Florida 2022 2022 Regular Session

Florida Senate Bill S0576 Analysis / Analysis

Filed 01/26/2022

                    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 Appropriations Subcommittee on Transportation, Tourism, and Economic 
Development  
BILL: CS/SB 576 
INTRODUCER:  Transportation Committee and Senator Gibson 
SUBJECT:  Fees/Registration Certificate Cards 
DATE: January 25, 2022 
 
 ANALYST STAFF DIRECTOR  REFERENCE  	ACTION 
1. Proctor Vickers TR Fav/CS 
2. Wells Hrdlicka ATD  Recommend: Favorable 
3.     AP  
 
Please see Section IX. for Additional Information: 
COMMITTEE SUBSTITUTE - Substantial Changes 
 
I. Summary: 
CS/SB 576 authorizes the collection of service charges for each original or duplicate issuance or 
transfer of a registration certificate card, similar to other transactions under current law. 
Specifically, the bill authorizes a mail service charge for delivery of a registration certificate card 
using U.S. mail service and a $2.50 registration service charge. 
 
SB 574, which this bill is linked to, requires the application form for motor vehicle registration 
and renewal of registration to 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. 
 
SB 574 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. 
 
Because this bill authorizes a new state fee, it will require a two-thirds vote of each house in 
order to pass. 
 
This bill will take effect on the same date that SB 574 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
 
 
Registration Service Charge 
The DHSMV collects a registration 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 registration 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
 
 
Mail Service Charge 
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. 
                                                
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 
 
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 
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: 
Section 1 of the bill amends s. 320.031, F.S., as amended by SB 574, to authorize the collection 
of a mail service charge for delivery of a registration certificate card by U.S. mail service. As 
provided under current law, the amount of a mail service charge must be the actual postage 
required, rounded to the nearest 5 cents, plus a 25 cent handling charge.  
 
Section 2 of the bill amends s. 320.04, F.S., to authorize the collection of a service charge of 
$2.50 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, 
similar to other fees accruing to those offices. This service charge of $2.50 is the same fee 
currently charged for motor vehicle registration certificates.  
 
Section 3 of the bill provides that the bill will take effect on the same date that SB 574 or similar 
legislation takes effect, if such legislation is adopted in the same legislative session or an 
extension thereof and becomes a law. SB 574 is effective July 1, 2022. 
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: 
Article VII, s. 19, of the Florida Constitution requires that a new state tax or fee, as well 
as an increased state tax or fee, must be approved by two-thirds of the membership of 
each house of the Legislature and must be contained in a separate bill that contains no 
other subject. Article VII, s. 19(d)(1), of the Florida Constitution defines “fee” to mean 
“any charge or payment required by law, including any fee for service, fee or cost for 
licenses, and charge for service.” 
 
                                                
9
 Section 320.031(2), F.S.  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 authorizes the DHSMV and tax collectors to, at the request of the applicant, 
use U.S. mail service to deliver a registration certificate card. Current law already 
authorizes the use of U.S. mail service for delivery of documents and to collect a mail 
service charge. 
E. Other Constitutional Issues: 
None identified. 
V. Fiscal Impact Statement: 
A. Tax/Fee Issues: 
The bill provides that 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, similar to the fee currently charged for motor 
vehicle registration certificates. 
 
The Revenue Estimating Conference has not yet met to estimate an impact of this bill. 
B. Private Sector Impact: 
Applicants who choose to receive a registration certificate card will be required to pay a 
registration service charge 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. The DHSMV and tax collectors will experience costs 
related to the issuance, renewal, or transfer of registration certificate cards and their 
delivery. 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 authorized by the bill. The collection 
of these charges will have an indeterminate positive fiscal impact to the DHSMV and tax 
collectors who process a registration certificate card requests.  BILL: CS/SB 576   	Page 5 
 
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 Substantial 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 SB 574 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.