Meeting Packet — Energy, Communications & Cybersecurity Subcommittee, January 5, 2023

Summary

Meeting packet for the Energy, Communications & Cybersecurity Subcommittee of the Florida House of Representatives Commerce Committee, for the meeting on Thursday, January 5, 2023, from 10:00 AM to 11:00 AM in Reed Hall. It contains the meeting agenda (call to order, roll call, welcome and opening remarks, introduction of members, subcommittee overview, closing remarks, adjournment) and a statement of jurisdiction covering utilities, telecommunications services, energy policy and cybersecurity policy. Key agencies described include the Florida Public Service Commission, the Office of Public Counsel and the Department of Management Services. The packet also summarizes bills, including provisions on cybersecurity incident reporting and the Florida Digital Service.

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

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               Energy, Communications &
              Cybersecurity Subcommittee
                   Thursday, January 5, 2023
                     10:00 AM - 11:00 AM
                     Reed Hall (102 HOB)



                       Meeting Packet




Paul Renner                                    Mike Giallombardo
Speaker                                                    Chair
                    The Florida House of Representatives
                                           Commerce Committee
                   Energy, Communications & Cybersecurity Subcommittee
Paul Renner                                                                                    Mike Giallombardo
Speaker                                                                                                    Chair


                                         Meeting Agenda
                                         Thursday, January 5, 2023
                                          10:00 AM – 11:00 AM
                                           Reed Hall (102 HOB)


  I.   Call to Order

 II.   Roll Call

III.   Welcome and Opening Remarks

 IV.   Introduction of Members

 V.    Subcommittee Overview

VI.    Closing Remarks

VII.   Adjournment




                   303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                                   (850) 717-4870
         E NERGY , C OMMUNICATIONS & C YBERSECURITY
                        S UBCOMMITTEE
                                 C OMMERCE C OMMITTEE

ECC Staff: 303 House Office Building - (850) 717-4870
Cochran Keating – Policy Chief
Cochran.Keating@myfloridahouse.gov

Lydia Walsh – Analyst
Lydia.Walsh@myfloridahouse.gov

Amie Marks – Administrative Assistant
Amie.Marks@myfloridahouse.gov


                            S UBCOMMITTEE J URISDICTION
The Energy, Communications & Cybersecurity Subcommittee considers matters related to utilities,
including the state’s regulation of electric, gas, water, and sewer utilities; telecommunications services;
energy policy; and cybersecurity policy.

The subcommittee’s oversight responsibilities include the following state entities: the Florida Public
Service Commission; the Office of Public Counsel; the Florida Digital Service and the Cybersecurity
Advisory Council within the Department of Management Services; the Governor and Cabinet sitting as
the Utility Siting Board; and the Florida Energy Systems Consortium comprised of the state
universities. The subcommittee also oversees energy and telecommunications-related programs and
activities within the Department of Agriculture and Consumer Services, including the Office of
Energy; the Department of Economic Opportunity, including the Office of Broadband; the Department
of Environmental Protection, including the Siting Coordination Office; and the Department of
Management Services, including the Division of Telecommunications.

                                   KEY AGENCIES/ENTITIES
Florida Public Service Commission (PSC)

The PSC is a 5-member appointed body whose primary responsibility is to ensure that Florida
consumers receive their most essential services – electricity, natural gas, telephone, water, and
wastewater – in a safe, affordable, and reliable manner. 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. The PSC is an arm of the Legislature.



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The PSC has regulatory authority over all aspects of the operations of four investor-owned electric
utilities and limited regulatory authority over 34 municipally-owned electric utilities and 18 rural
electric cooperatives. In addition, the PSC has regulatory authority over eight investor-owned natural
gas utilities and limited regulatory authority over 27 municipally-owned natural gas utilities and four
special gas districts. As of 2021, the PSC had regulatory authority over 10 incumbent local exchange
companies, 249 competitive local exchange companies, and 27 pay telephone service companies.
Finally, as of 2021, the PSC had regulatory authority over 124 investor-owned water and/or
wastewater utilities in 38 of Florida’s 67 counties.

Office of Public Counsel

As an office housed within the Legislature, the Public Counsel has the statutory duty to provide legal
representation for the people of the State of Florida in proceedings before the Florida Public Service
Commission involving electric utilities, gas utilities, water utilities, and wastewater utilities, and in
proceedings before counties that elect jurisdiction over water and wastewater utilities. The Public
Counsel performs independent analyses, presents testimony of expert witnesses, cross-examines
witnesses, and files recommendations and briefs in those cases. The Public Counsel does not pursue
cases regarding utilities owned by local governments or cooperatives, nor does the Public Counsel
pursue criminal or other individual matters. The Public Counsel is independent from any regulatory
authority.

Department of Management Services (DMS)
   • Florida Digital Service
   • Cybersecurity Advisory Council
   • Division of Telecommunications

The Florida Digital Service (FDS) was created in 2021 within DMS. Acting through FDS, DMS is the
lead entity responsible for establishing standards and processes for assessing state agency
cybersecurity risks and determining appropriate security measures consistent with generally accepted
best practices for cybersecurity, including the National Institute of Standards and Technology
Cybersecurity Framework. Florida’s Cybersecurity Advisory Council was established by the
Legislature in 2021. The Council was created within DMS to assist state agencies with protecting their
information technology resources from cyber threats and incidents.

Through its Division of Telecommunications, DMS has the following responsibilities for statewide
coordination of 911 and enhanced 911 (E911) services:
   • Statewide Emergency Communications Number E911 State Plan
   • Coordinating effective delivery of 911 services statewide
   • Assisting counties with technical standards and operational capabilities
   • Assisting counties with designing and implementing new systems
   • Inspecting and issuing certificates to all Public Service Answering Points (PSAP) in
       compliance with the 911 Plan
   • Assisting with county 911 coordinator training
   • Monitoring the Florida Public Service Commission (FPSC), Federal Communications
       Commission (FCC), and other regulatory entities on 911/E911 issues.


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Department of Agriculture and Consumer Services (DACS)
   • Office of Energy

The Office of Energy within DACS is the primary organization for state energy programs and policies.
The Office holds a variety of responsibilities, including administering financial incentive programs;
administering the provisions of the Florida Energy and Climate Protection Act; representing Florida in
the Southern States Energy Compact; performing or coordinating the functions of federal energy
programs delegated to the state; and providing recommendations to the Governor and the Legislature.
The Office also works cooperatively with other state entities to develop state energy and climate
change policies and programs.

Department of Environmental Protection (DEP)
   • Division of Water Resource Management, Siting Coordination Office

The Siting Coordination Office within DEP’s Division of Water Resource Management coordinates
the interagency review and certification for siting, building, and operating electrical power plants
(including nuclear power), natural gas pipelines, and electrical transmission lines. It administers
Florida’s environmental regulatory programs with respect to energy production and transportation.
DEP’s Siting Coordination Office and General Counsel’s Office provide administrative and legal
support for the certification process. Certification is a comprehensive state license which includes any
regulatory activity applicable under state, regional, and local regulations for the facility. Though DEP
is responsible for coordinating the certification process, the Governor and Cabinet, sitting as the Utility
Siting Board, issue siting certifications.

Electric and magnetic fields generated by electrical transmission lines are also regulated by DEP. The
Siting Coordination Office reviews required compliance reports submitted by companies that construct
or operate transmission lines and assists county tax appraisers in determining eligibility for ad valorem
tax reductions for air or water pollution control equipment.

Department of Economic Opportunity (DEO)
   • Office of Broadband

The Office of Broadband within DEO works with local and state government agencies, community
organizations, and private businesses to increase the availability and effectiveness of broadband
Internet service throughout the state, specifically in small and rural communities. Through these
partnerships, the Office of Broadband encourages investment in grant funding opportunities that focus
on the expansion of broadband Internet service.

Cyber Florida
The Florida Center for Cybersecurity, also known as Cyber Florida, was created by the Legislature in
2014. Cyber Florida is funded by the state and hosted by the University of South Florida. The goals of
Cyber Florida are to:
   • Help Florida become a national leader in cybersecurity education;
   • Create cybersecurity jobs in the state and enhance the existing cybersecurity workforce;
   • Seek out partnerships with military installations to assist in homeland cybersecurity defense
       initiatives; and

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   •   Attract cybersecurity companies to Florida.

Florida Energy Systems Consortium (FESC)

FESC was created by the Legislature in 2008 to “promote collaboration among experts in the State
University System for the purposes of sharing energy-related expertise and assisting in the
development and implementation of a comprehensive, long-term, environmentally compatible,
sustainable, and efficient energy strategic plan for the state.” FESC is administered at the University of
Florida by a director appointed by the President of the University of Florida, and includes the
following state universities:
    • University of Florida
    • Florida State University
    • Florida Agricultural and Mechanical University
    • University of South Florida
    • Florida Atlantic University
    • University of West Florida
    • University of Central Florida
    • University of North Florida
    • Florida International University
    • Florida Gulf Coast University
    • New College of Florida
    • Florida Polytechnic University.

             H IGHLIGHTS OF R ECENTLY P ASSED L EGISLATION
2022 Legislature

CS/CS/HB 741 - Net Metering

Net energy metering, commonly referred to as net metering, is a billing arrangement designed to
compensate customers who own or lease on-site renewable energy generation systems and export
electricity generated on-site to an electric utility's system. In 2008, the Legislature required all electric
utilities to develop standardized interconnection agreements and a net metering program for customer-
owned renewable generation systems. Under Florida's current net metering framework for investor-
owned electric utilities (IOUs), the credit customers receive on their monthly bill equates the value of
the excess energy to the utility's retail rate.

The bill established a revised net metering program that would credit excess energy delivered to an
IOU's system by customer-owned renewable generation in accordance with a graduated schedule as
described in the bill. Under the bill, the value of credit a customer who owns or leases renewable
generation receives would be determined by the date a net metering application is approved for the
customer-owned or leased renewable generation, and credits would be netted on a monthly basis.

The bill provided that if the PSC finds that the penetration rate of customer-owned or leased renewable
generation in an IOU's service territory exceeds a certain threshold, the PSC must initiate rulemaking

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to adopt a new program design. The bill established minimum requirements for IOU customer-owned
or leased renewable generation programs, and an IOU may petition the PSC for approval to offer a
program that is not less favorable to customers who own or lease renewable generation. The bill
permitted an IOU to petition the PSC for approval to recover, through its fuel and purchased power
cost recovery charge, lost revenue resulting from the unanticipated, incremental addition of residential
customer-owned or leased solar photovoltaic generation within the IOU's service territory between July
1, 2022 and December 31, 2023.

This bill was vetoed by the Governor on April 27, 2022.

CS/CS/HB 1411 - Floating Solar Facilities

Floating solar refers to any type of solar array that floats atop a body of water. Floating solar panels are
affixed to a buoyant structure that keeps them above the water's surface.

The bill promotes the use of floating solar facilities by requiring each local government to allow these
facilities as a permitted use under certain conditions and amend its land development regulations to
promote the use of floating solar. Under the bill, counties and municipalities may adopt ordinances
specifying buffer and landscaping requirements for floating solar facilities. The bill provides that a
floating solar facility may not be constructed in an Everglades Agricultural Area reservoir project if the
local governments involved with the project determine that the facility will have a negative impact on
that project.

Under the bill, the Office of Energy within the Department of Agriculture and Consumer Services is
tasked with submitting recommendations to the Legislature to provide a regulatory framework to
private and public sector entities that implement floating solar facilities.

The bill became effective on July 1, 2022.

CS/SB 1764 - Municipal Solid Waste-to-Energy Program

Energy recovery from waste is the conversion of non-recyclable waste materials into useable heat,
electricity, or fuel. Municipal solid waste, otherwise known as trash or garbage, can be used to produce
energy at waste-to-energy plants and landfills.

The bill establishes the Municipal Solid Waste-to-Energy Program, within the Department of
Agriculture and Consumer Services, comprised of a financial assistance grant program and an
incentive grant program. The stated purpose of the program is to provide grants, subject to
appropriation, to municipal solid waste-to-energy facilities in order to incentivize the production and
sale of energy and reduce waste disposed of in landfills.

The bill became effective on July 1, 2022.




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SB 7036 - Lifeline Telecommunications Service

The Lifeline program provides telecommunications service discounts for qualifying low-income
consumers, pursuant to regulations adopted by the Federal Communications Commission (FCC). In
Florida, the Public Service Commission (PSC) oversees the Lifeline program. Certain
telecommunications service providers designated by the FCC as eligible telecommunications carriers
must provide Lifeline to qualified residential subscribers.

   •   The bill updates Florida's Lifeline laws to be consistent with federal Lifeline regulations. The
       bill: Clarifies that an eligible telecommunications carrier must notify a Lifeline subscriber of
       impending termination of Lifeline service if it has reason to believe that the subscriber no
       longer qualifies for Lifeline;
   •   Provides that a Lifeline subscriber, upon request, must provide proof of continued eligibility for
       Lifeline service to the eligible telecommunications carrier, the FCC, or the FCC's designee:
   •   Removes obsolete references to state agencies no longer involved in the Lifeline program;
   •   Removes state standards for the provision of Lifeline that are inconsistent with the FCC's
       eligibility requirements; and
   •   Authorizes certain information exempt from public records laws to be released to the FCC or
       its designee as required to administer Lifeline.

The bill became effective on July 1, 2022.

CS/HB 7055 – Cybersecurity

The bill prohibits state agencies and local governments from paying or otherwise complying with a
ransomware incident and establishes penalties and fines for certain ransomware offenses against a
government entity.

The bill defines the severity level of a cybersecurity incident in accordance with the National Cyber
Incident Response Plan. State agencies and local governments must report all ransomware incidents
and high severity level cybersecurity incidents to the Cybersecurity Operations Center (CSOC) and the
Cybercrime Office within the Florida Department of Law Enforcement as soon as possible but no later
than a time certain. Local governments must also report to the sheriff. The bill requires state agencies
to report low level cybersecurity incidents and provides that local governments may report such
incidents. The bill also requires state agencies and local governments to submit after-action reports to
the Florida Digital Service following a cybersecurity or ransomware incident.

The bill requires the CSOC to notify the Legislature of high severity level cybersecurity incidents. The
notice must contain a high-level overview of the incident and its likely effects. In addition, the CSOC
must provide the Legislature and the Cybersecurity Advisory Council (CAC) with a consolidated
incident report on a quarterly basis.

The bill requires state agency and local government employees to undergo certain cybersecurity
training within 30 days of employment and annually thereafter.



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The bill requires local governments to adopt cybersecurity standards that safeguard the local
government's data, information technology (IT), and IT resources.

The bill expands the purpose of the CAC to include advising local governments on cybersecurity and
requires the CAC to examine reported cybersecurity and ransomware incidents to develop best practice
recommendations. The CAC must submit an annual comprehensive report regarding ransomware to
the Governor and Legislature.

The bill became effective on July 1, 2022.

2021 Legislature

CS/CS/HB 839 - Express Preemption of Fuel Retailers and Related Transportation
Infrastructure

The bill expressly preempts a municipality, county, special district, or political subdivision from
prohibiting or taking any action that results in a de facto prohibition against the siting, development, or
redevelopment of a fuel retailer or the necessary related transportation infrastructure within that
specific local government’s entire jurisdiction. The bill preempts the same entities from mandating any
required infrastructure on a fuel retailer, including electric vehicle charging stations.

The bill does not preempt a municipality, county, special district, or political subdivision from
adopting and implementing ordinances, regulations, policies, or resolutions on the siting, development,
or redevelopment of fuel retailers or necessary related transportation infrastructure that are consistent
with other allowable uses and general law.

The bill defines the term "fuel retailer" as a fuel station or retail site selling fuel to power vehicles.
"Related transportation energy infrastructure" is defined as "storage tanks, pipelines, or any related
equipment that is necessary to deliver fuel to a fuel retailer or dispense fuel at a fuel retailer."

The bill became effective on June 16, 2021.

CS/CS/SB 896 - Renewable Energy

The bill authorizes the Florida Public Service Commission (PSC) to approve cost recovery by a gas
public utility for contracts for the purchase of renewable natural gas in which the pricing provisions
exceed the current market price of natural gas but are otherwise deemed reasonable and prudent by the
PSC.

The bill defines "renewable natural gas" as anaerobically-generated biogas, landfill gas, or waste-water
treatment gas refined to a methane content of 90 percent or greater which is capable of being used as
transportation fuel, for electric power generation, or is of a quality capable of being injected into a
natural gas pipeline. The bill defines "biogas" as a mixture of carbon dioxide and hydrocarbons,
primarily methane gas, which is released from the biological decomposition of organic materials.




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The bill also defines "solar facility" and specifies that such facilities must be a permitted use in all
agricultural land use categories in a local government comprehensive plan and all agricultural zoning
districts within an unincorporated area. Solar facilities must comply with setback and landscape buffer
area criteria to the same extent as other similar permitted uses in an agricultural district.

The bill became effective on July 1, 2021.

CS/CS/HB 919 - Preemption Over Restriction of Utility Services

The bill prohibits a municipality, county, special district, or other political subdivision of the state from
enacting or enforcing a resolution, ordinance, rule, code, or policy, or take any other action that
restricts or prohibits, or has the effect of restricting or prohibiting, the types or fuel sources of energy
production which may be used, delivered, converted, or supplied by specified utilities and energy
service providers to serve customers that they are authorized to serve. Any charter, resolution,
ordinance, rule, code, policy, or action preempted by the bill that existed before or on July 1, 2021, is
void.

The bill provides that it does not prohibit the board of a municipality or governmental entity from
adopting rules, regulations, and policies governing an electric or natural gas utility that it owns or
operates and directly controls. The bill also provides that it does not expand or alter the jurisdiction of
the Public Service Commission.

The bill became effective on July 1, 2021.

CS/CS/HB 1239 - Broadband Internet Infrastructure

The bill creates two new programs to support the expansion of broadband Internet service to
consumers without access to service.

First, the bill creates a program within the Florida Office of Broadband (Office), within the
Department of Economic Opportunity (DEO) to award grants, subject to appropriation, to applicants
who seek to install or deploy infrastructure that expands broadband service to unserved areas. The bill
specifies the types of entities eligible for such grants, provides application requirements and evaluation
criteria, and requires the Office to enter into an agreement with each grant recipient that specifies
performance conditions, including potential sanctions. The bill establishes a process by which an
existing broadband provider may challenge a grant application on the grounds that the provider already
offers or plans to offer service in the area at issue. The bill provides limitations on grant awards and
requires the Office to prepare an annual report summarizing the activity under this program.

Second, the bill requires municipal electric utilities, through July 1, 2024, to offer broadband service
providers a discounted rate of $1 per attachment per year for any new pole attachment necessary to
make broadband service available to an unserved or underserved consumer within the utility’s service
territory. The bill provides terms for these discounted attachments. The bill also provides safety and
reliability standards for pole attachments and specifies each party’s responsibility for costs associated
with replacement poles necessary to make attachments. The bill prohibits municipal electric utilities
from raising their current pole attachment rates for broadband providers before July 31, 2022.

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The bill requires local technology planning teams established by the Office to work with rural
communities to help identify unserved and underserved consumers and to work with broadband
providers to identify opportunities and reduce barriers to the deployment of service. The bill provides a
nonrecurring appropriation of $1.5 million for Fiscal Year 2021‐2022 to DEO to develop, by June 30,
2022, geographic information system maps of broadband Internet service availability throughout this
state.

The bill became effective on July 1, 2021.

CS/CS/HB 1297 – Cybersecurity

The bill specifies that the Department of Management Services (DMS), acting through the Florida
Digital Service, is the lead entity responsible for assessing state agency cybersecurity risks and
determining appropriate security measures. The bill creates new, and amends current, cybersecurity
duties and responsibilities of DMS, and directs each agency inspector general to include a specific
cybersecurity audit plan when developing its long-term and annual audit plans. The bill also creates the
Florida Cybersecurity Advisory Council within DMS for the purpose of assisting state agencies in
protecting information technology resources from cyber-attacks.

The bill became effective on July 1, 2021.

CS/SB 1944 - Utility and Communications Poles

The bill requires the Florida Public Service Commission (PSC) to regulate utility pole attachments in
Florida, taking over the role currently performed by the Federal Communications Commission (FCC).
The bill requires the PSC to hear and resolve complaints concerning rates, charges, terms, conditions,
voluntary agreements, or any denial of access relative to pole attachments. The bill provides that FCC
precedent is not binding upon the PSC if a party demonstrates that an alternative cost-based rate is just
and reasonable and in the public interest.

The bill defines "redundant pole" and requires that attaching entities remove their pole attachments
from a redundant pole within 180 days of a written request by the pole owner. Under certain
circumstances, the pole owner may transfer or relocate the pole attachment to a new pole at the
noncompliant attaching entity's expense, unless the pole attachments are owned by an electric utility.
Upon petition by a pole owner, the bill authorizes the PSC to resolve disputes or order the removal or
transfer of pole attachments by noncompliant attaching entities.

The bill also requires the PSC to regulate the safety, maintenance, and storm restoration of certain
telecommunications infrastructure. The bill provides authority to the PSC to examine the books and
records of communications services providers in order to perform this function. The bill also
authorizes the PSC to impose monetary penalties and adopt rules to implement these provisions.

The bill became effective on June 29, 2021.




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2020 Legislature

CS/HB 969 - Broadband Internet Service
The bill designates the Department of Economic Opportunity (DEO) as the lead state agency to
facilitate the expansion of broadband Internet service in the state and creates the Florida Office of
Broadband (Office) within DEO’s Division of Community Development. The Office must:
    • Create a strategic plan for increasing the use of broadband Internet service in the state;
    • Build local technology planning teams;
    • Encourage the use of broadband Internet service, especially in rural, unserved, and underserved
         areas of the state through grant programs; and
    • Monitor, participate in, and provide input in federal agency proceedings related to the
         geographic availability and deployment of broadband Internet service in Florida.
To achieve these purposes, the bill authorizes DEO to apply for and accept federal grant funds, enter
into necessary or useful contracts, and establish any administrative committee or workgroup.

The bill provides that up to $5 million of the funds transferred to Florida’s Turnpike Enterprise for the
Multi-use Corridors of Regional Economic Significance program may be used for projects that assist in
the development of broadband infrastructure within or adjacent to a multiuse corridor.

The bill became effective on July 1, 2020.

CS/CS/HB 1095 - Infrastructure Regulation

Chapter 556, F.S., is the “Underground Facility Damage Prevention and Safety Act” (Act). The stated
purpose of the Act is to identify and locate underground facilities prior to an excavation or demolition
to prevent injury to persons or property or interruption of services resulting from damage to those
facilities. To accomplish this, the Act creates a not-for-profit corporation (Sunshine 811) to administer
a free-access notification system. The bill amends ch. 556, F.S., to:
    • Expand the list of entities that may issue citations for violations of ch. 556, F.S., to include the
         State Fire Marshal, or its designated agent, and local fire chiefs;
    • Increase the maximum civil penalty (up to $2,500 plus court costs) for certain violations of ch.
         556, F.S., that involve an underground pipe or facility transporting hazardous materials
         regulated by the federal Pipeline and Hazardous Material Safety Administration, with 80
         percent of the civil penalty distributed to the entity that issued the citation and the remainder
         distributed to the clerk of court;
    • Require each clerk of court to submit an annual report to the State Fire Marshal listing each
         citation issued for a violation of ch. 556, F.S., which was filed in that county during the
         preceding calendar year;
    • Define the term “permanent marker” and establish a criminal penalty for knowingly and
         willfully removing or damaging a permanent marker placed to identify the location of an
         underground facility;
    • Require excavators and underground facility operators to report incidents that involve “high-
         priority subsurface installations” for investigation by the State Fire Marshal, or its designated
         agent, who may issue a citation and impose a civil penalty for a violation of ch. 556, F.S., that
         is a proximate cause of the incident, with five percent of the civil penalty retained by the clerk
         of court and the remainder distributed equally between Sunshine 811 (to fund damage-

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       prevention education) and the State Fire Marshal (to fund certain programs that provide
       financial assistance to fire departments to mitigate firefighter exposure to hazardous, cancer-
       causing chemicals); and
   •   Require Sunshine 811 to review all reports made to the State Fire Marshal and all other
       complaints of alleged violations of ch. 556, F.S., to identify issues related to damage prevention
       and enforcement, and annually provide an analysis and recommendations to the Governor,
       President of the Senate, and Speaker of the House of Representatives.

The bill requires the Committee on Public Counsel Oversight, by a majority vote of the committee
appointees of each house, to appoint a Public Counsel to a 4-year term beginning March 1, 2021, and
every 4 years thereafter. A person appointed as the Public Counsel may not serve more than 12 years
after July 1, 2020.

The bill became effective on July 1, 2020.

CS/CS/CS/HB 1391 – Technology Innovation

The bill abolishes the Division of State Technology within the Department of Management Services
(DMS) and establishes the Florida Digital Service (FDS) in its place. It also creates the Division of
Telecommunications within DMS. The bill establishes the duties and responsibilities of FDS, including
the development and implementation of information technology (IT) standards for state agencies with
a focus on interoperability and enforcement of the state’s cloud-first policy. FDS must create and
maintain a comprehensive data catalog that lists the data elements housed within each state agency,
and FDS must create a data dictionary. FDS must conduct a market analysis at least every three years
to determine whether IT resources within each state agency are used in the most cost-effective manner,
whether agencies are complying with the state’s cloud first policy, and whether agencies are using best
practices with respect to IT. The bill allows cabinet agencies to adopt alternative IT standards than
those developed by FDS.

The bill also creates the Financial Technology Sandbox (sandbox) within the Office of Financial
Regulation (OFR) to allow a sandbox licensee to make an innovative financial product or service
available to consumers as a money transmitter, payment instrument seller, or lender of consumer
finance loans during a sandbox period that is initially 24 months but can be extended one time for an
additional 12 months. Upon approval of an application, a sandbox licensee is exempt from specified
provisions of general law and the corresponding rule requirements during the sandbox period. OFR
may initially authorize a sandbox licensee to provide the financial product or service to a maximum of
15,000 consumers but may authorize up to 25,000 consumers if the sandbox licensee demonstrates
adequate financial capitalization, risk management processes, and management oversight.

The bill became effective on July 1, 2020, except as otherwise expressly provided in the bill.




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