Ss. 322.26(1)(a) and 322.26(2), F.S.
9 S. 316.1935(5), F.S.
10 Ss. 318.14, 318.15, and 322.26, F.S.
11 Ss. 322.26, 322.271, and 322.28, F.S.
12 A person is designated HTO after accumulating three or more enumerated traffic convictions or 15 or more other moving violation

convictions within a five-year period. S. 322.264, F.S.
13 S. 322.2615(1)(b), F.S.
14 S. 322.27(3), F.S. There is an established point system for evaluating traffic violations to determine a person’s continuing qualification

to operate a motor vehicle. S. 322.27(3), F.S.
15 S. 322.27(1)(c), F.S.
16 Ss. 318.15, 832.09, 322.245, 322.058, 322.091, 812.0155, 806.13, and 322.055, F.S.

STORAGE NAME: h1461b.TIE                                                                                                              PAGE: 2
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            Suspension for Failure to Meet Court-Imposed Obligations

            The clerk of court can notify DHSMV to suspend a license for failing to comply with a court-imposed
            obligation, such as a person’s failure to:
                  Timely comply with certain civil penalties;
                  Enter into or comply with the terms of a penalty payment plan17 with the clerk of court;
                  Attend driver improvement school;
                  Appear for a court appearance;18
                  Pay criminal financial obligations; or
                  Pay child support.19

            Upon notification from the clerk, the DHSMV provides notice to the individual that his or her license will
            be suspended by a specified date if he or she fails to comply with whatever action is necessary to
            prevent the suspension. If the person does not timely comply, his or her license is suspended. The
            suspension remains in place until he or she is compliant with the court’s requirements for
            reinstatement20 or, in the case of criminal financial obligations, the court grants relief from the
            suspension,21 and the individual pays all administrative fees and reinstatement fees to the DHSMV. 22
            The base fee23 for driver license reinstatement after:24
                  General suspension is $45;
                  D-625 suspension is $60;
                  Court ordered child support suspension is $60;26
                  Department of Revenue (DOR) child support suspension is $45; 27 and
                  Revocation is $75.

            Suspension for Failure to Pay Child Support

            When an obligor fails to pay child support, ch. 61, F.S., outlines the procedure for suspending his or her
            driver license based on a request by the obligee or DOR, including, but not limited to, notice
            requirements and specific deadlines for response. A driver who receives notice of a driver license
            suspension for outstanding child support may avoid the suspension by complying with the requirements
            of s. 61.13016(1)(c), F.S. For example, the obligor may pay the applicable delinquency fee 28 and: pay
            the delinquent amount in full,29 enter into a written agreement for payment with the obligee or DOR, 30
            demonstrate that he or she receives Social Security Disability payments, 31 or demonstrate the he or
            she is making payments in accordance with a confirmed bankruptcy plan. 32, 33


17 Pursuant to ss. 318.14 or 28.246, F.S.
18
     S. 318.15, F.S.
19 S. 322.245, F.S.
20 Such as completing driver improvement school or paying a traffic fine . Ss. 318.15(2) and 322.245(5), F.S.
21 S. 322.245(5)(b), F.S.
22 S. 322.245(5), F.S.
23 Some violations also require paying for and completing certain driver improvement or substance abuse courses and paying addit ional

fees. For example, the administrative fee for a drug or alcohol offense is $130.
24 Department of Highway Safety and Motor Vehicles, Fees, https://www.flhsmv.gov/fees/ (last visited Feb. 8, 2022).
25 A D-6 suspension is a court-ordered suspension for reasons such as failing to: pay a traffic ticket; appear for a traffic summons; or

complete traffic school after electing to do so.
26 Under s. 61.13016, F.S., the driver license and motor vehicle registration of a person owing child support (“obligor”) may be

suspended.
27 In Title IV-D cases, DOR provides child support services within the scope of Title IV-D of the Social Security Act, 42 U.S.C. 651, et

seq. There are two main categories of child support cases in Florida: “Title IV-D case” and non-IV-D cases. A Title IV-D case is a case
or proceeding dealing with only child support matters involving the Florida Department of Revenue (DOR) as the agency responsible for
collecting and enforcing child support.
28 S. 61.13016(1)(c)2., F.S.
29 S. 61.13016(1)(c)1.a., F.S.
30 S. 61.13016(1)(c)1.b., F.S.
31 S. 61.13016(1)(c)1.e., F.S.
32 S. 61.13016(1)(c)1.g., F.S.
33 An obligor may also petition the court for a hardship license, and the court may, in its discretion, direct DHSMV to issue a driver

license for driving privilege restricted to business purposes only. However, the obligor mus t to enter into a specified payment plan or
schedule before the court can consider granting a hardship license . S. 61.13016(2)(a), F.S.
STORAGE NAME: h1461b.TIE                                                                                                        PAGE: 3
DATE: 2/11/2022
         Payment Plans, Community Service Options, and Collections Process

         Court costs, fees, and other fines related to a court disposition are enforced by court order and
         collected by the clerks of court. A person may apply to the clerk of court to enter into a payment plan if
         the person is indigent.34 The clerk of court must establish all terms of a payment plan, and is required to
         accept partial payment of court-related fees, service charges, costs, or fines in accordance with the
         terms of an established payment plan. The court may review the reasonableness of the payment plan.
         An individual who is released from incarceration and has outstanding court obligations is responsible
         for contacting the clerk within 30 days after his or her release to pay any fees, service charges, court
         costs, and fines in full, or to apply for enrollment in a payment plan. 35

         A monthly payment amount, calculated based upon all fees and all anticipated fees, service charges,
         court costs, and fines, must correspond to a person’s ability to pay. 36 The court may convert a statutory
         financial obligation in a criminal case or a noncriminal traffic infraction into a requirement to perform
         community service.37

         The clerk of court must pursue the collection of any financial obligations that remain unpaid after 90
         days by referring the account to a private attorney or collection agent. The clerk must have attempted to
         collect the unpaid obligation through a collection court, collections docket, or any other collections
         process prior to referring the account for collection, find the referral to be cost-effective, and follow any
         applicable procurement processes. A collection fee of up to 40 percent of the amount owed at the time
         the account is referred may be added to the outstanding balance. 38

         Hardship License

         Upon the request of a person whose driver license is suspended, cancelled, or revoked under ch. 322,
         F.S., DHSMV must provide a hearing within 30 days 39 wherein the person may show that such
         suspension, cancellation, or revocation causes a serious hardship and precludes him or her from
         carrying out his or her normal business occupation, trade, or employment, that the person's driver
         license is used in the normal course of his or her business, and a driver license is necessary to provide
         proper support of the person or his or her family. In addition to requesting a hearing, the driver must
         also complete the applicable driver training course and evaluation or DUI program substance abuse
         education course and evaluation, if applicable.40 Following such a hearing, DHSMV must either affirm,
         suspend, or modify the suspension, cancellation, or revocation and may do so by granting what is
         commonly referred to as a “hardship license,” meaning the person’s driving privilege is restored on a
         limited basis for business or employment41 use only.42

         The costs associated with obtaining a hardship license include:
              A $12 hardship hearing filing fee;43
              Any cost associated with the required driver improvement school (currently $63) or DUI
                education course (currently $280 for a first time DUI);
34 A person is considered indigent if he or she has an income equal to or below 200 percent of the federal poverty guidel ines, or is

receiving: Temporary Assistance for Needy Families -Cash Assistance; Poverty-related veterans' benefits; or Supplemental Security
Income. S. 27.52, F.S.
35 S. 28.246, F.S.
36 A monthly payment amount is presumed to correspond to the person’s ability to pay if the amount does not exceed 2 percent of the

person’s annual net income, divided by 12. S. 28.246(4), F.S.
37
   Ss. 938.30(2) and 318.18(8)(b)1.a., F.S. The hourly conversion rate for community service is equal to the federal minimum wage,
unless the person has a trade or profession for which there is a community service need, in which case the rate is the prevailing wa ge
rate for that trade or profession. S. 318.18(8)(b), F.S.
38 S. 28.246(6), F.S.
39 Except a person whose driver license is revoked as an HTO under s. 322.27(5), F.S., or a person who is ineligible to be granted the

privilege of driving on a limited or restricted basis under s. 322.271(2), F.S., must wait 12 months from the date of the revocation.
40 S. 322.271(2), F.S.
41 “A driving privilege restricted to business purposes only” means a driving privilege that is limited to any driving necessary to maintain

livelihood, including driving to and from work, necessary on -the-job driving, driving for educational purposes, and driving for church and
for medical purposes. “A driving privilege restricted to employment purposes only” means a driving privilege that is limited to driving to
and from work and any necessary on-the-job driving required by an employer or occupation.
42 S. 322.271(3), F.S.
43 Or $25 formal/informal review hearing fee, pursuant to s. 322.2615, F.S.

STORAGE NAME: h1461b.TIE                                                                                                            PAGE: 4
DATE: 2/11/2022
                  Any associated administrative fees (such as the $130 administrative fee for drug or alcohol
                   offenses); and
                  Any reinstatement fees associated with the person’s particular type of suspension, cancellation,
                   or revocation. These fees are paid prior to a person receiving his or her hardship license and
                   are not required to be paid again for the same sanctions when his or her revocation or
                   suspension period has ended and he or she is ready to apply for reinstatement of his or her
                   unrestricted driver license.44

         Driver License Reinstatement Clinics

         A person with a suspended or revoked driver license cannot drive or obtain motor vehicle insurance,
         which can inhibit his or her ability to work and further compound the problem of outstanding financial
         obligations. Several counties have held events to assist individuals whose driver licenses are
         suspended for financial reasons related to civil penalties or criminal financial obligations.

                  Operation Green Light

         Clerks of Court throughout the state may participate in a short-term event known as Operation Green
         Light to help residents pay outstanding court fees, tickets and other fines, and have their driver licenses
         reinstated. For example, in October 2019, 64 counties throughout the state participated in Operation
         Green Light events, resulting in: $2.7 million collected for the state, local governments, and clerks of
         court; 22,502 cases placed on a payment plan; 10,264 cases paid in full; 9,849 driver licenses made
         eligible for reinstatement; and 1,782 driver licenses reinstated.45

                  Driver License Reinstatement Days

         In 2019, the Legislature required the Clerk of Court in each judicial circuit to work collaboratively with
         DHSMV, the state attorney’s office, the public defender’s office, the circuit and county courts, the clerk
         of court, and any interested community organization, to hold a yearly event to assist drivers with the
         reinstatement of suspended driver licenses.46 The program must occur at least once a year, and clerks
         are encouraged to offer the event outside of regular business hours or on a weekend. Participants must
         pay the full license reinstatement fee; however, the clerk may compromise or waive other fees and
         costs to facilitate reinstatement.

         A person is eligible for the Driver License Reinstatement Days program if his or her driver license or
         driving privilege was suspended for:
              Driving without a valid license;
              Driving with a suspended license;
              Failing to make a payment on penalties in collection;
              Failing to appear in court for a traffic violation; or
              Failing to comply with directives for a traffic infraction or driver license offense.

         A person is not eligible for reinstatement under the program if his or her driver license or driving
         privilege is suspended or revoked:
              Because the person failed to fulfill a court-ordered child support obligation;
              For DUI;
              Because the person has not completed a required driver training program, driver improvement
                 course, or alcohol or substance abuse education or evaluation program;
              For a traffic-related felony; or
              Because the person is a habitual traffic offender.


44 Email from Rachel Jarriel, Legislative Liaison, FLHSMV Office of Legislative Affairs, Re: SL Suspension Data Collection (Sept . 13,

2021).
45 Facts About Your Clerk of Court’s Operation Green Light,

https://cdn.ymaws.com/www.flclerks.com/resource/resmgr/2019operationgreenlight/ogl_posteventh andout-1206201.pdf (last visited
Feb. 8, 2022).
46 Ch. 2019-167, Laws of Fla.; S. 322.75, F.S.

STORAGE NAME: h1461b.TIE                                                                                                         PAGE: 5
DATE: 2/11/2022
       While both Operation Green Light and Driver License Reinstatement Days provide short term
       opportunities for a person to have his or her driver license reinstated with lowered fees and the
       opportunity to establish a payment plan, current law does not provide for any such program year-round.

       Effect of Proposed Changes

       CS/HB 1461 creates the Drive for Success Pilot Program (Pilot Program) within the Florida Clerks of
       Court Operations Corporation (FCCOC) to be administered in at least six counties, selected by the
       FCCOC. Unlike current Operation Green Light and Driver License Reinstatement Days events, the Pilot
       Program is not limited to a single yearly event but rather is available year-round to those who qualify.
       The bill requires the participating clerks of court to:
           Make an effort to contact persons whose driver licenses are suspended for failing to pay court-
                ordered financial obligations, including unpaid traffic citations or unpaid court costs, fines , or
                fees and encourage such persons to establish with the clerk a partial payment agreement to
                fulfill the person’s outstanding financial obligations;
           Test, at a minimum, the efficacy of communicating with Pilot Program participants via
                telephone, text message, email, or other electronic means to provide notification of payment
                due dates and missed payments; and
           Establish consequences for failing to make timely payments, including, but not limited to,
                specifying the period of time after which a participant’s license may be re-suspended for failing
                to make payments.
       The bill authorizes each clerk of court participating in the Pilot Program to collaborate with the Florida
       Association of Court Clerks and Comptrollers to promote and develop communications regarding the
       pilot program.

       Under the bill, a person is not eligible for the Pilot Program if his or her driver license is suspended or
       revoked for:
           Failing to fulfill a court-ordered child support obligation;
           A DUI offense;
           Failing to complete a required driver training program, driver improvement course, or alcohol or
              substance abuse education or evaluation program;
           A traffic-related felony; or
           Being designated as a habitual traffic offender.

       The bill does not require a participant to pay a driver license reinstatement fee to have his or her
       license reinstated and authorizes a participant’s driver license to be reinstated upon the first payment
       made under his or her partial payment plan.

       The bill requires each clerk of court participating in the Pilot Program to submit, by December 31, 2024,
       a report to the FCCOC including the following information:
            The number of cases paid in full.
            The number of cases for which a partial payment agreement is established.
            The number of driver license reinstatements.
            The number of driver licenses made eligible for reinstatement.
            The amount of fees and costs collected during the three years preceding the administration of
               the Pilot Program and throughout the duration of the Pilot Program.
            The personnel, operating, security, and other expenditures incurred by the clerk of court.
            The number of cases that fail to comply with a partial payment plan and subsequently result in
               driver license suspension.

       By February 28, 2025, the FCCOC must compile the reports provided from each clerk of court
       participating in the Pilot Program and submit the reported information, along with a list of the FCCOC’s
       findings and recommendations regarding the Pilot Program, to the Governor, the President of the
       Senate, the Speaker of the House of Representatives, and the minority leaders of the Senate and the
       House of Representatives.

STORAGE NAME: h1461b.TIE                                                                                    PAGE: 6
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       The bill provides that the Pilot Program expires on June 30, 2026, unless otherwise provided by law,
       but provides that any partial payment plan established prior to June 30, 2026, remains valid even if the
       Pilot Program expires by operation of law.

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

   B. SECTION DIRECTORY:
       Section 1: Creates s. 322.755, F.S., relating to Drive for Success Pilot Program.
       Section 2: Provides an effective date of July 1, 2022.


                           II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           The bill may have an indeterminate, positive impact to state revenues. For driver license
           suspensions, individuals must pay a $45 fee, of which $15 is deposited into the General Revenue
           Fund and $30 into the Highway Safety Operating Trust Fund when the reinstatement is performed
           by DHSMV. For driver license revocations, individuals must pay a $75 fee, of which $35 is
           deposited into the General Revenue Fund and $40 into the Highway Safety Operating Trust Fund
           when the reinstatement is performed by DHSMV. It is unknown how many individuals will take
           advantage of the Pilot Program who would not otherwise pay to have their licenses reinstated
           during the same fiscal year; therefore, the positive fiscal impact to state revenues is indeterminate.
           Additionally, to the extent that additional court fees are collected for reinstatements, there may be
           an indeterminate, positive fiscal impact to the State Attorney Trust Fund, Indigent Criminal Defense
           Trust Fund, and the State Courts Revenue Trust Fund.

       2. Expenditures:
           The bill may have a negative indeterminate fiscal impact on DHSMV by authorizing a Pilot Program
           participant’s license to be reinstated without paying a reinstatement fee.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           The bill may assist the clerks in recouping outstanding court costs and fees not otherwise
           recoverable.

       2. Expenditures:
           The bill will require additional work for clerks of court in the six counties implementing the Pilot
           Program, however, any additional expenditures required to complete the extra work will likely be
           insignificant, particularly in light of the potential for recouping outstanding obligations from persons
           with suspended driver licenses.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill may allow individuals with financially-based driver license revocations or suspensions to
       reinstate their licenses, purchase motor vehicle insurance, and travel to work, which may have an
       overall positive financial impact for such individuals.

   D. FISCAL COMMENTS:
       None.



STORAGE NAME: h1461b.TIE                                                                                      PAGE: 7
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                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. The county/municipal mandates provision of Art. VII, section 18, of the Florida
          Constitution may apply because this bill requires six counties to participate in the Pilot Program.
          However, an exception may apply because funding the Pilot Program will likely have an insignificant
          impact, particularly in light of the potential for recouping outstanding obligations from persons with
          suspended driver licenses.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       Not applicable.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.

                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   On February 8, 2022, the Criminal Justice & Public Safety Subcommittee adopted a strike-all amendment
   and reported the bill favorably as a committee substitute. The amendment made the following changes to
   the bill:
        Renamed the Pilot Program the “Drive for Success Pilot Program.”
        Created the program within the FCCOC to be administered in at least six counties, selected by the
             FCCOC.
        Required the participating clerks of court to:
                 o Contact persons whose driver licenses are suspended rather than requiring such persons to
                     contact the clerk;
                 o Test, at a minimum, the efficacy of communicating with Pilot Program participants via
                     telephone, text message, e-mail, or other electronic means to notify participants of payment
                     due dates and missed payments; and
                 o Establish consequences for participants who fail to make timely payments, including, but not
                     limited to, specifying the period of time after which a participant’s license may be re-
                     suspended for failing to make payments.
        Did not require a participant to pay a driver license reinstatement fee to have his or her license
             reinstated.
        Required the participating clerks of court to report specified data to the FCCOC and required the
             FCCOC to subsequently provide such information, along with recommendations regarding the Pilot
             Program, to the Governor and specified members of the Legislature.
        Provided that the Pilot Program expires on June 30, 2026.

This analysis is drafted to the committee substitute as approved by the Criminal Justice & Public Safety
Subcommittee.




STORAGE NAME: h1461b.TIE                                                                                   PAGE: 8
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           CS/HB 1461                                                                                           2022




    1                                         A bill to be entitled
    2              An act relating to reinstatement of suspended driver
    3              licenses; creating s. 322.755, F.S.; creating the
    4              Drive for Success Pilot Program within the Florida
    5              Clerks of Court Operations Corporation to assist
    6              certain persons in reinstating suspended driver
    7              licenses; requiring administration of the program by
    8              clerks of court in certain counties; authorizing
    9              collaboration with the Florida Association of Court
10                 Clerks and Comptrollers for certain purposes;
11                 providing duties of the clerks of court; prohibiting
12                 eligibility under certain circumstances; requiring
13                 reinstatement of a participant's driving privilege
14                 under certain circumstances; requiring the clerks of
15                 court to submit reports to the Florida Clerks of Court
16                 Operations Corporation; requiring the Florida Clerks
17                 of Court Operations Corporation to submit a report to
18                 the Governor and Legislature; providing for expiration
19                 of the pilot program on a certain date; providing an
20                 effective date.
21
22         Be It Enacted by the Legislature of the State of Florida:
23
24                 Section 1.         Section 322.755, Florida Statutes, is created
25         to read:

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        CS/HB 1461                                                                                           2022




26              322.755        Drive for Success Pilot Program.—
27              (1)         There is created within the Florida Clerks of Court
28      Operations Corporation the Drive for Success Pilot Program. The
29      purpose of the pilot program is to assist persons whose driver
30      licenses have been suspended, and who have unpaid traffic
31      citations or unpaid court costs, fines, or fees, in reinstating
32      their driver licenses.
33              (2)         The Drive for Success Pilot Program shall be
34      administered by the clerks of court in at least six counties
35      selected by the Florida Clerks of Court Operations Corporation.
36      Each clerk of court may collaborate with the Florida Associat ion
37      of Court Clerks and Comptrollers to promote and develop
38      communications regarding the pilot program.
39              (3)         Each clerk of court participating in the pilot program
40      must make an effort to contact persons whose driver licenses are
41      suspended for failure to pay court-ordered financial
42      obligations, including unpaid traffic citations or unpaid court
43      costs, fines, or fees, and encourage such persons to establish a
44      partial payment agreement for the fulfillment of such
45      obligations under the pilot program.
46              (4)         A person is not eligible for driver license
47      reinstatement under the pilot program if his or her driver
48      license is suspended or revoked due to:
49              (a)         Failure to fulfill a court-ordered child support
50      obligation;

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        CS/HB 1461                                                                                           2022




51              (b)         A violation of s. 316.193;
52              (c)         Failure to complete a driver training program, driver
53      improvement course, or alcohol or substance abuse education or
54      evaluation program required under s. 316.192, s. 316.193, s.
55      322.2616, or s. 322.271;
56              (d)         A traffic-related felony; or
57              (e)         Designation as a habitual traffic offender under s.
58      322.264.
59              (5)         For each person who consents to participate in the
60      pilot program and establishes a partial payment agreement, the
61      clerk of court must:
62              (a)         Test, at a minimum, the efficacy of communicating with
63      the person via telephone, text message, e-mail, or other
64      electronic means to notify the person of a payment's due date in
65      advance and, if necessary thereafter, to notify the person of a
66      missed payment; and
67              (b)         Establish consequences for failing to make timely
68      payments under the partial payment agreement, including, but not
69      limited to, specifying the period of time after which his or her
70      license may be suspended for failing to make a payment.
71              (6)         Upon submission of the first payment in a partial
72      payment agreement to the clerk of court, the clerk shall release
73      the suspension of the person's driver license in the department
74      database, or shall issue a written release for the person to
75      present to the department or an authorized agent of the

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         CS/HB 1461                                                                                           2022




 76      department, after which the person's driving privilege shall be
 77      reinstated.
 78              (7)(a)        By December 31, 2024, each clerk of court
 79      participating in the pilot program shall submit a report to the
 80      Florida Clerks of Court Operations Corporation that includes:
 81              1.      The number of cases paid in full.
 82              2.      The number of cases for which a partial payment
 83      agreement is established.
 84              3.      The number of driver license reinstatements.
 85              4.      The number of driver licenses made eligible for
 86      reinstatement.
 87              5.      The amount of fees and costs collected during the 3
 88      years preceding administration of the pilot program and
 89      throughout the duration of the pilot program.
 90              6.      The personnel, operating, security, and other
 91      expenditures incurred by the clerk of court.
 92              7.      The number of cases that fail to comply with a partial
 93      payment agreement and subsequently result in driver license
 94      suspension.
 95              (b)         By February 28, 2025, the Florida Clerks of Court
 96      Operations Corporation shall compile the reports received under
 97      paragraph (a) and submit such reports, along with a list of its
 98      findings and recommendations regarding the pilot program, to the
 99      Governor, the President of the Senate, the Speaker of the House
100      of Representatives, and the minority leaders of the Senate and

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         CS/HB 1461                                                                                           2022




101      the House of Representatives.
102              (8)         The Drive for Success Pilot Program shall expire on
103      June 30, 2026, unless otherwise provided by law. The expiration
104      of the pilot program shall not affect the validity of a partial
105      payment agreement established before June 30, 2026.
106              Section 2.         This act shall take effect July 1, 2022.




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                                                                                                          hb1461-01-c1
PCS fo r HB 737
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     PCS for HB 737 Electric Vehicle Transportation Electrification Plan
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 Florida, the Public Service Commission (PSC) regulates the rates, terms, and conditions of retail electric
service provided by investor-owned electric utilities (IOUs), including electric vehicle (EV) charging
incorporated into an IOU’s rate base. A non-utility providing EV charging to the public is not considered the
retail sale of electricity and is not subject to PSC regulation. These non-utility EV charging providers pay the
commercial electricity rate of the local electric utility.

The bill requires the PSC to adopt rules for an EV transportation electrification plan to facilitate the deployment
of EV charging infrastructure in a competitively neutral manner. These rules must be proposed by January 1,
2023, and adopted by January 1, 2024. The PSC’s rules must:
           Promote investment in publicly available EV charging stations in a competitively neutral manner
            prioritizing and encouraging private investment in and private ownership and operation of EV
            charging infrastructure.
           Establish policies that stimulate innovation, competition, private investment, and customer choice in
            EV charging infrastructure.
           Establish mechanisms which support the efficient and cost-effective use of the electric grid in a
            manner that supports EV charging infrastructure.
           Establish incentives that support private investment in EV charging equipment.
           Establish policies on a prospective basis, prohibiting IOUs from using rate base investment in the
            ownership and operation of EV charging stations and limit cost recovery to distribution level
            infrastructure on the utility side of the meter.
           Stimulate fair and reasonable electricity pricing through IOUs’ tariffs which promote the widespread
            offering of EV charging.

The bill authorizes an entity that provides EV charging stations to the public to intervene and participate in any
PSC proceeding involving rates, terms, or conditions of service for EV charging to be offered to the public.

The bill does not prohibit an IOU from providing EV charging stations directly to the public through a separate,
unregulated entity on the same terms and conditions as any other provider of EV charging stations.

The bill does not appear to impact state or local government revenues or 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: pcs0737.TIE
DATE: 2/11/2022
                                                          FULL ANALYSIS

                                                  I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Current Situation

         Electric Vehicles

         Electric vehicles (EVs)1 offer higher fuel efficiency and improved air quality compared to vehicles with
         internal combustion engines.2 Increased interest in EVs is driven by higher gas prices and greenhouse
         gas emission concerns.3 However, limited EV range, limited charging infrastructure, and range anxiety4
         have deterred many drivers from considering EVs.5 As advancements in EV technology continue, EV
         manufacturing increases, and EV prices become more accessible, representatives in both government
         and the private sector suggest that successful adoption of EV use is heavily dependent on the
         accessibility of charging stations.6

         The U.S. Department of Energy’s Alternative Fuels Data Center uses the term “electric-drive vehicles”
         to collectively refer to the following:
              Hybrid electric vehicles powered by an internal combustion engine that runs on conventional or
                 alternative fuel and an electric motor using energy stored in a battery. The battery is charged
                 through regenerative braking and the internal combustion engine, not by plugging in to charge.
              Plug-in hybrid electric vehicles powered by an internal combustion engine and an electric motor
                 using energy stored in a battery. These vehicles can operate in all-electric mode through a
                 larger battery, which can be plugged in to an electric power source to charge.
              All-electric vehicles use a battery to store the electric energy that is charged by plugging the
                 vehicle into charging equipment. EVs always operate in all-electric mode and have typical
                 driving ranges from 150 to 300 miles.7

         EV Charging Equipment

         EVs are becoming increasingly popular in the United States, prompting a focus on the installation of
         electric vehicle charging infrastructure. Electric vehicle charging stations have EV supply equipment
         (EVSE) capable of charging an EV’s battery.8 Charging station site hosts may provide such stations
         free of charge or collect revenue for electric vehicle charging through subscription, pay-per-charge, or
         pay-for-parking systems.9

         EV charging equipment is classified based on the rate of charge.10 Charging times vary, depending on
         the depletion level of the battery, how much energy the battery holds, the type of battery, and the type
         of supply equipment.11 Charging times can range from less than 20 minutes to more than 20 hours.12
         Potential driving distance ranges from:

1
  Section 320.01(36), F.S., defines the term “electric vehicle” to mean a motor vehicle that is powered by an electric motor th at draws
current from rechargeable storage batteries, fuel cells, or other sources of electrical current.
2 Federal Highway Administration (FHWA), FHWA NHTS Brief, Electric Vehicle Feasib ility, July 2016, p. 1, available at

http://nhts.ornl.gov/briefs/EVFeasibility20160701.pdf (last visited Feb. 4, 2022).
3 Id.
4
  Range anxiety is the feeling an EV driver has when the battery charge i s low and the usual sources of electricity are unavailable,
striking a fear of being stranded. J.D. Power, What is Range Anxiety with Electric Vehicles? https://www.jdpower.com/cars/shopping-
guides/what-is-range-anxiety-with-electric-vehicles (last visited Feb. 4, 2022).
5 FHWA, supra note 2, at 1-2.
6 Id.
7 U.S. Dept. Energy, Alternative Fuels Data Center, Hyb rid and Plug-In Electric Vehicles, https://afdc.energy.gov/vehicles/electric.html

(last visited Feb. 8, 2022).
8 See U.S. Dept. Energy, Plug-In Electric Vehicle Handb ook for Pub lic Charging Station Hosts (April 2012), availab le at

https://www.afdc.energy.gov/pdfs/51227.pdf (last visited Feb.11, 2022).
9 Id.at p. 9.
10 U.S. Dept. Energy, AFDC, Developing Infrastructure to Charge Plug-In Electric Vehicles,

https://afdc.energy.gov/fuels/electricity_infrastructure.html (last visited Feb. 11, 2022).
11 Id.

STORAGE NAME: pcs0737.TIE                                                                                                         PAGE: 2
DATE: 2/11/2022
                 Two to five miles of range per one hour of charging for Level 1 supply equipment;
                 Ten to twenty miles per one hour of charging for Level 2 supply equipment; and
                 Sixty to eighty miles per twenty minutes of charging for direct-charge fast-charge (DCFC) supply
                  equipment.13

           For most drivers, charging occurs overnight at home, using Level 1 or AC Level 2 charging
           equipment.14

                  Level 1 Charging

           Level 1, typically at-home charging, through a power cord which comes as standard equipment on new
           EVs, only requires a standard 120-volt outlet, so no additional equipment is required.15 This can add
           about 40 miles of range in an eight hour overnight charge for a mid-size EV.16 Typically, Level 1
           charging is used when only a 120 volt-outlet is available, but can easily be enough to supply a typical
           driver’s needs.17 As of 2020, fewer than 5 percent of public EV charging ports in the United States were
           Level 1.18

                  Level 2 Charging

           Level 2, typically home and public charging, commonly requires a charging unit on a 240-volt circuit,
           such as one used for home appliances like a clothes dryer. 19The charging rate depends on the rate at
           which a vehicle can accept a charge and the maximum current available. 20 This method may require
           purchasing an at-home charging unit and modifications to a home electric system, but charges from
           two to eight times faster than a Level 1.21 These chargers are most common at public charging places
           like offices, grocery stores, and parking garages.22 As of January 2022, nearly 80 percent of all public
           EV charging ports in the United States were Level 2.23

                  Direct Charge Fast Chargers (DCFC)

           DCFC, typically public charging, allows for rapid charging along heavy traffic corridors. 24 DCFCs are
           best used for longer travel distances, vehicles heavily used throughout the day like taxis, and for drivers
           with limited access to at-home charging, such as multi-unit renters.25 As of January 2020, over 18
           percent of all public EV charging ports in the United States were DCFC.26 There are three types of
           DCFC systems, depending on the type of charge port on the vehicle:
                SAE Combined Charging System, allowing a driver to use the same charge port when charging
                   with Level 1, Level 2, or DCFC.
                The CHAdeMO connector, which is the most common.




12 Id.
13
     Id.
14 U.S. Dept. Energy, AFDC, Charging Plug-In Electric Vehicles at Home, https://afdc.energy.gov/fuels/electricity_charging_home.html

(last visited Jan 13, 2022).
15 AFDC, Developing Infrastructure to Charge Plug-In Electric Vehicles, supra note. 10.
16 Id.
17
   Id.
18 Id.
19 Id.
20 Union of Concerned Scientists, Electric Vehicle Charging, Types, Time, Cost and Savings (March 2018) available at

https://www.ucsusa.org/resources/electric-vehicle-charging-types-time-cost-and-savings (last visited Feb. 11, 2022).
21 Id.
22 Id.
23 See U.S. Dept. of Energy, Alternative Fueling Station Counts b y State, https://www.afdc.energy.gov/fuels/stations_counts.html (last

visited Feb.11, 2022).
24 AFDC, Developing Infrastructure to Charge Plug-In Electric Vehicles, supra n. 10.
25 Union of Concerned Scientists, Electric Vehicle Charging, Types, Time, Cost and Savings, https://www.ucsusa.org/resources/electric-

vehicle-charging-types-time-cost-and-savings (last visited Feb. 11, 2022).
26 See U.S. Dept, Energy, Alternative Fueling Station Counts b y State, supra n. 24.

STORAGE NAME: pcs0737.TIE                                                                                                     PAGE: 3
DATE: 2/11/2022
                  Tesla, which is a unique, proprietary connector that works for all Tesla charging levels, including
                   their fast charging option, called Supercharge. Tesla does not have a CHAdeMO port, but Tesla
                   sells an adapter.27

          EV Charging in Florida

          In Florida, investor-owned electric utilities (IOUs) serve exclusive territories and the Public Service
          Commission (PSC) has broad regulatory authority over rate setting, bulk power grid planning, safety
          inspection, and service reliability. IOU rates are set based upon the cost of service. However, the PSC
          does not regulate the rates or service quality for municipal electric utilities or rural electric
          cooperatives.28

          Under Florida law, the third-party sale of electricity to a retail customer is not permitted.29 In 2012, the
          Legislature created an exemption for EV charging by declaring that the provision of EV charging to the
          public by a non-utility is not considered a retail sale of electricity. Therefore, the rates, terms, and
          conditions of EV charging by a non-utility are not subject to PSC regulation.30

          In 2020,31 the Legislature required the Department of Transportation (DOT) to coordinate, develop and
          recommend a Master Plan for the development of EV charging infrastructure along the State Highway
          System. DOT, in consultation with the Florida Department of Environmental Protection, the PSC, and
          other state agencies, developed the EV Master Plan (EVMP) with extensive public engagement. 32 The
          stated goals of the EVMP were to:
               Support both short-range and long-range electric vehicle travel;
               Encourage the expansion of electric vehicle use in the state; and
               Adequately serve evacuation routes in the state.

          In July 2021, the EVMP was delivered, providing a comprehensive course of action to efficiently and
          effectively provide for EV charging infrastructure.33 The EVMP discusses:
               Benefits of electrified mobility;
               Barriers to adoption and industry trends;
               Installation considerations;
               Fleet considerations and future advancements;
               Utility regulatory considerations;34
               Strategies to develop charging supply;
               EV market adoption;
               Impacts to transportation funding;
               Resiliency and emergency evacuations;
               Identification of potential new EVSE locations;
               EV infrastructure on the state highway system; and
               Recommendations.

          EV Charging Infrastructure Provided by IOUs

          The PSC has approved EV charging programs for three of the four IOUs under its jurisdiction.35

          Tampa Electric Company



27 AFDC, Developing Infrastructure to Charge Plug-In Electric Vehicles, supra n. 12.
28 Id at 15.
29 Id at 16.
30 Ch. 2012-119, Laws of Fla.; S. 366.94(1), F.S.
31 Ch. 2020-21, Laws of Fla.
32 Id.
33 Id.
34 Pages 15-22 of the EVMP discuss utility regulatory considerations.
35 Public Service Commission (PSC) Agency Analysis of 2022 House Bill 737, p.1. (Dec.15, 2021).

STORAGE NAME: pcs0737.TIE                                                                                       PAGE: 4
DATE: 2/11/2022
           On April 1, 2021, the PSC approved Tampa Electric Company’s (TECO) EV charging pilot program.
           Under its pilot program, TECO will spend up to $2 million to purchase, install, own, and maintain 200
           EV charging stations. TECO will pay up to $5,000 per Level 2 charger towards the cost of installation at
           workplaces, public/retail establishments, and multi-unit dwellings, and the full cost of installation for
           income-qualified sites and government locations. TECO also plans to install four DCFCs. TECO
           anticipated it would take approximately 12 months to complete deployment of the EV charging stations,
           after which the pilot program will run for four years. The PSC authorized TECO to begin recovery of the
           cost of its pilot program in its rate base.36

           Florida Power & Light

           In 2019, Florida Power & Light Company (FPL)37 began a three-year pilot program, known as
           EVolution, which targeted the installation of 1,000 EV charging ports. The program’s primary objective
           was to gather information prior to mass EV adoption to better plan for and design FPL’s EV charging
           investments. In 2020, the PSC approved a new FPL tariff with specific EV charging rates for both utility-
           owned and non-utility owned charging stations. The PSC required FPL to submit annual reports.38

           During its 2021 rate case, FPL reached a settlement agreement with other parties to the rate case. The
           settlement expanded FPL’s current EV charging pilot program to include the following: a public fast
           charging program, a residential EV charging services pilot, a commercial EV charging services pilot,
           new technologies and software, and education and awareness. On October 26, 2021, the PSC
           approved FPL’s expanded EV pilot programs as a component of the rate case settlement agreement.
           The total investment is forecast to be $175 million over the four-year period of 2022-2025. Under the
           terms of the settlement agreement, FPL may include the costs associated with the EV programs in rate
           base and recover the costs through base rates.39

           Duke Energy Florida

           In 2017, as part of a settlement agreement in Duke Energy Florida’s (DEF) rate case, the PSC
           approved a five-year EV charging pilot program authorizing DEF to invest $8 million to install and own a
           minimum of 530 charging ports.40

           In 2021, as part of a subsequent DEF rate case, the PSC approved a new settlement agreement that
           created a permanent EV charging station program. DEF forecasted a cost of $62.9 million over the
           four-year period of 2022-2025. Under the permanent EV charging program, DEF plans to implement a
           residential EV time-of use credit program for off-peak charging, a rebate program for commercial and
           industrial customer charging stations, and a DEF-owned DCFC program. The DCFC program will allow
           DEF to install an additional 100 utility-owned DCFC stations and includes a new tariff for a Fast Charge
           Fee that will be collected from EV drivers using DEF-owned DCFC stations. Reasonable costs of the
           programs will be included in DEF’s rate base and recovered through its base rates.41

           Public EV Charging Provided by Non-Utilities

           As previously stated, the provision of EV charging to the public by a non-utility is not considered a retail
           sale of electricity and is not regulated by the PSC. However, entities offering EV charging to the public
           must pay the electric utility for the electricity. EV charging providers typically pay rates as commercial
           customers.

           Intervention in PSC Proceedings




36 Id.
37 FPL acquired Gulf Power in 2019. These IOUs merged for ratemaking purposes as of January 3, 2022.
38 PSC supra note 36 at 1-2.
39 Id. at 1-2.
40 Id. at 2.
41 Id. at 2.

STORAGE NAME: pcs0737.TIE                                                                                       PAGE: 5
DATE: 2/11/2022
         Pursuant to Rule 28-106.205, F.A.C.,42 persons, other than the original parties to a pending
         proceeding, who have a substantial interest in the proceeding and who desire to become parties may
         move for leave to intervene in a PSC proceeding. Motions for leave to intervene must include
         allegations sufficient to demonstrate that the intervenor is entitled to participate in the proceeding as a
         matter of constitutional or statutory right or pursuant to PSC rule, or that the intervenor’s substantial
         interests are subject to determination or will be affected through the proceeding. 43

         To have standing in a PSC proceeding, an intervenor must meet a two-prong standing test. The
         intervenor must show that it will suffer injury in fact which is of sufficient immediacy to entitle it to a
         formal administrative hearing, and that the substantial injury is of a type or nature which the proceeding
         is designed to protect.44,45

         Effect of the Bill

         The bill requires the PSC to adopt rules for an EV transportation electrification plan that facilitates the
         deployment of EV charging infrastructure in a competitively neutral manner. The PSC must propose its
         rules by January 1, 2023, with final adoption by January 1, 2024. The PSC’s rules must:
              Promote investment in publicly available Level 2 and DCFC stations in a competitively neutral
                 manner prioritizing and encouraging private investment in and private ownership and operation
                 of EV charging infrastructure.
              Establish policies stimulating innovation, competition, private investment, and customer choice
                 in EV charging infrastructure, including equipment and networks.
              Establish mechanisms, including incentives, supporting the efficient and cost-effective use of
                 the electric grid in a manner that supports EV charging infrastructure.
              Establish incentives supporting private investment in charging equipment.
              Establish policies, to be applied on a prospective basis, prohibiting IOUs from using rate base
                 investment in owning and operating of EV new charging stations and limiting public utility cost
                 recovery to distribution level infrastructure on the utility side of the meter.
              Stimulate fair and reasonable electricity pricing through IOUs’ tariffs promoting the widespread
                 offering of EV charging.

         The bill provides that, an entity that provides EV charging stations to the public may intervene and
         participate in any IOU’s ratemaking proceeding or any other PSC proceeding involving rates, terms, or
         conditions of service, including the rate structure paid by or proposed to be paid by customers for EV
         charging to be offered to the public.

         The bill does not prohibit an IOU from providing new EV charging stations directly to the public through
         a separate, unregulated entity on the same terms and conditions as any other provider of EV charging
         stations.

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

    B. SECTION DIRECTORY:
         Section 1           Creates s. 366.945, F.S., relating to an electric vehicle transportation electrification plan.

         Section 2           Provides an effective date.


                                II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

42 Rule 28-106, F.A.C.,   relates to decisions determining substantial interests.
43 PSC Order No. PSC-2021-0189-PCO-EI, in Docket No. 20210015, May 26, 2021. available at

https://www.floridapsc.com/library/filings/2021/04266-2021/04266-2021.pdf (last visited Feb. 9, 2022).
44 Agrico Chemical Company v. Department of Environmental Regulation. 406 So. 2d 478, 482 (Fla. 2d DCA 1981).
45 PSC supra note 36

STORAGE NAME: pcs0737.TIE                                                                                           PAGE: 6
DATE: 2/11/2022
        1. Revenues:
             None.

        2. Expenditures:
             None.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
             None.

        2. Expenditures:
             None.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        The bill may reduce costs to some EV charging station owners.

    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:
         The bill requires the PSC to adopt rules for an EV transportation electrification plan meeting specified
         requirements. These rules must be proposed by January 1, 2023, and adopted by January 1, 2024.

    C. DRAFTING ISSUES OR OTHER COMMENTS:
        The PSC asserts that neither current law, nor the bill, give it jurisdiction over non-utilities that provide
        EV charging. It is not clear as to whether the PSC, through rulemaking, could prioritize and encourage
        private investment, or stimulate competition and customer choice in the EV charging market since such
        functions are outside of its statutory jurisdiction.46


                             IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.




46 PSC supra note 36 at 2.

STORAGE NAME: pcs0737.TIE                                                                                    PAGE: 7
DATE: 2/11/2022
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           PCS for HB 737                                                                                       2022




    1                                         A bill to be entitled
    2              An act relating to an electric vehicle transportation
    3              electrification plan; creating s. 366.945, F.S.;
    4              requiring the Public Service Commission to adopt rules
    5              for an electric vehicle transportation electrification
    6              plan that meet certain requirements; providing
    7              timeframes for the commission to propose the plan's
    8              rules and for final rule adoption; authorizing
    9              entities that provide electric vehicle charging
10                 stations to the public to intervene and participate in
11                 certain commission proceedings involving rates, terms,
12                 or conditions of service for offering electric vehicle
13                 charging to the public; providing construction;
14                 providing an effective date.
15
16                 WHEREAS, the Legislature finds that the promotion and
17         development of electric vehicle infrastructure in this state
18         through competitively neutral policies for investor -owned
19         electric utility rates, terms, and conditions for electric
20         vehicle charging stations is in the public interest, and
21                 WHEREAS, widespread deployment of electric vehicle charging
22         stations is consistent with the public policy of this state, and
23                 WHEREAS, the expanded use of electric vehicles provides
24         this state with increased energy security and health and
25         environmental benefits by reducing the consumption of fossil

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        PCS for HB 737                                                                                       2022




26      fuels and street-level air pollutants, carbon dioxide, and
27      nitrogen oxides, and
28              WHEREAS, electric vehicle charging station infrastructure
29      has the potential to lessen climate impacts, expand
30      infrastructure investment, improve environmental and economic
31      conditions, and help make this state a leader in new and
32      innovative technologies, NOW, THEREFORE,
33      Be It Enacted by the Legislature of the State of Florida:
34
35              Section 1.          Section 366.945, Florida Statutes, is created
36      to read:
37              366.945         Electric vehicle transportation electrification
38      plan.—
39              (1)          The commission shall adopt rules for an electric
40      vehicle transportation electrification plan that facilitates the
41      deployment of electric vehicle charging infrastructure in a
42      competitively neutral manner.
43              (a)          The rules must:
44              1.       Promote investment in publicly available Level 2 and
45      direct-current, fast-charging stations in a competitively
46      neutral manner that prioritizes and encourages private
47      investment in and private ownership and operation of electric
48      vehicle charging infrastructure.
49              2.       Establish policies that stimulate innovation,
50      competition, private investment, and customer choice in electric

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        PCS for HB 737                                                                                       2022




51      vehicle charging infrastructure, including equipment and
52      networks.
53              3.       Establish mechanisms, including incentives, which
54      support the efficient and cost-effective use of the electric
55      grid in a manner that supports electric vehicle charging
56      infrastructure.
57              4.       Establish incentives that support private investment in
58      charging equipment.
59              5.       Establish policies that, on a prospective basis,
60      prohibit investor-owned electric utilities from using rate base
61      investment in the ownership and operation of new electric
62      vehicle charging stations and limit public utility cost recovery
63      to distribution level infrastructure on the utility side of the
64      meter.
65              6.       Stimulate fair and reasonable electricity pricing
66      through investor-owned electric utilities' tariff provisions
67      which will promote the widespread offering of electric vehicle
68      charging.
69              (b)          The commission shall propose such rules by January 1,
70      2023, with final rule adoption by January 1, 2024.
71              (2)          An entity that provides electric vehicle charging
72      stations to the public may intervene and participate in any
73      investor-owned electric utility's ratemaking or other commission
74      proceeding involving rates, terms, or conditions of service,
75      including the rate structure paid by or proposed to be paid by

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        PCS for HB 737                                                                                       2022




76      customers for electric vehicle charging offered to the public.
77              (3)          This subsection does not prohibit an investor -owned
78      electric utility from providing electric vehicle charging
79      stations directly to the public through a separate, unregulated
80      entity on the same terms and conditions as any other provider of
81      electric vehicle charging stations.
82              Section 2.          This act shall take effect July 1, 2022.




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