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HomeMy Public PortalAboutLTC 079-2015 2015 Florida Legislative Session - Week 8 ReportAAL H BOtJ FLORI UA'Shc PA RA DI SF OFFICE OF THE VILLAGE MANAGER NO. 079-2015 LETTER TO COUNCIL TO: Mayor Martin Packer and Members of the Village Council FROM: Jorge M. Gonzalez, Village Manager \ DATE: May 1, 2015 rU1 SUBJECT: 2015 Florida Legislative Session —Week 8 Report The purpose of this Letter to Council (LTC) is to transmit the 2015 Florida Legislative Session — Week 8 report for the week of April 20 thru April 24, 2015 provided by Ron L. Book. Please let me know if you need additional information. low 0111M PROMJ100o10110(101100 2015 Session Week 8 Report LEGISLATIVE ISSUES The legislature continues on with legislative issues and substantive bills. 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. Should you have any questions regarding legislation or legislative action, please do not hesitate to call or email us. Law Enforcement Body Cameras SB 248 has passed both houses and will soon be sent to the Governor. Senate 36 — 2, House 112 — 2. Below is a link to the final version of this bill. CS/CS/CS/SB, 1st Eng.: http://www.flsenate.gov/Session/Bill/2015/0248/BillText/er/PDF Municipal Pension Reform HB 341 by Representative Cummings and its companion SB 172 by Senators Bradley and Ring, has passed both the House and Senate and will soon be sent to the Governor. The final version of this bill is supported by the Florida League of Cities, and both the Police and Fire unions. This compromise is agreed to by all parties, including the police and fire unions, is beneficial to cities, and is a product of a five year focus on pension reform. The Governor is favorably inclined to this position as well. CS/SB 172, 1st Eng.: http://www.flsenate.gov/Session/Bill/2015/0172/BillText/er/PDF The provisions of that amendment are as follows: • Changes base premium revenues from the 1997 calendar year to the 2002 calendar year. • Includes transparency provisions related to a local pension fund Board of Trustees, requiring members to provide a detailed accounting reports of their expenses to the Department of Management Services (DMS), and to make them available online, and would require them to operate under an administrative expense budget. • Revises how insurance premium tax revenues must be used, and amends the default formula for the use of the insurance premium tax revenues if the parties cannot agree through mutual consent. • Increases the minimum plan multiplier for pension plan benefits to 2.75 percent, rather than 2 percent, but provides exceptions. • Naples letter For those cities who are operating under a Naples letter interpretation, this interpretation will be grandfathered in for three years, starting on the effective date of the bill. (July 1, 2015). Those cities who have contracts in place, would be able to finish that contract and go back into collective bargaining with the possibility of extending these existing provisions, as long as all sides agree. 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 Harbour Centre 118851 N.E. 29th Ave., Ste. 1010 1 Aventura, FL 33180 Phone: 305.935.1866I Fax: 305.935.9737 104 West Jefferson Street I Tallahassee, FL 32301 Phone: 850.224.3427 1 Fax 850.224.3361 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. Publicly Funded Retirement Plans HB 1309 passed the full House, 78 — 30, was amended in the Senate changing a reporting date, and will be voted on during week 9. As it was amended it must go back to the House for final passage. 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. During week 7, the bill was amended in State Affairs committee, and does the following • Removes the term limit restriction for board members. • Removes the restriction that prohibited the fifth member of the board from being a member, retiree, beneficiary, or payee of the plan. • Removes the requirement that the board provide a detailed accounting report of its expenses and make the report available online. • Removes the requirement that the board operate under an administrative expense budget. • Removes the qualification requirements for a plan administrator, which required at a minimum a specified degree and years of experience. HB 1279 passed the State Affairs Committee, 11 — 6 during week 7 GAMING Gaming SB 7088, a committee bill by Senate Regulated Industries, is the Senate version of the omnibus gaming bill, HB 1233 by Representative Young, as summarized in the week 7 report. At this time, it appears that gaming legislation has stalled. We will continue to report on developments during the upcoming last week of the regular session. 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. There is some discussion that this bill may be heard during week 9. 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 both houses and will soon be sent to the Governor. -2- LOCAL GOVERNMENT REGULATION Sober Homes HB 21 by Representative Hager SB 326 by Senator Clemens has passed both the House and Senate and will soon be sent to the Governor. House 113 — 2, Senate 39 — 0. 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. As this is a bill that has a substantial impact on the budget, this also remains unresolved. 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 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. As this is a bill that has a substantial impact on the budget, this also remains unresolved. Regional Planning Councils / Growth Management SB 1216, is the omnibus growth management bill that has passed this session. The companion is HB 933. House 83 — 31, Senate 39 — 0. The bill does the following as it pertains to RPCs: • Restructures the 11 Regional Planning Councils to 10, and reassigns counties in the panhandle to existing RPCs, it deletes several statutory responsibilities of the RPCs that are duplicative or unnecessary and removes the ability for counties to opt out of a Regional Planning Council ("RPC"). The bill further reinstates the Governor's authority to review and amend RPC boundaries. Link to the final language in CS/CS/SB 1216, 2nd Eng.: hftp://www.flsenate.pov/Session/Bill/2015/1216/BillText/er/PDF 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 has passed the House with a vote of 82 — 34. -3- 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. Disposable Plastic Bags HB 661 by Representative Richardson has not been heard. SB 966 passed the committee on Environmental Preservation and Conservation, 7 — 0, during week 6. 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. 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, therefore also at a standstill. 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. During week 7, the Economic Affairs Committee adopted a strike all amendment: The bill does the following: • Specifies the information a county or municipality that operates a traffic infraction detector must submit in its annual report to the DHSMV; • Requires DHSMV to provide notice to a county or municipality that is not compliant with the reporting requirements, as determined by the DHSMV. If the county or municipality is still not in compliance after 30 days from the date of the notice, the county or municipality must to remit its portion of revenues derived from the use of red light cameras to enforce ss. 316.074(1) and 316.075(1)(c)l., F.S., to the Department of Revenue, to be returned once the county or municipality has established compliance; Prohibits the issuance of a notice of violation or uniform traffic citation through the use of a traffic infraction detector not in compliance with all specifications developed by the FDOT; Requires a county or municipality to document, and make available to FDOT upon request, the alternative engineering countermeasures as recommended in publications by the ITE to reduce violations of ss. 316.074(1) and 316.075(1)(c)l., F.S., which the county or municipality considered and rejected, before a red light camera is installed. HB 7071 has passed all of its committees and is available for House floor action. TAXI, LIMOUSINES AND UBER - PREEMPTION OF LOCAL GOVERNMENTS Taxi, Chauffeured Limousines and Uber Preemption of Local Governments: HB 817 by Representative Gaetz was heard and amended on the House floor this week, and now does the following: • This bill creates a preemption to the state for regulation of transportation network companies. • Representative Peters successfully amended the bill on the floor to require a Level 2 background check of drivers applying to work for a transportation network company. • Defines transportation network company (TNC). 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. • Establishes a licensing process for TNC drivers • Provides for mandatory insurance requirements. These requirements are defined as in the event a driver is on the way to pick up a passenger, or has a passenger in the car, a mandatory $1 million insurance policy is required. If a driver is not on the way to pick up a passenger nor is there a passenger in the car, but does have the TNC software app open, the insurance required would be as follows; $50k per individual in the car, $100k per occurrence, $20k for any property damage. In the strike all amendment, the insurance required could be from a FIGA approved company or the TNC could also have a surplus line carrier authorized to do business in Florida. Regarding the $1 million in insurance, in the strike everything amendment, the language revises previous bill versions to require that this policy be the primary policy in the event of an accident, and begins with the first dollar of the claim. However, the dollar amount of insurance required does not change or increase, with an accident occurring with a larger vehicle with multiple passengers. • Representative Miller passed an amendment that would ensure that airports could continue to charge appropriate fees for the operation of TNCs on airport property. HB 817 was amended on the floor on second reading and remains temporarily postponed on third reading. 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. -5- 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 has been on the House special order calendar and temporarily postponed twice. The Senate companion, SB 1046 has not been heard by the Senate Appropriations committee at this point in session, and as an incentive program, it is likely this issue and these bills will not be resolved until the budget process begins. 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. Representative Trujillo, passed the Appropriations Committee, 25 — 1 the House calendar. I'm The companion bill, HB 681 by during week 5 and is available for