State Capitol Briefs - Monday, April 20, 2009

by The News Service of Florida

LEGISLATIVE BRIEFS

SALES TAX HOLIDAYS MAY RETURN

Florida residents would get the usual back-to-school time sales tax holiday and another sales tax holiday for hurricane preparedness items under legislation approved Monday in a House committee. An amendment approved in the House Finance and Tax Council would bring back the tax break for three days in August on clothing up to $50 and school supplies under $10. Hurricane supplies, such as batteries, flash lights, weather radios, coolers and generators, would be tax free for three days in June under the legislation. The provisions were included in the council's catch-all tax bill that it approved on Monday, along with a few other tax breaks, including a limit on how much yacht and plane buyers pay in sales tax. The bill also repeals a sales tax exemption for memberships at hospital-owned health clubs, and one on magazine subscriptions. Also gone under the House bill is the poster child for strange sales tax exemptions. Under the measure, the move to repeal the tax exemption on ostrich feed, unlike the flightless bird that eats it, may finally be getting off the ground.

WATER TAXES REJECTED BY HOUSE COUNCIL

{sidebar id=1}Efforts to put taxes on bottled water and water extraction in a sales tax bill in the House were defeated Monday in the House Finance and Tax Council. The panel, working through a large proposed committee bill on taxes and tax exemptions, rejected two amendments by Democrats aimed at bringing in more tax dollars by taxing water in two different ways. One shot down amendment would have made bottled water subject to sales tax. Rep. Jim Waldman, D-Coconut Creek, agreed that water is a necessity and the state shouldn't tax necessities, but said bottled water wasn't a necessity because of the availability of safe, clean tap water. But Republicans said water is water, and simply shouldn't be taxed before voting down the amendment. Rep. Perry Thurston, D-Plantation, then tried to amend to the bill a tax on the extraction of water. Rep. Scott Randolph, D-Orlando, argued that water for bottled water companies is the only extracted mineral not taxed. “You pull up phosphate....you pay a severance tax,” said Randolph. “You pull up oil out of the ground, you pay a severance tax.” Republicans countered that most of the bottled water stays in Florida and therefore is for Floridians, and that the companies pay rates to water utilities and help subsidize water service for residential customers. Rep. Tom Grady, R-Naples, argued that the businesses wouldn't end up paying the tax anyway. “Ultimately, the consumers of water would pay this tax,” said Grady before the panel rejected that amendment as well.

KIDCARE BILL GOES TO SENATE FLOOR

A measure advocates say will provide critical health care to children who already qualify for it, heads to the Senate floor after it was quickly approved by a Senate panel on Monday. SB 918 makes a number of changes to the current delivery of KidCare, the state-backed health insurance program for low-income children. The measure reduces the time a family must wait for coverage from six months to 60 days if they voluntarily drop their private coverage and allows employed families to qualify if their private insurance premiums exceed 5 percent of their income. It also reduces the “penalty time" from 60 days to 30 days for non-payment of premiums. By making the changes and setting aside about $4.4million state funds, state officials can draw down more than $10 million in federal funds to pay for the additional children covered under the plan. Backers say the measure does not expand the program but makes it easier for those children who already qualify. “We believe that this bill will allow us to draw down as many federal dollars as possible to enroll as many children as possible,” said Sen. Nan Rich, D-Weston.

BAN ON EMERGENCY RESPONSE FEES UNANIMOUSLY APPROVED BY SEN PANEL

A measure that would prevent local governments from charging emergency response fees to motorists who are in accidents sailed through the Senate Finance and Tax Committee Monday. The measure (SB 2282)  is in response to several local governments having begun charging such fees in the last couple years. “The fees are largely in response to reductions in property taxes,” at the local level, said Scott Dudley, a lobbyist for the Florida League of Cities. But Sen. Mike Bennett, said the fees amounted to charging people for government services they think they're already taxed for. “Talk about adding insult to injury,” said Bennett, R-Bradenton. “I do believe that's the reason we pay property taxes.” Fire department officials spoke against the the bill, as did a representative of Fire Recovery USA, a company that helps local governments collect such fees. The company's lobbyist, Joe Arnall, said the issue was one of home rule, and that lawmakers at the state level don't always know what local communities need to deliver services.

WORKERS' COMP BILL ADVANCES

A controversial workers’ compensation bill (SB 2072) passed a key Senate committee on Monday with interested parties and the bill’s sponsor saying it has yet to satisfy anyone with the possible and notable exception of the Florida trial bar. Following a series of amendments including one to benefit firefighters and first responders exposed to toxic substances, Sen. Garrett Richter, R-Naples, said he would continue to work on the measure but allowed the bill to reach the floor. Originally designed to settle a legal dispute between trial attorneys and business over fees, the measure has taken on a life of its own. During its last committee stop the bill was amended to allow higher fees for attorneys by removing hard caps.  A 6.4 percent increase went into effect April 1 and state regulators have approved another 18 percent hike over the next two years. Tami Perdue, general counsel for Associated Industries of Florida, spoke against the bill as written saying recent changes will end up costing business owners even more. “We believe it increases those increases even more than they are going to be increased,” Perdue said. Richter acknowledged the angst surrounding the bill. “There are a number of moving parts in this and I have an interest with moving this bill forward,” Richter said.

LOCAL OPTION SALES TAX FOR FIREFIGHTERS CLEARS HOUSE F&T

A bill that would let voters approve a penny sales tax increase with a corresponding drop in property taxes to pay for fire and rescue was approved Monday in a House committee. The bill (HB 365), sponsored by Rep. Ed Hooper, R-Clearwater, is meant to shift some of the burden for paying for fire services from home owners to sales tax payers, which will shift some of that burden to tourists. It also serves to protect fire departments from possible property tax cuts, or drops in property tax collections because of lower property values. The legislation was approved Monday by the House Finance and Tax Council.

RED LIGHT MEASURE NOW WOULD PUT MONEY INTO STATE TRANSPORTATION FUND

{sidebar id=1}A bill that would clarify that local communities could put up cameras to catch red light runners – and allow them on state roads - was amended Monday to shift some of the money garnered from the tickets to the state. Cities have been pushing for the bill (HB 439) because they want the ability to use red light cameras. Some communities already have the cameras, but a state attorney general's opinion has said that while the communities can have them to monitor intersections they can't issue state-recognized traffic citations based on the pictures. Cities currently using them have been adopting local ordinances and essentially treating red light running as a civil infraction, like a parking meter violation. The state also doesn't allow them on state roads. But the measure may now lose some of its support from local governments with the addition of a provision in the House Finance and Tax Council on Monday. That change shifts $30 of every ticket written to a driver caught by a camera to the state's transportation trust fund. It's not clear exactly how much that might be – because it would depend on how many cameras go up and how many red light runners they catch, but the bill's sponsor, Rep. Ron Reagan, R-Bradenton, said it might be around $100 million. Cities have been criticized by some lawmakers for wanting the red light cameras, with a number of legislators saying they felt the cities were essentially just trying to raise additional revenue on the backs of drivers who barely miss a short yellow light. But now, some of that money would go to the state under the bill, even though cities still would be the ones buying the cameras and enforcing the law. It was the last House committee stop for the bill, sending it to the floor. The Senate version of the legislation (SB 2400) is on the agenda for the Ways and Means Committee for Tuesday.

STATE VERSION OF LOW-INCOME INVESTMENT INCENTIVE MOVES IN SENATE

A bill (SB 1502) that would create a Florida credit against corporate income and premium taxes for companies that make certain investments in low income communities was approved Monday in a Senate committee. The measure would create the Florida New Markets project, which backers say would allow investors to get back nearly 40 cents on the dolar as a state tax credit – which would piggy back on an existing federal tax credit. The bill would cost the state up to $20 million a year eventually in lost revenue, but is seen as a way to boost the economy in certain low income areas. The money must go to qualified community development entitites, which then provide loans or capitalization for projects in impoverished areas. The bill, sponsored by Sen. Mike Fasano, R-New Port Richey, was approved 5-0 in Finance and Tax and is expected to be heard Tuesday afternoon in Ways and Means.

TOBACCO APPEAL BOND LIMIT STALLS IN TOO BUSY HOUSE COMMITTEE

A bill that would limit how much the tobacco industry must put up as a bond as it appeals what could be thousands of verdicts against it in Florida stalled Monday in a House committee. The large tobacco companies are facing the prospect of potentially millions in losses from claims filed by about 9,000 smokers in the state. The smokers initially won a class-action suit against the industry, but the Florida Supreme Court decertified the class, throwing out a $145 billion verdict against the industry, but allowing plaintiffs to sue individually with some of the court's findings remaining intact. Losing parties in lawsuits must put forward a bond while they appeal a case. In 2000, the Legislature limited what the had to put up as a bond while it appealed to $100 million. A proposed committee bill (PCB FTC 09-01) that was before the House Finance and Tax Council on Monday would apply the same $100 million bond limit for the industry as a total in appealing verdicts against the industry in cases brought by individual plaintiffs. It would apportion the cap between manufacturers based mainly on their pro rata share of settlement payments. The bill would have the bond posted with the Supreme Court, which could then use the interest on the bond. The Legislature's interest is in protecting the tobacco companies from bankruptcy, because that would preclude them from being able to pay into the state's settlement from its lawsuit against the industry. But the Finance and Tax Council on Monday wasn't able to resolve a myriad of questions about the proposal as the panel was running out of time. The committee may meet again Tuesday morning to continue its work.

OTHER BRIEFS

SILVER SLIPPER CLOSING DOORS

The legendary Silver Slipper restaurant in Tallahassee is closing its doors its owners said this weekend, shutting down an establishment where lobbyists and lawmakers have met since 1938. The “Slipper,” known for its private dining areas, was a favorite dining place for legislators and power brokers since not long after Pete Mouches opened the “dine and dance club” near the Capitol. Greek immigrant Jimmy Kalfas took over the restaurant in 1947, and it is still owned by his family. "Soon after I first came to Tallahassee in 1940 as political editor of The Miami Herald, I learned the Silver Slipper was the exclusive club for the movers and shakers of our political world,” the late Allen Morris, former House clerk, is quoted as saying on the restaurant's Web site. "There was a saying, an exaggeration of course, that some of the significant bills of a legislative session were first passed (or defeated) in one of the curtained rooms at the Slipper." The restaurant's Web site also tells the story of a visit by then Sen. John F. Kennedy. A few years before, his father, Ambassador Joseph Kennedy, had dined at the Slipper and wrote later to Kalfas jokingly, “if my son ever comes in there, don't serve him.” When the future president came, Kalfas kidded Kennedy about not being able to serve him, but eventually did. A spokesman for the restaurant told The Tallahassee Democrat, that the establishment might be able to re-open in the future.

This information originally published on April 20, 2009.

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mkwestmark

 

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