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 Finance and Tax
BILL: CS/CS/SB 1290
INTRODUCER: Finance and Tax Committee; Transportation Committee; and Senator Collins
SUBJECT: Department of Highway Safety and Motor Vehicles
DATE: March 27, 2025
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Shutes Vickers TR Fav/CS
2. Khan Khan FT Fav/CS
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 1290 amends various provisions related to the Department of Highway Safety and
Motor Vehicles (DHSMV), including motor vehicle registration, licensing, and tax-related
requirements. Specifically, the bill:
• Revises the short title of s. 207.001, F.S., to the “Florida Motor Fuel Use Tax Act.”
• Specifies the requirements for calculating and reporting the motor fuel use tax and updates
other definitions and requirements under the Florida Motor Fuel Use Tax Act.
• Creates penalties for counterfeiting or illegally altering fuel tax licenses and the related
permits.
• Amends the required procedures for due dates, electronic submissions, and methods of
communications related to motor carriers and fuel taxes.
• Revises penalties and interest calculations for delinquent tax payments and revises the
provisions related to the inspection and discontinuation of business operations for motor
carriers.
• Provides penalties for specific offenses related to the misuse of motor fuel-tax related
documents and establishes detailed requirements for recordkeeping by motor carriers.
• Increases the amount of estimated damage resulting from a crash that is required to be
reported to law enforcement from $500 to $2,000.
• Provides a definition for the term “economically disadvantaged area” in relation to motor
vehicle dealer and manufacturer licensing and driving under the influence schools.
• Amends requirements related to the application process for motor vehicle registrations.
REVISED: BILL: CS/CS/SB 1290 Page 2
• Expands the types of transactions and circumstances in which DHSMV may use email in lieu
of the United States Postal Service to communicate with customers.
• Updates the definition of a “tank vehicle” to place Florida in compliance with the Federal
Motor Carrier Safety Regulations.
• Allows non-profit organizations to enter into a Memorandum of Understanding (MOU) with
the DHSMV to carry out Vehicle Identification Number (VIN) inspections for Florida titles.
• Allows a disabled veteran who meets certain requirements to be issued a specialty license
plate embossed with the initials “DV” in the top left-hand corner of the plate.
The bill may have an indeterminate positive fiscal impact on the DHSMV’s expenditures
through the use of electronic mail. See Section V., Fiscal Impact Statement.
The bill takes effect July 1, 2025.
II. Present Situation:
Florida Diesel Fuel and Motor Fuel Use Tax Act of 1981
In 1981, the Florida Legislature passed Chapter 207, F.S., as the “Florida Diesel and Fuel Motor
Use Tax Act of 1981,” which levied taxes for the privilege of operating any commercial motor
vehicle upon the public highways of this state. In 1987, responsibility was moved from the
Department of Revenue to the Department of Highway Safety and Motor Vehicles (DHSMV)
and authority to enter into a cooperative reciprocal agreement with other states was enacted. In
1991, the International Fuel Tax Agreement (IFTA) was formed.
In 1992, Florida joined IFTA, and in 1996, Congress enacted 49 USC 31701-31707, requiring all
states (except Alaska and Hawaii) to join IFTA. The legislation provided authority to each state
to establish, maintain, or enforce a law or regulation requirement, including any tax reporting
form, only if the requirement conforms with IFTA. It also detailed how payment, collection, and
proportional sharing of fuel use taxes would work among member states. Chapter 207, F.S.,
contains language that no longer conforms with the federal IFTA Articles of Agreement.
1
International Fuel Tax Agreement (IFTA)
The IFTA simplifies fuel tax reporting for interstate carriers, such as commercial motor vehicles.
Commercial motor vehicles qualify for IFTA if they are used, designed, or maintained for the
interstate transportation of persons or property and:
• Have two axles and a gross vehicle weight (GVW) or registered GVW exceeding 26,000
pounds; or
• Have three or more axles, regardless of weight; or
• Are used in combination with a trailer, for a combined GVW or registered GVW in excess of
26,000 pounds.
2
1
DHSMV, 2025 Legislative Bill Analysis: SB 1290 (February 26, 2025) at p. 2 (on file with the Senate Transportation
Committee).
2
Department of Highway Safety and Motor Vehicles, International Fuel Tax Agreement, https://www.flhsmv.gov/driver-
licenses-id-cards/commercial-motor-vehicle-drivers/international-fuel-tax-agreement/ (last visited March 13, 2025). BILL: CS/CS/SB 1290 Page 3
The IFTA is a reciprocal agreement, meaning that an IFTA license issued by the jurisdiction
where the motor carrier is based, is valid in all the other IFTA member jurisdictions.
Additionally, the licensee reports and pays all motor fuel taxes to the base jurisdiction, which
handles distribution to all the other member jurisdictions in which the licensee travelled and
incurred motor fuel use tax liability. The IFTA member jurisdictions are the lower 48 states and
the 10 Canadian provinces.
3
IFTA Credentials
Each calendar year, Florida will issue an IFTA license and a set of two IFTA decals per each
qualified vehicle. The original IFTA license is kept with the carrier’s records, and copies of the
original must be kept in each vehicle, and IFTA decals must be affixed to the outside of each of
those vehicles. By having copies of the licenses, and the decals affixed to the outside of the
vehicles, it qualifies them to be operational in all other IFTA jurisdictions without the need for
obtaining additional licenses from those jurisdictions.
4
The IFTA licenses and decals are valid
for one calendar year (January 1 – December 31), and reporting for motor fuel taxes is divided
into four reporting periods. There is no annual fee associated with the IFTA license, and IFTA
decals are $4.00 per set.
5
Crash Reporting – Damage Thresholds
A driver of a vehicle involved in a crash that results in injury or death of any person, or results in
damage to any vehicle or other property in an apparent amount of at least $500, must give
immediate notification to local law enforcement whether a municipality, county, or Florida
Highway Patrol. A violation of this provision is a noncriminal traffic infraction, punishable as a
nonmoving violation. The statutory base fine is $30, but with additional fees and court costs, the
total fine may be up to $108.
6
In 1989, the amount of property damage necessary to require notification to law enforcement
was increased from $100 to $500.
7
Currently, the normal amount for a deductible for vehicle
insurance contracts within the insurance industry is between $500 and $1,500.
8
From 2021 to
the present, the typical vehicle crash damage repair cost ranged between $1,000 to $1,499. The
second highest percentage was $2,000 to $2,499. Within the same period 60 percent of the
vehicle crashes resulted in more than $2,500 in damage.
9
3
Id at 2.
4
Id.
5
Id.
6
Florida Association of Clerks of Court, 2023 Distribution Schedule, p, 39.
https://cdn.ymaws.com/www.flclerks.com/resource/resmgr/publicationsanddocuments/2023_Distribution_Schedule_e.pdf
(last visited March 14, 2025).
7
Section 1, Chapter 89-271, Laws of Florida.
8
Insurance, L. M. (n.d.). Car Insurance Deductibles: Frequently Asked Questions, Liberty Mutual.
https://www.libertymutual.com/insurance-resources/auto/car-insurance-deductibles-faqs (last visited March 14, 2025).
9
Id at 2. BILL: CS/CS/SB 1290 Page 4
Application and Issuance for Certificate of Title
If a certificate of title has not previously been issued for a motor vehicle or mobile home in this
state, the application, unless otherwise provided, must be accompanied by a proper bill of sale or
sworn statement of ownership, or a duly certified copy thereof, or by a certificate of title, bill of
sale, or other evidence of ownership required by the state or county from which the motor
vehicle or mobile home was brought into this state.
10
The application must also be accompanied
by:
• A sworn affidavit from the seller and purchaser verifying that the vehicle identification
number shown on the affidavit is identical to the vehicle identification number shown on the
motor vehicle; or
• An appropriate DHSMV form evidencing that a physical examination has been made of the
motor vehicle by the owner and by a duly constituted law enforcement officer in any state, a
licensed motor vehicle dealer, a license inspector as provided by s. 320.58, F.S., or a notary
public commissioned by this state, and that the vehicle identification number shown on such
form is identical to the vehicle identification number shown on the motor vehicle; and
• If the vehicle is a used car original, a sworn affidavit from the owner verifying that the
odometer reading shown on the affidavit is identical to the odometer reading shown on the
motor vehicle in accordance with the requirements of certain federal regulations.
Verification of the vehicle identification number is not required for any new motor vehicle; any
mobile home; any trailer or semitrailer with a net weight of less than 2,000 pounds; or any travel
trailer, camping trailer, truck camper, or fifth-wheel recreation trailer.
11
Vehicle Registration Requirements – Permanent Address
With limited exceptions, every owner or person in charge of a motor vehicle that is operated or
driven on the roads must register the vehicle in this state. The owner or person in charge must
apply to the DHSMV or to its authorized agent for registration of each vehicle on a form
prescribed by the DHSMV. A registration is not required for any motor vehicle that is not
operated on the roads of this state during the registration period.
12
The application for registration must include the street address of the owner’s permanent
residence or the address of his or her permanent place of business and be accompanied by
personal or business identification information. An individual applicant must provide a valid
driver license or identification card issued by Florida or another state or a valid passport. A
business applicant must provide a federal employer identification number, if applicable, or
verification that the business is authorized to conduct business in the state, or a Florida municipal
or county business license or number.
13
10
Section 319.23(3), F.S.
11
Id.
12
Section 320.02(1), F.S.
13
Section 320.02(2)(a), F.S. BILL: CS/CS/SB 1290 Page 5
If the owner does not have a permanent residence or permanent place of business, or if the
owner’s permanent residence or permanent place of business cannot be identified by a street
address, the application must include:
• If the vehicle is registered to a business, the name and street address of the permanent
residence of an owner of the business, an officer of the corporation, or an employee who is in
a supervisory position.
• If the vehicle is registered to an individual, the name and street address of the permanent
residence of a close relative or friend who is a resident of this state.
14
If the vehicle is registered to an active duty member of the Armed Forces of the United States
who is a Florida resident, the active duty member is exempt from the requirement to provide the
street address of a permanent residence.
15
Disabled Veteran (“DV”) License Plate
Section 320.084(1), F.S., requires one free “DV” motor vehicle license number plate to be issued
by DHSMV for use on any motor vehicle owned or leased by any disabled veteran who has been
a Florida resident continuously for the preceding five years or has established a domicile in this
state, and who has been honorably discharged from the United States Armed Forces.
16
Additionally, a disabled veteran who meets these requirements may be issued, in lieu of the
“DV” license plate, a military license plate for which he or she is eligible, or a specialty license
plate. A disabled veteran who elects a military license plate or specialty license plate, must pay
all applicable fees related to such license plate, except for fees otherwise waived.
17
Regulation of Motor Vehicle Dealers and Manufacturers - Minority Participation
Section 320.605, F.S., provides that it is the intent of the Legislature to protect the public health,
safety, and welfare of the citizens of the state by regulating the licensing of motor vehicle dealers
and manufacturers, maintaining competition, providing consumer protection and fair trade, and
providing minorities with opportunities for full participation as motor vehicle dealers.
The DHSMV licenses motor vehicle dealers and manufacturers pursuant to ss. 320.60-320.70,
F.S. Licensees are required to annually report to the DHSMV on its efforts to add new minority
dealer points, including difficulties encountered under ss. 320.61-320.70, F.S. The term
“minority” has the same meaning as that given it in the definition of “minority person” in s.
288.703, F.S.
18
14
Id.
15
Id.
16
Section 320.084(1), F.S.
17
Section 320.084(6)(a), F.S.
18
Section 288.703, F.S., provides a “minority business enterprise” is defined as any small business which is organized to
engage in commercial transactions, is domiciled in Florida, and is at least 51-percent-owned by minority persons who are
members of an insular group that is of particular racial, ethnic, or gender makeup or national origin which has been subject
historically to disparate treatment due to identification in and with that group resulting in an underrepresentation of
commercial enterprises under the group’s control, and whose management and daily operations are controlled by such
persons. A minority business enterprise may primarily involve the practice of a profession. Ownership by a minority person BILL: CS/CS/SB 1290 Page 6
Driving Under the Influence (DUI) Program Supervision – Application Criteria
The DHSMV is responsible for licensing and regulating all DUI programs, including the
certification of instructors, evaluators, clinical supervisors, and special supervision services
evaluators. The DHSMV must, after consultation with the chief judge of the affected judicial
circuit, establish requirements regarding the number of programs to be offered within a judicial
circuit.
19
In evaluating an application for approval of a DUI program, the DHSMV is required to
utilize specified criteria, including whether the new program would provide improved services to
minority and special needs clients.
20
Electronic Notification to Customers – Use of Email
Notices related to the cancellation, suspension, revocation, or disqualification issued under the
provisions of chs. 318, 320, 322, 324, or ss. 627.732-627.734, F.S.,
21
must be given via personal
delivery to the customer via the United States Postal Service at which it is placed in an envelope,
first class, postage prepaid and addressed to the customer at his or her last known mailing
address that has been furnished to the DHSMV.
Currently, the DHSMV is authorized to collect and utilize email addresses for the limited
purpose of providing certain motor vehicle registration and driver’s license renewal notices.
Definition of Tank Vehicles
Section 322.01(44), F.S. defines a “tank vehicle” as a vehicle that is designed to transport any
liquid or any liquid gaseous material within a tank either permanently or temporarily attached to
the vehicle, if such tank has a designed capacity of 1,000 gallons or more.
According to the DHSMV, this definition is not currently aligned with the Federal Motor Carrier
Safety Administration (FMSCA) definition.
22
The FMSCA has the power to withhold federal
funding from the state should they find that the DHSMV is not in compliance with the applicable
federal legal requirements.
23
does not include ownership which is the result of a transfer from a nonminority person to a minority person within a related
immediate family group if the combined total net asset value of all members of such family group exceeds $1 million.
19
Section 322.292(1), F.S.
20
Section 322.292(2), F.S.
21
These chapters govern the disposition of traffic infractions, motor vehicle registration, driver licensing, financial
responsibility, and motor vehicle insurance.
22
49 CFR 383.5, provides that a “tank vehicle” means any commercial motor vehicle that is designed to transport any liquid
or gaseous materials within a tank or tanks having an individual rated capacity of more than 119 gallons and an aggregate
rated capacity of 1,000 gallons or more that is either permanently or temporarily attached to the vehicle or the chassis. A
commercial motor vehicle transporting an empty storage container tank, not designed for transportation, with a rated capacity
of 1,000 gallons or more that is temporarily attached to a flatbed trailer is not considered a tank vehicle.
23
DHSMV, 2025 Legislative Bill Analysis: SB 1290 (February 26, 2025) at p. 5 (on file with the Senate Transportation
Committee). BILL: CS/CS/SB 1290 Page 7
III. Effect of Proposed Changes:
International Fuel Tax Agreement
The bill amends various sections of ch. 207, F.S., to update Florida law to reflect the changes in
federal regulations pertaining to IFTA so that Florida remains compliant with those federal
regulations. For example, the bill:
• Specifies the requirements for calculating and reporting the motor fuel use tax and updates
other definitions and requirements under the Florida Motor Fuel Use Tax Act.
• Establishes a licensing system for motor carriers in lieu of registration and mandates
electronic submission for tax and licensing documents.
• Creates penalties for counterfeiting or illegally altering fuel tax licenses and the related
permits.
• Amends the required procedures for due dates, electronic submissions, and methods of
communications related to motor vehicles and fuel taxes.
• Revises penalties and interest calculations for delinquent tax payments and revises the
provisions related to the inspection and discontinuation of business operations for motor
carriers.
• Provides penalties for specific offenses related to the misuse of motor fuel-tax related
documents and establishes detailed requirements for recordkeeping by motor carriers.
• Incorporates numerous conforming provisions throughout ch. 207, F.S.
Crash Reporting – Damage Thresholds
The bill amends s. 316.065, F.S., to require the driver a of a vehicle that is involved in a crash
that results in injury or death of any person, or results in damage to any vehicle or other property
in an apparent amount of at least $2,000 (currently $500), must give immediate notification to
local law enforcement or the Florida Highway Patrol.
Application and Issuance for Certificate of Title
The bill amends s. 319.23(3), F.S., to allow non-profit organizations established to detect and
deter insurance fraud and crime to enter into a Memorandum of Understanding (MOU) with the
DHSMV to carry out Vehicle Identification Number (VIN) inspections for Florida titles.
Motor Vehicle Registration – Permanent Address
The bill amends s. 320.02, F.S., to provide that an application for registration of a motor vehicle
must include the street address of the owner’s Florida residence or the address of his or her
permanent place of business in Florida and be accompanied by specified personal or business
identification. The bill repeals the current authorization for a vehicle owner who does not have a
permanent address or place of business in Florida to register a vehicle under certain conditions.
Specifically, the bill provides that an applicant for a motor vehicle registration is required to have
a valid, REAL ID compliant driver’s license or identification card issued by Florida or another
state, a valid unexpired United States passport, or a valid, unexpired passport issued by another
country and an unexpired Form I-94 issued by the United States Bureau of Customs and Border BILL: CS/CS/SB 1290 Page 8
Protection. According to the DHSMV, there are currently 262,167 driver licenses in Florida that
are not yet REAL-ID compliant, and the federal REAL-ID deadline is May 7, 2025.
24
The bill also stipulates that if a vehicle is registered to an active-duty member of the U.S. Armed
Forces, who is a Florida resident, the registrant is exempt from the requirement to provide a
street address for a permanent Florida residence.
Disabled Veteran (“DV”) License Plate
The bill amends s. 320.084(1), F.S., to allow a disabled veteran who meets certain requirements
to be issued a specialty license plate embossed with the initials “DV” in the top left-hand corner.
Definition and Use of Economically Disadvantaged Area
The bill amends ss. 320.605, and 320.63, F.S., (motor vehicle dealers and manufacturers) and s.
322.292, F.S., (DUI programs) to replace the term “minority” with the term “economically
disadvantaged area”. The term “economically disadvantaged area” is defined to mean a defined
geographic area within this state in which at least one of the following conditions exist:
• The per capita income for residents within the area is less than 80 percent of the per capita
income in this state;
• The unemployment rate within the area was more than 1 percent over the unemployment rate
for this state over the previous 24 months.
Electronic Notification of Customers Via Email
The bill amends ss. 320.95, 322.08, 322.18, 322.21, 322.251, 322.2616, 322.64, 324.091, and
328.30, F.S., to expand the types of transactions and circumstances in which DHSMV may use
email in lieu of the United States Postal Service to communicate with customers. Specifically,
the bill authorizes email to be used as a method of general notification for various notices and
orders issued by DHSMV, including, but not limited to, notices related to driver licenses,
identification cards, motor vehicle registrations, motor vehicle insurance, and vessel
registrations.
SB 1292, which is linked to this bill, expands provisions related to current public record
exemptions for email addresses held by the DHSMV used in connection with:
• Motor vehicle title transactions.
• Motor vehicle registration renewal notices.
• Driver license renewal notices.
• Vessel title transactions and liens.
Definition of Tank Vehicles
The bill amends s. 322.01(44), F.S., to change the definition of a “tank vehicle” to a vehicle
designed to transport any liquid or gaseous material within one or more tanks, each with a
capacity above 119 gallons and an aggregate rated capacity of 1,000 gallons or more. A
24
Id at p. 6 BILL: CS/CS/SB 1290 Page 9
commercial motor vehicle transporting an empty storage container that is not designed for
transportation but that is temporarily attached to a flatbed trailer is not a tank vehicle. This
change places Florida in substantial compliance with Parts 383 and 384 of the FMCSA.
The bill includes various conforming provisions and corrects several cross-references.
This bill takes effect July 1, 2025.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Not applicable. The bill does not require counties or municipalities to take action
requiring the expenditure of funds, reduce the authority that counties or municipalities
have to raise revenue in the aggregate, nor reduce the percentage of state tax shared with
counties or municipalities. Therefore, the bill may not be subject to Article VII, s. 18 of
the Florida Constitution.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
Not applicable. The bill does not impose or raise a state tax or fee nor repeal a state credit
or exemption. There, this bill may not be subject to Article VII, s. 19 of the Florida
Constitution.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None. BILL: CS/CS/SB 1290 Page 10
C. Government Sector Impact:
The bill may have an indeterminate positive fiscal impact on state government as the
DHSMV’s expenditures could decrease as a result of notices and orders being provided
via electronic mail and not through the United States Postal Service.
According to the DHSMV, FHP and tax collector training will be required to implement
several provisions of the bill.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 207.001, 207.002,
207.003, 207.004, 207.005, 207.007, 207.008, 207.011, 207.013, 207.014, 207.019, 207.023,
207.0281, 212.08, 316.065, 318.15, 319.23, 320.02, 320.084, 320.605, 320.63, 320.95, 320.95,
322.01, 322.08, 322.18, 322.21, 322.251, 322.2616, 322.292, 322.324.091, 328.30, and
627.7415.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS/CS by Finance and Tax on March 26, 2025:
The committee substitute:
• Allows non-profit organizations to enter into a Memorandum of Understanding
(MOU) with the DHSMV to carry out Vehicle Identification Number (VIN)
inspections for Florida titles.
• Allows a disabled veteran who meets certain requirements to be issued a specialty
license plate embossed with the initials “DV” in the top left-hand corner of the plate.
CS by Transportation on March 18, 2025:
The committee substitute:
• Amends the requirements and dates for the annual, semiannual, and quarterly
reporting of the motor fuel use tax.
• Increases the amount of estimated damage resulting from a crash that is required to be
reported to law enforcement from $1,500 to $2,000.
• Makes technical changes related to registration requirements, and the definition of a
“tank vehicle.”
• Makes other drafting changes to conform to the House version of the bill.
BILL: CS/CS/SB 1290 Page 11
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.