AIF Weekly Update From March 30, 2007
| Important Note: This “Weekly Brief” is a synopsis of the full report that is made available to AIF Members. The full report is much more comprehensive and detailed and covers additional issues important to the business community. If you are an AIF member and would like to view the full report, you can do so by going to the AIF “members only” website at fbnnet.com |
Legislators have gone back to their districts following a busy fourth week of session. The Senate will be out all week in observance of the Easter and Passover Holidays, while Speaker Marco Rubio (R-Miami) has required that his members return to Tallahassee for committee meetings on Wednesday, April 4th and Thursday, April 5th.
Legal Reform
On Tuesday, March 27th the Senate Judiciary Committee was slated to hear SB 1558 Relating to Comparative Fault by Senator Jeremy Ring (D-Margate) today. This terrible bill for the business community would do away with the Florida Supreme Court’s Fabre ruling, which allows juries to consider all entities in a lawsuit before apportioning fault. If SB 1558 were to become law, it would essentially undo the repeal of Joint and Several Liability and expose businesses to paying more than their fair share of fault in a lawsuit.
AIF and its lobbying team along with other business groups were successful in their lobbying efforts and the bill was temporarily passed (meaning that no vote would be taken and essentially delaying any action on the bill). Senator Ring just did not have enough votes to get his bill passed. AIF has been working on this bill since the beginning of session. It appears that those efforts were successful and that the bill would have failed if the committee had considered it.
| AIF opposes SB 1558 and its undoing of the “Fabre” decision. Fair distribution of fault cannot be achieved if a jury cannot consider the actions of all parties involved. We urge all AIF members to contact their legislators and let them know that this bill should not be heard and that there is no need to change existing law. |
Property Insurance Reform
On Wednesday, March 29th the House of Representatives debated HB 7057 Relating to Hurricane Damage Mitigation sponsored by Representative Trey Traviesa (R-Tampa). The PCB seeks to streamline and make improvements on the existing “My Safe Florida Home Program,” which was established during the 2006 legislative session. Specifically, HB 7057 creates a new no-interest loan program to be administered by the Department of Financial Services (DFS). The program will provide loans in the amount up to $5,000 for homeowners to use for mitigation. In addition, the PCB also increases the amount of funding for mitigation efforts for manufactured homes and streamlines the inspection process by allowing inspectors to take online continuing education courses.
On Thursday, March 29th the House of Representatives unanimously passed (113-0) HB 7057. It is now up to the Senate to decide how they want to proceed on this issue. It is likely that they will now come up with their own version of HB 7057; or it is possible that they might take the House language and substitute it for their own.
One of the surest ways to address the property insurance crisis in Florida is by hardening our state’s homes so that the effects of windstorm damage are lessened. Encouraging Floridians to protect their property and more importantly their lives by undertaking mitigation techniques such as installing roof clips, hurricane-proof garage doors, and storm shutters is sound public policy.
| AIF supports legislation aimed at strengthening, expanding, and fully funding Florida’s home hardening efforts. We are encouraged to see that many of AIF’s and its Florida Hurricane Crisis Coalition’s (FHCC) recommendations have found their way into this proposed council bill and we look forward to working with the Legislature on finding ways to encourage commercial mitigation as well. |
Property Tax Reform
On Wednesday, March 28th the House Government Efficiency & Accountability Council unanimously approved HB 261 Relating to Just Valuation by Representative Carlos Lopez-Cantera (R-Miami). HB 261 amends current law and removes the requirement that property appraisers consider the highest and best use to which a property can be expected to be put in the immediate future when arriving at just valuation. The bill adds a provision, which requires property appraisers to appraise income-producing properties based solely on the income produced from that property.
For the business community a change in the way property is assessed would provide much needed relief from high taxes. Redefining what constitutes “highest and best” use and appraising property based on the income it generates would significantly reduce the value of assessed property.
HB 261 will now be heard by the House Policy & Budget Council.
| AIF supports the concept of appraising property based on its “current” use and not its “highest and best” use. Furthermore, if a property generates income it should be assessed based on the amount of income it generates at the present time. |
Workforce Development
On Tuesday, March 27th the House Schools & Learning Council passed HB 1161 Relating to High School to Business Career Enhancement by Representative Kevin Ambler (R-Tampa). This bill creates the High School 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. HB 1161 will now be heard by the House Policy & Budget Council.
Also on Tuesday, the Senate Higher Education Committee unanimously passed a similar bill, SB 1222 Relating to Student Financial Assistance by Senator Jeremy Ring (D-Margate). The bill creates the Sure Futures Postgraduate Scholarship Program to match private sector businesses with students who are seeking advanced degrees and employment. A corporate sponsor would provide a scholarship for a student who would agree to work for the corporate partner for a minimum of 4 years after graduation.
SB 1222 will now be heard by the Senate Commerce Committee.
| AIF supports legislation that encourages schools boards to establish partnerships with the private sector aimed at making easier for our students to gain valuable on-the-job experience. Better-prepared students equal a better trained workforce; one that will be able to meet the demands of the global economy. |
Legal and Judicial
On Thursday, March 28th the House Safety & Security Council unanimously passed HB 1167 Relating to Business Courts by Representative David Simmons (R-Altamonte Springs). HB 1167 is one of AIF’s top priorities for the 2007 session because it establishes legislatively funded business court divisions in the Ninth, Eleventh and Thirteenth Judicial Circuits of Florida. These court divisions have already been established by administrative orders of the chief judge of each circuit. The business courts will be authorized to decide complex business cases on a judicially enforced docketing schedule.
Business courts specialize in handling complex business cases, such as antitrust suits, intellectual property cases, franchise cases and unfair competition cases. Their goal is to handle business litigation matters in an effective and efficient manner. Benefits of a business court include implementation of standardized procedures, a higher degree of consistency of rulings on recurring issues, and economic stimulus to the community.
This bill is important to the business community because it will provide more predictable and quicker resolution of complex business cases, ultimately lowering the cost of doing business in Florida.
During the meeting an amendment was adopted that stripped away any fiscal impact of the bill, leaving somewhat in doubt where funding for these pilot programs would come from.
HB 1167 will now be heard by the House Policy & Budget Council.
On the Senate side the issue of funding for Business Courts is looking more positive. The Senate Criminal & Civil Justice Appropriations Committee adopted an amendment to SB 7102, the Criminal & Civil Justice appropriations bill, by Senator Arthenia Joyner (D-Tampa), which provides $150,000 from non-recurring to circuit courts to establish specialized business courts in the 9th, 11th and 13th Circuits.
| AIF strongly encourages the Florida Legislature to adopt and fund the Ninth, Eleventh and Thirteenth Circuits’ business courts as a pilot program to begin establishing a uniform business court system throughout the metropolitan areas of the state. Florida employers will benefit greatly from these specialized courts. Their cases will settle quicker and costly litigation will be avoided. |
Health Care
Also on Tuesday, the House Healthcare Council passed HB 1121 by Representative Denise Grimsley (R-Sebring), which creates the Florida Health Information Network Corporation as a public/private partnership that will establish a secure, privacy-protected, and integrated statewide network for the communication of electronic health information. This not-for-profit corporation will be managed by an uncompensated board of directors that will consist of 15 members. In addition, the bill authorizes the Agency for Health Care Administration (AHCA) to implement the plan. There was one amendment adopted today that helps to set up the Network by appropriating a sum of $5,000,000. This bill is linked to HB 1123, also by Representative Grimsley. HB 1123 creates a public records exemption for certain information held by the Florida Health Information Network Corporation established in HB 1121.
HB 1121 and 1123 will now be heard by the House Policy & Budget Council.
AIF supports the creation of Health Information Network, which will increase efficiency and reduce the number of unnecessary treatments. The creation of a statewide network for the exchange of electronic medical records may result in substantial savings, therefore reducing the cost of health insurance for employers and their employees. |
The Committee also approved HB 1401 Relating to Health Care Access/Health Flex Plan/Small Business by Representative Jimmy Patronis (R-Panama City) on Tuesday, March 27th. HB 1401, one of the Speaker’s 100 Ideas for Florida, the bill expands health flex plan eligibility from 200 to 250 percent of the federal poverty level (the current federal poverty level is $20,650). The bill also permits health flex plans to access the employee group market, in certain circumstances. An amendment was adopted during the Committee meeting that provides for an appropriation of $250,000 in non-recurring general revenue to the Agency for Workforce Innovation (AWI) to award Small business Health Insurance Plan Grants to eligible businesses.
HB 1401 will now be heard by the House Policy & Budget Council. There is currently no Senate companion for HB 1401. Representative Patronis hopes to find a Senate sponsor shortly.
Also on Tuesday, the Senate Health Policy Committee approved two bills by Senator Don Gaetz (R-Niceville) - SB 1646 Relating to Corporate Income Tax Credits and SB 1654 Relating to Health Care Clinic Indigent Care Trust Fund. SB 1646 provides an income tax credit for corporate taxpayers who make contributions to provide relief to qualifying health care clinics that provide a disproportionate share of medical care for indigent persons. The bill specifies that contributions may be submitted at any time to the Department of Revenue (DOR) for deposit into the Health Care Clinic Indigent Care Trust Fund, which is created in Senate Bill 1654. DOR will account for all contributions made to the trust fund and will monitor the disbursements made to qualifying health care clinics.
Senate bills 1646 and 1654 will now be heard by the Senate Finance & Tax Committee.
| AIF supports the market-based solutions to the problem of Florida’s uninsured found in HB 1401 and SB 1646. According to a study by the Agency for Healthcare Administration (AHCA), approximately 19% of all Floridians do not have health insurance. These individuals typically rely on emergency rooms for their primary care. Unfortunately, this kind of care is the most expensive option. Expanding access to health flex plans and encouraging businesses to help fund indigent care clinics is sound public policy. |
Energy
On Thursday, March 29th the Senate Environmental Preservation & Conservation Committee passed SJR 436 Relating to Oil or Natural Gas Drilling by Senator Mike Bennett (R-Bradenton). This Senate resolution proposes an amendment to Florida’s Constitution that prohibits drilling for oil or natural gas within sovereignty submerged lands of the state and within 250 miles from Florida’s coastline. Furthermore, the bill directs the Legislature to enact legislation to enforce the provision.
Representatives from AIF and other business associations as well as the oil and natural gas industry testified against SJR 436. Banning drilling in the eastern Gulf of Mexico would send the wrong message. Most of Florida’s most important economic sectors such as agriculture and manufacturing depend on affordable sources of energy. Fossil fuels like natural gas play an integral role in almost every aspect of life including energy production. The skyrocketing prices of natural gas will force businesses to cut jobs, freeze growth and raise consumer prices. While we must work hard to protect Florida’s pristine environment, we must also compete fiercely in a global economy. To do that, Florida’s businesses must have a reliable and affordable energy supply.
SJR 436 will now be heard by the Senate Judiciary Committee.
| AIF opposes any limitations on drilling in the outer continental shelf (OCS) of the Gulf of Mexico. Florida and our nation as a whole should concentrate on achieving energy interdependence so that our businesses have access to affordable and reliable sources of energy. |
Guns in the Workplace
The Senate Criminal Justice Committee passed SB 2356 Relating to Individual Personal Property Protection by Senator Durell Peaden (R-Crestview) by a 7-1 vote on Tuesday, March 27th. SB 2356 is better known as the “Guns in the Workplace” bill; a similar bill never made it to the floor last year. This year’s version of the bill is even broader than last year’s since it prevents employers and business owners from keeping visitors and workers from "possessing any personal private property that is a legal product when such product is lawfully possessed and locked inside or locked to a private motor vehicle in a parking lot." It would also bar employers and business owners from searching any of their employees’ vehicles.
The issue at hand is whether the constitutional right of property owners to control what comes onto their grounds is more important than the constitutional right to bear arms. The bill was amended today to exempt businesses that are defense contractors or are involved in domestic security from the bill’s provision.
Representatives from many of the business groups, including AIF, testified in opposition to the bill citing among other reasons: their responsibility to keep all of their employees and customers safe. Similar legislation has already been found unconstitutional in Oklahoma and several states have pending litigation on this issue.
SB 2356 will now by heard by the Senate Judiciary Committee.
| AIF opposes legislation that prohibits businesses from enforcing or maintaining policies that ban guns in the workplace. Employers should be allowed to establish these types of policies and exert their rights as property owners. Maintaining a safe work environment is paramount for the longevity of any employer in Florida. |
Taxation
On Tuesday, March 27th the House Postsecondary Education Committee unanimously approved HB 215 by Representative Marti Coley (R-Mariana), which gives a sales tax holiday on school supplies and clothing. The bill was amended to reduce the price from $100 to $50 for those items eligible for the sales tax exemption. It also changed the date for the sales tax holiday from July 21, 2007 to July 30, 2007 to August 4, 2007 until August 13, 2007. The reason for the reduction in the price of the items eligible for the sales tax exemption is due to a tight budget year.
HB 215 will now be heard by House Policy & Budget Council.
On Thursday, March 29th the House unanimously passed (114-0) HB 211 Relating to Hurricane Preparedness/Sales Tax by Representative Peter Nehr (R-Tarpon Tower). 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.
AIF supported the original hurricane preparedness legislation that passed last year and we continue our support for this sales tax holiday. Having our employees and our businesses better prepared for a hurricane is beneficial in so many ways. Employees can return to work quicker and businesses can open their doors sooner when everyone is prepared.
HB 211’s Senate companion, SB 92 by Senator Carey Baker (R-Eustis) has been placed on the Senate calendar.
| AIF supports increasing business activity by allowing Floridians to purchase essential school and hurricane supplies without having to pay sales tax. |
Insurance
On Tuesday, March 27th the Senate Banking and Insurance Committee passed SB 1880 Relating to Motor Vehicle Insurance by Senator Bill Posey (R-Rockledge). This bill deals with no-fault auto insurance, also known as Florida’s Personal Injury Protection (PIP) law. In 2003, the Florida legislature voted to repeal this long-standing doctrine. The repeal would take place October 1, 2007 unless law is reenacted by the Legislature.
SB 1880 reenacts Florida’s No-Fault Law, but only extends the sunset date to January 1, 2009. In addition, the bill limits the amounts of money paid to health care providers by setting up a medical fee schedule based on specific Medicare percentages. Many states with No-Fault laws, such as New York, have implemented similar fee schedules in order to contain the cost of medical treatment.
One aspect of the bill that most members of the business community can agree is good public policy is the provision that establishes a medical fee schedule. The establishment of a medical fee schedule should go a long way in reducing the amount of fraudulent PIP claims by reducing the financial incentive to bill insurers for medical treatments that are not necessary. Fee schedules should also result in lower PIP premiums for consumers because of the predictability they represent for health insurance plans and for car insurance companies.
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