LTC 123-2013 Legislative Update m MIAMI B
OFFICE OF THE CITY MANAGER
NO. LTC # 123 -2013 LETTER TO COMMISSION
TO: Mayor Matti Herrera Bower and Me bers of th City Commission
FROM: Jimmy L. Morales, City Manager
DATE: April 12, 2013
SUBJECT: Legislative Update
The purpose of this LTC is to provide the Mayor and City Commission with the attached
update on week six 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
meantime, if you have any questions please do not hesitate to contact me.
JLM /K /kc�
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RUTLEDGE ECENL4
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: April 11, 2013
RE: 2013 Legislative Report, Week 6
Budget Issues
SHIP
SB 1852 and HB 7111 are the two vehicles moving through their respective chambers that will
allocate the money provided by the National Mortgage Settlement. At present, the House bill
contains no money for the SHIP program and $50 million for the SAIL program. The Senate bill
contains $70 million for the SHIP program and $65 million for the SAIL program. These bills
will likely be resolved during budget conferences.
Legislative Priorities
Elections
SB 600 passed the Senate Rules Committee this week amid opposition from Democrats, who
said in committee that the bill gives too much discretion to elections supervisors and urban
counties could technically choose to have only eight days of early voting, which could lead to
continued election problems. Senator Latvala responded to this criticism by saying he did not
believe this would happen. Senate Democrats have also argued that the Sunday before Election
Day should be a mandatory early voting day. The bill currently allows voting on the Sunday
before Election Day but does not require it. The companion, HB 7113, has passed the House and
is in Senate messages. This bill also allows the Sunday before Election Day but it is not
required. Both of the bills also allow for up to 14 days of early voting and allow more early
voting sites.
Pension Reform
SB 458 by Senator Ring and HB 1399 by Representative Rooney provide some flexibility in how
insurance premium taxes are used to pay for pension benefits. However, the process is very
complicated. Also, the bill now locks in police and fire pensions at 1999 benefit levels. The
League of Cities is strongly opposed to this bill. SB 458 passed the Senate this week after
several amendments. HB 1399 was on the House Appropriations agenda this week but was not
considered.
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 specify the assumptions and methods that are to be used to determine the information
submitted. The bills are 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. However, both the League of Cities and the unions oppose these bills. SB 534
passed the Senate this week after several amendments. HB 599 has passed its first committee
and has two committees remaining.
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Parking Meters
Department of Transportation (DOT) Secretary Ananth Prasad has indicated the DOT will seek a
study in lieu of other substantive provisions in the Transportation bill, SB 1132 by Senator
Brandes, and HB 7127 by the House Transportation and Highway Safety Subcommittee and
Representative Artiles. HB 7127 was amended with the language this week. The language does
not yet appear in SB 1132. The study will detail how much money is collected through parking
meters in Florida, where they are located, and for what purposes the money is currently used.
The study will be used as the basis for legislation next year.
Windstorm Insurance
SB 1770 received its second reading on the Senate floor this week and awaits a vote of the full
Senate. This bill is designed to return Citizens to its role as an insurer of last resort for
homeowners who cannot get coverage on the private market. The bill would ensure that
Citizens' rates are actuarially sound and not competitive with private insurers. Simmons said
that all Florida citizens, even those who are not Citizens customers, could end up paying a
"hurricane tax" if Citizens runs deficits while paying claims after a major hurricane.
However, Citizens released information this week indicated that homeowners could expect to see
rates rise as much as 60 to 70 percent, particularly in South Florida. HB 835 was initially the
companion, but SB 1770 does not have a clear companion at this point and there are several
pieces of legislation relating to Citizens on the House side. HB 835 does not contain several
provisions now found in SB 1770, such as the application of bad faith law to Citizens claims, an
allowance for homeowners to purchase partial sinkhole coverage, and a provision allowing
companies to receive Citizens' surplus money as loans as an incentive to take over its policies.
While some legislators want to take the approach that Senator Simmons is suggesting, other
legislators, particularly those from Miami -Dade County, are concerned that changes to Citizens
should not impact its residents negatively and rates should not be raised dramatically. Although
the Governor has long been a proponent of making Citizens more actuarially sound, the
Governor's Office has also recently expressed concerns about such dramatic rate increases.
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Other Legislative Issues
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Living Wage
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HB 655 by Representative Precourt; SB 726 by Senator Simmons
HB 655 preempts local governments from requiring employers to provide certain benefits. It
provides specifically that living wage ordinances will sunset in 2016. This bill is in Senate
messages.
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SB 726 contains a preemption relating to leave benefits but does not preempt living wage
ordinances.. The Senate bill initially contained additional provisions in state law that would
provide certain leave benefits to employees statewide. However, it has been amended to replace
those additional benefits with a .study group that would examine the issue and make
recommendations to the Legislature. This was done at Senator Latvala's request. SB 726 passed
its final committee this week but a committee reference to Senate Appropriations was added so
the bill is now in this committee. The Senate does appear inclined to address the living wage
issue and we are working to ensure that the Senate keeps the issue out of its bill.
Development Permits
HB 7019 by the House Economic Development and Tourism Subcommittee and Representative
Trujillo; SB 1840 by the Senate Military and Veterans Affairs, Space, and Domestic Security
These bills require local governments to require developers to receive all other permits prior to
granting a development permit in a mapped flood hazard area. DEM has asserted that the bills
are necessary to correct a glitch that was created by last year's environmental regulatory reform
bill, HB 503 by Representative Jimmy Patronis. However, City staff commented that this year's
bills put the burden on the local government as drafted, when the burden should be on the permit
applicant. We have made this concern known to House and Senate staff and the Department of
Emergency Management (DEM). We worked with DEM and House and Senate staff on an
amendment to correct the problem. The amendment was adopted onto both bills this week and
they no longer contain any problematic language. SB 1840 passed its first committee this week
and has one committee remaining. HB 7019 passed its only committee this week.
Local Preference
HB 307 by Representative Tobia; SB 684 by Senator Hays
Compare HB 1017 by Representative Fresen
HB 307 and SB 684 preempt local governments from providing local preference in contracting.
SB 684 was temporarily postponed in its second committee this week and still needs to pass
three committees. HB 307 passed its first committee and is not in the Local and Federal Affairs
Committee. It also still needs to pass three committees. HB 1017 provides for a state -level
preference for in -state companies. It does not have a companion.
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