AIF Weekly Update From March 9, 2007
| Important Note: This “Weekly Brief” is a synopsis of the full report that is made available to AIF Members. The full report is much more comprehensive and detailed and covers additional issues important to the business community. If you are an AIF member and would like to view the full report, you can do so by going to the AIF “members only” website at fbnnet.com |
The first week of the 2007 session wrapped up with the Senate going home on Thursday night and the House Policy and Budget Council meeting on Friday, March 9th to discuss some proposals on property tax reform. More details on this meeting are including in this report. The Legislature also passed one of Governor Charlie Crist’s (R) top priorities, the “Anti-Murder Act.” Governor Crist had promised, on the campaign trail, that if elected he would pass this legislation within the first week of session.
AIF and its allies in the business community were kept busy this week fighting back an effort from the trial bar to undermine the repeal of Joint & Several liability, which passed thanks to extraordinary efforts last session. Legislation has been filed in the House and Senate that would revoke the Florida Supreme Court’s “Fabre” decision. This decision is essential in order for juries to fairly apportion fault.
Another contentious debate was held on the issue of initiative petition reform. Legislation has been filed which would establish clear guidelines and structure for individuals paid and unpaid who collect signatures for placing citizen initiatives on the ballot. The House version of this legislation also allows private property owners to dictate who can and cannot be on their premises collecting signatures, a provision strongly supported by the business community.
Legal Reform
The business community again finds itself gearing-up for a battle to defend the historic repeal of Joint and Several Liability. Representative Mitch Needelman (R-Melbourne) and Senator Jeremy Ring (D-Margate) have both filed bills (HB 733 and SB 1558) that would undo the repeal of this unfair legal doctrine. Known as the “Fabre Fix” the intent of this legislation is to limit the apportionment of fault to only the parties named in the civil proceeding. This is problematic because instead of naming all the parties involved in a case it would allow plaintiff attorneys to selectively chose which parties to go after – typically those with the deepest pockets.
On Wednesday, March 7th The House Constitution and Civil Law Committee took up HB 733 Relating to Apportionment of Damages by Representative Mitch Needelman (R-Melbourne). The bill was ultimately TP’ed (meaning that it was temporarily passed) after being amended because both committee members and representatives of the business community pointed out several inconsistencies with the language, mainly how to deal with parties that have immunity or cannot be found.
| AIF opposes HB 733 and its undoing of the “Fabre” decision. Fair distribution of fault cannot be achieved if a jury cannot consider the actions of all parties involved. We urge all AIF members to contact the Committee and express their opposition to this bill. |
Property Tax Reform
The House Policy and Budget Council spent over five hours on property tax reform on Friday, March 9th. The large meeting room in the Knott Office Building was full of governmental officials and business groups concerned with the House property tax plans. The Council discussed HB 7001 by the House Government Efficiency & Accountability Council and Representative Frank Attkisson (R-Kissimmee). This bill would limit local revenues and would be supplemented by an increase in the sales tax.
There are two parts to the discussion on rolling back property tax rates to 2001 levels, the statutory fix in the form of HB 7001 and then a proposed constitutional amendment, which will be offered by Representative. Stan Mayfield (R-Vero Beach). The Policy and Budget Council will take up these bills on March 16th for a final vote.
| At this time, AIF is reviewing all the property tax reform proposals being considered by the Legislature and we are working on developing alternative solutions in order to find the right combination of policy decisions that will reduce property taxes for businesses and citizens and at the same time protect the vital services provided by local governments. |
On Thursday, March 8th the Senate Committee on Finance & Tax also heard presentations on property tax. Chairman Mike Haridopolos (R-Melbourne) announced at the meeting that the Senate property tax reform proposal would be released next week. Senate President Ken Pruitt (R-Port St. Lucie) has previously stated that property tax reform should be on the floor of the Senate during the third week of the Session.
Workforce Development
On Tuesday, March 6th the House 21st Century Competitiveness Committee passed HB 343 Relating to the Florida Work Experience Program by Representative Aaron Bean (R-Fernandina Beach). The bill expands eligibility for the Florida Work Experience Program (FWEP) to include career-technical students attending community college or district operated career centers. Representative Bean presented the bill and informed the committee that last year’s budget included over $12.5 million in needs based post secondary funding and none of those dollars was used towards career-technical/vocational students. The expansion of vocational students will add an additional $11.9 million to the bill. HB 343 was unanimously passed and will be heard next by the House Schools and Learning Council.
| Florida’s workforce must meet the demands of our state’s employers. Therefore, AIF supports legislation that would increase participation and funding for the Florida Work Experience Program. Allowing students to gain valuable, real-world experience in their field of study is sound public policy. |
Economic Development
On Thursday, March 8th the House Economic Development Committee passed HB 1503 Relating to Super Enterprise Zones by Representative David Rivera (R-Miami). This bill creates super enterprise zones and gives the Office of Tourism, Trade, and Economic Development the ability to designate five super enterprise zones in the state for a 10-year period. To qualify as a super enterprise zone an area must be located in an enterprise zone and meet specific economic criteria. Designation as a super enterprise zone will provide certified businesses in the zone with a tax-free status.
Certified businesses will be eligible for a 100 percent exemption from sales and discretionary tax on tangible personal property. In addition, retail sales made by certified businesses in a super enterprise zone are provided a 100 percent exemption on sales and discretionary tax for any tangible personal property item priced up to $1,000.
| AIF supports the concept of establishing Super Enterprise Zones. There are several examples from states with similar programs that show that these Super Enterprise Zones are successful in attracting new investment and new companies to areas that need it the most. The potential for increased job creation and higher wages makes this idea good public policy. |
Energy
On Wednesday, March 7th the House Energy Committee took up Proposed Committee Bill (PCB) ENRC 07-01, which addresses energy efficiency and alternative fuels. The PCB is intended to offer incentives to both consumers and businesses to use and produce alternative fuels. Consumer incentives range from tax exemptions on property and renewable energy source devices, to the Energy Efficient Motor Vehicle Sales Tax Refund Program, which refunds purchasers of hybrid or qualified alternative fuel motor vehicles up to $15,000. This bill also creates incentive for businesses that produce ethanol and biodiesel in the form of tax credits. The bill also mandates that all county, municipal, and school district buildings be constructed to meet LEED (Leadership in Energy and Environmental Design) standards.
An amendment, important to AIF members, is currently being discussed between the Committee and Council. This amendment would provide a new definition for renewable diesel to match the US Environmental Protection Agency (EPA) definition. The new definition would allow the biodiesel to be made with biofuel materials using more conventional oil and gas refining equipment and technologies.
| AIF is closely monitoring the progress of this piece of legislation. Energy issues are critical to the success of Florida’s business community. Any attempt to encourage the development of alternative fuels should be viewed positively. The bill’s fiscal impact, which is currently estimated at approximately $100 million dollars, is somewhat problematic - especially given the recent indications that the State’s revenues are much lower than originally expected. |
Taxation
On Thursday, March 8th the Senate Committee on Finance & Tax unanimously approved SB 1014 the 2007 Internal Revenue Code Adoption bill by Senator Mike Haridopolos (R-Melbourne). This legislation is also known as the “Corporate Piggyback” bill and updates the Florida Income Tax Code to reflect the changes made by the US Congress in 2004 to the US Internal Revenue Code of 1986.Florida’s Corporate Income Tax Code follows the Federal Internal Revenue Code by using federal rules and starting with federal income as the tax base for the Florida Income Tax. Passage of this bill ensures that corporations, which are subject to Florida income tax, can base their calculations on current IRS rules. If the legislature does not pass this legislation every year, corporations would have to keep two sets of records: one for Florida and one for the IRS.
| AIF supports the passage of this bill so that Florida corporations do not have to endure the burdensome task of filing duplicate tax records. |
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