Transcript 2010 Legislative Session Wrap Up

2011 Legislative Session
Wrap Up
The Numbers
• $3.9 B Budget Deficit
• $210 M ad valorem cuts
(water mgmt)
• $69 B Budget Passed
• $615 M in budget vetoes
• $30 M corporate income
tax cuts
• 2,000 bills filed/less than
300 passed
• 2200 pages of budget
conforming bills
• 7 Constitutional
Amendments Passed
• 3.5% of state jobs cut
(4500 positions)
• $2.6 B cut in public school
and health & human
services funding
Big Issues
 Medicaid Reform
 Elections
 Courts Restructure
 FRS Reform
 Unemployment
Compensation
 Government
Reorganization
 Job Creation
 Union Dues
 Immigration
 Property Insurance
 Merit Pay for Teachers
 Corporate Income Tax
Cuts
Major Bills that Passed
Affecting Cities
• Local Government
Pensions
• Private Property Rights
• Pain Management Clinics
• Florida Retirement
System
• Mobile Home Parks/Code
Enforcement
• Non-Homestead
Assessment Caps
• Severance
• Growth Management
• Firearms
• State Government
Reorganization
• Local Business Taxes
• Affordable Housing Trust
Funds
• Vacation Rental
Preemption
Local Government Pensions
CS/CS/SB 1128 (Ring)
 Revises definition of “compensation” for all local
gov’t defined benefit plans

For service or CB agreements earned or entered on or after
July 1, 2011: compensation can include up to 300 hours
overtime, but no sick or annual leave.
 Eliminates requirement in Chps. 175/185 that
pension benefits be increased whenever plan
member contributions are increased.
 Creates Task Force on disability presumptions with
report to legislature by January 2012.
Local Government Pensions
Cont’d
 Prohibits use of actuarial or cash surplus in gov’t
pension plan for any expenses outside the plan.
 Prohibits reduction of plan sponsor contributions to
a gov’t pension plan below the normal cost (normal
cost is portion of the overall funding requirement
for DB pensions).
 Directs DMS to provide fact sheet on each local DB
pension summarizing plan’s actuarial status. Post
on DMS website. DMS to develop rating system
for local gov’t DB plans.
Local Government Pensions
Cont’d
 Requires actuarial reports to disclose present value
of DB plan’s accrued vested, nonvested and total
benefits, using FRS’ assumed rate of return
(currently 7.75%).
 Does not change current law regarding insurance
premium tax revenues or “extra benefits”.
Florida Retirement System
SB 2100 (Budget Committee)
 3% employee contribution beginning July 2011.
 Average final compensation changed from highest 5 to
highest 8 years.
 Vesting changed from 6 to 8 years.
 Increased normal retirement date for members who join
FRS after July 2011.
 Eliminates 3% COLA for service earned after July 2011
(possible reinstatement in 2016).
 Keeps DROP but reduces interest rate to 1.3% for
members entering after July 2011.
Non-Homestead Assessment Cap
CS/CS/CS/CS/CS/HJR 381 (Dorworth)
 Proposed constitutional amendment for 2012 ballot.
 Reduces current assessment limit on non-homestead
property from 10 to 5% (cap sunsets in 2023). Nonschool.
 Creates “first time homesteader” exemption of 50%
of just value of property up to the median home
value in each county. Non-school.
 Authorizes legislature by general law to prohibit
increases in assessed value of homestead property if
just value decreases.
Growth Management
HB 7207 (Budget Committee)
 Substantial re-write of Chp. 163, Part II (the
“growth management act”)
 Applies new “expedited” review process to most
plan amendments (No “ORC”; no “NOI”; limited
agency comments).
 “Coordinated” state review for: EAR-based; ACSC;
RLSA; sector plans; new comp plans (limited
agency comments).
 Third party challenges subject to more deferential
standard of “fairly debatable”.
Growth Mgmt Cont’d
 Eliminates statutory requirements for preparation
and submittal for Evaluation and Appraisal Report.
 Makes concurrency optional for: transportation;
schools; parks & recreation facilities (plan
amendments required to effectuate the option).
 Deletes requirement that plans be “financially
feasible” as defined by state.
 Annual updates to CIE still required but do not have
to submit to state and are not required to be adopted
as plan amendment.
Growth Mgmt Cont’d
 Eliminates twice yearly limit on plan amendments.
 Abolishes rule 9J-5 but incorporates many
provisions of the rule into the statute.
 Expands sector planning and rural land stewardship
programs.
 Requires FLUE to accommodate medium range
population projections.
 Encourages technical assistance.
Growth Mgmt Cont’d
 Provides 4-year extension for developments of
regional impact permits and associated approvals.
 Provides 2-year extension for state and local permits
(not to exceed 4 years aggregated with prior
extensions).
 Provides additional exemptions from DRI process
for mineral mines, industrial development, movie
theaters, and hotels.
State Gov’t Reorganization SB
2156 (Budget)
 Creates Dept of Economic Opportunity

Transfers OTTED, portions of DCA, and portions of AWI
effective Oct. 1 2011.
 Other transfers:

FCT and Working Waterfronts from DCA to DEP

Building Comm’n from DCA to DBPR

Emergency Mgmt from DCA to Office of Gov.

Energy & Climate Comm’n from Gov. Office to DACS
 Repeals DCA, AWI, and OTTED
Gov’t Reorganization Cont’d
 Functions and Duties of new agency

Oversee eco. development, housing, growth mgmt,
community development and unemployment comp.

Create 5-year strategic plan & annual performance
standards for Enterprise Fla. and others.

Recommend further reorg. and streamlining to legislature
by January 2012.
 Modifications to economic development programs

Quick Action Closing Fund

Enterprise Florida must enter performance contract with
new agency to act as primary business recruiter
Gov’t Reorg. Cont’d
 Creates State Economic Enhancement and
Development (SEED) Trust Fund

Redirects $75 M from Affordable Housing TF effective July
2012.

Redirects doc stamp tax revenues going to Transportation
TF beginning July 2012 (phased-in transfer so that it doesn’t
disrupt DOT work plan).

SEED TF revenue to be appropriated annually.

Affordable Housing TFs are otherwise maintained.
Affordable Housing
Trust Fund HB 639
 HB 639 (Aubuchon) removes the $234M cap on the
State Housing TF.
 Funds may be used only for financing, rehab or
construction on homes or apartments already built
& occupied before December 2010.
Vacation Rental Preemption
CS/CS/CS/HB 883
 CS/CS/CS/HB 883 (Horner) preempts local gov’t
from regulating vacation rentals differently based
solely on their classification, use or occupancy.
 Defines “vacation rental”.
 Grandfathers ordinances in existence prior to June
1, 2011.
Private Property Rights
CS/CS/HB 701
 CS/CS/HB 701 (Eisnaugle) revises Bert Harris
Private Property Rights Protection Act.
 Provides that a temporary burden on property
lasting longer than one year may constitute an
“inordinate burden” on property for purposes of the
Act.
 Narrows the timeframe within which a property
owner and government may negotiate a settlement.
 Expressly states that sovereign immunity shall not
bar a claim brought under the Act.
Pain Management Clinics
CS/CS/HB 7095
 CS/CS/HB 7095 (Health & Human Services)
prescribes medical standards and operational
restrictions for pain mgmt clinics.
 A clinic may be declared a public nuisance if it has
been the site of multiple criminal incidents within 6
months.
 Provides penalties for doctors that overprescribe
narcotics.
Mobile Home Parks/Code
Enforcement CS/SB 650
 CS/SB 650 (Jones) requires local gov’t to cite a
mobile home owner (rather than the owner of the
underlying property) for violations of local
ordinances.
 Requires that liens, penalties and other proceedings
for such violations be brought against either a
mobile home park owner or tenant, depending on
who is the responsible party for a code violation.
Severance Pay & Bonuses
CS/CS/CS/SB 88
 CS/CS/CS/SB 88 (Gaetz) restricts severance pay for
any public officer or employee and allows up to 20
weeks under limited circumstances.
 Contracts prior to July 2011 are grandfathered but
renewal after that date requires compliance with
restriction.
 Up to 6 weeks severance allowed if it represents
settlement of employment dispute.
 Establishes standards for employee bonus programs.
Firearms & Ammunition
CS/CS/CS/HB 45
 CS/CS/CS/HB 45 (Gaetz) imposes a financial
penalty on governments, officials or staff that adopt
policies or take actions that violate the existing state
law preemption of the regulation of firearms or
ammunition.
 If violation was knowing and willful:

Personal liability of up to $5,000

Grounds for termination or removal from office
 Gov’t entity could be liable for actual damages up to
$100,000 and attorneys fees.
Local Business Taxes
CS/CS/CS/HB 311
 CS/CS/CS/HB 311 (Roberson) exempts an
individual engaging in a business in an individual
capacity as an “employee” of another person from
local business tax requirements.
 Does not apply to business taxes imposed on
employees by ordinances adopted prior to October
13, 2010.
 A government cannot require an exempt employee
to apply for an exemption and cannot require an
employer to provide personal or contact information
for exempt employees.
Select
Issues That Died
 Red Light Camera Repeal (HB
4087/SB 672) Preemption: FLC
Opposed
 Alternative & Renewable
Energy (SB 2078/ HB 7217/ SB
1336)
 Water Supply (HB 649/SB
882/HB 1001/ SB 1514/ SB
1914 ) FLC Supported
 Transportation Trust Fund FLC
Opposed sweeps
 Fertilizer Preemption (HB
457/SB 606) Preemption: FLC
Opposed
 Septic Tanks (HB 13/SB 82/SB
168/SB 1698)
 Repeal of Business Taxes (HB
4195) Unfunded Mandate –
FLC Opposed
 Effective Public Notice (SPB
7204/HB 89/SB 914) FLC
Supported
 Numeric Nutrient Rule (HB
239/SB 1090)
 Internet Cafes (HB 217) FLC
Supported
 Public Works Projects (HB
923/SB 1352) Preemption: FLC
Opposed
 Union Activities (SB 830/HB
1021)
Thank You!
Florida League of Cities’
Legislative Affairs & Communications
Department
http://www.floridaleagueofcities.com/
Advocacy.aspx
(800) 842-8112