HomeMy Public PortalAboutLTC 068-2015 - 2015 Florida Legislative Session - Week 5 ReportAM H OUR
F L O R 1 D A' S 1, A R A D I S F
OFFICE OF THE VILLAGE MANAGER
NO. 068-2015 LETTER TO COUNCIL
TO: Mayor Martin Packer and Members of the Village Council
FROM: Jorge M. Gonzalez, Village Manager
DATE: April 10, 2015
SUBJECT: 2015 Florida Legislative Session -Week 5 Report
The purpose of this Letter to Council (LTC) is to transmit the 2015 Florida Legislative
Session - Week 5 report for the week of March 30 thru April 3, 2015 provided by Ron L.
Book.
Please let me know if you need additional information.
Rondld L Book, P. fl.
low 0111 S
PROM l00Rl N0001100
2015 Session
Week 5 Report
Week 5 of the Legislative Session has ended. Both the House and Senate have debated and passed their
respective budgets. This sets the stage for budget conference to begin likely during week 7, with budget
staff continuously working behind the scenes. As we reported last week, the Senate budget of $80.4
billion, includes $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. Also, the
Senate has allocated $2.3 in additional federal funds, to assist hospitals in paying for indigent care.
The House leadership strongly disagrees with this policy decision, and has not made any provisions to do
the same and the House budget totals $76.2 billion. In fact, late Thursday, while presenting the budget in
the House, in his closing speech, House Appropriations Chairman, Representative Corcoran made it
abundantly clear that the House will not be considering the expansion of Medicaid under any
circumstance. In fact, Chairman Corcoran called on the entire membership of the House, ... "Come to
war with us on health care, against the status quo."
The affordable housing arena is another area with a significant discrepancy between the House and Senate
allocations. Within the Department of Economic Opportunity, the House has proposed to spend a total of
$122 million on affordable housing; $84 million to SHIP and $37.5 million to SAIL. The Senate budget
has appropriated $153.6 million to SHIP and $ 102.4 million to SAIL.
While it appears that the budget process is moving along, these enormous funding differences between
the House and Senate budgets amount to approximately $5 billion. The chatter of the possibility of a
special session throughout May and June is increasing, and would be needed to resolve the budget
differences which hinge completely on the area of health care funding.
The budget conference schedule will be set in the upcoming week, and will likely begin late in week 6 or
in the early part of week 7, through the weekend of April 17'h, and up to the point where the bill is printed
and distributed. At that time, by law, there is a 72 hour waiting period before a vote on the budget can be
taken. We will continue to update you on budget projects throughout the conference process.
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.
Harbour Centre 1188S1 N.E. 29th Ave., Ste. 1010 1 Aventura, FL 33180
Phone: 305.935.1866 1 Fax: 305.935.9737
104 Westlefferson Street I Tallahassee, FL 32301
Phone: 850.224.34271 Fax 850.224.3361
Law Enforcement Body Cameras
This week the Senate Committee on Rules considered SB 248, the law enforcement body camera/public
records exemption. This is the final Senate hearing for the bill, which was amended by the sponsor,
Senator Smith, after meeting with various stakeholders last week to hear concerns. The strike -all
amendment included changes requested by law enforcement associations, the ACLU and the First
Amendment Foundation. Meanwhile, we are continuing to communicate with the House regarding the
public records bill and the overall policy bill. Additionally, the Senate has introduced SB 7080, a
committee bill that is identical to HB 57, which is scheduled to be considered in the Senate Criminal
Justice Committee next week. We will continue communicating with our Delegation and leadership to
ensure passage of the bills.
Local Government Pension Reform SB 172 by Senators Bradley and Ring, has passed its final
committees and will be heard on the Senate floor on 4/8/15. 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.
Local Government Pension Reform HB 341 by Representative Cummings was not heard this week.
This bill:
• 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.
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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 was amended as follows:
• Reinstates the requirement that the fifth member of the board be elected by the other 4 members
• Requires that the fifth member of the board not be a member, retiree, beneficiary, or payee of the
pension plan
• Reduces the number of members appointed by the governing body of the plan sponsor from 3 to 2
• States that only municipalities having a population of 800,000 or more must have a board
consisting of 9 members if the plan provides benefits for both police and fire fighters
• Reduces the number of board members on a 9-member board appointed by the governing body of
the plan sponsor from 5 to 4
• Deletes the requirement that a plan administrator have a major in finance
• Requires that the board post its expense report on its website if it has one
• Changes the applicability date from May 27, 1939 to May 23, 1939, which and the result of
removing Coral Gables from the list of cities to which the provisions apply.
HB 1279 passed the Finance and Tax committee with a vote of 10 — 7.
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
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 Appropriations committee, 16 — 9.
GAMING
Racing Animals SB 226 by Senator Latvala and its companion bill, HB 239 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 and its companion bill HB 239, have passed all committees and are in the posture for full
and final passage.
Gaming HB 1233 by Representative Young 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.
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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 (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;
" R e q u i r e s t h e D C F t o n o t i f y a c r e d e n t i a l i n g e n t i t y o f t h e e l i g i b i l i t y o f a n i n d i v i d u a l s e e k i n g
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 c e r t i f i c a t i o n , b a s e d o n t h e r e s u l t s o f b a c k g r o u n d s c r e e n i n g , a s
o p p o s e d t o t h e u n d e r l y i n g b i l l i n w h i c h t h e D C F i s r e q u i r e d t o n o t i f y a c r e d e n t i a l i n g e n t i t y o f t h e
r e s u l t s o f t h e b a c k g r o u n d s c r e e n i n g ;
" S p e c i f i e s t h a t a c e r t i f i e d a d m i n i s t r a t o r m a y n o t m a n a g e d m o r e t h a n o n e r e c o v e r y r e s i d e n c e a t a
t i m e ;
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a d m i n i s t r a t o r t o r e c e i v e r e f e r r a l s f r o m s u b s t a n c e a b u s e r e c o v e r y s e r v i c e p r o v i d e r s ;
" R e q u i r e s t h a t a n y r e q u e s t s f o r e x e m p t i o n s t o s t a f f d i s q u a l i f i c a t i o n s o r a d m i n i s t r a t o r i n e l i g i b i l i t y
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" A l l o w s s e r v i c e p r o v i d e r s t o r e f e r p a t i e n t s t o r e c o v e r y r e s i d e n c e s o n l y i f t h e r e s i d e n c e i s c e r t i f i e d
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e i t h e r c o n d i t i o n w o u l d s u f f i c e .
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
C o m m u n i c a t i o n S e r v i c e s T a x ( C S T ) C S / C S / S B 1 1 0 b y S e n a t o r H u k i l l r e d u c e s t h e s t a t e
c o m m u n i c a t i o n s s e r v i c e s t a x ( C S T ) r a t e s b y 3 . 6 p e r c e n t a g e p o i n t s . T h e s t a n d a r d s t a t e C S T r a t e i s r e d u c e d
f r o m 6 . 6 5 p e r c e n t t o 3 . 0 5 p e r c e n t , a n d t h e t a x r a t e o n d i r e c t - t o - h o m e s a t e l l i t e s e r v i c e s i s r e d u c e d f r o m
1 0 . 8 p e r c e n t t o 7 . 2 p e r c e n t . I t i s i m p o r t a n t t o n o t e t h a t t h e b i l l l a n g u a g e h o l d s l o c a l g o v e r n m e n t s
h a r m l e s s . I t c h a n g e s t h e d i s t r i b u t i o n p e r c e n t a g e s o f C S T r e v e n u e t o e n s u r e t h a t l o c a l g o v e r n m e n t s
c o n t i n u e t o r e c e i v e t h e s a m e a m o u n t o f r e v e n u e a s t h e y r e c e i v e u n d e r c u r r e n t l a w . S B 1 1 0 p a s s e d t h e
F i n a n c e a n d T a x c o m m i t t e e , 7 0 .
H o u s e T a x P a c k a g e P r o p o s e d c o m m i t t e e b i l l , F T C 5 , w a s f i l e d a s H B 7 1 4 1 , a n d w a s p r e s e n t e d l a s t
w e e k i n t h e H o u s e . T h i s b i l l s p o n s o r e d b y t h e F i n a n c e a n d T a x C h a i r , R e p r e s e n t a t i v e G a e t z i s a n
o m n i b u s t a x c u t p a c k a g e t o t a l i n g a p p r o x i m a t e l y $ 6 9 0 m i l l i o n i n c u t s . D u b b e d t h e " N o T a x i s S a f e "
p a c k a g e , t h i s b i l l i n c l u d e s a v a r i e t y o f t a x r e d u c t i o n s , t h e l a r g e s t o f w h i c h i s t h e p r o p o s e d $ 4 7 0 . 5 m i l l i o n
i n c u t s t o t h e s t a t e p o r t i o n o f t h e C o m m u n i c a t i o n s S e r v i c e s T a x ( C S T ) . T h i s p r o v i s i o n c o n t i n u e s t o h o l d
l o c a l g o v e r n m e n t s h a r m l e s s . H B 7 1 4 1 p a s s e d t h e F i n a n c e a n d T a x c o m m i t t e e , 1 6 1 , a n d h a s b e e n
r e f e r r e d t o t h e H o u s e C a l e n d a r . W h i l e t h e r e i s n o s c h e d u l e d h e a r i n g a t t h i s t i m e f o r f l o o r a c t i o n , w e
e x p e c t t h a t t h i s b i l l w i l l p a s s t h e H o u s e a n d b e p a r t o f t h e b u d g e t n e g o t i a t i n g p r o c e s s .
L o c a l G o v e r n m e n t C o n s t r u c t i o n P r e f e r e n c e s H B 1 1 3 b y R e p r e s e n t a t i v e P e r r y w o u l d p r o h i b i t l o c a l
o r d i n a n c e s a n d r e g u l a t i o n s f r o m r e s t r i c t i n g c o m p e t i t i o n f o r a w a r d o f c o n s t r u c t i o n s e r v i c e s ; r e q u i r e s s t a t e
c o l l e g e , s c h o o l d i s t r i c t , o r o t h e r p o l i t i c a l s u b d i v i s i o n t o m a k e d i s c l o s u r e s i n c o m p e t i t i v e s o l i c i t a t i o n
d o c u m e n t s . H B 1 1 3 w a s n o t h e a r d t h i s w e e k . S B 7 7 8 b y S e n a t o r H a y s i s s c h e d u l e d t o b e h e a r d b y t h e f u l l
S e n a t e , 4 / 8 / 1 5 .
L o c a l G o v e r n m e n t S e r v i c e s / M u n i c i p a l U t i l i t y S e r v i c e s : H B 3 3 7 b y R e p r e s e n t a t i v e M a y f i e l d w o u l d
h a v e a d v e r s e l y a f f e c t e d a m u n i c i p a l i t y ' s a b i l i t y t o r e g u l a t e s e r v i c e s p r o v i d e d o u t s i d e o f t h e m u n i c i p a l
b o u n d a r i e s . W e h a v e d i s c u s s e d t h i s b i l l w i t h t h e s p o n s o r a n d t h e b i l l i s g o i n g t o b e w i t h d r a w n f r o m
f u r t h e r c o n s i d e r a t i o n . I t m a y b e r e i n t r o d u c e d a s a l o c a l b i l l t h i s y e a r t h a t w o u l d o n l y a f f e c t t h e I n d i a n
R i v e r C o u n t y a r e a . N e i t h e r H B 3 3 7 , n o r S B 4 4 2 w i l l b e h e a r d .
R e g i o n a l P l a n n i n g C o u n c i l s S B 4 8 4 b y S e n a t o r S i m p s o n ( t h e H o u s e c o m p a n i o n i s H B 8 7 3 b y
R e p r e s e n t a t i v e M a y f i e l d ) a s o r i g i n a l l y f i l e d w o u l d h a v e e l i m i n a t e d t h e I R e g i o n a l P l a n n i n g C o u n c i l s .
S e n a t o r S i m p s o n o f f e r e d a s t r i k e - e v e r y t h i n g a m e n d m e n t t h a t w o u l d r e d u c e t h e R P C s f r o m 1 1 t o 1 0 ,
e l i m i n a t i n g t h e W i t h l a c o o c h e e R e g i o n a l P l a n n i n g C o u n c i l a n d a l i g n i n g t h e a f f e c t e d c o u n t i e s i n t o o t h e r
R P C s , e l i m i n a t e d u t i e s t h a t a r e d u p l i c a t i v e a n d o b s o l e t e , a u t h o r i z e s t h e l e g i s l a t u r e t o b e r e s p o n s i b l e f o r a
b o u n d a r y r e v i e w o f t h e R P C s , a n d f u n d s t h e R P C s w i t h $ 2 . 5 m i l l i o n a s h a s b e e n a l l o c a t e d i n p a s t y e a r s .
- 5 -
This week, two amendments passed, which amend the bill as follows: first, the counties within the
Withlacoochee Regional Planning Council were realigned, and a second amendment was passed
eliminating the $2.5 million in funding. We continue to work through the Appropriations process for
funding.
The bill passed the Committee on Transportation, Tourism and Economic Affairs Appropriations by a
vote of 9 — 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. This bill passed its first committee with a vote of 8 — 3, in week 4. We expect a
redrafted strike all amendment to be released in the near future. Two of the highlights of concern in the
original bill, 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 to remove this issue.
Enterprise Zones — The Florida Enterprise Zone (EZ) program set forth in statute, sunsets, or expires, in
2015. Week 5 has ended without any leadership support in the House to reauthorize the Enterprise Zone
program as we know it. The Senate continues to support some form of reauthorization of this program.
However, the House leadership strongly opposes incentive programs whatsoever, will not accept any
program that is funded with state dollars. The House enterprise zone proposal, HB 7067, is the House
economic development package that addresses a different 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.
HB 7067, the House version of a locally funded enterprise zone program, passed the Transportation and
Economic Development Appropriations Subcommittee, 11 — 2.
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 their full Senate votes. 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. The House companion bills have moved through the
committee process and now moving through their full House votes. They are HB 1291, HB 1293, and HB
1295.
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. There was no action on either bill during week 5.
RED LIGHT CAMERAS
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 was not heard this week.
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
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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 I background and
criminal checks for contract drivers, as noted above. HB 817 passed its last committee in the House
during week 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.
FILM AND ENTERTAINMENT INCENTIVES
Film Industry Incentives: HB 451 by Representative Miller, proposes significant modifications to the
current incentives and benefits the state offers for companies within the film and entertainment industry.
The bill modifies the current processes by which companies may receive such tax credits.
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 proposes many changes to the current Entertainment Industry Financial Incentive Program.
Highlights of the bill 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; rather than the current first come first
serve basis.
• Creates two application cycles per fiscal year, which consist of an application deadline and
review period. This is meant to distribute tax credits throughout the year rather than once a year,
leaving the state unable to draw productions once the cycle is complete.
• 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
HB 451 passed the Finance and Tax committee, 12 — 5.
Film Industry Incentives: SB 1046 by Senator Detert passed the Senate Transportation, Tourism and
Economic Development Appropriations subcommittee this week with a vote of 9 — 0.
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The bill transfers the Department of Economic Opportunity's Office of Film and Entertainment, including
the Commissioner of Film and Entertainment and the Florida Film and Entertainment Advisory Council,
to Enterprise Florida, Inc. The office is established as the Division of Film and Entertainment in EFI and
maintains its current responsibilities, with the exception of administering the entertainment industry
economic development programs, which remains the responsibility of the Department of Economic
Opportunity. The bill reduces the number of council members serving on the Florida Film and
Entertainment Advisory Council from 17 to 11 and revises the powers and duties of the council. The bill
renames the Entertainment Industry Incentive Program as the Entertainment Industry Program.
The highlights of the bill are as follows:
• Creates a semi-annual application period, and limits the available tax credits to one half for each
6-month period; this gives the State the ability to extend tax credits twice a year, providing for
better control of the incentives.
• Sets aside 20 percent of funds available in each application period for "underutilized counties" for
4 months.
• Creates a tax credit bonus for 5 percent of qualified expenditures for productions that make at
least a $2 million capital investment that remains in the state after the production ends
• Reduces the total credit allowed to 25 percent of qualified expenditures, down from the current
allowance of 30 percent of qualified expenditures
The bill creates the Entertainment Industry Quick Action Fund Program to respond to extraordinary
opportunities to attract entertainment productions, subject to appropriation. Specifically, the bill:
• Requires the Division of Film and Entertainment and the DEO to evaluate applications for
fund awards based on 19 criteria, rather than the existing first come first serve allocation.
• Requires performance -based contracts
• Limits funding to 30 percent of planned qualified expenditures by the project
• Creates an approval process that requires legislative approval of larger award amounts — for
example, for projects requiring funding in the amount of between $2 million and $5 million,
the Governor is to provide a written description and evaluation of a project to the chair and
vice chair of the Legislative Budget Commission at least 10 days before giving final
approval. The recommendation must include the performance conditions that the project must
meet in order to obtain funds. Any award over $5 million, must be approved by the
Legislative Budget Commission before the funding is released
• Sets aside 50 percent of the fund to be awarded in the second 6 months of a fiscal year
• Creates the Entertainment Industry Quick Action Account in the State Economic
Enhancement and Development Trust Fund for awards and repayments
The bill clarifies the application and renewal process for the Entertainment Industry Sales Tax
Exemption Program.
The bill prohibits a production from receiving benefits from more than one program at the same time
(the Entertainment Industry tax credit and sales tax exemption programs, or the Entertainment
Industry Quick Action Fund Program).
The bill does not provide additional tax credits for the Entertainment Industry Program and does not
include an appropriation for the Entertainment Industry Quick Action Fund program created in the
bill.
M
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 temporarily postponed in Senate Banking and Insurance this week. The companion bill, HB
681 by Representative Trujillo, passed the Appropriations Committee, 25 — 1.
May 1, 2015 — 60" and last day of the regular session (Article III, section 3(d), Constitution)
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