Loading...
HomeMy Public PortalAboutLTC 060-2015 - 2015 Florida Legislative Session - Week 4 Report! UAL H OUR FLORI DA's.a PARADI SG OFFICE OF THE VILLAGE MANAGER NO. 060-2015 LETTER TO COUNCIL TO: Mayor Martin Packer and Members of the Village Council FROM: Jorge M. Gonzalez, Village Manager DATE: March 30, 2015 SUBJECT: 2015 Florida Legislative Session - Week 4 Report The purpose of this Letter to Council (LTC) is to transmit the 2015 Florida Legislative Session - Week 4 report for the week of March 23 - 27, 2015 provided by Ron L. Book. Please let me know if you need additional information. Ronald L, Book, P. R. low Off (b WINCH[ V0001100 2015 Session Week 4 Report Week 4 of the Legislative Session has ended and week 5 will begin tomorrow. We are almost half way through. This week in the House, substantive subcommittees have held their last rounds of scheduled meetings, and as Speaker Crisafulli has announced that he will not plan to have them schedule additional meetings this Session. What this means, is that bills that have not had a hearing and passed through their referenced subcommittees, will likely be dead for this Session. BUDGET — Tax Cuts and Health Care Funding Both the House and Senate Appropriations Committees met and passed their respective budgets, which sets us up each house to debate their budgets on the floor of the House and Senate, April 1. Also this week, Representative Gaetz, Chairman of the House Finance and Tax committee, held a press conference with a number of House members, announcing his "No Tax is Safe" tax cut package. If passed as is, tax cuts would total approximately $690 million. The list of taxes reduced is extensive, however the largest piece of his tax cut package is the proposed $470.5 million in cuts to the state portion of the Communications Services Tax (CST), while holding local governments harmless. As we reported last week, the Senate budget of $80.4 billion includes 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 indigent care provided. The House leadership does not agree with this policy decision and has not made any provisions to do the same. The House budget totals $76.2 billion. As noted above, on April 1st, both houses begin to hear their budgets in full session. When that is complete, the schedule for budget conference meetings will be set, and conference will begin. Budget conference will last roughly until the beginning of the last week of session. While it appears that the budget process is moving along, these enormous funding discrepancies between the House and Senate budgets, amount to approximately $5 billion. This budget chasm, as it is being described, has consumed the conversation here in the Legislative process, and if it is not addressed and solutions found, there is chatter of the possibility of a special session on the whole budget or on parts of the budget, in May. Harbour Centre 118851 N.E. 29th Ave., Ste. 1010 1 Aventura, FL 33180 Phone: 305.935.18661 Fax: 305.935.9737 104 West Jefferson Street 1 Tallahassee, FL 32301 Phone: 850.224.3427 1 Fax 850.224.3361 LEGISLATIVE ISSUES Included in this report are issues that affect local governments and the action on these issues this week. 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. Should you have any questions regarding legislation or legislative action, please do not hesitate to call or email us. Public Records/Audio or Video Recording Made by a Law Enforcement Officer SB 248 by Senator Smith and HB 57 by Representative S. Jones - We continue to work with the Senate and House sponsors on the law enforcement/body camera issue. During week 4, all the stakeholders met to finalize the language that will be amended in the bills' last committee stops. One of the primary issues to be addressed is the length of time for retention of records. Senator Smith is sensitive to the cost of keeping and maintaining records for long periods of time. We will continue working closely with the Senate sponsor on finalizing the language, at which point the House companion bill, HB 57, will be amended to match the Senate language. MUNICIPAL PENSION REFORM A number of municipal pension reform bills are moving, and are summarized below. Local Government Pension Reform SB 172 by Senators Bradley and Ring, passed its final committee this week unanimously. 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. Without mutual consent, all accumulated dollars from 1997 to 2013, for plans at 100% funded, are going 100% to special benefits. As stated, SB 172 passed its final committee this week, with a vote of 8 — 0. 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 -2- 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. 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 will be heard in the Finance and Tax Committee, on 3/31. 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 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 -3- 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 will be heard in the Appropriations committee on 3/31. 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. SB 226 will be heard in the full House on April 1. The companion bill, HB 239 by Fitzenhagen has passed the full House, with a vote of 112 — 0. Gaming HB 1233 by Representative Young — This is an omnibus gaming bill that we summarized extensively in the week 3 report. This bill was work shopped this week, in the House Regulated Industries committee. While no amendments or votes were taken, many of the industry players spoke and addressed various parts of the bill. It is likely that a modified bill will be drafted and presented in the near future, in both the House and Senate. 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. Similar language to HB 129 and SB 2 is also included in HB 1233, the omnibus gaming bill. 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. It is important to note that the bill language 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. SB 110 passed the Finance and Tax committee, 7  0. -5- House Tax Package — this week in the House, Representative Gaetz and several of his colleagues, have put together a tax cut package totaling approximately $690 million in cuts. This package does include the CST cuts encompassed in SB 110. The tax package is summarized above. 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 was not heard this week. SB 778 by Senator Hays passed the full Appropriations committee 12 — 5, during week 4. 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. Neither HB 337, nor SB 442 will 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. Growth Management HB 933 is an omnibus bill that addresses many issues within the growth management arena. Two of the highlights are as follows: Agricultural Enclaves — the language included in this bill would bypass the local authority to zone property classified according to this definition. We are working with the sponsor to remove this provision. Regional Planning Councils — this bill includes the substance of Senator Simpson's bill, and additionally includes an opt out provision which the Regional Planning Councils oppose. We are working with the sponsor on this issue. 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: During week 3, the Senate Finance and Tax committee had another workshop discussion on the Enterprise Zone program and 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. M 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. HB 7067, the House version of a locally funded enterprise zone program, is scheduled to be heard next week in the Transportation and Economic Development Appropriations Subcommittee, 3/31. 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 AND ENVIRONMENT Amendment 1 Implementation: The series of bills filed by Senator Dean which implement Amendment 1, are moving through second and third reading in the Senate. 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 have moved through the committee process and are ready for the floor. They are 1111 1291, HB 1293, and HB 1295. Affordable Housing/SB 586: This 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 and SB 918 by Senator Dean, are the two major water and natural resources policy reform bills that are being developed as a result of the Amendment 1 legislation. Both bills deal with 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. This week, SB 918 passed the Environmental Preservation and Conservation committee, 8 — 0. The two bills still differ on a small number of issues, of note are those related to septic tank remediation and septic tank system requirements which would potentially put the burden of cost on local governments. 1:7a1t111(H.YI[Y7:\ufal7R Red Light Cameras: HB 7071 was heard this week, and was amended to remove the prohibition on local government enforcement of citations for a right turn on red. The bill does still include the requirement that red light camera notices of violation be sent via certified mail, rather than first-class mail, which does create a cost to local governments. HB 7071 passed the Transportation and Economic Development Appropriations Subcommittee, 7 — 3. -7- TAXI, LIMOUSINES AND UBER - PREEMPTION OF LOCAL GOVERNMENTS Taxi, Chauffeured Limousines and Uber Preemption of Local Governments: HB 817 by Representative Gaetz, was heard this week and was amended to require a Level 1 background check of drivers applying to work for a transportation network company. 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. • 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. In its last committee hearing this week, the bill was amended to add specifically, Level 1 background and criminal checks for contract drivers, as noted above. HB 817 passed its last committee in the House this week, the Economic Affairs Committee, by a vote of 13 —4. Senator Brandes' companion bill, SB 1326 has not yet been heard Regulatory Minimum Prices: SB 990 by Senator Brandes and HB 789 by Representative Tobia, 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. Neither SB 990 nor its companion, HB 789, have been heard. Ee FILM AND ENTERTAINMENT INCENTIVES Film Industry Incentives: BB 451 by Representative Miller, will be heard next week, and will be modified by a proposed committee substitute which was filed late Friday. This PCS would accomplish the following: Division of Film and Entertainment - 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. Entertainment Industry Financial Incentive Economic Development Tax Credit Program — the bill would: • Amend the application and certification process for tax credits to be prioritized based on the expected economic benefit of an applicant's production • Create two application cycles per fiscal year, which consist of an application deadline and review period • Limit the certification of credits to up to 50 percent for the first application cycle of a fiscal year • Limit the department's ability to certify tax credits for a fiscal year to no more than the allocated tax credits for that fiscal year • Remove availability for additional tax credit awards HB 451 will be heard next in the Finance and Tax committee, on 3/31. SB 1046 by Senator Detert was not heard this week. 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 will be heard next week in Banking and Insurance. The companion bill, BB 681 by Representative Trujillo, will be heard in the Appropriations Committee, 03/31. May 1, 2015 — 601h and last day of the regular session (Article III, section 3(d), Constitution) we