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Home Source documents Florida House Tourism, Infrastructure & Energy Subcommittee meeting packet, March 3, 2021

Florida House Tourism, Infrastructure & Energy Subcommittee meeting packet, March 3, 2021

Summary

The meeting packet for the Florida House of Representatives Tourism, Infrastructure & Energy Subcommittee of the Commerce Committee, meeting Wednesday, March 3, 2021 from 1:00 PM to 3:00 PM in Sumner Hall, under Speaker Chris Sprowls and Chair Brad Drake. The agenda lists bills including HB 249 on specialty license plates, HB 267 on state preemption of seaport regulation, a public records bill on economic development agencies, HB 695 on a digital license plate pilot program, HB 753 on broadband internet deployment, HB 839 on state preemption of energy infrastructure regulation and HB 6059 on a multi-use corridor. The packet carries the bills and staff analyses.

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

Full text

        Tourism, Infrastructure & Energy
                 Subcommittee


                Wednesday, March 3, 2021
                   1 :00 PM - 3:00 PM
                 Sumner Hall (404 HOB)




                 Meeting Packet


Chris Sprowls                              Brad Drake
Speaker                                         Chair
                     The Florida House of Representatives
                                      Commerce Committee
                         Tourism, Infrastructure & Energy Subcommittee
 Chris Sprowls                                                                                         Brad Drake
 Speaker                                                                                                    Chair

                                                    AGENDA

                                        Wednesday, March 3, 2021
                                         Sumner Hall (404 HOB)
                                           1:00 PM-3:00 PM

I.     Call to Order & Roll Call

II.    Welcoming Remarks

III.   Consideration of the following bills(s):

       HB 249 by Rep. Tant
       Specialty License Plates

       HB 267 by Reps. Roach, Sirois
       State Preemption of Seaport Regulation

       HB 3 79 by Rep. Giallombardo
       Pub. Rec./Economic Development Agencies

       HB 695 by Rep. Duran
       Digital License Plate Pilot Program

       HB 753 by Rep. Clemons
       Broadband Internet Deployment

       HB 839 by Rep. Fabricio
       State Preemption of Energy Infrastructure Regulation

       HB 6059 by Rep. Shoaf
       Composition of the Multi-use Corridors of Regional Economic Significance Program

IV.    Adjournment




                 303 House Office Building, 402 South Monroe Street, Tallahassee, Florida 32399-1300
                                         (850) 717-4873 Fax: (850) 4 I 3-0419
                                         Committee Meeting Notice
                                            HOUSE OF REPRESENTATIVES




                                Tourism, Infrastructure & Energy Subcommittee

Start Date and Time:               Wednesday, March 03, 2021 01:00 pm
End Date and Time:                 Wednesday, March 03, 2021 03:00 pm
Location:                          Sumner Hall (404 HOB)
Duration:                          2.00 hrs

Consideration of the following blll(s):

HB 249 Specialty License Plates by Tant
HB 267 State Preemption of Seaport Regulations by Roach, Sirois
HB 379 Pub. Rec./Economic Development Agencies by Giallombardo
HB 695 Digital License Plate Pilot Program by Duran
HB 753 Broadband Internet Deployment by Clemons
HB 839 State Preemption of Energy Infrastructure Regulation by Fabricio
HB 6059 Composition of the Multi-use Corridors of Regional Economic Significance Program by Shoaf


This meeting will be live-streamed on https://thefloridachannel.org/. Persons who wish to attend must
register at www.myfloridahouse.gov, and pick up a pass at the Legislative Welcome Center on the 4th Floor
of the Capitol beginning one hour before the start of the meeting. Audience seating will be socially
distanced and will be available on a first-come, first-served basis. Registration closes three hours before
the meeting starts.




                             NOTICE FINALIZED on 03/01/2021 3:53PM by Rigas.Amanda


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                                     HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 249   Specialty License Plates
SPONSOR(S): Tant and others
TIED BILLS:       IDEN./SIM. BILLS:     SB 676

     REFERENCE                                                       ACTION                   ANALYST             STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

     1) Tourism, Infrastructure & Energy Subcommittee                                         Johnso

     2) Infrastructure & Tourism Appropriations
        Subcommittee

     3) Commerce Committee


                                                         SUMMARY ANALYSIS
Approximately 120 specialty license plates are available to any owner or lessee of a motor vehicle who is
willing to pay the additional annual use fee for such plate. The collected fees are distributed by the Department
of Highway Safety and Motor Vehicles (DHSMV) to statutorily designated organizations in support of a
particular cause or charity.

The bill creates the Florida State Parks specialty license plate with an annual use fee of $25. The plate must
bear DHSMV approved colors and designs with "Florida" appearing at the top of the plate and "Explore Our
State Parks" appearing at the bottom of the plate. The annual use fees are distributed to the Florida State
Parks Foundation.

The bill will have a negative, but insignificant, fiscal impact to state expenditures associated with DHSMV's
programming costs associated with the creation of the specialty license plate.

The bill has an effective date of October 1, 2021 .




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0249.TIE.D0CX
DATE: 3/1/2021
                                                          FULL ANALYSIS

                                                  I. SUBSTANTIVE ANALYSIS

     A. EFFECT OF PROPOSED CHANGES:
         Current Situation

         The first Florida specialty license plates were enacted in 1986 and included the creation of the
         Challenger plate and ten Florida collegiate plates. Today, there are approximately 120 specialty license
         plates available to any owner or lessee of a motor vehicle who is willing to pay the additional use fee for
         the privilege, typically $25 annually. 1 Current law provides that if the Legislature2 has approved 150 or
         more specialty license plates , the Department of Highway Safety and Motor Vehicles (DHMSV) may
         not make any new specialty license plate available for design or issuance until a sufficient number of
         plates are discontinued 3 so that the number of plates being issued does not exceed 150. 4

         Establishment of Specialty License Plates
         Section 320.08053 , F.S., provides the statutory requirements to establish a specialty license plate. If a
         specialty license plate requested by an organization is approved by law, the organization submits its
         proposed art design to DHSMV as soon as practicable, but no later than 60 days after the act
         approving the plate becomes a law. 5

         Within 120 days after the act approving the specialty license plate becomes law, DHSMV must
         establish a method to issue a voucher allowing for the presale of the plate. A $5 processing fee, 6 a
         service charge and branch fee, 7 and an annual use fee for the specialty license plate are charged for
         the voucher. All other applicable fees are charged at the time the license plate is issued. 8

         Within 24 months after establishing a presale specialty license plate voucher, the approved specialty
         license plate must record with DHSMV a minimum of 3,000 voucher sales9 before the license plate may
         be manufactured. If, at the conclusion of the 24-month presale period, the minimum sales requirement
         is not met, the specialty license plate is deauthorized and DHSMV discontinues the plate's
         development and the issuance of the presale vouchers . Upon deauthorization of the specialty license
         plate , a purchaser of the specialty license plate voucher may use the annual use fee collected as a
         credit towards any other specialty license plate or apply to DHSMV for a refund .10

         New specialty license plates that have been approved by law, but are awaiting issuance, will be issued
         in the order they appear ins. 320.08058, F.S., 11 if all statutory requirements, including the presale
         requirement , have been met. If the next awaiting specialty license plate has not met its presale
         requirement, DHSMV proceeds in the order provided ins. 320.08058 , F.S., to identify the next qualified
         specialty license plate that has met the presale requirement. DHSMV must cycle through the list in
         statutory order.12



1 Section 320.08056(3)(d), F.S., provides that except if specifically provided ins. 320.08056(4), the annual use fee for a specialty

license plate is $25.
2
   Creation of a specialty license plate requires an act of the Legislature.
3
   Specialty license plates are discontinued pursuant to s. 320.08056(8), F.S .
4
   S. 320.08053(3)(b), F.S.
5
   S. 320.08053( I), F.S.
6
   The processing fee is prescribed in s. 320.08056, F.S.
7
   Service charges and branch fees are prescribed ins. 320.04, F.S.
8
   S. 320.08053(2)(a), F.S.
9
   In the case of out-of-state college or university license plate, the license plate must register 4,000 voucher sales.
JOS. 320.08053(2)(b), F.S.
11
    S. 320.08058, F.S., creates each specialty license plate.
12
    S. 320.08053(3)(a), F.S.
STORAGE NAME: h0249.TIE .DOCX                                                                                                    PAGE: 2
DATE: 3/1/2021
         If the Legislature has approved 150 or more specialty license plates, DHSMV may not make any new
         specialty license plates available for design or issuance until a sufficient number of plates are
         discontinued 13 so that the number of plates being issued is fewer than 150. The 150 plate limit applies
         to all specialty license plates, including those above the minimum sales threshold and those exempt
         from the minimum-sales threshold. 14

         Specialty License Plates, Generally
         DHSMV is responsible for developing authorized specialty license plates.15 DHSMV must issue a
         specialty license plate to the owner or lessee of any motor vehicle, except a vehicle registered under
         the International Registration Plan, a commercial truck required to display two license plates, or a truck
         tractor, upon request and payment of the appropriate license tax and fees. 16 Specific specialty license
         plates are authorized for dealer and fleet vehicles. 17 A specialty license plate for motorcycles is
         addressed separately in s. 320.08068, F.S.

         Each request for a specialty license plate must be made annually to DHSMV or its authorized agent 18
         accompanied by the following tax and fees: the vehicle's required license tax, 19 a processing fee of
         $5, 20 a license plate fee, 21 and a license plate annual use fee as required for the specialty license
         plate.22

         Florida State Parks Foundation. Inc.
         Founded in 1993, the Florida State Parks Foundation, Inc., supports the Florida State Park system
         through programs that preserve and protect state parks, educate visitors about the value of state parks,
         encourage community engagement and active use of state parks, and provide financial support to
         supplement state funding. The foundation is a non-profit Florida corporation under s. 501 (3)(c) of the
         Internal Revenue Code. 23

         Effect of the Bill

         The bill creates the Florida State Parks license plate, with an annual use fee of $25. 24 The plate must
         bear DHSMV-approved colors and designs, with "Florida" appearing at the top of the plate and "Explore
         Our State Parks" appearing at the bottom of the plate.

         The annual use fees from the sale of the plate are distributed to the Florida State Parks Foundation,
         Inc. Up to 10 percent of the fees from the sale of the plate may be used for marketing the plate and
         costs directly associated with the administration of the Florida State Parks Foundation.

         The bill has an effective date of October 1, 2021.

     B. SECTION DIRECTORY:
         Section 1 Amends s. 320.08058, F.S., relating to specialty license plates.

         Section 2 Provides an effective date of October 1, 2020.


13
   Specialty license plates will be discontinued pursuant to s. 320.08056(8), F.S.
14
   S. 320.08053(3)(b), F.S.
15
   S. 320.08056(1), F.S.
16
   S. 320.08056(2), F.S.
17
   See ss. 320.06(3)(a), 320.0657(2)(a), 320.08(12) and 320.08056(2)(b) and (c), F.S.
18
   DHSMV's authorized agents are the county tax collectors.
19
   Motor vehicle license taxes are set forth in s. 320.08, F.S.
20
   The $5 processing fee is deposited into the Highway Safety Operating Trust Fund.
21
   Section 320.06(1)(b), F.S., provides for a $2.80 annual license plate replacement fee.
22
   S. 320.08056(3), F.S.
23
   Florida State Parks Foundation Website, https://floridastateparksfoundation.org/About-Usl (last visited January 14, 2021).
24
   The $25 annual use fee is provided for in existing s. 320.08056(3)(d), F.S.
STORAGE NAME: h0249.TIE.D0CX                                                                                                    PAGE: 3
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                            11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

     A. FISCAL IMPACT ON STATE GOVERNMENT:

         1. Revenues:
             The bill does not appear to impact state government revenues.

         2. Expenditures:
             DHSMV will incur programming costs associated with the creation of this specialty license plate.
             One specialty license plate with a single distribution recipient will require between 200 and 250
             hours of programming. 25 This programing can be done using existing DHSMV resources .

     B. FISCAL IMPACT ON LOCAL GOVERNMENTS :

         1. Revenues:
             The bill does not appear to impact local government revenues.

        2. Expenditures:
             The bill does not appear to impact local government expenditures.

     C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        Once the license plate goes into production, the Florida State Parks Foundation may see an increase in
        revenues associated with the sale of this license plate.

     D. FISCAL COMMENTS:
         None.


                                                       Ill. COMMENTS

     A. CONSTITUTIONAL ISSUES:

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

        2. Other:
           None.

     B. RULE-MAKING AUTHORITY:
        The bill does not require rulemaking, nor does it provide a grant of rulemaking .

     C. DRAFTING ISSUES OR OTHER COMMENTS:
        None.


                            IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
     Not applicable.

25
  Email from Kevin Jacobs, Legislative Affairs Director, Florida Department of Highway Safety and Motor Vehicles, RE: Specialty
License Plates, January 26, 2021 .
STORAGE NAME: h0249.TIE.DOCX                                                                                             PAGE: 4
DATE: 3/1/2021
FLORIDA                       H   O    U   S   E      0   F      REPRESENTATIVES




         HB 249                                                                  2021



 1                                          A bill to be entitled
 2                An act relating to specialty license plates; amending
 3                s. 320.08058, F.S.; directing the Department of
 4                Highway Safety and Motor Vehicles to develop a Florida
 5                State Parks license plate; providing for distribution
 6                and use of fees collected from the sale of the plate;
 7                providing an effective date.
 8

 9      Be It Enacted by the Legislature of the State of Florida:
10
11                Section 1.       Subsection (112) is added to section 320.08058,
12      Florida Statutes, to read:
13                320.08058       Specialty license plates.-
14                (112)     FLORIDA STATE PARKS LICENSE PLATES.-
15                (a)     The department shall develop a Florida State Parks
16      license plate as provided in this section ands. 320.08053. The
17      plate must bear the colors and design approved by the
18      department. The word "Florida" must appear at the top of the
19      p late , and the words " Explore Our State Parks" must appear at
20      the bottom of the plate .
21                (b)     The annual use fees from the sale of the plate shall
22      be distributed to the Florida State Parks Foundation, Inc., a
23      nonp rofit Florida co rporation under s. 501 ( c ) ( 3 ) of the Internal
24      Revenue Code, the mission of which is to preserve, protect,
25      sustain , and grow Florida state parks . Up to 10 percent of the

                                                      Page 1 of 2

     CODING: Words stricken are deletions; words underlined are additions.
                                                                               hb0249-00
FLORIDA                       H   O   U   S   E      0    F     REPRESENTATIVES




        HB 249                                                                    2021



26       fees may be used for marketing of the plate and costs directly
27      associated with administration of the foundation.
28               Section 2.        This act shall take effect October 1, 2021.




                                                      Page 2 of 2

     CODING: Words striskeA are deletions; words underlined are additions.
                                                                                 hb0249-00
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                                     HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#:      HB 267 State Preemption of Seaport Regulations
SPONSOR(S): Roach and others
TIED BILLS:       IDEN./SIM. BILLS: SB 426

  REFERENCE                                                        ACTION                   ANALYST               STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                                          Willson   MiJ         Keating   ce::
  2) Local Administration & Veterans Affairs
     Subcommittee

  3) Commerce Committee


                                                         SUMMARY ANALYSIS

Federal admiralty and maritime law generally controls the regulation of maritime commerce upon the navigable
waters of the United States. Municipalities and counties derive broad home rule authority from the Florida
Constitution and general law.

Florida has 15 deepwater ports, including the ports of Jacksonville, Port Canaveral, Port Citrus, Fort Pierce,
Palm Beach, Port Everglades, Miami, Port Manatee, St. Petersburg, Tampa, Port St. Joe, Panama City,
Pensacola, Key West, and Fernandina.

The bill creates s. 311.25, F.S., specifying that, notwithstanding any other law to the contrary, a local
government may not restrict or regulate commerce in the seaports of this state, including, but not limited to,
regulating or restricting a vessel's type or size, source or type of cargo, or number, origin, or nationality of
passengers. The bill expressly preempts these matters to the state.

The bill provides that, unless preempted by federal or state law, the bill does not limit the authority of a port
authority or port district, or a port operation to:
• Regulate vessel movements within its jurisdiction.
• Establish fees and compensation for its services.
• Adopt guidelines for minimum bottom clearance, for the movement of vessels, and for radio
   communications of vessel traffic.

However, the bill specifies that any such action may not have the effect of regulating or restricting a vessel's
type or size, source or type of cargo, or number, origin, or nationality of passengers, except as required to
ensure safety due to the physical limitations of channels, berths, anchorages, or other port facilities.

The bill preempts any provision of a county or municipal charter, ordinance, resolution, regulation, or policy in
existence before, on, or after the effective date of this bill.

The fiscal impact of the bill is indeterminate. See Fiscal Comments section.

The bill takes effect upon becoming law.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0267.TIE.DOCX
DATE: 3/2/2021
                                                                 FULL ANALYSIS

                                                        I. SUBSTANTIVE ANALYSIS

     A. EFFECT OF PROPOSED CHANGES:
           Current Situation

           Federal Regulation of Vessels and Maritime Commerce

          Generally, federal law controls 1 the regulation of maritime commerce 2 , navigation, 3 seaport security4,
          the regulation of commercial vessels, shipping 5 and common carriers, vessel-related environmental
          and pollution standards, 6 disease and quarantine efforts, 7 and other aspects of admiralty law in and
          upon the navigable waters of the United States. The U.S. Supreme Court has consistently determined
          that federal supremacy principles mandate preemption of efforts of state and local governments to
          impose conditions on port entry that federal laws already cover.8

          However, federal law allows a state to regulate its ports and waterways, as long as the regulation is
          based on the peculiarities of local waters that call for special precautionary measures. 9 Additionally, the


 1
   Cipollone v. Liggett Group, Inc., 505 U.S. 504,516 (1992) Where Congress has explicitly preempted state law in an area, federal law supplants all
state regulation in that area. Even in the absence of express congressional intent to preempt state law, federal preemption is implied where (I) state
 law "actually conflicts with federal law" or (2) federal law so thoroughly occupies a legislative field "as to make reasonable the inference that
Congress left no room for the States to supplement it."
2 United States v. Locke, 529 U.S. 89, l 03 (2000). ("The existence of the treaties and agreements on standards of shipping is of relevance, of course,

 for these agreements give force to the longstanding rule that the enactment ofa uniform federal scheme displaces state law, and the treaties indicate
Congress will have demanded national uniformity regarding maritime commerce.")
3 See 33 U.S.C. §§ 1221 et seq. The Ports and Waterways Safety Act of 1972 (PWSA) authorizes the U.S. Coast Guard to establish vessel traffic

service/separation schemes (VTSS) for ports, harbors, and other waters subject to congested vessel traffic. The VTSS apply to commercial ships,
other than fishing vessels, weighing 300 gross tons (270 gross metric tons) or more. The Oil Pollution Act amended the PWSA to mandate that
appropriate vessels must comply with the VTSS. The PWSA was amended by the Port and Tanker Safety Act (PTSA) of 1978 (Public Law 95-4 74).
Under the PTSA, Congress found that increased supervision of vessel and port operations was necessary to reduce the possibility of vessel or cargo
loss, or damage to life, property or the marine environment and ensure that the handling of dangerous articles and substances on the structures in, on,
or immediately adjacent to the navigable waters of the United States is conducted in accordance with established standards and requirements. NOAA,
Ports and Waterways Safety Act,
https://coast. noaa.gov/data/Documerlls/Occan LawSearch/PortsandWalcrwaysSafetyAct.pdf (last visited Mar, I, 2021 ).
4
   For example, the Maritime Transportation Security Act of2002 created a broad range of programs to improve the security conditions at the ports
and along American waterways, such as identifying and tracking vessels, assessing security preparedness, and limiting access to sensitive areas
5 See Shipping Act of 1984. 46 U.S.C. §§ 40 IO I (I), 40 IO I (2). One purpose of the Act is to 'establish a nondiscriminatory regulatory process for the

common carriage of goods by water in the foreign commerce of the United States with a minimum of government intervention and regulatory costs.'
A second purpose is to ensure that U.S.-flag ships are on a level playing field with foreign vessels.
6
   In 1973, the International Maritime Organization (IMO) adopted the International Convention for the Prevention of Pollution by Ships and
subsequently modified it by Protocol in 1978. The Convention is widely known as MARPOL 73/78. Its objective is to limit ship-borne pollution by
restricting operational pollution and reducing the possibility of accidental pollution. MARPOL specifies standards for stowing, handling, shipping,
and transferring pollutant cargoes, as well as standards for discharge of ship-generated operational wastes. Acceptance of the convention by national
government obliges them to make the requirements part of domestic law. USCG, Office ofCommercial Vessel Compliance,
https://www.dco.uscg.mi l/ Our-Organization/Ass istant-Commandant-for-Prevenlion-Policy- G-5P/lnspections-Cornplian e- 'G-5PC-/Commercial-
Ves cl- ompliancc/Domcstic- ornpliancc-Division/MARPOL/ (last visited Mar. I, 202 1).
7
   See John T. Oliver, Legal and Policy Factors Governing the Imposition of Conditions on Access and Jurisdiction Over Foreign-Flag Vessels in
U.S. Ports, 5 S.C. J. Int'!. L. & Bus. 209, 2 (2009) footnotes 153 & 154. 42 U.S.C. § 267(a): "[The Surgeon General] shall from time to time select
suitable sites for and establish such additional ... anchorages in the States and possessions of the United States as in his judgment are necessary to
prevent the introduction of communicable di seases into the States and possessions of the United States." "It shall be the duty of the customs officers
and of Coast Guard officers to aid in the enforcement of quarantine rules and regulations .... " U.S.C. § 268(b). Congress has provided statutory
authority for controlling infectious diseases, including quarantining of suspect vessels and their crews and passengers. 42 U.S.C. §§ 264-272. The
President regularly updates the list of communicable diseases subject to quarantine. Exec. Order No. 13,295, Apr. 4, 2003, 68 Fed. Reg. 17,255 (Apr.
9, 2003), reprinted in 42 U.S.C. § 264, as amended by Exec. Order No. 13,375, Apr. I, 2005, 70 Fed. Reg. 17299 (Apr. 5, 2005). He has also
delegated to the Secretary of Health and Human Services his authority to carry out duties under the statute.
8
  See United States v. Locke 4 71 U.S. 84 ( 1985)
9
   Ports and Waterways Safety Act of 1972, 33 U.S.C. § I 223(a) (2006). There is no pre-emption by operation of Title I of the Ports and Waterways
Safety Act if the state regulation is directed to local circumstances and problems, such as water depth and narrowness, idiosyncratic to a particular
port or waterway, and if the Coast Guard has not adopted regulations on the subject or determined that regulation is unnecessary or inappropriate. See
United States v. Locke, 529 U.S. 89, I 09 (2000)
STORAGE NAME: h0267.TIE.D0CX                                                                                                                    PAGE: 2
DATE: 3/2/2021
          United States Supreme Court has held that fees to defray the cost of a purely local regulation of harbor
          traffic is not an objectionable burden on commerce. 10

          The United States Coast Guard (USCG) regulates all commercial vessels, including cruise vessels,
          calling on U.S. ports, regardless of the vessel's country of origin, and inspects each foreign-flagged
          cruise vessel calling on a U.S. port at least twice a year to ensure compliance with certain treaties and
          U.S. regulations governing safety, security, and environmental protections. 11

           Florida Ports

          There are 15 deepwater seaports in Florida: 12
             • Port Canaveral,
             • Port Citrus,
             • Port Everglades,
             • Port of Fernandina,
             • Port of Fort Pierce,
             • Port of Jacksonville
             • Port of Key West,
             • Port of Palm Beach,
             • Port Manatee,
             • Port of Miami,
             • Port of Palm Beach
             • Port of Panama City,
             • Port of Pensacola,
             • Port of Port St. Joe,
             • Port of St. Petersburg, and
             • Port of Tampa.

          Approximately half of Florida's deepwater ports are organized as independent or dependent special
          districts created by special act, 13 and the remainder are organized within their respective municipal or
          county government.

          According to the Florida Ports Council, Florida seaports generate nearly 900,000 direct and indirect
          jobs and contribute $117.6 billion in economic value to the state through cargo and cruise activities.
          Florida maritime activities account for approximately 13 percent of Florida's gross domestic product
          while contributing $4.2 billion in state and local taxes. 14 In 2018, approximately 110,268,130 tons of
          cargo and 16,835,986 passengers moved through Florida's seaports. 15




10
   See Clyde Mallory Lines v. State ofAlabama ex rel. State Docks Comm'n, 296 U.S. 261,267 (1935). The Court observed that state regulations of
harbor traffic, even if they incidentally affect commerce, interstate or foreign, are of local concern, so long as they do not impede the free flow of
commerce and are not made the subject of regulation by Congress are not forbidden.
11
   U.S. House of Representatives, Subcommittee on Coast Guard and Maritime Transportation. Hearing on "Commercial and Passenger Vessel
Safety: Challenges and Opportunities, p. 4 (Nov. 9, 2019) http :/lwww.congress.gov/116/meeti ng/house/l l O181 /documents/H HRG- l l 6-PW07-
20 191114-SD001.pdf (last visited Feb. 28, 2021)
12
   For a map of Florida's deepwater seaports which indicates the primary streams of commerce (i.e. cargo, cruise passenger, other, or a combination
thereof) see DOT, Seaport System, h!LpsJ/www.fdot.gov/seaport/scamap.shtm (last visited Mar. 1, 2021).
13
   hllp://spccialdistrictrcports.floridajobs.org/wcbreports/criLeriaaspx (last visited Mar. 2, 2021).
14
   Florida Ports Council, The Florida System of Seaports, lntps://flaports.org/aboul/thc-l1orida-system-o!~seaports/ (last visited Mar. 1, 2021).
15
   FOOT, 2018 Update of Tables and Figures, p.4, hllps://fdotwww. blob.core.windows.nel/sitelinity/docs/defaull-sourcc/seaport/pdfs/20 18-update-
of-tables-and-figures-florida-seaport-system-plan-7 l 77S2830.pdr?s rvrsn=c I 879b60 2 (last visited Mar. I, 2021 ).
STORAGE NAME: h0267.TIE.D0CX                                                                                                                   PAGE: 3
DATE: 3/2/2021
          State Law Relating to Seaports

          Florida Seaport and Economic Development Program

          In 1990, the Legislature created Ch. 311, F.S., authorizing the Florida Seaport Transportation and
          Economic Development (FSTED) Program. 16 The program established a collaborative relationship
          between the Florida Department of Transportation (DOT) and the seaports and currently codifies an
          annual minimum of $25 million for a seaport grant program.17 FSTED funds are to be used on approved
          projects on a 50-50 matching basis. 18 Funding grants under the FSTED program are limited to the
          following port facilities or port transportation projects:
               •    Transportation facilities within the jurisdiction of the port;
               •    The dredging or deepening of channels, turning basins, or harbors;
               •    The construction or rehabilitation of wharves, docks, structures, jetties, piers, storage facilities,
                    cruise terminals, automated people mover systems, or any facilities necessary or useful in
                    connection with the foregoing;
               •    The acquisition of vessel tracking systems, container cranes, or other mechanized equipment
                    used in the movement of cargo or passengers in international commerce;
               •    The acquisition of land to be used for port purposes;
               •    The acquisition, improvement, enlargement, or extension of existing port facilities;
               •    Environmental protection projects: which are necessary because of requirements imposed by a
                    state agency as a condition of a permit or other form of state approval; which are necessary for
                    environmental mitigation required as a condition of a state, federal, or local environmental
                    permit; which are necessary for the acquisition of spoil disposal sites; or which result from the
                    funding of eligible projects;
               •    Transportation facilities which are not otherwise part of DOT's adopted Work Program. 19
               •    lntermodal access projects;
               •    Construction or rehabilitation of port facilities, excluding any park or recreational facility, in ports
                    listed ins. 311.09(1), F.S., 20 with operating revenues of $5 million or less, provided that such
                    project creates economic development opportunities, capital improvements, and positive
                    financial returns to such ports; and
               •    Seaport master plan or strategic plan development updates, including the purchase of data to
                    support such plans or other provisions of the Community Planning Act. 21

          The FSTED program is managed by the FSTED Council, which consists of the port director, or
          director's designee of the 15 deepwater ports, the Secretary of DOT or his or her designee, and the
          Executive Director of the Department of Economic Opportunity or his or her designee. 22
          In order for a project to be eligible for consideration by the FSTED Council, a project must be consistent
          with the port's comprehensive master plan, which is incorporated as part of the approved local
          government comprehensive plan.

          Community Planning Act

          The Community Planning Act includes four primary references to deepwater ports:

          Section 163.3177(6)(b), F.S., identifies different levels of transportation analysis that must be included
          in a local government's comprehensive plan transportation element based on the size and location of


16
   Ch. 90-136, Laws OfFla.
17
   Ss. 311.07 and 311.09, F.S.
18 S. 3 I l.07(3)(a), F.S.
19
   DOT's Work Program is adopted pursuant to s. 339.135, F.S.
20
   The ports listed ins. 311.09(1), F.S., are the ports of Jacksonville, Port Canaveral, Port Citrus, Fort Pierce, Palm Beach, Port Everglades, Miami,
Port Manatee, St. Petersburg, Tampa, Port St. Joe, Panama City, Pensacola, Key West, and Fernandina.
21
   Part II of Ch. 163, F.S.
22
   S. 311.09(1), F.S.
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           the local government and whether it is in the metropolitan planning area of a Metropolitan Planning
           Organization. At a minimum, traffic circulation issues related to ports must be addressed as well as
           plans for port facilities. Additionally, cities greater than 50,000 persons and counties greater than
           75,000 persons must address "Plans for port ... and related facilities coordinated with the general
           circulation and transportation element." Some or all of these requirements can be addressed in the port
           master plan.

          Section 163.3177(6)(9)8., F.S., requires that the comprehensive plan's coastal management element
          "Direct the orderly development, maintenance, and use of ports to facilitate deepwater commercial
          navigation and other related activities." This requirement can be addressed in the port master plan.

          Section 163.3178(2)(k), F.S., requires that port master plans be included in the local government's
          coastal management element and requires that port master plans identify existing port facilities and any
          proposed expansions. To the extent that they are applicable, port master plans must also address the
          following requirements:
               • Provide a land use and inventory map of existing coastal uses;
               • Analyze the environmental, socioeconomic, and fiscal impact of development;
               • Analyze effects of existing drainage systems on estuarine water quality;
               • Outline principles for hazard mitigation and protection of human life;
               • Outline principles for protecting existing beach and dune systems;
               • Outline principles to eliminate inappropriate and unsafe development;
               • Identify public access to shoreline areas and preservation of working waterfronts;
               • Designate coastal high-hazard areas and mitigation criteria;
               • Outline principles to assure that public facilities will be in place; and,
               • Mitigate the threat to human life and protect the coastal environment.

          Section 163.3178(3), F.S., provides that certain eligible port expansions, projects, and facilities, both on
          the port and within three miles of the port, cannot be designated as Developments of Regional Impact if
          they are consistent with an in compliance port master plan.

          Port Facility Financing

          Section 315.03, F.S. authorizes any county, port district23 , port authority24, municipality or certain
          governmental units created pursuant to the Florida lnterlocal Cooperation Act25 that includes at least
          one deepwater port to:
             • Exercise jurisdiction, control and supervision over any port facilities now or hereafter acquired,
                 owned, or constructed by the local government(s).
             • Operate and maintain, and to fix and collect rates, rentals, fees and other charges for any of the
                 services and facilities provided by the port facilities now or hereafter acquired, owned or
                 constructed by the unit excluding state bar pilots.
             • Lease or rent, or contract with others for the operation of all or any part of any port facilities now
                 or hereafter acquired, owned or constructed by the unit, on such terms and for such period or
                 periods and subject to such conditions as the governing body shall determine to be in the best
                 interests of the local government(s).

          Vessel movement and related fees

          Section 313.22, F.S., authorizes ports to regulate vessel movements within its jurisdiction, whether
          involving public or private facilities or areas, by:

23
   A "port district" is any district created by or pursuant to the provisions of any general or special law and authorized to own or operate any port
facilities. S. 315.02(1), F.S.
24
   A "port authority" is created by or pursuant to the provisions of any general or special law or any district or board of county commissioners acting
as a port authority under or pursuant to the provisions of any general or special law. S. 315.02(2), F.S.
25 S. 163.01(7)(d), F.S.

STORAGE NAME: h0267.TIE.DOCX                                                                                                                   PAGE: 5
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                •    Scheduling vessels for use of berths, anchorages, or other facilities at the port.
                •    Ordering and enforcing a vessel, at its own expense and risk, to vacate or change position at a
                     berth, anchorage, or facility, whether public or private, in order to facilitate navigation,
                     commerce, protection of other vessels or property, or dredging of channels or berths.
                •    Designating port facilities for the loading or discharging of vessels .
                •    Assigning berths at wharves for arriving vessels.

           Ports are authorized to establish fees and compensation for these services when provided by the port.

           Harbor safety

           Ports, in agreement with the United States Coast Guard, state harbor pilots, and other ports in its
           operating port area, must adopt guidelines for:
               • minimum bottom clearance for each berth and channel,
               • the movement of vessels, and
               • radio communications of vessel traffic for all commercial vessels entering and leaving its harbor
                   channels. 26

           County seaport projects and facilities

          Section 125.012, F.S. confers broad authority to counties to provide for port improvements within their
          jurisdiction, including the ability to:
               • Construct, acquire, establish, improve, extend, enlarge, reconstruct, equip, maintain, repair, and
                   operate any project27 , either within or without the territorial boundaries of the county.
               • Subject to the jurisdiction of the United States and the State of Florida and the general laws of
                   Florida relating to dredging and filling, to construct, establish, and improve harbors in the county
                   and all navigable and nonnavigable waters connected therewith; to regulate and control all such
                   waters; to construct and maintain such canals, slips, turning basins, and channels and upon
                   such terms and conditions as may be required by the United States; and to enact, adopt, and
                   establish by resolution rules and regulations for the complete exercise of jurisdiction and control
                   over all such waters.
               • To appoint shipping masters for ports or harbors under its control, to determine their
                   qualifications, and to adopt rules and regulations prescribing their duties.
               • To license stevedores as independent contractors for hire to handle stevedoring at and in the
                   harbors and airports in the county, to fix the terms and conditions of such licenses, and to
                   determine the fees to be charged for same.
               • To make and enter into all contracts and agreements and to do and perform all acts and deeds
                   necessary and incidental to the performance of its duties and the exercise of its powers.
               • To fix, regulate , and collect rates and charges for the services and facilities furnished by any
                   project under its control; to establish, limit, and control the use of any project as may be deemed
                   necessary to ensure the proper operation of the project; to impose sanctions to promote and
                   enforce compliances; to prescribe rules and regulations and impose penalties and sanctions to
                   ensure the proper performance of the duties of any stevedore or of any shipping master and the
                   enforcement of any rule or regulation which the county may adopt in the regulation of the ports,
                   harbors, wharves , docks, airports, and other projects under its control.
               • To fix the rates of wharfage, dockage, warehousing, storage, and port and terminal charges for
                   the use of the port and harbor facilities located within or without the county and owned or
                   operated by the county; and to fix and determine the rates, tolls , and other charges for the use

26 S. 313.23, F.S.
27 Section 125.01 l(2)(a), F.S. defines "project" as one or more of the following: "harbor, port, shipping, and airport facilities of all kinds and

includes, but is not limited to, harbors, channels, turning basins, anchorage areas, jetties, breakwaters, waterways, canals, locks, tidal basins, wharves,
docks, piers, slips, bulkheads, public landings, warehouses, terminals, refrigerating and cold storage plants, railroads and motor terminals for
passengers and freight, rolling stock, car ferries, boats, conveyors and appliances of all kinds for the handling, storage, inspection and transportation
of freight and the handling of passenger traffic, ... and the loading and unloading and handling of passengers, mail, express and freight;"
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                 of harbor and airport improvements and harbor and airport facilities located within or without the
                 county insofar as it may do so under the State Constitution and the Constitution and laws of the
                 United States.
            •    To regulate the operation, docking, storing, and conduct of all watercraft of any kind plying or
                 using the waterways within the county and of all aircraft of any kind operating over and within
                 the county or utilizing any other area, field, location, or place within the county for air navigation
                 purposes or for the repair, storage, or handling of aircraft within the county.
            •    To receive and accept, from any federal agency, grants for or in aid of the construction,
                 improvement, or operation of any project and to receive and accept contributions from any
                 source of either money, property, labor, or other things of value.
            •    To make any and all applications required by the Treasury Department and other departments
                 or agencies of the United States Government as a condition precedent to the establishment
                within the county of a free port, foreign trade zone, or area for the reception from foreign
                 countries of articles of commerce; to expedite and encourage foreign commerce and the
                 handling, processing, and delivery thereof into foreign commerce free from the payment of
                 custom duties and to enter into any agreements required by such departments or agencies in
                 connection therewith; and to make like applications and agreements with respect to the
                establishment within the county of one or more bonded warehouses.
           •    To enter into any contract with the government of the United States or any agency thereof which
                may be necessary in order to procure assistance, appropriations, and aid for the deepening,
                widening, and extending of channels and turning basins, the building and construction of public
                mass transit facilities, airport and airport facilities, slips, wharves, breakwaters, jetties,
                bulkheads, and any and all other harbor and air navigation improvements and facilities.
           •    To make or cause to be made such surveys, investigations, studies, borings, maps, plans,
                drawings, and estimates of cost and revenues as it may deem necessary and to prepare and
                adopt a comprehensive plan or plans for the location, construction, improvement, and
                development of any project.
           •    To grant exclusive or nonexclusive franchises to persons, firms, or corporations for the
                operating of restaurants, cafeterias, bars, taxicabs, vending machines, and other concessions of
                a nonaeronautical nature in, on, and in connection with any project owned and operated by the
                county.
           •    To adopt and promulgate suitable rules, regulations, and directions for the operation and
                conduct of any project owned or operated by the county and for the use of any such project and
                any facility connected therewith by others.
           •    To enter into contracts with utility companies or others for the supplying by such utility
                companies or others of water, electricity, or telephone service to or in connection with any
                project.
           •    To own, maintain, operate, and control export trading companies, foreign sales corporations,
                and consulting services corporations as provided by the laws of the United States or this state;
                to enter into management contracts with such corporations or companies established for the
                purpose of providing or operating such facilities; to own, maintain, operate, and control cargo
                clearance centers and customs clearance facilities, and to enter into management contracts
                with corporations established for the purpose of providing or operating such facilities; to
                maintain the confidentiality of trade information and data pursuant to the patent or copyright
                laws of the United States, pursuant to the patent or copyright laws of foreign nations to the
                extent that same are enforced by the courts of the United States, and pursuant to the trade
                secrets doctrine; and to authorize airport and port employees to serve as officers and directors
                of export trading companies, foreign sales corporations, customs and cargo clearance
                corporations, and consulting services corporations for the sale of services to others. Counties
                are hereby authorized to expend any unobligated and available surplus funds from the activities
                authorized in this subsection for the construction of capital facilities.




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           State freight logistics zones and the lntermodal Logistics Center Infrastructure Support Program

          Section 311.103, F.S. authorizes counties to designate geographic areas as a freight logistics zones .28
          A freight logistics zone is a grouping of activities and infrastructure associated with freight
          transportation and related services within a defined area around an intermodal logistics center. The
          lntermodal Logistics Center Infrastructure Support Program is designed to provide DOT funds for
          roads, rail facilities, or other means for the conveyance or shipment of goods through a seaport and
          allow the state to respond to private sector market demands and meet the state's economic
          development goal of becoming a hub for trade, logistics, and export-oriented activities.

          Passenger transportation fees and for-hire vehicles

          Sections 316.85(6), and 627 .748(17)(b), F.S., acknowledge the ability of a seaport to charge
          reasonable fees to for-hire vehicles for their use of the airport's or seaport's facilities as well as
          designate locations for staging, pickup, or other similar operations at the seaport.

          Key West Ordinance

          On November 3, 2020, voters adopted three charter amendments to the City Charter for the City of Key
          West. 29 The amendments:
             • Limit the number of persons disembarking from cruise ships to a total of not more than 1,500
                  persons per day at any and all public and privately owned or leased property located within the
                  municipal boundary of the City of Key West.
             • Prohibit cruise ships with a capacity of 1,300 or more persons (passengers and crew) from
                  disembarking individuals at any and all public and privately owned or leased property located
                  within the municipal boundary of the City of Key West.
             • Give preference and priority to cruise ships and cruise lines that have the best record (the
                  lowest number of environmental violations , penalties and fines) and best health record (the best
                  scores and least number of violations in health inspections and reports issued by the Center for
                  Disease Control Vessel Sanitation Program).

          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.
          Where state preemption applies it precludes a local government from exercising authority in that
          particular area. 30

          Florida law recognizes two types of preemption: express and implied. Express preemption requires a
          specific legislative statement; it cannot be implied or inferred. 31 Express preemption of a field by the
          Legislature must be accomplished by clear language stating that intent. 32 In cases where the


28
   S. 311.103, F.S. A "freight logistics zone" is a grouping of activities and infrastructure associated with freight transportation and related services
within a defined area around an intermodal logistics center.
29
   City of Key West, Code of Ordinances, Charter Amendment of 11-16-2020.
htlps://library.municodc.com/fl/key west/ordinances/code of ordinances?nodeld= l 05274 7 (last visited Feb. 28, 2021 ).
30
   Wolf, The Effectiveness of Home Rule: A Preemptions and Conflict Analysis, 83 Fla. 8.J. 92 (June 2009). Historically, certain types of local action
have been found to frustrate the purpose of state law, and, thus, conflict has resulted. Specifically, Florida jurisprudence makes clear that local action
cannot I) provide for more stringent regulation than the state legislation in violation of the express wording of the statute; 2) provide for a more
stringent penalty than that allowed by state statute; 3) prohibit behavior otherwise allowed by state legislation; 4) allow behavior otherwise prohibited
by state statute; or 5) provide for a different method for doing a particular act than the method proscribed by state legislation.
Generally, a local government can pass more stringent regulations than those provided for by statute. However, if the state legislation expressly
forbids a stricter regulation or if the imposition of a stricter regulation frustrates the purpose of the statute, the local government must abstain
31
   See City ofHollywoodv. 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).
32
   Mulligan, 934 So. 2d at 1243.
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          Legislature expressly or specifically preempts an area, there is no problem with ascertaining what the
          Legislature intended. 33 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. 34

          Effect of the Bill

          The bill creates s. 311.25, F.S., specifying that, notwithstanding any other law to the contrary, a local
          government may not restrict or regulate 35 commerce 36 in the seaports of this state, including, but not
          limited to, regulating or restricting a vessel's type or size, source or type of cargo, or number, origin, or
          nationality of passengers. All such matters are expressly preempted to the state.

          The bill provides that, unless preempted by federal or state law, the bill does not limit the authority of a
          port authority or port district, or a port operation to:
              • Regulate vessel movements within its jurisdiction pursuant to s. 313.22(1 ).
              • Establish fees and compensation for its services pursuant to s. 313.22(2).
              • Adopt guidelines for minimum bottom clearance, for the movement of vessels, and for radio
                  communications of vessel traffic pursuant to s. 313.23.

          However, the bill specifies that any such action may not have the effect of regulating or restricting a
          vessel's type or size, source or type of cargo, or number, origin, or nationality of passengers, except as
          required to ensure safety due to the physical limitations of channels, berths, anchorages, or other port
          facilities.

          The bill provides that any provision of a county or municipal charter, ordinance, resolution, regulation,
          or policy that is preempted by the bill and that existed before, on, or after the effective date of this bill is
          void.

     B. SECTION DIRECTORY:
          Section 1            Creates s. 311.25, F.S.; preempting to the state the regulation of commerce in state
                               seaports; providing exceptions.

          Section 2            Provides construction .

          Section 3            Provides an effective date.


                                 II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

     A. FISCAL IMPACT ON STATE GOVERNMENT:

          1. Revenues:
               Indeterminate. See Fiscal Comments section.

          2. Expenditures:
               Indeterminate. See Fiscal Comments section.



33
    Sarasota Alliance for Fair Elections, Inc. v. Browning, 28 So. 3d 880, 886 (Fla. 2010).
34
    See, e.g., Nat 'I Rifle Ass 'n ofAm., Inc. v. City of S. Miami, 812 So.2d 504 (Fla. 3d DCA 2002).
35
   "Regulate" means "to govern or direct according to rule;" "to bring under the control of law or constituted authority;" "to make regulations for or
concerning;" or "to bring order, method, or uniformity to." hups://www.mcrriam-webster.com/dictionary/regulaLe (last visited Mar. 1, 2021).
36 "Commerce" means "an interchange of goods or commodities, especially on a large scale between different countries (foreign commerce) or

between different parts of the same country (domestic commerce); trade; business." h11ps: //www.dictionary.com/browse/ commcrcc (last visited Mar.
I, 2021).
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    8. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
            Indeterminate. See Fiscal Comments section.

        2. Expenditures:
            Indeterminate. See Fiscal Comments section.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        Indeterminate. See Fiscal Comments section.

    D. FISCAL COMMENTS:
        Due to the potential breadth of the preemption, the scope of fiscal impacts on state and local
        government and the private sector is unknown.


                                                Ill. 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.

    8. RULE-MAKING AUTHORITY:
        None.

    C. DRAFTING ISSUES OR OTHER COMMENTS:
       It is unclear whether the bill preempts to the state certain matters (vessel's type or size, source or type
       of cargo, or number, origin, or nationality of passengers) that may already be preempted by the federal
       government.

       The bill provides that a local government may not restrict or regulate commerce in seaports
       "notwithstanding any other law to the contrary". It is not clear whether this would preempt the ability of
       local governments to continue regulating certain seaport-related commerce activities that are
       specifically authorized in general law.

       As drafted, the bill may preempt the ability of a seaport to regulate non-vessel related commerce, such
       as parking lot fees, food vendors, construction contracts, and other land-based activities. It is not clear
       whether this is intended.

       The bill preempts "local governments" from regulating commerce in a seaport (i.e. cities, counties and
       special districts), but retroactively voids only those "county or municipal" regulations that are preempted
       by the bill. This appears to have the effect of not retroactively voiding the existing regulations of ports
       established as special districts.


STORAGE NAME: h0267.TIE.DOCX                                                                               PAGE: 10
DATE: 3/2/2021
                          IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




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FLORIDA                       H   O    U   S   E     0    F     REPRESENTATIVES




        HB 267                                                                2021




 1                                         A bill to be entitled
 2               An act relating to state preemption of seaport
 3               regulations; creating s. 311.25, F.S.; preempting to
 4               the state the regulation of commerce in state
 5               seaports; providing exceptions; providing
 6               construction; providing an effective date.
 7

 8               WHEREAS, maritime commerce between and among seaports, both
 9      foreign and domestic, is the subject of extensive federal and
10      state regulation designed to protect the marine environment and
11      the health, safety, and welfare of the general public and those
12      involved in conducting that commerce, and
13               WHEREAS, the economic impact of a seaport extends far
14      beyond the boundaries of the local jurisdiction in which the
15      port is located, materially contributing to the economies of
16      multiple cities and counties within the region and to the
17      economy of the state as a whole, and
18               WHEREAS, Florida seaports currently generate nearly 900,000
19      direct and indirect jobs and contribute $117.6 billion in
20      economic value to the state through cargo and cruise activities,
21      accounting for approximately 13 percent of Florida's gross
22      domestic product and $4.2 billion in state and local taxes, and
23               WHEREAS, because Florida is a peninsula, much of the state
24      is highly dependent upon the unimpeded flow of maritime commerce
25      through its seaports, which is made even more critical when the

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        HB 267                                                                2021




26      state is threatened or impacted by natural disasters, such as
27      tropical storms and hurricanes, and
28               WHEREAS, because of its geographic location, Florida is a
29      hub for global maritime commerce and is uniquely positiGned to
30      capture an even larger share of this commerce as global trade
31      routes shift, and
32               WHEREAS, the international, national, statewide, and
33      regional importance of Florida seaports has long been recognized
34      in federal and state law with respect to the regulation,
35      planning, and public financing of seaport operations and
36      facilities, and
37               WHEREAS, allowing each local government in which a Florida
38      seaport is located to impose its own requirements on the
39      maritime commerce conducted in that port could result in abrupt
40      changes in the supply lines bringing goods into and out of this
41      state, thus disrupting Florida's economy and threatening the
42      public's health, safety, and welfare, and
43               WHEREAS, allowing each local government in which a Florida
44      seaport is located to impose its own requirements on the
45      maritime commerce conducted in that port could reasonably be
46      expected to suppress such commerce and potentially drive it out
47      of the port and out of the state in search of a more consistent
48      and predictable operating environment, thus disrupting Florida's
49      economy and threatening the public's health, safety, and
50      welfare, and

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        HB 267                                                                          2021




51               WHEREAS,     allowing each local government in which a Florida
52      seaport is located to impose its own requirements on the
53      maritime commerce conducted in that port could result in abrupt
54      changes in vessel traffic, frustrating the multi-year planning
55      process for all Florida seaports and the assumptions and
56      forecasts underlying federal and state financing of port
57      improvement projects, and
58               WHEREAS,     in light of these negative impacts, federal and
59      state governments must be relied upon to adopt uniform
60      regulations governing seaport operations, NOW, THEREFORE,
61
62      Be It Enacted by the Legislature of the State of Florida:
63
64               Section 1.        Section 311.25, Florida Statutes,         is created to
65      read:
66               311.25      Regulation of commerce in Florida seaports;
67      preemption.-
68               (1)    Notwithstanding any other law to the contrary, a local
69      g overnment ma y not r est rict or re gu l a te comme rce in the seaports
70      of this state, as listed ins. 311.09, including, but not
71      limited to,        regulating or restricting a vessel's type or size,
72      source or type of cargo, or number, origin, or nationality of
73      passengers. All such matters are expressly pre e mpted to the
74      state.
75               (2)    If not otherwi se pr e empt ed by fe deral or state law,

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         HB 267                                                                      2021



76       this section does no t             limit the a uthority of a port authority or
77      port district, as defined ins. 315.02, or a port operation as
78      provided ins. 125.012, to:
79                (a)   Regulate vessel movements within its jurisdiction
80      pursuant to s. 313.22 (1).
81                (b)   Establish fees and compensation for its services
82      pursuant to s. 313. 22 (2) .
83                (c)   Adopt guidelines for minimum bottom clearance, for the
84      movement of vessels, and for radio communications of vessel
85      traffic pursuant to s. 313.23.
86
87      However, an action provided in this subsection may not have the
88      effect of regulating or restricting a vessel's type or size,
89      source or type of cargo, or number, origin, or nationality of
90      pas s engers , except a s required to ensure safety due to the
91      physical limitations of channels, berths, anchorages, or other
92      port facilities.
93                Section 2.       Any provision of a county or municipal charter,
94      ordinance, resolution, regulation, or policy that is preempted
95      by this act and that existed before, on, or after the effective
96      date of this act is void.
97                Section 3.       This act shall take effect upon becoming a law .




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            TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                                HB 267 by Rep. Roach
                       State Preemption of Seaport Regulations

                                AMENDMENT SUMMARY
                                    March 3, 2021



Amendment 1 by Rep. Roach (445437):
  • Replaces “Notwithstanding any other law to the contrary” with “Except as authorized by
     general law”.


Amendment 2 by Rep. Roth (571249):
  • Narrows the scope of the bill to only preempt the regulation of seaports by municipal
     governments.
                                                     COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                               Bill No. HB 267   (2021)
       Amendment No. 1




               COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                               (Y/N)
       ADOPTED AS AMENDED                    (Y/N)
       ADOPTED W/0 OBJECTION                 (Y/N)
       FAILED TO ADOPT                       (Y/N)
       WITHDRAWN                             (Y/N)
       OTHER


1      Corrunittee/Subcommittee hearing bill:              Tourism, Infrastructure &
2      Ene rgy Subcorrunittee
3      Representative Roach offered the following:
4
5            Amendment
6              Remove line 6 8 and in se rt:
7              (1)   Except as authorized by general law, a local




    44 543 7 - h 26 7 -l ine 68 .do c x
     Publi s h e d On : 3 / 2 / 2021 7: 39 : 32 PM
                                           Pa ge 1 o f 1
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 267   (2021)
       Amendment No. 2




            COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                     (Y/N)
       ADOPTED AS AMENDED          (Y/N)
       ADOPTED W/O OBJECTION       (Y/N)
       FAILED TO ADOPT             (Y/N)
       WITHDRAWN                   (Y/N)
       OTHER


 1     Committee/Subcommittee hearing bill:    Tourism, Infrastructure &
 2     Energy Subcommittee
 3     Representative Roth offered the following:
 4
 5          Amendment
 6          Remove lines 37-93 and insert:
 7          WHEREAS, allowing each municipal government in which a
 8     Florida seaport is located to impose its own requirements on the
 9     maritime commerce conducted in that port could result in abrupt
10     changes in the supply lines bringing goods into and out of this
11     state, thus disrupting Florida's economy and threatening the
12     public's health, safety, and welfare, and
13          WHEREAS, allowing each municipal government in which a
14     Florida seaport is located to impose its own requirements on the
15     maritime commerce conducted in that port could reasonably be
16     expected to suppress such commerce and potentially drive it out
     571249 - h267-line 37.docx
      Published On: 3/2/2021 8:23:23 PM
                                  Page 1 of 3
                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 267   (2021)
       Amendment No. 2


17     of the port and out of the state in search of a more consistent
18     and predictable operating environment, thus disrupting Florida's
19     economy and threatening the public's health, safety, and
20     welfare, and
21          WHEREAS, allowing each municipal government in which a
22     Florida seaport is located to impose its own requirements on the
23     maritime commerce conducted in that port could result in abrupt
24     changes in vessel traffic, frustrating the multi-year planning
25     process for all Florida seaports and the assumptions and
26     forecasts underlying federal and state financing of port
27     improvement projects, and
28          WHEREAS, in light of these negative impacts, federal and
29     state governments must be relied upon to adopt uniform
30     regulations governing seaport operations, NOW, THEREFORE,
31
32     Be It Enacted by the Legislature of the State of Florida:
33
34          Section 1.    Section 311.25, Florida Statutes, is created to
35     read:
36          311.25    Regulation of commerce in Florida seaports;
37     preemption.—
38          (1)   Notwithstanding any other law to the contrary, a
39     municipal government may not restrict or regulate commerce in
40     the seaports of this state, as listed in s. 311.09, including,
41     but not limited to, regulating or restricting a vessel's type or
     571249 - h267-line 37.docx
      Published On: 3/2/2021 8:23:23 PM
                                    Page 2 of 3
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 267   (2021)
       Amendment No. 2


42     size, source or type of cargo, or number, origin, or nationality
43     of passengers. All such matters are expressly preempted to the
44     state.
45          (2)   If not otherwise preempted by federal or state law,
46     this section does not limit the authority of a port authority or
47     port district, as defined in s. 315.02, or a port operation as
48     provided in s. 125.012, to:
49          (a)   Regulate vessel movements within its jurisdiction
50     pursuant to s. 313.22(1).
51          (b)   Establish fees and compensation for its services
52     pursuant to s. 313.22(2).
53          (c)   Adopt guidelines for minimum bottom clearance, for the
54     movement of vessels, and for radio communications of vessel
55     traffic pursuant to s. 313.23.
56
57     However, an action provided in this subsection may not have the
58     effect of regulating or restricting a vessel's type or size,
59     source or type of cargo, or number, origin, or nationality of
60     passengers, except as required to ensure safety due to the
61     physical limitations of channels, berths, anchorages, or other
62     port facilities.
63          Section 2.    Any provision of a municipal charter,
64




     571249 - h267-line 37.docx
      Published On: 3/2/2021 8:23:23 PM
                                     Page 3 of 3
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#:      HB 379   Pub. Rec./Economic Development Agencies
SPONSOR(S): Giallombardo
TIED BILLS:       IDEN./SIM. BILLS: SB 968

  REFERENCE                                                        ACTION                   ANALYST               STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                                          Willson   M'vJ        Keating

  2) Government Operations Subcommittee

  3) Commerce Committee


                                                         SUMMARY ANALYSIS
The bill provides a public record exemption for certain information held by economic development agencies,
including the Department of Economic Opportunity (DEO}, pursuant to the administration of state or federally
funded small business program. Specifically, the bill exempts the following information:
    • The home address, telephone number, and e-mail address of a person who submits an application for
        a loan on behalf of a business.
    • Tax returns.
    • Bank and financial statements.
    • Credit history information, credit reports, and credit scores.

The bill does not prohibit the disclosure of information held by the economic development agency pursuant to
its administration of a small business loan program in an aggregated and anonymized format.

The bill provides for repeal of the public record exemption on October 2, 2026, unless reviewed and saved
from repeal through reenactment by the Legislature. The bill provides a statement of public necessity as
required by the Florida Constitution.

The bill may have a fiscal impact on agencies responsible for complying with public records requests and
redacting exempt information prior to releasing a record.

Article I, section 24(c) of the Florida Constitution requires a two-thirds vote of the members present
and voting for final passage of a newly created or expanded public record or public meeting
exemption. The bill provides for a public record exemption; thus, it requires a two-thirds vote for final
passage.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0379.TIE.D0CX
DATE: 3/1/2021
                                                         FULL ANALYSIS

                                                  I. SUBSTANTIVE ANALYSIS

     A. EFFECT OF PROPOSED CHANGES:
          Background

          Public Records

          Article I, section 24(a) of the Florida Constitution sets forth the state's public policy regarding access to
          government records. This section guarantees every person a right to inspect or copy any public record
          of the legislative, executive, and judicial branches of government. The Legislature, however, may
          provide by general law for the exemption of records from the requirements of article I, section 24(a) of
          the Florida Constitution. 1 The general law must state with specificity the public necessity justifying the
          exemption 2 and must be no broader than necessary to accomplish its purpose.3

          Public policy regarding access to government records is addressed further ins. 119.07(1)(a), F.S.,
          which guarantees every person a right to inspect and copy any state, county, or municipal record,
          unless the record is exempt. Furthermore, the Open Government Sunset Review Act4 provides that a
          public record or public meeting exemption may be created or maintained only if it serves an identifiable
          public purpose. In addition, it may be no broader than necessary to meet one of the following purposes:
             • Allow the state or its political subdivisions to effectively and efficiently administer a
                  governmental program, which administration would be significantly impaired without the
                  exemption.
             • Protect sensitive personal information that, if released, would be defamatory or would
                  jeopardize an individual's safety; however, only the identity of an individual may be exempted
                  under this provision.
             • Protect trade or business secrets.5

          The Open Government Sunset Review Act requires the automatic repeal of a newly created public
          record exemption on October 2nd of the fifth year after creation or substantial amendment, unless the
          Legislature reenacts the exemption. 6

          Small Business Loan Programs

          The Department of Economic Opportunity (DEO) administers a number of state and federally funded
          small business loan programs, including:
             • Small Business Emergency Bridge Loan Program
             • Rebuild Florida Business Loan Fund7
             • Rural Community Development Revolving Loan Program 8
             • State Small Business Loan Fund 9
             • Florida Minority Business Loan Mobilization Program,10
             • Black Business Loan Program 11

1 Art. I, s. 24(c), F LA. CONST.
2 This portion of a public record exemption is commonly referred to as a "public necessity statement."
3
  Art. I. s. 24(c), FLA. C ONST.
4
  S. 119.15, F.S.
5
  S. 119.15(6)(b), F .S.
6 S. 119.15(3), F.S.
7 DEO, Rebuild Florida Business Loan Fund, https://deosera.force.com/RebuildFloridaBusinessloanFund/s/Joan-

proqrams?program=florida-resiliency-loan (last visited Feb. 23, 2021).                                ·
e S. 288.065, F.S.
9
  DEO, Small Business Loan Program , https://floridajobs.org/communily-planninq-and-developmenUSmall-and-Minority-Business-
Oevelopment-Resources/Small-and-Minority-Business-Programs/small-business-loan-program (last visited Feb. 23, 2021).
10 S. 288.706, F.S.
STORAGE NAME: h0379.T1E. D0CX                                                                                            PAGE: 2
DATE: 3/ 1/2021
              •   Microfinance Loan Program 12

         Section 288.075, F.S., defines an "Economic development agency" as:
            • The Department of Economic Opportunity;
            • Any industrial development authority created in accordance with part Ill of chapter 159 or by
                special law;
            • Space Florida created in part 11 of chapter 331 ;
            • The public economic development agency of a county or municipality or, if the county or
                municipality does not have a public economic development agency, the county or municipal
                officers or employees assigned the duty to promote the general business interests or industrial
                interests of that county or municipality or the responsibilities related thereto;
            • Any research and development authority created in accordance with part V of chapter 159; or
            • Any private agency, person, partnership, corporation, or business entity when authorized by the
                state, a municipality, or a county to promote the general business interests or industrial interests
                of the state or that municipality or county.

         Effect of the Bill

         This bill creates a public record exemption for the following information held by an economic
         development agency pursuant to its administration of a state or federally funded small business loan
         program:
             • The home address, telephone number, and e-mail address of a person who submits an
                  application for a loan on behalf of a business.
             • Tax returns.
             • Bank and financial statements.
             • Credit history information, credit reports, and credit scores.

         The bill does not prohibit the disclosure of information held by the economic development agency
         pursuant to its administration of a small business loan program in an aggregated and anonymized
         format.

         This bill provides a public necessity statement as required by article I, section 24(c) of the Florida
         Constitution. The public necessity statement provides that in order to process and disburse loan funds,
         an economic development agency may obtain sensitive information needed to assess viability of loans
         and that such information may be used to locate, identify, and contact the borrower. The bill states that
         such information, released, could be used by fraudulent contractors, predatory lenders, thieves, or
         individuals seeking to impose on the borrower and it is therefore necessary for such information to be
         protected to ensure that borrowers are not harassed, intimidated, or potentially defrauded.

         The bill provides for repeal of the public record exemption on October 2, 2026, unless reviewed and
         saved from repeal through reenactment by the Legislature.

    B. SECTION DIRECTORY:
         Section 1 Amends s. 288.075, F.S.; providing an exemption from public records requirements for
                   certain information held by an economic development agency; providing that such
                   information may be released in an aggregated and anonymized format; providing for future
                   legislative review and repeal of the exemption; providing a statement of public necessity.

        Section 2 Provides a public necessity statement as required by the Florida Constitution.

        Section 3 Provides an effective date.


11 Ss. 288.7102-.714, F.S.
12 See Microfinance Programs, ch . 288, part XIV.
STORAGE NAME: h0379.TIE.DOCX                                                                                 PAGE: 3
DATE: 3/1/2021
                         11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           See fiscal comments.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           See fiscal comments.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       The bill may have a minimal fiscal impact on economic development agencies responsible for
       complying with public records requests and redacting exempt information prior to releasing a record.
       Such costs, however, would be absorbed as part of the day-to-day responsibilities of these agencies.


                                                111. COMMENTS

   A CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. This bill does not appear to require counties or municipalities to take action requiring
          the expenditure of funds, reduce the authority that counties or municipalities have to raise revenue in
          the aggregate, nor reduce the percentage of state tax shared with counties or municipalities.

       2. Other:
          Vote Requirement

          Article I, section 24(c) of the Florida Constitution requires a two-thirds vote of the members present
          and voting for final passage of a newly created or expanded public record or public meeting
          exemption. The bill creates a public record exemption; thus, it requires a two-thirds vote for final
          passage.

          Public Necessity Statement

          Article I, section 24(c) of the Florida Constitution requires a public necessity statement for a newly
          created or expanded public record or public meeting exemption. The bill creates a public record
          exemption and includes the required public necessity statement.
STORAGE NAME: h0379.TIE.D0CX                                                                                PAGE: 4
DATE: 3/1/2021
          Breadth of Exemption

          Article 1, section 24(c) of the Florida Constitution requires a newly created or expanded public record
          or public meeting exemption to be no broader than necessary to accomplish the stated purpose of
          the law. The bill creates a public records exemption for sensitive and personal financial information
          that is held by an economic development agency pursuant to its administration of a state or federally
          funded small business loan program, which does not appear to be broader than necessary to
          accomplish its purpose.

    8. RULE-MAKING AUTHORITY:
        None.

    C. DRAFTING ISSUES OR OTHER COMMENTS:
        None.



                         IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: h0379.TIE.D0CX                                                                              PAGE:5
DATE: 3/1/2021
FLORIDA                       H   O   U   S   E      0   F      REPRESENTATIVES




        HB 379                                                                   2021




 1                                         A bill to be entitled
 2               An act relating to public records; amending s.
 3               288.075, F.S.; providing an exemption from public
 4               records requirements for certain information held by
 5               an economic development agency; providing that such
 6               information may be released in an aggregated and
 7               anonymized format; providing for future legislative
 8               review and repeal of the exemption; providing a
 9               statement of public necessity; providing an effective
10               date.
11
12      Be It Enacted by the Legislature of the State of Florida:
13
14               Section 1.        Subsection (7) of section 288.075, Florida
15      Statutes, is renumbered as subsection (8), and a new subsection
16       (7) is added to that section, to read:
17               288.075      Confidentiality of records.-
18               (7)     LOAN PROGRAMS.-
19               (a)     The following information held by an economic
20      development agency pursuant to its administration of a state or
21      federally funded small busine s s loan program is exempt from s.
22      119.07(1) ands. 24(a), Art. I of the State Constitution:
23               1.    The home address, telephone number, and e-mail address
24      of a person who submits an application for a loan on behalf of a
25      business.

                                                      Page 1 of 3

     CODING: Words striskeR are deletions; words underlined are additions.
                                                                                hb0379-00
FLORIDA                       H   O    U   S   E     0    F     REPRESENTATIVES




        HB 379                                                                  2021




26               2.    Tax returns.
27               3.    Bank and financial statements.
28               4.    Credit history information, credit reports, and credit
29      scores.
30               (b)    This section does not prohibit the disclosure of
31      information held by an economic development agency pursuant to
32      its administration of a small business loan program in an
33      aggregated and anonymized format.
34               (c)    This subsection is subject to the Open Government
35      Sunset Review Act in accordance withs. 119.15 and shall stand
36      repealed on October 2, 2026, unless reviewed and saved from
37      repeal through reenactment by the Legislature.
38               Section 2 .       The Legislature finds that it is a public
39      necessity that the home address, telephone number, and e-mail
40      address of a person who submits an application for a loan on
41      behalf of a business; tax returns; bank and financial
42      statements; and credit history information, credit reports, and
43      credit scores held by an economic development agency pursuant to
44      its administration of any state or federally funded small
45      business loan program be made exempt from s. 119.07(1), Florida
46      Statutes, ands. 24(a), Article I of the State Constitution. In
47      order to process and disburse loan funds, an economic
48      development agency may obtain sensitive information needed to
49      assess viability of loans. This information may be used to
50      locate and identify and contact the borrower. If released,

                                                       Page 2 of 3

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                                                                               hb0379-00
FLORIDA                       H   O   U    S   E     0    F     REPRESENTATIVES




        HB 379                                                                 2021




51      locating and identifying information could be used by fraudulent
52      contractors, predatory lenders, thieves, or individuals seeking
53      to impose on the borrower. Therefore, it is necessary that
54      certain information held by an economic development agency
55      pursuant to its administration of any state or federally funded
56      small business loan program be protected to ensure that
57      borrowers are not harassed, intimidated, or potentially
58      defrauded.
59               Section 3.        This act shall take effect July 1, 2021.




                                                       Page 3 of 3

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                                                                              hb0379-00
I
OJ
0)
(0
01
                                     HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#:      HB 695   Digital License Plate Pilot Program
SPONSOR(S): Duran
TIED BILLS:       IDEN./SIM. BILLS: SB 862

     REFERENCE                                                       ACTION                    ANALYST            STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

     1) Tourism, Infrastructure & Energy Subcommittee                                                             Keating

     2) Infrastructure & Tourism Appropriations
        Subcommittee

     3) Commerce Committee


                                                         SUMMARY ANALYSIS
Current law requires license plates and validation stickers to be made out of metal retroreflective material and
meet certain statutory requirements regarding size and number of characters allowed on the plate. However,
the Department of Highway Safety and Motor Vehicles (DHSMV) may conduct a pilot program on government
vehicles to evaluate alternative license plates.

Digital license plates are dynamic screens, which may be used to replace the current metal license plate. They
are able to display information such as a license plate number and annual validation of the current license
plate. A digital license plate may also be used for applications such as electronic tolling and broadcasting
emergency alerts.

The bill eliminates DHSMV's current authority to evaluate alternative license plates through a pilot program and
creates the Digital License Plate Pilot Program. Beginning July 1, 2021, for government vehicles, and July 1,
2022, for all vehicles, DHSMV must implement the program for the purpose of evaluating the design, concepts,
and technology available for digital license plates and the feasibility of digital license plates. The bill authorizes
DHSMV to contract with one or more digital license plate providers, and DHSMV may authorize the display of a
plate number and validation sticker on a digital license plate. DHSMV may authorize the use of digital license
plates for toll collection and parking permits. DHSMV may establish procedures for displaying emergency
alerts, static logo displays, and other displays on the license plate.

DHSMV must distribute $4 from the sale of each digital license plate to its current manufacturer of license
plates. The bill also provides requirements for the digital license plate and requires providers to maintain an
inventory of digital license plates, make available digital versions of each specialty license plate, and update
the vehicle's registration in real time.

Assuming that most of the programming is between the digital license plate provider and the consumer, the bill
will have an insignificant impact on DHSMV expenditures. However, the bill is unclear as to whether or not
DHSMV will continue collecting all existing license plate fees. See Fiscal Analysis for details.

The bill is effective upon becoming a law.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0695.TIE.DOCX
DATE: 3/1/2021
                                                         FULL ANALYSIS

                                                  I. SUBSTANTIVE ANALYSIS

        A. EFFECT OF PROPOSED CHANGES:
            Current Situation

            Florida law requires registration license plates to be made of metal specially treated with a
            retroreflection material. The registration license plate must be designed to increase nighttime visibility
            and legibility and must be at least 6 inches tall and not less than 12 inches in wide, unless a plate with
            reduced dimensions is deemed necessary by the Department of Highway Safety and Motor Vehicles
            (DHSMV) to accommodate motorcycles, mopeds, or similar smaller vehicles. Annual validation stickers
            must also be treated with a retroreflection material and must adhere to the license plate. 1

            The license plate must be imprinted with a combination of bold letters and numerals, not to exceed
            seven digits, to identify the registration license plate number. The license plate must be imprinted with
            the word "Florida" at the top and the name of the county in which it is sold, the state motto, or the words
            "Sunshine State" at the bottom. Any county may, upon majority vote of the county commission, elect to
            have the county name removed from the license plates sold in that county. The state motto or the
            words "Sunshine State" must be printed in lieu of the county name. 2

            Under current law, DHSMV may conduct a pilot program to evaluate the designs, concepts, and
            technologies for alternative license plates. For purposes of the pilot program, DHSMV must investigate
            the feasibility and use of alternative license plate technologies and the long-term cost impact to the
            consumer. A pilot program is limited to license plates that are used on government-owned motor
            vehicles. Such license plates are exempt from statutory requirements providing the design and material
            requirement for license plates. 3 DHSMV has had this authority since 2012, but has not conducted a
            pilot program.

            Under current law, PRIDE, lnc., 4 may manufacture license plates and validation stickers for DHSMV.
            DHSMV is not required to obtain competitive bids in order to contract with the corporation. 5

            Section 320.07, F.S., provides for the expiration of a motor vehicle registration and the required
            renewal. The statute provides penalties for operating a motor vehicle without a registration license plate
            or validation sticker. The penalties are as follows:
                • Any person whose motor vehicle or mobile home registration has been expired for a period of
                    six months or less commits a noncriminal traffic infraction, punishable as a nonmoving violation.
                • Any person whose motor vehicle or mobile home registration has been expired for more than
                    six months, upon a first offense, is subject to the penalty provided ins. 318.14, F.S. 6
                • Any person whose motor vehicle or mobile home registration has been expired for more than
                    six months, upon a second or subsequent offense, commits a misdemeanor of the second
                    degree. 7

            Digital License Plates
            Digital license plates are dynamic screens that may replace the current physical license plate. They are
            able to display information such as a license plate number and validation of the current license plate.

1
    S. 320.06(3)(a), F.S.
z Id.
3
  S. 320.06(5), F.S.
4
  PRIDE, Inc. is the corporation organized under ch. 947, F.S., relating to inmate work programs.
5
  S. 320.06(4), F.S.
6
  Section 318.14, F.S., provides certain exceptions to noncriminal traffic infractions and provides for court appearances, payment
plans, and authorizes proof of compliance with motor vehicle registration requirements.
7
  S. 320.07(3), F.S.
STORAGE NAME: h0695.TIE.D0CX                                                                                                   PAGE: 2
DATE: 3/1/2021
          The license plate may also be used for applications such as electronic tolling and broadcasting
          emergency alerts.8

          Digital license plates are currently available in California and Arizona , and 11 other states are in various
          stages of adoption. 9 Depending on the type of digital license plate, prices start at $499 plus $55 per
          year or $17.95 per month with a 36-month agreement. 10

          Effect of the Bill

         The bill repeals DHSMV's current unused authority to conduct a pilot program to evaluate the designs,
         concepts, and technologies of alternative license plates. The bill creates s. 320.08069, F.S., to
         establish the Digital License Plate Pilot Program within DHSMV to evaluate the design, concept, and
         technologies available for digital license plates and to determine the feasibility of digital license plates.

         The bill defines the term "digital license plate" as an electronic display that is designed to display the
         information required to be included on a physical license plate and be placed on a motor vehicle
         registered under Ch. 320, F.S., in lieu of a physical license plate.

         The bill provides that except as otherwise specified in the bill, or a DHSMV rule adopted to implement
         the pilot program, a digital license plate is subject to Florida's laws applicable to a physical license
         plate; however, digital license plates are exempt from the statutory design requirements.

         Beginning July 1, 2021 , DHSMV must administer the pilot program, which is limited to the installation of
         digital license plates on government-owned motor vehicles. By July 1, 2022, DHSMV must allow any
         motor vehicle registered in Florida to be equipped with a digital license plate in lieu of a physical license
         plate.

         The bill authorizes DHSMV to contract with one or more digital license plate providers 11 for the
         issuance of digital license plates, including any services related to the issuance of digital license plates.

         Under the bill, DHSMV may authorize the display of the motor vehicle's validation on each digital
         license plate in lieu of the validation sticker. The validation must display the owner's birth month, the
         license plate number, and the year of expiration or appropriate renewal period if the owner is not a
         natural person. The validation must be displayed in the upper right corner of the digital plate.

         The bill also provides that DHSMV may authorize the use of a digital license plate for electronic toll
         collection 12 or to display a parking permit.

         Further, DHSMV may establish procedures for displaying the following information on a digital license
         plate:
             • An emergency alert, including an alert regarding a missing child or missing adult;
             • Static logo displays, including displays for fleet license plates, digital versions of specialty
                 license plates, and special license plates for the Governor and federal and state legislators; and
             • Other displays that DHSMV, in consultation with law enforcement agencies, determines are in
                the interest of public safety.

         DSHMV must distribute $4 from the sale of each digital license to PRIDE, Inc. on a quarterly basis.

8
   https://reviver.com/shop/ (last visited February 26, 2021 ).
9
   Reviver Announces Florida has Filed legislation Authorizing its Digital License Plates. https://www.pmewswire.com/news-
releases/reviverannounces-florida-has-filed-legislation-authorizing-its-digital-license-plates-30122483 8.html, February 9, 2021 . (last
visited February 26, 2021 ).
10
    https://reviver.corn/shop/ (last visited February 26, 2021 ).
11
    The bill defines the term "digital license plate provider" as a person or an entity engaged in the business of providing digital license
plate hardware and services to motor vehicles.
12
    Electronic toll collection is administered by the Department of Transportation and various other tolling agencies.
STORAGE NAME : h0695.TIE.D0CX                                                                                                       PAGE: 3
DATE : 3/1/2021
        Under the bill, a digital license plate must:
           • Meet the requirements and specifications required above;
           • Include the same information required to be included on a physical license plate and legibly
               display that information at all times and in all light conditions; however, the digital license plate
               may display the information in a smaller type size when the motor vehicle is parked; and
           • Have wireless connectivity capability.

        A digital license plate provider with whom DHSMV contracts must:
            • Maintain an inventory of digital license plates in this state.
            • Make available a digital version of each specialty license plate authorized by DHSMV; and
            • If a digital license plate displays a validation to reflect the current registration period for the
                motor vehicle, and upon DHSMV request, suspend the display of the validation or indicate in the
                digital license plate that the motor vehicle's registration has expired.

        The bill authorizes DHSMV to adopt rules to implement the digital license plate pilot program.

        The bill creates s, 320.07(7), F.S., to provide that the owner of a digital license plate is not subject to
        the penalties ins. 320.07, F.S ., for failure to display a validation if the vehicle was operated in
        compliance with ch . 320, F.S., and any DHSMV rules governing the placement of digital license plates
        and registration renewal .

        The bill is effective upon becoming a law.

    B. SECTION DIRECTORY:
       Section 1 Amends s. 320.06, F.S., relating to registration certificates, license plates, and validation
       stickers.

       Section 2 Amends s. 320.07, F.S., relating to registration, renewal required.

       Section 3 Creates s. 320.08069, F.S., relating to the Digital License Plate Pilot Program .

       Section 4 Provides that the bill is effective upon becoming a law.


                         11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           The bill is not clear as to whether or not DHSMV will continue collecting license plate fees from
           purchasers of digital license plates. If purchasers of digital license plates are not subject to existing
           license plate fees, there may be a negative impact to the various funds those fees are deposited
           into.

       2. Expenditures:
           According to DHSMV, the bill should have an insignificant impact on it, with the expectation that
           programming and implementation will be conducted between the digital license plate provider and
           the consumer. Therefore, DSHMV does not plan on programming connectivity between the




STORAGE NAME: h0695.TIE.DOCX                                                                                   PAGE: 4
DATE : 3/1/2021
             proposed digital license plates and DSHMV systems and will continue with its current procedures
             for original and renewal license plate transactions. 13

     B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

         1. Revenues:
             The bill does not appear to impact local government revenues.

         2. Expenditures:
             The bill does not appear to impact local government expenditures.

     C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
         Digital license plate providers may see additional revenues associated with the pilot program.

     D. FISCAL COMMENTS:
         None.


                                                      Ill. COMMENTS

     A. CONSTITUTIONAL ISSUES:

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

        2. Other:
            None.

     B. RULE-MAKING AUTHORITY:
        The bill authorizes DHSMV to adopt rules to implement the Digital License Plate Pilot Program .

     C. DRAFTING ISSUES OR OTHER COMMENTS:
        The bill, as currently drafted:
             •   Is titled as a pilot program, but requires the digital license plate to be available to all motor
                 vehicles by July 1, 2022.
             •   May need to be clarified as to how a motor vehicle owner would obtain a digital license plate.
             •   May need to be clarified as to how DSHMV will obtain the $4 per digital license plate distributed
                 to PRIDE.
            •    May need to be clarified that all other statutory fees associated with motor vehicle registrations
                 and renewals are applicable to the purchase of a digital license plate.

                            IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
     Not applicable.




13
  Email from Kevin Jacobs, Legislative Affairs Director, Department of Highway Safety and Motor Vehicles, HB 695. (February 25,
2021).
STORAGE NAME: h0695 .TIE.D0CX                                                                                           PAGE: 5
DATE: 3/1/2021
FLORIDA                       H   O   U   S   E      0   F      REPRESENTATIVES




        HB 695                                                                2021




 1                                         A bill to be entitled
 2               An act relating to the Digital License Plate Pilot
 3               Program; amending s. 320.06, F.S.; deleting provisions
 4               relating to the authority of the Department of Highway
 5               Safety and Motor Vehicles to conduct a pilot program
 6               to evaluate the designs, concepts, and technologies
 7               for alternative license plates; amending s. 320.07,
 8               F.S.; exempting owners of digital license plates from
 9               certain penalties; creating s. 320.08069, F.S.;
10               creating the Digital License Plate Pilot Program
11               within the department; providing the purpose of the
12               program; defining terms; providing applicability;
13               requiring the department to begin administering the
14               program on a specified date; authorizing the
15               department to contract with digital license plate
16               providers; providing additional authorizations to the
17               department relating to the pilot program; providing
18               for the distribution of fees from the sale of digital
19               license plates; specifying requirements for digital
20               license plates and for digital license plate
21               providers; authorizing the department to adopt rules;
22               providing an effective date.
23
24      Be It Enacted by the Legislature of the State of Florida:
25

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                                                                             hb0695-00
FLORIDA                       H   O    U   S   E     0    F      REPRESENTATIVES




        HB695                                                                                 2021




26              Section 1.          Subsection (5)            of section 320.06,   Florida
27      Statutes, is amended to read:
28              320.06       Registration certificates, license plates, and
29      validation stickers generally.-
30               (5)    The department may conduct a pilot program to evaluate
31      the designs, concepts, and technologies for alternative license
32      plates . For purposes of the pilot program, the department shall
33      investigate the feasibility and use of alternative license plate
34      technologies and the long term cost iFRpact to the eonsUIBer. The
35      pilot program shall be limited to license plates that are used
36      on govcrnmcn t m:ned mot or vehicles as des er ib ed in s . 3 2 0. 0 6 5 § •
37      Such license plates are exempt from the requirements in
38      paragrapb (3) (a).
39              Section 2.         Subsection (7)             is added to section 320.07,
40      Florida Statutes, to read:
41              320.07       Expiration of registration; renewal required;
42      penalties.-
43               (7)    An owner of a digital license plate as described ins.
44      320.08069 is not subject to the penalties of this section for
45      failure to display a validation if the vehicle was operated in
46      compliance with this chapter and any rules adopted by the
47      department governing the placement of digital license plates and
48      registration renewal.
49              Section 3.         Section 320.08069, Florida Statutes,               is created
50      to read:

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                                                                                             hb0695-00
FLORIDA                       H   O   U   S   E      0     F      REPRESENTATIVES




        HB 695                                                                     2021




51               320.08069        Digital License Plate Pilot Program.-There is
52      created within the department the Digital License Plate Pilot
53      Program. The purpose of the program is to evaluate the design,
54      concepts, and technologies available for digital license plates
55      and to determine the feasibility of digital license plates.
56               (1)    DEFINITIONS.-As used in this section, the term:
57               (a)    "Digital license plate" means an electronic display
58      that is designed to:
59               1.    Display the information required to be included on a
60      physical license plate; and
61               2.    Be placed on a motor vehicle registered under this
62      chapter in lieu of a physical license plate.
63               (b)    "Diqital license plate provider" means a person or an
64      entity engaged in the business of providing digital license
65      plate hardware and services to motor vehicle owners.
66               (2)    APPLICABILITY.-Except as otherwise provided by this
67      section or a rule adopted under this section, a digital license
68      plate issued under this section is subject to the laws of this
69      state applicable to a physical license plate; however , digital
70      license plates issued under this section are exempt from s.
71      320.06(3)(a).
72               (3)    DIGITAL LICENSE PLATE PILOT PROGRAM.-
73               (a)    Beginning July 1, 2021, the department shall
74      administer the pilot program. The pilot program must be limited
75      to installation and use of digital license plates on government-

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                                                                                  hb0695-00
FLORIDA                        H   O    U   S   E     0    F     REPRESENTATIVES




         HB695                                                                  2021




 76      owned motor vehicles as described ins. 320.0655.
 77               (b)    By July 1, 2022, the department shall allow a motor
 78      vehicle registered under this chapter to be equipped with a
 79      digital license plate in lieu of a physical license plate issued
 80      under s. 320.06.
 81               (c)    The department may contract with one or more digital
 82      license plate providers for the issuance of digital license
 83      plates, including any services related to the issuance of
 84      digital license plates.
 85               (d)    The department may authorize the display of the motor
 86      vehicle's validation o n each digital license plate in lieu of
 87      the validation sticker. The validation must display the owner's
 88      birth month, the license plate number, and the year of
 89      expiration or a p prop riate renewal period if the owner is not a
 90      natural person. The validation must be displayed in the upper
 91      rig ht cor ner of the digital plate.
 92               (e)    The department may authorize the use of a digital
 93      license plate for electronic toll collection or to display a
 94      p a rking p ermit .
 95               (f)    The department ma y establish procedures for displaying
 96      the following information on a digital license plate:
 97              1.     An emergency alert or other public safety alert issued
 98      b y a g overnmental entit y , including an alert p u rsuant to s.
 99      937.021;
100              2.     Static logo displays, including unique displays for

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FLORIDA                        H   O   U   S   E      0   F      REPRESENTATIVES




         HB 695                                                                 2021




101      fleet license plates, digital versions of specialty license
102      plates, and special license plates for the Governor and federal
103      and state legislators; and
104               3.    Other displays that the department, in consultation
105      with law enforcement agencies, determines are in the interest of
106      public safety.
107               (g)    The department shall distribute $4 from the sale of
108      each digital license plate to the nonprofit corporation
109      specified under s. 946.504 on a quarterly basis.
110               (4)    DIGITAL LICENSE PLATE REQUIREMENTS.-A digital license
111      plate issued under this section must:
112               (a)    Meet the specifications and requirements adopted under
113      subsection ( 3) ;
114               (b)    Include the same information required to be included
115      on a physical license plate and legibly display that information
116      at all times and in all light conditions; however, the digital
117      license plate may display the information in a smaller type size
118      when the motor vehicle is parked; and
119               (c)    Have wireless connectivity capability.
120               (5)    DIGITAL LICENSE PLATE PROVIDERS.-A digital license
121      plate provider with whom the department contracts shall:
122               (a)    Maintain an inventory of the digital license plates
123      issued by the digital license plate provider in this state;
124               (b)    Make available a digital version of each specialty
125      license plate authorized by the department; and

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         HB 695                                                                  2021




126               (c)    If a digital license plate displays a validation,
127      promptly update the display of the validation to reflect the
128      current registration period for the motor vehicle and, upon
129      request of the department, suspend the display of the validation
130      or indicate on the digital license plate that the registration
131      for the motor vehicle has expired.
132               (6)    RULEMAKING.-The department may adopt rules to
133      implement this section.
134               Section 4.        This act shall take effect upon becoming a law.




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                                                                                hb0695-00
       TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                           HB 695 by Rep. Duran
                 DIGITAL LICENSE PLATE PILOT PROGRAM

                             AMENDMENT SUMMARY
                                MARCH 3, 2021


Amendment 1 by Rep. Duran(# 641741)
  • Clarifies that a customer must first obtain a physical license plate from the
    Department of Highway Safety and Motor Vehicles (DHSMV) prior to obtaining a
    digital license plate.
  • Clarifies that a purchaser of a digital license plate is required to pay all statutorily
    required motor vehicle fees applicable to his or her registration and accordingly
    removes the requirement that DHSMV send $4 to PRIDE for every digital license
    plate sold.
  • Requires the digital license plate provider's contract with DHSMV to contain
    provisions governing the protection of personal and motor vehicle registration
    data obtained by the provider in the performance of its services.
  • Clarifies that the use of a digital license plate for toll collection may be authorized
    only if such use has been approved by the Department of Transportation or
    appropriate toll authority.
  • Clarifies provisions regarding the use of specialty and special license plates as
    digital license plates.
                                                     COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                              Bill No. HB 695   (2021)
       Amendment No. 1




               COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                               (Y/N)
       ADOPTED AS AMENDED                    (Y/N)
       ADOPTED W/0 OBJECTION                 (Y/N)
       FAILED TO ADOPT                       (Y/N)
       WITHDRAWN                             (Y/N)
       OTHER


 1     Committee/Subcommittee hearing bill:               Tourism, Infrastructure &
 2     Energy Subcommittee
 3     Representative Duran offered the following:
 4
 5          Amendment (with title amendment)
 6             Remove lines 49-133 and insert:
 7             Section 3.        Section 320.08069, Florida Statutes, is created
 8     to read:
 9             320 . 0 8 069    Di g ital License Plate Pilot Program.-There is
10     created within the department the Digital License Plate Pilot
11     Pr og ram. Th e p ur pose of th e program is to eva luate the design,
12     concepts, and technologies available for digital license plates
13     and to determine the feasibilit y of digital license plates .
14             (1)    DEFINITIONS.-As used in this section, the term:
                      11
15             (a)         Digital license plate II means an electronic displa y
16     that is designed to:

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                                            Page 1 of 6
                                            COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                     Bill No. HB 695    (2021)
       Amendment No. 1



17          1.     Display the information required in this chapter to be
18     included on a physical license plate; and
19          2.     Be placed on a motor vehicle registered under this
20     chapter in lieu of a physical license plate.
21           (b)    "Digital license plate provider" means a person or an
22     entity enga ged in the business of providing digital license
23     plate hardware and services to motor vehicle owners.
24           (2)   APPLICABILITY.-Except as otherwise provided by this
25     section or a rule adopted under this section, a digital license
26     plate issued under this section is subject to the laws of this
27     state applicable to a physical license plate; however, digital
28     license p lates issued under this section are exempt from s.
29     320.06(3) (a).
30          (3)    DIGITAL LICENSE PLATE PILOT PROGRAM.-
31          (a)    Beginning July 1, 2021, the department shall
32     administer the program. The program must be limited to
33     installation and use of digital license plates on government-
34     owned motor vehicles as described ins. 320.0655.
35          (b )   By Ju l y 1 , 2 022, the department shall allow any motor
36     vehicle registered under this chapter to be equipped with a
37     digital license plate in lieu of a physical license plate issued
38     under s. 320.06. How eve r, the purchaser of a digital license
39     plate must first obtain a physical license plate from the
40     department before obtaining a digital license plate from a
41     digital license pl ate provider.

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                                     Page 2 of 6
                                             COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                       Bill No. HB 695    (2021)
       Amendment No. 1



42           (c)    The department may contract with one or more digital
43     license plate providers for the issuance of digital license
44     plates, including any services related to the issuance of
45     digital license plates. The contract shall include provisions
46     governing the protection of personal and motor vehicle
47     registration data obtained by a digital license plate provider
48     in the performance of its services.
49           (d)    The department may a u thorize the display of the motor
50     vehicle's validation on each digital license plate in lieu of
51     the validation sticker. The validation must display the owner's
52     birth month, the license plate number, and the year of
53     expiration or appropriate renewal period if the owner is not a
54     natural person. The validation must be displa yed in the upper
55     right corner of the digital license plate.
56          (e)     The department may aut horize the use of a digital
57     license plate for electronic toll collection, if such use has
58     been approved by the Department of Transportation or other
59     approp r iate tol l ing authority , or to di splay a parking permit.
60          (f)     The department may establish procedures for displaying
61     the following information on a digital license plate:
62          1.     An emergency alert or other public safety alert issued
63     by a governmental entity, including an alert pursuant to s.
64     937.021;
65          2.     Static l ogo disp l a ys , including unique displays for
66     fleet license plates, digital versions of specialty license
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                                      Page 3 of 6
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 695    (2021)
       Amendment No. 1



67     plates as described ins. 320.08058, and special license plates
68     for military service authorized ins. 320.089, and for the
69     Governor and federal and state legislators as authorized ins.
70     320. 0807; and
71          3.     Other displays that the department, in consultation
72     with law enforcement agencies, determines are in the interest of
73     public safety.
74           (4)    DIGITAL LICENSE PLATE REQUIREMENTS.-A digital license
75     plate issued under this section must:
76           (a)   Meet the specifications and requirements adopted under
77     subsection ( 3) ;
78           (b)    Include the same information required to be included
79     on a physical license plate and legibly display that information
80     at all times and in all light conditions; however, the digital
81     license plate may display the information in a smaller type size
82     when the motor vehicle is parked ; and
83           (c)   Have wireless connectivity capability.
84           (5)   DIGITAL LICENSE PLATE PROVIDERS.-A digital license
85     plate provider with whom the department contracts shall:
86           (a)   Maintain an inventory of digital license plates issued
87     in this state by the digital license plate provider;
88           (b)   Make available a digital version of each specialty
89     license plate authorized by the department; and
90           (c)   If a digital license plate displays a validation,
91     promptly update the display of the validation to reflect the
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                                     Page 4 of 6
                                            COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                      Bill No. HB 695     (2021)
        Amendment No. 1



 92     current registration period for the motor vehicle and, upon
 93     request of th e depa r tment , suspend t h e display o f the validation
 94     or indicate on the digital license plate that the registration
 95     for the motor vehicle has expired.
 96          (6 )   DIGITAL LICENSE PLATE CONSUMERS.-A consumer who
 97     chooses to purchase a digital license plate must purchase a
 98     digital license plate directly from a digital license plate
 99     provider. In addition to an y fees associated with the purchase
100     of a digital license plate, the consumer is also responsible for
101     paying to the department all a pp licable motor vehicle fees in
102     this chapter, including any annual use fees pursuant to s.
103     320.08046 associated with any specialty license plate the
104     consumer wishes to display on the digital license plate.
105          (7)    RULEMAKING.-The department may adopt rules to
106     implement this section.
107
108
109
110                         T I T L E   A ME N D ME N T
111          Remove lines 9-21 and insert:
112     certain penalties; creating s. 320.08069, F.S.; creating the
113     Digital License Plate Pilot Program within the department;
114     providing the purpose of the program; defining terms; providing
115     applicability; requiring the department to begin administering
116     the program on a specified date; authorizing the department to

      641741 - h0695-line 49.docx
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                                     Page 5 of 6
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 695   (2021)
        Amendment No. 1



117     contract with digital license plate providers; providing
118     additional authorizations to the department relating to the
119     program; specifying requirements for digital license plates and
120     for digital license plate providers; providing requirements for
121     consumers of digital license plates; authorizing the department
122     to adopt rules;




      641741 - h0695-line 49.docx
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                                    Page 6 of 6
I
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""-I
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                                     HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#:      HB 753   Broadband Internet Deployment
SPONSOR(S): Clemons
TIED BILLS:       IDEN./SIM. BILLS:

     REFERENCE                                                       ACTION                    ANALYST            STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

     1) Tourism, Infrastructure & Energy Subcommittee                                          Johnso

     2) Infrastructure & Tourism Appropriations
        Subcommittee

     3) Commerce Committee


                                                         SUMMARY ANALYSIS
Broadband Internet Service has become an essential component of daily life. However, some parts of Florida
are still do not have access to broadband Internet service. In order to address this issue, various federal
programs are available to encourage the expansion of broadband Internet access. While the state has
established the Office of Broadband (Office) within the Department of Economic Opportunity (DEO) to facilitate
the expansion of broadband Internet service, the state currently does not have any programs or funding
mechanisms to increase the availability of such service in the state.

The bill creates the Florida Broadband Opportunity Program within the Office to award grants to applicants who
seek to expand broadband Internet service to unserved and underserved areas of the state. The bill:
   • Provides that grants are to be used for the installation and deployment of infrastructure that supports
        broadband Internet service.
            o Authorizes certain entities to apply for grants, including corporations, not-for-profits, political
                subdivisions, rural electric cooperatives, and Indian tribes.
            o Provides application requirements.
            o Authorizes existing broadband Internet providers to challenge grant applications if service is
                already provided or is planned in the area at issue.
            o Provides criteria for evaluating applications.
            o Provides that the grant award combined with other government funding may not fund more than
                50 percent of the project's total costs.
            o Requires an annual report to the Governor and Legislature and requires certain information to
                be provided in the report.
            o Requires the Office's agreement with a grant recipient to contain certain provisions, including
                sanctions for failure to perform, which may result in grant funds being returned to the Office.
   • Reallocates 50 percent of the revenues currently allocated to the M-CORES program to the Office for
        purposes of administering the grant program.
   • Defines the terms "broadband Internet service" and "unserved" and revises the definition of
        "underserved."
   • Grants DEO rulemaking authority regarding the Office and the grant program.
   • Requires the Department of Transportation to consult with the Office regarding the use of certain
        turnpike funds authorized for broadband infrastructure projects in rural areas of opportunity and that the
        use of such funds be consistent with the office's strategic plan.

The Revenue Estimating Conference has yet to evaluate this bill; however, based upon 2019 information from
the creation of M-CORES, the bill transfers approximately $66.3 million in revenue from the State
Transportation Trust Fund at DOT to DEO for the Program and a similar amount in future fiscal years.

The bill has an effective date of July 1, 2021.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0753.TIE .D0CX
DATE: 3/1/2021
                                                         FULL ANALYSIS

                                                 I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Current Situation

         Broadband Internet Deployment
         Fixed and mobile broadband Internet services provide access to numerous employment, education,
         entertainment, and health care opportunities. 1 Communities that lack broadband access can have
         difficulty attracting new capital investment. While Florida's urban areas are served at a fixed broadband
         coverage rate of 98 percent, its rural areas are served at a rate of 78.6 percent. 2 This disparity is
         caused primarily by high per-unit construction costs required to build broadband infrastructure across
         larger swaths of rural geographic areas. 3

         The recent COVID-19 pandemic has enhanced the need for broadband Internet access in everyday
         life. Studies indicate that broadband Internet access matters for jobs, income, business relocation, civic
         engagement, and health. 4 In addressing broadband Internet access issues, states have established
         broadband offices and created special funding programs to offer financial incentives for broadband in
         lower density areas. 5 Additionally, as schools go online, data indicates that low income households
         disproportionally lack access to broadband Internet service, which puts their children at risk of falling
         behind. 6

         Federal Broadband Initiatives
         In January 2020, the Federal Communications Commission (FCC) established the Rural Digital
         Opportunity Fund (Fund) to fund the deployment of broadband networks in rural America over the next
         decade. The program will consist of two phases. Using data from the FCC's previous mapping efforts,
         the first phase began in 2020 and made available up to $16 billion to target census blocks that are
         wholly unserved with fixed broadband speeds of at least 25 megabits per second (Mbps) downstream
         and 3 Mbps upstream (25/3 Mbps). 7 The winning bidders from the first round under Phase I were
         announced in December 2020, with entities that bid to provide service in Florida receiving over $190
         million over the next 10 years. The FCC is in the process of reviewing documents regarding the winning
         bids. 8




1
  U.S. Federal Communications Commission, 2018 Broadband Deployment Report, at I (Feb. 2, 2018), available at
https://docs.fcc.gov/public/attachments/FCC-18-IOAI.pdf(last visited Feb. 11, 2021).
2
  U.S. Federal Communication Commission, 2021 Broadband Deployment Report at 63. (Jan. 19, 2021), available at
https://docs.fcc.gov/public/attachments/FCC-2 l- l 8A l.pdf (last visited Feb. 12, 2021 ). For purposes of this data, 'fixed broadband
services' are measured at 25 megabits per second downstream and 3 megabits per second upstream.
3
  American Broadband Initiative, Milestones Report, at 11 (Feb. 13, 2019), available at
https://broadbandusa.ntia.doc.gov/sites/default/files/resource-files/american_broadband_initiative_milestones_report_feb_ 2019_ O.pdf
(last visited Feb. 12, 2021 ).
4
  CO VJD-19 lockdowns expose the digital have-nots in rural areas - here's which policies can get them connected (Sep. 2, 2020).
https ://theconversation. com/covid- I 9-lockdowns-expose-the-digital-ha ve-nots-in-rural-areas-heres-wh ich-po Iicies-can-get-them-
connected-144324 (last visited Feb. 12, 2021).
5 Id.
6
  New American Economy Research Fund, Back to School: A Look at the Internet Access Gap. (Aug. 6, 2020).
https://research.newamericaneconomy.org/report/intemet-access-covid-19/ (last visited Feb. 12, 2021 ).
7
  U.S. Federal Communications Commission, FCC Launches $20 Billion Rural Digital Opportunity Fund,
https://www.fcc.gov/document/fcc-1aunches-20-billion-rural-digital-opportunity-fund-O (last visited Feb. 11, 2021 ).
8
  U.S. Federal Communications Commission: https://www.fcc.gov/document/auction-904-winning-bidders (last visited February 22,
2021).
STORAGE NAME: h0753.TIE.D0CX                                                                                                  PAGE: 2
DATE: 3/1/2021
         The FCC is in the process of adopting more accurate broadband deployment data, including whether
         broadband Internet service is available to residential and/or business customers in a specific area. 9
         Using this more precise data, the second phase of FCC grants will make available at least $4.4 billion
         to target geographic areas where some locations lack access to 25/3 Mbps broadband. 10

         In addition, the U.S. Department of Agriculture (USDA), through its Reconnect Program, offers federal
         loans, grants, and loan/grant combinations to facilitate broadband deployment to rural areas without
         access to sufficient broadband service. 11 Eligible entities include cooperatives and non-profits, for-profit
         companies, and state and local governments and their agencies and political subdivisions. Applicants
         requesting a grant or a loan/grant combination under the Reconnect Program must submit a scoring
         sheet by which USDA may analyze nine separate evaluation criteria to score the application. One of
         the evaluation criteria is whether the proposed project is in a state with a broadband plan that has been
         updated within the previous five years. 12

         Florida Broadband Program
         In 2009, the Legislature authorized the Department of Management Services (OMS) to work
         collaboratively with Enterprise Florida, state agencies, local governments, private businesses, and
         community organizations to:
             • Assess the needs for broadband Internet service and develop data and maps that provide a
                 baseline assessment of the availability and speed of broadband service throughout Florida;
             • Create a strategic plan to increase use of broadband Internet service in Florida;
             • Build local technology planning teams representing, among others, libraries, schools, colleges
                 and universities, local health care providers, private businesses, community organizations,
                 economic development organizations, local governments, tourism, parks and recreation, and
                 agriculture; and
             • Encourage the use of broadband Internet service, especially in rural, unserved, and
                 underserved areas of the state through grant programs.

         In 2020, the Legislature passed CS/HB 969, 13 designating DEO as the lead state agency to facilitate
         the expansion of broadband Internet service in the state. The bill created the Florida Office of
         Broadband (Office) within DEO's Division of Community Development for purposes of developing,
         marketing, and promoting broadband Internet service in the state.

         CS/HB 969 (2020) maintained most of the requirements previously imposed on OMS and imposed
         them instead on the new office. Specifically, the Office must:
            • Create a strategic plan for increasing the use of broadband Internet service in the state which
                must include a process to review and verify public input regarding transmission speeds and
                availability of broadband Internet service throughout the state;
            • Build local technology planning teams representing, among others, libraries, schools, colleges
                and universities, local health care providers, private businesses, community organizations,
                economic development organizations, local governments, tourism, parks and recreation, and
                agriculture;
            • Encourage the use of broadband Internet service, especially in rural, unserved, and
                underserved 14 areas of the state through grant programs; and

9
   U.S. Federal Communications Commission, Press Release, FCC Takes Next Stem to Ensure Collection of More Precise and
Accurate Broadband Mapping Data. January 19, 2021. https://docs.fcc.gov/public/attachments/DOC-36938 IA l.pdf (last visited Feb.
15, 2021).
10
   U.S. Federal Communications Commission, FCC Launches $20 Billion Rural Digital Opportunity Fund,
https://www.fcc.gov/document/fcc-launches-20-billion-rural-digital-opportunity-fund-O (last visited Feb. 11, 2021).
11
   USDA, Broadband, https://www.usda.gov/broadband (last visited Feb. 11, 2021).
12 Id.
13
  Ch. 2020-26, L.O.F.
14
  Section 364.0l 35(2)(d), F.S., defines the term "underserved" to mean a geographic area of this state in which there is no provider of
broadband Internet service that offers a connection to the Internet with a capacity for transmission at a consistent speed of at least I 0
Mbps downstream and at least I Mbps upstream
STORAGE NAME: h0753.TIE.D0CX                                                                                                      PAGE: 3
DATE: 3/1/2021
              •   Monitor, participate in, and provide input in proceedings of the FCC and other federal agencies
                  related to the geographic availability and deployment of broadband Internet service as
                  necessary to ensure that Florida's rural, unserved, and underserved areas are best positioned
                  to benefit from federal and state broadband deployment programs. 15

         For these purposes, CS/HB 969 (2020) authorized DEO to apply for and accept federal grant funds,
         enter into necessary or useful contracts, and establish any committee or workgroup to administer the
         program. 16

         CS/HB 969 (2020) provided that up to $5 million of the funds transferred to Florida's Turnpike
         Enterprise 17 for the Multi-use Corridors of Regional Economic Significance (M-CORES) program may
         be used for projects that assist in the development of broadband infrastructure within or adjacent to a
         multiuse corridor. The bill required that priority be given to broadband infrastructure projects located in
         a rural area of opportunity 18 that is adjacent to a multiuse corridor. 19

         Multi-Use Corridors of Regional Economic Significance Program
         In 2019, the Legislature passed CS/SB 7068, creating M-CORES within the Department of
         Transportation (DOT). 20 M-CORES' purpose, as stated in the law, is to revitalize rural communities,
         encourage job creation, and provide regional connectivity while leveraging technology, enhancing
         quality of life and public safety, and protecting the environment and natural resources. Its objective is to
         advance the construction of regional corridors that are intended to accommodate multiple modes of
         transportation and multiple types of infrastructure. Its list of intended benefits includes addressing
         broadband connectivity. 21

         In creating M-CORES, the Legislature took that portion of motor vehicle license tax 22 allocated to the
         General Revenue Fund and reallocated it to the State Transportation Trust Fund (STTF). Funds that
         result from increased revenues to the STTF made in the M-CORES legislation must be used as follows:
             • For the 2019-2020 fiscal year, $45 million must be retained in the STTF, and the remaining
                  funds must be transferred to the General Revenue Fund.
             • For the 2020-2021 fiscal year, $90 million must be retained in STTF, and the remaining funds
                  must be transferred to the General Revenue Fund.
             • For the 2021-2022 fiscal year and each fiscal year thereafter, all of the funds must be retained
                  in the STTF. 23

         Effect of the Bill

         The bill establishes the Broadband Opportunity Program (Program) within the Office. The Program's
         purpose is to award grants to applicants who seek to expand access to broadband Internet service 24 in




15
   S. 364.0135(4), F.S.
16
   S. 364.0135(5), F.S.
17
   The Florida Turnpike Enterprise is part of the Department of Transportation.
18
   Section 288.0656, F.S., defines a rural area of opportunity (RAO) as a rural community, or region composed of rural communities,
designated by the Governor, that has been adversely affected by an extraordinary economic event, severe of chronic distress, or natural
disaster that presents a unique economic development opportunity of regional impact. RAO's are eligible for assistance and other
support through the Rural Economic Development Initiative, administered by DEO.
19
   S. 339.0801(2)(b), F.S.
2
 °Ch. 2019-43, L.O.F.
21
   S. 337.2278(l)(d), F.S.
22
   Motor vehicle license taxes are established ins. 320.08, F.S.
23
   S. 338.2278(7), F.S.
24
   The bill defines the term "broadband Internet service" as any service that provides access to the Internet with a capacity for
transmission at a consistent speed of at least 25 megabits per second download and 3 megabits per second upload.
STORAGE NAME: h0753.TIE.D0CX                                                                                                   PAGE: 4
DATE: 3/1/2021
         unserved 25 and underserved 26 areas of the state. The Office must administer and act as fiscal agent for
         the Program and is responsible for receiving and reviewing applications and awarding grants. Funding
         for the Program comes from a reallocation 50 percent of the funds from the increased revenues to the
         STTF derived from the M-CORES Program, for fiscal years 2021-2022 and each fiscal year thereafter.
         Prior to M-CORES, these funds were allocated to the General Revenue Fund from motor vehicle
         license taxes. 27 The bill transfers these funds to the State Economic Enhancement and Economic
         Development Trust Fund within DEO for purposes of Program grants.

         Grants must fund the installation and deployment of infrastructure that supports broadband Internet
         service.

         Applicants eligible for grant awards include:
            • Corporations, nonprofit corporations, limited liability companies, general partnerships, and
                limited partnerships. 28
            • Political subdivisions.
            • Rural electric cooperatives and their broadband affiliates.
            • Indian tribes.

         An eligible applicant must submit a grant application to the Office, which must include the following
         information:
             • A description of the project area;
             • A description of the kind and amount of broadband Internet service infrastructure that is
                 proposed to be deployed;
             • Evidence demonstrating the unserved or underserved nature of the project area;
             • The number of households and businesses that would have new access to broadband Internet
                 service, or that would have upgraded broadband Internet service as a result of the grant;
             • A list of significant community institutions that would benefit from the grant;
             • The total cost of the project and the timeframe in which it would be completed;
             • A list identifying sources of funding or in-kind contributions that would supplement any awarded
                 grant; and
             • Any other information required by the Office.

         At least 30 days before the first day that grant applications may be submitted each fiscal year, the
         Office must publish on its website the specific criteria and quantitative scoring system it will use to
         evaluate or rank applications and award grants. The criteria and quantitative scoring system must
         include the criteria listed in the bill, as discussed below.

         Within three business days after the close of the grant application process, the Office must publish on
         its website, from each application submitted, the proposed unserved and underserved areas to be
         served and the proposed broadband Internet speeds for the areas to be served.

         A broadband Internet service provider that provides existing service in or adjacent to a proposed
         project area may submit to the office, within 45 days after publication of the information, a written
         challenge to an application. The challenge must contain information demonstrating that:
             • The provider currently provides broadband Internet service to retail customers within the
                 proposed project area;
             • The provider has begun construction to provide broadband Internet service to retail customers
                 within the proposed project area; or

25
   The bill defines the term "unserved" as a geographic area of the state without access to Internet service with a connection speed of
at least 10 megabits per second download and 1 megabit per second upload.
26
   The bill amends the existing definition of the term "underserved" to mean a geographic area of the state without access to Internet
service with a connection speed ofat least 25 megabits per second download and 3 megabits per second upload.
27
   Sees. 320.08, F.S. (2018).
28
   These entities must be organized under the laws of the state or otherwise authorized to transact business in the state.
STORAGE NAME: h0753.TIE .D0CX                                                                                                    PAGE: 5
DATE: 3/1/2021
                 •    The provider commits to providing broadband Internet service to retail customers within the
                      proposed project area within the timeframe proposed by the applicant.

            Within three business days after the submission of a written challenge, the Office must notify the
            applicant, in writing, of the challenge.

            The Office must evaluate each challenge. If the Office determines that the provider currently provides,
            has begun construction to provide, or commits to provide broadband Internet service in the proposed
            project area, the office may not fund the challenged project.

            If the Office denies funding to an applicant as a result of a broadband Internet service provider's
            challenge and the provider ultimately does not fulfill its commitment to provide broadband Internet
            service in the unserved or underserved area, the Office may not consider another challenge from the
            provider for the next grant cycle, unless the Office determines the failure to fulfill the commitment was
            due to circumstances beyond provider's control.

            In evaluating grant applications and awarding grants, the Office must prioritize applications proposing
            to serve areas identified by the Office as unserved.

            In evaluating grant applications and awarding grants, the Office may prioritize applications that:
                • Propose to serve areas identified by the Office as underserved;
                • Offer new or substantially upgraded broadband Internet service to important community
                    institutions including libraries, educational institutions, public safety facilities, and healthcare
                    facilities;
                • Facilitate the use of telemedicine and electronic health records;
                • Serve economically distressed areas of the state, as measured by indices of unemployment,
                    poverty, or population loss that are significantly greater than the statewide average;
                • Provide for scalability to transmission speeds of at least 100 megabits per second download
                    and 10 megabits per second upload;
                • Include a component to actively promote the adoption of the newly available broadband Internet
                    services in the community;
                • Provide evidence of strong support for the project from citizens, government, businesses, and
                    institutions in the community;
                • Provide access to broadband Internet service to the greatest number of unserved or
                    underserved households and businesses;
                • Leverage greater amounts of funding for the project from other private and public sources; or
                • Demonstrate consistency with the Office's strategic plan. 29

            The Office must endeavor to award grants to qualified applicants in all regions of the state. The Office
            may not award any grant to an otherwise eligible grant applicant to provide broadband Internet service
            in a project area for which any other federal funding has been awarded.

            A grant may not be used to serve any retail end user that already has access to broadband Internet
            service. A grant, when combined with any other state or local funds, may not fund more than 50
            percent of the total cost of a project. A single project may not be awarded a grant in excess of $5
            million.

            For each grant awarded, the Office must enter into an agreement with the applicant. The agreement
            must specify the total amount of the grant, performance conditions that must be met to obtain the grant,
            the schedule of payment, and sanctions that would apply for failure to meet performance conditions,
            including, but not limited to, requiring the return of grant funds.



29
     The Office has yet to issue its strategic plan.
STORAGE NAME: h0753.TIE.DOCX                                                                                     PAGE: 6
DATE: 3/1/2021
        By January 1, 2023, and each year thereafter, the Office must publish on its website and provide to the
        Governor, the President of the Senate, and the Speaker of the House of Representatives:
           • A list of all grant applications received during the previous year and for each application:
                   o The results of any quantitative weighting or scoring system the Office used to award
                      grants or rank the applications.
                   o The grant amount requested.
                   o The grant amount awarded, if any.
                   o A report on the progress of each grant recipient in acquiring and installing infrastructure
                      that supports the provision of broadband Internet service in the project areas for which
                      the grant was awarded and in securing adoption of such service in each project area.
           • All written challenges during the previous year.

        The bill amends s. 364.0135, F.S., to define terms, incorporate unserved areas in the list of project
        priorities, authorize the Office to administer the Program, and grant the Office rulemaking authority
        relating to the administration of Office and the Program.

        The bill amends s. 339.0801, F.S., to require DOT to consult with the Office to ensure that DOT's
        broadband infrastructure projects are consistent with Office's strategic plan.

        The bill amends s. 364.02, F.S., to provide that the definition of "broadband service" as it relates to the
        regulation of telecommunications service by the Public Service Commission, does not apply to statutory
        provisions in ch. 364, F.S., relating to the Office.

    B. SECTION DIRECTORY:
       Section 1 Amends s. 338.2278, F.S., relating to the Multi-Use Corridors of Regional Economic
       Significance Program.

       Section 2 Amends s. 339.0801, F.S., relating to the allocation of increased revenues derived from
       amendments to s. 319.32(5)(a), F.S., by Ch. 2012.128, L.O.F.

       Section 3 Amends s. 364.02, F.S., providing definitions.

       Section 4 Amends s. 364.0135, F.S., relating to the promotion of broadband adoption and the Florida
       Office of Broadband.

       Section 5 Creates s. 364.0136, F.S., creating the Broadband Opportunity Program .

       Section 6 Provides an effective date of July 1, 2021.


                         II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
            See Fiscal Comments.

       2.   Expenditures:
            See Fiscal Comments




STORAGE NAME: h0753.TIE.DOCX                                                                                PAGE: 7
DATE: 3/1/2021
       B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

            1. Revenues:
                None.

            2. Expenditures:
                None.

       C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
           To the extent that the Program leads to the deployment of broadband Internet service, this may result in
           increased economic activity in areas not served by adequate or any broadband Internet service.
            Broadband Internet providers may see an increase in revenues associated with grants promoting the
            deployment of broadband Internet service.

            The reallocation of funds from the STTF to DEO may cause a delay in some DOT transportation
            projects associated with M-CORES, which are included in DOT's work program.

       D. FISCAL COMMENTS:
           The Revenue Estimating Conference has yet to evaluate this bill; however, based upon 2019
           information from the creation of M-CORES, the bill transfers approximately $66.3 million in revenue
           from the State Transportation Trust Fund at DOT to DEO for the Program and a similar amount in
           future fiscal years. 30


                                                           Ill. COMMENTS

       A. CONSTITUTIONAL ISSUES:

           1. Applicability of Municipality/County Mandates Provision:
              Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
              action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
              raise revenue in the aggregate; or reduce the percentage of state tax shared with counties or
              municipalities.

           2. Other:
               None.

       B. RULE-MAKING AUTHORITY:
           The bill authorizes DEO to adopt rules regarding the administration of the Office and the Broadband
           Opportunity Program.

       C. DRAFTING ISSUES OR OTHER COMMENTS:
           None.


                                IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
       Not applicable.



30
     Florida House of Representatives, 2019 House Bill 7113 Final Bill Analysis. P. 17.
STORAGE NAME: h0753.TIE.DOCX                                                                                   PAGE: 8
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FLORIDA                       H   O    U   S   E      0   F      REPRESENTATIVES




         HB 753                                                               2021



 1                                          A bill to be entitled
 2                An act relating to broadband Internet deployment;
 3                amending s. 338.2278, F.S.; providing for the transfer
 4                of certain funds from the State Transportation Trust
 5                Fund to the State Economic Enhancement and Economic
 6                Development Trust Fund within the Department of
 7                Economic Opportunity; providing for the use of such
 8                funds by the Florida Office of Broadband; amending s.
 9                339.0801, F.S.; requiring the Department of
10                Transportation to consult with the Florida Office of
11                Broadband to ensure specified projects are consistent
12                with a strategic plan; amending s. 364.02, F.S.;
13                providing an exception to the definition of the term
14                "broadband service" for certain purposes; amending s.
15                364.0135, F.S.; adding a cross-reference; revising and
16                providing definitions related to broadband service;
17                revising duties of the Florida Office of Broadband;
18                providing rulemaking authority; creating s. 364.0136,
19                F.S.; establishing the Broadband Opportunity Program
20                within the Florida Office of Broadband in the
21                Department of Economic Opportunity; providing for
22                administration of the program; providing requirements
23                for grant awards; providing for eligibility; providing
24                application requirements; requiring the publication of
25                certain information related to grant applications and

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        HB 753                                                                     2021




26               grant awards on a website; authorizing grant
27               applications to be challenged under certain
28               circumstances; providing procedures for use by the
29               office in evaluating challenges; providing direction
30               for the office in prioritizing funding grants;
31               providing a limit on the amount of individual grants;
32               requiring grant agreements to contain specified
33               conditions; requiring the office to enter into an
34               agreement containing specified information with each
35               grant recipient; requiring the office to publish a
36               specified report annually on its website;
37               requiring a report to the Governor and Legislature
38               with specified information; providing an effective
39               date.
40
41      Be It Enacted by the Legislature of the State of Florida:
42
43               Section 1.         Subsection (7) of section 338.2278, Florida
44      Statutes, is amended to read:
45               338.2278         Multi-use Corridors of Regional Economic
46      Significance Program.-
47               (7)     Funds that result from increased revenues to the State
48      Transportation Trust Fund derived from the amendments to s.
49      320.08 made by chapter 2019-43, Laws of Florida, this act and
50      deposited into the fund pursuant to s. 320.20(5) (a) must be used

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51      as follows:
52               (a)    For the 2019 2020 fiscal year,                       $4§ million shall be
53       retained in the State Transportation Trust Fund, and the
54       remaining funds shall be transferr~ed te the General Revenue
55      Fund.
56               -fa+   For the 2020-2021 fiscal year,                       $90 million shall be
57      retained in the State Transportation Trust Fund, and the
58      remaining funds shall be transferred to the General Revenue
59      Fund.
60               ~+et        For the 2021-2022 fiscal year and each fiscal year
61      thereafter, 50 percent of the funds shall be transferred to the
62      State Economic Enhancement and Economic Development Trust Fund
63      within the Department of Economic Opportunity for use by the
64      Florida Office of Broadband as provided ins. 364.0136, and a-±±
65      ~    the remaining funds shall be retained in the State
66      Transportation Trust Fund.
67               Section 2.        Subsection (2) of section 339.0801, Florida
68      Statutes, is amended to read:
69               339.0801       Allocation of increased revenues derived from
70      amendments to s. 319.32(5) (a) by ch. 2012-128.-Funds that result
71      from increased revenues to the State Transportation Trust Fund
72      derived from the amendments to s. 319.32 (5) (a) made by chapter
73      2012-128, Laws of Florida this act must be used annually, first
74      as set forth in subsection (1) and then as set forth in
75      subsections         (2)-(5), notwithstanding any other provision of law:

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 76               (2) (a)     For each of the 2019-2020, 2020-2021, and 2021-2022
 77       fiscal years, $35 million shall be transferred to Florida's
 78      Turnpike Enterprise, to be used in accordance with Florida
 79      Turnpike Enterprise Law, to the maximum extent feasible for
 80      feeder roads, structures, interchanges, appurtenances, and other
 81      rights to create or facilitate access to the existing turnpike
 82      system.
 83               (b)    Beginning with the 2022-2023 fiscal year and annually
 84      thereafter, $35 million shall be transferred to Florida's
 85      Turnpike Enterprise, to be used in accordance withs. 338.2278,
 86      with preference to feeder roads, interchanges, and appurtenances
 87      that create or facilitate multiuse corridor access and
 88      connectivity. Of those funds,                     and to the maximum extent
 89      feasible, up to $5 million annually may be used for projects
 90      that assist in the development of broadband infrastructure
 91      within or adjacent to a multiuse corridor. The department shall
 92      give priority consideration to broadband infrastructure projects
 93      located in any area designated as a rural area of opportunity
 94      under s. 288.0656 and adjacent to a multiuse corridor. The
 95      department shall consult with the Florida Office of Broadband
 96      within the Department of Economic Opportunity to ensure that the
 97      broadband infrastructure projects are consistent with the
 98      strategic plan required bys. 364.0135.
 99               Section 3.        Subsection (2) of section 364.02, Florida
100      Statutes, is amended to read:

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101               364.02      Definitions.-As used in this chapter, the term:
102               ( 2)   "Broadband service", except when used in ss. 3 64. 0135
103      and 364.0136, means any service that consists of or includes the
104      offering of the capability to transmit or receive information at
105      a rate that is not less than 200 kilobits per second and either:
106               (a)    Is used to provide access to the Internet; or
107               (b)    Provides computer processing, information storage,
108      information content, or protocol conversion in combination with
109      the service.
110
111      The definition of broadband service does not include any
112      intrastate telecommunications services that have been tariffed
113      with the commission on or before January 1, 2005.
114               Section 4.        Subsection (2) and paragraph (c) of subsection
115       (4) of section 364.0135, Florida Statutes, are amended and
116      paragraph (e) is added to subsection (4) and paragraph (d) is
117      added to subsection (5) of that section, to read:
118               364.0135       Promotion of broadband adoption; Florida Office
119      of Broadband.-
120               (2)    DEFINITIONS.-As used in this section ands. 364.0136,
121      the term:
122               (a)    "Broadband Internet service" means any service that
123      provides access to the Internet with a capacity for transmission
124      at a consistent speed of at least 25 megabits per second
125      dow nload and 3 me g abits per second upload.

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126                (b)-f-a+        "Department" means the Department of Economic
127      Opportunity .
128               ~-tat-           "Office" means the Florida Office of Broadband.
129                (d)-f-e+-       "Sustainable adoption" means the ability for
130      communications service providers to offer broadband Internet
131      services in all areas of the state by encouraging adoption and
132      utilization levels that allow for these services to be offered
133      in the free market absent the need for governmental subsidy.
134               J...§.1-f-El+-   "Underserved" means a geographic area of the state
135      without access to Internet service with a connection speed of at
136      least 25 megabits per second download and 3 megabits per second
137      upload in which there is ne provider of broadl9and Internet
138      service that offers a connection to the Internet \Jith a capacity
139      for transmission at a consistent speed of at least 10 megabits
140      per second do,,nstrcam and at least 1 megabit per second
141      upstream.
142               (f)        "Unserved" means a geographic area of the state
143      without access to Internet service with a connection speed of at
144      least 10 megabits per second download and 1 megabit per second
145      upload.
146               (4)        FLORIDA OFFICE OF BROADBAND.-The Florida Office of
147      Broadband is created within the Division of Community
148      Development in the department for the purpose of developing,
149      marketing, and promoting broadband Internet services in the
150      state. The office, in the performance of its duties, shall do

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151      all of the following:
152               (c)    Encourage the use of broadband Internet service,
153      especially in the rural, unserved, or underserved communities of
154      the state through grant programs having effective strategies to
155      facilitate the statewide deployment of broadband Internet
156      service. For any grants to be awarded, priority must be given to
157      projects that:
158               1.    Provide access to broadband education, awareness,
159      training, access, equipment, and support to libraries, schools,
160      colleges and universities, health care providers, and community
161      support organizations.
162               2.    Encourage the sustainable adoption of broadband in
163      primarily unserved and underserved areas by removing barriers to
164      entry.
165               3.    Work toward encouraging investments in establishing
166      affordable and sustainable broadband Internet service in
167      unserved and underserved areas of the state.
168               4.    Facilitate the development of applications, programs,
169      and services, including, but not limited to, telework,
170      telemedicine, and e-learning to increase the usage of, and
171      demand for, broadband Internet service in the state.
172               (e)    Administer the Broadband Opportunity Program
173      established ins. 364.0136.
174               (5)    ADMINISTRATION.-The department may:
175               (d)    Adopt rules to implement this section ands. 364.0136.

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         HB 753                                                                   2021



176               Section 5.         Section 364.0136, Florida Statutes, is created
177      to read:
178               364.0136         Broadband Opportunity Program.-
179               (1)    The Broadband Opportunit y Program is established
180      within the office to award grants to applicants who seek to
181      expand access to broadband Internet service in unserved and
182      underserved areas of the state. The office must administer and
183      act as fiscal agent for the program and is responsible for
184      receiving and reviewing applications and awarding grants.
185      Funding for the program shall be as provided ins.
186      338. 2278 (7) (c).
187               (2)    Grants awarded under this section shall fund the
188      installation and deployment of infrastructure that supports the
189      provision of broadband Internet service.
190               (3)    Applicants eligible for grant awards include:
191               (a)    Corporations, nonprofit corporations, limited
192      liability companies, general partnerships, and limited
193      partnerships, that are organized under the laws of the state or
194      otherwise authorized to transact business in the state.
195               (b)    Political subdivisions.
196               (c)    Rural electric cooperatives organized under chapter
197      425 and their broadband affiliates .
198               (d)    Indian tribes.
199               (4)    An eligible applicant shall submit a grant application
200      to the office on a form prescribed by the office. A grant

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         HB 753                                                                            2021




201      application must include the following information:
202               (a)    A description of the project area.
203               (b)    A description of the kind and amount of broadband
204      Internet service infrastructure that is proposed to be deployed.
205               (c)    Evidence demonstrating the unserved or underserved
206      nature of the project area.
207               (d)    The number of households and businesses that would
208      have new access to broadband Internet service, or that would
209      have upgraded broadband Internet service as a result of the
210      grant.
211               (e)    A list of significant community institutions that
212      would benefit from the grant.
213               (f)    The total cost of the project and the timeframe in
214      which it would be completed.
215               (g)    A list identifying sources of funding or in-kind
216      contributions that wou l d suppleme nt any awarded grant.
217               (h)    Any other information required by the office.
218               (5) (a)     At least 30 days before the first day grant
219      applications may be submitted each fiscal year, the office shall
220      publish on its website the specific criteria and quantitative
221      scoring system it will use to evaluate or rank applications and
222      award grants under subsection (6). Such criteria and
223      quantitative scoring system                      must include the criteria set forth
224      in subsection (6).
225               (b)    Within 3 business days after the close of the grant

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         HB 753                                                                 2021




226      application process, the office shall publish on its website,
227      from each application submitted, the proposed unserved and
228      underserved areas to be served and the proposed broadband
229      Internet speeds of the areas to be served.
230               (c)    A broadband Internet service provider that provides
231      existing service in or adjacent to a proposed project area may
232      submit to the office, with in 45 days after publication of the
233      information under paragraph (b), a written challenge to an
234      application. The challenge shall contain information
235      demonstrating that:
236               1.    The provider currently provides broadband Internet
237      service to retail customers within the proposed project area;
238               2.    The provider has begun construction to provide
239      broadband Internet service to retail customers within the
240      proposed project area; or
241               3.    The provider commits to providing broadband Internet
242      service to retail customers within the proposed p ro j ect area
243      within the timeframe proposed by the applicant .
244               (d)    Within 3 business days after the submission of a
245      written challenge, the office shall notify the applicant, in
246      writing, of the challenge.
247               (e)    The office shall evaluate each challenge submitted
248      under this subsection. If the office determines that the
249      provider currently provides, has begun construction to provide,
250      or commits to p r ovide broadband internet service in the proposed

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         HB 753                                                                   2021




251      project area, the office may not fund the challenged project.
252               (f)    If the office denies funding to an applicant as a
253      result of a broadband Internet service provider's challenge and
254      the provider does not fulfill its commitment to provide
255      broadband Internet service in the unserved or underserved area,
256      the office may not consider another challenge from the provider
257      for the next cycle, unless the office determines the failure to
258      fulfill the commitment was due to circumstances beyond
259      provider's control.
260               ( 6) (a)    In evaluating grant applications and awarding
261      g rants, the office must g ive p riorit y to a pp lications prop-o sing
262      to serve areas identified by the office as unserved.
263               (b)    In evaluating grant applications and awarding grants,
264      the office may give priority to applications that:
265               1.    Proposed to serve areas identified by the office as
266      underserved;
267               2.    Offer new or substantially upgraded broadband Internet
268      service to important community institutions including, but not
269      limited to,         libraries, educational institutions, public safety
270      facilities,         and healthcare facilities;
271               3.    Facilitate the use of telemedicine and electronic
272      health records;
273               4.    Serve economically distressed areas of the state, as
274      measured by indices of unemployment, poverty, or population loss
275      that are significantly greater than the state wide average ;

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          HB 753                                                                 2021




276                5.    Provide for scalability to transmission speeds of at
277       least 100 megabits per second download and 10 megabits per
278       second upload;
279                6.    Include a component to actively promote the adoption of
280      the newly available broadband Internet services in the
281      community;
282                7.    Provide evidence of strong support for the project from
283      c i tizens , governme nt, businesses, and institutions in the
284      community;
285                8.    Provide access to broadband Internet service to the
286      g reatest number of unserved or underserved households and
287      businesses;
288                9.    Leverage greater amounts of funding for the project
289      from other private and public sources; or
290                10.    Demonstrate consistency with the strategic plan
291      adopted under s. 364.0135.
292                (c)   The office must endeavor to award grants to qualified
293      applicants in all regions of the state.
294                (7) (a)    The office may not award any grant to an otherwise
295      eli g ible g rant a pp licant to p rovide broadband Internet service
296      in a project area for which any other federal funding has been
297      awarded.
298                (b)   A grant awarded under this section may not be used to
299      serve an y retail end user that alread y has access to broadband
300      Internet service .

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         HB 753                                                                 2021




301               (c)    A grant awarded under this section, when combined with
302      an y state or local funds, ma y not fund more than 50 p ercent of
303      the total cost of a project.
304               (d)    A single project may not be awarded a grant in excess
305      of $5 million.
306               (8)    For each grant awarded, the office shall enter into an
307      agreement with applicant. The agreement must specify the total
308      amount of t he gr ant, performance conditions that must be met to
309      obtain the grant, the schedule of payment, and sanctions that
310      would apply for failure to meet performance conditions,
311      including, but not limited to, requiring the return of grant
312      funds.
313               (9)    By January 1, 2023, and each year thereafter, the
314      office shall publish on its website and provide to the Governor,
315      the President of the Senate, and the Speaker of the House of
316      Representatives:
317               (a)    A list of all grant applications received during the
318      previous year and for each application:
319               1.    The results of any quantitative weighting or scoring
320      system the office used to award grants or rank the applications.
321               2.    The grant amount requested.
322               3.    The grant amount awarded, if any.
323               4.    A report on the progress of each grant recipient in
324      acquiring and installing infrastructure that supports the
325      provision of broadband Internet service in the project areas for

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         HB 753                                                                  2021



326      which the grant was awarded and in securing adoption of such
327      serv ice in e a c h project area .
328               (b )   All written challen ge s during the p revious year .
329               Section 6.        This act shall take effect July 1, 2021.




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       TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                        HB 753 by Rep. Clemons
                   BROADBAND INTERNET DEPLOYMENT

                            AMENDMENT SUMMARY
                               MARCH 3, 2021


Amendment 1 by Rep. Clemons (# 269581)
   •   Creates a new part of chapter 288, F.S., and moves the following into this new
       part:
           o The existing statutory section related to the Florida Office of Broadband.
           o The provisions of the bill that create the Broadband Opportunity Program.
   •   Adds the new term "deployed," for purposes of determining whether or not
       broadband Internet service is already available in a specific geographic area.
   •   Eliminates the term "underserved" but retains the term "unserved" to refer to any
       area without access to broadband Internet service.
   •   Prohibits state funds from being used to provide service to places where service
       has already been deployed from at least one provider.
   •   Prohibits grants being awarded to governmental entities, rural electric
       cooperatives, or educational institutions unless other broadband Internet service
       providers have not deployed services· to an unserved area.
   •   Expands from one grant cycle to two grant cycles that the Office of Broadband
       may not consider another challenge from a provider if it does not fulfill its
       commitment to provide broadband Internet service.
  •    Makes other technical and conforming changes.
                                               COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                        Bill No. HB 753   (2021)
       Amendment No. 1




               COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                         (Y/N)
       ADOPTED AS AMENDED              (Y/N)
       ADOPTED W/0 OBJECTION           (Y/N)
       FAILED TO ADOPT                 (Y/N)
       WITHDRAWN                       (Y/N)
       OTHER


 1     Committee/Subcommittee hearing bill:        Tourism, Infrastructure &
 2     Energy Subcommittee
 3     Representative Clemons offered the following:
 4
 5             Amendment (with title amendment)
 6             Remove everything after the enacting clause and insert:
 7             Section 1.   Part XV of chapter 288, Florida Statutes,
 8     consisti ng of sections 288.9961 and 288.9962 is created and
 9     entitled "Florida Office of Broadband."
10             Section 2.   Section 364.0135, Florida Statutes, is
11     renumbered ass. 288.9961, Florida Statutes, and amended to
12     read:
13             288.9961 364.0135   Promotion of broadband adoption; Florida
14     Office of Broadband.-
15             (1)   LEGISLATIVE FINDINGS.-The Legislature finds that the
16     sustainable adoption of broadband Internet service is critical

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17     to the economic and business development of this -E-l=re state and
18     is beneficial for libraries, schools, colleges and universities,
19     health care providers, and community organizations.
20          (2)     DEFINITIONS.-As used in this part section, the term:
21          (a)     "Broadband Internet service" means any service that
22     provides access to the Internet with a capacity for transmission
23     at a consistent speed of at least 25 megabits per second
24     down l oad and 3 megabits per second upload.
25          ill+a+     "Department" means the Department of Economic
26     Opportunity.
27          (c)     "Deployed" means that a provider meets either of the
28     following:
29          1.    Currently provides broadband Internet service in a
30     specific geographic area; or
31          2.    Is able to provide broadband Internet service in a
32     specific geographic area to a customer that requests that
33     service not later than 30 da ys after the customer requests
34     installation of that service and without an extraordinary
35     commitment of resources or construction charges or fees
36     excee d i ng an ordi nary servi ce activation fee. The 30-day time
37     per i od shal l be extended to 60 days if permits are needed before
38     the broadband Internet service is installed and activated.
39          ill-fe+-   "Office" means the Florida Office of Broadband.
40          M-te+      "Sustainable adoption" means the ability for
41     communications service providers to offer broadband Internet
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42     services in all areas of this 4:-fte state by encouraging adoption
43     and utilization levels that allow for these services to be
44     offered in the free market absent the need for governmental
45     subsidy.
46          (d)    "Undersenrnd" means a geographic area of the state in
47     which there is no provider of broadband Internet service that
48     offers a connection to the Internet with a capacity for
49     transmission at a consistent speed of at least 10 megabits per
50     second downstream and at least 1 ffiegabit per second upstream.
51          (f)    "Unserved" means a geographic area of the state where
52     broadband Internet service is not deployed.
53          (3)    STATE AGENCY.-The department is designated as the lead
54     state agency to facilitate the expansion of broadband Internet
55     service in this 4:-fte state. The department shall work
56     collaboratively with private businesses and receive staffing
57     support and other resources from Enterprise Florida,      Inc., state
58     agencies,   local governments, and community organizations.
59          (4)    FLORIDA OFFICE OF BROADBAND.-The Florida Office of
60     Broadband is created within the Division of Community
61     Development in the department for the purpose of developing,
62     marketing, and promoting broadband Internet services in this 4:-fte
63     state. The office, in the performance of its duties, shall do
64     all of the following:
65          (a)    Create a strategic plan that has goals and strategies
66     for increasing the use of broadband Internet service in this 4:-fte

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67     state. The plan must include a process to review and verify
68     public input regarding transmission speeds and availability of
69     broadband Internet service throughout the state.
70          (b)    Build and facilitate local technology planning teams
71     or partnerships with members representing cross-sections of the
72     community, which may include, but are not limited to,
73     representatives from the following organizations and industries:
74     libraries, K-12 education, colleges and universities, local
75     health care providers, private businesses, community
76     organizations, economic development organizations,    local
77     governments, tourism, parks and recreation, and agriculture.
78          (c)    Encourage the use of broadband Internet service,
79     especially in the rural orT unserved, or undcrscrvcd communities
80     of the state through grant programs having effective strategies
81     to facilitate the statewide deployment of broadband Internet
82     service. For any grants to be awarded, priority must be given to
83     projects that:
84          1.    Provide access to broadband education, awareness,
85     training, access, equipment, and support to libraries, schools,
86     colleges and universities, health care providers, and community
87     support organizations.
88          2.    Encourage the sustainable adoption of broadband
89     Internet service in primarily unserved undcrscrved areas by
90     removing barriers to entry.
91          3.    Work toward encouraging investments in establishing

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 92     affordable and sustainable broadband Internet service in
 93     unserved llnderserved areas of t h i s ~ state.
 94          4.    Facilitate the development of applications, programs,
 95     and services, including, but not limited to, telework,
 96     telemedicine, and e-learning to increase the usage of, and
 97     demand for, broadband Internet service in t h i s ~ state.
 98          (d)   Monitor, participate in, and provide input in
 99     proceedings of the Federal Communications Commission and other
100     federal agencies related to the geographic availability and
101     deployment of broadband Internet service in the state as
102     necessary to ensure that this information is accurately
103     presented and that rural or 7 unserved, and underoerved areas of
104     the state are best positioned to benefit from federal and state
105     broadband deployment programs.
106          (e)   Administer the Broadband Opportunity Program
107     established ins. 288.9962.
108          (5)   ADMINISTRATION.-The department may:
109          (a)   Apply for and accept federal funds for purposes of
110     this section.
111          (b)   Enter into contracts necessary or useful to carry out
112     the purposes of this section.
113          (c)   Establish any committee or workgroup to administer and
114     carry out the purposes of this section.
115          (d)   Adopt rules to implement this part.
116          Section 3.   Section 288.9962, Florida Statutes, is created
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117     to read:
118          288.9962     Broadband Opportunity Program.-
119          (1)    The Broadband Opportunity Program is established
120     within the office to award grants to applicants who seek to
121     expand broadband Internet service to unserved areas of this
122     state. The office must administer and act as fiscal agent for
123     the program and is responsible for receiving and reviewing
124     applications and awarding grants. Funding for the program shall
125     be as provided in s. 338.2278 (7) (c), F.S.
126          (2)    Grants awarded under this section shall fund the
127     installation or deplo yment of infrastructure that supports the
128     provision of broadband Internet service. State funds may not be
129     used to provide broadband Internet service to a geographic area
130     where broadband Internet service is already deployed by at least
131     one provider.
132          (3)    Applicants eligible for grant awards include:
133          (a)    CorporationsJ nonprofit corporations, limited
134     liability companies, general partnerships, and limited
135     pa rtnershi ps that are organized under the laws of this state or
136     otherwise authorized to transact business in this state.
137          (b)    Political subdivisions.
138          (c )   Rural electric coop eratives org anized under cha p ter
139     425 and their broadband affiliates.
140          (d)    Indian Tribes.
141          ( 4 ) The office ma y not award, directly or indirectly,
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142     grants under this section to a governmental entity, a rural
143     electric cooperative or affiliate, or educational institution or
144     affiliate to provide Broadband Internet service to any
145     residential or commercial premises, unless other broadband
146     Internet service providers have not deployed service to an
147     unserved area.
148          (5)    An eligible applicant shall submit a grant application
149     to the office on a form prescribed by the office. A grant
150     application must include the following information:
151          (a)    A   d escription of the project area.
152          (b)    A description of the kind and amount of broadband
153     Internet service infrastructure that is proposed.
154          (c )   Evidence demonstratin g the unserved nature of the
155     project area.
156          (d)    The number of households and businesses that would
157     have access to broadband Internet service as a result of the
158     grant.
159          (e)    A list of significant community institutions that
160     would benefit from the grant.
161          (f)    The total cost of the project and the timeframe in
162     which it would be completed.
163          (g)    A list identifying sources of funding or in-kind
164     contributions that would supplement any a warded gr an t .
165          (h)    Any other information required by the office.
166          ( 6) (a)   At least 3 0 days before the first day grant
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167      applications may be submitted each fiscal year, the office shall
168      publish on its website the specific criteria and quantitative
169      scoring system it will use to evaluate or rank grant
170      applications. Such criteria and quantitative scoring system must
171      include the criteria set forth in subsection (8).
172           (b)    Within 3 business days after the close of the grant
173      application process, the office shall publish on its website,
174      from each grant application submitted, the proposed unserved
17 5     areas to be served and the pro posed broadband Internet speeds of
17 6     the areas to be served.
177           (c)    A broadband Internet service provider that provides
178      existing service in or adjacent to a proposed project area may
17 9     submit to the office, within 45 days after publication of the
180      information under paragraph (b), a written challenge to an
181      application. The challenge shall contain information
182      demonstrating that:
183           1.    The provider currently has deployed broadband Internet
184      service to retail customers within the project area;
185           2.    Th e pro v ider has begun construction to provide
186      broadband Internet service to retail customers within the
187      proposed project area within the timeframe proposed bv the
188      applicant; or
189           3.    The provider commits to providing broadband Internet
190      service to retail customers within the proposed pro j ect area
191      within the timeframe proposed by the applicant.
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192          (d)    Within 3 business days after the submission of a
193     written challenge, the office shall notify the applicant, in
194     writing, of the challenge.
195          (e)    The office shall evaluate each challenge submitted
196     under this subsection. If the office determines that the
197     provider currently has deployed, has begun construction to
198     provide, or commits to provide broadband Internet service in the
199     proposed project area, the office may not fund the challenged
200     project.
201          (f)    If the office denies funding to an applicant as a
202     result of a broadband Internet service provider's challenge and
203     the provider does not fulfill its commitment to provide
204     broadband Internet service in the unserved area, the office may
205     not consider another challenge from the provider for the next
206     two grant cycles, unless the office determines that the failure
207     to fulfill the commitment was due to circumstances beyond the
208     provider's control.
209          ( 8) (a)   In evaluating grant applications and awarding
210     grants, the office must give priority to applications that:
211          1.    Offer broadband Internet service to important community
212     institutions includ in g, but not limited to, libraries,
213     educational institutions, public safety facilities, and
214     healthcare facilities;
215          2.    Facilitate the use of telemedicine and electronic
216     health records;

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217           3.    Serve economically distr essed areas of the state, as
218     measured by indices of unemployment, poverty, or population loss
219     that are significantly greater than the statewide average;
220           4.    Provide for scalability to transmission speeds of at
221     least 100 megabits per second download and 10 megabits per
222     second upload;
223           5.    Include a component to actively promote the adoption of
224     the newly available broadband Internet service in the community;
225           6.    Provide evidence of strong support for the project from
226     citizens, g overnment, businesses, and institutions in the
227     community;
228           7.    Provide access to broadband Internet service to the
229     g reatest number of unserved households and businesses;
230           8.    Leverage greater amounts of funding for a project from
231     private sources; or
232           9.    Demonstrate consistency with the strategic plan adopted
233     under s. 288.9961.
234           (b)    The office must endeavor to award grants to qualified
235     applications of all regions of the state.
236           (9) (a)     The office may not awa rd any grant to an otherwise
237     eligible g rant applicant to provide broadband Internet service
238     in a project area for which any other federal funding has been
239     awarded .
240           (b)    A   grant aw arded under this section may not be used to
241     serve any retail end user that already has access to broadband
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242     Internet service.
243              (c)    A grant awarded under this section, when combined with
244     any state or local funds, may not fund more than 50 percent of
245     the total cost of a project.
246              (d)    A single project may not be awarded a grant in excess
247     of $5 million.
248          (10)        For each grant awarded, the office shall enter into
249     an agreement with the applicant. The agreement must specify the
250     total amount of the grant, performance conditions that must be
251     met to obtain the grant, the schedule of payment, and sanctions
252     that would apply for failure to meet performance conditions,
253     including, but not limited to, requiring the return of grant
254     funds.
255          (11 ) By January 1, 2023, and each year thereafter, the
256     office shall publish on its website and provide to the Governor,
257     the President of the Senate, and the Speaker of the House of
258     Representatives:
259          (a)        A list of all grant applications received during the
260     previous fiscal year and for each application:
261          1.        The results of any quantitative weighting or scoring
262     system the office used to award grants or rank the applications.
263          2.        The grant amounts requested.
264          3.        The grant amounts awarded, if any.
265          4.        A report on the progress of each grant recipient in
266     acquiring and installing infrastructure that supports the
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                                                  COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                            Bill No. HB 753   (2021)
        Amendment No. 1



267     provision of broadband Internet service in the project areas for
268     which that grant was awarded and in securing adoption of such
269     service in each project area.
270              (b)     All written challenges filed during the previous year
271     and the results of those challenges.
272             Section 4.        Subsection (7) of section 338.2278, Florida
273     Statutes, is amended to read:
274             338.2278        Multi-use Corridors of Regional Economic
275     Significance Program.-
276              (7)     Funds that result from increased revenues to the State
277     Transportation Trust Fund derived from the amendments to s.
278     320.08 made by chapter 2019-43, Laws of Florida, this act and
279     deposited into the fund pursuant to s. 320.20(5) (a) must be used
280     as follows:
281             (a)      For the 2019 2D20 fiscal year,    $4§ million shall be
282     retained in the State Transportation Trust Fund, and the
283     remaining funds shall be transferred to the General Revenue
284     Fund.
285             -fbt     For the 2020-2021 fiscal year, $90 million shall be
286     retained in the State Transportation Trust Fund, and the
287     remaining funds shall be transferred to the General Revenue
288     Fund.
289             J..Ql_-f-et   For the 2021-2022 fiscal year and each fiscal year
290     thereafter, 50 percent of the funds shall be transferred to the
291     State Economic Enhancement and Economic Development Trust Fund
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                                             COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                      Bill No. HB 753     (2021)
         Amendment No. 1



292      within the Department of Economic Opportunity for use by the
293      Florida Office of Broadband as provided ins. 288.9961 and a±±
294      e.f. the remaining funds shall be retained in the State

295      Transportation Trust Fund.
296           Section 5.     Paragraph (b) of subsection (2) of section
2 97     339.0801, Florida Statutes, is amended to read:
298           339.0801     Allocation of increased revenues derived from
299      amendments to s. 319.32(5) (a) by ch. 2012-128.-Funds that result
300      from increased revenues to the State Transportation Trust Fund
301      derived from the amendments to s. 319. 32 ( 5) (a) made by this act
302      must be used annually, first as set forth in subsection (1) and
303      then as set forth in subsections (2)-(5), notwithstanding any
304      other provision of law:
305           (2)

306           (b)   Beginning with the 2022-2023 fiscal year and annually
307      thereafter, $35 million shall be transferred to Florida's
308      Turnpike Enterprise, to be used in accordance withs. 338.2278,
309      with preference to feeder roads, interchanges, and appurtenances
310      that create or facilitate multiuse corridor access and
311      connectivity. Of those funds, and to the maximum extent
312      feasible, up to $5 million annually may be used for projects
313      that assist in the development of broadband infrastructure
314      within or adjacent to a multiuse corridor. The department shall
315      give priority consideration to broadband infrastructure projects
316      located in any area designated as a rural area of opportunity

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                                            COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                     Bill No. HB 753   (2021)
        Amendment No. 1



317     under s. 288.0656 and adjacent to a multiuse corridor. The
318     department shall consult with the Florida Office of Broadband
319     within the Department of Economic Opportunity to ensure that the
320     broadband infrastructure projects are consistent with the
321     strategic plan required bys. 288.9961.
322          Section 6.    This act shall take effect July 1, 2021.
323
324
325                          TITLE      AMENDMENT

326          Remove everything before the enacting clause and insert:
327     An act relating to broadband Internet deployment; creating pt.
328     XV of ch. 288,    F.S.; relating to the Florida Office of
329     Broadband; renumbering and amending s. 364.0135, F.S.; revising
330     and providing definitions relating to broadband Internet
331     service; revising duties of the Florida Office of Broadband;
332     providing rulemaking authority; creating s. 288.9962, F.S.;
333     establishing the Broadband Opportunity Program within the
334     Department of Economic Opportunity; providing for administration
335     of the program; providing requirements for grant awards;
336     providing for eligibility; providing application requirements;
337     requiring the publication of certain information related to
338     grant applications and grant awards on a website; authorizing
339     grant applications to be challenged under certain circumstances;
340     providing procedures to be used by the office in evaluating
341     challenges; providing direction for the office in prioritizing

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                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 753   (2021)
        Amendment No. 1



342     funding grants; requiring that office to enter into an agreement
343     containing specified information with each grant recipient;
344     requiring the office to publish a specified report annually on
345     its website; requiring a report to the Governor and Legislature
346     with specified information; amending s. 338.2278, F.S.;
347     providing for the transfer of certain funds from the State
348     Transportation Trust Fund to the State Economic Enhancement and
349     Economic Development Trust Fund within the Department of
350     Economic Opportunity; providing for the use of such funds by the
351     Florida Office of Broadband; amending s. 339.0801, F.S.;
352     requiring the Department of Transportation to consult with the
353     Florida Office of Broadband to ensure that specified projects
354     are consistent with a strategic plan; providing an effective
355     date.




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I
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                                     HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#:      HB 839   State Preemption of Energy Infrastructure Regulation
SPONSOR($): Fabricio
TIED BILLS:       IDEN./SIM. BILLS: SB 856

  REFERENCE                                                        ACTION                   ANALYST               STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  1) Tourism, Infrastructure & Energy Subcommittee                                          Willson   li ""-J     Keating

  2) Local Administration & Veterans Affairs
     Subcommittee

  3) Commerce Committee


                                                         SUMMARY ANALYSIS
Municipalities and counties derive broad home rule authority from the Florida Constitution and general law.
Special districts are separate local governmental entities that exist for specific purposes. General law
authorizes local governments to regulate a variety of matters related to energy infrastructure, including the
ability to own and operate their own energy infrastructure.

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. Where state preemption applies
it precludes a local government from exercising authority in that particular area.

The bill prohibits local governments from implementing any law, ordinance, regulation, policy, or resolution that
prohibits, restricts, or requires, or that has the effect of prohibiting, restricting, or requiring, the construction of
new energy infrastructure or the expansion, upgrading, or repair of existing energy infrastructure, or imposing
any requirement regulating energy infrastructure that is more stringent than state law or DEP rule.

Additionally, the bill expressly preempts the regulation of energy infrastructure to the state, and specifies that
any existing or future law, ordinance, regulation, policy, or resolution that is contrary to the preemption is void.

The bill defines "energy infrastructure" as "infrastructure supporting the production, importation, storage, and
distribution of natural gas, petroleum, petroleum products, electricity, renewable fuels, solar energy, wind
energy, biomass energy, hydrogen energy, and geothermal energy."

The fiscal impact of the bill is indeterminate. See Fiscal Comments Section.

The bill provides an effective date of July 1, 2021.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0839.TIE.DOCX
DATE : 3/2/2021
                                                              FULL ANALYSIS

                                                     I. SUBSTANTIVE ANALYSIS

     A. EFFECT OF PROPOSED CHANGES:
          Current Situation

          Local Government Powers 1

          Article VIII of the Florida Constitution establishes the authority for home rule by counties and
          municipalities in Florida. The Legislature is required to divide the state into counties 2 and has the
          authority to choose to create municipalities. 3 The Florida Constitution recognizes two types of county
          government in Florida: those operating under a county charter and those without a charter. Florida
          currently has 67 counties. 4 County ordinances must be filed with the custodian of state records, and
          take effect at the time provided by law. 5

          Noncharter Counties

          A county without a charter has such power of self-government as provided by general 6 or special law,
          and may enact county ordinances not inconsistent with general law. 7 General law authorizes counties
          "the power to carry on county government" 8 and to "perform any other acts not inconsistent with law,
          which acts are in the common interest of the people of the county, and exercise all powers and
          privileges not specifically prohibited by law." 9

          Section 125.01, F.S., provides that the legislative and governing body of a county shall have the power
          to carry on county government and that "to the extent not inconsistent with general or special law, this
          power includes, among other things, the power to:"
             • Prepare and enforce comprehensive plans for the development of the county.
             • Establish, coordinate, and enforce zoning and such business regulations as are necessary for
                 the protection of the public.
             • Establish and administer programs of housing, slum clearance, community redevelopment,
                 conservation, flood and beach erosion control, air pollution control, and navigation and drainage
                 and cooperate with governmental agencies and private enterprises in the development and
                 operation of such programs.
             • Establish, merge or abolish municipal service taxing or benefit units for any part or all of the
                 unincorporated area of the county, within which may be provided a number of essential facilities
                 and municipal services from funds derived from service charges, special assessments, or taxes.
             • Levy and collect taxes and special assessments; borrow and expend money; and issue bonds,
                 revenue certificates, and other obligations of indebtedness.
             • Adopt ordinances and resolutions necessary for the exercise of its powers and prescribe fines
                 and penalties for the violation of ordinances in accordance with law.
             • Enforce the Florida Building Code, and adopt and enforce local technical amendments thereto.




1 See generally Florida House of Representatives, Local Government Formation Manual 2018-2020, Chapter I.
2
  FLA. CONST. art. VIII, s. l(a).
3
  FLA. CONST. art. VIII, s. 2(a).
4
  See Local Government Fonnation Manual 2018-2020, Appendix B for a list of these counties and their dates of incorporation.
5
  FLA. CONST. art. VIII, s. 2(i).
6
  ch. 125, Part I, F.S.
7
  FLA. CONST. art. VIII, s. l(t).
8
  S. 125.01(1), F.S.
9
  S. 125.0l(l)(w), F.S.
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           Section 125.01, F.S., also provides:
             • The enumeration of powers herein may not be deemed exclusive or restrictive, but is deemed to
                 incorporate all implied powers necessary or incident to carrying out such powers enumerated.
             • The provisions of this section shall be liberally construed in order to effectively carry out the
                 purpose of this section and to secure for the counties the broad exercise of home rule powers
                 authorized by the State Constitution.

           The governing body of a county also has the power to establish, and subsequently merge or abolish,
           dependent special districts including both incorporated and unincorporated areas.

           This delegation of home rule power to noncharter counties is broad. 10 Nevertheless, it is a legislative,
           not a constitutional, grant of home rule power, and as such is subject to legislative regulation through
           law in the same manner as is a municipality. 11

           Noncharter counties must organize their governing body either in the traditional commission form or the
           commission-administrator form of county government, which may be enacted by county ordinance. 12 If
           an ordinance enacted by a noncharter county conflicts with a municipal ordinance, the county
           ordinance is not effective within the municipality to the extent of the conflict. 13

           Charter Counties

           Pursuant either to general 14 or special law, a county government may be adopted by charter approved
           by the county voters. A county with a charter has all powers of self-government not inconsistent with
           general law or special law approved by the county voters. The governing body of a county operating
           under a charter may enact county ordinances not inconsistent with general law. In the event of a
           conflict between a county and municipal ordinance, the charter must provide which ordinance
           prevails. 15

          Article VIII, section 6(e) of the Florida Constitution incorporates by reference sections of the 1885
          Constitution, providing unique authorization 16 for specific home rule charters including those of Duval 17
          and Miami-Dade Counties. 18 Currently, 20 Florida counties have adopted charters. 19

          The most significant distinction between charter and non-charter county power is the constitutional
          provision for direct power of self-government to a county upon charter approval, whereas a non-charter
          county has "such power of self-government as is provided by general or special law." Charter counties
          possess greater home rule authority than non-charter counties, as follows 20 :


10
   Santa Rosa County v. Gulf Power Corp., 635 So. 2d 96 (Fla. I st DCA. 1994).
11
   David G. Tucker, A Primer On Counties and Municipalities - Part 1, 81 FLA. BAR J. 49 (2007).
12
   See ss. 125.01(1), 125.72, F.S.
\3 Id.
14
   S. 125.60, F.S.
15
   FLA. CONST. art. VIII, s. l(g).
16
   Article VIII, section 6(e) of the Florida Constitution, states that specific provisions for Duval, Miami-Dade, Monroe, and Hillsborough Counties
"shall remain in full force and effect as to each county affected, as if this article had not been adopted, until that county shall expressly adopt a
charter or home rule plan pursuant to this article."
17
   The consolidated government of the City of Jacksonville was created by Ch. 67-1320, Laws of Fla., adopted pursuant to article VIII, section 9 of
the 1885 Florida Constitution.
18
   Dade County, now known as Miami-Dade County, has unique home rule status. Article VIII, section 11(5) of the 1885 Florida Constitution, now
incorporated by reference in article VIII, section 6(e) of the 1968 Florida Constitution, further provided the Metropolitan Dade County Home Rule
Charter, and any subsequent ordinances enacted pursuant to the charter, may conflict with, modify, or nullify any existing local, special, or general
law applicable only to Dade County. Accordingly, Miami-Dade County ordinances enacted pursuant to the Charter may implicitly, as well as
expressly, amend or repeal a special act that conflicts with a Miami-Dade County ordinance. Effectively, the Miami-Dade Charter can only be altered
through constitutional amendment, general law, or County actions approved by referendum. Chase v. Cowart, 102 So. 2d 147, 149-50 (Fla. 1958).
19
   Alachua, Brevard, Broward, Charlotte, Clay, Columbia, Duval (consolidated government with the City of Jacksonville, ch. 67-1320, Laws of Fla.),
Hillsborough, Lee, Leon, Miami-Dade, Orange, Osceola, Palm Beach, Pinellas, Polk, Sarasota, Seminole, Volusia, and Wakulla Counties. Local
Government Formation Manual 2018-2020, p. 4.
20
   Id. at 4.
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              •    A special act of the Legislature may not diminish the home rule powers of a charter county
                   unless the act is approved by electors in the county. 21
              •    A county's charter may authorize the county to regulate an activity on a countywide basis and
                   provide that the county regulation prevails over any conflicting municipal ordinance. 22
              •    A charter county may levy any tax within its jurisdiction that is authorized by general law for a
                   municipality unless the general law prohibits levy by a county. 23

          Municipalities2 4

          A municipality is a local government entity created to perform functions and provide services for the
          particular benefit of the 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."

          Article VIII, section 2 of the Florida Constitution provides that municipalities "shall have governmental,
          corporate and proprietary powers to enable them to conduct municipal government, perform municipal
          functions and render municipal services, and may exercise any power for municipal purposes except as
          otherwise provided by law. 25

          Chapter 166, F.S., also known as the Municipal Home Rule Powers Act, 26 acknowledges the
          constitutional grant to municipalities of governmental, corporate, and proprietary power necessary to
          conduct municipal government, functions, and services. 27 Chapter 166, F.S., provides municipalities
          with broad home rule powers, respecting expressed limits on municipal powers established by the
          Florida Constitution, applicable laws, and county charters. 28 Pursuant to these powers, approximately
          32 Florida municipalities own, operate, and control electric utilities, and 26 municipalities own, operate
          and control natural gas utilities.

          Currently, there are approximately 412 municipalities in Florida. 29 With the exception of Miami-Dade
          County, the Legislature is authorized to establish or abolish municipalities or amend their charters by
          general or special law. 30 In Miami-Dade County, the Board of County Commissioners has exclusive
          authority to provide a method for establishing new municipalities and prescribing their jurisdiction and
          powers. 31

          Special Districts32

          Special districts are separate governmental entities existing for specific purposes and having
          substantial fiscal and administrative independence from general purpose governments. Special districts
          have existed in the United States for over 200 years and are found in every state and the District of
          Columbia.

          In Florida, special districts perform a wide variety of functions, such as providing fire protection
          services, delivering urban community development services, and managing water resources. Special
          districts typically are funded through ad valorem taxes, special assessments, user fees, or impact fees.
          The Uniform Special District Accountability Act, ch. 189, F. S., generally governs the creation and


21
   FLA. CONST. art. VIII, s. l(g).
22 Id.
23
   McLeod v. Orange County, 645 So. 2d 411, 413 (Fla. 1994); State ex rel. Volusia County v. Dickerson, 269 So. 2d 9, 11 (Fla. 1972).
24
   See generally Local Government Formation Manual 2018-2020, Chapter 2.
25
   FLA. CONST. art. VIII, s. 2(b).
26
   S. 166.011, F.S.
27
   Local Government Formation Manual 2018-2020, p. 16.
28
   S. 166.021(4), F.S.
29
   See Local Government Formation Manual 2018-2020, Appendix E for a list of these cities and their dates of incorporation.
30
   Local Government Formation Manual 2018-2020, p. 15.
31
   FLA. CONST. art. Vlll, s. 6(e), incorporating 1885 FLA. CONST. art. vm, s. l l(e).
32
   See generally Local Government Formation Manual 2018-2020, Chapter 5.
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           operations of special districts; however, other general laws may more specifically govern the operations
           of certain types of special districts.

           As of February 28, 2021, there are 628 active dependent33 special districts and 1, 158 active
           independent special districts in Florida. 34 Community development districts are the most frequently
           created form of independent special district. Other common special districts in Florida include drainage
           and water control districts, fire control districts, and community redevelopment districts. 35 Currently, one
           special electric district and four special natural gas districts exist in Florida. 36

           Intergovernmental Utility Authorities

          The Florida lnterlocal Cooperation Act of 1969 (Act) allows local governmental units to make the most
          efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual
          advantage. 37 The Act provides that local governmental entities may jointly exercise their powers by
          entering into a contract in the form of an interlocal agreement. 38 Under such an agreement, the local
          governmental units may create a separate legal or administrative entity "to provide services and
          facilities in a manner and pursuant to forms of governmental organization that will accord best with
          geographic, economic, population, and other factors influencing the needs and development of local
          communities." 39

          In 1978, the Florida Municipal Power Agency (FMPA) was created through a series of interlocal
          agreements under s. 163.01, F.S., to provide wholesale power supply to municipal electric utilities.
          FMPA is currently owned by 31 municipalities. 40 Through various joint power supply projects 41 , it
          supplies all of the electrical power needs of 13 member utilities (referred to as "All-Requirements
          Project" or "ARP" members) and some of the power needs for seven other member utilities. Through
          these projects, FMPA members maintain ownership interests in various electrical power plants
          throughout Florida. FMPA manages the transmission of electrical power over facilities owned by FMPA
          or its ARP members. FMPA also manages a "power pool" that includes the generating resources of its
          All-Requirements Project, Lakeland Electric, and Orlando Utilities Commission. 42




 33
    Dependent special districts are under some control by a single county or municipality, whereas independent special districts do not have any
 dependent characteristics. A special district that includes more than one county is independent unless it lies wholly within the boundaries of a single
municipality.
34
    Florida Department of Economic Opportunity, Division of Community Development, Special District Accountability Program, Official List of
Special Districts Online, State Totals, hltp://dca.deo.myflorida.com/fhcd/sdip/OfficialListdeo/report.cfm (last visited Feb. 28, 2021).
35
    Florida Department of Economic Opportunity, Division of Community Development, Special District Accountability Program, Official List of
Special Districts Online, Special District Function Totals at hltp://www.floridaiobs.org/communily-p lanning-and-development/assistan ce-for-
 govcrnments-and-organi2ations/spccial-dislric1-accounlability-program (last visited Feb. 28, 2021 ).
36
    See PSC, Facts & Figures of the Florida Utility Industry
 hllp://www.psc.statc.fl.us/Files/PDF/ Publ ications/Rcports/Gencral/Factsandligurcs/ April%202020.pdf (last visited Feb. 28, 2021 ).
37
    S. 163.01(2), F.S.
38
    S. 163.01(5), F.S.
39
    S. 163.01(2), F.S.
4
 °  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, Members, hllp://fmpacom/about/memb·ers/ (last visited Feb. 28, 2021 ).
41
    Section 361.12, F.S., authorizes any electric utility, or any organization, association, or separate legal entity whose membership consists only of
electric utilities, to join with any other such entity to finance, acquire, construct, manage, operate, or own an electric power supply project for the
joint generation or transmission of electrical energy, or both. Further, section 361.13, F.S., authorizes any such entity to purchase capacity or energy,
or both, in an agreed upon quantity from any project in which the purchaser has an ownership interest.
42
    FLORIDA MUNICIPAL POWER AGENCY. For a list of the projects and the cities participating in each project, see FLORIDA MUNICIPAL POWER
AGENCY, Projects, hllps://fmpa.com/power- ' upply-proiects/ (last visited Feb. 28, 2021).
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          Local Government Authority to Regulate Matters Related to Energy Infrastructure

          Local Regulation of Oil and Gas Exploration and Production

          While cities and counties do not operate oil and gas permitting programs in Florida, some, through their
          land use regulations or zoning ordinances, require special exceptions for oil and gas activities or limit
          oil and gas activities to certain zoning classifications. 43 When authorizing oil and gas exploration and
          production activities, local governments consider factors such as consistency with their comprehensive
          plan, injuries to communities or the public welfare, and compliance with zoning ordinances. 44

          In certain instances, DEP may not issue a permit without specified approval. DEP may not issue
          permits to drill a gas or oil well :
              • Within the corporate limits of a municipality without a resolution approving the permit from the
                  governing authority;45
              • In tidal waters abutting or immediately adjacent to the corporate limits of a municipality or within
                  3 miles of such corporate limits extending from the line of mean high tide into such waters
                  without a resolution approving the permit from the governing authority; 46 or
              • On any improved beach, located outside of an incorporated town or municipality, or at a location
                  in the tidal waters abutting or immediately adjacent to an improved beach, or within 3 miles of
                  an improved beach extending from the line of mean high tide into such tidal waters without a
                  resolution approving the permit from the county commission. 47

          If the proposed oil or gas well is on lands owned by the Board of Trustees of the Internal Improvement
          Trust Fund (BOT), it may not grant a lease for gas, oil, or mineral rights:
               • Within the corporate limits of a municipality without a resolution approving the lease from the
                   governing authority; 48
               • In tidal waters abutting or immediately adjacent to the corporate limits of a municipality or within
                   3 miles of such corporate limits extending from the line of mean high tide into such waters
                   without a resolution approving the lease from the governing authority; 49
               • On any improved beach, located outside of an incorporated town or municipality, or at a location
                   in the tidal waters abutting or immediately adjacent to an improved beach, or within 3 miles of
                   an improved beach extending from the line of mean high tide into such tidal waters without a
                   resolution approving the lease from the county commission ;50 or
               • In Florida's territorial waters in the Gulf of Mexico or Atlantic Ocean. 51

         Six municipalities (Estero, Bonita Springs, Coconut Creek, Cape Coral, Dade, and Zephyrhills) and
         thirteen counties (Alachua , Bay, Brevard, Broward, Citrus, Indian River, Martin, Miami-Dade, Osceola,
         Pinellas, St. Lucie, Volusia, Wakulla, and Walton) have banned one or more forms of well stimulation
         techniques (commonly referred to as 'fracking') by ordinance. 52 Additionally, many other counties and


43
   See, e.g., Lee County's Land Development Code§§ 34-1651 and 34-145(c).
44 id.
45
   S. 377.24(5), F.S.
46 S. 377.24(6), F.S.
47
   S. 377.24(7), F.S.
48
   S. 253.6l(l)(a), F.S.
49 S. 253.6\(l)(b), F.S.

5o S. 253.6l(l)(c), F.S.
51
   S. 253.6l(l)(d), F.S.
52
   Village of Estero, Ordinance No. 2015-19; Bonita Spring's Land Development Code, Chapter 4, Article VI, Division 15, Section 4-1380; Coconut
Creek's Land Development Code, Article IV, Section 13-1000; City of Cape Coral, Ordinance §3.23; City of Dade, Ordinance No. 2016-08; City of
Zephyrhills, Ordinance No. 1310-16; Alachua County's Code of Ordinances, §77.13.5 ; Bay County's Land Development Regulation, §311; Brevard
County's Code of Ordinances, §46-375; Citrus County's Code of Ordinances, §66-133 ; Indian River County's Code of Ordinances, §317 .03 ; Osceola
County's Land Development Code, §4.12.3; Broward County's Code of Ordinances, §27-193; Martin County's Code of Ordinances, §67.441;
Miami-Dade County's Code of Ordinances, §33-437; Pinellas County's Code of Ordinances, §58-489; St. Lucie County' s Code of Ordinances,
Policy 6.1.5.7; Volusia County's Code of Ordinances, §50-42; Wakulla County's Code of Ordinances, §6-34; Walton County's Code of Ordinances,
§9-156.
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           cities have passed resolutions supporting various types of bans and moratoriums relating to well
           stimulation techniques. 53

           Other Specific Authority Related to Energy Infrastructure

           Chapter 403, F.S., provides for the regulation of air and water pollution control in Florida, which entails
           a variety of pollution-related directives to DEP and delegates specific authority to local governments
           concerning a number of issues. 54 For example, part II of ch. 403, F.S. provides a participatory role to
           local governments related to power plant and transmission line siting, 55 including a consistency
           determination with local land use plans, zoning ordinances, local environmental regulations, and other
           standards 56 , and part VIII of ch. 403, F.S., provides a participatory role to local governments related to
           the siting of natural gas transmission pipelines. 57

           Additionally, general law provides specific authority for certain local governments to:
              • Prepare and enforce comprehensive plans for the development of the county. 58
              • Establish, coordinate, and enforce zoning and such business regulations as are necessary for
                   the protection of the public. 59
              • Enter into contracts with utility companies or others for the supplying by such utility companies
                   or others of water, electricity, or telephone service to or in connection with any project. 60
              • Construct, operate and maintain gas plants and distribution systems for domestic, municipal
                   and industrial uses; 61 construct such other buildings and facilities as may be required to properly
                   and economically operate and maintain such works; 62 and make all necessary rules or
                   regulations governing the use, control and operation of such works; 63
              • 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. 64
              • Provide and regulate roads, rights-of-way, and related transportation facilities. 65
              • Enforce the Florida Building Code and adopt and enforce local technical amendments thereto. 66


53
   See Food & Water Watch, Local Regulations Against Fracking, http://ww w.foodandwalerwatch.org/insightllocal-resolu.tions-against-
fracking/H1orida (last visited Feb. 28, 2021 ). The page shows a list of local governments that passed resolutions against fracking.
54
   Section 403.021(4), F.S., declares that "local and regional air and water pollution control programs are to be supported to the extent practicable as
essential instruments to provide for a coordinated statewide program of air and water pollution prevention, abatement, and control for the securing
and maintenance of appropriate levels of air and water quality" and s. 403.061(18), F.S., directs DEP to "Encourage local units of government to
handle pollution problems within their respective jurisdictions on a cooperative basis and provide technical and consultative assistance therefor."
55
   Section 403.506(3), F.S., states that "the filing of an application shall not prevent an electric utility from seeking separate licenses for facilities that
are necessary to construct the electrical power plant. Licenses, permits, or approvals issued by any state, regional, or local agency for such facilities
shall be incorporated by the department into a final certification upon completion of construction." Section 403.50665, F.S.,
56
   Ss. 403.50655, F.S. 403.507(2)(a)3., F.S., 403.526(2)(a)5., F.S.
57
   Section 43.9405, F.S. states that "Except as otherwise provided in this section, the exemption of a natural gas transmission pipeline under ss.
403.9401-403.9425 does not constitute an exemption for the natural gas transmission pipeline from other applicable permitting processes under other
provisions of law or local government ordinances." Additionally, s. 403 .941, F. S., provides that "Each local government in which the natural gas
transmission pipeline or natural gas transmission pipeline corridor will be located shall prepare a report as to the impact of each proposed natural gas
transmission pipeline or corridor on matters within its jurisdiction, including the consistency of the proposed natural gas transmission pipeline or
corridor with all applicable local ordinances, regulations, standards, or criteria that apply to the proposed natural gas transmission pipeline or
corridor, including local comprehensive plans, zoning regulations, land development regulations, and any applicable local environmental regulations
adopted pursuant to s. 403.182 or by other means"
58 S. 125.0l(l)(g), F.S.

59 S. 125.0l(l)(h), F.S.
60
   S. 125.012(19), F.S.
61
   S. 180.06(8), F.S.
62 S. 180.06(9), F.S.
63
   S. 180.13,F.S.
64
   S. 180.14,F.S.
65
   S. 125.0l(l)(m), F.S.
66 S. 125.0l(l)(bb), F.S.
STORAGE NAME: h0839.TIE.D0CX                                                                                                                          PAGE: 7
DATE: 3/2/2021
                •    To 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. 67
                •    License the use of gas and power lines in right-of-ways. 68
                •    Issue development permits and orders. 69
                •    Code enforcement. 70

           lnterlocal Service Boundary Agreements71

           As an alternative process for annexation, the respective governing bodies of counties, municipalities, or
           independent special districts may enter into an interlocal service boundary agreement, jointly
           determining how services are provided to residents and property. 72 The statute creates a more flexible
           process for adjusting municipal boundaries and addresses a wider range of the effects of annexation.
           The purpose is to encourage intergovernmental coordination in planning, service delivery, and
           boundary adjustments and to reduce conflicts and litigation between local entities. Local governments
           may develop their own process for reaching an interlocal service boundary agreement meeting certain
           requirements or use the process provided in statute.

          One issue that may be addressed in an interlocal service boundary agreement is identifying services
          and infrastructure not currently provided by an electric utility or a natural gas transmission company
          (the law does not affect territorial agreements between electric or public utilities or affect the
          determination of territorial disputes by the Florida Public Service Commission).

          The agreement may address other issues related to service delivery and include the transfer of
          services and infrastructure, fiscal compensation to one county, municipality, or independent special
          district from another local government or special district, and provide for the joint use of facilities and
          colocation of services. 73 The agreement may require the municipality to send the county a report on its
          planned service delivery. 74 Finally, an interlocal service boundary agreement may be valid for up to 20
          years, must include a provision requiring periodic review, and must require renegotiations to begin at
          least 18 months before the termination date. 75

          The ability of counties and municipalities to negotiate interlocal service boundary agreements does not
          impair any existing franchise agreement or contract without the consent of the franchisee or contracting
          party. Local governments retain their authority to negotiate franchise agreements for the use of public
          rights-of-way and providing service. 76




67
   S. 125.275, F.S.
68
   S. 125.42, F.S.
69
   Ss. 125.022, F.S. and 166.033, F.S.
70
   S. 166.0415, F.S.
71
   See generally Local Government Formation Manual 2018-2020, Chapter 3, Part XII.
72
   Ch. 171, part II, F.S
73 S. l 71.203(6)(g)-(h), F.S.
74
   S. l 71.203(6)(i), F.S.
75
   S. 171.203(12), F.S.
76
   See S. 171.203(19)-(20), F.S. "This part does not impair any existing franchise agreement without the consent of the franchisee, any existing
territorial agreement between electric utilities or public utilities under chapter 366, or the jurisdiction of the Public Service Commission to resolve a
territorial dispute involving electric utilities or public utilities in accordance with s. 366.04. In addition, an interlocal agreement entered into under
this section has no effect in a proceeding before the Public Service Commission involving a territorial dispute. A municipality or county shall retain
all existing authority, if any, to negotiate a franchise agreement with any private service provider for use of public rights-of-way or the privilege of
providing a service"
STORAGE NAME: h0839.TIE .DOCX                                                                                                                      PAGE: 8
DATE: 3/2/2021
          State Regulation of Energy Infrastructure

          Oil and Gas Exploration and Production

          The Department of Environmental Protection's (DEP) Mining and Minerals Regulation Program in the
          Division of Water Resource Management (Division) oversees permitting for oil and gas drilling,
          production, and exploration within Florida through its Oil and Gas Program (Program). 77 The Program's
          primary responsibilities include conserving and controlling the state's oil and gas resources and
          products; protecting the correlative rights of landowners, owners and producers of oil and gas
          resources and products, and others interested in these resources and products; safeguarding the
          health, property, and public welfare of the state's residents; and protecting the environment. 78 DEP
          addresses these concerns through a system of permits and field inspections to ensure compliance.

          DEP must adopt rules and issue orders to implement and enforce the Program. 79 The rules and orders
          must ensure that all precautions are taken to prevent the spillage of oil or any other pollutant in all
          phases of the drilling for, and extracting of, oil, gas, or other petroleum products, or during the injection
          of gas into and recovery of gas from a natural gas storage reservoir. 80 DEP must adopt rules and
          orders for the following purposes:
              • To require the drilling, casing, and plugging of wells to be done in such a manner as to prevent
                  the pollution of the fresh, salt, or brackish waters or the lands of the state and to protect the
                   integrity of natural gas storage reservoirs;
              • To prevent the alteration of the sheet flow of water in any area;
              • To require that appropriate safety equipment be installed to minimize the possibility of an
                  escape of oil or other petroleum products in the event of accident, human error, or a natural
                  disaster during drilling, casing, or plugging of any well and during extraction operations;
              • To require the drilling, casing, and plugging of wells to be done in such a manner as to prevent
                  the escape of oil or other petroleum products from one stratum to another;
              • To prevent the intrusion of water into an oil or gas stratum from a separate stratum;
              • To require a reasonable bond, or other form of security acceptable to the department,
                  conditioned upon the performance of the duty to plug properly each dry and abandoned well
                  and the full and complete restoration by the applicant of the area over which geophysical
                  exploration, drilling, or production is conducted to the similar contour and general condition in
                  existence prior to such operation;
              • To require and carry out a reasonable program of monitoring or inspection of all drilling
                  operations, producing wells, or injecting wells, including regular inspections by division
                  personnel;
              • To require the making of reports showing the location of all oil and gas wells; the making and
                  filing of logs; the taking and filing of directional surveys; the filing of electrical, sonic, radioactive,
                  and mechanical logs of oil and gas wells; if taken, the saving of cutting and cores, the cuts of
                  which shall be given to the Bureau of Geology; and the making of reports with respect to drilling
                  and production records;
              • To prevent wells from being drilled, operated, or produced in such a manner as to cause injury
                  to neighboring leases, property, or natural gas storage reservoirs;
              • To prevent the drowning by water of any stratum, or part thereof, capable of producing oil or gas
                  in paying quantities and to prevent the premature and irregular encroachment of water which
                  reduces, or tends to reduce, the total ultimate recovery of oil or gas from any pool.
              • To require the operation of wells with efficient gas-oil ratio, and to fix such ratios;
              • To prevent "blowouts," "caving," and "seepage;"
              • To prevent fires;


77
   The Oil and Gas Program is governed by part I of ch. 377, F.S., and chs. 62C-25 through 62C-30, F.A.C.
78
   S. 377.06, F.S.
79 S. 377.22(2), F.S.

so Id.
STORAGE NAME: h0839.TIE.D0CX                                                                                         PAGE: 9
DATE: 3/2/2021
                •    To identify the ownership of all oil or gas wells, producing leases, refineries, tanks, plants,
                     structures, and storage and transportation equipment and facilities;
                •    To regulate the "shooting," perforating and chemical treatment of wells;
                •    To regulate secondary recovery methods, including the introduction of gas, air, water, or other
                     substance into producing formations;
                •    To regulate gas cycling operations;
                •    To regulate the storage and recovery of gas injected into natural gas storage facilities;
                •    To, if necessary, determine, limit, and prorate the production of oil or gas, or both, from any pool
                     or field in the state;
                •    To require certificates of clearance or tenders in connection with the transportation or delivery of
                     oil or gas, or any product;
                •    To regulate the spacing of wells and to establish drilling units;
                •    To prevent, so far as is practicable, reasonably avoidable drainage from each developed unit
                     which is not equalized by counterdrainage;
                •    To require that geophysical operations requiring a permit be conducted in a manner which will
                     minimize the impact on hydrology and biota of the area, especially environmentally sensitive
                     lands and coastal areas;
                •    To regulate aboveground crude oil storage tanks in a manner which will protect the water
                     resources of the state; and
                •    To act in a receivership capacity for fractional mineral interests for which the owners are
                     unknown or unlocated and to administratively designate the operator as the lessee. 81

           DEP possesses the power and authority to issue permits:
             • For the drilling for, exploring for, or production of oil, gas, or other petroleum products that are to
                be extracted from below the surface of the land, including submerged land, only through the well
                hole drilled for oil, gas, and other petroleum products. 82
             • To explore for and extract minerals that are subject to extraction from the land by means other
                than through a well hole. 83
             • To establish natural gas storage facilities or construct wells for the injection and recovery of any
                natural gas for storage in natural gas storage reservoirs. 84

          DEP may not permit to drill a well in search of oil or gas:
            • In Florida's territorial waters in the gulf of Mexico or Atlantic Ocean; 85
            • In bays or estuaries; 86
            • Within one mile of coastline; 87
            • Within 1 mile of seaward boundary of any local, state, or federal park or aquatic or wildlife
               preserve; 88 and
            • Within 1 mile inland from Gulf, Atlantic, any bay, or any estuary 1 mile of any freshwater lake,
               river, or stream unless the DEP is satisfied that the natural resources of such bodies of water
               and shore areas of the state will be adequately protected in the event of accident or blowout. 89

          DEP monitors and inspects drilling operations, producing wells, or injecting wells. 90 Division staff
          working in the field offices inspect all permitted activities. Each permit issued by DEP must contain an
          agreement that the permit holder will not prevent inspection by Division personnel at any time. 91

81  Id.
82
    S. 377.242(1), F.S.
83
    S. 377.242(2), F.S.
84
    S. 377.242(3), F.S.
85
    Ss. 377.24(9) and 377.242(l)(a)5., F.S.
86
    S. 377.242(l)(a)l., F.S.
87 S. 377.242(1 )(a)2., F.S.
88
    S. 377.242(l)(a)3., F.S.
8
  9 S. 377.242(l)(a)4., F.S.
90
    Section 377.22(2)(g), F.S.
91
    Section 377.242, F.S.
STORAGE NAME: h0839.TIE.D0CX                                                                                     PAGE: 10
DATE: 3/2/2021
           Well Stimulation ("Fracking'J

           Well stimulation refers to any action taken by a well operator to increase the inherent productivity of an
           oil or gas well. 92 Common examples of well stimulation treatments are hydraulic fracturing and acid
           fracturing. Both hydraulic fracturing and acid fracturing involve the pressurized injection of fluids and
           chemicals to create fractures within a rock formation. The fractures then allow for more oil and gas to
           escape the rock formation and migrate up the well.

           DEP's rules currently require an operator to notify DEP before beginning any workover operation on an
           oil or gas well. 93 A workover is defined as "an operation involving a deepening, plug back, repair,
           cement squeeze, perforation, hydraulic fracturing, acidizing, or other chemical treatment which is
           performed in a production, disposal, or injection well in order to restore, sustain, or increase production,
           disposal, or injection rates." 94 Thus, an operator performing a well stimulation need not apply for a
           separate permit authorizing the well stimulation, but must only provide notification to DEP before
           beginning the operation.

           Florida Public Service Commission

           The Florida Public Service Commission ("PSC" or "commission") is an arm of the legislative branch of
           government. 95 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. 96 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. 97

           The PSC monitors the safety and reliability of the electric power grid 98 and may order the addition or
           repair of infrastructure as necessary. 99 Further, the PSC reviews application to determine the need for
           certain new electrical power plants 100 and certain large transmission lines 101 as part of DEP's siting
           process.

           Florida Solar Energy Center

          In order to develop a sound energy policy relating to incident solar energy 102 in Florida and ensure that
          solar energy systems manufactured or sold within the state are effective and represent a high level of
          quality, the Legislature formed the Florida Solar Energy Center (FSEC) 103 in 1976 to serve as the
          state's energy research institute. 104

92
    Keith B. Hall, Recent Developments in Hydraulic Fracturing Regulation and Litigation, 29 J. LAND USE & ENVTL. L. 29, 22 (2013).
93
    R. 62C-29.006(1), F.A.C.
94
    R. 62C-25.002(6 l ), F.A.C.
95
    s. 350.001, F.S.
96
    FLA. PUBLIC SERVICE COMMISSION, The PSC 's Role, http://www.psc.s1atc.n.us (last visited Feb. 26, 2021 ).
97
    Id. The PSC regulated five investor-owned electric companies, eight investor-owned natural gas utilities, and 151 investor-owned water and/or
wastewater utilities. While the PSC does not fully regulate publicly owned municipal or cooperative electric utilities, the Commission does have
jurisdiction, with regard to rate structure, territorial boundaries, bulk power supply operations, and planning, over 35 municipally owned electric
systems and 18 rural electric cooperatives. The PSC has jurisdiction, with regard to territorial boundaries and safety, over 27 municipally owned
natural gas utilities and 4 gas districts, and also exercises safety authority over all electric and natural gas systems operating in the state. FLA. PUBLIC
SERVICE COMMISSION, 2020 ANNUAL REPORT 14 (2020), hl!p://www.psc.state.n .us/Files/PD ·/ l'ublications/Reports/General /Annua lreports/2020.pdf.
(last visited Feb. 28, 2021 ).
98
    S. 366.04(5) & (6), F.S.
99
    S. 366.05(1) & (8), F.S.
100
     S. 403.519, F.S.
101
     S. 403.537, F.S.
102
     "Incident" in the study of physics means "the striking of a ray of light, beam of electrons, etc., on a surface;" therefore, in this instance, "incident
solar energy" means solar energy from solar rays striking a building, etc. Dictionary.com, LLC, Incidence,
hup J/www.dictionary.com/browse/incidence (last visited Feb. 28, 2021 ).
103 S. 377.705(2)(a)-(b), F.S.
104
     Florida Solar Energy Center, About Us, hllp ://www.fsec.ucf.edu/cn/about/indcx.hlm (last visited Feb. 26, 2021).
STORAGE NAME: h0839.TIE.D0CX                                                                                                                         PAGE: 11
DATE: 3/2/2021
          All solar energy systems manufactured or sold in Florida must meet the standards set by FSEC. 105
          FSEC also accepts standards and certifications for solar thermal products from the Solar Rating &
          Certification Corporation (SRCC) 106 and the International Association of Plumbing and Mechanical
          Officials 107 (IAPM0). 108 In addition, the current version of the Code provides that solar energy systems
          installed in Florida are required to meet certain standards. 109

           Florida Department of Agriculture and Consumer Services

          The Florida Department of Agriculture and Consumer Services (FDACS) is responsible for the
          administration of a number of programs relating to energy infrastructure, including the Renewable
          Energy and Energy-Efficient Technologies Grants Program, 110 the Energy efficiency and conservation
          clearinghouse, 111 the Florida Green Government Grants Act, 112 the Natural gas fuel fleet vehicle rebate
          program, 113 as well as statutory authorization to allocate federal energy conservation bonds 114 and to
          post information on its website relating to alternative fueling stations or electric vehicle charging
          stations that are available for public use. 115

          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.
          Where state preemption applies it precludes a local government from exercising authority in that
          particular area. 116

          Florida law recognizes two types of preemption: express and implied. Express preemption requires a
          specific legislative statement; it cannot be implied or inferred. 117 Express preemption of a field by the


105
    s. 377.705(4)(d), F.S.
106
    SRCC produces solar thermal standards and certifications which are widely used globally. Solar Rating & Certification Corporation, About Us -
General, hllps://so lar- rating.org/ (last visited Feb. 28, 2021 ).
107
    IAPMO certifies solar thermal products for use in North America. International Association of Plumbing and Mechanical Officials, Solar Product
Certification, hllp ://www.iapmort.org/Pages/SolarCertilication.aspx (last visited Feb. 28, 2021 ).
108
    Florida Solar Energy Center, Testing and Certification, ht!p://www.fscc.ucCcdu/En/ccrli frcation-tcs(ing/i ndex .htm (last visited Feb. 28, 2021 ).
109
    Chapter 14 of the 5th edition of the Florida Building Code (Mechanical), Chapters 9 and 23 of the 5th edition of the Florida Building Code
(Residential), Chapter 15 of the 5th edition of the Florida Building Code (Building), and Chapter 4 of the 5th edition of the Florida Building Code
(Energy Conservation).
110
    Section 377.804, F.S., is established within FDACS "to provide renewable energy matching grants for demonstration, commercialization,
research, and development projects relating to renewable energy technologies and innovative technologies that significantly increase energy
efficiency for vehicles and commercial buildings."
111
    Section 377.805, F.S., states that "The Office of Energy within the Department of Agriculture and Consumer Services, in consultation with the
Public Service Commission, the Florida Building Commission, and the Florida Energy Systems Consortium, shall develop a clearinghouse of
information regarding cost savings associated with various energy efficiency and conservation measures."
112
    Section 377.808, F.S., directs FDACS to "use funds specifically appropriated to award grants under this section to assist local governments,
including municipalities, counties, and school districts, in the development and implementation of programs that achieve green standards. Green
standards shall be determined by the department and shall provide for cost-efficient solutions, reducing greenhouse gas emissions, improving quality
of life, and strengthening the state's economy."
113
    Section 377.810, F.S., establishes the program within FDACS "to help reduce transportation costs in this state and encourage freight mobility
investments that contribute to the economic growth of the state."
114
    S. 37.816, F.S.
115
    S. 377.815, F.S.
116
    Wolf, The Effectiveness of Home Rule: A Preemptions and Conflict Analysis, 83 Fla. B.J. 92 (June 2009). Historically, certain types of local action
have been found to frustrate the purpose of state law, and, thus, conflict has resulted. Specifically, Florida jurisprudence makes clear that local action
cannot 1) provide for more stringent regulation than the state legislation in violation of the express wording of the statute; 2) provide for a more
stringent penalty than that allowed by state statute; 3) prohibit behavior otherwise allowed by state legislation; 4) allow behavior otherwise prohibited
by state statute; or 5) provide for a different method for doing a particular act than the method proscribed by state legislation.
Generally, a local government can pass more stringent regulations than those provided for by statute. However, if the state legislation expressly
forbids a stricter regulation or if the imposition of a stricter regulation frustrates the purpose of the statute, the local government must abstain
117
    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).
STORAGE NAME: h0839.T1E.D0CX                                                                                                                   PAGE: 12
DATE: 3/2/2021
           Legislature must be accomplished by clear language stating that intent. 118 In cases where the
           Legislature expressly or specifically preempts an area, there is no problem with ascertaining what the
           Legislature intended. 119 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. 120

           Effect of the Bill

          The bill creates s. 377.707, F.S., relating to state preemption of energy infrastructure regulation.

          The bill prohibits local governments from implementing any law, ordinance, regulation, policy, or
          resolution that prohibits, restricts, or requires, or that has the effect of prohibiting, restricting, or
          requiring, the construction of new energy infrastructure or the expansion, upgrading, or repair of
          existing energy infrastructure, or imposing any requirement regulating energy infrastructure that is more
          stringent than state law or DEP rule.

          The bill expressly preempts the regulation of energy infrastructure to the state, and specifies that any
          existing or future law, ordinance, regulation, policy, or resolution that is contrary to the preemption is
          void.

          The bill defines the term "energy infrastructure" as "infrastructure supporting the production,
          importation, storage, and distribution of natural gas, petroleum, petroleum products, electricity,
          renewable fuels, solar energy, wind energy, biomass energy, hydrogen energy, and geothermal
          energy."

          The bill provides a Legislative finding which recognizes that affordable, reliable, and sustainable energy
          throughout the state is dependent upon energy infrastructure networks extending beyond local
          government boundaries and recognizes the importance of consumer choice in the energy market.


      B. SECTION DIRECTORY:
          Section 1 Creates s. 377.707, F.S.; providing a definition; providing legislative findings; intent;
                    prohibiting a local government from regulating energy infrastructure; preempting such
                    regulation to the state;

          Section 2 Provides for an effective date


                                 II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

      A. FISCAL IMPACT ON STATE GOVERNMENT:

          1. Revenues:
               Indeterminate. See Fiscal Comments.

          2.   Expenditures:
               Indeterminate. See Fiscal Comments.




118
    Mulligan, 934 So. 2d at 1243.
119
    Sarasota Alliance for Fair Elections, Inc. v. Browning, 28 So. 3d 880,886 (Fla. 2010).
120
    See, e.g., Nat'/ Rifle Ass 'n ofAm., Inc. v. City of S. Miami, 812 So.2d 504 (Fla. 3d DCA 2002).
STORAGE NAME: h0839.TIE .D0CX                                                                                    PAGE: 13
DATE: 3/2/2021
      B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

           1. Revenues:
                Indeterminate. See Fiscal Comments.

           2. Expenditures:
                Indeterminate. See Fiscal Comments.

     C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
           Indeterminate. See Fiscal Comments.

     D. FISCAL COMMENTS:
           Due to the breadth of the bill's preemption provisions, the potential fiscal impacts to government and
           the direct economic impact on the private sector cannot be determined.


                                                                  Ill. 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:
              Article I, section 10 of the Florida Constitution prohibits the passage of any law which impairs the
              obligation of contracts. The Florida Supreme Court has held that, relating to the interpretation of
              substantive changes to statutory law, the general rule is that in the absence of clear legislative intent
              to the contrary, a law affecting substantive rights, liabilities and duties is presumed to apply
              prospectively but not retroactively. 121 Florida courts have also held that "Even where the Legislature
              has expressly stated that a statute will have retroactive application, this Court will reject such an
              application if the statute impairs a vested right, creates a new obligation, or imposes a new
              penalty." 122

              Current law authorizes local governments to provide and contract for certain services related to
              energy infrastructure. To the extent that the bill would retroactively abrogate such authority and
              impair a local government's vested rights or contractual obligations, the bill might impair a local
              government's ability to satisfy a contractual obligation.

     B. RULE-MAKING AUTHORITY:
          None.




121
    Smiley v. State, 966 So. 2d 330, 336 (Fla. 2007). See also Eric Glazer and Louis Goetz, Florida Community Association Law: Contracts Clause
Application In An Ever-Changing Legislative Landscape, Florida Bar Journal, Vol. 89, No. 8 (Sept/Oct. 2015). "In Florida, all laws are presumed to
apply prospectively, unless they are remedial in nature, or designed to clarify law already in effect, and the legislature clearly expresses its intention
that the law is to apply retroactively."
122
    Menendez v. Progressive Exp. Ins. Co., Inc., 35 So.3d 873 (Fla. 20 I 0).
STORAGE NAME: h0839.TIE.DOCX                                                                                                                    PAGE: 14
DATE: 3/2/2021
    C. DRAFTING ISSUES OR OTHER COMMENTS:
        It is unclear whether existing state law granting local governments specific authority to regulate in the
        area of energy infrastructure (as well as the local regulations stemming from such authority) would be
        rendered void by the bill.

       Additionally, the bill prohibits local regulations that" ... have the effect of prohibiting, restricting or
       requiring, the construction of new energy infrastructure or the expansion, upgrading, or repair or
       existing energy infrastructure ... " This language could have the effect of rendering void a wide array of
       local regulations that only incidentally affect or are incidentally related to energy infrastructure. Due to
       the breadth of this language and the variation in local government regulations, these impacts cannot be
       determined.

        It is unclear whether the bill would impact a local government's ability to implement ordinances or
        policies related to the operation of their own electric and natural gas utility infrastructure.


                         IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: h0839.TIE.D0CX                                                                               PAGE: 15
DATE: 3/2/2021
FLORIDA                       H   O   U   S   E      0     F      REPRESENTATIVES




        HB 839                                                                       2021




 1                                         A bill to be entitled
 2               An act relating to state preemption of energy
 3               infrastructure regulation; creating s. 377.707, F.S.;
 4               providing a definition; providing legislative
 5               findings; intent; prohibiting a local government from
 6               regulating energy infrastructure; preempting such
 7               regulation to the state; providing an effective date.
 8
 9      Be It Enacted by the Legislature of the State of Florida:
10
11               Section 1.        Section 377.707, Florida Statutes, is created
12      to read:
13               377.707      State preemption of energy infrastructure
14      regulation.-
15               (1 )   As used in this section, the term "energy
16      infrastructure" means infrastructure supporting the production,
17      importation, storage, and distribution of natural gas,
18      petroleum, petroleum products, electricity, renewable fuels,
19      solar energy, wind energy, biomass energy, hydrogen energy, and
20      geothermal ener gy.
21               (2)    The Legislature recognizes that affordable,          reliable,
22      and sustainable energy throughout the state is dependent upon
23      energy infrastructure networks extending beyond local government
24      boundaries and recognizes the importance of consumer choice in
25      the energy market.

                                                         Page 1 of 2

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                                                                                    hb0839-00
FLORIDA                       H   O    U   S   E      0   F      REPRESENTATIVES




        HB 839                                                                 2021



26               (3)    A local government is prohibited from implementing any
27       law, ordinance, re gu lation, p olicy , or resolution that
28      prohibits, restricts, or requires, or that has the effect of
29      prohibiting, restric ting , or requiring, the construction of new
30      energy infrastructure or the expansion, upgrading, or repair of
31      existing energy infrastructure, or imposing any requirement
32      regulatinq energy infrastructure that is more stringent than
33      state law or department rule. Regulation of energy
34      infrastructure is expressly preempted to the state.
35               {4 )   Any ex isting or future law, ordinance, regulation,
36      policy, or resolution that is contrary to this section is void.
37               Section 2.        This act shall take effect July 1, 2021.




                                                       Page 2 of 2

     CODING: Words striokeR are deletions; words underlined are additions.
                                                                              hb0839-00
              TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                               HB 839 by Rep. Fabricio
                 State Preemption of Energy Infrastructure Regulation

                                  AMENDMENT SUMMARY
                                      March 3, 2021


Amendment 1 by Rep. Fabricio (Strike-all amendment):
The strike-all amendment:

   •   Limits the scope of the bill to “transportation energy infrastructure”.

   •   Defines the term “transportation energy infrastructure”.

          o    Establishes prohibitions on certain local government regulations and
               requirements related to transportation energy infrastructure, except as authorized
               by general law.

   •   Provides an exception for a local government to adopt, implement, modify, and enforce
       applicable federal and state requirements for transportation energy infrastructure
       including safety and building standards, provided it does not conflict with federal or state
       safety and security requirements for transportation energy infrastructure.

   •   Provides that any existing or future law, ordinance, regulation, policy, or resolution that is
       contrary to the bill is void.
                                                 COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                          Bill No. HB 839   (2021)
       Amendment No. 1




               COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                           (Y/N)
       ADOPTED AS AMENDED                (Y/N)
       ADOPTED W/0 OBJECTION             (Y/N)
       FAILED TO ADOPT                   (Y/N)
       WITHDRAWN                         (Y/N)
       OTHER


 1     Committee/Subcommittee hearing bill:           Tourism, Infrastructure &
 2     Energy Subcommittee
 3     Representative Fabricio offered the following:
 4
 5             Amendment (with title amendment)
 6             Remove everything aft er the enacting clause and insert:
 7     Section 1.        Section 377.707, Florida Statutes, is created to
 8     read:
 9             377.707     State preemption of transportation energy
10     infrastructure regulation. -
11             (1)   As used in this section, the term "transportation
12     energy infrastructure" means infrastructure supporting the
13     production, import, storage, and distribution of fu els used for
14     transportati on including, but not limited to, petrole um,
15     petroleum products, gasoline, diesel fuel, motor fuel,


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                                        Page 1 of 4
                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 839   (2021)
       Amendment No. 1



16     alternative fuel, marine fuel, aviation fuel,   renewable fuel,
17     natural gas, hydrogen, and electricity.
18          (2)   The Legislature finds that affordable, reliable, and
19     sustainable transportation energy throughout the state is
20     dependent upon transportation energy infrastructure networks
21     extending beyond local government boundaries and recognizes the
22     importance of consumer choice in the transportation energy
23     market. Therefore, the regulation of transportation energy
24     infrastructure is expressly preempted to the state.
25          (3)   Except as authorized by general law, a local
26     government is prohibited from:
27          (a)   Adopting or implementing any law, ordinance,
28     regulation, policy, or resolution that prohibits, restricts, or
29     requires, or that has the effect of prohibiting, restricting, or
30     requiring, the construction of new transportation energy
31     infrastructure or the expansion, upgrading, or repair of
32     existing transportation energy infrastructure, or imposing any
33     requirement regulating transportation energy infrastructure that
34     is more stringent than state law or department rule, except for
35     local ordinances regulating underground petroleum storage system
36     construction, operation, and maintenance that were enacted
37     pursuant to s. 376.317(3) (a).
38          (b)   Amending its comprehensive plan, land use map, zoning
39     districtsI or land development regulations in a manner that
40     would conflict with an existing transportation energy
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                                   Page 2 of 4
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                     Bill No. HB 839       (2021)
       Amendment No. 1



41     infrastructure classification as a permitted and allowable use
42     including, but not limited to, an amendment that causes an
43     existing transportation energy infrastructure to be a
44     nonconforming use, structure, or development.
45          (c)   Imposing transportation energy infrastructure
46     requirements that are more stringent than state law or
47     department rule.
48          (4)   This section does not limit the authority of a local
49     government to adopt, implement, modify, and enforce applicable
50     federal and state requirements for transportation energy
51     infrastructure including safety and building standards. However,
52     the exercise of local authority may not conflict with federal or
53     state safety and security requirements for transportation energy
54     infrastructure.
55          (5)   Any existing or future law, ordinance, regulation,
56     policy, or resolution that is contrary to this section is void.
57           ------------------ ---- ----------- -- ------- --------- --
58                       TITLE AMENDMENT
59          Remove everything before the enacting clause and insert:
60     An act relating to state preemption of transportation energy
61     infrastructure regulation; creating s. 377.707, F.S.; providing
62     a definition; providing legislative findings; preempting
63     regulation of transportation energy infrastructure to the state;
64     prohibiting a local government from regulating transportation


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                                    Page 3 of 4
                                         COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 839   (2021)
       Amendment No. 1



65     energy infrastructure; providing an exception; providing
66     construction; providing an effective date.




     811719 - h0839-strike.docx
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                                  Page 4 of 4
J:
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                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 6059 Composition of the Multi-use Corridors of Regional Economic Significance Program
SPONSOR(S): Shoaf
TIED BILLS:       IDEN./SIM. BILLS: SB 1590

    REFERENCE                                                        ACTION                   ANALYST             STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

     1) Tourism, Infrastructure & Energy Subcommittee                                         Johnson

    2) Commerce Committee


                                                         SUMMARY ANALYSIS
In 2019, the Legislature created the Multi-use Corridors of Regional Economic Significance (M-CORES)
program within the Department of Transportation (DOT) . The purpose of the program is to revitalize rural
communities, encourage job creation, and provide regional connectivity while leveraging technology,
enhancing quality of life and public safety, and protecting the environment and natural resources . M-CORES is
composed of the following corridors:
    • Southwest-Central Florida Connector, extending from Collier County to Polk County.
    • Suncoast Connector, extending from Citrus County to Jefferson County.
    • Northern Turnpike Connector, extending from the northern terminus of the Florida Turnpike northwest
       to the Suncoast Parkway.

The bill removes the words "to Jefferson County" from the description of the Suncoast Connector, thus
providing that the Suncoast Connector extends from Citrus County without a specified terminus.

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

The bill has an effective date of July 1, 2021 .




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h6059.TIE.DOCX
DATE : 3/1/2021
                                                     FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Current Situation

         In 2019, the Legislature passed CS/SB 7068, creating the Multi-use Corridors of Regional Economic
         Significance (M-CORES) program within the Department of Transportation (DOT). 1 The purpose of the
         program is to revitalize rural communities, encourage job creation, and provide regional connectivity
         while leveraging technology, enhancing quality of life and public safety, and protecting the environment
         and natural resources. The objective of the program is to advance the construction of regional corridors
         that are intended to accommodate multiple modes of transportation and multiple types of infrastructure.
         The intended benefits of the program include, but are not limited to, addressing issues such as:
             • Hurricane evacuation.
             • Congestion mitigation.
             • Trade and logistics.
             • Broadband, water, and sewer connectivity.
             • Energy distribution.
             • Autonomous, connected, shared, and electric vehicle technology.
             • Other transportation modes.
             • Mobility as a service.
             • Availability of a trained workforce skilled in traditional and emerging technologies.
             • Protection or enhancement of wildlife corridors or environmentally sensitive areas.
             • Protection or enhancement of primary springs protection zones and farmland preservation
                 areas. 2

         M-CORES is composed of the following corridors:
            • Southwest-Central Florida Connector, extending from Collier County to Polk County.
            • Suncoast Connector, extending from Citrus County to Jefferson County.
            • Northern Turnpike Connector, extending from the northern terminus of the Florida Turnpike
              northwest to the Suncoast Parkway. 3

        The M-CORES program required DOT to establish task forces for each of the above corridors to serve
        as a consensus building mechanism regarding each of the corridors. The Final Task Force Reports for
        each corridor were released in November 2020. 4 Each report identified a series of potential high-level
        needs for DOT's future evaluation and developed recommendations for how DOT should assess the
        need for each corridor. 5

        Effect of the Bill

        The bill removes the words "to Jefferson County" from the description of the Suncoast Connector in s.
        338.2278(2)(b), F.S.; thus, providing that the Suncoast Connector extends from Citrus County without a
        specified terminus.




1
  Ch. 2019-43, L.O.F.
2
  S. 338.2278(1), F.S.
3
  S. 338.2278(2), F.S.
4
  Copies of all three task force reports are available at: https://floridamcores.com/ (last visited February 24, 2021)
5
  M-CORES Suncoast Connector Task Force Report, p. 6. Available at https://floridamcores.com/wp-content/uploads/2020/11/M-
CORES_SCC_FinalTaskForceReport.pdf (last visited February 24, 2020)
STORAGE NAME: h6059.TIE.DOCX                                                                                           PAGE: 2
DATE: 3/1/2021
    8. SECTION DIRECTORY:
        Section 1 Amends s. 338.2278, F.S., relating to Multi-use Corridors of Regional Economic
        Significance.

        Section 2 Provides an effective date of July 1, 2021 .


                         II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
           The bill does not appear to impact state government revenues.

        2. Expenditures:
           The bill does not appear to impact state government expenditures.

    8. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
           The bill does not appear to impact local government revenues.

       2. Expenditures:
           The bill does not appear to impact local government expenditures.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        None.

    D. FISCAL COMMENTS:
        None.


                                               Ill. COMMENTS

   A. CONSTITUTIONAL ISSUES:

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

       2. Other:
          None.

    8. RULE-MAKING AUTHORITY:
       This bill does not provide a grant of rulemaking, nor does it require rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       By removing the terminus for the Suncoast Connector, the bill creates ambiguity as to the desired
       direction and purpose of that corridor.


STORAGE NAME: h6059.T1E.D0CX                                                                           PAGE: 3
DATE: 3/1/2021
                          IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
    Not applicable.




STORAGE NAME: h6059.TIE .D0CX                                            PAGE: 4
DATE: 3/1/2021
FLORIDA                       H    O   U   S   E     0   F      REPRESENTATIVES




         HB 6059                                                                    2021



 1                                         A bill to be entitled
 2                 An act relating to the composition of the Multi-use
 3                 Corridors of Regional Economic Significance Program;
 4                 amending s. 338.2278, F.S.; removing a certain
 5                 regional corridor terminus from the program; providing
 6                 an effective date.
 7
 8      Be It Enacted by the Legislature of the State of Florida:
 9

10                 Section 1.       Paragraph (b) of subsection (2) of section
11      338.2278, Florida Statutes, is amended to read:
12                 338.2278       Multi-use Corridors of Regional Economic
13      Significance Program.-
14                 (2)   The program is composed of all of the following
15      corridors:
16                 (b)   Suncoast Connector, extending from Citrus County .:e-e-
17      Je f fcrson County.
18              Section 2.          This act shall take effect July 1, 2021.




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