Florida 2022 2022 Regular Session

Florida Senate Bill S0576 Analysis / Analysis

Filed 12/01/2021

                    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: CS/SB 576 
INTRODUCER:  Transportation Committee and Senator Gibson 
SUBJECT:  Fees/Registration Certificate Cards 
DATE: December 1, 2021 
 
 ANALYST STAFF DIRECTOR  REFERENCE  	ACTION 
1. Proctor Vickers TR Favorable/CS 
2.     ATD   
3.     AP  
 
Please see Section IX. for Additional Information: 
COMMITTEE SUBSTITUTE - Substantial Changes 
 
I. Summary: 
CS/SB 576 authorizes the collection of a mail service charge for delivery of a registration 
certificate card and requires a service charge of $2.50 to be imposed on each original or duplicate 
issuance or transfer of a registration certificate card. This service charge is retained by the 
Department of Highway Safety and Motors (DHSMV) or the tax collector, depending on entity 
processing the transaction. 
 
CS/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 CS/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: CS/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: CS/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 a service charge of $2.50 will be imposed on 
each original or duplicate issuance or transfer of a registration certificate card. The service 
charge will 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 CS/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 
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.  
 
                                                
9
 Section 320.031(2), F.S. 
10
 FLA. CONST. art. VII, s. 19(a). 
11
 FLA. CONST. art. VII, s. 19(d)(1).  BILL: CS/SB 576   	Page 4 
 
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 U.S. 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, should an applicant request the registration service card be mailed, of 
actual postage required, rounded to the nearest 5 cents, plus a 25 cent handling charge 
and a registration service charge of $2.50. 
B. Private Sector Impact: 
Applicants who choose to receive a registration certificate card will be required to pay a 
fee of $2.50. 
 
Applicants requesting to use U.S. 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 associated with 
the materials and equipment needed, and programming requirements for the Florida Real-
Time Vehicle Information System. However, any negative fiscal impact may be offset by 
the collection of a mail service charge for delivery and a service charge for the original 
issuance, duplicate issuance, or transfer of a registration certificate card. 
 
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 
handling charge. The collected mail service charge may have an insignificant positive 
fiscal impact to the DHSMV and tax collectors. 
 
                                                
12
 Supra FN 10.  BILL: CS/SB 576   	Page 5 
 
For an original issuance, duplicate issuance, or transfer of a registration certificate card a 
$2.50 service charge will be required and be retained by the DHSMV or by the tax 
collector, as the case may be, as other fees accruing to those offices. This may have 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: 
None. 
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.) 
CS by Transportation on December 1, 2021: 
Links the bill to CS/SB 574 (2022) and clarifies that a $2.50 service charge is imposed on 
each original or duplicate issuance or transfer of a registration certificate card. 
B. Amendments: 
None. 
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.