Energy, Communications & Cybersecurity Subcommittee Meeting Packet, March 13, 2023
Summary
Meeting packet for the Energy, Communications & Cybersecurity Subcommittee of the Florida House of Representatives Commerce Committee, Monday, March 13, 2023, 3:00 pm – 6:00 pm, Reed Hall (102 HOB). The meeting agenda lists HB 1151 Financial Improvements to Real Property by Amesty and HB 1281 Preemption Over Utility Service Restrictions by Buchanan. The staff analysis of HB 1151 states that the bill makes several changes to Florida’s PACE law, including expanding the types of improvements eligible for PACE financing and authorizing progress payments for commercial property. It gives the bill an effective date of July 1, 2023.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Energy, Communications & Cybersecurity Subcommittee Meeting Packet, March 13, 2023.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-03-13-3226-energy-communications-cybersecurity-subcommittee-meeti-2da3cb7963/
, SHA-256 028996cd3ca773893512023b179d6bf1b475ee9abe870aa3ff3fbe66e35f7523.Full text
Energy, Communications &
Cybersecurity Subcommittee
Monday, March 13, 2023
3:00 pm - 6:00 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
Monday, March 13, 2023
3:00 pm – 6:00 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 1151 Financial Improvements to Real Property by Amesty
• HB 1281 Preemption Over Utility Service Restrictions by Buchanan
V. Closing Remarks
VI. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
HB 1151
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1151 Financial Improvements to Real Property
SPONSOR(S): Amesty
TIED BILLS: IDEN./SIM. BILLS: SB 810
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:
Expanding the types of improvements eligible for PACE financing;
Modifying the requirements for commercial property to be eligible for PACE financing, including the
addition of a requirement for mortgage holder consent;
Providing that a PACE financing agreement on commercial property may be executed before a
certificate of occupancy or similar evidence of substantial completion of new construction or
improvement is issued;
Authorizing progress payments, or payments made before completion, for commercial property;
Limiting fees imposed on PACE assessments on commercial property; and
Authorizing the use of PACE financing on government property leased for commercial uses.
The bill provides for prospective application only.
The bill does not appear to impact state revenues or state or local expenditures. The bill may have an
indeterminate impact on local government revenues. See Fiscal Analysis & Economic Impact Statement.
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: h1151.ECC
DATE: 3/11/2023
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. Miss ouri 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 distric t 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: h1151.ECC PAGE: 2
DATE: 3/11/2023
In 2012, the Legislature expanded the definition of “local government” to allow a partnership of local
governments formed pursuant to the Florida Interlocal Cooperation Act 11 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.
Rahill administers a commercial PACE program for the Florida Resiliency and Energy 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: h1151.ECC PAGE: 3
DATE: 3/11/2023
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
Costs incurred by a local government are collected as part of a PACE assessment. 20 Further, PACE
assessments must be collected pursuant to s. 197.3632, F.S., which provides in part that tax collectors
are entitled to receive a commission, on behalf of each special assessment district, of the actual costs
of collection, not to exceed 2 percent, on the amount of special assessments collected and remitted.21
Federal Housing Finance Agency and Super-Priority Liens
In 2010, and again in 2014,22 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. 23
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.24
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 S. 163.08(4), F.S.
21 Id.; ss. 197.3632(8)(c) and 192.091(2)(b)2., F.S. It is not clear if the costs incurred by a local government include the commissions
that tax collectors are authorized to receive.
22 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).
23 “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 mortgage loan used to remodel the home. The earliest an d 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 t ax 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).
24 FHFA Statement on Certain Energy Retrofit Loan Programs, supra, note 20.
STORAGE NAME: h1151.ECC PAGE: 4
DATE: 3/11/2023
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. 25
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 asses sments.26
Some residential PACE programs are now operating with loan loss reserve funds, appropriate
disclosures, or other protections meant to address FHFA's concerns. 27 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. 28
Consumer Protection
Consumer issues have surrounded the PACE programs from their inception. 29 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. 30 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.31
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.32
The United States Department of Energy maintains “best practice guidelines” for residential PACE
financing programs, which includes measures relating to:
25 FHFA Statement on Certain Energy Retrofit Loan Programs, supra, note 20.
26 FHFA, Property Assessed Clean Energy (PACE) Program, 85 Fed. Reg. 11,2738 (Jan. 16, 2020).
27 Commercial PACE programs were not directly affected by FHFA’s actions because Fannie Mae and Freddie Mac do not underwrite
commercial mortgages.
28 NCSL, PACE Financing https://www.ncsl.org/research/energy/pace-financing.aspx (last visited Mar. 7, 2021).
29 “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 government 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 goal 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 fo reclosure.”
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).
30 FHFA, Property Assessed Clean Energy (PACE) Program, 85 Fed. Reg. 11,2738 (Jan. 16, 2020).
31 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).
32 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: h1151.ECC PAGE: 5
DATE: 3/11/2023
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;
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.33
Some local governments in Florida have implemented more stringent consumer protections than those
required by Florida law.34
Effect of the Bill
Uses for PACE Financing
The bill expands the types of improvements eligible for PACE financing to add the following:
Energy conservation and efficiency improvements necessary to achieve a sustainable building
rating or compliance with a national model green building code.
Resiliency improvements, including creation of sea walls, creation or improvement of
stormwater, flood, and wastewater management, and any other improvements necessary to
achieve a sustainable building rating or compliance with a national model resiliency standard.
The bill also authorizes PACE financing to be used as a refinance tool. Further, the bill authorizes
PACE financing to be used for wind-resistant improvements on new construction for property other than
residential property.
Eligibility Requirements for PACE Financing
The bill modifies the existing eligibility requirements for commercial property35 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 such taxes and assessments
are current.
Involuntary liens on a property do not preclude the use of PACE financing if not greater than
$10,000.
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.
Further, the bill requires that, prior to entering into a PACE financing agreement with a commercial
property owner, the local government must have the written consent of the current holders or servicers
33 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).
34 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).
35 The bill defines “commercial property” to mean real property not defined as residential property which will be or has been improved
by a qualifying improvement, including, but not limited to, the following: a multifamily residential property composed of five or more
dwelling units; a commercial real property; an industrial building or property; an agricultural property; a nonprofit-owned property; a
long-term care facility, including nursing homes and assisted living facilities; or
a government commercial property.
STORAGE NAME: h1151.ECC PAGE: 6
DATE: 3/11/2023
of any mortgage that encumbers or is otherwise secured by the property (or that will be secured by the
property at the time the PACE financing agreement is executed by the local government).
The bill does not change the eligibility requirements for residential property. 36 The bill does not require
mortgage holder consent for residential PACE financing.
Timing and Fees for Commercial PACE Financing
For qualifying improvements to commercial property, the bill provides that a PACE financing agreement
may be executed before a certificate of occupancy or similar evidence of substantial completion of new
construction or improvement is issued. Further, the bill provides that progress payments, or payments
made before completion, are allowed for commercial property if the property owner, upon request for a
final progress payment, subsequently provides written verification that the qualifying improvements are
completed and operating as intended.
The bill provides that a PACE assessment on commercial property is subject to a maxim um annual fee
of 1 percent of the annual assessment collected or $5,000, whichever is less.
PACE Financing on Government Commercial Property
The bill defines “government commercial property” to mean real property owned by a local government
and leased to a nongovernmental lessee37 to be used as commercial property. The bill provides that a
PACE financing agreement for government commercial property must be executed by the
nongovernmental lessee with the written consent of the governmental lessor, with evidence of this
consent provided to the local government operating the PACE program. The PACE financing
agreement with the nongovernmental lessee must provide that the lessee is the only party obligated to
pay the PACE assessment.
The bill specifies that a delinquent assessment under a PACE financing agreement with a
nongovernmental lessee of government commercial property must be enforced in the same manner as
other taxes and assessments on such lessees.
Other Provisions
The bill provides that it is prospective only and does not affect or amend any existing PACE
assessment or interlocal agreement between local governments.
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:
36 The bill defines “res idential property” to mean a residential real property of four or fewer dwelling units which will be or has been
improved by a qualifying improvement.
37 The bill defines “nongovernmental lessee” to mean a person or an entity other than a local government which leases
government commercial property.
STORAGE NAME: h1151.ECC PAGE: 7
DATE: 3/11/2023
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
Indeterminate. The bill limits annual fees for PACE assessments on commercial property to the
lesser of 1 percent or $5,000. Current law allows local governments to collect their costs to
administer PACE financing as part of the PACE assessment. It is not clear whether these costs
include the commission that tax collectors are entitled to receive by law to cover the actual costs of
collection, not to exceed 2 percent, on the amount of special assessments collected and remitted.
Depending on the rate or amount of fees actually collected under current law for PACE
assessments on commercial property, the bill may impact local government revenues.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
By expanding eligible uses for PACE financing, easing terms for commercial property PACE financing,
and authorizing PACE financing for government commercial property, the bill may result in expanded
use of PACE financing by residential, commercial, and government commercial property owners. In
turn, private PACE providers may earn additional revenues on PACE loans. However, as a condition of
PACE financing for commercial property, the bill requires consent of the holders or servicers or any
mortgage that encumbers the property. This provision may moderate growth in PACE financing for
commercial property.
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.
C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill expands the types of projects on residential real property that are eligible for PACE financing
but does not address consumer issues that have surrounded the use of PACE financing for residential
real property.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h1151.ECC PAGE: 8
DATE: 3/11/2023
STORAGE NAME: h1151.ECC PAGE: 9
DATE: 3/11/2023
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
1 A bill to be entitled
2 An act relating to financing improvements to real
3 property; amending s. 163.08, F.S.; revising
4 legislative intent; defining and revising terms;
5 authorizing a residential or commercial property owner
6 to apply to a local government for funding to finance
7 an improvement and to enter into a financing agreement
8 with the local government; providing that a non-ad
9 valorem assessment on certain commercial property is
10 subject to a certain fee; requiring a delinquent
11 assessment with a nongovernmental lessee to be
12 enforced in the manner provided by law; specifying
13 requirements of the financing agreement for government
14 commercial property; specifying the determinations a
15 local government must make before entering into a
16 financing agreement for commercial and residential
17 properties; authorizing a financing agreement to be
18 executed for commercial property under certain
19 circumstances; restricting what improvements may be
20 covered in certain agreements between local
21 governments and residential property owners; limiting
22 the amount of non-ad valorem assessment for certain
23 residential property; providing an exception relating
24 to non-ad valorem assessment for residential property
25 that is supported by an energy audit; specifying
Page 1 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
26 requirements for a local government before entering
27 into a financing agreement; revising notice
28 requirements regarding an owner's intent to enter into
29 a financing agreement; revising the seller's
30 disclosure statement for certain properties offered
31 for sale; providing construction; providing an
32 effective date.
33
34 Be It Enacted by the Legislature of the State of Florida:
35
36 Section 1. Paragraph (b) of subsection (1) and subsections
37 (2), (4), (8), (9), (10), (12), (13), and (14) of section
38 163.08, Florida Statutes, are amended, and subsection (17) is
39 added to that section, to read:
40 163.08 Supplemental authority for improvements to real
41 property.—
42 (1)
43 (b) The Legislature finds that all energy-consuming-
44 improved properties that are not using energy conservation
45 strategies contribute to the burden affecting all improved
46 property resulting from fossil fuel energy production. Improved
47 property that has been retrofitted with energy-related
48 qualifying improvements receives the special benefit of
49 alleviating the property's burden from energy consumption. All
50 improved properties not protected from wind damage by wind
Page 2 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
51 resistance qualifying improvements contribute to the burden
52 affecting all improved property resulting from potential wind
53 damage. Improved property that has been retrofitted with
54 resiliency wind resistance qualifying improvements receives the
55 special benefit of reducing the property's burden from potential
56 wind damage. Further, the installation and operation of
57 qualifying improvements not only benefit the affected properties
58 for which the improvements are made, but also assist in
59 fulfilling the goals of the state's energy and hurricane
60 mitigation policies. In order to make qualifying improvements
61 more affordable and assist property owners who wish to undertake
62 such improvements, the Legislature finds that there is a
63 compelling state interest in enabling property owners to
64 voluntarily finance such improvements with local government
65 assistance.
66 (2) As used in this section, the term:
67 (a) "Commercial property" means real property not defined
68 as residential property which will be or has been improved by a
69 qualifying improvement, including, but not limited to, the
70 following:
71 1. A multifamily residential property composed of five or
72 more dwelling units;
73 2. A commercial real property;
74 3. An industrial building or property;
75 4. An agricultural property;
Page 3 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
76 5. A nonprofit-owned property;
77 6. A long-term care facility, including nursing homes and
78 assisted living facilities; or
79 7. A government commercial property.
80 (b) "Government commercial property" means real property
81 owned by a local government and leased to a nongovernmental
82 lessee where the usage by the lessee meets the definition of
83 commercial property.
84 (c) "Local government" means a county, a municipality, a
85 dependent special district as defined in s. 189.012, or a
86 separate legal entity created pursuant to s. 163.01(7).
87 (d) "Nongovernmental lessee" means a person or an entity
88 other than a local government which leases government commercial
89 property.
90 (e)(b) "Qualifying improvement" includes any:
91 1. Energy conservation and efficiency improvement, which
92 is a measure to reduce consumption through conservation or a
93 more efficient use of electricity, natural gas, propane, or
94 other forms of energy on the property, including, but not
95 limited to, air sealing; installation of insulation;
96 installation of energy-efficient heating, cooling, or
97 ventilation systems; building modifications to increase the use
98 of daylight; replacement of windows; installation of energy
99 controls or energy recovery systems; installation of electric
100 vehicle charging equipment; and installation of efficient
Page 4 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
101 lighting equipment; or any other improvements necessary to
102 achieve a sustainable building rating or compliance with a
103 national model green building code.
104 2. Renewable energy improvement, which is the installation
105 of any system in which the electrical, mechanical, or thermal
106 energy is produced from a method that uses one or more of the
107 following fuels or energy sources: hydrogen, solar energy,
108 geothermal energy, bioenergy, and wind energy.
109 3. Resiliency Wind resistance improvement, which includes,
110 but is not limited to:
111 a. Improving the strength of the roof deck attachment;
112 b. Creating a secondary water barrier, including sea
113 walls, to prevent water intrusion;
114 c. Installing wind-resistant shingles;
115 d. Installing gable-end bracing;
116 e. Reinforcing roof-to-wall connections;
117 f. Installing storm shutters; or
118 g. Installing opening protections;
119 h. Creating or improving stormwater, flood, and wastewater
120 management; or
121 i. Making any other improvements necessary to achieve a
122 sustainable building rating or compliance with a national model
123 resiliency standard.
124 (f) "Residential property" means a residential real
125 property of four or fewer dwelling units which will be or has
Page 5 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
126 been improved by a qualifying improvement.
127 (4) Subject to local government ordinance or resolution, a
128 residential or commercial property owner may apply to the local
129 government for funding to finance a qualifying improvement and
130 enter into a financing agreement with the local government.
131 Costs incurred by the local government for such purpose may be
132 collected as a non-ad valorem assessment. A non-ad valorem
133 assessment must shall be collected pursuant to s. 197.3632 and,
134 notwithstanding s. 197.3632(8)(a), is shall not be subject to
135 discount for early payment. However, the notice and adoption
136 requirements of s. 197.3632(4) do not apply if this section is
137 used and complied with, and the intent resolution, publication
138 of notice, and mailed notices to the property appraiser, tax
139 collector, and Department of Revenue required by s.
140 197.3632(3)(a) may be provided on or before August 15 in
141 conjunction with any non-ad valorem assessment authorized by
142 this section, if the property appraiser, tax collector, and
143 local government agree. A non-ad valorem assessment on a
144 commercial property securing financing for a qualifying
145 improvement, notwithstanding ss. 192.091(2)(b) and
146 197.3632(8)(c), is subject to a maximum annual fee of 1 percent
147 of the annual non-ad valorem assessment collected or $5,000,
148 whichever is less. Notwithstanding this subsection, a delinquent
149 assessment pursuant to a financing agreement with a
150 nongovernmental lessee must be enforced in the manner provided
Page 6 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
151 by law for taxes and assessments on property owned by
152 nongovernmental lessees of government commercial property.
153 (8) A local government may enter into a financing
154 agreement to finance or refinance a qualifying improvement only
155 with the record owner of the affected property. For government
156 commercial property, the financing agreement must be executed by
157 the nongovernmental lessee with the written consent of the
158 governmental lessor. Evidence of such consent must be provided
159 to the local government. The financing agreement with a
160 nongovernmental lessee must provide that the nongovernmental
161 lessee is the only party obligated to pay the assessment. Any
162 financing agreement entered into pursuant to this section or a
163 summary memorandum of such agreement must shall be recorded in
164 the public records of the county within which the property is
165 located by the sponsoring unit of local government within 5 days
166 after execution of the agreement. The recorded agreement
167 provides shall provide constructive notice that the assessment
168 to be levied on the property constitutes a lien of equal dignity
169 to county taxes and assessments from the date of recordation.
170 (9)(a) Before entering into a financing agreement for a
171 commercial property, the local government shall reasonably
172 determine that all of the following conditions have been met:
173 1. that All property taxes and any other assessments
174 levied on the same bill as property taxes are current. paid and
175 have not been delinquent for the preceding 3 years or the
Page 7 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
176 property owner's period of ownership, whichever is less;
177 2. that There are no involuntary liens greater than
178 $10,000, including, but not limited to, construction liens on
179 the property.;
180 3. that No notices of default or other evidence of
181 property-based debt delinquency have been recorded and not
182 released during the preceding 3 years or the property owner's
183 period of ownership, whichever is less.;
184 4. and that The property owner is current on all mortgage
185 debt on the property.
186 (b) Before entering into a financing agreement for a
187 residential property, the local government shall reasonably
188 determine that all of the following conditions have been met:
189 1. All property taxes and any other assessments levied on
190 the same bill as property taxes are paid and have not been
191 delinquent for the preceding 3 years or the property owner's
192 period of ownership, whichever is less.
193 2. There are no involuntary liens, including, but not
194 limited to, construction liens on the property.
195 3. No notices of default or other evidence of property-
196 based debt delinquency have been recorded during the preceding 3
197 years or the property owner's period of ownership, whichever is
198 less.
199 4. The property owner is current on all mortgage debt on
200 the property.
Page 8 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
201 (10) To constitute an improvement to the building or
202 facility, a qualifying improvement must be shall be affixed to a
203 building or facility that is part of the property and shall
204 constitute an improvement to the building or facility or a
205 fixture attached to the building or facility. A financing
206 agreement may be executed for qualifying improvements in the
207 construction of a commercial property before a certificate of
208 occupancy or similar evidence of substantial completion of new
209 construction or improvement is issued. Progress payments, or
210 payments made before completion, are allowed for commercial
211 properties, provided that the property owner subsequently
212 provides, upon request for a final progress payment
213 disbursement, written verification to the local government
214 confirming that the qualifying improvements are completed and
215 operating as intended. An agreement between a local government
216 and a qualifying residential property owner may not cover wind-
217 resistant wind-resistance improvements in buildings or
218 facilities under new construction or construction for which a
219 certificate of occupancy or similar evidence of substantial
220 completion of new construction or improvement has not been
221 issued.
222 (12)(a) Without the consent of the holders or loan
223 servicers of any mortgage encumbering or otherwise secured by
224 the residential property, the total amount of any non-ad valorem
225 assessment for a property under this section may not exceed 20
Page 9 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
226 percent of the just value of the property as determined by the
227 county property appraiser.
228 (b) Notwithstanding paragraph (a), a non-ad valorem
229 assessment for a qualifying improvement defined in subparagraph
230 (2)(e)1. or subparagraph (2)(e)2. on a residential property
231 subparagraph (2)(b)1. or subparagraph (2)(b)2. that is supported
232 by an energy audit is not subject to the limits in this
233 subsection if the audit demonstrates that the annual energy
234 savings from the qualified improvement equals or exceeds the
235 annual repayment amount of the non-ad valorem assessment.
236 (c) Before entering into a financing agreement with a
237 commercial property owner, the local government must be in
238 receipt of the written consent of the current holders or loan
239 servicers of any mortgage that encumbers or is otherwise secured
240 by the commercial property or that will otherwise be sec ured by
241 the property at the time the financing agreement is executed by
242 the local government.
243 (13) At least 30 days before entering into a financing
244 agreement, the property owner shall provide to the holders or
245 loan servicers of any existing mortgages that encumber the
246 property, encumbering or that will otherwise be otherwise
247 secured by the property at the time the financing agreement is
248 executed by the local government, a notice of the owner's intent
249 to enter into a financing agreement together with the maximum
250 principal amount to be financed and the maximum annual
Page 10 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
251 assessment necessary to repay that amount. A verified copy or
252 other proof of such notice must shall be provided to the local
253 government. A provision in any agreement between a mortgagee or
254 other lienholder and a property owner, or otherwise now or
255 hereafter binding upon a property owner, which allows for
256 acceleration of payment of the mortgage, note, or lien or other
257 unilateral modification solely as a result of entering into a
258 financing agreement as provided for in this section is not
259 enforceable. This subsection does not limit the authority of the
260 holder or loan servicer to increase the required monthly escrow
261 by an amount necessary to annually pay the annual qualifying
262 improvement assessment.
263 (14) At or before the time a purchaser executes a contract
264 for the sale and purchase of any property for which a non-ad
265 valorem assessment has been levied under this section and has an
266 unpaid balance due, the seller shall give the prospective
267 purchaser a written disclosure statement in either of the
268 following forms form, which must shall be set forth in the
269 contract or in a separate writing.
270 (a) For a commercial property:
271
272 QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY,
273 RENEWABLE ENERGY, OR RESILIENCY WIND RESISTANCE.—The
274 property being purchased is located within the
275 jurisdiction of a local government that has placed an
Page 11 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
276 assessment on the property pursuant to s. 163.08,
277 Florida Statutes. The assessment is for a qualifying
278 improvement to the property relating to energy
279 efficiency, renewable energy, or resiliency wind
280 resistance, and is not based on the value of property.
281 You are encouraged to contact the county property
282 appraiser's office to learn more about this and other
283 assessments that may be provided by law.
284
285 (b) For a residential property:
286
287 QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY,
288 RENEWABLE ENERGY, OR RESILIENCY.—The property being
289 purchased is located within the jurisdiction of a
290 local government that has placed an assessment on the
291 property pursuant to s. 163.08, Florida Statutes. The
292 assessment is for a qualifying improvement to the
293 property relating to energy efficiency, renewable
294 energy, or resiliency, and is not based on the value
295 of property. You are encouraged to contact the county
296 property appraiser's office to learn more about this
297 and other assessments that may be provided by law.
298
299 (17) This section is prospective only and does not affect
300 or amend any existing non-ad valorem assessment or any existing
Page 12 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1151 2023
301 interlocal agreement between local governments.
302 Section 2. This act shall take effect July 1, 2023.
Page 13 of 13
CODING: Words stricken are deletions; words underlined are additions.
hb1151-00
Energy, Communications & Cybersecurity Subcommittee
HB 1151 by Rep. Amesty
Financial Improvements to Real Property
AMENDMENT SUMMARY
March 13, 2023
Amendment 1 by Rep. Amesty:
• Provides that only commercial property owners may use PACE financing for the
additional types of qualifying improvements authorized by the bill (e.g.,
stormwater and flood resiliency improvements and improvements to achieve a
sustainable building rating or to comply with a national model resiliency standard
or green building code).
• Makes conforming changes and reorganizes portions of the bill to clarify that the
bill does not impact residential PACE programs.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Energy, Communications &
2 Cybersecurity Subcommittee
3 Representative Amesty offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 53-297 and insert:
7 damage. Improved commercial property constructed or that has
8 been retrofitted with resiliency qualifying improvements and
9 improved residential property retrofitted with wind resistance
10 qualifying improvements receive receives the special benefit of
11 reducing the property's burden from potential wind damage.
12 Further, the installation and operation of qualifying
13 improvements not only benefit the affected properties for which
14 the improvements are made, but also assist in fulfi lling the
15 goals of the state's energy and hurricane mitigation policies.
16 In order to make qualifying improvements more affordable and
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 1 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
17 assist property owners who wish to undertake such improvements,
18 the Legislature finds that there is a compelling state int erest
19 in enabling property owners to voluntarily finance such
20 improvements with local government assistance.
21 (2) As used in this section, the term:
22 (a) "Commercial property" means real property not defined
23 as residential property which will be or has been improved by a
24 qualifying improvement, including, but not limited to, the
25 following:
26 1. A multifamily residential property composed of five or
27 more dwelling units;
28 2. A commercial real property;
29 3. An industrial building or property;
30 4. An agricultural property;
31 5. A nonprofit-owned property;
32 6. A long-term care facility, including nursing homes and
33 assisted living facilities; or
34 7. A government commercial property.
35 (b) "Government commercial property" means real property
36 owned by a local government and leased to a nongovernmental
37 lessee where the usage by the lessee meets the definition of
38 commercial property.
39 (c) "Local government" means a county, a municipality, a
40 dependent special district as defined in s. 189.012, or a
41 separate legal entity created pursuant to s. 163.01(7).
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 2 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
42 (d) "Nongovernmental lessee" means a person or an entity
43 other than a local government which leases government commercial
44 property.
45 (e)(b) "Qualifying improvements": improvement"
46 1. For residential property, includes any:
47 a.1. Energy conservation and efficiency improvement, which
48 is a measure to reduce consumption through conservation or a
49 more efficient use of electricity, natural gas, propane, or
50 other forms of energy on the property, including, b ut not
51 limited to, air sealing; installation of insulation;
52 installation of energy-efficient heating, cooling, or
53 ventilation systems; building modifications to increase the use
54 of daylight; replacement of windows; installation of energy
55 controls or energy recovery systems; installation of electric
56 vehicle charging equipment; and installation of efficient
57 lighting equipment.
58 b.2. Renewable energy improvement, which is the
59 installation of any system in which the electrical, mechanical,
60 or thermal energy is produced from a method that uses one or
61 more of the following fuels or energy sources: hydrogen, solar
62 energy, geothermal energy, bioenergy, and wind energy.
63 c.3. Wind resistance improvement, which includes, but is
64 not limited to:
65 (I) Improving the strength of the roof deck attachment;
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 3 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
66 (II) Creating a secondary water barrier to prevent water
67 intrusion;
68 (III) Installing wind-resistant shingles;
69 (IV) Installing gable-end bracing;
70 (V) Reinforcing roof-to-wall connections;
71 (VI) Installing storm shutters; or
72 (VII) Installing opening protections.
73 2. For commercial property, includes any:
74 a. Energy conservation and efficiency improvement, which
75 is a measure to reduce consumption through conservation or a
76 more efficient use of electricity, natural gas, propane, or
77 other forms of energy on the property, including, but not
78 limited to, air sealing; installation of insulation;
79 installation of energy-efficient heating, cooling, or
80 ventilation systems; building modifications to increase the use
81 of daylight; replacement of windows; installation of energy
82 controls or energy recovery systems; installation of electric
83 vehicle charging equipment; installation of efficient lighting
84 equipment; or any other improvements necessary to achieve a
85 sustainable building rating or compliance with a national model
86 green building code.
87 b. Renewable energy improvement, which is the
88 installation of any system in which the electrical, mechanical,
89 or thermal energy is produced from a method that uses one or
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 4 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
90 more of the following fuels or energy sources: hydrogen, solar
91 energy, geothermal energy, bioenergy, and wind energy.
92 c. Resiliency improvement, which includes, but is not
93 limited to:
94 (I) Improving the strength of the roof deck attachment;
95 (II) Creating a secondary water barrier to prevent water
96 intrusion;
97 (III) Installing wind-resistant shingles;
98 (IV) Installing gable-end bracing;
99 (V) Reinforcing roof-to-wall connections;
100 (VI) Installing storm shutters; or
101 (VII)Installing opening protections;
102 (VIII) Creating or improving stormwater and flood
103 resiliency, including shoreline improvements; or
104 (IX) Making any other improvements necessary to achieve a
105 sustainable building rating or compliance with a national model
106 resiliency standard and any improvements to a structure to
107 achieve wind or flood insurance rate reductions, including
108 building elevation.
109 (f) "Residential property" means a residential real
110 property of four or fewer dwelling units which will be or has
111 been improved by a qualifying improvement.
112 (4) Subject to local government ordinance or resolution, a
113 residential or commercial property owner may apply to the local
114 government for funding to finance a qualifying improvement and
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 5 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
115 enter into a financing agreement with the local government.
116 Costs incurred by the local government for such purpose may be
117 collected as a non-ad valorem assessment. A non-ad valorem
118 assessment must shall be collected pursuant to s. 197.3632 and,
119 notwithstanding s. 197.3632(8)(a), is shall not be subject to
120 discount for early payment. However, the notice and adoption
121 requirements of s. 197.3632(4) do not apply if this section is
122 used and complied with, and the intent resolution, publication
123 of notice, and mailed notices to the property appraiser, tax
124 collector, and Department of Revenue required by s.
125 197.3632(3)(a) may be provided on or before August 15 in
126 conjunction with any non-ad valorem assessment authorized by
127 this section, if the property appraiser, tax collector, and
128 local government agree. A non-ad valorem assessment on a
129 commercial property securing financing for a qualifying
130 improvement, notwithstanding ss. 192.091(2)(b) and
131 197.3632(8)(c), is subject to a maximum annual fee of 1 percent
132 of the annual non-ad valorem assessment collected or $5,000,
133 whichever is less. Notwithstanding this subsection, a delinquent
134 assessment pursuant to a financing agreement with a
135 nongovernmental lessee must be enforced in the manner provided
136 by law for taxes and assessments on property owned by
137 nongovernmental lessees of government commercial property.
138 (8) A local government may enter into a financing
139 agreement to finance or refinance a qualifying improvement only
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 6 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
140 with the record owner of the affected property. For government
141 commercial property, the financing agreement must be executed by
142 the nongovernmental lessee with the written consent of the
143 governmental lessor. Evidence of such consent must be provided
144 to the local government. The financing agreement with a
145 nongovernmental lessee must provide that the nongovernmental
146 lessee is the only party obligated to pay the assessment. Any
147 financing agreement entered into pursuant to this section or a
148 summary memorandum of such agreement must shall be recorded in
149 the public records of the county within which the property is
150 located by the sponsoring unit of local government within 5 days
151 after execution of the agreement. The recorded agreement
152 provides shall provide constructive notice that the assessment
153 to be levied on the property constitutes a lien of equal dignity
154 to county taxes and assessments from the date of recordation.
155 (9)(a) Before entering into a financing agreement for a
156 residential property, the local government shall reasonably
157 determine that all of the following conditions have been met:
158 1. that All property taxes and any other assessments
159 levied on the same bill as property taxes are paid and have not
160 been delinquent for the preceding 3 years or the property
161 owner's period of ownership, whichever is less.;
162 2. that There are no involuntary liens, including, but not
163 limited to, construction liens on the property.;
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 7 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
164 3. that No notices of default or other evidence of
165 property-based debt delinquency have been recorded during the
166 preceding 3 years or the property owner's period of ownership,
167 whichever is less.;
168 4. and that The property owner is current on all mortgage
169 debt on the property.
170 (b) Before entering into a financing agreement for a
171 commercial property, the local government shall reasonably
172 determine that all of the following conditions have been met:
173 1. All property taxes and any other assessments levied on
174 the same bill as property taxes are current.
175 2. There are no involuntary liens greater than $10,000,
176 including, but not limited to, construction liens on the
177 property.
178 3. No notices of default or other evidence of property-
179 based debt delinquency have been recorded and not released
180 during the preceding 3 years or the property owner's period of
181 ownership, whichever is less.
182 4. The property owner is current on all mortgage debt on
183 the property.
184 (10) To constitute an improvement to the building or
185 facility, a qualifying improvement must be shall be affixed to a
186 building or facility that is part of the property and shall
187 constitute an improvement to the building or facility or a
188 fixture attached to the building or facility. A financing
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 8 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
189 agreement may be executed for qualifying improvements in the
190 construction of a commercial property before a certificate of
191 occupancy or similar evidence of substantial completion of new
192 construction or improvement is issued. Progress payments, or
193 payments made before completion, are allowed for commercial
194 properties, provided that the property owner subsequently
195 provides, upon request for a final progress payment
196 disbursement, written verification to the local government
197 confirming that the qualifying improvements are completed and
198 operating as intended. An agreement between a local government
199 and a qualifying residential property owner may not cover wind-
200 resistant wind-resistance improvements in buildings or
201 facilities under new construction or construction for which a
202 certificate of occupancy or similar evidence of substantial
203 completion of new construction or improvement has not been
204 issued.
205 (12)(a) Without the consent of the holders or loan
206 servicers of any mortgage encumbering or otherwise secured by
207 the residential property, the total amount of any non-ad valorem
208 assessment for a property under this section may not exceed 20
209 percent of the just value of the property as determined by the
210 county property appraiser.
211 (b) Notwithstanding paragraph (a), a non-ad valorem
212 assessment for a qualifying improvement defined in sub-
213 subparagraph (2)(e)1.a. or sub-subparagraph (2)(e)1.b. on a
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 9 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
214 residential property subparagraph (2)(b)1. or subparagraph
215 (2)(b)2. that is supported by an energy audit is not subject to
216 the limits in this subsection if the audit demonstrates that the
217 annual energy savings from the qualified improvement equals or
218 exceeds the annual repayment amount of the non-ad valorem
219 assessment.
220 (c) Before entering into a financing agreement with a
221 commercial property owner, the local government must be in
222 receipt of the written consent of the current holders or loan
223 servicers of any mortgage that encumbers or is otherwise secured
224 by the commercial property or that will otherwise be secured by
225 the property at the time the financing agreement is executed by
226 the local government.
227 (13) At least 30 days before entering into a financing
228 agreement, the property owner shall provide to the holders or
229 loan servicers of any existing mortgages that encumber the
230 property, encumbering or that will otherwise be otherwise
231 secured by the property at the time the financing agreement is
232 executed by the local government, a notice of the owner's intent
233 to enter into a financing agreement together with the maximum
234 principal amount to be financed and the maximum annual
235 assessment necessary to repay that amount. A verified copy or
236 other proof of such notice must shall be provided to the local
237 government. A provision in any agreement between a mortgagee or
238 other lienholder and a property owner, or otherwise now or
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 10 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
239 hereafter binding upon a property owner, which allows for
240 acceleration of payment of the mortgage, note, or lien or other
241 unilateral modification solely as a result of entering into a
242 financing agreement as provided for in this section is not
243 enforceable. This subsection does not limit the authority of the
244 holder or loan servicer to increase the required monthly escrow
245 by an amount necessary to annually pay the annual qualifying
246 improvement assessment.
247 (14) At or before the time a purchaser executes a contract
248 for the sale and purchase of any property for which a non-ad
249 valorem assessment has been levied under this section and has an
250 unpaid balance due, the seller shall give the prospective
251 purchaser a written disclosure statement in either of the
252 following forms form, which must shall be set forth in the
253 contract or in a separate writing.
254 (a) For a residential property:
255
256 QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY,
257 RENEWABLE ENERGY, OR WIND RESISTANCE.—The property
258 being purchased is located within the jurisdiction of
259 a local government that has placed an assessment on
260 the property pursuant to s. 163.08, Florida Statutes.
261 The assessment is for a qualifying improvement to the
262 property relating to energy efficiency, renewable
263 energy, or wind resistance, and is not based on the
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 11 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
264 value of property. You are encouraged to contact the
265 county property appraiser's office to learn more about
266 this and other assessments that may be provided by
267 law.
268
269 (b) For a commercial property:
270
271 QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY,
272 RENEWABLE ENERGY, OR RESILIENCY.—The property being
273 purchased is located within the jurisdiction of a
274 local government that has placed an assessment on the
275 property pursuant to s. 163.08, Florida Statutes. The
276 assessment is for a qualifying improvement to the
277 property relating to energy efficiency, renewable
278 energy, or resiliency, and is not based on the value
279 of property. You are encouraged to contact the county
280 property appraiser's office to learn more about this
281 and other assessments that may be provided by law.
282
283 -----------------------------------------------------
284 T I T L E A M E N D M E N T
285 Remove lines 16-30 and insert:
286 financing agreement for commercial properties;
287 authorizing a financing agreement to be executed for
288 commercial property under certain circumstances;
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 12 of 13
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1151 (2023)
Amendment No. 1
289 restricting what improvements may be covered in
290 certain agreements between local governments and
291 commercial property owners; specifying requirements
292 for a local government before entering into a
293 financing agreement; revising notice requirements
294 regarding an owner's intent to enter into a financing
295 agreement; revising the seller's disclosure statement
296 for commercial properties offered
237851 - h1151-line53.docx
Published On: 3/10/2023 7:02:55 PM
Page 13 of 13
HB 1281
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1281 Preemption Over Utility Service Restrictions
SPONSOR(S): Buchanan
TIED BILLS: IDEN./SIM. BILLS: SB 1256
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Energy, Communications & Cybersecurity Walsh Keating
Subcommittee
2) Local Administration, Federal Affairs & Special
Districts Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The Florida Constitution grants county and municipal governments broad home rule authority. Specifically,
non-charter county governments may exercise those powers of self-government that are provided by general
or special law. Those counties operating under a county charter have all powers of self-government not
inconsistent with general law or special law approved by vote of the electors. Likewise, municipalities have
those governmental, corporate, and proprietary powers enabling them to conduct municipal government,
perform their functions and provide services, and exercise any power for municipal purposes, except as
otherwise provided by law. In contrast, special districts have only those powers expressly authorized by
general or special law. County and municipal governments have broad authority to legislate on any matter that
is not inconsistent with federal or state law.
A local government enactment is inconsistent with state law if (1) the Legislature has preempted a particular
subject area or (2) the local enactment conflicts with a state statute. Where state preemption applies it
precludes a local government from exercising authority in that particular area.
The bill prohibits a municipality, county, special district, or other political subdivision of the state from enacting
or enforcing a resolution, ordinance, rule, code, or policy, or take any other action that restricts or prohibits, or
has the effect of restricting or prohibiting, the use of any major appliance, including a stove or grill, whic h uses
the types or fuel source of energy production which may be used, delivered, converted, or supplied by:
Investor-owned electric utilities;
Municipal electric utilities;
Rural electric cooperatives;
Entities formed by interlocal agreement to generate, sell, and transmit electrical energy;
Investor-owned gas utilities;
Gas districts;
Municipal natural gas utilities;
Natural gas transmission companies; and
Certain propane dealers, dispensers, and gas cylinder exchange operators.
The bill appears to have no fiscal impact on state or local governments.
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: h1281.ECC
DATE: 3/11/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Local Government Authority
The Florida Constitution grants county and municipal governments broad home rule authority.
Specifically, non-charter county governments may exercise those powers of self-government that are
provided by general or special law.1 Those counties operating under a county charter have all powers
of self-government not inconsistent with general law or special law approved by vote of the electors. 2
Likewise, municipalities 3 have those governmental, corporate, and proprietary powers enabling them to
conduct municipal government, perform their functions and provide services, and exercise any power
for municipal purposes, except as otherwise provided by law. 4
A “special district” is a unit of local government created for a particular purpose, with jurisdiction to
operate within a limited geographic boundary.5 Special districts are created by general law,6 special
act,7 local ordinance,8 or by rule of the Governor and Cabinet.9 A special district has only those powers
expressly provided by, or reasonably implied from, the authority provided in the district’s charter.
Special districts provide specific municipal services in addition to, or in place of, those provided by a
municipality or county.10 As of March 10, 2023, there are 614 active dependent11 special districts and
1,312 active independent special districts in Florida.12
Local Government Authority Over Matters Related to Utility and Energy Services
Many of the powers granted to local governments by general law relate, directly or indirectly, to the
provision of utility or other energy services to property owners or utility customers in general or to the
authority of local governments to provide these services themselves. These powers include, but may
not be limited to, the authority to:
Prepare and enforce comprehensive plans for development.13
Issue development permits and orders.14
Establish, coordinate, and enforce zoning and such business regulations as are necessary for
the protection of the public.15
Enforce the Florida Building Code and adopt and enforce local technical amendments thereto.16
1
Art. VIII, s. 1(f), Fla. Const.
2 Art. VIII, s. 1(g), Fla. Const.
3 A municipality is a local government entity created to perform functions and provide services for the particular benefit of t he population
within the municipality, in addition to those provided by the county. The term “municipality” may be used interchangeably with the terms
“town,” “city,” and “village.”
4 Art. VIII, s. 2(b), Fla. Const. See also s. 166.021(1), F.S.
5
See Halifax Hospital Medical Center v. State of Fla., et al., 278 So. 3d 545, 547 (Fla. 2019).
6 S. 189.031(3), F.S.
7 Id.
8 S. 189.02(1), F.S.
9 S. 190.005(1), F.S. See, generally, s. 189.012(6), F.S.
10
2020-2022 Local Gov’t Formation Manual, p. 62,
https://myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&CommitteeId=3117&Session=2021&Doc
umentType=General+Publications&FileName=2021-2022+Local+Government+Formation+Manual.pdf (last visited March 1 0, 2023).
11 Dependent special districts are under some control by a single county or municipality. S. 189.012(2), F.S. An independent special
district is any district that is not a dependent district. S. 189.012(3), F.S. A special district that includes more than one county is
independent unless it lies wholly within the boundaries of a single municipality.
12 Florida Department of Economic Opportunity, Official List of Special Districts Online, State Totals, available at
https://www.floridajobs.org/community-planning-and-development/special-districts/special-district-accountability-program/official-list-of-
special-districts (last visited March 10, 2023).
13 S. 125.01(1)(g), F.S.
14 Ss. 125.022, F.S. and 166.033, F.S.
15 S. 125.01(1)(h), F.S.
16 S. 125.01(1)(bb), F.S.
STORAGE NAME: h1281.ECC PAGE: 2
DATE: 3/11/2023
Enter into contracts with utility companies or others for the supply of water, electricity, or
telephone service to or in connection with any project. 17
Construct, operate, and maintain gas plants and distribution systems for domestic, municipal,
and industrial uses,18 construct such other buildings and facilities as may be required to properly
and economically operate and maintain such works, 19 and make all necessary rules or
regulations governing the use, control and operation of such works; 20
Contract with private companies for the right to construct, operate, and maintain gas plants and
distribution systems for domestic, municipal, and industrial uses, including the privilege or
franchise of exercising its corporate powers for such terms of years and upon such conditions
and limitations as may be deemed expedient and for the best interest of the municipality, for up
to 30 years, provided that the rates or charges to be made by the private company to the
individual users of the utility are fixed by the municipality.21
Provide and regulate roads, rights-of-way, and related transportation facilities.22
License the use of gas and power lines in rights-of-way.23
Adopt, revise, and amend, from time to time, appropriate ordinances, rules, and regulations
reasonably necessary to maintain air quality standards established pursuant to state and federal
law, including the federal Clean Air Act.24
Further, general law provides a role for local governments in state proceedings related to the siting of
certain new electrical power plants, transmission lines, and natural gas pipelines. Specifically, part II of
ch. 403, F.S., requires local governments to provide a report to the Department of Environmental
Protection (DEP) as to the consistency of proposed electrical power plants, transmission lines, and
natural gas pipelines with all applicable local ordinances, regulations, standards, or criteria that apply to
the proposed facility, including local comprehensive plans, zoning regulations, land development
regulations, and any applicable local environmental regulations. 25
Municipalities are authorized to levy a public service tax on the purchase of electricity, natural gas
liquefied petroleum gas, and manufactured gas.26
As noted above, many municipalities own and operate electric utilities and natural gas utilities and
govern the operation of those utilities through ordinance, code, or policies. Some special districts
provide these services under policies adopted by each special district.
State Preemption
Local governments have broad authority to legislate on any matter that is not inconsistent with federal
or state law. A local government enactment may be inconsistent with state law if (1) the Legislature
"has preempted a particular subject area" or (2) the local enactment conflicts with a state statute.
State preemption precludes a local government from exercising authority in that particular area. 27
Florida law recognizes two types of preemption: express and implied. Express preemption requires a
specific legislative statement; it cannot be implied or inferred.28 Express preemption of a field by the
Legislature must be accomplished by clear language stating that intent.29 In cases where the
17 S. 125.012(19), F.S.
18 S. 180.06(8), F.S.
19 S. 180.06(9), F.S.
20
S. 180.13, F.S.
21 S. 180.14, F.S.
22 S. 125.01(1)(m), F.S.
23 S. 125.42, F.S.
24 S. 125.275, F.S.
25 Ss. 403.507(2)(a)3., 403.526(2)(a)5., and 403.941, F.S.
26 S. 166.231, F.S.
27 Wolf, The Effectiveness of Home Rule: A Preemptions and Conflict Analysis, 83 Fla. B.J. 92 (June 2009),
https://www.floridabar.org/the-florida-bar-journal/the-effectiveness-of-home-rule-a-preemption-and-conflict-analysis/ (last visited March
10, 2023).
28 See City of Hollywood v. Mulligan, 934 So. 2d 1238, 1243 (Fla. 2006); Phantom of Clearwater, Inc. v. Pinellas County, 894 So. 2d
1011, 1018 (Fla. 2d DCA 2005), approved in Phantom of Brevard, Inc. v. Brevard County, 3 So. 3d 309 (Fla. 2008).
29 Mulligan, 934 So. 2d at 1243.
STORAGE NAME: h1281.ECC PAGE: 3
DATE: 3/11/2023
Legislature expressly or specifically preempts an area, there is no problem with ascertaining what the
Legislature intended.30 In cases determining the validity of ordinances enacted in the face of state
preemption, the effect has been to find such ordinances null and void. 31
Preemption Over Utility Service Restrictions
Section 366.032, F.S., expressly preempts the area of restricting utility services, prohibiting a
municipality, county, special district, or other political subdivision of the state from enacting or enforcing
a resolution, ordinance, rule, code, or policy, or take any other action that restricts or prohibits, or has
the effect of restricting or prohibiting, the types or fuel sources of energy production which may be
used, delivered, converted, or supplied by the following entities to serve customers that these entities
are authorized to serve:
Investor-owned electric utilities;
Municipal electric utilities;
Rural electric cooperatives;
Entities formed by interlocal agreement to generate, sell, and transmit electrical energy;
Investor-owned gas utilities;
Gas districts;
Municipal natural gas utilities;
Natural gas transmission companies; and
Certain propane dealers, dispensers, and gas cylinder exchange operators.32
An electric utility is one which owns, maintains, or operates an electric generation, transmission or
distribution system. An electric utility can be investor-owned, municipally-owned, or it can be a rural
electric cooperative.33 There are four investor-owned electric utilities in Florida: Florida Power & Light
Company,34 Duke Energy Florida, Tampa Electric Company, and Florida Public Utilities Corporation.35
Additionally, there are thirty-four municipal electric utilities and seventeen rural electric cooperatives.36
Further, the Florida Municipal Power Agency was created through a series of interlocal agreements
under s. 163.01, F.S., to provide wholesale power supply to municipal electric utilities. 37 Fuels that
Florida electric utilities use to generate electric power include, but are not limited to: natural gas,
nuclear, coal, and renewables like solar and biomass. 38
A natural gas utility is a utility that supplies natural or manufactured gas, or liquefied gas with air
admixture, or a similar gaseous substance by pipeline, to or for the public. A natural gas utility can be a
gas public utility, gas district, or natural gas utility or municipality.39 Currently, there are eight investor-
owned natural gas utilities, twenty-seven municipally owned natural gas utilities, and four special gas
districts.40
Liquified petroleum gas is any material which is composed predominately of any of the following
hydcrocarbons, or mixtures: propane, propylene, butanes, and butylenes. 41 A category I liquid
petroleum gas dealer is someone who sells or offers to sell by delivery, or at a stationary location, any
30
Sarasota Alliance for Fair Elections, Inc. v. Browning, 28 So. 3d 880, 886 (Fla. 2010).
31 See, e.g., Nat’l Rifle Ass’n of Am., Inc. v. City of S. Miami, 812 So.2d 504 (Fla. 3d DCA 2002).
32 S. 366.032, F.S.
33 S. 366.02, F.S.
34 FPL acquired Gulf Power Company in 2019 and merged as of January 3, 2022.
35
Florida Public Service Commission, Facts & Figures of the Florida Utility Industry (2022), p, 4, available at
https://www.floridapsc.com/pscfiles/website-files/PDF/Publications/Reports/General/FactsAndFigures/April%202022.pdf (last visited
Mar. 11, 2023).
36 Id. at 11-12.
37 Currently, FMPA serves the following municipalities: Alachua, Bartow, Blountstown, Bushnell, Chattahoochee, Clewiston, Fort
Meade, Fort Pierce, Gainesville, Green Cove Springs, Havana, Homestead, Jacksonville Beach, Key West, Kissimmee, Lake Worth,
Lakeland, Leesburg, Moore Haven, Mount Dora, New Smyrna Beach, Newberry, Ocala, Orlando, Quincy, St. Cloud, Starke, Vero
Beach, Wauchula, Williston, and Winter Park. Florida Municipal Power Agency, Memb ers, http://fmpa.com/about/members/ (last visited
Mar. 11, 2023).
38 Florida Public Service Commission, Facts & Figures of the Florida Utility Industry, supra at. n. 35, p. 3.
39 S. 366.04(3)(c), F.S.
40 Florida Public Service Commission, Facts & Figures of the Florida Utility Industry, supra at. n. 35, p. 13.
41 S. 527.01(1), F.S.
STORAGE NAME: h1281.ECC PAGE: 4
DATE: 3/11/2023
liquified petroleum gas to a consumer for industrial, commercial, or domestic use. 42 A category II
liquefied petroleum gas dispenser is a person who operates a liquefied petroleum gas dispensing unit
for the purpose of serving liquid products to the consumer for industrial, commercial, or domestic use,
and who sells, or offers to sell or lease equipment for the use of liquified petroleum gas. 43 A category III
liquified petroleum gas cylinder exchange operator is a person who operates a storage facility used for
the purpose of storing filled propane cylinders of certain capacities while awaiting sale to the consumer,
or a facility used for the storage of empty or filled containers which have been offered for exchange.44
Effect of Proposed Changes
The bill creates an express preemption that prohibits a municipality, county, special district, or other
political subdivision of the state from enacting or enforcing a resolution, ordinance, rule, code, or policy,
or take any other action that restricts or prohibits, or has the effect of restricting or prohibiting, the use
of any major appliance, including a stove or grill, which uses the types or fuel source of energy
production which may be used, delivered, converted, or supplied by:
Investor-owned electric utilities;
Municipal electric utilities;
Rural electric cooperatives;
Entities formed by interlocal agreement to generate, sell, and transmit electrical energy;
Investor-owned gas utilities;
Gas districts;
Municipal natural gas utilities;
Natural gas transmission companies; and
Certain propane dealers, dispensers, and gas cylinder exchange operators.
Under the bill, a board of a municipality or governmental entity is not prevented from adopting rules,
regulations, and policies governing an electric or natural gas utility that it owns or operates and directly
controls.
The bill provides an effective date of July 1, 2023.
B. SECTION DIRECTORY:
Section 1: Amends s. 366.032, relating to preemption over utility service restrictions.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
42 This category also includes “any person leasing or offering to lease, or exchanging or offering to exchange, any apparatus,
appliances, and equipment for the use of liquefied petroleum gas; any person installing, servicing, altering, or modifying ap paratus,
piping, tubing, appliances, and equipment for the use of liquefied petroleum or natural gas; any person installing carbur etion equipment;
or any person requalifying cylinders .” S. 527.01(6), F.S.
43 S. 527.01(7), F.S.
44 S. 527.01(8), F.S.
STORAGE NAME: h1281.ECC PAGE: 5
DATE: 3/11/2023
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to 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:
The bill uses the term “major appliance,” but this term is not defined beyond identifying stoves and
grills.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h1281.ECC PAGE: 6
DATE: 3/11/2023
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1281 2023
1 A bill to be entitled
2 An act relating to preemption over utility service
3 restrictions; amending. s. 366.032, F.S.; preventing
4 certain local governmental entities from enacting or
5 enforcing a resolution, ordinance, rule, code, or
6 policy or from taking any action that restricts or
7 prohibits or has the effect of restricting or
8 prohibiting the use of any major appliances; revising
9 an exception to preemption; providing an effective
10 date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Subsections (2) through (4) of section 366.032,
15 Florida Statutes, are renumbered as (3) through (5),
16 respectively, subsection (1) and present subsection (2) are
17 amended, and a new subsection (2) is added to that section, to
18 read:
19 366.032 Preemption over utility service restrictions.—
20 (1) A municipality, county, special district, or other
21 political subdivision of the state may not enact or enforce a
22 resolution, ordinance, rule, code, or policy or take any action
23 that restricts or prohibits or has the effect of restricting or
24 prohibiting the types or fuel sources of energy production which
25 may be used, delivered, converted, or supplied by the following
Page 1 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb1281-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1281 2023
26 entities to serve customers that such entities are authorized to
27 serve:
28 (a) A public utility or an electric utility as defined in
29 this chapter;
30 (b) An entity formed under s. 163.01 that generates,
31 sells, or transmits electrical energy;
32 (c) A natural gas utility as defined in s. 366.04(3)(c);
33 (d) A natural gas transmission company as defined in s.
34 368.103; or
35 (e) A Category I liquefied petroleum gas dealer or
36 Category II liquefied petroleum gas dispenser or Category III
37 liquefied petroleum gas cylinder exchange operator as defined in
38 s. 527.01.
39 (2) A municipality, county, special district, or other
40 political subdivision of the state may not enact or enforce a
41 resolution, ordinance, rule, code, or policy or take any action
42 that restricts or prohibits or has the effect of restricting or
43 prohibiting the use of any major appliances, including a stove
44 or grill, which uses the types or fuel sources of energy
45 production which may be used, delivered, converted, or supplied
46 by the entities listed in subsection (1).
47 (3)(2) Notwithstanding the restrictions of this section,
48 this section does not prevent the board of a municipality or
49 governmental entity which owns or operates and directly controls
50 an electric or natural gas utility, from passing rules,
Page 2 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb1281-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1281 2023
51 regulations, or policies governing the utility.
52 Section 2. This act shall take effect July 1, 2023.
Page 3 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb1281-00
Energy, Communications & Cybersecurity Subcommittee
HB 1281 by Rep. Buchanan
Preemption Over Utility Service Restrictions
AMENDMENT SUMMARY
March 13, 2023
Amendment 1 by Rep. Buchanan (line 39):
• Creates an exception for the enforcement of a provision pursuant to the Florida
Building Code or the Florida Fire Prevention Code.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1281 (2023)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Energy, Communications &
2 Cybersecurity Subcommittee
3 Representative Buchanan offered the following:
4
5 Amendment (with title amendment)
6 Remove line 39 and insert:
7 (2) Except to the extent necessary to enforce the Florida
8 Building Code adopted pursuant to s. 553.73 or the Florida Fire
9 Prevention Code adopted pursuant to s. 633.202, a municipality,
10 county, special district, or other
11
12 -----------------------------------------------------
13 T I T L E A M E N D M E N T
14 Remove line 4 and insert:
15 certain local governmental entities, subject to specified
16 exceptions, from enacting
416223 - h1281-line39.docx
Published On: 3/10/2023 4:44:45 PM
Page 1 of 1
File and source
- File
- 2023-03-13_3226_energy-communications-cybersecurity-subcommittee_meeting-packets_fn-ecc-3-13-23.pdf
- Size
- 1,179,045 bytes
- SHA-256
- 028996cd3ca773893512023b179d6bf1b475ee9abe870aa3ff3fbe66e35f7523
- Our copy
- 2023-03-13_3226_energy-communications-cybersecurity-subcommittee_meeting-packets_fn-ecc-3-13-23.pdf
- Original
- No public link identified.