Florida House Tourism, Infrastructure & Energy Subcommittee meeting packet, March 9, 2021
Summary
The meeting packet for the Florida House of Representatives Tourism, Infrastructure & Energy Subcommittee of the Commerce Committee, meeting Tuesday, March 9, 2021 from 1:00 PM to 3:00 PM in Sumner Hall, under Speaker Chris Sprowls and Chair Brad Drake. The agenda lists HB 139 on electronic transactions for title certificates and registrations, HB 451 on specialty license plates, HB 539 on renewable energy, HB 613 on tax collector and license plate agency operations, HB 621 on tax collectors and their approved agents and HB 1051 on environmental compliance costs, followed by proposed committee bills. 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
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Tourism, Infrastructure & Energy
Subcommittee
Tuesday, March 09, 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
Tuesday, March 9, 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 139 by Rep. Fernandez-Barquin
Electronic Transactions for Title Certificates and Registrations
HB 451 by Rep. Hage
Specialty License Plates
HB 539 by Rep. Byrd
Renewable Energy
HB 613 by Rep. Aloupis
Tax Collector and License Plate Agency Operations
HB 621 by Rep. Williamson
Tax Collectors and Their Approved Agents
HB 1051 by Rep. Fernandez-Barquin
Environmental Compliance Costs
IV. Consideration of the following proposed committee substitute(s):
PCS for HB 839 -- Preemption of Energy Infrastructure Regulation
V. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, Florida 32399-1300
(850) 717-4873 Fax: (850) 413-0419
Committee Meeting Notice
HOUSE OF REPRESENTATIVES
Tourism, Infrastructure & Energy Subcommittee
Start Date and Time: Tuesday, March 09, 2021 01:00 pm
End Date and Time: Tuesday, March 09, 2021 03:00 pm
Location: Sumner Hall (404 HOB)
Duration: 2.00 hrs
Consideration of the following bill(s):
HB 139 Electronic Transactions for Title Certificates and Registrations by Fernandez-Barquin
HB 451 Specialty License Plates by Hage
HB 539 Renewable Energy by Byrd
HB 613 Tax Collector and License Plate Agency Operations by Aloupis
HB 621 Tax Collectors and Their Approved Agents by Williamson
HB 1051 Environmental Compliance Costs by Fernandez-Barquin
Consideration of the following proposed committee substitute(s):
PCS for HB 839 -- Preemption of Energy Infrastructure Regulation
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 . Reg istration closes three hours before
the meeting starts.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 139 Electronic Transactions for Title Certificates and Registrations
SPONSOR(S): Fernandez-Barquin
TIED BILLS: IDEN./SIM. BILLS: SB 754
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
County tax collectors, as authorized agents of the Department of Highway Safety and Motor Vehicles
(DHSMV), issue motor vehicle and vessel registration certificates, motor vehicle registration license plates and
validation stickers, and vessel numbers and decals to applicants.
The bill authorizes tax collectors to accept vehicle and vessel title applications and vessel registrations by
electronic means, and authorizes tax collectors to use electronic mail addresses in the same manner as
DHSMV for motor vehicle titling and vessel titling and registration. The bill also authorizes tax collectors to
contract with vendors for technology services in order to provide vehicle titling and vessel-related transactions
by electronic and telephonic means.
The bill also provides that for motor vehicle and vessel titling an electronic signature is acceptable if it satisfies
statutory requirements for an electronic signature. However, for motor vehicle titling, the electronic signature
must meet specified National Institute of Standards and Technology standards.
The bill provides that tax collection systems other than DHSMV's Florida Real Time Vehicle Information
System (FRVIS) provided by a tax collector's approved vendor for registration renewal transactions must be
performed on behalf of an applicant either at a county tax collector's office or via a county tax collector's
website. Upon a tax collector's request, DHSMV must provide the tax collector and his or her approved
vendors with certain data access and interface functionality. This data and functionality must be used to
process renewal transactions. The data and functionality must include bulk data for vehicle registrations which
includes each applicant's current residential address and electronic mail address and the ability to record
registration renewals in real time. This data and functionality may be used only for fulfilling the tax collector's
statutory duties and may not be resold or used for any other purpose.
The bill also requires DSHMV to ensure that tax collectors' approved vendors protect customer privacy and
data collection.
The bill may have a negative fiscal impact to state government expenditures. See Fiscal Analysis for details.
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.
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Tax Collectors
County tax collectors are authorized agents of the Department of Highway Safety and Motor Vehicles
(DHSMV) that issue motor vehicle and vessel registration certificates, motor vehicle registration license
plates and validation stickers, mobile home stickers, and vessel numbers and decals to applicants. 1
The law specifies the service fees tax collectors are authorized to collect in exchange for providing
these registration and titling services. 2 Each tax collector must keep a full and complete record and
account of all validation stickers, mobile home stickers, vessel decals, or other properties received by
him or her from DHSMV. 3
Currently, 65 counties have elected tax collectors who are constitutional officers. Currently, Broward
and Miami-Dade Counties have appointed tax collectors under each county's charter government. 4
Sixteen counties have, or have until recently had, contracts with privately operated license plate agents
(LPAs) to perform title and registration services for motor vehicles, mobile homes, trailers, and
vessels. 5
Many tax collectors hire vendors to assist with mailing, cashiering, deploying kiosks, providing online
services, and performing other duties. When requested by a tax collector, DSHMV routinely provides
access to data, both in real-time and through batch processes, to the tax collector's vendors for the
purpose of providing support to the requesting tax collector. Some of the data provided contains
personal information 6 which is confidential pursuant to the federal Driver's Privacy Protection Act
("DPPA") of 1994. 7 Such information may be released only as authorized by that act.
To ensure compliance with DPPA, DSHMV practices data minimization, so that personal information
from driver license records is provided to agents and vendors only when it is directly related to a
specified task deemed necessary by DSHMV or Legislature. Once the specified purpose has been
completed, this practice requires that shared data be securely destroyed or otherwise rendered
unreadable. Data minimization also decreases risks of data loss and breaches. 8
DHSMV Information Systems
DHSMV's Florida Real Time Vehicle Information System (FRVIS) is the database application used to
title and register all motor vehicles, mobile homes, trailers, and vessels in Florida. It provides real-time
access to extensive transactional information 9 on every motor vehicle, mobile home, trailer, and vessel
and titled or registered in the state to include owner residential and electronic mail addresses. 10
Florida law11 requires that FRVIS be installed in every tax collector's and LPA's office according to a
schedule established by DHSMV in consultation with the tax collectors and contingent upon funds
1
Ss. 320.03(1) and 328.73(1), F.S.
2
See ss. 320.04 and 319.32, F.S.
3
Ss. 320.03(3) and 328.73(2), F.S.
4
Pursuant to s. l(d), Art. VIII of the State Constitution, Broward and Miami Dade counties will have elected tax collectors effective
January 7, 2025.
5
Department of Highway Safety and Motor Vehicles, Agency Analysis of202 l House Bill 139, p.3.
6
See 18 U.S.C. s. 2725
7
See 18 U.S.C. ss. 2721 et seq.
8
Department of Highway Safety and Motor Vehicles, Agency Analysis of2021 House Bill 139, p.3.
9
"Transactional information" refers to information used, accessed, or collected for purpose of a customer transaction.
10
Department of Highway Safety and Motor Vehicles, Agency Analysis of2021 House Bill 139, p.3.
11
S. 320.03(4)(b), F.S.
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being made available for the system. DSHMV administers FRVIS in consultation with the Florida Tax
Collectors, Inc., to ensure that each county tax collector's office is technologically equipped and
functional for the operation of FRVIS. Only DHSMV, tax collectors, and LPAs have access to FRVIS.
This access is governed by individual memoranda of understanding (MOUs) between DSHMV and
each tax collector and, if a tax collector has an LPA, by an additional MOU between DHSMV, each
such tax collector, and the LPA contracted with the tax collector. Sections 320.03(5) and 328.73(3),
F.S., impose a 50 cent fee on each motor vehicle, mobile home, and vessel registration to cover the
operation of FRVIS. That fee is deposited into the Highway Safety Operating Trust Fund. 12
Access to DSHMV systems and data is governed by various MOUs between DHSMV, tax collectors,
and other third-party entities. The MOUs document how the data will be used and protected, ensuring
compliance with various state and federal laws, including the Driver Privacy Protection Act (DPPA). 13
Currently, the amount and type of data provided to a third-party entity is based on the business use of
the data by that entity. For example, a tax collector's vendor providing motor vehicle kiosk services for
vehicle registration renewals is provided a different data set than a tax collector's vendor that prints and
mails motor vehicle renewal notices. 14
Any tax collector or LPA opening a new office or expanding existing offices initially purchases the
equipment needed for title and registration services. DHSMV periodically refreshes outdated equipment
and pays the cost of the new equipment 15 for both tax collector's and LPA's offices. LPAs reimburse
DSHMV for recurring costs, such as internet access, for each location, unless the LPA office is
collocated with a tax collector's office and the costs are shared.
Motorist Modernization
Phase II of DHSMV's Motorist Modernization program will redevelop all systems and processes
supporting motor vehicle, mobile home, trailer, and vessel titling and registration. Phase II will be
implemented in two separate releases. The program will first focus on replacing the legacy FRVIS
system with the new ORION system for field-office issuances, including the integration of an off the
shelf solution for certain commercial motor vehicle transactions. The program will next focus on
replacing FRVIS functions performed by administrative staff in Tallahassee headquarters and adding
additional motor vehicle functionality to MyDMVPortal. Phase II will be completed in late 2023 or early
2024. 16
Collection of E-Mail Addresses
Sections 319.40(1), 320.95(2), and 328.30(3), F.S., authorize DHSMV to collect electronic mail
addresses and use electronic mail, in lieu of the U.S. Postal Service, for purposes of renewal notices
associated, respectively, with motor vehicle, mobile home, and trailer titling; motor vehicle, mobile
home, and trailer registrations; and vessel registrations.
Section 119.0712 (2)(c), F.S., exempts e-mail addresses collected by DHSMV pursuant toss.
319.40(3), F.S., (relating to motor vehicle, mobile home, and trailer titling) and 320.95(2), F.S., (relating
to motor vehicle, mobile home and trailer registrations) from disclosure under the state's public records
laws. 17
Electronic Signatures
Florida has adopted the Uniform Electronic Transactions Act, which provides that electronic signatures
have the same legal effect as traditional handwritten signatures. 18 On June 30, 2000, the federal
12
Department of Highway Safety and Motor Vehicles, Agency Analysis of202 l House Bill 139, p.3 .
13
Id. at 4.
14 Id.
15
This is contingent on appropriated funds.
16
Department of Highway Safety and Motor Vehicles, Agency Analysis of2021 House Bill 139, p.4.
17 Id. at 6-7.
18
Sees. 668.50, F.S
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Electronic Signatures in Global and National Commerce Act (E-Sign Act) became law, providing
electronic signatures the same legal effect as handwritten signatures and establishing a general rule
that electronic records and signatures are valid for transactions in or affecting interstate or foreign
commerce. The E-Sign Act allows the use of electronic records to satisfy any statute, regulation, or rule
of law requiring that such information be provided in writing, if the consumer has affirmatively
consented to such use and has not withdrawn such consent. 19
In September 2019, the National Highway Traffic Safety Administration (NHTSA) announced the
publication of a final rule establishing standards by which states may allow for odometer disclosures in
an electronic format. Odometer fraud is a federal crime, and NHTSA rules have required sellers to
disclose vehicle odometer readings at the time of sale for decades. However, most vehicle transfers
have been subject to a requirement that odometer disclosures be made in a paper format with
handwritten names and wet ink signatures. This rule removes the paper requirement by allowing for
electronic disclosure systems that have robust security and authentication. 20
Based on the NHTSA regulation noted above, s. 319.30(3)(d), F.S., was enacted so an electronic
signature consistent with ch. 668, F.S., 21 satisfies any signature required under circumstances involving
motor vehicles, mobile homes, and trailers, that are a total loss. However, an electronic signature
relating to an odometer disclosure submitted through an insurance company must be executed using
an electronic signature, as defined ins. 668.003(4), F.S., which uses a system assurance levels, as
described in the National Institute of Standards and Technology Special Publication 800-63-3, as of
December 1, 2017, which are equivalent to or greater than Level 2, for each level, for a certificate of
destruction or Level 3, for each level, for a salvage certificate of title.
Effect of the Bill
Acceptance of Transactions by Electronic or Telephonic Means and E-mail
The bill authorizes tax collectors to accept title applications and vehicle and vessel title applications and
registrations by electronic means and authorizes tax· collectors to collect and use e-mail addresses in
the same manner as DHSMV for the purposes of motor vehicle titling and vessel titling and registration.
Tax Collector and Vendor Contracts for Technology Services
The bill authorizes tax collectors to contract with vendors for technology services in order to provide
vehicle titling and vessel-related transactions by electronic and telephonic means.
This may authorize tax collectors, through their vendors, to create or develop alternative motor vehicle,
mobile home, trailer, and vessel titling systems, independent of FRVIS as well as the systems being
developed as part of DSHMV's Motorist Modernization, Phase 11. 22
Use of Electronic Signatures
The bill also provides that for motor vehicle and vessel titling, an electronic signature that is consistent
with Ch. 668, F.S., relating to electronic commerce, satisfies any signature requirement for motor
vehicle and vessel registrations. However, there is an exception for motor vehicle titling where the
electronic signature must be executed using an electronic signature as defined ins. 668.003(4), F.S., 23
which uses a system providing specified assurance levels as described in the National Institute of
19
15 U.S.C. ss. 7001, et. seq.
20
See, 49 C.F.R. s. 580.5.
21 Chapter 668, F.S., relates to electronic commerce.
22
Department of Highway Safety and Motor Vehicle, Agency Analysis of2021 House Bill 139, p. 8.
23
Section 668.003(4), F.S., defines the term "electronic signature" as any letters, characters, or symbols, manifested by electronic or
similar means, executed or adopted by a party with an intent to authenticate a writing. A writing is electronically signed if an
electronic signature is logically associated with such writing.
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Standards and Technology Special Publication 800-:-63-3, 24 as of December 1, 2017, which are
equivalent to or greater than Level 2 (for odometer statements).
Additionally, the bill permits the use of electronic signatures of as defined ins. 668.003(4), F.S., for any
signature required for an application required under ch. 328, F.S. (relating to vessel registrations).
Authority for Tax Collectors' "Other Tax Collection Systems"
The bill amends s. 320.03(5), F.S., relating to motor vehicle, motor home, and trailer registrations, to
provide that:
• Upon a tax collector's request, DHSMV must provide the tax collector and his or her approved
vendors with data access and interface functionality, including, but not limited to, data access
and interface functionalities, other third parties receive from DHSMV.
• The data and functionality be used only for the purpose of processing renewal transactions.
• Such data functionality must include bulk data for vehicle renewal transactions, including
customers' residential address and e-mail address and "the ability to record registration renewal
in the state system in real time."
• An "approved vendor" is defined as a third-party entity that has a contract with tax collectors and
a MOU with DOT to assist tax collectors in carrying out their duties with respect to motor
vehicle, motor home, and trailer registrations, in accordance with federal or state law.
• The data and functionality provided to tax collectors' third-party vendors may not be resold or
used for any other purpose.
The bill amends s. 328.73(1), F.S., to provide similar authority as to "tax collections systems" used for
vessel registrations. However, the changes to s. 328.73(1), F.S., do not define the term "approved
vendor" which is included in the proposed amendments to s. 320.03(5), F.S., and described above.
These provisions may authorize tax collectors, through their vendors, to deploy alternative motor
vehicle, mobile home, trailer, and vessel titling systems, independent of the FRVIS as well as the
systems being developed as a part of Motorist Modernization, Phase II, and/or require DOT to provide
individualized interfaces for the tax collectors' other tax systems.
The bill has an effective date of July 1, 2020.
B. SECTION DIRECTORY:
Section 1 Amends s. 319.40, F.S., relating to transactions by electronic or telephonic means.
Section 2 Amends s. 320.03, F.S., relating to the registration duties of tax collectors.
Section 3 Amends s. 328.30, F.S., relating to transactions by electronic or telephonic means.
Section 4 Amends s. 328.73, F.S., relating to the registration duties of tax collectors.
Section 5 Provides an effective date of July 1, 2021.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
24
A copy of this publication is available at: https://www.nist.gov/publications/search?k=800-63-
3&d%5Bmin%5D=&d%5Bmax%5D=&t=&a=&s=All&n= (last visited January 7, 2021).
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2. Expenditures:
See Fiscal Comments.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may create additional contracts between the county tax collectors and vendors providing
technology services to tax collectors.
D. FISCAL COMMENTS:
The bill requires DHSMV, upon the request of any tax collector, to create and maintain interfaces to
support the integration of their vendors' technology systems and provide their vendors with the ability to
record motor vehicle, mobile home, and vessel registration renewals in the FRVIS in real-time. The
FRVIS is operated and maintained using a 50 cent fee on each motor vehicle, mobile home, and vessel
registration, which is deposited into the Highway Safety Operating Trust Fund. To the extent that the bill
causes DSHMV to create more interfaces to the FRVIS (and/or the replacement functions in Motorist
Modernization, Phase II) for tax collectors' vendor-provided systems, the funding required to develop
those interfaces likely will increase and potentially impair the ability of the Trust Fund to pay all of the
costs currently associated with FRVIS, its interfaces, and the Motorist Modernization Project, as well as
equipment refreshes for tax collectors and LPAs .25
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 of counties or municipalities to raise
revenues in the aggregate; or reduce the percentage sales tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not provide a grant of rulemaking , nor does it require rulemaking .
C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill amend ss . 319.40(3) and 328 .30(3), F.S., authorizing tax collectors, in addition to DSHMV, to
collect e-mail addresses . This may create a public records issue, especially if the e-mail addresses that
tax collectors collect are maintained in an "other tax collection system" or if the electronic mail
addresses are to be used for a purpose unrelated to the tax collector's duties pursuant to chs. 319 and
25
Department of Highway Safety and Motor Vehicles, Agency Analysis of2021 House Bill 139, p. 10. (March 5, 2021)
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320, F.S. Section 119.0712(2)(c), F.S., only exempts e-mail addresses collected by DSHMV pursuant
toss. 319.40(3) (relating to motor vehicle, mobile home, and trailer titling) and 320.95(2) (relating to
motor vehicle, mobile homes and trailer registrations) from disclosure pursuant to s. 119.07(1 ), F.S.,
and s. 24(1) of Article I of the State Constitution.
Additionally, these e-mail addresses may be considered personal information under the federal Driver
Privacy Protection Act which prohibits a state department of motor vehicles , and any officer, employee,
or contractor thereof from knowingly disclosing the information unless it is for one the permissible uses
set forth in the law. 26
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
26 Id. at 14.
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 139 2021
1 A bill to be entitled
2 An act relating to electronic transactions for title
3 certificates and registrations; amending s. 319.40,
4 F.S.; authorizing tax collectors to accept
5 applications for motor vehicle certificates of title
6 by electronic or telephonic means and to collect
7 electronic mail addresses for use as a method of
8 notification; authorizing tax collectors to contract
9 with vendors to provide electronic and telephonic
10 transactions; providing that an electronic signature
11 that meets certain requirements satisfies any
12 signature required for an application for a
13 certificate of title; providing an exception; amending
14 s. 320.03, F.S.; specifying tax collection systems for
15 which certain fees may be used for integration with
16 the Florida Real Time Vehicle Information System;
17 requiring the Department of Highway Safety and Motor
18 Vehicles to provide tax collectors and their approved
19 vendors with certain data access and interface
20 functionality; specifying authorized uses for such
21 data and functionality; defining the term "approved
22 vendor"; requiring the department to ensure that
23 approved vendors protect customer privacy and data
24 collection; amending s. 328.30, F.S.; authorizing tax
25 collectors to accept applications for vessel
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26 certificates of title by electronic or telephonic
27 means and to collect electronic mail addresses for use
28 as a method of providing renewal notices; authorizing
29 tax collectors to contract with vendors to provide
30 electronic and telephonic transactions; providing that
31 an electronic signature that meets certain
32 requirements satisfies any signature required for an
33 application for a certificate of title; amending s.
34 328.73, F.S.; authorizing certain tax collection
35 systems for in-person and online transactions;
36 requiring the department to provide tax collectors and
37 their approved vendors with certain data access and
38 interface functionality; specifying authorized uses
39 for such data and functionality; providing an
40 effective date.
41
42 Be It Enacted by the Legislature of the State of Florida:
43
44 Section 1. Section 319.40, Florida Statutes, is amended to
45 read:
46 319.40 Transactions by electronic or telephonic means.-
47 (1) The department and tax collectors may accept any
48 application provided for under this chapter by electronic or
49 telephonic means.
50 (2) The department may issue an electronic certificate of
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51 title in lieu of printing a paper title.
52 (3) The department and tax collectors may collect
53 electronic mail addresses and use electronic mail in lieu of the
54 United States Postal Service as a method of notification.
55 However, any notice regarding the potential forfeiture or
56 foreclosure of an interest in property must be sent via the
57 United States Postal Service.
58 (4) Tax collectors may contract with vendors for
59 technology services in order to provide transactions by
60 electronic and telephonic means provided for under this chapter.
61 (5) An electronic signature that is consistent with
62 chapter 668 satisfie s any signat ure required for an application
63 under this chapter, except when the electronic signature must be
64 executed using an electronic signature as defined ins .
65 668.003(4), which uses a s y stem providing an Identity Assurance
66 Level, Authenticator Assurance Level, and Federation Assurance
67 Level, as described in the National Institute of Standards and
68 Technology Special Publication 800-63-3, as of December 1, 2017,
69 which are equivalent to or greater than Level 2.
70 Section 2. Subsection (5) of section 320.03, Florida
71 Statutes, is amended to read:
72 320.03 Registration; duties of tax collectors;
73 International Registration Plan.-
74 (5) In addition to the fees required under s. 320.08, a
75 fee of 50 cents shall be charged on every license registration
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76 sold to cover the costs of the Florida Real Time Vehicle
77 Information System. The fees collected shall be deposited into
78 the Highway Safety Operating Trust Fund to be used exclusively
79 to fund the system. The fee may only be used to fund the system
80 equipment, software, personnel associated with the maintenance
81 and programming of the system, and networks used in the offices
82 of the county tax collectors as agents of the department and the
83 ancillary technology necessary to integrate the system with
84 other tax collection systems. Other tax collection systems
85 include technology systems provided by a tax collector's
86 approved vendors for registration renewal transactions,
87 including, but not limited to, renewal of motor vehicle and
88 mobile home registration certificates, registration license
89 plates, and validation stickers. Such registration renewal
90 transactions shall be performed on behalf of an applicant either
91 in person at a county tax collector's office or online via a
92 county tax collector's website. Upon a tax collector's request,
93 the department shall provide the tax collector and his or her
94 approved vendors with data access and interface functionality,
95 including, but not limited to, data access and interface
96 functionality that other third parties receive from the
97 department. Such data and functionality shall be used for the
98 purpose of processing renewal transactions and shall include,
99 but not be limited to, bulk data for vehicle registrations which
100 includes each applicant's current residential address and
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101 electronic mail address collected under s. 320.95 and the
102 ability to record registration renewals in the state system in
103 real time. Such data and functionality may be used only for
104 purposes of fulfilling the tax collector ' s statutory duties and
105 may not be resold or used for any other purpose. For purposes of
106 this subsection, the term "approved vendor" means a third-party
107 entity that has a contract with tax collectors, and a memorandum
108 of understanding with the department, to assist tax collectors
109 in carrying out their duties under this chapter and in
110 accordance with federal and state law. The department shall
111 administer this subsection program upon consultation with the
112 Florida Tax Collectors, Inc., to ensure that each county tax
113 collector's office is technologically equipped and functional
114 for the operation of the Florida Real Time Vehicle Information
115 System and that tax collectors' approved vendors protect
116 customer privacy and data collection. Any designated revenue
117 collected to support functions of the county tax collectors and
118 not used in a given year must remain exclusively in the trust
119 fund as a carryover to the following year.
120 Section 3. Section 328.30, Florida Statutes, is amended to
121 read:
122 328.30 Transactions by electronic or telephonic means.-
123 (1) The department and tax collectors may accept any
124 application provided for under this chapter by electronic or
125 telephonic means.
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126 (2) The department may issue an electronic certificate of
127 title in lieu of printing a paper title.
128 (3) The department and tax collectors may collect
129 electronic mail addresses and use electronic mail in lieu of the
130 United States Postal Service for the purpose of providing
131 renewal notices.
132 (4) Tax collectors may contract with vendors for
133 technology services in order to provide transactions by
134 electronic and telephonic means provided for under this chapter.
135 (5) An electronic signature that is consistent with
136 chapter 668 satisfies any signature required for an application
137 under this chapter.
138 Section 4. Subsection (1) of section 328.73, Florida
139 Statutes, is amended to read:
140 328.73 Registration; duties of tax collectors.-
141 (1) The tax collectors in the counties of the state, as
142 authorized agents of the department, shall issue registration
143 certificates and vessel numbers and decals to applicants,
144 subject to the requirements of law and in accordance with rules
145 of the department. Tax collection systems may include technology
146 systems provided by vendors contracted with tax collectors for
147 in-person and online vessel registration certificates and vessel
148 numbers and decals. Upon a tax collector's request, the
149 department shall provide the tax collector and his or her
150 approved vendors with data access and interface functionality,
Page 6 of 7
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hb0139-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 139 2021
151 including, but not limited to, data access and interface
152 functionality that other third parties receive from the
153 department. Such data and functionality shall be used for the
154 purpose of processing renewal transactions and shall include,
155 but not be limited to, bulk data for vessel registrations which
156 includes each applicant's current residential address and
157 electronic mail address collected under s. 320.95 and the
158 ability to record registration renewals in the state system in
159 real time. Such data and functionality may be used only for
160 purposes of fulfilling the tax collector's statutory duties and
161 may no t be resold or used fo r any other purpose.
162 Section 5. This act shall take effect July 1, 2021.
Page 7 of 7
CODING: Words stricken are deletions; words underlined are additions.
hb0139-00
TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE
HB 139 by Rep. Fernandez-Barquin
ELECTRONIC TRANSACTIONS for TITLE CERTIFICATES and
REGISTRATIONS
AMENDMENT SUMMARY
MARCH 9, 2021
Amendment 1 (Strike-All Amendment) by Rep. Fernandez-Barquin (# 150159)
• Removes provisions regarding motor vehicle titling.
• Removes provisions regarding electronic signatures.
• Authorizes the Department of Highway Safety and Motor Vehicles (DHSMV) and
tax collectors to use e-mail addresses to perform their statutory duties.
• Provides that email addresses must be maintained in a manner to ensure that
the addresses are exempt from public records requirements.
• Requires tax collectors and third-party contractors with access to DHSMV
systems to enter into a memorandum of understanding with DHSMV regarding
the use of DSHMV’s computer systems.
• Authorizes the existing fee charged on certain motor vehicle registrations to be
used to ensure ancillary technology and other tax collection systems protect
customer privacy data.
• Requires DHSMV, upon a tax collector’s request, to provide certain ancillary
technology to integrate other tax collection systems with data access and uniform
interface functionalities.
• Provides specific purposes that DHSMV data may be used for.
• Requires certain data access and uniform interface functionalities to be
developed by July 1, 2023.
• Defines the term “registration renewal transactions.”
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 139 (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 Fernandez-Barquin offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Paragraph (a) of subsection (4) and subsection
8 (5) of section 320.03, Florida Statutes, are amended to read:
9 320.03 Registration; duties of tax collectors;
10 International Registration Plan.-
11 ( 4) (a) Each tax collector.L er third party contracted with
12 a tax collector, or license tag agent.L who has online computer
13 access to the department's systems or department data center or
14 other reasonable access thereto shall enter into a memorandum of
15 understanding with the department and shall, except when the
16 department has issued a registration renewal notice, upon
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Page 1 of 8
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 139 (2021)
Amendment No. 1
17 receipt of an application for the registration of any motor
18 vehicle, determine from the driver file of the applicant whether
19 the applicant's driver license has been canceled, suspended, or
20 revoked and, if so, whether the applicant has surrendered his or
21 her license to the department as required bys. 322.251. If the
22 applicant has not surrendered his or her license in accordance
23 with the provisions of that section, the tax collector shall
24 refuse to register the vehicle until such time as the applicant
25 surrenders his or her driver license to the department.
26 (5)~ In addition to the fees required under s. 320.08, a
27 fee of 50 cents shall be charged on every license registration
28 sold to cover the costs of the Florida Real Time Vehicle
29 Information System. The fees collected shall be deposited into
30 the Highway Safety Operating Trust Fund to be used exclusively
31 to fund the system. The fee may only be used t o fund t he system
32 equipment, software, personnel associated with the maintenance
33 and programming of the system, and networks used in the offices
34 of the county tax collectors as agents of the department and the
35 ancillary technology necessar y to integrate the syst em with
36 other tax collection systems . The department shall administer
37 this program upon consultation with the Florida Tax Collectors,
38 Inc., to ensure that each county tax collector's office is
39 technologically equipped and functional for the operation of the
40 Florida Real Time Ve hicle Information System and to ens ure that
41 all ancillary technology and other tax collection syst e ms used
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 139 (2021)
Amendment No. 1
42 by tax collectors protect customer privacy and data. Any
43 designated revenue collected to support functions of the county
44 tax collectors and not used in a given year must remain
45 exclusively in the trust fund as a carryover to the following
46 year.
47 (b) Upon a tax collector's request, the department shall
48 provide ancillary technology to integrate other tax collection
49 systems used by tax collectors in order to provide tax
50 collectors with data access and uniform interface
51 functionalities for registration r~newal transactions performed
52 at a tax collector's office or online via a tax collector's
53 website. The data access and uniform interface functionalities
54 include, but are not limited to, data access and interface
55 functionalities that other third parties receive from the
56 department. The department shall prescribe the best manner of
57 delivering the data access and uniform interface functionalities
58 to tax collectors for the purpose of processing registration
59 renewal transactions and shall provide the ability to record and
60 process registration renewal transactions in the state system in
61 real time and bulk data reporting for vehicle registrations,
62 including each applicant's electronic mail address collected
63 pursuant to s. 320.95. Such data and functionality may be used
64 only for purposes of fulfilling the tax collector's statutory
65 duties pursuant to this chapter, chapter 319, chapter 322, or
66 chapter 328 and may not be resold or used for any other purpose.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 139 (2021)
Amendment No. 1
67 Such data access and uniform interface functionalities shall be
68 developed no later than July 1, 2023. For the purposes of this
69 paragraph , the term " registration renewa l transactions" means
70 issuance of motor vehicle, mobile home, and trailer registration
71 certificates, registration license plates, and validation
72 stickers.
73 Section 2. Subsection (2) of section 320.95, Florida
74 Statutes, is amended to read:
75 320.95 Transactions by electronic or telephonic means.-
76 (2) The department and tax collectors may collect
77 electronic mail addresses and use electronic mail in lieu of the
78 United States Postal Service for the purpose of providing
79 renewal notices. The department and tax collectors may also use
80 electronic mail addresses to perform their statutory duties
81 pursuant to this chapter, chapter 319, chapter 322, or chapter
82 328. Electronic mail addresses collected for purposes of this
83 chapter shall be maintained in a manner to ensure the addresses
84 are exempt from public records requirements pursuant to s.
85 119.0712.
86 Section 3. Subsection (3) of section 328.30, Florida
87 Statutes, is amended to read:
88 328.30 Transactions by electronic or telephonic means.-
89 (3) The department and tax collectors may collect
90 electronic mail addresses and use electronic mail in lieu of the
91 United States Postal Service for the purpose of providing
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 139 (2021)
Amendment No. 1
92 renewal notices. The department and tax collectors may also use
93 electronic mail addresses to perform their statutory duties
94 pursuant to this chapter, chapter 319, chapter 320, or chapter
95 322. Electronic mail addresses collected for purposes of this
96 chapter shall be maintained in a manner to ensure the addresses
97 are exempt from public records requirements pursuant to s.
98 119.0712.
99 Section 4. Subsection (1) of section 328.73, Florida
100 Statutes, is amended to read:
101 328.73 Registration; duties of tax collectors.-
102 (1)~ The tax collectors in the counties of the state, as
103 authorized agents of the department, shall issue registration
104 certificates and vessel numbers and decals to applicants,
105 subject to the requirements of law and in accordance with rules
106 of the department.
107 (b) Upon a tax collector's request, the department shall
108 provide ancillary technology to integrate other tax collection
109 systems used by tax collectors in order to provide tax
110 collectors with data access and uniform interface
111 functionalities for registration renewal transactions performed
112 at a tax collector's office or online via a tax collector's
113 website. The data access and uniform interface functionalities
114 include, but are not limited to, data access and interface
115 functionalities that other third parties receive from the
116 department. The department shall prescribe the best manner of
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Page 5 of 8
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 139 (2021)
Amendment No. 1
117 delivering the data access and uniform interface functionalities
118 to tax collectors for the purpose of processing registration
119 renewal transactions and shall provide the ability to record and
120 process registration renewal transactions in the state system in
121 real time and bulk data reporting for vessel registrations,
122 including each applicant's electronic mail address collected
123 pursuant to s. 320.95. Such data and functionality may be used
124 only for purposes of fulfilling the tax collector's statutory
125 duties pursuant to this chapter , chapter 319, chapter 320, or
12 6 chapter 322 and may not be resold or used for any other purpose.
127 Such data access and uniform interface functionalities shall be
128 developed no later than July 1, 2023. For the purposes of this
129 paragraph, the term "registration renewal transactions" means
130 vessel registration certificates, vessel numbers, and decals.
131 Section 5. This act shall take effect July 1, 2021.
132
133
134 -- --------- -------- -------------------- - ------ ---- - - -
135 TITLE AMENDMENT
136 Remove everything before the enacting clause and insert:
137 An act relating to motor vehicle and vessel registration data;
138 amending s. 320.03, F.S.; requiring tax collectors or third
139 parties contracted with tax collectors to enter into a
140 memorandum of understanding with the Department of Highway
141 Safety and Motor Vehicles and make certain determinations
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Page 6 of 8
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 139 (2021)
Amendment No. 1
142 regarding registration applicants; requiring the department to
143 ensure that certain technology used by tax collectors protects
144 customer privacy and data; requiring the department to provide
145 certain technology to tax collectors upon request in order to
146 provide data access and uniform interface functionalities for
147 registration renewal transactions; providing requirements;
148 authorizing use of such data and functionality for certain
149 purposes; requiring development of data access and uniform
150 interface functionalities by a certain date; defining the term
151 "registration renewal transactions"; amending s. 320.95, F.S.;
152 authorizing tax collectors to collect electronic mail addresses
153 for the purpose of providing renewal notices; authorizing the
154 department and tax collectors to use electronic mail addresses
155 in the performance of certain duties; requiring electronic mail
156 addresses to be maintained in a certain manner; amending s.
157 328.30, F.S.; authorizing tax collectors to collect electronic
158 mail addresses for the purpose of providing renewal notices;
159 authorizing the department and tax collectors to use electronic
160 mail addresses in the performance of certain duties; requiring
161 electronic mail addresses to be maintained in a certain manner;
162 amending s. 328.73, F.S.; requiring the department to provide
163 certain technology to tax collectors upon request in order to
164 provide data access and uniform interface functionalities for
165 registration renewal transactions; providing requirements;
166 authorizing use of such data and functionality for certain
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 139 (2021)
Amendment No. 1
167 purposes; requiring development of data access and uniform
168 interface functionalities by a certain date; defining the term
169 "registration renewal transactions"; providing an effective
170 date.
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Page 8 of 8
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 451 Specialty License Plates
SPONSOR(S): Hage and others ,
TIED BILLS: IDEN./SIM. BILLS: SB 958
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 Honor Flight 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 "Honor Flight"
appearing at the bottom of the plate. The annual use fees are distributed equally among Florida's Honor Flight
Network hubs.
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 : h0451 .TIE.DOCX
DATE: 3/5/2021
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 Legislature 2 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 sales 9 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(1), F.S.
6
The processing fee is prescribed ins. 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 an out-of-state college or university license plate, the license plate must register 4,000 voucher sales.
10
S. 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.
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DATE: 3/5/2021
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 ins. 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.
Honor Flight's mission is to transport America's veterans to Washington, D.C., to visit the memorials
dedicated to honoring those who have served and sacrificed for our country. It is a national network of
independent hubs working together to further Honor Flight's mission. The network currently serves
veterans from World War 11, the Korean War, and the Vietnam War, as well as terminally ill veterans
who served during any era. 23 Florida's Honor Flight Network hubs are non-profit corporations under s.
501 (c)(3) of the Internal Revenue Code. Honor Flight Hubs in Florida include Collier-Lee, First Coast,
Central Florida, West Central Florida, South Florida, Tallahassee, Southeast Florida, Southwest
Florida, Space Coast, and Villages. 24
Effect of the Bill
The bill creates the Honor Flight license plate, with an annual use fee of $25. 25 The plate must bear
DHSMV-approved colors and designs, with "Florida" appearing at the top of the plate and "Honor
Flight" appearing at the bottom of the plate.
The annual use fees from the sale of the plate are distributed equally among Florida's Honor Flight
Network Hubs. Up to 1O percent of the fees from the sale of the plate may be used for marketing the
plate and costs directly associated promoting and marketing the license plate. The remaining fees must
be used to further Honor Flight's mission.
The bill has an effective date of October 1, 2021 .
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 ins. 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
Honor Flight, https://www.honorflight.org/about-us.html (last visited February 2, 2021 ).
24
Honor Flight, https://www.honorflight.org/regional-honor-flight-hubs.html#florida (last visited March 5, 2021).
25
The $25 annual use fee is provided for in existing s. 320.08056(3)(d), F.S.
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DATE: 3/5/2021
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.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues :
None.
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.26 This programing can be done using existing DHSMV resources.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Once the license plate goes into production, Florida's Honor Flight Network hubs 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 .
26
Email from Kevin Jacobs, Legislative Affairs Director, Florida Department of Highway Safety and Motor Vehicles, RE: Specialty
License Plates, January 26, 2021.
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DATE: 3/5/2021
C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill requires the fees from the sale of the Honor Flight license plate to be used to transport military
veterans to Washington, D.C., to visit memorials dedicated to honoring military sacrifices to the United
States of America. However, s. 320.08056(10)(a), F.S., provides that annual use fees for specialty
license plates may be expended only in this state, but provides exceptions for specified United States
Armed Forces license plates. The sponsor may wish to add the Honor Flight license plate to the plates
which are exceptions from the requirement that the proceeds be expended only within this state.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
Not applicable.
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DATE: 3/5/2021
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 451 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 an Honor
5 Flight license plate; providing for distribution and
6 use of fees collected from the sale of the plates;
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) HONOR FLIGHT LICENSE PLATES.-
15 (a) The department shall develop an Honor Flight license
16 plate as provided in this section ands. 320.08053. The plate
17 must bear the colors and design approved by the department. The
18 word "Florida" must appear at the top of the plate, and the
19 words "Honor Flight" must appear at the bottom of the plate.
20 (b) The annual use fees from the sale of the plate shall
21 be distributed equally among the Honor Flight Network hubs in
22 this state, each of which is a nonprofit corporation under s.
23 501 (c) (3) of the Internal Revenue Code, to be used as follows:
24 1. Up to 10 percent of the fees may be used for promotion
25 and marketing of the license plate.
Page 1 of 2
CODING: Words strickeA are deletions; words underlined are additions.
hb0451-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 451 2021
26 2. The remaining fees shall be used to further the Honor
27 Flight Network's mission of transporting military veterans to
28 Washington, D.C., in order to visit the memorials dedicated to
29 honoring those who have served and sacrificed for the United
30 States.
31 Section 2. This act shall take effect October 1, 2021.
Page 2 of 2
CODING: Words strioken are deletions; words underlined are additions.
hb0451-00
TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE
HB 451 by Rep. Hage
SPECIALTY LICENSE PLATES
AMENDMENT SUMMARY
MARCH 9, 2021
Amendment 1 by Rep. Hage (# 631941)
• Authorizes proceeds from the sale of the Honor Flight license plate to be spent
outside of the State of Florida.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 451 (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 Hage offered the following:
4
5 Amendment (with title amendment)
6 Between lines 10 and 11, insert:
7 Section 1. Paragraph (a) of subsection (10) of section
8 320.08056, Florida Statutes, is amended to read:
9 320.08056 Specialty license plates.-
10 (10) (a) A specialty license plate annual use fee collected
11 and distributed under this chapter, or any interest earned from
12 those fees, may not be used for commercial or for-profit
13 activities nor for general or administrative expenses, except as
14 authorized bys. 320.08058 or to pay the cost of the audit or
15 report required bys. 320.08062(1). The fees and any interest
16 earned from the fees may be expended only for use in this state
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Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 451 (2021)
Amendment No. 1
17 unless the annual use fee is derived from the sale of United
18 States Armed Forces and veterans-related specialty license
19 plates pursuant to paragraph (3) (d) for the Support Our TroopsL
20 a-ftcl American Legion, and Honor Flight license plates; paragraphs
21 (4) (b), (q), and (v) for the Florida Salutes Veterans, United
22 States Marine Corps, and Military Services license plates,
23 respectively; ands. 320.0891 for the U.S. Paratrooper license
24 plate.
25
26
27 T I T L E A ME N D ME N T
28 Remove line 3 and insert:
29 s. 320.08056, F.S.; providing an exception to the requirement
30 that specialty license plate annual use fees and interest earned
31 from those fees be expended only in this state; amending s.
32 320.08058, F.S.; directing the Department of
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Page 2 of 2
I
CD
0,
(.v
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 539 Renewable Energy
SPONSOR(S): Byrd
TIED BILLS: IDEN./SIM. BILLS: SB 896
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee Willson M,vJ Keating
2) Environment, Agriculture & Flooding
Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
Section 366.91, F.S., defines "renewable energy" as electrical energy produced from a method that uses one
or more of the following fuels or energy sources:
• hydrogen produced from sources other than fossil fuels;
• biomass;
• solar energy;
• geothermal energy;
• wind energy;
• ocean energy; and
• hydroelectric power.
Certain renewable energy projects are eligible for a variety of financing and permitting benefits. Additionally,
public utilities and municipal utilities are required to continuously make available standard offer contracts for
the purchase of renewable energy, subject to certain price limitations, with the costs of any purchases
recoverable from the utility's ratepayers.
The bill expands the definition of "renewable energy" to include "renewable natural gas" and to specify that
renewable energy means electrical energy produced "or energy created to displace traditional fuel sources"
from a method that uses certain specified fuels.
The bill defines "renewable natural gas" as "anaerobically-generated biogas, landfill gas, or waste-water
treatment gas refined to a methane content of 90 percent or greater which is capable of being used as
transportation fuel, for electric power generation, or is of a quality capable of being injected into a natural gas
pipeline."
The bill amends ss. 366.92, 373.236, and 403.973, F.S. to make conforming cross-references. The bill
reenacts s. 288.9606(7), F.S., relating to the issuance of revenue bonds, to incorporate the amendments made
by the bill.
The bill does not have a fiscal impact on state or local governments.
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: h0539.TIE.DOCX
DATE: 3/5/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Renewable Energy
Florida Renewable Energy Policy
Section 366.92, F.S. declares that it is the intent of the Legislature to :
• promote the development of renewable energy;
• protect the economic viability of Florida's existing renewable energy facilities;
• diversify the types of fuel used to generate electricity in Florida;
• lessen Florida's dependence on natural gas and fuel oil for the production of electricity;
• minimize the volatility of fuel costs;
• encourage investment within the state;
• improve environmental conditions; and
• minimize the costs of power supply to electric utilities and their customers.
Section 366.91, F.S., defines "renewable energy" as electrical energy produced from a method that
uses one or more of the following fuels or energy sources:
• hydrogen produced from sources other than fossil fuels;
• biomass; 1
• solar energy;
• geothermal energy;
• wind energy;
• ocean energy; and
• hydroelectric power.
Renewable energy also includes the alternative energy resource, waste heat, from sulfuric acid
manufacturing operations and electrical energy produced using pipeline-quality synthetic gas produced
from waste petroleum coke with carbon capture and sequestration.
Contracts for the Purchase of Renewable Energy
Since 2005, public utilities 2 have been required to continuously make available standard offer contracts
for the purchase of renewable energy, with the costs of any purchases recoverable from the utility's
ratepayers. 3 The law limits the price paid by a utility for renewable energy to the utility's full avoided
costs, which are defined ins. 366.051, F.S., as the costs the utility would have incurred to produce the
energy or capacity itself or purchase it from another source if not for the purchase of the renewable
1 Section 366.91(2)(a), F.S. defines "Biomass" as "a power source that is comprised of, but not limited to, combustible
residues or gases from forest products manufacturing, waste, byproducts, or products from agricultural and orchard crops,
waste or coproducts from livestock and poultry operations, waste or byproducts from food processing, urban wood waste,
municipal solid waste, municipal liquid waste treatment operations, and landfill gas. "
2 Section 366.02(1), F.S., defines a "Public utility" as "every person, corporation, partnership, association, or other legal
entity and their lessees, trustees, or receivers supplying electricity or gas (natural, manufactured, or similar gaseous
substance) to or for the public within this state." The term "public utility" does not include rural electric cooperatives,
municipal electric utilities, special natural gas districts, natural gas transmission pipeline companies, natural gas
marketers, or propane suppliers.
3 S. 366.91 (3), F.S. Each contract must provide a contract term of at least ten years.
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energy.4 Capacity payments are not required if, due to the operational characteristics of the renewable
energy generator or the anticipated peak and off-peak availability and capacity factor of the utility's
avoided unit, the renewable energy producer is unlikely to provide any capacity value to the utility or the
electric grid during the contract terrn. 5 Prudent and reasonable costs associated with the contract must
be recovered from the ratepayers of the contracting utility, without differentiation among customer
classes, through the appropriate cost-recovery mechanism administered by the Florida Public Service
Commission (PSC) .6
Similarly, each municipal electric utility 7 and rural electric cooperativeB whose annual sales, as of July
1, 1993, to retail customers were greater than 2,000 gigawatt hours must continuously offer a purchase
contract with a minimum term of 10 years to producers of renewable energy. These contracts must
include payment provisions for energy and capacity which are based upon the utility's or cooperative's
full avoided costs, as determined by the governing body of the municipal utility or cooperative .9
A contracting producer of renewable energy must pay the actual costs of its interconnection with the
transmission grid or distribution system. 10
Florida Development Finance Corporation Revenue Bonds
Section 288.9606(7), F.S. authorizes the Florida Development Finance Corporation (FDFC) to issue
revenue bonds to finance the undertaking of any project within the state that promotes renewable
energy.
Expedited Permitting
Section 403.973, F.S., provides for expedited permitting and a process for amendments to
comprehensive plans for certain projects that are identified to encourage and facilitate the location and
expansion of those types of economic development projects that offer job creation and high wages,
strengthen and diversify the state's economy, and have been thoughtfully planned to take into
consideration the protection of the state's environment.
Under s. 403.973, F.S., the Department of Environmental Protection must direct the creation of regional
permit action teams for the purpose of expediting the review of permit applications and local
comprehensive plan amendments submitted by certain entities, including projects resulting in the
production of biofuels cultivated on lands that are 1,000 acres or more or in the construction of a biofuel
or biodiesel processing facility or a facility generating renewable energy, as defined in s. 366.91 (2)(d} ,
F.S. are eligible.
Section 403.973(19), F.S., provides that the following projects are ineligible for expedited review:
4 This pricing scheme reflects limits established by federal law which have been in place since adoption of the Public
Utilities Regulatory Policy Act in 1978.
5
S. 366.91(3), F.S.
s Id.
7 There are 33 municipal electric (public power) utilities in the state, which serve approximately 3 million people or 14
percent of Florida's population. Municipal utilities are not-for-profit and governed by an elected city commission, or an
appointed or elected utility board . They raise capital through operating revenues or the sale of tax-exempt bonds. See
Florida Municipal Electric Association , Florida Municipal Utility Map, https://www.publicpower.com/florida-municipal-utility-
map (last visited Mar. 5, 2021 ).
BB Rural electric cooperatives are cooperative, nonprofit, membership corporations organized under ch. 425, F.S., for the
purpose of supplying electric energy and promoting and extending the use thereof in rural areas. Florida has 16
distribution cooperatives and 2 generation and transmission cooperatives who supply electricity to more than 2.7 million
Floridians in 57 of Florida's 67 counties. Cooperatives are owned by the members they serve, and provide at-cost electric
service to their consumer-members. See Florida Electric Cooperatives Association, About, https://feca.com/about/ (last
visited Mar. 5, 2021 ).
9
S. 366.91(4), F.S.
10 S. 366.91 (8) , F.S.
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• A project funded and operated by a local government, as defined ins. 377.709, F.S. and
located within that government's jurisdiction.
• A project, the primary purpose of which is to:
o Effect the final disposal of solid waste, biomedical waste, or hazardous waste in this
state.
o Produce electrical power, unless the production of electricity is incidental and not the
primary function of the project or the electrical power is derived from a fuel source for
renewable energy as defined ins. 366.91(2)(d)., F.S.
o Extract natural resources.
o Produce oil.
o Construct, maintain, or operate an oil, petroleum, or sewage pipeline.
Permits for the Consumptive Use of Water
Section 373.236(7), F.S., specifies that a consumptive use permit for a renewable energy generating
facility, or for lands where 1,000 or more acres are used to cultivate agricultural products used in the
production of renewable energy, must be granted for a term of at least 25 years, subject to certain
conditions.
Effect of the Bill
The bill expands the definition of "renewable energy" to include "renewable natural gas" and to specify
that renewable energy means electrical energy produced "or energy created to displace traditional fuel
sources" from a method that uses certain specified fuels.
The bill defines "renewable natural gas" as "anaerobically-generated biogas, landfill gas, or waste-
water treatment gas refined to a methane content of 90 percent or greater which is capable of being
used as transportation fuel, for electric power generation, or is of a quality capable of being injected into
a natural gas pipeline."
The bill defines "biogas" as "a mixture of carbon dioxide and hydrocarbons, primarily methane gas,
which is released from the biological decomposition of organic materials."
The bill allows some renewable natural gas projects to be eligible for consumptive use permits with a
minimum 25-year term, expedited review of permits and comprehensive plan amendments, and
revenue bonds issued by the FDFC. The bill appears to allow renewable natural gas to be eligible for
purchase under standard offer contracts that utilities must make available.
The bill amends ss. 366.92, 373.236, and 403.973, F.S. to make conforming cross-references.
The bill reenacts s. 288.9606(7), F.S., relating to the issuance of revenue bonds, to incorporate the
amendments made by the bill.
B. SECTION DIRECTORY:
Section 1 Amends s. 366.91, F.S.; defining the terms "biogas" and "renewable natural gas"; revising
the definition of the term "renewable energy" to include certain energy created to displace
traditional fuel sources.
Section 2 Amends s. 366.92, F.S.; conforming a cross-reference .
Section 3 Amends s. 373.236, F.S.; conforming a cross-reference .
Section 4 Amends s. 403.973, F.S.; conforming a cross-references.
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Section 5 Reenacts s. 288.9606(7), F.S., relating to the issuance of revenue bonds, to incorporate
the amendments made by this act.
Section 6 Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues :
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have a positive economic impact on the producers of renewable natural gas.
D. FISCAL COMMENTS:
None.
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.
B. RULE-MAKING AUTHORITY:
None.
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C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill adds the phrase "or energy created to displace traditional fuel sources" to the definition of
renewable energy. However, the bill does not define what is meant by "traditional fuel sources." The
interpretation of this phrase could change over time.
By adding the phrase "or energy created to displace traditional fuel sources" the scope of renewable
energy would be expanded beyond electricity to include an energy source created to displace a
traditional fuel, such as natural gas or any other fuel commodity. Consequently, the bill introduces a
non-electrical source of energy into the definition of renewable energy that, pursuant to sections (3) and
(4), an electric utility may be required to purchase under the requirements of the statute.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 539 2021
1 A bill to be entitled
2 An act relating to renewable energy; amending s.
3 366.91, F.S.; defining the terms "biogas" and
4 "renewable natural gas"; revising the definition of
5 the term "renewable energy" to include certain energy
6 created to displace traditional fuel sources; amending
7 ss. 366.92, 373.236, and 403.973, F.S.; conforming
8 cross-references; reenacting s. 288.9606(7), F.S.,
9 relating to the issuance of revenue bonds, to
10 incorporate the amendments made by this act; providing
11 an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Present paragraphs (a) through (d) of
16 subsection (2) of section 366.91, Florida Statutes, are
17 redesignated as paragraphs (b) through (e), respectively, a new
18 paragraph (a) and paragraph (f) are added to that subsection,
19 and present paragraph (d) of that subsection is amended, to
20 read:
21 366.91 Renewable energy.-
22 (2) As used in this section, the term:
23 (a) "Biogas" means a mixture of carbon dioxide and
24 hydrocarbons, primarily methane gas, which is released from the
25 biological decomposition of organic materials.
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 539 2021
26 M-ta+ "Renewable energy" means electrical energy produced
27 or energy created to displace traditional fuel sources from a
28 method that uses one or more of the following fuels or energy
29 sources: hydrogen produced or resulting from sources other than
30 fossil fuels, biomass, solar energy, geothermal energy, wind
31 energy, ocean energy, renewable natural gas, and hydroelectric
32 power. The term includes the alternative energy resource, waste
33 heat, from sulfuric acid manufacturing operations and electrical
34 energy produced using pipeline-quality synthetic gas produced
35 from waste petroleum coke with carbon capture and sequestration.
36 (f) "Renewable natural gas" means anaerobically-generated
37 biogas, landfill gas, or waste-water treatment gas refined to a
38 methane content of 90 percent or greater which is capable of
39 being used as transportation fuel, for electric power
40 generation, or is of a quality capable of being injected into a
41 natural gas pipeline.
42 Section 2. Paragraph (b) of subsection (2) of section
43 366.92, Florida Statutes, is amended to read:
44 366.92 Florida renewable energy policy.-
45 (2) As used in this section, the term:
46 (b) "Renewable energy" means renewable energy as defined
47 ins. 366.91(2) s . 366 .9 1( 2 ) (d) .
48 Section 3. Subsection (7) of section 373.236, Florida
49 Statutes, is amended to read:
50 373.236 Duration of permits; compliance reports.-
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 539 2021
51 (7) A permit approved for a renewable energy generating
52 facility or the cultivation of agricultural products on lands
53 consisting of 1,000 acres or more for use in the production of
54 renewable energy, as defined ins. 366.91(2) s. 366.91(2) (d),
55 shall be granted for a term of at least 25 years at the
56 applicant's request based on the anticipated life of the
57 facility if there is sufficient data to provide reasonable
58 assurance that the conditions for permit issuance will be met
59 for the duration of the permit; otherwise, a permit may be
60 issued for a shorter duration that reflects the longest period
61 for which such reasonable assurances are provided. Such a permit
62 is subject to compliance reports under subsection (4).
63 Section 4. Paragraph (f) of subsection (3) and paragraph
64 (b) of subsection (19) of section 403.973, Florida Statutes, are
65 amended to read:
66 403.973 Expedited permitting; amendments to comprehensive
67 plans.-
68 ( 3)
69 (f) Projects resulting in the production of biofuels
70 cultivated on lands that are 1,000 acres or more or in the
71 construction of a biofuel or biodiesel processing facility or a
72 facility generating renewable energy, as defined ins. 366.91(2)
73 s. 366.91(2) (d), are eligible for the expedited permitting
74 process.
75 (19) The following projects are ineligible for review
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HB 539 2021
76 under this part:
77 (b) A project, the primary purpose of which is to:
78 1. Effect the final disposal of solid waste, biomedical
79 waste, or hazardous waste in this state.
80 2. Produce electrical power, unless the production of
81 electricity is incidental and not the primary function of the
82 project or the electrical power is derived from a fuel source
83 for renewable energy as defined ins. 366.91(2) s . 36·6 .9 1(2) (d ).
84 3. Extract natural resources.
85 4. Produce oil.
86 5. Construct, maintain, or operate an oil, petroleum, or
87 sewage pipeline.
88 Section 5. For the purpose of incorporating the amendment
89 made by this act to section 366.91, Florida Statutes, in a
90 reference thereto, subsection (7) of section 288.9606, Florida
91 Statutes, is reenacted to read:
92 288.9606 Issue of revenue bonds.-
93 (7) Notwithstanding any provision of this section, the
94 corporation in its corporate capacity may, without authorization
95 from a public agency under s. 163.01(7), issue revenue bonds or
96 other evidence of indebtedness under this section to:
97 (a) Finance the undertaking of any project within the
98 state that promotes renewable energy as defined ins. 366.91 or
99 s. 377.803;
100 (b) Finance the undertaking of any project within the
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HB 539 2021
101 state that is a project contemplated or allowed under s. 406 of
102 the American Recovery and Reinvestment Act of 2009; or
103 (c) If permitted by federal law, finance qualifying
104 improvement projects within the state under s. 163.08.
105 Section 6. This act shall take effect July 1, 2021.
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hb0539-00
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 613 Tax Collector and License Plate Agency Operations
SPONSOR(S): Aloupis
TIED BILLS: IDEN./SIM. BILLS: SB 884
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee Keating C
2) Infrastructure & Tourism Appropriations
Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
County tax collectors are the Department of Highway Safety and Motor Vehicles' (DHSMV) authorized agents
to title and register motor vehicles, motor homes, and vessels, and to provide driver license services. However,
appointed tax collectors in some charter counties are not authorized to provider driver license services. Some
county tax collectors have contracted with privately-owned license plate agents (LPAs) to provide title and
registration services. LPAs currently do not provides driver license services in Florida. Additionally, terms
describing LPAs are not consistent across statute, nor are any of these terms defined.
The bill defines the term "license plate agency" and conforms various statutory provisions to use that term.
The bill provides that operational requirements established by DHSMV policies and procedures must be the
same for both governmentally and privately managed license plate agencies.
The bill requires that appointed tax collectors in charter counties, along with their approved license plate
agents, must begin providing driver license services on a limited basis, by October 31, 2021, as directed by
DHSMV. Such services must include:
• Renewal of a driver license using a convenience service.
• Replacement of a driver license or identification card.
• Update of address on a driver license or identification card.
• Reinstatement of a suspended driver license when the only condition of such reinstatement is payment
of fees.
The bill will have a negative fiscal impact on state government expenditures. See Fiscal Analysis section for
details.
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: h0613.TIE.D0CX
DATE: 3/5/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Under chs. 320 and 328, F.S. county tax collectors are the Department of Highway Safety and Motor
Vehicles' (DHSMVs) authorized agents to title and register motor vehicles, motor homes, and vessels. 1
When processing these transactions, tax collectors charge and collect fees specified in state law, 2
which are remitted to the state. However, chs . 319 , 320, and 328 , F.S., also require tax collectors to
retain certain statutorily prescribed service fees and charges .3
Currently, 65 counties have elected tax collectors who are constitutional officers, while Broward and
Miami-Dade Counties have appointed tax collectors under each county's charter government.
However, pursuant to s. 1(d}, Art. VIII of the State Constitution, these counties will have elected tax
collectors effective January 7, 2025. 4
Sixteen counties have, or until recently had, contracts with privately owned license plate agents (LPAs)
to operate 57 offices to perform title and registration services for motor vehicles, mobile homes, and
vessels . In counties with elected tax collectors, LPAs only charge the fees for those services as
expressly authorized in statute. In these counties , the LPAs may retain all or a portion of the statutorily
authorized service fee that tax collectors are allowed to collect for motor vehicle, mobile home, and
vessel title and registration services, as provided in the contracts between the LPA and the tax
collector. 5 The LPAs in Broward and Miami-Dade Counties charge fees 6 for motor vehicle, mobile
home, and vessel title and registration fees in addition to the statutory fees authorized in chs. 319, 320,
and 328, F.S. The additional fees levied in Broward and Miami-Dade Counties are levied pursuant to
county ordinance and are retained by the LPAs. 7
Terms such as "license tag agent" and "tag agency" appear through Florida Statutes, relating to private
tag agencies authorized to perform certain motor vehicle-related transactions . However, these terms
are not defined, nor are they used consistently across the statutes.
DHSMV has transitioned its driver license services from DSHMV-owned facilities to elected county tax
collectors. Florida law required DHSMV to completely transition all driver license issuance services to
tax collectors who are constitutional officers under s. 1(d}, Art. VIII of the State Constitution with this
transition to be completed by June 30, 2015. The transition of services to appointed charter county tax
collectors may occur on a limited basis as directed by DSHMV. 8
Currently, LPAs do not provide driver license services anywhere in Florida.
Federal Driver License Requirements
Under federal rules implementing the federal REAL ID Act, specific requirements must be met for
entities issuing driver licenses, including new photographs at least once every 16 years, the
1
County tax collectors are expressly made agents of the state with respect to motor vehicle registration ins. 320.03(1), F.S., and with
respect to vessel registration ins. 328 .73(1), F.S.
2
Sees. 319.32, F.S., for motor vehicle title fees, s. 320.03 , for motor vehicle registration fees, s. 320.04, F.S., as to motor vehicle
service charges, ands. 328.72, F.S., as to vessel registration fees.
3
Department of Highway Safety and Motor Vehicles, Agency Analysis of202 l SB 342, p 2. (January 14, 2021).
4 [d.
5 Id.
6
Formerly the LP As in Volusia County charged fees. An elected county tax collector took office on January 5, 2021, and the LPA
offices closed by February 4, 2021 . Id.
7 Id.
8
Section 322.02(1), F.S.
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reverification of certain information at the time of renewal, the retention of certain source documents,
and certain security requirements, including employee background checks and access badges. Certain
physical security measures must be taken. 9
Additionally, the Federal Voter Registration Act of 1993, also known as the motor voter law, requires a
voter registration form to be included with each driver license application, including renewal
applications, and there are federal requirements regarding the transmission of this data to the state
election's office. 10
Effect of the Bill
The bill defines the term "license plate agency" as an office appointed by the tax collector which is
equipped with DHSMV's Florida Real Time Vehicle Information System (FRVIS) and managed by a
governmental or private entity to process transactions related to motorist services on behalf of DHSMV.
The bill amends various sections of statute referring to license tag agencies and tag agencies to
change these references to the newly defined term "license plate agency."
The bill provides that operational requirements for license plate agencies, as established by DHSMV
policies and procedures, including, but not limited to, purchases of equipment, license plates, and
validation stickers and other costs incurred by DHSMV, must be the same for both governmentally and
privately managed license plate agencies.
The bill requires that appointed tax collectors in charter counties, along with their approved license
plate agents, must begin providing driver license services on a limited basis, by October 31, 2021, as
directed by DHSMV. Such services must include:
• Renewal of a driver license using a convenience service.
• Replacement of a driver license or identification card.
• Update of address on a driver license or identification card.
• Reinstatement of a suspended driver license when the only condition of such reinstatement is
payment of fees.
The bill has an effective date of July 1, 2021 .
B. SECTION DIRECTORY:
Section 1 Amends s. 320.01, F.S., defining the term "license plate agency."
Section 2 Amends s. 320.03, F.S., relating to the registration duties of tax collectors.
Sections 3-5 Amends ss. 320.04, 320.06, and 320.0894, F.S., to conform .
Section 6 Amends s. 322.02, F.S., relating to legislative intent, driver license administration.
Sections 7-9 Amends ss. 212.1832, 681.117, and 1002.40, F.S., to conform.
Section 10 Provides an effective date of July 1, 2021.
9
6 C.F.R. part 37.
10
United States Department of Justice, The National Voter Registration Act of 1993, https://www.justice.gov/crt/national-voter-
registration-act-l 993-nvra (last visited March 4, 202 l ).
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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The bill has a negative fiscal impact on state government expenditures since DHSMV will incur
programming costs associated with allowing license plate agencies to provide certain driver license
services.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The bill may have a negative fiscal impact on local government revenues, as county tax collectors
may see a reduction in revenues associated with additional services being provided by private
license plate agencies. Any revenue losses may be offset to some extent by a reduction in
expenditures.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
License plate agencies may see additional revenues associated with providing additional services.
D. FISCAL COMMENTS :
None.
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 revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not provide a grant of rulemaking, nor does it require rulemaking .
C. DRAFTING ISSUES OR OTHER COMMENTS:
Drafting Issue
The bill makes conforming changes to the Hope Scholarship Program to the replace the term "tag
agency" with "license plate agency." According to the Department of Revenue, where the word
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DATE: 3/5/2021
"agency" is replaced in this context, the term refers to both a "designated agent" and a "private tag
agent" and the word "agent" should be put back in the bill in both locations. 11
Other Comments
The bill authorizes license plate agencies to conduct limited driver license services, but it is not clear
that these services must be provided under a contract with DHSMV and the county tax collector, or if
the license plate agency is required to comply with applicable federal regulations associated with
providing driver license services.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
Not applicable.
11
Florida Department of Revenue, Agency Analysis of2021 House Bill 613, pp. 4-5. (February 26, 2021)
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 613 2021
1 A bill to be entitled
2 An act relating to tax collector and license plate
3 agency operations; amending s. 320.01, F.S.; defining
4 the term "license plate agency"; amending s. 320. 03,
5 F.S.; conforming provisions to changes made by the
6 act; requiring certain operational requirements to be
7 the same for governmentally and privately managed
8 license plate agencies; amending ss. 320.04, 320.06,
9 and 320.0894, F.S.; conforming provisions to changes
10 made by the act; amending s. 322.02, F.S.; requiring
11 transition of specified driver license services to tax
12 collectors and license plate agencies on a limited
13 basis by a certain date; amending ss. 212.1832,
14 681.117, and 1002.40, F.S.; conforming provisions to
15 changes made by the act; providing an effective date.
16
17 Be It Enacted by the Legislature of the State of Florida:
18
19 Section 1. Subsection (46) is added to section 320.01,
20 Florida Statutes, to read:
21 320.01 Definitions, general.-As used in the Florida
22 Statutes, except as otherwise provided, the term:
23 (46) "License plate agency" means an office appointed by
24 the tax collector which is equipped with the department's
25 Florida Real Time Vehicle Information System and managed by a
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26 governmental or private entity to process transactions related
27 to motorist services on behalf of the department.
28 Section 2. Subsections (4) and (8) of section 320.03,
29 Florida Statutes, are amended to read:
30 320.03 Registration; duties of tax collectors;
31 International Registration Plan.-
32 ( 4) ( a) Each tax collector or license plate agency ~
33 agent who has online computer access to the department data
34 center or other reasonable access thereto shall, except when the
35 department has issued a registration renewal notice, upon
36 receipt of an application for the registration of~ a-n-y motor
37 vehicle, determine from the driver file of the applicant whether
38 the applicant's driver license has been canceled, suspended, or
39 revoked and, if so, whether the applicant has surrendered his or
40 her license to the department as required bys. 322.251. If the
41 applicant has not surrendered his or her license in accordance
42 withs. 322.251 the provisions of that section, the tax
43 collector shall refuse to register the vehicle until such time
44 as the applicant surrenders his or her driver license to the
45 department.
46 (b) The Florida Real Time Vehicle Information System shall
47 be installed in every tax collector's office and license plate
48 agency tag agent ' s office in accordance with a schedule
49 established by the department in consultation with the tax
50 collectors and contingent upon funds being made available for
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51 the system by the state.
52 (c) Operational requirements for license plate agencies
53 which are established by department policies and procedures,
54 including, but not limited to, purchases of equipment, license
55 plates, and validation stickers and other costs incurred by the
56 department, shall be the same for both governmentally and
57 privately managed license plate agencies.
58 ( 8) If the applicant's name appears on the list referred
59 to ins. 316.1001(4), s. 316.1967(6), s. 318.15(3), ors.
60 713.78(13), a license plate or revalidation sticker may not be
61 issued until that person's name no longer appears on the list or
62 until the person presents a receipt from the governmental entity
63 or the clerk of court that provided the data showing that the
64 fines outstanding have been paid. This subsection does not apply
65 to the owner of a leased vehicle if the vehicle is registered in
66 the name of the lessee of the vehicle. The tax collector and the
67 clerk of the court are each entitled to receive monthly, as
68 costs for implementing and administering this subsection, 10
69 percent of the civil penalties and fines recovered from such
70 persons. As used in this subsection, the term "civil penalties
71 and fines" does not include a wrecker operator's lien as
72 described ins. 713.78(13). If the tax collector has private
73 li cense plate agencies tag agents, such l icense plate agenc i es
74 tag agents are entitled to receive a pro rata share of the
75 amount paid to the tax collector, based upon the percentage of
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76 license plates and revalidation stickers issued by the license
77 plate agency tag agent compared to the total issued within the
78 county. The authority of~ ttftY private license plate agent to
79 issue license plates shall be revoked, after notice and a
80 hearing as provided in chapter 120, if he or she issues a ttftY
81 license plate or revalidation sticker contrary to the provisions
82 of this subsection. This section applies only to the annual
83 renewal in the owner's birth month of a motor vehicle
84 registration and does not apply to the transfer of a
85 registration of a motor vehicle sold by a motor vehicle dealer
86 licensed under this chapter, except for the transfer of
87 registrations which includes the annual renewals. This section
88 does not affect the issuance of the title to a motor vehicle,
89 notwithstanding s. 319.23(8) (b).
90 Section 3. Paragraph (b) of subsection (1) of section
91 320.04, Florida Statutes, is amended to read:
92 320.04 Registration service charge.-
93 ( 1)
94 (b) A service charge of $1 shall also be imposed for the
95 issuance of each license plate validation sticker, vessel decal,
96 and mobile home sticker issued from an automated vending
97 facility or printer dispenser machine. This service charge is
98 payable to the department and shall be used to provide for
99 automated vending facilities or printer dispenser machines that
100 are used to dispense such stickers and decals by each tax
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101 collector's or license plate agency's tag agent's employee.
102 Section 4. Subsection (2) of section 320.06, Florida
103 Statutes, is amended to read:
104 320.06 Registration certificates, license plates, and
105 validation stickers generally.-
106 (2) The department shall provide the several tax
107 collectors and license plate agencies agents with the necessary
108 number of validation stickers.
109 Section 5. Paragraph (b) of subsection (4) of section
110 320.0894, Florida Statutes, is amended to read:
111 320.0894 Motor vehicle license plates to Gold Star family
112 members.-The department shall develop a special license plate
113 honoring the family members of servicemembers who have been
114 killed while serving in the Armed Forces of the United States.
115 The license plate shall be officially designated as the Gold
116 Star license plate and shall be developed and issued as provided
117 in this section.
118 ( 4)
119 (b) The applicant must provide documentation of the fact
120 that the servicemember was killed while serving and proof of
121 relationship to the servicemember to the tax collector or
122 license plate agency agent before being issued a Gold Star
123 license plate. The tax collector or license plate agent may
124 waive the requirement for such documentation and proof if he or
125 she has actual knowledge of the family relationship and that the
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126 servicemember was killed while serving.
127 Section 6. Subsection (1) of section 322.02, Florida
128 Statutes, is amended to read:
129 322.02 Legislative intent; administration.-
130 (1) The Legislature finds that over the past several years
131 the department and individual county tax collectors have entered
132 into contracts for the delivery of full and limited driver
133 license services where such contractual relationships best
134 served the public interest through state administration and
135 enforcement and local government implementation. It is the
136 intent of the Legislature that the complete transition of all
137 driver license issuance services to tax collectors who are
138 constitutional officers under s. l(d), Art. VIII of the State
139 Constitution be completed no later than June 30, 2015. The
140 transition of services to appointed charter county tax
141 collectors and their license plate agencies as defined ins.
142 320.01(46) shall may occur on a limited basis by October 31,
143 2021, as directed by the department. Such services shall
144 include:
145 (a) Renewal of a driver license usin g a convenience
146 service.
147 (b) Replacement of a driver license or identification
148 card.
149 (c) Update of address on a driver license or
150 identification card.
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151 (d) Reinstatement of a suspended driver license when the
152 only condition of such reinstatement is payment of fees.
153 Section 7. Subsection (1) of section 212.1832, Florida
154 Statutes, is amended to read:
155 212.1832 Credit for contributions to eligible nonprofit
156 scholarship-funding organizations.-
157 (1) The purchaser of a motor vehicle shall be granted a
158 credit of 100 percent of an eligible contribution made to an
159 eligible nonprofit scholarship-funding organization under s.
160 1002.40 against any tax imposed by the state under this chapter
161 and collected from the purchaser by a dealer, designated agent,
162 or private license plate agency tag agent as a result of the
163 purchase or acquisition of a motor vehicle, except that a credit
164 may not exceed the tax that would otherwise be collected from
165 the purchaser by a dealer, designated agent, or private license
166 plate agency tag agent. For purposes of this subsection, the
167 term "purchase" does not include the lease or rental of a motor
168 vehicle.
169 Section 8. Subsection (1) of section 681.117, Florida
170 Statutes, is amended to read:
171 681.117 Fee.-
172 (1) A $2 fee shall be collected by a motor vehicle dealer,
173 or by a person engaged in the business of leasing motor
174 vehicles, from the consumer at the consummation of the sale of a
175 motor vehicle or at the time of entry into a lease agreement for
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176 a motor vehicle. Such fees shall be remitted to the county tax
177 collector or private license p l a t e ~ agency acting as agent
178 for the Department of Revenue. If the purchaser or lessee
179 removes the motor vehicle from the state for titling and
180 registration outside this state, the fee shall be remitted to
181 the Department of Revenue. All fees, less the cost of
182 administration, shall be transferred monthly to the department
183 for deposit into the Motor Vehicle Warranty Trust Fund.
18 4 Section 9. Paragraphs (a) , (b) , ( c) , and ( g) of subsection
185 (13) of section 1002.40, Florida Statutes, are amended to read:
186 1002.40 The Hope Scholarship Program.-
187 (13) SCHOLARSHIP FUNDING TAX CREDITS.-
188 (a) A tax credit is available under s. 212.1832(1) for use
189 by a person that makes an eligible contribution. Eligible
190 contributions shall be used to fund scholarships under this
191 section and may be used to fund scholarships under s. 1002.395.
192 Each eligible contribution is limited to a single payment of
193 $105 per motor vehicle purchased at the time of purchase of a
194 motor vehicle or a single payment of $105 per motor vehicle
195 purchased at the time of registration of a motor vehicle that
196 was not purchased from a dealer, except that a contribution may
197 not exceed the state tax imposed under chapter 212 that would
198 otherwise be collected from the purchaser by a dealer,
199 designated agent, or private license plate agency tag agent.
200 Payments of contributions shall be made to a dealer at the time
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201 of purchase of a motor vehicle or to a designated agent or
202 private license plate agency tag agent at the time of
203 registration of a motor vehicle that was not purchased from a
204 dealer. An eligible contribution shall be accompanied by a
205 contribution election form provided by the Department of
206 Revenue. The form shall include, at a minimum, the following
207 brief description of the Hope Scholarship Program and the
208 Florida Tax Credit Scholarship Program: "THE HOPE SCHOLARSHIP
209 PROGRAM PROVIDES A PUBLIC SCHOOL STUDENT WHO WAS SUBJECTED TO AN
210 INCIDENT OF VIOLENCE OR BULLYING AT SCHOOL THE OPPORTUNITY TO
211 APPLY FOR A SCHOLARSHIP TO ATTEND AN ELIGIBLE PRIVATE SCHOOL
212 RATHER THAN REMAIN IN AN UNSAFE SCHOOL ENVIRONMENT. THE FLORIDA
213 TAX CREDIT SCHOLARSHIP PROGRAM PROVIDES A LOW-INCOME STUDENT THE
214 OPPORTUNITY TO APPLY FOR A SCHOLARSHIP TO ATTEND AN ELIGIBLE
215 PRIVATE SCHOOL." The form shall also include, at a minimum, a
216 section allowing the consumer to designate, from all
217 participating scholarship funding organizations, which
218 organization will receive his or her donation. For purposes of
219 this subsection, the term "purchase" does not include the lease
220 or rental of a motor vehicle.
221 (b) A dealer, designated agent, or private license plate
222 agency tag agent shall:
223 1. Provide the purchaser the contribution election form,
224 as provided by the Department of Revenue, at the time of
225 purchase of a motor vehicle or at the time of registration of a
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226 motor vehicle that was not purchased from a dealer.
227 2. Collect eligible contributions.
228 3. Using a form provided by the Department of Revenue,
229 which shall include the dealer's or agency's agent's federal
230 employer identification number, remit to an organization no
231 later than the date the return filed pursuant to s. 212.11 is
232 due the total amount of contributions made to that organization
233 and collected during the preceding reporting period. Using the
234 same form, the dealer or agency agent shall also report this
235 information to the Department of Revenue no later than the date
236 the return filed pursuant to s. 212.11 is due.
237 4. Report to the Department of Revenue on each return
238 filed pursuant to s. 212.11 the total amount of credits granted
239 under s. 212.1832 for the preceding reporting period.
240 (c) An organization shall report to the Department of
241 Revenue, on or before the 20th day of each month, the total
242 amount of contributions received pursuant to paragraph (b) in
243 the preceding calendar month on a form provided by the
244 Department of Revenue. Such report shall include:
245 1. The federal employer identification number of each
246 designated agent, private license plate agency tag agent, or
247 dealer who remitted contributions to the organization during
248 that reporting period.
249 2. The amount of contributions received from each
250 designated agent, private license plate agency tag agent, or
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251 dealer during that reporting period.
252 (g} ~Arty-dealer, designated agent, private license plate
253 agency tag agent, or organization that fails to timely submit
254 reports to the Department of Revenue as required in paragraphs
255 (b) and (c) is subject to a penalty of $1,000 for every month,
256 or part thereof, the report is not provided, up to a maximum
257 amount of $10,000. Such penalty shall be collected by the
258 Department of Revenue and shall be transferred into the General
259 Revenue Fund. Such penalty must be settled or compromised if it
260 is determined by the Department of Revenue that the
261 noncompliance is due to reasonable cause and not due to willful
262 negligence, willful neglect, or fraud.
263 Section 10. This act shall take effect July 1, 2021.
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TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE
HB 613 by Rep. Aloupis
TAX COLLECTOR and LICENSE PLATE AGENCY OPERATIONS
AMENDMENT SUMMARY
MARCH 9, 2021
Amendment 1 by Rep. Aloupis (# 768101)
• Relocates provisions of the bill that authorize license plate agencies to provide
driver license services.
• Authorizes all tax collectors, effective October 1, 2021, to contract with one or
more license plate agencies for specified driver license services.
• Requires the license plate agency to enter into an interagency agreement with
the Department of Highway Safety and Motor Vehicles to provide driver license
services.
• Provides that license plate agents are not authorized to issue driver licenses or
identification cards or to possess blank driver licenses and identification cards.
• Requires funds collected from license plate agencies to be deposited into the
state treasury in the same time frame as required for county tax collectors.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 613 (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 heari n g bill: To urism, Infrast r ucture &
2 Ene rgy Subcommit tee
3 Representative Aloupis offered the follow i ng:
4
5 Amendment (with title amendment)
6 Remove lines 1 2 7-15 2 a nd ins ert:
7 Section 6. Subsection (1) of section 32 2.135, Florida
8 Statutes, is amended to read:
9 3 2 2.1 35 Drive r licens e agents. -
10 (1) ~ The de partment s hall, upon applicati o n, a utho ri ze
11 by interagency agreement any o r all of the tax collectors who
12 a re consti tutiona l of ficers under s. l (d), Art. VIII of the
13 State Constituti on in the several counties of the st at e, sub ject
14 to the requi r e me n ts of law, i n acco r dance wi th ru les o f the
15 department, to serve as t he departme n t ' s ~ agent for t he
16 p rovisi on of specified dri ver license serv i ces .
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Page 1 o f 4
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 613 (2021)
Amendment No. 1
17 +at These services shall be limited to the issuance of
18 driver licenses and identification cards as authorized by this
19 chapter.
20 (b) Effective October 1, 2021, any or all of the tax
21 collectors may contract with one or more license plate agencies
22 for the provision of the following specified driver license
23 services:
24 1. Processing a licensee's application for renewal of any
25 driver license eligible for renewal using a convenience service.
26 2. Processing a licensee's application for reinstatement
27 of a suspended driver license and collecting the required fees
28 therefor, if the only condition of reinstatement is payment of
29 such fees .
30 3. Processing a licensee's or cardholder's request to
31 change his or her address and application for a replacement
32 driver license or identification card, and collecting the
33 required fees therefor, if the licensee or cardholder is not
34 required to ren ew in person.
35
36 If a tax collector who elects to contract with a license plate
37 agency for the provision of these services has not entered into
38 an interagency agreement with the department under paragraph
39 (a), the department shall, upon application, authorize the tax
40 collector by interagency agreement , subject to the requirements
41 of law, in accordance with rules of the department, to provide
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Page 2 of 4
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 613 (2021)
Amendment No. 1
42 these services as the department's agent through one or more
43 license plate agencies. A tax collector's election to contract
44 with a license plate agency under this paragraph does not
45 require the tax collector to provide all driver license services
46 authorized under paragraph (a). This paragraph does not
47 authorize a license plate agency to issue driver licenses or
48 identification cards or possess any blank driver licenses or
49 identification cards. If funds to be deposited into the State
50 Tregsury are collected under this paragraph by a license plate
51 agency, the funds shall be paid into the State Treasury within
52 the period specified in subsection (6) calculated from the date
53 the funds are collected by the license plate agency.
54 J____g_l-B:H- Each tax collector who is authorized by the
55 department to provide driver license services shall bear all
56 costs associated with providing those services.
57 l..9.l-fet A service fee of $6.25 must be charged, in addition
58 to the fees set forth in this chapter, for providing all
59 services pursuant to this chapter. The service fee may not be
60 charged:
61 1. More than once per customer during a single visit to a
62 tax collector's office.
63 2. For a reexamination requested by the Medical Advisory
64 Board or required pursuant to s. 322.221.
65 3. For a voter registration transaction.
66 4. In violation of any federal or state law.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 613 (2021)
Amendment No. 1
67 5. To a veteran receiving any service pursuant to this
68 chapter, upon presentation of a copy of the veteran's:
69 a. DD Form 214, issued by the United States Department of
70 Defense;
71 b. Veteran health identification card, issued by the
72 United States Department of Veterans Affairs;
73 c. Veteran identification card, issued by the United
74 States Department of Veterans Affairs pursuant to the Veterans
75 Identification Card Act of 2015, Pub. L. No. 114-31; or
76 d. Other acceptable form specified by the Department of
77 Veterans' Affairs.
78
79
80 T I T L E A ME N D ME N T
81 Remove lines 10-13 and insert:
82 made by the act; amending s. 322.135, F.S.;
83 authorizing a tax collector to contract with license
84 plate agencies for the provision of specified driver
85 license services; requiring the Department of Highway
86 Safety and Motor Vehicles to enter into interagency
87 agreements with certain tax collectors, upon
88 application, for the provision of those driver license
89 services through license plate agencies; providing
90 applicability; amending ss. 212.1832,
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Page 4 of 4
I
co
0)
N
_.,
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 621 Tax Collectors and Their Approved Agents
SPONSOR(S): Williamson
TIED BILLS: IDEN./SIM. BILLS: SB 342
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee
2) Infrastructure & Tourism Appropriations
Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
County tax collectors serve as the Department of Highway Safety and Motor Vehicles' (DHSMV) authorized
agents for motor vehicle, mobile home, and vessel titles and registrations. Some counties have contracted with
privately-owned license plate agents (LPAs) to perform title and registration services. Additionally, tax
collectors and their LPAs have access to DHSMV's Florida Real Time Vehicle Information System (FRVIS).
The bill requires that each LPA protect customer privacy and data collection. The bill requires each tax
collector and his or her approved LPAs to enter into a memorandum of understanding (MOU) with DHSMV
regarding the use of FRVIS.
The bill also requires tax collectors to determine the additional service charges that must be collected by
private LPAs for motor vehicle, mobile home, and vessel titles and registrations. The additional service charges
must be itemized and disclosed to the customer, and the LPA must enter into an MOU with the tax collector
concerning these services and the disclosure of additional service charges.
The bill has an indeterminate fiscal impact on state and local government. See Fiscal Analysis section for
details.
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: h0621.TIE.DOCX
DATE: 3/5/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A EFFECT OF PROPOSED CHANGES:
Current Situation
License Plate Agencies and Fees
Under chs. 320 and 328, F.S. county tax collectors are the Department of Highway Safety and Motor
Vehicles' (DHSMVs) authorized agents and may title and register motor vehicles , motor homes, and
vessels. 1 When processing these transactions , tax collectors charge and collect fees specified in state
law, 2 which are remitted to the state. However, chs . 319, 320, and 328, F.S., also require tax collectors
to retain certain statutorily prescribed service fees and charges. 3
Currently 65 counties have elected tax collectors who are constitutional officers. Currently, Broward
and Miami-Dade Counties have appointed tax collectors under each county's charter government.
However, pursuant to s. 1(d), Art. VIII of the State Constitution, these counties will have elected tax
collectors effective January 7, 2025. 4
Sixteen counties have, or until recently had, contracts with privately owned license plate agents (LPAs)
to operate 57 offices to perform title and registration services for motor vehicles, mobile homes, and
vessels. In counties with elected tax collectors, LPAs only charge the fees for those services as
expressly authorized in statute. In these counties, the LPAs may retain all or a portion of the statutorily
authorized service fee that tax collectors are allowed to collect for motor vehicle, mobile home, and
vessel title and registration services, as provided in the contracts between the LPA and the tax
collector. 5 The LPAs in Broward and Miami-Dade Counties charge 6 fees for motor vehicle, mobile
home, and vessel title and registration fees in addition to the statutory fees authorized in chs. 319, 320,
and 328, F.S. The additional fees levied in Broward and Miami-Dade Counties are levied pursuant to
county ordinance and are retained by the LPAs.7
County tax collectors , as DHSMV's authorized agents, must issue registration certificates, registration
license plates, validation stickers, and mobile home stickers to applicants, and provide to applicants for
each the option to register emergency contact information and the option to be contacted with
information about state and federal benefits available as a result of military service, in accordance with
DHSMV's rules .8
Florida Real Time Vehlcle Information System (FRVIS)
The Florida Real Time Vehicle Information System (FRVIS) is a database application used to title and
register all motor vehicles , mobile homes, and vessels in Florida. The database provides real-time
access to information on every motor vehicle, mobile home, and vessel registered in Florida, including
residential and electronic mailing addresses.9
1
County tax collectors are expressly made agents of the state with respect to motor vehicle registration ins. 320.03(1), F.S., and with
respect to vessel registration ins. 328.73(1), F.S.
2
Sees. 319.32, F.S., for motor vehicle title fees, s. 320.03, for motor vehicle registration fees, s. 320.04, F.S., as to motor vehicle
service charges, ands. 328.72, F.S ., as to vessel registration fees.
3
Department of Highway Safety and Motor Vehicles, Agency Analysis of202 l House Bill 621, p 2. (February 4, 2021).
4 Id.
s Id.
6
Formerly the LP As in Volusia County charged fees. An elected county tax collector took office on January 5, 2021, and the LPA
offices closed by February 4, 202 l. Id.
7 Id.
8
Section 320.03(1), F.S.
9
Department of Highway Safety and Motor Vehicles, Agency Analysis of2021 House Bill 621, p 3. (February 4, 2021).
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DATE: 3/5/2021
Section 320.03(4)(b), F.S., requires that FRVIS be installed in every tax collector's and LPA's office
according to a scheduled established by DHSMV in consultation with the tax collectors and contingent
upon the state providing funds for the system . FRVIS is administered by DHSMV in consultation with
the Florida Tax Collectors, Inc., to ensure that each county tax collector's office is able to operate
FRVIS. Only DHSMV, tax collectors, and LPAs have access to FRVIS. Access to FRVIS is governed
by memoranda of understanding (MOUs) between DHSMV and each county tax collector. If a tax
collector has contracted with an LPA, an additional MOU between DHSMV, the tax collector and the
LPA is created. 10
A fee of 50 cents is charged on each motor vehicle , mobile home, and vehicle registration to cover the
cost of FRVIS.11 These fees are deposited into the Highway Safety Operating Trust Fund to be used
exclusively to fund FRVIS. 12
Effect of the Bill
The bill amends s. 320.03, F.S., to require county tax collectors and their approved license tax agents
to enter into an MOU with DHSMV regarding the use of FRVIS. This codifies existing practice.
The bill also amends ss. 319.32(2), 320.04(3), and 328.72(7), F.S., to require county tax collectors to
determine the additional service charges to be collected by his or her LPAs 13 for motor vehicle, mobile
home and vessel title and registration services. This service charge is in addition to the current fees or
charges collected by a county tax collector. The bill requires these charges to be disclosed and
itemized to any customer who is required to pay the additional service charges. The LPA is also
required to enter into a contract with the tax collector regarding the disclosure of additional service
changes.
The bill has an effective date of July 1, 2021.
B. SECTION DIRECTORY:
Section 1 Amends s. 320.03, F.S., relating to the registration duties of tax collectors .
Section 2 Amends s. 319.32, F.S., relating to fees ; service charge; disposition .
Section 3 Amends s. 320.04, F.S., relating to the registration service charge.
Section 4 Amends s. 328.72, F.S., relating to classification, registration , fees and charges; disposition
of fees; fines; marine turtle stickers.
Section 5 Provides an effective date of July 1, 2021 .
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues :
None.
10
Id. at. 3-4. (January 14, 2021).
11
See ss. 320.03(5) and 328.73(3), F.S.
12
Department of Highway Safety and Motor Vehicles, Agency Analysis of2021 House Bill 621, pp. 3-4. (February 4, 2021).
13
Different terms are used to describe the term "license plate agent" in each of the three statute sections.
STORAGE NAME: h0621.TIE.DOCX PAGE : 3
DATE: 3/5/2021
2. Expenditures:
Indeterminate. If the bill leads to more tax collectors using LPAs or additional LPA offices being
established, DHSMV's recurring costs for replacing equipment in tax collectors' and LPAs' office
may increase. This could potentially impact the ability of the Highway Safety Trust Fund to pay all of
the costs for FRVIS and other trust fund purposes. 14
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues :
Indeterminate. To the extent that a tax collector performs a smaller share of title and registration
work in his or her county and an LPA performs a greater share, the tax collector may retain a larger
share of the. statutorily authorized fees for such work, if those fees are not shared with the LPA. 15
2. Expenditures:
Indeterminate. To the extent that a county tax collector performs less title and registration work in
his or her county and an LPA performs a greater share, the tax collector's expenditures for
performing such work may decrease. 16
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Indeterminate. County tax collectors will determine the additional service charges that must be
collected from license plate agencies.
D. FISCAL COMMENTS :
None.
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:
Fees
Article VII, s. 19 of the Florida Constitution requires the imposition, authorization, or raising of a state
tax or fee be contained in a separate bill that contains no other subject and be approved by two-
thirds of the membership of each house of the Legislature. Art. VI I, s. 19 of the Florida Constitution
may apply if the provisions of the bill that authorize county tax collectors to establish additional
service charges for LPAs are determined to authorize a new state fee .
While a county tax collector's office is not a state agency, in its role as DHSMV's authorized agent it
is considered a "state agency" when acting pursuant to s. 320.03, F.S., providing motor vehicle and
mobile home services.17 Additionally, a 1974 Attorney General Opinion concluded that tax collectors
14
Department of Highway Safety and Motor Vehicles, Agency Analysis of2021 HB 621 342, p. 5. (January 14, 2021).
1s Id.
16 Id.
17
See Dealer Tag Agency, Inc. v. First Hillsborough Auto Tag Agency, Inc., 14 So. 3d. 1238, 1240 (Fla 2d DCA 2009).
STORAGE NAME: h0621 .TIE .D0CX PAGE: 4
DATE: 3/5/2021
are under DHSMV's direction and control when providing motor vehicle and mobile home
registrations and issuing driver licenses. 18 Therefore, any fee that a tax collector authorizes an LPA
to charge may be a state fee since they relate to a tax collector's duties pursuant to chs. 319, 320,
and 328, F.S. 19
Unlawful Delegation
The bill authorizes county tax collectors to determine the additional service charges to be collected
by private LPAs. But does not provide guidance or limitations on these charges. This lack of
guidance may violate the nondelegation doctrine, requiring that the Legislature make fundamental
and primary policy decisions and that the administration of legislative programs be pursuant to
minimal standards and guidelines ascertainable by reference to the law establishing the program. 20
However, a customer may avoid these charges by choosing to conduct business directly with the tax
collector's office and not the LPA.
B. RULE-MAKING AUTHORITY:
The bill does not provide a grant of rulemaking, nor does it require rulemaking .
C. DRAFTING ISSUES OR OTHER COMMENTS:
Drafting Issues
In different sections of the bill, the terms "license tag agents"; "license plate agents," and "privately
owned approved license plate agents" appear refer to the same type of entity, but using different terms.
Other Comments
According to DHSMV, the bill does not address Off-Highway Vehicle titles, since those types of vehicle
are not included in the definition of the term "motor vehicle" in ch. 322, F.S. The definition of "off-
highway vehicles" and their associated fees are in ch. 317, F.S., DHSMV recommends similar
provisions to the tax collector fee provision be added to the bill for off-highway vehicles. 21
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
18
FLAG074-I0l (Apr. l, 1974).
19
Department of Highway Safety and Motor Vehicles, Agency Analysis of2021 SB 342, p. 6-7. (January 14, 2021).
20
Id. Citing Askew v. Cross Key Waterways, 372 So. 2d 913, 925 (Fla. 1978)
21 Id.
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DATE: 3/5/2021
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 621 2021
1 A bill to be entitled
2 An act relating to tax collectors and their approved
3 agents; amending s. 320.03, F.S.; requiring a tax
4 collector's approved license tag agents to protect
5 customer privacy and data collection while using the
6 Florida Real Time Vehicle Information System;
7 requiring tax collectors and their approved license
8 tag agents to enter into a memorandum of understanding
9 with the Department of Highway Safety and Motor
10 Vehicles regarding use of the system; amending ss.
11 319.32, 320.04, and 328.72, F.S.; requiring a tax
12 collector to determine service charges collected by
13 privately owned approved license plate agents for
14 motor vehicle title certificates, license plates for
15 or registration of motor vehicles, and registration of
16 vessels, respectively; requiring such agents to enter
17 into contracts with the tax collector for the purpose
18 of disclosing such service charges to customers;
19 providing an effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Subsection (5) of section 320.03, Florida
24 Statutes, is amended to read:
25 320.03 Registration; duties of tax collectors;
Page 1 of 4
CODING: Words strisken are deletions; words underlined are additions.
hb0621-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 621 2021
26 International Registration Plan. -
27 (5) In addition to the fees required under s. 320.08, a
28 fee of 50 cents shall be charged on every license registration
29 sold to cover the costs of the Florida Real Time Vehicle
30 Information System. The fees collected shall be deposited into
31 the Highway Safety Operating Trust Fund to be used exclusively
32 to fund the system. The fee may only be used to fund the system
33 equipment, software, personnel associated with the maintenance
34 and programming of the system, and networks used in the offices
35 of the county tax collectors as agents of the department and the
36 ancillary technology necessary to integrate the system with
37 other tax collection systems. The department shall administer
38 this program upon consultation with the Florida Tax Collectors,
39 Inc., to ensure that each county tax collector's office is
40 technologically equipped and functional for the operation of the
41 Florida Real Time Vehicle Information System and that each tax
42 collector's approved license tag agents protect customer privacy
43 and data collection. Each tax collector and his or her approved
44 license tag agents shall enter into a memorandum of
45 understanding with the department regarding use of the Florida
46 Real Time Vehicle Information System in accordance with
47 paragraph (4) (b). Any designated revenue collected to support
48 functions of the county tax collectors and not used in a given
49 year must remain exclusively in the trust fund as a carryover to
50 the following year.
Page 2 of 4
CODING: Words strioken are deletions; words underlined are additions.
hb0621-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 621 2021
51 Section 2. Paragraph (c) is added to subsection (2) of
52 section 319.32, Florida Statutes, to read:
53 319.32 Fees; service charges; disposition.-
54 (2)
55 (c) In exercising his or her authority to contract with a
56 license plate agent, the tax collector shall determine the
57 additional service charges to be collected by his or her
58 privately owned approved license plate agents, which fees shall
59 be fully itemized and disclosed to the customer. Each license
60 plate agent shall enter into a contract with the tax collector
61 regarding the disclosure of additional service charges.
62 Section 3. Subsection (3) of section 320.04, Florida
63 Statutes, is renumbered as subsection (4), and a new subsection
64 (3) is added to that section to read:
65 320.04 Registration service charge.-
66 (3) In exercising his or her authority to contract with a
67 license tag agent, the tax collector shall determine the
68 additional service charges to be collected by his or her
69 privately owned approved license tag agents, which fees shall be
70 fully itemized and disclosed to the customer. Each license tag
71 agent shall enter into a contract with the tax collector
72 regardinq the disclosure of additional service charges.
73 Section 4. Subsection (7) of section 328.72, Florida
74 Statutes, is amended to read:
75 328.72 Classification; registration; fees and charges;
Page 3 of 4
CODING: Words strickoA are deletions; words underlined are additions.
hb0621-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 621 2021
76 surcharge; disposition of fees; fines; marine turtle stickers.-
77 (7) SERVICE FEE.-
78 ~ In addition to other registration fees, the vessel
79 owner shall pay the tax collector a $2.25 service fee for each
80 registration issued, replaced, or renewed. Except as provided in
81 subsection (15), all fees, other than the service charge,
82 collected by a tax collector must be remitted to the department
83 not later than 7 working days following the last day of the week
84 in which the money was remitted. Vessels may travel in salt
85 water or fresh water.
86 (b) In exercising his or her authority to contract with a
87 license plate agent, the tax collector shall determine the
88 additional service charges to be collected by his or her
89 privately owned approved license plate agents, which fees shall
90 be fully itemized and disclosed to the customer. Each license
91 plate agent shall enter into a contract with the tax collector
92 regarding the disclosure of additional service charges.
93 Section 5. This act shall take effect July 1, 2021.
Page 4 of 4
CODING: Words strisken are deletions; words underlined are additions.
hb0621-00
TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE
HB 621 by Rep. Williamson
TAX COLLECTORS and THEIR APPROVED AGENTS
AMENDMENT SUMMARY
MARCH 3, 2021
Amendment 1 (Strike-All Amendment) by Rep. Williamson (# 742277)
• Clarifies that provisions authorizing a tax collector to contract with license plate
agents are permissive.
• Provides that the tax collector may determine the additional service charges
collected by license plates agents.
• Reorganizes the bill’s provisions to place them in statutory order.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 621 (2021)
Amendment No.
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 Williamson offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Paragraph (c) is added to subsection (2) of
8 section 319.32, Florida Statutes, to read:
9 319.32 Fees; service charges; disposition.-
10 (2)
11 (c) If a tax collector elects to exercise his or her
12 authority to contract with a license plate agent, the tax
13 collector may determine addit ional service charges to be
14 collected by the privately owned li ce nse plate agents approved
15 by the tax collector. Additi o nal service charges must be fully
16 itemized and disclosed to the person paying the service charges
742277 - h06 21 -strike .docx
Publis hed On: 3/8/2021 6:44:00 PM
Page 1 of 5
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 621 (2021)
Amendment No.
17 to the license plate agent. The license plate agent shall enter
18 into a contract with the tax collector regarding the disclosure
19 of additional service charges.
20 Section 2. Subsection (5) of section 320.03, Florida
21 Statutes, is amended to read:
22 320.03 Registration; duties of tax collectors;
23 International Registration Plan.-
24 (5) In addition to the fees required under s. 320.08, a
25 fee of 50 cents shall be charged on every license registration
26 sold to cover the costs of the Florida Real Time Vehicle
27 Information System. The fees collected shall be deposited into
28 the Highway Safety Operating Trust Fund to be used exclusively
29 to fund the system. The fee may only be used to fund the system
30 equipment, software, personnel associated with the maintenance
31 and programming of the system, and networks used in the offices
32 of the county tax collectors as agents of the department and the
33 ancillary technology necessary to integrate the system with
34 other tax collection systems. The department shall administer
35 this program upon consultation with the Florida Tax Collectors,
36 Inc., to ensure that each county tax collector's office is
37 technologically equipped and functional for the operation of the
38 Florida Real Time Vehicle Information System. Tax collectors and
39 their approved license plate agents shall enter into a
40 memorandum of understanding with the department regarding use of
41 the Florida Real Time Vehicle Information System in accordance
742277 - h0621-strike.docx
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Page 2 of 5
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 621 (2021)
Amendment No.
42 with paragraph ( 4) (b) . Any designated revenue collected to
43 support functions of the county tax collectors and not used in a
44 given year must remain exclusively in the trust fund as a
45 carryover to the following year.
46 Section 3. Present subsection (3) of section 320.04,
47 Florida Statutes, is redesignated as subsection (4), and a new
48 subsection (3) is added to that section, to read:
49 320.04 Registration service charge.-
SO (3) If a tax collector elects to exercise his or her
51 authority to contract with a license plate agent, the tax
52 collector may determine additional service charges to be
53 collected by privately owned license plate agents approved by
54 the tax collector. Additional service charges must be fully
55 itemized and disclosed to the person paying the service charges
56 to the license plate agent. The license plate agent shall enter
57 into a contract with the tax collector regarding the disclosure
58 of addi tional service charges .
59 Section 4. Subsection (7) of section 328.72, Florida
60 Statutes, is amended to read:
61 328.72 Classification; registration; fees and charges;
62 surcharge; disposition of fees; fines; marine turtle stickers.-
63 (7) SERVICE FEE.-
64 ~ In addition to other registration fees, the vessel
65 owner shall pay the tax collector a $2.25 service fee for each
66 registration issued, replaced, or renewed. Except as provided in
742277 - h0621-strike.docx
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Page 3 of 5
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 621 (2021)
Amendment No.
67 subsection (15), all fees, other than the service charge,
68 collected by a tax collector must be remitted to the department
69 not later than 7 working days following the last day of the week
70 in which the money was remitted. Vessels may travel in salt
71 water or fresh water.
72 (b) If a tax collector elects to exercise his or her
73 authority to contract with a license plate agent, the tax
74 collector may determine additional service charges to be
75 collected by privately owned license plate agents approved by
76 the tax collector. Additional service charges must be fully
77 itemized and disclosed to the person paying the service charges
78 to the license plate agent. The license plate agent shall enter
79 into a contract with the tax collector regarding the disclosure
80 of additional service charges.
81 Section 5. This act shall take effect July 1, 2021.
82
83
84 T I T L E A ME N D ME N T
85 Remove everything before the enacting clause and insert:
86 A bill to be entitled
87 An act relating to tax collectors and their approved
88 agents; amending s. 319.32, F.S.; authorizing tax
89 collectors to determine service charges collected by
90 privately owned license plate agents for motor vehicle
91 titles; requiring that additional service charges be
742277 - h0621-strike.docx
Published On: 3/8/2021 6:44:00 PM
Page 4 of 5
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 621 (2021)
Amendment No.
92 itemized and disclosed to the person paying them;
93 requiring a license plate agent to enter into a
94 contract with the tax collector for a certain purpose;
95 amending s. 320.03, F.S.; requiring tax collectors and
96 approved license plate agents to enter into a
97 memorandum of understanding with the Department of
98 Highway Safety and Motor Vehicles for a certain
99 purpose; amending s. 320.04, F.S.; authorizing the tax
100 collector to determine service charges collected by
101 privately owned license plate agents for motor vehicle
102 registrations; requiring that additional service
103 charges be itemized and disclosed to the person paying
104 them; requiring a license plate agent to enter into a
105 contract with the tax collector for a certain purpose;
106 amending s. 328.72, F.S.; authorizing the tax
107 collector to determine service charges collected by
108 privately owned license plate agents for vessel
109 registrations and titles; requiring that additional
110 service charges be itemized and disclosed to the
111 person paying them; requiring a license plate agent to
112 enter into a contract with the tax collector for a
113 certain purpose; providing an effective date.
742277 - h0621-strike.docx
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Page 5 of 5
I
0:,
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1051 Environmental Compliance Costs
SPONSOR(S): Fernandez-Barquin
TIED BILLS: IDEN./SIM. BILLS: CS/SB 964
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee Johnson
2) Environment, Agriculture & Flooding
Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
Under current law, investor-owned electric utilities may recover certain costs , such as fuel related expenses
and environmental compliance costs, outside of base rates through separate cost recovery charges approved
by the Public Service Commission (PSC). Environmental compliance costs are recovered through a statutorily
created mechanism known as the Environmental Cost Recovery Clause (ECRC).
The bill revises the definition of "environmental compliance costs" for purposes of the ECRC to include costs or
expenses incurred by an electric utility after July 1, 2021 , pursuant to an agreement between the electric utility
and a wastewater utility for the construction and operation of a wastewater reuse system that fully or partially
satisfies a local government's statutory reclaimed water reuse requirements. The bill also requires at least 50
percent of the reclaimed water the reuse system produces to be used in conjunction with the water
requirements of an electrical generating facility or facilities owned by the electric utility.
The bill does not have a fiscal impact on state or local governments, but may result in changes to electric rates
paid be private and government entities. See Fiscal Analysis for details.
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: h1051 .TIE.D0CX
DATE: 3/5/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Ratemaking for Investor-Owned Electric Utilities
The Public Service Commission (PSC) has broad jurisdiction over the rates and service of investor-
owned electric utilities (IOUs) in Florida.1 Under this broad grant of authority, and through more specific
grants of authority in chapter 366, F.S., the PSC sets rates for each IOU through five primary
components, each of which is established in a separate administrative proceeding :
• Base rates
o Designed to recover most operations and maintenance expenses, capital investments,
and a return on capital investment.
• Fuel and purchased power cost recovery charges
o Designed to recover the costs of fuel and the energy component of wholesale power
purchases.
o By PSC order, may include recovery of capital investments, including a return on
investment, in limited circumstances.
• Capacity cost recovery charges
o Designed to recover costs of the capacity component of wholesale power purchases.
o By statute, may include recovery of certain costs related to development of new nuclear
power plants, including a return , provided that the costs will be moved into base rates
when the new plant becomes operational. 2
• Environmental cost recovery charges
o Designed to recover costs to comply with government-mandated environmental
standards.
o By statute, may include recovery of certain capital investments, including a return on
investment, provided that these costs may be moved into base rates at the IOU's next
rate case. 3
• Energy conservation and efficiency cost recovery charges
o Designed to recover costs of implementing PSC-approved energy conservation and
efficiency programs.
In each base rate proceeding, the PSC sets a reasonable rate of return on equity for the IOU . After
rates are set, the actual rate of return on equity earned by an IOU fluctuates over time as utility
revenues and expenses fluctuate.
Environmental Cost Recovery Charges
Separate from base rates, environmental cost recovery charges are set annually, and revenue
collected through the Environmental Cost Recovery Clause (ECRC) provides cash flow for the specific
operations and maintenance activities and large equipment modifications necessary to comply with
environmental laws and regulations. 4
The ECRC was established by the Legislature in 1993. To implement this law, the PSC established
three criteria for approval of recovery through the ECRC:
• The electric utility's costs were prudently incurred after April 13, 1993.
1
See, e.g., ss. 366.01, 366.04(1), 366.041, 366.05(1), and 366.06, F.S. There are five public electric utilities in Florida: Florida Power
& Light Company, Duke Energy Florida, Tampa Electric Company, Gulf Power Company, and Florida Public Utilities Company.
Florida Power & Light Company and Gulf Power Company operate under the same parent company, NextEra Energy, Inc.
2
S. 366.93, F.S.
3
S. 366.8255, F.S.
4
Public Service Commission, Agency Analysis of202 l House Bill 1051 p. I (March 3, 2021).
STORAGE NAME: h1051 .TIE.D0CX PAGE: 2
DA TE 3/5/2021
• The activity is legally required to comply with a governmentally imposed environmental
regulation enacted, became effective, or whose effect was triggered after the electric utility's last
test year upon which rates are based.
• The electric utility's costs are not recovered through some other cost recovery mechanism or
through base rates .5
Environmental compliance costs are defined in statute as all costs or expenses incurred by an electric
utility in complying with environmental laws or regulations .6 Environmental compliance costs include,
but are not limited to:
• lnservice capital investments, including the electric utility's last authorized rate of return on
equity;
• Operation and maintenance expenses;
• Fuel procurement costs;
• Purchased power costs;
• Emission allowance costs;
• Direct taxes on environmental equipment;
• Costs or expenses prudently incurred by an electric utility pursuant to an agreement entered
into between the electric utility and the Department of Environmental Protection (DEP) or the
United States Environmental Protection Agency (EPA) for the exclusive purpose of ensuring
compliance with ozone ambient air quality standards by an electrical generating facility owned
by the electric utility; and
• Costs or expenses prudently incurred for scientific research and geological assessments of
carbon capture and storage conducted in this state for the purpose of reducing an electric
utility's greenhouse gas emissions when such costs or expenses are incurred in joint research
projects with Florida state government agencies and universities.7
Reuse of Reclaimed Water
Water conservation and the promotion of reuse of reclaimed water have been established by the
Legislature as formal state objectives.8 Reuse is defined as the deliberate application of reclaimed
water for a beneficial purpose. 9 Reclaimed water is defined as water from a domestic wastewater10
treatment facility that has received at least secondary treatment 11 and basic disinfection 12 for reuse.13
Reclaimed water is reused for various purposes, such as irrigation, industrial uses, groundwater
recharge, and prevention of saltwater intrusion in coastal groundwater aquifers. 14 Industrial uses of
5
See PSC Order No. PSC-94-0044-FOF-EI, issued January 12, 1994, in Docket No . 930613-EI, In re: Petition to establish an
environmental cost recovery clause pursuant to Section 366.0825, Florida Statutes by Gulf Power Company. Section 120.80(13), F.S.,
exempts cost recovery clause proceedings from rulemaking requirements.
6
S. 366.8255(l)(d), F.S. Environmental laws or regulations are defined as "all federal, state, or local statutes, administrative
regulations, orders, ordinances, resolutions, or other requirements that apply to electric utilities and are designed to protect the
environment."
7
S. 366.8255(l)(d), F.S.
8
Ss. 403 .064(1) and 373.250(1), F.S.
9
R. 62-610.200(52), F.A.C.
10
Section 367.021 (5), F.S., defines the term "domestic wastewater" to mean wastewater principally from dwellings, business
buildings, institutions, and sanitary wastewater or sewage treatment plants.
11
Rule 62-610.200(54), F.A.C. defines the term "secondary treatment" to mean "wastewater treatment to a level that will achieve the
effluent limitations specified in paragraph 62-600.420(1 )(a), F.A.C."
12
Rule 62-600.440(5), F.A.C., provides the requirements for basic disinfection.
13
Section 373.019(17), F.S.; R. 62-610.200(48), F.A.C.
14
Martinez, Christopher J. and Clark, Mark W., Reclaimed Water and Florida's Water Reuse Program, UF/IFAS Agricultural and
Biological Engineering Department (rev. 07/2012), available at
https://citeseerx.ist.psu.edu/viewdoc/download?doi=l O. l. l .590.5063&rep=rep l&type=pdf.
STORAGE NAME: h1051 .TIE.DOCX PAGE: 3
DATE : 3/5/2021
reclaimed water include plant wash-down and processing and cooling water. 15 Several power plants
throughout the state use reclaimed water for cooling purposes. 16
Local governments are authorized and encouraged under Florida law to implement programs for the
reuse of reclaimed water and are authorized to allocate the costs of such programs in a reasonable
manner. 17
Ocean Outfalls
An ocean outfall occurs when a wastewater treatment facility or other facility discharges treated effluent
into coastal or ocean waters. 18 State law prohibits construction of new ocean outfalls and requires that
all six ocean outfalls in Florida cease discharging wastewater by December 31, 2025. 19 In addition,
wastewater facilities that discharged wastewater through an ocean outfall on July 1, 2008, are required
to install a reuse system no later than December 31, 2025. 20 Existing discharges through ocean outfalls
were required to meet advanced wastewater treatment requirements 21 by December 31, 2018. 22
Effect of the Bill
The bill amends 366.8255(1)(d), F.S., by expanding the definition of environmental compliance costs to
include the costs or expenses incurred by an electric utility, after July 1, 2021, in constructing and
operating a wastewater reuse system pursuant to an agreement between the electric utility and a
wastewater utility. The bill requires that the wastewater reuse system fully or partially satisfy a local
government's reclaimed water reuse requirements under s. 403.064, F.S., 23 ors. 403.086, F.S. 24 The
bill further requires that at least 50 percent of the produced reclaimed water is used in conjunction with
the water requirements of one or more of the utility's electrical generating facilities.
Under the bill, an electric utility that constructs a new wastewater reuse system that satisfies the
expanded definition of environmental compliance costs may begin to seek recovery of all its prudently
incurred costs and expenses through the ECRC. The electric utility's level of cost recovery through the
ECRC may include depreciation of the capital investments in the wastewater reuse system, the
associated direct operating and maintenance expenses, and associated indirect expenses such as
taxes and a return on its capital investments.
The bill has an effective date July 1, 2021.
B. SECTION DIRECTORY:
Section 1 Amends s. 366.8255, F.S., relating to environmental cost recovery.
Section 2 Provides an effective date of July 1, 2021.
15 Department of Environmental Protection (DEP), Uses of Reclaimed Water, https://floridadep.gov/water/domestic-
wastewater/content/uses-reclaimed-water (last visited Mar. 5, 2021 ).
16
DEP, Industrial Uses of Reclaimed Water, https://floridadep.gov/water/domestic-wastewater/content/industrial-uses-reclaimed-
water (last visited Mar. 5, 2021).
17
Section 403.064(9)-(10), F.S.
18
DEP, Ocean Outfall Study Final Report ES-1 (Apr. 18, 2006), available at
https ://floridadep .gov/sites/default/files/OceanOutfal lStudy_0. pdf.
19
S. 403.086(10), F.S.; Ch. 2008-232, L.O.F.
20
S. 403.086(10)(c), F.S.
21
S. 403.086(4), F.S.
22
S. 403.086(1 O)(b ), F.S.
23
Section 403.064, F.S., relates to the use of reclaimed water.
24
Section 403.086, F.S., relates to sewage disposal facilities.
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DATE: 3/5/2021
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None. Any increased workload associated with the PSC's review of the ECRC petition is expected
to be handled within existing PSC resources.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
The bill may result in higher electric rates for local governments if an electric utility's costs increase
due to agreeme.nts with wastewater utilities for wastewater reuse systems.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may result in higher electric rates if an electric utility's costs increase due to agreements with
wastewater utilities for wastewater reuse systems.
D. FISCAL COMMENTS:
None.
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:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS :
Due to economies of scale, it is possible that a joint-use wastewater reuse system will result in lower
total costs to the electric utility and wastewater utility when compared with two independent actions by
these parties. While it is possible that the agreement between the parties could apportion cost and
liability responsibilities, the bill does not require the agreement to address these matters. Therefore, the
STORAGE NAME: h1051 .TIE.DOCX PAGE: 5
DATE: 3/5/2021
bill may be read to create an incentive or an expectation that local governments shift cost and liability
responsibilities from wastewater utilities to electric utilities.
Additionally, the bill appears to alter the scope of the statute by expanding the definition of
environmental compliance costs to include costs for projects that are not imposed on an investor-
owned electric utility by an environmental law or regulation. The new provision is not associated with
any government environmental mandate but rather includes the construction and operation of a
wastewater reuse facility or system based on the decisions and agreements made by private entities.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
Not applicable.
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DATE: 3/5/2021
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1051 2021
1 A bill to be entitled
2 An act relating to environmental compliance costs;
3 amending s. 366.8255, F.S.; redefining the term
4 "environmental compliance costs" to include costs or
5 expenses prudently incurred by an electric utility in
6 complying with specified reclaimed water reuse
7 requirements; providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Paragraph (d) of subsection (1) of section
12 366.8255, Florida Statutes, is amended to read:
13 366.8255 Environmental cost recovery.-
14 (1) As used in this section, the term:
15 ( d) "Environmental compliance costs" includes all costs or
16 expenses incurred by an electric utility in complying with
17 environmental laws or regulations, including, but not limited
18 to:
19 1. Inservice capital investments, including the electric
20 utility's last authorized rate of return on equity thereon.
21 2. Operation and maintenance expenses.
22 3. Fuel procurement costs.
23 4. Purchased power costs.
24 5. Emission allowance costs.
25 6. Direct taxes on environmental equipment.
Page 1 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb1051-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1051 2021
26 7. Costs or expenses prudently incurred by an electric
27 utility pursuant to an agreement entered into on or after the
28 effective date of this act and prior to October 1, 2002, between
29 the electric utility and the Florida Department of Environmental
30 Protection or the United States Environmental Protection Agency
31 for the exclusive purpose of ensuring compliance with ozone
32 ambient air quality standards by an electrical generating
33 facility owned by the electric utility.
34 8. Costs or expenses prudently incurred for scientific
35 research and geological assessments of carbon capture and
36 storage conducted in this state for the purpose of reducing an
37 electric utility's greenhouse gas emissions when such costs or
38 expenses are incurred in joint research projects with Florida
39 state government agencies and Florida state universities.
40 9. Costs or expenses prudently incurred by an electric
41 utility after July 1, 2021, pursuant to an aqreement between the
42 electric utility and a wastewater utility for the exclusive
43 purpose of the electric utility constructing and operating a
44 wastewater reuse system that fully or partially satisfies a
45 local government's reclaimed water reuse requirements under s .
46 403.064 ors. 403.086, where at least 50 percent of the
47 reclaimed water the reuse system produces is used in conjunction
48 with the water requirements of an electrical generating facility
49 or facilities owned by the electric utility.
50 Section 2. This act shall take effect July 1, 2021.
Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb1051-00
TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE
HB 1051 by Rep. Fernandez-Barquin
ENVIRONMENTAL COMPLIANCE COSTS
AMENDMENT SUMMARY
MARCH 9, 2021
Amendment 1 (Strike-All Amendment) by Rep. Fernandez-Barquin (# 697643)
• Specifies that an electric utility’s water reuse project, to be eligible for cost
recovery as an environmental compliance cost under the bill, must:
o Be incurred pursuant to an agreement between the electric utility and a
governmental wastewater utility; and
o Serve to further compliance with environmental laws or regulations that
apply to the electric utility.
• Provides that at least 50 percent of the reclaimed water produced by an eligible
project must be used in conjunction with the water requirements of an electric
generating facility.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1051 (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 Fernandez-Barquin offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Paragraph (d) of subsection (1) of section
8 366.8255, Florida Statutes, is amended to read:
9 366.8255 Environmental cost recovery.-
10 (1) As used in this section, the term:
11 (d) "Environmental compliance costs" includes all costs or
12 expenses incurred by an electric utility in complying with
13 environmental laws or regulations, including, but not limited
14 to:
15 1. Inservice capital investments, including the electric
16 utility's last authorized rate of return on equity thereon.
679643 - h1051-strike.docx
Published On: 3/8/2021 6:45:14 PM
Page 1 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1051 (2021)
Amendment No. 1
17 2. Operation and maintenance expenses.
18 3. Fuel procurement costs.
19 4. Purchased power costs.
20 5. Emission allowance costs.
21 6. Direct taxes on environmental equipment.
22 7. Costs or expenses prudently incurred by an electric
23 utility pursuant to an agreement entered into on or after the
24 effective date of this act and prior to October 1, 2002, between
25 the electric utility and the Florida Department of Environmental
26 Protection or the United States Environmental Protection Agency
27 for the exclusive purpose of ensuring compliance with ozone
28 ambient air quality standards by an electrical generating
29 facility owned by the electric utility.
30 8. Costs or expenses prudently incurred for scientific
31 research and geological assessments of carbon capture and
32 storage conducted in this state for the purpose of reducing an
33 electric utility's greenhouse gas emissions when such costs or
34 expenses are incurred in joint research projects with Florida
35 state government agencies and Florida state universities.
36 9. Costs or expenses prudently incurred by an electric
37 utility after July 1, 2021, pursuant to an agreement between the
38 electric utility and a governmental wastewater utility for the
39 exclusive purpose o f the electric utility constructing and
40 operating a wastewater reuse system where operation of the
41 system will serve to further compliance with environmental laws
679643 - h1051-strike.docx
Published On: 3/8/2021 6:45:14 PM
Page 2 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1051 (2021)
Amendment No. 1
42 or regulations that apply to the electric utility and where the
43 system fully or partially satisfies a local government's
44 reclaimed water reuse requirements under s. 403.064 ors.
45 403.086. At least 50 percent of the reclaimed water the system
46 produces must be used in conjunction with the water requirements
47 of an electrical generating facility or facilities owned by the
48 electric utility in order to offset all or part of the electric
49 utility's water use authorized by permit.
50 Section 2. This act shall take effect July 1, 2021.
51
52
53
54 T I T L E A ME N D ME N T
55 Remove everything before the enacting clause and insert:
56 A bill to be entitled
57 An act relating to environmental compliance costs;
58 amending s. 366.8255, F.S.; redefining the term
59 "environmental compliance costs" to include costs or
60 expenses prudently incurred by an electric utility in
61 complying with specified reclaimed water reuse
62 requirements; providing an effective date.
679643 - h1051-strike.docx
Published On: 3/8/2021 6:45:14 PM
Page 3 of 3
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: PCS for HB 839 Preemption of Energy Infrastructure Regulation
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Tourism, Infrastructure & Energy
Subcommittee
Willson fl\/ Keating er---"""
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 expressly preempts the regulation of transportation 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.
Except as authorized by general law, the bill prohibits local governments from:
• Adopting or implementing any law, ordinance, regulation, policy, or resolution that has the effect of
prohibiting, restricting, or requiring, the construction of new transportation energy infrastructure or the
expansion, upgrading, or repair of existing transportation energy infrastructure, or
• imposing any requirement regulating transportation energy infrastructure that is more stringent than state
law or DEP rule, except for certain county ordinances regulating underground petroleum storage tanks
enacted before Sept. 1, 1984.
• Amending its comprehensive plan, land use map, zoning districts, or land development regulations in a
manner that would conflict with an existing transportation energy infrastructure classification as a permitted
and allowable use including, but not limited to, an amendment that causes an existing transportation
energy infrastructure to be a nonconforming use, structure, or development.
• Imposing transportation energy infrastructure requirements that are more stringent than state law or DEP
rule.
The bill does not limit the authority of a local government to adopt, implement, modify, and enforce applicable
federal and state requirements for transportation energy infrastructure, including safety and building standards.
The bill defines the term "transportation energy infrastructure" as "infrastructure supporting the production,
import, storage, and distribution of fuels used for transportation including, but not limited to, petroleum,
petroleum products, gasoline, diesel fuel, motor fuel, alternative fuel, marine fuel, aviation fuel, renewable fuel,
natural gas, hydrogen, and electricity."
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: pcs0839.TIE.D0CX
DATE: 3/5/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Local Government Powers 1
Article VII I 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 20 J8-2020, Chapter I.
2
FLA. CONST. art. VIII, s. ](a).
3
FLA. CONST. art. VIII, s. 2(a).
4
See Local Government Formation 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(f).
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. 1st DCA. 1994).
11
David G. Tucker, A Primer On Counties and Municipalities - Part I, 81 FLA. BAR J. 49 (2007).
12
See ss. 125.01(1), 125.72, F.S.
u 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
Municipalities24
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 Districts 32
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. VIII, s. 6(e), incorporating 1885 FLA. CONST. art. VIII, s. 1 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, Stale Totals, lmp://dca.deo.myflorida.corn/fl1cd/sdip/Of·l icialListdco/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 hUp://w~ w.norida jobs.org/community-plan ning.;and-dcve lopmenl/as.sistance-for-
govcrnmcnts-and-organizations/special-district·accountabi lity-progrnm (last visited Feb. 28, 2021 ).
36
See PSC, Facts & Figures of the Florida Utility Industry
hllp;//www .psc. 'tale. fl .us/Files/PDF/P ub lications/Reports/Geneml/Factsand figures/Apri 1%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, hHp://fmpa .com/about/members/ (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, https://fmpa.com/pm er-supply-pro jects/ (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 'tracking') 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 Jd.
45
S. 377.24(5), F.S.
46
S. 377.24(6), F.S.
47 S. 377.24(7), F.S.
48 S. 253.61(1)(a), F.S.
49 S. 253.61(1)(b), F.S.
50 S. 253.61(1)(c), F.S.
51 S. 253.61(1)(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, htt p://www.foodandwaterwaLch.org/insighl/local-resolutions-agai nst-
fracki ng#11orida (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" ands. 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 ofan 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 ofa 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 oflaw 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.
6 6 S. 125.0l(l)(bb), F.S.
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• 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
lnterloca/ 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 Fonnation 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"
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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 l ofch. 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.
80 Id.
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• 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(1 )(a)5., F.S.
86 S. 377.242(1)(a)l., F.S.
87 S. 377.242(l)(a)2., F.S.
88
S. 377.242(1 )(a)3., F.S.
89
S. 377.242(1)(a)4., F.S.
90
Section 377.22(2)(g), F.S.
91
Section 377.242, F.S.
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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.
DE P'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(61 ), F.A.C.
95
s. 350.001, F.S.
96
FLA. PUBLIC SERVICE COMM[SSION, The PSC 's Role, hllp://www.,)SC.Slate.ll.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), ht1p://www.psc.state.J1 .us/Filcs/PDF/ Publica1fons/Rcports/Genernl/Annua lrcport:s/2020.pdC
(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.
IOI S. 403.537, F.S.
to 2 "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,
http ://ww .dictionary.com/ bro1 se/incidcnce (last visited Feb. 28, 2021).
to 3 S. 377.705(2)(a)-(b), F.S.
104
Florida Solar Energy Center, About Us, http://www. I' cc. ucf.edu/en/about/ index.htm (last visited Feb. 26, 2021 ).
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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, h!tps://solar-ra!ing.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, http://www.iapmort.org/Pages/Solar ertilicalion.aspx (last visited Feb. 28, 2021).
108
Florida Solar Energy Center, Testing and Certification,hup://www.11cc.ucf.edu/En/certification-tc Ling/index .htm (last visited Feb. 28, 2021 ).
109
Chapter 14 of the 51h edition of the Florida Building Code (Mechanical), Chapters 9 and 23 of the 51h 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 l) 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 ofa stricter regulation frustrates the purpose of the statute, the local government must abstain."
117
See City of Hol/ywoodv. 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).
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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 transportation energy infrastructure
regulation. The bill expressly preempts the regulation of transportation 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.
Except as authorized by general law, the bill prohibits local governments from:
• Adopting or 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 transportation energy infrastructure or the expansion, upgrading, or repair of
existing energy infrastructure, or
• imposing any requirement regulating transportation energy infrastructure that is more stringent
than state law or DEP rule, except for county ordinances regulating underground petroleum
storage system construction, operation, and maintenance that were enacted pursuant to s.
376.317(3)(a), F.S. 121
• Amending its comprehensive plan, land use map, zoning districts, or land development
regulations in a manner that would conflict with an existing transportation energy infrastructure
classification as a permitted and allowable use including, but not limited to, an amendment that
causes an existing transportation energy infrastructure to be a nonconforming use, structure, or
development.
• Imposing transportation energy infrastructure requirements that are more stringent than state
law or DEP rule.
The bill does not limit the authority of a local government to adopt, implement, modify, and enforce
applicable federal and state requirements for transportation energy infrastructure, including safety and
building standards. However, the bill specifies that the exercise of local authority may not conflict with
federal or state safety and security requirements for transportation energy infrastructure.
The bill defines the term "transportation energy infrastructure" as "infrastructure supporting the
production, import, storage, and distribution of fuels used for transportation including, but not limited to,
petroleum, petroleum products, gasoline, diesel fuel, motor fuel, alternative fuel, marine fuel, aviation
fuel, renewable fuel, natural gas, hydrogen, and electricity."
The bill provides a Legislative finding which recognizes that affordable, reliable, and sustainable
transportation energy throughout the state is dependent upon transportation energy infrastructure
networks extending beyond local government boundaries and recognizes the importance of consumer
choice in the transportation energy market.
118
Mulligan, 934 So. 2d at 1243.
119
Sarasota Alliance/or Fair Elections, Inc. v. Browning, 28 So. 3d 880, 886 (Fla. 2010).
120
See, e.g., Nat 'I Rifle Ass 'n ofAm., Inc. v. City ofS. Miami, 812 So.2d 504 (Fla. 3d DCA 2002).
121
Section 376.3 l 7(3)(a), F.S. authorizes county governments to adopt countywide ordinances that regulate underground storage tanks if the
ordinance is the same as or more stringent or extensive than any state law regulating underground storage tanks and the original ordinance was
legally adopted and in force before September 1, 1984.
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B. SECTION DIRECTORY:
Section 1 Creates s. 377.707, F.S.; providing a definition; providing legislative findings; preempting
regulation of transportation energy infrastructure to the state; prohibiting a local government
from regulating transportation energy infrastructure; providing an exception; providing
construction.
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.
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 1O 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
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prospectively but not retroactively. 122 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. "123
Current law authorizes local governments to provide and contract for certain services related to
transportation 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.
C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill prohibits local regulations that" ... have the effect of prohibiting, restricting, or requiring, the
construction of new transportation energy infrastructure or the expansion, upgrading, or repair or
existing transportation 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 transportation
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
122
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."
123
Menendez v. Progressive Exp. Ins. Co., Inc., 35 So.3d 873 (Fla. 2010).
STORAGE NAME: pcs0839.TIE.DOCX PAGE: 15
DATE: 3/5/2021
FLORIDA H O U S E 0 F REPRESENTATIVES
PCS for HB 839 2021
1 A bill to be entitled
2 An act relating to state preemption of transportation
3 energy infrastructure regulation; creating s. 377.707,
4 F.S.; providing a definition; providing legislative
5 findings; preempting regulation of transportation
6 energy infrastructure to the state; prohibiting a
7 local government from regulating transportation energy
8 infrastructure; providing an exception; providing
9 construction; providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Section 377.707, Florida Statutes, is created
14 to read:
15 377.707 State preemption of transportation energy
16 infrastructure regulation.-
17 (1) As used in this section, the term "transportation
18 energy infrastructure" means infrastructure supporting the
19 production, import, storage, and distribution of fuels used for
20 transportation in cluding, but not limited to, petroleum,
21 petroleum products, gasoline, diesel fuel, motor fuel,
22 alternative fuel, marine fuel, aviation fuel, renewable fuel,
23 natural gas, hydrogen, and electricity.
24 (2) The Legislature finds that affordable, reliable, and
25 sustainable transportation energy throughout the state is
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FLORIDA H O U S E 0 F REPRESENTATIVES
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26 dependent upon transportation energy infrastructure networks
I
27 extending beyond local government boundaries and recognizes the
28 importance of consumer choice in the transportation energy
29 market. Therefore, the regulation of transportation energy
30 infrastructure is expressly preempted to the state.
31 (3) Except as authorized by general law, a local
32 government is prohibited from:
33 (a) Adopting or implementing any law, ordinance,
34 regulation, policy, or resolution that prohibits, restricts, or
35 requires, or that has the effect of prohibiting, restricting, or
36 requiring, the construction of new transportation energy
37 infrastructure or the expansion, upgrading, or repair of
38 existing transportation energy infrastructure, or imposing any
39 requirement regulating transportation energy infrastructure that
40 is more stringent than state law or department rule, except for
41 local ordinances regulating underground petroleum storage system
42 construction, operation, and maintenance that were enacted
43 pursuant to s. 376.317 (3) (a).
44 (b) Amending its comprehensive plan, land use map, zoning
45 districts, or land development regulations in a manner that
46 would conflict with an existing transportation energy
47 infrastructure classification as a permitted and allowable use
48 including, but not limited to, an amendment that causes an
49 existing transportation energy infrastructure to be a
50 nonconforming use, structure, or development.
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51 (c) Imposing transportation energy infrastructure
52 requirements that are more stringent than state law or
53 department rule.
54 (4) This section does not limit the authority of a local
55 g overnment to adopt, implement, modify, and enforce applicable
56 federal and state requirements for transportation energy
57 infrastructure including safety and building standards. However,
58 the exercise of local authority may not conflict with federal or
59 state safety and security requirements for transportation energy
60 infrastructure.
61 (5) An y e x isting or fut ure law, ordinance, regulation,
62 policy, or resolution that is contrary to this section is void
63 Section 2. This act shall take effect July 1, 2021.
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