AIF Weekly Update From March 23, 2007

The 2007 session is quickly approaching its midpoint.  The third week of session is officially in the books and some committees are quickly running out of dates to hold meetings.  As we get closer to the last weeks of session, the emphasis will be placed on the various councils in both the Senate and House.  This week, the House passed two of AIF’s top priorities for this year’s session – the reduction of the Communications Services Tax and legislation creating a statewide cable TV franchise process.

Next week promises to be interesting as well.  We expect the Senate Judiciary Committee to take up SB 1558 by Senator Jeremy Ring (D-Margate).  Defeating this bad bill is the business communities’ number one priority since it undermines last year’s repeal of the doctrine of Joint & Several liability. 

Property Tax Reform

On Friday, March 23rd the House Policy & Budget Council passed proposed council bill (PCB) PBC1.  The bill is a proposed constitutional amendment that exempts homestead property from state mandated property tax levies for school districts and offsets that revenue with a 1 cent sales tax.  The constitutional amendment would also allow counties to exempt homestead properties from property taxes levied within the county and offset that revenue with a 1 cent sales tax.  Approval of this proposal would be by citizen referendum.  It also allows school boards to exempt homestead property from all remaining property taxes for schools and offset that revenue with a .5 cent sales tax.  In addition, the constitutional amendment would limit millage rates to 2003-2004 levels plus inflation.  Last but not least the amendment would exempt from property tax the first $25,000 of tangible personal property value for businesses and grants the legislature authority to provide property tax relief for renters.

Workforce Development

On Tuesday, March 20th the House 21st Century Competitiveness Committee unanimously approved HB 1161 by Representative Kevin Ambler (R-Tampa) Relating to the High School to Business Career Enhancement Program.  The program is established to offer high school students in each school district the opportunity to participate in an internship program with a local business that has partnered with the district to offer such opportunity. As an incentive to participate in this program, the businesses that partner with a school district to provide paid internships will receive a credit for fifty percent of the total wages paid to each student during the internship.  Students are not authorized to work more than twenty hours a week and businesses may claim up to four internships each year.  
HB 1161 will now be heard by the House Schools & Learning Council.

On Thursday, March 22nd the Senate passed SB 1232 Relating to Career & Professional Education by Senator Don Gaetz (R-Niceville). This bill is a comprehensive approach to revising career education within career and professional academies in our public schools.  Among other provisions the bill:

The final floor vote was 33-4.  SB 1232 will now be sent to the House for consideration.

Taxation

On Thursday, March 22nd the House of Representatives unanimously (112-0) passed HB 567 Relating to the Communications Services Tax by Representative Ron Reagan (R-Sarasota).  The bill lowers the Communications Service Tax (CST) by .25%, effective January 1, 2008, which is about a $40 million tax cut for the citizens of Florida. 
HB 567 will now be sent to the Senate for consideration.  We expect its Senate companion, SB 980 by Senator Mike Haridopolos (R-Melbourne), to be heard in committee next week.

Also approved was SB 92 Relating to Hurricane Preparedness/Sales Tax by Senator Carey Baker (R-Eustis).  This is the third year in a row that the Legislature has sought to pass a sales tax holiday for hurricane supplies.  The bill establishes a sales tax holiday starting on June 1, 2007 on items such as weather band radios, coolers, flashlights, tie-down kits, batteries, portable generators, etc.  The sales tax holiday would be in affect for twelve days.  Senator Baker described his bill as “good government policy disguised as a tax break.” 

The Senate Finance & Tax Committee also approved SB 1456 Relating to Sales Tax/School Supplies & Clothing by Senator Dan Webster (R-Winter Garden).  SB 1456 provides that no sales tax will be collected on sales of books, clothing, wallets, or certain bags having a selling price of $100 or less during the period from July 21 through July 30, 2007.  The bill also exempts school supplies costing $10 or less from sales tax during the same period.
The bill was amended to push back the sales tax holiday’s start date to August 4, 2007 in order to accommodate for the new school start date that was established last year.

Health Care

With little debate, the House Health Innovation Committee passed HB 1401 Relating to Health Flex Plan/Small Businesses by Representative Jimmy Patronis (R-Panama City) on Tuesday, March 20th.  The bill expands the health flex plan eligibility from 200 to 250 percent of the federal poverty level.  It also permits employers with low income employees to have access to health flex plans and creates a small business health insurance grant program to be administered by the Agency for Workforce Innovation.

The Committee also approved two bills by Representative Denise Grimsley (R-Sebring) that provide funding assistance for indigent care clinics. HB 201 would create a Health Care Clinic Indigent Care Trust Fund where corporate taxpayers can make disbursements to qualified clinics that provide health care to indigent persons.  HB 203 would provide an income tax credit for corporate tax payers who contribute to this trust fund.  The intent of the bill is to encourage corporate taxpayers to make monetary contributions to provide relief to health care clinics who provide a disproportionate share of medical care for indigent persons.  Representatives from the business community, health care providers, and the unions spoke in favor of the bills.

Energy

On Wednesday, March 21st the House Energy Committee held a workshop on HJR 631 Relating to Oil or Natural Gas Drilling by Representative Mary Brandenburg (D-Lake Worth).  HJR 631 is a joint resolution that would place into Florida’s constitution an outright ban on offshore drilling within 250 miles of Florida’s coastline or to the fullest extent allowed by the laws of the United States.  This legislation proposes an amendment to the Florida Constitution on the next general or special election ballot. Further, because it is a joint resolution the Florida Constitution requires that this resolution be “agreed to by three-fifths of the membership of each house of the legislature” before taking effect.

Information Technology

On Tuesday, March 20th The House Education K-12 Committee passed draft language to recommend as a proposed council bill (no bill number available as of this printing) related to education.  Representative Anitere Flores (R-Miami) presented the proposed language, which updates education standards for K-12 education.  The bill also contains three provisions that support 21st century learning by infusing technology into teaching and learning. 
Specifically, the bill would create a "world class education standards" advisory council, which would among other duties, recommend ways to integrate technology into K-12 education.  The bill would also allow 10% of instructional material categorical funds to be used to purchase digital content and hardware to support learning world languages, and would prioritize professional development funding to programs with measurable outcomes and delivered through the use of technology.  The proposed bill will be sent to the House Schools and Learning Council for consideration.

Workers’ Compensation

On Tuesday, March 20th the Senate Banking and Insurance Committee approved SB 746 by Senator JD Alexander (R-Lake Wales) Relating to Workers’ Compensation for First Responders.  This bill would create a unique benefits delivery system for firefighters, police officers and other specified emergency personnel.  These benefits would be higher than what other workers’ in any other field would receive. However, the increased costs to the cities and counties would likely be passed onto Florida’s employers. 

The biggest problem with SB 746 is that its supporters are stating that the bill reinstates benefits that were taken away from workers’ as a result of the 2003 workers’ compensation reforms. In reality, though, most of the benefits provided in this bill were not the subject of the 2003 reforms and would actually provide greater benefits than what was available prior to the 2003 law. Because of the possible increased costs to businesses that this bill could create, AIF opposes this bill in its current form.  We will continue to follow this issue and keep our members aware of its progress throughout the session.

Privacy Issues

On Wednesday, March 21st the House Homeland Security & Public Safety Committee unanimously passed HB 1117 Relating to Personal Identification Information by Representative John Legg (R-Port Richey).  As originally filed, the bill amends current law dealing with identity theft by enhancing the penalties for those individuals who willfully and without authorization fraudulently use personal identification information concerning an individual who is 65 years of age or older. In addition, the bill provides that any person who willfully possesses “sensitive personal information” concerning an individual without first obtaining that individual’s consent commits a third degree felony. The term “sensitive personal information” is defined to mean any name or number that may be used, alone or in conjunction with any other information, to identify a specific individual including bank account numbers, credit or debit card numbers, etc.

AIF was able to successfully amend the bill after educating the bill’s sponsor about the negative impact his bill would have on the business community. The amendment, which was adopted, removed a provision that made mere possession of certain personal information without permission a third degree felony.

Originally, the bill would have prohibited businesses from obtaining personal information via public record, data aggregator, or any other methods without the express consent of the consumer.  HB 1117 will now by considered by the House Safety & Security Council.

Ethics & Elections

On Wednesday, March 21st the House of Representatives approved HB 537 Relating to Presidential Primary Date by Representative David Rivera (R-Miami) on a 115-1 vote.  HB 537 changes the date of Florida’s presidential preference primary election from the second Tuesday in March to the first Tuesday in February, or the first Tuesday immediately following the New Hampshire presidential preference primary, whichever occurs first, but no sooner than the second Tuesday in January of the year in which the election is held.  The bill was amended on the Floor to allow cities and other municipal entities the option of changing their primary election dates to coincide with the new statewide presidential primary date.
HB 537 will now be sent to the Senate for consideration.

Jessica Lunsford Act

On Wednesday, March 21st the Senate Education Pre-K – 12 Committee unanimously passed SB 988 Relating to High Risk Offenders by Senator Nancy Argenziano (R-Crystal River). As a result of difficulties in the application of the original bill for service providers on school grounds, Senator Argenziano has been working with AIF and other interested parties to specifically define the applicable offenses that would prevent a contractor from entering school grounds.  Previously, the Jessica Lunsford Act allowed school boards to interpret what was considered an applicable offense by using the term ”moral turpitude".  This was problematic for employers and contractors because each school board applied the term differently.
Additionally, the bill creates an exception for those workers who would normally not have contact with students - and therefore not be required to undergo fingerprinting and background checks. SB 988 also allows non-instructional contractors to avoid fingerprinting and background checks if their work site is separated by a 6ft chain link fence.
SB 988 will now be considered by Senate Governmental Operations Committee.