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Securities & Financial News to Note : Bulletin - February 6, 2012

This bulletin is published every other week on Monday and is disseminated via electronic mail. It features brief summaries of current legal developments in the SEC/corporate, accounting/tax, banking, litigation, as well as other business and financial service areas when appropriate.

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Construction: Alert - January 30, 2012

For almost 50 years, lessors have had the ability to limit their liability for liens that arose from improvements to the leasehold made by a lessee. However, in the most recent legislative session, the Florida Legislature enacted revisions to Florida Statute § 713.10 that provide a potential pitfall for lessors by inserting a provision that may allow a contractor to lien the lessor's interest even where there is a recorded document advising of the limitation of liens.

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Eyes on Tallahassee
Recap - July 20, 2005
 
In this Issue...
No Records Found
2005 Florida Legislative Session Recap Holland & Knight
 
July 20, 2005
 

KEY:

Committee Substitute (CS) A Senate or House bill going through the committee hearing process sometimes has numerous amendments, or the amendments change the original concept of the bill. In these instances the bill is rewritten and becomes a “committee substitute.” The next committee of reference may again rewrite the bill, and more than one bill may be combined. The committee substitute continues to carry the identifying number(s) of the original bill(s) filed. A CS/CS or C2 is a Committee Substitute for Committee Substitute.

Enacted The State Constitution requires that each bill be prefaced by the phrase: “Be It Enacted by the Legislature of the State of Florida” which is referred to as the enacting clause. Enacted legislation refers to a bill which has been passed into law.

Enrolled Bill (ER) A Senate or House measure approved by both houses and signed by the legislative officers which is sent to the Governor for action and transmittal to the Secretary of State or filed directly with the Secretary of State. The bill is enrolled in the house of origin under the supervision of the Secretary of the Senate or the Clerk of the House.

Law An act becomes a law when the Governor either approves it or fails to sign or veto it within the period specified in the State Constitution. An act can also become a law when a subsequent legislature overrides a veto by the Governor. While the legislature is in session, the constitution allows a seven-day period following presentation of a bill to the Governor within which to sign or veto the bill. If the legislature adjourns sine die before an act is presented to the Governor or while an act is in the Governor’s possession, the Governor has 15 days following the date of presentation in which to take action. The identifying number assigned by the Secretary of State to a bill that has been enacted or passed into law is referred to as the Chapter Law. The Chapter Law number indicates the year passed and the printing number. For example, chapter 2000-541 represents the 541st law printed in the year 2000. Chapter laws are compiled and published annually in the Laws of Florida.

 

Business

Business Entities/Florida Revised Uniform Limited Partnership Act

CS/SB 1056 would streamline the registration and transfer laws governing business incorporation and limited liability corporations in Florida. Patterned after incorporation and registration statutes in Delaware and Nevada, the legislation will make it easier for business entities to register in Florida and to change their registrations. Corporations can gain tax breaks or increase their sources of funding by becoming limited liability companies. The changes could entice new companies to make their headquarters in Florida. Three committees of The Florida Bar Association prepared the bill.

Copy of the Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1056er.pdf

 

Environment

Growth Management

The final bill to pass during the 2005 Legislative Session was CS/CS/CS/SB 360 which is the first update to Florida’s growth management law since 1985. The omnibus legislation, dubbed the “pay-as-you-grow” growth management law, will ensure roads, schools and water are available to meet the needs of growing communities. The Governor this year marked growth management reform as a top priority. The legislation addresses the road, water and school needs of Florida’s growing communities:

• Roads – The reforms close the gap between new development and the construction of needed transportation by requiring roads to be in place or under construction within three years of a local government’s approval of a building permit that would result in additional traffic.

• Schools – Local governments and school boards will jointly plan for schools, requiring that educational facilities are available or under construction within three years from development approval. Reform closes the gap between when new development begins and needed school facilities are built.

• Water – The growth management legislation creates a stronger link between local water supply planning and regional plans prepared by Florida’s five water management districts. In addition, an adequate water supply must be available before residents move into new developments.

To ensure the growth management bill passed, the sponsor Senator Bennett sacrificed his provision calling for tighter controls on impact fees. Cities and counties assess impact fees on new construction to help cover the costs of new roads, parks, schools, ambulance stations and other facilities. They opposed the provision as trying to limit their ability to levy the fees.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0360er.pdf

Water Resources

CS/CS/CS/SB 444 which passed this session provides for numerous changes to the state’s water resource development efforts. The bill provides legislative direction to guide the development of alternative water supplies, defines the role of local governments and water management districts, and establishes a goal for the districts to provide a 100 percent match of state funds for the development of alternative water supplies. The bill creates a new program to guide the water management districts in funding alternative water supply projects. Included in the bill are provisions that: detail how the funds shall be allocated to each water management district; direct that all applicants must provide for at least 60 percent of the projects’ capital costs; provide factors that the governing board must consider in determining the priority order for projects; require certain rate setting structures for utilities receiving funds; and allow the water management districts to impose certain conditions for reuse projects that receive funds. The bill amends current law concerning requirements for the issuance of consumptive use permits to provide that any project funded under this new program shall be presumed to be in the public interest. Current law is amended to direct that the water management districts issue 20-year permits for projects that develop alternative water supplies.

Current law provisions relating to surface water improvement and management programs are amended to require a 50 percent match for all projects. Additionally, the bill makes a series of changes to existing growth management laws. Specifically, local governments will now be required to select and include in their capital improvement element those alternative water supplies needed to meet their future water needs; be required to determine, prior to the issuance of a building permit, that adequate water will be available; and include in their evaluation and appraisal reports the extent to which water projects are being implemented.

Numerous changes are made to the current law relating to the development and implementation of total maximum daily loads. The bill adds specific criteria that will be followed in the development of basin management action plans; implementation of the loads; and development and use of best management practices. The practical purpose of these new criteria is to address the inclusion of non-point sources into the program and provide guidance for how the plans will interact with existing permitting programs. The existing Water Quality Improvement and Water Restoration Grant Program is also changed and will be used to determine the eligibility of individual projects submitted annually to the legislature. The bill removes provisions that made the program competitive, prohibits drinking water programs from future consideration and provides new criteria for projects. The new criteria provide that the project must be approved by a water management district, be part of a previously approved project and provide a local match. The bill creates the Water Protection and Sustainability Program. This new program is designed to provide funding for the new alternative water supply program provided in the bill and to also fund a series of existing state programs. The existing state programs include: surface water improvement and management; total maximum daily loads; and disadvantaged small community wastewater grant program. The bill provides two distribution methods. One for use in the 2005-2006 fiscal year and the other for future fiscal years. For fiscal year 2005-2006: $100 million for alternative water supply; $50 million for total maximum daily loads; $25 million for surface water improvement and management; and $25 million for the disadvantaged small community wastewater grant program. For future years the distribution is: 60 percent for alternative water; 20 percent for daily loads; 10 percent for water improvement and management; and 10 percent for small communities.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0444er.pdf

Contamination Notification

The 2005 Legislature approved HB 937 that establishes notification requirements when contamination has migrated beyond the property boundary of a contaminated site. The measure requires persons responsible for site rehabilitation (PRSR) to promptly notify the agency of any off-site contamination. The PRSR must give notice to FDEP’s Division of Waste Management no less than 10 days after discovery of the contamination. Copies of the notice also must be given to the appropriate district office, county health department, and all known lessees and tenants of the source property. Notice is to be provided by certified mail and on a form adopted by FDEP. The bill also requires FDEP to provide notice to all record property owners of any real property on which contamination has been discovered. If the property is a school, then FDEP also must provide a copy of the notice to the chair of the school board, and the school board must provide actual notice to teachers and parents. The new law becomes effective on September 1, 2005. This measure was prompted by an incident in South Manatee County, Florida, where residents did not learn of contamination from a nearby plant until several years after it was discovered and cleanup activities were well underway.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h093705er.pdf

Net Ban

Environmentalists and coastal fishermen have been wrangling for 10 years over the 1994 constitutional amendment limiting the size of trawl nets in coastal waters and forbidding the use of gill nets or entanglement nets. Legislation was introduced to allow the use of nets with any mesh size – not the one-inch mesh, two-inch stretch permitted by the Fish and Wildlife Conservation Commission (FWCC). Rep. Will Kendrick (D-Carrabelle) also offered a constitutional amendment that would have stripped the FWCC of its rulemaking power. Ultimately, SB 1178 and HB 741 died with the House Water and Natural Resources Committee after the sponsor agreed to an interim study of mesh size to be conducted by university researchers.

Copy of the Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1178.pdf

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h074100.pdf

 

Government Contracts

Privatization

CS/CS/SB 1146 tightens the state’s outsourcing laws, creates a Commission for Efficient Government and requires more legislative oversight over large state procurement contracts. The commission is made up of four agency heads and three people from the private sector, who must have procurement experience and cannot be a registered lobbyist. Ultimately, the bill was vetoed by Governor Bush.

Copy of Vetoed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1146er.pdf

State Technology Office

The State Technology Office (STO), created by Governor Bush in 2000, had vast powers to buy and oversee everything technology-related from computers to telecommunications services within Florida’s state agencies. This session, the Governor requested that some of the STO’s operational duties be transferred to the Department of Management Services with a focus on long-range strategic planning of the state’s technology needs, rather than day-to-day procurement and contract monitoring. By passage of CS/CS/SB 1494, the Legislature went a step further, by eliminating the State Technology Office and replacing it with a new Florida Technology Council, with members to be appointed by the Governor. The new council will be able to make decisions, but only after consultation with the chief information officers of the state agencies and the Technology Resources Workgroup, a legislative panel. Ultimately, the bill was vetoed by Governor Bush.

Copy of Vetoed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1494er.pdf

 

Judicial/Corrections/Law Enforcement

Paternity

Court rulings require men to continue to support children they thought were theirs, even if they weren’t. Legislation (CS/CS/SB 1456 and CS/HB 1195) was proposed to allow men to challenge paternity with DNA testing, and it would have allowed the courts to act on child-support orders based on test results. The bills would have allowed a man to end his child support obligation if he proved that he was not the biological father. The Senate passed the bill but it never was approved by the House. The House sponsor of the legislation, Rep. Curtis Richardson (D-Tallahassee), has said he intends to file the bill again next year.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1456c2.pdf

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h119502c2.pdf

Alimony

Should people have to continue to pay alimony to an ex-spouse who has moved in with another person as part of a “supportive relationship?” Judges generally end alimony when the recipient remarries, but the courts in Florida have disagreed about what to do when the person moves in with someone else but doesn’t remarry. CS/SB 152, as passed by the Florida Legislature, would let judges reduce or cut off alimony. Senator Gwen Margolis (D-Miami) called on Governor Bush to veto the bill, which she called “the most extreme anti-cohabitation statute in existence.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0152er.pdf

Wilton Dedge

Should the state compensate innocent people who are wrongfully imprisoned for crimes they did not commit? The session, HB 865 was filed for Wilton Dedge, a Brevard County man who was released from prison last summer after serving 22 years for a rape he did not commit. Dedge wanted lawmakers to compensate him for his lost wages and attorney’s fees during the time he spent in prison in the amount of $5 million. Ultimately, the House and Senate could not agree on how to let innocent people seek compensation.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h086500.pdf

New Judgeships

It’s been four years since state budget funding has been provided for new judges, even though Florida’s population has continued to increase exponentially. The Florida Supreme Court had asked the Legislature to provide funding for 108 new trial judges. Ultimately, the Legislature granted half this request, agreeing to spend $8.5 million to get 55 new trial judges in Florida, with half being appointed by November 2005 and the rest by January 2006. The 20th Judicial Circuit which is a five-county circuit in Southwest Florida represented by Rep. Bruce Kyle (R-Fort Myers) did not receive any new judges. Rep. Kyle has speculated publicly that he was singled out because of “ideological differences” with Senate President Tom Lee (R-Brandon).

Copy of Budget Conference Report:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2600er.pdf

Civil Legal Assistance Funding

The 2005 Legislature appropriated an unprecedented level of $5 million new dollars to fund the Civil Legal Assistance Program, however, Governor Bush vetoed the funding for this program in the budget. This funding would have allowed the program to go statewide in providing legal assistance to the poor.

Copy of Budget Conference Report:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2600er.pdf

Anti-Murder Legislation

Sarah Lunde, Jessica Lunsford and Carli Brucia were all allegedly murdered by probation violators who had violent pasts. Legislation dubbed the Anti-Murder Act by Attorney General Charlie Crist (CS/SB 608 and HB 451) would have required judges to send violators with a violent history back to prison. The bill eventually died in a budget committee because the bill would have cost the state $56 million for increased prison space. America’s Most Wanted host John Walsh crusaded on behalf of the bill. Governor Bush said that the key to public safety is returning probation violators to prison, but stopped short of endorsing the anti-murder legislation.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0608c1.pdf

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h045100.pdf

Jessica Lunsford Act

On May 2, Governor Bush signed into law landmark legislation aimed at protecting all Floridians from sexual predators and offenders. HB 1877, known as The Jessica Lunsford Act, strengthens penalties for sexual crimes against children. The bill was filed after 9-year-old Jessica Lunsford was seized from her bedroom, assaulted and killed. A registered sex offender has been charged with her murder. The legislation includes a measure requiring many child molesters to wear satellite tracking devices for life.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h187705er.pdf

Stand Your Ground

The Sunshine State’s “No Duty to Retreat,” or “Stand Your Ground” law, which passed as CS/CS/SB 436 (Chapter 2005-27, L.O.F.) permits a person to use force, including deadly force, without fear of criminal prosecution or civil action for damages, against a person who unlawfully and forcibly enters the person’s dwelling, residence, or occupied vehicle. Additionally, the bill abrogates the common law duty to retreat when attacked before using deadly force that is reasonably necessary to prevent imminent death or great bodily harm. The law also expands the castle doctrine by expanding the concept of what is a “castle” and by expanding the group of persons entitled to the castle’s protection. Under the castle doctrine, a person has no duty to retreat from his or her “castle” (a person’s home or workplace), before resorting to deadly force necessary for self-defense. The bill expands the concept of the castle to include attached porches, any type of vehicle, and places of temporary lodging, including tents. Under the castle doctrine, only persons lawfully residing in a dwelling have no duty to retreat before resorting to deadly force necessary for self-defense. Under the provisions of the bill, invited guests in another person’s “castle” will have the same rights to self-defense as a resident of the expanded castle. These provisions were approved by the Governor on April 26 and will take effect October 1, 2005.

Copy of Law:

http://election.dos.state.fl.us/laws/05laws/ch_2005-027.pdf

Taser Legislation

There was a plethora of bills filed this session relating to the use of tasers, all of which died as the session came to a close: SB 0488 and HB 709 relating to taser use on minors on the grounds of a school; SB 1574 relating to law enforcement officers and the use of tasers on minors; SB 2238 relating to Florida Department of Law Enforcement Officers and the training requirements for use of a taser gun; SB 2240 relating to law enforcement officers and taser training and SB 2448 banning the civilian use of stun guns.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0488.pdf

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h070900.pdf

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1574.pdf

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2238.pdf

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2240c1.pdf

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2448.pdf

 

Health Care

Florida KidCare Program

Enrollment in KidCare subsidized health insurance for children plummeted over the past year from about 350,000 to less than 240,000. That occurred despite promises and allocations last year by the Legislature and the Governor to increase KidCare slots by 90,000. Tougher rules on enrolling and maintaining eligibility for KidCare produced the drop-off in children served by a program that costs families only $15-$20 a month. Up to $121 million allocated this year for KidCare sits unused. Enrollment in the program was opened year-round under CS/HB 569 which awaits the Governor’s signature. Enrollment is currently limited to January and September of each year. Under the legislation, when the enrollment ceiling is reached, enrollment shall immediately cease.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h056904er.pdf

Medicaid Reform

The original plan launched by Governor Bush would place all 2.2 million elderly, people with disabilities, women and children under managed-care plans. Medicaid patients would choose their plan, and the HMOs or provider-based networks would set the level of benefits. No estimates of how the plan would affect costs in the soon-to-be $15 billion program have been projected. The Senate amended the reform proposal to exert tight legislative control over implementation or expansion of the Governor’s managed-care-only experiment. The reform will start with pilot projects in Broward, Duval, Clay, Baker and Nassau counties with a separate pilot program for the elderly in long-term care. The bill includes almost instant monitoring of the treatment delivered to patients and whether it’s within best medical practices.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0838er.pdf

Medical Malpractice

CS/SB 940 implements s. 26, Art. X of the State Constitution, which provides that “[n]o person who has been found to have committed three or more incidents of medical malpractice shall be licensed or continue to be licensed by the State of Florida to provide health care services as a medical doctor.” Incident is defined to include a single act of medical malpractice, regardless of the number of claimants. Multiple findings of medical malpractice arising from the same act or acts associated with the treatment of the same patient must count as only one incident. Beginning July 1, 2005, the Department of Health must verify each physician’s disciplinary history and medical malpractice claims at initial licensure and licensure renewal using the National Practitioner Data Bank. The physician profiles must reflect the disciplinary action and medical malpractice claims as reported by the National Practitioner Data Bank.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0940er.pdf

Patients’ Right-to-Know

CS/SB 938 implements s. 25, Art. X, of the State Constitution, which provides patients access to records of adverse medical incidents. The new law, referred to as the “Patients’ Right-to-Know About Adverse Medical Incidents Act,” requires hospitals, ambulatory surgical centers, mobile surgical facilities, medical physicians, osteopathic physicians, and podiatric physicians to provide access to records of adverse medical incidents that occurred on or after November 2, 2004. An adverse medical incident means medical negligence, intentional misconduct, or any other act, neglect, or default of a health care facility or health care provider, which caused, or could have caused, injury or death to a patient.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0938er.pdf

Parental Notification

HB 1659 requires a minor to notify her parent or legal guardian prior to terminating her pregnancy. A judicial waiver process is provided in HB 1659, which permits a minor to petition the court for a waiver to the notification requirement. The court is authorized to waive notice, upon reaching certain findings, such as when a medical emergency exists, the minor is sufficiently mature to make the decision independently, abuse is present, or that notice is not in the best interest of the minor. The substantive bill provides for confidentiality of all hearings, but does not address the court record. CS/SB 798 provides the public records exemption relating to court records containing information about a minor seeking judicial approval for a termination of pregnancy subject to the parental notification provisions.

Copy of the Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h165905er.pdf

 

Utilities

Hurricane Recovery

CS/CS/CS SB 1366 would allow utility companies, namely Progress Energy Florida, Inc. and Florida Power & Light Company, to issue corporate bonds to cover their hurricane recovery costs. Both companies have asked the Florida Public Service Commission for permission to recover their hurricane costs through two-year customer surcharges, but this legislation would afford them an alternative. Issuing corporate bonds would allow the companies to recover their costs immediately with lower surcharges per year because the bonds would be spread out over a longer period, therefore lessening the short-term effect on utility customers. The legislation also would enable the companies to recover revenues lost to hurricane damage, effectively allowing the companies to collect money for electricity they never sold. The legislation would also enable the companies to use the proceeds from the bonds to replenish their storm damage reserve funds, which were depleted by last year’s hurricanes.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1366er.pdf

Public Service Commission Oversight

CS/CS/SB 1322 forms a 12-member legislative Committee on Public Service Commission Oversight that would recommend nominees to the Governor for PSC vacancies and would take over responsibility for appointing the state public counsel from the Joint Legislative Auditing Committee. The public counsel represents the interests of state utility customers before the PSC. The legislation also amends the standards of conduct for PSC commissioners and bars outside parties from appearing before the commission for two years if they are found violating rules banning gifts to commissioners or improper “ex parte” communication with commissioners. The bill allows PSC commissioners to participate in conferences and related events funded in part by utility companies and allows telephone companies to seek permission from the PSC to include surcharges of up to 50 cents each on their monthly bills to defray the cost of future catastrophic storm damage.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1322er.pdf

 

Insurance

Hurricane Insurance Coverage

Insurance companies sought legislation this session to protect them from paying to rebuild houses destroyed or damaged partly by flooding when a homeowner’s policy only covered wind damage. Insurers said that without the new law they would be forced to leave Florida or have to raise rates. Proponents wanted to undo a recent court decision that said insurance companies were required to pay the full policy amount to repair a house, even if some of the damage was caused by something that’s not covered in the policy, such as flooding, which is not covered by wind policies. One of the last measures legislators approved this session gives insurance companies a break from flood damage and also gives consumers a guarantee that the details of their policy will be clearly enumerated. The bill also gives consumers a choice of how large a deductible their policy would carry. Under the measure, they can choose a policy with a 2, 5 or 10 percent deductible. The bill also makes it easier for insurers to tap into the state’s Hurricane Catastrophe Fund, a backup insurance plan for companies that are hit hard by storms. Key provisions contained in the legislation include:

• creation of an insurance policy checklist: the new law requires a committee be convened to develop this checklist, with a report delivered to legislative leaders by January 15, 2006

• new hurricane deductibles: by 2006, companies are supposed to offer deductibles of 2, 5 and 10 percent; a higher deductible would mean lower premiums

• paying for repairs or damaged items: as of October 1, companies will be required to pay the full cost to replace an item; under current law, companies first give the homeowner the actual cash value, then they remit the reset of what the homeowner is owed after they make the repairs or replace the damaged item

• additional coverage: also starting October 1, homeowners can request extra coverage to help pay for repairs if their older home is destroyed and they have to rebuild to newer, stricter building codes; this new coverage is called “law and ordinance” coverage and it helps to rebuild beyond what an insurance policy currently covers; most insurers offer this coverage at an additional 25 percent above a homeowner’s policy limits to rebuild their home; the new law requires them to offer it at 50 percent above the homeowner’s policy limits

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1486er.pdf

Hurricane Housing Work Group

HB 1889 appropriates $250 million to implement the recommendations of the Hurricane Housing Work Group. The bill was amended in the Senate to specify that $208 million will be used to implement the Hurricane Housing Recovery Program with the remaining $42 million allocated to the Rental Recovery Loan Program.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h188903er.pdf

Title Insurance

HB 75 amends the definition of title insurance to permit the issuance of title policies for personal property, as specified in Article 9 of the UCC. The scope of the bill is limited to only UCC transactions for personal property. The bill does not affect real property transactions. UCC lender’s insurance protection is the personal property equivalent to the real property lender’s title insurance policy. Just as the real property lender’s title insurance policy insures and indemnifies the lender’s first priority mortgage or deed of trust secured by real property, the UCC lender’s policy insures and indemnifies the lender’s attachment, perfection and first priority security interest (lien) in personal property taken by lenders as collateral for a commercial loan. By insuring that the Lender’s security interest in personal property attaches to the Debtor’s collateral, the policy insures the Lender that the Debtor either has ownership rights in the collateral or has an interest in the collateral sufficient to transfer it to the Insured Lender as collateral for the loan.

Copy on Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h007504er.pdf

Health Insurance

This session’s health care package, containing some good things for health plans and limiting some bad provisions, was contained in HB 811 which passed.

Life and Health Insurance

HB 811 which embodied the Office of Insurance Regulation’s health insurance package, includes the following provisions:

• authorizes employers to list bill for individual health insurance policies for the uninsured, under certain circumstances

• reduces audits for life and health insurers from every three years to once in every five years and increases the maximum charge for the audits from $20,000 to $50,000

• amends 2004 healthy lifestyles rebate mandate to become optional for individual coverage

• corrects a glitch so health savings account policies will meet federal tax guidelines after January 1, 2006

• creates a small group and individual market advisory council for the Office of Insurance Regulation

• allows emergency room payments directly to a hospital where the health plan permits assignment, with certain limitations

Additionally, a provision requiring hospital transparency and funding for the Agency on Health Care Administration’s Web site with comparison information on hospitals passed as proviso language in the state budget.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h081106er.pdf

Discount Medical Plan Organizations

HB 1081 passed this session and corrected glitches to a law passed in 2004. Discount medical plan organizations (DMPO) that provide access for plan members to providers of medical services at a discounted fee in exchange for fees or other consideration are subject to licensure and regulation under ch. 636, part II, F.S., by the Office of Insurance Regulation (OIR). The bill provides the following changes related to the licensure and regulation of these entities:

• authorizes OIR to impose an administrative penalty and cease and desist orders in lieu of suspending or revoking the license of a DMPO

• provides that any charge or form is deemed approved on the 60th day after filing unless OIR has previously disapproved it

• authorizes OIR to disapprove any form that does not comply with ch. 636, part II, F.S., or that is unreasonable, discriminatory, misleading, or unfair

• authorizes a DMPO to retain up to a $30 one-time processing fee if a membership is canceled within 30 days of joining the plan

• revises the DMPO’s liability for the actions of its marketer

• eliminates audited financial statement requirements for licensure, if the applicant is a subsidiary of a parent company and certain conditions are met by the parent company

• eliminates the filing of annual, audited financial statements for a subsidiary of a parent company if certain conditions are met, and instead, requires a DMPO to file a sworn affidavit certifying compliance with net worth requirements

• repeals the civil remedies provision

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h108103er.pdf

Health Insurance Deductibles Study Commission

CS/CS/SB 662 sets up a study commission to look at high health insurance deductibles, co-payments and co-insurance and the ability of hospitals to collect charges in the deductible that are not covered by insurance. This bill was eventually vetoed by Governor Bush.

Copy of Vetoed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0662er.pdf

Mandatory Arbitration Clauses

HB 1503 calling for mandatory arbitration clauses in life and health insurance contracts did not pass this session.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h150304e1.pdf

Hospital Prompt Pay

SB 900, the hospital prompt payment package, died this session.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0900.pdf

Health Insurance/Mandated Benefits

SB 318 mandating cystic fibrosis coverage died this session.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0318c1.pdf

Surgical First Assistants

CS/SB 594 & CS/HB 187 relating to surgical first assistants also did not pass this session.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0594c2.pdf

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h018700.pdf

Cranio-Facial Anomalies

A bill requiring a study of cranio-facial anomalies, CS/SB 560, died this session.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0560c1.pdf

Managed Care

SB 1800 relating to managed care fiscal intermediary service organizations did not pass.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1800.pdf

Annuities

HB 105 relating to annuity sales to non-U.S. citizens in Florida by alien insurers passed this session.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h010503er.pdf

Viatical Settlements

CS/SB 2412 regulating viatical settlements as securities passed this session.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2412er.pdf

Investor-Owned Life Insurance (IOLI)

SB 1616 would have created a loophole to allow third parties unrelated to life insurance beneficiaries to take advantage of the tax-free status of life insurance policies. The bill was opposed by a coalition of life insurance companies and agents.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1616c1.pdf

Unclaimed Property

Among other provisions, HB 1527 would have banned locator services companies from searching for heirs to unclaimed property unless a prior contract existed.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h152705er.pdf

 

Tort Reform

Lawsuit Limitations

The Legislature passed two litigation reform measures, CS/SB 2228 which requires medical evidence of illness before plaintiffs can sue for asbestos exposure and another, HB 135 which protects utilities from damages stemming from broken street lights. There were several other tort reform measures which died this session when the Senate refused to take them up, including proposals dealing with the rights of people to collect damages when they fall in a store or business; the liability of businesses whose customers are victims of crime; product-liability lawsuits; and class-action suits. Another proposal eliminating the legal doctrine known as “joint and several liability,” which allows defendants with a small role in hurting someone pay a large share of the damages in some cases, also died. Both Governor Jeb Bush and House Speaker Allan Bense, together with a coalition of business groups, including Associated Industries of Florida and the Florida Chamber of Commerce, sought major limitations on how people could sue businesses.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2228er.pdf

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h013504er.pdf

 

Transportation

Mandatory Seat Belt Law

It took five years, but Rep. Irv Slosberg (D-Boca Raton) finally passed a tougher seat belt bill. Rep. Slosberg first ran for the State House of Representatives after his teenage daughter, who was not wearing a seat belt, was killed in a car crash. His legislative mission was to pass a law strengthening the enforcement of Florida’s mandatory seat belt law. HB 1697 provides that law enforcement officers would be authorized to stop motorists and issue citations for a safety belt violation. A person violating this provision would be cited for a nonmoving violation, punishable by a $30 fine. The bill also requires law enforcement officers to record the race and ethnicity of the violator when a citation is issued for not wearing a safety belt. This data must be forwarded to DHSMV, and the DHSMV must report this information annually to the Governor and the Legislature. Any fines collected for seat belt violations will be set aside to provide safety training for young drivers.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h169704er.pdf

Traffic Fines

Florida lawmakers passed a number of bills aimed at getting tougher on traffic safety during the 2005 Session. One bill more than doubles the fine for running red lights, and increases the number of points against a driver’s license. Another bill passed by the Legislature, but vetoed by Governor Bush, aimed to crack down on road rage by fining a person $60 for driving slowly in the left lane. With more than 3,000 people killed on Florida roads every year, lawmakers hope higher fines will help to make a difference.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h049706er.pdf

Copy of Vetoed Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h015704er.pdf

 

Taxes

Substitute Communications Systems Tax Repeal

CS/SB 2070 repeals retroactively the broad substitute communications systems tax imposed on the cost of operating communications systems that by-passed, or substituted for, dealer-provided communication paths (e.g., internal telephone systems, networked computer systems [local area network or “LAN”], monitoring systems, paging systems, radio dispatch and other radio systems, and point-of-sale and other inventory control systems). This tax was not aggressively enforced by Department of Revenue. The legislation prohibits refunds and provides that voice over Internet protocol (VOIP) is expressly taxed. A task force was created to report on telecommunications tax issues by July 2006.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2070er.pdf

Communications Services Tax Service Address

HB 1813 amends Section 202.011(15)(a), F.S., to designate a customer’s street address as the service address for taxable communications services where the location of the equipment from which the services originate or are received by the customer are unknown (e.g., satellite radio in a motor vehicle that crosses jurisdictional lines while receiving a signal). Prior law did not provide a standard for sourcing or situsing these services.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h181302er.pdf

Reduction of Annual Intangibles Tax Rate

CS/SB 2348 reduces the annual intangible personal property tax rate to .5 mill (down from 1 mill) effective December 31, 2005 (i.e., beginning tax year 2006). The Florida Legislature will likely eliminate the annual intangibles tax altogether in 2006.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2348er.pdf

Streamlined Sales Tax Project

Proposed legislation (SB 56 and HB 607) did not pass for a third consecutive year.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0056c1.pdf

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h060700.pdf

Hurricane Preparedness Tax Holiday

HB 6001 enacts a “sales tax holiday” for retail sales of certain hurricane-related equipment and supplies for the period June 1-12, 2005. The bill covers home generators (up to $750 in value), portable radios and lighting, fuel tanks, first aid kits, batteries, tarps and coolers.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h600103er.pdf

Back-to-School Shopping Tax Holiday

HB 101 provides a “sales tax holiday” for retail sales of clothing, footwear and handbags with a selling price of $50 or less and sales of school supplies and books with a selling price of $10 or less for the period from July 23-31, 2005.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h010103er.pdf

Power Farm Equipment Exemption

HB 643 enacts a complete exemption for purchases of power farm equipment used exclusively in agricultural production or in forestry and fire prevention, effective July 1, 2005. Equipment had been taxed at reduced rate of 2.5 percent.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h064303er.pdf

Tax Fraud

HB 1813 broadens the scope of “tax fraud” to include willful attempts in any manner to “evade any tax or fee” imposed by Chapter 212, F.S., and provides for punishment of such crime as a third-degree felony and imposes a 100 percent penalty. Under the current law, “tax fraud” crimes are limited to specific culpable acts. The law formerly included the phrase “or willfully attempting to evade the payment of such a tax or fee.”

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h181302er.pdf

Corporate Income Tax Piggyback

SB 1798 updates Florida’s Corporate Income Tax Code to adopt the Internal Revenue Code as amended after January 1, 2004, per Section 220.03(1) and (2), F.S.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1798er.pdf

Limitations Period for Refunds

CS/SB 1300 equalizes the statute of limitations for assessments and refund of estimated corporate income tax payments, by the commencing statute from the same triggering event (i.e., filing of return). Estimated payments will now be deemed paid at the time the return is filed, including extensions. Under current law, the statute of limitations for a refund of estimated payments disregards extensions. The legislation applies retroactively to tax years beginning on or after January 1, 2001.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1300er.pdf

Unemployment Compensation Tax

HB 1693 was designed to comply with the federal mandate (SUTA Dumping Prevention Act of 2004) to enact state legislation to prevent employers from evading unemployment compensation insurance tax, by transferring payroll from a high-rate company to a new or different low-rate affiliate. This also increases the criminal penalty for unemployment compensation fraud to a third-degree felony.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h169303er.pdf

Estate Tax

HB 1813 allows estates that are not required to file a federal tax return to file an “Affidavit of No Florida Estate Tax Due” directly with the Clerk of the Court and not with the Department of Revenue, regardless of the decedent’s date of death. Under prior law, that statute applied only to decedents who died on or after January 1, 2000; estates for decedents who died prior to that date were required under current law to file the affidavit with the Department of Revenue in order to obtain a nontaxable certificate.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h181302er.pdf

Insurance Premium Tax

HB 1813 creates a new statute of limitations for assessment of insurance premium tax where the amount of corporate income tax or workers’ compensation administrative assessment paid by an insurer is adjusted through an amended return or refund. Under prior law, refunds of the WCAA were made by the Department of Financial Services without consideration of the relationship between the WCAA and the insurer’s insurance premium tax or corporate income tax liability.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h181302er.pdf

Economic Development Incentives

Two economic development programs, the Qualified Target Industry and Qualified Defense Contractor tax refund programs, were extended to 2010 and reorganized under the provisions of HB 1483. The Communications Services Tax was also expressly added to the list of refundable taxes. These programs offer tax refunds to certain types of businesses that relocate or expand operations in Florida and create high-wage jobs.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h148301er.pdf

Enterprise Zones

HB 1725 re-enacts and extends the Florida Enterprise Zone program, and related state and local tax incentives, until 2015. The number of enterprise zones is capped at the current number (55), absent express legislative authorization for additional zones. Available tax credits include job credits against corporate income tax and sales tax, property tax credit, and sales tax refund for building materials and business property. Local governments may additionally authorize sales tax exemption for electrical energy used in an enterprise zone, ad valorem tax exemption, occupational license tax exemption, and local impact fee abatement or reduction.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h172504er.pdf

Restrictions on Customer Refund Claims

CS/SB 1602 provides increased burden of proof, restricts damages and provides an affirmative defense in any action by a purchaser against a vendor to obtain a refund of or to otherwise recover taxes collected by the vendor from the purchaser. The legislation applies to virtually all state taxes, except communications services tax. These restrictions include: 1) the purchaser must prove all elements of its refund claim by clear and convincing evidence; 2) the purchaser’s sole remedy is damages measured by the difference between the amount that the vendor collected as a tax and the amount that the vendor paid to the taxing authority plus any discount or collection allowance authorized by law and taken by the vendor; and 3) it is an affirmative defense to the purchaser’s action when the vendor remitted the amount collected from the purchaser to the appropriate taxing authority, less any discount or collection allowance authorized by law. The bill does not change the law regarding standing to claim a refund.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1602er.pdf

Timeshares

HB 1813 limits application of documentary stamp tax and non-recurring intangible personal property tax for timeshares to those documents that either are recorded or as to which the conditions precedent to release the purchaser’s funds or properties have been satisfied. Under prior law, there was some concern in the timeshare industry that requiring these taxes to be remitted on purchasers’ funds and properties held in escrow as required under Section 721.08, F.S., would violate the provisions of the escrow statute.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h181302er.pdf

Marlins Stadium

A measure providing a $60 million sales-tax subsidy for a new stadium in Miami-Dade County for the Florida Marlins died as the session came to a close. Senate President Tom Lee refused to take the measure up stating that they “just didn’t have the support of the Florida Senate.’’

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h128701c1.pdf

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1306c1.pdf

Proposed Constitutional Amendments

The sponsors of a proposed constitutional amendment that was struck from the November 2004 ballot have filed three new constitutional amendments to achieve their goal of implementing a broad-based sales tax on services in Florida. The three proposed amendments are designed to address the Florida Supreme Court’s concerns in striking the 2004 amendment from the ballot, and would operate to severely limit exemptions and exclusions (including services) from Florida’s sales tax. See, In Re Fairness Initiative Requiring Legislative Determination That Sales Tax Exemptions and Exclusions Serve a Public Purpose, Case No. SC04-947 (July 15, 2004).

The first amendment would require the Legislature to periodically review all sales tax exemptions except those currently provided for food; prescription drugs; health services; and residential rent, electricity and heating fuel. Upon completing that review, the Legislature would be required to reenact and continue only those exemptions that advance or serve a legislatively determined public purpose. Sales tax exemptions not reenacted and continued by the Legislature would be eliminated.

Under the second amendment, except for the payment of employee salaries and benefits, all non-taxed services provided for compensation would be reviewed by the Legislature to determine whether the exclusion of each service from taxation serves a public purpose. Upon completing that review, services not currently taxed and not expressly exempted from taxation by the Legislature would become subject to sales tax beginning January 1, 2009.

The third amendment would require that each law granting a sales tax exemption must contain a legislative determination that such exemption advances or serves a public purpose and must contain the single subject of a single exemption.

 

Privacy/Outsourcing

Security Breach Notification

HB 481 provides that any person who willfully and fraudulently uses or possesses with the intent to use, personal identification information concerning a deceased individual commits a third-degree felony. The legislation creates a third-degree felony offense for willfully and fraudulently creating, using, or possessing with the intent to use, counterfeit or fictitious personal identification information for the purpose of committing a fraud upon another person. The legislation also provides for the reclassification of an identity theft offense that involves misrepresenting oneself to be a law enforcement officer, or an employee of a bank, credit card company, credit counseling company, or a credit reporting agency, or any person who wrongfully represents that he or she is seeking to assist the victim with a problem with the victim’s credit history. Additionally, the bill requires a person who maintains computerized personal identification information for another person or business entity to notify the person or business entity for whom computerized records are maintained when there is a breach of security in the system. The notification language contains an exception that any disclosures which are already public record do not require notification.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h048105er.pdf

Outsourcing

SB 614 relating to outsourcing did not pass during the 2005 session. Other bills on this subject were defeated also.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0614.pdf

State Budget

During the 2005 Session, House and Senate leaders reached agreement regarding a $63.5 billion state budget. The budget has been engrossed and will be sent to Governor Jeb Bush for his consideration. Upon the Governor’s receipt of the General Appropriations Act, he had 30 days to sign, veto, or line-item veto certain aspects of the Act. A copy of the Governor’s budget veto message is attached.

State Budget In Brief

This year’s budget underscores fiscal responsibility while appropriately meeting the needs of Florida’s most vulnerable. The total proposed House Budget is $63.5 billion, an increase of 8.36 percent over fiscal year 2004-2005. The budget includes:

• $25.9 billion in General Revenue spending, an increase of 6.11 percent over the previous year

• $37.6 billion in trust fund spending, an increase of 9.96 percent over the previous year

• Health/Welfare: $22.5 billion

• Criminal Justice: $4.2 billion

• Education: $27.6 billion (largest increase ever in education funding)

• Agriculture and Environment: $2.7 billion

• $387.1 million for implementation of the Voluntary Pre-Kindergarten Program

• $60.3 million to operate the state prison system and to provide additional prison beds to assure that all inmates serve 85 percent of their sentences; this includes funding to deal with sexual predators covered by the Jessica Lunsford Act

• $393.3 million to continue the Medically Needy program in its current form

• $193 million for Affordable Housing programs

• $7.3 million to repair of National Guard armories around the state

• Over $6 billion to fund transportation construction and repairs, including 204 new lane miles

• State employees got a 3.6 percent raise

• 55 new judges in courthouses throughout the state

• $1.5 billion for growth management projects

• $1.1 billion goes into a savings account or “rainy-day” fund

• $386 million for universal pre-kindergarten

• $225 million in tax cuts

• $130 million for water projects

• $60.3 million for new prison beds

• $14 million to increase grants to Floridians attending private colleges or universities

• $11 million for historically black colleges and universities – highest level ever

• $4.9 million for GPS tracking-monitors for sexual predators

• $2.7 million for electronic monitoring of juvenile offenders

• $4 million to train poll workers

• $3 million for voter education

• in-state undergraduate students face a 5 percent tuition hike

The following budget items were secured:

City of West Palm Beach: $1.2 million in local projects (after Governor’s vetoes)

Sarasota County: $1 million for Phillipi Creek Septic Tank Replacement Project; $210,000 for Juvenile Assessment Center

Girl Scouts Legislative Network: $700,000 for Mentoring Program

Copy of Budget Conference Report:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2600er.pdf

Copy of Budget Veto Message:

http://www.myflorida.com/myflorida/government/laws/2005legislation/

pdfs/2005_veto_final.pdf

 

Ethics and Elections

Election Reform

Democratic lawmakers are outraged over HB 1567 which limits early voting hours. The legislation is part of an overall election-reform bill. It expands “no solicitation” zones to prevent voter intimidation. It also makes changes to voter registration, creates guidelines for poll-watchers, and outlines early voting processes. The legislation also limits early voting to just eight hours a day. The legislation also eliminates the current provision allowing for voting on the Monday before election day.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h156705er.pdf

Lobbyist Disclosure

A bill that would have forced lobbyists to disclose their earnings and the money they spend on meals with lawmakers died on the final day of the 2005 Session. The measure was a top priority for Senate President Tom Lee. The Senate’s version of the bill, SB 2646, would have required lobbyists to report their total compensation by categories, such as $10,000-$49,999; $50,000-$99,999; $100,000-$250,000, instead of a precise amount. It would have prohibited lawmakers from accepting gifts from lobbyists, except for novelty gifts valued under $25. The Senate bill would also have prevented many felons from lobbying which the House proposal did not contain. Under the Senate plan, a felon would have to complete all of their legal requirements, have their civil rights restored and win a majority vote of the Governor and Cabinet before registering as a lobbyist.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2646e1.pdf

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h184900.pdf

Term Limits

HJR 1177 increases term limits for state legislators from eight to 12 years. The 12-year term limit applies only to legislators whose consecutive years in office begin on November 7, 2006, or thereafter; office holders prior to and continuing through November 7, 2006, remain subject to the current eight-year term limit restriction in s. 4(b), Art. VI, State Constitution. The bill also removes unconstitutional term-limit restrictions in the State Constitution applicable to federal office holders; the U.S. Supreme Court has ruled that state-imposed term limits on federal officers violates the qualifications clause of the U.S. Constitution. See, U.S. Term Limits, Inc. v. Thornton, 514 U.S. 779 (1995).

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h117702er.pdf

 

Regulated Industries

Slot Machines

Slot machines generated a lot of conversation during the legislative session, but lawmakers ultimately could not agree on how to tax them – or even define them. The parimutuel industry has stated that it will likely go to court to clarify these issues. In last November’s general election, voters approved an amendment to the Florida Constitution that gave Broward and Miami-Dade counties the option of having slot machines at parimutuel facilities. The ballot measure specified that any revenue raised from taxing the slots would be used for public schools statewide. Four months later, voters in Miami-Dade County rejected the slots initiative, while voters in Broward approved it. The Senate version of the legislation would have allowed the parimutuels to install traditional slots like those found in Las Vegas and Atlantic City. The House wanted to allow only bingo-based electronic gambling machines, like those currently found in Florida’s Indian casinos. The two chambers couldn’t reach a compromise and passed nothing.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1174c3.pdf

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1342.pdf

 

Education

Class-Size Amendment

Governor Bush’s priority to dilute Florida’s class-size mandate was rejected by the Florida Senate this session. The class-size amendment was approved in 2002 by 52.4 percent of the voters. Of the 2.55 million votes in favor of the caps, nearly one of every three was cast in Broward, Palm Beach and Miami-Dade counties. Repealing the mandate was one of the Governor’s top priorities this session even though polls have shown that voters do not agree with the repeal. The House overwhelmingly endorsed the idea of putting the issue back before voters in November 2006, but the plan could not even win a simple majority of the 40-member Senate, much less the 24 votes needed to put a constitutional amendment on the ballot. The State Constitution now requires that by 2010 all kindergarten through third-grade classes have no more than 18 students, that fourth- through eighth-grade classes be capped at 22 students and high school classes be limited to 25.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2090c2.pdf

http://www.flsenate.gov/data/session/2005/House/bills/billtext/pdf/h184300.pdf

 

On The Lighter Side

Portable Toilets

CS/CS/SB 626 requires portable toilets to be regulated by the Department of Health and creates penalties and fines for failing to comply with the regulations.

Copy of the Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0626er.pdf

Toilet-Tissue Tax

Senator Al Lawson (D-Tallahassee) tried to float a bill putting a 2-cent-per-roll tax on toilet paper to help buy new sewer systems for the small rural counties in his district. There was no companion bill filed in the House, and SB 2544 died without a single committee hearing.

Copy of Failed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s2544.pdf

“Merlot To Go”

Under CS/SB 1114 diners will be able to take an opened bottle of wine home from a restaurant. The bill gives restaurants the choice to provide the service to customers who have eaten a full meal and consumed part of a bottle of wine. If they do, the bottle would be placed in a sealed bag and may be taken home in a car trunk or glove compartment. The bag, which is to be approved by the state Department of Business and Professional Regulation, must be tamper-resistant.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1114er.pdf

Nursing Home Beds

Lawmakers passed a measure, CS/CS/CS/SB 442, giving nursing home residents the right to arrange their furniture in their rooms as they see fit. Currently, Florida’s decades-old safety code required that nursing home beds stick out perpendicularly from the wall, leaving space on both sides, as in hospital rooms. The legislation was filed at the behest of a few nursing home administrators who asked for an official exemption from the rules in law. The legislation allows wall beds as long as residents request them, their roommates don’t object and they don’t interfere with safety or care.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0442er.pdf

Official Fruit of Florida

On May 20, the Governor signed into law SB 574 which designates the orange as the official state fruit.

Copy of Enacted Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s0574er.pdf

Sloppy Joe’s

Governor Jeb Bush will soon have to decide whether a historic bar in Key West deserves a special exception to the state’s smoking ban in restaurants. Legislation passed during the 2005 Session, CS/CS/SB 1348, lets bars in historic buildings circumvent the constitutional amendment. Opponents argue that the bill opens the door to other exemptions, and flies in the face of what voters intended. They have asked Governor Bush to veto the legislation. This bill was vetoed by Governor Bush.

Copy of Vetoed Legislation:

http://www.flsenate.gov/data/session/2005/Senate/bills/billtext/pdf/s1348er.pdf

For more information on these enacted laws, e-mail Patricia Greene at patricia.greene@hklaw.com or call toll free, 1-888-688-8500.

Growth Management

On June 24, Governor Bush signed into law legislation overhauling Florida’s growth management law. The new law provides the Department of Environmental Protection (FDEP) with more than $2 billion to fight pollution, improve water quality and supply and strengthen protection for Florida’s natural resources. Appropriations include more than $400 million to continue restoring America’s Everglades and acquiring environmentally-sensitive land, $73 million to restore Florida’s hurricane-ravaged beaches, and more than $294 million to improve the health of rivers, lakes, estuaries and springs. For details, see the attached press release:

http://www.dep.state.fl.us/secretary/news/2005/06/0624_03.htm

Lottery Prize Scam

Attorney General Crist warned Floridians about a scam that requires “winners” of a lottery or sweepstakes to submit payments in order to claim their prize. The scam lures Florida citizens, particularly elderly residents, into paying unnecessary “processing” or “premium” fees in order to collect a “free” prize.

The Attorney General’s Office spotted the growing trend after receiving numerous complaints from consumers across the state. Soliciting fees to collect a “free prize” is illegal in Florida.

Copy of Press Release:

http://myfloridalegal.com/newsrel.nsf/newsreleases/

B20049B548F2501A852570260061D78C

Broward County Slot Machines

After being criticized in the press by Senate President Tom Lee, Attorney General Crist issued a statement (see link below) on June 24 regarding the Broward County slot machine issue:

Copy of Statement:

http://myfloridalegal.com/newsrel.nsf/newsreleases/

488F398F067E075E8525702A006499E4

Hydrogen Fuel Technology

Moving into the next generation of energy technology, Homosassa Springs Wildlife State Park today unveiled a hydrogen fuel cell system, which is now powering the park’s Wildlife Encounter Pavilion. The partnership between the Florida Department of Environmental Protection (DEP) and Progress Energy Florida provides clean energy to the park and shares the benefits of emerging “next-generation” technology with hundreds of thousands of visitors.

Copy of Press Release:

http://www.dep.state.fl.us/secretary/news/2005/06/0624_02.htm

Brownfields Redevelopment Act

Florida reached a milestone in restoring abandoned and idle properties this year, designating its 100th local brownfield site. The Florida Department of Environmental Protection (DEP) recently submitted the 2004 Annual Report on the Brownfields Redevelopment Act to Governor Jeb Bush and the Florida Legislature outlining the State’s achievements in implementing the 1997 law to revitalize communities and boost local economies by cleaning up historically-polluted sites.

Copy of Press Release:

http://www.dep.state.fl.us/secretary/news/2005/06/0615_02.htm

Medicaid Reform

On June 3, Governor Jeb Bush signed historic legislation aimed at reforming Medicaid, the healthcare safety net program for more than 2.1 million low-income, elderly and disabled Floridians. Medicaid, administered through a state-federal partnership, has not undergone significant reform since its inception more than 30 years ago.

Copy of Press Release:

http://www.fdhc.state.fl.us/Executive/Communications/

Press_Releases/06_03_2005.shtml

“Do Not Call” Law

Florida Agriculture and Consumer Services Charlie Bronson announced on June 17 that he has taken legal action against a Hillsborough County telemarketer for violating Florida’s “Do Not Call” law.

A lawsuit filed in Hillsborough County Circuit Court alleges that Liberty One Capital Inc. made at least six telephone calls to Florida residents on the state’s “Do Not Call” list during the past 10 months. Moreover, the company is accused of playing recorded messages when residents answered the phone, which is a separate violation of Florida law.

“Consumers who join the program are entitled to be spared the intrusion of commercial telemarketing calls, and this company apparently has failed to get the message,” Bronson said.

Copy of Press Release:

http://doacs.state.fl.us/press/2005/06172005.html

Speaker Appoints Select Committee to Review Eminent Domain

On June 24, Florida House Speaker Allan Bense announced that he was forming the Select Committee to Protect Private Property Rights. In his press release, he issued the following statement:

“Private property rights are a fundamental principle upon which our nation was founded, and government should only be allowed to deny a United States citizen those most basic rights under the most extraordinary circumstances. Ordinarily, we expect eminent domain to be asserted only in situations with a clear public necessity and clear public benefit. When it is used in a situation involving private companies, with an inherent profit motive, people should be extremely skeptical and in a situation such as the one in Connecticut their outrage is understandable. Fortunately, the court’s majority opinion did recognize that state legislatures could and should clearly set parameters for when the assertion of eminent domain was appropriate. Therefore, in an effort to make sure the private property rights of Florida citizens are protected, I am immediately appointing a select committee of the Florida House of Representatives, with Rep. Marco Rubio as its chairman, to review Florida’s Constitution as well as relevant statutes, rules and ordinances. Their task will be to identify any areas of ambiguity and recommend appropriate changes to make sure the unfortunate situation we’ve seen in Connecticut is not repeated in the state of Florida.”

The recent Kelo v. City of New London decision by the U.S. Supreme Court has raised eyebrows across the state as to how and when government uses its eminent domain powers. The decision considers economic development a legitimate public purpose under a government’s eminent domain powers. This could allow government to take land from a property owner and give it to a private developer to boost the tax base or create jobs. According to recent news reports, the Kelo decision is already being referenced by local governments to justify the sale of private property to benefit a private developer and the city’s tax base.

Subsequent to the formation of the select committee, Speaker Bense appointed the following members to serve on the committee:

Rep. Marco Rubio (R-Miami) Chairman

Rep. Dean Cannon (R-Winter Park)

Rep. Greg Evers (R-Milton)

Rep. Anitere Flores (R-Miami)

Rep. Ron Greenstein (D-Coconut Creek)

Rep. Denise Grimsley (R-Sebring)

Rep. Arthenia Joyner (D-Tampa)

Rep. Jeff Kottkamp (R-Cape Coral)

Rep. Dick Kravitz (R-Orange Park)

Rep. Ralph Poppell (R-Titusville)

Rep. Jack Seiler (D-Pompano Beach)

Rep. Dwight Stansel (D-Live Oak)

Rep. Trey Traviesa (R-Brandon)

The purpose of the select committee will be to review Florida’s Constitution, current laws, regulations and ordinances and to recommend changes ensuring government only asserts its eminent domain powers where the public necessity and public benefit are clear.

In addition, Rep. Everett Rice (R-Seminole) has filed House Joint Resolution 31 for the 2006 Legislative Session that would not allow private economic development to be a public purpose for which private property may be taken in eminent domain proceedings. This resolution, if passed by the Legislature, would be placed on the 2006 ballot.

Florida Public Policy and Regulation Practice Group

Martha W. Barnett • Partner

850 425 5620 • martha.barnett@hklaw.com

Lawrence N. Curtin •  Executive Partner, Tallahassee

850 425 5678 • larry.curtin@hklaw.com

James M. Ervin, Jr. • Partner

850 425 5649 • jim.ervin@hklaw.com

Patricia Greene • Public Affairs Advisor

850 425 5604 • patricia.greene@hklaw.com

Curt Kiser • Partner

850 425 5632 • curt.kiser@hklaw.com

Joy M. Ryan • Senior Attorney/Counsel

850 425 5672 • joy.ryan@hklaw.com

Lawrence E. Sellers • Partner

850 425 5670 • larry.sellers@hklaw.com

Lori K. Weems • Partner

305 789 7624 • lori.weems@hklaw.com

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