Bill Summary – FastDemocracy

HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     CS/HB 121 Specialty License Plates
SPONSOR(S): Transportation & Modals Subcommittee, Waldron
TIED BILLS:       IDEN./SIM. BILLS: SB 982
    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF
    1) Transportation & Modals Subcommittee                     16 Y, 0 N, As CS        Walker             Hinshelwood
    2) Infrastructure Strategies Committee
                                               SUMMARY ANALYSIS
As of October 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 Project Addiction: Reversing the Stigma 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
“Overdose Awareness” appearing at the bottom of the plate. The annual use fees from the sale of the plate
must be distributed to the Project Addiction: Reversing the Stigma, Inc.
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: h0121a.TMS
DATE: 1/31/2024
                                                     FULL ANALYSIS
                                             I. SUBSTANTIVE ANALYSIS
    A. EFFECT OF PROPOSED CHANGES:
        Current Situation
        Specialty License Plates
        As of October 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 121, p. 2 (Oct. 10, 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: h0121a.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
        Project Addiction: Reversing the Stigma, Inc.
        Project Addiction: Reversing the Stigma, Inc., is a Florida not-for-profit corporation registered with the
        Florida Department of State.22 According to the organization’s website, Project Addiction: Reversing the
        Stigma, Inc. spreads awareness of the Opioid Overdose Epidemic 23 and finds proactive ways to honor
        family members lost to substance use disorder (SUD) and mental illness. The mission of Project
        Addiction: Reversing the Stigma, Inc. is to empower the lives of those with SUD and mental illness
        through education, awareness, and support.24
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 Project Addiction: Reversing the Stigma, Inc., Articles of Incorporation,
https://search.sunbiz.org/Inquiry/CorporationS earch/Convert TiffToP DF?storagePath= COR%5C2021% 5C1006%5C70462
037.tif&documentNumber= N21000011775 (last visited Jan. 29, 2024).
23 From 1999-2021, nearly 645,000 people in the United States died from an overdose involving any opioid, including
prescription and illicit opioids. Centers for Disease Control and Prevention, Understanding the Opioid Overdose Epidemic,
https://www.cdc.gov/opioids/basics/epidemic.html (last visited Jan. 29, 2024).
24 Project Addiction: Reversing the Stigma, About Us, https://reversingthestigma.com/ (last visited Jan. 29, 2024).
STORAGE NAME: h0121a.TMS                                                                                          PAGE: 3
DATE: 1/31/2024
          Effect of the Bill
          The bill creates the Project Addiction: Reversing the Stigma License plate, with an annual use fee of
          $2525. The plate must bear DHSMV-approved colors and designs, with “Florida” appearing at the top of
          the plate and “Overdose Awareness” appearing at the bottom of the plate.
          The annual use fees from the sale of the plate must be distributed to Project Addiction: Reversing the
          Stigma, Inc. Up to 10 percent of such fees may be used for the promotion and marketing costs of the
          license plate. The remaining funds may be distributed with the approval of and accountability to the
          board of directors of Project Addiction: Reversing the Stigma, Inc., and must be used to promote and
          support awareness of and education about substance use disorder and mental illness.
          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:
              None.
      C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
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. 5-6.
STORAGE NAME: h0121a.TMS                                                                                   PAGE: 4
DATE: 1/31/2024
       Once the license plate goes into production, the Project Addiction: Reversing the Stigma, Inc. 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
On January 31, 2024, the Transportation & Modals Subcommittee considered one amendment, which was
adopted, and reported the bill favorably as a committee substitute. The amendment amends provisions relating
to the distribution and use of fees collected, including lowering the maximum administrative and marketing
costs from 18% to 10% and removing obsolete language.
The analysis is drafted to the committee substitute as approved by the Transportation & Modals
Subcommittee.
STORAGE NAME: h0121a.TMS                                                                               PAGE: 5
DATE: 1/31/2024