Energy, Communications & Cybersecurity Subcommittee Meeting Packet, November 15, 2023

Summary

This is the Meeting Packet for the Energy, Communications & Cybersecurity Subcommittee of the Florida House of Representatives Commerce Committee, for Wednesday, November 15, 2023, from 10:00 am – 11:30 am. The agenda lists HB 81 Civil Penalties Under The Gas Safety Law of 1967 and HB 229 Public Service Commission Rules. The staff analysis of HB 81 states that the bill increases the maximum daily penalty from $25,000 to $257,664 and the maximum aggregate penalty cap from $500,000 to $2,576,627 for any related series of violations, effective July 1, 2024. The staff analysis of HB 229 states that the bill exempts certain Public Service Commission rules from the legislative ratification requirement.

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Energy, Communications &
Cybersecurity Subcommittee
Wednesday, November 15, 2023
10:00 AM - 11:30 AM
Reed Hall (102 HOB)

Meeting Packet

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

Meeting Agenda
Wednesday, November 15, 2023
10:00 am – 11:30 am
Reed Hall (102 HOB)

I. Call to Order

II. Roll Call

III. Welcome and Opening Remarks

IV. Consideration of the following bill(s):

• HB 81 Civil Penalties Under The Gas Safety Law of 1967

• HB 229 Public Service Commission Rules

V. Closing Remarks

VI. Adjournment

303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
HB 81
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 81 Civil Penalties Under The Gas Safety Law of 1967
SPONSOR(S): Brackett
TIED BILLS: IDEN./SIM. BILLS: SB 366

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Energy, Communications & Cybersecurity Phelps Keating
Subcommittee

2) Commerce Committee

SUMMARY ANALYSIS

The Gas Safety Law of 1967 (Gas Safety Law) authorizes the Public Service Commission (PSC) to regulate
the safe transmission and distribution of natural gas in Florida. The PSC has the power to perform any and
all acts necessary or appropriate to enforce compliance with the Gas Safety Law, which includes imposing
maximum civil penalties. The current maximum civil penalties are $25,000 for each violation of the Gas
Safety Law and $500,000 for any related series of violations.

The federal counterpart to Florida’s Gas Safety Law, the Pipeline Safety Act, authorizes the U.S. Department
of Transportation/Pipeline and Hazardous Materials Safety Administration (PHMSA) to implement federal
pipeline safety standards for interstate and intrastate gas pipelines. PHMSA’s current maximum civil penalty
amounts are $257,664 for each pipeline safety violation and $2,576,627 for any related series of violations .

The Pipeline Safety Act allows states to assume authority over intrastate gas pipelines subject to annual
certifications with PHMSA. The PSC is currently the state agency certified by PHMSA to exercise this
authority. However, the PSC received a letter this year stating that its certification is at risk due to Florida’s
lower civil penalties compared to those of PHMSA, which may reduce the PSC’s enforcement capabilities.

The bill increases the maximum monetary penalties for violations of the Gas Safety Law to mirror those
currently used by PHMSA.
 The maximum daily penalty is increased from $25,000 to $257,664.
 The maximum aggregate penalty cap is increased from $500,000 to $2,576,627 for any related series
of violations.

The bill does not impose any compliance costs but may increase costs on private sector and local
government entities that commit violations.

The bill provides an effective date of July 1, 2024.

This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0081.ECC
DATE: 11/13/2023
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:

Present Situation

Federal Law

The U.S. Department of Transportation/Pipeline and Hazardous Materials Safety Administration
(PHMSA) implements federal pipeline safety standards for interstate and intrastate gas pipelines,
hazardous liquid pipelines, and underground natural gas storage under the Pipeline Safety Act. 1 The
Pipeline Safety Act authorizes state assumption of the intrastate regulatory, inspection, and
enforcement responsibilities subject to an annual certification with PHMSA. 2 State agencies must
adopt standards that comply with the Pipeline Safety Act to qualify for certification.3

A state agency that does not satisfy the criteria for certification may enter into an agreement with
PHMSA to undertake certain aspects of the natural gas safety programs for intrastate facilities on behalf
of PHMSA.4 The state agency under such an agreement would conduct safety inspections and identify
violations, and PHMSA would enforce those violations.5 PHMSA may enforce these violations by
issuing warnings, compliance orders, and civil penalties. 6

Federal agencies are required to adjust minimum and maximum civil penalty amounts based upon
inflationary measures to preserve the penalty’s deterrent impact. 7 As a result, in 2023 PHMSA
increased the maximum penalty for daily violations of the Pipeline Safety Act to $257,664 and the
total maximum penalty for any related series of violations to $2,576,627.8

Florida Law

The Gas Safety Law authorizes the Public Service Commission (PSC) to regulate the safe
transmission and distribution of natural gas in Florida. 9 The Gas Safety Law grants the PSC exclusive
jurisdiction over “all persons, corporations, partnerships, associations, public agencies, municipalities,
or other legal entities engaged in the operation of gas transmission or distribution facilities with
respect to their compliance with the rules and regulations governing safety standards.” 10

The PSC has rulemaking authority to implement the Gas Safety Law 11 and promulgates rules
covering the design, improvement, fabrication, installation, inspection, repair, reporting, testing, and
safety standards of gas transmission and gas distribution systems. 12 The PSC is currently the state
agency certified by PHMSA to inspect and enforce intrastate gas pipelines. 13

1 See 49 U.S.C. §§ 60102-60143.
2 49 U.S.C. §§ 60105(e), 60106(d).
3 49 U.S.C. § 60105(b).
4 49 U.S.C. § 60106(d).
5 Id.
6 See 49 C.F.R §§ 190.201-190.243 (2023).
7 Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. Pub. L. 114-74, 129 Stat. 599, 114th
Congress, (Nov. 2, 2015).
8 49 C.F.R § 190.223(a) (2023).
9 S. 368.01-061, F.S.
10 S. 368.05(1), F.S.; see also S. 368.021, F.S. (providing more entities subject to PSC jurisdiction).
11 S. 368.03, F.S.; S. 368.05(2), F.S.
12 See ch. 25-12, F.A.C.
13 Florida Public Service Commission, Agency Analysis of 2023 House Bill 81, p. 2 (October 26, 2023).
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The PSC has the power to perform any and all acts necessary or appropriate to enforce compliance
with the Gas Safety Law and the Pipeline Safety Act,14 including imposing civil penalties for
noncompliance.15 Any person who violates the Gas Safety Law is subject to a maximum daily penalty
of $25,000 for each violation.16 The total maximum penalty for any related series of violations is
$500,000.17

PHMSA’s Annual Certification of PSC

PHMSA conducts annual “Progress Reports” to determine whether a state complies with the Pipeline
Safety Act and qualifies for certification and grant funds.18 The Progress Report assigns points to
different areas of compliance, including civil penalty thresholds. 19 The PSC received a four-point
deduction on its 2022 Progress Report due to Florida’s lower civil penalty amounts compared to those
of PHMSA.20 The continued loss of points may result in a reduced certification that removes the
PSC’s enforcement capabilities.21

Effect of Bill

The bill increases the maximum monetary penalties for any violation of the Gas Safety Law by
mirroring those currently used by PHMSA. The maximum daily penalty is increased from $25,000 to
$257,664. The maximum aggregate penalty cap is increased from $500,000 to $2,576,627 for any
related series of violations. The bill provides that the new penalties will take effect July 1, 2024.

The bill may assist the state in maintaining its certification by PHMSA to enforce the Pipeline Safety
Act and the Gas Safety Law.

B. SECTION DIRECTORY:
Section 1: Amends s. 368.061, F.S., relating to penalties for violations of the Gas Safety Law.

Section 2: Provides an effective date of July 1, 2024.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:

None.

2. Expenditures:

None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:

14 S. 368.05(2), F.S. (stating that the PSC may require repairs and improvements
15 S. 368.061(1), F.S.
16 Id.
17 Id.
18 Email from Zach Barrett of the U.S. Dep’t of Transportation to Andrew Giles Fay, Chairman of the Florida PSC (May
23, 2023), at 1.
19 Id. at 2; see also 49 U.S.C. § 60105(b)(7) (stating that States have discretion to enforce civil penalties substantially the

same as those provided by PHMSA).
20 Id.
21 Id.
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None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:

The bill does not impose additional compliance costs. However, the bill may impact private sector
entities if the PSC assesses penalties on such entities above the current statutory limit.

D. FISCAL COMMENTS:
The bill does not impose additional compliance costs on local governments. However, the bill may
increase fiscal impacts on local government-owned entities subject to PSC jurisdiction if the PSC
assesses penalties on such entities above the current statutory limit.

III. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

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

C. DRAFTING ISSUES OR OTHER COMMENTS:
PHMSA is required to increase the maximum civil penalties based upon inflationary measures, and
may be required to increase the penalty amounts in the future. This may require subsequent
amendments to the civil penalties in Florida’s Gas Safety Law.

IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.

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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 81 2024

1 A bill to be entitled
2 An act relating to civil penalties under The Gas
3 Safety Law of 1967; amending s. 368.061, F.S.;
4 increasing the civil penalty amount for violating The
5 Gas Safety Law of 1967; making grammatical changes;
6 providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Subsection (1) of section 368.061, Florida
11 Statutes, is amended to read:
12 368.061 Penalty.—
13 (1) Any person who violates any provision of this part, or
14 any regulation issued under this part hereunder, is shall be
15 subject to a civil penalty not to exceed $257,664 $25,000 for
16 each violation for each day that the such violation persists,
17 except that the maximum civil penalty may shall not exceed
18 $2,576,627 $500,000 for any related series of violations.
19 Section 2. This act shall take effect July 1, 2024.

Page 1 of 1

CODING: Words stricken are deletions; words underlined are additions.
hb0081-00
HB 229
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 229 Public Service Commission Rules
SPONSOR(S): Payne
TIED BILLS: IDEN./SIM. BILLS: SB 364

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Energy, Communications & Cybersecurity Bauldree Keating
Subcommittee

2) Constitutional Rights, Rule of Law &
Government Operations Subcommittee

3) State Administration & Technology
Appropriations Subcommittee

4) Commerce Committee

SUMMARY ANALYSIS
The role of the Florida Public Service Commission (PSC) is to ensure that Florida's consumers receive some
of their most essential services – electric, natural gas, telephone, water, and wastewater – in a safe,
affordable, and reliable manner. The PSC is funded through a trust fund, primarily deriving revenues from
regulatory assessment fees (RAFs), which are fees imposed by the PSC on the entities which it regulates. The
RAFs applicable to each regulated industry are capped by statute and may be adjusted by the PSC under that
cap. Since the PSC must establish the rate of each RAF by rule, the PSC must go through the rulemaking
process required under Florida law.

A rule is an agency statement of general applicability interpreting, implementing, or prescribing law or policy,
including the procedure and practice requirements of an agency, as well as certain types of forms. An agency
begins the rulemaking process by filing a notice of the proposed rule. The notice is published by the
Department of State in the Florida Administrative Register and must provide certain information, including the
text of the proposed rule, a summary of the agency’s statement of estimated regulatory costs (SERC) if one is
prepared, and how a party may request a public hearing on the proposed rule. If the projected impact of the
proposed rule will exceed $1 million in the aggregate for the five-year period after the rule is implemented, the
rule cannot go into effect until ratified by the Legislature.

Under current law, for the 2023-2024 state fiscal year only, rules adopted by the PSC to implement ss.
350.113, 364.336, 366.14, 367.145, and 368.109, F.S., which include its authority to administer and set the
rates for RAFs, are exempted from the SERC and rule ratification requirements, but the exemption expires on
July 1, 2024.

The bill exempts rules adopted by the PSC to implement ss. 350.113, 364.336, 366.14, 367.145, and 368.109,
F.S., which include its authority to administer and set the rates for RAFs, from the legislative ratification
requirement. The bill removes the current one-year exemption from the SERC requirement for such rules.

The bill has no fiscal impact on state or local governments.

The bill provides an effective date of July 1, 2024.

This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0229.ECC
DATE: 11/13/2023
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Present Situation

Florida Public Service Commission

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

The Legislature annually sets the PSC’s budget,3 however, the PSC does not receive any funding from
Florida’s General Revenue Fund. Instead, the PSC is funded through the Florida Public Service
Regulatory Trust Fund,4 primarily deriving revenues from regulatory assessment fees (RAFs), which
are credited to the trust fund and withdrawn in accordance with the PSC’s budget. 5

Regulatory Assessment Fees

RAFs are fees imposed by the PSC on the entities which it regulates. Florida law requires the PSC to
impose RAFs by rule to fund the operations of the Commission. 6 The PSC rules establishing RAFs are
industry specific and implement ss. 350.113, 364.336, 366.14, 367.145, and 368.109, F.S. Under
current law, rules establishing RAFs must meet certain requirements:
 RAFs cannot exceed a maximum rate established by statute for each industry;7
 RAFs for each industry must be sufficient to cover the PSC’s cost to regulate the entities in that
industry;8 and
 RAFs imposed on one industry cannot be used to offset the cost of regulating any other
industry.9

RAFs are specific to each entity the PSC regulates and are generally calculated based on gross
operating revenues derived from intrastate business, excluding sales for resale between certain
specified types of entities.10 However, regardless of gross operating revenue, entities in most regulated
industries must pay a minimum annual regulatory assessment fee specific to that industry. 11

Since the PSC must establish the rate of each RAF by rule, the PSC must go through the rulemaking
process required under Florida law.

1 S. 350.001, F.S.
2 Florida Public Service Commission, http://www.psc.state.fl.us/ about (last visited November 7, 2023).
3 See s. 350.113, F.S.
4 S. 350.113, F.S.
5 Florida Public Service Commission (PSC), Agency Analysis of 2024 House Bill 229, p. 1 (Nov. 6, 2023).
6 Id.
7 See ss. 364.336, 366.14, 367.145, and 368.109, F.S.; PSC supra note 5.
8 See s. 350.113(3), F.S.; PSC supra note 5.
9 E.g., s. 367.145(3), F.S.; PSC supra note 5.
10 See Rules 25-4.0161, -6.0131, -7.0131, -7.101, and -30.120, F.A.C.
11 See Rules 25-4.0161, -6.0131, -7.0131, and -30.120, F.A.C.
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Agency Rulemaking and Rule Ratification

A rule is an agency statement of general applicability interpreting, implementing, or presc ribing law or
policy, including the procedure and practice requirements of an agency, as well as certain types of
forms.12 The effect of an agency statement determines whether it meets the statutory definition of a
rule, regardless of how the agency characterizes the statement.13 If an agency statement generally
requires compliance, creates certain rights while adversely affecting others, or otherwise has the direct
and consistent effect of law, it is a rule.14

Rulemaking authority is delegated by the Legislature15 by law authorizing an agency to “adopt, develop,
establish, or otherwise create”16 a rule. If an agency statement meets the definition of a rule, the
agency does not have discretion whether to engage in rulemaking.17 To adopt a rule an agency must
have an express grant of authority to implement a specific law by rulemaking. 18 The grant of rulemaking
authority itself need not be specific or detailed.19 The particular statute being interpreted or
implemented through rulemaking must provide specific standards and guidelines to preclude the
administrative agency from exercising unbridled discretion in creating policy or applying the law. 20 A
delegation of authority to an administrative agency by a law that is vague, uncertain, or so broad as to
give no notice of what actions would violate the law, could be ruled unconstitutional if it allows the
agency to make the law.21 Because of this constitutional limitation on delegated rulemaking, the
Legislature must provide minimal standards and guidelines in the law creating a program to provide for
its proper administration by the assigned executive agency. The Legislature may delegate rulemaking
authority to agencies but not the authority to determine what should be the law. 22

Statement of Estimated Regulatory Costs

An agency begins the rulemaking process by filing a notice of the proposed rule. 23 The notice is
published by the Department of State in the Florida Administrative Register 24 and must provide certain
information, including the text of the proposed rule, a summary of the agency’s statement of estimated
regulatory costs (SERC) if one is prepared, and how a party may request a public hearing on the
proposed rule.

A SERC must be prepared if the proposed rule will have an adverse impact on small business or if the
proposed rule is likely to directly or indirectly increase regulatory costs in excess of $200,000 within one

12 S. 120.52(16), F.S.; Florida Dep’t of Fin.l Servs. v. Capital Collateral Reg’l Counsel-Middle Region, 969 So. 2d 527, 530
(Fla. 1st DCA 2007).
13 Dep’t of Admin. v. Harvey, 356 So. 2d 323, 325 (Fla. 1st DCA 1977)
14 McDonald v. Dep't of Bank ing & Fin., 346 So. 2d 569, 581 (Fla. 1st DCA 1977), articulated this principle subsequently

cited in numerous cases. See State of Florida, Dep’t of Admin. v. Stevens, 344 So. 2d 290 (Fla. 1st DCA 1977); Dep’t of
Admin. v. Harvey, 356 So. 2d 323 (Fla. 1st DCA 1977); Balsam v. Dep’t of Health & Rehab. Servs., 452 So. 2d 976, 977–
978 (Fla. 1st DCA 1984); Dep’t of Transp. v. Black hawk Quarry Co., 528 So. 2d 447, 450 (Fla. 5th DCA 1988), rev. den.
536 So. 2d 243 (Fla. 1988); Dep’t of Natural Res. v. Wingfield, 581 So. 2d 193, 196 (Fla. 1st DCA 1991); Dep’t of
Revenue v. Vanjaria Enterprises, Inc., 675 So. 2d 252, 255 (Fla. 5th DCA 1996); Volusia County School Board v. Volusia
Homes Builders Ass’n, 946 So. 2d 1084 (Fla. 5th DCA 2007); Florida Dep’t of Financial Servs. v. Capital Collateral Reg’l
Counsel, 969 So. 2d 527 (Fla. 1st DCA 2007); Coventry First, LLC v. State of Florida, Office of Ins. Reg., 38 So. 3d 200
(Fla. 1st DCA 2010).
15 SW. Florida Water Mgmt. Dist. v. Save the Manatee Club, Inc., 773 So. 2d 594 (Fla. 1st DCA 2000).
16 S. 120.52(17), F.S.
17 S. 120.54(1)(a), F.S.
18 Ss. 120.52(8) & 120.536(1), F.S.
19 Save the Manatee Club, Inc., 773 So. 2d at 599.
20 Sloban v. Florida Bd. of Pharmacy, 982 So. 2d 26, 29-30 (Fla. 1st DCA 2008); Ask ew v. Cross Keys Waterways, 372

So. 2d 913, 918-919 (Fla. 1978); Board of Trustees of the Internal Improvement Trust Fund v. Day Cruise Ass’n, 794 So.
2d 696, 704 (Fla. 1st DCA 2001).
21 Conner v. Joe Hatton, Inc., 216 So. 2d 209 (Fla.1968).
22 Sarasota County. v. Barg, 302 So. 2d 737 (Fla. 1974).
23 S. 120.54(3)(a)1, F.S.
24 S. 120.55(1)(b)2, F.S.
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DATE: 11/13/2023
year of implementation of the rule.25 Preparation of a SERC also is triggered when a substantially
affected person submits a good faith written proposal for a lower cost regulatory alternative which
substantially accomplishes the objectives of the law being implemented. 26 The SERC must provide an
economic analysis projecting the proposed rule’s effect on specified aspects of the state’s economy,
including a potential increase in regulatory costs and the rule’s potential impact over the five-year
period after the rule goes into effect.27 Each SERC must discuss the proposed rule’s likely adverse
impact on economic growth, private-sector job creation or employment, and private-sector investment;
the likely adverse impact on business competitiveness, 28 productivity, or innovation;29 and whether the
proposed rule is likely to increase regulatory costs, including any transactional costs. 30 If the analysis
shows the projected impact of the proposed rule will exceed $1 million in the aggregate for the five-year
period after the rule is implemented, the rule cannot go into effect until ratified by the Legislature. 31

Legislative Ratification

Current law distinguishes between a rule being “adopted” and becoming enforceable or “effective.” 32 A
rule must be filed for adoption before it may go into effect.33 As a rule subject to ratification becomes
effective only if ratified by the Legislature, a rule must be filed for adoption before being submitted for
legislative ratification. A rule requiring legislative ratification must be submitted to the President of the
Senate and the Speaker of the House of Representatives no later than 30 days prior to the next regular
legislative session.34

Exemptions to the legislative ratification requirement have been made for certain rules, including
adoption of federal standards,35 triennial updates of the Florida Building Code36 and the Florida Fire
Prevention Code,37 the adjustment of tolls by the Florida Department of Transportation,38 and certain
rules pertaining to nutrient pollution in Florida waters. 39 The exemption to ratification for adoption of
federal standards was implemented as consistent with existing rulemaking policy. 40 The exemptions for
updates of the Florida Building Code and the Florida Fire Prevention Code, and the adjustment of tolls,
were adopted because the respective statutory procedures for such updates and adjustments ensured
sufficient legislative oversight and public participation sufficient to test the economic impacts of the
proposed changes.41 In 2013, certain rulemaking by the Department of Environmental Regulation
establishing specific requirements for nutrients in Florida waters was exempted from the ratification
requirement because of the extensive public interaction between the Clean Water Act 42 and Florida-
developed standards.43

25 S. 120.54(3)(b)1., F.S.
26 S. 120.541(1)(a), F.S.
27 S. 120.541(2)(a), F.S.
28 This factor includes the ability of those doing business in Florida to compete with those doing business in other states or

domestic markets.
29 S. 120.541(2)(a)2., F.S.
30 S. 120.541(2)(a)3., F.S.
31 S. 120.541(3), F.S.
32 S. 120.54(3)(e)6, F.S. Before a rule becomes enforceable, thus “effective,” the agency first must complete the

rulemaking process and file the rule for adoption with the Department of State.
33 S. 120.54(3)(e)6, F.S.
34 S. 120.541(3), F.S.
35 S. 120.541(4)(a), F.S. See s. 120.54(6), F.S.
36 S. 120.541(4)(b), F.S., for amendments expressly authorized by s. 553.73, F.S. See also s. 120.80(16)(d), F.S.
37 S. 120.541(4)(c), F.S., for amendment expressly authorized by s. 633.202, F.S. See also s. 120.80(17), F.S.
38 S. 120.80(18), F.S.
39 Ch. 2013-71, ss. 2, 4, Laws of Fla.; ch. 2012-3, s. 1(1), Laws of Fla.
40 See s. 120.54(6), F.S.
41 See “Final Bill Analysis for CS/CS/CS/HB 993 & HB 7239 (2011),” pp. 7-11, at

https://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=h0993z1. RRS.DOCX& Document Type=An
alysis&BillNumber=0993&Session=2011 (last visited Nov. 13, 2023).
42 33 U.S.C. Sec. 1251, et. seq
43 See “Final Bill Analysis for CS/HB 7115,” p.7, at

https://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=h7115z.ANRS .DOCX&Document Type=An
alysis&BillNumber=7115&Session=2013 (last visited Nov. 13, 2023).
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Rules adopted by the Public Service Commission (PSC) pertaining to rates, charges, terms, and
conditions of utility pole attachments,44 including attachments to a utility pole made redundant by
subsequent replacement,45 are exempt from the SERC and rule ratification requirements. 46 For the
2023-2024 state fiscal year only, rules adopted by the PSC to implement ss. 350.113, 364.336, 366.14,
367.145, and 368.109, F.S.,47 are exempted from the SERC and rule ratification requirements, but the
exemption expires on July 1, 2024.48 These sections provide the PSC’s authority to administer and set
rates for RAFs.

Effect of Proposed Changes

The bill exempts rules adopted by the PSC to implement ss. 350.113, 364.336, 366.14, 367.145, and
368.109, F.S., from the legislative ratification requirement in s. 120.541(3), F.S. These sections provide
the PSC’s authority to administer and set rates for RAFs. Because the PSC’s budget is set by the
Legislature, the PSC will not be able to withdraw additional RAF revenue from the trust fund without
Legislative approval.

The bill removes the current one-year exemption from the SERC requirement for such rules.

The bill provides an effective date of July 1, 2024.

B. SECTION DIRECTORY:
Section 1: Amends s. 120.90, F.S., relating to exceptions and special requirements for rulemaking.

Section 2: Provides an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
The Public Service Commission indicates no fiscal impact.49

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.

44 S. 366.04(8), F.S.
45 S. 366.97, F.S.
46 S. 120.80(13)(g)1., F.S.
47 As discussed above, the PSC rules establishing RAFs implement ss. 350.113, 364.336, 366.14, 367.145, and 368.109,
F.S.
48 S. 120.80(13)(g)2., F.S. See ch. 2023-240, s. 51, Laws of Fla.
49 PSC supra note 5 at p. 3.
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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:
The bill exempts from the legislative rule ratification requirement in s. 120.541(3), F.S., rulemaking by
the PSC under ss. 350.113, 364.336, 366.14, 367.145, and 368.109, F.S.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES

STORAGE NAME: h0229.ECC PAGE: 6
DATE: 11/13/2023
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 229 2024

1 A bill to be entitled
2 An act relating to Public Service Commission rules;
3 amending s. 120.80, F.S.; removing the expiration and
4 revising the scope of an exemption from certain
5 provisions relating to statements of estimated
6 regulatory costs for certain rules adopted by the
7 Public Service Commission; providing an effective
8 date.
9
10 Be It Enacted by the Legislature of the State of Florida:
11
12 Section 1. Paragraph (g) of subsection (13) of section
13 120.80, Florida Statutes, is amended to read:
14 120.80 Exceptions and special requirements; agencies.—
15 (13) FLORIDA PUBLIC SERVICE COMMISSION.—
16 (g)1. Rules adopted by the Florida Public Service
17 Commission to implement ss. 366.04(8) and (9) and 366.97 are not
18 subject to s. 120.541.
19 2. For the 2023-2024 fiscal year, Rules adopted by the
20 Florida Public Service Commission to implement ss. 350.113,
21 364.336, 366.14, 367.145, and 368.109 are not subject to s.
22 120.541(3) s. 120.541. This subparagraph expires July 1, 2024.
23 Section 2. This act shall take effect July 1, 2024.

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CODING: Words stricken are deletions; words underlined are additions.
hb0229-00

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