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Meeting Packet — Energy, Communications & Cybersecurity Subcommittee (March 7, 2023)

Summary

Meeting packet for the Energy, Communications & Cybersecurity Subcommittee of the Florida House of Representatives Commerce Committee, Tuesday, March 7, 2023, 12:45 pm – 3:45 pm, Reed Hall (102 HOB). The agenda lists HB 529 Natural Gas Fuel Taxes by Mooney, HB 669 Resiliency Energy Environment Florida Programs by Fine, HB 745 Emergency Communications by McFarland, and HB 7001 OGSR/Nationwide Public Safety Broadband Network. The staff analysis of HB 529 says the bill provides for a 2-year delay of natural gas fuel taxes that would otherwise take effect January 1, 2024, changing the date to January 1, 2026.

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“Meeting Packet — Energy, Communications & Cybersecurity Subcommittee (March 7, 2023).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-03-07-3226-energy-communications-cybersecurity-subcommittee-meeti-f63a81a690/, SHA-256 23f8157159f62873b029ec1c1c23480dbc765ecb193adac9d3e4455e9b977705.

Full text

               Energy, Communications &
              Cybersecurity Subcommittee
                    Tuesday, March 7, 2023
                      12:45 pm – 3:45 pm
                     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
                                     Tuesday, March 7, 2023
                                       12:45 pm – 3:45 pm
                                      Reed Hall (102 HOB)


  I.   Call to Order

 II.   Roll Call

III.   Welcome and Opening Remarks

IV.    Consideration of the following bill(s):

       • HB 529 Natural Gas Fuel Taxes by Mooney

       • HB 669 Resiliency Energy Environment Florida Programs by Fine

       • HB 745 Emergency Communications by McFarland

       • HB 7001 OGSR/Nationwide Public Safety Broadband Network by Ethics,
         Elections & Open Government Subcommittee, Yarkosky

 V.    Closing Remarks

VI.    Adjournment




               303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                               (850) 717-4870
HB 529
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 529 Natural Gas Fuel Taxes
SPONSOR(S): Mooney and others
TIED BILLS:       IDEN./SIM. BILLS: SB 322

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Energy, Communications & Cybersecurity                                           Walsh              Keating
     Subcommittee

  2) Ways & Means Committee

  3) Commerce Committee


                                                     SUMMARY ANALYSIS

Prior to 2014, owners or operators of Florida-licensed motor vehicles powered by natural gas fuels were
required to pay an annual decal fee for each such vehicle. In 2013, the Legislature passed a bill to “help
reduce transportation costs in this state and encourage freight mobility investments that contribute to the
economic growth of the state.” To accomplish these goals, the bill created a 5-year rebate program for certain
costs involved in the conversion, purchase, or lease of natural gas fuel fleet vehicles, eliminated the annual
decal fees for natural gas vehicles, and created a new tax structure whereby natural gas fuels would be taxed
on a per unit basis beginning January 1, 2019. In 2018, the legislature delayed the start date of this new tax
structure by an additional 5 years to January 1, 2024. Accordingly, natural gas fuels have not been subject to
state fuel taxes since January 1, 2014.

The bill provides for a 2-year delay of the imposition of natural gas fuel taxes that would otherwise go into
effect January 1, 2024. The bill changes the effective date of the imposition of these taxes to January 1, 2026.
To conform to the delayed imposition of these taxes, the bill:

        Extends by 2 years (from December 31, 2023, to December 31, 2025) the expiration of the current flat
         penalty scheme that applies to any person who acts as a natural gas retailer without a valid natural gas
         fuel retailer license, and delays by 2 years (from January 1, 2024, to January 1, 2026) the effective date
         of a new penalty scheme that is based on a percentage of the tax assessed during the period of
         unlicensed operations.
        Delays by 2 years (from February 2024 to February 2026) the date by which natural gas fuel retailers
         must file monthly reports with DOR for the purpose of determining the amount of natural gas fuel taxes
         imposed.

The bill delays by 2 years the imposition of natural gas fuel taxes until January 1, 2026, resulting in delayed
collection of revenues from the taxes.

The bill provides an effective date of July 1, 2023.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0529.ECC
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                                                   FULL ANALYSIS

                                            I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Taxation of Natural Gas Fuel

        Pre-2014

        Prior to 2014, natural gas fuels such as compressed natural gas (CNG) and liquid petroleum gas (LPG)
        were defined in Florida law as “alternative fuels” when used to fuel motor vehicles. 1 In lieu of the excise
        tax imposed on diesel fuel under the law, owners or operators of Florida-licensed motor vehicles
        powered by alternative fuels were required to pay an annual decal fee for each such vehicle.2 These
        annual fees ranged from $199.10 to $380.10 per vehicle, depending on the vehicle’s size and weight. 3
        The sale of alternative fuels also was subject to sales tax imposed under ch. 212, F.S. 4

        With certain exceptions, Florida law prohibited a person from acting as a retailer of alternative fuel
        unless that person held a valid license as a retailer of alternative fuel issued by the Department of
        Revenue (DOR).5 Any person acting as such without a license was subject to a penalty of 25 percent of
        the tax assessed on total purchases during the unlicensed period. 6 Every person who operated as a
        retailer of alternative fuel, with certain exceptions, was required to report monthly to DOR and pay tax
        on all fuel purchases.7

        Revenues from the annual decal fees were deposited into the State Alternative Fuel User Fee Clearing
        Trust Fund.8 After deducting a specified service charge, the proceeds in the trust fund were distributed
        as follows:

                 One-half of the proceeds to the State Transportation Trust Fund (STTF).
                 50 percent of the remainder to the State Board of Administration for distribution in accordance
                  with the Florida Constitution.
                 25 percent of the remainder to the Revenue Sharing Trust Fund for Municipalities.
                 25 percent of the remainder to the counties for specified public transportation purposes,
                  distributed as provided by law.

        Current Law

        In 2013, the Legislature passed CS/CS/HB 579 to ““help reduce transportation costs in this state and
        encourage freight mobility investments that contribute to the economic growth of the state.” 9 To
        accomplish these goals, the bill created a 5-year rebate program for natural gas fuel fleet vehicles and
        exempted natural gas fuels from state fuel taxes for 5 years. The Natural Gas Fuel Fleet Vehicle
        Rebate program provided $6 million per fiscal year, from FY 2013-14 through FY 2017-18, to fund
        rebates for the purchase, conversion, or lease of natural gas fuel fleet vehicles. Further, effective
        January 1, 2014, the bill eliminated the annual decal fee for natural gas vehicles. The 2013 bill
        replaced it with a new tax structure that creates a “per motor fuel equivalent gallon” tax rate to become

1 S. 206.86(4), F.S. (2012).
2 S. 206.877, F.S. (2012). The excise tax imposed on diesel fuel was applied to the purchase of alternative fuels by
operators of vehicles licensed in other states.
3 See Use of Natural Gas Fuels to Operate Motor Vehicles is Increasing in Florida, Office of Program Policy Analysis &

Government Accountability, Report No. 17-10 (Oct. 2017), at p. 4.
4 Id.
5 S. 206.89, F.S. (2012).
6 Id.
7 Id.
8 S. 206.879, F.S. (2012).
9 Ch. 2013-198, Laws of Fla.
STORAGE NAME: h0529.ECC                                                                                           PAGE: 2
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         effective January 1, 2019. 10 In 2018, the legislature delayed the effective date of these taxes to
         January 1, 2024.

         Pursuant to the current structure, the following taxes will be imposed on natural gas fuel11 effective
         January 1, 2024:12

                An excise tax of 4 cents upon each motor fuel equivalent gallon 13 of natural gas fuel.
                An additional tax of 1 cent upon each motor fuel equivalent gallon of natural gas fuel, which is
                 designated as the “ninth-cent fuel tax.”
                An additional tax of 1 cent on each motor fuel equivalent gallon of natural gas fuel by each
                 county, which is designated as the “local option fuel tax.”
                An additional tax on each motor fuel equivalent gallon of natural gas fuel, designated as the
                 “State Comprehensive Enhanced Transportation System (SCETS) Tax.” The tax rate must be
                 determined by DOR each calendar year, rounded to the nearest tenth of a cent, for the following
                 12-month period beginning January 1. The rate is calculated by adjusting the “initially
                 established tax rate of 5.8 cents per gallon” by the percentage change in the average of the
                 Consumer Price Index issued by the United States Department of Labor for the most recent 12-
                 month period ending September 30.
                An additional tax on each motor fuel equivalent gallon of natural gas fuel “for the privilege of
                 selling natural gas fuel,” designated as the “fuel sales tax.” The tax rate must be determined by
                 DOR each calendar year, rounded to the nearest tenth, for the following 12-month period
                 beginning January 1. The rate is calculated by adjusting the “initially established tax rate of 9.2
                 cents per gallon” by the percentage change in the average of the Consumer Price Index issued
                 by the United States Department of Labor for the most recent 12-month period ending
                 September 30.

         In sum, prior to any of the required annual index-based adjustments by DOR, natural gas fuel will be
         taxed at a rate of at least $0.21 cents per motor fuel equivalent gallon beginning January 1, 2024.14

         Revenues from the natural gas fuel tax will be deposited into the State Alternative Fuel User Fee
         Clearing Trust Fund to be distributed as follows:15

                The revenues from the SCETS tax and fuel sales tax will be transferred to the STTF.
                The revenues from the excise tax will be distributed as follows:
                     o 50% will be transferred to the State Board of Administration for distribution in
                        accordance with the Florida Constitution.
                     o 25% will be transferred to the Revenue Sharing Trust Fund for Municipalities.
                     o 25% will be distributed to the counties for specified public transportation purposes,
                        distributed as provided by law.
                The revenues from the ninth-cent fuel tax and the local option sales tax will be deposited into
                 the Local Alternative Fuel User Fee Clearing Trust Fund and returned monthly to the
                 appropriate counties.

10 Id. The provisions of the bill related to taxation of natural gas fuel are codified as Part V of Ch. 206, F.S., consisting of
Ss. 206.9951 – 206.998, entitled “NATURAL GAS FUEL.”
11 “Natural gas fuel” is defined as “any liquefied petroleum gas product, compressed natural gas product, or combination

thereof used in a motor vehicle as defined in s. 206.01(23). This term includes, but is not limited to, all forms of fuel
commonly or commercially known or sold as natural gasoline, butane gas, propane gas, or any other form of liquefied
petroleum gas, compressed natural gas, or liquefied natural gas. This term does not include natural gas or liquefied
petroleum placed in a separate tank of a motor vehicle for cooking, heating, water heating, or electric generation. ” S.
206.9951(2), F.S.
12 S. 206.9955, F.S.
13 “Motor fuel equivalent gallon” is defined as “the volume of natural gas fuel it takes to equal the energy content of 1

gallon of motor fuel.” s. 206.9951(1), F.S. The conversion rates for various types of natural gas fuels is provided in s.
206.9955, F.S.
14 The law is unclear as to whether the index-based adjustments were to begin with the effective date of the law (January

1, 2014) or the effective date of the new tax rates (January 1, 2024).
15 S. 206.997, F.S.
STORAGE NAME: h0529.ECC                                                                                                   PAGE: 3
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        The law provides that until December 31, 2023, any person acting as a natural gas retailer without a
        valid license to do so must pay a penalty of $200 for each month of operation without a license.
        Effective January 1, 2024, the penalty becomes 25 percent of the tax assessed on total purchases
        made during the unlicensed period.16 In addition, the law requires natural gas fuel retailers to submit
        an electronic, monthly report to DOR, beginning February 2024 and monthly thereafter, showing
        information on inventory, purchases, nontaxable disposals, table uses, and taxable sales in gallons of
        natural gas fuel for the preceding month, with certain exceptions and a specified deduction for services
        rendered and expenses incurred in complying with the reporting requirements. 17

        State Gasoline and Diesel Taxes

        Motor Fuel18

        Florida law provides for the following taxes on motor fuel:19

                An excise or license tax of 2 cents per net gallon of motor fuel, designated as the “constitutional
                 fuel tax.”
                An additional 1 cent per net gallon, designated as the “county fuel tax.”
                An additional 1 cent per net gallon, designated as the “municipal fuel tax.”
                An additional tax of 1 cent per net gallon may be imposed by each county, designated as the
                 “ninth-cent fuel tax.”
                An additional tax of between 1 and 11 cents per net gallon may be imposed by each county,
                 designated as the “local option fuel tax.”
                An additional tax per net gallon of motor fuel is imposed by each county, designated as the
                 SCETS Tax, at a rate calculated by applying specified index-based adjustments to a rate
                 specified in the law.
                An additional tax per net gallon is imposed “on the privilege of selling motor fuel”, designated as
                 the “fuel sales tax,” at a rate calculated by applying specified index-based adjustments to an
                 initial rate established in the law.
                An additional 0.125 cents per net gallon for defraying expenses incident to inspecting, testing,
                 and analyzing motor fuel in this state.

        Beginning January 1, 2023, the state tax rate on motor fuel is 20.2 cents per gallon, the SCETS tax rate
        on motor fuel is 8.6 cents, and the fuel sales tax rate on motor fuel is 15.1 cents. The local option rate
        varies by county, and the total state and county rates on motor fuel varies from 35.2 cents to 41.3 cents
        per gallon.20

        Diesel Fuel21

        Florida law provides for the following taxes on diesel fuel: 22

                An excise tax of 4 cents per net gallon of diesel fuel.
                An additional 1 cent per net gallon is imposed by each county, designated as the “ninth-cent
                 fuel tax.”


16 S. 206.9952(3),   F.S.
17 S. 206.996,  F.S.
18 “Motor fuel” is defined as “all gasoline products or any product blended with gasoline or any fuel placed in the storage

supply tank of a gasoline-powered motor vehicle.” S. 206.01(9), F.S.
19 S. 206.41(1), F.S,
20 Florida Department of Revenue, Tax Information Publication No. 22B05-06, Fuel Tax Rates Adjusted Beginning

January 1, 2023, (Nov. 17, 2022), available at: https://floridarevenue.com/taxes/tips/Pages/default.aspx.
21 “Diesel fuel” is defined as “all petroleum distillates commonly known as diesel #2, biodiesel, or any other product

blended with diesel or any product placed into the storage supply tank of a diesel -powered motor vehicle.” s. 206.86(1),
F.S.
22 S. 206.87(1), F.S.
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               An additional 6 cents per net gallon is imposed by each county, designated as the “local option
                fuel tax.”
               An additional tax per net gallon is imposed in each county, designated as the SCETS Tax, at a
                rate equal to the maximum SCETS Tax rate for motor fuel.
               An additional tax per net gallon “on the privilege of selling diesel fuel,” designated as the “fuel
                sales tax,” at a rate calculated by applying specified index-based adjustments to an initial rate
                established in the law.

        Beginning January 1, 2023, the state tax rate on diesel fuel is 20.2 cents per gallon and the county tax
        rate (ninth cent, SCETS, and local option rates) is 15.9 cents statewide. The total state and county
        rates on diesel fuel is 36.1 cents per gallon.23

        Effect of Proposed Changes

        The bill provides for a 2-year delay of the imposition of natural gas fuel taxes that would otherwise go
        into effect January 1, 2024. The bill changes the effective date of the imposition of these taxes to
        January 1, 2026. Thus, state fuel taxes will not apply to natural gas fuels for an additional 2 years.

        To conform to the delayed imposition of these taxes, the bill:

               Extends by 2 years (from December 31, 2023, to December 31, 2025) the expiration of the
                current flat penalty scheme that applies to any person who acts as a natural gas retailer without
                a valid natural gas fuel retailer license, and delays by 2 years (from January 1, 2024, to January
                1, 2026) the effective date of a new penalty scheme that is based on a percentage of the tax
                assessed during the period of unlicensed operations.
               Delays by 2 years (from February 2024 to February 2026) the date by which natural gas fuel
                retailers must file monthly reports with DOR for the purpose of determining the amount of
                natural gas fuel taxes imposed.

        The bill provides an effective date of July 1, 2023.


    B. SECTION DIRECTORY:
        Section 1. Amends s. 206.9952, F.S., relating to licensing of natural gas fuel retailers.

        Section 2. Amends s. 206.9955, F.S., relating to the levy of natural gas fuel tax.

        Section 3. Amends s. 206.996, F.S., relating to monthly reports by natural gas fuel retailers.

        Section 4. Provides an effective date of July 1, 2023.


                          II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
            On February 3, 2023, the Revenue Estimating Conference adopted a negative fiscal impact of
            $200,000 to state revenues for fiscal year (FY) 2023-2024, $700,000 for FY 2024-2025, and
            $500,000 for FY 2025-2026. 24

        2. Expenditures:

23 Supra note 20.
24 Office of Economic and Demographic       Research, Revenue Estimating Conference, 02/03/2023 Revenue Impact
Results, p. 39, available at http://edr.state.fl.us/content/conferences/revenueimpact/index.cfm.
STORAGE NAME: h0529.ECC                                                                                          PAGE: 5
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            None.

     B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

         1. Revenues:
            On February 3, 2023, the Revenue Estimating Conference adopted a negative fiscal impact of
            $100,000 to local revenues for FY 2023-2024, $200,000 for FY 2024-2025, and $100,000 for FY
            2025-2026.

         2. Expenditures:
            None.

     C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
         Owners or operators of natural gas vehicles will achieve cost savings, because the bill delays by 2
         years the imposition of natural gas fuel taxes until January 1, 2026.25

     D. FISCAL COMMENTS:
         Current law provides that the SCETS tax rate and the fuel sales tax rate for natural gas fuels must be
         calculated annually by DOR through index-based adjustments to an initial rate established in the law.
         The law is not clear as to when those index-based adjustments must begin and could be interpreted to
         require such adjustments either from the time the law became effective or from the time the taxes
         become effective. An estimate of the bill’s fiscal impact will depend upon the interpretation of these
         provisions.


                                                III. COMMENTS

     A. CONSTITUTIONAL ISSUES:

         1. Applicability of Municipality/County Mandates Provision:
           Not applicable. The bill does not appear to: require counties or municipalities to spend funds or take
           action requiring the 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.

         2. Other:
           None.

     B. RULE-MAKING AUTHORITY:
         None.

     C. DRAFTING ISSUES OR OTHER COMMENTS:
         Current law provides that the SCETS tax rate and the fuel sales tax rate for natural gas fuels must be
         calculated annually by DOR through index-based adjustments to an initial rate established in the law.
         The law is not clear as to when these index-based adjustments must begin and could be interpreted to
         require such adjustments either from the time the law became effective or from the time the taxes
         become effective. The bill does not amend these provisions of the law. To ensure that the intended tax
         rate becomes effective at the intended time, this ambiguity could be clarified.




25 Id.
STORAGE NAME: h0529.ECC                                                                                    PAGE: 6
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                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: h0529.ECC                                                 PAGE: 7
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           HB 529                                                                                                2023




    1                                           A bill to be entitled
    2               An act relating to natural gas fuel taxes; amending s.
    3               206.9952, F.S.; extending the expiration date for
    4               levying penalties on natural gas retailers that do not
    5               have licenses; conforming provisions to changes made
    6               by the act; amending s. 206.9955, F.S.; delaying the
    7               effective date of certain taxes on natural gas fuel;
    8               amending s. 206.996, F.S.; conforming a provision to
    9               changes made by the act; providing an effective date.
10
11         Be It Enacted by the Legislature of the State of Florida:
12
13                  Section 1.          Subsections (3) and (8) of section 206.9952,
14         Florida Statutes, are amended to read:
15                  206.9952           Application for license as a natural gas fuel
16         retailer.—
17                  (3)(a)        Any person who acts as a natural gas retailer and
18         does not hold a valid natural gas fuel retailer license shall
19         pay a penalty of $200 for each month of operation without a
20         license. This paragraph expires December 31, 2025 2023.
21                  (b)         Effective January 1, 2026 2024, any person who acts as
22         a natural gas fuel retailer and does not hold a valid natural
23         gas fuel retailer license shall pay a penalty of 25 percent of
24         the tax assessed on the total purchases made during the
25         unlicensed period.

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        HB 529                                                                                                2023




26               (8)         With the exception of a state or federal agency or a
27      political subdivision licensed under this chapter, each person,
28      as defined in this part, who operates as a natural gas fuel
29      retailer shall report monthly to the department and pay a tax on
30      all natural gas fuel purchases beginning January 1, 2026 2024.
31               Section 2.          Section 206.9955, Florida Statutes, is amended
32      to read:
33               206.9955           Levy of natural gas fuel tax.—
34               (1)         The motor fuel equivalent gallon means the following
35      for:
36               (a)         Compressed natural gas gallon: 5.66 pounds, or per
37      each 126.67 cubic feet.
38               (b)         Liquefied natural gas gallon: 6.06 pounds.
39               (c)         Liquefied petroleum gas gallon: 1.35 gallons.
40               (2)         Effective January 1, 2026 2024, the following taxes
41      shall be imposed:
42               (a)         An excise tax of 4 cents upon each motor fuel
43      equivalent gallon of natural gas fuel.
44               (b)         An additional tax of 1 cent upon each motor fuel
45      equivalent gallon of natural gas fuel, which is designated as
46      the "ninth-cent fuel tax."
47               (c)         An additional tax of 1 cent on each motor fuel
48      equivalent gallon of natural gas fuel by each county, which is
49      designated as the "local option fuel tax."
50               (d)         An additional tax on each motor fuel equivalent gallon

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        HB 529                                                                                                2023




51      of natural gas fuel, which is designated as the "State
52      Comprehensive Enhanced Transportation System Tax," at a rate
53      determined pursuant to this paragraph. Before January 1, 2026
54      2024, and each year thereafter, the department shall determine
55      the tax rate applicable to the sale of natural gas fuel for the
56      following 12-month period beginning January 1, rounded to the
57      nearest tenth of a cent, by adjusting the tax rate of 5.8 cents
58      per gallon by the percentage change in the average of the
59      Consumer Price Index issued by the United States Department of
60      Labor for the most recent 12-month period ending September 30,
61      compared to the base year average, which is the average for the
62      12-month period ending September 30, 2013.
63               (e)1.       An additional tax is imposed on each motor fuel
64      equivalent gallon of natural gas fuel for the privilege of
65      selling natural gas fuel. Before January 1, 2026 2024, and each
66      year thereafter, the department shall determine the tax rate
67      applicable to the sale of natural gas fuel, rounded to the
68      nearest tenth of a cent, for the following 12-month period
69      beginning January 1, by adjusting the tax rate of 9.2 cents per
70      gallon by the percentage change in the average of the Consumer
71      Price Index issued by the United States Department of Labor for
72      the most recent 12-month period ending September 30, compared to
73      the base year average, which is the average for the 12-month
74      period ending September 30, 2013.
75               2.      The department is authorized to adopt rules and publish

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         HB 529                                                                                                2023




 76      forms to administer this paragraph.
 77               (3)         Unless otherwise provided by this chapter, the taxes
 78      specified in subsection (2) are imposed on natural gas fuel when
 79      it is placed into the fuel supply tank of a motor vehicle as
 80      defined in s. 206.01(23). The person liable for payment of the
 81      taxes imposed by this section is the person selling or supplying
 82      the natural gas fuel to the end user, for use in the fuel supply
 83      tank of a motor vehicle as defined in s. 206.01(23).
 84               Section 3.         Subsection (1) of section 206.996, Florida
 85      Statutes, is amended to read:
 86               206.996        Monthly reports by natural gas fuel retailers;
 87      deductions.—
 88               (1)         For the purpose of determining the amount of taxes
 89      imposed by s. 206.9955, each natural gas fuel retailer shall
 90      file beginning with February 2026 2024, and each month
 91      thereafter, no later than the 20th day of each month, monthly
 92      reports electronically with the department showing informati on
 93      on inventory, purchases, nontaxable disposals, taxable uses, and
 94      taxable sales in gallons of natural gas fuel for the preceding
 95      month. However, if the 20th day of the month falls on a
 96      Saturday, Sunday, or federal or state legal holiday, a return
 97      must be accepted if it is electronically filed on the next
 98      succeeding business day. The reports must include, or be
 99      verified by, a written declaration stating that such report is
100      made under the penalties of perjury. The natural gas fuel

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         HB 529                                                                                                2023




101      retailer shall deduct from the amount of taxes shown by the
102      report to be payable an amount equivalent to 0.67 percent of the
103      taxes on natural gas fuel imposed by s. 206.9955(2)(a) and (e),
104      which deduction is allowed to the natural gas fuel retailer to
105      compensate it for services rendered and expenses incurred in
106      complying with the requirements of this part. This allowance is
107      not deductible unless payment of applicable taxes is made on or
108      before the 20th day of the month. This subsection may not be
109      construed as authorizing a deduction from the constitutional
110      fuel tax or the fuel sales tax.
111               Section 4.        This act shall take effect July 1, 2023.




                                                       Page 5 of 5

      CODING: Words stricken are deletions; words underlined are additions.
                                                                                                              hb0529-00
HB 669
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 669 Resiliency Energy Environment Florida Programs
SPONSOR(S): Fine
TIED BILLS:       IDEN./SIM. BILLS: SB 950

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Energy, Communications & Cybersecurity                                           Keating            Keating
     Subcommittee

  2) Local Administration, Federal Affairs & Special
     Districts Subcommittee

  3) Ways & Means Committee

  4) Commerce Committee

                                                     SUMMARY ANALYSIS
In 2010, the Legislature provided specific authority for local governments to create Property Assessed Clean
Energy (PACE) programs to provide up-front financing for certain qualifying improvements. Under these
programs, property owners may apply to the local government for funding to finance a qualifying improvement
and voluntarily enter into a financing agreement with the local government. “Qualifying improvements” include
energy conservation and efficiency improvements, renewable energy improvements, and wind resistance
improvements to existing facilities. Property owners finance qualifying improvements through a non-ad valorem
assessment on their property. Local governments determine whether to offer a residential or commercial PACE
program, whether to administer the program directly or through a for-profit or not-for-profit administrator, or any
combination thereof.

The bill makes several changes to Florida’s PACE law, including:
    Using the term “Resiliency Energy Environmental Florida (REEF) program” to refer to the programs
        used in Florida to provide PACE financing for qualifying improvements;
    Authorizing the use of PACE financing for refinancing and for improvements on new construction;
    Modifying eligibility requirements;
    Allowing the total of the mortgage-related debt and the amount of any PACE assessments on a
        property to reach 100 percent of the property’s fair market value;
    Requiring certain disclosures to be made to residential property owners prior to or at the time of signing
        a PACE financing agreement;
    Requiring certain disclosures to be made verbally, by telephone, prior to issuance of a notice to
        proceed;
    Establishing a maximum term for PACE assessments;
    Prohibiting the use of certain financing tools through PACE;
    Establishing provisions governing PACE program administrators’ enrollment and oversight of
        contractors that install qualifying improvements on residential real property;
    Prohibiting the use of certain terms in PACE marketing; and
    Requiring an annual report from PACE program administrators.

The bill does not have a fiscal impact on state or local government.

The bill has an effective date of July 1, 2023.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0669.ECC
DATE: 3/6/2023
                                                           FULL ANALYSIS

                                                   I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Current Situation

         Property Assessed Clean Energy (PACE) Programs

         Generally, Property Assessed Clean Energy (PACE) laws enable local governments to establish
         programs to provide financing for certain qualifying improvements on real property which reduce energy
         consumption and increase energy efficiency. PACE allows individual property owners to contract
         directly with qualified contractors for energy efficiency and renewable energy projects. The local
         government issues revenue bonds and uses the proceeds to provide initial project funding, which
         bonds are repaid by non-ad valorem assessments on participating property owners’ tax bills. 1 PACE
         programs are active in 30 states plus Washington D.C., but only California, Florida, and Missouri offer
         residential PACE programs.2

         PACE in Florida

         In 2010, the Legislature provided specific authority for local governments to create PACE programs. 3
         The law4 provides supplemental authority to local governments 5 concerning qualified improvements to
         residential and non-residential real property. The law provides that if a local government authorizes a
         PACE program, property owners may apply to the local government for funding to finance a qualifying
         improvement and voluntarily enter into a financing agreement with the local government. 6 “Qualifying
         improvements” include energy conservation and efficiency improvements, renewable energy
         improvements, and wind resistance improvements to existing facilities. 7

         At least 30 days before entering into the financing agreement, the property owner must provide notice
         to any mortgage holder or loan servicer of the intent to enter into the agreement, the maximum amount
         to be financed, and the maximum annual assessment required to repay the amount.8 The law provides
         that an acceleration clause for “payment of the mortgage, note, or lien or other unilateral modification
         solely as a result of entering into a financing agreement … is not enforceable.” 9 However, the mortgage
         holder or loan servicer may increase the required monthly escrow by an amount necessary to pay
         annually the qualifying improvement assessment.

         The law authorizes a local government to provide and finance qualifying improvements, levy a non-ad
         valorem assessment to fund a qualifying improvement, incur debt to provide financing for qualifying
         improvements, and collect costs incurred from financing qualifying improvements through a non-ad
         valorem assessment. These non-ad valorem assessments are senior to existing mortgage debt,10 so if
         the homeowner defaults on their mortgage or goes into foreclosure, the delinquent PACE assessment
         payments may be recovered before the mortgage. Current law also specifies that a PACE program
         may be administered by a for-profit entity or a not-for-profit organization on behalf of and at the
         discretion of the local government.

1 For more information, see http://www.pacenation.org and http://floridapace.gov/ (last visited Mar. 5, 2023).
2
  California offers residential PACE financing for improvements related to electric vehicle charging, infrastructure, energy ef ficiency,
renewable energy, seismic strengthening and water efficiency. Missouri offers PACE financing for improvements related to energy
efficiency and renewable energy. Additionally, Maine offers residential programs without holding a lien against properties. See PACE
Nation, PACE Programs https://www.pacenation.org/pace-programs/ (last visited Mar. 5, 2023).
3 Ch. 2010-139, Laws of Fla.
4 S. 163.08, F.S.
5 Section 163.08(2)(a), F.S., defines the term “local government” to mean a county, a municipality, a dependent special district as

defined in s. 189.012, or a separate legal entity created pursuant to s. 163.01(7) (the Florida Interlocal Cooperation Act).”
6 S. 163.08(4), F.S.
7 S. 163.08(2)(b), F.S.
8 S. 163.08(13), F.S.
9 S. 163.08(15), F.S.
10 See ss. 125.01(1)(r), 170.01 and 170.09, F.S.

STORAGE NAME: h0669.ECC                                                                                                            PAGE: 2
DATE: 3/6/2023
         In 2012, the Legislature expanded the definition of “local government” to allow a partnership of local
         governments formed pursuant to the Florida Interlocal Cooperation Act11 to enter into a financing
         agreement wherein the partnership, as a separate legal entity, imposes the PACE assessment. 12

         Before entering into a financing agreement, the local government must reasonably determine that:

                  All property taxes and other assessments on the property are paid and have not been
                   delinquent for the preceding 3 years (or the property owner’s period of ownership, if less than 3
                   years);
                  There are no involuntary liens on the property, including, but not limited to, construction liens;
                  No notices of default or other evidence of property-based debt delinquency have been recorded
                   during the preceding 3 years (or the property owner’s period of ownership, if less than 3 years);
                   and
                  The property owner is current on all mortgage debt on the property.13

         The total assessment cannot be for an amount greater than 20 percent of the just value of the property
         as determined by the county property appraiser, unless consent is obtained from the mortgage
         holders.14 Consideration of the property owner’s ability to repay the assessment is not required.

         In Florida, local governments typically have multiple non-exclusive agreements with a number of PACE
         providers. Generally, PACE providers are private companies that administer the local government’s
         PACE program on behalf of the local government and provide funding from private sources. PACE
         providers generally act as the program administrator for special districts created pursuant to an
         interlocal agreement between two or more Florida local governments. Once the PACE district is
         created, additional counties or municipalities may join the special district as members, authorizing the
         PACE provider for the special district to administer PACE programs on behalf of the newly joined
         members.15 PACE providers generally maintain a list of approved contractors authorized to provide
         qualifying improvements.16

         For example, Broward County authorizes the following PACE providers: 17

                  Counterpointe Energy Solutions administers a commercial PACE program for the Florida PACE
                   Funding District.
                  Berkadia administers a commercial PACE program the Florida Renewable Energy District.
                  CleanFund administers a commercial PACE program for the Florida Renewable Energy District.
                  Dividend Finance administers the “Dividend” Program for the Florida Renewable Energy
                   District.
                  FortiFi Financial administers a residential PACE program for the Florida PACE Funding Agency
                   District.
                  Greenworks Lending administers a commercial PACE program for the Florida Resiliency and
                   Energy District.
                  Lever Energy Capital administers a commercial PACE program for the Florida Resiliency and
                   Energy District.
                  Home Run Financing administers a residential PACE Program for the Florida PACE Funding
                   Agency District.

11 S. 163.01(7), F.S.
12 Ch. 2012-117, Laws of Fla.
13 S. 163.08(9), F.S.
14 S. 163.08(12)(a), F.S.
15 See, e.g., Green Corridor Property Assessed Clean Energy (PACE) District Town of Cutler Bay, Florida Financial Report for the

Fiscal Year Ended Sept. 30, 2020, at 13,
https://flauditor.gov/pages/specialdistricts_efile%20rpts/2020%20green%20corridor%20property%20assessment%20clean%20energy
%20(pace)%20district.pdf (last visited Mar. 5, 2023).
16 See, e.g., Sarasota County, PACE, https://www.scgov.net/government/uf-ifas-extension-and-sustainability/pace (last visited Mar.5,

2023).
17 Broward County, Property Assessed Clean Energy (PACE)

https://www.broward.org/Sustainability/Documents/PACEProviderList_2022.pdf (last visited Mar. 5, 2023).
STORAGE NAME: h0669.ECC                                                                                                       PAGE: 3
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                 Rahill administers a commercial PACE program for the Florida Resiliency and Energy District.
                 Renew Financial administers PACE programs under the “RenewPACE” Program (residential
                  and commercial) for the Florida Green Finance Authority.
                 Structured Finance Associates administers a commercial PACE program for the Florida
                  Resiliency and Energy District.
                 Twain Financial Partners administers a commercial PACE program for the Florida Renewable
                  Energy District.

         Local governments may choose whether to offer a residential or commercial PACE program, whether
         to administer the program directly or through a third-party PACE provider, or any combination thereof.

         PACE financing interest rates vary but are typically higher than traditional financing. 18 Interest rates and
         fees for a project are set by the PACE provider when the agreement is finalized with the property
         owner.19

         Federal Housing Finance Agency and Super-Priority Liens

         In 2010, and again in 2014,20 the Federal Housing Finance Agency (FHFA) directed mortgage
         underwriters Fannie Mae and Freddie Mac not to purchase mortgages of homes encumbered by a first-
         lien PACE loan due to its senior status above a mortgage. Under normal circumstances, real estate lien
         priority is established by the order in which the liens are filed.21

         According to the FHFA, such super-priority liens increase the risk of losses to taxpayers. Fannie Mae
         and Freddie Mac support the housing finance market by purchasing, guaranteeing, and securitizing
         single-family mortgages. Therefore, mortgages supported by Fannie Mae and Freddie Mac must
         remain in first-lien position, meaning they have first priority in receiving the proceeds from the sale of a
         property in foreclosure. Although FHFA generally supports energy retrofit financing programs, FHFA
         acknowledges that such programs should be structured to ensure protection of the core financing for
         the home.22

         This restriction has two potential implications for borrowers. First, a homeowner with a first-lien PACE
         loan may not refinance their existing mortgage with a Fannie Mae or Freddie Mac mortgage. Second,
         anyone wanting to buy a home that already has a first-lien PACE loan cannot use a Fannie Mae or
         Freddie Mac loan for the purchase. These restrictions may reduce the marketability of the house or
         require the homeowner to pay off the PACE loan before selling the house. 23


18
   The Balance, How PACE Loans Work, https://www.theb alancemoney.com/pace-loans-financing-for-upgrades-4124071 (last visited
Mar. 5, 2023).
19 See PACE Broward, Frequently Asked Questions,

https://www.broward.org/Climate/Documents/PACE%20Broward%20FAQ%20Sheet_Update6_09272021.pdf (last visited Mar. 5, 2023).
20 Federal Housing Finance Agency, FHFA Statement on Certain Energy Retrofit Loan Programs (July, 6, 2010),

http://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Statement-on-Certain-Energy-Retrofit-Loan-Programs.aspx (last visited Mar. 5,
2023). See also Federal Housing Financial Agency, Statement of the Federal Housing Finance Agency on Certain Super Priority Liens
(December 22, 2014)(“FHFA wants to make clear to homeowners, lenders, other financial institutions, state officials, and the public that
Fannie Mae and Freddie Mac’s policies prohibit the purchase of a mortgage where the property has a first -lien PACE loan attached to
it”) http://www.fhfa.gov/Media/PublicAffairs/Pages/Statement-of-the-Federal-Housing-Finance-Agency-on-Certain-Super-Priority-
Liens.aspx (last visited Mar. 5, 2023).
21
   “Real estate liens generally are ordered so that prior liens are paid in foreclosure before liens filed later in time. For example, a
mortgage loan used to buy the property takes priority over a later mortg age loan used to remodel the home. The earliest and thus
highest priority mortgage loan is known as a first lien, while the subsequent mortgage loan is deemed a second lien. If the h omeowner
defaults on the second lien loan, the first lien mortgage holder retains the lien even if the second lien mortgage holder forecloses;
however, the converse is not true. Tax assessments are an exception to this lien priority rule. Generally, unpaid property ta x
assessments have priority over other liens, regardless of the date the prior liens were recorded or when the tax assessments became
delinquent. This makes the lien priority for PACE financing senior to liens for mortgage loans closed prior to the homeowner’ s
acceptance of the PACE financing. In the case of default by the homeowner on the PACE assessment, local governments and
investors in PACE bonds can expect to collect the balance owed on a PACE assessment before any recovery by a mortgage lender. ”
Prentiss Cox, Keeping PACE? The Case Against Property Assessed Clean Energy Financing Programs, 83 U. Colo. L. Rev. 83, 94
(2011), https://scholarship.law.umn.edu/faculty_articles/549 (last visited Mar. 5, 2023).
22 FHFA Statement on Certain Energy Retrofit Loan Programs, supra, note 20.
23 FHFA Statement on Certain Energy Retrofit Loan Programs, supra, note 20.

STORAGE NAME: h0669.ECC                                                                                                        PAGE: 4
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         Additionally, in December 2017, the United States Department of Housing and Urban Development
         announced that the Federal Housing Administration will no longer insure new mortgages on properties
         that include PACE assessments, citing concerns about the potential for increased losses to the Mutual
         Mortgage Insurance Fund resulting from the priority lien status given to such assessments. 24

         Some residential PACE programs are now operating with loan loss reserve funds, appropriate
         disclosures, or other protections meant to address FHFA's concerns. 25 For example, in 2013, California
         created a reserve fund to compensate first mortgage lenders in case of a foreclosure or a forced sale
         attributable to a PACE loan. Additionally, Oklahoma and Vermont have passed legislation to
         downgrade PACE from senior lien to junior lien, and there have been attempts by Congress to revise
         residential PACE programs at the federal level, including the 2014 PACE Assessment Protection Act. 26

         Consumer Protection

         Consumer issues have surrounded the PACE programs from their inception. 27 These include the cost
         of funding, contractor sales techniques (notably, responding to a limited homeowner problem and
         marketing a full house retrofit), rolling the administrative fees for the local government into the PACE
         loan amount, product sales at above market interest rates, workmanship issues, inadequate
         disclosures, and indiscriminate lending regardless of ability to repay. 28 An administrator of residential
         PACE programs in California and Florida recently settled with the Federal Trade Commission and
         California to address complaints that the administrator recruited and authorized contractors, without
         adequate training or oversight, to sell its financing, leading to many consumers being deceived during
         the sales process and being unfairly subjected to liens on their homes without their express, informed
         consent.29

         In response to these consumer issues, Congress amended the Truth in Lending Act in 2018 to direct
         the Consumer Financial Protection Bureau to implement federal regulations which provide more
         effective consumer protections relating to PACE loans, especially those related to the ability of a
         homeowner to repay the loan.30

         The United States Department of Energy maintains “best practice guidelines” for residential PACE
         financing programs, which includes measures relating to:

                 Establishing financial eligibility and verifying property ownership;
                 Confirming property-based debt, tax assessments, and property valuation;
                 Reviewing property owner income and debt obligations;
                 Establishing consumer and lender protections;
                 Establishing property owner education and disclosures;
                 Providing a right to cancel the purchase;

24 FHFA, Property Assessed Clean Energy (PACE) Program, 85 Fed. Reg. 11,2738 (Jan. 16, 2020).
25 Commercial PACE programs were not directly affected by FHFA’s actions becau se Fannie Mae and Freddie Mac do not underwrite

commercial mortgages.
26 NCSL, PACE Financing https://www.ncsl.org/research/energy/pace-financing.aspx (last visited Mar. 7, 2021).
27 “PACE loans, offered through home improvement contractors, often in door-to-door sales, and secured by a property tax lien, are

collected through a property tax assessment that takes priority over any existing mortgage. PACE programs must be authorized by
state and local governments, but are privately run with little or no govern ment oversight. Over the last two years, there has been a
sharp increase in homeowners seeking assistance from legal services and other organizations in relation to PACE loans. The go al of
improving home energy efficiency is being overshadowed by the lack of adequate consumer protection for these loans. Weak PACE
loan regulation enables contractors to saddle homeowners with debt they cannot afford and puts their homes at risk for forecl osure.”
National Consumer Law Center, Advocates Applaud CFPB’s Intention to Deal with PACE Loan Program Ab uses (Mar. 4, 2019),
https://www.nclc.org/media-center/advocates-applaud-cfpbs-intention-to-deal-with-pace-loan-program-abuses.html (last visited Mar. 5,
2023).
28 FHFA, Property Assessed Clean Energy (PACE) Program, 85 Fed. Reg. 11,2738 (Jan. 16, 2020).
29 Federal Trade Commission, FTC, California Act to Stop Ygrene Energy Fund from Deceiving Consumers Ab out PACE Financing,

Placing Liens on Homes Without Consumers’ Consent, https://www.ftc.gov/news -events/news/press-releases/2022/10/ftc-california-act-
stop-ygrene-energy-fund-deceiving-consumers-about-pace-financing-placing-liens (last visited Mar. 5, 2023).
30 FHFA, Property Assessed Clean Energy (PACE) Program, 85 Fed. Reg. 11,2738 (Jan. 16, 2020). See also Public Law 115–174

(2018), section 307; codified at 15 U.S.C. 1639c(b)(3)(C). and Bureau of Consumer Financial Protection, Advance Notice of Pro posed
Rulemaking on Residential Property Assessed Clean Energy Financing, 84 FR 8479 (Mar. 8, 2019).
STORAGE NAME: h0669.ECC                                                                                                     PAGE: 5
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                 Determining appropriate minimum equity requirements and appropriate maximum
                  assessments;
                 Providing equipment specifications and energy assessments;
                 Defining the relationship between PACE assessments and mortgage financing;
                 Providing for non-acceleration upon property owner default;
                 Notifying mortgage holders of record; and
                 Addressing the needs and potential vulnerabilities of low-income and elderly households.31

        Some local governments in Florida have implemented more stringent consumer protections than those
        required by Florida law.32

        Effect of the Bill

        The bill makes several changes to Florida’s PACE law.

        Definitions

        The bill creates and uses the term “Resiliency Energy Environmental Florida (REEF) program” to refer
        to the programs used in Florida to provide PACE financing for qualifying improvements and creates
        definitions for additional terms related to PACE financing, as follows:

                Resiliency Energy Environment Florida (REEF) program means a program established by a
                 local government, alone or in partnership with other local governments or a program
                 administrator, to finance qualifying improvements on nonresidential real property or residential
                 real property.
                Assessment financing agreement means the financing agreement, under a REEF program,
                 between a local government and a property owner for the acquisition or installation of qualifying
                 improvements.
                Non-ad valorem assessment or assessment has the same meaning as the term "non-ad
                 valorem assessment" as defined in s. 197.3632(1), F.S.
                Residential real property means a residential real property composed of four or fewer dwelling
                 units which has been or will be improved by a qualifying improvement.
                Nonresidential real property means any property not defined as residential real property and
                 which will be or has been improved by a qualifying improvement. The term includes multifamily
                 residential property composed of five or more dwelling units.
                Program administrator means an entity, including, but not limited to, a for-profit or not-for-profit
                 entity, with which a local government may contract to administer a REEF program.




31 Department of Energy, Best Practice Guidelines for Residential PACE Financing Programs (Nov. 18, 2016),

https://www.energy.gov/sites/prod/files/2016/11/f34/best-practice-guidelines-RPACE.pdf (last visited Mar. 5, 2023).
32 See, e.g., Palm Beach County, Ord. No. 2017-012, Section 6. Disclosure Requirements

https://discover.pbcgov.org/resilience/PDF/PACE_ORDINANCE_2017 -012%20-%20ADA%20Compliant.pdf (last visited Mar. 5, 2023).
STORAGE NAME: h0669.ECC                                                                                            PAGE: 6
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         Uses for PACE Financing

         The bill expands the authorized uses of PACE financing. First, the bill specifies that PACE financing
         may be used as refinance tool. Second, the bill authorizes PACE financing to be used for all types of
         qualifying improvements on residential and nonresidential real property under new construction.

         Eligibility Requirements for PACE Financing

         The bill softens existing eligibility requirements as follows:

                 Delinquency in payment of property taxes or other assessments on a property during the
                  preceding 3 years do not preclude the use of PACE financing if the delinquency was not longer
                  than 30 days.
                 Involuntary liens on a property do not preclude the use of PACE financing if not greater than
                  $1,000.
                 Recorded notices of default or other evidence of property-based debt delinquency during the
                  preceding 3 years do not preclude use of PACE financing if released during that time.

         The bill requires that the local government or program administrator, before entering into a PACE
         financing agreement, must:

                 Ask the property owner whether any other PACE assessments have already been recorded, or
                  funded but not yet recorded, on the property.33
                 For a residential property, reasonably determine that the property is not subject to an existing
                  home equity conversion mortgage or reverse mortgage product.
                 For a residential property, reasonably determine that the property was not gifted to the
                  homeowner for free by a nonprofit entity “as may be disclosed by the property owner.”

         Ability to Repay

         The bill requires that, prior to final approval of a PACE assessment on residential property, the program
         administrator must reasonably determine that the property owner has the ability to pay the estimated
         annual assessment. To make this determination, the program administrator must determine that the
         total estimated annual payment amount for all PACE assessments on the property does not exceed 10
         percent of the property owner’s annual household income. The bill provides that income may be
         confirmed using information from reputable third parties that provide reasonably reliable evidence of the
         property owner’s household income and may not be confirmed solely by a property owner’s statement.

         Debt-to-Value Limitations on PACE Assessments

         Under current law, the total amount of any PACE assessment may not exceed 20 percent of a
         property’s just value, without consent of the holder or servicer of a mortgage secured by a property.
         The bill replaces the “just value” standard in current law 34 with a “fair market value” standard.

         The bill provides that, for residential property, the combined mortgage-related debt and the total
         amount of any PACE assessments on the property may not exceed 100 percent of the property’s fair
         market value, as determined by reputable third parties. However, this limit can be exceeded if a
         property owner fails to disclose whether other PACE assessments have already been recorded, or
         funded but no yet recorded, on the property.

         Disclosures


33 The bill provides that failure of a property owner to disclose this information does not invalidate a PACE financing agreement or any

obligation thereunder, even if the total financed amount of the qualifying improvements causes the property’s debt -to-value ratio to
exceed the limit of 100 percent specified in the bill.
34 Under current law, “just value” is the value of the property as determined by the county property appraiser.

STORAGE NAME: h0669.ECC                                                                                                           PAGE: 7
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       The bill requires that the program administrator, before or at the same time that a residential property
       owner signs a PACE financing agreement, must provide a financing estimate and disclosure that
       includes the following:

              The total amount estimated to be funded, including the cost of the qualifying improvements,
               program fees, and capitalized interest, if any.
              The estimated annual assessment.
              The term of the assessment.
              The interest charged and estimated annual percentage rate.
              A description of the qualifying improvement.
              A disclosure that if the property owner sells or refinances the property, the property owner, as a
               condition of the sale or the refinance, may be required by a mortgage lender to pay off the full
               amount owed under each assessment financing agreement.
              A disclosure that the assessment will be collected along with the property owner's property
               taxes and will result in a lien on the property from the date the financing agreement is recorded.
              A disclosure that failure to pay the assessment may result in penalties and fees, along with the
               issuance of a tax certificate that could result in the property owner losing the property.

       The bill provides that the program administrator, before a notice to proceed is issued on residential real
       property, must conduct an oral, recorded telephone call with the property owner or an authorized
       representative. The program administrator must ask the property owner if he or she would like to
       communicate primarily in a language other than English. On the telephone call, the program
       administrator must confirm all of the following with the property owner:

              That at least one property owner has access to a copy of the PACE financing agreement and
               financing estimates and disclosures.
              The qualifying improvements being financed.
              The total estimated annual costs that the property owner will have to pay under the financing
               agreement, including applicable fees.
              The total estimated average monthly equivalent amount of funds the residential real property
               owner would have to save in order to pay the annual costs of the assessment, including
               applicable fees.
              The estimated due date for the property owner's first property tax payment that includes the
               assessment.
              The term of the financing agreement.
              That payments for the financing agreement will cause the property owner's annual property tax
               bill to increase, and that payments will be made through an additional annual assessment on
               the property and either will be paid directly to the county tax collector's office as part of the total
               annual secured property tax bill or may be paid through the property owner's mortgage escrow
               account.
              That the property owner has disclosed whether the property has received, or the owner is
               seeking, additional assessments funded under this section and that the owner has disclosed all
               other PACE assessments which are or are about to be placed on the property.
              That the property will be subject to a lien during the term of the financing agreement and that
               the obligations under the agreement may be required to be paid in full before the residential real
               property owner sells or refinances the property.
              That any potential utility or insurance savings are not guaranteed and will not reduce the
               assessment or total assessment amount.
              That the program administrator does not provide tax advice, and the property owner should
               seek professional tax advice if he or she has questions regarding tax credits, tax deductibility, or
               other tax impacts of the qualifying improvement or the financing agreement.

       A program administrator may not leave a voicemail to satisfy this requirement.

       Terms of PACE Financing Agreements

STORAGE NAME: h0669.ECC                                                                                        PAGE: 8
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         The bill limits the term of a PACE financing agreement to the lesser of: (1) 30 years; or (2) the greater
         of either the weighted average estimated useful life of all qualifying improvements being financed or the
         estimated useful life of the qualifying improvements to which the greatest portion of funds is disbursed.

         The bill prohibits a PACE financing agreement from including a negative amortization schedule,35 a
         balloon payment, or prepayment fees other than nominal administrative costs.

         PACE Contractors

         The bill establishes terms for the enrollment and oversight of contractors by PACE program
         administrators. These provisions apply only with respect to PACE financing for residential real property.

         Before enrolling a contractor to install qualifying improvements, the bill provides that program
         administrators must make a reasonable effort to review that the contractor maintains in good standing
         an appropriate license from the state, if applicable, as well as any other permit, license, or registration
         required for engaging in business in the jurisdiction in which he or she operates and that the contractor
         maintains all state-required bond and insurance coverage. Program administrators must also obtain the
         contractor's written agreement that the contractor will act in accordance with all applicable laws,
         including applicable advertising and marketing laws and regulations.

         The bill further provides that program administrators must maintain a process to enroll new contractors
         which includes reasonable review of the following for each contractor: relevant work or project history;
         financial and reputational background checks; a criminal background check; and status on the Better
         Business Bureau online platform or another online platform that tracks contractor reviews.

         The bill also provides that program administrators must maintain a process for monitoring enrolled
         contractors with regard to performance and compliance with program policies and shall implement
         policies for suspending and terminating enrolled contractors based on violations of program policies or
         unscrupulous behavior. Program administrators must maintain a policy for determining the conditions
         on which a contractor may reinstated to the program.

         The bill authorizes program administrators to pay or reimburse contractors for any expense allowable
         under applicable state law and not otherwise prohibited under Florida’s PACE law including, but not
         limited to, marketing, training, and promotions.

         Before disbursing funds to a contractor for a qualifying improvement on residential real property, a
         program administrator must first confirm that the applicable work or service has been completed
         through any of the following: a written certification from the property owner; a recorded telephone call
         with the property owner; a review of geotagged and time-stamped photographs; a review of a final
         permit; or a site inspection through third-party means.

         The bill prohibits a program administrator from disclosing to a contractor or to a third party engaged in
         soliciting a PACE financing agreement the maximum financing amount for which a residential property
         owner is eligible. Program administrators are also prohibited from providing a contractor with any
         payment, fee, or kickback in exchange for referring PACE financing business relating to a specific
         PACE financing agreement on residential property.

         The bill prohibits PACE contractors from presenting a higher price for a qualifying improvement
         financed by a PACE assessment than the contractor would otherwise reasonably present if the
         qualifying improvement was not being financed through a PACE assessment.

         PACE Marketing

         The bill prohibits program administrators from representing that PACE financing is a government
         assistance program, that qualifying improvements are free or that PACE financing is a free program, or
35 The bill provides that capitalized interest included in the original balance of the assessment financing agreement does not c onstitute

negative amortization.
STORAGE NAME: h0669.ECC                                                                                                            PAGE: 9
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       that the financing of a qualifying improvement under PACE does not require the property owner to
       repay the financial obligation. Program administrators are also prohibited from making any
       representation as to the tax deductibility of a PACE assessment.

       Annual Report

       The bill requires each program administrator to provide, at a reasonable time following the end of the
       prior calendar year, an annual report to the dependent special district as defined in s. 189.012 or a
       separate legal entity created pursuant to s. 163.01(7) which it has contracted with to administer a
       PACE program and shall include information and data related to the following:

              The total number of property owner complaints received which are associated with project
               funding in the report year.
              Of the total number of property owner complaints received which are associated with project
               funding in the report year:
                   o The number and percentage of complaints that relate to PACE financing.
                   o The number and percentage of complaints that relate to a contractor or the workmanship
                       of a contractor and are not related to PACE financing.
                   o The number and percentage of complaints that relate to both a contractor and the PACE
                       financing.
                   o The number and percentage of complaints received which were resolved and the
                       number and percentage of complaints received which were not resolved.
              The percentage of property owner complaints received expressed as a total of all projects
               funded in the report year.

       Other Provisions

       The bill provides that a residential real property owner may cancel a PACE financing agreement within
       3 business days after signing the agreement without any financial penalty from the program
       administrator for doing so.

       The bill provides that a notice of lien for the full amount of the financing may be recorded in the public
       records of the county where the property is located. The lien shall not be enforceable in a manner that
       results in the acceleration of the remaining nondelinquent unpaid balance under the PACE financing
       agreement.

       The bill provides that program administrators must use appropriate methodologies or technologies to
       identify and verify the identity of the residential real property owner who executes an assessment
       financing agreement.

       The bill requires program administrators to develop and implement policies and procedures for
       responding to, tracking, and helping to resolve questions and property owner complaints as soon as
       reasonably practicable.




STORAGE NAME: h0669.ECC                                                                                    PAGE: 10
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   B. SECTION DIRECTORY:
       Section 1. Amends s. 163.08, F.S., relating to supplemental authority for improvements to real
       property.

       Section 2. Provides an effective date of July 1, 2023.


                          II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       To the extent that a local government or program administrator does not already impose measures
       similar to those in the bill, the bill may impose costs on PACE program administrators.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
          action requiring the 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.

       2. Other:
          None.

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




STORAGE NAME: h0669.ECC                                                                                  PAGE: 11
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   C. DRAFTING ISSUES OR OTHER COMMENTS:
       Ability to Repay

       To determine a property owner’s ability to repay a PACE assessment, the bill requires a determination
       that the total annual payment for all PACE assessments on a property does not exceed 10 percent of
       the property owner’s household income. This determination does not account for the property owner’s
       household expenses and other debt obligations, thus may not provide an accurate evaluation of a
       property owner’s ability to repay a PACE assessment while meeting those expenses and debt
       obligations.

       Debt-to-Value

       The bill allows a residential property owner, through the addition of PACE assessments to existing
       mortgage debt, to obligate the entire value of its property to secure debt, putting the property owner at
       greater risk of being “upside down,” which would make refinancing or selling the property more difficult.

       Disclosures

       Under the bill, certain material disclosures may not occur until the time a PACE financing agreement is
       being signed. The bill does not specify the form (e.g., written, oral, electronic) in which disclosures
       required prior to or at the time of signing a PACE financing agreement must be provided and does not
       require acknowledgment of these disclosures.

       Certain disclosures are required to be made only verbally, by phone, after a PACE financing agreement
       may have been signed. Some of these disclosures may be material to some property owners but may
       not come before the end of the 3-day cancellation period provided in the bill, such as the following:

              That any potential utility or insurance savings are not guaranteed and will not reduce the
               assessment or total assessment amount.
              That the program administrator does not provide tax advice, and the property owner should
               seek professional tax advice if he or she has questions regarding tax credits, tax deductibility, or
               other tax impacts of the qualifying improvement or the PACE financing agreement.
              The total estimated average monthly equivalent amount of funds the residential real property
               owner would have to save in order to pay the annual costs of the assessment, including
               applicable fees.

       PACE Contractors and Marketing

       The bill requires PACE program administrators to maintain a process for monitoring enrolled
       contractors with regard to performance and compliance with program policies and shall implement
       policies for suspending and terminating enrolled contractors based on violations of program policies or
       unscrupulous behavior. For this provision to be effective, local governments and/or PACE program
       administrators will need to adopt sufficient program policies and behavioral standards for contractors.

       The bill imposes certain marketing prohibitions on PACE program administrators, but these prohibitions
       do not apply to contractors or other third-party marketers.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: h0669.ECC                                                                                    PAGE: 12
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           HB 669                                                                                                2023




    1                                         A bill to be entitled
    2               An act relating to Resiliency Energy Environment
    3               Florida programs; amending s. 163.08, F.S.; defining
    4               terms; providing that a property owner may apply to a
    5               Resiliency Energy Environment Florida (REEF) program
    6               for funding to finance a qualifying improvement and
    7               may enter into an assessment financing agreement with
    8               a local government; providing that REEF program costs
    9               may be collected as non-ad valorem assessments;
10                  authorizing a local government to enter into an
11                  agreement with a program administrator to administer a
12                  REEF program on the local government's behalf;
13                  revising and specifying public recording requirements
14                  for assessment financing agreements and notices of
15                  lien; revising requirements that apply to local
16                  governments or program administrators in determining
17                  eligibility for assessment financing; revising
18                  requirements for qualifying improvements; revising the
19                  calculation of non-ad valorem assessment limits;
20                  providing construction; specifying underwriting,
21                  financing estimate, disclosure, and confirmation
22                  requirements for program administrators relating to
23                  residential real property; authorizing a residential
24                  real property owner, under certain circumstances and
25                  within a certain timeframe, to cancel an assessment

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        HB 669                                                                                                2023




26               financing agreement without financial penalty;
27               specifying limitations on assessment financing
28               agreement terms for residential real property;
29               prohibiting certain financing terms for residential
30               real property; specifying requirements for, and
31               certain prohibited acts by, program administrators
32               relating to assessment financing agreements and
33               contractors for qualifying improvements to residential
34               real property; specifying additional annual reporting
35               requirements for program administrators; providing
36               construction and applicability; conforming provisions
37               to changes made by the act; providing an effective
38               date.
39
40      Be It Enacted by the Legislature of the State of Florida:
41
42               Section 1.        Subsection (16) of section 163.08, Florida
43      Statutes, is renumbered as subsection (32), subsections (1),
44      (2), (4), (6) through (10), and (12) through (14) are amended,
45      and a new subsection (16) and subsections (17) through (31) are
46      added to that section, to read:
47               163.08      Supplemental authority for improvements to real
48      property.—
49               (1)(a)      In chapter 2008-227, Laws of Florida, the
50      Legislature amended the energy goal of the state comprehensive

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        HB 669                                                                                                2023




51      plan to provide, in part, that the state shall reduce its energy
52      requirements through enhanced conservation and efficiency
53      measures in all end-use sectors and reduce atmospheric carbon
54      dioxide by promoting an increased use of renewable energy
55      resources. That act also declared it the public policy of the
56      state to play a leading role in developing and instituting
57      energy management programs that promote energy conservation,
58      energy security, and the reduction of greenhouse gases. In
59      addition to establishing policies to promote the use of
60      renewable energy, the Legislature provided for a schedule of
61      increases in energy performance of buildings subject to the
62      Florida Energy Efficiency Code for Building Construction. In
63      chapter 2008-191, Laws of Florida, the Legislature adopted new
64      energy conservation and greenhouse gas reduction comprehensive
65      planning requirements for local governments. In the 2008 general
66      election, the voters of this state approved a constitutional
67      amendment authorizing the Legislature, by general law, to
68      prohibit consideration of any change or improvement made for the
69      purpose of improving a property's resistance to wind damage or
70      the installation of a renewable energy source device in the
71      determination of the assessed value of residential real
72      property.
73               (b)         The Legislature finds that all energy-consuming-
74      improved properties that are not using energy conservation
75      strategies contribute to the burden affecting all improved

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         HB 669                                                                                                2023




 76      property resulting from fossil fuel energy production. Improved
 77      property that has been retrofitted with energy-related
 78      qualifying improvements receives the special benefit of
 79      alleviating the property's burden from energy consumption. All
 80      improved properties not protected from wind damage by wind
 81      resistance qualifying improvements contribute to the burden
 82      affecting all improved property resulting from potential wind
 83      damage. Improved property that has been retrofitted with wind
 84      resistance qualifying improvements receives the special benefit
 85      of reducing the property's burden from potential wind damage.
 86      Further, the installation and operation of qualifying
 87      improvements not only benefit the affected properties for which
 88      the improvements are made, but also assist in fulfilling the
 89      goals of the state's energy and hurricane mitigation policies.
 90               (c)         In order to make qualifying improvements more
 91      affordable and assist property owners who wish to undertake such
 92      improvements, the Legislature finds that there is a compelling
 93      state interest in enabling property owners to voluntarily
 94      finance such improvements with local government assistance.
 95               (d)(c)        The Legislature determines that the actions
 96      authorized under this section, including, but not limited to,
 97      the financing of qualifying improvements through the execution
 98      of assessment financing agreements and the related imposition of
 99      voluntary assessments, are reasonable and necessary to serve and
100      achieve a compelling state interest and are necessary for the

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         HB 669                                                                                                2023




101      prosperity and welfare of the state and its property owners and
102      inhabitants.
103               (2)         As used in this section, the term:
104               (a)         "Assessment financing agreement" means the financing
105      agreement, under a REEF program, between a local government and
106      a property owner for the acquisition or installation of
107      qualifying improvements.
108               (b)(a)        "Local government" means a county, a municipality,
109      a dependent special district as defined in s. 189.012, or a
110      separate legal entity created pursuant to s. 163.01(7).
111               (c)         "Non-ad valorem assessment" or "assessment" has the
112      same meaning as the term "non-ad valorem assessment" as defined
113      in s. 197.3632(1).
114               (d)         "Nonresidential real property" means any property not
115      defined as residential real property and which will be or has
116      been improved by a qualifying improvement. The term includes
117      multifamily residential property composed of five or more
118      dwelling units.
119               (e)         "Program administrator" means an entity, including,
120      but not limited to, a for-profit or not-for-profit entity, with
121      which a local government may contract to administer a REEF
122      program.
123               (f)(b)        "Qualifying improvement" includes any:
124               1.      Energy conservation and efficiency improvement, which
125      is a measure to reduce consumption through conservation or a

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         HB 669                                                                                                2023




126      more efficient use of electricity, natural gas, propane, or
127      other forms of energy on the property, including, but not
128      limited to, air sealing; installation of insulation;
129      installation of energy-efficient heating, cooling, or
130      ventilation systems; building modifications to increase the use
131      of daylight; replacement of windows; installation of energy
132      controls or energy recovery systems; installation of electric
133      vehicle charging equipment; and installation of efficient
134      lighting equipment.
135               2.      Renewable energy improvement, which is the installation
136      of any system in which the electrical, mechanical, or thermal
137      energy is produced from a method that uses one or more of the
138      following fuels or energy sources: hydrogen, solar energy,
139      geothermal energy, bioenergy, and wind energy.
140               3.      Wind resistance improvement, which includes, but is not
141      limited to:
142               a.      Improving the strength of the roof deck attachment;
143               b.      Creating a secondary water barrier to prevent water
144      intrusion;
145               c.      Installing wind-resistant shingles;
146               d.      Installing gable-end bracing;
147               e.      Reinforcing roof-to-wall connections;
148               f.      Installing storm shutters; or
149               g.      Installing opening protections.
150               (g)         "Residential real property" means a residential real

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         HB 669                                                                                                2023




151      property composed of four or fewer dwelling units which has been
152      or will be improved by a qualifying improvement.
153               (h)         "Resiliency Energy Environment Florida (REEF) program"
154      means a program established by a local government, alone or in
155      partnership with other local governments or a program
156      administrator, to finance qualifying improvements on
157      nonresidential real property or residential real property.
158               (4)         Subject to local government ordinance or resolution, a
159      property owner may apply to the REEF program local government
160      for funding to finance a qualifying improvement and enter into
161      an assessment a financing agreement with the local government.
162      Costs incurred by the REEF program local government for such
163      purpose may be collected as a non-ad valorem assessment. A non-
164      ad valorem assessment shall be collected pursuant to s. 197.3632
165      and, notwithstanding s. 197.3632(8)(a), shall not be subject to
166      discount for early payment. However, the notice and adoption
167      requirements of s. 197.3632(4) do not apply if this section is
168      used and complied with, and the intent resolution, publication
169      of notice, and mailed notices to the property appraiser, tax
170      collector, and Department of Revenue required by s.
171      197.3632(3)(a) may be provided on or before August 15 in
172      conjunction with any non-ad valorem assessment authorized by
173      this section, if the property appraiser, tax collector, and
174      local government agree.
175               (6)         A local government may enter into an agreement with a

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         HB 669                                                                                                2023




176      program administrator to administer a REEF program on behalf of
177      the local government A qualifying improvement program may be
178      administered by a for-profit entity or a not-for-profit
179      organization on behalf of and at the discretion of the local
180      government.
181               (7)         A local government may incur debt for the purpose of
182      providing financing for qualifying such improvements, which debt
183      is payable from revenues received from the improved pro perty, or
184      from any other available revenue source authorized under this
185      section or by other law.
186               (8)         A local government may enter into an assessment a
187      financing agreement to finance or refinance a qualifying
188      improvement only with the record owner of the affected property.
189      Any assessment financing agreement entered into pursuant to this
190      section or a summary memorandum of such agreement shall be
191      submitted for recording recorded in the public records of the
192      county within which the property is located by the sponsoring
193      unit of local government within 5 days after execution of the
194      agreement. The recorded agreement shall provide constructive
195      notice that the assessment to be levied on the property
196      constitutes a lien of equal dignity to county taxes and
197      assessments from the date of recordation. A notice of lien for
198      the full amount of the financing may be recorded in the public
199      records of the county where the property is located. Such lien
200      shall not be enforceable in a manner that results in the

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         HB 669                                                                                                2023




201      acceleration of the remaining nondelinquent unpaid balance under
202      the assessment financing agreement.
203               (9)         Before entering into an assessment a financing
204      agreement, the local government, or the program administrator
205      acting on its behalf, shall reasonably determine that all of the
206      following conditions are met:
207               (a)         All property taxes and any other assessments levied on
208      the same bill as property taxes are current paid and have not
209      been delinquent for more than 30 days for the preceding 3 years
210      or the property owner's period of ownership, whichever is less.;
211               (b)         that There are no involuntary liens greater than
212      $1,000, including, but not limited to, construction liens on the
213      property.;
214               (c)         that No notices of default or other evidence of
215      property-based debt delinquency have been recorded and not
216      released during the preceding 3 years or the property owner's
217      period of ownership, whichever is less.;
218               (d)         The local government or program administrator has
219      asked the property owner whether any other assessments under
220      this section have been recorded or have been funded and not yet
221      recorded on the property. The failure of a property owner to
222      disclose information set forth in this paragraph does not
223      invalidate an assessment financing agreement or any obligation
224      thereunder, even if the total financed amount of the qualifying
225      improvements exceeds the amount that would otherwise be

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         HB 669                                                                                                2023




226      authorized under paragraph (12)(a).
227               (e)         and that The property owner is current on all mortgage
228      debt on the property.
229               (f)         The residential property is not subject to an existing
230      home equity conversion mortgage or reverse mortgage product.
231      This paragraph does not apply to nonresidential real property.
232               (g)         The property is not currently a residential property
233      gifted to a homeowner for free by a nonprofit entity as may be
234      disclosed by the property owner. The failure of a property owner
235      to disclose information set forth in this paragraph does not
236      invalidate an assessment financing agreement or any obligation
237      thereunder. This paragraph does not apply to nonresidential real
238      property.
239               (10)        Before final funding may be provided, a qualifying
240      improvement must shall be affixed or planned to be affixed to a
241      nonresidential real property or residential real building or
242      facility that is part of the property and constitutes shall
243      constitute an improvement to that property the building or
244      facility or a fixture attached to the building or facility . An
245      assessment financing agreement may between a local government
246      and a qualifying property owner may not cover qualifying wind-
247      resistance improvements on nonresidential real property under
248      new construction or residential real property in buildings or
249      facilities under new construction or construction for which a
250      certificate of occupancy or similar evidence of substantial

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         HB 669                                                                                                2023




251      completion of new construction or improvement has not been
252      issued.
253               (12)(a)        Without the consent of the holders or loan
254      servicers of any mortgage encumbering or otherwise secured by
255      the property, the total amount of any non-ad valorem assessment
256      for a property under this section may not exceed 20 percent of
257      the fair market just value of the real property as determined by
258      the county property appraiser. The combined mortgage-related
259      debt and total amount of any non-ad valorem assessments funded
260      under this section for residential real property may not exceed
261      100 percent of the fair market value of the residential real
262      property. However, the failure of a property owner to disclose
263      information set forth in paragraph (9)(d) does not invalidate an
264      assessment financing agreement or any obligation thereunder,
265      even if the total financed amount of the qualifying improvements
266      exceeds the amount that would otherwise be authorized under this
267      paragraph. For purposes of this paragraph, fair market value may
268      be determined using reputable third parties.
269               (b)         Notwithstanding paragraph (a), a non-ad valorem
270      assessment for a qualifying improvement defined in subparagraph
271      (2)(f)1. (2)(b)1. or subparagraph (2)(f)2. which (2)(b)2. that
272      is supported by an energy audit is not subject to the limits in
273      this subsection if the audit demonstrates that the annual energy
274      savings from the qualified improvement equals or exceeds the
275      annual repayment amount of the non-ad valorem assessment.

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         HB 669                                                                                                2023




276               (13)        At least 30 days before entering into an assessment a
277      financing agreement, the property owner shall provide to the
278      holders or loan servicers of any existing mortgages encumbering
279      or otherwise secured by the property a notice of the owner's
280      intent to enter into an assessment a financing agreement
281      together with the maximum principal amount to be financed and
282      the maximum annual assessment necessary to repay that amount. A
283      verified copy or other proof of such notice shall be provided to
284      the local government. A provision in any agreement between a
285      mortgagee or other lienholder and a property owner, or otherwise
286      now or hereafter binding upon a property owner, which allows for
287      acceleration of payment of the mortgage, note, or lien or other
288      unilateral modification solely as a result of entering into an
289      assessment a financing agreement as provided for in this section
290      is not enforceable. This subsection does not limit the authority
291      of the holder or loan servicer to increase the required monthly
292      escrow by an amount necessary to annually pay the annual
293      qualifying improvement assessment.
294               (14)        At or before the time a seller purchaser executes a
295      contract for the sale and purchase of any property for which a
296      non-ad valorem assessment has been levied under this section and
297      has an unpaid balance due, the seller must shall give the
298      prospective purchaser a written disclosure statement in the
299      following form, which shall be set forth in the contract or in a
300      separate writing:

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         HB 669                                                                                                2023




301
302               QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY,
303               RENEWABLE ENERGY, OR WIND RESISTANCE.—The property
304               being purchased is located within the jurisdiction of
305               a local government that has placed an assessment on
306               the property pursuant to s. 163.08, Florida Statutes.
307               The assessment is for a qualifying improvement to the
308               property relating to energy efficiency, renewable
309               energy, or wind resistance, and is not based on the
310               value of property. You are encouraged to contact the
311               county property appraiser's office to learn more about
312               this and other assessments that may be provided by
313               law.
314
315               (16)        Before final approval of an assessment financing
316      agreement for a qualifying improvement on a residential real
317      property, a program administrator shall reasonably determine
318      that the property owner has the ability to pay the estimated
319      annual assessment. To do so, the program administrator shall, at
320      a minimum, use the underwriting requirements in subsection (9),
321      confirm that the property owner is not in bankruptcy, and
322      determine that the total estimated annual payment amount for all
323      assessment financing agreements funded under this section on the
324      property does not exceed 10 percent of the property owner's
325      annual household income. Income may be confirmed using

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         HB 669                                                                                                2023




326      information gathered from reputable third parties that provide
327      reasonably reliable evidence of the property owner's household
328      income. Income may not be confirmed solely by a property owner's
329      statement. The failure of a property owner to disclose
330      information set forth in paragraph (9)(d) does not invalidate an
331      assessment financing agreement or any obligation thereunder,
332      even if the total estimated annual payment amount exceeds the
333      amount that would otherwise be authorized under this subsection.
334               (17)        Before or contemporaneously with a property owner
335      signing an assessment financing agreement on a residential real
336      property, the program administrator shall provide a financing
337      estimate and disclosure to the residential real property owner
338      which includes all of the following:
339               (a)         The total amount estimated to be funded, including the
340      cost of the qualifying improvements, program fees, and
341      capitalized interest, if any.
342               (b)         The estimated annual assessment.
343               (c)         The term of the assessment.
344               (d)         The interest charged and estimated annual percentage
345      rate.
346               (e)         A description of the qualifying improvement.
347               (f)         A disclosure that if the property owner sells or
348      refinances the property, the property owner, as a condition of
349      the sale or the refinance, may be required by a mortgage lender
350      to pay off the full amount owed under each assessment financing

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         HB 669                                                                                                2023




351      agreement.
352               (g)         A disclosure that the assessment will be collected
353      along with the property owner's property taxes and will result
354      in a lien on the property from the date the assessment financing
355      agreement is recorded.
356               (h)         A disclosure that failure to pay the assessment may
357      result in penalties and fees, along with the issuance of a tax
358      certificate that could result in the property owner losing the
359      real property.
360               (18)        Before a notice to proceed is issued on residential
361      real property, the program administrator shall conduct with the
362      residential real property owner or an authorized representative
363      an oral, recorded telephone call. The program administrator
364      shall ask the residential real property owner if he or she would
365      like to communicate primarily in a language other than English.
366      A program administrator may not leave a voicemail on the
367      residential real property owner's or authorized representative's
368      telephone to satisfy this requirement. A program admini strator,
369      as part of such telephone call, shall confirm all of the
370      following with the residential real property owner:
371               (a)         That at least one residential real property owner has
372      access to a copy of the assessment financing agreement and
373      financing estimates and disclosures.
374               (b)         The qualifying improvements being financed.
375               (c)         The total estimated annual costs that the residential

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         HB 669                                                                                                2023




376      real property owner will have to pay under the assessment
377      financing agreement, including applicable fees.
378               (d)         The total estimated average monthly equivalent amount
379      of funds the residential real property owner would have to save
380      in order to pay the annual costs of the assessment, including
381      applicable fees.
382               (e)         The estimated date the residential real property
383      owner's first property tax payment that includes the assessment
384      will be due.
385               (f)         The term of the assessment financing agreement.
386               (g)         That payments for the assessment financing agreement
387      will cause the residential real property owner's annual property
388      tax bill to increase, and that payments will be made through an
389      additional annual assessment on the property and either will be
390      paid directly to the county tax collector's office as part of
391      the total annual secured property tax bill or may be paid
392      through the residential real property owner's mortgage escrow
393      account.
394               (h)         That the residential real property owner has disclosed
395      whether the property has received, or the owner is seeking,
396      additional assessments funded under this section and that the
397      owner has disclosed all other assessments funded under this
398      section which are or are about to be placed on the property.
399               (i)         That the property will be subject to a lien during the
400      term of the assessment financing agreement and that the

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         HB 669                                                                                                2023




401      obligations under the agreement may be required to be paid in
402      full before the residential real property owner sells or
403      refinances the property.
404               (j)         That any potential utility or insurance savings are
405      not guaranteed and will not reduce the assessment or total
406      assessment amount.
407               (k)         That the program administrator does not provide tax
408      advice, and the residential real property owner should seek
409      professional tax advice if he or she has questions regarding tax
410      credits, tax deductibility, or other tax impacts of the
411      qualifying improvement or the assessment financing agreement.
412               (19)        A residential real property owner may cancel an
413      assessment financing agreement within 3 business days after
414      signing the assessment financing agreement without any financial
415      penalty from the program administrator for doing so.
416               (20)        The term of an assessment financing agreement on
417      residential real property may not exceed the lesser of:
418               (a)         Thirty years; or
419               (b)         The greater of either the weighted average estimated
420      useful life of all qualifying improvements being financed or the
421      estimated useful life of the qualifying improvements to which
422      the greatest portion of funds is disbursed.
423               (21)        An assessment financing agreement authorized under
424      this section on residential real property may not include any of
425      the following financing terms:

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         HB 669                                                                                                2023




426               (a)         A negative amortization schedule. Capitalized interest
427      included in the original balance of the assessment financing
428      agreement does not constitute negative amortization.
429               (b)         A balloon payment.
430               (c)         Prepayment fees, other than nominal administra tive
431      costs.
432               (22)        For residential real property, a program
433      administrator:
434               (a)         May not enroll a contractor who contracts with
435      residential real property owners to install qualifying
436      improvements unless:
437               1.      The program administrator makes a reasonable effort to
438      review that the contractor maintains in good standing an
439      appropriate license from the state, if applicable, as well as
440      any other permit, license, or registration required for engaging
441      in business in the jurisdiction in which he or she operates and
442      that the contractor maintains all state-required bond and
443      insurance coverage; and
444               2.      The program administrator obtains the contractor's
445      written agreement that the contractor will act in accordance
446      with all applicable laws, including applicable advertis ing and
447      marketing laws and regulations.
448               (b)         Shall maintain a process to enroll new contractors
449      which includes reasonable review of the following for each
450      contractor:

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         HB 669                                                                                                2023




451               1.      Relevant work or project history.
452               2.      Financial and reputational background checks.
453               3.      A criminal background check.
454               4.      Status on the Better Business Bureau online platform or
455      another online platform that tracks contractor reviews.
456               (c)         A program administrator may pay or reimburse
457      contractors for any expense allowable under applicable state law
458      and not otherwise prohibited under this section, including, but
459      not limited to, marketing, training, and promotions.
460               (23)(a)        Before disbursing funds to a contractor for a
461      qualifying improvement on residential real property, a program
462      administrator must first confirm that the applicable work or
463      service has been completed through any of the following:
464               1.      A written certification from the property owner;
465               2.      A recorded telephone call with the property owner;
466               3.      A review of geotagged and time-stamped photographs;
467               4.      A review of a final permit; or
468               5.      A site inspection through third-party means.
469               (b)         A program administrator may not disclose to a
470      contractor or to a third party engaged in soliciting an
471      assessment financing agreement the maximum financing amount for
472      which a residential real property owner is eligible.
473               (24)        A program administrator shall comply with the
474      following marketing and communications guidelines when
475      communicating with residential real property owners:

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         HB 669                                                                                                2023




476               (a)         A program administrator may not represent:
477               1.      That the REEF program or assessment financing is a
478      government assistance program;
479               2.      That qualifying improvements are free or that
480      assessment financing is a free program; or
481               3.      That the financing of a qualifying improvement using
482      the REEF program does not require the property owner to repay
483      the financial obligation.
484               (b)         A program administrator may not make any
485      representation as to the tax deductibility of an assessment
486      authorized under this section. A program administrator may
487      encourage a property owner to seek the advice of a tax
488      professional regarding tax matters related to assessments.
489               (25)        A contractor may not present a higher price for a
490      qualifying improvement on residential real property financed by
491      an assessment financing agreement than the contractor would
492      otherwise reasonably present if the qualifying improvement was
493      not being financed through an assessment financing agreement.
494               (26)        A program administrator shall use appropriate
495      methodologies or technologies to identify and verify the
496      identity of the residential real property owner who executes an
497      assessment financing agreement.
498               (27)        A program administrator may not provide a contractor
499      with any payment, fee, or kickback in exchange for referring
500      assessment financing business relating to a specific assessment

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         HB 669                                                                                                2023




501      financing agreement on residential real property.
502               (28)        A program administrator shall develop and implement
503      policies and procedures for responding to, tracking, and helping
504      to resolve questions and property owner complaints as soon as
505      reasonably practicable.
506               (29)        A program administrator shall maintain a process for
507      monitoring enrolled contractors that contract with residential
508      real property owners to install qualifying improvements with
509      regard to performance and compliance with program policies and
510      shall implement policies for suspending and terminating enrolled
511      contractors based on violations of program policies or
512      unscrupulous behavior. A program administrator shall maintain a
513      policy for determining the conditions on which a contractor may
514      be reinstated to the program.
515               (30)        A program administrator shall provide, at a
516      reasonable time following the end of the prior calendar year, an
517      annual report to the dependent special district as defined in s.
518      189.012 or a separate legal entity created pursuant to s.
519      163.01(7) which it has contracted with to administer a REEF
520      program and shall include information and data related to the
521      following:
522               (a)         The total number of property owner complaints received
523      which are associated with project funding in the report year.
524               (b)         Of the total number of property owner complaints
525      received which are associated with project funding in the report

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         HB 669                                                                                                2023




526      year:
527               1.      The number and percentage of complaints that relate to
528      the assessment financing.
529               2.      The number and percentage of complaints that relate to
530      a contractor or the workmanship of a contractor and are not
531      related to assessment financing.
532               3.      The number and percentage of complaints that relate to
533      both a contractor and the assessment financing.
534               4.      The number and percentage of complaints received
535      pursuant to subparagraphs 1., 2., and 3. which were resolved and
536      the number and percentage of complaints received pursuant to
537      subparagraphs 1., 2., and 3. which were not resolved.
538               (c)         The percentage of property owner complaints received
539      pursuant to subparagraphs (b)1., 2., and 3. expressed as a total
540      of all projects funded in the report year.
541               (31)(a)        Subsections (16) through (30) do not apply to
542      residential real property if the program administrator
543      reasonably determines that:
544               1.      The residential real property is owned by a business
545      entity that owns more than four residential real properties; and
546               2.      The business entity's managing member, partner, or
547      beneficial owner does not reside in the residential real
548      property.
549               (b)         Subsections (16) through (30) apply to a program
550      administrator only when administering a REEF program for

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         HB 669                                                                                                2023




551      qualifying improvements on residential real property.
552      Subsections (16) through (30) do not apply with respect to a
553      local government, to residential property owned by a local
554      government, or to nonresidential real property.
555               Section 2.        This act shall take effect July 1, 2023.




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HB 745
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 745 Emergency Communications
SPONSOR(S): McFarland
TIED BILLS:       IDEN./SIM. BILLS: SB 1418

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Energy, Communications & Cybersecurity                                           Walsh              Keating
     Subcommittee

  2) State Administration & Technology
     Appropriations Subcommittee

  3) Commerce Committee


                                               SUMMARY ANALYSIS
The Division of Telecommunications (Division) within the Department of Management Service (DMS) is the
state entity responsible for developing, maintaining, and implementing a statewide E911 system plan. The
secretary of DMS or his or her designee acts as the director of the system and is authorized to coordinate the
activities of the system with state, county, local, and private agencies.

The system director also serves as chair of the state’s E911 Board, an 11-member body that administers funds
derived from fees imposed on each user of voice communications services in Florida.

To fund Florida’s E911 system, voice communications services providers collect a fee from their customers on
a service identifier basis (e.g., from each active phone line or number with access to the E911 system). All
collected fees are deposited into the Emergency Communications Number E911 System Fund, which is
segregated into three categories (wireless, prepaid wireless, and non-wireless) and distributed as provided by
law to counties and wireless service providers.

The next progression in E911 systems is referred to as Next Generation 911 (NG-911). Funds distributed by
the E911 Board support routine, ongoing service and maintenance costs of equipment and networks but do not
cover all costs to upgrade systems and implement NG-911 technologies.

The bill modifies the powers, duties, and composition of the E911 Board, which is renamed as the Emergency
Communications Board, and expands the list of items that may be funded with E911 fee disbursements. The
bill modifies the statutory allocation of E911 fee revenues in the wireless category to more closely match the
actual allocation approved by the E911 Board and eliminates the small remaining allocation to wireless service
providers.

The bill provides an effective date of July 1, 2023.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0745.ECC
DATE: 3/6/2023
                                                        FULL ANALYSIS

                                                I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Present Situation

         Since 1974, Florida law has designated the telephone number “911” as the state’s emergency
         communications number to provide rapid direct access to public safety agencies. 1 In 1999, the concept
         of “Enhanced 911” or “E911” service was established in Florida law to describe 911 service provided to
         wireless telephone users.2 Today, under the Emergency Communications Number E911 Act, 3 the term
         “E911,” as used in Florida law, refers more broadly to an enhanced 911 system or service that provides
         any user of voice communications services 4 with 911 service. E911 service directs calls to appropriate
         public safety answering points (PSAPs) 5 by selective routing based on the geographical location from
         which a 911 call originated and provides for automatic number and location identification. 6

         The next progression in E911 systems is referred to as Next Generation 911 (NG-911). According to
         the E911 Board’s 2021 Annual Report, NG-911 requires a total replacement of legacy 911 systems
         with Internet Protocol (IP) networks and core services. NG-911 includes IP-based 911 call routing
         systems, geographic information systems, and management information systems to be implemented
         statewide with interconnectivity among systems and across jurisdictional boundaries. An NG-911 call
         routing system is designed to handle voice, data, text and video on a standardized IP-based platform.7

         Governance

         The Division of Telecommunications (Division) within the Department of Management Service (DMS) is
         the state entity responsible for developing, maintaining, and implementing a statewide E911 system
         plan. The secretary of DMS or his or her designee acts as the director of the system and is authorized
         to coordinate the activities of the system with state, county, local, and private agencies . The system
         director must consult, cooperate, and coordinate with local law enforcement agencies.8

         The system director also serves as chair of the state’s E911 Board, an 11-member body that
         administers funds derived from fees imposed on each user of voice communications services with a
         Florida billing address (place of primary use). The remaining 10 members are appointed by the
         Governor. Five members must be county 911 coordinators, including one from a rural county, one from
         a medium county, one from a large county, and two at-large representatives recommended by the
         Florida Association of Counties in consultation with the county 911 coordinators. The other five
         members represent the telecommunications industry, including three representatives of local exchange
         companies and two representatives of the wireless industry. Members are appointed to staggered 4-
         year terms, subject to a limit of two successive terms. 9

         Funding


1 Ch. 74-357, L.O.F.
2 See Ch. 99-367, L.O.F.
3 Ch. 2007-78, L.O.F.
4
  S. 365.172, F.S., defines “voice communications services” as “two -way voice service, through the use of any technology, which
actually provides access to E911 services, and includes commu nications services, as defined in s. 202.11, which actually provide
access to E911 services and which are required to be included in the provision of E911 services pursuant to orders and rules adopted
by the Federal Communications Commission. The term includes voice-over-Internet-protocol service. …”
5 S. 365.172, F.S., defines a “public safety answering point” as “the public safety agency that receives incoming 911 requests for

assistance and dispatches appropriate public safety agencies to respond to the requests in accordance with the state E911 pla n.”
6 E911 service provided by a wireless provider is subject to orders and rules of the Federal Communications Commission. See s.

365.172(3)(h) and (t), F.S.
7 Florida Department of Management Services, 2021 E911 Board Annual Report, at p. 9-10, available at

https://www.dms.myflorida.com/content/download/155677/1033501/E911BoardAnnualReportFor20202021final_2.28.2022.pdf (last
visited March 3, 2023).
8 S. 365.171(4) and (5), F.S.
9 S. 365.172(5), F.S.

STORAGE NAME: h0745.ECC                                                                                                      PAGE: 2
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         To fund Florida’s E911 system, voice communications services providers (providers) collect a fee from
         their customers on a service identifier basis (e.g., from each active phone line or number with access to
         the E911 system). The fee is imposed upon local exchange service, prepaid and billed wireless service,
         and other voice communications services that have access to E911 service, such as Voice over
         Internet Protocol.10 Sellers of prepaid wireless service (sellers) must collect this fee from customers
         with each retail transaction in the state.11 The fee is currently set at a uniform statewide rate of 40 cents
         per month for each service identifier.12 The E911 Board is authorized to adjust the fee as necessary to
         ensure full recovery of the costs incurred by counties and wireless service providers to provide E911
         service and to prevent over-recovery of those costs, subject to a cap of 50 cents per month for each
         service identifier.13,14

         All collected fees are deposited into the Emergency Communications Number E911 System Fund,
         which is segregated into three categories: wireless, prepaid wireless, and non-wireless.15 Three percent
         of the funds in each category is distributed by the E911 Board to rural counties to provide facilities and
         network and service enhancements and assistance for their 911 or E911 systems and for grants to
         rural counties to upgrade and replace E911 systems. Further, the E911 Board may retain no more than
         one percent of the funds from each category to cover its administrative costs. For fiscal year (FY) 2020-
         2021, the E911 Board distributed the remaining 96% of funds to counties and wireless providers as
         follows:16

                  Wireless Category
                      o 94.75% to counties for authorized expenditures and costs to comply with FCC
                          requirements for E911 service (funds allocated by county based on total number of
                          service identifiers in each county)
                      o An additional 1% to rural county grants
                      o 0.25% to wireless service providers for reimbursement of actual costs to provide 911 or
                          E911 service and costs to comply with FCC requirements for E911 service 17

                  Prepaid Wireless Category
                      o 61% to counties for authorized expenditures (funds allocated by county based on total
                          amount of fees reported and paid in each county)
                      o 35% for statewide grants awarded by the E911 Board18

                  Non-Wireless Category
                      o 96% to counties for authorized expenditures (funds allocated by county based on total
                         number of service identifiers in each county

         The E911 Board’s 2021 Annual Report states that, for FY 2020-2021, the allocation from the wireless
         category to wireless service providers was decreased from 8% down to 0.25% due to a decrease in the


10 S. 365.172(8), F.S.
11 S. 365,172(9), F.S. Collection is optional for prepaid wireless service sales of 10 minutes or less or $5 or less.
12
   S. 365.172(8), F.S. In counties that, before July 1, 2007, had adopted an ordinance or resolution establishing a fee less than 50 cents
per month per line, the applicable rate may be higher than 40 cents per month, but any future changes must be consistent with the
uniform statewide rate. Those counties are Duval (44 cents per month), Lee (44 cents per month), and Volusia (41 cents per month).
Florida Department of Management Service, supra note 5, at 7.
13 Id.
14
   The statutory fee cap of 50 cents per month has remained unchanged since its adoption in 1985. See Ch. 85-317, L.O.F.
15 S. 365.172(3)(k), (8)(d), and (9)(i); s. 365.173(1)(c), F.S. Each provider may retain 1 percent of collected fees as reimburs ement for

its administrative costs to bill, collect, and remit the fee. Each seller of prepaid wi reless service may retain 5 percent of collected fees as
a collection allowance. Fees collected from prepaid wireless service are remitted to the Department of Revenue, which may ret ain up to
3.2 percent of remitted fees to reimburse its direct costs to administer collection and remittance of the fees.
16 S. 365.173 (2), F.S., specifies the allocation of these funds but authorizes the E911 Board to modify allocations if necessar y to

ensure full cost recovery or prevent over-recovery of costs incurred in the provision of E911 service. The allocations presented above
are based on the E911 Board’s 2021 Annual Report, supra note 6.
17 The E911 Board may use, as needed, undisbursed funds from the allotment to wireless service providers to provide grants to

counties for purposes of upgrading E911 systems. S. 365.172(6)(a)3.b., F.S.
18 Grants awarded with these funds are prioritized as follows: first, for counties to upgrade or replace E911 systems; next, for counties

to develop and maintain statewide 911 routing, geographic, and management information systems; last, for counties to develop and
maintain next-generation 911 services and equipment. S. 365.173(h), F.S.
STORAGE NAME: h0745.ECC                                                                                                                PAGE: 3
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        need for reimbursements to those providers. As a result, the allocation to counties increased by 6.75%,
        and the remaining 1% was allocated to rural county grants.

        Authorized expenditures include all costs directly attributable to the establishment or provision of E911
        service and contracting for E911 services. Specifically, these costs include the acquisition,
        implementation, and maintenance of PSAP equipment and E911 service features, as defined in voice
        communications services providers’ published schedules, or the acquisition, installation, and
        maintenance of other E911 equipment, including:

                Circuits
                Call answering equipment
                Call transfer equipment
                ANI or ALI controllers
                ANI or ALI displays
                Station instruments
                E911 telecommunications systems
                Visual call information and storage devices
                Recording equipment
                Telephone devices and other equipment for the hearing impaired used in the E911 system
                PSAP backup power systems
                Consoles
                Automatic call distributors, and interfaces, including hardware and software, for computer-aided
                 dispatch (CAD) systems
                Integrated CAD systems for that portion of the systems used for E911 call taking
                GIS system and software equipment and information displays
                Network clocks
                Salary and associated expenses for E911 call takers for that portion of their time spent taking
                 and transferring E911 calls, salary, and associated expenses for a county to employ a full-time
                 equivalent E911 coordinator position and a full-time equivalent mapping or geographical data
                 position, and technical system maintenance, database, and administration personnel for the
                 portion of their time spent administrating the E911 system
                Emergency medical, fire, and law enforcement prearrival instruction software
                Charts and training costs
                Training costs for PSAP call takers, supervisors, and managers in the proper methods and
                 techniques used in taking and transferring E911 calls
                Costs to train and educate PSAP employees regarding E911 service or E911 equipment,
                 including fees collected by the Department of Health for the certification and recertification of
                 911 public safety telecommunicators as required under s. 401.465
                Expenses required to develop and maintain all information, including ALI and ANI databases
                 and other information source repositories, necessary to properly inform call takers as to location
                 address, type of emergency, and other information directly relevant to the E911 call-taking and
                 transferring function.
                Next-generation E911 network services, next-generation E911 database services, next-
                 generation E911 equipment, and wireless E911 routing systems.

        For FY 2020-2021, the E911 Board disbursed a total of $121.3 million. Of that amount, $104.8 million
        was disbursed to counties through regular monthly disbursements, $1.14 million was disbursed to
        wireless service providers, and $2 million was retained to cover the operation and administration of the
        E911 Board. The remaining $13.36 million was disbursed to counties as grants and supplemental
        disbursements.19

        Status of Statewide E911, NG-911, and Text-to-911 Services



19 Florida Department of Management Services, supra note 7, at 8.

STORAGE NAME: h0745.ECC                                                                                     PAGE: 4
DATE: 3/6/2023
           All 67 counties in Florida maintain and upgrade non-wireless and wireless E911 systems. Funds
           distributed by the E911 Board support routine, ongoing service and maintenance costs of equipment
           and networks but do not cover all costs to upgrade systems and implement NG-911 technologies. In
           2021, fee revenue, special disbursements, and grants funded 44 percent of counties’ total expenses. 20

           An early step toward NG-911 is the provision of Text-to-911 service, which uses Short Message
           Service (SMS) to allows citizens who cannot hear or speak to gain access to 911 without the
           requirement of special equipment or subscription to relay services for the hearing and speech impaired.
           As of December 31, 2021, 85 percent of Florida counties (57 of 67), offered Text-to-911 service, with
           the remainder estimated to be completed in 2022.21

           According to the E911 Board, some of the more progressive and financially capable counties in the
           state have already either started the NG-911 planning for their counties or have begun the transition to
           NG-911 ready systems and networks without grant or supplemental funding sources. Some counties
           are taking advantage of E911 State Grant opportunities to initiate the NG911 transition.

           Effect of the Bill

           The bill modifies the powers, duties, and composition of the E911 Board, which is renamed as the
           Emergency Communications Board (Board), and expands the list of items that may be funded with
           E911 fee disbursements. The bill modifies the statutory allocation of E911 fee revenues in the wireless
           category to more closely match the actual allocation approved by the Board and eliminates the small
           remaining allocation to wireless service providers.

           The bill amends the short title of s. 365.172, F.S., to reflect a move away from using the term “E911” in
           statute, by renaming the section the “Emergency Communications Act” (Act). The bill further reflects
           this change by replacing or striking language referencing “E911” throughout ss. 365.171-365.174, F.S.,
           s. 365.177, F.S., and s. 212.05965, F.S.

           The bill modifies the legislative intent of the Act. Per the changes in the bill, it is the intent of the
           legislature that the Act:
                Establish and implement statewide emergency communications and response capabilities using
                   modern technologies and methods;
                Provide funds to counties and state agencies that operate 911 centers for the costs of public
                   safety and emergency response capabilities and costs incurred to purchase, upgrade, and
                   maintain 911, computer aided dispatch, and interoperable radio communications systems;
                Levy a reasonable fee on users of voice communications services to accomplish these
                   purposes;
                Provide for an Emergency Communications Board that is competitively and technologically
                   neutral as to all communications services providers, not just voice communications services
                   providers; and
                Ensure that the fee established by the Act for emergency communications systems is used
                   exclusively by counties and state agencies that operate 911 centers.


           The bill modifies the powers, duties, and composition of the newly renamed Emergency
           Communications Board. The bill states that the Board, with oversight by the Division of
           Telecommunications (Division), is established to:
                Administer governance for how emergency infrastructure and information are handled from
                   receipt at a Public Safety Answering Point (PSAP) and routing to first responders;
                Create a financial model for the state government and local governments to use existing
                   revenue sources to invest in public safety communication and technology for first responders;
                   and


20 Id., at 9, 15.
21 Id.

STORAGE NAME: h0745.ECC                                                                                      PAGE: 5
DATE: 3/6/2023
                 Administer a financially stable model of public safety communications and technology that will
                  benefit the state government, local government, residents, and visitors.

         The bill specifies that the public safety funding administered by the board is not limited to, but must
         focus on:
              Next Generation 911 (NG911);22
              Emergency Services IP Network (ESInet);
              Computer Aided Dispatch (CAD);23
              Land Mobile Radio (LMR);
              Smart (Safe) City Technology;
              In-Building Coverage;
              Public Safety Broadband Networks; and
              Cyber Security.

        The bill revises the structure of the Board, by reducing the number of Board members from eleven to
        seven, one of whom must be the system director. The bill states that the remaining six members of the
        Board must be representatives of the first responder community, appointed by the Governor. The bill
        updates how the Governor may initially appoint members, by staggering the terms for which the initial
        Board members may be appointed.

        Under the bill, the Board is given the additional responsibility of ensuring the interoperability of and
        connectivity between public safety communication systems within the state, such as:
            Call routing accuracy and timeliness of response;
            Improved interagency communication and situational awareness;
            Improved interagency connectivity;
            Improved response times;
            Maximized use of emerging technologies;
            Improved lifecycle management of the emergency response systems, equipment, and services
               that enable public safety officials to share information securely;
            Policy and procedure across public safety agencies; and
            Resilient, and secure emergency communication systems to reduce cybersecurity threats and
               vulnerabilities.

        The bill also provides that the Board may create subcommittees to advise the Board as needed, and
        the Board may establish a schedule for implementing NG11 systems, public radio communications
        systems, and other public safety radio communications improvements. Under the current law, the
        Board must establish a committee to review requests for proposals. The bill removes the requirement
        that one member of such committee is a member of the Board that is a county 911 coordinator and one
        member of such committee is a member of the Board who represents a voice communications services
        provider.

        Per the bill, the Board is also responsible for administering the Public Safety Emergency
        Communications Systems Fee (formerly the “E911” fee), including receiving revenues, distributing
        portions of the revenues, accounting for the moneys maintained in the fund, and providing annual
        reports for review and submission to the Governor and the Legislature.

        The bill states that before the Board distributes revenue from the fund, it must provide 90 days’ written
        notice to all counties and publish electronically an approved application process. The bill provides

22 The bill defines “Next Generation 911” or “NG911” as an Internet Protocol (IP) -based system comprised of:

          • Managed Emergency Services IP networks (ESInets);
          • Functional elements (applications); and
          • Databases that replicate traditional E911 features and functions and provide additional capabilities.
The bill further clarifies that the NG911 system is “designed to provide access to emergency services from all connected
communications sources and provide multimedia data capabilities for Public Safety Answering Points (PSAPs) and other emergency
service organizations.”
23 The bill defines “Computer Aided Dispatch” or “CAD” as “a computerized system for entering, tracking, dispatching, and resolving

requests for public safety services.”
STORAGE NAME: h0745.ECC                                                                                                      PAGE: 6
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       means by which county applications must be prioritized, which shall be based on the availability of
       funds, current system life expectancy, and system replacement needs. The board must, within its
       authority, ensure that county recipients of the funds use the funds only for the purpose under which the
       board provided. If the Board determines that the funds were not used for the purpose for which they
       were provided, the Board may, within its authority, secure county repayment of such funds.

       The bill specifies that the Board must meet quarterly to review and authorize the schedule of fee
       allocation transfers and distributions to the counties and state agencies that operate 911 centers.

       The bill strikes the following provisions under current law related to the Public Safety Emergency
       Communications Systems Fee:
           A provider is not obligated to take legal action to enforce the collection of the fee for which a
               subscriber is billed, and a county subscribing to 911 service remains liable to the provider
               delivering the 911 service or equipment for any 911 service, equipment, operation, or
               maintenance charge owed by the county to the provider;
           A county that before July 1, 2007, had a adopted an ordinance or resolution establishing a fee
               of less than 50 cents per month per access line is an exception to the requirement that the fee
               of 40 cents per month be applied uniformly and throughout the state; and
           The requirement that when the Board sets percentages or contemplates any adjustments to the
               fee, that the Board consider revenues currently allocated for wireless service provider costs for
               implementing E911 service and projected costs for implementing E911 service, including
               recurring costs for Phase I and Phase II and the effect of new technologies.

       For the purposes of the fees, the bill states that emergency communications and 911 service include
       the functions relating to the receipt and transfer of requests for emergency assistance, of database
       management, call taking, and location verification. The bill also updates the list of costs that are eligible
       for expenditure of moneys derived from imposition of the fee. These costs now include:
            NG911 telecommunications systems;
            Emergency Services IP Network ESInet;
            Public safety land mobile radio systems (LMR) and radios;
            In-building coverage;
            Cybersecurity, including hardware, software, and services;
            Salary associated with expenses for all 911 call takers and emergency dispatchers;
            Costs to train and educate employees regarding 911 radio service or NG911 equipment; and
            Smart City Technologies, public safety broadband networks, and other information directly
               relevant to the public safety emergency communications systems and equipment.

       The bill further clarifies that money from the fee may not be used for costs for utilities.

       The bill modifies the statutory allocation of fee revenues in the wireless category by providing that:
           Ninety-five, instead of seventy-six, percent of the funds shall be distributed each month to
               counties, based on the total number of service identifiers in each county;
           An additional one percent of the funds shall be used to make monthly distributions to rural
               counties for certain purposes; and
           The Board will no longer transfer twenty percent of the funds to wireless providers for the cost of
               operating 911 or E911 services.

       Lastly, the bill provides that the Division shall develop a new plan by December 30, 2023, to upgrade
       911 public safety answering points within the state to allow the transfer of an emergency call from one
       local, multijurisdictional, or regional E911 system to another local, multijurisdictional, or regional E911
       system in the state.

       The bill provides and effective date of July 1, 2023.

   B. SECTION DIRECTORY:
       Section 1.     Amends s. 365.172, F.S., relating to emergency communications.
STORAGE NAME: h0745.ECC                                                                                      PAGE: 7
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       Section 2.     Amends s. 365.173, F.S., relating to Emergency Communications Fund.

       Section 3.     Amends s. 365.177, F.S., relating to transfers of E911 calls between systems.

       Section 4.     Amends s. 212.05965, F.S., relating to taxation of marketplace sales.

       Section 5.     Amends s. 365.171, F.S., relating to emergency communications state plan.

       Section 6.     Amends s. 365.174, F.S., relating to proprietary confidential business information.

       Section 7.     Provides an effective date of July 1, 2023.


                          II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           The may increase revenues to state agencies that operate 911 call centers.

       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           The bill may increase revenues to local governments by increasing the allocation of funds from the
           wireless category to counties.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. This bill does not appear to 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.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
STORAGE NAME: h0745.ECC                                                                                     PAGE: 8
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       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       The bill indicates that the Board is established to “[a]dminister governance for how emergency
       infrastructure and information, such as voice, text, data, and images, are handled from receipt at a
       PSAP and routing to first responders”. This language is ambiguous as to whether the Board is
       supposed to adopt policies, enforce them, or both.

       The bill also states that the Board is established to “[a]dminister a financially sustainable model
       dedicated to public safety communications and technology . . .” The bill does not indicate what type of
       model is contemplated.

       The bill uses the term “Smart (Safe) City Technology” but this term is not defined.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: h0745.ECC                                                                                  PAGE: 9
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           HB 745                                                                                                2023




    1                                         A bill to be entitled
    2               An act relating to emergency communications; amending
    3               s. 365.172, F.S.; revising short title; revising
    4               legislative intent; revising and providing
    5               definitions; renaming the E911 Board as the Emergency
    6               Communications Board; providing the purpose of the
    7               board; revising the composition of the board;
    8               establishing board responsibilities; requiring the
    9               board to administer fees; authorizing the board to
10                  create subcommittees; authorizing the board to
11                  establish schedules for implementing certain wireless
12                  systems and improvements; establishing notice and
13                  publication requirements before distribution of
14                  revenues; providing for priority of county
15                  applications for funds; requiring board oversight of
16                  such funds; eliminating certain authority of the
17                  board; providing for the board's authority to
18                  implement changes to the allocation percentages or to
19                  adjust the fee; revising the frequency of board
20                  meetings and the business to be conducted at such
21                  meetings; revising the composition of a committee that
22                  reviews requests for proposals from the board
23                  regarding independent accounting firm selection;
24                  revising provisions relating to the public safety
25                  emergency communications systems fee; eliminating the

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        HB 745                                                                                                2023




26               obligation of a provider to take legal action to
27               enforce fee collection and county liability to the
28               provider; requiring uniform application and imposition
29               of the fee; revising the factors that the board
30               considers when setting percentages or contemplating
31               adjustments to the fee; updating provisions relating
32               to the prepaid wireless public safety emergency
33               communications systems fee; revising emergency
34               communications and 911 service functions; revising the
35               types of emergency communications equipment and
36               services that are eligible for expenditure of moneys
37               derived from the fee; amending s. 365.173, F.S.;
38               renaming the Communications Number E911 System Fund as
39               the Emergency Communications Fund; revising the
40               percent distribution of the fund; removing the percent
41               distribution of wireless providers; adding a specified
42               percent distribution to rural counties; amending s.
43               365.177, F.S.; extending the date by which the
44               Division of Telecommunications within the Department
45               of Management Services must develop a plan to upgrade
46               911 public safety answering points; amending ss.
47               212.05965, 365.171, and 365.174, F.S.; conforming
48               provisions to changes made by the act; providing an
49               effective date.
50

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        HB 745                                                                                                2023




51      Be It Enacted by the Legislature of the State of Florida:
52
53               Section 1.         Section 365.172, Florida Statutes, is amended
54      to read:
55               365.172        Emergency communications. number "E911."—
56               (1)         SHORT TITLE.—This section may be cited as the
57      "Emergency Communications Number E911 Act."
58               (2)         LEGISLATIVE INTENT.—It is the intent of the
59      Legislature to:
60               (a)         Establish and implement a comprehensive statewide
61      emergency communications and response capability using modern
62      technologies and methods. telecommunications number system that
63      will provide users of voice communications services within the
64      state rapid direct access to public safety agencies by accessing
65      the telephone number "911."
66               (b)         Provide funds to counties and state agencies that
67      operate 911 centers to pay certain costs associated with their
68      public safety emergency response capabilities and costs incurred
69      to purchase, upgrade, and maintain 911 systems, computer aided
70      dispatch, and systems to create interoperable radio
71      communications systems E911 or 911 systems, to contract for E911
72      services, and to reimburse wireless telephone service providers
73      for costs incurred to provide 911 or E911 services.
74               (c)         Levy a reasonable fee on users of voice communications
75      services, unless otherwise provided in this section, to

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 76      accomplish these purposes.
 77               (d)         Provide for an Emergency Communications Board E911
 78      board to administer the fee, with oversight by the office, in a
 79      manner that is competitively and technologically neutral as to
 80      all voice communications services providers.
 81               (e)         Ensure that the fee established for emergency
 82      communications systems is used exclusively for recovery by
 83      wireless providers and by counties and state agencies that
 84      operate 911 centers for costs associated with developing and
 85      maintaining emergency communications E911 systems and networks
 86      in a manner that is competitively and technologically neutral as
 87      to all voice communications services providers.
 88
 89      It is further the intent of the Legislature that the fee
 90      authorized or imposed by this section not necessarily provide
 91      the total funding required for establishing or providing
 92      emergency communications systems and services E911 service.
 93               (3)         DEFINITIONS.—Only as used in this section and ss.
 94      365.171, 365.173, 365.174, and 365.177, the term:
 95               (a)         "Authorized expenditures" means expenditures of the
 96      fee, as specified in subsection (10).
 97               (b)         "Automatic location identification" means the
 98      capability of the E911 service which enables the automatic
 99      display of information that defines the approximate geographic
100      location of the wireless telephone, or the location of the

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101      address of the wireline telephone, used to place a 911 call.
102               (c)         "Automatic number identification" means the capability
103      of the E911 service which enables the automatic display of the
104      service number used to place a 911 call.
105               (d)         "Board" or "Emergency Communications Board" "E911
106      Board" means the board of directors of the E911 Board
107      established in subsection (5).
108               (e)         "Building permit review" means a review for compliance
109      with building construction standards adopted by the local
110      government under chapter 553 and does not include a review for
111      compliance with land development regulations.
112               (f)         "Collocation" means the situation when a second or
113      subsequent wireless provider uses an existing structure to
114      locate a second or subsequent antennae. The term includes the
115      ground, platform, or roof installation of equipment enclosures,
116      cabinets, or buildings, and cables, brackets, and other
117      equipment associated with the location and operation of the
118      antennae.
119               (g)         "Computer Aided Dispatch" or "CAD" means a
120      computerized system for entering, tracking, dispatching, and
121      resolving requests for public safety services.
122               (h)(g)        "Designed service" means the configuration and
123      manner of deployment of service the wireless provider has
124      designed for an area as part of its network.
125               (i)(h)        "Enhanced 911" or "E911" means an enhanced 911

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126      system or enhanced 911 service that is an emergency telephone
127      system or service that provides a subscriber with 911 service
128      and, in addition, directs 911 calls to appropriate public safety
129      answering points by selective routing based on the geographical
130      location from which the call originated, or as otherwise
131      provided in the state plan under s. 365.171, and that provides
132      for automatic number identification and automatic location -
133      identification features. E911 service provided by a wireless
134      provider means E911 as defined in the order.
135               (j)(i)      "Existing structure" means a structure that exists
136      at the time an application for permission to place antennae on a
137      structure is filed with a local government. The term includes
138      any structure that can structurally support the attachment of
139      antennae in compliance with applicable codes.
140               (k)(j)      "Fee" or "public safety emergency communications
141      systems fee" means the E911 fee authorized and imposed under
142      subsections (8) and (9).
143               (l)(k)      "Fund" means the Emergency Communications Number
144      E911 System Fund established in s. 365.173 and maintained under
145      this section for the purpose of recovering the costs associated
146      with providing emergency communications 911 service or E911
147      service, including the costs of implementing the order. The fund
148      shall be segregated into wireless, prepaid wireless, and
149      nonwireless categories.
150               (m)(l)      "Historic building, structure, site, object, or

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151      district" means any building, structure, site, object, or
152      district that has been officially designated as a historic
153      building, historic structure, historic site, historic object, or
154      historic district through a federal, state, or local designation
155      program.
156               (n)(m)        "Land development regulations" means any ordinance
157      enacted by a local government for the regulation of any aspect
158      of development, including an ordinance governing zoning,
159      subdivisions, landscaping, tree protection, or signs, the local
160      government's comprehensive plan, or any other ordinance
161      concerning any aspect of the development of land. The term does
162      not include any building construction standard adopted under and
163      in compliance with chapter 553.
164               (o)(n)        "Local exchange carrier" means a "competitive local
165      exchange telecommunications company" or a "local exchange
166      telecommunications company" as defined in s. 364.02.
167               (p)(o)        "Local government" means any municipality, county,
168      or political subdivision or agency of a municipality, county, or
169      political subdivision.
170               (q)(p)        "Medium county" means any county that has a
171      population of 75,000 or more but less than 750,000.
172               (r)(q)        "Mobile telephone number" or "MTN" means the
173      telephone number assigned to a wireless telephone at the time of
174      initial activation.
175               (s)         "Next Generation 911" or "NG911" means an Internet

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176      Protocol(IP)-based system comprised of managed Emergency
177      Services IP networks (ESInets), functional elements
178      (applications), and databases that replicate traditional E911
179      features and functions and provides additional capabilities. The
180      NG911 system is designed to provide access to emergency services
181      from all connected communications sources and provide multimedia
182      data capabilities for Public Safety Answering Points (PSAPs) and
183      other emergency service organizations.
184               (t)(r)      "Nonwireless category" means the revenues to the
185      fund received from voice communications services providers other
186      than wireless providers.
187               (u)(s)      "Office" means the Division of Telecommunications
188      within the Department of Management Services, as designated by
189      the secretary of the department.
190               (v)(t)      "Order" means:
191               1.      The following orders and rules of the Federal
192      Communications Commission issued in FCC Docket No. 94 -102:
193               a.      Order adopted on June 12, 1996, with an effective date
194      of October 1, 1996, the amendments to s. 20.03 and the creation
195      of s. 20.18 of Title 47 of the Code of Federal Regulations
196      adopted by the Federal Communications Commission pursuant to
197      such order.
198               b.      Memorandum and Order No. FCC 97-402 adopted on December
199      23, 1997.
200               c.      Order No. FCC DA 98-2323 adopted on November 13, 1998.

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         HB 745                                                                                                2023




201               d.      Order No. FCC 98-345 adopted December 31, 1998.
202               2.      Orders and rules subsequently adopted by the Federal
203      Communications Commission relating to the provision of 911
204      services, including Order Number FCC-05-116, adopted May 19,
205      2005.
206               (w)(u)      "Prepaid wireless category" means all revenues in
207      the fund received through the Department of Revenue from the fee
208      authorized and imposed under subsection (9).
209               (x)(v)      "Prepaid wireless service" means a right to access
210      wireless service that allows a caller to contact and interact
211      with 911 to access the 911 system, which service must be paid
212      for in advance and is sold in predetermined units or dollars,
213      which units or dollars expire on a predetermined schedule or are
214      decremented on a predetermined basis in exchange for the right
215      to access wireless service.
216               (y)(w)      "Public agency" means the state and any
217      municipality, county, municipal corporation, or other
218      governmental entity, public district, or public authority
219      located in whole or in part within this state which provides, or
220      has authority to provide, firefighting, law enforcement,
221      ambulance, medical, or other emergency services.
222               (z)(x)      "Public safety agency" means a functional division
223      of a public agency which provides firefighting, law enforcement,
224      medical, or other emergency services.
225               (aa)(y)      "Public safety answering point," "PSAP," or

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226      "answering point" means the public safety agency that receives
227      incoming 911 requests for assistance and dispatches appropriate
228      public safety agencies to respond to the requests in accordance
229      with the state E911 plan.
230               (bb)(z)      "Rural county" means any county that has a
231      population of fewer than 75,000.
232               (cc)(aa)         "Service identifier" means the service number,
233      access line, or other unique identifier assigned to a subscriber
234      and established by the Federal Communications Commission for
235      purposes of routing calls whereby the subscriber has access to
236      the E911 system.
237               (dd)(bb)         "Tower" means any structure designed primarily to
238      support a wireless provider's antennae.
239               (ee)(cc)         "Voice communications services" means two-way
240      voice service, through the use of any technology, which actually
241      provides access to 911 E911 services, and includes
242      communications services, as defined in s. 202.11, which actually
243      provide access to 911 E911 services and which are required to be
244      included in the provision of 911 E911 services pursuant to
245      orders and rules adopted by the Federal Communications
246      Commission. The term includes voice-over-Internet-protocol
247      service. For the purposes of this section, the term "voice -over-
248      Internet-protocol service" or "VoIP service" means
249      interconnected VoIP services having the following
250      characteristics:

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251               1.      The service enables real-time, two-way voice
252      communications;
253               2.      The service requires a broadband connection from the
254      user's locations;
255               3.      The service requires IP-compatible customer premises
256      equipment; and
257               4.      The service offering allows users generally to receive
258      calls that originate on the public switched telephone network
259      and to terminate calls on the public switched telephone network.
260               (ff)(dd)         "Voice communications services provider" or
261      "provider" means any person or entity providing voice
262      communications services, except that the term does not include
263      any person or entity that resells voice communications services
264      and was assessed the fee authorized and imposed under subsection
265      (8) by its resale supplier.
266               (gg)(ee)         "Wireless 911 system" or "wireless 911 service"
267      means an emergency telephone system or service that provides a
268      subscriber with the ability to reach an answering point by
269      accessing the digits 911.
270               (hh)(ff)         "Wireless category" means the revenues to the
271      fund received from a wireless provider from the fee authorized
272      and imposed under subsection (8).
273               (ii)(gg)         "Wireless communications facility" means any
274      equipment or facility used to provide service and may in clude,
275      but is not limited to, antennae, towers, equipment enclosures,

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276      cabling, antenna brackets, and other such equipment. Placing a
277      wireless communications facility on an existing structure does
278      not cause the existing structure to become a wireless
279      communications facility.
280               (jj)(hh)         "Wireless provider" means a person who provides
281      wireless service and:
282               1.      Is subject to the requirements of the order; or
283               2.      Elects to provide wireless 911 service, or E911
284      service, or NG911 service in this state.
285               (kk)(ii)         "Wireless service" means "commercial mobile radio
286      service" as provided under ss. 3(27) and 332(d) of the Federal
287      Telecommunications Act of 1996, 47 U.S.C. ss. 151 et seq., and
288      the Omnibus Budget Reconciliation Act of 1993, Pub. L. No. 103-
289      66, August 10, 1993, 107 Stat. 312. The term includes service
290      provided by any wireless real-time two-way wire communication
291      device, including radio-telephone communications used in
292      cellular telephone service; personal communications service; or
293      the functional or competitive equivalent of a radio-telephone
294      communications line used in cellular telephone service, a
295      personal communications service, or a network radio access line.
296      The term does not include wireless providers that offer mainly
297      dispatch service in a more localized, noncellular configuration;
298      providers offering only data, one-way, or stored-voice services
299      on an interconnected basis; providers of air-to-ground services;
300      or public coast stations.

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301               (4)         POWERS AND DUTIES OF THE OFFICE.—The office shall
302      oversee the administration of the fee authorized and imposed
303      under subsections (8) and (9).
304               (5)         THE EMERGENCY COMMUNICATIONS E911 BOARD.—
305               (a)         The Emergency Communications E911 Board is established
306      to administer, with oversight by the office, to:
307               1.      Administer governance for how emergency infrastructure
308      and information, such as voice, text, data, and images, are
309      handled from receipt at a PSAP and routing to first responders;
310               2.      Establish a financial model for the state and local
311      governments to use existing revenue sources to invest in public
312      safety communication and technology for first responders; and
313               3.      Administer a financially sustainable model dedicated to
314      public safety communications and technology that will benefit
315      the state and local governments and all state residents and
316      visitors.
317               (b)         Public safety funding under paragraph (a) must focus
318      on, but not be limited to:
319               1.      Next Generation 911.
320               2.      Emergency Services IP Network (ESInet).
321               3.      Computer Aided Dispatch (CAD).
322               4.      Land Mobile Radio (LMR).
323               5.      Smart (Safe) City Technology.
324               6.      In-Building Coverage.
325               7.      Public Safety Broadband Networks.

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326               8.      Cyber Security.
327      , with oversight by the office, the fee imposed under
328      subsections (8) and (9), including receiving revenues derive d
329      from the fee; distributing portions of the revenues to wireless
330      providers, counties, and the office; accounting for receipts,
331      distributions, and income derived by the funds maintained in the
332      fund; and providing annual reports to the Governor and the
333      Legislature for submission by the office on amounts collected
334      and expended, the purposes for which expenditures have been
335      made, and the status of E911 service in this state. In order to
336      advise and assist the office in implementing the purposes of
337      this section, the board, which has the power of a body
338      corporate, has the powers enumerated in subsection (6).
339               (c)(b)      The board shall consist of 7 11 members, one of
340      whom must be the system director designated under s. 365.171(5),
341      or his or her designee, who shall serve as the chair of the
342      board. The remaining 6 10 members of the board shall be
343      appointed by the Governor and must be composed of
344      representatives from the first responder community 5 county 911
345      coordinators, consisting of a representative from a rural
346      county, a representative from a medium county, a representative
347      from a large county, and 2 at-large representatives recommended
348      by the Florida Association of Counties in consultation with the
349      county 911 coordinators; 3 local exchange carrier member
350      representatives, one of whom must be a representative of the

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351      local exchange carrier having the greatest number of access
352      lines in the state and one of whom must be a representative of a
353      certificated competitive local exchange telecommunications
354      company; and 2 member representatives from the wireless
355      telecommunications industry, with consideration given to
356      wireless providers that are not affiliated with local exchange
357      carriers. Not more than one member may be appointed to represent
358      any single provider on the board.
359               (d)(c)        The system director, designated under s.
360      365.171(5), or his or her designee, must be a permanent member
361      of the board. Each of the remaining 6 10 members of the board
362      shall be appointed to a 4-year term and may not be appointed to
363      more than two successive terms. However, for the purpose of
364      staggering terms, two of the original board members shall be
365      appointed to terms of 4 years, two shall be appointed to terms
366      of 3 years, and two four shall be appointed to terms of 2 years,
367      as designated by the Governor. A vacancy on the board shall be
368      filled in the same manner as the original appointment.
369               (e)         The board shall be responsible for ensuring
370      interoperability of and connectivity between public safety
371      communication systems within the state, including, but not
372      limited to, the following:
373               1.      Call routing accuracy and timeliness of response.
374               2.      Improved interagency communication and situational
375      awareness.

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376               3.      Improved interagency system connectivity.
377               3.      Improved response times.
378               4.      Maximized use of emerging technologies.
379               5.      Improved lifecycle management of the systems,
380      equipment, and services that enable responders and public safety
381      officials to share information securely.
382               6.      Developed governance, policy, and procedure across
383      public safety agencies.
384               7.      Established resilient and secure emergency
385      communication systems to reduce cybersecurity threats and
386      vulnerabilities.
387               (f)         The board shall administer the fee imposed under
388      subsections (8) and (9), including receiving revenues derived
389      from the fee; distributing portions of the revenues to counties,
390      state agencies that operate 911 centers, and the office;
391      accounting for receipts, distributions, and income derived by
392      the funds maintained in the fund; and providing annual reports
393      for review and submission to the Governor and the Legislature on
394      amounts collected and expended, the purposes for which
395      expenditures have been made, and the status of emergency
396      communications services in this state.
397               (g)         The board may create subcommittees to advise the
398      board, as needed.
399               (6)         AUTHORITY OF THE BOARD; ANNUAL REPORT.—
400               (a)         The board shall:

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401               1.      Administer the public safety emergency communications
402      systems E911 fee.
403               2.      Implement, maintain, and oversee the fund.
404               3.      Review and oversee the disbursement of the revenues
405      deposited into the fund as provided in s. 365.173.
406               a.      The board may establish a schedule for implementing
407      wireless NG911 systems, public safety radio communications
408      systems, and other public safety communications improvements
409      E911 service by service area, and prioritize disbursements of
410      revenues from the fund to providers and rural counties as
411      provided in s. 365.173(2)(f) s. 365.173(2)(e) and (g) pursuant
412      to the schedule, in order to implement 911 E911 services in the
413      most efficient and cost-effective manner.
414               b.      Before the distribution of revenues from the fund, the
415      board shall provide 90 days' written notice to all counties and
416      publish electronically an approved application process. County
417      applications shall be prioritized based on the availability of
418      funds, current system life expectancy, and system replacement
419      needs. The board shall take all actions within its authority to
420      ensure that county recipients of such funds use these funds only
421      for the purpose under which they have been provided and may take
422      any actions within its authority to secure county repayment of
423      revenues upon a determination that the funds were not used for
424      the purpose for which the funds were dispersed.
425               b. Revenues in the fund which have not been disbursed

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426      because sworn invoices as required by s. 365.173(2)(e) have not
427      been submitted to the board may be used by the board as needed
428      to provide grants to counties for the purpose of upgrading E911
429      systems. The counties must use the funds only for capital
430      expenditures or remotely provided hosted 911 answering point
431      call-taking equipment and network services directly attributable
432      to establishing and provisioning E911 services, which may
433      include next-generation deployment. Prior to the distribution of
434      grants, the board shall provide 90 days' written notice to all
435      counties and publish electronically an approved application
436      process. County grant applications shall be prioritized based on
437      the availability of funds, current system life expectan cy,
438      system replacement needs, and Phase II compliance per the
439      Federal Communications Commission. No grants will be available
440      to any county for next-generation deployment until all counties
441      are Phase II complete. The board shall take all actions within
442      its authority to ensure that county recipients of such grants
443      use these funds only for the purpose under which they have been
444      provided and may take any actions within its authority to secure
445      county repayment of grant revenues upon determination that the
446      funds were not used for the purpose under which they were
447      provided.
448               c.      When determining the funding provided in a state 911
449      grant application request, the board shall take into account
450      information on the amount of carryforward funds retained by the

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451      counties. The information will be based on the amount of county
452      carryforward funds reported in the financial audit required in
453      s. 365.173(2)(d). E911 State Grant Program funding requests will
454      be limited by any county carryforward funds in excess of the
455      allowable 30 percent amount of fee revenue calculated on a 2-
456      year basis.
457               d.      The board shall reimburse all costs of a wireless
458      provider in accordance with s. 365.173(2)(e) before taking any
459      action to transfer additional funds.
460               e.      After taking the action required in sub-subparagraphs
461      a.-d., the board may review and, with all members participating
462      in the vote, adjust the percentage allocations or adjust the
463      amount of the fee as provided under paragraph (8)(g), and, if
464      the board determines that the revenues in the wirel ess category
465      exceed the amount needed to reimburse wireless providers for the
466      cost to implement E911 services, the board may transfer revenue
467      to the counties from the existing funds within the wireless
468      category. The board shall disburse the funds equitably to all
469      counties using a timeframe and distribution methodology
470      established by the board.
471               4.      Review documentation submitted by wireless providers
472      which reflects current and projected funds derived from the fee .
473      , and the expenses incurred and expected to be incurred in order
474      to comply with the E911 service requirements contained in the
475      order for the purposes of:

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476               a.      Ensuring that wireless providers receive fair and
477      equitable distributions of funds from the fund.
478               b.      Ensuring that wireless providers are not provided
479      disbursements from the fund which exceed the costs of providing
480      E911 service, including the costs of complying with the order.
481               c.      Ascertaining the projected costs of compliance with the
482      requirements of the order and projected collections of the fee.
483               d.      Implementing changes to the allocation percentages or
484      adjusting the fee under paragraph (8)(h).
485               5.      Implement changes to the allocation percentages or
486      adjust the fee pursuant to s. 365.173.
487               6.5.        Meet quarterly monthly in the most efficient and
488      cost-effective manner, including telephonically when practical,
489      for the business to be conducted, to review and authorize the
490      schedule of fee allocation transfer and distribution to the
491      counties and state agencies that operate 911 centers approve or
492      reject, in whole or in part, applications submitted by wireless
493      providers for recovery of moneys deposited into the wireless
494      category, and to authorize the transfer of, and distribute, the
495      fee allocation to the counties.
496               7.6.        Hire and retain employees, which may include an
497      independent executive director who shall possess experience in
498      the area of telecommunications and emergency 911 issues, for the
499      purposes of performing the technical and administrative
500      functions for the board.

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501               8.7.        Make and enter into contracts, pursuant to chapter
502      287, and execute other instruments necessary or convenient for
503      the exercise of the powers and functions of the board.
504               9.8.        Sue and be sued, and appear and defend in all actions
505      and proceedings, in its corporate name to the same extent as a
506      natural person.
507               10.9.        Adopt, use, and alter a common corporate seal.
508               11.10.       Elect or appoint the officers and agents that are
509      required by the affairs of the board.
510               12.11.       The board may adopt rules under ss. 120.536(1) and
511      120.54 to implement this section and ss. 365.173 and 365.174.
512               13.12.       Provide coordination, support, and technical
513      assistance to counties to promote the deployment of advanced
514      public safety emergency communications 911 and E911 systems in
515      the state.
516               14.13.       Provide coordination and support for educational
517      opportunities related to 911 E911 issues for the public safety
518      emergency communications E911 community in this state.
519               15.14.       Act as an advocate for issues related to public
520      safety emergency communications E911 system functions, features,
521      and operations to improve the delivery of public safety
522      emergency communications E911 services to the residents of and
523      visitors to this state.
524               16.15.       Coordinate input from this state at national forums
525      and associations, to ensure that policies related to public

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526      safety emergency communications E911 systems and services are
527      consistent with the policies of the public safety emergency
528      communications E911 community in this state.
529               17.16.        Work cooperatively with the system director
530      established in s. 365.171(5) to enhance the state of public
531      safety emergency communications E911 services in this state and
532      to provide unified leadership for all public safety emergency
533      communications E911 issues through planning and coordination.
534               18.17.        Do all acts and things necessary or convenient to
535      carry out the powers granted in this section in a manner that is
536      competitively and technologically neutral as to all voice
537      communications services providers, including, but not limited
538      to, consideration of emerging technology and related cost
539      savings, while taking into account embedded costs in current
540      systems.
541               19.18.        Have the authority to secure the services of an
542      independent, private attorney via invitation to bid, request for
543      proposals, invitation to negotiate, or professional contracts
544      for legal services already established at the Division of
545      Purchasing of the Department of Management Services.
546               (b)         Board members shall serve without compensation;
547      however, members are entitled to per diem and travel expenses as
548      provided in s. 112.061.
549               (c)         By February 28 of each year, the board shall prepare a
550      report for submission by the office to the Governor, the

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551      President of the Senate, and the Speaker of the House of
552      Representatives which addresses for the immediately preceding
553      state fiscal year and county fiscal year:
554               1.      The annual receipts, including the total amount of fee
555      revenues collected by each provider, the total disbursements of
556      money in the fund, including the amount of fund-reimbursed
557      expenses incurred by each wireless provider to comply with the
558      order, and the amount of moneys on deposit in the fund.
559               2.      Whether the amount of the fee and the allocation
560      percentages set forth in s. 365.173 have been or shou ld be
561      adjusted to comply with the requirements of the order or other
562      provisions of this chapter, and the reasons for making or not
563      making a recommended adjustment to the fee.
564               3.      Any other issues related to providing emergency
565      communications E911 services.
566               4.      The status of public safety emergency communications
567      E911 services in this state.
568               (7)         REQUEST FOR PROPOSALS FOR INDEPENDENT ACCOUNTING
569      FIRM.—
570               (a)         The board shall issue a request for proposals as
571      provided in chapter 287 for the purpose of retaining an
572      independent accounting firm. The independent accounting firm
573      shall perform all material administrative and accounting tasks
574      and functions required for administering the fee. The request
575      for proposals must include, but need not be limited to:

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576               1.      A description of the scope and general requirements of
577      the services requested.
578               2.      A description of the specific accounting and reporting
579      services required for administering the fund, including
580      processing checks and distributing funds as directed by the
581      board under s. 365.173.
582               3.      A description of information to be provided by the
583      proposer, including the proposer's background and qualifications
584      and the proposed cost of the services to be provided.
585               (b)         The board shall establish a committee to review
586      requests for proposals which must include the statewide
587      emergency communications systems E911 system director designated
588      under s. 365.171(5), or his or her designee, and two members of
589      the board, one of whom is a county 911 coordinator and one of
590      whom represents a voice communications services provider. The
591      review committee shall review the proposals received by the
592      board and recommend an independent accounting firm to the board
593      for final selection. By agreeing to serve on the review
594      committee, each member of the review committee shall verify that
595      he or she does not have any interest or employment, directly or
596      indirectly, with potential proposers which conflicts in any
597      manner or degree with his or her performance on the committee.
598               (c)         The board may secure the services of an independent
599      accounting firm via invitation to bid, request for proposals,
600      invitation to negotiate, or professional contracts already

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601      established at the Division of Purchasing, Department of
602      Management Services, for certified public accounting firms, or
603      the board may hire and retain professional accounting staff to
604      accomplish these functions.
605               (8)         PUBLIC SAFETY EMERGENCY COMMUNICATIONS SYSTEMS E911
606      FEE.—
607               (a)         Each voice communications services provider shall
608      collect the fee described in this subsection, except that the
609      fee for prepaid wireless service shall be collected in the
610      manner set forth in subsection (9). Each provider, as part of
611      its monthly billing process, shall bill the fee as follows. The
612      fee shall not be assessed on any pay telephone in the state.
613               1.      Each voice communications service provider other than a
614      wireless provider shall bill the fee to a subscriber based on
615      the number of access lines having access to the 911 E911 system,
616      on a service-identifier basis, up to a maximum of 25 access
617      lines per account bill rendered.
618               2.      Each voice communications service provider other than a
619      wireless provider shall bill the fee to a subscriber on a basis
620      of five service-identified access lines for each digital
621      transmission link, including primary rate interface service or
622      equivalent Digital-Signal-1-level service, which can be
623      channelized and split into 23 or 24 voice-grade or data-grade
624      channels for communications, up to a maximum of 25 access lines
625      per account bill rendered.

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626               3.      Except in the case of prepaid wireless service, each
627      wireless provider shall bill the fee to a subscriber on a per -
628      service-identifier basis for service identifiers whose primary
629      place of use is within this state. The fee may shall not be
630      assessed on or collected from a provider with respect to an end
631      user's service if that end user's service is a prepaid wireless
632      service sold before January 1, 2015.
633               4.      Except in the case of prepaid wireless service, each
634      voice communications services provider not addressed under
635      subparagraphs 1., 2., and 3. shall bill the fee on a per -
636      service-identifier basis for service identifiers whose primary
637      place of use is within the state up to a maximum of 25 service
638      identifiers for each account bill rendered.
639
640      The provider may list the fee as a separate entry on each bill,
641      in which case the fee must be identified as a fee for 911 E911
642      services. A provider shall remit the fee to the board only if
643      the fee is paid by the subscriber. If a provider receives a
644      partial payment for a monthly bill from a subscriber, the amount
645      received shall first be applied to the payment due the provider
646      for providing voice communications service.
647               (b)         A provider is not obligated to take any legal action
648      to enforce collection of the fees for which any subscriber is
649      billed. A county subscribing to 911 service remains liable to
650      the provider delivering the 911 service or equipment for any 911

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651      service, equipment, operation, or maintenance charge owed by the
652      county to the provider.
653               (b)(c)      For purposes of this subsection, the state and
654      local governments are not subscribers.
655               (c)(d)      Each provider may retain 1 percent of the amount of
656      the fees collected as reimbursement for the administrative costs
657      incurred by the provider to bill, collect, and remit the fee.
658      The remainder shall be delivered to the board and deposited by
659      the board into the fund. The board shall distribute the
660      remainder pursuant to s. 365.173.
661               (d)(e)      Voice communications services providers billing the
662      fee to subscribers shall deliver revenues from the fee to the
663      board within 60 days after the end of the month in which the fee
664      was billed, together with a monthly report of the number of
665      service identifiers in each county. Each wireless provider and
666      other applicable provider identified in subparagraph (a)4. sh all
667      report the number of service identifiers for subscribers whose
668      place of primary use is in each county. All provider subscriber
669      information provided to the board is subject to s. 365.174. If a
670      provider chooses to remit any fee amounts to the board befor e
671      they are paid by the subscribers, a provider may apply to the
672      board for a refund of, or may take a credit for, any such fees
673      remitted to the board which are not collected by the provider
674      within 6 months following the month in which the fees are
675      charged off for federal income tax purposes as bad debt.

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676               (e)(f)       The rate of the fee may not exceed 50 cents per
677      month for each service identifier. Effective January 1, 2015,
678      the fee shall be 40 cents per month for each service identifier.
679      The fee shall apply uniformly and be imposed throughout the
680      state, except for those counties that, before July 1, 2007, had
681      adopted an ordinance or resolution establishing a fee less than
682      50 cents per month per access line. In those counties the fee
683      established by ordinance may be changed only to the uniform
684      statewide rate no sooner than 30 days after notification is made
685      by the county's board of county commissioners to the board .
686               (f)(g)       The board may adjust the allocation percentages for
687      distribution of the fund as provided in s. 365.173. No sooner
688      than June 1, 2015, the board may adjust the rate of the fee
689      under paragraph (f) based on the criteria in this paragraph and
690      paragraph (h). Any adjustment in the rate must be approved by a
691      two-thirds vote of the total number of E911 board members. When
692      setting the percentages or contemplating any adjustments to the
693      fee, the board shall consider the following:
694               1.      The revenues currently allocated for wireless service
695      provider costs for implementing E911 service and projected costs
696      for implementing E911 service, including recurring costs for
697      Phase I and Phase II and the effect of new technologies;
698               1.2.        The appropriate level of funding needed to fund the
699      rural grant program provided for in s. 365.173(2)(f) s.
700      365.173(2)(g); and

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701               2.3.        The need to fund statewide, regional, and county
702      grants in accordance with sub-subparagraph (6)(a)3.b. and s.
703      365.173(2)(g) s. 365.173(2)(h).
704               (g)(h)       The board may adjust the allocation percentages or
705      adjust the amount of the fee as provided in paragraph (f) (g) if
706      necessary to ensure full cost recovery or prevent over recovery
707      overrecovery of costs incurred in the provision of 911 E911
708      service, including costs incurred or projected to be incurred to
709      comply with the order. Any new allocation percentages or reduced
710      or increased fee may not be adjusted for 1 year. In no event
711      shall the fee exceed 50 cents per month for each service
712      identifier. The fee, and any board adjustment of the fee, shall
713      be uniform throughout the state, except for the counties
714      identified in paragraph (f). No less than 90 days before the
715      effective date of any adjustment to the fee, the board shall
716      provide written notice of the adjusted fee amount and effective
717      date to each voice communications services provider from which
718      the board is then receiving the fee.
719               (h)(i)       It is the intent of the Legislature that all
720      revenue from the fee be used as specified in s. 365.173(2)(a)-
721      (h) s. 365.173(2)(a)-(i).
722               (i)(j)       State and local taxes do not apply to the fee. The
723      amount of the E911 fee collected by a provider may not be
724      included in the base for imposition of any tax, fee, surcharge,
725      or other charge imposed by this state, any political subdivision

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726      of this state, or any intergovernmental agency.
727               (j)(k)        A local government may not levy the fee or any
728      additional fee on providers or subscribers for the provision of
729      911 E911 service.
730               (k)(l)        For purposes of this section, the definitions
731      contained in s. 202.11 and the provisions of s. 202.155 apply in
732      the same manner and to the same extent as the definitions and
733      provisions apply to the taxes levied under chapter 202 on mobile
734      communications services.
735               (9)         PREPAID WIRELESS PUBLIC SAFETY EMERGENCY
736      COMMUNICATIONS SYSTEMS E911 FEE.—
737               (a)         Effective January 1, 2015, a prepaid wireless E911 fee
738      is imposed per retail transaction at the rate established in
739      paragraph (8)(f). In order to allow sellers of all sizes and
740      technological capabilities adequate time to comply with this
741      subsection, a seller of prepaid wireless service operating in
742      this state before the prepaid wireless E911 fee is imposed shall
743      retain 100 percent of the fee collected under this paragraph for
744      the first 2 months to offset the cost of setup.
745               (a)(b)        Effective July 1, 2023 March 1, 2015, the prepaid
746      wireless E911 fee imposed under paragraph (a) shall be subject
747      to remittance in accordance with paragraph (f) (g). In no event
748      shall the fee exceed 50 cents for each retail transaction. At
749      least 90 days before the effective date of any adjustment to the
750      fee under paragraph (8)(f) (8)(g), the Department of Revenue

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751      shall provide written notice of the adjusted fee amount and its
752      effective date to each seller from which the department is then
753      receiving the fee. At least 120 days before the effective date
754      of any adjustment to the fee imposed under this subsection, the
755      board shall provide notice to the Department of Revenue of the
756      adjusted fee amount and effective date of the adjustment.
757               (b)(c)      The prepaid wireless E911 fee shall be collected by
758      the seller from the consumer with respect to each retail
759      transaction occurring in this state. The amount of the prepaid
760      wireless E911 fee shall be separately stated on an invoice,
761      receipt, or other similar document that is provided to the
762      consumer by the seller or otherwise disclosed to the consumer.
763               (c)(d)      For purposes of paragraph (b) (c), a retail
764      transaction that takes place in person by a consumer at a
765      business location of the seller shall be treated as occurring in
766      this state if that business location is in this state. Such
767      transaction is deemed to have occurred in the county of the
768      business location. When a retail transaction does not take place
769      at the seller's business location, the transaction shall be
770      treated as taking place at the consumer's shipping address or,
771      if no item is shipped, at the consumer's address or the location
772      associated with the consumer's mobile telephone number. Such
773      transaction is deemed to have occurred in the county of the
774      consumer's shipping address when items are shipped to the
775      consumer or, when no items are shipped, the county of the

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         HB 745                                                                                                2023




776      consumer's address or the location associated with the
777      consumer's mobile telephone number. A transaction for which the
778      specific Florida county cannot be determined shall be treated as
779      nonspecific.
780               (d)(e)      If a prepaid wireless device is sold for a single,
781      nonitemized price with a prepaid wireless service of 10 minutes
782      or less or $5 or less, the seller may elect not to apply the
783      prepaid wireless E911 fee to the transaction.
784               (e)(f)      The amount of the prepaid wireless E911 fee that is
785      collected by a seller from a consumer and that is separately
786      stated on an invoice, receipt, or similar document provided to
787      the consumer by the seller, may not be included in the base for
788      imposition of any tax, fee, surcharge, or other charge that is
789      imposed by this state, any political subdivision of this state,
790      or any intergovernmental agency.
791               (f)(g)      Beginning July 1, 2023 April 1, 2015, each seller
792      shall file a return and remit the prepaid wireless E911 fees
793      collected in the previous month to the Department of Revenue on
794      or before the 20th day of the month. If the 20th day falls on a
795      Saturday, Sunday, or legal holiday, payments accompanied by
796      returns are due on the next succeeding day that is not a
797      Saturday, Sunday, or legal holiday observed by federal or state
798      agencies as defined in chapter 683 and s. 7503 of the Internal
799      Revenue Code of 1986, as amended. A seller may remit the prepaid
800      wireless E911 fee by electronic funds transfer and file a fee

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801      return with the Department of Revenue that is initiated through
802      an electronic data interchange.
803               1.      When a seller is authorized by the Department of
804      Revenue pursuant to s. 212.11(1)(c) or (d) to file a sales and
805      use tax return on a quarterly, semiannual, or annual reporting
806      basis, the seller may file a return and remit the prepaid
807      wireless E911 fees on or before the 20th day of the month
808      following the authorized reporting period for sales and use tax.
809               2.      A seller collecting less than $50 per month of prepaid
810      wireless E911 fees may file a quarterly return for the calendar
811      quarters ending in March, June, September, and December. The
812      seller must file a return and remit the prepaid wireless E911
813      fees collected during each calendar quarter on or before the
814      20th day of the month following that calendar quarter.
815               3.      A seller must provide the following information on each
816      prepaid wireless E911 fee return filed with the Department of
817      Revenue:
818               a.      The seller's name, federal identification number,
819      taxpayer identification number issued by the Department of
820      Revenue, business location address and mailing address, and
821      county of the business location in accordance with paragraph (c)
822      (d);
823               b.      The reporting period;
824               c.      The number of prepaid wireless services sold during the
825      reporting period;

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826               d.      The amount of prepaid wireless E911 fees collected and
827      the amount of any adjustments to the fees collected;
828               e.      The amount of any retailer collection allowance
829      deducted from the amount of prepaid wireless E911 fees
830      collected; and
831               f.      The amount to be remitted to the Department of Revenue.
832               4.      A seller who operates two or more business locations
833      for which returns are required to be filed with the Department
834      of Revenue may file a consolidated return reporting and
835      remitting the prepaid wireless E911 fee for all business
836      locations. Such sellers must report the prepaid wireless E911
837      fees collected in each county, in accordance with paragraph (c)
838      (d), on a reporting schedule filed with the fee return.
839               5.      A return is not required for a reporting period when no
840      prepaid wireless E911 fee is to be remitted for that period.
841               6.      Except as provided in this section, the Department of
842      Revenue shall administer, collect, and enforce the fee under
843      this subsection pursuant to the same procedures used in the
844      administration, collection, and enforcement of the general state
845      sales tax imposed under chapter 212. The provisions of chapter
846      212 regarding authority to audit and make assessments, keeping
847      of books and records, and interest and penalties on delinquent
848      fees shall apply. The provisions of estimated tax liability in
849      s. 212.11(1)(a) do not apply to the prepaid wireless E911 fee.
850               (g)(h)      A seller of prepaid wireless services in this state

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851      must register with the Department of Revenue for each place of
852      business as required by s. 212.18(3) and the Department of
853      Revenue's administrative rule regarding registration as a sales
854      and use tax dealer. A separate application is required for each
855      place of business. A valid certificate of registration issued by
856      the Department of Revenue to a seller for sales and use tax
857      purposes is sufficient for purposes of the registration
858      requirement of this subsection. There is no fee for registration
859      for remittance of the prepaid wireless E911 fee.
860               (h)(i)      The Department of Revenue shall deposit the funds
861      remitted under this subsection into the Audit and Warrant
862      Clearing Trust Fund established in s. 215.199 and retain up to
863      3.2 percent of the funds remitted under this subsection to
864      reimburse its direct costs of administering the collection and
865      remittance of prepaid wireless E911 fees. Thereafter, the
866      Department of Revenue shall transfer all remaining funds
867      remitted under this subsection to the Emergency Communications
868      Number E911 System Fund monthly for use as provided in s.
869      365.173.
870               (i)(j)      Beginning March 1, 2015, a seller may retain 5
871      percent of the prepaid wireless E911 fees that are collected by
872      the seller from consumers as a retailer collection allowance.
873               (j)(k)      A provider or seller of prepaid wireless service is
874      not liable for damages to any person resulting from or incurred
875      in connection with providing or failing to provide emergency

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876      communications and 911 or E911 service or for identifying or
877      failing to identify the telephone number, address, location, or
878      name associated with any person or device that is accessing or
879      attempting to access emergency communications and 911 or E911
880      service.
881               (k)(l)      A provider or seller of prepaid wireless service is
882      not liable for damages to any person resulting from or incurred
883      in connection with providing any lawful assistance to any
884      investigative or law enforcement officer of the United States,
885      any state, or any political subdivision of any state in
886      connection with any lawful investigation or other law
887      enforcement activity by such law enforcement officer.
888               (l)(m)      The limitations of liability under this subsection
889      for providers and sellers are in addition to any other
890      limitation of liability provided for under this section.
891               (m)(n)      A local government may not levy the fee or any
892      additional fee on providers or sellers of prepaid wireless
893      service for the provision of E911 service.
894               (n)(o)      For purposes of this section, the state and local
895      governments are not consumers.
896               (o)(p)      For purposes of this subsection, the term:
897               1.      "Consumer" means a person who purchases prepaid
898      wireless service in a retail sale.
899               2.      "Prepaid wireless E911 fee" means the fee that is
900      required to be collected by a seller from a consumer as provided

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         HB 745                                                                                                2023




901      in this subsection.
902               3.      "Provider" means a person that provides prepaid
903      wireless service pursuant to a license issued by the Federal
904      Communications Commission.
905               4.      "Retail transaction" means the purchase by a consumer
906      from a seller of prepaid wireless service that may be applied to
907      a single service identifier for use by the consumer. If a
908      consumer makes a purchase of multiple prepaid wireless services
909      in a single transaction, each individual prepaid wireless
910      service shall be considered a separate retail transaction for
911      purposes of calculating the prepaid wireless E911 fee.
912               5.      "Seller" means a person who makes retail sales of
913      prepaid wireless services to a consumer.
914               (10)        AUTHORIZED EXPENDITURES OF PUBLIC SAFETY EMERGENCY
915      COMMUNICATIONS SYSTEMS E911 FEE.—
916               (a)         For purposes of this section, emergency communications
917      and 911 E911 service includes the functions relating to the
918      receipt and transfer of requests for emergency assistance, of
919      database management, call taking, and location verification, and
920      call transfer. Department of Health certification and
921      recertification and training costs for 911 public safety
922      telecommunications, including dispatching, are functions of
923      public safety emergency telecommunications 911 services.
924               (b)         All costs directly attributable to the establishment
925      or provision of emergency communications equipment E911 service

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926      and contracting for E911 services are eligible for expenditure
927      of moneys derived from imposition of the fee authorized by
928      subsections (8) and (9). These costs include the acquisition,
929      implementation, and maintenance of Public Safety Answering Point
930      (PSAP) equipment and E911 service features, as defined in the
931      providers' published schedules or the acquisition, installation,
932      and maintenance of other E911 equipment, including: circuits;
933      call answering equipment; call transfer equipment; ANI or ALI
934      controllers; ANI or ALI displays; station instruments; NG911
935      E911 telecommunications systems; Emergency Services IP Network
936      ESInet; visual call information and storage devices; recording
937      equipment; telephone devices and other equipment for the hearing
938      impaired used in the E911 system; PSAP backup power systems;
939      consoles; automatic call distributors, and interfaces, including
940      hardware and software, for computer-aided dispatch (CAD)
941      systems; public safety land mobile radio systems (LMR) and
942      radios integrated CAD systems for that portion of the systems
943      used for E911 call taking; GIS system and software equipment and
944      information displays; network clocks; In-building coverage;
945      cybersecurity, including hardware, software, and services;
946      salary and associated expenses for 911 E911 call takers and
947      emergency dispatchers for that portion of their time spent
948      taking and transferring E911 calls, salary, and associated
949      expenses for a county to employ a full-time equivalent 911 E911
950      coordinator position and a full-time equivalent mapping or

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951      geographical data position, and technical system maintenance,
952      database, and administration personnel for the portion of their
953      time spent administrating the emergency communications E911
954      system; emergency medical, fire, and law enforcement prearrival
955      instruction software; charts and training costs; training costs
956      for PSAP call takers, dispatchers, supervisors, and managers in
957      the proper methods and techniques used in taking and
958      transferring 911 E911 calls; costs to train and educate PSAP
959      employees regarding 911 and radio E911 service or NG911 E911
960      equipment, including fees collected by the Department of Health
961      for the certification and recertification of 911 public safety
962      telecommunicators as required under s. 401.465; and expenses
963      required to develop and maintain all information, including ALI
964      and ANI databases and other information source repositories,
965      necessary to properly inform call takers as to location address,
966      type of emergency, Smart City Technologies, public safety
967      broadband networks, and other information directly relevant to
968      the public safety emergency communications E911 call-taking and
969      transferring function. Moneys derived from the fee may also be
970      used for next-generation E911 network services, next-generation
971      E911 database services, next-generation E911 equipment, and
972      wireless E911 routing systems and equipment.
973               (c)         The moneys may not be used to pay for any item not
974      listed in this subsection, including, but not limited to, any
975      capital or operational costs for emergency responses which occur

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          HB 745                                                                                                2023




 976      after the call transfer to the responding public safety entity
 977      and the costs for utilities, constructing, leasing, maintaining,
 978      or renovating buildings, except for those building modifications
 979      necessary to maintain the security and environmental integrity
 980      of the PSAP and emergency communications E911 equipment rooms.
 981               (11)        LIABILITY OF COUNTIES.—A county subscribing to 911
 982      service remains liable to the local exchange carrier for any 911
 983      service, equipment, operation, or maintenance charge owed by the
 984      county to the local exchange carrier. As used in this
 985      subsection, the term "local exchange carrier" means a local
 986      exchange telecommunications service provider of 911 service or
 987      equipment to any county within its certificated area.
 988               (12)        INDEMNIFICATION AND LIMITATION OF LIABILITY. —A local
 989      government may indemnify local exchange carriers against
 990      liability in accordance with the published schedules of the
 991      company. Notwithstanding an indemnification agreement, a local
 992      exchange carrier, voice communications services provider, or
 993      other service provider that provides 911, or E911, or NG911
 994      service on a retail or wholesale basis is not liable for damages
 995      resulting from or in connection with 911, or E911, or NG911
 996      service, or for identification of the telephone number, or
 997      address, or name associated with any person accessing 911, or
 998      E911, or NG911 service, unless the carrier or provider acted
 999      with malicious purpose or in a manner exhibiting wanton and
1000      willful disregard of the rights, safety, or property of a person

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          HB 745                                                                                                2023




1001      when providing such services. A carrier or provider is not
1002      liable for damages to any person resulting from or in connection
1003      with the carrier's or provider's provision of any lawful
1004      assistance to any investigative or law enforcement officer of
1005      the United States, this state, or a political subdivision
1006      thereof, or of any other state or political subdivision thereof,
1007      in connection with any lawful investigation or other law
1008      enforcement activity by such law enforcement officer. For
1009      purposes of this subsection, the term "911, or E911, or NG911
1010      service" means a telecommunications service, voice or nonvoice
1011      communications service, or other wireline or wireless service,
1012      including, but not limited to, a service using Internet
1013      protocol, which provides, in whole or in part, any of the
1014      following functions: providing members of the public with the
1015      ability to reach an answering point by using the digits 9-1-1;
1016      directing 911 calls to answering points by selective routing;
1017      providing for automatic number identification and automatic
1018      location-identification features; or providing wireless E911
1019      services as defined in the order.
1020               (13)        FACILITATING EMERGENCY COMMUNICATIONS E911 SERVICE
1021      IMPLEMENTATION.—To balance the public need for reliable
1022      emergency communications E911 services through reliable wireless
1023      systems and the public interest served by governmental zoning
1024      and land development regulations and notwithstanding any other
1025      law or local ordinance to the contrary, the following standards

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          HB 745                                                                                                2023




1026      shall apply to a local government's actions, as a regulatory
1027      body, in the regulation of the placement, construction, or
1028      modification of a wireless communications facility. This
1029      subsection shall not, however, be construed to waive or alter
1030      the provisions of s. 286.011 or s. 286.0115. For the purposes of
1031      this subsection only, "local government" shall mean any
1032      municipality or county and any agency of a municipality or
1033      county only. The term "local government" does not, however,
1034      include any airport, as defined by s. 330.27(2), even if it is
1035      owned or controlled by or through a municipality, county, or
1036      agency of a municipality or county. Further, notwithstanding
1037      anything in this section to the contrary, this subsection does
1038      not apply to or control a local government's actions as a
1039      property or structure owner in the use of any property or
1040      structure owned by such entity for the placement, construction,
1041      or modification of wireless communications facilities. In the
1042      use of property or structures owned by the local government,
1043      however, a local government may not use its regulatory authority
1044      so as to avoid compliance with, or in a manner that does not
1045      advance, the provisions of this subsection.
1046               (a)         Collocation among wireless providers is encouraged by
1047      the state.
1048               1.a.        Collocations on towers, including nonconforming
1049      towers, that meet the requirements in sub-sub-subparagraphs (I),
1050      (II), and (III), are subject to only building permit review,

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          HB 745                                                                                                2023




1051      which may include a review for compliance with this
1052      subparagraph. Such collocations are not subject to any design or
1053      placement requirements of the local government's land
1054      development regulations in effect at the time of the collocation
1055      that are more restrictive than those in effect at the time of
1056      the initial antennae placement approval, to any other portion of
1057      the land development regulations, or to public hearing review.
1058      This sub-subparagraph shall not preclude a public hearing for
1059      any appeal of the decision on the collocation application.
1060               (I)         The collocation does not increase the height of the
1061      tower to which the antennae are to be attached, measured to the
1062      highest point of any part of the tower or any existing antenna
1063      attached to the tower;
1064               (II)        The collocation does not increase the ground space
1065      area, commonly known as the compound, approved in the site plan
1066      for equipment enclosures and ancillary facilities; and
1067               (III)        The collocation consists of antennae, equipment
1068      enclosures, and ancillary facilities that are of a design and
1069      configuration consistent with all applicable regulations,
1070      restrictions, or conditions, if any, applied to the initial
1071      antennae placed on the tower and to its accompanying equipment
1072      enclosures and ancillary facilities and, if applicable, applied
1073      to the tower supporting the antennae. Such regulations may
1074      include the design and aesthetic requirements, but not
1075      procedural requirements, other than those authorized by this

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          HB 745                                                                                                2023




1076      section, of the local government's land development regulations
1077      in effect at the time the initial antennae placement was
1078      approved.
1079               b.      Except for a historic building, structure, site,
1080      object, or district, or a tower included in sub-subparagraph a.,
1081      collocations on all other existing structures that meet the
1082      requirements in sub-sub-subparagraphs (I)-(IV) shall be subject
1083      to no more than building permit review, and an administrative
1084      review for compliance with this subparagraph. Such collocations
1085      are not subject to any portion of the local government's land
1086      development regulations not addressed herein, or to public
1087      hearing review. This sub-subparagraph shall not preclude a
1088      public hearing for any appeal of the decision on the collocation
1089      application.
1090               (I)         The collocation does not increase the height of the
1091      existing structure to which the antennae are to be attached,
1092      measured to the highest point of any part of the structure or
1093      any existing antenna attached to the structure;
1094               (II)        The collocation does not increase the ground space
1095      area, otherwise known as the compound, if any, approved in the
1096      site plan for equipment enclosures and ancillary facilities;
1097               (III)        The collocation consists of antennae, equipment
1098      enclosures, and ancillary facilities that are of a design and
1099      configuration consistent with any applicable structural or
1100      aesthetic design requirements and any requirements for location

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          HB 745                                                                                                2023




1101      on the structure, but not prohibitions or restrictions on the
1102      placement of additional collocations on the existing structure
1103      or procedural requirements, other than those authorized by this
1104      section, of the local government's land development regulations
1105      in effect at the time of the collocation application; and
1106               (IV)        The collocation consists of antennae, equipment
1107      enclosures, and ancillary facilities that are of a design and
1108      configuration consistent with all applicable restrictions or
1109      conditions, if any, that do not conflict with sub-sub-
1110      subparagraph (III) and were applied to the initial antennae
1111      placed on the structure and to its accompanying equipment
1112      enclosures and ancillary facilities and, if applicable, applied
1113      to the structure supporting the antennae.
1114               c.      Regulations, restrictions, conditions, or permits of
1115      the local government, acting in its regulatory capacity, that
1116      limit the number of collocations or require review processes
1117      inconsistent with this subsection shall not apply to
1118      collocations addressed in this subparagraph.
1119               d.      If only a portion of the collocation does not meet the
1120      requirements of this subparagraph, such as an increase in the
1121      height of the proposed antennae over the existing structure
1122      height or a proposal to expand the ground space approved in the
1123      site plan for the equipment enclosure, where all other portions
1124      of the collocation meet the requirements of this subparagraph ,
1125      that portion of the collocation only may be reviewed under the

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          HB 745                                                                                                2023




1126      local government's regulations applicable to an initial
1127      placement of that portion of the facility, including, but not
1128      limited to, its land development regulations, and within the
1129      review timeframes of subparagraph (d)2., and the rest of the
1130      collocation shall be reviewed in accordance with this
1131      subparagraph. A collocation proposal under this subparagraph
1132      that increases the ground space area, otherwise known as the
1133      compound, approved in the original site plan for equipment
1134      enclosures and ancillary facilities by no more than a cumulative
1135      amount of 400 square feet or 50 percent of the original compound
1136      size, whichever is greater, shall, however, require no more than
1137      administrative review for compliance with the local government's
1138      regulations, including, but not limited to, land development
1139      regulations review, and building permit review, with no public
1140      hearing review. This sub-subparagraph shall not preclude a
1141      public hearing for any appeal of the decision on the collocation
1142      application.
1143               2.      If a collocation does not meet the requirements of
1144      subparagraph 1., the local government may review the application
1145      under the local government's regulations, including, but not
1146      limited to, land development regulations, applicable to the
1147      placement of initial antennae and their accompanying equipment
1148      enclosure and ancillary facilities.
1149               3.      If a collocation meets the requirements of subparagraph
1150      1., the collocation shall not be considered a modification to an

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          HB 745                                                                                                2023




1151      existing structure or an impermissible modification of a
1152      nonconforming structure.
1153               4.      The owner of the existing tower on which the proposed
1154      antennae are to be collocated shall remain responsible for
1155      compliance with any applicable condition or requirement of a
1156      permit or agreement, or any applicable condition or requirement
1157      of the land development regulations to which the existing tower
1158      had to comply at the time the tower was permitted, including any
1159      aesthetic requirements, provided the condition or requirement is
1160      not inconsistent with this paragraph.
1161               5.      An existing tower, including a nonconforming tower, may
1162      be structurally modified in order to permit collocation or may
1163      be replaced through no more than administrative review and
1164      building permit review, and is not subject to public hearing
1165      review, if the overall height of the tower is not increased and,
1166      if a replacement, the replacement tower is a monopole tower or,
1167      if the existing tower is a camouflaged tower, the replacement
1168      tower is a like-camouflaged tower. This subparagraph shall not
1169      preclude a public hearing for any appeal of the decision on the
1170      application.
1171               (b)1.       A local government's land development and
1172      construction regulations for wireless communications facilities
1173      and the local government's review of an application for the
1174      placement, construction, or modification of a wireless
1175      communications facility shall only address land development or

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          HB 745                                                                                                2023




1176      zoning issues. In such local government regulations or review,
1177      the local government may not require information on or evaluate
1178      a wireless provider's business decisions about its service,
1179      customer demand for its service, or quality of its service to or
1180      from a particular area or site, unless the wireless provider
1181      voluntarily offers this information to the local government. In
1182      such local government regulations or review, a local government
1183      may not require information on or evaluate the wireless
1184      provider's designed service unless the information or materials
1185      are directly related to an identified land development or zoning
1186      issue or unless the wireless provider voluntarily offers the
1187      information. Information or materials directly related to an
1188      identified land development or zoning issue may include, but are
1189      not limited to, evidence that no existing structure can
1190      reasonably be used for the antennae placement instead of the
1191      construction of a new tower, that residential areas cannot be
1192      served from outside the residential area, as addressed in
1193      subparagraph 3., or that the proposed height of a new tower or
1194      initial antennae placement or a proposed height increase of a
1195      modified tower, replacement tower, or collocation is necessary
1196      to provide the provider's designed service. Nothing in this
1197      paragraph shall limit the local government from reviewing any
1198      applicable land development or zoning issue addressed in its
1199      adopted regulations that does not conflict with this section,
1200      including, but not limited to, aesthetics, landscaping, land

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          HB 745                                                                                                2023




1201      use-based land use based location priorities, structural design,
1202      and setbacks.
1203               2.      Any setback or distance separation required of a tower
1204      may not exceed the minimum distance necessary, as determined by
1205      the local government, to satisfy the structural safety or
1206      aesthetic concerns that are to be protected by the setback or
1207      distance separation.
1208               3.      A local government may exclude the placement of
1209      wireless communications facilities in a residential area or
1210      residential zoning district but only in a manner that does not
1211      constitute an actual or effective prohibition of the provider's
1212      service in that residential area or zoning district. If a
1213      wireless provider demonstrates to the satisfaction of the local
1214      government that the provider cannot reasonably provide its
1215      service to the residential area or zone from outside the
1216      residential area or zone, the municipality or county and
1217      provider shall cooperate to determine an appropriate location
1218      for a wireless communications facility of an appropriate design
1219      within the residential area or zone. The local government may
1220      require that the wireless provider reimburse the reasonable
1221      costs incurred by the local government for this cooperative
1222      determination. An application for such cooperative determination
1223      shall not be considered an application under paragraph (d).
1224               4.      A local government may impose a reasonable fee on
1225      applications to place, construct, or modify a wireless

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          HB 745                                                                                                2023




1226      communications facility only if a similar fee is imposed on
1227      applicants seeking other similar types of zoning, land use, or
1228      building permit review. A local government may impose fees for
1229      the review of applications for wireless communications
1230      facilities by consultants or experts who conduct code compliance
1231      review for the local government but any fee is limited to
1232      specifically identified reasonable expenses incurred in the
1233      review. A local government may impose reasonable surety
1234      requirements to ensure the removal of wireless communications
1235      facilities that are no longer being used.
1236               5.      A local government may impose design requirements, such
1237      as requirements for designing towers to support collocation or
1238      aesthetic requirements, except as otherwise limited in this
1239      section, but shall not impose or require information on
1240      compliance with building code type standards for the
1241      construction or modification of wireless communications
1242      facilities beyond those adopted by the local government under
1243      chapter 553 and that apply to all similar types of construction.
1244               (c)         Local governments may not require wireless providers
1245      to provide evidence of a wireless communications facility's
1246      compliance with federal regulations, except evidence of
1247      compliance with applicable Federal Aviation Administration
1248      requirements under 14 C.F.R. part 77, as amended, and evidence
1249      of proper Federal Communications Commission licensure, or other
1250      evidence of Federal Communications Commission authorized

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          HB 745                                                                                                2023




1251      spectrum use, but may request the Federal Communications
1252      Commission to provide information as to a wireless provider's
1253      compliance with federal regulations, as authorized by federal
1254      law.
1255               (d)1.        A local government shall grant or deny each properly
1256      completed application for a collocation under subparagraph (a)1.
1257      based on the application's compliance with the local
1258      government's applicable regulations, as provided for in
1259      subparagraph (a)1. and consistent with this subsection, and
1260      within the normal timeframe for a similar building permit review
1261      but in no case later than 45 business days after the date the
1262      application is determined to be properly completed in accordance
1263      with this paragraph.
1264               2.      A local government shall grant or deny each properly
1265      completed application for any other wireless communications
1266      facility based on the application's compliance with the local
1267      government's applicable regulations, including but not limited
1268      to land development regulations, consistent with this subsection
1269      and within the normal timeframe for a similar type review but in
1270      no case later than 90 business days after the date the
1271      application is determined to be properly completed in accordance
1272      with this paragraph.
1273               3.a.        An application is deemed submitted or resubmitted on
1274      the date the application is received by the local government. If
1275      the local government does not notify the applicant in writing

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          HB 745                                                                                                2023




1276      that the application is not completed in compliance with the
1277      local government's regulations within 20 business days after the
1278      date the application is initially submitted or additional
1279      information resubmitted, the application is deemed, for
1280      administrative purposes only, to be properly completed and
1281      properly submitted. However, the determination shall not be
1282      deemed as an approval of the application. If the application is
1283      not completed in compliance with the local government's
1284      regulations, the local government shall so notify the applicant
1285      in writing and the notification must indicate with specificity
1286      any deficiencies in the required documents or deficiencies in
1287      the content of the required documents which, if cured, make the
1288      application properly completed. Upon resubmission of information
1289      to cure the stated deficiencies, the local government shall
1290      notify the applicant, in writing, within the normal timeframes
1291      of review, but in no case longer than 20 business days after the
1292      additional information is submitted, of any remaining
1293      deficiencies that must be cured. Deficiencies in document type
1294      or content not specified by the local government do not make the
1295      application incomplete. Notwithstanding this sub-subparagraph,
1296      if a specified deficiency is not properly cured when the
1297      applicant resubmits its application to comply with the notice of
1298      deficiencies, the local government may continue to request the
1299      information until such time as the specified deficiency is
1300      cured. The local government may establish reasonable timeframes

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          HB 745                                                                                                2023




1301      within which the required information to cure the application
1302      deficiency is to be provided or the application will be
1303      considered withdrawn or closed.
1304               b.      If the local government fails to grant or deny a
1305      properly completed application for a wireless communications
1306      facility within the timeframes set forth in this paragraph, the
1307      application shall be deemed automatically approved and the
1308      applicant may proceed with placement of the facilities without
1309      interference or penalty. The timeframes specified in
1310      subparagraph 2. may be extended only to the extent that the
1311      application has not been granted or denied because the local
1312      government's procedures generally applicable to all other
1313      similar types of applications require action by the governing
1314      body and such action has not taken place within the timeframes
1315      specified in subparagraph 2. Under such circumstances, the local
1316      government must act to either grant or deny the application at
1317      its next regularly scheduled meeting or, otherwise, the
1318      application is deemed to be automatically approved.
1319               c.      To be effective, a waiver of the timeframes set forth
1320      in this paragraph must be voluntarily agreed to by the applicant
1321      and the local government. A local government may request, but
1322      not require, a waiver of the timeframes by the applicant, except
1323      that, with respect to a specific application, a one -time waiver
1324      may be required in the case of a declared local, state, or
1325      federal emergency that directly affects the administration of

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          HB 745                                                                                                2023




1326      all permitting activities of the local government.
1327               (e)         The replacement of or modification to a wireless
1328      communications facility, except a tower, that results in a
1329      wireless communications facility not readily discernibly
1330      different in size, type, and appearance when viewed from ground
1331      level from surrounding properties, and the replacement or
1332      modification of equipment that is not visible from surro unding
1333      properties, all as reasonably determined by the local
1334      government, are subject to no more than applicable building
1335      permit review.
1336               (f)         Any other law to the contrary notwithstanding, the
1337      Department of Management Services shall negotiate, in the name
1338      of the state, leases for wireless communications facilities that
1339      provide access to state government-owned property not acquired
1340      for transportation purposes, and the Department of
1341      Transportation shall negotiate, in the name of the state, leases
1342      for wireless communications facilities that provide access to
1343      property acquired for state rights-of-way. On property acquired
1344      for transportation purposes, leases shall be granted in
1345      accordance with s. 337.251. On other state government -owned
1346      property, leases shall be granted on a space available, first-
1347      come, first-served basis. Payments required by state government
1348      under a lease must be reasonable and must reflect the market
1349      rate for the use of the state government-owned property. The
1350      Department of Management Services and the Department of

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          HB 745                                                                                                2023




1351      Transportation are authorized to adopt rules for the terms and
1352      conditions and granting of any such leases.
1353               (g)         If any person adversely affected by any action, or
1354      failure to act, or regulation, or requirement of a local
1355      government in the review or regulation of the wireless
1356      communication facilities files an appeal or brings an
1357      appropriate action in a court or venue of competent
1358      jurisdiction, following the exhaustion of all administrative
1359      remedies, the matter shall be considered on an expedited basis.
1360               (14)        MISUSE OF 911, OR E911, OR NG911 SYSTEM; PENALTY.—
1361      911, and E911, and NG911 service must be used solely for
1362      emergency communications by the public. Any person who accesses
1363      the number 911 for the purpose of making a false alarm or
1364      complaint or reporting false information that could result in
1365      the emergency response of any public safety agency; any person
1366      who knowingly uses or attempts to use such service for a purpose
1367      other than obtaining public safety assistance; or any person who
1368      knowingly uses or attempts to use such service in an effort to
1369      avoid any charge for service, commits a misdemeanor of the first
1370      degree, punishable as provided in s. 775.082 or s. 775.083.
1371      After being convicted of unauthorized use of such service four
1372      times, a person who continues to engage in such unauthorized use
1373      commits a felony of the third degree, punishable as provided in
1374      s. 775.082, s. 775.083, or s. 775.084. In addition, if the value
1375      of the service or the service charge obtained in a manner

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          HB 745                                                                                                2023




1376      prohibited by this subsection exceeds $100, the person
1377      committing the offense commits a felony of the third degree,
1378      punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
1379               (15)        TEXT-TO-911 SERVICE.—Each county shall develop a
1380      countywide implementation plan addressing text-to-911 services
1381      and, by January 1, 2022, enact a system to allow text -to-911
1382      services.
1383               (16)        STATE LAW NOT PREEMPTED.—This section and ss. 365.173
1384      and 365.174 do not alter any state law that otherwise regulates
1385      voice communications services providers.
1386               Section 2.         Section 365.173, Florida Statutes, is amended
1387      to read:
1388               365.173        Emergency Communications Number E911 System Fund.—
1389               (1)         REVENUES.—
1390               (a)         Revenues derived from the fee levied on subscribers
1391      under s. 365.172(8) must be paid by the board into the State
1392      Treasury on or before the 15th day of each month. Such moneys
1393      must be accounted for in a special fund to be designated as the
1394      Emergency Communications Number E911 System Fund, a fund created
1395      in the Division of Telecommunications, or other office as
1396      designated by the Secretary of Management Services.
1397               (b)         Revenues derived from the fee levied on prepaid
1398      wireless service under s. 365.172(9), less the costs of
1399      administering collection of the fee, must be transferred by the
1400      Department of Revenue to the Emergency Communications Number

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          HB 745                                                                                                2023




1401      E911 System Fund on or before the 25th day of each month
1402      following the month of receipt.
1403               (c)         For accounting purposes, the Emergency Communications
1404      Number E911 System Fund must be segregated into three separate
1405      categories:
1406               1.      The wireless category;
1407               2.      The nonwireless category; and
1408               3.      The prepaid wireless category.
1409               (d)         All moneys must be invested by the Chief Financial
1410      Officer pursuant to s. 17.61. All moneys in such fund are to be
1411      expended by the office for the purposes provided in this section
1412      and s. 365.172. These funds are not subject to s. 215.20.
1413               (2)         DISTRIBUTION AND USE OF FUNDS.—As determined by the
1414      board pursuant to s. 365.172(8)(f) s. 365.172(8)(g), and subject
1415      to any modifications approved by the board pursuant to s.
1416      365.172(6)(a)3. or (8)(g) s. 365.172(6)(a)3. or (8)(h), the
1417      moneys in the fund shall be distributed and used only as
1418      follows:
1419               (a)         Ninety-five Seventy-six percent of the moneys in the
1420      wireless category shall be distributed each month to counties,
1421      based on the total number of service identifiers in each county,
1422      and shall be used exclusively for payment of:
1423               1.      Authorized expenditures, as specified in s.
1424      365.172(10).
1425               2.      Costs to comply with the requirements for emergency

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          HB 745                                                                                                2023




1426      communications E911 service contained in the order and any
1427      future rules related to the order.
1428               (b)         Ninety-six percent of the moneys in the nonwireless
1429      category shall be distributed each month to counties based on
1430      the total number of service identifiers in each county and shall
1431      be used exclusively for payment of authorized expenditures, as
1432      specified in s. 365.172(10).
1433               (c)         Sixty-one percent of the moneys in the prepaid
1434      wireless category shall be distributed each month to counties
1435      based on the total amount of fees reported and paid in each
1436      county and shall be used exclusively for payment of authorized
1437      expenditures, as specified in s. 365.172(10). The moneys from
1438      prepaid wireless E911 fees identified as nonspecific in
1439      accordance with s. 365.172(9) shall be distributed as determined
1440      by the Emergency Communications E911 Board.
1441               (d)         Any county that receives funds under paragraphs (a),
1442      (b), and (c) shall establish a fund to be used exclusively for
1443      the receipt and expenditure of the revenues collected under
1444      paragraphs (a), (b), and (c). All fees placed in the fund and
1445      any interest accrued shall be used solely for costs describe d in
1446      subparagraphs (a)1. and 2. and may not be reduced, withheld, or
1447      allocated for other purposes. The money collected and interest
1448      earned in this fund shall be appropriated for these purposes by
1449      the county commissioners and incorporated into the annual co unty
1450      budget. The fund shall be included within the financial audit

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          HB 745                                                                                                2023




1451      performed in accordance with s. 218.39. The financial audit
1452      shall assure that all emergency communications E911 fee
1453      revenues, interest, and emergency communications E911 grant
1454      funding are used for payment of authorized expenditures, as
1455      specified in s. 365.172(10) and as specified in the Emergency
1456      Communications E911 Board grant and special disbursement
1457      programs. The county is responsible for all expenditures of
1458      revenues distributed from the county emergency communications
1459      E911 fund and shall submit the financial audit reports to the
1460      board for review. A county may carry forward up to 30 percent of
1461      the total funds disbursed to the county by the board during a
1462      county fiscal year for expenditures for capital outlay, capital
1463      improvements, equipment replacement, or implementation of a
1464      hosted system if such expenditures are made for the purposes
1465      specified in subparagraphs (a)1. and 2.; however, the 30 -percent
1466      limitation does not apply to funds disbursed to a county under
1467      s. 365.172(6)(a)3., and a county may carry forward any
1468      percentage of the funds, except that any grant prov ided shall
1469      continue to be subject to any condition imposed by the board. In
1470      order to prevent an excess recovery of costs incurred in
1471      providing emergency communication E911 service, a county that
1472      receives funds greater than the permissible emergency
1473      communication E911 costs described in s. 365.172(10), including
1474      the 30-percent carryforward allowance, must return the excess
1475      funds to the E911 board to be allocated under s. 365.172(6)(a).

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          HB 745                                                                                                2023




1476               (e)         Twenty percent of the moneys in the wireless category
1477      shall be distributed to wireless providers in response to sworn
1478      invoices submitted to the board by wireless providers to
1479      reimburse such wireless providers for the actual costs incurred
1480      to provide 911 or E911 service, including the costs of complying
1481      with the order. Such costs include costs and expenses incurred
1482      by wireless providers to design, purchase, lease, program,
1483      install, test, upgrade, operate, and maintain all necessary
1484      data, hardware, and software required to provide E911 service.
1485      Each wireless provider shall submit to the board, by August 1 of
1486      each year, a detailed estimate of the capital and operating
1487      expenses for which it anticipates that it will seek
1488      reimbursement under this paragraph during the ensuing state
1489      fiscal year. In order to be eligible for recovery during any
1490      ensuing state fiscal year, a wireless provider must submit all
1491      sworn invoices for allowable purchases made within the previous
1492      calendar year no later than March 31 of the fiscal year. By
1493      September 15 of each year, the board shall submit to the
1494      Legislature its legislative budget request for funds to be
1495      allocated to wireless providers under this paragraph during the
1496      ensuing state fiscal year. The budget request shall be based on
1497      the information submitted by the wireless providers and
1498      estimated surcharge revenues. Distributions of moneys in the
1499      fund by the board to wireless providers must be fair and
1500      nondiscriminatory. If the total amount of moneys requested by

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          HB 745                                                                                                2023




1501      wireless providers pursuant to invoices submitted to the board
1502      and approved for payment exceeds the amount in the fund in any
1503      month, wireless providers that have invoices approved for
1504      payment shall receive a pro rata share of moneys in the fund and
1505      the balance of the payments shall be carried over to the
1506      following month or months until all of the approved payments are
1507      made. The board may adopt rules necessary to address the manner
1508      in which pro rata distributions are made when the total amount
1509      of funds requested by wireless providers pursuant to invoices
1510      submitted to the board exceeds the total amount of moneys on
1511      deposit in the fund.
1512               (e)(f)      One percent of the moneys in each category of the
1513      fund shall be retained by the board to be applied to costs and
1514      expenses incurred for the purposes of managing, administering,
1515      and overseeing the receipts and disbursements from the fund and
1516      other activities as defined in s. 365.172(6). Any funds retained
1517      for such purposes in a calendar year which are not applied to
1518      such costs and expenses by March 31 of the following year shall
1519      be redistributed as determined by the board.
1520               (f)(g)      Three percent of the moneys in each category of the
1521      fund and an additional 1 percent of the moneys collected in the
1522      wireless category shall be used to make monthly distributions to
1523      rural counties for the purpose of providing facilities and
1524      network and service enhancements and assistance for the
1525      emergency communications 911 or E911 systems operated by rural

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          HB 745                                                                                                2023




1526      counties and for the provision of grants by the office to rural
1527      counties for upgrading and replacing emergency communications
1528      E911 systems.
1529               (g)(h)        Thirty-five percent of the moneys in the prepaid
1530      wireless category shall be retained by the board to provide
1531      state emergency communications E911 grants to be awarded in
1532      accordance with the following order of priority:
1533               1.      For all large, medium, and rural counties to upgrade or
1534      replace emergency communications E911 systems.
1535               2.      For all large, medium, and rural counties to develop
1536      and maintain statewide 911 routing, geographic, and management
1537      information systems.
1538               3.      For all large, medium, and rural counties to develop
1539      and maintain next-generation 911 services and equipment.
1540               (h)(i)        If the wireless category has funds remaining in it
1541      on December 31 after disbursements have been made during the
1542      calendar year immediately prior to December 31, the board may
1543      disburse the excess funds in the wireless category in accordance
1544      with s. 365.172(6)(a)3.b.
1545               (3)         The Legislature recognizes that the fee authorized
1546      under s. 365.172 may not necessarily provide the total funding
1547      required for establishing or providing the emergency
1548      communications E911 service. It is the intent of the Legislature
1549      that all revenue from the fee be used as specified in subsection
1550      (2).

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          HB 745                                                                                                2023




1551               Section 3.          Subsection (1) of section 365.177, Florida
1552      Statutes, is amended to read:
1553               365.177        Transfer of E911 calls between systems.—
1554               (1)         The office shall develop a plan by December 30, 2023
1555      February 1, 2020, to upgrade 911 public safety answering points
1556      within the state to allow the transfer of an emergency call from
1557      one local, multijurisdictional, or regional E911 system to
1558      another local, multijurisdictional, or regional E911 system in
1559      the state. Such transfer should include voice, text message,
1560      image, video, caller identification information, location
1561      information, and additional standards-based 911 call
1562      information.
1563               Section 4.          Subsection (10) of section 212.05965, Florida
1564      Statutes, is amended to read:
1565               212.05965          Taxation of marketplace sales.—
1566               (10)        Notwithstanding any other law, the marketplace
1567      provider is also responsible for collecting and remitting any
1568      prepaid wireless public safety emergency communications systems
1569      E911 fee under s. 365.172, waste tire fee under s. 403.718, and
1570      lead-acid battery fee under s. 403.7185 at the time of sale for
1571      taxable retail sales made through its marketplace.
1572               Section 5.          Section 365.171, Florida Statutes, is amended
1573      to read:
1574               365.171        Emergency communications number E911 state plan.—
1575               (1)         SHORT TITLE.—This section may be cited as the "Florida

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          HB 745                                                                                                2023




1576      Emergency Communications Number E911 State Plan Act."
1577               (2)         LEGISLATIVE INTENT.—It is the intent of the
1578      Legislature that the communications number "911" be the
1579      designated emergency communications number. A public safety
1580      agency may not advertise or otherwise promote the use of any
1581      communications number for emergency response services other than
1582      "911." It is further the intent of the Legislature to implement
1583      and continually update a cohesive statewide emergency
1584      communications number "E911" plan for enhanced 911 services
1585      which will provide citizens with rapid direct access to public
1586      safety agencies by accessing "911" with the objective of
1587      reducing the response time to situations requiring law
1588      enforcement, fire, medical, rescue, and other emergency
1589      services.
1590               (3)         DEFINITIONS.—As used in this section, the term:
1591               (a)         "Office" means the Division of Telecommunications
1592      within the Department of Management Services, as designated by
1593      the secretary of the department.
1594               (b)         "Local government" means any city, county, or
1595      political subdivision of the state and its agencies.
1596               (c)         "Public agency" means the state and any city, county,
1597      city and county, municipal corporation, chartered organization,
1598      public district, or public authority located in whole or in part
1599      within this state which provides, or has authority to provide,
1600      firefighting, law enforcement, ambulance, medical, or other

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          HB 745                                                                                                2023




1601      emergency services.
1602               (d)         "Public safety agency" means a functional division of
1603      a public agency which provides firefighting, law enforcement,
1604      medical, or other emergency services.
1605               (4)         STATE PLAN.—The office shall develop, maintain, and
1606      implement appropriate modifications for a statewide emergency
1607      communications E911 system plan. The plan shall provide for:
1608               (a)         The public agency emergency communications
1609      requirements for each entity of local government in the state.
1610               (b)         A system to meet specific local government
1611      requirements. Such system shall include law enforcement,
1612      firefighting, and emergency medical services and may include
1613      other emergency services such as poison control, suicide
1614      prevention, and emergency management services.
1615               (c)         Identification of the mutual aid agreements necessary
1616      to obtain an effective emergency communications systems E911
1617      system.
1618               (d)         A funding provision that identifies the cost necessary
1619      to implement the emergency communications E911 system.
1620
1621      The office shall be responsible for the implementation and
1622      coordination of such plan. The office shall adopt any necessary
1623      rules and schedules related to public agencies for implementing
1624      and coordinating the plan, pursuant to chapter 120.
1625               (5)         SYSTEM DIRECTOR.—The secretary of the department or

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          HB 745                                                                                                2023




1626      his or her designee is designated as the director of the
1627      statewide emergency communications number E911 system and, for
1628      the purpose of carrying out the provisions of this section, is
1629      authorized to coordinate the activities of the system with
1630      state, county, local, and private agencies. The director in
1631      implementing the system shall consult, cooperate, and coordinate
1632      with local law enforcement agencies.
1633               (6)         REGIONAL SYSTEMS.—This section does not prohibit or
1634      discourage the formation of multijurisdictional or regional
1635      systems; and any system established pursuant to this section may
1636      include the jurisdiction, or any portion thereof, of more than
1637      one public agency. It is the intent of the Legislature that
1638      emergency communications services E911 service be available
1639      throughout the state. Expenditure by counties of the E911 fee
1640      authorized and imposed under s. 365.172 should support this
1641      intent to the greatest extent feasible within the context of
1642      local service needs and fiscal capability. This section does not
1643      prohibit two or more counties from establishing a combined
1644      emergency E911 communications service by an interlocal agreement
1645      and using the fees authorized and imposed by s. 365.172 for such
1646      combined E911 service.
1647               (7)         TELECOMMUNICATIONS INDUSTRY COORDINATION.—The office
1648      shall coordinate with the Florida Public Service Commission
1649      which shall encourage the Florida telecommunications industry to
1650      activate facility modification plans for timely emergency

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          HB 745                                                                                                2023




1651      communications services E911 implementation.
1652               (8)         COIN TELEPHONES.—The Florida Public Service Commission
1653      shall establish rules to be followed by the telecommunications
1654      companies in this state designed toward encouraging the
1655      provision of coin-free dialing of "911" calls wherever
1656      economically practicable and in the public interest.
1657               (9)         SYSTEM APPROVAL.—No emergency communications number
1658      E911 system shall be established and no present system shall be
1659      expanded without prior approval of the office.
1660               (10)        COMPLIANCE.—All public agencies shall assist the
1661      office in their efforts to carry out the intent of this section,
1662      and such agencies shall comply with the developed plan.
1663               (11)        FEDERAL ASSISTANCE.—The secretary of the department
1664      or his or her designee may apply for and accept federal funding
1665      assistance in the development and implementation of a statewide
1666      emergency communications number E911 system.
1667               (12)        CONFIDENTIALITY OF RECORDS.—
1668               (a)         Any record, recording, or information, or portions
1669      thereof, obtained by a public agency or a public safety agency
1670      for the purpose of providing services in an emergency and which
1671      reveals the name, address, telephone number, or personal
1672      information about, or information which may identify any person
1673      requesting emergency service or reporting an emergency by
1674      accessing an emergency communications E911 system is
1675      confidential and exempt from the provisions of s. 119.07(1) and

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          HB 745                                                                                                2023




1676      s. 24(a), Art. I of the State Constitution, except that such
1677      record or information may be disclosed to a public safety
1678      agency. The exemption applies only to the name, address,
1679      telephone number or personal information about, or infor mation
1680      which may identify any person requesting emergency services or
1681      reporting an emergency while such information is in the custody
1682      of the public agency or public safety agency providing emergency
1683      services. A telecommunications company or commercial mobile
1684      radio service provider shall not be liable for damages to any
1685      person resulting from or in connection with such telephone
1686      company's or commercial mobile radio service provider's
1687      provision of any lawful assistance to any investigative or law
1688      enforcement officer of the State of Florida or political
1689      subdivisions thereof, of the United States, or of any other
1690      state or political subdivision thereof, in connection with any
1691      lawful investigation or other law enforcement activity by such
1692      law enforcement officer unless the telecommunications company or
1693      commercial mobile radio service provider acted in a wanton and
1694      willful manner.
1695               (b)         Notwithstanding paragraph (a), a 911 public safety
1696      telecommunicator, as defined in s. 401.465, may contact any
1697      private person or entity that owns an automated external
1698      defibrillator who has notified the local emergency medical
1699      services medical director or public safety answering point of
1700      such ownership if a confirmed coronary emergency call is taking

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          HB 745                                                                                                2023




1701      place and the location of the coronary emergency is within a
1702      reasonable distance from the location of the defibrillator, and
1703      may provide the location of the coronary emergency to that
1704      person or entity.
1705               Section 6.         Paragraph (b) of subsection (2) of section
1706      365.174, Florida Statutes, is amended to read:
1707               365.174        Proprietary confidential business information. —
1708               (2)
1709               (b)         The Department of Revenue may provide information
1710      relative to s. 365.172(9) to the Secretary of Management
1711      Services, or his or her authorized agent, or to the Emergency
1712      Communications E911 Board established in s. 365.172(5) for use
1713      in the conduct of the official business of the Department of
1714      Management Services or the Emergency Communications E911 Board.
1715               Section 7.         This act shall take effect July 1, 2023.




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HB 7001
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 7001       PCB EEG 23-01 OGSR/Nationwide Public Safety Broadband Network
SPONSOR(S): Ethics, Elections & Open Government Subcommittee, Yarkosky
TIED BILLS:       IDEN./SIM. BILLS: SB 7006

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    Orig. Comm.: Ethics, Elections & Open                       18 Y, 0 N               Villa              Toliver
       Government Subcommittee

    1) Energy, Communications & Cybersecurity                                           Mortellaro         Keating
       Subcommittee

    2) State Affairs Committee


                                                     SUMMARY ANALYSIS
The Open Government Sunset Review Act requires the Legislature to review each public record
exemption and each public meeting exemption five years after enactment. If the Legislature does not
reenact an exemption, it automatically repeals on October 2nd of the fifth year after enactment.

In 2012, Congress created the Nationwide Public Safety Broadband Network (FirstNet) overseen by a
newly created First Responder Network Authority (FirstNet Authority), an independent agency
established within the U.S. Department of Commerce. FirstNet was one of the recommendations of
the National Commission on Terrorist Attacks for the United States (also known as the 9/11
Commission) to prevent incidents of communication disruption that occurred between first responders
during the 9/11 terrorist attacks. In 2017, the U.S. Department of Commerce announced that the
FirstNet Authority had entered into a 25-year public-private partnership with AT&T to build the first
nationwide wireless broadband network dedicated to America’s first responders. Today, FirstNet is
operational and delivers specialized features to first responders – such as priority access,
preemption, more network capacity, and a resilient, hardened connection.

The law provides a public record exemption for information held by an agency relating to FirstNet if
released information would reveal:
     The design, development, construction, deployment, and operation of network facilities;
     Network coverage, including geographical maps indicating actual or proposed locations of
       network infrastructure or facilities;
     The features, functions, and capabilities of network infrastructure and facilities;
     The features, functions, and capabilities of network services provided to first responders and
       other network users;
     The design, features, functions, and capabilities of network devices provided to first
       responders and other network users; or
     Security, including cybersecurity, of the design, construction, and operation of the network and
       associated services and products.

The bill saves from repeal this public record exemption, which will repeal on October 2, 2023, if this
bill does not become law.

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


                                                        FULL ANALYSIS


This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h7001.ECC
DATE: 3/3/2023
                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:

         Open Government Sunset Review Act
         The Open Government Sunset Review Act (Act) 1 sets forth a legislative review process for newly
         created or substantially amended public record or public meeting exemptions. It requires an automatic
         repeal of the exemption on October 2nd of the fifth year after creation or substantial amendment,
         unless the Legislature reenacts the exemption.2

         The Act provides that a public record or public meeting exemption may be created or maintained only if
         it serves an identifiable public purpose. In addition, it may be no broader than is necessary to meet one
         of the following purposes:
               Allow the state or its political subdivisions to effectively and efficiently administer a
                 governmental program, which administration would be significantly impaired without the
                 exemption.
               Protect sensitive personal information that, if released, would be defamatory or would
                 jeopardize an individual’s safety; however, only the identity of an individual may be exempted
                 under this provision.
               Protect trade or business secrets.3

         If, and only if, in reenacting an exemption that will repeal, the exemption is expanded (essentially
         creating a new exemption), then a public necessity statement and a two-thirds vote for passage are
         required.4 If the exemption is reenacted with grammatical or stylistic changes that do not expand the
         exemption, if the exemption is narrowed, or if an exception to the exemption is created, then a public
         necessity statement and a two-thirds vote for passage are not required.

         Nationwide Public Safety Broadband Network
         Following the 9/11 terrorist attacks, Congress created the National Commission on Terrorist Attacks
         upon the United States (9/11 Commission) and tasked that body with investigating and reporting to the
         President and Congress its findings, conclusions, and recommendations of corrective measures that
         can be taken to prevent acts of terrorism.5 One of the 9/11 Commission’s recommendations to prevent
         the incidents of communication disruption that occurred between first responders during the terrorist
         attacks was to “support pending legislation which provides for the expedited and increased assignment
         of radio spectrum for public safety purposes.” 6 In 2012, Congress created the Nationwide Public Safety
         Broadband Network (FirstNet) overseen by a newly-created First Responder Network Authority
         (FirstNet Authority), an independent agency established within the U.S. Department of Commerce. 7
         In 2017, the U.S. Department of Commerce announced that the FirstNet Authority had entered into a
         25-year public-private partnership with AT&T to “build the first nationwide wireless broadband network
         dedicated to America’s first responders.” 8


         FirstNet’s enabling legislation requires each Governor to determine whether to:
              Participate in the deployment of FirstNet as proposed by the FirstNet Authority’s state plan; or
              Conduct its own deployment of a radio access network that is interoperable with FirstNet. 9


1 Section 119.15,   F.S.
2 Section 119.15(3),    F.S.
3 Section 119.15(6)(b), F.S.
4 Article I, s. 24(c), FLA. CONST .
5 Intelligence Authorization Act, Pub. Law No. 107-306 (2002).
6 9/11 Commission, The 9/11 Commission Report 396-397 (2004), available at

https://govinfo.library.unt.edu/911/report/911Report.pdf (last visited January 17, 2023).
7 Middle Class Tax Relief and Job Creation Act of 2012, Pub. Law No. 112-96 (2012).
8 FirstNet Partners with AT&T to Build $46.5 Billion Wireless Broadband Network for America’s First Responders, U.S. Department

of Commerce, available at https://2017-2021.commerce.gov/news/press -releases/2017/03/firstnet-partners-att-build-465-billion.
9 47 U.S.C. s. 1442(e)(2).
STORAGE NAME: h7001.ECC                                                                                                 PAGE: 2
DATE: 3/3/2023
         All 50 states, five U.S. territories, and Washington, D.C., have opted to participate in FirstNet, meaning
         each has accepted the individual state plan proposed by the FirstNet Authority detailing how FirstNet
         will be deployed in their state/territory.10 Today, FirstNet is operational and delivers specialized features
         to first responders that are not available to others on wireless networks today, such as priority access,
         preemption, more network capacity, and a resilient, hardened connection. 11

         Public Record Exemption under Review
         In 2018, the Legislature created a public record exemption for specified information held by an
         agency12 relating to FirstNet. The information is kept confidential and exempt 13 from public records
         requirements if release of the information would reveal any of the following:
              The design, development, construction, deployment, and operation of network facilities;
              Network coverage, including geographical maps indicating actual or proposed locations of
                network infrastructure or facilities;
              The features, functions, and capabilities of network infrastructure and facilities;
              The features, functions, and capabilities of network services provided to first responders 14 and
                other network users;
              The design, features, functions, and capabilities of network devices provided to first responders
                and other network users; or
              Security, including cybersecurity, of the design, construction, and operation of the network and
                associated services and products.15

         The 2018 public necessity statement16 for the exemption provides that:

                  [The exempt] information contains security information and proprietary business
                  information of communications services providers. The disclosure of sensitive
                  information relating to the Nationwide Public Safety Broadband Network could
                  result in identification of vulnerabilities in such network and allow a security breach
                  that could damage the network or disrupt the network's safe and reliable operation,
                  adversely impacting the public health and safety of the state. Disclosure of such
                  information would adversely affect the business interests and compromise the
                  network security of such providers and their networks.17

         Pursuant to the Open Government Sunset Review Act, the exemption will repeal on October 2, 2023,
         unless reenacted by the Legislature.

10 FirstNet Authority, The Network, https://www.firstnet.gov/network (last visited January 9, 2023).
11 FirstNet Authority, Top 10 Frequently Asked Questions,

https://www.firstnet.gov/system/tdf/Top%2010%20FAQs%202022.pdf?file=1&type=node&id=679&force=0 (last visited January 9,
2023).
12 “Agency” means any state, county, district, authority, or municipal officer, department, division, board, bureau, commission, or

other separate unit of government created or established by law including, the Commission on Ethics, the Public Service Commission,
and the Office of Public Counsel, and any other public or private agency, person, partnership, corporation, or business entit y acting on
behalf of any public agency. Section 119.011(2), F.S.
13 There is a difference between records the Legislature designates exempt from public record requirements and those the Legisla ture

deems confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain circu mstances.
See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review denied 892 So.2d 1015 (Fla. 2004); City of
Rivera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA 1994); Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA
1991). If the Legislature designates a record as confidential and exempt from public disclosure, such record may not be relea sed by the
custodian of public records to anyone other than the persons or entities specifically designated in statute. See Op. Att’y Gen. Fla. 04-
09 (2004).
14 “First responder” means a law enforcement officer as defined in s. 943.10, F.S., a firefighter as defined in s. 633.102, F.S., or an

emergency medical technician or paramedic as defined in s. 401.23, F.S., employed by s tate or local government. A volunteer law
enforcement officer, firefighter, or emergency medical technician or paramedic engaged by the state or a local government is also
considered a first responder of the state or local government. Section 112.1815(1), F.S.
15 Section 119.071(3)(d), F.S.
16 Article I, s. 24(c), FLA. CONST ., requires each public record exemption state with specificity the public necessity justifying the

exemption.
17 Chapter 2018-60, L.O.F.
STORAGE NAME: h7001.ECC                                                                                                         PAGE: 3
DATE: 3/3/2023
        During the 2022 interim, subcommittee staff sent questionnaires to Florida Sheriffs and Police
        departments. The respondents indicated they had not had any issues interpreting or applying the
        exemption and that they were unaware of the existence of any litigation concerning the exemption.
        Further, the respondents indicated they had not received any complaints concerning the exemption. As
        such, the vast majority of respondents recommended the exemption be reenacted as is. 18

        Effect of the Bill

        The bill removes the scheduled repeal date of the public record exemption, thereby maintaining the
        public record exemption for certain information relating to FirstNet that is held by an agency.

    B. SECTION DIRECTORY:
        Section 1:       amends s. 119.071, F.S., relating to general exemptions from inspection or copying of
                         public records.

        Section 2:       provides an effective date of October 1, 2023.

                           II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
            None.

        2. Expenditures:
            None.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
            None.

        2. Expenditures:
            None.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        None.

    D. FISCAL COMMENTS:
        None.


                                                     III. COMMENTS

    A. CONSTITUTIONAL ISSUES:

        1. Applicability of Municipality/County Mandates Provision:
           Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
           action requiring the expenditure of funds; reduce the authority that counties and municipalities have

18 Open Government Sunset Review Questionnaire, Nationwide Public Safety Broadband Network, responses on file with the Ethics,

Elections & Open Government Subcommittee.
STORAGE NAME: h7001.ECC                                                                                                 PAGE: 4
DATE: 3/3/2023
          to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties and
          municipalities.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       The bill does not require rulemaking nor confer or alter an agency’s rulemaking authority.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
       None.




STORAGE NAME: h7001.ECC                                                                                 PAGE: 5
DATE: 3/3/2023
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           HB 7001                                                                                               2023




    1                                          A bill to be entitled
    2                An act relating to a review under the Open Government
    3                Sunset Review Act; amending s. 119.071, F.S., which
    4                provides an exemption from public record requirements
    5                for certain information relating to the Nationwide
    6                Public Safety Broadband Network held by an agency;
    7                removing the scheduled repeal of the exemption;
    8                providing an effective date.
    9
10         Be It Enacted by the Legislature of the State of Florida:
11
12                   Section 1.        Paragraph (d) of subsection (3) of section
13         119.071, Florida Statutes, is amended to read:
14                   119.071       General exemptions from inspection or copying of
15         public records.—
16                   (3)        SECURITY AND FIRESAFETY.—
17                   (d)1.       Information relating to the Nationwide Public Safety
18         Broadband Network established pursuant to 47 U.S.C. ss. 1401 et
19         seq., held by an agency is confidential and exempt from s.
20         119.07(1) and s. 24(a), Art. I of the State Constitution if
21         release of such information would reveal:
22                   1.a.       The design, development, construction, deployment,
23         and operation of network facilities;
24                   2.b.       Network coverage, including geographical maps
25         indicating actual or proposed locations of network

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        HB 7001                                                                                               2023




26      infrastructure or facilities;
27                3.c.       The features, functions, and capabilities of network
28      infrastructure and facilities;
29                4.d.       The features, functions, and capabilities of network
30      services provided to first responders, as defined in s.
31      112.1815, and other network users;
32                5.e.       The design, features, functions, and capabilities of
33      network devices provided to first responders and other network
34      users; or
35                6.f.       Security, including cybersecurity, of the design,
36      construction, and operation of the network and associated
37      services and products.
38                2.     This paragraph is subject to the Open Governmen t Sunset
39      Review Act in accordance with s. 119.15 and shall stand repealed
40      on October 2, 2023, unless reviewed and saved from repeal
41      through reenactment by the Legislature.
42                Section 2.       This act shall take effect October 1, 2023.




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