2013 Legislative Session: What Passed/Failed this Session? Florida League of Cities Post Session Webinar July 9, 2013 2013 Session • 1,592 General bills filed in House and Senate combined • 66 Local bills • 286 passed—some still awaiting action by Governor FLC Priorities • Local Police/Firefighter Pension Reform • Economic Development • Communications Services Tax • Local Business Tax • Water FLC Priorities • • • • • • Housing Energy Sober Homes Transportation Funding Billboards Synthetic Drugs What Passed? Local Govt. Pension CS/CS/CS/SB 534 (Brandes) • Creates reporting standards for publicly funded defined benefit retirement plans • State is not responsible for shortfalls in local govt. retirement systems/plans Local Govt. Pension • Requires each defined benefit plan to submit report to FL DMS • Report must include financial statements using: – plan’s assumed rate of return and – rate of return 200 basis points lower than assumed rate of return • Implementation was extended to June 30, 2014 State Pension SB 1810 (Senate Govt. Oversight & Accountability Committee) • Sets the employer-paid contribution rates for the Florida Retirement System (FRS) and the Retiree Health Insurance Subsidy (HIS) program, effective July 1, 2013. • The employer-paid contribution for the HIS program is increased from 1.11% of the employer’s payroll to 1.20% of the employer’s payroll. These funds will be deposited into the Retiree HIS Trust Fund to pay benefits to participating retirees. State Pension Reform (cont.) • Employer-paid contribution rates to pay the normal costs and amortization of the unfunded actuarial liability of the FRS are increased. (Rates are based on the rates recommended in the “Blended Rate Study” associated with the 2012 Actuarial Valuation of the FRS.) • The bill contains legislative findings that a proper and legitimate state purpose is served when public retirement systems, including health insurance subsidies, are administered and funded in a reasonable manner. • These provisions take effect July 1, 2013 SFY 2014 FRS Rates FRS Contribution Rates (SB 1810): Modifies employer contribution rates. Employer normal contribution rates for each membership class of FRS (Defined Benefit and Defined Investment) are amended as follows: Class New Normal Rate Old Normal Rate 3.53% 3.55% 11% 11.01% 4.17% 3.94% 6.52% 6.51% 10.05% 10.02% Elected Officers (county officers) 8.44% 8.36% Senior Management 4.81% 4.84% 4.63 4.33% Regular Special Risk Special Risk Administrative Support Elected Officers (legislators) Elected Officers (judges) DROP SFY 2014 FRS Rates To address unfunded actuarial liabilities (UAL) of the system, the bill amends the current 2013 employer contribution rates for each membership class of FRS as follows: Class New 2013 UAL Rate Old 2013 UAL Rate 2012 UAL Rate Regular 2.19% 2.02% 0.49% Special Risk 6.83% 7.03% 2.75% Special Risk Administrative Support 30.56% 27.04% 0.83% Elected Officers (legislators) 24.85% 27.18% 0.88% Elected Officers (judges) 17.00% 16.38% 0.77% Elected Officers (county officers) 23.36% 23.01% 0.73% Senior Management 12.27% 11.25% 0.32% 7.01% 6.21% 0.00% DROP Mortgage Settlement SB 1852 (Sen. Appropriations) • Allocates $200 million from the national foreclosure settlement, in which the state was a party to a national lawsuit against five of the nation’s largest banks who committed foreclosure abuses. • Of specific interests to local governments: – $60 million is appropriated for the Florida Housing Finance Corp. to use in the State Apartment Incentive Loan (SAIL) program – $40 million is appropriated for FHFC to use in the State Housing Initiative Program (SHIP) Mortgage Foreclosures CS/CS/HB 87 (Passidomo) • Expedites foreclosure process • Applies to existing mortgages/pending cases only • Reduces statue of limitations for judgments on foreclosure action from 5 yrs to 1 year • Allows lien holder (not just mortgagee) to use foreclosure procedures • Reduces # of hearings from 2 to 1 Affordable Housing Tax Exemption CS/CS/HB 437 (Davis) • Deletes ad valorem tax exemption for property owned by certain FL-based partnerships and used for affordable housing for certain income-qualified individuals (applies to 2013 tax rolls) • Clarifies process for FL Housing Finance Corp. to allocate low-income housing tax credits & other federal and state resources Synthetic Drugs CS/SB 294 (Bradley) • Expands Schedule I of controlled substances register to include 22 new formulas of synthetic drugs Red Light Cameras (RLC) • • • • CS/CS/HB 7125 (Rayburn) Dept of Highway Safety bill Allows drivers to challenge RLC tickets through municipal hearing officer appointed by city Cities can charge up to $250/violation to cover hearing costs Prohibits cities from issuing right-onred infractions if violator stopped after stop bar Internet Cafes HB 155 (Trujillo) • Prohibits use of electronic machines used in Internet Cafes Texting While Driving CS/CS/CS/52 (Detert) • Prohibits operation of motor vehicle while using wireless communication device (text, e-mail, instant message) • Texting enforcement would be secondary offense to other driving infraction • Does not apply to emergency personnel/situations • Limitations on access to user’s billing records Alarm System Contractors CS/CS/CS/HB 973 (Brodeur) • Preempts local ordinances relating to low voltage alarm system installations • Creates uniform notice of installation process • Does not apply to installation/replacement of fire alarms Alarm System Contractors • Requires local govt. offer contractors bulk permit labels for no more than $55/label • Local govts charging more than $55 can charge up to $175 until January 2015 • Contractor does not need to inform local enforcement agency before working on alarm system Public Testimony CS/CS/SB 50 (Negron) • Requires local govt. to provide public an opportunity to be heard before board/commission • Allows local govt. to adopt policies to ensure orderly conduct at meetings • Exemption for certain emergency situations Public Testimony • Also provides exemption when board or commission is acting in quasijudicial capacity • Includes provision for attorney’s fees • Provides that a violation of opportunity to speak does NOT void any action taken by board/commission Government Liens CS/HB 267 (Wood) • Requires that govt. liens on real property for an improvement, service, fine or penalty must be recorded in official records of the county for lien to be valid against creditors • Exempts liens for taxes, non-ad valorem, special assessments or utilities Employment Benefits CS/HB 655 (Precourt) • Prohibits local govt. from requiring or regulating employment benefits (health, sick leave, vacation time) • Preempts regulation of these benefits to the state Employment Benefits • Local govt. is NOT prohibited from establishing benefits for: – Its employees – Employees of contractor providing goods/services under the contract – Employees of employer receiving tax abatement or subsidy from govt. • Creates 11 member task force to review impact of state preemption (cities not included on task force) Economic Development CS/CS/HB 7007 (Trujillo) • Increases transparency/accountability of business participating in DEO incentive programs • Originally gave DEO rulemaking authority over Small City CDBG, but language was removed from bill • Expands enterprise zone boundaries in rural areas of economic concern • Requires DEP rehabilitation agreement for Brownfield sales tax exemptions; Economic Development • Creates Triumph Gulf Coast Board to manage any monies disbursed as a result of BP litigation • Eliminates sales tax paid by manufacturers for certain equipment purchases for 3 years • Revises the Florida Small Business Development Center Network that will provide various services to assist small businesses Economic Development CS/SB 406 (Gardiner) • Requires DEO to analyze each economic development incentive program. • Sales tax exemption for natural gas used to generate electricity in stationary equipment; • Sales tax exemption for building materials used in redevelopment projects, including brownfields Economic Development • Revises criteria for brownfield redevelopment bonus refund • Makes changes to process for spring training franchises that receive state funding Growth Management CS/CS/CS/HB 319 (Ray) • Clarifies that transportation concurrency requirements apply to local governments that have adopted mobility plans. • Provides that mobility plans must provide a means for new development to pay for its impacts and proceed with development. Growth Management CS/CS/HB 537 (Moraitis) • Limits the use local initiatives and referenda as they relate to growth management purposes to only those cities that: – Had specific charter provisions in effect prior to June 1, 2011 – Affect more than five parcels of land Agriculture CS/CS/SB 1106(Hays) • Preempts local governments from adopting any ordinance, regulation, rule or policy that restricts or otherwise limits “agritourism” activity on land classified as agricultural. • Eases liability restrictions for agritourism operators. • Agritourism activities do not apply to the construction of buildings or facilities that would primarily be used by members of the public. Alternative Water Supplies CS/SB 364 (Hays) • Provides that Consumptive Use Permits for alternative water supplies can be issued for 30 years under certain conditions Water – NNC CS/SB 1808 (Sen. Environmental Preservation and Conservation) • Codifies agreement between DEP and EPA regarding FL implementation on DEP Numeric Nutrient Criteria • Clarifies that DEP is entitled to adopt criteria for streams, lakes & estuaries Water Quality Credit Trading CS/CS/HB 713 (Pigman) • Allows DEP to authorize voluntary water quality trading credit program in adopted basin mgmt action plans • Participants must notify DEP of price for credits, how price was determined and any state funding rec’d for facilities/activities that generated credits Stormwater CS/SB 934 (Lee) • Authorizes cities and counties to adopt stormwater adaptive mgmt plans for urban redevelopment projects (CRA, urban infill area) • Plan would address quantity/quality of stormwater discharges for area • DEP will include permit for city/county stormwater plans in its statewide environmental resource permit Water Mgmt Districts (WMD) SB 244 (Dean) • Directs WMDs to adopt priority list of water bodies that have potential to be affected by withdrawals in adjacent WMD • WMD report to DEP will include schedule for MFLs for surface water, aquifers within WMD Environmental Regulation CS/CS/CS/HB 999 (Patronis) • Regulatory streamlining • Municipal Review of Development Permits (limited to 3 requests for additional information) • Conditions for local govts providing recovered materials collection • Removed from Bill: – Clarification on stormwater fees – Creation of Fertilizer Commission Energy CS/CS/HB 579 (Ray) • Relates to the use of natural gas as a motor fuel • Repeals annual decal fee program for vehicles powered by alt. fuels (effective Jan. 1, 2014) • Establishes fuel tax structure for natural gas beginning Jan. 1, 2019 (exempting from fuel tax for 5 yrs) Energy CS/CS/HB 579 (Ray) • Also exempts natural gas fuel from sales and use taxes • Expands “energy efficient improvement” to include natural gas fuel installation under uses authorized under Loc. Govt. Infrastructure Surtax Biodiesel CS/HB 633 (Perry) • Exempts local governments that manufacture biodiesel for internal use from reporting, bonding and licensing requirements prescribed for wholesalers in Ch. 206, F.S. Nuclear Cost Recovery CS/CS/SB 1472 (Legg) • Addresses investor-owned utilities’ ability to recoup expenses through Nuclear Cost Recovery • Establishes process for PSC to review/approve development of new power plant attempting to collect cost recovery from customers Public Private Partnerships HB 85 (Steube) • Preempts local government authority to craft project specific Public-Private Partnership (P3) agreements. • Provides framework for local govt. to follow when entering agreements, including procurement procedures, project review and approval, public notice, etc. • Does not apply to certain hospital/healthcare systems or municipal electric utilities Public Private Partnerships • P3 projects do not waive sovereign immunity of public entity • Creates P3 Task Force to review and develop recommendations • Provides process for counties to enter P3 agreements to construct/ extend/improve county roads • Provision for lease agreements for Orlando-Orange Co. Expressway Authority Ethics SB 2 (Latvala and others) • Makes several changes to ethics laws for state and local govt. officials • Priority of Senate President Gaetz • For cities: – Finance directors must file financial disclosure forms. • Current Finance directors file in 2014. • New Finance directors within 30 days of hire. Ethics • More authority for FL Commission on Ethics (COE) to collect fines (includes wage garnishment) • Grace period to amend financial forms • Prohibits gifts over $100 from vendor doing business with an agency • Allows officials to place assets in blind trust • Extends prohibition on disclosure of complaints against candidate prior to election from 5 to 30 days Ethics • Expands criteria for COE to initiate investigations (referral from specified govt. officials) • Prohibits candidates/elected officials from accepting public employment if he/she knows position is being offered to gain influence or advantage based on office/candidacy Elections CS/HB 7013 (Boyd) • For cities that have ordinance/charter that adopt FL Election Code for city elections: • Primary election 10 weeks before General (was 12) • Early voting begins 10 days prior to election and ends 3 days prior to election • Supervisor of Elections can extend from 15th-11th day before and end 2nd day prior to election Elections • Early voting sites required to be open 8hrs min. and 12 hrs max. per day • Expands list of early voting sites • Supervisor of Elections may designate one early voting site in area that does not have eligible early voting location Campaign Finance CS/CS/CS/SB 569 (Schenck) • Revises campaign finance laws • For cities that have ordinance/charter that adopt FL Election Code for city elections: – Candidate contribution limit increased to $1000, per person/per election – Candidates may be required to file additional campaign finance reports Worker’s Comp/ Repackaged Drugs CS/SB 662 (Hays) • Revises requirements for determining the amount of a reimbursement for repackaged or relabeled prescription medication. • Limits the price of the repackaged or relabeled drug to the amount that would have been payable if the drug had not been repackaged or relabeled. • Effective July 1, 2013 Property Insurance CS/SB 1770 (Senate Banking and Insurance Committee) • Omnibus bill that reduces the risk of Citizens Property Insurance Corp. • Eliminates Citizens coverage on homes valued above $700,000 over three years and coverage of structures seaward of the coastal construction line. • Extends FL Hurricane Catastrophe Fund (FHCF) assessment exemption on Med Mal policies until 2016. • Revises restrictions on property adjustors compensation. What Did Not Pass? Local Government Pensions CS/CS/SB 458 (Ring) CS/HB 1399 (Rooney) • Not Pension Reform—did not allow cities to negotiate benefit levels below 1999 • Repealed “Naples Letter” language and thus sunset existing agreements relying on Naples letter Sovereign Immunity HB 7123 (Grant) • Current law: $200,000 for individual actions; $300,000 for all actions arising out of same incident • Would have increased the waiver of sovereign immunity for political subdivisions (cities, counties, schools) to $1 million and $1.5 million, respectively Communications Services Tax • House Finance and Taxation committee considered concepts to broaden the tax base replace the local CST with state CST. • No legislation was filed with these specific concepts. Communications Services Tax HB 303 (Grant)/SB 1422 (Richter) • Would have repealed local CST and revised state CST rate to be 10.65% • Would give 45% of the state CST to the local governments. • Would have required local govt. to reduce ad valorem rate to offset increased CST revenues. Local Business Tax HB 7109 (House F&T Committee) • Would have created three LBT classifications based upon sq. footage of the business. • Established parameters for rate structure and required the city to adopt the rate structure by a 2/3 vote. Sober Homes CS/SB 738 (Clemens)/ HB 1089 (Grant) • Would have defined sober home • Required adherence to city/county zoning and occupancy standards • Allowed local govts to adopt ordinances to govern facilities • DCF is doing a study this summer Municipal Utilities HB 733 (Mayfield) • Would have subjected municipal utilities that provide electricity, gas, water, or wastewater services outside of incorporated limits to PSC regulation • Required county approval for municipalities to offer utility services outside of incorporated limits Local Preference SB 684 (Hays) and CS/HB 307 (Tobia) • Would have preempted local preference ordinances for personal property and construction services if state funds are used • Would have mandated preference for FL businesses if state funds are used Neighborhood Improvement Districts (NIDs) CS/CS/SB 770 (Ring)/ HB 741 (S. Jones) • Would have allowed NIDs created by ordinance to exercise certain powers, including ability to issue bonds Neighborhood Improvement Districts CS/CS/SB 561 (Simmons)/ HB 679 (Nelson) • Would have authorized NIDs to be created by ordinance rather than planning ordinance and provided bonding authority Concurrency/Impact Fees HB 321 (La Rosa) • Would have prohibited proportionateshare contributions for new development before July 1, 2016, unless authorized by majority vote of local governing body. • Would have only applied to commercial development less than 6,000 square feet Development Exactions SB 772 (Brandes)/HB 673 (Perry) • Would have prohibited local govts from imposing or requiring certain exactions on or against private property. • Would have eliminated dual rational nexus test and created a stricter “essential nexus” standard. Stormwater Fees HB 1231 (Moskowitz)/ SB 1712 (Altman) • Would have allowed local govts to place liens on property for delinquent stormwater fees Pain Mgmt. Clinics CS/CS/SB 1192 (Grimsley) • Would have preempted licensure, activity, and operation of clinic to the state • Would have allowed local govts to regulate clinics through land use and zoning, but clinics would be allowed under land use categories that permit hospitals, clinics or other health care facilities Transportation CS/CS/HB 7127 (House Transportation Committee) • Would have required DOT to study parking meter revenues on state roads • Prohibited public transit providers from using federal block grant funds for advocacy • Allowed cities to regulate public information systems on WMD lands Transportation (cont.) • Authorized DOT to pay cities in rural areas of critical economic concern for utility relocation costs, under certain conditions • Allowed DOT to grant permits to high-speed rail providers for communications equipment, with comments from municipality (also passed in HB 7019) Billboards CS/CS/CS/SB 1632 (Latvala) CS/CS/CS/HB 1299 (Goodson) • Would have revised outdoor advertising statute, mostly affecting FDOT • Removed requirement for local govt. regarding noise walls • SB 1632 allowed local govt. and FDOT authority to regulate public information systems on WMD lands Wage Theft CS/SB 1216 (Bradley)/ CS/CS/CS/HB 1125 (Goodson) • Would have preempted local regulation of wage theft issues • Provided new civil claim for wage theft to be brought in county court • Allowed local govt. to establish program to help employee recover unpaid wages FLC Lobbying Team • • • • • • • • Scott Dudley – sdudley@flcities.com Kraig Conn – kconn@flcities.com Casey Cook – ccook@flcities.com David Cruz – dcruz@flcities.com Amber Hughes – ahughes@flcities.com Ryan Matthews – rmatthews@flcities.com Ryan Padgett – rpadgett@flcities.com Allison Payne – apayne@flcities.com Sign up for Policy Committee!! Legislative Policy Committee Sign up for 2013-2014 Applications due August 21st • Energy & Environmental Quality • Finance, Taxation and Personnel • Growth Management & Economic Development • Transportation and Intergovernmental Relations • Urban Administration Thank You For Additional Information Contact: Legislative Affairs (800) 342-8112 or visit our web site