Bill Summary – FastDemocracy

HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 645 Specialty License Plates
SPONSOR(S): Berfield
TIED BILLS:       IDEN./SIM. BILLS: SB 244
    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF
    1) Transportation & Modals Subcommittee                     16 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 Clearwater Marine Aquarium 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 “Clearwater
Marine Aquarium” appearing at the bottom of the plate. The annual use fees from the sale of the plate are
distributed to Clearwater Marine Aquarium, 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: h0645a.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 Senate Bill 244, p. 2 (Nov. 3, 2024).
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: h0645a.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
       Clearwater Marine Aquarium, Inc.
       According to their website, Clearwater Marine Aquarium, Inc., a 501(c)(3) nonprofit corporation, is
       dedicated to marine mammal research and environmental conservation; marine life rescue,
       rehabilitation, and release; animal care; and environmental education. 22
       The aquarium is located in Clearwater, Florida; and, according to the Department of State, the
       Clearwater Aquarium, Inc. is an active Florida not-for-profit corporation that has been active since
       March 23, 1972.23
       Effect of the Bill
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 Clearwater Marine Aquarium, What We Do, https://mission.cmaquarium.org/what-we-do/ (last visited Jan. 29, 2024).
23 Clearwater Marine Aquarium, Inc., Articles of Incorporation,
https://search.sunbiz.org/Inquiry/CorporationS earch/Convert TiffToP DF?storagePath= COR%5C2014% 5C0716%5C62340
728.Tif&documentNumber=722979 (last visited Jan. 29, 2024).
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DATE: 1/31/2024
          The bill creates the Clearwater Marine Aquarium license plate, with an annual use fee of $2524. The
          plate must bear DHSMV-approved colors and designs, with “Florida” appearing at the top of the plate
          and “Clearwater Marine Aquarium” appearing at the bottom of the plate.
          The annual use fees from the sale of the plate are distributed to the Clearwater Marine Aquarium, Inc.
          Up to 10 percent of the fees from the sale of the plate may be used for the administration, promotion,
          and marketing of the plate. The center must use the remainder of the fees to fund its efforts to rescue,
          rehabilitate, and release marine life; provide environmental education; conduct research; and promote
          conservation strategies.
          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 threshold25 and if the 135 plate cap is not
          reached. 26
          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. The programming and implementation of the plate will
              cost the department $7,680 and can be done using existing resources.27
      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, the Clearwater Marine Aquarium, Inc. may see an
          increase in revenues associated with the sale of this license plate.
24   S. 320.08056(3)(d), F.S.
25   S. 320.08053(2)(b), F.S.
26   S. 320.08053(3)(b), F.S.
27   DHSMV,supra note 1 at pp. 4-5 (Nov. 3, 2023).
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   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: h0645a.TMS                                                                          PAGE: 5
DATE: 1/31/2024