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.
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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
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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
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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.
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m u n i c i p a l i t y e n a c t s a n o r d i n a n c e a f t e r A p r i l 1 , 2 0 1 8 , i n d i c a t i n g t h a t t h e m u n i c i p a l i t y w i l l
c o n t i n u e t h e r e g u l a t i o n o r b a n o f p l a s t i c b a g s , n o t w i t h s t a n d i n g s . 4 0 3 . 7 0 3 3 .
N e i t h e r H B 6 6 1 n o r t h e S e n a t e c o m p a n i o n , S B 9 6 6 h a v e b e e n h e a r d t o d a t e .
S o b e r H o m e s N e i t h e r b i l l w a s h e a r d t h i s w e e k . ( S B 3 2 6 b y S e n a t o r C l e m e n s , H B 2 1 b y R e p r e s e n t a t i v e
H a g e r ) A p r o p o s e d c o m m i t t e e s u b s t i t u t e w a s f i l e d i n t h e S e n a t e t h i s w e e k , t h a t o n c e p a s s e d , w i l l m a k e
t h e b i l l s v i r t u a l l y i d e n t i c a l . T h e S e n a t e P C S w o u l d i n c l u d e a d d i t i o n a l r e q u i r e m e n t s o f t h e c e r t i f i e d
r e c o v e r y r e s i d e n c e a d m i n i s t r a t o r . T h i s l e g i s l a t i o n d o e s t h e f o l l o w i n g :
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