2009 Legislative Session Report
This year’s legislative session was dominated by the same issue that our families and businesses are facing every day – the deteriorating economy.
Unemployment and home foreclosures are at a historic high. One out of ten Floridians are on food stamps. Hundreds of thousands of families have lost their health insurance and the Medicaid rolls have swelled. Because economic activity has gone into reverse, state revenues have dropped by over $12 billion in 24 months.
Other large states – most recently California – have responded to similar conditions by continuing to spend money they don’t have, piling up enormous debts, and then, imploding in fiscal crisis and suddenly slashing essential services to the bone.
While the economic news is generally bad, the good news is that the State of Florida hasn’t followed the spend-and-bust policy. Though the issues were tough and the choices were hard, the Florida Legislature fulfilled its constitutional responsibility, cut non-essential spending, and balanced the budget. Though I did not agree with every decision made by the 2009 Legislature, the House and Senate did pass key bills which, in my view, will help make our state a better place to live, work, and raise families.
CONSTITUTIONAL AMENDMENTS
I joined in proposing three amendments to the State Constitution. These amendments were adopted by the Legislature and now must be approved by 60 percent of voters at the November 2010, general election.
Repeal of “Welfare for Politicians” Campaign Financing
HJR 81/SB 566 (Senators Haridopolos, Gaetz, Oelrich and Dean; Representative Hays)
This proposed amendment to the Constitution would repeal an existing constitutional provision which requires the Legislature to provide a level of public tax dollars to support the state-wide campaigns of candidates for Governor, Attorney General, Chief Financial Officer, and Commissioner of Agriculture. If passed, this amendment would save taxpayers over $10 million a year.
Limit on Tax Increases for Non-Homestead Property;
Tax Incentive for First-time Homebuyers
CS/SJR 532 (Senators Lynn, Gaetz and Altman)
This joint resolution proposes an amendment to the Constitution to provide with the exception of school district levies, the annual maximum assessment change on non-homestead residential real property is reduced from 10 percent to 5 percent of the assessment for the previous year.
The joint resolution further proposes to direct the Legislature to establish a tax incentive for first-time homebuyers. Persons who have not owned a principal residence during the preceding eight years would receive an exemption equal to 25 percent of the just value of their new home (limited to $100,000).
The exemption is reduced each subsequent year by an amount equal to 20 percent of the initial exemption as the owner’s Save Our Homes exemption provides an increasing benefit. This “first time homebuyers’ incentive” exemption applies to all levies, including school district taxes.
Homestead Tax Credit for Deployed Military
CS/HJR 833/SJR 1302 (Senators Gardiner, Gaetz, Deutch, and Baker; Rep. Horner et al)
This joint resolution proposes a constitutional amendment that would allow active duty uniformed military to be exempt from property taxes, including school taxes, during those days in a year in which they are deployed outside the United States.
STATUATORY CHANGES
Each year some 3,000 bills are introduced in the Florida Legislature. This year, 203 “general bills” were passed. I sponsored or co-sponsored twenty substantive bills – along with numerous amendments – which my colleagues in the House and Senate voted to adopt. Here are summaries of several key bills. To learn about every bill I sponsored and co-sponsored, go to www.flsenate.gov and click on my web page.
“Protection of Florida Military Bases and Missions”
HB 7123/SB 2322 (Senators Gaetz, Peaden and Haridopolos; Representative Murzin)
This legislation makes protection of Florida’s military bases and missions a top priority of the state. Northwest Florida’s economy is underpinned by our military bases and related industries. There are 21 bases scattered throughout Florida with a positive economic impact exceeding $60 billion. The military presence is the third largest driver of the state’s economy. The new administration in Washington is considering downsizing the military, which would affect the missions and bases in our area and other communities in Florida.
This legislation establishes the Florida Council on Military Base and Mission Support, comprised of nine unpaid members – three each appointed by the Governor, Senate President and Speaker of the House. The Council’s mission is to use the full authority and necessary resources of the state government to preserve and strengthen the military presence, coordinate base support activities of communities that host military missions, and advocate for our bases and their economic and national security benefits at the federal level.
“The Deputy Anthony Forgione Act ”
SB 456/HB 535 (Senator Gaetz; Representative Drake)
Named for the Okaloosa County sheriff’s deputy killed while trying to recover a mental patient who had escaped from a hospital, this bill requires law enforcement and health care facilities to develop and follow clear procedures for transporting, receiving, securing and treating Baker Act patients.
“Stopping Medicaid Fraud and Abuse”
SB 1986 (Senators Gaetz and Peaden; Representative Homan)
Federal and state investigators estimate that taxpayers lose hundreds of millions of dollars in Miami/Dade County alone due to abuse of publicly funded health care programs. As Chairman of the Senate Health Regulation Committee, I worked closely with the Attorney General and health officials to develop the one of the nation’s toughest laws against Medicaid fraud.
This legislation gives law enforcement and state regulators new and effective tools to identify, investigate, put out of business, prosecute and recover funds from those who are ripping off Medicaid. The bill targets kickbacks, unnecessary care and equipment, overpayments, unqualified and questionable providers and gross over-utilization of services. The bill also rewards whistleblowers and allows the state to recover funds improperly paid. Special anti-fraud initiatives are established in Miami/Dade.
In addition, this landmark legislation requires the state to design more effective methods for Medicaid patients to receive care through “medical homes” – collaborations between medical schools and federally qualified community health centers.
“ Local Authority for State University Governance”
SB 234/HB 489 (Senator Gaetz; Representative Coley)
Passing unanimously in both houses of the Legislature, this bill ensures that university boards of trustees have the authority to select, terminate, establish contracts and performance expectations for university presidents. The bill was strongly supported by citizens who serve as trustees of our state universities in order to promote more local control of university governance.
“Stopping Taxpayer-funded political advertising”
SB 216/HB 591 (Senators Justice and Gaetz; Representative Long)
Local governments in Florida, including in our own area, have used taxpayer dollars to purchase political advertising in an attempt to convince voters to approve tax increases or charter amendments. This bill allows individual officeholders to advocate any position but forbids taxing authorities from using public money to buy advertising to influence votes.
“ Charter School Reform and Accountability”
SB 278/HB 1005 (Senator Gaetz; Representative Nelson)
Charter schools have provided choice, competition and innovation in public education. But, as the charter movement became an industry, unscrupulous operators in some schools have diverted money meant for instruction to personal use, exorbitant salaries, hiring unqualified relatives, and other improper business practices. Half of the state’s charter schools aren’t graded by the Department of Education, leaving parents and communities without knowledge of the academic performance of the institutions.
This bill establishes standards of conduct for charter operators, requires monthly financial statements open to the public, provides technical help for groups organizing charter schools and allows the Commissioner of Education to intervene when charters are at financial risk. The legislation also prohibits nepotism in employment and promotion, prohibits less-than-arms-length financial transactions among charter board members and administrators, and ensures that parents will receive timely and reliable information about their children’s progress.
“ Low Income Pool/Unreimbursed Health Care”
SB 556/HB 285 (Senators Gaetz, Haridopolos and others; Representative Patronis)
Previously, a small group of lobbyists and self-interested parties were authorized by law to design the system by which over a billion dollars are distributed to Florida hospitals for the care of uninsured patients. This bill removes contract lobbyists from the Low Income Pool Council, adds members who represent the public and medical profession, and establishes the Secretary of the Agency for Health Care Administration or her designee as the head of the council. The impact of this legislation is to open the process to public scrutiny, ensure that distribution of these funds is not under the control of lobbyists and ultimately promotes a fairer method of providing care to Floridians without health insurance.
“ Access to Dental Care”
SB 702/HB 185 (Senator Gaetz; Representative Hudson)
This bill guarantees competition and choice in certain dental managed care plans and provides regulatory flexibility to retired dentists, military dentists and other practitioners who provide services without compensation to patients who cannot afford care. The bill was strongly supported by the Florida Dental Association.
"Economic Development Projects and Expedited Permitting"
SB 852/ HB 73 (Senators Fasano and Gaetz, Representative Schenck)
Under this bill, the Department of Environmental Protection (DEP) and water management districts are required to expedite permits within 45 days instead of the protracted management time periods which now can stretch for a year or more. Expedited permits are for businesses identified by a local government as a target industry that will create jobs and promote economic activity. A mandatory pre-application process is also enacted to reduce permitting conflicts.
"Presumption of Correctness and Tax Assessment Challenges"
SB 1006/ HB 521 (Senators Fasano and Gaetz; Representative Lopez-Cantera)
Under previous law, a citizen in a dispute with a county property appraiser was presumed to be wrong and the property appraiser presumed to be correct. This unequal playing field has frustrated property owners attempting to appeal improper or inaccurate assessments before Value Adjustment Boards. This legislation allows the taxpayer to overcome the "presumption of correctness" and, by a majority of evidence, prove that an assessment is wrong or unjust.
"Fast Track Economic Stimulus for Small Business"
SB 1502/ HB 485 (Senators Fasano and Gaetz; Representative Weatherford)
This bill creates a state tax credit for qualified investments in Florida low-income communities. The legislation makes Florida eligible to participate in the federal New Markets Development Program in which private investment dollars create targeted jobs that pay wages of at least 115 percent of the federal poverty level. In return for the private investments, the federal government and state provide tax credits.
"Florida Homebuyer Opportunity Program"
Amendment by Senators Fasano and Gaetz to General Appropriation Bill
This program provides first-time homebuyers with an $8,000 down payment assistance. Under this home ownership incentive program, the state advances the money and, once the buyer purchases their first home, the federal government repays the loan. The Fasano/ Gaetz amendment appropriated $30 million for this revolving loan fund, thereby helping 12,000 Florida families pay all or part of their down payment on their first homes.
“Double, Triple and Quadruple Dipping by Public Employees”
SB 1182/HB 479 (Senators Fasano, Gaetz and others; Representative Schenck)
Unintended loopholes in the state retirement system have allowed highly paid public officials and administrative employees to abuse the Deferred Retirement Option Program (DROP). These officials have agreed on a mandatory retirement date, accepted a large lump sum retirement payment, begun to receive taxpayer funded pensions and then, 30 days later, arrange to be rehired at the same job for the same or more pay, keep their DROP bonuses and re-accrue a second pension on the same job. I wish the final product in this bill could have been stronger, but the Legislature did agree to prohibit many of these abuses for individuals who have not yet retired. The bill does not repeal DROP, but will save community colleges, universities, local governments and the state millions of dollars in “loophole payments.”
“Community Renewal Act”
SB 360 (Senators Bennett, Gaetz and others)
This legislation is a work product of the Senate Select Committee on the Economy, which I chair. It repeals transportation concurrency requirements in communities with a population density of 1,000 or more per square mile and a total population of 5,000 or more. These requirements, imposed during Florida’s boom years, are now stopping economic activity our state needs in order to retain and add jobs.
The bill also promotes affordable housing, allows reduction or elimination of impact fees by local governments, and encourages in-town development as opposed to rural sprawl. One result of the bill in our area is to allow Sacred Heart Hospital in Pensacola to proceed with a regional children’s hospital, providing advanced care to very ill children and creating 2,000 new well-paying jobs for Northwest Florida.
“Consumer Options in Telecommunications”
SB 2626/HB 1465 (Senators Haridopolos and Gaetz; Representative Weatherford)
This bill increases the income limit for Lifeline, which is a free phone service for low income citizens – thereby allowing 50,000 more elderly Floridians to obtain phone services. The bill reduces the cap under which phone companies need Public Service Commission approval to raise or reduce rates. With this legislation, phone companies can increase rates by no more than 10 percent without PSC approval. In the past, the cap was 20 percent.
“Consumer Choice in Payment of Health Benefits”
SB 1122/HB 855 (Senator Gaetz and others; Representative Llorente)
Previously, a Preferred Provider Organization (PPO) could refuse to honor a patient’s decision to assign payment for health services to his physician or other practitioner. This practice led to doctors not getting paid and patients being forced to deal directly with insurance companies to justify and get reimbursed for health services. The bill allows a patient to decide for himself whether to assign payment to the doctor or hospital providing the care, whether or not the provider is a member of the PPO network. The bill does not increase or decrease the amount of money paid by an insurer to a provider.
Although a straightforward pro-consumer proposal, this initiative has been relentlessly opposed by one of the state’s large insurance companies. The bill is widely supported by health groups, physicians, hospitals, substance abuse facilities, and others who provide care.
“ Supporting Self-Insurance Funds for Electric Cooperatives”
HB 845/SB 1138 (Senator Gaetz; Representative Drake)
This legislation eliminated duplicative reporting and regulatory requirements on rural electric cooperatives in the state. The result is more than a $100,000 savings to electric cooperative customers.
“ Streamlining and Simplifying Professional Regulation”
SB 2262/HB 425 (Senator Gaetz; Representative Plakon)
This legislation makes it easier for individuals to begin a business and remain in business in our state. The bill streamlines paperwork, eliminates unnecessary application requirements, removes obsolete licenses, and substantially expands computer-based testing for professions and occupations – thereby reducing cost and inconvenience for citizens.
Further, this bill redirects existing industry-paid fees toward professional “school-to-career” educational programs and eliminates duplication of food service training by the state and private companies – thereby saving money and promoting better and more sanitary service in the hospitality industry. The bill also requires local officials to impose penalties on those who misrepresent to the public that they are licensed or insured.
For more information about this or any other issue, please contact Senator Don Gaetz, by e-mail, by letter, 217 Miracle Strip Parkway, SE, Ft. Walton Beach, FL 32548 or call 1-866-450-4DON toll free from anywhere in Florida.
