HomeMy Public PortalAboutLTC 031-2015 - 2015 Florida Legislative Session - Committee Week Update 2.9-13.15.8AL H*SPBOUR
F LO RI DAARADI S E
OFFICE OF THE VILLAGE MANAGER
NO. 031-2015 LETTER TO COUNCIL
TO: Mayor Martin Packer and Members of the Village Council
FROM: Jorge M. Gonzalez, Village Manager
DATE: February 20, 2015
SUBJECT: 2015 Florida Legislative Session — Committee Week Update
The purpose of this Letter to Council (LTC) is to transmit the 2015 Florida Legislative
Session Committee Week Update for the week of February 9 - 13'h provided by Ron L.
Book.
Please let me know if you need additional information.
ROodld L, Book, P. R.
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COMMITTEE WEEK UPDATE
FEBRUARY 9 - 13, 2015
During the January and February committee weeks, we are already working on several issues
that are of interest to local governments, for example: pension reform, the enterprise zone
program, local government financial oversight, sober homes, vacation rentals, and cuts to the
communication services tax. As bills continue to be filed and heard throughout the upcoming
committee weeks, we will add to our weekly reports. Should you have any questions regarding
legislation or legislative action, please do not hesitate to call or email us.
Local Government Pension Reform: SB 172 by Senators Bradley and Ring, regarding local
government pension reform will be heard next week in the Senate Community Affairs
committee, 2/17/15, at 9:00 am. The bill addresses two areas of reform: the minimum benefit
accrual rate and the insurance premium tax revenues.
Minimum Benefit Accrual Rate: The bill changes the minimum benefit accrual rate from 2.0
percent to 2.75 percent annual accrual. However if a plan is below 2.75% accrual rate on July 1,
2014, the city must maintain the rate as of July 1, 2014. If the plan is currently above or goes
above the 2.75% accrual rate in the future, you must remain at 2.75% or greater.
Insurance Premium Tax Revenues: Senator Ring explained that this section of the bill is
bifurcated into two tracts. First, it addresses pre-1997 insurance premium taxes, where those
revenues are used to meet plan minimums. Over the 2013 level, of the additional premium taxes,
50% go to fund minimums and 50% go into a defined contribution plan.
And secondly, post-1997 to 2012, insurance premium taxes are used to pay for benefits above
the minimum. If the insurance premium tax revenue funds full cost of the benefits over
minimum, any excess revenue is to be used for 50% defined contribution plan and 50% plan
minimums. In addition, any new plans created after July 1 2014, must meet new plan
minimums, and 50% of taxes would be used for defined benefits and 50% to be used for defined
contribution.
By mutual consent of the negotiating entities — the members' collective bargaining representative
or, if there is none, by majority consent of the members' of the fund, and the consent of the
municipality (or special fire control district) — plans may deviate from the above use of premium
taxes, as long as minimums are met. If a plan is below minimums on October 1, 2012, it may
continue under mutual consent. Without mutual consent, all accumulated dollars from 1997 to
2013, for plans under 100% funded, are split 50% to the plans' participants and 50% to the UAL.
Harbour Centre 118851 N.E. 29th Ave., Ste. 1010 1 Aventura, FL 33180
Phone: 305.935.1866 1 Fax: 305.935.9737
104 West Jefferson Street I Tallahassee, FL 32301
Phone: 850.224.34271 Fax 850.224.3361
Without mutual consent, all accumulated dollars from 1997 to 2013, for plans at 100% funded,
are going 100% to special benefits.
Senator Ring explained, that this bill is meant to push the cities and unions to negotiate in good
faith toward mutual consent. If there is none, both the cities and unions will be subject to a more
strict interpretation. In other words, this bill removes the idea of `impasse' and forces the cities
and unions to work toward mutual consent.
The House companion bill, HB 341 sponsored by Representative Cummings, was filed on
January 19`h but has not been heard to date.
Health Insurance Coverage for Emergency Services: SB 516 by Senator Bean and
cosponsored by Senator Garcia, would place restrictions on the reimbursement amount an EMS
agency may receive for providing services. The bill prohibits a non -participating EMS provider
from collecting an amount in excess of the amounts determined by insurance companies as is
customary. EMS payments would be determined by either an insurance negotiated payment, an
amount calculated under the methodology used by the insurer to determine the reimbursement
amount to a nonparticipating provider for the service, reduced only by a coinsurance amount or
copayment, or the amount that would have been paid under Medicare for services. This bill has
not yet been heard, and has been referenced to the following committees: Banking and Insurance,
Health Policy and Appropriations. HB 681 the companion bill sponsored by Representative
Trujillo, was filed this week.
Enterprise Zone Program Sunset: The Florida Enterprise Zone (EZ) program set forth in
statute, sunsets, or expires, in 2015. Senator Detert, Chairman of the Commerce and Tourism
committee, has made it known that she would like a full revision of the program, if the program
sunset extension were to be extended. She has stated in past years and again recently, that she
feels the program needs to expire or needs an extensive overhaul. Leadership has remained
skeptical of the value of the Enterprise Zone program. Both the House and Senate have held
several workshops on the program. The Florida League of Cities and Florida Association of
Counties have continued to represent the benefits of the EZ programs across the state and
advocate in favor of the program extension. At this time the outlook is not certain. Florida
TaxWatch released its study and spoke in committee to recommend that the EZ program should
continue, making changes to the marketing strategy which should be more focused on jobs
created in beginning and second stage companies, and develop a multiple tiered system that
would be more suited to small and large businesses.
SB 392 sponsored by Senator Clemens substantially revises the policies and the purpose of the
Florida Enterprise Zone Act; it revises the conditions under which a county and/or municipality
may apply for the designation of an area as an enterprise zone; provides that the municipality or
county that applies for designation of an enterprise zone has jurisdiction over the enterprise
zone's administration and does extend the expiration date of the Florida Enterprise Zone Act.
This bill has been referenced to four committees and has not yet been scheduled for a hearing.
On Monday, February 16`h, the Senate Finance and Tax committee will discuss the Enterprise
Zone program.
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Regional Planning Councils: SB 484 filed this week by Senator Simpson, would eliminate the
11 Regional Planning Councils across the state, by eliminating duties and shifting
responsibilities to local government entities. This bill would also authorize local governments to
enter into agreements to create regional planning entities if they so choose.
The bill was referenced this week to the following committees: Community Affairs;
Appropriations Subcommittee on Transportation, Tourism, and Economic Development;
Appropriations. We expect a house companion to be filed in the next week or two.
Communication Services Tax (CST): Governor Scott has proposed a significant cut in CST,
which is the tax on cell phone and cable service, by $470 million or approximately 3.6%. His
proposal would cut more than a third of the money paid to the state in communication services
taxes, which are split between local and state governments. However, the Governor has indicated
that in his proposal, his plan is for the state to cover the local governments' revenue reductions,
and has said, "we are going to hold [local governments] harmless."
SB 110 has been filed by Senator Hukill which cuts the CST paid by customers, and reduces the
percentage of allocation of CST to the state from 63% to 54.5%, which in theory maintains the
current percentage allocated to local governments. However, as the overall intake is reduced, so
then is the portion that is allocated to local governments. This act would apply to taxable
transactions which are dated on or after January 1, 2016. This issue is a key part of the
Governor's overall tax cut package.
SB 110 will be heard next week in the Senate Committee on Communications, Energy, and
Public Utilities. The House companion legislation will be part of a House Finance and Tax
committee bill yet to be filed.
Sober Homes: SB 326 sponsored by Senator Clemens and HB 21 by Representative Hagar,
would create a voluntary certification program for recovery residences or "sober homes" that
function as halfway treatment houses. The bill requires the Department of Children and Families
to create a voluntary certification program for sober of "halfway" houses, administer a
certification program, and to publish a list of credentialed facilities to the public. Lastly the bill
would require background screening of recovery residence employees. HB 21 passed the House
Children, Families & Seniors Subcommittee, 11- 0.
SB 326 by Senator Clemens, will be heard in the Senate Committee on Children, Families, and
Elder Affairs on 2/19/15.
Gaming: This week, Representative Gaetz (R) and Representative Moskowitz (D) held a joint
press conference to discuss their bipartisan effort to remove requirements that greyhound tracks
that hold card games, also conduct greyhound races, known as decoupling. The objective of their
effort, is to reduce animal abuse to greyhound dogs. Representative Gaetz, Chairman of the
House Finance and Tax committee said that he would not support any gaming legislation coming
through his committee that did not include decoupling.
Greyhound Racing Injuries: SB 2 by Senator Sobel, would require injuries to racing
greyhounds to be reported to the Division of Pari-mutuel Wagering in the Department of
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Business and Professional Regulation. This bill has passed the Regulated Industries committee
11 — 0 and is now on the agenda for the Senate Committee on Fiscal Policy for next week. The
companion bill, HB 129 has been filed by Representative Moskowitz.
Gaming Compact: Regarding the Indian Gaming Compact, as we have reported, portions
Compact expire in 2015. Senate President Gardiner has made it clear it is not mandatory that the
legislature address or accept a renewal of the Compact. In fact, this week Speaker Crisafulli has
said that the House will not count on the revenue from the Compact as it puts together its budget.
If the expiring portions of the Compact were not to be renewed, this would mean that Florida
would no longer recognize the Tribe's right to have card games at their casinos and that Florida
would forfeit the revenue stream dedicated to the state coffers as a condition of the compact.
This amounts to an estimated $200 million per year. The Seminole Tribe however, this week has
said that they would continue offering card games.
Should the State choose to move toward a renewal of the expiring portions of the compact,
Florida gaming entities are positioning themselves to be part of the discussion and of the
outcome. Issues that would be in the discussion regarding Florida gaming entities are parity in
tax rate, parity in gaming product, decoupling of races, and slots availability to areas outside of
Miami -Dade and Broward County. This issue will be front and center through to the end of the
legislative session.
Vacation Rentals / Public Lodging Establishments: HB 4009 by Representative Eagle would
delete the term and definition of vacation rentals and transient apartments, from classification
and regulation as public lodging establishments. At this time there is no Senate companion filed.
Entertainment Industry Tax Credit Program: This week, the House Finance and Tax
Committee held a workshop on the entertainment industry tax credit program, convening a panel
of industry representatives that are experts in the financial aspects of the entertainment industry.
The panel discussed the benefits of the Entertainment Industry Tax Credit Program, other states'
incentive packages, and how the incentive package and tax credits largely drive the industry in
location selection for filming of movies.
Red Light Cameras: At this time, no bill has been filed to specifically prohibit red light
cameras, though committee meetings have only just begun, and we expect that an attempt to
preempt the regulation of red light cameras to the state will come about again this session. Of
note however, the following bill has been filed this week.
Taxi, Chauffeured Limousines and Uber Preemption of Local Governments: Last session,
we fought to prevent preemption of ride sharing entities, such as Uber and Lyft, from being
allowed to operate without complying with local government regulation of taxis and limousines.
Our firm expects this issue to heat up again this session. We will continue to keep you updated as
committees and session develops.
Amendment 1 Implementation: Senate President Gardiner announced the filing of six bills that
would restructure the state's multiple trust funds, to begin to implement Amendment 1. Senator
Dean has filed the following bills: SB 584, SB 586, SB 576, SB 578, SB 580 and SB 582. SB
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586 revises Florida Statute to ensure the distribution of 33 % of the documentary stamp tax
revenues go to the Land Acquisition Trust Fund.
Because the documentary stamp tax revenue will now be deposited and distributed from the
Land Acquisition Trust Fund, a number of trust funds will become obsolete. SB 584 terminates
those trust funds while still funding the various associated programs, who will going forward, be
funded out of the Land Acquisition Trust Fund. SB 576, SB 578, SB 580 and SB 582 restructure
the new Land Acquisition Trust fund within various departments that administer programs in
these areas.
Affordable Housing: As a result of SB 586 and its method of restructuring how doc stamp
money is distributed, the Florida Housing Coalition has taken the position of opposing SB 586.
The bill would significantly reduce funds that go into the housing trust funds, as the total
amount of doc stamp revenue collected, now 33% goes toward the Land Acquisition Trust Fund
first, then the distribution of remaining funds is allocated. The percentage is the same but the
amount of doc stamp funding is lower, therefore the distributed funds to the housing trust funds
is lower.
Local Government Construction Preferences: SB 778 by Senator Hays and HB 113 by
Representative Perry would mandate that any local construction project be open to all contractors
within the state if 20 % or more of the project's funds come from the state dollars. This bill
prohibits local ordinances and regulations from restricting a certified contractor's competition for
award of a contract for construction services. SB 778 has not been heard to date, but has been
referred to Community Affairs; Governmental Oversight and Accountability; and
Appropriations. The House companion, HB 113, passed the Government Operations
Subcommittee 9 — 4.
Water Policy — SB 7003 (PCB SAC 15-01) Chairman Caldwell of the House State Affairs
committee presented the proposed committee bill (PCB) addressing water policy. In his lengthy
presentation, the Chairman noted that the bill sets forth water policy that builds upon the existing
foundation of science -based assessment, and establishment of Total Maximum Daily Loads,
(TMDL), the Minimum Flows And Levels, (MFL), the Basin Management Action Plan, (BMAP)
and the recovery and prevention strategies to protect and restore our first magnitude springs. The
PCB codifies the Central Florida Water Initiative, strengthens the water supply planning process,
ensures timely implementation of strategies to meet the minimum flows and levels, modernizes
the northern Everglades and estuaries protection program. The PCB conveys a desire to focus on
solutions and eliminating duplicative processes that impede progress in each of those areas.
The Chairman presented his strike all amendment which was a further redraft of the bill, section
by section, which addresses the following:
Under current law, if water quality minimum standards are not being met, even though farmers
are implementing Best Management Practices (BMP), the Department of Agriculture and
Consumer Services (DACS) is the only authorized entity to reevaluate those BMPs. The PCB
authorizes DACS, the Department of Environmental Protection (DEP), and the Water
Management Districts (WMD) to each have the same ability to initiate the re-evaluation of those
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BMPs (specifically raised to the committee by the Nature Conservancy and the Audubon
Society).
The strike everything amendment clarifies that land owners who are complying with the
Everglades Agricultural Area (EAA) BMPs, are not required to implement duplicative DACS
BMPs, if their property is also located within the Lake Okeechobee watershed, unless the
agencies determine that new or improved BMPs are needed to meet the TMDL for the Lake
Okeechobee watershed.
In the Springs area, the Springs Protections measures in the original PCB, only applied to first
magnitude springs. This strike everything amendment expands the protections to all second
magnitude springs, located in a state or federal land, as well as the first magnitude springs.
The strike all amendment removes the requirement for DEP to adopt Springs Protection Zones,
which would be duplicative, the committee will be focusing efforts through this amendment on
the BMAP process. It sets a hard deadline of December 1, 2018, for DEP to establish the TMDLs
and BMAPs for the impaired priority Springs. (raised to the committee by the Sierra Club). The
strike all amendment also requires agricultural operations to implement BMPs if they are located
within the area of the BMAP.
Lastly, the language adds several requirements to the regional water supply planning process,
and shifts those requirements to the Water Management District's 5-year water resource
development work program. Requires the work programs to include an annual funding plan for
water resource and water supply development projects.
SCHEDULE: The committee week and Session dates are below for your review.
Remaining Interim Committee Meeting Week Scheduled
• February 16th — 20th, 2015
2015 Regular Legislative Session Dates
• March 3, 2015 — Day 1 of the regular session (Article III, section 3(b), Constitution)
• May 1, 2015 — 601h and last day of the regular session (Article III, section 3(d),
Constitution)
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