LTC 104-2013 Legislative Update m MIAMI BEACH
OFFICE OF THE CITY MANAGER .
NO. LTC # 104 -2013 LETTER TO COMMISSION
TO: Mayor Matti Herrera Bower and Members of the.City Commission
FROM: Kathie G. Brooks, Interim City Man der /
DATE: March 29 2013
SUBJECT: Legislative Update
The purpose of this LTC is to provide the Mayor and City Commission with the attached
update on week four of the Florida Legislative Session.
The Administration will continue working with the City's representatives in support of the
legislative agenda, and will provide weekly updates via LTC during the Session. In the
meant! e, if you have any questions please do not hesitate to contact me.
KGB /' c
Attac ments:
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R UTLEDGE ECENIA
PROFESSIONAL ASSOCIATION
ATTORNEYS AND COUNSELORS AT LAW
MICHAEL J. BARRY MARSHA E. RULE
STEPHEN A. ECENIA POST OFFICE BOX 551, 32302 -0551 GARY R. RUTLEDGE
RICHARD M. ELLIS 119 SOUTH MONROE STREET, SUITE 202 MAGGIE M. SCHULTZ
DIANA FERGUSON TALLAHASSEE, FLORIDA 32301 -1841 GABRIEL F.V. WARREN
MARTIN P. McDONNELL ------ - - - - -- J. STEPHEN MENTON HAROLD F.X. PURNELL
R. DAVID PRESCOTT OF COUNSEL
TELEPHONE (850) 681 -6788 GOVERNMENTAL CONSULTANT
TELECOPIER (850) 681 -6515 JONATHAN M. COSTELLO
MEMORANDUM
To: Kevin Crowder
Via electronic mail
From: Gary Rutledge
Diana Ferguson
Jon Costello
Copy: Fausto Gomez
Bob Levy
Manny Reyes
Evan Power
Jose Diaz
Erica Chanti
Date: March 28, 2013
RE: 2013 Legislative Report, Week 4
Budget
SHIP
The Senate's initial proposal for the State Housing Initiatives Partnership (SHIP) is $70 million
from the Attorney General's mortgage litigation settlement. The House's initial proposal is to
zero fund SHIP. Representative Fasano is expected to file an amendment that would take $40
million from the Florida Housing Finance Corporation (FHFC) down payment assistance
program and move it to SHIP.
Water Projects
The Senate Appropriations Subcommittee on General Government released its water project list
this week, which totaled approximately $48 million. The Miami Beach water project was not on
the list. We met with the Chair who indicated that he wanted to provide funds for struggling
communities. The House will hear presentations on water projects on Monday and has $24
million allocated.
Critical Legislative Priorities
Business Tax Receipts
HB 7109 has received references and will be heard next in the Local and Federal Affairs
Committee if it receives another hearing. Because counties are currently limited to levying this
tax in the unincorporated area, the Florida Association of Counties and individual counties stand
in opposition. The Senate does not have immediate plans to address the local business tax. We
will continue to seek guidance from the City as this proposal develops further.
Legislative Priorities
Pension Reform
SB 534 by Senator Brandes and HB 599 by Representative Caldwell provide that the state is not
liable for shortfalls in local government retirement pensions and plans. They require defined
benefit systems or plans to report certain information to the Department of Management Services
and specifies the assumptions and methods that are to be used to determine the information
submitted. The bill is designed to eliminate discrepancies between the assumed rates of return
for earnings and the actual return on investments, and to mandate conservative projections on
future liabilities. SB 534 was placed on the agenda for the Senate Appropriations Committee
this week but the bill was not heard. HB 599 has passed its first committee and has two
committees remaining.
SB 458 by Senator Ring and HB 1399 by Representative Rooney generally require plan sponsors
to fund the plans at least at the level of benefits in existence on March 1, 1999. Plans less than
80% funded must use 50% of their post -2012 increase in premium. tax revenues, and
accumulated premium tax revenues, towards the actuarial deficiency; 25% must be used to fund
defined contribution benefits; and 25% must be used to fund base benefits. Plans funded at
greater than 80% must use 50% of the post -2012 increase in premium tax revenues for defined
contribution benefits, and 50% to fund base benefits. Plan benefits may be reduced to base
benefit levels; 25% of the plan sponsor's mandatory contribution freed up by reducing benefits
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must be used to fund actuarial deficiencies. SB 458 was placed on the agenda for the Senate
Appropriations Committee but the bill was not heard.
Windstorm Insurance
HB 433 by Representative Richardson creates an Inspector General for Citizens Property
Insurance Corporation. This bill passed its first committee this week and has two committees
remaining. The companion, SB 386 by Senator Abruzzo, has two committees but has not yet
been heard.
HB 1107 by Representative Hager relating to the Florida Hurricane Catastrophe Fund (CAT
Fund) passed the House Banking and Insurance Subcommittee this week. The bill reduces the
CAT Fund from $17 billion to $14 billion over three years. The bill would also change the
fund's name to the State Board of Administration Finance Corporation. The companion, SB
1262 by Senator Hays, has been temporarily postponed twice in the Senate Banking and
Insurance Committee.
Synthetic .Drugs
SB 294 by Senator Bradley and HB 619 by Representative Ingram would codify the Schedule I
scheduling of the substances listed in the Attorney General's emergency rule. Persons who
engage in certain unlawful acts involving these substances would be subject to arrest and
prosecution. SB 294 received its second reading on the Senate floor this week and now awaits a
final vote of the full Senate. HB 619 is on the House calendar on second reading.
2013 Session Dates
April 3 -4, 2013 Miami -Dade County Days
May 3, 2013 60 day — last day of Regular Session
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