X Entire Bill Partial Bill: Sponsor(s): Senator Evers Month/Year Impact Begins: July 1, 2014 Date of Analysis: April 11, 2014

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1 Tax: Cigarette Tax Issue: Tax exempt cigarettes sold on Indian Reservations Bill Number(s): Strike all amendment for SB1550 X Entire Bill Partial Bill: Sponsor(s): Senator Evers Month/Year Impact Begins: July 1, 2014 Date of Analysis: April 11, 2014 Section 1: Narrative a. Current Law: The Department of Business and Professional Regulation (DBPR) provides Indian tax and surcharge exemption coupons to Indian Tribes recognized by the State. The coupons are presented to wholesale dealers when the tribes purchase tax exempt cigarettes, and the wholesale dealers provide the coupons back to DBPR. The number of coupons provided each year is limited to the number of tribal members times five packs times 365. There are currently two Indian Tribes that are recognized by the State of Florida. The Seminole Tribe has six reservations in the state and the Miccosukee Tribe has four. The number of members of each tribe is provided to DBPR by the tribes so that the maximum limit of tax exemption coupons can be calculated. The tax exempt packs are authorized to be sold on Indian Reservations to members of the recognized tribes. Previously (from 1979 to 2009), tax exempt cigarettes could be sold on Indian Reservations to both tribal members and the public. Chapter , L.O.F., repealed the authority to sell to the public. b. Proposed Change: The proposed bill would authorize tax exempt cigarettes to be sold to the public at tribal smoke shops on Indian Reservations. The exemption would apply to both the cigarette tax and the cigarette surcharge. The maximum number of tax exempt cigarettes that may be purchased and sold each year (to the public and to tribal members) is still limited to five packs per day for each member of the recognized tribes. A member of the public may not purchase more than three cartons of tax exempt cigarettes from a tribal smoke shop within a 7 day period. The bill also provides further clarification regarding how and where tax exempt cigarettes may be sold. A tribal smoke shop must be granted a certificate of authority by a tribal business entity in order to sell tax exempt cigarettes. The tribal business entity must develop criteria for obtaining a certificate, and may charge a reasonable fee for issuance. One of the requirements must be monitoring and enforcing the three carton limit. Each tribal business entity that purchases tax exempt cigarettes must create a fund dedicated exclusively to funding tribal health care, including the creation of a Tribal Comprehensive Tobacco Education and Use Prevention Program. Section 2: Description of Data and Sources Tobacco Tax and Surcharge February 2014 Revenue Estimating Conference DBPR data for cigarette sales at Indian Reservations (number of packs, foregone tax revenues, number of tribal members) American Lung Association report on the cost of smoking in Florida retail price per pack including all taxes Section 3: Methodology (Include Assumptions and Attach Details) The estimate assumes that behavior will not change as a result of this bill and therefore there will be no fiscal impact. Section 4: Proposed Fiscal Impact High Middle Low Cash Recurring Cash Recurring Cash Recurring

2 Tax: Cigarette Tax Issue: Tax exempt cigarettes sold on Indian Reservations Bill Number(s): Strike all amendment for SB1550 List of affected Trust Funds: Health Care Trust Fund Public Medical Assistance Trust Fund Biomedical Research Trust Fund Alcoholic Beverage and Tobacco Trust Fund Section 5: Consensus Estimate (Adopted: 04/11/2014) The Conference adopted the proposed estimate. GR Trust Local/Other Total Cash Recurring Cash Recurring Cash Recurring Cash Recurring

3 Tax-exempt Cigarette Sales at Indian Reservations Cigarette Packs % change Tax & Surcharge % change ,233,546 13,639, ,199, % 12,610, % ,223, % 12,279, % ,640, % 10,726, % ,273, % 9,923, % ,797, % 9,762, % ,906, % 9,121, % ,114, % 9,191, % ,386, % 8,944, % ,633, % 9,367, % ,647, % 10,240, % ,568, % 10,134, % ,793, % 10,435, % ,964, % 10,664, % ,329, % 11,152, % Source: DBPR Division of Alcoholic Beverages & Tobacco Components of Cigarette Prices Component Price Factory Price $2.36 Federal Tax $1.01 State Tax $1.34 Sales Tax $0.32 Mark-ups $0.60 Total $5.63 Source: American Lung Association 503

4 Tax: DBPR Licensure Fees Issue: Waiver of specified licensure fees for veterans and their spouses for a period of 60 months from discharge of the veteran Bill Number(s): CS/CS/HB 7015, Enrolled Entire Bill X Partial Bill: Section 26 Sponsor(s): Smith Month/Year Impact Begins: July 2014 Date of Analysis: April 2, 2014 Section 1: Narrative a. Current Law: Under s , F.S., the Department of Business and Professional Regulation shall waive the initial licensing fee, initial application fee, and initial unlicensed activity fee for military veterans applying for a professional license from the department within 24 months of an honorable discharge from any branch of the United States Armed Forces. This provision became effective October 1, b. Proposed Change: Section 26 amends s , F.S., to extend the eligible time period for the fee waiver for military veterans who are honorably discharged from 24 months to 60 months of discharge. In addition, the spouse of an eligible military veteran is permitted to obtain waiver of the same fees. Section 2: Description of Data and Sources The primary data for this analysis is from DBPR s experience with the 24 month fee waiver implemented October The number of exemptions granted and the fiscal impact of those exemptions are used to model the potential impact of extending the exemption to 60 months. Population data from the Florida Demographic Estimating Conference is used to trend the data for the out years of the forecast. Section 3: Methodology (Include Assumptions and Attach Details) Assumptions for range of estimates: For LOW, assume experience to date For MEDIUM, assume 2.4 times LOW 60/24=2.4 For HIGH, assume doubling of MEDIUM For out years, increase the base numbers by the increase in the working age population per the Florida Demographic Estimating Conference. See attached worksheet. Section 4: Proposed Fiscal Impact High Middle Low Cash Recurring Cash Recurring Cash Recurring ($68,550) ($68,550) ($34,275) ($34,275) ($14,281) ($14,281) ($69,167) ($69,167) ($34,584) ($34,584) ($14,410) ($14,410) ($69,790) ($69,790) ($34,895) ($34,895) ($14,540) ($14,540) ($70,418) ($70,418) ($35,209) ($35,209) ($14,670) ($14,670) ($71,052) ($71,052) ($35,526) ($35,526) ($14,802) ($14,802) List of affected Trust Funds: DBPR s Professional Regulation Trust Fund (s (3), F.S.) Section 5: Consensus Estimate (Adopted: 04/11/2014): The conference adopted a negative insignificant impact. GR Trust Local/Other Total Cash Recurring Cash Recurring Cash Recur Cash Recurring (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) 504

5 Tax: DOH Professional Licensure Fees for Military Personnel Issue: Licensure requirements for veterans and their spouses for a period of 60 months from discharge of the veteran Bill Number(s): CS/CS/HB 7015, Enrolled Entire Bill X Partial Bill: Section 27 Sponsor(s): Smith Month/Year Impact Begins: July 2014 Date of Analysis: April 2, 2014 Section 1: Narrative a. Current Law: Under s , F.S., the Department of Health shall waive the initial licensing fee, initial application fee, and initial unlicensed activity fee for military veterans applying for an initial health care practitioner license from the department within 24 months of an honorable discharge from any branch of the United States Armed Forces. This provision became effective July 1, b. Proposed Change: Section 27 amends s , F.S., to extend the eligible time period for the fee waiver for military veterans who are honorably discharged from 24 months to 60 months of discharge. In addition, the spouse of an eligible military veteran is permitted to obtain waiver of the same fees. Section 2: Description of Data and Sources The primary data for this analysis is from DOH s experience with the 24 month fee waiver implemented July The number of exemptions granted and the fiscal impact of those exemptions are used to model the potential impact of extending the exemption to 60 months. Population data from the Florida Demographic Estimating Conference is used to trend the data for the out years of the forecast. Section 3: Methodology (Include Assumptions and Attach Details) Assumptions for range of estimates: For LOW, assume experience to date For MEDIUM, assume 2.4 times LOW 60/24=2.4 For HIGH, assume doubling of MEDIUM For out years, increase the base numbers by the increase in the working age population per the Florida Demographic Estimating Conference. See attached worksheet. Section 4: Proposed Fiscal Impact High Middle Low Cash Recurring Cash Recurring Cash Recurring ($152,723) ($152,723) ($76,361) ($76,361) ($31,817) ($31,817) ($154,097) ($154,097) ($77,049) ($77,049) ($32,104) ($32,104) ($155,484) ($155,484) ($77,742) ($77,742) ($32,393) ($32,393) ($156,884) ($156,884) ($78,442) ($78,442) ($32,684) ($32,684) ($158,296) ($158,296) ($79,148) ($79,148) ($32,978) ($32,978) List of affected Trust Funds: DOH s Medical Quality Assurance Trust Fund (s (8), F.S.) Section 5: Consensus Estimate (Adopted: 04/11/2014) The conference adopted ($0.1m) cash and recurring. GR Trust Local/Other Total Cash Recurring Cash Recurring Cash Recurring Cash Recurring (Insignificant) (Insignificant) (0.1) (0.1) (0.1) (0.1) (Insignificant) (Insignificant) (0.1) (0.1) (0.1) (0.1) (Insignificant) (Insignificant) (0.1) (0.1) (0.1) (0.1) (Insignificant) (Insignificant) (0.1) (0.1) (0.1) (0.1) (Insignificant) (Insignificant) (0.1) (0.1) (0.1) (0.1) 505

6 Tax: DOH Health Care Practitioner Licensure Fees Issue: Waiver of specified licensure fees for veterans and their spouses for a period of 60 months from discharge of the veteran Bill Number(s): CS/CS/HB 7015, Enrolled Entire Bill X Partial Bill: Section 28 Sponsor(s): Smith Month/Year Impact Begins: July 2014 Date of Analysis: April 2, 2014 Section 1: Narrative a. Current Law: Under s , F.S., any member of the Armed Forces of the U.S. who, at the time of becoming such a member, was in good standing with any administrative board of the state, or the department when there was no board, and was entitled to practice or engage in his or her profession or vocation in the state, shall be kept in good standing, without registering, paying dues or fees, or performing any other act as long as on active duty and for a period of 6 months after discharge from active duty. The regulatory boards, or the department when there is no board, shall adopt rules exempting spouses of active duty military personnel from license renewal requirements while out of state because of spouse s military duty. A board, or the department when there is no board, may issue a temporary professional license to the spouse of an active duty member of the Armed Forces who submits required documentation and meets otherwise applicable requirements, including applicable fees. b. Proposed Change: Section 28 amends s , F.S., to add as a new subsection (3) the authority for DOH to grant a health care practitioner license to a person who serves or has served as a health care practitioner in the U.S. Armed Forces, Reserve Forces, or National Guard, or a person who serves or who has served on active duty with the U.S. Armed Forces as a health care practitioner in the U.S. Public Health Service, provided other eligibility requirements are met. The application fee, licensure fee, and unlicensed activity fee for such applicants is waived. The term health care practitioner is specifically defined in this context. Section 2: Description of Data and Sources The Department of Health indicates that it has no basis for estimating the potential fiscal impact of this provision. The department anticipates the provision to have an insignificant indeterminate negative impact on department fee revenue. Section 3: Methodology (Include Assumptions and Attach Details) The Department of Health indicates that it has no basis for estimating the potential fiscal impact of this provision. The department anticipates the provision to have an insignificant indeterminate negative impact on department fee revenue. Section 4: Proposed Fiscal Impact High Middle Low Cash Recurring Cash Recurring Cash Recurring (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) List of affected Trust Funds: DOH s Medical Quality Assurance Trust Fund (s (8), F.S., and s , F.S.) and DOH s Radiation Protection Trust Fund (s , F.S.) Section 5: Consensus Estimate (Adopted: 04/11/2014): The conference adopted a negative insignificant impact. GR Trust Local/Other Total Cash Recurring Cash Recurring Cash Recur Cash Recurring (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) 506

7 Tax: DOH Professional Licensure Requirements and Fees Issue: Waiver of specified licensure fees for active duty military and veterans seeking specified certification Bill Number(s): CS/CS/HB 7015, Enrolled Entire Bill X Partial Bill: Sections 29 and 30 Sponsor(s): Smith Month/Year Impact Begins: July 2014 Date of Analysis: April 2, 2014 Section 1: Narrative a. Current Law: Under s , F.S., the Department of Health is authorized to issue temporary certificates for practice in areas of critical need to allopathic physicians meeting specified requirements. A certificate issued may be cited as the Rear Admiral LeRoy Collins, Jr., Temporary Certificate to Practice in Areas of Critical Need. An application for a temporary certificate must be accompanied by a $300 application fee. According to the Department of Health, the application fee and all licensure fees are waived for certificate holders who provide an affidavit from an employing agency that certifies that the certificate holder will be providing uncompensated care for low income residents. b. Proposed Change: Section 29 amends s , F.S., to delete reference to the certificate title, and to delete reference to physician military veterans. Section 30 creates s , F.S, to provide for a temporary certificate for active duty military and veterans practicing in areas of critical need, and for DOH to do so using a streamlined process. A certificate issued may be cited as the Rear Admiral LeRoy Collins, Jr., Temporary Certificate to Practice in Areas of Critical Need. All application fees, including the neurological injury compensation assessment, shall be waived for physicians seeking this certificate. Section 2: Description of Data and Sources According to the Department of Health, in FY12 13, there were 61 applications received for certificates for practice in areas of critical need. It is unknown how many of the 61 applications were active military or veterans; therefore, the impact cannot be determined at this time. The Department of Health indicates that it has no basis for estimating the potential fiscal impact of this provision. The department anticipates the provision to have an insignificant indeterminate negative impact on department fee revenue. Section 3: Methodology (Include Assumptions and Attach Details) The Department of Health indicates that it has no basis for estimating the potential fiscal impact of this provision. The department anticipates the provision to have an insignificant indeterminate negative impact on department fee revenue. Section 4: Proposed Fiscal Impact High Middle Low Cash Recurring Cash Recurring Cash Recurring (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) List of affected Trust Funds: DOH s Medical Quality Assurance Trust Fund (s (8), F.S.) It should also be noted that this provision impacts funding available to the Florida Birth Related Neurological Injury Compensation Association (s , F.S.). Section 5: Consensus Estimate (Adopted: 04/11/2014): The conference adopted a negative insignificant impact. GR Trust Local/Other Total Cash Recurring Cash Recurring Cash Recur Cash Recurring (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) 507

8 Tax: DOH Professional Licensure Requirements and Fees Issue: Waiver of specified licensure fees for active duty military and veterans seeking specified certification Bill Number(s): CS/CS/HB 7015, Enrolled Entire Bill X Partial Bill: Sections 31 and 32 Sponsor(s): Smith Month/Year Impact Begins: July 2014 Date of Analysis: April 2, 2014 Section 1: Narrative a. Current Law: Under s , F.S., the Department of Health is authorized to issue temporary certificates for practice in areas of critical need to osteopathic physicians meeting specified requirements. A certificate issued may be cited as the Rear Admiral LeRoy Collins, Jr., Temporary Certificate to Practice in Areas of Critical Need. An application for a temporary certificate must be accompanied by a $300 application fee. According to the Department of Health, the application fee and all licensure fees are waived for certificate holders who provide an affidavit from an employing agency that certifies that the certificate holder will be providing uncompensated care for low income residents. b. Proposed Change: Section 31 amends s , F.S., to delete reference to the certificate title, and to delete reference to physician military veterans. Section 32 creates s , F.S, to provide for a temporary certificate for active duty military and veterans practicing in areas of critical need, and for DOH to do so using a streamlined process. A certificate issued may be cited as the Rear Admiral LeRoy Collins, Jr., Temporary Certificate to Practice in Areas of Critical Need. All application fees, including the neurological injury compensation assessment, shall be waived for physicians seeking this certificate. Section 2: Description of Data and Sources According to the Department of Health, in FY12 13, there were 61 applications received for certificates for practice in areas of critical need. It is unknown how many of the 61 applications were active military or veterans; therefore, the impact cannot be determined at this time. The Department of Health indicates that it has no basis for estimating the potential fiscal impact of this provision. The department anticipates the provision to have an insignificant indeterminate negative impact on department fee revenue. Section 3: Methodology (Include Assumptions and Attach Details) The Department of Health indicates that it has no basis for estimating the potential fiscal impact of this provision. The department anticipates the provision to have an insignificant indeterminate negative impact on department fee revenue. Section 4: Proposed Fiscal Impact High Middle Low Cash Recurring Cash Recurring Cash Recurring (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) List of affected Trust Funds: DOH s Medical Quality Assurance Trust Fund (s (8), F.S.) It should also be noted that this provision impacts funding available to the Florida Birth Related Neurological Injury Compensation Association (s , F.S.). Section 5: Consensus Estimate (Adopted: 04/11/2014): The conference adopted a negative insignificant impact. GR Trust Local/Other Total Cash Recurring Cash Recurring Cash Recur Cash Recurring (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) 508

9 Tax: DOH Health Professional Certification Fees Issue: Waiver of specified licensure fees for veterans and their spouses for a period of 60 months from discharge of the veteran Bill Number(s): CS/CS/HB 7015, Enrolled Entire Bill X Partial Bill: Section 33 Sponsor(s): Smith Month/Year Impact Begins: July 2014 Date of Analysis: April 2, 2014 Section 1: Narrative a. Current Law: Under s , F.S., the Department of Health shall waive the initial licensing fee, initial application fee, and initial unlicensed activity fee for military veterans applying for an initial radiologic personnel certification from the department within 24 months of an honorable discharge from any branch of the United States Armed Forces. This provision became effective July 1, b. Proposed Change: Section 33 amends s , F.S., to extend the eligible time period for the fee waiver for military veterans who are honorably discharged from 24 months to 60 months of discharge. In addition, the spouse of an eligible military veteran is permitted to obtain waiver of the same fees. Section 2: Description of Data and Sources The primary data for this analysis is from DOH s experience with the 24-month fee waiver implemented July The number of exemptions granted and the fiscal impact of those exemptions are used to model the potential impact of extending the exemption to 60 months. Population data from the Florida Demographic Estimating Conference is used to trend the data for the out years of the forecast. Section 3: Methodology (Include Assumptions and Attach Details) Assumptions for range of estimates: For LOW, assume experience to date For MEDIUM, assume 2.4 times LOW 60/24=2.4 For HIGH, assume doubling of MEDIUM For out years, increase the base numbers by the increase in the working age population per the Florida Demographic Estimating Conference. See attached worksheet. Section 4: Proposed Fiscal Impact High Middle Low Cash Recurring Cash Recurring Cash Recurring ($874) ($874) ($437) ($437) ($182) ($182) ($882) ($882) ($441) ($441) ($184) ($184) ($890) ($890) ($445) ($445) ($185) ($185) ($898) ($898) ($449) ($449) ($187) ($187) ($906) ($906) ($453) ($453) ($189) ($189) List of affected Trust Funds: DOH s Radiation Protection Trust Fund (s , F.S.) Section 5: Consensus Estimate (Adopted: 04/11/2014): The conference adopted a negative insignificant impact. GR Trust Local/Other Total Cash Recurring Cash Recurring Cash Recur Cash Recurring (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) (Insignificant) 509

10 3 4 Data, Sources, and Methodology for DOH Certification Fee Waiver Issue (section 33) 5 6 Per DOH, there have been the following fee waiver requests 7 over the 9 months that the 24 month waiver has been in place: Initial applications Initial licenses 8 Total 9 Requests 10 Not qualified 11 Qualified Fees waived in 9 month period of operation $ Fee waiver amount per approved waiver $ Number of approved fee waivers over 9 month period 3 17 Number per month 0 18 Number per year Annual fiscal impact of fees waived $ Assumptions for range of estimates and for out years: 24 For LOW, assume experience to date 25 For MEDIUM, assume 2.4 times LOW 26 60/24= For HIGH, assume doubling of MEDIUM For out years, increase base numbers by increase in 30 working age population per FL Demographic Est. Conf Proposed Fiscal Impact 38 High Medium Low $874 $437 $ $882 $441 $ $890 $445 $ $898 $449 $ $906 $453 $

11 3 4 Data, Sources, and Methodology for DBPR Licensure Fee Waiver Issue (section 26) 5 6 Per DBPR, there have been the following fee waiver requests 7 over the 15 months that the 24 month waiver has been in place: 8 Initial applications Initial licenses Total 9 Requests Not qualified Qualified Fees waived in 15 month period of operation $17, Fee waiver amount per approved waiver $ Number of approved fee waivers over 15 month period Number per month 8 18 Number per year Annual fiscal impact of fees waived $14, Assumptions for range of estimates and for out years: 24 For LOW, assume experience to date 25 For MEDIUM, assume 2.4 times LOW 26 60/24= For HIGH, assume doubling of MEDIUM For out years, increase base numbers by increase in 30 working age population per FL Demographic Est. Conf Proposed Fiscal Impact 38 High Medium Low $68,550 $34,275 $14, $69,167 $34,584 $14, $69,790 $34,895 $14, $70,418 $35,209 $14, $71,052 $35,526 $14,

12 3 4 Data, Sources, and Methodology for DOH Certification Fee Waiver Issue (section 27) 5 6 Per DOH, there have been the following fee waiver requests 7 over the 9 months that the 24 month waiver has been in place: 8 Initial applications Initial licenses Total 9 Requests Not qualified Qualified Fees waived in 9 month period of operation $23, Fee waiver amount per approved waiver $ Number of approved fee waivers over 9 month period Number per month Number per year Annual fiscal impact of fees waived $31, Assumptions for range of estimates and for out years: 24 For LOW, assume experience to date 25 For MEDIUM, assume 2.4 times LOW 26 60/24= For HIGH, assume doubling of MEDIUM For out years, increase base numbers by increase in 30 working age population per FL Demographic Est. Conf Proposed Fiscal Impact 38 High Medium Low $152,723 $76,361 $31, $154,097 $77,049 $32, $155,484 $77,742 $32, $156,884 $78,442 $32, $158,296 $79,148 $32,

13 Tax: Issue: Professional Geology Bill Number(s): CS for CS for SB404 X Entire Bill Partial Bill: Sponsor(s): Senator Grimsley Month/Year Impact Begins: 7/1/2014 Date of Analysis: 4/8/2014 Section 1: Narrative a. Current Law: Currently s , F.S., provides the Board of Professional Geologist to adopt rules, set fees for application, examination, certificate of authorization, late renewal, initial licensure, and licensure renewal for professional geologist. Fees are listed below. 1) The application feel shall not exceed $150 and shall be nonrefundable. 2) The examination fee shall not exceed $250 and shall be refundable if the applicant is found to be ineligible to take the licensure exam. 3) The application fee shall not exceed $150 and shall be nonrefundable. 4) The examination fee shall not exceed $250 and shall be refundable if the applicant is found to be ineligible to take the licensure examination. 5) The initial license fee shall not exceed $100. 6) The biennial renewal fee shall not exceed $150. 7) The fee for a certificate of authorization shall not exceed $350 and the fee for renewal of the certificate shall not exceed $350. 8) The fee for reactivation of an inactive license shall not exceed $50. 9) The fee for a provisional license shall not exceed $ ) The fee for application, examination, and licensure for a license by endorsement shall be as provided in this section for licenses in general. Currently under s , F.S., to be certified by the Board of Professional Geologists as eligible to take the national geologist examination, the applicant must: 1) Complete an application and submit fees. 2) Be at least 18 years old. 3) Cannot have committed any act or offense which constitutes disciplining a professional geologist. 4) Graduate from college with a degree in Geology or related science with completion of at least 30 semester hours of geological coursework, 24 of which must be at the 3 rd or 4 th year or graduate level. 5) Have 7 years of professional geological work experience OR have a minimum of 5 accumulative years experience in responsible charge of geological work. Responsible charge is defined in Rule 61G , F.A.C. as one who is accountable for and exercises direct control and personal supervision of oneself s and others geological work with initiative, skill and independent scientific judgment. The licensing examination is comprised of two parts: the Fundamentals of Geology and the Practice of Geology. Both tests are administered separately and scores are reported for each examination. b. Proposed Change: 1) Amends s (2), F.S., to allow the $250 examination fee to be apportioned to each part of the multi part geology licensure examination and shall be refundable in whole or part if an applicant is found to be ineligible to take any part of the examination. 2) Amends s (1), F.S., to add the term fundamentals (referring to fundamentals of geology) to the subject areas on which geology applicants should be tested in order to be licensed as professional geologists. 3) Amends s (1)(d)2., F.S., to add completion of 45 quarter hours of geological course work as equivalent to 30 semester hours of geological course work, for applicants who attended colleges or universities that record educational credits by quarter hours rather than semester hours. 4) Amends s (1)(e), F.S., to reduce the seven year experience requirement to five years of verified experience and eliminates the year for year teaching/research credit and two year undergraduate/graduate studies credit. 513

14 Tax: Issue: Professional Geology Bill Number(s): CS for CS for SB404 5) Amends the second option of 5 years of experience in responsible charge to require an applicant to obtain 5 years verified geological work experience in responsible charge of geological work as determined by the Board. 6) Creates s , F.S., to allow graduates of geology programs or students who have completed 30 semester hours or 45 quarter hours of geological coursework to take one part (fundamentals) of the multi part national geology exam without having to complete five years of experience to become registered as a geologist in training. Section 2: Description of Data and Sources The Department of Business and Professional Regulation estimated that there will be between 30 and 100 applicants per year to take the fundamentals examination. The exam fee is expected to be $150 plus a $75 application fee. Section 3: Methodology (Include Assumptions and Attach Details) The Department of Business and Professional Regulation estimated that there will be between 30 and 100 applicants per year to take the fundamentals examination. The exam fee is expected to be $150 plus a $75 application fee totaling $225 per applicant. The low revenue estimate is $6,750 ($150 examination fee X 30 = $4,500 plus $75 application fee X 30 = $2,250). The high estimate is $22,500 ($150 examination fee X 100 = $15,000 plus $75 application fee X 100 = $7,500). Section 4: Proposed Fiscal Impact High Middle Low Cash Recurring Cash Recurring Cash Recurring $22,500 $0 $6,750 $ $22,500 $0 $6,750 $ $22,500 $0 $6,750 $ $22,500 $0 $6,750 $ $22,500 $0 $6,750 $0 List of affected Trust Funds: None Section 5: Consensus Estimate (Adopted: 04/11/2014) The Conference adopted negative insignificant cash for the first two years. GR Trust Local/Other Total Cash Recurring Cash Recurring Cash Recurring Cash Recurring (Insignificant) 0.0 (Insignificant) (Insignificant) (Insignificant) 0.0 (Insignificant) (Insignificant)

15 Tax: Rental car surcharge / sales tax / local discretionary surtax Issue: Car sharing service (car rental less than 24 hours) pays $1 per usage Bill Number(s): PCS/SB484 x Entire Bill Partial Bill: Sponsor(s): Representative Nunez Month/Year Impact Begins: January 1, 2015 Date of Analysis: 4/11/2014 Section 1: Narrative a. Current Law: Car rentals are subject to $2.00 car surcharge per day for the first 30 days, except (4) exempt motor vehicles provided at no charge to people whose vehicles are being repaired, adjusted, or serviced by the entities providing the replacement vehicles. Under the current law, the rental car surcharge is subject to sales tax and local discretionary surtax b. Proposed Change: Amends s to allow a member of a car sharing service who used a motor vehicle as described in subsection (1) pursuant to an agreement with the car sharing service for less than 24 hours pay $1 per usage. A member of a car sharing service who uses the same motor vehicle for at least 24 consecutive hours shall pay a surcharge of $2 per day or any part of a day. Section 2: Description of Data and Sources DOR rental car surcharge data REC Dec 2013 Transportation conference, rental car day growth rates Partial rental car sharing service data Section 3: Methodology (Include Assumptions and Attach Details) Assuming 70% of the car sharing days are less than 24 hours Assuming the middle estimates are twice of the low since other counties may adopt the similar business practice Assuming the high estimates are twice of the middle estimates The first year s cash is 5/12 The previous conference adopted the average of high and middle estimates Section 4: Proposed Fiscal Impact Rental car surcharge High Middle Low Cash Recurring Cash Recurring Cash Recurring m 0.6m 0.1m 0.3m 0.1m 0.1m m 0.4m 0.2m m 0.5m 0.2m m 0.5m 0.3m m 0.6m 0.3m Sales tax m 0.02m 0.01m m 0.02m 0.01m m 0.03m 0.01m m 0.03m 0.02m m 0.04m 0.02m List of affected Trust Funds: Rental car surcharge and sales tax group Section 5: Consensus Estimate (Adopted: 04/11/2014) The conference adopted the average of the high and middle. GR Trust Local/Other Total Cash Recurring Cash Recurring Cash Recurring Cash Recurring (Insignificant) (Insignificant) (0.2) (0.5) (Insignificant) (Insignificant) (0.2) (0.5) (Insignificant) (Insignificant) (0.6) (0.6) (Insignificant) (Insignificant) (0.6) (0.6) (0.1) (0.1) (0.6) (0.6) (Insignificant) (Insignificant) (0.7) (0.7) (0.1) (0.1) (0.7) (0.7) (Insignificant) (Insignificant) (0.8) (0.8) (0.1) (0.1) (0.9) (0.9) (Insignificant) (Insignificant) (1.0) (1.0) 515

16 CS HB 140 Car-sharing service A B C D E F G H I J K HB 343 car-sharing service partial rental car days FY ,629 FY , % FY , % FY , % 0.14% CY ,301 FY , % 0.82% CY , % % of Miami-Dade rental days days Miami-Dade Pinellas Hillsborough Duval Orange Broward Palm Beach total 7 cnty state total state grwth FY ,376,984 1,195,010 6,064,757 3,324,684 15,859,891 9,360,974 4,068,704 50,251,004 66,800,000 FY ,659,927 1,183,431 5,716,797 3,225,780 15,163,999 9,396,453 3,921,777 49,268,164 63,400, % FY ,408,302 1,138,146 5,478,258 3,524,723 16,028,951 10,552,126 4,327,187 53,457,694 68,210, % FY ,579,975 1,464,105 6,706,257 3,731,595 16,916,760 11,296,764 4,399,534 58,094,991 74,800, % FY ,481,862 1,536,965 7,106,411 3,850,904 17,223,366 12,262,830 4,953,202 61,415,540 79,700, % average share based on FY 2011, FY 2012 and FY 2013 share 18.17% 1.86% 8.66% 4.99% 22.53% 15.32% 6.14% 77.66% REC 3/2014 Miami-Dade Pinellas Hillsborough Duval Orange Broward Palm Beach total 7 cnty state total growth FY ,500,389 1,585,353 7,388,580 4,254,155 19,215,160 13,065,063 5,239,521 66,248,221 85,300, % FY ,991,022 1,635,535 7,622,451 4,388,812 19,823,377 13,478,611 5,405,367 68,345,175 88,000, % FY ,481,656 1,685,716 7,856,321 4,523,469 20,431,594 13,892,160 5,571,214 70,442,129 90,700, % FY ,990,461 1,737,755 8,098,854 4,663,113 21,062,338 14,321,025 5,743,203 72,616,749 93,500, % FY ,481,095 1,787,937 8,332,725 4,797,770 21,670,555 14,734,573 5,909,049 74,713,703 96,200, % FY ,971,728 1,838,118 8,566,595 4,932,426 22,278,773 15,148,121 6,074,896 76,810,657 98,900, % LOW % of 7 MIDDLE % of 7 HIGH % of 7 Impact days 70% < 24 hrs $2.00 counties $2.00 counties $2.00 counties FY , , , % 582, % 1,164, % FY , , , % 716, % 1,432, % FY , , , % 903, % 1,807, % FY , , , % 1,076, % 2,153, % FY , , , % 1,258, % 2,516, % assuming the percentage of car-sharing service days to Miami-Dade county is 1.3%, 1.6%, 1.9%, 2.2% and 2.5% as low assuming 70% of those days are rented less than 24 hours Middle is twice of the low assuming the other six counties would follow the similar business model assuming High is twice as the Middle estimates Based on the industry information, 50% of the rental trips is less than one hour rental trips total $1/usage surcharge 6% LOW impact sales tax FY , , ,518 -$8,731 FY , , ,099 -$10,746 FY , , ,973 -$13,558 FY , , ,209 -$16,153 FY , , ,505 -$18,870 Middle FY , , ,037 -$17,462 FY , , ,199 -$21,492 FY , , ,946 -$27,117 FY , , ,418 -$32,305 FY , , ,010 -$37,741 High FY , , ,073 -$34,924 FY , , ,398 -$42,984 FY , , ,893 -$54,234 FY ,076,835 1,076,835-1,076,835 -$64,610 FY ,258,021 1,258,021-1,258,021 -$75,

17 Tax: Sales and Use Tax Issue: Aircraft Bill Number(s): HB821 Proposed Amendment X Entire Bill Partial Bill: Sponsor(s): Month/Year Impact Begins: July 1 st, 2014 Date of Analysis: April 11 th, 2014 Section 1: Narrative a. Current Law: Currently there is no maximum amount of tax that must be paid on aircraft. b. Proposed Change: The maximum tax imposed under section , as well as any discretionary sales surtax under section , is limited to $10,000 on the sale or lease in this state of any aircraft not in a fractional aircraft ownership program. Section 2: Description of Data and Sources Department of Revenue Annual Sales Data Department of Revenue Discovery Data March 2014 Revenue Estimating Conference Industry Data EDR 2009 Aircraft in Florida Report Section 3: Methodology (Include Assumptions and Attach Details) Using Department of Revenue Annual Sales Data we found the annual sales tax collected for Kind Code 27. Then using industry data we calculated a weighted average cost of planes sold in Florida. We then found the tax currently paid for each plane, and then calculated the difference between the current tax and the $10,000 maximum tax. Using the Annual Department of Revenue Recovery Data we found the average value of planes, used this to calculate the current tax paid, and then found the difference between current tax and the $10,000 maximum tax. Using this data we calculated the estimated recovery amount and then we found the reduction in recovery. We then took 43% both reductions of recovery to account for the percentage that consists of aircraft sales, as stated in EDR 2012 Aircraft report. The high is 85.9% of taxable sales collected in , the low is 83.2% and the middle is the average of the high and the low. The year adds the reduction in recovery (E22) and the years are grown by percentage growth in other durables. Section 4: Proposed Fiscal Impact High Middle Low Cash Recurring Cash Recurring Cash Recurring $(14.1 M) $(14.1 M) $(14.0 M) $(14.0 M) $(13.9 M) $(13.9 M) $(15.1 M) $(15.1 M) $(15.0 M) $(15.0 M) $(14.9 M) $(14.9 M) $(16.0 M) $(16.0 M) $(15.8 M) $(15.8 M) $(15.8 M) $(15.8 M) $(16.8 M) $(16.8 M) $(16.7 M) $(16.7 M) $(16.6 M) $(16.6 M) $(17.6 M) $(17.6 M) $(17.5 M) $(17.5 M) $(17.5 M) $(17.5 M) List of affected Trust Funds: Sales and Use Tax Grouping Section 5: Consensus Estimate (Adopted: 04/11/2014): The Conference adopted the low with 2% growth. The impact was adopted based on a review of DOR s historic discovery data, filtered kind code data, a tax return analysis on leasing, and national/state sales data. GR Trust Revenue Sharing Local Half Cent Cash Recurring Cash Recurring Cash Recurring Cash Recurring (11.4) (11.4) (Insignificant) (Insignificant) (0.4) (0.4) (1.1) (1.1) (11.7) (11.7) (Insignificant) (Insignificant) (0.4) (0.4) (1.1) (1.1) (12.0) (12.0) (Insignificant) (Insignificant) (0.4) (0.4) (1.1) (1.1) (12.1) (12.1) (Insignificant) (Insignificant) (0.4) (0.4) (1.2) (1.2) (12.4) (12.4) (Insignificant) (Insignificant) (0.4) (0.4) (1.2) (1.2) 517

18 Tax: Sales and Use Tax Issue: Aircraft Bill Number(s): HB821 Proposed Amendment Local Option Total Local Total Cash Recurring Cash Recurring Cash Recurring (Insignificant) (Insignificant) (1.5) (1.5) (12.9) (12.9) (Insignificant) (Insignificant) (1.5) (1.5) (13.2) (13.2) (Insignificant) (Insignificant) (1.5) (1.5) (13.5) (13.5) (Insignificant) (Insignificant) (1.6) (1.6) (13.7) (13.7) (Insignificant) (Insignificant) (1.6) (1.6) (14.0) (14.0) 518

19 Trade-A-Plane Website Nat'l Sales Total Sales Tax for $10,000 Cap Nat'l Sales Total Sales Tax For $10,000 Cap Nat'l Sales Total Sales Tax For (assumes stock distributes = to used offerings) Piston FL Piston* Annual Sales at: Sales Tax Loss Turbo Prop FL Turbo Annual Sales at: Sales Tax Loss Jet FL Jet Annual Sales at: Sales Tax Loss Distrbution 2,262 18, % Distribution 182 1, % Distribution 178 1, % Bracket Midpt or less , , , or less , , , or less , , , or less , , , , or less , , , , or less , , , or less , , , or less , , or less , or less , or less , , or less , or less , or less , or less , , or less ,177 8, , , or less ,490 36, or less ,312 28, , ,886 2, or less ,896 41, ,699 1, or less ,997 56, ,276 3, or less ,615 73, ,863 6, ,496 4, or less ,233 91, or less , , ,966 9, ,959 3, or less , , ,414 10, ,047 8, or less , , ,692 39, ,968 20, or less , , ,001 16, ,405 12, or less , , ,176 74, ,484 87, or less , , , , , , or less , , , , , , or less , , ,993,187 2,708, ,163,735 2,862, or less , , ,065,339 1,006, or less ,332,447 2,240, ,977 10,266,617 2,268, ,046 5,684,228 4,854, ,976,889 7,081,358 *Includes all non-turboprop & Business Jet 1,518 22% 84 85% 96 89% cumulative 15,950,845 7,122,617 23,927,734 14,203,975 Sales Tax Value in Florida 23,727,504 1,602 Annual Plane Sales 1,698 Planes in Florida 21,220 Assumed Plane Values Below $167,000 1, % % all Planes 8.0% Piston 14,533 Assumed Above (Stock) % TurboProp 1,046 NOTE: + 21 above $6.5M up to $32.5M (used) Business Jet 1,197 Delaware Registered Airplanes 12,217 Sales Inc Rotorcraft 1,021 If % "Assumed Above" Stock Equals Florida 3,270 Needed Add'l Sales at ~$167,000+ to Offset % Gliders 185 At 8.5% Flow Per Year 278 (no incentive at lower levels so would be disproportionate to those benefitting from the cap) Lighter-Than-Air Experimental 2,712 With 8% annual sales factor, assumed sales tax collections are generated on a base of 21, 220 registered planes Special Light-Sport 203 To reduce to a base of 15,448 to match assumed level of General Aviation planes, then need 11% annual sales factor. 519

20 HB Sales Tax Cap of $10,000 on the Sale of Planes A B C D E F 2012 Calendar Year Sales Data Analysis of NAICS Code Aircraft Leasing NAICS code Kind Code Number Sales Tax All 2544 $17,721,501 By Kind Code $16,447, $277, $996,886 Those where Gross sales equaled Taxable Sales 1682 $9,355,479 Those where gross sales =Taxable Sales and Sales Tax is Greater than $10, $7,955,321 Top 50 by sales tax remitted 50 $5,719,131 Those in top 50 that appeared to fit certain criteria 41 $4,678,052 Potential impact - top 50 (year 1)) -$4,268,052 Year 2 -$4,678,052 Extrapolated to all potential impact (Year 1) $5,260,778 Year 2 -$6,507,178 April 11, 2014 Impact Conference 520