HomeMy Public PortalAboutLTC 057-2015 - 2015 Florida Legislative Session - Week 3 ReportAAL HAS' OUR
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OFFICE OF THE VILLAGE MANAGER
NO. 057-2015 LETTER TO COUNCIL
TO: Mayor Martin Packer and Members of the Village Council
FROM: Jorge M. Gonzalez, Village Manager ��
DATE: March 23, 2015
SUBJECT: 2015 Florida Legislative Session — Week 3 Report
The purpose of this Letter to Council (LTC) is to transmit the 2015 Florida Legislative
Session — Week 3 report for the week of March 16 — 20, 2015 provided by Ron L. Book.
Please let me know if you need additional information.
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2015 Session
Week 3 Report
BUDGET — Late in the day on Friday, both the House and Senate released their overall budget bills. The
Senate budget is approximately $80.4 billion, and the House budget totals just under $76.2 billion. The
discrepancy in funding is twofold, and is within the health care arena. The Senate is intent on including
funding within the budget to draw down $2.8 billion in federal aid which would allow the state to extend
healthcare coverage to approximately 800,000 uninsured Floridians not eligible for the state's Medicaid
program. The Senate has also put forth a bill that would bring additional federal funding to assist
hospitals in paying for the indigent care provided. The House has not included these provisions or funding
for these, in their budget.
We will continue to keep you updated on issues as they move through the process. As bills continue to be
heard, we will add to our weekly reports. At the end of each week, we will send a comprehensive report
on the legislative session and issues affecting local governments. Included in this report, are the following
topics:
• Pension Reform
• Gaming
• Local Government Regulation— Various Issues
• Amendment 1 and Environment
• Red Light Cameras
• Taxi, Limousines and Uber - Preemption of Local Governments
• Film and Entertainment Incentives
• Health Insurance Coverage for Emergency Services
Should you have any questions regarding legislation or legislative action, please do not hesitate to call or
email us.
WATER PROJECTS AND BEACH RENOURISHMENT
As the legislative process moves forward, we continue to work with both Representative Albritton, Chair
of the House Natural Resources Appropriations Committee and the Senator Hays, Chairman of the Senate
Appropriations Subcommittee on General Government. As the Legislature restructures the State Budget
to focus Amendment 1 spending on the environment, water projects, beach renourishment will be front
and center. We continue to advocate for funding for water and beach renourishment projects and will
continue to update you as the budget process moves forward.
On Friday of Week 3, both the House and Senate put forth their first round of budget numbers. Specific to
local water projects, no list of projects has been released. The House has allocated $80,589,000 and at
this point, the Senate has not listed an amount. Regarding beach renourishment funding, the House has
allocated $40 million and the Senate, $25 million.
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
PENSION REFORM
FRS Pension Reform The news this week was that the House would not be taking up Florida Retirement
System pension reform, due to the release of a study which shows the cost of requiring new state
employees to move to a 401(k) system, to be much higher than anticipated.
Municipal Pension Reform remains on the table for action this Session. A number of municipal pension
reform bills are moving, and are included within this report.
Retirement HB 1279 by Representative Adkins revises Chapters 175 and 185, F.S., which provide
retirement system benefits for municipal firefighters and police officers. As you know, the Municipal
Firefighters' Pension Trust Fund and Police Officers' Pension Trust Fund are administered by a local
governing board of trustees that is created in participating cities and special fire control districts, and
subject to the regulatory oversight of the Division of Retirement.
The bill amends both chapters, revising the membership and responsibilities of the board of trustees as
follows:
• Provides that the board of trustees must consist of five members. Three members must be legal
residents of the municipality or special fire control district and may not be members, retirees,
beneficiaries, or payees of the pension plan.
• Provides for a term limit of eight consecutive years.
• For local law plans that provide benefits for both firefighters and police officers, it expands the
board membership to nine members instead of five members.
• Provides that five of the members must be appointed by the governing body of the municipality
or special fire control district, two must be firefighters, and two must be police officers.
• Provides additional duties for the board of trustees.
o Requires the board of trustees to provide a detailed accounting report of its expenses for
each fiscal year. The report must be submitted to the plan sponsor and the Department of
Management Services, and must be made available to the members of the plan.
o The board of trustees must operate under an administrative expense budget for each fiscal
year, provide the budget to the plan sponsor, and make it available to plan members. The
administrative expense budget must regulate the administrative expenses of the board of
trustees. The budget, including any budget amendments, is not effective until approved
by a majority vote of the plan sponsor.
o Requires the board of trustees to establish qualifications for the plan administrator. The
bill provides minimum qualifications that the board of trustees must consider when
establishing qualifications for the position.
• Provides that a plan that has an assets to liabilities ratio, utilizing the most recent actuarial report,
of 75 percent or less, must, every three years, conduct an internal audit of the plan's management
and accounting practices and investments.
• In addition, the bill provides that the changes made in the act apply to a local law plan created by
special act before May 27, 1939.
HB 1279 passed the House Committee on Government Operations Subcommittee, 7 — 5.
Publicly Funded Retirement Plans SB 242 by Senator Brandes, summarized in the week 2 report, was
not heard this week. However, the companion bill was heard and is summarized below.
Publicly Funded Retirement Plans HB 1309 by Representative Drake requires local government
pension plans, when conducting the actuarial valuation of the plans, to use the mortality tables used in
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either of the two most recently published actuarial valuation reports of the Florida Retirement System,
including the projection scale for mortality improvement. It requires appropriate risk and collar
adjustments to be made based on plan demographics. The bill requires the tables to be used for
assumptions for preretirement and postretirement mortality. The bill also revises the mortality tables used
in the actuarial disclosures in financial statements submitted to the Department of Management Services.
HB 1309 passed the Government Operations Subcommittee, 7 — 3.
Local Government Pension Reform: SB 172 by Senators Bradley and Ring, was summarized in our
Week 1 and Week 2 Session Reports, however SB 172 was not heard this week.
Local Government Pension Reform HB 341 by Representative Cummings — During week 2, the
Government Operations Subcommittee adopted a strike -all amendment, which does the following:
• Revises the definition of "base premium tax revenues" to mean the revenues received during the
2013 calendar year, rather than the 1997 calendar year. For a municipality or special fire control
district that did not receive premium tax revenues during 2013, the base premium tax revenues
are those revenues received during the second calendar year of participation.
• Revises how insurance premium tax revenues must be used. It amends the default formula for the
use of the insurance premium tax revenues if the parties cannot agree through mutual consent.
Rather than four silos of revenue, the committee substitute provides for two silos.
• Maintains a two percent minimum pension plan multiplier, rather than 2.75 percent.
• Clarifies that only active members of the plan may participate and vote for purposes of mutual
consent.
HB 341 was not heard this week.
GAMING
Racing Animals SB 226 by Senator Latvala - CS/SB 226 modifies requirements regarding prohibited
medication or drugging of racing animals (horses and greyhounds). Violations are no longer contingent
upon a person administering or causing a prohibited substance to be administered; the mere presence of a
prohibited substance in a racing animal is evidence of the violation. The fine for violations may be up to
$10,000 or the race winnings (purse or sweepstakes amount), whichever is greater. Prosecutions must be
started within 90 days of the race date.
The bill sets forth the Division of Pari-Mutual Wagering responsibilities and duties regarding collecting
and testing samples from animals. The bill requires the Division to adopt rules regarding the use and
allowed levels of medications, drugs, and naturally occurring substances in racing animals, as listed by
the Association of Racing Commissioners International (ARCI), requires the division to adopt rules that
include a classification system for drugs and incorporates ARCI's Penalty Guidelines for drug violations
and eliminates a limitation on the testing methodology that may be used to screen samples for prohibited
substances.
The fine for violations may be up to $10,000 or the race winnings (purse or sweepstakes amount),
whichever is greater. The current provisions that allow the division to revoke or suspend the violator's
license, require the full or partial return of the purse sweepstakes and race trophy, or impose any
combination of the fine and other penalties, are not changed.
CS/SB 266 partially addresses the division's concern with shortening the existing deadline to initiate
prosecutions of violations from 2 years from the date of the race to only 60 days, and provides that
initiation of prosecutions must be within 90 days after the violation.
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SB 226 passed Appropriations committee 19 — 0 this week.
The companion bill, HB 239 by Fitzenhagen has passed its committees and is ready for floor action.
Gaming HB 1233 by Representative Young — This is an omnibus gaming bill that comprehensively
addresses gaming in Florida. This bill is expected to be work shopped next week. The bill does the
following:
• Allows two destination resort licenses for Florida. The bill provides incentives for resort casinos
to buy existing permits instead of obtaining new ones. Those casinos would also have to make a
$2 billion capital investment and pay a minimum of $175 million in taxes per year, gain the
support of local governments via referendum . 10 % of the resort casino's floor space would be
dedicated to games.
• Decouples greyhound racing and gambling.
• Dog tracks would be required to report animal injuries
• Creates a new Department of Gaming Control which would oversee all gambling related
activities. This would replace and expand on the Division of Pari-Mutuel Wagering and would be
funded through a new trust fund created by HB 1237
• Reduces existing pari-mutuel tax rate from 35 % to 25 %
• Ends all tax credits for dog tracks and allows four tracks to operate in the state
• Palm Beach and Lee counties could also operate slot machines at their dog tracks or at stand-
alone facilities. (each county has passed a referendum for slot machines.)
• Create a moratorium on new gambling permits.
Greyhound Racing Injuries SB 2 by Senator Sobel - The "Victoria Q. Gaetz Racing Greyhound
Protection Act;" requires injuries to racing greyhounds to be reported on a form adopted by the Division
of Pari-mutuel Wagering in the Department of Business and Professional Regulation.
SB 2 passed the Senate with a vote of 38-0, and is in messages to the House. The companion bill is HB
129 by Representative Moskowitz, it has not yet been heard.
Contraband Forfeiture SB 440 by Senator Bean and HB 1131 by Representative Harrell, would require
an arrest of an individual before seizure or forfeiture of property can occur, under the Florida Contraband
Forfeiture Act. Neither bill has been heard.
LOCAL GOVERNMENT REGULATION
Disposable Plastic Bags HB 661 by Representative Richardson and co -sponsored by Representatives
Geller, Jacobs, Rehwinkel Vasilinda, Rodriguez (J), Watson (C) would authorize local governments, with
a population of fewer than 100,000, to establish pilot programs for regulation or ban of disposable plastic
bags. A total preemption of local government regulation of plastic bag use was passed in the 2008 regular
Session.
This bill requires that a municipality (of fewer than 100,000) who establishes a pilot program, shall do the
following:
• By December 31, 2015, enact an ordinance for the regulation or ban of disposable plastic bags
that begins January 1, 2016, and expires June 30, 2018. Such ordinance may not include any new
taxes or fees on the use or distribution of disposable plastic bags.
• Collect data pertaining to the impact of the ban.
By April 1, 2018, submit a report on the impact of the ban to the governing body of the
municipality at a public hearing that is open to comments from the public.
Provide a copy of the report to the department.
A municipality may continue to regulate or ban disposable plastic bags after June 30, 2018, if the
municipality enacts an ordinance after April 1, 2018, indicating that the municipality will
continue the regulation or ban of plastic bags, notwithstanding s. 403.7033.
Neither HB 661 nor the Senate companion, SB 966 have been heard to date.
Sober Homes Neither bill was heard this week. (SB 326 by Senator Clemens, HB 21 by Representative
Hager) A proposed committee substitute was filed in the Senate this week, that once passed, will make
the bills virtually identical. The Senate PCS would include additional requirements of the certified
recovery residence administrator. This legislation does the following:
• Defines a "certified recovery residence" as a recovery residence that holds a valid certificate of
compliance and is actively managed by a certified recovery residence administrator, as opposed
to the underlying bill in which either condition would suffice;
• Includes "sexual offender/predator registry complaint policy" in the -list of documents that must
be submitted with an application to become a certified recovery residence;
• Removes the condition that a recovery residence seeking certification must submit a fee before
being inspected by a credentialing entity;
• Removes duplicative language relating to the requirement for a credentialing entity to establish
certification requirements for administrators according to nationally recognized standards;
• Requires all applications for recovery residence certification to include the name of the certified
administrator who will actively manage the residence;
• Requires the DCF to notify a credentialing entity of the eligibility of prospective officers of an
applicant recovery residence, based on the results of background screening, as opposed to the
underlying bill in which the DCF is required to notify a credentialing entity of the results of the
background screening;
• Requires a certified recovery residence to notify the credentialing entity within three business
days of the removal of the residence's administrator for any reason, and the residence is given 30
days to retain a new certified administrator;
• Requires the DCF to notify a credentialing entity of the eligibility of an individual seeking
recovery residence administrator certification, based on the results of background screening, as
opposed to the underlying bill in which the DCF is required to notify a credentialing entity of the
results of the background screening;
• Specifies that a certified administrator may not managed more than one recovery residence at a
time;
• Removes from the bill all provisions relating to recovery residences being qualified by a certified
administrator to receive referrals from substance abuse recovery service providers;
• Requires that any requests for exemptions to staff disqualifications or administrator ineligibility
must be submitted by a recovery residence within 20 days of the denial; and
• Allows service providers to refer patients to recovery residences only if the residence is certified
and is actively managed by a certified administrator, as opposed to the underlying bill in which
either condition would suffice.
Communication Services Tax (CST) CS/CS/SB 110 by Senator Hukill reduces the state
communications services tax (CST) rates by 3.6 percentage points. The standard state CST rate is reduced
from 6.65 percent to 3.05 percent, and the tax rate on direct -to -home satellite services is reduced from
10.8 percent to 7.2 percent.
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The bill holds local governments harmless. It changes the distribution percentages of CST revenue to
ensure that local governments continue to receive the same amount of revenue as they receive under
current law.
The Revenue Estimating Conference has determined that the bill will reduce General Revenue receipts by
$431.3 million in Fiscal Year 2015-2016, with a recurring decrease of $470.5 million. Local revenues will
decrease by $200,000 in Fiscal Year 2015-2016, but will increase in later years.
SB 110 passed the Finance and Tax committee, 7 — 0.
Local Government Construction Preferences HB 113 by Representative Perry would prohibit local
ordinances and regulations from restricting competition for award of construction services; requires state
college, school district, or other political subdivision to make disclosures in competitive solicitation
documents.
HB 113 passed Appropriations Committee; 19 — 9.
SB 778 by Senator Hays is the companion bill, has passed the Committee on Governmental Oversight and
Accountability committee, 3 — 2.
Local Government Services / Municipal Utility Services: HB 337 by Representative Mayfield would
have adversely affected a municipality's ability to regulate services provided outside of the municipal
boundaries. We have discussed this bill with the sponsor and the bill is going to be withdrawn from
further consideration. It may be reintroduced as a local bill this year that would only affect the Indian
River County area. Additionally, the Senate companion, SB 442 by Senator Altman was temporarily
postponed and is not expected to be heard.
Regional Planning Councils SB 484 by Senator Simpson (the House companion is HB 873 by
Representative Mayfield) as originally filed would have eliminated the 11 Regional Planning Councils.
Senator Simpson offered a strike -everything amendment that would reduce the RPCs from 11 to 10,
eliminate duties that are duplicative and obsolete, authorizes the legislature to be responsible for a
boundary review of the RPCs, and funds the RPCs with $2.5 million as has been allocated in past years.
The bill passed the Committee on Community Affairs by a vote of 7 — 0. The House companion, HB 873
has not been heard.
Enterprise Zones — The Florida Enterprise Zone (EZ) program set forth in statute, sunsets, or expires, in
2015. A strong majority of Senate and House Leadership feel that the EZ program needs to be wholly
rewritten or allowed to sunset. At this time the outlook continues to be uncertain.
Senate Enterprise Zone Discussion: This week, the Senate Finance and Tax committee had another
workshop discussion on the Enterprise Zone program, to discuss EZ economic benefits.
House Enterprise Zone Proposal — HB 7067 is the House economic development package that
addresses the Enterprise Zone program. HB 7067 does not reauthorize the state Enterprise Zone (EZ)
program, but allows for an optional and local only EZ type program without any state dollars. If a local
government creates a new EZ, the bill exempts newly established or expanding businesses from paying
local business taxes, impact fees, building permit fees and any local special assessments. Additionally, the
bill would exempt these businesses from complying with local sign ordinances, tree ordinances and would
prohibit local governments from issuing a citation or civil code ordinance violation within the newly
established local zone, for 24 months.
It prohibits local governments from imposing impact fees on small businesses of 12 or less employees
and buildings less than 6000 square feet. The bill also extends permit expirations for two more years,
issued by DEP or the Water Management District, and local development orders and building permits.
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. This bill has not been heard to date, and there is no Senate companion
filed.
AMENDMENT 1 & ENVIRONMENT
Amendment 1 Implementation: The series of bills filed by Senator Dean which begin to implement
Amendment 1, have moved through their committees and are ready for floor action. These bills
restructure the state's existing trust funds that are directed state dollars from the state documentary stamp
tax, and they create a new trust fund where 33 percent of the revenue generated by the tax is to be
diverted as per Amendment 1. These bills are SB 584, SB 586, SB 576, SB 578, SB 580 and SB 582.
The companion bills in the House, sponsored by Representative Boyd, also restructure the state's trust
funds in order to implement Amendment #1. These bills are moving through the committee process. They
are HB 1291, HB 1293, and HB 1295.
Affordable Housing/SB 586: This week, the bill was amended to adjust the percentage distributions for
the State Housing Trust Fund so that trust fund and the Local Government Housing Trust Fund receive
the same dollar amounts as they would have received under current law. Over the last several weeks, the
housing industry and the Affordable Housing Coalition, worked with leadership to make this adjustment.
This language that addresses the Trust Fund now more closely mirrors the House language.
Water Policy — HB 7003 sponsored by Chairman Caldwell of the House State Affairs committee was
heard in the House Appropriations committee during week 2. This same bill was work shopped this week
in the Senate Committee on Environmental Preservation and Conservation, to give the Senate committee
members an opportunity to hear from department experts on the issues within and surrounding this bill.
For a full summary of HB 7003, please refer to the Week 2 Report.
Chairman Caldwell , when presenting his bill, stated 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 bill 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.
HB 7003 passed the full House, 106 — 9, during week 2. As noted above, this House bill was work
shopped in the Senate committee on Environmental Preservation and Conservation on 3/18/15. The
committee heard from staff and various department experts on the bill.
Environmental Resources — SB 918 by Senator Dean, which is the Senate companion bill, will be heard
next week, 3/24/15 in the next committee meeting of the Environmental Preservation and Conservation
committee. The two bills have yet to come together on funding as well as septic tank remediation.
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RED LIGHT CAMERAS
Red Light Cameras: HB 7071 was not heard this week. This bill addresses the red light camera program
and would do the following:
• Prohibits a traffic citation if the driver is making a right-hand turn
• Requires that red light camera notices of violation be sent via certified mail, rather than first-class
mail
• Specifies that the portion of the red light camera fine retained by the local government must be
used for a public safety purpose, which includes operation of a red light camera program
• Requires local governments to include a summary of any private vendor contract for operation
and administration of red light camera programs in the annual report submitted to DHSMV
• Requires the Department of Transportation (FDOT) to submit an annual report that summarizes
the crash statistics for intersections with a red light camera
• Allows FDOT to inspect traffic control signals at intersections with a red light camera for
compliance verification
TAXI, LIMOUSINES AND UBER - PREEMPTION OF LOCAL GOVERNMENTS
Taxi, Chauffeured Limousines and Uber Preemption of Local Governments: HB 817 by
Representative Gaetz, was not heard this week. The bill does the following:
• This bill creates a preemption to the state for regulation of transportation network companies.
• Creates s. 316.680, F.S., called Transportation Network Companies, to establish definitions for
these companies, drivers and the service. It defines the term trip, defines that a transportation
network company or its driver is not a common carrier, meaning that these drivers do not provide
taxi or for -hire service.
• Requires that a person wishing to operate a transportation network company (TNC) obtain a state
permit to do so, for an annual permit fee of $5,000.
• Provides that if a TNC charges a fare, that it must disclose the fare calculation method on its
website or within the digital network software application service. Before the passenger enters the
driver's vehicle, the company would be required to provide the passenger with the applicable rates
being charged and the option to receive an estimated fare.
• Sets a process by which the driver and vehicle must provide identification on the company's
software application service or website, complete with a picture of the driver and the license plate
number of the motor vehicle before the passenger enters the driver's vehicle.
• Requires the Department to set up a process by which the TNC must provide a receipt for the
service, within "a reasonable amount of time".
• Requires that beginning October 1, 2015, companies and transportation network company drivers
must comply with automobile liability insurance requirements of the bill that set forth standards
for when a driver is logged in but not providing service, when the driver is providing service,
specifics on when the driver or the company is providing insurance, and that the company is
required to provide insurance if the driver's insurance is not active or has lapsed.
• Provides that a company must establish a zero tolerance policy for drug or alcohol use by the
driver.
• Establishes requirements for background and criminal checks for drivers.
• Require that a motor vehicle used by a driver to provide transportation network company service
meets the vehicle safety and emissions requirements for a private motor vehicle of the state in
which the vehicle is registered.
• Establishes prohibited conduct, a non discrimination policy for riders, and confidentiality of a
riders' personal identification information.
HB 817 passed the Transportation and Ports Subcommittee and Economic Affairs Committee, 9 — 3
during week 2.
Senator Brandes' companion bill, SB 1326 was not heard this week
Regulatory Minimum Prices: SB 990 by Senator Brandes creates the Florida Free Enterprise Act and
states that the intent of the Legislature is that the ability of the public to freely bargain for lawful goods
and services, not be restricted by governmental actions that establish regulatory minimum prices.
This is defined as meaning any value, percentage of a value, or rate of compensation established by an
ordinance, special act, rule, or other governmental action below which a lawful business or private
individual is prohibited from charging for lawful goods or services.
States that it is an unfair or deceptive regulatory act or practice, actionable under the Florida Deceptive
and Unfair Trade Practices Act, for any state agency, county government, municipal governing body,
other governmental entity, or special district, whether dependent or independent, as defined in s. 189.012,
or any agency or subsidiary derived thereof, to: restrict the right of the public to freely bargain for lawful
goods or services by establishing regulatory minimum prices for lawful goods or services; or create
classifications within a type of service which would apply differently to individuals and businesses who
compete or attempt to compete with each other to provide similar services.
The bill provides two exemptions: for minimum wages established by a governmental entity, and any
permit fee, license fee, application fee, or fee assessed in a regulatory fashion, such as an impact fee,
authorized under law.
Lastly, this bill sets forth a legal remedy for any person who is adversely affected by any regulatory
action adopted or caused to be enforced that is in violation of this section may file suit against such state
agency, county government, municipal governing body, other governmental entity, or special district,
whether dependent or independent, as defined in s. 189.012, or any agency or subsidiary derived thereof,
in any court of this state for declaratory or injunctive relief and for actual damages, as limited herein,
caused by the regulatory action.
A court shall award the prevailing plaintiff in any such suit: reasonable attorney fees and costs in
accordance with the laws of this state, including a contingency fee multiplier, as authorized by law; and
actual damages incurred, up to $1 million.
Neither SB 990 nor its companion, HB 789, have been heard.
FILM AND ENTERTAINMENT INCENTIVES
Film Industry Incentives: SB 1046 by Senator Detert was not heard this week. (summarized in the week
2 report). The House companion bill was heard this week, HB 451 by Representative Miller, and
proposes significant modifications to the current incentives and benefits the state offers for companies
within the film and entertainment industry. The bill modifies the processes by which companies may
receive tax credits and exemptions, and creates an additional incentive, the "Production Action Fund."
Currently, the Office of Film and Entertainment ("office") is housed within the Department of Economic
Opportunity ("department"). The bill changes the name of the office to the "Division of Film and
Entertainment" and houses the Division within the Enterprise Florida, Inc. In addition, among other
modifications, the bill proposes changes relating to the hiring of the Division's commissioner and the
requirements of the Division's strategic plan; and repeals the Florida Film and Entertainment Advisory
Council.
The bill proposes many changes to the current Entertainment Industry Financial Incentive Program. Some
of the proposed changes include the following:
• Amends the application and certification process for tax credits to be prioritized based on the
expected economic benefit of an applicant's production;
• Creates two application cycles per fiscal year, which consist of an application deadline and
review period;
• Limits the certification of credits to up to 50 percent for the first application cycle of a fiscal year;
• Limits the department's ability to certify tax credits for a fiscal year to no more than the allocated
tax credits for that fiscal year;
• Allocates $50 million of tax credits for Fiscal Year 2016-2017.
The bill creates the "Production Action Fund," which allows certain production companies to apply for
funds for a production or successive seasons of a production. The award may not exceed 30 percent of a
project's qualified expenditures and may not fund the wages paid to non-residents. The department and
the division must jointly review and evaluate applications to determine the eligibility of each project. The
department makes a recommendation to the Governor, who then makes a final decision on the award,
pending review by the Legislature. Some of the criteria the division and department must consider to
determine whether a project is eligible for an award includes the following:
• Proof of financing for the applied -for project
• Expected contributions to the state's economy
• The expenditures that will be made in the state and the amount of production time to take place in
the state
• The amount of capital investment to be made directly by the production company in this state
• The amount of promotion of Florida that the production company will provide for the state
• The number of state residents that will be employed and their wages.
Qualified Production Company Sales and Use Tax Exemption - The bill modifies the application
processes for a qualified production company under s. 288.1258, F.S., to receive a certificate of
exemption for the sales and use tax exemptions under ss. 212.031, 212.06, and 212.08, F.S. The changes
primarily relate to when and how a qualified production company may submit an application for such
certificate.
HB 451 passed the Economic Development and Tourism Subcommittee, 11 — 2.
HEALTH INSURANCE COVERAGE FOR EMERGENCY SERVICES
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.
SB 516 was not heard this week.
Health Insurance Coverage for Emergency Services: This week, the Insurance and Banking
Subcommittee adopted a strike -all amendment which revised the bill to: remove pre hospital
transportation service providers; remove references to participating provider from the negotiated rate and
cost -sharing provisions; to specify usual and customary reimbursement based on a community standard.
HB 681 passed the Insurance and Banking Subcommittee, 10 — 3
May 1, 2015 — 60" and last day of the regular session (Article III, section 3(d), Constitution)