Politics: Governor Charlie Crist Leaves Republican Party to Run for U.S. Senate as an Independent
On April 29, 2010, Gov. Crist announced that he would leave the Republican Party and run as an independent (technically, “no party affiliation”) candidate for the U.S. Senate. The governor’s action comes after several months of polling in which he consistently trailed his Republican primary opponent, former state House Speaker Marco Rubio (R-Miami), by more than 20 percentage points.
In his announcement speech, Gov. Crist said that “our political system is already broken. I am aware that after this speech ends, I don’t have either party helping me.”
In a press interview after his campaign kickoff, Gov. Crist was asked whether he would retain his Republican Party registration. He responded by saying, “No, I’m an independent. Why not? If you’re going to do it, do it.”
In response to questions about which party he would caucus with in the Senate if elected, Gov. Crist said he would caucus with “the people of Florida. I’ll caucus with anybody who will help the people of Florida.” Both of the Senate’s current Independent members, Joseph I. Lieberman of Connecticut and Bernard Sanders of Vermont, caucus with the Democrats.
Florida Republican officials reacted strongly to the governor’s announcement. Former Gov. Jeb Bush said, “This decision is not about policy or principles. It is about what he believes is in his political self-interest.”
State Senator and Republican Party of Florida Chair John Thrasher (R-St. Augustine) commented, “He’s been gone [from the party] for a long time in my opinion. I think this just makes it kind of official.” Sen. Thrasher also said that the governor’s portrait would be removed from party headquarters and put up for auction on eBay.
Some Republicans were more supportive of the governor’s decision. Former Party Chair Jim Greer said, “After facing political threats and intimidation by Republican leaders, Charlie Crist once again put the people of Florida first over partisan politics and the mean-spirited, vindictive demands of the current Florida GOP leadership.”
Sen. Mike Fasano (R-New Port Richey), one of Gov. Crist’s most loyal allies in the Legislature, said, “He cares about everyone in the State of Florida, not just Republicans. I wish we had more politicians like that.”
Mr. Rubio said that Gov. Crist and the Democratic candidate, U.S. Rep. Kendrick Meek (D-17th Congressional District), “share the same unhealthy appetite for more government, more spending, and higher taxes.”
Rep. Meek said that both Gov. Crist and Mr. Rubio “are architects of Florida’s failed economy, both favor more tax breaks for the wealthy and corporate special interests as their only economic proposal, and both are involved in the same income tax evasion scandal.”
On the same day that Gov. Crist announced his independent candidacy, another Democratic candidate entered the U.S. Senate race. Jeff Greene of Palm Beach, whose personal wealth exceeds $1 billion according to Forbes magazine, announced that he would run against Rep. Meek. He promised to limit campaign contributions to $100, adding “I’m not going to take a penny of special interest money.”
Another self-financed candidate, Republican Rick Scott of Naples, has begun running television advertising for his campaign for governor. Mr. Scott is challenging Attorney General Bill McCollum, who had a war chest of $3.9 million as of March 31, 2010. Newspapers have reported that Mr. Scott, who was previously CEO of Columbia/HCA and currently operates a group of urgent-care centers, has already spent $2 million on campaign advertising.
State Budget: Legislative Session Ends With Passage of $70.4-Billion Budget
The 2010 regular session of the Florida Legislature ended on April 30, 2010 with the passage of a $70.4-billion spending plan for the 2010 – 2011 fiscal year. The general appropriations bill passed the House on a largely party-line vote of 77 to 43 and passed the Senate by a vote of 33 to 4.
In general, the budget increased funding for education at all levels. The environment was another winner, with funding provided for Everglades restoration, land acquisition, beach restoration, and petroleum tank cleanup. Health care reimbursement rates were reduced, but some of the reductions could be mitigated if the state receives additional Medicaid funding from the federal government.
Funding sources included a $160-million “sweep” from the state transportation trust fund and $148 million from a housing trust fund.
It is not clear whether Gov. Crist will use his line-item veto power to veto specific budget items, as he has done in the past, or whether the newly independent governor will veto the entire budget, forcing a special session of the Legislature. Rep. Ron Saunders (D-Key West), who will serve as House Democratic Leader in the 2010 – 2012 biennium, predicted that the governor would veto the entire bill, saying, “He can legitimately veto it and say, ‘I’m doing it for the people. This isn’t the budget I recommended.’”
Gov. Crist said he would not decide on a veto until he receives a briefing from his budget director.
Executive Appointments: Full Senate Rejects Gov. Crist’s Public Service Commission Appointees, Approves His Health Care Administration Secretary
On April 27, 2010, the Florida Senate rejected Gov. Crist’s appointees to the Florida Public Service Commission (PSC). David Klement, who joined the PSC on an interim basis in October 2009 and started a full term in January 2010, was rejected by a vote of 17 to 21. Benjamin (Steve) Stevens, who also took office in January 2010, was rejected on a 14 to 23 vote.
Opposition to the governor’s appointees was in part a reaction to their statements that they would oppose raising utility rates during a recession, and in part a reaction to the lack of diversity on the commission. Several senators objected to Gov. Crist’s decision not to reappoint Matthew Carter, an African American, to the PSC.
Gov. Crist was highly critical of the Senate action, saying, “The people of Florida were delivered a terrible loss today when the Florida Senate sided with powerful utility companies.” He added that the two rejected commissioners “stood up for Floridians by blocking unjustified multi-million-dollar rate increases.”
The fate of the two appointees was in doubt after the Senate Ethics and Elections Committee ended its final meeting on April 20, 2010 without acting on their appointments. Senate President Jeff Atwater (R-North Palm Beach) decided to give the full chamber the opportunity to vote on the confirmations and said that senators were primarily concerned about the qualifications of Mr. Klement and Mr. Stevens, rather than political considerations.
In a separate action, on April 30, 2010, the full Senate unanimously voted to confirm Tom Arnold as Secretary of the Agency for Health Care Administration. The appointment of Mr. Arnold, who ran the state’s Medicaid program before being appointed secretary, had been rejected by the Senate Health Regulation Committee on April 13, 2010.
Insurance: Legislature Passes Property Insurance Bill Stripped of Controversial Issues
In the closing moments of the legislative session, the House and Senate passed a 99-page property insurance bill that avoided major controversies. The session began with many insurers seeking the ability to raise rates without regulatory approval, along with tighter restrictions on sinkhole claims and hurricane loss mitigation discounts.
As enacted, SB 2044 by Senate Banking and Insurance Chair Garrett Richter (R-Naples) avoided all three of those controversies. The final version of the bill included several issues that were priorities for the Office of Insurance Regulation, including increases in the minimum surplus required of property insurers, greater regulatory authority over managing general agents and other affiliates of property insurers, and an extension on the prohibition of “use and file” rates, under which insurers implement rate changes before obtaining regulatory approval.
The bill also includes restrictions on public adjusters that were a priority for property insurers. The bill restricts public adjusters’ ability to solicit business from policyholders, imposes a three-year deadline for hurricane claims, and sets limits on public adjusters’ commissions. The final version of the bill revises the process for establishing mitigation discounts to assure that the value of the discounts will not exceed an insurer’s expected reduction in hurricane losses, but the bill does not address fraudulent or erroneous mitigation inspections, which was another insurance industry priority.
In another last-minute action, the Legislature also passed SB 2176 by Sen. Durell Peaden (R-Crestview), which deregulates ratemaking for most forms of commercial property and casualty insurance.
Legislature: Several Major Reform Proposals Fail in Final Days of Legislative Session
A number of the Legislature’s more ambitious reform proposals fell apart as the 2010 session drew to an end. Among the more important were:
- Medicaid. The House and the Senate each proposed major Medicaid reforms. The Senate plan would have expanded the use of managed care, and the House plan would have required managed care for all Medicaid beneficiaries.
- PSC. Responding to controversies over ex parte communications between utility lobbyists and PSC members and staff, the Senate passed a strong ethics package for the PSC on the second day of the session. The House responded with a plan that would have transferred the bulk of the PSC regulatory staff to a new entity under the Legislature and moved the public counsel into the attorney general’s office.
- Renewable energy. A House plan that would have allowed utilities to recover up to $380 million in renewable energy costs was not taken up by the full Senate. However, the Legislature did pass other energy-related proposals, including a major recycling initiative and a plan to enable local governments to finance renewable energy projects.
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
[email protected]
Michael P. Harrell
Tallahassee, Florida
850.513.3373
[email protected]
Robert H. Hosay
Tallahassee, Florida
850.513.3382
[email protected]
Jonathan P. Kilman
Orlando, Florida
407.244.3256
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Thomas J. Maida
Tallahassee, Florida
850.513.3377
[email protected]
Leonard E. Schulte
Tallahassee, Florida
850.513.3380
[email protected]
Marnie George of The George Group assists Foley on a variety of government and public policy matters as a consultant.