Florida 2022 2022 Regular Session

Florida Senate Bill S0576 Analysis / Analysis

Filed 11/29/2021

                    The Florida Senate 
BILL ANALYSIS AND FISCAL IMPACT STATEMENT 
(This document is based on the provisions contained in the legislation as of the latest date listed below.) 
Prepared By: The Professional Staff of the Committee on Transportation  
 
BILL: SB 576 
INTRODUCER:  Senator Gibson 
SUBJECT:  Fees/Registration Certificate Cards 
DATE: November 30, 2021 
 
 ANALYST STAFF DIRECTOR  REFERENCE  	ACTION 
1. Proctor Vickers TR Pre-meeting 
2.     ATD   
3.     AP  
 
I. Summary: 
SB 576 authorizes the collection of a mail service charge for delivery of a registration certificate 
card. The collected mail service charge must be deposited in the Highway Safety Operating Trust 
Fund. 
 
The bill also provides that a registration certificate card application may be subject to a service 
charge of $2.50. This service charge is retained by the Department of Highway Safety and 
Motors (DHSMV) or the tax collector, depending on entity processing the transaction.   
 
SB 574 (2022), which this bill is linked to, requires the application form for motor vehicle 
registration and renewal of registration must include language permitting an applicant to request 
a registration certificate card. The bill also amends several statutes to allow for a registration 
certificate card to be used in place of a motor vehicle registration certificate. 
 
The bill may have an indeterminate negative fiscal impact to the DHSMV and tax collectors, 
which may be offset by the collection of a mail service charge and a $2.50 registration service 
charge in connection with the issuance of each registration certificate card. Please see Section V 
Fiscal Impact Statement for additional information. 
 
The bill will take effect on the same date that SB 574 (2022) or similar legislation takes effect, if 
such legislation is adopted in the same legislative session or an extension thereof and becomes a 
law. 
REVISED:   BILL: SB 576   	Page 2 
 
II. Present Situation: 
Motor Vehicle Registration Fees 
Initial vehicle registrations require a $225 initial registration fee, which must be paid when the 
owner does not have a license plate or record of a license plate registered in their name for a 
vehicle they previously owned in Florida, to transfer to a newly acquired vehicle. The DHSMV 
must deposit 85.7 percent of the fee into the State Transportation Trust Fund and 14.3 percent of 
the fee into the Highway Safety Operating Trust Fund.
1
 An initial registration must take place in 
person at a local service center at the time of titling. 
 
A vehicle owner may renew their vehicle registration for a period of one or two years and may 
renew up to three months in advance of the registration expiration.
2
 Vehicle registrations expire 
at midnight on the first owner’s birth date unless the owner is a business. Examples of the annual 
renewal fee include: automobiles up to 2,499 pounds are $14.50, automobiles 2,500 - 3,499 
pounds are $22.50, automobiles 3,500 or more pounds are $32.50, and trucks up to 1,999 pounds 
are $14.50.
3
 
 
The DHSMV collects a service charge of $2.50 for each application that is handled in connection 
with transfer or duplicate issuance of a registration certificate. The service charge is retained by 
the DHSMV or by the tax collector, as the case may be, as other fees accruing to those offices.
4
 
The tax collector may impose an additional service charge of up to 50 cents on the transfer or 
duplicate issuance of a registration certificate if the transaction occurs at a tax collector’s branch 
office.
5
 In addition, if a tax collector elects to exercise their authority to contract with a license 
plate agent, the tax collector may determine additional service charges to be collected by 
privately owned license plate agents approved by the tax collector. Additional service charges 
must be fully itemized and disclosed to the person paying the service charges to the license plate 
agent. The license plate agent must enter into a contract with the tax collector regarding the 
disclosure of additional service charges.
6
 
 
The service charges collected by the DHSMV on all applications handled directly from its office 
and any fees returned to it by the tax collector, must be paid into the Highway Safety Operating 
Trust Fund.
7
 
 
The DHSMV and tax collectors may at the request of the applicant use United States mail 
service to deliver registration certificates and renewals.
8
 A mail service charge may be collected 
for each registration certificate and validation sticker mailed by the DHSMV or tax collector. 
Each registration certificate and validation sticker must be mailed by first-class mail unless 
otherwise requested by the applicant. The amount of the mail service charge is the actual postage 
                                                
1
 Section 320.072, F.S. 
2
 Section 320.071(1)(a), F.S. 
3
 Section 320.08, F.S. 
4
 Section 320.04(1)(a), F.S. 
5
 Section 320.04(1)(c), F.S. 
6
 Section 320.04(3), F.S. 
7
 Section 320.04(2), F.S. 
8
 Section 320.031(1), F.S.  BILL: SB 576   	Page 3 
 
required, rounded to the nearest 5 cents, plus a 25 cent handling charge. The mail service charge 
is in addition to any other service charge and must be deposited into the Highway Safety 
Operating Trust Fund.
9
 
III. Effect of Proposed Changes: 
The bill amends s. 320.031, F.S., to authorize the DHSMV to use the U.S. mail service to deliver 
a registration certificate card and to collect a mail service charge for a mailed registration 
certificate card. The amount of the mail service charge must be the actual postage required, 
rounded to the nearest 5 cents, plus a 25 cent handling charge. The collected mail service charge 
must be deposited in the Highway Safety Operating Trust Fund. 
 
The bill amends s. 320.04, F.S., to provide that an application for a registration certificate card is 
subject to a service charge of $2.50. However, SB 574 (2022) only provides for the application 
form for motor vehicle registration and renewal of registration to include language permitting an 
applicant to request a registration certificate card, and not a separate application for a registration 
certificate card. As a result, it is unclear if an additional $2.50 could be charged for a registration 
certificate card since a separate application is not being submitted. 
 
If it is determined that the $2.50 service charge applies, then the bill directs the service charge to 
be retained by the DHSMV or by the tax collector, as the case may be, as other fees accruing to 
those offices. 
 
The bill will take effect on the same date that SB 574 (2022) or similar legislation takes effect, if 
such legislation is adopted in the same legislative session or an extension thereof and becomes a 
law. 
IV. Constitutional Issues: 
A. Municipality/County Mandates Restrictions: 
None. 
B. Public Records/Open Meetings Issues: 
None. 
C. Trust Funds Restrictions: 
None. 
D. State Tax or Fee Increases: 
Under the 2018 amendment to the Florida Constitution, Article VII, Section 19 requires 
“a supermajority vote” of two-thirds of the membership of each house to pass legislation 
which will impose or authorize a new state tax or fee.
10
 A “fee” is defined as “any charge 
                                                
9
 Section 320.031(2), F.S. 
10
 FLA. CONST. art. VII, s. 19(a).  BILL: SB 576   	Page 4 
 
or payment required by law, including any fee for service, fee or cost for licenses, and 
charge for service.”
11
 A state tax or fee imposed or authorized must be contained in a 
separate bill that contains no other subject.  
 
The $2.50 fee for the registration certificate card may be a new state fee subject to the 
constitutional requirements. 
 
The bill also provides the DHSMV and tax collectors may at the request of the applicant 
use United States mail service to deliver registration certificate cards. Current law already 
authorizes the use of U.S. mail service for delivery of documents and to collect a mail 
service charge. The amount of the mail service charge must be the actual postage 
required, rounded to the nearest 5 cents, plus a 25 cent handling charge to be paid by the 
applicant.
12
 
E. Other Constitutional Issues: 
None identified. 
V. Fiscal Impact Statement: 
A. Tax/Fee Issues: 
The bill provides that new registration certificate cards are subject to the existing mail 
service charge of actual postage required, rounded to the nearest 5 cents, plus a 25 cent 
handling charge and registration service charge of $2.50. 
B. Private Sector Impact: 
Applicants who choose to receive a registration certificate card may be required to pay a 
fee of $2.50. 
 
Applicants requesting to use United States mail service to deliver a registration certificate 
card must pay the actual postage required, rounded to the nearest 5 cents, plus a 25 cent 
handling charge. 
C. Government Sector Impact: 
The bill may have an indeterminate negative fiscal impact to the DHSMV. An accurate 
estimate may not be available from the DHSMV until SB 574 (2022) clarifies the size 
and characteristics of the registration certificate card to more fully understand the 
materials, equipment needed, and programming requirements for the Florida Real-Time 
Vehicle Information System. 
 
The bill authorizes the collection of a mail service charge for delivery of a registration 
certificate card of actual postage required, rounded to the nearest 5 cents, plus a 25 cent 
                                                
11
 FLA. CONST. art. VII, s. 19(d)(1). 
12
 Supra FN 10.  BILL: SB 576   	Page 5 
 
handling charge. The collected mail service charge may have an insignificant positive 
fiscal impact to the DHSMV and tax collectors. 
 
For an original issuance, duplicate issuance, or transfer of a registration certificate card a 
$2.50 fee may be determined to be required, and if so, retained by the DHSMV or by the 
tax collector, as the case may be, as other fees accruing to those offices. This may result 
in an indeterminate positive fiscal impact to the DHSMV and tax collectors who process 
a registration certificate card request. 
VI. Technical Deficiencies: 
None. 
VII. Related Issues: 
The bill amends s. 320.04, F.S., to include a registration certificate card application to be subject 
to a service charge of $2.50. However, SB 574 (2022) only provides for the application form for 
motor vehicle registration and renewal of registration to include language permitting an applicant 
to request a registration certificate card, and not a separate application for a registration 
certificate card. This makes it unclear if an additional $2.50 could be charged for a registration 
certificate card since a separate application is not being submitted. 
VIII. Statutes Affected: 
This bill substantially amends the following sections of the Florida Statutes: 320.031 and 320.04. 
IX. Additional Information: 
A. Committee Substitute – Statement of Changes: 
(Summarizing differences between the Committee Substitute and the prior version of the bill.) 
None. 
B. Amendments: 
None. 
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.