A Fair Portion of Lunacy - Associated Industries of...

EMPLOYER Winter 2006 • Vol. 6, No. 1

What’s Inside

Common SenseOn the Job

by Barney T. Bishop III

The ForgottenResource

by Jacquelyn Horkan

Identity Theft andConsumer Privacy

by Nick Iarossi

A New Day Dawning? by Mary Ann Stiles &

Tamela Perdue

2006 AIF Lobby Team

A Burst of Energyby Jacquelyn Horkan

Heading for aMarket Meltdown

by Gerald Wester

Lawmakers Askedto Cut Taxes,

Boost Economyby Keyna Cory

Lawmakers TackleEminent Domain &

Redevelopmentby Rayford Taylor

Issue Roundup

A publication of ssociated Industries of Florida Service Corporation

A Fair Portion of LunacyBy Jacquelyn Horkan

In politics these days any proposal de- scribed as “fair” is probably going to cost you money.

Such is the case with the so-called FairShare Health Care Act. Passage of this billhas become a priority for organized labor in30 or so states, including Florida.

Fair Share legislative proposals range indetails but they generally require companiesof a certain size to choose between spendingat least eight to 11 percent of their payroll onhealth insurance for employees or paying ahealth-care “tax” to the state that would beused to finance care for the uninsured.

As an end-run effort to enact a universalhealth care mandate, the bill is bound to fail.

As an illustration of the strategy of usingpoliticians to carry out economic vendettas,the bill is a classic example.

Fair Share is the brainchild of the ServiceEmployees International Union, which hasfor years been trying to unionize workers atWal-Mart. Unsuccessful through traditionalmeans of organizing a workforce, the unionturned to a new tactic: it asked lawmakers inthe state of Maryland to intervene.

Last year, at the behest of the union and itssupporters, Maryland’s overwhelminglyDemocratic Legislature imposed a payrollsurcharge on every private business in thestate with more than 10,000 workers thatspent less than eight percent of payroll onhealth-insurance premiums.

A mere four or five employers metthe 10,000-employee minimum but onlyone missed the eight-percent spending

minimum: Wal-Mart.Although Maryland’s Republican governor

wisely vetoed the legislation, the state’sLegislature subsequently overrode the veto,reaping a tempest of criticism.

The Washington Post — hardly a bastion ofpro-business sentiment — called the bill “alegislative mugging masquerading as an actof benevolent social engineering.”

Emboldened by its success in Maryland,backers of Fair Share have cast a wider net,hoping to convince more states to entrap alarger pool of businesses. Florida’s version ofFair Share, filed by Rep. Susan Bucher (D-West Palm Beach) and Sen Skip Campbell (D-Tamarac) sets the formula at 10,000 employ-ees and nine percent of payroll.

Fair Share will not, however, dramaticallyincrease the number of insured Floridians. Infact, the only statistic it is likely to boost is thenumber of unemployed Floridians. That’sbasic economics: if you raise the cost ofsomething, fewer people are going to buy it.If Fair Share raises the cost of employment,business will employ fewer workers — andusually those with few skills who are oftenone paycheck away from destitution.

Furthermore, Florida is a small-employerstate. Small firms are less likely to purchaseinsurance for one reason. They can’t afford it.And they can’t afford it, in part, becauseFlorida forces an employer who is trying topurchase insurance for its employees to payfor coverage of a costly load of conditions andservices. An employer has no choice but topay for these mandated coverages, regardless

(continued on page 3)

2 Employer Advocate • Winter 2006

On the Job

EMPLOYER

Published byAssociated Industries

of Florida ServiceCorporation to inform

readers about issuespertinent to Florida’sbusiness community.

© 2006. All rightsreserved.

PUBLISHERBarney T. Bishop III

ASSOCIATE PUBLISHERStephen B. Trickey

EDITORJacquelyn Horkan

DESIGNERJ. Gregory Vowell

EDITORIAL OFFICES516 North Adams St.

Post Office Box 784Tallahassee, FL

32302-0784Phone: (850) 224-7173

Fax: (850) 224-6532E-mail: [email protected]

C o m m o n S e n s e

By Barney T. Bishop III

Associated Industries of Florida exists because the threats to the private

enterprise system are constant.Witness the latest iteration filed by two liberalDemocratic legislators both from southeastFlorida.

Sen. Skip Campbell, a Ft. Lauderdale triallawyer and Rep. Susan Bucher, a “full-timelegislator” from West Palm Beach are spon-soring the labor-backed Fair Share Health Act(see cover story), which AIF will fight to thefullest of our abilities.

Sen. Campbell, a Democratic candidate forattorney general, might well use the proposalto propel himself into Florida’s Cabinet.Whether or not it passes, he is sure to cam-paign as the candidate who will defendregular people against big, greedy corpora-tions. Labor-influenced organizations such asACORN could try to replay their success witha minimum wage to pursue passage of FairShare as a proposed constitutional amendment.

To help confront this challenge, AIF hascreated a Mandatory Health Insurance TaskForce which has already been meeting.

This coming legislative session presentsmany challenges for the business community.Most importantly we are on the verge ofachieving a long-time goal: complete andtotal repeal of the doctrine of joint andseveral liability. This vital reform has alreadybegun its passage through the FloridaHouse of Representatives. If last year is anytestament, it will prevail again and be sent tothe Senate with a resounding vote ofsupport. With at least 21 votes in the FloridaSenate, joint and several repeal will be sent to

the Gov. Jeb Bush who will promptly sign it.Beyond tort reform, there are a host of

other critical issues that AIF will work on inthe next few months that you will read aboutin this issue. Know that AIF will commit allof our resources to advocate for what is bestfor Florida’s employers. But there are otherreasons that an organization such as AIFexists and it’s because sometimes businessneeds somebody that can take the “slings andarrows” for an unpopular cause.

Such is the case on the issue of energy costsfor Floridians, which we expect to take centerstage during the session. In December, AIFbecame the first and only statewide businessorganization in Florida to advocate forexploration and drilling in the eastern Gulf ofMexico for oil and natural gas. We wereimmediately attacked by some sectors of thetourism industry, yet on January 2, VISITFLORIDA released its tourism projections for2006, which had been cut more than halfbecause of the high cost of fuel for automo-biles, buses and planes.

The enviros also chimed in, warning of tarballs marring our pristine beaches — despitethe fact that the Gulf Coast just survived twomajor hurricanes with no environmentaldamage from the rigs or platforms!

Recent polls show that many Floridiansreject the alarmists and agree with AIF thatresponsible action must be taken to alleviatethe rising cost of fuel and if it can be done in aresponsible manner then we should support it.

AIF exists for many purposes. Mostimportantly it exists to serve you, our mem-bers, to keep you informed of the challengesthat we collectively face, and to provide youwith the means to overcome those challenges.This is what we have been doing for you formore than eight decades, and it is what wededicate ourselves every day to continuingto do.

Barney T. Bishop III is President & CEOof Associated Industries of Floridaand affiliated companies(e-mail: [email protected]).

Employer Advocate • Winter 2006 3

H e a l t h C a r e

of whether they are wanted or needed. Onlyfour states provide for more insurancemandates than Florida, one of them isMaryland, the home of Fair Share.

If advocates of Fair Share really wanted tohelp the uninsured, they would start pushingfor the repeal of some of those mandates,rather than piling on another. Making insur-ance more available and affordable is not thepoint, however.

According to organized labor and otheradvocates of Fair Share, big businesses haveplenty of money but do not provide adequatehealth care coverage for their employees,creating a drain on taxpayers. Similar drain-on-taxpayer allegations have been used tojustify the lawsuits against cigarette manufac-turers, purveyors of fast food, gun merchants,and paint companies.

Like those other corporate targets, Wal-Mart has undergone a multi-pronged publicrelations attack by unions, left-wing interestgroups, and deep-pocket personal-injurylawyers. They have been assisted willingly orunwittingly by journalists who repeat theanti-Wal-Mart invective as if it were fact.But this campaign, just like those againstthe other corporate targets, is not a questfor truth.

Wal-Mart is big and successful, whichautomatically makes it unpopular with acertain segment of the population. On theother hand, the retail giant is extremelypopular with people shopping for bargains orlooking for entry-level and part-time jobs.

When Wal-Mart enters a market, retailprices typically decline by 5 to 8 percent.One strategy the company uses to keep itsprices low is to avoid unionization, whichusually results in above-market costs forwages and benefits.

And while it may be dependent on low-wage, low-skilled labor, Wal-Mart is hardlystingy. Its employees are only slightly morelikely than the national average to rely onMedicaid. According to a survey by TheSegmentation Company, when seven percentof Wal-Mart’s new hires join the companythey are enrolled in Medicaid. At the end of

two years, only three percent still remaindependent on the publicly funded healthinsurance program.

Part-time and full-time employees alikecan sign up for health insurance once theymeet eligibility standards. Of Wal-Mart’s 1.6million employees, 86 percent are insured,over half of them through the company.

Wal-Mart falls into Maryland’s Fair Sharetrap not because it neglects its employees’health care needs. Rather, Wal-Mart is able touse innovative approaches to spend lessmoney on insurance than do other compa-nies. In some markets, Wal-Mart employeescan choose from among 18 different plans,one of which charges $11 in monthly premi-ums with $3 co-pays.

Most employers lack the edge thatWal-Mart’s sheer bulk gives the companywhen it comes to leveraging health insurancedollars. Small employers in Florida have totake what the market gives them and statelaw makes those pickings slim. While Floridalawmakers, in recent years, have tried toexpand the health care options available tosmall businesses, their attempts have metwith limited success. Florida’s market isstill too restrictive.

(from page 1)

(continued on page 20)

If advocates of

Fair Share really

wanted to help

the uninsured,

they would start

pushing for the

repeal of some of

those mandates,

rather than piling

on another.

Making insurance

more available

and affordable is

not the point,

however.

The Forgotten Resource

T e c h n o l o g y


By Jacquelyn Horkan

IT used to be the domain of the pocket protector geeks tucked away in basement offices.

Today the geeks are the office heroes andinformation technology — or IT, for short —is now the backbone of the computer world.

From recovering a lost file to getting e-mailback on-line to making sure the planes land onschedule, IT staff members are major playersin the way products and services are deliveredin the United States. They sit at the boardroomtable as corporate vice presidents and increas-ingly CIOs (chief information officers) areleapfrogging CFOs to take their place as CEO.

Why? Because the IT shops of companies andgovernments are where the institutional knowl-edge of an organization is increasingly found.

Many corporations have discovered, totheir dismay, that saving money on IT fund-ing is penny wise, but pound foolish. Thestate of Florida may be on the verge of learn-ing that same lesson the hard way.

As private corporations have found overand over again, an upfront investment in ITcan save money and improve service. Somesegments of the Florida Government are sobad and outdated that services (to citizensand business) are suffering.

The computer systems at the state Depart-ment of Corrections (DOC) control all of thestate prisons and prisoners. Those systemsare so old and outdated that if they were tocrash, finding someone who could fix themwould be nigh unto impossible. A breakdowncould pose a serious threat to the publicsafety. The same is the case with the comput-ers designed to run public health and welfareprograms.

When Jeb Bush became governor in 1999,he immediately set about to bring much-needed changes to the way Florida’s stategovernment finances,manages, and plans forits IT needs. Despite the ‘e-Governor ’s’ best

Florida cannot be

satisfied with a

business-as-usual

approach to

information

technology.

efforts,Florida still suf fers from an outdatedIT infrastructure.

Florida also lags behind many other statesin per capita IT spending, including NewYork, which Florida will surpass before 2010as the third-largest state in the Union.

To help address that deficit, AIF has createdthe IT Council, which is dedicated to helpingelected officials and policymakers understandhow to best bridge the gap. At a recent meet-ing in its state headquarters, AIF hosted ameeting of some of the most prominent ITcorporations and service providers in theworld. Their common goal: Pr omote IT as away to transform government, making it moreefficient and more accessible to its citizens.

The council will also concentrate on nour-ishing Florida’s IT industry. Members willanalyze existing barriers in regulations andthe tax code, along with means to provide foran trained and competent IT workforce.

Florida cannot be satisfied with a busi-ness-as-usual approach to informationtechnology. Despite the pr oliferation ofcheap PCs, IT costs are not getting cheaper.In fact, security, support, and softwarelicensing costs are spiraling upward.

In our state’s multilingual society, con-fronting the threats of a pandemic flu, globalterrorism, and sophisticated criminal gangs,the tools must be in place to sort criticalinformation andquickly r elay it tocaregivers, first responders, governmentagencies, and the general public.

The world moves at Internet speed todayand so must Florida’s government. Ignoringour state’s IT needs will strangle the ability ofFlorida businesses and residents to grow andprosper.

Jacquelyn Horkan is a freelancewriter in Tallahassee, Florida(e-mail: [email protected]).


By Nick Iarossi

According to a 2003 Federal Trade Com- mission report, over the five preceding

years, identity theft had cost victims $5billion, while the price tag for businesses andfinancial institutions was ten times that amount.

Those who steal identities steal moneyfrom businesses. On the other hand, govern-ment efforts to protect consumers againstidentity theft have the potential to hurt morethan they help by unnecessarily hinderingcommercial transactions.

Since this is an election year legislators areeager to respond to constituents who clamorfor greater protection against identity theftand misuse of private information.

This is an important issue for people whoown and operate businesses because theywill be forced to pay for any new measuresdesigned to protect their customers’ personalinformation. AIF is already tracking severalbills to ensure that they do not produceunnecessary barriers to free and voluntarycommercial transactions.

A measure sponsored by Rep. SandraAdams (R-Oviedo) and Sen. Durell Peaden (R-Crestview) would allow consumers to place asecurity freeze on their credit report, prevent-ing unauthorized access to credit informationor new extensions of credit while the freeze isin effect. Other states with similar laws haveencountered problems because deactivatingthe freeze can take several days. Many times aconsumer fails to remove the freeze beforeshopping for a car, getting a bank loan,opening a store credit account, etc. As a result,the consumer is unable to get instant creditand consummate the purchase.

Another bill by Rep. Ari Porth (D-CoralSprings) and Sen. Dave Aronberg (D-Greenacres) amends the Electronic MailCommunications Act to provide criminalpenalties for sending unsolicited commercialelectronic mail messages. The bill has been

Identity Theft and Consumer Privacy

nicknamed as the “Can Spam Email Act.”Under a bill by Sen. Skip Campbell (D-

Tamarac) disclosing, selling, or transferring anindividual’s personal identification informationto a foreign country without first obtaining theindividual’s consent would be considered adeceptive and unfair trade practice punishableas a third-degree felony. Many large companiesship that kind of information to India or othercountries for data entry. Under this proposal,companies could not do so unless they receivedauthorization from each individual whoseinformation would be shipped. The prohibitionwould include customer call centers where anindividual’s personal information is visible ona computer screen. The practical effect of thislegislation would make it impossible forcompanies to utilize foreign services.

Sen. Gwen Margolis (D-Miami) wants toprohibit the use of Social Security numbers oninsurance identification cards, student identifi-cation cards, and certain information sent bymail. The legislation would also ban the use ofSocial Security numbers for obtaining certaingoods or services except as legally required.Many businesses utilize social security numbersbecause it is the only unique identifier available.

AIF will analyze legislation carefully toensure that any proposals dealing withidentity theftand privacy conform to gener -ally accepted business practices. AIF willfightto pr event legislation that creates unnec-essary administrative costs associated withßdeveloping new systems. The businesscommunity is committed to fighting identitytheft and protecting the privacy of theircustomers, however, enforcement ofFlorida’sexisting laws in these areas must be accom-plished to prevent future crimes.

Nick Iarossi is an attorney with Capital CityConsulting, LLC, a Tallahassee-based lobbying firm(e-mail: [email protected]).

L a w s u i t R e f o r m


By Mary Ann Stiles & Tamela Perdue

Life in Florida is a paradise in many ways and our vast natural and economic resources make many businessesproud to call Florida home.

For many years, however, the handling ofnegligence cases and damage awards byFlorida’s judicial system has overshadowedthe ability of businesses and individuals inFlorida to realize their full potential. Now,however, it appears that a new day may be onthe horizon. It appears that lawmakers inboth chambers will have the opportunity toabolish the inequity that the doctrine of jointand several liability places on our negligencesystem, leaving a legacy of a fair and justlegal system for many generations to come.

Associated Industries of Florida and itsfellow members of the Florida Coalition forLegal Reform have long advocated for andsupported all legislative initiatives that fosterfairness and predictability in our state’s legalsystem. At this time, the abolition of joint andseveral liability is the one reform proposalthat will provide the greatest impact across allindustries.

This issue will be the focus of our greatestefforts. Other tort reform measures may ariseand many will receive our support. We willnot condone any legislation, however, thatcompromises or weakens the elimination ofjoint and several liability. We will also defendagainst any attempts by the trial bar to“compromise” on other legislation so thatthey can avoid the elimination of joint andseveral while still proclaiming that theyparticipated in tort reform.

Last year we published an incisive guide tomany of the reforms needed to fix Florida’scurrent legal system. Reforming Florida’sFuture: An Overview of the Need for Tort Reformin the Sunshine State included a model lawsuitreform bill that encompassed over 20 differ-ent issues that we identified as worthy of

Repealing joint

and several

liability is the

key to true

success in the

legal attacks

thrust at

businesses across

this state every

single day

legislative attention. That publication igniteda tort-reform debate in the halls of the Capitolthat culminated in the Florida House ofRepresentatives, under the leadership ofHouse Speaker Allan Bense (R-Panama City),passing a comprehensive tort reform bill.The package, sponsored by Rep. Don Brown(R-DeFuniak Springs), would have saved asignificant amount of money on many of thegoods and services on which businesses andindividuals have come to rely. Unfortunately,this bill got tangled up with several otherpieces of major legislation during the lasthours of the 2005 session in negotiationswith the Senate and did not pass the fullLegislature.

Our commitment to lasting and meaning-ful tort reform did not end on the last day ofthe 2005 session. AIF lobbyists and coalitionmembers worked throughout the interim andare still working to build support for therepeal of joint and several liability. We haveworked hard to educate senators and represen-tatives alike about the many benefits Florid-

A New Day Dawning?A New Day Dawning?


To OrderYourCopies,Call (850)224-7173

ians will reap from this legislation to transformour unfair negligence system into a systemthat is fair, balanced, and just. Fortunately, inworking with other members of the businesscommunity we have been able to confirm thatour position is now shared by the otherbusiness groups: the elimination of joint andseveral is the top priority for the 2006 session.That dedication has also been communicatedto leadership in the Senate and the House.

Our support for other tort reform issueshas not waned, yet we realize that repealingjoint and several liability is the key to truesuccess in the legal attacks thrust at busi-nesses across this state every single day. Weare encouraged by House Speaker Bense’sdecision to give a hearing to Rep. Brown’sjoint and several bill in the House JudiciaryCommittee before session begins. We appreci-ate the votes of the seven representatives onthe House Judiciary Committee who ap-proved that bill on January 25, 2006.

We also applaud the commitment of SenatePresident Tom Lee (R-Tampa) who publiclyacknowledged the importance of true tortreform for the State of Florida and promisedto present this issue to the Senate in the earlyweeks of the upcoming session. SB 2006,

which is identical to the Brown bill, has beenfiled in the Senate by Sen. Dan Webster (R-Winter Garden).

We will continue to encourage the Legisla-ture to step up to its rightful role and notallow the judiciary to shape policies for ourstate that should be left to our representativebranch of government. Once again, thequestion Florida’s leaders must answer is notwhether a governmental response is neededbut how — and when — will governmentrespond to the abuses of the judicial systemthat are crippling Florida business. Thecontinuation of joint and several liability inthis state is jeopardizing Florida’s future andwe must work together to improve oureconomy and ensure a fair and equitable legalsystem for all Florida’s citizens.

Mary Ann Stiles and Tamela Perdue arewith the law firm of Stiles, Taylor & Grace,of which Stiles is the founding partner.Both are consultants to AssociatedIndustries of Florida. Stiles serves asgeneral counsel emeritus and Perdueas general counsel (e-mail:[email protected];[email protected]).

In the Know!It’s been called the lobbyists’ bible; we call itKnow Your Legislators, or the KYL for short.

This pocket-sized guide, published by AIF,is the directory Floridians have come to trust— the original directory of the FloridaLegislature.

Every AIF member gets one complimentarycopy, and additional copies are availablestarting at $5 each — $1 more for spiral-binding. Place an order by calling AIF’spublications department, or place an on-lineorder on our Web site (http://aif.com).

AIF and its

fellow members

of the Florida

Coalition

for Legal Reform

have long

advocated for

and supported

all legislative

initiatives that

foster fairness

and predictability

in our state’s

legal system.

2 0AIF lobbyists, representing centuries of accumulated experience in politics and government, spent more th

ssociated Industries of Florid

DEAR FLORIDA EMPLOYER:

By standing up for your right tosucceed, free from governmentintrusion and interference, AssociatedIndustries of Florida helps companieslike yours grow.

For most of this century, whereverand whenever governmental officialshave met, Associated Industries hasmade sure they listen to the voiceof the state’s employers.

We champion the value of hardwork and productive endeavor andthe incentive offered by the abilityto make a profit. We make suregovernment officials understand theconsequences of their actions onthe ability to succeed in Florida.

Like it or not, the decisions madein Tallahassee can make thedifference between success andfailure in commerce. When thosedecisions are made, AssociatedIndustries speaks out on the sideof success.

If your company does not belongto Associated Industries, pleaseconsider the benefits of joining.With your support, we can grow inour mission to promote a vigorouseconomy, filled with the promise ofabundance for every person whocalls Florida home.

Barney T. Bishop IIIPRESIDENT & CEO

OFFICERSBarney T. Bishop IIIPresident & CEO of Associated Industries of Florida… former aide to state Treasurer Bill Gunter …former executive director of the Florida DemocraticParty … more than 27 years of experience inlegislative and political affairs … areas of expertiseinclude appropriations, criminal justice, andbehavioral health care issues … B.S. in political& judicial communication from EmersonCollege in Boston.

Mary Ann Stiles, Esq.General Counsel Emeritus of Associated Industriesof Florida ... managing partner in the law firm ofStiles, Taylor, & Grace, P.A. ... more than 33 yearsof legislative and lobbying expertise before theLegislature and other branches of government ...graduate of Hillsborough Community College,Florida State University, and Antioch Law School.

Tamela Ivey Perdue, Esq.General Counsel and Shareholder with the lawfirm of Stiles, Taylor & Grace, P.A. … more than14 years legislative and legal experience,representing insurers and the business communityon workers’ compensation and other legal issues... established legal practice specializing in workers’compensation defense … formerly worked in theFlorida Senate … B.S. from Lee University and J.D.from Stetson University.

Chris VerlanderSenior vice president — corporate development ofAssociated Industries of Florida ... more than 26years of expertise in insurance lobbying activities... former president (1994-1997) and vicechairman (1997-1999) of American Heritage LifeInsurance Company ... B.S. from Georgia Techand M.B.A. from the University of Florida.

DIRECTOR OF GOVERNMENTAL AFFAIRS

Jose L. GonzalezCoordinates AIF’s lobbying team and all researchand advocacy efforts for the association …Master’s degree in Public Administration witha specialization in Public Policy and a Bachelor’sdegree in Political Science from theUniversity of Florida.

“The AIF staff is extremely competent andhighly respected as one of the best lobbyinggroups in Tallahassee, and is, as a result,very effective in representing business.”Lance Ringhaver, President – RINGHAVER EQUIPMENT COMPANY

0 0 6CONSULTANTSKeyna Cory (Chief Lobbyist)President, Public Affairs Consultants, a publicaffairs and governmental relations consulting firm... more than 21 years of experience representinga variety of clients, from small entrepreneurs toFortune 500 companies, before the FloridaLegislature ... majored in political science at theUniversity of Florida.

Robert P. AsztalosPartner with the Buigas, Asztalos & Associates andthe Director of Governmental Affairs for DeltaHealth Group ... directed the Nursing Homeprofession’s litigation reform campaign in 2000-01and served as the Director of the Heal Healthcare inFlorida Coalition ... Master’s degree in LegislativeAffairs and a Bachelor’s degree in Political Sciencefrom George Washington University.

Ronald L. Book, Esq.Principal shareholder of Ronald L. Book, P.A. …former special counsel in Cabinet and legislativeaffairs for Gov. Bob Graham … formerly workedfor the Florida House of Representatives …34 years of experience in government andlegislative activities … areas of expertise includelegislative & governmental affairs … graduate ofthe University of Florida, Florida InternationalUniversity and Tulane Law School.

Mark FlynnVice president of J Kieth Arnold & Associates ...former economic development executive withextensive experience representing business on abroad range of issues including growthmanagement and transportation ... has alsoworked for both a member of Congress and amember of the Florida House of Representatives ...graduate from the University of South Dakota witha B.S. in mass communications.

Peter Harris, Esq.President and CEO of ADG Business & GovernmentalConsultants ... more than 15 years of experiencesuccessfully designing and implementing substantivelegislative, governmental and managementprograms for business and government ... effectivelyworked with key policy makers in all branches ofgovernment … graduate of the University of Miamiand Florida State University College of Law.

Nick Iarossi, Esq.Founding partner of Capital City Consulting,L.L.C. ... formerly worked in the Florida Senate,the Florida House of Representatives and theOffice of Insurance Regulation ... expertise inbanking and insurance, privacy and publicrecords, health-care, procurement, pari mutuels,technology, and education ... graduate fromthe Florida State University College of Law.

H. Frank MeinersPresident, Frank Meiners GovernmentalConsultants, LLC ... formerly with BellSouth astheir Executive Director in Tallahassee where helobbied communications issues ... graduate ofthe University of South Florida in Mathematicsand of the Fuqua School of Business at DukeUniversity ... will be covering informationtechnology issues for AIF.

Jim RathbunPresident of Rathbun & Associates ... more than17 years of experience representing individualsand entities before the Legislature, state agencies,and the governor and Cabinet ... formerly workedwith the Florida House of Representatives andserved as staff director of the House RepublicanOffice ... B.S. from Florida State University.

Guy Spearman, Esq.President, Spearman Management, Inc., govern-ment relations consulting firm ... 32 years ofexperience representing a variety of clients fromsmall business owners to Fortune 500 companies... graduate of Auburn University and FloridaState University College of Law.

John Thrasher, Esq.Florida’s Speaker of the House from 1999-2000... While leading the House, helped to passsome of the landmark reforms advanced by Gov.Bush, including an overhaul of the state’s entiresystem of education ... the new medical schoolat FSU, John’s alma mater, honors his name...John was elected to his first term as a staterepresentative and was re-elected withoutopposition in 1994, 1996, and 1998.

Gerald WesterManaging Partner, Capital City Consulting, LLC ...former chief deputy over Florida Department ofInsurance’s regulatory staff ... more than 30years of lobbying experience ... expertise ininsurance, banking, and health care issues ...Bachelor’s and master’s degrees from FloridaState University.

Mike ZagoracFormer senior vice president, public affairs forHill & Knowlton, Inc. ... former vice president ofpublic affairs for the Jack Eckerd Corporationand vice president of the National Association ofChain Drug Stores ... more than 37 years ofexperience in media and public relations,community affairs, and environmental issues ...Bachelor’s degree from Purdue University andM.B.A. degree from American University.

han 10,000 hours in the Capitol during the 2005 Legislative Session advocating for your business interests.

da 2006 Lobbying Team

A Burst of Energy

E c o n o m y


By Jacquelyn Horkan

Florida’s economy thrives on the energy that businesses need to produce goodsand provide services to consumers. And

that’s why AIF was the state’s major businessassociation to sign on as a supporter ofnational and state efforts to expand our state’senergy supplies.

The 2003 northeastern blackout, hopscotching crude oil prices, and the interrup-tion in fuel supplies after Hurricane Katrinahave been reverberating throughout thenation’s economy. According to PNC Finan-cial Services, energy costs have replacedemployee health insurance as the singlebiggest concern of small business owners.

Rising costs and dwindling availability ofdependable and affordable supplies of elec-tricity and fuel pose unique concerns forFlorida.

While we are the fourth most populousstate, Florida ranks third nationally in totalenergy costs. Less than one percent of theenergy used here is consumed here. Deliveryof fuel supplies is hampered by Florida’sunique geography; 98 percent of our trans-portation fuel arrives by sea whereas otherstates rely on pipelines.

Florida citizens and businesses use 28million gallons of motor vehicle fuel eachday; consumption is expected to grow to 32million gallons a day in ten years. Electricityusage is expected to increase by almost 30percent over the next 10 years.

Current forecasts indicate that state’s newgenerating capacity will be 80 percent naturalgas and 19 percent coal-fired, leaving Floridaoverly reliant on one type of rather expensiveenergy.

At AIF’s Dec. 12, 2006 press conference onthis issue, several business leaders gaveexamples of the negative impact of escalatingenergy costs on their ability to sustain andgrow operations. Gov. Jeb Bush has grasped

Rather than

imposing new

taxes or

mandates, the

governor’s plan

seeks to remove

regulatory

barriers that have

hindered the

development

of new

electric-generation

capacity.

the initiative, compiling a package of propos-als that address the twin dilemmas of energycosts and supplies.

The governor is asking lawmakers toapprove the 2006 Florida Energy Act, a four-year, $75-million-dollar effort that balancesconservation with news energy supplies.Rather than imposing new taxes or mandates,the governor’s plan seeks to remove regula-tory barriers that have hindered the develop-ment of new electric-generation capacity. Italso relies on targeted incentives designed tospur efforts to develop alternative fuels andnext-generation energy technologies.

As Gov. Bush said in his announcement ofthe plan, “A reliable, cost-efficient supply ofenergy is critical to Florida’s continuedprosperity. Through diversity and conserva-tion efforts, we can reduce our dependence onimported oil, spur economic growth andensure that a balanced mix of fuel sources andtechnologies are readily available for years tocome.”

AIF also announced its support for the billintroduced by U.S. Representative RichardPombo and negotiated by Gov. Bush, whichcalls for limited exploration and recovery ofundiscovered oil and natural gas resources inthe Eastern Gulf of Mexico. The bill balancesthe need to expand drilling and explorationwith protection of Florida’s environment,national military interests, and tourism.

Over the long-term, Florida’s economydepends on an aggressive approach to devel-oping alternative energy sources includingnuclear, hydrogen, ethanol, coal, solar andwind to meet the state’s future needs.

Much of Gov. Bush’s Florida EnergyAct represents the first step in this process.AIF applauds his foresight and promises tocontinue leading the effort by business com-munity to ensure that lawmakers followthrough on these important initiatives sothat they become guiding principles forour state.



Legislators now

appear ready

to abandon

government

command-and-

control in favor

of a market-based

approach to

revitalize the

private property

insurance market.

Heading for a Market Meltdown

I n s u r a n c e

By Gerald Wester

Florida is on the verge of a property insurance meltdown. Hurricane and sinkhole losses (see sidebar) have seri-ously strained the resources of both the volun-tary market and the public sector mechanismsof Citizens Property Insurance Company andthe Florida Hurricane Catastrophe Fund.Additionally, a busy hurricane season forecastfor 2006 creates an urgent need for lawmakersto address the marketplace vulnerabilityduring this legislative session.

State-owned Citizens, which in four yearshas become Florida’s second largest propertyinsurance company, has a $1.4 billion deficit incash needed to pay hurricane losses. Citizens’cash deficit will be funded through premiumsurcharges, projected to result in a minimum15 percent premium increase for each residen-tial policyholder. Hurricane losses have totallydepleted the cash resources of Florida’s Hurri-cane Catastrophe Fund.

Florida insurance companies have replacedapproximately $1 billion of capital that wasdepleted as a result of 2004 hurricanes. Addi-tional replacement capital will be necessary asa result of 2005 hurricane losses. A number ofinsurance companies are re-evaluating theirhurricane exposure and reducing market sharein some cases. The Office of Insurance Regula-tion estimates that approximately 250,000policies will not be renewed this year. Thesenon-renewals have not been offset by newcompanies entering the market.

The 2005 Legislature enacted severalchanges to laws governing property insurancein a sincere attempt to stabilize the market.Their actions are likely to hurt more than theyhelp because the new law imposes 16 newcounterproductive price, product and market-ing requirements on insurance companies.

Based on comments made at a series ofstatewide meetings, many legislators nowappear ready to abandon government com-

mand-and-control in favor of a market-basedapproach to revitalize the private propertyinsurance market.

Legislative focus has shifted to attractingnew insurance capital that will fulfill thedemands of current and future propertyinsurance needs.

AIF will continue to work with lawmakersto develop proposals that will fix the prob-lems in the market before it’s too late.

A Sinking FeelingIs that crack in the foundation a result of

normal settling, poor construction, or asinkhole?

Florida law mandates that property insur-ance cover losses caused by sinkholes. Ag-gressive solicitation by plaintiffs’ attorneysand unscrupulous contractors has resulted inan unprecedented number of Tampa Bayclaimants alleging that sinkholes caused thedamage to their property.

Resolution of sinkhole claims has nowbecame a matter for litigation, significantlyreducing availability of private propertyinsurance in the Tampa Bay area. State-ownedCitizens Property Insurance Company is nowthe number one insurer in many Tampa Baycounties. In just three years Citizens’s cover-age in Hernando, Hillsborough, Pasco andPinellas counties has increased from 1,012policies to more than 140,000.

Several Tampa Bay legislators have filed abill establishing an alternative process thatutilizes a neutral expert evaluator to determinewhether damage is the result of a sinkhole andto resolve other sinkhole claim disputes.

The proposed legislation is an effort todrive out of the system the frictional costsresulting from litigation over damages causedby cracking and settling.

Gerald Wester is Managing Partner with CapitalCity Consulting, LLC, a Tallahassee-based lobbyingfirm (e-mail: [email protected]).

Lawmakers Askedto Cut Taxes,Boost Economy

T a x R e f o r m


“Just because you

collect the tax

dollars, does not

mean that you

have to spend

them.”

– House SpeakerAllan Bense

By Keyna Cory

Intangible Personal Property Tax

F lorida is one of only four states that tax intangible personal property, which includes such things as stocks, bonds,notes, and certain other documents thatoblige someone to pay the holder money.

In 1998, Florida’s lawmakers recognizedthe economic disincentives created by theintangibles tax, which has also been called atax on savings because it penalizes peoplewho use their money for investment purposesrather than spending it. Over the next threeyears lawmakers phased in an exemptionfrom the tax for accounts receivable. Duringthe same period, the Legislature reduced theannual tax rate from 2 mills to 1 mill.

Two years ago, legislators again took upthe job of reducing the burden of this impru-dent tax by increasing the personal exemp-tions from $20,000 to $250,000 in total taxableassets for individuals and from $40,000 to$500,000 for married couples filing a jointreturn. In 2005, the annual tax was cut again,to half a mill, effective January 1, 2006.

Rep. Fred Brummer (R-Apopka), and Sens.Mike Haridopolos (R-Melbourne) and JeffAtwater (R-North Palm Beach) have eachfiled bills that would finally wipe the annualintangible personal property tax off the state’stax code.

Some will claim that eliminating this taxharms the poor and needy while rewardingthe rich. That argument ignores the fact thatevery intangible tax dollar paid represents adollar that is not spent in creating more jobs

and opportunities.Manufacturing Machinery and Equipment

Legislation has been filed to broaden anexisting sales tax exemption for industrialmachinery and equipment that is purchasedto expand a facility engaged in manufactur-ing or spaceport activities.

Under current law this exemption does notapply until a business pays $50,000 in salestax. Rep. Matt Meadows (D-Lauderhill) andSen. Jeff Atwater (R-North Palm Beach) wantto eliminate that provision, thereby providingfor a full, rather than partial, sales tax exemp-tion. To become eligible for the exemption,the business must demonstrate that theindustrial machinery and equipment itpurchases will be used to increase productiveoutput at the facility by at least 10 percent.

Florida currently charges sales tax twice onmany of the materials and machinery in-statecompanies use to make goods — once beforethey are used and once after they appear asthe final product. Plants in several of ourneighboring states, including Georgia, areexempt from this double taxation, whichgives them an unfair advantage over ourhome-grown manufacturers.

Florida currently has over 16,000 manufac-turing facilities and roughly 14,000 have 10employees or fewer. Rep. Meadows and Sen.Atwater’s bills provide a much-neededincentive for existing manufacturers toremain here while helping to attract newmanufacturing plants.

The exemption on manufacturing machin-


ery and equipment will help nourish ourmanufacturing sector, giving the state adiversified economy and adding to Florida’sluster nationally and internationally.

Sales Tax HolidaysBills filed by Rep. Joe Negron (R-Stuart)

and Sen. Jeff Atwater (R-North Palm Beach)would establish a one-week sales tax holidayon virtually every purchase costing under$5,000, such as clothing, furniture, televisions,electronics, computers, vehicles, and recre-ational equipment. The tax-free week, fromJuly 31 through August 6 would represent thelargest single tax cut in Florida history.

In announcing the proposal, Rep. Negrontold the press that the House plans to use theunexpected surge in tax revenue to fundpriorities, save for the future, and give back tothe taxpayers. This proposal is the fairest wayto give back to the citizens because it benefitseveryone, from the richest to the poorest.House Speaker Allan Bense (R-Panama CityBeach) threw his support behind the idea,telling reporters. “Just because you collect thetax dollars, does not mean that you have tospend them.”

Sales tax holidays have grown in popular-ity over the last several years, to the delightof individuals and businesses alike. Whenconsumers take advantage of these holidays,they spark Florida’s economy, bringing long-term and short-term gains for all Floridians.

Hurricane PreparednessOver the last two years, plenty of Florid-

ians have learned that preparedness is the keyto surviving a hurricane both in your per-sonal and your business life.

To help citizens of the state ready them-selves for the next storm, Rep. Ron Greenstein(D-Coconut Creek) and Sen. Cary Baker (R-Eustis) want to set aside a period of timewhen Floridians can buy the hurricanesupplies they need without paying sales tax.

If the proposal becomes law, purchasesmade from June 1 until June 12 of items froma predetermined list of necessities would beexempt from sales. ■

Keyna Cory is the president of Tallahassee-basedPublic Affairs Consultants, Inc., and chief lobbyistfor Associated Industries of Florida.(e-mail: [email protected])


P r o p e r t y R i g h t s

Under current

law, a thriving

business that

falls within a

redevelopment

area designated

as blighted

could face

condemnation.

Lawmakers TackleEminent Domain& RedevelopmentBy Rayford Taylor

Can government force you to sell yourhome or business, then transfer ownership of it to a private entity

involved in a development project designedto boost the area’s economy?

The U.S. Supreme Court says yes. In Kelo v.City of New London, a decision handed downlast June, the justices ruled 5-4 that economicdevelopment is a “public purpose” thatlegitimates the use of the government’spower of eminent domain.

The decision prompted widespread con-cern that local and state governments wouldview the case as giving them the green lightfor a massive expansion of government’spower to take control over a citizen’sprivate property.

In Kelo’s wake, virtually every state isevaluating its eminent domain laws. InFlorida, the scrutiny has focused primarilyon safeguards against takings designed toremedy slum or blighted areas under thehome rule authority of certain cities andcounties or the Community RedevelopmentAct. Those concerns have been focusedprimarily on the establishment of CommunityRedevelopment Agencies (CRAs) to carry outactivities within the redeveloping area.

The business community must becomeinvolved in this issue because, under currentlaw, a thriving business that falls within aredevelopment area designated as blightedcould face condemnation. Even if the businessis not located within a redevelopment area,it could be subject to condemnation by acharter county or municipality for economicdevelopment even though the business isnot blighted or otherwise engaged in aninappropriate use of the property.

Under Florida law a business that istotally condemned through eminentdomain would not always be entitled torecover business damages as a result of thatcondemnation. If the business is renting theproperty and building it might receive nocompensation at all.

Under current law, a municipality orcounty receives special authority once itmakes a finding that a slum or blighted areaexists within a redevelopment area, thosepowers include the ability to authorize theissuance of revenue bonds; to acquireproperty (by eminent domain if necessary);to demolish, remove, or dispose of property;and to use tax-increment financing. Propertyrights advocates contend the current defini-tion of “blight” is so broad and so vaguethat private property transfers to otherprivate property owners can and do occursolely for economic purposes.

Litigation is ongoing in various parts ofFlorida concerning the condemnation andtransfer of property to private developerswhen the existing owners will not voluntarilysell a piece of property slated for economicdevelopment. Counties, cities, and CRAscontend that the power to condemn foreconomic development is a necessary toolfor them to effectively revitalize rundownareas. Private property rights advocatescontend it is an inappropriate exercise of theeminent domain power, and that privateproperty should not be subject to condemna-tion for transfer to private developers.

House Speaker Allan Bense created theHouse Select Committee to Protect PrivateProperty Rights to look into the matter, while

Taking What’s Yours


O n t h e C a l e n d a r

Eminent domain is the power of govern-

ment to condemn private property and

convert it for public use, subject to reason-

able compensation. The power of govern-

ment to take property is limited by the

federal and state constitutions.

Generally speaking, property taken

through condemnation must be for a valid

governmental purpose or for protection of

the public health, safety and welfare. Such

traditional takings have involved condemna-

tion for roads, schools, prisons, parks, etc.

The Kelo decision arose out of a situation

in Connecticut where in 2000, after decades

of economic decline, the City of New Lon-

don approved an economic development

plan to revitalize the economy by develop-

ing an area along the shore.

The goal of the plan was to build an

upscale hotel, business, and shopping center

that would complement the facility a phar-

maceutical company was building, as well as

create jobs, increase taxes, and encourage

revitalization of the rest of the city. The

development corporation negotiated the

purchase of many parcels of property from

land owners in the development area. Ms.

Kelo and several other owners refused to

sell, however, prompting the filing of

condemnation proceedings to seize their

property.

There was no dispute in that particular

case about whether the properties being

condemned were not blighted. They were

simply in the way of the city’s plans for

economic development.

Senate President Tom Lee assigned that respon-sibility to the Senate Judiciary Committee

The select committee has received testi-mony concerning the use of the eminentdomain power in such a broad context and isconsidering limiting or restricting the use ofeminent domain to only parcels that arefound to be truly blighted, are slums, orconstitute a risk to the public health, safetyand welfare. At the present time, neither theHouse nor the Senate committees haveproposed legislation but both committees arecontinuing to take testimony and developcomprehensive approaches to this issue.

There has been testimony that if theFlorida Legislature wishes to prohibit orlimit the use of eminent domain solely foreconomic development purposes, it willhave to address not only the statutes govern-ing CRAs, but also Chapters 127 and 166 ofthe Florida Statutes that deal with home ruleauthority for counties and municipalities.

As might be expected, this is a complexand difficult subject, but Florida businessneeds to closely monitor legislation. Thepotential effect on many Florida businessescould be devastating if the current law isnot amended to protect a business frombeing condemned solely for the purposeof transferring the property to a developerbecause local government wants toredevelop the area in which the businessis located.

Rayford Taylor is with the law firm ofStiles, Taylor & Grace, and consultant toAssociated Industries of Florida(e-mail: [email protected]).


I s s u e R o u n d u p

Ethics & ElectionsConstitutional Amendment ReformBy Jose L. Gonzalez

During the upcoming session, lawmakers will again take up proposals to reformthe process for amending Florida’s Constitu-tion via citizen initiative.

In recent elections voters have had toconfront a barrage of amendments that havemade it to the ballot. This troubling trend hasled members of the Legislature to seekchanges that will protect our state’s topdocument from provisions that don’t belongthere, while also protecting voters’ funda-mental right to change the constitution.

In November of 2004, Floridians approvedthe first of the initiative reform amendments.As a result, the sponsor of a constitutionalamendment proposed by citizen initiativemust, by February 1 of the year on which theamendment will appear on the ballot, filewith the secretary of state the requisitenumber of initiative petitions that are neces-sary to get the amendment on the ballot.

That initial reform has already borne fruit.As a result of the 2004 reforms, only twocitizen’s initiatives were successful in meetingthe February 1 deadline. No other citizens’initiatives will be allowed on the 2006 ballot.

Last year, the Legislature passed a jointresolution that will appear before voters in theupcoming November election. This reformproposal requires that a constitutional amend-ment proposed by any citizen initiative mustgain at least 60 percent of the votes cast on theamendment; currently only a simple majorityvote is required to adopt an initiative.

This time around, lawmakers will be askedto adopt two joint resolutions that placeadditional reforms before voters in thegeneral election. The first would institute afilter that limits the subjects that citizeninitiatives can address to those provisionsthat directly affect the relationship betweengoverned and government.

The second joint resolution would requirea two-thirds vote for a constitutional amend-ment that increases an “existing state tax orfee” with a “significant fiscal impact greater”than two-thirds of one percent of the state’sgeneral revenue.

AIF supports these measures that raise thethreshold for enactment of citizens’ initia-tives. Florida must rein in a system thatallows special interests to subvert soundpublic policy decisions. Florida’s Constitu-tion should not be demeaned as the vehiclefor economically destructive programs andmandates.

Legal & JudicialGuns in the WorkplaceBy Keyna Cory

Many businesses have banned the posses- sion of weapons on their property as ameasure to protect customers and employees.Under legislation filed by Rep. Dennis Baxley(R-Ocala) and Sen. Durell Peaden (R-Crestview) an individual would be allowedto lock his firearms in his vehicles, even onprivate property where guns are notallowed.Rep. Baxley says his bill, along withits Senate companion sponsored by, will“protect businesses from liability created bycriminal conduct in parking lots.”

According to the sponsors, law-abidingcitizens already have a constitutional right, aswell as a statutory, right to carry firearms intheir private vehicles for lawful purposes.They say that keeping a firearm lockedsecurely in a vehicle in a parking lot is part ofthat right.

Opponents of the proposed legislationargue, however, that the Second Amendmentright to bear arms does not trump the prop-erty owner’s right to decide what happens onhis property. Some employersalr eadyhaverules thatban fir earmsfr omtheir pr opertyand have concerns about the safety of their

Pre-Session Business Report

For up-to-date

information

on business

issues, visit

http://aif.com


employees and customers if an exemption ismade for firearms in a locked car.

The bill provides immunity for employersfrom any liability in the event of any criminalor otherwise unlawful use of the firearm thatresults in injury or death, but puts an em-ployer in jeopardy of felony charges if it triesto ban firearms in a locked car parked on itsproperty.

While AIF appreciates the good intentionsof the sponsors, the association will beopposing the bill. Property owners have theultimate right to decide whether guns shouldor should not be allowed on their property.

More importantly employers need thefreedom to ban firearms on their property inthe interests of employee safety.

Public SafetyMaking the Jessica Lunsford Act WorkableBy Keyna Cory

Last year’s Jessica Lunsford Act is helping to help protect children from assault byhigh-risk sexual offenders, mostly by in-creased monitoring of sexual offenders andpredators once they re-enter the community.

The law has come to the attention of thebusiness community because it also requiresbackground screens for non-instructional orcontractual personnel who provide servicesto traditional public schools, charter schools,and alternative schools. It has proven a costlymandate that some school districts may beabusing. Any employee of a private contrac-tor with access to school grounds or fundsmust now undergo a Level 2 backgroundscreen, which checks person’s fingerprintsagainst the state and national databases.

School districts have been encouraged toshare background screening results withother public school districts so that oneemployee working in multiple districts onlyhas to undergo one screening. Many districtshave not done so, citing concerns aboutliability As a result, a vendor or contractorwith an employee working in more than onecounty would have to pay each county toconduct the exact same background check

multiple times, rather than conducting thescreen once and sharing the information witheach different county.

School boards are allowed to charge aprocessing fee, which in one district runs ashigh as $43. The fee is added on to the $47charge for checking the state and federaldatabases. Depending on the school district,a private contractor or vender must payanywhere from $60 to $90 before an em-ployee can enter school grounds to fulfill hisduties.

This delays the delivery of services thatschool districts need while driving up thecosts for those services.

Sen. Nancy Argenziano (R-Crystal River),the sponsor of the Jessica Lunsford Act,wants lawmakers to enact a glitch bill to fix afew problems with the bill. One area thatneeds to be addressed is defining “incidentalcontact” with a student so that someone whowould have direct contact with a studentwould have to undergo a more rigorousscreening process than would deliverypersons or other employees. AIF believes thatthe issue of information sharing betweenschool districts should also be addressed inany potential glitch legislation.

At the request of House Speaker AllanBense (R-Panama City) and Senate PresidentTom Lee (R-Brandon) the commissioner ofthe Florida Department of Law Enforcement,Guy Tunnell, established a database onbackground check information so thatdistricts could check on vendors andcontractors who had already undergonescreening.

This is an imperfect solution, however,because only the district requesting the checkwould be notified if the status of a vendor orcontractor changed. Until a permanent fixcan be found the database will help thebusiness community comply with the spiritof this noble legislation.

The House Committee on Criminal Justicehas already filed a proposal that addressessome of these concerns and the Senate isexpected to do the same.

AIF will continue working to ensure that


I s s u e R o u n d u p

The proposal

changes the way

class size

compliance is met

by calculating the

size by student-

teacher ratio rather

than using teacher-

classroom ratios.

the glitch bill fixes the concerns of the busi-ness community while upholding the integ-rity and purpose of this vital piece oflegislation.

EducationChanges to Class Size Limits in Store?By Ronald L. Book

In November 2002, Florida voters approved a constitutional amendment to reduceclass sizes in all grades to a set limit by theyear 2010.

The initiative, which was approved by 52.4percent of the electorate, establishes inflexiblemaximums of no more than 18 students inpre-kindergarten through third grade, 22students in grades four through eight and 25students in high school. Gov. Jeb Bush hasbeen an opponent of the class size measuresince its inception, arguing that the statecannot afford to hire the large number ofteachers and build the many additionalclassrooms necessary to fulfill the strictrequirements.

The Legislature approved legislation toimplement the constitutional amendmentduring a special session in 2003. Since then,there have been several attempts to relax therequirements of the amendment and oneproposal to repeal it all together.

This year, the House and Senate areconsidering a joint resolution on class sizethat would allow voters to consider a newconstitutional amendment on this issue in the2006 general election. Current law requiresthat class size be calculated on a school byschool average. The Joint Resolution proposesfreezing class sizes at the current districtaverage, while limiting the size per class tono more than five students above the districtaverage. Additionally, the proposal movesthe date required for full compliance withthe constitution’s requirement from thebeginning of the 2010 school year to thebeginning of the 2009 school year. The pro-posal changes the way class-size complianceis met by calculating the size by student-teacher ratio rather than using teacher-classroom ratios. Lastly, the House recentlyamended its proposal to require schooldistricts to spend 65 percent of their budgeton classroom instruction.

Today’s students are tomorrow’sworkforce, and students must study in anenvironment that is most conducive tolearning. AIF supports finding innovativesolutions to meet the needs of Florida’sstudents. AIF will continue to work with theLegislature to ensure that educational gainsrealize through Gov. Bush’s leadership canbe continued and expanded upon.

W o r k e r s ’ C o m p

For more

information about

any of these

events contact

Briana LaFave at

(850) 224-7173.

2 0 0 6

March6 AIF 2006 “Welcome Back” Reception

5:30 – 8:00 pm • AIF Headquarters – Tallahassee7 Opening Day of Regular Session

April 3 AIF Mid-Session Legislative Update

7:30 – 8:30 am • Governors Club – Tallahassee

May5 Last Day of Regular Session (Sine Die)22 Incumbent Fundraising Event – Orlando

5:30 – 7:00 pm • Hyatt RegencyOrlando International Airport

23 FBU Candidate Interviews – Orlando8:30 am – 5:00 pm • Hyatt RegencyOrlando International Airport

June6 FBU Candidate Interviews – Tampa

9:00 am – 5:00 pm • Hyatt Regency6 Incumbent Fundraising Event – Tampa

5:30 – 7:00 pm • Hyatt Regency7 FBU Candidate Interviews – Tampa

9:00 am – 5:00 pm • Hyatt Regency19 FBU Candidate Interviews – Ft. Lauderdale

9:00 am – 5:00 pm • Hyatt Regency Pier 6619 Incumbent Fundraising Event – Ft. Lauderdale

5:30 – 7:00 pm • Hyatt Regency Pier 6620 FBU Candidate Interviews – Ft. Lauderdale

9:00 am – 5:00 pm • Hyatt Regency Pier 66

July10 Incumbent Fundraising Event – Sarasota

5:30 – 7:00 pm • Hyatt Regency11 FBU Candidate Interviews – Sarasota

9:00 am – 5:00 pm• Hyatt Regency25 FBU Candidate Interviews – Tallahassee

9:00 am – 5:00 pm • AIF Headquarters

August

3–4 AIF Educational Conference – Ponte Vedra10:00 am – 4:00 pm • Ponte Vedra Club & Inn

September5 AIF Primary Election Watch Reception

7:30 pm until • AIF Headquarters – Tallahassee

November7 AIF General Election Watch Reception

7:30 pm until • AIF Headquarters – Tallahassee14 Swearing In Ceremony – Tallahassee


AIF Scheduled Events

AIF Headquarters is located at516 North Adams Street,Tallahassee.

Members will receive completeinformation on all eventsvia fax/e-mail.

Court GivesEmployers VictoryBy Rayford Taylor

The First District Court of Appeals recently upheld the attorney-fee reforms of the2003 workers’ compensation law. The attor-ney-fee provision was a crucial part of com-prehensive reform proposal enacted bylawmakers in 2003, which have resulted in a25 percent average decrease in workers’ comppremiums for Florida employers.

The 2003 package of reforms were draftedunder the leadership of Mary Ann Stiles, AIFgeneral counsel, as part of a multi-year effortby the Coalition of Business and Industry, anad hoc employer group formed to pursue themuch-needed changes in the system.

The attorney-fee reforms were vehementlyopposed by the trial bar, which knew thechanges would eliminate their ability to delayresolution of cases for no other reason than todrive up the fees they would receive. Underthe new law, attorneys for injured workersreceive a fee based on a percentage of benefitssecured on behalf of the injured worker. Theonly exception to the ban on hourly feesapplies to medical-only cases of up to $1,500in benefits, in which case the attorney can beawarded a one-time hourly fee.

The ruling is a true victory for Florida’semployers. Since the law’s passage, the trialbar has filed several appeals attempting tooverturn the attorney fee provision or havethe reforms interpreted in a manner whichwould still allow them to get fees based upontheir hours. Those other cases still workingtheir way through the appellate process andseek to attack this important law for Floridabusiness. At present, there are at least fiveother cases challenging the attorney feereforms on various theories. To date, AIF hasappeared as Amicus Curiae in three of thosecases urging the result reached in this case.

Rayford Taylor is with the law firm ofStiles, Taylor & Grace, and consultant toAssociated Industries of Florida(e-mail: [email protected]).

For up-to-date

information

on business

issues, visit

http://aif.com

PRESORTEDSTANDARD

US POSTAGE PAIDTALLAHASSEE FLPERMIT NO 904

ssociated Industries of Florida Service Corporation516 NORTH ADAMS STREETP.O. BOX 784 TALLAHASSEE, FL 32302-0784

According to one estimate, the number offirms offering health insurance has droppedfrom 69 percent in 2000 to 60 in 2005. In thatsame period, premiums have risen by 73percent. Americans who want to be insuredbut aren’t can usually be found working forsmall firms that simply can’t afford the cost ofhealth insurance.

If Fair Share were a legitimate attempt toprovide employer-based coverage for unin-sured workers, the proposal would be aimedat small firms, a ridiculous solution that isneither politically palatable nor economicallyfeasible.

In 2005, the Florida Senate, unbeknownstto most of its members, actually enacted a FairShare law in the closing days of the sessionvia a stealth amendment offered to anotherbill by some of the chamber’s top Democrats.AIF lobbyists Guy Spearman and Keyna Cory

discovered the subterfuge and organized aneffort to get the amendment reconsidered anddefeated.

How thankful should we all be? Take alook at the impact Fair Share could have onMaryland’s economic climate.

Because of Big Labor’s victory, Wal-Mart isreconsidering plans to build a distributioncenter in one of the state’s poorest communi-ties. Fair Share simply could make the projecttoo much of a financial risk. Wal-Mart’s pullout would eliminate 800 potential jobs in arural area where per capita personal incomeis 46 percent below the average.

Unless that’s what you want for Florida,tell your senator and representative to rejectFair Share.


(continued from page 3)

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