News From the 2010 Florida Legislature

Below is information regarding bills that have an impact on the businesses of most MAF Members

The fourth week of the 2010 Legislative Session was a busy one, with most committees in the House and Senate putting on the full court press to hear as many bills as possible before the Easter-Passover holidays that will occur during the upcoming fifth week.

Last Friday, March 26, the Senate Judiciary Committee held a workshop and heard 23 bills including Senator Baker’s Construction Lien and Bond bill (CS/CS/SB 1048). Under the skillful leadership of Chairman Joe Negron (R-Palm City), the committee accomplished its lengthy agenda in less than the time allotted. Not so with the General Government Policy Committee chaired by Representative Schenck (R-Spring Hill), who for the second year in a row, refused to hear the companion bill (HB 693 by Representative Plakon).

During this final week of committee meetings in the House, Chairman Schenck scheduled two meetings and ultimately heard 19 member bills out of the 180 plus bills sitting in his committee. After much hammering and beating on Representative Schenck, industry representatives was simply told that he dislikes this bill that is very consumer, subcontractor, and supplier friendly.

Some items in Baker's bill may be added as amedments to other bills that are progressing.

Besides Lien and Bond legislation, there are other proposals to address lender responsibility when loans go into default and clarification of the direct purchase relationship between suppliers and tax exempt entities and will be working to find appropriate vehicles for these issues.

The Bigger Picture
Despite the grim budget realities legislators face this year, their work continues on the bigger statewide issues that affect us all. It was a tough week for the teacher’s unions who lost battles on merit pay, class size and school vouchers. Each of these measures moved a step or two closer to becoming reality.

CLASS SIZE – A proposed constitutional amendment (HJR 7039) to tweak the class size requirement in the constitution, freeze class size at its current level and allow some schools to go above the limit if the district-wide average is within current caps is now available for the House to take up on the floor. An identical measure (SJR 2) has already passed the Senate and is available for the House to take up.

MERIT PAY – This measure narrowly passed the Senate and would effectively end the long standing tradition of paying teachers based on years of service. Over the staunch opposition of Democrats and the state teachers’ union, the Senate approved SB 6, which would base teacher pay raises in part on the performance of their students, relying on standardized test results.

FLORIDA TAX CREDIT SCHOLARSHIP – SB 2126 and HB 1009 would expand the Florida Tax Credit Scholarship which gives businesses a tax credit in exchange for paying for a private tuition scholarship. The bill passed the full Senate this past week and is touted by Florida Tax Watch and others as increasing school choice and any costs of the tax credits being far offset by the reduction in public school students. The House Bill was heard this past week for the first time.

When the Legislature returns on Wednesday and Thursday of week five, the focus will be on THE BUDGET. With few exceptions, the House and Senate will meet in full Session to debate and pass their respective budgets and implementing bills.

The Senate budget is larger, totaling $68.6 billion. The House budget totals $67.2 billion. The difference is the Senate’s inclusion of $880 million in anticipated but not yet approved federal Medicaid funds and $435 million from the Seminole Gaming Compact which is yet uncertain. For construction, the House budget would deal another blow, sweeping $428 million from the State Transportation Trust Fund to shore up other areas of the budget. The Senate budget does not include monies from the Transportation Trust Fund, and so this will be up for negotiation. Members of The Construction Coalition testified this past week against this raid on transportation funding.

More Detail on Specific Bills -HB 693 by Plakon (R-Longwood) and SB 1048 by Baker (R-Eustis). As mentioned above, CS/CS/SB 1048 by Senator Carey Baker passed the Senate Judiciary Committee on Friday, March 26. The Committee adopted a “strike all” amendment that encompasses agreements we have made with the Clerks of Court, Florida Land Title Association and the industry. Work is being done by various parties including the House and Senate sponsors on a plan for passage of this legislation, despite the efforts of Committee Chair Robert Schenck to stop it in its tracks.

The bill, as amended, includes a two-page statement of owners rights and responsibilities, revises warnings on all notices that deliver a consistent message to owners, requires clerks to serve notices of contest by certified mail, requires full project information on demands, allows the use of global express guaranteed for oversees mailing and single claims of lien on multiple units and more.

State-Wide Crane Safety (HB 375/SB 1174): These bills adopt state-wide crane safety regulations and preempts local ordinances. Since the Federal Circuit Court of Appeal affirmed the permanent injunction against Miami-Dade’s Crane Ordinance, ABC is hopeful that a statewide regulation of building cranes in accordance with OSHA standards will be passed. The house bill has passed its first committee. The senate bill has not been heard.

NOTICE OF NONPAYMENT REVISIONS: HB 755 by Holder (R-Sarasota) and SB 878 by Thrasher (R-Jacksonville). These priority bills for the Florida AGC Council have not moved. Similar to our lien law bill, HB 755 was never heard in its first committee (also Schenck’s committee). Senator Thrasher has been true to his word and has not requested the Senate bill to be heard again. Unless it surfaces as an amendment, this proposal is dead for this Session.

COST & BENEFIT ANALYSIS LEGISLATION: HB 121 by Poppell and SB 1178 by Haridopolos. These bills did not move over the past week but are in a good position for passage if the House and Senate give them priority as session moves forward, especially since the Senate sponsor is the incoming Senate President. The bills are almost identical and give the Speaker and Senate President the ability to request special sessions of the revenue estimating conference on specific legislation where the benefit side of the proposal will be given more consideration in the final analysis.

LIFE OF THE MINE LEGISLATION: HB 617 by Bembry (D-Madison) and SB 1338 by Dean (R-Inverness). Although the House Bill sits on calendar, the Senate has yet to hear this legislation which would allow 30-year “Life of the Mine” permits for the limestone industry.

PROMPT PAY. HB 1157 by Eisnaugle (R- Orlando) and SB 1056 by Baker (R-Eustis).
These bills did not move this past week but are in reasonable shape for passage this year. The House Bill has one Council stop, and the Senate Bill has two committees to go. It appears that most of the objections raised by local governments at the hearings on March 17 have now been resolved, and we would expect to see the bills agendaed when we return from Easter break. These bills are priority for ABC, UUCF and have the full support of The Construction Coalition. They strengthen areas of the Local Government Prompt Payment Act which local governments continue to abuse, particularly who is responsible to accept payment requests and date stamp them received since the payment clock starts ticking from that receipt date.

OTHER INDUSTRY BILLS THAT HAVE BEEN HEARD

Immigration Reform-
One bill that did make it out of Representative Schenck’s committee during week four is one that wasn’t “being pushed” by the sponsor. CS/HB 219 by Representative Sandy Adams (R-Oviedo) is similar to bills which she has filed for numerous years now and requires any contractor working on state projects to comply with a Federal Work Authorization Program (E-verify) and to assure that all their subcontractors do the same. The bill also requires E-verify to be used before someone is allowed to collect lottery monies. The only possible similar bills in the Senate have received a large number of references, including one by Senator Baker that was referred to seven committees. You tell me – why was valuable committee time spent on this issue?

Building Codes-
SB 648 by Senator Mike Bennett (R-Bradenton) and CS/CS/HB 663 by Representative Aubuchon (R-Cape Coral) are the building code bills for Construction Coalition members this year. They contain language on product evaluation, elevators, home inspectors, alternative plan review and inspection, carbon monoxide detectors, rule adoption by the Florida Building Commission and a host of other code issues. CS/CS/HB 663 was heard in its last council this past week and now goes to the House Calendar. SB 648 was on the agenda for Senator Bennett’s own Community Affairs Committee, but they did not get to it. It has a total of five committee references, with three more to go, but we never underestimate Senator Bennett or the lobbyists working on these bills.

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 http://www.leg.state.fl.us/.