This document does not reflect the intent or official position of the bill sponsor or House of Representatives. STORAGE NAME: h0247z.DOCX DATE: 3/13/2024 HOUSE OF REPRESENTATIVES STAFF FINAL BILL ANALYSIS BILL #: CS/CS/HB 247 Services Provided by the Department of Highway Safety and Motor Vehicles or Its Agents SPONSOR(S): Infrastructure Strategies Committee and Transportation & Modals Subcommittee, Maney and others TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 736 FINAL HOUSE FLOOR ACTION: 113 Y’s 0 N’s GOVERNOR’S ACTION: Pending SUMMARY ANALYSIS CS/CS/HB 247 passed the House on March 6, 2024, as CS/CS/SB 736 as amended. The bill includes portions of CS/CS/HB 817. The bill addresses matters related to the Department of Highway Safety and Motor Vehicles (DHSMV) or its agents. The bill: Revises the application and affidavit requirements for the transfer of ownership of a motor vehicle or mobile home if the previous owner died testate. Provides that no additional fee can be charged by DHSMV or a tax collector for the reissuance of a certificate of title that is lost in transit and not delivered. Requires tax collectors in certain counties to appoint a general lines insurance agency that writes motor vehicle insurance as its agent, upon petition by the agent in charge of the general lines agency, for the purposes of issuing registration certificates, registration license plates, validation stickers, and mobile home stickers to applicants, excluding issuance of registration or trip permits. Allows permanent motor vehicle registration decals for rental trucks that weigh under 15,000 pounds. Authorizes trailers, at DHSMV’s discretion, to be issued a license plate with reduced dimensions. Provides that a disabled veteran who qualifies for a “DV” license plate may, in lieu of the free “DV” license plate, be issued one of certain military license plates or a specialty license plate and receive a cost savings on the plate of their choosing. Adds the following two cases wherein DHSMV may design, issue, and regulate the use of temporary tags: o The existing owner of a vehicle has submitted an application to transfer a valid out-of-state title that is subject to a lien; and o An active-duty military servicemember who has a valid Florida driver license provides evidence satisfactory to the department that he or she is deployed outside this state. Repeals the requirement that requests for purchase of temporary tags to DHSMV or its agents must be made, where applicable, on letterhead stationery and notarized. The bill appears to have a significant fiscal impact on state government expenditures and a likely positive but indeterminate impact on the private sector due to the streamlining of administrative processes. See Fiscal Analysis Section. Subject to the Governor’s veto powers, the effective date of this bill is July 1, 2024, except as otherwise provided. STORAGE NAME: h0247z.DOCX PAGE: 2 DATE: 3/13/2024 I. SUBSTANTIVE INFORMATION A. EFFECT OF CHANGES: Certificate of Title Transfer or Ownership Current Situation Florida law provides that in the case of transfer of ownership of a motor vehicle or mobile home, such as upon inheritance, the Department of Highway Safety and Motor Vehicles (DHSMV) must receive satisfactory proof of ownership and right of possession to such motor vehicle or mobile home, and payment of required certificate of title application fee, before DHSMV can issue to the applicant a certificate of title. 1 If the previous owner of a motor vehicle or mobile home died intestate, 2 the application for a certificate of title made by an heir does not have to contain an order of a probate court, if the applicant files with DHSMV an affidavit that the estate is not indebted and any surviving spouses and heirs have amicably agreed among themselves upon a division of the estate. 3 If the previous owner died testate, 4 the application must be accompanied by a certified copy of the will, if probated, and an affidavit that the estate is solvent with sufficient assets. If the will is not probated, the application must be accompanied by a sworn copy of the will and an affidavit that the estate is not indebted. 5 Effect of the Bill The bill provides that if the previous owner died testate and the application for a certificate of title is made by, and accompanied by an affidavit attested by, a Florida-licensed attorney in good standing with The Florida Bar, such affidavit establishes a presumption of ownership, absent information received on the contrary, and right of possession to the motor vehicle or mobile home. The affidavit must set forth the rightful heir or heirs, and the attorney must attest to their lawful entitlement to the rights of ownership and possession of the motor vehicle or mobile home. In this case, the application for certificate of title does not have to be accompanied by a copy of the will or other testamentary instrument. Lost or Destroyed Certificate of Title Current Situation Under current law, if a certificate of title is lost or destroyed, the owner of the motor vehicle or mobile home, or the holder of a lien, must apply to DHSMV for a duplicate copy. 6 Upon receiving an application signed and sworn to by the applicant, and accompanied by the required fee, 7 DHSMV must issue a duplicate copy of the certificate of title. 8 If an original, duplicate, or corrected certificate of title issued by DHSMV is lost in transit and is not delivered to the addressee, the owner or holder has 180 days from the date of issuance of the title to apply to DHSMV for the reissuance of the certificate of title without an additional fee. 9 Florida law also 1 S. 319.28(1)(a), F.S. 2 “Intestate” means “[o]ne who has died without a valid will.” BLACK’S LAW DICTIONARY 840 (8th ed. 2004). 3 S. 319.28(1)(b), F.S. 4 “Testate” means “[h]aving left a will at death.” BLACK’S LAW DICTIONARY 1 514 (8th ed. 2004). 5 S. 319.28(1)(b), F.S. 6 S. 319.29(1), F.S. 7 Section 319.32, F.S., provides that the cost for each duplicate copy of a certificate of title is $70 with a service charge of $4.25. 8 S. 319.29(1), F.S. 9 S. 319.29(3), F.S. STORAGE NAME: h0247z.DOCX PAGE: 3 DATE: 3/13/2024 authorizes tax collectors to process certificate of title applications and collect the associated fees. 10 However, current law is not clear that tax collectors must issue a title lost in transit without charging an additional fee. Effect of the Bill The bill clarifies that an additional fee may not be charged by DHSMV or the tax collector for the reissuance of a certificate of title that was lost in transit and not delivered. Insurance Agencies as Agents for Tax Collectors Current Situation Tax Collectors as Authorized Agents of DHSMV County tax collectors are DHSMV’s authorized agents for titling and registering motor vehicles, motor homes, and vessels. 11 When processing these transactions, tax collectors charge and collect fees specified in state law, 12 which are remitted to the state. However, chapters 319, 320, and 328, F.S., also require tax collectors to collect and retain certain statutorily prescribed service fees and charges. 13 Currently, 65 counties have elected tax collectors who are constitutional officers, while Broward and Miami-Dade Counties have appointed tax collectors under each county’s charter government. However, pursuant to Florida’s constitution, these counties will have elected tax collectors effective January 7, 2025. 14 Each tax collector is authorized to enter into contracts with private, third-party license plate agents (LPAs) for the titling and registration of motor vehicles, mobile homes, and vessels. LPAs are granted online computer access to DHSMV’s systems and are supplied with title paper, registration decals, and license plates by the tax collector. Seventeen counties have, or until recently had, contracts with LPAs to operate 57 offices, 15 primarily in Broward and Miami-Dade Counties, to perform title and registration services for motor vehicles, mobile homes, and vessels. In counties with elected tax collectors, LPAs only charge the fees for those services as expressly authorized in statute. In these counties, the LPAs may retain all or a portion of the statutorily authorized service fee that tax collectors are allowed to collect for motor vehicle, mobile home, and vessel title and registration services, as provided in the contracts between the LPA and the tax collector. 16 The LPAs in Broward and Miami-Dade Counties charge fees 17 for titling and registering motor vehicles, mobile homes, and vessels in addition to the statutory fees authorized in chapters 319, 320, and 328, F.S. The additional fees levied in Broward and Miami-Dade Counties are levied pursuant to county ordinance and are retained by the LPAs. 18 DHSMV has transitioned its driver license services from DHSMV-owned facilities to elected county tax collectors. Florida law required DHSMV to completely transition all driver license issuance services to 10 S. 319.32(2)(b), F.S. 11 Ch. 320 and 328, F.S. County tax collectors are expressly made agents of the state with respect to motor vehicle registration in s. 320.03(1), F.S., and with respect to vessel registration in s. 328.73(1), F.S. 12 See s. 319.32, F.S., for motor vehicle title fees; s. 320.03, F.S., for motor vehicle registration fees; s. 320.04, F.S., as to motor vehicle service charges; and s. 328.72, F.S., as to vessel registration fees. 13 DHSMV, Agency Analysis of 2021 SB 342, p 2. (Jan. 14, 2021). 14 Id. See also Art. VIII, s. 1(d), Fla. Const. 15 Email from Jennifer Langston, Chief of Staff, Florida Highway Safety and Motor Vehicles, Re: [EXT] RE: HB 817 (Jan. 11, 2024). 16 DHSMV, supra note 13 at p. 2. 17 Formerly the LPAs in Volusia County charged fees. An elected county tax collector took office on January 5, 2021, and the LPA offices closed by February 4, 2021. Id. 18 Id. STORAGE NAME: h0247z.DOCX PAGE: 4 DATE: 3/13/2024 tax collectors who are constitutional officers under section 1(d), Article VIII of the State Constitution. This transition was completed on June 30, 2015. The transition of services to appointed charter county tax collectors may occur on a limited basis as directed by DHSMV. 19 Driver License Issuance Systems DHSMV’s Florida Driver License Information System (FDLIS) is the legacy driver license issuance system that will be completely replaced by 2025 with the newly launched Online Registration and Identity Operating Network (ORION) database application. 20 ORION will be used to conduct all driver license and identification card issuances. ORION provides real-time access to extensive information on every driver, including driving history, vehicle insurance information, and personal identity information and documents. FDLIS/ORION is installed in 195 tax collector offices in 63 counties in Florida and in the 15 driver license offices DHSMV operates in Broward and Miami-Dade Counties. Only DHSMV and elected tax collectors have access to FDLIS/ORION. Access to these systems is governed by individual memoranda of understanding (MOUs) between DHSMV and each tax collector. County tax collectors are allowed to charge a $6.25 service fee for providing driver license services. 21 Division of Insurance Agent and Agency Services The Department of Financial Services (DFS) Division of Insurance Agent and Agency Services is responsible for the licensing and regulation of insurance agents, adjusters, insurance agencies, as well as related personnel and business entities. 22 No person may be, act as, or advertise, or hold himself or herself out to be an insurance agent, insurance adjuster, or customer representative unless he or she is currently licensed by DFS and appointed by an appropriate appointing entity or person. 23 There are several types of insurance representatives. These include: General lines agents, Life insurance agents, Health insurance agents, Title insurance agents, Personal lines agents, and Unaffiliated insurance agents. 24 General Lines Agent A general lines agent 25 is one who sells the following lines of insurance: property; 26 casualty, 27 including commercial liability insurance underwritten by a risk retention group, a commercial self-insurance fund, 28 or a workers’ compensation self-insurance fund; 29 surety; 30 health; 31 and marine. 32 The general 19 S. 322.02(1), F.S. 20 DHSMV, Agency Analysis of 2024 HB 817, p 7. (Dec. 22, 2023). See also s. 322.135(1)(c), F.S. 21 DHSMV, Agency Analysis of 2021 House Bill 613, p. 5-6. (Mar. 5, 2021). 22 Ch. 626, parts I, II, III, IV, V, VI, VIII, IX, and XIII, F.S. 23 S. 626.112, F.S. 24 S. 626.015, F.S. 25 S. 626.015(5), F.S. 26 S. 624.604, F.S. 27 S. 624.605, F.S. 28 As defined in s. 624.462, F.S. 29 Pursuant to s. 624.4621, F.S. 30 S. 626.606, F.S. 31 Ss. 624.603 and 627.6482, F.S. 32 S. 624.607, F.S. STORAGE NAME: h0247z.DOCX PAGE: 5 DATE: 3/13/2024 lines agent may only transact health insurance for an insurer that the general lines agent also represents for property and casualty insurance. If the general lines agent wishes to represent health insurers that are not also property and casualty insurers, he or she must be licensed as a health insurance agent. 33 Motor vehicle insurance is a type of casualty insurance. 34 Effect of the Bill The bill requires that, in political subdivisions with a population of 1.9 million or greater, 35 upon petition by the agent in charge of a general lines agency and appointed to write motor vehicle insurance, the tax collector must appoint such agency as an agent for the tax collector for purposes of issuing: Registration certificates; Registration license plates; Validation stickers; and Mobile home stickers. Such general lines agency appointed as an agent for a tax collector is not authorized to issue registration or trip permits pursuant to s. 320.0715, F.S. A general lines agency appointed as an agent for a tax collector: Must provide a performance bond of $2 million to DHSMV; Must provide audited financial statements, from a certified public accountant licensed to practice in this state, for each of the previous 2 years demonstrating that the agency has produced policy premiums in excess of $500 million in each of the previous 2 years; May not offer such services at more than five locations in each county where the agency has a branch office; and Is subject to all provisions of law as though such agent is a private tag agency or agent, except where the context clearly indicates otherwise. DHSMV is authorized to adopt rules to administer this provision, including, but not limited to, rules establishing information that must be contained in a petition to offer services under this provision and information that must be contained in the audited financial statements and enforcement authority for noncompliance. Permanent Registration Decals for Small Rental Trucks Current Situation Florida law provides that registration license plates must be issued for a 10-year period. At the end of the 10-year period, upon renewal, the plate must be replaced. With the issuance of a license plate, a validation sticker is issued with the owner’s birth month, license plate number, and the year of expiration or the appropriate renewal period if the owner is not a natural person. The license plate and validation sticker are issued based on the applicant’s appropriate renewal period. 36 License plates with validation stickers subject to the registration period are valid for not more than 12 months and expire at midnight on the last day of the registration period. A license plate with a validation sticker subject to the extended registration period is valid for not more than 24 months and expires at midnight on the last day of the extended registration period. 37 33 S. 626.829, F.S. 34 S. 624.605, F.S. 35 Population is based on the 2020 census. Broward and Miami-Dade Counties are examples of political subdivisions that have a population of 1.9 million or greater pursuant to the 2020 census. 36 S. 320.06(1)(b)1., F.S. 37 S. 320.06(1)(c), F.S. STORAGE NAME: h0247z.DOCX PAGE: 6 DATE: 3/13/2024 Currently, rental cars may be permanently registered, provided that the appropriate annual license taxes and fees are paid. 38 Effect of the Bill The bill allows rental trucks, under 15,000 pounds, to be permanently registered in the same manner as rental cars, provided that the appropriate annual license taxes and fees are paid. Registration License Plates Current Situation Under current law, DHSMV, upon receipt of an application and payment of the appropriate fees, must issue to a vehicle owner or lessee a certificate of registration and a license plate. 39 License plates are issued for a 10-year period and must be replaced upon renewal at the end of the 10-year period. The replacement fee is $28, $2.80 of which is paid each year in the ten years leading up to the replacement, and such fees must be deposited into the Highway Safety Operating Trust Fund. 40 Florida law provides that registration license plates must be at least 6 inches wide and not less than 12 inches in length. However, license plates with reduced dimensions can be issued if deemed necessary by DHSMV to accommodate motorcycles, mopeds, or similar smaller vehicles. 41 All other requirements, including the type of metal, validation stickers, identification letters and numerals, and imprints for specific plates, are the same regardless of registration license plate size. 42 Effect of the Bill The bill adds that a trailer can qualify for a license plate with reduced dimensions if deemed necessary by DHSMV. License Plates for Disabled Veterans Current Situation Florida law requires DHSMV to issue one free license plate to veterans with a 100 percent service- connected disability upon application. 43 The license number on each plate issued to a disabled veteran must be identified by the letter designation “DV.” 44 The design of the special disabled veteran plate is red, white, and blue, and resembles the United States flag. 45 Upon issuance of each new permanent “DV” license plate, an initial validation sticker 46 with an expiration not exceeding 27 months, is issued without cost to the applicant. 47 The applicant does have to pay the associated service charges for each initial application or renewal of registration. 48 Registration must be renewed annually or biennially, and at that time, the applicant must submit a certified statement affirming their continued eligibility for the special “DV” license plate. 49 Persons with a 38 S. 320.06(1)(b), F.S. 39 S. 319.06(1)(a), F.S. 40 S. 319.06(1)(b), F.S. 41 S. 320.06(3)(a), F.S. 42 S. 320.06(3)(a), F.S. 43 S. 320.084(1), F.S. 44 S. 320.084 (3), F.S. 45 FLHSMV, Florida Military License Plate Brochure, https://www.flhsmv.gov/pdf/specialtyplates/military_brochure.pdf (last visited Mar. 7, 2024). 46 The validation sticker must reflect the applicant’s birth month and the year of expiration. 47 S. 320.084(4)(a), F.S. 48 S. 320.084(4)(b), F.S., refers to the fees in s. 320.04, F.S. For the original issuance of a license plate the service charge is $2.50. For the issuance of each license plate validation sticker the service charge is $1.00. An additional $0.50 is charged for each license plate and validation sticker so they can be treated with retroflection material. 49 S. 320.084(4)(c), F.S. STORAGE NAME: h0247z.DOCX PAGE: 7 DATE: 3/13/2024 “DV” license plate with the international accessibility symbol are exempt from any fee or penalty for parking in any metered or timed parking space. 50 Florida has over 100 specialty license plates, with a statutory cap of 135, 51 available to Florida drivers who are willing to pay the additional annual use fee for such plate. 52 Within the specialty license plates, Florida offers 33 Special Military License Plates. 53 Each of the military service specialty license plates have specific requirements that must be met upon application and require payment of the license tax for the vehicle, if applicable, 54 before the plate can be issued. 55 Out of all military license plates offered in 2023 by DHSMV, the “DV” license plate ranked number one with 117,637 issued. 56 Effect of the Bill The bill provides that a disabled veteran who qualifies for the special “DV” license plate may be issued a military license plate for which he or she is eligible or a specialty license plate, instead of the “DV” license plate. The applicant must pay all of the applicable fees related to such plate, except for the initial license plate and registration fees waived for “DV” license plate applicants. Additionally, a military license plate or a specialty license plate elected in this manner is not eligible for the international symbol of accessibility and is not provided certain protections or rights that accompany the “DV” license plate. Temporary Tags Current Situation Florida law authorizes a variety of legal uses for temporary license plates. Temporary tags, if authorized for use by DHSMV, must be conspicuously displayed on the rear license plate bracket or, on vehicles requiring front display of license plates, on the front of the vehicle in the location where the metal license plate would normally be displayed. 57 Moreover, except as specifically provided otherwise, a temporary tag is valid for 30 days, and no more than two may be issued to the same person for the same vehicle. 58 DHSMV may design, issue, and regulate the use of temporary tags in the following cases: Where a dealer license plate may not be lawfully used; For a casual or private sale, including the sale of a marine boat trailer by a marine boat trailer dealer; For certified common carriers or driveaway companies who transport motor vehicles, mobile homes, or recreational vehicles from one place to another for persons other than themselves; 50 S. 320.084(5), F.S. 51 S. 320.08053(3)(b), F.S. 52 S. 320.08056(2)(a), F.S. 53 S. 320.089, F.S. The plates offered are as follows: Air Force Combat Action Medal, Air Force Cross, Combat Action Badge, Combat Action Ribbon, Combat Infantry Badge, Combat Medical Badge, Distinguished Flying Cross, Distinguished Service Cross, Ex-Prisoner of War, Gold Star Family, Korean War Veteran, Medal of Honor (Air Force), Medal of Honor (Army), Medal of Honor (Navy), National Guard, Navy Cross, Navy Submariner, Operation Desert Shield, Operation Desert Storm, Operation Enduring Freedom, Operation Iraqi Freedom, Pearl Harbor Survivor, Purple Heart, Silver Star, U.S. Reserve, Veteran of U.S. Armed Forces, Vietnam War Veteran, Woman Veteran, World War II Veteran, U.S. Paratrooper, Former Military Vehicle, Army of Occupation, and Bronze Star. 54 See s. 320.089(1)(d) and (2)(a), F.S. An applicant for a Pearl Harbor Survivor license plate or a Purple Heart license plate who also qualifies for a DV license plate, or an applicant who was held as a prisoner of war, does not have to pay the motor vehicle license tax. 55 S. 320.089, F.S. 56 FLHSMV, supra note 45 at p. 6. 57 S. 320.131(4), F.S. 58 S. 320.131(2), F.S. STORAGE NAME: h0247z.DOCX PAGE: 8 DATE: 3/13/2024 For banks, credit unions, and other financial institutions for the purpose of demonstrating repossessions for sale; Where a motor vehicle is sold in this state to a resident of another state for registration therein and the motor vehicle is not required to be registered; Where a motor vehicle is required to be weighed or emission tested prior to registration or have a vehicle identification number verified; 59 Where an out-of-state resident, subject to registration in this state, must secure ownership documentation from the home state; For a rental car company which possesses a motor vehicle dealer license and which may use temporary tags on vehicles offered for lease by such company in accordance with the provisions of rules established by DHSMV; In the resolution of a consumer complaint where there is a need to issue more than two temporary tags; While a personalized prestige or specialty license plate is being manufactured for use upon the motor vehicle; 60 In any case where a permanent license plate cannot legally be issued to an applicant and a temporary license plate is not specifically authorized; and For use by licensed dealers to transport motor vehicles and recreational vehicles from the dealer’s licensed location to an off-premise sales location and return. 61 DHSMV is authorized to disallow the purchase of temporary tags by licensed dealers, common carriers, or financial institutions in those cases where abuse has occurred. 62 DHSMV may sell temporary tags to their agents and where need is demonstrated by a consumer complainant. The fee is $2 each. 63 Additionally, agents of DHSMV must sell temporary tags for $2 each and must charge the service charge per transaction, regardless of the quantity sold. 64 Requests for purchase of temporary tags to DHSMV or its agents must be made, where applicable, on letterhead stationery and notarized. 65 Effect of the Bill The bill adds the following two cases wherein DHSMV may design, issue, and regulate the use of temporary tags: The existing owner of a vehicle has submitted an application to transfer a valid out-of-state title that is subject to a lien. An active-duty military servicemember who has a valid Florida driver license provides evidence satisfactory to DHSMV that he or she is deployed outside this state. Further, the bill provides that a temporary tag issued for these two purposes is valid for 60 days, instead of the default of 30 days. The bill repeals the requirement that requests for purchase of temporary tags to DHSMV or its agents must be made, where applicable, on letterhead stationery and notarized. The bill also makes other technical and clarifying changes to the statute relating to temporary tags. 59 This type of temporary tag is valid for 10 days. S. 320.131(1)(f), F.S. 60 This type of temporary tag is valid for 90 days. S. 320.131(1)(j), F.S. 61 S. 320.131(1), F.S. 62 Id. 63 Id. at 34. 64 Id. 65 Id. STORAGE NAME: h0247z.DOCX PAGE: 9 DATE: 3/13/2024 II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT A. FISCAL IMPACT ON STATE GOVERNMENT: 1. Revenues: None. 2. Expenditures: DHSMV estimates that the bill will have a technology and programming impact of $8,130 in full-time equivalent position and contracted resources for the following components of the bill: Reduce dimension of license plates for trailers; Allow additional license plate choices for customers who meet the “DV” requirement; and Allow additional situations where DHSMV may issue temporary tags. 66 Additionally, DHSMV has expressed that it may need additional customer service staff in order to address workload related to temporary tag status questions. 67 Lastly, DHSMV has provided that the bill will most likely have a negative, significant impact on the agency, to the extent that certain general lines insurance agencies are appointed as tax collector agents. If general lines insurance agencies are appointed as tax collector agents, DHSMV would be obligated, as is practice with other authorized tax collector agents, to provide equipment and registration inventory to such general lines insurance agencies. DHSMV estimates that it will incur costs of $1.9 million in Fiscal Year 2024-25 and will subsequently be subject to recurring costs. This estimation is based on the assumption that 15 general lines insurance agency offices with 10 work stations will open to conduct the tax collector agent duties outlined in the bill. 68 B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 1. Revenues: None. 2. Expenditures: None. C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: This bill will likely have a positive, though indeterminate, fiscal impact on the private sector as a result of streamlining administrative processes. D. FISCAL COMMENTS: None. 66 DHSMV, Agency Analysis of 2024 House Bill 247, p. 6-7 (Nov. 3, 2023). 67 Id. 68 DHSMV, supra note 20 at p. 3-5. See also Email from Jonas Marquez, DHSMV Director of Legislative Affairs, FW: SB 736 (Mar. 4, 2024).