HomeMy Public PortalAboutLTC 069-2015 - 2015 Florida Legislative Session - Week 6 Report.SAL H BOUR
F LO RI D A ' S PARADISE
OFFICE OF THE VILLAGE MANAGER
NO. 069-2015 LETTER TO COUNCIL
TO: Mayor Martin Packer and Members of the Village Council
FROM: Jorge M. Gonzalez, Village Manager
DATE: April 14, 2015
SUBJECT: 2015 Florida Legislative Session —Week 6 Report
The purpose of this Letter to Council (LTC) is to transmit the 2015 Florida Legislative
Session — Week 6 report for the week of April 6 thru April 10, 2015 provided by Ron L.
Book.
Please let me know if you need additional information.
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2015 Session
Week 6 Report
As reported last week, the House and Senate are in a standoff regarding the budget conference. At this
point, allocations must be made, conference committees must be appointed and conference should begin
so that the budget can be finalized. However, as reported last week, the House and Senate budgets are
approximately $5 billion apart and the outcome at this point is uncertain.
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.
Law Enforcement Body Cameras
During week 5, 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
passed the Senate Criminal Justice Committee, 5 — 0. Next SB 7080 will be heard in the Fiscal Policy
committee. We will continue communicating with our Delegation and leadership to ensure passage of the
bills. SB 248 will be heard by the full Senate, 4/14. HB 57 will be heard in House Judiciary, 4/14.
Local Government Pension Reform SB 172 by Senators Bradley and Ring, has passed its final
committees and was scheduled to be heard on the Senate floor on 4/8/15, but was not heard and has not
been rescheduled. 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.
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: 850.224.3427 1 Fax 850.224.3361
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 is supported by the Florida
League of Cities, and accomplishes 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 passed the committee on State Affairs, 17 — 0.
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 during week 5 and will be heard in
the State Affairs Committee on 4/14.
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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 was not heard this week.
GAMING
Gaming SB 7088, a committee bill by Senate Regulated Industries, is the Senate version of the omnibus
gaming bill, and would do the following:
• Amends the existing Gaming Compact between the Seminole Tribe of Florida (Tribe) and the
State of Florida by extending the compact for 1 year. After that date, banked card games may no
longer be conducted by the Tribe without any time to phase the games out.
• Exempts slot machine gaming from the exclusive authorization granted to the Tribe at pari-
mutuel facilities in Palm Beach and Lee Counties. The Governor would be authorized and
directed to execute an amendment to the Gaming Compact as dictated in the bill.
• Decoupling related to greyhound permitholders, live racing would no longer be required in order
to conduct intertrack and simulcast wagering or to operate cardrooms. Tax credits are eliminated,
and the tax rate is reduced to 1.28 percent.
• If slot machine gaming is exempted from the Gaming Compact, pari-mutuel facilities in Palm
Beach and Lee Counties may apply for licensure as slot machine facilities. Revenue sharing with
the Tribe would be reduced by 90 percent of the revenue the State receives from the new slot
machine gaming, and 10 percent of the revenue would be transferred to thoroughbred tracks that
do not have slot machines for purses.
• Would require reporting of greyhound injuries to DBPR through a newly restructured reporting
program.
SB 7088 has passed Regulated Industries, 7 — 5 and has been referred to Appropriations and Rules
committees.
Gaming HB 1233 by Representative Young is an omnibus gaming bill that was substantially amended in
committee this week. The bill now does the following:
• Permitting greyhound permitholders would be allowed to conduct pari-mutuel wagering,
cardrooms and slots without the requirement of live races (Decoupling)
• Revokes dormant permits based on a permitholders failure to conduct live races, obtain an
operating license, or failing to pay taxes on handle for a period of more than two years
• Prohibits the issuance of new or additional permits, and prohibits the conversion or relocation of
permits
• Prohibits the transfer of a pari-mutuel permit or license
• Limits the number of pari-mutuel wagering operating licenses to no more than 40
• Prohibits new summerjai alai permits
• Removes tax credits for greyhound permitholders and revises the tax on handle for live
greyhound racing and intertrack wagering from 5.5% to 1.28%
• Creates s. 550.2416, F.S., to require injuries to racing greyhounds to be reported to the Division
of Pari-mutuel Wagering in the Department of Business and Professional Regulation
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" R e q u i r e s g r e y h o u n d p e r m i t h o l d e r s t o o f f e r s i m u l c a s t s i g n a l s i f o f f e r i n g i n t e r t r a c k w a g e r i n g
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r e q u i r e d t o o f f e r s a l e s i n o r d e r t o o b t a i n a l i m i t e d i n t e r t r a c k w a g e r i n g l i c e n s e
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h o u r s
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p e r f o r m a n c e s p e r y e a r f o r 2 5 y e a r s , i f t h e S e m i n o l e G a m i n g C o m p a c t i s a m e n d e d t o a l l o w f o r
s u c h f a c i l i t i e s t o o p e r a t e ( L e e a n d P a l m B e a c h C o u n t i e s )
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T h i s b i l l p a s s e d t h e R e g u l a t e d I n d u s t r i e s c o m m i t t e e w i t h a v o t e o f 1 4 4 .
G r e y h o u n d R a c i n g I n j u r i e s S B 2 b y S e n a t o r S o b e l - T h e " V i c t o r i a Q . G a e t z R a c i n g G r e y h o u n d
P r o t e c t i o n A c t ; " r e q u i r e s i n j u r i e s t o r a c i n g g r e y h o u n d s t o b e r e p o r t e d o n a f o r m a d o p t e d b y t h e D i v i s i o n
o f P a r i - m u t u e l W a g e r i n g i n t h e D e p a r t m e n t o f B u s i n e s s a n d P r o f e s s i o n a l R e g u l a t i o n . S B 2 p a s s e d t h e
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i n c l u d e d i n H B 1 2 3 3 , t h e o m n i b u s g a m i n g b i l l .
R a c i n g A n i m a l s S B 2 2 6 b y S e n a t o r L a t v a l a a n d i t s c o m p a n i o n b i l l , H B 2 3 9 m o d i f i e s r e q u i r e m e n t s
r e g a r d i n g p r o h i b i t e d m e d i c a t i o n o r d r u g g i n g o f r a c i n g a n i m a l s ( h o r s e s a n d g r e y h o u n d s ) . V i o l a t i o n s a r e n o
l o n g e r c o n t i n g e n t u p o n a p e r s o n a d m i n i s t e r i n g o r c a u s i n g a p r o h i b i t e d s u b s t a n c e t o b e a d m i n i s t e r e d ; t h e
m e r e p r e s e n c e o f a p r o h i b i t e d s u b s t a n c e i n a r a c i n g a n i m a l i s e v i d e n c e o f t h e v i o l a t i o n . T h e f i n e f o r
v i o l a t i o n s m a y b e u p t o $ 1 0 , 0 0 0 o r t h e r a c e w i n n i n g s ( p u r s e o r s w e e p s t a k e s a m o u n t ) , w h i c h e v e r i s
g r e a t e r . S B 2 2 6 a n d i t s c o m p a n i o n b i l l H B 2 3 9 , h a v e p a s s e d b o t h h o u s e s o n f i n a l p a s s a g e .
L O C A L G O V E R N M E N T R E G U L A T I O N
D i s p o s a b l e P l a s t i c B a g s H B 6 6 1 b y R e p r e s e n t a t i v e R i c h a r d s o n a n d c o - s p o n s o r e d b y R e p r e s e n t a t i v e s
G e l l e r , J a c o b s , R e h w i n k e l V a s i l i n d a , R o d r i g u e z ( J ) , W a t s o n ( C ) w o u l d a u t h o r i z e l o c a l g o v e r n m e n t s , w i t h
a p o p u l a t i o n o f f e w e r t h a n 1 0 0 , 0 0 0 , t o e s t a b l i s h p i l o t p r o g r a m s f o r r e g u l a t i o n o r b a n o f d i s p o s a b l e p l a s t i c
b a g s . A t o t a l p r e e m p t i o n o f l o c a l g o v e r n m e n t r e g u l a t i o n o f p l a s t i c b a g u s e w a s p a s s e d i n t h e 2 0 0 8 r e g u l a r
S e s s i o n .
T h i s b i l l r e q u i r e s t h a t a m u n i c i p a l i t y ( o f f e w e r t h a n 1 0 0 , 0 0 0 ) w h o e s t a b l i s h e s a p i l o t p r o g r a m , s h a l l d o t h e
f o l l o w i n g :
" B y D e c e m b e r 3 1 , 2 0 1 5 , e n a c t a n o r d i n a n c e f o r t h e r e g u l a t i o n o r b a n o f d i s p o s a b l e p l a s t i c b a g s
t h a t b e g i n s J a n u a r y 1 , 2 0 1 6 , a n d e x p i r e s J u n e 3 0 , 2 0 1 8 . S u c h o r d i n a n c e m a y n o t i n c l u d e a n y n e w
t a x e s o r f e e s o n t h e u s e o r d i s t r i b u t i o n o f d i s p o s a b l e p l a s t i c b a g s .
" C o l l e c t d a t a p e r t a i n i n g t o t h e i m p a c t o f t h e b a n .
" B y A p r i l 1 , 2 0 1 8 , s u b m i t a r e p o r t o n t h e i m p a c t o f t h e b a n t o t h e g o v e r n i n g b o d y o f t h e
m u n i c i p a l i t y a t a p u b l i c h e a r i n g t h a t i s o p e n t o c o m m e n t s f r o m t h e p u b l i c .
" P r o v i d e a c o p y o f t h e r e p o r t t o t h e d e p a r t m e n t .
" A m u n i c i p a l i t y m a y c o n t i n u e t o r e g u l a t e o r b a n d i s p o s a b l e p l a s t i c b a g s a f t e r J u n e 3 0 , 2 0 1 8 , i f t h e
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 .
H B 6 6 1 h a s n o t b e e n h e a r d . S B 9 6 6 p a s s e d t h e c o m m i t t e e o n E n v i r o n m e n t a l P r e s e r v a t i o n a n d
C o n s e r v a t i o n , 7 0 .
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;
• 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.
HB 21 passed the full House, 113 — 2. SB 326 is ready to be heard on the floor of the full Senate.
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 was not heard
this week.
House Tax Package — Proposed committee bill, FTC 5, was filed as HB 7141, and was presented last
week in the House. This bill sponsored by the Finance and Tax Chair, Representative Gaetz is an
omnibus tax cut package totaling approximately $690 million in cuts. Dubbed the "No Tax is Safe"
package, this bill includes a variety of tax reductions, the largest of which is the proposed $470.5 million
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in cuts to the state portion of the Communications Services Tax (CST). This provision continues to hold
local governments harmless. HB 7141 has passed the full House 112 — 3.
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 was retained on the calendar and
not heard this week.
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 CS/SB 484 by Senator Simpson was not heard this week.
Growth Management HB 933 is an omnibus bill that addresses many issues within the growth
management arena. This bill passed the House Transportation and Economic Development
Appropriations Subcommittee, 8 — 4 and is scheduled for a hearing in the House Economic Affairs
Committee, 4/14.
Two of the highlights of concern in the original bill, are as follows:
Agricultural Enclaves —language in this bill was removed that would have bypassed the local
authority to zone property classified according to this definition.
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.
Local Enterprise Zone Program — The Florida Enterprise Zone (EZ) program set forth in statute,
sunsets, or expires, in 2015. House Leadership has clearly stated that the EZ program will not reauthorize
any program that uses state dollars or incentives. The Senate continues to support some form of
reauthorization of this program. The House enterprise zone proposal, HB 7067, is the House economic
development package that addresses a different Enterprise Zone program. HB 7067 creates an optional
and local only, EZ type program. 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 will be heard next in Economic
Affairs Committee, 4/14.
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.
9M,
AMENDMENT 1 AND ENVIRONMENT
Amendment 1 Implementation: This series of bills filed by Senator Dean implements Amendment 1,
and restructures the state's existing trust funds that direct state dollars from the state documentary stamp
tax. A new trust fund is created so that 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. These bills are
part of the budget process.
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. Also as part of the budget process, neither
were heard this week.
RED LIGHT CAMERAS
Red Light Cameras: HB 7071 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 will be heard in the House Economic Affairs committee, 4/14.
TAXI, LIMOUSINES AND UBER - PREEMPTION OF LOCAL GOVERNMENTS
Taxi, Chauffeured Limousines and Uber Preemption of Local Governments: HB 817 requires 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,
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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.
Neither HB 817 nor SB 1326 was heard this week
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 was not heard this week.
Film Industry Incentives: SB 1046 by Senator Detert was not heard this week.
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
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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.
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. The companion bill, HB 681 by
Representative Trujillo, passed the Appropriations Committee, 25 — 1 during week 5.
May 1, 2015 — 60" and last day of the regular session (Article III, section 3(d), Constitution)
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