2013 Legislative Session: What Passed/Failed

this Session?

FL Association of City ClerksJune 11, 2013

2013 Session

• 1,592 General bills filed in House and Senate combined

• 66 Local bills

• 286 passed—most still awaiting action by Governor

FLC Priorities

• Local Police/Firefighter Pension Reform

• Economic Development• Communications Services Tax• Local Business Tax• Water

FLC Priorities

• Housing• Energy• Sober Homes• Transportation Funding• Billboards• Synthetic Drugs

What Passed?

Local Govt Pension CS/CS/CS/SB 534 (Brandes)

• Creates reporting standards for publicly funded defined benefit retirement plans

• State is not responsible for shortfalls in local gov’t retirement systems/plans

Local Govt. Pension • Requires each defined benefit plan to

submit report to FL DMS. • Report must include financial

statements using: – plan’s assumed rate of return and– rate of return 200 basis points lower than

assumed rate of return

• Implementation was extended to June 30, 2014

State Pension SB 1810 (Senate Govt. Oversight & Accountability

Committee)

• Sets the employer-paid contribution rates for the Florida Retirement System (FRS) and the Retiree Health Insurance Subsidy (HIS) program, effective July 1, 2013.

• The employer-paid contribution for the HIS program is increased from 1.11% of the employer’s payroll to 1.20% of the employer’s payroll. These funds will be deposited into the Retiree HIS Trust Fund to pay benefits to participating retirees.

State Pension Reform(cont.)

• Employer-paid contribution rates to pay the normal costs and amortization of the unfunded actuarial liability of the FRS are increased. (Rates are based on the rates recommended in the “Blended Rate Study” associated with the 2012 Actuarial Valuation of the FRS.)

• The bill contains legislative findings that a proper and legitimate state purpose is served when public retirement systems, including health insurance subsidies, are administered and funded in a reasonable manner.

• These provisions take effect July 1, 2013

FRS Contribution Rates (SB 1810): Modifies employer contribution rates. Employer normal contribution rates for each membership class of FRS (Defined Benefit and Defined Investment) are amended as follows:

Class New Normal Rate Old Normal Rate

Regular 3.53% 3.55%

Special Risk 11% 11.01%

Special Risk Administrative Support

4.17% 3.94%

Elected Officers (legislators) 6.52% 6.51%

Elected Officers (judges) 10.05% 10.02%

Elected Officers (county officers) 8.44% 8.36%

Senior Management 4.81% 4.84%

DROP 4.63 4.33%

SFY 2014 FRS Rates

SFY 2014 FRS Rates

Class New 2013 UAL Rate Old 2013 UAL Rate 2012 UAL Rate

Regular 2.19% 2.02% 0.49%

Special Risk 6.83% 7.03% 2.75%

Special Risk Administrative Support

30.56% 27.04% 0.83%

Elected Officers (legislators)

24.85% 27.18% 0.88%

Elected Officers (judges) 17.00% 16.38% 0.77%

Elected Officers (county officers)

23.36% 23.01% 0.73%

Senior Management 12.27% 11.25% 0.32%

DROP 7.01% 6.21% 0.00%

To address unfunded actuarial liabilities (UAL) of the system, the bill amends the current 2013 employer contribution rates for each membership class of FRS as follows:

Mortgage Settlement SB 1852 (Sen. Appropriations)

• Allocates $200 million from the national foreclosure settlement, in which the state was a party to a national lawsuit against five of the nation’s largest banks who committed foreclosure abuses.

• Of specific interests to local governments:– $60 million is appropriated for the Florida Housing Finance

Corp. to use in the State Apartment Incentive Loan (SAIL) program

– $40 million is appropriated for FHFC to use in the State Housing Initiative Program (SHIP)

Mortgage Foreclosures CS/CS/HB 87 (Passidomo)

• Expedites foreclosure process• Applies to existing mortgages/pending

cases only• Reduces statue of limitations for

judgments on foreclosure action from 5 yrs to 1 year

• Allows lien holder (not just mortgagee) to use foreclosure procedures

• Reduces # of hearings from 2 to 1

Affordable Housing Tax Exemption CS/CS/HB 437 (Davis)

• Deletes ad valorem tax exemption for property owned by certain FL-based partnerships and used for affordable housing for certain income-qualified individuals (applies to 2013 tax rolls)

• Clarifies process for FL Housing Finance Corp. to allocate low-income housing tax credits & other federal and state resources

Synthetic DrugsCS/SB 294 (Bradley)

• Expands Schedule I of controlled substances register to include 22 new formulas of synthetic drugs

Red Light Cameras (RLC) CS/CS/HB 7125 (Rayburn)

• Dept of Highway Safety bill• Allows drivers to challenge RLC tickets

through municipal hearing officer appointed by city

• Cities can charge up to $250/violation to cover hearing costs

• Prohibits cities from issuing right-on-red infractions if violator stopped after stop bar

Internet Cafes HB 155 (Trujillo)

• Prohibits use of electronic machines used in Internet Cafes

Texting While Driving CS/CS/CS/52 (Detert)

• Prohibits operation of motor vehicle while using wireless communication device (text, e-mail, instant message)

• Texting enforcement would be secondary offense to other driving infraction

• Does not apply to emergency personnel/situations

• Limitations on access to user’s billing records

Alarm System Contractors CS/CS/CS/HB 973 (Brodeur)

• Preempts local ordinances relating to low voltage alarm system installations

• Creates uniform notice of installation process

• Does not apply to installation/replacement of fire alarms

Alarm System Contractors

• Requires local govt offer contractors bulk permit labels for no more than $55/label

• Local govts charging more than $55 can charge up to $175 until January 2015

• Contractor does not need to inform local enforcement agency before working on alarm system

Public Testimony CS/CS/SB 50 (Negron)

• Requires local govt. to provide public an opportunity to be heard before board/commission

• Allows local govt to adopt policies to ensure orderly conduct at meetings

• Exemption for certain emergency situations

Public Testimony

• Also provides exemption when board or commission is acting in quasi-judicial capacity

• Includes provision for attorney’s fees• Provides that a violation of

opportunity to speak does NOT void any action taken by board/commission

Government Liens CS/HB 267 (Wood)

• Requires that gov’t liens on real property for an improvement, service, fine or penalty must be recorded in official records of the county for lien to be valid against creditors

• Exempts liens for taxes, non-ad valorem, special assessments or utilities

Employment Benefits CS/HB 655 (Precourt)

• Prohibits local gov’t from requiring or regulating employment benefits (health, sick leave, vacation time)

• Preempts regulation of these benefits to the state

Employment Benefits

• Local govt is NOT prohibited from establishing benefits for:– Its employees– Employees of contractor providing

goods/services under the contract– Employees of employer receiving tax

abatement or subsidy from govt.

• Creates 11 member task force to review impact of state preemption

Economic DevelopmentCS/CS/HB 7007 (Trujillo)

• Originally gave DEO rulemaking authority over Small City CDBG, but language was removed from bill

• Increases transparency/accountability of business participating in DEO programs

• Expands enterprise zone boundaries in rural areas of economic concern

• Requires DEP rehabilitation agreement for Brownfield sales tax exemptions;

Economic Development

• Creates Triumph Gulf Coast Board to manage any monies disbursed as a result of BP litigation

• Eliminates sales tax paid by manufacturers for certain equipment purchases for 3 years

• Revises the Florida Small Business Development Center Network that will provide various services to assist small businesses

Economic Development CS/SB 406 (Gardiner)

• Requires DEO to analyze each economic development incentive program.

• Sales tax exemption for natural gas used to generate electricity in stationary equipment;

• Sales tax exemption for building materials used in redevelopment projects, including brownfields

Economic Development

• Revises criteria for brownfield redevelopment bonus refund

• Makes changes to process for spring training franchises that receive state funding

Growth ManagementCS/CS/CS/HB 319 (Ray)

• Revises transportation concurrency requirements of local governments that have adopted alternative mobility funding systems.

• Provides that an alternative mobility funding system may not be used to deny approvals if the developer agrees to pay for the development’s identified transportation impacts using the funding mechanism implemented by the local government.

• Requires a mobility-fee-based funding system to comply with the dual rational nexus test applicable to impact fees.

Growth ManagementCS/CS/HB 537 (Moraitis)

• Clarifies that initiatives and referenda are prohibited in regard to any development order, and that initiatives and referenda be prohibited as to any local comprehensive plan or map amendment, except as specifically and narrowly permitted in the bill and that affect more than five parcels of land.

• As for comp plan amendments, the authority for such must be expressly authorized by specific language in a local government charter that was lawful and in effect on June 1, 2011; a general local government charter provision for an initiative or referendum process is not sufficient.

AgricultureCS/CS/SB 1106(Hays)

• Preempts local governments from adopting any ordinance, regulation, rule or policy that restricts or otherwise limits “agritourism” activity on land classified as agricultural.

• Eases liability restrictions for agritourism operators.

• Agritourism activities do not apply to the construction of buildings or facilities that would primarily be used by members of the public.

Alternative Water Supplies CS/SB 364 (Hays)

• Provides that Consumptive Use Permits for alternative water supplies can be issued for 30 years under certain conditions

Water – NNC CS/SB 1808 (Sen. Environmental

Preservation and Conservation

• Codifies agreement between DEP and EPA regarding FL implementation on DEP Numeric Nutrient Criteria

• Clarifies that DEP is entitled to adopt criteria for streams, lakes & estuaries

Water Quality Credit Trading CS/CS/HB 713 (Pigman)

• Allows DEP to authorize voluntary water quality trading credit program in adopted basin mgmt action plans

• Participants must notify DEP of price for credits, how price was determined and any state funding rec’d for facilities/activities that generated credits

Stormwater

• CS/SB 934 (Lee) authorizes cities and counties to adopt stormwater adaptive mgmt plans for urban redevelopment projects (CRA, urban infill area)

• Plan would address quantity/quality of stormwater discharges for area

• DEP will include permit for city/county stormwater plans in its statewide environmental resource permit

Water Mgmt Districts (WMD) SB 244 (Dean)

• Directs WMDs to adopt priority list of water bodies that have potential to be affected by withdrawals in adjacent WMD

• WMD report to DEP will include schedule for MFLs for surface water, aquifers within WMD

Environmental Regulation CS/CS/CS/HB 999 (Patronis)

• Regulatory streamlining• Municipal Review of Development Permits

(limited to 3 requests for additional information)

• Conditions for local govts providing recovered materials collection

• Removed from Bill:– Clarification on stormwater fees– Creation of Fertilizer Commission

EnergyCS/CS/HB 579 (Ray)

• Relates to the use of natural gas as a motor fuel

• Repeals annual decal fee program for vehicles powered by alt. fuels (effective Jan. 1, 2014)

• Establishes fuel tax structure for natural gas beginning Jan. 1, 2019 (exempting from fuel tax for 5 yrs)

EnergyCS/CS/HB 579 (Ray)

• Also exempts natural gas fuel from sales and use taxes

• Expands “energy efficient improvement” to include natural gas fuel installation under uses authorized under Loc. Govt. Infrastructure Surtax

BiodieselCS/HB 633 (Perry)

• Exempts local governments that manufacture biodiesel for internal use from reporting, bonding and licensing requirements prescribed for wholesalers in Ch. 206, F.S.

Nuclear Cost Recovery CS/CS/SB 1472 (Legg)

• Addresses investor-owned utilities’ ability to recoup expenses through Nuclear Cost Recovery

• Establishes process for PSC to review/approve development of new power plant attempting to collect cost recovery from customers

Public Private Partnerships HB 85 (Steube)

• Preempts local government authority to craft project specific Public-Private Partnership (P3) agreements.

• Provides framework for local govt to follow when entering agreements

• Provides procurement procedures• Requirements for project approval, qualifications

& process, notice to local jurisdictions, agreements between public/private entities, etc.

• Does not apply to certain hospital/healthcare systems or municipal electric utilities

• Creates process for reviewing proposals

Public Private Partnerships• P3 projects do not waive sovereign

immunity of public entity• Creates P3 Task Force to review and

develop recommendations• Provides process for counties to enter P3

agreements to construct/ extend/improve county roads

• Provision for lease agreements for Orlando-Orange Co. Expressway Authority

Ethics SB 2 (Latvala and others)

• Makes several changes to ethics laws for state and local govt officials

• Priority of Senate President Gaetz• For cities:Finance directors must file financial

disclosure forms

Ethics

• More authority for FL Commission on Ethics (COE) to collect fines (includes wage garnishment)

• Grace period to amend financial forms• Prohibits gifts over $100 from vendor doing

business with an agency• Allows officials to place assets in blind trust• Extends prohibition on disclosure of

complaints against candidate prior to election from 5 to 30 days

Ethics

• Expands criteria for COE to initiate investigations (referral from specified govt officials)

• Prohibits candidates/elected officials from accepting public employment if he/she knows position is being offered to gain influence or advantage based on office/candidacy

ElectionsCS/HB 7013 (Boyd)

• For cities that have ordinance/charter that adopt FL Election Code for city elections:

Primary election 10 weeks before General (was 12)

Early voting begins 10 days prior to election and ends 3 days prior to election

Supervisor of Elections can extend from 15th-11th day before and end 2nd day prior to election

Elections

• Early voting sites required to be open 8hrs min. and 12 hrs max. per day

• Expands list of early voting sites• Supervisor of Elections may

designate one early voting site in area that does not have eligible early voting location

Campaign Finance CS/CS/CS/SB 569 (Schenck)

• Revises campaign finance laws• For cities that have ordinance/charter that

adopt FL Election Code for city elections:– Candidate contribution limit increased to

$1000, per person/per election– Candidates required to file 15 campaign

finance reports (currently 9)

What Did Not Pass?

Local Government Pensions CS/CS/SB 458 (Ring) CS/HB 1399 (Rooney)

• Not Pension Reform—did not allow cities to negotiate benefit levels below 1999

• Repealed “Naples Letter” language and thus sunset existing agreements relying on Naples letter

Sovereign Immunity HB 7123 (Grant)

• Current law: $200,000 for individual actions; $300,000 for all actions arising out of same incident

• Would have increased the waiver of sovereign immunity for political subdivisions (cities, counties, schools) to $1 million and $1.5 million, respectively

Communications Services Tax

• House Finance and Taxation committee considered concepts to broaden the tax base replace the local CST with state CST.

• No legislation was filed with these specific concepts.

Communications Services Tax HB 303 (Grant)/SB 1422 (Richter)

• Would have repealed local CST and revised state CST rate to be 10.65%

• Would give 45% of the state CST to the local governments.

• Would have required local gov’t. to reduce ad valorem rate to offset increased CST revenues.

Local Business Tax HB 7109 (House F&T Committee)

• Would have created three LBT classifications based upon sq. footage of the business.

• Established parameters for rate structure and required the city to adopt the rate structure by a 2/3 vote.

Sober Homes CS/SB 738 (Clemens)/ HB 1089 (Grant)

• Would have defined sober home• Required adherence to city/county

zoning and occupancy standards• Allowed local gov’ts to adopt

ordinances to govern facilities• DCF is doing a study this summer

Municipal Utilities HB 733 (Mayfield)

• Would have subjected municipal utilities that provide electricity, gas, water, or wastewater services outside of incorporated limits to PSC regulation

• Required county approval for municipalities to offer utility services outside of incorporated limits

Local Preference SB 684 (Hays) and CS/HB 307 (Tobia)

• Would have preempted local preference ordinances for personal property and construction services if state funds are used

• Would have mandated preference for FL businesses if state funds are used

Neighborhood Improvement Districts (NIDs)

CS/CS/SB 770 (Ring) and HB 741 (S. Jones)

• Would have allowed NIDs created by ordinance to exercise certain powers, including ability to issue bonds

Neighborhood Improvement DistrictsCS/CS/SB 561 (Simmons) and HB 679

(Nelson)

• Would have authorized NIDs to be created by ordinance rather than planning ordinance and provided bonding authority

Concurrency/Impact Fees HB 321 (La Rosa)

• Would have prohibited proportionate-share contributions for new development before July 1, 2016, unless authorized by majority vote of local governing body.

• Would have only applied to commercial development less than 6,000 square feet

Development ExactionsSB 772 (Brandes)/HB 673 (Perry)

• Would have prohibited local govts from imposing or requiring certain exactions on or against private property.

• Would have eliminated dual rational nexus test and created a stricter “essential nexus” standard.

Stormwater FeesHB 1231 (Moskowitz)/SB 1712

(Altman)

• Would have allowed local govts to place liens on property for delinquent stormwater fees

Pain Mgmt Clinics CS/CS/SB 1192 (Grimsley)

• Would have preempted licensure, activity, and operation of clinic to the state

• Would have allowed local gov’ts to regulate clinics through land use and zoning, but clinics would be allowed under land use categories that permit hospitals, clinics or other health care facilities

Transportation CS/CS/HB 7127 (House Transportation

Committee)

• Would have required DOT to study parking meter revenues on state roads

• Prohibited public transit providers from using federal block grant funds for advocacy

• Allowed cities to regulate public information systems on WMD lands

Transportation(cont.)

• Authorized DOT to pay cities in rural areas of critical economic concern for utility relocation costs, under certain conditions

• Allowed DOT to grant permits to high-speed rail providers for communications equipment, with comments from municipality (also passed in HB 7019)

BillboardsCS/CS/CS/SB 1632 (Latvala) CS/CS/CS/HB 1299 (Goodson)

• Would have revised outdoor advertising statute, mostly affecting FDOT

• Removed requirement for local gov’t regarding noise walls

• SB 1632 allowed local gov’t and FDOT authority to regulate public information systems on WMD lands

Wage Theft CS/SB 1216 (Bradley) and CS/CS/CS/HB 1125

(Goodson)

• Would have preempted local regulation of wage theft issues

• Provided new civil claim for wage theft to be brought in county court

• Allowed local gov’t to establish program to help employee recover unpaid wages

Thank You

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