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Agenda 05/25/2010 Item # 5E ession Summary 2010 Session Summary Florida lawmakers ended the 60 day 2010 Legislative Session on time this year but, it was contentious from the beginning because of political in- fighting between legislative kaders and Governor Crist over his support for the federal stimulus package, culminating with the decision of Governor Clist to abandon the Republican Party and to announce as an independent eandidate for the U.S. Senate seat in November. Against this backdrop the Governor vetoed two important measures passed by the legislature and supported by leadership. He vetoed an elections bill (HB 2107) that created legislative leadership funds and a controversial bill (SB 6) which stripped school teachers of job protections and tied their pay to student performance. The Session ended anti-climactically on April 30th without the traditional sine die ceremony between the chambers and Governor, appearing together applauding their eombined efforts and successes. Some 30 I bills, resolutions, and memorials passed the 20 I 0 Session. Below is a summary of the significant issues related to economic devclopment and state spending introduced this Session. Budget Florida lawmakers passed a $70.4 billion budget on the last day of Session. The vote was 77-43 in the Florida House, and the Senate subsequently approved the budget by a 33-4 vote. The House vote was along party lines while the Senate enjoyed more bi-partisan support. Many stakeholders have criticized the spending cuts in health care and the decision to raid over 30 trust funds, including the state's road-building trust fund in order to balance the budget. The legislature filled the shortfall in numerous ways, including a decision to sweep nearly $600 million out of various trust funds, including $160 million fi'om the state transpOltation trust fund. Although, the Budget provides for $59 million in eontingent FMAP dollars and other sources to off~et the DOT trust fund sweep. The state is also J. K E I T H A R N 0 L D & ASS 0 C I ATE S GOVERNMENT~\L CONSUL TANTS 2010 Session Summary Page 2 Agenda Item No. 5E M 25 2010 betting on more than $400 million from a gambling compact reached with the Seminole Tribe of Florida for the FY 2010-11 Budget. The gaming compact is expected to net the state $1 billion in general revenue over the next 5 years. The Legislature also relied on $2.6 billion in federal stimulus money to fill the $3.2 billion budget hole for FY 2010-11. Remaining shortfalls were made up for by budget cuts to programs. Some of the notable reductions in the 2010-11 Budget are: . Reimbursement rates to nursing homes and hospitals cut 7% . A 7% reduction in spending on County Health Units . Incentives for state employees to adopt foster children -- eliminated . Healthy Start coalitions cut $2.6 million . Healthy Families cut by $10 million, nearly one-third . 185 juvenile detention beds, cut $7 million . Services for people with developmental disabilities, cut $5.6 million and spending capped K-12 per student spending is $6,843.41 per student -- a $1.22 increase over funding that schools are receiving now. Although, the legislature arbitrarily raised the local projected property tax collection rate to 96% which is I % more than has been used in the past. To achieve the per-pupil funding, this assumes that local tax collections will rise when they mayor may not. The legislature funded Florida Forever at $15 million and up to $50 million for Everglades restoration. However, the funding that state lawmakers have relied on to balance the budget has not been approved by Congress, and it is not expected, if at all, until June. The dollars in waiting are from the Federal Medical Assistance Percentage (FMAP) dollars, which make up the federal portion of the federal/state match to fund Medicaid programs. Congress had extended an enhanced match rate of roughly 67% federal 33% state which is set to expire. Congress is considering whether to extend the enhanced rate by six months or a year. In the months leading up to this year's Session, state economists indicated they had a $3.2 billion budget shortfall for the coming year. Legislators from both the Senate and House largely ridiculed Governor Crist when he recommended a budget that included money from a still- unapproved gaming compact with the Seminole Tribe of Florida and extra FMAP money. Speaker Cretul, stated that the House would not "play accounting games" and would "balance our budget with the dollars we have." In the end, the legislature did exactly that. Lawmakers plugged in nearly $270 million contingent on if or when Congress extends a higher matching rate for Medicaid beyond the end "p.~';;;E',; \>S:i:[t&j;@. 2010 Session Summarv paue 3 Agenda Item No. 5E M 25 2 0 of2010. And they tapped, at the time, unrealized gaming dollars at $400 million to fill in budget shortfalls. The Governor has stated that he will likely not veto the whole budget but use his authority to line item veto portions of the budget he does not like. The state budget outlook only looks worse next year when more than $15 billion in federal stimulus aid for Florida over a three year time span will disappear in 2011 and leave Florida with a nearly $6 billion estimated shortfall to cover infrastructure and transportation, and programs that finance schools and health care for the state's poor and elderly. Bude:et Comearison IlvFund Tvee lIn_lVIilli()nsl General Revenue Trust Funds All Funds 5FY _~!O_~ 21,193.80 45,342.50 66,536.30 ~Y2011_ _!.3,789.70 46,587.70 70,377.40 $ Differenc;e Difference 5FY 10 vs. 5FY 11 SFY 10 vs. SFY 11 --." . "_.._-".,,~ -.-----.- 2,~9~:9~ 1,245.20 3,841.10 12.25% 2.75% 5.77% Table 1- From Florida Associatioll ofCounties.Legislatil'e Ol'erl';eH' May 6. 2010 Despite the $3.2 billion shortfall heading into the 2010 Session, the FY 2010-11 Budget is roughly 6% higher than FY 2009-10 Budget. Largely due to a small uptick in state revenue as the economy begins to show initial signs of recovery and the continued use of federal stimulus dollars to offset the shortfalls. The federal dollars will dry up in 20 I 1, unless Congress extends the stimulus. Again, the Florida Legislature relies on $270 million in FMAP dollars in the budget, contingent on the enhanced rate extension by Congress. SFY 2011 General Appropriations Act - All Funds CriminalJusticeand__ Corrections 7% Education 32% Natural Resources/ Environment/ Growth Management! Trimsportation 14% 39% Table 2-From Florida Association ofCoulIlies-Legislative Ol'en'jew May 6, 2010 2010 Session Summary Page 4 Agenda Item No. 5E M 25 2010 Table 2 on the previous page illustrates the percentage of dollars spent on each issue area of the state budget for FY 20]0-]]. Healthcare and Education by far make up the majority of spending compared to other areas of the budget. Over 70% of every dollar is spent on K-]2, Higher Education, Medicaid, and hea]thcare services. Incoming leaders, Senator Mike Haridopo]os and Representative Dean Cannon have both stated that Medicaid Reform will be their top priorities next year. -,!lll!e~~~~!~~_~~_,,-S.!c_ti!Jl1il-"_~li()I'1~) _ ________---- _ ~____ $ Difference ___ %~_fferenc!_ ____ ~______ __ S!V.ZO!0_~.II!'lII1ll.~.s.~.1_1_I\I!.Funds._,_~Y..!O\lS,.s.~V.}1__ __ SFy"!o.v~,.5.F.'t'.!!... 1. Education___!!~~:90 ~__ _ _1,300.60 J____(12.3.iOJ: (8.~6~! _____.J Educati.o.n_. ._~__19'842,OO.____~212.1~.~~_ _.1,36?~~ 6.88% Section ~~~i!I1...~d..'1uman_Servic~.___~_._ _.~,043,<lg___ ___ 28'1Ill~_~0______:1,~38.90______ 9.36% ~.eEi(l~~: Cril11i.~1 Ju_stice an.dCorrections 4,7_~5,40 4,6~<l:90 (104.50) ....I?2Q%l Section 5. Nat.Res. Env. 485.10 Section 6. General Government _ _4,720.00. _4,~.!O_. . (231.90) Section 7. Judicial Branch 451.30 462.40 11.10 Totalllu_d~e~___ __ 66,53.6.30_70,377'~ _ },841.10 . (4.91%) 2,46% 5.77% Table 3 -From Florida Associlltion of Counties-Legislative Oven'iew May 6, 2010 The table above illustrates the percentage gain or loss in specific budget areas of the FY 20] 0-1 ] Budget, totaling a 5.77% increase over the current year state budget. The 9% increase in HHS is mainly due to the Medicaid case]oad increases as a result of the economic downturn. Table 4-Funding Contingent on FMAP Extension Location Issues Funded FMAP Amount HB 5201 Brioht Futures 25,000,000 GAA Innovative Incentive Prooram 75,000,000 GAA Transoortation Trust Fund 40,000,000 Low Income Pool (Jackson GAA Memorial) 25,000,000 GAA Hosoital Inpatient Service 4,197,807 GAA Hosoital Outoatient Service 802,193 GAA Svlvester Cancer Center 9,500,000 GAA Shands Cancer Center 9,500,000 GAA Braman Familv Breast Cancer 1,000,000 GAA Nursina Home Rates 20,058,642 GAA Everolades Restoration 40,000,000 SB 1752 Economic Development 20,000,000 Total $270,000,000 Source: SMate Appropriations Office 2010 Session Summary Page 5 Agenda Item No. 5E M 2 2 Table 4 on the preceding page illustrates funding in the 20] 0-1] Budget which is contingent on the extension of the Federal Medica] Assistance Percentage (FMAP) enhanced rate. The FMAP funding total is $270 million. It is not clear currently, when or if Congress will approve the FMAP extension, if not, the funding for programs listed above, are in jeopardy. The actual FMAP funds (about $1 billion) will go to Medicaid, allowing general revenue to be shifted out and used elsewhere in other areas. The remaining $730 million in FMAP was put into budget reserves and working capital. The legislature utilized $75 million in FMAP funds for the Innovative Incentive Program which allows the state to respond quickly to economic opportunities and to compete for high-value research and development, innovation business, and alternative and renewal energy projects. Out of this amount, $50 million is provided as part of $130 million 3 year commitment from the state to fund the development of a research institute focused on genetics and personalized medicine. The eligibility criteria for the project has been written in a way to facilitate Jackson Laboratory to construct a facility in Southwest Florida (Collier County) for a genetic research facility. The money is contingent on several other factors including a local match and philanthropic support of private supporters. A large chunk of the FMAP dollars ($40 million) is directed to fund continued Everglades Restoration efforts. A total of $50 million is provided for the restoration from the budget, out of which $40 million are contingent on FMAP. Twenty-five million of FMAP dollars is provided to support the financially strapped Jackson Memorial Hospital in Miami-Dade County. The dollars are contingent upon approval of a joint resolution between the Board of the Jackson Memorial Public Health Trust and the Miami-Dade County Commission to establish and carry out a management review proccss for county oversight of the hospital's financial condition; evidence of a financial commitment by the county; documentation of other community support; and documentation of a comprehensive plan for containing costs and reducing expenditures. The legislature also passed the omnibus SB 1752 Economic Development this Session which invests more than $175 million in job creation over the next three years. The legislation looks to improve Florida's competitiveness in international trade, space and defense-related industries, the film and digital media industries, marine and boating, manufacturing, real estate, and the commercialization of products and research devcloped by Florida companies and universities. A total of $20 million in FMAP dollars was used to fund the incentives, rebates, and awards contained in this bill. The legislature balanced the FY 2010-11 Budget by a combination of Federal stimulus dollars ($2.6 billion), trust fund sweeps ($400 million), and contingent FMAP funding ($1 billion). In the end 1.1 % of Non-Recurring General Revenue was used for recurring budget items. And again, depending on Congressional actions in the future regarding FMAP and stimulus dollars to 2010 Session Summary Page 6 Agenda Item No. 5E M 25 2010 the states, the looming budget deficit is approximately $6 billion for FY 2011-12 to cover current expenses. Substantive Bill Summary Economic Development The legislature did pass a jobs bill (SB 1752) to help stimulate the state's floundering economy which includes a tax credit for the entertainment industry, sales tax caps on the sale of boats, funding for Space Florida, and a $1000 tax credit per hire for qualified businesses which hire Florida workers who have been out of work for at least 30 days. The popular back to school sales tax holiday was passed by the legislature after a two year hiatus. The measure will run from August 13th_15th and will apply to school supplies up to $10 and cloths and books up to $50. Gaming After several years of negotiations and failures to ratifY the Gaming Compact with the Seminole Indians, the legislature passed (SB 622) and the Governor has signed a gaming compact this Session which is expected to bring the state $1 billion over the next 5 years which will be deposited into the state's general revenue fund. The compact allows the tribe to run card games at several of its casinos and allows slot machines at all seven casinos for the next 20 years. The compact, which has already been signed by Governor Crist, also reduces the tax rate on slot machines in service by South Florida pari-mutuels. The compact also includes a 3% revenue sharing for local govemments which are impacted by the casinos. Medicaid Managed Care Expansion Lawmakers spent a good deal of time during the 2010 Session wrestling with ideas to slow the increasing costs of the $19 billion Medicaid program. The Senate had passed as part of their budget an expansion of the Medicaid Refonn Waiver from 5 to 19 counties. The program initially created under Governor Bush, implemented a capitated, managed care program for Medicaid recipients in specified areas of the state. The effectiveness of the program is unclear, as stakeholders have indicated there is a need for better encounter and cost savings data in the existing pilot project areas. This among other concems, were voiced by many against the expansion of Medicaid Managed Care. The House proposed a far more ambitious plan (HB 7223, HB 7225) to move the Florida to a statewide Medicaid managed care plan, including the developmentally disabled, seniors, and children. This was a complete overhaul of the Medicaid delivery system in Florida. Ultimately, the extension of the Medicaid Pilot program was agreed to, but Medicaid managed care 2010 Session Summary Page '1 Agenda Item No. 5E M 25 2010 expansion was not passed during the last hours of Session. Lawmakers did agree on limited policy changes to Medicaid in SB 1484 which include; a taskforce to develop methodologies to maintain the use oflocal tax transfers in a Medicaid managed care environment, and a Medicaid Fraud taskforce to develop a statewide strategy to prevent, investigate and prosecute Medicaid and public assistance fraud. Environment and Energy There was significant testimony and committee hearings on the issue of lifting the oil drilling ban in Florida waters during the 20 10 Session. However, the issue stalled when the Senate President stated the Senate was not interested in taking up the issue this year. A few weeks later, the Deep Horizon oil rig exploded and sank to the ocean floor off the coast of Louisiana gushing 200,000 gallons of oil a day from the well, threatening Florida and the Gulf Coast. State leaders have since stated that oil drilling has been shelved for the immediate future. The legislature did manage to fund, although at a greatly reduced amount, the Florida Forever Program at $15 million. Everglades Restoration was also funded at $50 million for FY 2010-11, but the funding is dependent on the state receiving additional Federal Medical Assistance Percentage (FMAP) dollars, which has not been approved by congress. In fact the state legislature has spent roughly $270 million in the 2010-11 Budget contingent on the FMAP extension. After failing to reach agreement for several years, the legislature passed a bill (SB 550) which seeks to protect the state's spring waters by requiring the Department of Health to inspect septic tanks every five years beginning in 2016. Another fertilizer bill (SB 382) was filed this year which was restrictive to local governments and might have prevented meeting mandated responsibilities under the Clean Water Act and the federal Environmental Protection Agency's proposed numeric nutrient criteria rulemaking died in the Senate after being passed by the House. A recycling bill (HB 7243) was passed this Session which sets a goal of a 75% recycling rate in the state by 2020. Lawmakers failed to pass a comprehensive renewable energy bill because of feared higher ultimate costs passed to the consumers in this economic environment. A bill did pass (HB 7179) which creates PACE (Property Assessed Clean Energy); a program that allows local governments to give loans to homeowners and businesses to install renewable energy devises or make improvements to protect from'stonn damages. Insurance The legislature did pass SB 2044 Property Insurance this Session. The bill proves controversial though because of provisions to allow insurers to raise rates up to 10% a year because of the cost 2010 Session Summary Page 8 Agenda Item No. 5E M 25 2010 of re-insurance or to cover inflation. The bill also stipulates that homeowners must file a claim for hurricane damage within 3 years of the event. The bill also deregulates many lines of commercial insurance. SB 2176 also passed which among other items allows the Office of Insurance Regulation to exempt from rate regulation any commercial lines of insurance the office determines there is an existence of a competitive market. There has been speculation that the Governor may veto these bills because of the potential premium increases and deregulation of the market. Elections HB 131 Elections was passed this year with the ADA extension for counties amended onto the bill. The bill among other items delays the implementation of removing touch screen machines that disabled voters currently use to optical scan devices from 2012 to 2016. HB 2107 was also passed by the legislature which regulated the so-called 527 political organizations, but was vetoed by the Governor because it also contained the leadership fundraising accounts opposed by the Governor. Public Safety After the fifth year of trying, the Red Light Camera bill (HB 325) passed this Session. The bill provides for regulation ofred light cameras by DOT and authorizes a $158 dollar non-moving violation fine to be assessed. The fine is distributed to the local government of jurisdiction, state general revenue, state-certified trauma centers, and the Brain and Spinal Cord Injury Trust Fund. SB 742 passed which requires any person employed as a 911 dispatcher by the Department of Health by October I, 2012. The bill requires 20 hours of training for the renewal of public safety dispatcher certification every 2 years. It is believed there will be a fiscal impact on both the state and the counties. The additional cost will be funded in part from the fees deposited in the Emergency Medical Services Trust Fund. . The estimated fiscal impact on local governments has not been determined at this time but is believed to be significant. . Growth Management There was relatively little activity in the area of growth management this year mainly due to the fear of provoking proponents of the Hometown Democracy ballot initiative. Provisions were included in the Jobs Bill (SB 1752) which extend local development pennits for another two years to aid developers in a slow economy. Language was also included in the bill to protect developers from the ongoing legal challenges to SB 360 which passed the legislature the previous year. A bill re-authorizing the Department of Community Affairs under the Sunset Review law failed to pass this year. The department will not be abolished because of the lack of action. 2010 Session Summary Page 9 Agenda Item No. 5E M 25 2010 Ballot Initiatives and Resolutions A TABOR bill (SJR 2420) was filed in the Senate this year. In short, the bill proposed an amendment to the State Constitution to limit state and local government revenues and require voter approval of new taxes and fees. A House committee bill PCB FTC 10-13 was also filed by the Finance and Tax Council. The issues died in committee without making it to either chamber floor. A late attempt to withdraw SJR 1254 from committee to the Senate floor which made changes to the 1st Time Homeowner !Non-homestead cap amendment died in the waning days of Session. The bill expanded and doubled the proposed exemption for I st time home buyers from $100,000 to $200,000 and caps non-homestead increases from 10% to 5%. The bill would have also carved out ad valorem for schools putting the entire fiscal impact of the proposed constitutional amendment on eities and counties. The estimated impact to counties and cities was $450 million by the fourth year. HJR 37 proposes the creation of the Health Care Freedom Constitutional Amendment relating to health care. The resolution prohibits any person, employer or health care provider from being compelled to participate in any health care system. With respect to an individual or employer mandate, this provision would allow any person or employer to opt-out of mandated insurance coverage and would allow for flexibility in any health care provider's participation in a particular health care system. The resolution was passed out of the legislature. The legislature also approved a measure (SJR 2) that would freeze K-12 class size restrictions at current levels. If approved by voters on the November ballot the measure could also allow some class sizes to increase as long as the overall school wide average still met current caps. The House approved the measure along a party vote. A Memorial (HJR 1583) urged the United States Congress to balance the federal budget and hold itself to the same fiscal standards to which it expects its citizens to adhere. The House Memorial provided for copies of it to be submitted to the President of the United States, the President of the U.S. Senate, the Speaker of the U.S. House of Representatives and to each member of the state's congressional delegation. The issue died in messages. Legislative leaders passed their own initiative HJR 7231 in response to the Fair Districts amendments, which could weaken the current majority's ability in 2012 to draw congressional and legislative distriets. Redistricting, the once-a-decade process of drawing new political boundaries, happens after every Census to make sure that each state legislative district and each congressional district has the same number of residents. HJR 7231 would require that the state apply federal requirements in its balancing and implementing of the redistricting standards in the state constitution. Both the equal opportunity of racial and language minorities to participate in the political process and communities of interest are established as standards that are on equal footing as any other standard in the state 2010 Session Summary Page 10 Agenda Item No. 5E M 25 2010 constitution. Therefore minority access districts can be considered, and communities of interest can be respected and promoted, as matters oflegislative discretion. Other Important Collier Issues DB 511 Children Services passed this Session and has been presented to the Governor. HB 511 authorizes the establishment of the "Children's Trust of Collier County." If approved by county voters, this independent special district would provide a public funding source for children's services in the county via an ad valorem assessment of no more than one-half mill. The bill provides for the membership, terms and powers and duties of a IS-member district board of trustees; authorizes the trustees' reimbursement for per diem and travel expenses; requires reports and audits; identifies a fiscal year; provides for financial matlers and budget procedures; authorizes the levy of ad valorem assessments; requires a surety bond of certain persons; provides requirements for amendment ofthe district's charter; and provides for a referendum to be called by the board of county commissioners. The district may be dissolved by the Legislature, the electorate of Collier County, or by virtue of the sunset provisions of the bill. The bill specifies that its provisions do not prevent the county from creating a children's services council pursuant to general law provisions. The provisions of the bill are effective upon a 60 percent approval vote by the qualified electors of Collier County, except for Section 9, which takes effect upon becoming law. SB 1454 Clerks Interest Bill was filed leading up to the 2010 Session and contained language to undo the changes made to F.S. 28.33 last year, overturning the prohibition on clerk expenditure of county earned interest without submitting a budget request to the BOCC. The issue is a nearly $1 billion impact to counties statewide. The bill was filed in the Senate but never scheduled for a hearing. 2010 Session Summary Page 11 Agenda Item No 5E M 25 2010 Major Budget Items by Category for FY 2010-11 The FY 2010-2011 General Appropriations Act appropriated a total of$70.4 billion, of which $23.8 billion is General Revenue, $19.5 billion is state trust funds, and $27.1 billion is federal funds. Un-appropriated reserves total $1.4 billion; $400 million from the General Revenue Fund; $715 million from the Lawton Chiles Endowment Fund; and $275 million from the Budget Stabilization Fund. If additional Federal Medicaid Assistance Percentage (FMAP) funds are received in the future, an additional $730 million in general revenue dollars will be held in reserve. The budget relies on $433 million in revenue from the Seminole Gaming Compact and $507 million in transfers from trust funds. The amount ofrecurring appropriations funded with non-recurring revenue was $274 million, which is 1.1 percent of total general revenue funds available to spend. 'Items in HE 5001 are subject to the Governor s Line Item Veto. Budl!et Summarv Criminal and Civil Justice Budget Totals -$5.1 billion budget -$3.5 billion in General Revenue -$1.6 billion in Trust Funds The budget reduces recurring General Revenue by approximately $210.5 million (-5.5 percent), or approximately -2 percent in total funding for FY 2010-11 from FY 2009-2010. Department of Corrections- $2.4 billion (-2 % from FY 2009-10) Due to revised Estimating Conference projections, there is no additional funding required for prison operations/support or prison construction. Realized savings due to inmate population Realized savings from Health Services Efficiencies Reduce Vacant positions department -wide Increased substance abuse funding $1 million -$45.1 million -$17.5 million -$22.8 million (477 FTEs) Department of Juvenile Justice- $604.3 million (-2 % (from FY 2009-10) No reductions to PACE, CINS/FINS Increased Redirection Program Restore low-volume Juvenile Assessment Centers Reduce Vacant positions $1.6 million $1 million -$1 million (24 FTEs Probation, Residential) Guardian Ad Litem - $31.1 million (+0.62 % from FY 2009-10) Restored nonrecurring funding from FY 2009-10 $1 million Capital Collateral Regional Counsels Regional Conflict Counsels Clerks of Court $7 million-No reductions $36.1 million- No reductions $453 million- No reductions 2010 Session Summary Page 12 Agenda Item No. 5E M 25 2010 State Courts System $462.4 million (+2 % from FY 2009-10) Second year of Federal Stimulus for Drug Court $8.8 million Fund shift GR to State Courts Revenue Trust Fund $88.5 million Provides assistance to handle foreclosure case backlog $6 million Provides Assistance to homeowners in foreclosure cases $1 million Provides Maintenance for Supreme Court/DCAs $660 thousand TRUST FUND SWEEPS Mediation and Arbitration Trust Fund- Court Education Trust Fund- State Atty. Grants and Donation Trust Fund- Legal Affairs Revolving Trust Fund- $4 million $1.5 million $1.2 million $1 million Healthcare Appropriations The Health Care Appropriations Committee overall budget totals $28.5 billion ($6,708.8 million General Revenue and $21,773.5 million trust funds). Includes funding for 36,869 authorized positions. There is a 9.35 percent increase in total funding and a 28.98 percent increase in general revenue funds over the FY 2009-10 appropriation and includes approximately $990.6 million in general revenue funds to replace stimulus funding as a result of change in Medicaid federal match rate. Al!ency for Health Care Administration Total budget for FY 2010-11 is $20,801 million, which is an increase of $2,562 million over the FY2009- 10 Appropriation - 14.05 percent increase. Medicaid Price Level and Workload Adjustment $2,058.6 million total, $1,482.92 million GR - Additional funding for increased Medicaid caseloads and price level adjustments as agreed upon by the February 2010 Social Service Estimating Conference for an anticipated additional 301,482. Medicaid beneficiaries. Includes approximately $990.6 million in General Revenue for stimulus flame out due to change in federal matching rate. Restore Medically Needy for Adults and MEDS AD Programs $1,443.67 million total, $521.3 million GR - Non-recurring funding provided to restore the Medically Needy for Adults and MEDS AD program to provide services to approximately 39,684 beneficiaries monthly. Florida Kid Care Emollment Increase - $37.1 million total, $13.9 million GR - Provides funding to fully fund the 2010-11 anticipated growth in the Kidcare Program. Funding is expected to serve an additional 22,374 children, a 9 percent growth rate. Managed Care Fraud and Abuse Adjustment Capitation Adjustment ($22.7 million total, $8.7 million GR) - Savings associated with reducing prepaid health plan capitation rates for Miami-Dade County by 4.5 percent based on a fraud and abuse adjustment. Freeze Florida Healthy Kids Corporation Capitation Rates ($10.2 million total, $3.2 million GR) Reduce Nursing Home Reimbursement Rates ($199.4 million total, $76.7 GR) -- Reduces the projected Medicaid nursing home expenditures by 7 percent, effective July I, 2010, but provides ability for nursing homes to partially restore this reduction through their quality assessment program. Funding, contingent upon federal stimulus, is provided to restore rate reductions approximately 2 percent. 2010 Session Summarv Page 13 Agenda Item No. 5E M 25 2010 Reduce Hospice Reimbursement Rates ($17.5 million total, $6.7 million GR) - Reduces the projected Medicaid hospice rates by 7 percent, effective July 1,2010. Partial buy back of rate reductions is provided with quality assessments. Funding, contingent upon federal stimulus, is provided to restore rate reductions approximately 2 percent. Reduce County Health Department Reimbursement Rates ($40.4 million total, $15.4 million GR) - Ability to buy back rate reductions is provided tlrrough county intergovernmental transfers. Hospital Outpatient Rate Reduction ($54.8 million total, $20.9 million GR) - Reduces the projected Medicaid hospital outpatient by 7 percent, effective July I, 2010; Exempts Children's Specialty and Rural Hospitals from the reduction. Ability to buy back rate reductions is provided through the use of intergovernmental transfers if available. Hospital Inpatient Rate Reduction ($232.2 million total, $89.2 million GR) - Reduces the projected Medicaid hospital inpatient rates by 7 percent, effective July I, 2010. Prepaid Health Plan Rate Reduction ($63.3 million total, $39.3 million GR) Reduces the projected Medicaid Prepaid Health Plan rates effective September I, 2009. (Prepaid Health Plan reimbursement rates are calculated as a percentage of the hospital inpatient, hospital outpatient, and County Health Department Clinic rates and receive a corresponding reduction when hospital inpatient rates are reduced). Florida Department of Elder Affairs Total budget for FY 2010-11 is $718.2 million, which is an increase of $15 million over the FY 2009-10 Appropriation - 2.10 percent increase. CARES/Long Term Care Diversion Staffing Increase - $1.6 million total, $444,255 GR - funding for an additional 25 FTEs to decrease backlogs and support services in the federally mandated CARES program and Nursing Home Diversion waiver program. Local Service/Home Care and Community Care for the Elderly - Fully funds community-based services for elders such as the Local Services Program. Community Care for the Elderly, Homecare for the Elderly, and Alzheimer's Disease Projects. Department of Children and Familv Services Total budget for FY 20]0-11 is $2.9 billion, which is an overall decrease of $44.9 million over the FY 2009-10 Appropriation 1.5 percent decrease, but $54.9 million increase in GR (0.7 percent increase). Restores nourecurring $45.6 million with GR funding for Mental Health and Substance Abuse Services ($32.8 million) and Maintenance Adoption Subsidies ($16.8 million). Provides $19.3 million for cash assistance payments for needy families. Provides $51 million in stimulus funds $22.6 million in cash assistance, $10.3 million for foster care, $8.6 million for homelessness prevention, $2.5 million for domestic violence prevention, and $7 million for public assistance eligibility determination. Reduces administration by $16.1 million and 167 positions. Reduces child abuse prevention services by $9.9 million, mental health services by $3.9 million. 2010 Session Summary Page 14 Agenda Item No. 5E M 25 2010 Agency for Persons with Disabilities Total budget for FY 2010-11 is $1 billion, which is an overall decrease of$71.9 million over the FY2009-10 Establishes a $150,000 annual cap on tier one waiver services which reduces state expenditures by $1.4 million. Individuals requiring intensive behavioral residential habilitation services or special medical home care are exempt. Reduces tiers two, three, and four annual expenditure caps by 2.5 percent for waiver services; Closes Gulf Coast Center as part of lawsuit settlement agreement - $10 million along with the elimination of 332 FTEs. Department of Health Total budget for FY 2010-11 is $2.91 billion, which is an overall decrease of$32.7 million over the FY 2009-10 Appropriation - l.l percent decrease. Provides $22.3 million to the Children's Medical Services Network as a result of the projected enrollment increase in Florida Kidcare program. Provides $50 million for Biomedical Research programs Provides $26.1 million in targeted stimulus funds - $9.7 million for Early Learning Intervention Services, $4.4 million for Immunization services, $1.4 million for Community Health Centers, $2.6 million and associated salary rate for 41 FTEs for certain county health departments for the expansion of dental health initiatives. Reduces administration by $6.3 million in general revenue funds. Reduces or eliminates general revenue funding for certain special projects, Children's Medical Services ($3.4 million), Healthy Start Services ($2.6 million), contributions to County Health Departments ($10.5 million). Natural Resources Appropriatious The Natural Resources Appropriations Committee (NRAC) contains $2.1 billion in funding for the 201 0- I I FY. This funding includes $173.1 million ($142 million recurring and $31.1 million non-recurring) in General Revenue funds and $2 billion in Trust Funds. In addition, there is $40 million in nonrecurring General Revenue contingent on the Federal Medicaid Assistance Percentage (FMAP) coming from the Federal Government. The total for the 2010-11 FY reflects a 5 percent increase from the FY 2009-10 funding levels ($2 billion) for all funds; $12 million reduction in recurring General Revenue, $46.2 million in Trust Fund Transfers to General Revenue. Departmeut of Environmental Protection Total budget of $1.44 billion: $40.8 million in GR, $1.4 billion in trust, and $40 million in FMAP funds. Florida Forever at $15 million Everglades Restoration at $50 million ($40 million contingent on FMAP) Beach Restoration Projects at $15.5 million Drinking Water Revolving Loan program at $99.7 million Wastewater Revolving Loan program at $171.6 million 2010 Session Summary Page 15 Agenda Item No. 5E M 25 2010 Total Maximum Daily Loads (TMDLs) at $6.25 million TMDL Sensor-Based System at $4 million Petroleum Tanks Cleanup Program at $120 million Nonpoint Source Management Planning Grants at $17.4 million Eliminated 14 vacant FTE positions and $0.9 million. Fish and Wildlife Conservation Commission The proposed agency operating budget is $296 million, including $28.8 million in General Revenue and $267 million in Trust Funds. Funded Wildlife Habitat Restoration Projects at $3.5 million. Funded Lake Restoration at $2 million. Increased Invasive Plant Control Program for one year by $3.6 million. Repealed the fee for the Shoreline Fishing License. PreK-12 Appropriations Total budget of$14 billion; increase of$585.3 million (4.38 percent) from the FY 2009-10. Includes: $9 billion General Revenue; increase of $904.2 million (11.21 percent). $242.7 million Educational Enhancement Trust Fund; reduction of $86.1 million (-26.2 percent). $110.6 million Principal State School Trust Fund; reduction of $48.9 million (-30.7 percent). $4.5 billion Other Trust Funds (including continued funds for Title !, IDEA, Education Technology, Education for Homeless Youths, and the National School Lunch Program). $1.9 billion Federal Education Stabilization Funds. Florida Education Finance Prol!ram (FEFP) Total budget of $8.9 billion; increase of $848.9 million (10.51 percent) from the FY 2009-10. Voluntarv Pre-Kinderl!arten (VPK) Total budget of $404.4 million; workload increase of $40.9 million for additional enrollment. Includes: $331.9 million GR; increase of $2.8 million (0.86 percent) trom the FY 2009-10. $72.8 million Discretionary Stabilization funds. $2,562 per student in school year program; reduction of$13 (0.5 percent). $2,179 per student in summer program; reduction of $11 (0.5 percent). NON-FEFP Total budget of$231.7 million; reduction of$42.6 million (15.6 percent) trom the FY 2009-10 total budget. Includes: $73 million GR; increase of$6.80 million (10.3 percent) trom the FY 2009-10 total budget. $158.7 million in federal funds; including $12.4 million Discretionary Stabilization funds. 2010 Session Summarv paue 16 Agenda Item No. 5E M 25 2010 State Universities and Private Colleges Appropriations The total budget for higher education is $7.03 billion, an increase of $314 million (4.7 percent) over the FY 2009-10. The total includes $4.91 billion in state and federal funding and $2.12 billion in tuition revenue for Workforce Education ($36.8 million), the Florida College System ($778.3 million), and the State University System ($1.30 billion). State and federal funding includes $3.42 billion in General Revenue, $738.4 million in Educational Enhancement Trust Funds, and $403.2 million in nonrecurring Federal Stimulus Funds. The stimulus funds are restored for the second and final year. An 8 percent tuition increase is authorized for Workforce Education, the Florida College System, and the State University System. State universities may also implement a 7 percent tuition differential. Florida Collel!e Svstem The total budget including tuition for the Florida College System is $1.9 billion, an increase of $126.5 million (7.1 percent) over the FY 2009-10. Additional state funding includes $36 million for enrollment growth. State Universitv Svstem The total budget including tuition for the State University System is $3.61 billion, an increase of$198.1 million (5.8 percent) over the FY 2009-10. Additional state funding includes $10 million for the New Florida Initiative; $3.9 million to continue implementation of the UCF and FIU Medical Schools, and $30.7 million for various academic and research enhancements. Private College and Universities The total budget for Private Colleges and Universities is $114 million, a reduction of $850,960 (0.7 percent) from the FY 2009-10. All eligible students are provided an award under the Florida Resident Access Grant (FRAG) and the Access to Better Learning and Education (ABLE) Grant programs. Award amounts are reduced by 4 percent. Transportation and Economic Development The Transportation and Economic Development Committee (TED) provides $9.9 billion in funding for the 2010-11 FY. This funding includes $286.1 million ($188 million recurring and $98.1 million nonrecurring) in General Revenue funds and $9.6 billion in Trust Funds. The total recurring General Revenue funding reflects a reduction of$ll.l million. The TED Committee's allocations included: $11.1 million in Recurring General Revenue Reductions $98.1 million in Non-Recurring General Revenue for Priority Spending Issues $348.3 million in Trust Fund Transfers to General Revenue Al!encv for Workforce Innovation Total Funding is $1.6 billion ($143.4 million GR and $1.4 billion TF) Regional Workforce Boards~Funded at $252.5 million. This is a $6.5 million-dollar reduction from the FY 2009-10 due to decrease in non-recurring T ANF funds needed for cash assistance in FY 2010-11 . Quick Response Training Program-Funded at $3.3 million to maintain FY 2009-10 levels. Unemployment Compensation Benefits System-Funded at $26.3 million to continue the second year of implementation. 2010 Session Summary Page 11 Agenda Item No. 5E M 25 2010 Department of Communitv Affairs Total Funding is $779.6 million ($9.8 million GR and $769.8 million 'IF). Florida Communities Trust Program-- This program is being moved back to the Office of the Secretary, where it was originally housed. FY 2009-10 included trust fund authority of $3.1 million for the Land Acquisition program and $375,000 for the Working Waterfronts program funded through a transfer from DEP. Regional Planning Councils~Funded at $2.5 million from recuning General Revenue. This is the FY 2009- I 0 funding level. Front Porch Florida~The elimination of one FTE and related costs associated with the Front Porch program. The front porch program has not been funded in a couple of years. However, $500,000 of funding is provided for the Youth Empowerment and Leadership Development Academy, a Front Porch Florida Initiative. Down Payment Assistance-- There is $37.5 million in housing trust fund appropriations to the Florida Housing Finance Corporation to provide down payment and closing cost assistance in conjunction with the First Time Homebuyer Program. Office of Tourism. Trade. and Economic Development (OTTED) Total funding is $98.7 million ($47 million GR and $51.7 million 'IF). Quick Action Closing Fund-- There is $1 million in non-recuning General Revenue for the Quick Action Closing Fund. The FY 2009-10 funding level is $13.5 million. Visit Florida-There is approximately $27 million in total funding for VISIT FLORIDA. This is a $5.5 million increase over the FY 2009-10 funding level. Department of State Total funding is $88.3 million ($55.5 million GR and $32.9 million TF). Cultural and Museum Grants.-$2 million in non-recuning General Revenue for Cultural and Museum Grants. The FY 2009-10 funding level is $2.5 million. Historic Preservation Grants~$650,OOO in non-recuning General Revenue to Historic Preservation Grants. The FY 2009-10 funding level is $550,000. Special Elections~$1. 9 million in non-recuning General Revenue for reimbursements to counties for Special Elections. Library Cooperatives---$1.2 million in non-recurring General Revenue for Multi-County Libraries. The FY 2009-10 funding level is $1.2 million. State Aid to Libraries~Fully funded at $21.2 million in non-recuning General Revenue. This is the FY 2009-10 funding level, however the non-recuning funding is provided to restore $8.5 million in recuning General Revenue reductions. Department of Transportation Total funding is $7 billion (all TF). Of this amount, $5.8 billion is included for the first year of the five- year Work Program. 2010 Session Summarv Page 18 Agenda Item No. 5E Ma 25 2010 Trust Fund Sweeps Housing Trust Funds-$174.1 million-There is a non-recurring reduction of $85.5 million in affordable housing funding authority in the housing trust funds. The remaining funds come from increased revenue projections in both 2009-10 and 2010-11. Grants and Donations at DCA-$12 million-There is a non-recurring transfer to General Revenue of $12 million from the Grants and Donations Trust Fund at DCA. These funds are excess cash and the transfer does not impact operations of the Department. Emergency Preparedness and Assistauce Trust Fund-$2 million-There is a nonrecurring transfer to General Revenue of $2 million from the Emergency Preparedness and Assistance Trust Fund at DEM. These funds are excess cash and the transfer does not impact operations of the Department. State Transportation Trust Fund-$160 Million-There is a non-recurring transfer to General Revenue of $160 million from the State Transportation Trust Fund. The transfer may have minimal impacts on future project commitments. No projects currently under contract are affected. In addition, $40 million in nonrecurring General Revenue is provided to be deposited back into the State Transportation Trust Fund if the state receives FMAP funding this year. 2010 Session Summary Page 19 Agenda Item No. 5E Ma 25 2010 Collier Countv 2010 State Leeislative Priorities I. Libraries - Support State Aid to Libraries and Cooperatives like the Southwest Florida Library Network. After being zeroed out late in the budget conference process, the legislature found' $21.2 million to fully fund the state aide to libraries in the FY 2010-11 Budget. The library cooperative program was also funded at $1.2 million which is equivalent to current yearfunding. II. Home Rule - Support home rule authority of local governments. Every year the legislature introduces legislation on varying issues which impact the home rule authority of governments. The 2010 Session is no exception. Most harmful bills to local government die or are amended to minimize their impact. However, A late attempt to withdraw SJR 1254 Homestead Property Exemption from committee to the Senate floor which made changes to the 1st Time Homeowner /Non- homestead cap amendment died in the waning days of Session. The bill expanded and doubled the proposed exemptionfiJr 1st time home buyersfrom $100,000 to $200,000 and capped non-homestead tax increases from lO% to 5% The bill would have also carved out ad valorem for schools putting the entire .fiscal impact o{ the proposed constitutional amendment 0/1 cities and counties. The estimated impact to counties and cities 1-vas $450 milhon by the fourth year. III. Unfunded Mandates -- Oppose state directives requiring local governments to deliver services without providing the necessary funding to cover the expense. SB 742 Certified Dispatchers did pass the legislature which requires all 9ll operators to be trained and certified. The state will provide a portion ofthefimding but the bill will have an indeterminate negative fiscal impact on counties. The Sovereign Immunity bill, SB 2060, also passed the legislature and has been approved by the Governor. The bill has an indeterminatefiscal impact to local governments because it raises the caps on civil claims to $200,000 per individual claim and $300,000 per aggregate claimjl-om the current $100,000 and $200,000 caps. IV. Revenue & Expenditure Caps (TABOR) - Oppose legislative or Constitutional restrictions on County authority to determine local tax burden or local financial commitments to services and quality of life. A TABOR (Taxpayer Bill of Rights) bill, SJR 2420, was filed in the Senate this year. 1/1 short, the bill proposed an amendment to the State Constitution to limit state and local government revenues and require voter approval of new taxes andfixs. A House committee bill PCB FTC lO-J3 was also filed by the Finance and Tax Council. The Issues died in committee without making it to either chamberfloor. V. Affordable Housing - Support removal of the cap on Sadowski Housing Trust Funds. Rep. Aubuchon introduced HE 665 this year, which among other items. removed the cap on the Sadowski trust fund. Un{ortunately, the Senate introduced an amendment the last day of Session related to development order extensions in which the House refused to accept. The bill died in messages. 2010 Session Summary Page 20 Agenda Item No. 5E M 25 2010 VI. Impact Fees - Support maintaining home rule authority over administration of the County's existing impact fee program. No legislation or amendments were introduced this year dealing with impact fees. In fact very little in the way of growth management legislation was brought forward because of the pending Hometown Democracy amendment. Certain legislators were fearful of provoking proponents of the amendment if any further action was taken on growth management. The latest polls show 61% of those questioned favor of Amendment 4. VII. Transportation Oppose raiding of the Transportation Trust Fund. The trustfund was initially raided for $450 million by the House. During budget conversations that amount was reduced to a still sizable $160 million reduction in the trustfund. Although, the additional fundingfor the trust fund is contingent on FMAP dollars which has not been approved by Congress to date. Support earlier Receipt of Crash Reports -- Include local traffic engineering agencies with police agencies in being able to receive crash reports without current 60-day wait. We worked with Rep. Aubuchon and Senator Gardiner to include this provision in HB 971. The bill passed the legislature but is subject to approval of the Governor. . Support state legislation that affirms authority of Counties to install red light cameras at intersections and implement enforcement programs. After a 5 year battle, the Red Light Camera legislation was ultimately passed and signed by the Governor this Session. The bill established DOT oversight ol camera installations and provides distribution of the $158fine. (See page 51 for details on the bill) Support modilication to Section 339.135(4)(a)l, Florida Statutes to strengthen requirement for use of an allocation formula "to assure that no district or county is penalized for local efforts to improve the State Highway System. " This issue was not introduced this year as FDOT faced severe reductions infundingfrom the legislature in an effort to sure up budget shortlalls. VIII. Revenne Enhancements Dotcom - Support the tourism industry position 'on Dotcoms which is to have those companies collect and pay the sales and tourist development tax due on the total amount charged the visitor, not the net amount paid the hotel. The revenue lost to both the state and counties from the actual taxes due and what is currently received is significant. Senator Lynn and Rep. Long introduced SB 156/HB 335 this year to require companies collect and pay the sales and tourist development tax due on the total amount but die in committee. Related legislation benefitting the internet companies also failed to pass leaving the issue unchanged or unresolved this year. 2010 Session Summary Page 21 Agenda Item No. 5E M 25 2010 Support Gas Tax Indexing. After being introduced by Senator Bennett and others in past years, the issue was not introduced this year largely because of the economic atmosphere. IX. Consultants Competitive Negotiation Act (CCNA) - Support legislative changes to CCNA that allow weighing multiple factors including qualifications and price before selecting the top finn and before commencing negotiations; oppose industry interests from further restricting the discretion of local government under the law. Representatives of the engineering and architecture associations met with Collier County in Tallahassee to discuss the CCNA local process. All sides have initially agreed to pursue subsequent meetings to resolve differences. No legislation or amendments werefi/ed to restrict local governments. X. Alligator Alley - Affirm Board's previous position to oppose leasing of Alligator Alley to private entities. Ailigator Alley did not present itself as an issue this year, because of the opposition voiced last Session to privatizing roadways. XI. Shared OchopeelEmergency Medical Services (EMS) Fire Station & Florida Department of Transportation (FDOT) - Support discussing one-time capital allocation from FDOT for cost of facilities and start -up equipment; and seek reimbursement for recurring operating expenses on a long-term contract basis. Because of the economic downturn and budget shortfalls facing state lawmakers this Session, capital allocationsfor projects were scarce. FDOTwill most likely postpone Work Program projects because of the reductions to trust fund dollars. XII. Offshore Drilling in Gulf of Mexico - Affirm Board's previous position with approval of Resolution 2009-117, which opposes offshore drilling within 25 miles of the Gulf of Mexico coastline. There was significant testimony taken during committee hearings on the issue of lifting the oil drilling ban in Florida waters during the 2010 Session. The issue was a top priority of Senator Mike Haridopolis and Representative Dean Cannon, both respective incoming leaders of the Senate and House. However, the issue stalled when the Senate President stated the Senate was not interested in taking up the issue this year. In an effort to slow the legislation down, President Atwater calledfor a committee to study the issue in depth. A few weeks later, the D'eep Horizon oil rig exploded and sank to the ocean floor oif the coast of Louisiana gushing 200,000 gallons of oil a dayfi'om the well, threatening Florida and the Gulf Coast. State leaders have since stated that oil drilling has been shelvedfor the foreseeable future. We worked with FAC, FLC. and other interested parries to oppose the drilling legislation early this Session before the oils spill in the Gulf Governor Crist has indicated that he will call a Special Session to propose a constitutional amendment to ban offshore oil drillingfi"om the coast of Florida. 2010 Session Summary Page 22 Agenda Item No. 5E M 25 2010 XIII. Fire District Bills - Oppose Panther Creek Consolidation Legislation and Paradise Coast Consolidation Legislation proposed by independent fire districts in Collier County. The local bills were introduced this Session but died in committee, as the county commission and was opposed to the legislation and there was no consensus among the delegation. XIV. Economic Development - One of Collier County's goals is Economic Development which promotes a full range of high wagelhigh-skilled employment and business opportunities that will improve the economy, increase the tax base, and encourage innovation and economic diversity. Collier County supports policies to enhance economic development utilizing various programs and tools to induce targeted business expansion, retention, attraction, new capital investment and job creation. The legislature utilized $75 million in FMAP fUndsfor the Innovative Incentive Program which allows the state to respond quickly to economic opportunities and to compete for high-value research and development, innovation business, and alternative and renewal energy projects. The funding of the project is Out of this amount, $50 million is provided as part of$130 million 3 year commitmentfrom the state to fund the development of a research institute focused on genetics and personalized medicine. The eligibility criteria for the project has been written in a way tofacilitate Jackson Laboratory to construct a facility in Southwest Florida (Collier County) for a genetic researchfacility. The money is contingent on several other factors including: 1) The mechanism to provide local matching funds will be adopted by the local government within 120 days of the grant award from OTTED, and such local commitment must include at least $130,000,000 of cash, committed future revenues which OTTED determines to have a value of $130,000,000, land or inji-astructure, or some combination thereof equaling $ 1 30,000,000; 2) As part of the local match requirements in Section 288.1089, Florida Statutes, the project must have secured a site qf sufficient size, and construction shall commence within 60 days of adoption of the local matchingfunds mechanism; 3) Within 180 days of the award being granted, the entity, in coordination with public and private partnerships, shall commence a philanthropic campaign of up to $120,000,000. Revenues derived from such a campaign may include but are not limited to cash or credit worthy personal guarantees of philanthropic support. This effort must document with OTTED the expected fundraising benchmarks for thefirst, .fifih and tenth year of the project, 4) The entity may not have received prior funding from the Florida Innovation Incentivefund or any other state funds; 5) The site of the facility should be within 25 miles of a state designated rural area of critical economic concern; 6) Specific deadlines for construction and employment; and 7) The project will attract substantial additional economic activity to the region. The grant may be awarded, but no funds may be released if these requirements are not met. If these requirements are not met by March 1, 2011, thefunds provided above shall revert to the General Revenue Fund 2010 Session Summary Page 23 Agenda Item No. 5E M 25 2010 Support a more coordinated and streamlined regulatory process within state level agencies, while supporting local governments and their ability and flexibility to make decisions at the local level that enhance economic development opportunities. Support funding for Florida's Economic Development Transportation Fund (Road Fund) at $20 million. This is one of Florida's oldest and most successful economic development incentive programs and is designed to keep our state competitive in attracting high wage jobs. Because of rising costs and increased project activi~V, mure allocation is needed in order to improve our competitiveness. The Road Fund was fully funded at $20 million in the FY 2010-11 Budget. Support the Quick Response Training Program ($5 million) and the Incumbent Worker Training Program ($2 million). The best investment we can make is in our wodiforce. Training programs, such as QRT and IWT, ensure that Florida has an available and skilled workforce to meet the demands of our growing high wage emplovers. The Quick Response Training Program was fimded $3.1 million ji-om General revenue and Trust Fund dollars and the Incumbent Worker Training Program wasfimded at $2 million. XV. Elections Extension - Support the Supervisor of Elections request that the deadline for the County to comply with the Federal and State unfunded mandate to purchase new Americans with Disabilities Act (ADA) voting units be extended until 2016. Legislation requiring a paper-based voting system for persons with disabilities by 2012 will cost the County about $687,500. HB 131 Elections passed this Session delaying implementation of the ADA voting interfacefi'om20I2 to 2016. (See page for more details) Enacted Lef!islation & Issues to Monitor: SB 1 OOO/Discretionary Sales Surtaxes/Fire Rescue Services Seminole Gaming Compact/Revenue sharing (3%) with affected local governments for il~f;'astructllre SB 622 Gaming passed with the 3% local government revenue sharing and the Compact has been signed by the Governor. See page for details of bill. Beach Renourishmellt/US Supreme Court Case - Support public beach access Beach Renourishment was funded at $15.5 million, while no provisions related to beach access were introduced during the 2010 Session. SB 360 (Growth Management) - Permitting, Transportation Concurrency Exception Areas (TCr.A 's); Preserve present real-time concurrenC)' program. Mobility Fee (MF) - If there is to be a MF, the County needs to insure that the dollars collected are expended within, and in coordination .with, the jurisdiction in which the MF is generated. Several amendment related to gr011'th management issues were introduced this Session but ultimately failed. Provisions protecting developers/i'om ongoing legal challenges to SB 360 which was passed last year were inserted into SB 1752. 2010 Session Summary Page 24 Agenda Item No. 5E M 25 2010 Property Insurance Substantial property insurance bills (SB 2044, SB 2176) were passed this Session. Please page 43 for details on the bills. Hometown Democracy The Hometown Democracy amendment would require a public r~ferendum before a local government could amend or adopt a change to the local comprehensive plan. According to a recent poll, 61 percent ~f those surveyed said they would vote yes on the proposed amendment, compared to 18 percent no and 21 percent undecided. The constitutional amendment must be approved by 60 percent of the voters in order to pass. 2010 Session Summary Page 25 Agenda Item No. 5E M 25 2010 Major Legislation That Passed the 2010 Session Seminole Indian Gaming Legislation CS/SB 622 -Gaming- Approved by Governor It ratifies the Compact executed between the Governor and the Seminole Tribe of Florida (the Tribe) on April 7, 2010, and requires the Governor to cooperate with the Tribe in seeking approval of the ratified Compact by the Secretary of the United States Department of Interior. It also amends the Governor's authority to negotiate future tribal gaming compacts, as well as the procedures for transmitting such documents to the Legislature. Pari-Mutuels It changes the effective date of specific pari-mutuel provisions that were enacted in the 2009 Regular Session but which have not yet taken effect; it makes those provisions effective July I, 2010. The Ratified Compact Covered Games The Compact grants the Tribe the right to offer Class III slots (Vegas-style slots) at their facilities in Broward and the exclusive right to offer Class III slots at their tribal facilities outside Broward and Miami- Dade. The Tribe would also have the exclusive right to offer banked card games at five of its seven tribal facilities, specifically its three facilities in Broward County, its facility in Collier County, and its facility in Hillsborough County. The tribe would receive the right to offer banked card games at its remaining facilities if the State authorizes banked card games for any person for any purpose, except for another federally-recognized tribe that has land in federal trust as of February I, 20]0. Additionally, the Tribe is granted the right to offer raffles and drawings and any new game authorized by Florida law for any person for any purpose. Term of the Compact The Compact grants the Tribe the right to operate slot machines for 20 years and the right to operate banked card games at its facilities in Broward, Collier, and Hillsborough Counties for the first 5 years of the Compact. ]f the Legislature does not affirmatively renew the banked card games, the Tribe must cease operating banked card games within 90 days of the expiration of the five-year term. If the Tribe does not cease operations, the State is entitled to seek immediate injunctive relief in court. Tribal Payments The Compact provides that the Tribe agrees to make payments to the State from the Tribe's net win in consideration ofthe substantial exclusivity accorded to the Tribe by the State. Net win is defined in the Compact to mean the "total receipts from the play of all covered games less all prize payouts and free play or promotional credits issued by the' Tribe." The chart on the following page displays the applicable revenue sharing payments that are to be made by the Tribe to the State: 2010 Session Summary Paye 26 Agenda Item No. 5E M 25 2010 Initial Period (First 24 Months After Compact's Effective Date) Year 1 Year 2 Guaranteed Minimum $150M 1st Revenue cycle 2nd Revenue cyele Year4 3rd Revenue Cycle 4th through 18th Revenue cycles Years 6 throu h 20 No Guaranteed Minimums Revenue Sha re for these cycles are calculated using % amounts below 12 percent of net win up to $2 B 15 percent of the net win over $2 B up to and including $3 B 17.5 percent of the net win over $3 B up to and including $3.5 B 20 percent ofthe net win over $3.5 B up to and including $4 B 22.5 percent of the net win over $4 B up to and including $4.5 B 25 percent ofthe net win over $4.5 B Year3 Year 5 The Compact also provides that the State shall be reimbursed for the cost of regulation in an amount not to exceed a $250,000 annual oversight assessment. Additionally, it requires the Tribe to contribute $250,000 per facility per year to the Florida Council on Compulsive Gambling. Guaranteed Minimum5 $ 233 M Guaranteed Minimum $ 234 M Finally, the Compact requires the Tribe to continue making payments to the State prior to the Compact taking effect so long as the Tribe continues operating Class III gaming and provides that moneys paid by the Tribe prior to the Compact going into effect are released by the Tribe without further obligation or encumbrance. The Compact does not designate where revenue sharing is to be deposited; however, the bill directs their deposit into the General Revenue Fund (GR). The Compact specifies that 3 percent of the Tribe's revenue share payment to the State is to offset impacts to local government as provided by the Legislature. In accordance with the ratified Compact, the bill details a schedule for the distribution of 3 percent of the revenue share payment from GR to local government. Under the local government revenue sharing schedule, the proportionate revenue share contributed by each tribal facility is to be distributed to local government as indicated in the chart on the following page: The Guaranteed Minimum Amounts apply unless the percentages below would y,eld a greater amount 2010 Session Summarv Page 21 Agenda Item No. 5E M 25 2010 !i;;Brrilillard.Cou Seminole Iridian Casino at Hollywood 15 % Broward County 65 % Oty of Hollywood 10 % Oty of Dania Beach 10 % Town of Davie Seminole Iridian Casino at HollYWOod 15 % Broward County 65 % Oty of Hollywood 10 % Oty of Dania Beach 10 % Town of Davie Seminole Iridian Casino at Coconut Creek 7.5 % Broward County 65 % Oty of Coconut Creek 15 % City of Coral Springs 10 % Oty of Margate 2.5 % Ci of Parkland '.'i ""C" ,:,'. other.5 eci1ied Counties:': '.,,'J',. Seminole Iridian Casino at Briehton 100 'l6 Glades County Seminole Indian Casino at Immokalee 100 'l6 Collier County Seminole Iridian Casino at Bia CVore5S 100 'l6 Hendry County Seminole Hard Rock Hotel & Casino at Tamoa 100 % HiIIsborou h Coun Exclusivity & Reduction of Revenue Sharing Under the Compact, the tribal exclusivity is considered breached and tribal revenue sharing ceases if Florida law is amended or interpreted to authorize Class 11I gaming or "other casino style games" not in operation on February 1, 2010. The phrase "other casino style games" is defmed to include slot machines, electronically assisted bingo or electronically assisted pull tab games, table games, and VLTs or similar games. Under the Compact, if the discontinuance of revenue share provisions is triggered by legislative act or constitutional amendment (i.e., new gaming is authorized) then revenue sharing will cease when the newly authorized gaming begins. If the discontinuance of revenue share provisions are triggered by judicial ruling or administrative act and the new gaming begins, the Tribe will eontinue to make payments into an escrow account. The Legislature will have 12 months to act to remedy the breach of exclusivity. If the gaming is stopped or the Legislature makes the activity illegal, the moneys will be released to the State. If the Legislature fails to act or the gaming continues beyond 12 months, then the moneys will be released to the Tribe. The Compact further provides exceptions that would not be considered a breach of exclusivity and, therefore, would not result in a complete discontinuance in revenue sharing. These exceptions include the operation of the following games or activities: -Slot machines at the eight presently operating licensed pari-mutuel facilities in Broward and Miami- Dade Counties provided the licenses are not transferred or moved to operate slot machines at another location; -Pari-mutuel wagering activities at pari-mutuel facilities licensed by the State; -Poker, including no-limit poker, at card rooms licensed by the State; 2010 Session Summary Page 28 Agenda Item No. 5E M 25 2010 -Lottery games of the type authorized by law and operated by the Florida Department of Lottery (DOL) as of February I, 2010, excluding any: -Player-activated or operated machines or devices other than up to a maximum of 10 electronic lottery vending machines at anyone facility which dispense: -Instant paper tickets (Le., scratch-offs); Paper tickets where the winner is selected at a later drawing conducted by DOL; or -Electronic instant tickets where a winning ticket is selected by touch screen; however, electronic instant ticket machines may not be installed at licensed pari-mutuel facilities. -Banked or banking card or table games. Games authorized by ch. 849, F.S., as of February I, 2010, which would include bingo, penny ante poker, dominoes, et cetera; -A combined total of not more than 350 restricted Historic Racing Machines and restricted Electronic Bingo Machines, as authorized by law, at each pari-mutuel facility licensed as of February I, 2010, except for pari-mutuel facilities in Broward County or Miami-Dade County; or -Class III games authorized by a State compact with another federally-recognized tribe with land in federal trust in Florida as of February 1,2010. Therefore, additional exceptions in the Compact that would not trigger a complete discontinuance or cessation of revenue sharing but could have the effect of reducing revenue sharing payments. Authorization of the following ganling activities could reduce revenue sharing payments under certain conditions: -Authorization of Class III or other "casino style games" (except slots) at the eight presently operating licensed pari-mutuel facilities in Broward and Miami-Dade Counties would entitle the Broward Tribal facilities to reduce their payments by an amount equal to 50 percent of any decline in their revenues. In addition, the Tribe would no longer be subject to paying the guaranteed minimums, but instead would make payments in accordance with the percentage revenue sharing schedule. -Authorization by law or constitutional amendment of any new Class III or other casino style games at a facility in Broward or Miami-Dade Counties-other than at any of the eight presently operating licensed pari-mutuel facilities in those counties-would trigger a cessation of the revenue share derived from the Broward tribal facilities. The Tribe would also be released from making the guaranteed minimum payments; however, they would still be obligated to make payments based on the percentage revenue sharing schedule and the net win generated from the Tribe's facilities outside of Broward. -Authorization of Internet/online gaming by the State would relieve the Tribe from making the guaranteed minimum payments if the Tribe's net win declines more than 5 percent. However, the Tribe would still be required to make payments based on the percentage revenue sharing schedule. Also, the Tribe would not be relieved from paying the guaranteed minimums. State Oversight and Independent Audits Under the Compact, regulatory responsibility belongs to the Tribe; however, the State has an oversight role to ensure compliance with the Compact's terms. The Tribe is responsible for ensuring that facilities and covered games are operated in compliance with the Seminole Tribal Gaming Code, the rules, regulations, procedures, specifications and standards adopted by the National Indian Gaming 2010 Session Summary Page 29 Agenda Item No. 5E M 25 2010 Commission, and the Compact. The bill statutorily designates the Division of Pari-mutuel Wagering of the Department of Business and Professional Regulation as the state agency to carry out oversight responsibilities. The Compact authorizes the State to conduct a random inspection each month which shall not last for more than two days or 10 hours, except when substantial noncompliance is discovered, and additional time is deemed necessary by the Department. There is an annual cap of 1200 on-site hours for all random inspections and audits across all facilities. Although the Department may have access to the public areas without notice, the Department must notifY the Seminole Tribe Gaming Commission at the commencement of an inspection, and at least one-hour notice is required when the inspection will include non-public areas of the facility. Additionally, the State may secure an annual independent audit of the operation of covered games and the revenues connected with covered games. In the Compact, the Tribe waives its sovereign immunity for tort claims in the same levels waived by the State: up to a $100,000 per person and $200,000 per occurrence. The Tribe must maintain insurance coverage sufficient to pay covered claims made by patrons up to the immunity waiver limits. Patron claims against the Tribe or its subordinate governmental or economic units or agents must be made solely against the Tribe as the only party in interest. The Pari-mutuel Provisions The bill changes the effective datc of certain pari-mutuel provisions that were enacted in the 2009 Extended Regular Session. The legislation made those provisions effective only if a Seminole gaming Compact was negotiated in accordance with the legislation, was ratified by the Legislature, and then approved at the federal level. Since those contingent events never occurred, the pari-mutuel provisions have not taken effect yet. The bill specifies July 1. 2010, as the date for them to take effect and removes the contingencies related to the approval of a gaming Compact. The major pari-mutuel provisions enacted in the 2009 Extended Regular Session contained in ch. 2009- 170, Laws of Florida, which this bill makes effective July 1, 2010, include: -Reducing the tax rate on slot machine revenue from 50 percent to 35 percent but requiring the payment of tax revenue in an amount no less than the amount collected in FY 2008-2009; -Gradually reducing the slot machine annual license fee from $3 million to $2 million; -Allowing for slot machines to be linked using a progressive system; -Providing that the payout percentage of a slot machine facility shall be no less than 85 percent; -Authorizing Class III slot machines in a county that has had' a referendum approving slots or has a referendum approving slots that was approved by law or the Constitution provided that such facility has conducted two years of racing and complies with other requirements for slot licensure; -Providing that an initial card room licensc shall not be issued unless the permit holder has a facility and has begun racing; -Allowing for the conduct of no limit poker in card rooms; -Extending the hours of card room operation from 12 hours per day to 18 hours per day Monday through Friday and 24 hours per day Saturday and Sunday. 2010 Session Summary Page 30 Agenda Item No. 5E M 25 2010 -Gradually increasing the number of performances that comprise a full schedule of live racing for quarter horses; -Allowing quarter horse permit holders to run thoroughbred races up to 50 percent of the time; -Authorizing a quarter horse permits to convert to a limited thoroughbred permit; -Restricting quarter horse permit holders to a 35-mile lease restriction; -Authorizing a jai alai permit to convert to a greyhound permit if certain requirements are satisfied; -Streamlining regulatory procedures for the pari-mutuel industry by: Changing the term "year" to FY instead of calendar year; -Requiring monthly payment of taxes instead of weekly payments beginning on July 1, 2012; -Providing a consistent defmition of the term "conviction" for purposes of licensure; -Providing flexibility for occupational license renewal and fees; -Providing enhanced fingerprint regulations; -Expanding the current cruelty to animal prohibitions; and -Providing for greater flexibility in the payment of breeders' and stallion awards. Agricultural and Environmental Legislation SB 550 Environmental Protection - Subject to Approval by Governor The bill reorganizes existing sections of ch. 373, F.S., that address water supply policy, planning, production and funding, and, making no substantive changes, moves those sections into a new Part VII. Numerous conforming cross-reference changes are provided. The bill provides legislative intent that the creation of Part VII of ch. 373, F.S., is to reorganize certain existing provisions of Part I of ch. 373, F.S., and does not make any substantive changes to existing law or judicial interpretation thereof. Substantive changes to water supply policy outside of the reorganization include adding conservation projects that result in quantifiable water savings to projects that are eligible for state and water management district (WMD) funding, and directing WMDs to give significant weight to whether the local governments in which a project is located have implemented a high water protection tax assessment program when determining project funding. Mining Operations Life of the Mine - The Mandatory Non-phosphate Program, within the Department of Environmental Protection (DEP), Bureau of Mine Reclamation, administers the laws and regulations related to the reclamation of mined land and the protection of water resources at mines extracting heavy minerals, fuller's earth, limestone, dolomite and shell, gravel, sand, dirt, clay, peat and other solid resources (except phosphate). Operators who mine heavy minerals or fuller's earth, but not limestone, can apply for life-of- 2010 Session Summary Page 31 Agenda Item No. 5E M 25 2010 the-mine permits. The application for a life-of-the-mine permit is reviewed based on the requirements of the statutes and rules for the Environmental Resource Permit (ERP) and conceptual mining and reclamation plan. The bill authorizes DEP to issue life-of-the-mine permits for limestone operations, and clarifies that nothing in that authorization prohibits a local government's authority to oppose, approve with conditions, deny, or impose a different permit duration. Miami -Dade Lake Belt Mitigation - Construction aggregates provide the basic materials needed for concrete, asphalt, and road base. The most economically advantageous deposits of aggregate materials are located in 79 square miles in Northwest Miami- Dade County known as the Lake Belt. After performance of a comprehensive 3-year environmental study of the potential impacts of mining in the Lake Belt, the Corps issued a "Record of Decision" on January 29, 2010, authorizing new permits for continucd operations. The current mitigation fee is 24 cents per ton. The bill increases the mitigation fee to 45 cents per ton on or before December 31 , 20 II. Florida Keys Area of Critical State Concern The Florida Keys Area was designated as an area of critical state concern over 30 years ago for the purpose of providing state policies to guide decision making at the local level to protect natural resources and the environment, reverse the deterioration of water quality, and facilitate orderly, well planned growth while protecting property rights. The bill clarifies current law authorizing the issuance of Everglades restoration bonds to finance wastewater facilities within the Florida Keys Area of Critical State Concern. Authorized bonds may not exceed $200 million and are limited to $50 million per fiscal year. The bill revises legislative intent relating to the Florida Keys Area of Critical State Concern to add intent to: promote an appropriate land acquisition and protection strategy for environmental lands within the Florida Keys; protect and improve the near shore water quality of the Florida Keys through the construction and operation of wastewater management facilities; and ensure that the population of the Florida Keys can be safely evacuated. The bill makes removal of the Area of Critical State Concern designation for the Florida Keys Area contingent on the completion of the wastewater treatment work plan, specified in rules of the Florida Administration Commission (Commission). The bill also revises criteria by which amendments to local comprehensive plans in the Florida Keys Area must be reviewed. The bill adds the detailed onsite sewage treatment system requirements in clio 99-395, LOF, to statute, and requires, after July I, 2010, all new, modified, or repaired systems to meet higher treatment standards. In areas scheduled to be served by central sewer by December 31, 2015, if the property owner has paid a connection fee or assessment for connection to the system, an onsite system may be repaired to lesser, specified standards. The bill extends the wastewater compliance deadline for existing onsite sewage treatment systems from July 1,2010, to July 1,2015. The bill extends from July 1, 2010, to December 31, 2015, the completion deadline for required wastewater treatment facilities, and requires all new and improved facilities to meet standards by December 31,2015. Wastewater treatment facilities in operation as of July 1, 2010, which are located within areas to be served by Monroe County, municipalities in Monroe County, or special districts, and which are owned by other entities, are not required to comply with the standards until January 1, 2016. 2010 Session Summary Page 32 Agenda Item No. 5E M 25 2010 Permits in effect for those facilities as of June 30, 2010, are extended until December 31, 2015, or until the facility is connected to a local government central wastewater system. All wastewater treatment facilities in operation after December 31, 2015, must comply with the treatment and disposal requirements and with DEP rules. The bill adds the detailed onsite sewage treatment system requirements in ch. 99-395, LOF, to the statute, and prohibits the discharge of domestic wastewater into surface waters. All new required wastewater systems must be completed by December 31, 2015, including facilities located outside local government and special district service areas. Wastewater treatment facilities that have desib'll capacities greater than or equal to 100,000 gallons/day must produce an effluent that contains no more than the following concentrations: -Biochemical Oxygen Demand of 5 mg/l; -Suspended Solids of 5 mgll; -Total Nitrogen of3 mgll; and -Total Phosphorus of 1 mgll. Facilities that have design capacities of less than 100,000 gallons/day must produce an effluent that contains no more of the following: -Biochemical Oxygen Demand of 10 mgll; -Suspended Solids of 10 mg/l; -Total Nitrogen of 10 mgll; and -Total Phosphorus of 1 mg/l. Class V injection wells must also meet certain requirements. A backup well may only be used under certain conditions. However, disposal systems serving as backups to reuse systems must comply with specified requirements. The bill provides that ifit is demonstrated that a discharge, even if the discharge is otherwise in compliance with the standards established in the bill, will cause or contribute to a violation of state water quality standards, the DEP shall: -Require more stringent effluent limitations; -Order the point or method of discharge changed; -Limit the duration or volume of the discharge; or -Prohibit the discharge. All sewage treatment facilities must monitor effluent for total nitrogen and total phosphorus concentration as required by DEP rule. The county, each municipality, or special districts may require connecting wastewater treatment facilities owned by other entities to a central sewer system within 30 days after notice of availability of service. The DEP is authorized to adopt rules necessary to carry out the bill's provisions relating to sewage disposal facilities. Onsite Sewage Treatment and Disposal Systems The DOH oversees an environmental health program as part of fulfilling its public health mission. The purpose of this program is to detect and prevent disease caused by natural and manmade factors in the environment. One component of the program is an onsite sewage treatment and disposal function. The 2010 Session Summary Page 33 Agenda Item No. 5E M 25 2010 DOH estimates there are 2.6 million septic tanks in use statewide. The Bureau of Onsite Sewage Programs develops statewide rules and provides training and standardization for County Health Department employees responsible for permitting the installation and repair of onsite sewage treatment and disposal systems (septic tanks) within the state. The bureau also licenses septic tank contractors, approves continuing education courses and courses provided for septic tank contractors, funds a hands-on training center, and mediates septic tank contracting complaints. The bureau manages a state-funded research program, prepares research grants, and reviews and approves innovative products and septic tank designs. The bill establishes a statewide program requiring all onsite sewage systems to undergo an inspection once every five years. The program must begin January I, 2011, and the DOH must ensure statewide implementation by January 1,2016. Evaluation must include a tank and drainfield evaluation, a written assessment of the condition of the system, and a disclosure statement. Systems installed prior to January I, 1983, must meet 6 inch-12 inch separation standards. Systems installed after that date must meet 12 inch-24 inch separation standards (bottom of the drainfield to the wettest season water table elevation per department rule). The DOH must give a minimum 60 days notice ofthe evaluation deadline. Evaluations must be performed by either a master septic tank contractor, engineer with wastewater treatment experience, or environmental health professional. The fee for the five-year evaluation report may not be less than $15, or more than $30 - paid to the evaluator and remitted to the department. At least $1 and no more than $5 collected shall be used to fund grant programs to assist low income households. Prior to January I. 2011, the Surgeon General, after consulting with the Revenue Estimating Conference, must determine a revenue ventral fee schedule. The bill provides that such a determination is not subject to the Administrative Procedures Act (ch. 120, F.S.). The bill provides that documentation of a tank pump-out, or a permitted new installation, repair, or modification of the system within the previous five years, documentation of the capacity of the tank, and indication that the condition of the tank is not a sanitary or public health nuisance, indicate that no pump- out of the tank is required. The bill requires that effective January I, 2012, the DOH administer a grant program to assist owners of onsite systems. A grant may be awarded to an owner only for the purpose of inspecting, pumping, repairing, or replacing a system serving a single family residence occupied by an owner with a family income of less than or equal to 133 percent of the federal poverty level at the time of application. Ocean Outfall Requirements There are six domestic wastewater facilities in Palm Beach, Broward, and Miami-Dade Counties discharging approximately 400 million gallons per day of treated domestic wastewater directly into the Atlantic Ocean through ocean outfalls. Wastewater facilities that discharged wastewater through an ocean outfall on July 1,2008, are required to install a reuse system no later than December 31, 2025. The reuse systems must be capable of providing a minimum of 60 percent of the wastewater facilities, actual annual flow for beneficial reuse. Thc actual annual flow is calculated using the annual average flow through a wastewater facility's ocean outfall from 2003 through 2007. The discharge of wastewater through ocean outfalls is prohibited after December 31, 2025, except as a backup discharge that is part of a functioning reuse system authorized by the DEI'. A backup discharge may occur only during periods of reduced demand for reclaimed water, such as periods of wet weather, and must comply with the advanced wastewater treatment and management requirements of s. 403.086, F.S. 2010 Session Summary Page 34 Agenda Item No. 5E Ma 25 2010 The bill directs the DEP to submit a report on the effects of reclaimed water on the environment by February 1, 2012. The section also specifies that entities that wastewater diverted from a receiving facility that discharges to an ocean outfall must meet the 60 percent reuse requirement by 2025. The amount of wastewater diverted from a receiving facility will be deducted from its actual flow on an annual basis and the quantity of reuse it is required to produce will be recalculated. Florida Water Pollution Control Financing Corporation The bill expands the scope of water pollution control finance assistance program to include any program authorized under 33 U.S.C. s. 1383 (water pollution control revolving loan funds, and expands the duties of the Florida Water Pollution Control Financing Corporation (corporation) to include financing for drinking water projects. The bill adds definitions for "bonds" and "corporation" to conform the new responsibilities of the corporation to its expanded duties. It also provides rulemaking authority to the DEP and clarifies a criterion requiring that loan recipients demonstrate their ability to repay loans. In addition, the bill provides that the Drinking Water Revolving Loan Trust Fund can be used for financing authorized under the corporation and that the trust fund is exempt from constitutional termination provisions. Wekiva Parkway The Wekiva Basin, consisting of the Wekiva River, the St. Johns River, and their tributaries, along with associated lands in Central Florida, is part of a vast wildlife corridor that connects northwest Orange County with the Ocala National Forest. The Wekiva River and its tributaries have been designated an Outstanding Florida Water, a National and Scenic River, a Florida Wild and Scenic River, and a Florida Aquatic Preserve. The act requires each local government within the study area to adopt a master storm water management plan and a wastewater facility plan for joint planning areas and utility service areas where central wastewater systems are not readily available. The State Board of Administration The State Board of Administration (SBA) is primarily an asset management organization responsible for investing state and local government assets. Established by the Florida Constitution, its mission is to provide "superior investment and trust services while adhering to the highest ethical, fiduciary, and professional standards." The bill authorizes the SBA to invest the net assets of the system trust fund in alternative water supply and water resource development projects. Investments made, if any, must be consistent with the SBA's fiduciary duties. Alternative Dispute Resolution by Water Management Districts Currently, disputes between governmental entities are governed by ch. 164, F.S., the Florida . Governmental Conflict Resolution Act (act). The act was implemented in 1999 (ch. 99-279, LOF) as a mechanism for the resolution of disputes between governmental entities that must be followed prior to litigation. Under the act, before a governmental entity can file a lawsuit against another governmental entity, notice of intent to file suit must be given to the potential defendant at least 45 days prior to filing suit. The party receiving notice must hold a public meeting within 30 days after receipt of this notice. At this meeting, the disputing governing bodies must discuss the proposed litigation in an effort to amicably settle the controversy. The statute provides for an exception to the notice and public meeting requirements of this act if the governmental entity finds that an immediate danger to the health, safety, or welfare of the public requires immediate action. If a governmental entity is found not to be negotiating in good faith, it will be required 2010 Session Summary Page 35 Agenda Item No. 5E M 25 2010 to pay the attorney's fees and costs of the other party in that proceeding. The act does not preclude any party to the litigation from availing itself of all available legal remedies. The bill reemphasizes that WMDs have a duty to negotiate conflicts in good faith before proceeding to litigation against another governmental entity, as required by ch. 164, F.S. Construction and Demolition Debris Landfills Construction and demolition (C&D) debris consists of materials that are generated from residential and commercial buildings, renovations and various types of demolition. C&D materials include wood, steel, glass, brick, concrete, asphalt, wallboard, rock, soils, tree remains, and other vegetative matter. Only non- water soluble and non-hazardous materials are considered C&D. C&D constitutes 25 percent of Florida's municipal solid waste stream. Florida has 83 landfills and 75 C&D disposal sites where C&D debris can be disposed, only two of which are lined. The DEP has indicated that unlined C&D landfills are environmentally problematic and may pose a threat to water resources from leachate and runoff. The bill requires liners and leachate collection systems at C&D sites and lateral expansions of existing disposal units that have not received a permit authorizing construction or operation prior to July I, 2010, unless the owner or operator demonstrates that the facility is not expected to result in violations of groundwater standards and criteria if built without a liner. If a water control structure was constructed by an entity other than a WMD or a water control district, there is no penalty for obstructing, damaging or destroying the structure or watercourse. The bill provides penalties for anyone who obstructs damages or destroys any drainage watercourse or structure constructed in or maintained by any district. Water Supply and WMD Governance Reclaimed Water: Currently, the governing board of each WMD is required to conduct water supply platuting for any water supply platuting region within the WMD identified in the appropriate WMD water supply plan where it determines that existing sources of water are not adequatc to supply water for all existing and future reasonable-beneficial uses. The bill adds wastewater and water reuse utilities as participants in regional water supply planning, along with WMDs, the DEP, local governments, water utilities, and multijurisdictional water supply entities, in order to incorporate reclaimed water in the planning process. In addition, the bill directs WMDs to implement rules relating to the reuse of reclaimed water by consumptive use permit (CUP) holders. WMDs are required to initiate rulemaking relating to the reuse of reclaimed water no later than July I, 2011. The rules must: Require CUP applicants seeking withdrawals for non-potable water uses within a designated reclaimed water service area to submit to the WMDa letter from the applicable reclaimed water provider that addresses the availability and feasibility of using reclaimed water. Water Management District Governing Board Delegation Authority: The bill removes a WMD governing board's delegation authority for issues relating to part II, ch. 373, F.S. (CUPs), and directs WMD governing boards that have delegated authority to executive directors to take final action on permit applications under part IV of ch. 373, F.S. (ERP), or petitions for variances or waivers, to provide a process for referring a denial of a petition to the governing board for the purpose to taking final action. In addition, the bill authorizes a WMD governing board to delegate powers and duties relating to general permits to its executive director. The governing board must provide a process for referring a denial of a petition to the governing board for the purpose of taking final action. The required delegation expressly prohibits governing board members from individually intervening in any matuter during the review of an application before such application is referred to the governing board for final action. This prohibition from intervening expires June 1. 2011, unless reenacted by the Legislature. 2010 Session Summary Page 36 Agenda Item No. 5E M 25 2010 Relating to works of the WMDs, the bill encourages WMDs and other governmental agencies to promote public-private partnerships when procuring materials for infrastructure and restoration work projects. Consumptive Use Permits The bill extends the duration for a 20-year CUP holder to file a compliance report to the WMD from every five years to every 10 years. Numeric Nntrient Criteria Pursuant to s. 303(d) of the federal Clean Water Act (CW A), the DEP must establish water quality standards and submit lists of surface waters that do not meet applicable water quality standards, and must establish total maximum daily loads (TMDLs) for these "impaired waters" on a prioritized schedule. The DEP has relied on this narrative standard for many years because nutrients are unlike any other "pollutant" regulated by the CW A. Most water quality criteria are based on a toxicity threshold, evidenced by a dose-response relationship, where higher concentrations can be demonstrated to be harmful, and safe concentrations can be established at a level where no adverse responses are evident. The DEP's preferred approach is to develop cause/effect relationships between nutrients and valued ecological attributes, and to establish nutrient criteria that ensure that the designated uses of Florida's waters are maintained. In 2001, the DEP began work developing numeric nutrient criteria. Since then, it has adopted nutrient TMDLs with an additional 39 pending approval. The determination of a federal lawsuit may alter dramatically the ability of the DEP to regulate the state's surface waters and may undo all that the DEP has accomplished to date. In August 2008, the Environmental Protection Agency (EP A) was sued by five environmental groups (the Florida Wildlife Federation, Sierra Club, Conservancy of Southwest Florida, Environmental Confederation of Southwest Florida, and St. Johns Riverkeeper), alleging failure on the part of the federal agency to comply with the CW A. These groups asserted that Florida was not meeting water quality standards for nutrients due to the DEP's narrative criteria. The DEP is not a party to the lawsuit, however, several groups representing utilities, local governments, and agriculture in the state intervened. On January 14, 2009, the EPA placed the DEP on formal notice that numerical criteria for nutrients were necessary for compliance with the CW A. This notice triggered a deadline of one year for the EP A to develop numeric nutrient criteria for Florida's surface waters and 24 months to develop numeric criteria for coastal waters. In the ensuing eight months, DEP staff worked overtime to develop numeric criteria that would satisfy the EP A. On August 19, 2009, the EP A entered into a consent decree to settle the lawsuit filed by the five environmental groups. The EP A committed to propose numeric nutrient standards for lakes and flowing waters in Florida by January 2010, and for Florida's estuarine and coastal waters by January 201 1. EPA agreed to establish final standards by October 2010 for lakes and flowing waters and by October 20 II for estuarine and coastal waters. The bill provides legislative findings regarding surface water quality in the state, the EP A's numeric nutrient rulemaking, and the state's efforts to address the issue through the TMDL Program. The bill provides that the EPA's establishment of numeric nutrient criteria in a manner that fails to take into account site-specific factors may result in criteria that lack adequate scientific support and cause unintended environmental and economic consequences, and finds that any numeric nutrient criteria 2010 Session Summary Page 31 Agenda Item No. 5E M 25 2010 established pursuant to s. 303(c) of the Clean Water Act should work in concert with the lMDL program, the state stormwater treatment rule, and other water quality programs. Voluntary Cleanup Tax Credits The Voluntary Cleanup Tax Credit (VCTC) is a tax credit available for site rehabilitation conducted at eligible dry-cleaning sites and for site rehabilitation and solid waste removal conducted at brownfield sites in designated brownfield areas. To be eligible, the responsible party must execute a Voluntary Cleanup Agreement or a Brownfield Site Rehabilitation Agreement (BSRA) with the DEP. The VCTC can apply toward corporate income taxes. The amount of the credit is 50 percent, up to $500,000 once per site, for solid waste removal, of the costs of the voluntary cleanup activity that is integral to site rehabilitation. If the credit is not fully used in anyone year because of insufficient tax liability on the part of the tax credit applicant, the unused amount may be carried forward for a period not to exceed five years. The bill provides that eligible environmental costs incurred in a given calendar year may be claimed for state VCTC, provided that the VCTC application is submitted by January 31 of the year following the cleanup activities. This provision fixes a timing issue whereby cleanup activities performed late in the calendar year will be eligible for credit. The bill also specifies that brownfield projects are eligible for funding and priority ranking when they meet existing statutory criteria under the state's Water Pollution Control Financial Assistance Revolving Loan Fund Program. Finally, the bill providcs that recommendations for potential improvements to Florida's brownfield program be included in the DEP's annual brownfield report, which is due August 1 of each year. Expedited Permitting Section 403.973, F.S., was established to encourage and facilitate growth in economic development projects which offer job creation, high wages, strengthen and diversify the state's economy, and reflect consideration of the state's environment. The Governor, through the Office of Tourism, Trade, and Economic Development (OTTED), is vested with creating regional permit action teams which serve to expedite review of permit applications and local comprehensive plan amendments. Section 403.973, F.S., authorizes OTTED or a Quick Permitting County to certify certain business pennits as eligible for expedited review. OTTED is also responsible for reviewing comprehensive plan amendments for projects that strengthen and diversify the State's economy. Recommendations for eligible projects come from Enterprise Florida, Inc., any county or city, or the Rural Economic Development Initiative (REDI). Eligibility criteria require that the business crcate at least 100 jobs, or, if located within specified areas such as an enterprise zone, 50 jobs. The local government must notice and hold a public hearing to execute a memorandum of agreement for each qualified project. The memorandum of agreement applies to projects, on a case-by-case basis. that qualify. Each memorandum of agreement must include a process for final agency action on permit applications and local comprehensive plan amendment approvals within 90 days after receipt of a completed application, unless the applicant agrees to a longer time period or the office determines that unforeseen or uncontrollable circumstances preclude final agency action within the 90-day timeframe or unless federal law conflicts. Enterprise Florida, Inc., a county or municipal government, or REDI may recommend to OTTED that a project meeting the minimum job creation threshold undergo expedited review. Benefits for certified projects include identification of all permits and approvals needed, designation of a project coordinator and regional pennit action tcam contacts, final agency action on permit applications within 90 days of receipt of completc application. waiver of the twice-a-year limitation on comprehensive plan amendments, and waiver of interstate highway concurrency with approved 2010 Session Summarv Page 38 Agenda Item No. 5E M 25 2010 Projects that result in the cultivation ofbiofuels on lands 1,000 acres or larger, construction of a biofuel or biodiesel processing facility and power generating facilities using renewable fuel sources become eligible for expedited permit review. "Renewable energy" is defined as in s. 366.91(2), F.S., to mean electrical energy produced from one or more of the following energy sources: hydrogen produced from sources other than fossil fuels, biomass, solar energy, geothermal energy, wind energy, ocean energy, and hydroelectric power. The term includes the alternative energy resource, waste heat, from sulfuric acid manufacturing operations. lIB 569 Landfills - Subject to Approval by Governor The bill allows the disposal of yard trash in Class I landfills that have obtained a minor permit modification and are designed to utilize an active gas collection system that provides or arranges for beneficial use of the landfill gas collected. A Class I landfill may also accept yard trash for mulching and as a cover for municipal solid waste disposed at the landfill. The Department of Environmental Protection is required to develop and adopt a methodology to award recycling credit for the use or disposal of yard trash at a Class I landfills that have a gas collection system and makes beneficial use of the gas. Miami- Dade County is exempt from the provisions of this bill as a result of operating under a home rule charter authorized in 1956 in a statewide referendum. The bill provides the legislative intent that the disposal of yard trash in Class I landfills is not intended to have a material impact on current operations at existing waste-to-energy or biomass facilities. lIB 981 Agriculture- Vetoed by Governor The bill states that land classified as agricultural land retains that classification when offered for sale if the land continues to be used primarily for bona fide agricultural purposes. The classification is to be remedial and clarifying and applied retroactively to all parcels for which a final court order has not been issued. The bill also provides that structures or improvements used in horticultural production for frost or freeze protection, as designated by the Department of Agriculture and Consumer Services' (DACS) interim measures or best management practices, shall be assessed by the methodology required for the assessment of land used for agricultural purposes. The Department of Environmental Protection (DEP) is provided authority to develop and implement a general permit that will allow application of pesticides for the control of insects, aquatic weeds, algae, or other pests. The Fish and Wildlife Conservation Commission and the DACS may enter into agreement with the DEP to ensure uniform regulation of pesticides applied to the waters of the state. The Citrus Research and Development Foundation, Inc., is directed to serve as the advisory council for a citrus research marketing order. The foundation's board of trustees must be composed of 13 members responsible for providing advice on administering the order to the DACS, conducting citrus research, and performing duties assigned by the DACS. The bill provides for collection of agricultural assessments used to defray costs associated with marketing orders to be placed in "the appropriate trust fund" rather than the General Inspection Trust Fund as in current law. The rate of assessment imposed on citrus is required not to exceed the rate established by the marketing order. The DACS and representatives of the state pest control industry are required to submit a report to the Legislature by January 1,2011, that shall include recommendations for changes to the law and provide for disciplinary action against licensees of the pest control industry who violate laws or rules pertaining to the pretreatment of soil to protect newly constructed homes, pest control at sensitive facilities such as schools and nursing homes, and the fumigation of existing homes for protection against termite damage. 2010 Session Summarv Page 39 Agenda Item No. 5E M 25 2010 lIB 71 03 Relating to Agriculture- Vetoed by Governor The bill prohibits counties from imposing a fee for stormwater management on agricultural land if the agricultural operation has certain specified permits or implements best management practices (BMPs). The bill also allows counties tbat have, prior to March I, 2009, adopted a stormwater ordinance or resolution, adopted an ordinance or resolution establishing a municipal services benefit unit, or adopted a resolution stating the county's intent to use the uniform method of collection of non-ad valorem tax assessments, to charge an assessment on agricultural land as long as the ordinance provides for credits against the assessment for implementing BMPs or stormwater quality and quantity measures required as part of a National Pollutant Discharge Elimination System permit, environmental resource permit, or works-of-the district permit. The bill prohibits counties from enforcing any regulations limiting an activity of a bona fide fann operation on land classified as agricultural if the activity is regulated by BMPs, interim measures or regulations. This provision does not limit a county's powers to enforce wetlands, springs protection, or stormwater ordinances, regulations, or rules pertaining to the Wekiva River Protection Area adopted prior to July I, 2003. The bill requires an applicant for a local land use permit, building permit, or certificate of occupancy for nonagricultural land to sign a written acknowledgement of contiguous sustainable agricultural land. The bill exempts fann fences from the Florida Building Code as well as any city or county code. It also exempts nonresidential farm buildings and fences from county or municipal fees, with the exception of t100dplain management regulations. The bill also clarifies the definition of "nonresidential farm buildings" to make clear that these buildings are not intended to be used as residential dwellings. The bill exempts any person, rather than any "natural person" as in current law, from obtaining a local business tax receipt. The bill amends the definition of "farnl tractor" to clarify that a farm tractor may be operated incidentally on the roads of the state. The bill allows insurance companies, when calculating their gross writing ratio, to exclude gross written premiums for federal multi-peril crop insurance that is ceded to the Federal Crop Insurance Corporation and authorized reinsurers. The bill returns tropical foliage to exempt status from the provisions of the License and Bond law. And, lastly, the bill amends ch. 823, F.S., to mirror the language in ch. 403, F.S., regarding agricultural materials that may be burned in the open. lIB 7179 Qualifying Energy lmprovements- Subject to Approval by Governor CS/HB 7179 creates s. 163.08, F.S., providing supplemental authority to local governments regarding' qualifying improvements to real property. Specifically, the bill authorizes a property owner to voluntarily enter into a financing agreement with a local government, which is defined in the bill as a county, a municipality, or a dependent special district. for the purpose of providing financing for qualifying improvements to residential, commercial, or industrial property. A local government may also partner with one or more local governments fix thc purpose of providing and financing qualifying improvements. A "qualifying improvement" includes any: Energy conservation and efficiency improvement, which is a measure to reduce consumption through conservation or more efficient use of: . Electricity; 2010 Session Summary Page 40 Agenda Item No. 5E Ma 25 2010 . Natural gas; . Propane; or . Other forms of energy on the property. Renewable energy improvement, which is the installation of any system in which the electrical, mechanical, or thermal energy is produced from a method that uses one or more of the following fuels or energy sources: . Hydrogen; . Solar energy; . Geothermal energy; . Bioenergy; or . Wind energy. Wind resistance improvement, which includes, but is not limited to: . Improving the strength of the roof deck attachment; . Creating a secondary water barrier to prevent water intrusion; . Installing wind-resistant shingles; . Installing gable-end bracing; . Reinforcing roof-to-wall connections; . Installing storm shutters; or . Installing opening protections. A qualifying improvement must be affixed to a building or facility that is part of the property. Any work requiring a license must be performed by a properly certified or registered contractor. The program does not cover wind resistance improvements in buildings or facilities under new construction. Under the program, the local government would provide the upfront funding for the qualifYing improvement project through proceeds of revenue bonds or other lawful debt, which would be repaid through voluntary non-ad valorem assessmeuts on participating property owners' tax bills. Without the consent of the mortgage holder or loan servicer, the total amount of any non-ad valorem assessment for a property cannot exceed 20 percent of the just value of the property, as determined by the county property appraiser. However, if energy conservation and efficiency or a renewable energy qualifYing improvement is supported by an energy audit, the amount financed is not limited to 20 percent if the audit demonstrates that the annual energy savings from the qualified improvement equals or exceeds the annual repayment amount of the assessment TIle local government may enter into a financing agreement only with the record owner of the property and this agreement or a summary memorandum of the agreement must be recorded in the public records of the county within five days after the agreement is executed. The recorded document must give constructive notice that the assessment to be levied on the property constitutes a lien of equal dignity to county taxes and assessments. The bill provides that, at least 30 days before entering into the financing agreement, the property owner must provide notice to the mortgage holder or loan servicer of the intent to enter into the agreement, the maximum amount to be financed, and the maximum annual assessment that will be required to repay the amount. The property owner must provide proof to the local government that this notice has been provided to the holders of the mortgage or loan. 2010 Session Summarv Page 41 Agenda Item No. 5E M 25 2010 The bill provides that "A provision in any agreement between a mortgagee or other lienholder and a property owner, or otheIWise now or hereafter binding upon a property owner, which allows for acceleration of payment of the mortgage, note, or lien or other unilateral modification solely as a result of entering into a financing agreement as provided for in this section is not enforceable." However, the bill recognizes that the mortgage holder or loan serviceI' may increase the required monthly escrow by an amount necessary to annually pay the qualifying improvement assessment. The bill requires a participating local government to follow the uniform method for the levy, collection, and enforcement of non-ad valorem assessments, enumerated in s. 197.3632, F.S., which requires a resolution by the local government, public hearings, published notices in the newspaper, and individual mail notices to property owners informing them of the assessment and their right to attend a public hearing. Under current law, the special assessment process must be initiated prior to January I of each year. The bill provides an exception to start on or before August 15, if the property appraiser, tax collector, and local government agree. For purposes of bond repayment, the bill prohibits an early payment discount for the non-ad valorem assessment. The bill also provides that the authority is additional and supplemental to county and municipal home rule authority. Loan Guaranty Program The bill amends statutory provisions creating the Florida Development Finance Corporation (FDFC) (ss. 288.9602-288.9610, F.S.) and conforms cross-references to allow for the state's participation in the U.S. Department of Energy's 1705 Guaranteed Loan Program (s. 406 of the American Recovery and Reinvestment Act of 2009), which provides federal government loan guarantees for certain renewable energy systems, electric transmission systems, and leading edge biofuels projects. HB 7179 changes the definition of the term "guaranty fund" from the "Revenue Bond Guaranty Reserve Account" to the "Energy, Technology, and Economic Development Guaranty Fund," and authorizes the FDFC to issue revenue bonds or other evidence of indebtedness for the purpose of financing capital projects which promote economic development within the state. Specifically, the bill authorizes the FDFC to; -Finance the undertaking of any project within the state that promotes renewable energy -Finance the undertaking of any project within the state that is a project contemplated or allowed under s. 406 of the American Recovery and Reinvestment Act of 2009; or -If permitted by federallaw, finance qualifying improvement projects within the state, pursuant to s. 163.08, F.S. The bill allows the FDFC to accept funds from the state, a county, or other public agency. The bill authorizes the FDFC to guarantee debt service payments for bonds or other indebtedness and limits these guarantees to no more than five percent of the total aggregate principal amount of bonds or other indebtedness relating to anyone capital project. It specifically authorizes the FDFC to use moneys deposited in the guaranty agreement fund to satisfy requirements to obtain federal loan guarantees for capital projects authorized under the section. It requires that all policies, procedures, and regulations of the program that are used in conjunction with the federal program comply with the federal requirements. 2010 Session Summarv Page 42 Agenda Item No 5E M 25 2010 Energy Economic Zone Pilot Project Study The bill directs the Department of Community Affairs (DCA) and the Office of Tourism, Trade, and Economic Development (OTTED), in consultation with the Florida Energy and Climate Commission, to make recommendations to the Governor, the Senate President, and the Speaker of the House of Representatives regarding appropriate incentives and statutory revisions necessary to provide the Energy Economic Zone Pilot Program (pilot program) communities with tools for accomplishing the goals of the program, which is established in s. 377.809, F.S. The bill directs the DCA and the OTTED to coordinate with the pilot program communities and clean technology industries to help attract those industries and investments to the state. Renewable Energy The bill adds "electrical energy produced using pipeline-quality synthetic gas produced from waste petroleum coke with carbon capture and sequestration" to the definition of "renewable energy" in s. 366.91, F.S. HB 7243 Recycling - Subject to Approval by Governor The bill strengthens provisions related to the statewide comprehensive recycling program and deletes a duplicative reporting requirement in the Florida Climate Protection Act. The bill requires state agencies, K-12 public schools, public institutions of higher learning, community colleges, and state universities, including all buildings occupied by municipal, county, or state employees and entities occupying buildings managed by the Department of Management Services (OMS), to report recycling rates to their respective counties. Exceptions are provided for local governments meeting specific population and per capita taxable income criteria. The bill directs OMS to modify its procurement system to track the state's purchases of green and recycled materials and requires the Department of Environmental Protection (DEP) to create a Recycling Business Assistance Center (center) to develop new markets for recyclable materials. The DEP is directed to seek technical assistance from Enterprise Florida, Inc. The bill outlines incremental recycling benchmarks for the state, counties, and cities that must be reached by December 31, 2020. To attain said goals, counties must include a program to recycle construction and demolition (C&D) debris. The bill requires all materials recovery facilities to report to the DEP and the counties. The DEP is: -Directed to investigate and report to the Legislature programmatic changes that can assist in achieving the recycling goals; -Authorized to direct counties that have not met the recycling goals to expand recycling programs to existing commercial and multifamily dwellings; and -Required to report to the Legislature the state's recycling rates every two years. The bill requires new commercial and multifamily construction projects, where counties have established recycling programs, to provide for recycling. The bill allows renewable energy facilities to count a certain amount of the megawatts they produce towards the state recycling goal and incentivizes renewable energy producing counties that maintain a program that recycles in a traditional manner at least 50 percent of its municipal solid waste. The bill requires the reporting of processed C&D debris and if economically feasible, the processing of C&D debris prior to disposal at permitted facilities, and exempts materials that have already been processed for recycling. 2010 Session Summary Page 43 Agenda Item No. 5E M 25 2010 The bill reduces the scope of the solid waste management grant program, eliminating the competitive innovative grant program. The bill requires DEP to create a recycling pilot program for the Capitol recycling area, requires Capitol buildings to report recycling rates to Leon County, and requires that the rates be posted on DEP's website. The bill requires the Florida Building Commission to develop recycling recommendations and repeals s. 288.] 185, F.S., the outdated Recycling Markets Advisory Committee. Property Insurance Legislation SB 2044 Property Insurance-Subject to Approval by Governor This bill makes numerous changes to insurance laws, primarily property insurance laws. Specifically, the bill makes the following changes: Florida Hurricane Catastrophe Fund Exempts medical malpractice insurance from assessments levied by the Florida Hurricane Catastrophe Fund for another three years, until May 31,2013. Surplus for Property Iusurance Compauies to Maintaiu an Insurance Liceuse Increases surplus for residential property insurance companies licensed after July I, 2010 to maintain an insurance license from $4 million to $15 million; and Increases surplus for residential property insurance companies licensed before July I, 2010 to maintain an insurance license from $4 million to $15 million over a ten-year period. Additional Regulation of Residential Property Insurance Companies by the Office of Insurance Regulation (OIR) Provides the aIR with additional regulatory authority to require residential property insurance companies to provide financial information to the OIR regarding the insurer's business with affiliates and to provide a risk-based capital plan to the aIR if the insurance company loses more than 15 percent of surplus on any quarterly or annual financial report or cumulatively for the calendar year. OIR Regulation of Affiliates Allows domestic property insurance companies to enter into management agreements, service contracts, and cost-sharing arrangements with affiliates only if the insurer gives notice to the aIR and the aIR does not disapprove the agreement, contract, or arrangement within a specified time period. Managing General Agents Allows the aIR to examine all managing general agents as if they were the insurer. Annual Statement Preparation by Insurance Companies Prohibits any insurer from using the same accountant or partner of an accounting firm to prepare the insurer's audited financial report for more than five consecutive years. Exemption from Examination for Customer Representative Licensure Exempts applicants from the examination required for licensure as a property insurance customer representative if the applicant is designated a Certified Insurance Representative from the National Association of Christian Catastrophe Insurance Adjusters. 2010 Session Summary Page 44 Agenda Item No. 5E M 25 2010 Public Adjusters Provides specific statements that are deceptive or misleading if the statements are contained in advertising or solicitation of public adjusters such that if a public adjuster uses these statements in advertising or solicitation, the adjuster commits an unfair and deceptive trade practice; -Requires any written advertisements by public adjusters to contain a specific disclaimer in bold print and capital letters in a specific typeface that identifies the advertisement as a solicitation for business; -Specifies certain actions a public adjuster and an insurance company must take in residential property and condominium unit owner property insurance claims, primarily relating to inspection of the damaged property, meeting with the policyholder, and notitying the insurance company of the claim; -Requires continuing education in claims adjusting for public adjuster apprentices; -Specifies additional contents for public adjuster contracts; -Adds a fee cap of 20 percent of the claim payment obtained on reopened or supplemental residential and condominium unit owner claims involving public adjusters; and Forbids contractors from adjusting property insurance claims but allows contractors to submit bids to the policyholder to repair or replace damaged property. Timeframe for Filing A Property Insurance Claim Requires a notice of an initial, supplemental, or reopened personal lines residential property insurance claim resulting from windstorm or a hurricane event to be filed with the insurance company within three years after the hurricane first made landfall or the windstorm caused the damage which forms the basis of the claim; and -Precludes the timeframe for filing a property insurance claim from affecting any statute of limitations applying to initial, supplemental, or reopened claims. Insurance Company Report Card Requires the Insurance Consumer Advocate to publish a report card each year setting forth a letter grade for each personal residential property insurance company based on valid consumer complaints and other specified information. om Action Relating to Insurance Agent Costs Prohibits the OIR from directly or indirectly interfering in an insurance company's payment of specified costs to their insurance agents, acquisition of policyholders, advertisement, or appointment of insurance agents. Use and File Rate Filing Extends the prohibition on use of a "use and file" rate filing for one more year, to December 31, 2011 (from December 31, 2010). Expedited Rate Filing -Allows more types of costs than under current law to be included in an expedited rate filing - any reinsurance costs, costs for financing products used to replace reinsurance, and an inflation trend factor can be included, rather than only reinsurance costs and costs related to the Florida Hurricane Catastrophe Fund; 2010 Session Summary Paye 45 Agenda Item No. 5E M 25 2010 -Deletes the current prohibition against including any expense or profit load in costs included in an expedited rate filing; Keeps current law limiting the use of an expedited rate filing by an insurance company to once every 12 months; -Limits the expedited rate filing to increasing premiums a maximum of ten percent per policyholder in a policy year, but allows the premium to increase more than ten percent if the additional increase is due to coverage changes made by the policyholder or due to surcharges on the policy; and -Requires the aIR to annually publish an inflation trend factor for residential property insurance for use in an expedited rate filing. Medical Malpractice Insurance Language Repeal -Repeals obsolete language requiring the aIR to establish a presumed factor for the impact the 2003 medical malpractice law changes would have on medical malpractice insurance and requiring medical malpractice insurance companies to submit a rate filing reflecting a rate decrease at least as great as the presumed factor; and -Repeals current law requiring the aIR to allow medical malpractice insurance companies to adjust medical malpractice rates if any provision of the 2003 medical malpractice law changes are invalidated by a court. Actuarial Certification of a Property Insurance Rate :Filing Provides the actnarial certification of an initial property insurance rate filing is not rendered false if the insurance company provides additional or supplementary information to the rate filing at the request of the aIR. Mitigation Discounts -Allows debits (i.e. surcharges) for property that is not mitigated; -Allows a property insurance company to raise its base rates if the company's aggregate amount of mitigation discounts reduces the company's revenue in an amount that exceeds the company's reduction in aggregate loss expected from the mitigation features and includes legislative intent relating to the issue; and -Repeals the requirement that mitigation discounts be correlated with the uniform home grading scale. Uniform Mitigation Verification Form (Mitigation Discount Form) -Allows home inspectors with certain training in hurricane mitigation to sign the mitigation discount form; -Allows insurance companies to accept a mitigation discount form signed by any person with qualifications and experience acceptable to the insurance company; -Requires mitigation discount forms to be signed only by those who personally inspect the home for the existence of mitigation features, except contractors are authorized to allow direct employees to inspect a home; -Prohibits misconduct in completing the mitigation discount form or conducting the inspection and defmes misconduct; -Allows the licensing board ofthe inspector to discipline the inspector if misconduct occurs; 2010 Session Summary Page 46 Agenda Item No. 5E Ma 25 2010 -Allows discipline of the supervising contractor for the misconduct of a direct employee if a direct employee of a contractor does the inspection; -Requires any fraud relating to a mitigation discount inspection and the completion of a mitigation discount form to be reported to the Division of Insurance Fraud with immunity from liability given to the person reporting the fraud; -Requires the Division of Insurance Fraud to issue an investigative report if the Division of Insurance Fraud finds probable cause of intentional mitigation inspection fraud; -Requires the Division of Insurance Fraud to notify the OIR and the licensing agency of the mitigation inspector if a finding of probable cause of mitigation inspection fraud is made; and -Allows insurance companies to require mitigation inspection forms be independently verified before accepting the mitigation discount form as valid. Website for Property Insurance Comparison Requires the OIR to implement a web site for property owners to compare various information about property insurance companies and property insurance products if an appropriation is given to the OIR for the website; and Appropriates $263,200 in nonrecurring funds and $47,500 in recurring funds from the Insurance Regulatory Trust Fund and one FTE to the OIR for the website. Citizens Property Insurance Corporation (Citizens) -Changes the name of the "high risk account" in Citizens to the "coastal account"; Directs the Division of Statutory Revision to prepare a reviser's bill next Session changing the term "high risk account" to "coastal account" to conform with the changes in the bill; -Requires a Citizens Policyholder Surcharge to be paid upon cancellation, termination, or renewal of an existing Citizens' policy or upon issuance of a new Citizens' policy within 12 months after the surcharge levy or within the period of time needed to fully collect the surcharge; -Requires Citizens to fully levy the Citizens Policyholder Surcharge before levying a regular assessment; -Makes members of the Citizens Board of Governors exempt from the conflicting employment or contractual relationship provisions for public officers and agency employees; -Requires members of the Citizens Board of Governors to abstain from voting on any measure before the Board that would provide the member a gain or loss, would provide the member's principal with a gain or loss, or would provide a family member or business associate of the member a gain or loss. Provides procedures to be followed when a voting abstention occurs; and -Extends for two years (unti] December ], 2012) the time period Citizens has to reduce its 100- year probable maximum loss or be required to reduce its wind-only coverage area. Notice of Nonrenewal or Cancellation -Allows Citizens to give 45 days' notice of nonrenewal, rather than the notice of nonrenewal under current law (generally, ] 00 days' notice), if the policyholder's property insurance policy issued by Citizens is being assumed by a private insurance company; and 2010 Session Summary Page 41 Agenda Item No. 5E M 25 2010 -Allows property insurance companies to give 45 days' notice of nonrenewal or cancellation, rather than the notice ofnonrenewal or cancellation under current law (generally, 100 days' notice), if the OIR finds the insurer's policy count needs to be reduced to protect the best interests of the public or policyholders, in part, because of the inadequate financial condition of the insurance company. Changing Insurance Policy Terms Allows insurance companies to change the terms of an insurance policy by providing notice to the policyholder of the change of policy terms with the policy renewal notice. Replacement Cost Coverage -For partial dwelling losses insured for replacement cost: requires the policyholder to be paid actual cash value up front less the applicable deductible with the remaining amount (up to the replacement cost) paid as the repair/replacement work is done pursuant to a repair contract. -Prohibits the policyholder from being required to advance any moueys for repair by the insurance company, the contractor, or the subcontractor, but requires the policyholder to pay any incidental expenses to mitigate further damage to the dwelling. -Allows the policyholder one year after actual cash value is paid to make a claim for replacement cost; F or total dwelling losses insured for replacement cost: requires the policyholder to be paid full replacement cost (i.e., policy limits) up front and does not require the policyholder to rebuild the dwelling to obtain such payment; and -For partial or total personal property losses insured for replacement cost: maintains current law. meaning the policyholder is paid replacement cost up lront whether or not the policyholder repairs or replaces the personal property. Time Period for Insurance Company to Pay Property Insurance Claims Clarifies insurance companies must payor deny an initial or supplemental property insurance claim within 90 days of receipt of notice of the claim and maintains the same exceptions under current law. SB 2176 Insurance- Subject to Approval by Governor This bill makes changes to various insurance laws primarily related to commercial lines insurance, risk management or self-insurance for public entities, wan'anty associations, disability presumption and workers' compensation for law enforcement officers, Medicare supplemental insurance, and annuities. The changes made by the bill are as follows: Commercial Lines Insurance Commercial lines insurance (commercial insurance) is insurance designed for and bought by a business to cover certain types of losses sustained by the business. Under current law, rates for commercial insurance must be filed with, reviewed by, and approved by the Office of Insurance Regulation (OIR). The bill excludes the following types of commercial insurance and risks lrom having to file a rate with the OIR: -Excess or umbrella insurance; Surety insurance; Fidelity insurance; Boiler and machinery insurance; Leakage and fire extinguishing cquipment insurance; 2010 Session Summary Page 48 Agenda Item No. 5E M 25 2010 Fleet commercial motor vehicle insurance covering 20 or more vehicles; Errors and omissions insurance; Directors' and officers', employment practices, and management liability insurance; Intellectual property and patent infringement insurance; Advertising injury and Internet liability insurance; Property risks rated under a highly protected risks rating plan; and Other types of commercial insurance determined by the OIR. -Rates for these types of commercial insurance and risks must still not be excessive, inadequate, or unfairly discriminatory as determined by the rate factors and standards in current law. The insurer writing commercial insurance or the rating organization setting the loss cost for commercial insurance covered by the bill must notify the OIR when the company changes a rate or loss cost for the commercial insurance. The OIR can examine the insurance company's records relating to the rate charged and request any information it needs to determine if the rate is excessive, inadequate, or unfairly discriminatory. Risk Management or Self-Insurance for Public Entities The bill prohibits an association, fund, or pool created to manage a risk management mechanism or for providing self-insurance for a public entity from requiring its members to give more than a 45-illly notice of the member's intention to withdraw from the association, fund, or pool. Warranty Associations Chapter 634, F.S., governs the regulation of warranty associations, which are motor vehicle service agreement companies, home warranty associations and service warranty associations. Motor vehicle service agreements provide vehicle owners with protection when the manufacturer's warranty expires. Home warranty associations indemnify warranty holders against the cost of repairs or replacement of any structural component or appliance in a home. Service warranty contracts for consumer electronics and appliances allow consumers to extend the product protection beyond the manufacturer's warranty terms. In Florida, warranty associations are regulated by the OIR. The OIR's regulatory authority includes approval of forms, investigation of complaints, and monitoring of reserve requirements, among other duties. However, the OIR is not required to approve rates for warranties. This bill reduces some regulatory oversight by the OIR over warranty associations while specifying new prohibited acts and adding penalties. Among its key provisions relating to warranty associations and warranty contracts, the bill: -Exempts motor vehicle service agreements that are sold to persons other than consumers and that cover motor vehicles used for commercial purposes from the Florida Insurance Code; -Provides unlicensed activity by warranty associations is a first-degree misdemeanor; -Prohibits false, deceptive or misleading advertising, under certain circumstances; -Removes requirements to submit warranty service agreements to the OIR for approval; -Provides the OIR can order a form not to be used if it does not meet specified criteria; -Switches from quarterly to annual financial reports requirements; -Makes periodic OIR examinations discretionary, and provides factors to consider in choosing to conduct an examination; 2010 Session Summary Page 49 Agenda Item No. 5E M 25 2010 -Provides there is no violation of knowingly overcharging, if the motor vehicle service agreement company refunds the excess premium within 45 days; -Makes a failure to provide a complete sample copy of the terms and conditions of a service or warranty agreement prior to sale an unfair practice, but provides the terms may be provided online; -Broadens the definition of home warranty service agreements; -Allows premium increases in renewal home warranty contracts, if supported by claims history or claims cost data; -Removes the OIR's ability to require additional regular or special reports from home warranty associations; -Repeals requirement for home warranty associations and motor vehicle service agreement companies to file rates with the OIR; and -Requires, by July I, 2011, all types of warranty contracts sold in Florida to be accompanied by a written disclosure to the consumer that the rate charged for the contract is not subject to regulation by the OIR. Disability Presumption and Workers' Compensation for Law Enforcement Officers Current law establishes a presumption for state and local firefighters, law enforcement officers, and correctional officers regarding determinations of employment related disability. The law provides certain diseases (tuberculosis, heart disease, and hypertension) acquired by such firefighters and officers are presumed to have been suffered in the line of duty. This presumption in law has the effect of shifting from the employee to the employer, the burden of proving by competent evidence that the disabling disease resulted from the person's employment. The bill specifies the presumption also applies to correctional probation officers. The bill provides that a law enforcement officer, correctional officer, or correctional probation officer who suffers from tuberculosis, heart disease, or hypertension and materially departs from the prescribed course of treatment of his or her physician, and the departure is demonstrated to result in an aggravation of his or her condition, loses a specified presumption for claims after July 1, 2010. The bill also specifies claims for benefits must be made prior to or within 180 days of leaving employment for the presumption to apply. These provisions would not apply to state or local firefighters. The bill also provides a broader interpretation of workers' compensation benefits payable to off-duty deputy sheriffs to include, but not be limited to, providing security, patrol, or traffic direction for a private employer. For purposes of workers' compensation benefits related to off-duty employment, the bill authorizes a sheriff to include the sheriff s proportionate cost of workers' compensation premiums for the off-duty deputy sheriffs providing such off-duty employment. Medicare Supplemental Insurance Medicare is health insurance for people 65 years of age and older and for those under age 65 with a disability or End Stage Renal Disease. Under federal law, Medicare beneficiaries age 65 and older, who are also enrolled in Medicare Part B, have a guaranteed right to purchase a Medicare supplemental policy (Medigap insurance) during an open enrollment period. Medigap insurance helps pay some of the health costs not covered by Medicare, including copayments, coinsurance, and deductibles. The Department of Health and Human Services (HHS) defines the parameters and provides guidelines for standardized Medigap policies. HHS has opined a network arrangement wherein the facility agrees to 2010 Session Summary Page 50 Agenda Item No. 5E M 25 2010 waive all or a portion of the Medicare Part A in-patient deductible if the facility does not violate standardization provisions. In addition, HHS has opined if products containing such provisions are permitted to be marketed and sold in a state, the waiver of the Part A premium deductible and the premium credit must be factored into the loss ratio calculation and into the policy premium. The bill allows insurers that offer Medigap insurance policies to enter into agreements with in-patient facility networks that agree to waive the Medicare Part A deductible in whole or in part. The insurer is not required to file a copy of the network agreement with the OIR. Such network agreements are not subject to OIR approval. The bill also provides that premium credits granted to insureds under Medigap insurance policies for using in-network in-patient facilities do not constitute an unfair method of competition or unfair or deceptive trade practice. The waiver of the Medicare Part A deductible and premium credit are required to be factored into the insurer's loss-ratio calculation and policy premium. Annuities An annuity is a contract sold by an insurance company designed to provide a stream of payments to the purchascr at specified intervals, typically after retirement. Because these contracts allow retirees protection against outliving their savings, these products have become extremely popular among Florida's increasingly large retirement-aged population. The Department of Financial Services (DFS) is the state agency responsible for regulating the sale of annuities in Florida. This bill makes several changes in the Florida Insurance Code to enhance penalties for unethical annuity sales practices as well as provide certain consumer protections for seniors who purchase annuity contracts. The bill includes the following provisions: -Generally prohibits family members of the life insurance agent that sells the policy from being named as beneficiaries; -Strengthens DFS's ability to deny licensure to agents for specified misconduct; -Bars issuance of a license to an agent or customer representative who previously had their license revoked due to the solicitation or sale of an insurance product to a senior consumer; -Generally entitles senior consumers of annuities to a 21-day unconditional refund; -Requires more favorable annuity contract terms for seniors and requires sales agents to provide seniors with greater disclosures prior to the sale of an annuity contract; and -Increases the maximum administrative fines for deceptive annuity sales practices towards seniors and gives DFS the authority to order the selling agent to pay restitution to a senior who is harmed by a violation of this section. Miscellaneous Provisions -Exempts applicants from the examination required for licensure as a customer representative if the applicant is designated a Certified Insurance Representative from the National Association of Christian Catastrophe Insurance Adjusters; and -Exempts insurance agents that do not have any active life insurance or annuity contracts from current law requiring any person with a license to solicit or sell life insurance to complete at least three hours in continuing education on the subject of suitability in annuity and life insurance transactions. 2010 Session Summarv Page 51 Agenda Item No. 5E M 2 2 lIB 7217 Catastrophe Fund Emergency Assessments - Subject to Approval of the Governor The Florida Hurricane Catastrophe Fund (FHCF or fund) is a tax-exempt trust fund created in 1993 after Hurricane Andrew as a form of mandatory reinsurance for residential property insurers. All insurers that write residential property insurance in Florida are required to buy reimbursement coverage (reinsurance) on their residential property exposure through the FHCF. If the cash balance of the FHCF is not sufficient to cover losses, the law allows the issuance of revenue bonds, which are funded by emergency assessments on property and casualty policyholders. The fund is authorized to levy emergency assessments against most property and casualty insurance premiums paid by policyholders, including surplus lines policyholders, when reimbursement premiums and other fund resources are insufficient to cover the fund's obligations. By law, workers' compensation, accident and health, federal flood and, until May 31, 201 0, medical malpractice insurance are not included in the fund's assessment base and thus are not assesscd for fund deficits. The bill continues the exemption of medical malpractice insurance premiums from the FHCF emergency assessment for three years, from May 31,2010 to May 31,2013. Because the bill extends the exemption another three years, until May 31, 2013, the FHCF will not be able to assess medical malpractice insurance for fund deficits until after May 31.2013. Transportation, Ecouomic Development and Growth Management lIB 325 Uniform Traffic Control- Approved by the Governor The bill creates the "Mark Wandall Traffic Safety Act," expressly preempting to the state regulation of the use of cameras to enforce the provisions of ch. 316, F.S., and authorizing the Department of Highway Safety and Motor Vehicles (DHSMV), counties, and municipalities to use cameras to enforce violations ofss. 316.074(1) and 316.075(1)(c)1.. F.S., for a driver's failure to stop at a traffic signal. HB 325 defines a "traffic infraction detector" as a vehicle sensor and a camera, working in connection with a traffic control device, to record a series of images or video of motor vehicles failing to stop at an intersection. The detector must be capable of recording only the rear of the motor vehicle, and any notification or citation issued from a detector must show the license tag of the offending vehicle and the traffic control device. The bill requires signage at intersections using traffic infraction detectors, and provides that traffic infraction detectors may not be used to enforce violations when the driver is making a right turn in a careful and prudent manner. It also provides processes regarding required notifIcations, the issuance of citations to registered owners of motor vehicles, and defenses available to vehicle owners. Notifications and citations must include the images indicating that the motor vehicle violated a traffic control device, and must offer a physical location or an Internet address where images or video may be reviewed. When a citation is issued, it may be challenged in a judicial proceeding in the same manner as other traffic violations. A contested citation upheld by the court may result in additional court costs and fees. The bill increases the penalty for any violations of s. 316.074(1) or S. 316.075(1 )(c) 1., F.S., from $125 to $158, regardless of the method of enforcement, and provides for distribution of revenue collected as follows: 2010 Session Summary Page 52 Agenda Item No. 5E M 25 2010 When a citation is issued by a law enforcement officer: -$60 is distributed to local governments and to various law enforcement, healthcare, and other areas as provided in s. 318.21, F.S.; -$65 is distributed to the Department of Health Administrative Trust Fund; -$30 is distributed to the General Revenue Fund; and -$3 is distributed to the Brain and Spinal Cord Injury Trust Fund. When a notification or citation is issued by the Department of Highway Safety and Motor Vehicles: -$100 is distributed to the General Revenue Fund; -$10 is distributed to the Department of Health Administrative Trust Fund; -$3 is distributed to the Brain and Spinal Cord Injury Trust Fund; and -$45 is distributed to the local county or municipality in which the traffic infraction detector is located. When a notification or citation is issued by a county or municipality: -$70 is distributed to the General Revenue Fund; -$10 is distributed to the Department of Health Administrative Trust Fund; -$3 is distributed to the Brain and Spinal Cord Injury Trust Fund; and -$75 is distributed to the local county or municipality in which the traffic infraction detector is located. Points may not be assessed against a driver's license for infractions enforced by the use of a traffic infraction detector, and violations may not be used for purposes of setting motor vehicle insurance rates. HE 325 provides a transitional period for those counties and municipalities instituting a traffic infraction detector program on or before July I, 201 L These counties and municipalities may continue to use equipment acquired under an agreement entered into on or before July 1,2011. It also provides that an individual may not receive a commission or per-ticket fee from any revenue collected from violations detected through the use of a traffic infTaction detector, and provides that a manufacturer or vendor may not receive a fee or remuneration based upon the number of violations detected through the use of a traffic infraction detector. Each governmental entity that operates a traffic infraction detector must submit an armual report to DHSMV which details the results of the detectors and the procedures for enforcement. DHSMV must subsequently submit an annual summary report to the Governor and Legislature. The report must include a review of the information submitted by the counties and municipalities and any recommendations or necessary legislation. 5B 1752- Eeonomic Development (Jobs Bill) - Subject to Approval of the Governor The legislature passed a lengthy jobs bill (SB 1752) to help stimulate the state's floundering economy. Below are the highlights of the bill: . SB 1752 removes tax disincentives that drive aircraft purchases and maintenance out of the state, by allowing temporary visits to Florida for aircraft owners and providing participation to fractional aircraft programs. . Florida's tax policy now discourages production, training, repair and retrofit in the marine industry. The bill caps the sales tax on boats at $18,000 in order to make Florida more competitive with Georgia and other neighbors and theoretically add jobs in Florida's marine industry. 2010 Session Summarv Page 53 Agenda Item No. 5E M 25 2010 . This bill creates greater public transparency, by requiring reports on economic development incentives, at the local level, to allow citizens to see how every economic development dollar is spent. . SB 1752 creates a grant program to help Florida manufacturers compete with neighboring states. Seven states competing with Florida exempt all manufacturing machinery and equipment purchases from the state sales tax. 'Jobs for Florida' creates a 2 year program for manufacturing and equipment purchases in excess of the amounts spent during 2008. These refunds will be allocated on a first come, first serve basis. The total funding available for this particular program is $19 million for the first year, 2010-2011, and $24 million for 2011-2012. . Enterprise zones are designed to promote job growth and economic development in targeted areas of Florida. Senate Bill 1752 eliminates a loophole for condo construction, by deleting an enterprise zones building materials sales tax exemption for condominiums, which are in vast oversupply in the state. This is a net gain of$13.2 million which the bill redeploys in job-creating incentives. . In 2009, Florida ended the year with a state unemployment rate of almost 12%. SB 1752 creates the" Jobs for the Unemployed" Tax Credit. The bill provides a tax credit of $1,000 per hire to qualified businesses who hire Floridians that have been unemployed for at least 30 days. These businesses will have to keep their newly hired employee for at least 12 months in order to qualifY for the credit. This program will be administered by OTTED and is funded for two years at $5 million annually. It is projected the provision will incemivize businesses to hire] 0.000 currently unemployed Floridians. . This bill enhances the current Qualified Target Industry incentive by ) Creating a $l,OOO-per-job tax incentive for businesses in counties that provide a 50- 50 match to tbe state; ) Creates a $2,000-per-job tax incentive for what are called "high impact industries" that retain and create high-paying, full-time jobs ) Creates a $2,000-per-job tax incentive for businesses that increase the value or tonnage of their exports by 10% through the 14 seaports; ) Discourages QTl applicants from purchasing equipment out-of-state; ) Allows a local governing board to choose whether the local or statewide average wage will serve as the baseline for determining the 115% wage threshold for awarding QTi incentives. OTTED believes the QTI enhancements will add substantially to the 9,000 jobs per year now being created by a more modest effort. . The legislation is funding university-based research through the Board of Governors. It will appropriate $2 million for early stage, seed capital for eligible projects. Available to researchers whose projects are taking place within the State University System, this provision provide budding business owners with the resources to take an idea and bring it to the marketplace using Florida"s workforce. . In addition, the bill will appropriate $3 million in grants administered by the Institute for Commercialization of Public Research to assist small businesses seeking federal research and development funding. These state matching grants will help Florida employers through the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Grants range from $50,000 to $250,000 depending on how developed and marketable a product is. . Senate Bill 1752 creates the Entertainment Industry Financial Incentive Program, which awards transferrable tax credits, for certain expenditures associated with qualified prodnctions. Generally, these credits are 20% of qualified expenditures, with additional amounts available in certain circumstances. This bill allocates tax credits over the next five years for qualified productions and expenditures: 2010 Session Summary Page 54 Agenda Item No. 5E M 25 2010 . $53.5 million for FY 2010-11 . $74.5 million for FY 20] 1-12 . $38 million per year for FY 2012-13, 2013-14, and 2014-15 The State Film Commission believes this incentive will induce $1.2 billion in direct spending by entertaimnent production and digital media companies within Florida's economy over the next five years. . This bill will support the space industry with fmancing for new and expanded space-related businesses, including re-training workers who are now engaged in the Shuttle program and provide ftmding flexibility for Space Florida. . This bill extends permits and development orders for 2 years. It will provide a two year extension of permits issued by local governments, DEP, or a water management district, which expire between September 1, 2008 and January 1,2012. . This bill provides a $2 million appropriation for economic gardening to continue the technical assistance pilot program, which was enacted in 2009. . A key feature is a $4.9 million appropriation to provide access to capital for the Florida Export Finance Corporation to assist Florida small businesses in completing short -term export sales transactions. Greater than 95 percent of Florida's exporters are small to medium-sized businesses, with a vast majority requiring assistance to complete their sales. . The bill provides $4 million to local communities to support projects associated with Florida's military installations, which provide immediate investment resulting in jobs and economic activity while ensuring Florida's bases remain open. . It re-enacts the admissions tax exemption for certain events sponsored by the government and non-profit entities, and an additional tax exemption on admissions to certain sporting events. . This legislation requires all state funded contracts for construction to contain a provision requiring the contractor to give preference to the employment of Florida residents in the performance of the work on the proj ect. . This bill also creates local government matching ,,>rants to attain expenditures by local governments in order to attract and retain businesses in Florida. To take advantage of the matching grants, local governments must expedite permitting. The state portion of matching grants are for amounts up to $50,000. This program receives an appropriation of $3 million. . The bill allows local governments to extend ad valorem tax exemptions within 10 year increments. These are subject to referendum for each] O-year period. . This bill authorizes regional rural development matching grants to be used by economic development organizations in order to provide technical assistance to businesses creating jobs within rural communities. . The Quick Action Closing Fund is streamlined by allowing projects proposed at $2 million or below to be approved by the Speaker and President, in consultation with the Governor, and through the normal budget amendment process. Projects over $2 million will continue to require approval by the Legislative Budget Commission. In addition, it authorizes OTTED to renegotiate a Quick Action Closing Fund 2010 Session Summarv Page 55 Agenda Item No. 5E M 25 20 contract, due to negative economic conditions so long as the business requests a renegotiation during the next year . The bill also provides a $15 million appropriation to the Quick Action Closing Fund. . This bill resolves several technical glitches in the New Markets Development program that was passed last session. It allows a six month extension to make an investment, which conforms to federal regulations. . Senate Bill 1752 helps first-time home buyers, by extending the Florida Homebuyer Opportunity Program which provides $8,000 bridge loans to persons purchasing their first homestead in Florida. . The bill changes incentives and local tax options to make Florida more competitive in attracting major and minor sports teams. DB 971 Highway Safety and Motor Vehicles-Subject to Approval by Governor The bill addresses a number of issues regarding the Department of Highway Safety and Motor Vehicles (DHSMV). Crash Reports Crash reports are confidential and exempt for a period of 60 days after the date the report is filed. The reports are immediately available to the party involved in the crash and his or her representatives; prosecutorial authorities; victim services programs; and certain press outlets. The bill adds local law enforcement agencies and county traffic operations centers to the list of entities authorized to receive crash reports before the 60-day period expires. Specialty License Plates In 2008, the Legislature passed a moratorium on the issuance of specialty plates by DHSMV. The moratorium is effective until July I, 2011, but contains an exception for any specialty license plate proposal which had submitted a letter of intent to DHSMV prior to May 2,2008. The bill extends the moratorium on new specialty license plates until 2014, and creates a new pre-sales process for the issuance of specialty license plates in the future. The bill removes the existing scientific sample survey approach to measuring applicants' interest in purchasing a new specialty license plate. The bill provides that organizations must still submit a request for a plate, submit the $60,000 application fee, and provide long and short-term marketing plans. Once a new plate is approved by law, DHSMV must develop a pre-sales system that allows drivers to indicate their preference for the plate by pre-ordering the plate and paying all required costs, but receiving a voucher. DHSMV would only begin to manufacture the plate after 1,000 vouchers have been issued. If 1,000 pre-sales are not recorded within 24 months, the plate is de-authorized. Other Issues The bill increases the current statutory size and weight limits of recreational off-highway (ROV) vehicles. Specifically, in order for a vehicle to be classified as an ROV it must be 64 inches (increased from 60 inches) or less in width and weigh 2,000 pounds (increased from 1,500 pounds) or less. This bill amends several sections of the state traffic control laws for the purpose of authorizing the use of various motorized devices on bicycle paths, sidewalks, and sidewalk areas. The bill authorizes local governments to enact ordinances allowing vehicles, golf carts, mopeds, and motorized scooters to be 2010 Session Summarv Page 56 Agenda Item No. 5E M 25 2010 operated on sidewalks and sidewalk areas. The bill also allows the use of motorized wheelchairs on sidewalks and bicycle paths. Speeding fines are currently doubled in "school zones"; the bill includes a "designated school crossing" as a similar location where fines are doubled. The bill amends several sections of law to provide for legal operation of tri-vehicles in Florida. Tri- vehicles must meet Federal safety standards for seat-belts, windshield wipers, and "roof crush" resistance. A tri-vehicle (an 'inherently low-emission' vehicle) may be driven in a High-Occupancy Vehicle lane. The bill also taxes the registration oftri-vehicles in the same registration category as private automobiles. The bill also creates two new $1 voluntary contributions on driver's license renewals. HB 1271 Transportation- Subject to Approval by the Governor Among other items, the bill expands the ability to levy the Charter County Transportation System Surtax to all counties within or under an interlocal agreement with a regional transportation or transit authority. Imposition of this tax requires referendum approvaL In addition to currently authorized transportation uses, the bill provides that revenue from this tax may be used for on-demand transportation services. Truck Weights During off duty times, many truck drivers idle their trucks, however, new idle reduction technologies use auxiliary power units (APUs) to provide for climate control without idling the truck. Due to the weight of the APU device, the truck must reduce the weight of its cargo. The bill provides for an increase in the vehicle's maximum gross vehicle weight of up to 400 pounds to compensate for the additional weight of APUs installed. The bill amends current permitting authority to allow DOT or local authorities to issue permits providing commercial vehicles off the Interstate Highway a 10 percent increase in the weight limit on a designated route specified in the permit. The route must avoid any bridge that DOT determines cannot safely accommodate the vehicle. The bill also provides that any vehicle exceeding the permitted weight limit must be unloaded. Utilities on Right-of-Way In 2008, the law was changed to allow for the longitudinal placement (i.e., parallel to the road) of certain electrical lines operating at 69 or more kilovolts (kV) within the right of way oflimited access highways "where there is no other practical alternative available." This phrase can be interpreted to apply to the placement of 69 kV or greater electric transmission facilities within any public road right of way. The bill clarifies that the qualifying phrase: "where there is no other practicable alternative", applies only to the longitudinal placement of 69 kilovolt (or greater) electric transmission lines within the ROW of limited access highways. SB 1736 - Unemployment Compensation - Approved by the Governor The bill makes several changes to laws related to unemployment compensation. Temporary State Extended Unemployment Compensation Benefits The bill extends temporary state extended benefits from February 27, 2010 through June 2, 20l0. The extension will fund up to 14 additional weeks of benefits for claimants. Under this federal extension, temporary state extended benefits for former private sector employees are 100 percent federally funded (approximately $128.1 million). Approximately 107,000 Floridians will be eligible to receive additional weeks through this extension. 2010 Session Summary Page 51 Agenda Item No. 5E M 25 2010 Extended benefits for former state and local government employees do not qualifY for federal funding and must be paid by the governmental entity. The cost is estimated to total $3.6 million, of which approximately $1.1 million is from state funds and $2.6 million from local government funds. Reemployment of Unemployment Compensation Claimants To better link claimants with the state's job bank system and available job opportunities, the bill requires an unemployed person seeking benefits to register with the workforce information system (Employ Florida Marketplace) as part of the process for filing a claim. Claimants are also required to report to their local one-stop employment center. Employer Response to Notice of Claim When a claim for unemployment is first filed with the Agency for Workforce Innovation (AWl), employers of record are sent a notice of claim and an initial monetary determination of the amount of the claim. The bill requires employers to timely respond to the notice of claim within 20 days. Failure to respond will result in those benefits being charged to the employer's account. A claimant would not be required to repay any overpayments due to the employer's failure to respond, so long as there is no fraud involved. Such efforts may reduce ovcrpayments to unemployed individuals, and in turn, reduce the burden of socialized costs on all employers' unemployment compensation tax rates. Unemployment Compensation Trust Fund Trigger The bill changes the trust fund balance date for the adjustment factor calculation from June 30 to September 30, which is closer to the beginning of the year to which the tax calculation applies. Unemployment Compensation Tax Administration This bill includes several statutory changes that may improve tax administration and improve the Department of Revenue's (DOR) enforcement of UC tax laws such as updating enforcement provisions related to delinquent UC tax collections by conforming Florida's UC tax liens to federal law, and imposing reasonable disincentives on businesses that routinely submit erroneous, incorrect or incomplete quarterly reports to DOR, or that fail to comply with the current law to submit the information in the required format. SB 1842 Transportation Projects- Subject to Approval by Governor The bill requires DOT to notify all affected property owners, municipalities, and counties of proposed changes to state highways, when the project: divides a state highway; erects a barrier median which would modify vehicle turning movements; or has the effect of closing or modifYing existing access to adjacent property. The written notification must be given at least 180 days before the design of the project is finalized and must provide a written explanation regarding the need for the project and indicate that all affected parties will be given an opportunity to provide comments to the department regarding the potential impacts of the project. The notification must also be given to the chief elected official of the municipality or county, depending on whether the project is within or outside of municipal boundaries. DOT is required to consult with the local government on its final design proposal if the department intends to divide a state highway, erect median barriers, or close or modify existing access to abutting commercial business properties. The local government may also present alternatives which would relieve impacts to the business properties. DOT is required to hold at least one public hearing in the jurisdiction where the project is located and receive public input on the potential economic impact of the project on 2010 Session Summarv Page 58 Agenda Item No. 5E M 25 2010 the local business community. The department must review and consider the comments and any alternatives presented by a local government in preparing the fmal design of the project. HB 7033 Unemployment Compensation- Approved by Governor Businesses are responsible for the cost of unemployment compensation and fund it through payments into the Unemployment Compensation (UC) Trust Fund for any employees the business has laid off. Due to the severe downturn in the economy and insolvency of the UC Trust Fund, DC tax rates were set to rise dramatically. To provide temporary relief from these tax increases, the bill suspends the positive adjustment tax rate factor for the next two years, amends portions of the UC statutes, and suspends changes made in the 2009 Legislative session. The bill reduces the taxable wage base from $8,500 to $7,000 for two years. In 2012, the wage base returns to $8,500, and then reverts back to $7,000 in 2015 unless there are outstanding loan balances owed to the federal government. The bill allows employers to pay UC for 2010 and 2011 in quarterly installments, and provides for payment of interest on federal advances through an employer assessment. Tax payments to the UC Trust Fund will be reduced by an estimated $942 million in FY 2009-10 and $934 million in FY 201O-l L However, this will result in greater borrowing from the federal government to pay benefits, and more interest due to the federal government than under current law. The bill also provides for an extension of the "State Extended Benefits" (EB) program, effective January 2,2010, through February 27, 2010. The federally funded program will cover up to 8 additional weeks for claimants, which could affect an estimated 15,000 Floridians. The total cost to state and local governments to implement EB is approximately $612,633. (See CS/CS/SB 1736 for a further extension of the State Extended Benefits program.) It also appropriates $903,642 to the Department of Revenue and $643,862 to the Agency for Workforce Innovation for FY 2009-] 0 to implement the act. SB 7033 was effective upon becoming law March 2, 2010, except as otherwise provided, applied retroactively to June 29, 2009, Government Operations, Taxes and Courts HB 131 Elections- Subject to Approval by the Governor The bill amends provisions of Florida's elections laws to conform provisions relating to military and overseas .voters to changes made by the federal Military and Overseas Voter Enhancement Act, to modernize the requirements for political disclaimers in new technologies, to delay a mandate for statewide use of certain voter interface devices, to reenact and amend provisions related to electioneering communications and electioneering communications organizations, and to revise non-campai,,'1l finance provisions of Florida's elections laws based upon recommendations made by the Division of Elections of the Department of State. The bill adds a definition of "absent uniformed services voter" and amends the current definition of "overseas voter" to conform to changes in federal law. This definitional change makes clear that uniformed services voters who are stateside, but away from their place of residence, are governed the same under the Florida Election Code as those voters who are overseas. 2010 Session Summarv Page 59 Agenda Item No. 5E M 25 2010 Upon receiving a request for an absentee ballot from an absent uniformed services voter or overseas voter, the supervisor of elections must notifY such voter of the free access system designated by the department for determining absentee ballot status which is a new federal requirement. The use of the free access system is expanded in the bill to include all absentee voters. Timeframes for sending an absentee ballot and methods of transmission of the ballot to the absent uniformed voter and the overseas voter are amended to conform to recent changes in federal law . It amends provisions relating to the federal postcard application to conform to the use of means other than mail to send an absentee ballot and to remove language regarding its two-year effectiveness as registration, which was recently removed by changes to federal law . The bill requires the supervisor of elections to record an overseas voter's e-mail address, if provided, in the voter's request for an absentee ballot, in the absentee ballot record. The bill then expands the information that a supervisor of elections must provide an overseas voter via e-mail to include confirmation of the ballot request, notification of the estimated date the ballot will be sent to the voter, and confirmation of the receipt of the voted ballot. Regarding disclaimers for political advertisements, the bill provides a shorter disclaimer for candidate political advertisements that are paid for by the candidate, similar to that which is used by candidates for federal office. The bill provides that certain disclaimers are not required for a campaign message or political advertisement if the message or advertisement is designed to be worn by a person. It also provides for exceptions to thc disc1aimcr rcquirements for messages or political advertising via Internet websites, text messages, or other technologies if certain requirements are met. The bill extends the deadline for the paper ballot requirement for the voter interface device from 2012 to 20l6. Only four counties have a system for disabled voters that meets the 2012 requirements. The bill reenacts and amends provisions related to electioneering communications and electioneering communications organizations (ECOs) to redefine: -"Electioneering communication" to remove reference to issues, remove reference to a specific number of persons who must be targeted in a geographic area to only refer to targeting to relevant electorate in the geographic area the candidate would represent if elected, specify the allowable communication formats, regulate advocacy that is tbe functional equivalent of express advocacy, and provide timeframes for the communications; -"Electioneering communications organization" to clarify that it includes only those organizations with election-related activities that are limited to electioneering communications and that its activities would not require the group to register as a political party, political committee, or committee of continuous existence; and -"Political committee" to remove the requirement that an ECO conform to specified requirements of a "political committee" when it is specifically exempt from the definition. The bill provides separate registration and reporting requirements for ECOs. It requires an organization to register as an ECO upon receipt or expenditure of an agb>regate amount exceeding $5,000, rather than when it anticipates receipt or expenditure of money. The bill also increases the amount an individual can expend before being subject to regulation from $100 to $5,000. It removes provisions identified as an impermissible burden on speech. -Providing an opportunity for a challenged voter, who is challenged on the basis of address, to update his or her address information in order to vote a regular ballot in the precinct; 2010 Session Summarv Page 60 Agenda Item No. 5E M 25 2010 -Requiring supervisors of elections to use actual ballots when testing tabulating equipment prior to an election; -Requiring supervisors of elections to post notice of the testing of tabulating equipment on their website; -Revising absentee ballot procedures to include that absentee ballot requests are only good for one year versus two years, thereby making the time frame uniform with that required for absent uniformed services voters and overseas voters; -Revising the procedures and requirements for co-locating polling place precincts and requiring the supervisor to post notice of a change in polling place on his or her website; -Providing that Election Canvassing Commission members serve ex officio and providing a time certain for the commission to meet after elections; -Requiring supervisors of elections to post notice on their website where and when the county canvassing board will meet to canvass absentee and provisional ballots; -Providing that the Secretary of State must order recounts in federal, state, and multicounty races, while recounts in all other races must be ordered by the local board responsible for certifying the election in those races; and -Providing that the Secretary of State must order manual recounts of the overvotes and undervotes in federal, state, and multicounty races, while such recounts in other races must be ordered by the local board responsible for certifYing the election in those races except, under speci fied circumstances. Finally, the bill authorizes the Florida Elections Commission to determine whether a person's conduct was willful in an informal hearing following a finding of probable cause. CS/HB 551 - Pub. Rec. & Meetings/County/Complaints on Condnct- Subject to Approval of the Governor Current law provides a public records exemption for a complaint, any records relating to the complaint, or any records relating to any preliminary investigation by the Commission on Ethics or Commission on Ethics and Public Trust established by a county or a municipality. In addition, any proceedings regarding a complaint or preliminary investigation are exempt from public meetings requirements. The bill expands those exemptions for the Commission on Ethics and the Commission on Ethics and Public Trust established by a county or municipality by extending its application to any county or municipality that has established a more stringent local investigatory process. It provides for repeal of the exemptions on October 2, 2015, unless reviewed and saved from repeal by the Legislature. The bill also provides a public necessity statement as required by the State Constitution. SB 742 - Pnblic Safety Telecommunicators/E911- Subject to Approval by the Governor SB 742 creates a mandatory certification program, effective October 1, 2012, for 911 public safety telecommunicators, whose job duties include answering, receiving, and transferring 911 cans, or dispatching emergency services throughout the state. The bill provides for education and training standards, continuing education, discipline, fees and rulemaking authority. 2010 Session Summarv Page 61 Agenda Item No. 5E M 252 After October 1, 2012, individuals seeking certification must complete a 232-hour training program approved by the Department of Education, and pass an examination administered by the Department of Health. The bill creates several exceptions to these requirements: -Persons employed as 911 public safety telecommunicators, sworn state-certified law enforcement officers or state-certified firefighters before April 1, 2012, who pass the examination, are not required to complete the training program. -Trainees who work under the direct supervision of a certified dispatcher and are enrolled in a public safety telecommunication may be employed by a public safety agency, without certification, for no more than 12 months. -Individuals with three years of full-time employment as 911 public safety telecommunicators since 2002 may qualifY for certification without completing an approved training program and passing an examination; however, this exemption expires October 1, 2012. The bill requires all certified 911 public safety telecommunicators to complete 20 hours of additional training for biarmual certification renewaL The Department of Health may waive the 911 public safety telecommunicator certification requirements when the Governor declares a state of emergency pursuant to s. 252.36, F.S. The bill may require counties or municipalities to spend funds or to take an action requiring the expenditure of funds. The bill is not a prohibited local mandate because it applies to all persons similarly situated (including the state) and includes a statement of public interest pursuant to s. 18 of art. VII of the Florida Constitution. The bill will have an indeterminate negative fiscal impact on local governments. The bill authorizes the Department of Health to charge fees for certification, certification renewal, examination, and training program approval, which must be deposited into the Emergency Medical Services Trust Fund. The bill authorizes the use of funds in the Emergency Communications Number E9] 1 System Fund to cover dispatching functions and the celtification and renewal fees for 91 I public safety telecommunicators. According to the Department of Management Services, the bill will have a negative fiscal impact on that Fund. The fiscal impact to other state agencies is indeterminate. DB 965 Real Property Assessment- Subject to the Approval of the Governor The bill requires property appraisers to take into consideration the presence of tainted imported or domestic drywall in single family residential properties and the impact it has on the assessed value. If the tainted drywall was used in construction of, or improvements to, the home and it has a significant negative impact on the just value of the property or improvement to the property, the appraiser must adjust the assessed value. In addition, the purchaser must have been unaware of the presence of the tainted drywall at the time of purchase. If the building cannot be used for its intended purpose without remediation or repair, the value of the building shall be $0. Imported or domestic drywall covered in this act is defined as drywall that contains elevated levels of elemental sulfur that results in corrosion of certain metals. ]f the affected property is homestead property, it will not be considered abandoned if the owner vacates the property during repairs and does not establish a new homestead. SB 1004 Local Government -Approved by the Governor The bill allows the county commission to lease county real property for less than five years without going through the competitive bidding process. The change provides greater flexibility in addressing issues that 2010 Session Summarv Page 62 Agenda Item No. 5E M 25 2010 may be time sensitive. Expanding the use of temporary leases provides greater flexibility to manage emergencies, short term revenue generating ventures, and replace vendors in government buildings. Additionally, the bill allows government entities to transfer title to a road by recording a deed with the county or counties in which the right-of-way is located. This change decreases the length oftime that the transfer oftitle process requires under current law. lIB 1157 - Local Government Prompt Payment Act- Subject to Approval by the Governor The bill revises provisions in Florida's Local Government Prompt Payment Act relating to the timely payment for purchases of construction services, the notification and completion of the list of items required to satisfactorily complete the construction services purchased by a local government (generally known as a "punch list"), and the resolution of disputes. The bill requires local governments to provide notification to contractors to facilitate the payment for construction services. The local government must provide notification of: -The person or office to which a contractor should submit payment requests or invoices; -The date the local government will provide a single punch list of items to be completed; -The dispute resolution process to be used in the event of a disputed payment request or invoice; -A payment request or invoice rejected as improper, due in writing within 10 days of receipt; and -A payment request or invoice rejected for failure to meet contract requirements, due within 20 business days of receipt of the payment request or invoice. The bill requires that a single punch li st be compiled by the local government. The bill provides that the final contract completion date must be at least 30 days after the delivery of the punch list. rfthe punch list is not provided to the contractor by the agreed upon date for delivery, the contract time for completion is extended by the number of days the local government exceeded the delivery date. In addition, damages may not be assessed against a contractor for failing to complete a project within the time required by the contract, unless the contractor failed to do so within the contract period as extended. Under this bill, items not included in the punch list may not be used to withhold final payment of retainage. Unless the local government has provided a written notice specifYing the failure of the contractor to meet contract requirements in the development of the punch list, the final, undisputed retainage payment is due within 20 business days after receipt of a proper invoice or payment request, less any amount withheld for incomplete or uncorrected work. The bill provides that contractors may trigger a four-business-day response by local goverrm1ents by issuing a notice that the local government is overdue on a payment or has failed to begin dispute resolution within the timeframes provided by law or contract. It also removes language related to court proceedings, which broadens the ability of the prevailing party to be awarded court costs and attorney's fees. lIB 1301 Violations of Connty Ordinances- Approved by the Governor The bill authorizes counties to specify, by ordinance, that a violation of any provision of an ordinance imposing standards of conduct and disclosure requirements pursuant to s. 112.326, F.S., is punishable by Agenda Item No. 5E 2010 Session Summarv Page 63 a fine not to exceed $1,000 or a term of imprisonment in the county jail not to exceed one year. The current punishment for other violations of county ordinances remains a fine not to exceed $500 or imprisomnent in the county jail not to exceed 60 days. SB 2060 Sovereign Immunity - Approved by Governor Sovereign immunity is a doctrine that prohibits lawsuits against the government without the government's consent. In 1973, the Florida Legislature enacted a limited waiver of sovereign immunity in s. 768.28, F.S. This section provides that the state and its agencies and subdivisions shall be liable for tort claims in the same manner and to the same extent as a private individual under like circumstances. The statute imposes a $100,000 limit per person and a $200,000 limit per incident on the collectability of any tort judgment based on the government's liability. The bill amends s. 768.28(5), F.S., to raise the limited waiver of sovereign immunity applicable to the state, its agencies, and subdivisions from $100,000 per individual claim and $200,000 per aggregate claims to $200,000 per individual claim and $300,000 per aggregate claim on the collectability of any tort judgment. lIB 5401 State Court Operations - Subject to Approval by the Governor The Conference Committee Amendment for CS/HB 5401, relating to the state judicial system, changes laws related to the state courts system, the Justice Administrative Commission, the state attorneys, the regional conflict counsels, Guardian Ad Litem, the Department of Legal Affairs and the clerks of court. The amendment also redirects revenue into the Administrative Trust Fund within the state courts and the State Attorney Revenue Trust Fund within the Justice Administrative Commission. Specifically, the bill: -Redirects $50 of the Supreme Court filing fec from the Operating Trust Fund to the State Courts Revenue Trust Fund to fund court operations. In addition, the amendment renames the Operating Trust Fund in the state courts system as the Administrative Trust Fund; -Clarifies that the Regional Conflict Counsels take 3.850 and 3.800 cases for certain indigent clients. These cases are related to post-conviction complaints against an indigent person's attorney. Also, the Regional Conflict Counsels can take termination of parental rights cases under ch. 63, F.S.; -Clarifies that changes made in the 2009 session did not intend to assess filing fees for domestic violence cases; -Requires the clerk of court to transmit moneys collected to the Department of Revenue within 10 working days after the end of the month rather than 20 days: -Revises the clerks' unit cost budgeting from four core services to ten unit cost case types. Also, provides a mechanism and timeframe for the release of funds to the clerks and the adjustment of approved unit costs: -Requires that a parent who qualifies and receives the services ofa Regional Conflict Counselor any other court-appointed attorney under a child dependency case is responsible and liable for payment of the $50 civil indigency application fee; -Requires all Guardian Ad Litem applicants certified on or after July, 1,2010, to undergo a Level 2 background screening, which searches the state and national criminal history information. Also, allows 2010 Session Summarv Page 64 Agenda Item No. 5E Ma 25 2010 the Guardian Ad Litem to pay the reduced fee of $8 rather than the current fee of $24 to the Department of Law Enforcement for background screening; -Clarifies that counties may impose one of the statutory surcharges to fund court facilities through local ordinance, but not more than one surcharge at the same time; -Clarifies that the $65 additional court cost on criminal convictions that is used by counties to fund court improvement projects must be defined as court improvement projects by the chief judge; HB 5607 Retirement- Subject to Approval by the Governor The bill revises s. 121.71, F.S., to establish the required employer payroll contribution rates for each membership class and subclass of the defined benefit plan and the optional retirement plans within the Florida Retirement System for the FYs beginning July 1,2010 and July 1, 2011; -Reduces the interest rate earned on participants in the Deferred Retirement Option Program from 6.5 percent to 3 percent annually for employees entering the Deferred Retirement Option Program after July 1, 2010; current Deferred Retirement Option Program participants are not affected; -Reduces the employer contribution rate to fund the administrative costs of the State Board of Administration from .05 percent to .03 percent for four years; -Specifies methods of funding the Deferred Retirement Option Program for the state actuary when conducting the armual actuarial study of the State Retirement System. HB 7109 Tax Refund Program for Qualified Target Industry Businesses- Subject to Approval by Governor The tax refund program for qualified target industry (Qn) businesses was designed to encourage the recruitment or creation of higher-paying, higher-skilled jobs for Floridians. The QTI program awards eligible businesses tax refunds on certain state or local taxes. The amount of the refund awarded is based on the wages paid, number of jobs created, and where in the state the eligible business chooses to locate or expand. The minimum is $3,000 per employee over the term of the incentive agreement signed by the business and the Governor's Office of Tourism, Trade, and Economic Development (OTTED). The bill makes the following changes to the QTI program to increase its efficiency and maximize its value, including: extending the program until June 30, 2020; creating a definition of return on investment; allowing leased employees to be included in the job count; directing OTTED to begin a review of terminated Qn projects to determine the reason for termination; requiring a review of the targeted industry list every three years in cooperation with economic development partners and universities; extending to 2012 the date by which QTI businesses may request economic recovery extensions; and exempting renewable-energy economic development projects from the requirement that qualified target industries must be independent of Florida resources and markets. Unless reenacted by the Legislature, the Qn program sunsets on June 30, 2010. HB 7205 Professional Sports Franchises- Approved by Governor Current law specifies a process by which the Governor's Office of Tourism, Trade, and Economic Development (OTTED) has certified 10 local governments to receive up to $15 million each in state sales tax revenues to help pay for spring training facilities. However, the law does not require OTTED and the certified local governments to enter into contracts before receiving the state funds; does not have a reporting requirement or other mechanism by which OTTED can monitor the expenditure of funds; and Agenda Item No. 5E 2010 Session Summarv Page 65 does not include provisions to decertifY and recover state funds from local governments whose spring training franchises have relocated. The bill proposes a number of changes to current Florida law to address these issues. It directs OTTED and its partners to develop a strategic plan to help guide the future of spring training baseball in Florida. HB 7205 provides an opportunity for currently certified local governments who have lost their teams to recruit new franchises before being decertified by OTTED and returning state funds. It also recognizes the validity of an agreement certified under the existing spring training provisions of law and the continued release of funding by OTTED for a certified applicant under the current law governing spring training franchises. Lastly, bill expands the scope of the incentive, which is currently restricted to "retained" spring training franchises that were based in Florida prior to 2000, to include any spring training franchise. Public Safety HB 119 Sexual Offenders and Predators- Subject to Approval by the Governor HB 119 creates restrictions for a person convicted of an offense listed in the sexual offender statute where the victim was under the age of 18 as follows: -The bill makes it a first degree misdemeanor if a person convicted of such an offense commits loitering or prowling within 300 feet of a place where children were congregating; -The bill makes it a first degree misdemeanor for a person convicted of such an offense to knowingly approach, contact or communicate with a child under 18 years of age in any public park building or on real property comprising any public park or playground with intent to engage in conduct of a sexual nature or to make a communication containing content of a sexual nature; -The bill also makes it a first degree misdemeanor for a person convicted of such an offense to: Knowingly be present in any child care facility or pre-K-12 school or on real property comprising any child care facility or pre-K-12 school when the child care facility or school is in operation unless the offender has provided written notification of his or her intent to be present to the school board, superintendent, principal or child care facility owner; -Fail to notify the child care facility owner or the school principal's office when he or she arrives and departs the child care facility or school; or -Fail to remain under the direct supervision of a school official or designated chaperone when present in the vicinity of children. HB 119 adds a definition of the term "transient residence" to the sexual predator and sexual offender registration statutes and requires an offender to provide information regarding his or her transient residence during the registration process. The bill specifies that an offender may not be forced to move if he or she is jiving in a residence that complies with the statutory sex offender residency restrictions and a child care facility, park, playground or school is subsequently established within 1,000 feet of the offender's residence. 2010 Session Summarv Page 66 Agenda Item No. 5E Ma 25 2010 The bill specifies that a person convicted of s. 827.071, F.S. (sexual performance by a child), may be considered for removal of the requirement to register as a sexual offender or sexual predator if the person was no more than four years older than the victim and the victim was at least 14 years of age. The bill prohibits offenders on supervision for specified sexual offenses from visiting schools, child care facilities, parks and playgrounds without prior approval of the offender's supervising officer. The bill also prohibits such offenders from distributing candy to children on Halloween, wearing specified costumes, or entertaining at children's parties without prior approval of the sentencing authority. SB 370 Community Corrections Assistance- Subject to Approval by the Governor Section 948.51(4), F.S., authorizes the Secretary of the Department of Corrections to contract for the issuance of community corrections assistance funds, as appropriated by the Legislature, to an eligible county or county consortium. Currently there are 10 types of programs, services, or facilities that may be funded using community corrections assistance funds. SB 370 adds "rehabilitative community reentry programs" to the list of programs that may be funded using community corrections funds. The bill provides a definition for the term, "rehabilitative community reentry prob'fams." SB 1012 Juvenile Justice Facilities and Programs - Subject to Approval by the Governor Currently, the Department of Juvenile Justice (DJJ) is required to adopt rules governing medical attention, health, and comfort items in detention facilities; however, there is no such requirement that DJJ adopt rules for providing medical attention in other DJJ facilities or programs. SB 1012 amends s. 985.64, F.S., to require DJJ to adopt rules to ensure the effective provision of health services to youth in facilities or programs operated or contracted by DJJ. The bill specifies that such rules must address delivery of ordinary medical care, mental health services, substance abuse treatment services, and developmental disabilities services. Additionally, the bill requires DJJ to coordinate its rulemaking effort with the Department of Children and Family Services and the Agency for Persons with Disabilities to ensure there is no encroachment on either agency's substantive jurisdiction. The bill defines the term "ordinary medical care" as follows: "Ordinary medical care" means medical procedures that are administered or performed on a routine basis and include, but are not limited to, inoculations, physical examinations, remedial treatment for minor illnesses and injuries, preventative services, medication management, chronic disease detection and treatment, and other medical procedures that are administered or performed on a routine basis and do not involve hospitalization, surgery, the use of general anesthesia, or the provision of psychotropic medications. 2010 Session Summarv Page 67 Agenda Item No. 5E 25 Major Legislation That Failed to Pass SB 218/HB 319 Medical Expenses of Inmates- Failed to Pass The bill establishes a specific payment rate for medical services provided to arrested persons when no formal written agreement exists between a county. municipality or law enforcement entity, and a medical provider. The bill specifies that any payments made from county or municipal general funds to a provider for medical care, treatment, hospitalization, and transportation of an arrested person shall be made at llO percent of the Medicare allowable rate for such services, when no formal written agreement exists. The maximum allowable rate, however, does not apply to payments to physicians licensed under chapter 458, F.S., or chapter 459, F.S., for emergency services provided within a hospital emergency department. SB 218 died in the House. HB 335/SB 156 Transient Sales Tax Collections (Dot.com Bills)- Failed to Pass The bill addresses state and local taxes related to the business of renting, leasing, letting, or granting a license to use transient rental accommodations. The bill provides that for purposes of the state sales and use tax, the local option tourist development tax, the tourist impact tax, the transient rentals tax, the convention development tax, and the municipal resort tax the taxable privilege to rent, lease, let, or grant a license to use accommodations includes activity in which a person offers the availability of transient stays at accommodations, arranges for their use, establishes the total rent amount, or collects the rental payments. Persons required to collect and remit applicable taxes may be persons other than the owner or operator of the accommodation. The state sales and use tax and the local option tourist development tax, the tourist impact tax, the transient rentals tax, the convention development tax, and the municipal resort tax are applicable to the total amount paid to use the accommodation. The bill defines the terms related to the rent or consideration for purposes of these state and local taxes. The bills died in committee. SB 346/HB 7127 Working Waterfront Property- Failed to Pass This bill implements section 4(j), Article VII, of the State Constitution, which provides for the classification of designated waterfront property as "working waterfront property". The CS specifies that 2010 Session Summarv Page 68 Agenda Item No. 5E the assessed value of such classified property be based on current use and sets forth a methodology for calculating assessed value. The CS establishes mandatory application procedures for classification as a working waterfront property, and an appeals process for denial of classification. The CS also provides penalties for failure to notifY the property appraiser of any changes in the use or ownership of the property. The Revenue Estimating Conference has determined the fiscal impact of the constitutional provision, as implemented by CS/SB 346, to be a reduction in local revenue by $39.8 million in FY 2011-12 and recurring. The bill failed in the House. SB 382/HB 1445 Agriculture- Failed to Pass This bill addresses issues relating to agriculture and certain powers and duties of the Department of Agriculture and Consumer Services (department). It requires that the agricultural use of land present at the time of fee simple acquisition be given priority regarding the management of the land; Authorizes local governments to adopt more stringent standards for fertilizer usage than those contained in the Model Ordinance for Florida-Friendly Fertilizer Use on Urban Landscapes (2009), but contained a preemption of local governments in determining fertilizer ordinances. The bill died in the House. HB 665 Affordable Housing/SB 262- Failed to Pass The bill removes the statutory limitations on the amount of documentary stamp revenue that goes into the State Housing Trust Fund and the Local Government Housing Trust Fund. The Office of Demographic & Economic Research's (EDR) consensus estimate found that there is no impact to cash in the current fiscal year. However, based on a four-year outlook there is an annualized negative impact to recurring general revenue of $21.4 million and an annualized positive recurring impact to the state housing trust funds in the same amount. The bill repeals section 8 of chapter 2009-131, L.O.F., retroactively. This eliminates a conflicting version of s. 20L15, F.S., which passed concurrently with a different version during the 2009 legislative session, consistent with statutory revision's placement in the statute. The bill revises the state housing strategy to provide targeted assistance for persons with special needs. It includes an analysis of persons with special needs in the strategy's periodic review and report. The bill creates two new definitions to enact the newly established state housing strategies. Those new definitions are aimed to serve populations defined as suffering from a "disabling condition" and those defined as a "person with specialnceds. " The bill removes domicile of the developer and general contractor, as provided in s. 420.507(47) as criteria to be considered by FHFC in its scoring and competitive evaluation of applications for funding under the SAIL program and replaces it with developers and general contractors who demonstrate the highest rate of Florida job creation in the development and construction of affordable housing. The bill requires certain local comprehensive plans to include affordable housing for seniors as a part of their housing element. The bill empowers the FHFC with specified powers necessary or convenient to carry out the purposes of affordable housing relating to: . the investment of surplus funds and, 2010 Session Summarv Page 69 Agenda Item No. 5E Ma 25 2010 . the administration of programs receiving federaJ funding for which no corresponding program has been previously created by statute. The bill provides that funds from the State Housing Trust Fund or the Local Government Housing Trust Fund that are appropriated for use in the State Apartment Incentive Loan (SAIL) Program, Florida Homeownership Assistance Program (FHAP), Community Workforce Housing Innovation Pilot (CWHIP) Program, or the State Housing Initiatives Partnership (SHIP) Program may not be used to finance or otherwise assist new construction until July 1, 2011. The bill failed to pass after bouncing back and forth between the House and Senate on the last day of Session. SB 690/HB 7195 Local Government Accountability- Failed to Pass This bill provides minimum standards for budgeting by counties, county officers, municipalities, and special districts. The bill requires that budgets and budget amendments of each county, county officer, municipality, special district, and school district be posted on the government entity's website. The bill requires counties, municipalities, and special districts to file their annual financial report and annual financial audit report within nine months of the fiscal year end with the Department of Financial Services and the annual financial audit report with the Office of the Auditor General within nine months of the fiscal year end. This bill also amends thc process used by the Legislative Auditing Committee and the Department of Community Affairs to compel special districts to file certain required financial reports. The bill died in the House. SB 782/HB 445 Pre-Trial detention and Release- Failed to Pass Senate Bill 782 creates a new subsection in s. 907.041, F.S., the pretrial detention and release statute. The bill sets forth limitations on the eligibility of candidates for the local pretrial release programs. The bill also provides for requirements of the pretrial release programs themselves. It also prohibits the programs from collecting any fees other than those authorized by state law. The bill, however, does not attempt to restrict thc court's ability to determine whether, or on what other conditions, a defendant should be released from custody pending the outcome of the criminal charges; it simply eliminates one of the options - supervision by a local pretrial program - under the conditions set forth in the bilL The bills died in committee. HB 1241/SB 2436 Transient Rental Sales Tax- Failed to Pass The bill addresses state and local taxes related to the business of renting, leasing, letting, or granting a license to use transient rental accommodations. The bill amends the law relating to local option tourist development taxes, the local option tourist impact tax, the local convention development tax, the municipal resort tax and the sales tax imposed upon the taxable privilege of renting, leasing, or letting for consideration any accommodations in hotels, motels, roominghouses, mobile home parks, recreational vehicle parks, condominiums, or timeshare resorts. The bill defines "consideration," "rental," and "rents" as the amount received by a person operating transient accommodations, or the owner of such accommodations, for the use of any living quarters or sleeping or housekeeping accommodations in, tJ'om, or part of, or in connection with any transient accommodation. The Revenue Estimating Conference estimates that the revenue impacts of the bill are negative 2010 Session Summarv Page '10 Agenda Item No. 5E indeterminate for General Revenue and state trust fund revenue. Local government revenue will be reduced by $22.7 million in FY 2010-2011, with a negative indeterminate recurring revenue impact. The bill may be a mandate requiring a 2/3 vote of the membership of each house. The bills died on the Senate floor. SB 1254 Property Assessment Exemption- Failed to Pass The joint resolution proposes to amend paragraph 1 of subsections (g) and (h) in s. 4, Art. VII, State Constitution, to reduce the annual assessment limitation on non-homestead property from ten percent to five percent. This assessment limitation is pursuant to general law and subject to the conditions specified in such law. If approved by Florida voters, this provision will take effect on January 1, 2011. The joint resolution also proposes to create subsection (f) in s. 6, Art. VII, State Constitution. This amendment allows individuals that are entitled to a homestead exemption under s. 6(a), Art. VII, State Constitution, that have not previously received a homestead exemption in the past three years to receive an additional homestead exemption equal to 50 percent of the just value of the homestead property up to $500,000 for a period of five years or until the property is sold. The additional exemption is available within one year of purchasing the homestead and would be reduced by 20 percent of the initial exemption on January 1 of each succeeding year, until it is no longer available in the sixth and subsequent years. The bill was withdrawn to the Senate floor the last week of Scssion for consideration but died in the Senate. SJR 2420 T ABOR- Failed to Pass This joint resolution proposes an amendment to Section 1 and the creation of a new section in Article VII of the State Constitution, to provide the following: Replaces the existing state revenue limit based on Florida personal income growth with new state revenue limits and creates a local government revenue limit. Limits property tax revenues based on changes in local growth and school enrollment changes. Requires excess revenues to be deposited into budget stabilization funds and provides for distribution of the excess funds. Authorizes voters to permit the collection of revenues in excess of the limit. Authorizes the Legislature and the local governing body to approve emergency taxes by a supermajority vote. Prohibits state and local government from imposing new taxes, fees, assessments, or charges for services without first obtaining approval by a supermajority vote of electors voting on the issue. Prohibits the state and local government from incurring multi-year debts or financial obligations without adequate cash reserves. The proposed amendment will be submitted to the electors at the general election in 201 0 or at an earlier special election specifically authorized by law for the purpose, and will take effect upon adoption. The Legislature is required to adopt implementing legislation which must take effect July 1, 2011. The bill died in committee. SB 2622 Oil and Gas Resources- Failed to Pass The bill removes the prohibition against granting leases on state-owned submerged land underlying the territorial waters off the east and west coasts of the state, granting permits to drill a well in search of oil or gas within the territorial waters off the east and west coasts of the state, and permitting or constructing structures intended for the drilling for, or production of, oil, gas, or other petroleum products within the 2010 Session Summary Page 71 Agenda Item No. 5E Ma 25 2010 territorial waters off the east and west coasts of the state. The bill died in committee and may be dead for the foreseeable future after the Deep Horizon oil spill in the Gulf of Mexico. lIB 7223 Medicaid Managed Care Reform- Failed to Pass House Bill 7223 creates part IV of Chapter 409, Florida Statutes, entitled -Medicaid Managed Care, comprised of new sections 409.961 through 409.992, Florida Statutes. The bill establishes the Medicaid program as a statewide, integrated managed care program for all covered services, and requires AHCA to obtain and implement state plan amendments or federal waivers necessary to implement the program. Medicaid is created as three managed care programs: The Medicaid Managed Medical Assistance Program - primary and acute care The Long-Term Care Managed Care Program - residential and home and community based care, alone or paired with primary acute care for comprehensive coverage The Managed Long-term Care for Persons with Developmental Disabilities Program - residential and home and community based care, alone or paired with primary acute care for comprehensive coverage. The bill died during budget conference meetings when the Senate refused to expand managed care statewide. HB 7229/ SB 1186 Renewable Energy- Failed to Pass The bill revises existing statements of legislative intent with respect to Florida's energy policy and the development of renewable energy and providcs a set of incentive mechanisms to encourage the development of renewable and alternative energy resources. The bill streamlines the existing statement of legislative intent with respect to Florida.s energy policy by identifying and prioritizing the core goals of that policy; Amends the definitions of "renewable energy" and "biomass" to include additional energy resources; Consolidates existing statements of legislative intent with respect to development of renewable cnergy; Requires public utilities to continuously purchase renewable energy from producers that meet specified operating requirements at a rate equal to 80 percent of the weighted average of firm service retail electric rates of the public utility, with the costs to the utility recoverable from its ratepayers; and grants the PSC authority to adopt rules to implement these provisions: Authorizes public utilities, subject to specified conditions, to recover the costs to produce or purchase up to 735 megawatts of renewable energy statewide, provided that a utility may not recover costs in excess of its full avoided cost (as calculated under current law) in an amount that exceeds, at any time, 2 percent of the utility's total revenues from retail sales of electricity for calendar year 2009; Exempts from the definition of "public utility" a developer of a solar energy generation facility that is no larger than 2 megawatts and is located on the prcmises of a host consumer, other than a multi-family residential building, for purposes of sale to the host consumer for consumption only on the premises and specifically authorizes such sales; requires thc PSC to adopt implementing rules and submit related reports; Exempts solar electrical generating facilities from the Florida Electrical Power Plant Siting Act; and Establishes a loan guarantee program for certain renewable energy projects and facilities. Provisions of the bill requiring public utilities to purchase renewable energy and allowing utilities to make discretionary production or purchases of renewable energy will result in an indeterminate increase in utility costs and rates. The loan guarantee program will require a 5 percent match from state funds. 2010 Session Summarv Page '12 Agenda Item No. 5E A potential source of funds (up to $5 million) could come from reversions from several older terminated grants in the Florida Energy and Climate Commission. The bill died during floor debate. * Bill summaries provided in this section and 'Major Legislation That Passed' section are provided by the House 2010 Legislative Summary end of Session Report.