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Home Source documents Florida House Tourism, Infrastructure & Energy Subcommittee meeting packet, March 9, 2021

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.




                              NOTICE FINALIZED on 03/05/2021 4:00PM by Rigas.Amanda


03/05/2021     04:00:23PM                                    Leagls ®                                           Page 1 of 1
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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.
STORAGE NAME: h0139.TIE,D0CX
DATE: 3/5/2021
                                                          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.
STORAGE NAME: h0139.TIE.D0CX                                                                                                     PAGE: 2
DATE: 3/5/2021
         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
STORAGE NAME: h0139.TIE.DOCX                                                                                  PAGE: 3
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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.
STORAGE NAME: h0139.TIE.D0CX                                                                                                      PAGE: 4
DATE: 3/5/2021
         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).
STORAGE NAME: h0139.TIE.DOCX                                                                                  PAGE: 5
DA TE: 3/5/2021
           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)
STORAGE NAME : h0139.TIE.DOCX                                                                                         PAGE: 6
DATE: 3/5/2021
          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.
STORAGE NAME: h0139.TIE.D0CX                                                                                 PAGE: 7
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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

                                                      Page 1 of 7

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FLORIDA                       H   O    U   S   E     0    F     REPRESENTATIVES




        HB 139                                                                   2021




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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FLORIDA                       H O U S          E      0   F     REPRESENTATIVES




        HB 139                                                                  2021



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

                                                       Page 3 of 7

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FLORIDA                        H    O   U   S   E      0   F      REPRESENTATIVES




          HB 139                                                               2021



 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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                                                                              hb0139-00
FLORIDA                        H   O    U   S   E     0   F      REPRESENTATIVES




          HB 139                                                                  2021



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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FLORIDA                        H    O   U   S   E      0   F      REPRESENTATIVES




          HB 139                                                                 2021




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,

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          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.




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      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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                                               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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                                     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.
STORAGE NAME: h0451.TIE.D0CX                                                                                                      PAGE: 2
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.
STORAGE NAME: h0451 .TIE .D0CX                                                                                       PAGE: 3
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.
STORAGE NAME: h0451.TIE.D0CX                                                                                             PAGE: 4
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.




STORAGE NAME: h0451.T1E.D0CX                                                                                 PAGE: 5
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

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                                                                               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
     631941 - h0451-line 10.docx
     Published On: 3/8/2021 6:41:11 PM
                                        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




     631941 - h0451-line 10.docx
     Published On: 3/8/2021 6:41:11 PM
                                      Page 2 of 2
I
CD
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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.

STORAGE NAME h0539.TIE.DOCX                                                                                           PAGE: 2
DATE 3/5/2021
         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.
STORAGE NAME: h0539-TIE.D0CX                                                                                           PAGE : 3
DATE: 3/5/2021
            •   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.

STORAGE NAME: h0539.TIE.D0CX                                                                                 PAGE: 4
DATE : 3/5/2021
        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.




STORAGE NAME: h0539.TIE.D0CX                                                                              PAGE: 5
DATE: 3/5/2021
    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




STORAGE NAME: h0539.TIE.DOCX                                                                               PAGE: 6
DATE: 3/5/2021
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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FLORIDA                        H    O   U   S   E     0    F     REPRESENTATIVES




         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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FLORIDA                        H   O   U   S   E      0     F      REPRESENTATIVES




         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.




                                                          Page 5 of 5

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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.
STORAGE NAME: h0613.TIE .D0CX                                                                                                     PAGE: 2
DATE : 3/5/2021
         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 ).
STORAGE NAME: h0613.TIE .D0CX                                                                                                  PAGE: 3
DATE: 3/5/2021
                         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
STORAGE NAME: h0613.TIE.D0CX                                                                               PAGE: 4
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)
STORAGE NAME: h0613.TIE.D0CX         .                                                                           PAGE: 5
DATE: 3/5/2021
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        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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        HB 613                                                                   2021




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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         HB 613                                                                 2021



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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          HB 613                                                                   2021




 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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         HB 613                                                                    2021




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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         HB 613                                                                  2021




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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          HB 613                                                                     2021




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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          HB 613                                                                                  2021




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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          HB 613                                                                 2021




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 .
     7 6810 1 - h0 613 -line l 27 .docx
      Publi s h ed On : 3 /8 / 2 0 2 1 6:4 2 : 35 PM
                                             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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                                          Page 3 of 4
                                           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).
STORAGE NAME: h0621 .TIE.D0CX                                                                                                    PAGE: 2
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.

STORAGE NAME: h0621 .TIE .D0CX                                                                                   PAGE: 5
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

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                                                                              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

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                                                                                  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
      Published On: 3/8/2021 6:44:00 PM
                                     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
      Published On: 3/8/2021 6:44:00 PM
                                     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
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                                    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.




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                                   Page 5 of 5
I
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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.
STORAGE NAME: h1051 .TIE.D0CX                                                                                               PAGE: 4
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.




STORAGE NAME: h1051.TIE .DOCX                                                                               PAGE: 6
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.
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                                        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
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                                   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.




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                                   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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DATE: 3/5/2021
          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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DATE: 3/5/2021
              •    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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DATE: 3/5/2021
           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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DATE: 3/5/2021
            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.
STORAGE NAME: pcs0839.TIE.DOCX                                                                                                        PAGE: 6
DATE: 3/5/2021
           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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DATE: 3/5/2021
                •    To adopt, revise, and amend, from time to time, appropriate ordinances, rules, and regulations
                     reasonably necessary to maintain air quality standards established pursuant to state and federal
                     law, including the federal Clean Air Act. 67
                •    License the use of gas and power lines in right-of-ways. 68
                •    Issue development permits and orders. 69
                •    Code enforcement. 70

           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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DATE: 3/5/2021
          State Regulation of Energy Infrastructure

          Oil and Gas Exploration and Production

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

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


77
   The Oil and Gas Program is governed by part 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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DATE: 3/5/2021
                •    To identify the ownership of all oil or gas wells, producing leases, refineries, tanks, plants,
                     structures, and storage and transportation equipment and facilities;
                •    To regulate the "shooting," perforating and chemical treatment of wells;
                •    To regulate secondary recovery methods, including the introduction of gas, air, water, or other
                     substance into producing formations;
                •    To regulate gas cycling operations;
                •    To regulate the storage and recovery of gas injected into natural gas storage facilities;
                •    To, if necessary, determine, limit, and prorate the production of oil or gas, or both, from any pool
                     or field in the state;
                •    To require certificates of clearance or tenders in connection with the transportation or delivery of
                     oil or gas, or any product;
                •    To regulate the spacing of wells and to establish drilling units;
                •    To prevent, so far as is practicable, reasonably avoidable drainage from each developed unit
                     which is not equalized by counterdrainage;
                •    To require that geophysical operations requiring a permit be conducted in a manner which will
                     minimize the impact on hydrology and biota of the area, especially environmentally sensitive
                     lands and coastal areas;
                •    To regulate aboveground crude oil storage tanks in a manner which will protect the water
                     resources of the state; and
                •    To act in a receivership capacity for fractional mineral interests for which the owners are
                     unknown or unlocated and to administratively designate the operator as the lessee. 81

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

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

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

81   Id.
82
   S. 377.242(1), F.S.
83
   S. 377.242(2), F.S.
84
   S. 377.242(3), F.S.
85
   Ss. 377.24(9) and 377.242(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.
STORAGE NAME: pcs0839.TIE.D0CX                                                                                   PAGE: 10
DATE: 3/5/2021
           Well Stimulation ("Fracking'J

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

           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 ).
STORAGE NAME: pcs0B39.TIE.D0CX                                                                                                                       PAGE: 11
DATE: 3/5/2021
           All solar energy systems manufactured or sold in Florida must meet the standards set by FSEC. 105
           FSEC also accepts standards and certifications for solar thermal products from the Solar Rating &
           Certification Corporation (SRCC) 106 and the International Association of Plumbing and Mechanical
           Officials 107 (IAPM0). 108 In addition, the current version of the Code provides that solar energy systems
           installed in Florida are required to meet certain standards. 109

           Florida Department of Agriculture and Consumer Services

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

           Preemption

          Local governments have broad authority to legislate on any matter that is not inconsistent with federal
          or state law. A local government enactment may be inconsistent with state law if (1) the Legislature
          "has preempted a particular subject area" or (2) the local enactment conflicts with a state statute.
          Where state preemption applies it precludes a local government from exercising authority in that
          particular area. 116

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


105
     s. 377.705(4)(d), F.S.
106
     SRCC produces solar thermal standards and certifications which are widely used globally. Solar Rating & Certification Corporation, About Us -
General, 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).
STORAGE NAME: pcs0839.TIE.D0CX                                                                                                                  PAGE: 12
DA TE: 3/5/2021
           Legislature must be accomplished by clear language stating that intent. 118 In cases where the
           Legislature expressly or specifically preempts an area, there is no problem with ascertaining what the
           Legislature intended. 119 In cases determining the validity of ordinances enacted in the face of state
           preemption, the effect has been to find such ordinances null and void. 120

           Effect of the Bill

          The bill creates s. 377.707, F.S., relating to state preemption of 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.
STORAGE NAME: pcs0839.TIE.D0CX                                                                                                             PAGE: 13
DATE: 3/5/2021
    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

STORAGE NAME: pcs0839.TIE.D0CX                                                                              PAGE: 14
DATE: 3/5/2021
               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

                                                       Page 1 of 3
     PCS for HB 839
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FLORIDA                       H   O   U   S   E      0   F        REPRESENTATIVES




        PCS for HB839                                                             2021




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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FLORIDA                        H   O   U   S   E      0   F      REPRESENTATIVES




         PCS for HB 839                                                                       2021




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.




                                                       Page 3 of 3
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                                                                                                     V


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