This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1593.LAV
DATE: 1/31/2022
HOUSE OF REPRESENTATIVES LOCAL BILL STAFF ANALYSIS
BILL #: HB 1593 Ocean Highway and Port Authority, Nassau County
SPONSOR(S): Byrd
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration & Veterans Affairs
Subcommittee
Darden Miller
2) Ways & Means Committee
3) State Affairs Committee
SUMMARY ANALYSIS
The Ocean Highway and Port Authority (Authority) is an independent special district in Nassau County
responsible for managing operations at the Port of Fernandina. The Authority has a contract with Worldwide
Terminals Fernandina, LLC, to provide marketing, terminal handling, business administration, and stevedoring
services at the port. The port processed 366,849 tons of cargo in 2021.
The bill provides that if Authority-owned property becomes subject to ad valorem taxation resulting from its use
by a corporation or other private entity for a private purpose, the responsibility for paying the ad valorem tax
resulting from the private use remains with the entity and may not be shifted to the Authority.
The bill clarifies the Authority’s exemption from the need to obtain licenses, permits, and other authorizations
from counties, municipalities, or political subdivisions of the state only applies to development or improvement
of Authority facilities. The bill requires all facilities developed by the Authority to comply with the:
Florida Building Code;
Florida Fire Protection Code;
Flood plain management ordinances of the jurisdiction in which the development is occurring;
Terms of applicable state or federal grants; and
City of Fernandina Beach’s Historic District requirements as stated in the city’s land development code,
if the development is of an Authority-owned property located in area designated as the City of
Fernandina Beach’s Downtown Historic District as of 2021.
The bill prohibits the further expansion of the Port of Fernandina and other Authority-owned facilities in the City
of Fernandina Beach’s Downtown Historic District and states that development may not be permitted unless it
conforms to the comprehensive plan of each local government that has jurisdiction over the property.
According to the economic impact statement, the bill is not projected to affect the Authority’s revenues or
expenses. STORAGE NAME: h1593.LAV PAGE: 2
DATE: 1/31/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Ocean Highway and Port Authority
The Ocean Highway and Port Authority (Authority) is an independent special district created by special
act of the Florida Legislature in 1941.
1
The Authority is responsible for the operation of the Port of
Fernandina in Nassau County. The Authority’s charter, including the initial 1941 charter and all
subsequent special laws concerning the district, were codified in 2005.
2
The Authority has a contract
with Worldwide Terminals Fernandina, LLC, to provide marketing, terminal handling, business
administration, and stevedoring services at the port.
3
The port processed 366,849 tons of cargo in
2021.
4
The Authority is governed by a five-member Board of Port Commissioners,
5
who are elected in partisan
elections to four-year terms from single-member districts which correspond to districts for the Nassau
County Board of County Commissioners. Each commissioner must be a resident of the district he or
she represents.
To operate the port effectively, the Authority is authorized, in part, to:
Purchase, construct, and maintain port facilities, including docks, warehouses, shipyards, and
railways;
6
Improve and develop Fernandina Harbor and other waterways in Nassau County;
7
Fix rates for use of port facilities;
8
Construct and maintain infrastructure necessary to operate the port;
9
and
Issue bonds.
10
The Authority has total annual revenues of approximately $680,000 derived from annuals fees, port
security revenue, and rental income.
11
The Authority is not required to obtain certificates of convenience or necessity, franchises, licenses,
permits, or other authorizations from county and municipal governments to exercise any of the powers
granted by its charter.
12
The charter provides that all income and revenues of the Authority are exempt from state and local
taxes.
13
This exemption also applies to bonds, certificates, and other obligations issued by the
Authority.
1
Ch. 41-21418, Laws of Fla.
2
Ch. 2005-293, Laws of Fla.
3
Ocean and Highway Port Auth., SeaPort of Fernandina, http://www.portoffernandina.org/port-operator (last visited Jan. 27, 2022).
4
Ocean and Highway Port Auth., Annual Tonnage Report,
https://www.portoffernandina.org/_files/ugd/e5fb15_5b5f71ebe6a744c892043d57d71d76ce.pdf (last visited Jan. 27, 2022).
5
Ch. 2005-293, s. 3(3), Laws of Fla.
6
Ch. 2005-293, s. 3(7)(2), Laws of Fla.
7
Ch. 2005-293, s. 3(7)(3), Laws of Fla.
8
Ch. 2005-293, s. 3(7)(4), Laws of Fla.
9
Ch. 2005-293, s. 3(7)(6), Laws of Fla.
10
Ch. 2005-293, s. 3(7)(9), Laws of Fla.
11
Ocean and Highway Port Authority, 2019-2020 Budget, http://www.portoffernandina.org/annual-budget (last visited Jan. 27, 2022).
12
Ch. 2005-293, s. 3(12), Laws of Fla.
13
Ch. 2005-293, s. 3(10), Laws of Fla. STORAGE NAME: h1593.LAV PAGE: 3
DATE: 1/31/2022
Governmental Property Tax Exemption
Property owned by special districts is exempt from ad valorem taxation as long it is being used for a
governmental, municipal, or public purpose, except as otherwise provided by law.
14
If a special district
leases its property to a non-governmental lessee, the property is no longer exempt from ad valorem
taxation except where the lessee uses the property for literary, scientific, religious, or charitable
purposes.
15
The ad valorem tax due is assessed directly against the lessee and nonpayment does not
create a lien against the property.
16
Effect of Proposed Changes
The bill provides that if Authority-owned property becomes subject to ad valorem taxation due to its use
by a corporation or other private entity for a private purpose, that private entity is responsible for paying
the ad valorem taxes due and may not shift this burden to the Authority.
The bill clarifies the Authority’s exemption from the need to obtain licenses, permits, and other
authorizations from counties, municipalities, or political subdivisions of the state only applies to
development or improvement of Authority facilities. The bill requires all facilities developed by the
Authority to comply with the:
Florida Building Code;
Florida Fire Protection Code;
Flood plain management ordinances of the jurisdiction in which the development is occurring;
Terms of applicable state or federal grants; and
City of Fernandina Beach’s Historic District requirements as stated in the city’s land
development code, if the development is of an Authority-owned property located in area
designated as the City of Fernandina Beach’s Downtown Historic District as of 2021.
The bill prohibits the further expansion of the Port of Fernandina and other Authority-owned facilities in
the City of Fernandina Beach’s Downtown Historic District and states that development may not be
permitted unless it conforms to the comprehensive plan of each local government that has jurisdiction
over the property.
B. SECTION DIRECTORY:
Section 1: Amends ch. 2005-293, Laws of Florida, to clarify the application of a tax exemption and
the effect of local regulations on the Ocean Highway and Port Authority.
Section 2: Provides that the act shall take effect upon becoming a law.
II. NOTICE/REFERENDUM AND OTHER REQUIREMENTS
A. NOTICE PUBLISHED? Yes [x] No []
IF YES, WHEN? November 10, 2021
WHERE? The News-Leader, a weekly newspaper of general circulation in Nassau County,
Florida.
B. REFERENDUM(S) REQUIRED? Yes [] No [x]
IF YES, WHEN?
14
S. 196.199(1)(c), F.S.
15
S. 196.199(2), F.S.
16
See s. 196.199(8)(a), F.S. See also Hillsborough Cnt’y Aviation Auth. v. Walden, 201 So. 2d 193, 195 (Fla. 1968) and Walden v.
Hillsborough Cnt’y Aviation Auth., 375 So. 2d 283, 285 (Fla. 1979). STORAGE NAME: h1593.LAV PAGE: 4
DATE: 1/31/2022
C. LOCAL BILL CERTIFICATION FILED? Yes [x] No []
D. ECONOMIC IMPACT STATEMENT FILED? Yes [x] No []
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
None.
B. RULE-MAKING AUTHORITY:
The bill neither provides authority for nor requires rulemaking by executive branch agencies.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES