Bill Summary – FastDemocracy

HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 105 Specialty License Plates
SPONSOR(S): Bankson and others
TIED BILLS:       IDEN./SIM. BILLS: CS/SB 60
    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF
    1) Transportation & Modals Subcommittee                     15 Y, 0 N               Walker             Hinshelwood
    2) Infrastructure Strategies Committee
                                               SUMMARY ANALYSIS
As of November 2023, there are 114 specialty license plates available for sale and an additional 31 in presale.
Specialty license plates are available to the owner or lessee of any motor vehicle who is willing to pay an
annual use fee, in addition to the required license tax and fees. 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 General Aviation 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 “Support General
Aviation” appearing at the bottom of the plate. The annual use fees from the sale of the plate are distributed to
the Aerospace Center for Excellence.
The bill will have a negative, but insignificant, fiscal impact to state expenditures associated with DHSMV’s
programming costs for the specialty license plate.
The bill has an effective date of October 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0105a.TMS
DATE: 1/31/2024
                                                     FULL ANALYSIS
                                             I. SUBSTANTIVE ANALYSIS
    A. EFFECT OF PROPOSED CHANGES:
        Current Situation
        Specialty License Plates
        As of November 2023, there are 114 specialty license plates available for sale and an additional 31 in
        presale.1 Specialty license plates are available to the owner or lessee of any motor vehicle who is
        willing to pay an annual use fee, in addition to the required license tax and fees. 2 The annual use fees
        range from $15-$25,3 and are distributed directly to the sponsoring organization or other entity as
        designated in statute.4
        In order to establish a specialty license plate, an organization must first receive approval by law. Once
        this approval has been granted, the organization has 60 days to submit the proposed art design for the
        specialty license plate to DHSMV.5 Within 120 days of the specialty license plate becoming law,
        DHSMV must establish a method to issue presale vouchers for the specialty license plate. The
        applicant for a specialty license plate pays a $5 processing fee6, a $2.50 service charge, a $.50 branch
        fee7, and the annual use fee.8 All other applicable fees are paid at the time of issuance of the specialty
        license plate.9
        After the presale vouchers are established, the organization has 24 months to obtain a minimum of
        3,000 voucher sales before manufacturing of the plate can begin. 10 If the minimum sales requirement
        has not been met by the end of the 24-month presale period, the specialty license plate is deauthorized
        and DHSMV must discontinue the development of the plate and issuance of the presale vouchers.
        Upon deauthorization of the license plate or if the plate has met the presale requirement but has not
        been issued, a purchaser of the license plate voucher may use the annual use fee paid as a credit
        towards any other specialty license plate or may apply for a refund. 11
        New specialty license plates that have been approved by law but are awaiting issuance will be issued
        in the order they appear in s. 320.08058, F.S., provided that they have met all statutory requirements,
        including the presale requirement. If the next listed specialty license plate has not met the presale
        requirement, DHSMV will proceed in the order provided in s. 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
        The number of specialty license plates issued cannot exceed 135. If the Legislature approves more
        than 135 specialty license plates, DHSMV cannot issue any new specialty license plates until a
        sufficient number of plates are discontinued in order to not exceed the limit. 13
1 Department of Highway Safety and Motor Vehicles, Agency Analysis of 2024 House Bill 105, p. 2 (Nov. 1, 2023).
2 S. 320.08056(2)(a), F.S.
3 S. 320.08056(3)(d), F.S. states that the annual use fee for any specialty license plate is $25, except if otherwise
specified in s. 320.08056(4), F.S.
4 S. 320.08058, F.S.
5 S. 320.08053(1), F.S.
6 The processing fee is prescribed in s. 320.08056, F.S.
7 The service charge and branch fee are prescribed in s. 320.04, F.S.
8 The annual use fee us prescribed in s. 320.08056, F.S.
9 S. 320.08053(2)(a), F.S.
10 Chapter 2022-189, Laws of Fla., extended the presale requirement by an additional 24 months for an approved
specialty license plate organization that, as of June 15, 2022, is in the presale period but had not recorded at least 3,000
voucher sales.
11 S. 320.08053(2)(b), F.S.
12 S. 320.08053(3)(a), F.S.
13 S. 320.08053(3)(b), F.S.
STORAGE NAME: h0105a.TMS                                                                                              PAGE: 2
DATE: 1/31/2024
        Except for collegiate license plates authorized by s. 320.08058(3), F.S., DHSMV must discontinue the
        issuance of an approved specialty license plate if the number of valid specialty license plate registrants
        falls below 3,000 plates for 12 consecutive months. A warning letter is mailed to the sponsoring
        organization following the first month in which the total number of valid specialty plate registrations falls
        below 3,000. For out-of-state college or university plates, this number is 4,000.14 This requirement does
        not apply to in-state collegiate license plates established under s. 320.08058(3), F.S., license plates of
        institutions in and entities of the State University System, specialty license plates that have statutory
        eligibility limitations for purchase, specialty license plates for which annual use fees are distributed by a
        foundation for student and teacher leadership programs and teacher recruitment and retention, or
        Florida professional sports team license plates established under s. 320.08058(9), F.S. 15
        DHSMV may discontinue the issuance of a specialty license plate and distribution of associated annual
        use fee proceeds if the organization no longer exists, stops providing services that are authorized to be
        funded from the annual use fee proceeds, or pursuant to an organizational recipient’s request. 16
        On January 1 of each year, DHSMV must discontinue the specialty license plate with the fewest
        number of plates in circulation, including specialty license plates exempt from the sales requirement. A
        warning letter is mailed to the organizations in the lowest ten percent of valid, active specialty license
        plate registrations as of December 1 of each year.17
        Use of Specialty License Plate Fees
        The annual use fees collected by an organization and any interest earned from those fees may not be
        used for commercial or for-profit activities, or general or administrative expenses, unless authorized by
        s. 320.08058, F.S.18 Further, the annual use fees and interest earned from those fees may not be used
        for the purpose of marketing to, or lobbying, entertaining, or rewarding an employee of a governmental
        agency that is responsible for the sale and distribution of specialty license plates, or any elected
        member or employee of the Legislature.19
        Annual use fees collected by an organization and any interest earned from those fees may be
        expended only in Florida, unless the annual use fees are derived from the sale of United States Armed
        Forces or veterans-related specialty license plates.20 Additionally, organizations receiving annual use
        fees must submit an annual audit or attestation document to DHSMV that proceeds were used in
        compliance with the applicable specialty license plate statutes. 21
        Aerospace Center for Excellence.
        According to their website, the Aerospace Center for Excellence, a 501(c)(3) nonprofit corporation, is
        dedicated to providing the next generation with experiences and opportunities in aviation to help those
        pursuing a career in a Science, Technology, Engineering and Mathematics (STEM) field. The center
        offers a range of year-round educational programs for all ages, including summer camps and field trip
        opportunities.22 The center also provides annual scholarships for students to pursue a private pilot
        certificate, advanced rating, industry certification, or college degree. 23
14 S. 320.08056(8)(a), F.S.
15 Id.
16 S. 320.08056(8)(b), F.S.
17 S. 320.08056(8)(f), F.S.
18 S. 320.08056(10)(a), F.S.
19 S. 320.08056(11), F.S.
20 S.320.08056 (10)(a), F.S.
21 S. 320.08062, F.S., Annual use fees may be used to pay for the cost of this required audit or report. See s.
320.08056(10)(a), F.S.
22 Aerospace Center for Excellence, About, https://aceedu.org/about/ (last visited Jan. 29, 2024).
23 Aerospace Center for Excellence, Scholarships, https://aceedu.org/scholarships/ (last visited Jan. 29, 2024).
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       The center is located in Polk County at the Lakeland Linder International Airport, and according to the
       Department of State, the Aerospace Center for Excellence is an active Florida not-for-profit corporation
       that has been active since November 1, 2000.24
       Effect of the Bill
       The bill creates the General Aviation 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
       “Support General Aviation” appearing at the bottom of the plate.
       The annual use fees from the sale of the plate are distributed to the Aerospace Center for Excellence.
       Up to 10 percent of the fees from the sale of the plate may be used for administrative costs. The center
       must use the remainder of the fees to fund scholarships for students in the state who are pursuing
       careers in the field of aviation.
       This license plate will be added to DHSMV’s presale voucher process, but the plate will only be placed
       into production once it meets the 3,000 minimum sales threshold26 and if the 135 plate cap is not
       reached. 27
       The bill has an effective date of October 1, 2024.
     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, 2024.
                           II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
     A. FISCAL IMPACT ON STATE GOVERNMENT:
       1. Revenues:
           None.
       2. Expenditures:
           DSHMV will need to update its procedures, forms, and website to incorporate this additional license
           plate. Additionally, programming will be required for DHSMV to accept presale vouchers for the
           license plate. According to DHSMV, this specialty license plate with one distribution will require
           approximately 216 hours of programming. This programming can be done using existing
           resources.28
     B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
       1. Revenues:
           None.
       2. Expenditures:
24 Aerospace Center for Excellence, Inc., Articles of Incorporation,
https://search.sunbiz.org/Inquiry/CorporationS earch/Convert TiffToP DF?storagePath= COR%5C2000% 5C1103%5 C70447
177.tif&documentNumber= N00000007283 (last visited Jan. 29, 2024).
25 S. 320.08056(3)(d), F.S.
26 S. 320.08053(2)(b), F.S.
27 S. 320.08053(3)(b), F.S.
28 DHSMV, supra note 1 at pp. 4-5.
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            None.
   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
         Once the license plate goes into production, the Aerospace Center for Excellence may see an increase
         in revenues associated with the sale of this license plate.
   D. FISCAL COMMENTS:
         None.
                                                III. 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 or authorize rulemaking.
   C. DRAFTING ISSUES OR OTHER COMMENTS:
         None.
                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   N/A
STORAGE NAME: h0105a.TMS                                                                              PAGE: 5
DATE: 1/31/2024