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