2009 Legislative Session is Underway

Even though the 2010 Florida Legislative Session got off to a quick start when the legislators passed a measure to delay an unemployment compensation tax increase that could have crippled an economy trying to rise out of recession, some industry lobbyists seem to think there hasn’t been much interest in passing much of anything during the second week of session. Due to budget constraints so much time will be spent in April working on the Budget. Thus, bills that aren’t heard and passed out of some of their committee references by the end of March will have little chance of passage.

Speaking of the Budget, House Speaker Cretul last week issued a budget allocation plan. The Speaker listed "no new or increased fees or taxes" as the first of several principles he used to divvy up overall spending into 10 different budget categories. The allocation plan also includes $9 billion in state money for education. It appears significant cuts will be needed.
The House is also planning to keep $1 billion in reserves, compared to the $250 million that the Governor has recommended.

The amount of money that state lawmakers will have for road-building and other transportation projects is sinking a new forecast shows. State economists with the Office of Economic and Demographic Research released new estimates this week that conclude there will be $75.5 million less in the coming fiscal year in the state transportation trust fund than what was projected back in November. Furthermore, those figures show that the state will have close to $500 million less over the next five years.

The news could have big implications for the state’s five-year work plan for road building, which was already projected to decline by $1.6 billion between 2010 and 2015. Members of the Florida Transportation Commission warned on Monday that the state’s road-building fund was skirting dangerously close to a situation where there may not be enough money on hand to meet the state’s obligations. Currently, Florida has an average cash balance of only 1.5 percent of the total amount of projects it has pledged to build.

Here are some specific bills that are important to masonry contractors and suppliers alike:
CONSTRUCTION LIENS & BONDS: HB 693 by Plakon (R-Longwood) and SB 1048 by Baker (R-Eustis); SB 510 by Wise (R-Jacksonville) is a similar bill but does not contain the current provisions advocated by the ICPC.

SB 1048 passed out of the Senate Regulated Industries Committee the first week of Session, unanimously. It is now a Committee Substitute Bill incorporating numerous technical revisions. It was hoped Representative Robert Schenck, Chairman of the House Governmental Affairs Policy Committee, would agenda HB 693 for a hearing during the second week. Unfortunately, that did not happen.

The nuts and bolts of this good piece of proposed legislation creates a “General Statement of Owners Rights and Responsibilities Under Florida’s Construction Lien Law,” requires an owner to sign a receipt that they have received the information, and require the receipt to be filed with the building official when the permit is applied for. In addition, the bill implements measures that ensure construction bonds are recorded and placed on file with building officials, updates mailing provisions to include global express delivery, , resolves issues of single liens on multiple lots and units in a condo or other development, eliminates the automatic expiration of notices of commencement, eliminates two improper payment traps for owners, makes warnings consistent throughout the statute, requires demands to include sufficient information to identify the project, gives permit officials the ability to reject incomplete and illegible documents, and raises the exemption from notice requirements for small one-day projects.

NOTICE OF NONPAYMENT REVISIONS: HB 755 by Holder (R-Sarasota) and SB 878 by Thrasher (R-Jacksonville). These bills are a priority for the Florida AGC Council and would require a Notice of Nonpayment to be a sworn document accompanied by all documents evidencing the amount claimed including the claimant’s contract. The NACM-ICPC, Florida Surety Association, and others participated a week ago with AGC in a conference call to air the various objections and concerns with the bill. Subsequently, compromise language has been offered to AGC.

LIFE OF THE MINE LEGISLATION: HB 617 by Bembry (D-Madison) and SB 1338 by Dean (R-Inverness). Representative Bembry’s bill received its second hearing this past week in the House Natural Resources Appropriations Committee. The bill was amended again to remove a section of the bill relating to wetlands mitigation. The bill grants “Life of the Mine” permits to the limestone industry, but does allow local governments to impose additional restrictions and conditions. The Senate bill has not yet been heard.

The information above is based on the legislature’s activities through Tuesday March 9th.

AND DON’T FORGET AMENDMENT 4 (Hometown Democracy)
The defeat of Amendment 4 this November is the key to insuring that growth in Florida does not come to a dramatic halt. Although not a legislative issue, this issue could have the single most negative impact on Florida’s construction industry –– more than any other measure in our history. We need to keep it in the forefront of our minds as the November elections draw closer. Educate your friends, neighbors and employees. Donate if you or your company can to the campaign to fight Amendment 4 being spearheaded by Floridians for Smarter Growth, a coalition of Florida businesses, the Chamber of Commerce and many others. Visit the website at http://Florida2010.org. When considering local candidates, find out if they support or oppose Amendment 4.

We should learn from the experiment of St. Pete Beach where a local version of Amendment 4 passed in 2006. Putting all growth decisions in the hands of the voters has cost that town dearly in jobs, higher tax rates and endless litigation. Although they have since revoked their local ordinance, they are still trying recover from its devastating impact.

If you have specific questions regarding any of these issues, please let us know. If you would like copies of the most current draft of a bill or amendment, they are available at www.leg.state.fl.us. Always make sure to download the latest version of the bill, as committee substitutes are created after most committee amendments are adopted.

Wade