Legislature: Governor Charlie Crist and Legislative Leaders Outline Priorities in Opening Day Speeches
March 2, 2010, the opening day of the 60-day 2010 regular session of the Florida Legislature, saw speeches from Gov. Charlie Crist, Senate President Jeff Atwater (R-North Palm Beach), and House Speaker Larry Cretul (R-Ocala), in which each of the leaders outlined his priorities for the session.
Gov. Crist, currently running in the Republican primary for U.S. Senate, used his final State of the State speech not only to set out near-term priorities, but also to defend his record. He urged legislators to approve a gaming compact with the Seminole Tribe of Florida, enact tougher ethical standards for members and staff of the Florida Public Service Commission, introduce new spending on biotech and green energy technologies, and increase spending on higher education.
The governor took the opportunity to defend his support of federal stimulus legislation in 2009, saying that he was merely assuring that Florida received its fair share of federal money. “Isn’t that more helpful to Floridians than engaging in hollow posturing that achieves nothing? This is what I mean by sticking to our core principles and not elevating ideology over real solutions.”
Senate President Atwater’s speech to his fellow senators emphasized the goals of stimulating business development, reforming education, and cracking down on fraud. He said that Florida’s top priority should be to stimulate business growth by eliminating barriers to entrepreneurship and streamlining regulation. Education reforms would include increased emphasis on math and science along with modifications to the class-size constitutional amendment originally adopted in 2002.
House Speaker Cretul focused on the budget shortfall, suggesting that some agencies may be reorganized, but that “we will not play accounting games like they do in Sacramento or Albany. We will balance our budget with the dollars we have.” He also urged legislators to “focus on ways to recharge Florida’s economy and put Floridians back to work.”
Taxation: Unemployment Tax Fix Becomes Law
Legislation suspending a dramatic unemployment compensation tax increase passed both houses of the Legislature and was signed into law on the opening day of the legislative session. The bill, CS/HB 7033, passed the House unanimously before noon and passed the Senate, also unanimously, four hours later. Gov. Crist signed the bill into law just before beginning his State of the State address that evening.
An unemployment tax fix was a top priority for business groups. The minimum unemployment tax rate was about to increase from $8.40 per employee to $100.30 per employee. Under the new law, the minimum rate will be $25.20 per employee. The maximum rate will remain $378 per employee.
The tax increases were triggered by shortfalls in the state unemployment compensation trust fund, which funds unemployment benefits. According to the House staff analysis of the new law, “this will result in greater borrowing from the federal government to pay benefits, more interest due to the federal government on that borrowing than under current law, and a delay in restoration of a positive fund balance.” According to the House sponsor of CS/HB 7033, the amount of borrowing could exceed $4 billion, with interest costs of $658 million.
Utility Regulation: Senate Passes Public Service Commission Ethics Bill
On March 3, 2010, the Senate passed a bill to toughen ethical restrictions on members and staff of the Florida Public Service Commission (PSC), CS/SB 1034 by Sen. Mike Fasano (R-New Port Richey), by a vote of 39-1.
The bill, a top priority for Senate leadership, would broaden prohibitions on ex parte communications with PSC commissioners or staff members and prohibit former commissioners and certain former staff members from lobbying the legislative or executive branches of Florida government for four years after leaving the PSC.
A House committee held a workshop on similar legislation, HB 565 by Rep. John Legg (R-Port Richey), on March 1, 2010.
Gaming: Prospects for a Seminole Gaming Compact Appear to Improve
House Select Committee on Seminole Indian Compact Review Chairman Rep. Bill Galvano (R-Bradenton) has acknowledged that he is engaged in direct negotiations with the Seminole Tribe of Florida regarding a gaming compact. “I think we’re willing to talk a different level than we have in the past,” Rep. Galvano said, describing the negotiation process of the last three years as “more the governor’s negotiation with a post-participation by the Legislature.” Sen. Mike Haridopolos (R-Melbourne), Senate President-Designate for the 2010 – 2012 biennium, also is participating in the talks.
Gov. Crist signed a gaming compact with the tribe in November 2007, but the Supreme Court of Florida voided that agreement because it had not been ratified by the Legislature. In August 2009, the governor and the tribe signed another compact and submitted it for legislative approval. The House select committee rejected the revised compact on January 14, 2010.
Reports indicate that negotiators are close to agreement on a plan that would generate approximately $150 million a year in revenue to the state, provided the tribal casinos retain the exclusive ability to operate blackjack and other banked card games. The state would apparently have some ability to rescind the tribe’s monopoly on blackjack, but at the cost of sharply reduced revenues from the tribal casinos.
Rep. Galvano said he was “optimistic” about resolving the issue. Seminole Tribe attorney Barry Richard also spoke positively about the negotiations, saying that “it’s the first time the House and Senate leadership is talking directly to us. If both sides can find neutral ground, we can make it work.”
Public Policy News Alert is part of our ongoing commitment to providing up-to-the-minute information about pressing concerns or industry issues affecting our clients and our colleagues. If you have any questions about this alert or would like to discuss these topics further, please contact your Foley attorney or any of the following individuals:
Marnie George
Tallahassee, Florida
850.513.3398
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Michael P. Harrell
Tallahassee, Florida
850.513.3373
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Robert H. Hosay
Tallahassee, Florida
850.513.3382
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Jonathan P. Kilman
Orlando, Florida
407.244.3256
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Thomas J. Maida
Tallahassee, Florida
850.513.3377
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Leonard E. Schulte
Tallahassee, Florida
850.513.3380
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Marnie George of The George Group assists Foley on a variety of government and public policy matters as a consultant.