If you're looking for the recovery, maybe you should just follow that new pick up truck.
Pickups are a kind of rugged indicator of the nation's financial health. When times are good, contractors buy more of them to carry tools around for landscaping and lumber to build homes. Weekend haulers also gravitate to them even though cars get better mileage.
Lately sales have started shifting into a higher gear. Americans bought 151,000 pickups last month, 19 percent more than a year ago. Sales of full-size pickups, especially popular among contractors and builders, grew even fasterPickups are a kind of rugged indicator of the nation's financial health. When times are good, contractors buy more of them to carry tools around for landscaping and lumber to build homes.
http://www.floridatoday.com/article/20100615/BUSINESS/6150309/1003/Pickup-sales-can-signal-recovery
Tuesday, June 15, 2010
Sunday, April 25, 2010
It's All About Charlie
Charlie Crist was a lame duck. Boxed in. Irrelevant.
But now, with bold use of the veto pen and bold campaigning, Crist has estranged fellow Republicans and become a force to be feared in the Capitol.
His newfound aggressiveness -- rooted in his own political survival -- is leaving its mark on legislation that touches the lives of every Floridian: schoolchildren and teachers, homeowners, anyone who pays an electricity bill, and the growing ranks of Florida's poor.
Just a word of ``concern'' from Crist's lips is enough to put a major bill like the House's Medicaid reform effort in jeopardy. His overt threat to veto a property-insurance bill Wednesday resulted in the House shelving the bill. Some lawmakers fear he might even veto the entire $69-plus billion budget if it doesn't suit his tastes.
``Maybe they were surprised by the fact that I take the job of governor very, very seriously,'' Crist said. ``And when there's a time to exercise the authority and the trust people put in you, you need to do it. And I'm going to keep doing it.''
The legislative session ends next Friday and the atmosphere is hostile, a sharp contrast to last year. Heading into this session, Crist's agenda and budget were written off by legislators. The governor was expected to veer to the right.
Instead, Crist vetoed education legislation, which has heightened the likelihood that the Governor is positioning himself to leave the GOP primary, if not the party itself.
To starve Crist of headline-grabbing vetoes, Republican legislators are dialing back some of their more controversial measures and offering an olive branch or two.
Senator J.D. Alexander said he's prepared to come back and write another budget if the governor rejects it. If the governor vetoes the budget, that would prompt a special lawmaking session, raise Crist's profile and antagonize the Legislature all the more.
http://www.miamiherald.com/2010/04/21/1591611/crist-wields-new-power-in-final.html
But now, with bold use of the veto pen and bold campaigning, Crist has estranged fellow Republicans and become a force to be feared in the Capitol.
His newfound aggressiveness -- rooted in his own political survival -- is leaving its mark on legislation that touches the lives of every Floridian: schoolchildren and teachers, homeowners, anyone who pays an electricity bill, and the growing ranks of Florida's poor.
Just a word of ``concern'' from Crist's lips is enough to put a major bill like the House's Medicaid reform effort in jeopardy. His overt threat to veto a property-insurance bill Wednesday resulted in the House shelving the bill. Some lawmakers fear he might even veto the entire $69-plus billion budget if it doesn't suit his tastes.
``Maybe they were surprised by the fact that I take the job of governor very, very seriously,'' Crist said. ``And when there's a time to exercise the authority and the trust people put in you, you need to do it. And I'm going to keep doing it.''
The legislative session ends next Friday and the atmosphere is hostile, a sharp contrast to last year. Heading into this session, Crist's agenda and budget were written off by legislators. The governor was expected to veer to the right.
Instead, Crist vetoed education legislation, which has heightened the likelihood that the Governor is positioning himself to leave the GOP primary, if not the party itself.
To starve Crist of headline-grabbing vetoes, Republican legislators are dialing back some of their more controversial measures and offering an olive branch or two.
Senator J.D. Alexander said he's prepared to come back and write another budget if the governor rejects it. If the governor vetoes the budget, that would prompt a special lawmaking session, raise Crist's profile and antagonize the Legislature all the more.
http://www.miamiherald.com/2010/04/21/1591611/crist-wields-new-power-in-final.html
Tuesday, April 20, 2010
Another Good Sign for the Economy?
There is renewed hope that the worst of the housing market decline may be over as the rate of mortgage delinquency has declined forthe second straight month. The biggest drop came in the number of homes that are 30 days past due as the number decline to levels not seen since 2008.
Delinquency remains a major issue but at least there appears to be some progress and it certainly is not getting any worse The importance of this stability is hard to gauge as the nature of foreclosure has changed in the last several months.
The first round of foreclosures that triggered the recession came as the result of the collapse in speculative homes and the problems that cascaded as a result of too many people taking too many risks. The latest wave has been more traditional as these are the people who have been placed in jeopardy by the loss of their jobs.
Armada believes that the foreclosure peak has occurred and there is now a sense that conditions will steadily improvehrough the year.
There are also signs that consumer credit delinquencies are starting to reduce as well, which is great news. - From Armada Corporate Intelligence E News 4.20.10
Delinquency remains a major issue but at least there appears to be some progress and it certainly is not getting any worse The importance of this stability is hard to gauge as the nature of foreclosure has changed in the last several months.
The first round of foreclosures that triggered the recession came as the result of the collapse in speculative homes and the problems that cascaded as a result of too many people taking too many risks. The latest wave has been more traditional as these are the people who have been placed in jeopardy by the loss of their jobs.
Armada believes that the foreclosure peak has occurred and there is now a sense that conditions will steadily improvehrough the year.
There are also signs that consumer credit delinquencies are starting to reduce as well, which is great news. - From Armada Corporate Intelligence E News 4.20.10
Tuesday, April 13, 2010
Things Are getting a Little Testy in Tallahassee
2010 seems to have turned Florida politics upside down during the Spring Legislative Session. Some of the political posturing was expected in a year where the Governor, all members of the Florida Cabinet and key races for the U. S. Senate are in play. But, lines are being drawn as the relationship between the Governor and the Republican led legislature is a bit strained to put it mildly. Republicans are now favoring the ultra-conservative former House Speaker Marco Rubio in the race for the U. S. Senate over Governor Crist.
The Governor has already vetoed a top Republican legislative priority which would have reenacted special leadership fund accounts. When you look at the mounting evidence of impropriety being uncovered in the ongoing investigation of Republican Party funds, Crist had plenty of ammunition to back this veto. Governor Crist has to deal with the anger of the Republican leadership.
Now, the Governor has received SB 6 which would do away with tenured teacher positions and put all newly hired teachers on annual contracts. The bill also bases teacher salaries on student performance, as measured in large part on testing. The Governor has hinted that he may change his position on this legislation. He has until Friday, April 16 to act.
Other issues that will frame the work for the remaining three weeks of Session will be proposals relating to Medicaid which would increase a current pilot program to encompass 19 additional counties including Miami-Dade. Whether the House and Senate will move to approve the gambling compact that has been agreed to by their leaders; and of course, budget conference committees that will most likely begin meeting the week of April 12th.
Some Construction Related Issues
LIFE OF THE MINE LEGISLATION: HB 617 by Bembry (D-Madison) and SB 1338 by Dean (R-Inverness). This bill which grants 30 year permits for limestone mining still sits on the House calendar, with the Senate Bill never being heard. Industry has been told that the language will be amended to another Senate Bill. An attempt this past week to put it on a permitting bill, sponsored by Senator Altman (R-Melbourne), failed, and the amendment was withdrawn.
PREEMPTION OF LOCAL CRANE REGULATION. HB 375 by Evers (R-Milton) and SB 1174 by Altman (R-Melbourne). Despite the fact that the House Bill hasn’t moved since February, the Senate has decided to start moving this bill. It was heard this past week in its first committee and will be heard in the Senate Community Affairs Committee this coming week. It still has a long way to go to see success this year. ABC has been leading the way on this issue for several years.
SALE OF TAX EXEMPT CONSTRUCTION MATERIALS. The best news this week comes in the form of a proposal drafted by House Finance & Tax Committee Staff at the request of their Chairman Ellyn Bogdanoff (R-Fort Lauderdale). The proposal goes further than we could have hoped, and if enacted, could resolve the difficulties suppliers and contractors have had with direct purchase system for many years. The BIG QUESTION is whether or not the Revenue Estimating Conference (REC) will attach a fiscal impact to the proposal.
CONSTRUCTION LIENS & BONDS: HB 693 by Plakon (R-Longwood) and SB 1048 by Baker (R-Eustis). CS/CS/SB 1048 by Senator Carey Baker will be heard in its last Senate Committee, General Government Appropriations, on Tuesday, April 13, 2010. Amendments will be offered that remove all responsibility for the Department of Business & Professional Regulation to publish lien law information and also to fix section 4 of the bill regarding a single claim of lien which had raised controversy. The good news is that the Senate Bill has been heard in all committees, is on the calendar and is available for an amendment on the floor.
The bad news is that a plan to merge Rep. Plakon and Sen. Baker’s bills with DBPR’s bills this year in order to have a House Bill in play was thwarted late Thursday night when the Department’s Secretary and bill sponsor refused to accept the amendment.
PROMPT PAY. HB 1157 by Eisnaugle (R- Orlando) and SB 1056 by Baker (R-Eustis).
These bills strengthen the payment and attorneys fee provisions contained in the Local Government Prompt Payment Act. This has been a session-long battle and negotiation between the construction industry and local governments. Most of the issues have now been resolved and incorporated into the bills.
The Governor has already vetoed a top Republican legislative priority which would have reenacted special leadership fund accounts. When you look at the mounting evidence of impropriety being uncovered in the ongoing investigation of Republican Party funds, Crist had plenty of ammunition to back this veto. Governor Crist has to deal with the anger of the Republican leadership.
Now, the Governor has received SB 6 which would do away with tenured teacher positions and put all newly hired teachers on annual contracts. The bill also bases teacher salaries on student performance, as measured in large part on testing. The Governor has hinted that he may change his position on this legislation. He has until Friday, April 16 to act.
Other issues that will frame the work for the remaining three weeks of Session will be proposals relating to Medicaid which would increase a current pilot program to encompass 19 additional counties including Miami-Dade. Whether the House and Senate will move to approve the gambling compact that has been agreed to by their leaders; and of course, budget conference committees that will most likely begin meeting the week of April 12th.
Some Construction Related Issues
LIFE OF THE MINE LEGISLATION: HB 617 by Bembry (D-Madison) and SB 1338 by Dean (R-Inverness). This bill which grants 30 year permits for limestone mining still sits on the House calendar, with the Senate Bill never being heard. Industry has been told that the language will be amended to another Senate Bill. An attempt this past week to put it on a permitting bill, sponsored by Senator Altman (R-Melbourne), failed, and the amendment was withdrawn.
PREEMPTION OF LOCAL CRANE REGULATION. HB 375 by Evers (R-Milton) and SB 1174 by Altman (R-Melbourne). Despite the fact that the House Bill hasn’t moved since February, the Senate has decided to start moving this bill. It was heard this past week in its first committee and will be heard in the Senate Community Affairs Committee this coming week. It still has a long way to go to see success this year. ABC has been leading the way on this issue for several years.
SALE OF TAX EXEMPT CONSTRUCTION MATERIALS. The best news this week comes in the form of a proposal drafted by House Finance & Tax Committee Staff at the request of their Chairman Ellyn Bogdanoff (R-Fort Lauderdale). The proposal goes further than we could have hoped, and if enacted, could resolve the difficulties suppliers and contractors have had with direct purchase system for many years. The BIG QUESTION is whether or not the Revenue Estimating Conference (REC) will attach a fiscal impact to the proposal.
CONSTRUCTION LIENS & BONDS: HB 693 by Plakon (R-Longwood) and SB 1048 by Baker (R-Eustis). CS/CS/SB 1048 by Senator Carey Baker will be heard in its last Senate Committee, General Government Appropriations, on Tuesday, April 13, 2010. Amendments will be offered that remove all responsibility for the Department of Business & Professional Regulation to publish lien law information and also to fix section 4 of the bill regarding a single claim of lien which had raised controversy. The good news is that the Senate Bill has been heard in all committees, is on the calendar and is available for an amendment on the floor.
The bad news is that a plan to merge Rep. Plakon and Sen. Baker’s bills with DBPR’s bills this year in order to have a House Bill in play was thwarted late Thursday night when the Department’s Secretary and bill sponsor refused to accept the amendment.
PROMPT PAY. HB 1157 by Eisnaugle (R- Orlando) and SB 1056 by Baker (R-Eustis).
These bills strengthen the payment and attorneys fee provisions contained in the Local Government Prompt Payment Act. This has been a session-long battle and negotiation between the construction industry and local governments. Most of the issues have now been resolved and incorporated into the bills.
Wednesday, March 31, 2010
What's Holding Up Job Growth?
When workers become more efficient, it's normally a good thing. But lately, it has acted as a powerful brake on job creation. And the question of whether the recent surge in productivity has run its course is the key to whether job growth is finally poised to take off.
One of the great surprises of the economic downturn that began 27 months ago is this: Businesses are producing only 3 percent fewer goods and services than they were at the end of 2007, yet Americans are working nearly 10 percent fewer hours because of a mix of layoffs and cutbacks in the workweek.
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/30/AR2010033004091.html?referrer=emailarticle
One of the great surprises of the economic downturn that began 27 months ago is this: Businesses are producing only 3 percent fewer goods and services than they were at the end of 2007, yet Americans are working nearly 10 percent fewer hours because of a mix of layoffs and cutbacks in the workweek.
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/30/AR2010033004091.html?referrer=emailarticle
Monday, March 29, 2010
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/.
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/.
Tuesday, March 16, 2010
Business Credit Availability - Key to Economic Recovery
The conversation within the business community has started to shift and the pressure on the economy has started to shift with it. The question now is what it will take to get the economy growing enough to provide those jobs and get the consumer back into a spending mood.
Analysis: The primary issue as far as business is concerned has become the availability of credit.
Large corporations have not had to contend with this issue to the same degree as the small business person has. The big companies have been able to access the corporate bond market and the equity markets to some extent. But for the vast majority of small and medium size companies, these avenues for financing are not open to them. They rely on banks and the financing options provided by those who purchase their goods and service. By most accounts this money has become much harder to get due to the fact that banks and other lenders have entered a new phase of activity.
Lending has dropped by 7.4% in the last year, the steepest decline in loan activity for business registered since 1942. The amount of money that has been taken off the table is over $700 billion. This is more than twice the amount that the stimulus package has managed to put into the economy thus far. Even if the complete package had been pushed into the economy it would have only matched what the banks have taken out of the economy due to the new trend towards caution.
The key issue in all this is that the engine of employment in the US is small business. The estimates vary from one study to the next but the consensus view is that businesses that employ less than 100 people provided 45% of the new jobs since 1992. These are the very companies that are struggling to get access to credit now. The implication for the 8.3 million people looking for work is pretty apparent. If these companies can’t get money to expand they can’t meet new market demand and they can’t hire anybody. There are many reasons for the dearth of credit and it is true that as the economy improves the atmosphere for lending will improve, but not in the short term.
The first rationale for bank caution is that many are still licking their wounds from the collapse. These are the banks that became too exposed to the building boom or who were lending in communities that were the hardest hit by the recession. They have far too much in the way of non-performing loans and have to take steps to get their affairs in order. They are now risk averse and they have regulators breathing down their necks.
A second rationale is that banks are facing much stricter regulations in the future although today they don’t have a clue what these will amount to. In this atmosphere the banks have to assume the worst and they look at every piece of legislation and every new regulation as another requirement. The mood in Congress is overtly hostile and the regulatory authorities are trying to make up for their errors in the past by becoming far tougher and more aggressive. Even healthy banks have adopted a much more cautious position as they do not know what will be coming down the pike in the weeks and months ahead.
The third rationale is part of the Catch-22 of bank activity. The banks have become cautious and risk averse and they do not want to add more exposure to their already weakened balance sheets. They have no desire to lend to companies whose survival is at all in question and this means they will be taking a very hard line position on a company’s prospects.
If the company needs money to expand and meet competitive and market pressures to grow and survive, the bank is worried. But given that the bank loan is what is needed to address these expansion issue the business is trapped. It needs the money to show progress but it has to show progress before it can get the money. The banks are not willing to get engaged with companies where there is any risk at all of default. That slams the door shut on millions of businesses.
– ARMADA Corporate Intelligence March 12, 2010
Analysis: The primary issue as far as business is concerned has become the availability of credit.
Large corporations have not had to contend with this issue to the same degree as the small business person has. The big companies have been able to access the corporate bond market and the equity markets to some extent. But for the vast majority of small and medium size companies, these avenues for financing are not open to them. They rely on banks and the financing options provided by those who purchase their goods and service. By most accounts this money has become much harder to get due to the fact that banks and other lenders have entered a new phase of activity.
Lending has dropped by 7.4% in the last year, the steepest decline in loan activity for business registered since 1942. The amount of money that has been taken off the table is over $700 billion. This is more than twice the amount that the stimulus package has managed to put into the economy thus far. Even if the complete package had been pushed into the economy it would have only matched what the banks have taken out of the economy due to the new trend towards caution.
The key issue in all this is that the engine of employment in the US is small business. The estimates vary from one study to the next but the consensus view is that businesses that employ less than 100 people provided 45% of the new jobs since 1992. These are the very companies that are struggling to get access to credit now. The implication for the 8.3 million people looking for work is pretty apparent. If these companies can’t get money to expand they can’t meet new market demand and they can’t hire anybody. There are many reasons for the dearth of credit and it is true that as the economy improves the atmosphere for lending will improve, but not in the short term.
The first rationale for bank caution is that many are still licking their wounds from the collapse. These are the banks that became too exposed to the building boom or who were lending in communities that were the hardest hit by the recession. They have far too much in the way of non-performing loans and have to take steps to get their affairs in order. They are now risk averse and they have regulators breathing down their necks.
A second rationale is that banks are facing much stricter regulations in the future although today they don’t have a clue what these will amount to. In this atmosphere the banks have to assume the worst and they look at every piece of legislation and every new regulation as another requirement. The mood in Congress is overtly hostile and the regulatory authorities are trying to make up for their errors in the past by becoming far tougher and more aggressive. Even healthy banks have adopted a much more cautious position as they do not know what will be coming down the pike in the weeks and months ahead.
The third rationale is part of the Catch-22 of bank activity. The banks have become cautious and risk averse and they do not want to add more exposure to their already weakened balance sheets. They have no desire to lend to companies whose survival is at all in question and this means they will be taking a very hard line position on a company’s prospects.
If the company needs money to expand and meet competitive and market pressures to grow and survive, the bank is worried. But given that the bank loan is what is needed to address these expansion issue the business is trapped. It needs the money to show progress but it has to show progress before it can get the money. The banks are not willing to get engaged with companies where there is any risk at all of default. That slams the door shut on millions of businesses.
– ARMADA Corporate Intelligence March 12, 2010
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