2021 Florida Legislative Session Wrap-Up

MAY 2021

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INTRODUCTIONThe 2021 Florida Legislative Session was anything but normal. Not only because pandemic protocols caused the Capitol and downtown Tallahassee to be fairly empty—limiting public participation in the process and resulting in most public committee testimony being delivered by video from the Tallahassee-Leon County Civic Center—but possibly never before have the state’s fiscal fortunes changed so much from the months leading up to the session to Sine Die.

COVID-19 was reaching Florida just as last year’s session was ending in March 2020. The immediate negative impact on state tax revenues created much dread about the next budget and a multi-billion shortfall was projected. However, the 2021 Legislature passed a $101.5 billion budget that is $9.2 billion (10.0 percent) more than current spending. This also includes nearly $200 million in tax relief and record reserves. Even more remarkable, that bottom line does not include any of the $10.2 billion in federal aid Florida will be getting from the American Rescue Plan. Most everyone got at least something they wanted, evidenced by the House and Senate approving the budget by a 156-1 vote.

Lawmakers approved 275 bills this year, an increase of 65 bills (31 percent) over last year. After a record-low of 197 in 2019 (at least since 2001), the number of passed bills is on the way up again, but still well below the levels of the past 20 years. In the first part of this millennium, sessions with more than 300—and even more than 400—passed bills were the rule.

Some of these bills are major initiatives. One of the most significant pieces of tax legislation in the state’s history passed, finally switching the burden of collecting and remitting sales tax on remote sales from the Florida consumer to the out-of-state seller. The added revenue will be used to replenish the Unemployment Compensation Trust Fund without having to increase UC taxes. After the fund is restored, a significant future reduction in the business rent tax will take effect. The Legislature also passed the largest expansion of school choice in the nation, established dedicated funding for a program to address sea level rise, created a new $1 billion fund for future emergencies, repealed the massive M-CORES toll road project, and revamped the state’s early learning and workforce development programs.

Florida TaxWatch and the state’s taxpayers had a successful session. The bills passed by the 2021 Legislature included many recommended or supported by Florida TaxWatch research. The following Legislative Wrap-Up discusses all these bills and more. It shows what passed and what did not—both issues supported by Florida TaxWatch research and other important bills we monitored all session long to keep our members and the public informed on our Legislative Update webpage.

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FLORIDA TAXWATCH TOP ISSUESLEGISLATION SUPPORTED BY FLORIDA TAXWATCH THAT PASSEDE-Fairness (SB 50) - Requires out-of-state sellers to collect and remit taxes on Florida sales, removing a major competitive disadvantage for Florida retailers, transferring the burden to remit taxes from consumers to sellers, and protecting Floridians from collection actions, penalties, and interest.  (see Taxation section)

Business Rent Tax (SB 50) – After replenishing the UC Trust Fund, the E-Fairness revenue will be used to provide a significant cut in the sales tax on commercial leases (5.5% to 2.0%).  (see Taxation section)

UC Tax Relief (SB 50) - Revenue from E-Fairness will be used to avoid a major tax increase when employers can least afford it. (see Taxation section)

COVID-19 Liability Shield (SB 72) – This will protect businesses, non-profits, churches, health care providers, and colleges and universities (HB 1261) from frivolous COVID-19 related lawsuits while protecting the rights of those harmed through true negligence. (see Economic Development section)

M-CORES (SB 100) – Repeals the massive new toll road project, replacing it with a more flexible and less costly program.  (see Transportation section)

Early Learning and Early Grade Success (HB 419/HB 7011) – The improvements to early learning made by these bills could be transformational for Florida’s education system and children.  (see Education section)

School Choice (HB 7045) – Consolidates the state school choice scholarships programs and greatly expands the number of available scholarships and who can qualify for them.  (see Education section)

Impact Fees (HB 337) – Places reasonable limits on impact fee increases and prohibits retroactive increases.  (see Economic Development section)

Water Safety and Swimming Certification for K-12 Students (SB 358) – Requires each public school to provide information on the important role water safety education and swimming lessons play in saving lives, including local options for age-appropriate water safety courses and swimming lessons. The final bill language was ultimately passed as a part of an omnibus education bill (SB 1028). (see Health & Aging section)

Procurement Reform (HB 1079/HB 1137) – Makes improvements to the state’s system for contracting for goods and services (HB 1079) and the procurement of information technology (HB 1137). (see Government Efficiency and Accountability section)

Sea Level Rise and Flooding Resilience (SB 1954) – Creates the Statewide Flooding and Sea Level Rise Resilience Plan and the Resilient Florida Grant Program. (see Environment section)

Sales Tax Holidays (HB 7601) – The tax package contains a Back to School and Disaster Preparedness sales tax holiday, as well as a new Freedom Week Sales Tax Holiday that would exempt certain admissions and outdoor activity equipment and supplies. (see Taxation section)  

Program of All-Inclusive Care for the Elderly (HB 905) – Allows AHCA to review program applications and approve new PACE organizations.  This should increase applications, providers, and access. The new budget funds 800 new slots (see Health & Aging section)

Statewide Law Enforcement Radio System (SLERS) (SB 2502/2510) – Faced with the prospect of the current SLERS contract expiring without a viable replacement in place, the Legislature extended the contract with the current provider and the $3 surcharge on traffic violations that helps pay for it, as recommended by Florida TaxWatch (see Corrections and Public Safety section).

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Civics Instruction (SB 146/HB 5/SB 1108) – Three separate bills promoting civics education in Florida were passed by the 2021 Legislature.  (see Education section)

Promote Broadband Access in Underserved Areas (HB 1239) – Although a sales tax exemption for communications and internet access equipment was removed from the bill, it still contains measures to promote broadband deployment, including a grant program for the expansion of broadband to underserved areas.   (see Economic Development section)

Independent Living Services (SB 794) – Increases the funding for James Patrick Memorial Work Incentive Personal Attendant Services Program ( JPPAS). (see Health & Aging section)

Corporate Income Tax Piggyback Bill (HB 7059) – Florida will not be adopting the federal tax relief measures in the Coronavirus Aid, Relief, and Economic Security Act.  (see Taxation section)

Rounding In/Brackets Out (SB 50) – Switching to the more modern, accurate, and taxpayer friendly rounding system for calculating sales tax due.   (see Taxation section)

Juvenile Diversion Record Expungement (HB 274) - Florida TaxWatch supports diverting kids from the correctional system when appropriate. (see Smart Justice section)

Veterans Courts (HB 7023) – Florida TaxWatch supports the use of Veterans’ Courts and other problem-solving courts as they emphasize treatment over incarceration.  (see Smart Justice section)

Physician Assistants (HB 431) – Expands physician assistants’ scope of practice.  (see Health & Aging section)

DID NOT PASS

Pension Reform (SB 84) - Requires all new Florida Retirement System members to enroll in the Defined Contribution Investment Plan. Does not impact current members of the FRS. (see Government Efficiency and Accountability section)

Qualified Target Industry (QTI) Tax Refund Program (SB 7068) – Reestablishes the QTI Program that was created to encourage the creation and retention of high-quality, high-wage jobs and consistently shows a high return on investment. (see Economic Development section)

Consumer Data Privacy (HB 969) – This bill attempted to deal with the real problem of protecting people’s private data. Our analysis found that while it may provide some level of privacy, it would disproportionately affect small businesses and expose Florida employers to significant costs and economic risks.  The bill was scaled-back, but concerns remained. (see Economic Development section)

Telehealth – Several bills seeking to remove barriers to expansion of telehealth advanced but did not pass. (see Health & Aging section)

Visit Florida (SB 778) – Would have made this valuable entity permanent. (see Economic Development section)

Elderly Prisoner Release Program (SB 232) - Florida TaxWatch research finds that elderly prisoners cost the most to incarcerate but pose the least danger to public safety.  (see Smart Justice section)

Sentencing Reform – Numerous bills to change the focus of incarceration to persons who truly should be in prison did not pass.   (see Smart Justice section)

Protecting Affordable Housing Funding (SB 510) – Would have prohibited the sweeping of housing trust funds. (see Economic Development section)

Film Incentives (SB 704) – Would have created a sound, fiscally responsible incentive program to help grow targeted industries such as film and television production.  (see Economic Development section)

Fleet Management (SB 1152) – Would have implemented a centralized fleet management system for state vehicles. (see Government Efficiency and Accountability section)

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OTHER FLORIDA TAXWATCH ISSUESThe remainder of this paper is a rundown of all of the bills that were the focus of Florida TaxWatch research, recommendations, and interest.

BUDGETBudget Tops $100 Billion - The FY 2021-22 state budget totals $101.5 billion.  The new budget is $9.2 billion more than the current one, quite remarkable when you consider that not that long ago, it was projected lawmakers would be facing a $3 billion shortfall this session. An economy that began recovering much quicker than anticipated and a massive influx of federal aid allowed lawmakers to pass a record budget and keep a record amount of reserves.  There was plenty of money to go around and most involved were happy, reflected in the budget passing by a combined 156-1 vote.  Most of the proposed cuts, including deep ones in health care, were scrapped, and big investments were made in many areas.  The $9.2 billion increase over current spending includes $6.9 billion in increased federal Medicaid and education funds.  However, the $101.5 billion bottom line does not include any of the $10.2 billion in federal stimulus funds from the Coronavirus State Fiscal Recovery Fund in the American Rescue Plan.  

Federal Stimulus $$ - The Legislature did outline how $6.7 billion of those funds will be spent, but since this spending is in the “back of the bill” and technically appropriated for the current fiscal year, it is not included in the $101.5 billion budget total. This spending includes $2 billion for transportation, $1 billion for a new Emergency Preparedness and Response Fund, $400 million for education facilities, $1,000 bonuses for first responders, $100 million to

clean up the Piney Point phosphate site, and $1.4 billion for water quality, beach renourishment and sea-level rise. The $3.5 billion in unallocated stimulus dollars will go into General Revenue.  It is uncertain when Florida will receive all these funds, but if you count the unallocated dollars, Florida’s reserves approach $10 billion.    See how the federal funds will be spent.

SELECTED BUDGET HIGHLIGHTS PAY ISSUES

• Increase minimum wage for state employees from $13 per hour ($43 million)

• State Attorney’s and Public Defenders 10 percent pay increase ($1.3 million)

• DCA Judges 10 percent pay increase ($1.6 million)• Child Care and Early Learning Instructors -$1,000

bonus ($166 million federal funds)• Classroom teachers and principals - $1,000 bonus

($216 million federal funds)

RESERVES• $6.7 billion (includes $350 million in federal funds

added to Budget Stabilization Fund) • Eliminate Lawton Chiles Endowment (just under

$1 billion) and transfer to BSF.• Create a $1 billion reserve fund for the Governor

to use to respond to future emergencies.• Although it’s not certain when the state will get

the $10.2 billion in federal Coronavirus State Fiscal Recovery Funds, the $3.5 billion currently unallocated will go into GR reserves.

EDUCATION• K-12 Per Student Funding - $7,795 ($39/0.5

percent increase)• Base FEFP Funds (flexible) – increase of $473

million (3.5 percent)• Teacher Salary Increase - $550 million (increase of

$50 million to continue increasing minimum salary to $47,500)

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• Student Reserve Allocation - $464 million for potential return of students that did not enroll during pandemic.

HEALTH AND HUMAN SERVICES • Medicaid Caseload and Price Level Increase - $4.3

billion ($1.2 billion general revenue)• Medicaid Post-Partum Care - $240 million to

extend from two months to 12 months.• Large proposed cuts for hospitals and nursing

homes were scrapped during conference.• Persons with Disabilities - $95.7 million to reduce

the Home and Community Based Services Waiver waitlist.

• Child Welfare Best Practices and evidence-based prevention services - $42 million

ENVIRONMENT• Everglades Restoration and Water Quality - $2.1

billion• Resilient Florida Grants (new program) - $500

million (contingent on federal funds)• Wastewater Grants - $500 million (contingent on

federal funds)• Florida Forever Land Acquisition - $402 million

(includes $300 for Wildlife Corridor contingent on federal funds)

• Piney Point phosphate site cleanup - $100 million

ECONOMIC DEVELOPMENT• VISIT FLORIDA – increase funding from $50

million to $75 million• Job Growth Grant Fund - $50 million• Affordable Housing - $209 million, $362 million

swept from the housing trust funds. In addition, legislation passed that permanently reduces the funds available annually for affordable housing by more than half.

PUBLIC SAFETY • Continue transition to 8.5 hour shifts at

correctional institutions - $17 million and 220 positions

• Prison Closures – no mandated closures, but the Dept. of Corrections may develop a comprehensive plan for the consolidation of one state-operated institution.

• Courts and Clerks of the Court Pandemic Recovery Plan - $16 million

• First Responders $1,000 Bonus Payment - $208.4 million (federal funds)

TAXESTOP TAXWATCH PRIORITIESE-Fairness/UC Tax Solvency/Business Rent Tax Relief - SB 50 – One of the most significant pieces of tax legislation in Florida history contains four Florida TaxWatch recommendations, two of which have been our top tax issues for years.  SB 50 has already been signed by Governor DeSantis. The bill began as a way to finally address the issue of collecting sales taxes on remote sales.  After being viewed as unconstitutional for many years, the U.S. Supreme Court (South Dakota v. Wayfair, Inc.) in 2018 ruled that states can apply reasonable requirements for remote sellers to collect sales and use taxes on sales to residents even if the vendor does not have a physical presence in the state.  Coming into the session, Florida was one of only two states that had not taken steps to fix this issue in the wake of the decision. As the bill moved through the process, the other provisions were added, making a great bill even better. The Florida TaxWatch recommendations in SB 50 are:

• E-Fairness – Remote sellers and marketplace providers will now be required to collect sales taxes on sales to Florida customers. This requirement does not apply to sellers with less than $100,000 in annual Florida sales and a safe harbor is provided for businesses who failed to collect the sales tax prior to July 1, 2021, as long as they register with the Department of Revenue prior to October 1, 2021.  This is not a new tax—it is already owed under current law—but one of shifting the burden

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of collecting the taxes on remote sales from Florida consumers to where it belongs: out-of-state retailers.  Not collecting sales taxes on remote sales not only costs Florida state and local governments $1.3 billion a year in legally owed revenue, it also puts Florida retailers at a competitive disadvantage, distorts purchasing decisions, is unfair to Floridians that do pay the tax, and makes millions of Floridians—often unwittingly—lawbreakers.  Without this bill, Floridians would have continued to be subject to collection action by the state (e.g., auditing, fines, and penalties) even though many were unaware of this tax obligation.

• Avoid a UC tax increase - The approximately $1 billion in added annual state revenue collections will be deposited into the Unemployment Compensation (UC) Trust Fund, which has been decimated by job losses during the pandemic.  The UC deposits will continue until the fund is replenished to pre-pandemic levels ($4.07 billion). Further, UC tax rates will be calculated without the considering the impacts of the pandemic-related job losses. This will avoid a major tax increase on all businesses when many can least afford it, helping them on the road to recovery. 

• Reducing the Business Rent Tax – Two months after the UC Trust Fund is replenished (in approximately two to three years), the sales tax on commercial leases will be reduced from 5.5% to 2.0%.  FTW has proposed using the added revenue from E-Fairness to reduce/eliminate the BRT, a tax that is unique to Florida and creates a competitive disadvantage for any business that leases property.

• Rounding in, brackets out - The state will ditch the outdated bracket system used to calculate the amount of sales tax due and replace it with the more taxpayer-friendly rounding system. The bracket system results in consumers being

overtaxed by tens of millions of dollars a year.  

The bill also requires marketplace providers to collect and remit the waste tire fee, lead-acid battery fee, and E911 prepaid wireless fee, beginning April 1, 2022. 

This was a very long-time coming and Florida TaxWatch would like to thank the many people and organizations who helped get this done. We were also pleased that the legislation is named the Park Randall “Randy” Miller Act.  Randy, who passed away last year, was a former DOR Executive Director, president of the Florida Retail Federation, a Florida TaxWatch Executive Committee member, and a leading advocate for E-Fairness legislation. See some of Florida TaxWatch’s research on E-Fairness here and here, our committee testimony, and our letter to the Governor.

Recommendations of the Florida TaxWatch COVID-19 Taxpayer Task Force - In the early days of the pandemic, Florida TaxWatch formed the COVID-19 Taxpayer Task Force to discuss opportunities and options to help Florida recovery and ease the burdens created by the pandemic on Florida taxpayers. Made up of public policy professionals, tax and budget experts, and leaders of both small and large businesses, the Task Force was established to identify those areas of state tax policy that could be addressed both immediately and in the long term to provide Florida’s businesses—and their employees and customers—appropriate relief and assistance. The E-Fairness, UC Tax, and Business Rent Tax provisions in SB 50 were all recommended by the Task Force.  In addition, a number of other Task Force’s recommendations advanced this session.  See this summary of recommendations that were included in legislation this session.

Tax Package - The Senate took up the House tax relief bill (HB 7061) and adopted an amendment that contains most of the provisions in both the House and

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Senate (SB 7068) bills while adding a couple more.  In addition to the two sales tax holidays proposed by both chambers, the Senate amendment picked up--and expanded--the House’s proposed “Freedom Week” sales tax holiday that exempts admissions to performances and events and the sales of outdoor activity equipment and supplies.  There are tax credits for hiring interns, making contributions to organizations that focus on children, and cleaning up contaminated sites (one-time increase). A sales tax exemption is created for specified items that assist in independent living, an expanded property tax exemption for affordable housing, and several narrower changes and tax administration provisions.  The tax package’s total tax savings is $196 million, almost all of it one-time or local tax savings.  See what is in the final tax package, what changed, and what is in the new Freedom Week Sales Tax Holiday in this TaxWatch analysis. See what was in the original bills in this Florida TaxWatch analysis. See what changed and what is covered in the new Freedom Week Sales Tax Holiday.

OTHER BILLS THAT PASSEDCorporate Income Tax Piggyback - The first Senate version (SB 7082) of the annual piggyback bill would have picked up almost all the changes to the federal CIT code that were made by the CARES Act, as was recommended by the Florida TaxWatch COVID-19 Taxpayer Task Force. This would have saved taxpayers $212 million in FY 2021-22 and a little over $100 million annually. However, the House piggyback bill (HB 7059) decoupled from most of the provisions, scuttling almost all the savings. The Senate amended its bill to also decouple from the tax relief provisions.  CIT will continue to be a big issue, especially with the tax rate scheduled to return to 5.5 percent, which will be applied to an expanded tax base.  HB 7059, without adopting the federal tax relief provisions, was approved by both chambers.

Property Tax Exemption for Flood Resistance Improvements - HJR 1377 is a proposed constitutional amendment to authorize the Legislature to prohibit the consideration of any change or improvement made to real property used for residential purposes to improve the property’s resistance to flood damage in determining the assessed value of the property. The implementing language, should the amendment by approved by the voters, is in the final tax package (HB 7601).   HJR 1377 has been approved unanimously by both chambers, sending it to the November 2022 ballot.

Homestead Exemption for Low-Income Seniors - (HB 597 and SB 1256) – Currently, taxpayers claiming the homestead exemption for low-income seniors must submit a sworn statement of household income annually. The bill would now require the taxpayer to submit the statement only once.  The bill also requires the property appraiser to annually notify each taxpayer claiming the exemption of the adjusted income limitation for that year. The taxpayer must then notify the property appraiser if his or her income exceeds the income limitation.  HB 597 has been approved by both chambers.

New Worlds Reading Initiative Tax Credit (HB 3) - In order to fund the newly created New Worlds Reading Initiative, businesses that make monetary donations to the program may receive a dollar-for-dollar credit against the corporate income tax, insurance premium tax, severance taxes on oil and gas production, alcoholic beverage taxes, or self-accrued sales tax liability of direct pay permit holders.  The annual tax credit cap for all credits under the initiative is $10 million for FY 2021-22, $30 million for FY 2022-23, and $50 million for each following fiscal year. HB 3 has been approved by both chambers. 

Car-Sharing Programs (SB 566) - In addition to establishing insurance and operational requirements for car-sharing programs, the bill clarifies the sales tax

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applies to these programs and imposes a reduced surcharge of $1 per day on a rental or lease of less than 24 hours. SB 566 was approved by both chambers. 

TAX BILLS THAT FAILEDQualified Target Industry (QTI) Tax Refund Program – The QTI Program was created to encourage the creation and retention of high-quality, high-wage jobs through state refunds of certain state and local taxes to businesses creating jobs in highly sought-after industries. It sunset on June 30, 2020 after legislation to make it permanent failed to pass during the 2020 session. Florida TaxWatch’s COVID-19 Taxpayer Task Force recommended that QTI be reestablished.  This is one of the state’s most successful economic development programs, the state’s last three reviews have shown QTI has a positive ROI between 4.3:1 and 6.4:1.   SB 982, reauthorizing the program, passed two committees.  The language was added to the Senate tax package (SB 7068) but was pulled out of the final version (HB 7601).

Tourist Development Taxes (TDTs) - HB 1429 requires all TDTs to be reapproved by referendum every five years and requires any TDT currently imposed to be renewed in a referendum on or before July 1, 2026.  It also removes the precondition to levy certain of the five TDTS before levying certain others.  Lastly, the bill authorizes all TDT revenue to be used to finance flood mitigation projects or improvements.  Florida TaxWatch has historically opposed expansion of the authorized uses of TDT revenue as it takes away from the important original use of funding tourism promotion.  HB 1429 has been approved by the full House.  The House has also included these provisions in its tax package (HB 7061), but it is not included in the final tax package agreement.

Sales Tax Exemption for Broadband Deployment Equipment - A bill to expand broadband access did pass (see Economic Development section), but a sales tax exemption for the purchase, lease, or sale of

equipment used by providers of communication or internet access services was removed.  Broadband provides many benefits in economic development, education, and health care.  Many rural areas in Florida cannot take advantage of these benefits. Florida TaxWatch concludes that the exemption and encouraging reasonable fees to access municipally owned poles would be an efficient and immediate method to encourage broadband deployment in Florida.  HB 1239 had the sales tax exemption removed but still promotes broadband deployment.  

TAX RELIEF BILLS THAT DIED IN COMMITTEE

• SB 1390 and HB 1125 would have expanded the capital investment tax credit to projects that develop intellectual property. SB 1390 made it to its last committee-Appropriations.

• SB 806 would have created a sales tax exemption for diapers and incontinence products.  SB 806 was approved by two committees but there was no House companion.

• SB 302 and HB 637 would have created a Small Business Sales Tax Holiday that would make all sales made by small business exempt from the sales tax on November 27, 2021.  SB 302 was approved by two committees.

• SB 140 would have created fees for electric vehicles to be used for the Electric Vehicle Infrastructure Grant Program (HB 138).  The fees would have been $135 (increasing to $150 on January 1, 2025) for an EV weighing under 10,000 pounds and $235 (increasing to $250) for EVs over 10,000 pounds. Plug-in hybrids would have had a fee of $35 (increasing to $50). For more information see the Transportation section. Both bills made it to their last committee-Appropriations.

• SB 1584 would have limited the documentary stamp tax due to the difference between the

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price the seller paid and the price the subsequent purchaser paid for a single-family residence or condominium, if the seller sells the property to an unrelated purchaser in an arm’s length transaction within 75 days after buying the property and the price is 110 percent or less than what the seller paid for the property. The bill originally only covered sales made on real property platforms (resale within 180 days) but was later broadened. SB 1584 passed two committees.

CORRECTIONS & PUBLIC SAFETYPASSEDJuvenile Diversion Record Expungement (HB 274) - This will permit a juvenile who completed a diversion program for any offense, including felony offenses, to apply to have the nonjudicial arrest record expunged.  The juvenile may also lawfully deny or fail to acknowledge his or her participation in the program and the expunction of the nonjudicial arrest record. Currently, this is only allowed for misdemeanor offenses.  Florida TaxWatch supports helping juveniles recover from mistakes and keeping them from returning to the system.

Veterans Courts (HB 7023) – These “problem-solving courts”, modeled after drug court treatment programs, divert veterans, servicemembers, and other eligible individuals into treatment programs for military-related conditions or war-related trauma. Eligibility for a VTC program is limited to a defendant with a military-related mental illness, traumatic brain injury, substance abuse disorder, or psychological problem. The bill allows a court with criminal jurisdiction to create and administer a VTC, which may adjudicate both felony and misdemeanor offenses.  It also creates uniform standards and procedures. Florida TaxWatch supports the use of Veterans’ Courts and other problem-solving courts as they emphasize treatment over incarceration. 

Juvenile Justice Programs (HB 885) - The bill retains the Accountability and Program Support program within the Department of Juvenile Justice (DJJ). This program was temporarily created by the budget implementing bill last year. This change will allow the retention of the assistant secretary that was appointed to oversee the program and consolidate DJJ’s oversight and monitoring efforts. The bill also requires that specified information be considered before a court issues an order to take a child into custody for failing to appear, to

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determine if the failure was willful.  Each judicial circuit is also required to develop a written plan specifying the alternative consequence components available when a juvenile commits a technical violation of probation. These plan must consider and reflect: the severity of the technical violation; the child’s individual criminogenic needs; the child’s age and maturity level; and how effective the alternative component will be in motivating the child to comply with his or her probationary terms.  DJJ, in consultation with the Department of Education, is authorized to evaluate the viability of an alternative model for providing and funding educational services for youth in detention and residential facilities.

Statewide Law Enforcement Radio System (SLERS) – The procurement process to update the state’s unified digital law enforcement radio network has been beset with problems and delays. The current contract between the Department of Management Services (DMS) and what is now L3Harris is set to expire in June 2021. In 2016, DMS initiated an Invitation to Negotiate (ITN) to replace the aging SLERS equipment, which is nearing end-of-life. The ITN was unsuccessful. After a seven-month bid protest process and the 14-months of negotiations that followed without a contract, DMS is no closer to a contract for a successor SLERS network than it was in 2016. Citing the “immediate danger to the public health, 2100 safety, and welfare” of letting the contract expire with a replacement, the budget implementing bill (SB 2502) directs DMS to continue partnering with the current provider. In addition, SB 2510 extends the expiration date of the $3 surcharge on all noncriminal moving traffic violations and certain criminal offenses for five year (to July 1, 2026), to continue the support for the cost of SLERS. Both of these actions were recommending in the Florida TaxWatch report on SLERS.

 

DID NOT PASSSentencing (SB 328) - The adoption of mandatory minimums in Florida and other states in the 1990s resulted in huge increases in prison populations and their associated costs to our state and the nation. While mandatory minimums ensure that serious offenders will serve longer sentences, they also mean that all applicable offenses are subject to the same, objective treatment, often tying judges’ hands.  This can result in sentencing individuals struggling with substance abuse issues to the same lengthy prison terms as violent offenders. Florida TaxWatch research has long-supported a “Judicial Safety Valve,” which authorizes judges to exercise judicial discretion and deviate from mandatory minimums in certain low-level criminal cases.  We commended the Legislature on its changes to mandatory minimums in 2016 and 2019.  HB 328 would have extended these good changes to more people by making them retroactive, which increases the equity of Florida’s sentencing laws. The process the bill created to determine if an inmate qualifies for possible resentencing and requiring that inmate to petition the original sentencing court for a resentencing hearing provided safeguards.  SB 328 died in its last committee--Appropriations.

Conditional Aging Inmate Release and Medical Release (SB 232) – This bill contained numerous criminal justice provisions but one of the key provisions is the establishment of programs that would permit the conditional, supervised release of inmates with terminal medical conditions or who are suffering from severe debilitating or incapacitating medical, as well as low-risk, non-violent elderly inmates. Florida continues to bear the increasing medical and housing costs of a growing elderly prison population. Florida TaxWatch research finds that elderly prisoners cost the most to incarcerate but pose the least danger to public safety. The National Institute of Corrections estimates that states spend on average $70,000 per year to incarcerate someone age 50 or older, nearly three times what it

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costs to house a younger prisoner, largely because of the difference in healthcare costs. Elderly inmates are not eligible for federal healthcare support; however, they are eligible for federally funded Medicaid (with state match) and/or Medicare upon their release.  The Government Efficiency Task Force estimated the supervised release of only those elderly inmates who are 70 years of age or older could result in estimated annual savings of $75.5 million to $79.9 million.  SB 232 was approved by the Senate Criminal Justice Committee.

• Florida TaxWatch testimony on SB 232 (submitted to committee) 

• Florida TaxWatch research on aging inmate release

SB 468 would have provided for the expunction of certain criminal history records relating to the misdemeanor offense of possession of 20 grams or less of cannabis, regardless of disposition. A person may only receive one expunction under this section and may only petition the court for an expunction after at least one year has elapsed and he or she is no longer under court supervision. SB 468 passed the Senate but died in messages.

SB 626 would have prohibited a child younger than 7 years of age from being taken into custody, arrested, charged, or adjudicated delinquent, unless the violation of law is a forcible felony.  SB 626 passed the Senate but was not taken up by the House.

SB 472 would have increased the number of days that may be awarded for incentive gain-time from 10 days to 20 days per month, regardless of when the offense was committed. Currently 20 days is only allowed for offenses committed before 1994. Current law prevents an inmate from using gain-time to serve less than 85 percent of a sentence, regardless if the offense is a violent or non-violent felony.  Under the bill, an inmate serving a sentence for a nonviolent felony must serve at least 65 percent of his or her sentence.   SB 472 died in Judiciary.

SB 662 would have allowed a state attorney to file a petition for a new sentencing hearing if the original sentence no longer advances the interests of justice. If granted, the trial court would resentence the offender, and take into account prison disciplinary records, rehabilitation, recidivism risk, and other changed circumstances. The revised sentence could not exceed the current sentence.  SB 662 passed the Judiciary Committee unanimously.

SB 620 would have required the consideration an inmate’s institutional achievements, lack of disciplinary reports, and all indications of the lack of risk to the public in the decision to parole the inmate. The bill would have created a long-term inmate program for parole-eligible inmates to prepare them for reintegration into the community. Individuals participating in the program would be required to complete 250 hours of community service, 100 hours of enrichment programs, and an evidence-based curriculum that address such topics as anger management, criminal thinking, educational and vocational needs, family relationships, lifestyle and wellness, substance use disorder treatment, and victim impact. SB 620 made it to its last committee and the House companion (HB 69) passed one committee unanimously.

SB 482 would have allowed more offenders to be sentenced to a nonstate prison sanction in lieu of prison by increasing the sentence point thresholds. A sentence would have to be based on a sentencing range—not the statutory maximum for any offense. However, a court could sentence an offender for a term that exceeds the maximum term under the calculated sentencing range if the trial judge provides justification for the longer sentence. SB 482 died in Criminal Justice.

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SB 1032 would have allowed the awarding of three types of reductions to a prisoner’s sentence in the form of outstanding deed awards, good behavior time, and rehabilitation credits. Outstanding deed awards of 30 to 60 days could be awarded for deeds such as saving a life. DOC would be required to grant 10 days per month of good behavior time to encourage satisfactory behavior and develop character traits for successful reentry into the community. DOC would be authorized to grant up to two additional days per month of good behavior time to prisoners serving certain drug sentences. Prisoners could earn rehabilitation credit for completion of a high school equivalency diploma, a college degree, vocational certificate, drug treatment program, life skills program, reentry program, or other evidence-based program approved by the DOC that serves the purpose of reducing recidivism and assisting a prisoner to reintegrate into society. SB 1032 made it to its last committee.

ECONOMIC DEVELOPMENT PASSEDCOVID-19 Liability Shield (SB 72) - One of the many negative impacts of COVID-19 is that employers are fearful of keeping their businesses open because of the threat of opportunistic, predatory, and expensive litigation resulting from alleged exposure to the virus when they are taking proper precautions. Responsible organizations that are acting in good faith to comply with public health directives and are investing in measures to protect their patrons and employees must have comfort that they will be able to operate without fear of such litigation while ensuring those that are harmed due to negligent behavior are protected.  Our report highlights the critical economic need for the protections. In short, if employers’ confidence in the economy is shaken due to the absence of a liability shield, we would reduce the Florida economy by as much as $27.6 billion and more than 356,000 jobs annually.  Separate legislation providing COVID liability protection for health care providers (HB 7005 and SB 74) was combined with SB 72. (see Health and Aging section).  SB 72, which combined both liability shields, passed both chambers and has been signed by the Governor. Florida TaxWatch testimony on SB 72 and HB 7 (submitted to committee)  Florida TaxWatch research on COVID-19 liability

Affordable Housing Funding – A Florida TaxWatch report highlighting the affordable housing crisis in Florida recommended that the Legislature stop diverting this revenue and fully fund affordable housing. Last year, the legislature did just that, but that victory was short-lived. A budget conforming bill (SB 2512) permanently changes the distribution of the documentary stamp tax to reduce the revenue going into the housing funds by more than half (from $423

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million to $200 million). The redirected revenue would be split ($111.7 million each) between the new Resilient Florida Trust Fund and the Water Protection and Sustainability Program Trust Fund to be used for wastewater grants (see Environment section). The bill does make what is left in the housing trust funds off-limits for sweeping, but in effect the bill makes an annual $223 million sweep permanent. The budget also sweeps $362 million from the housing trust funds this year, and a proposal to allocate federal stimulus funds to housing was removed from the final plan. SB 2512 was approved as part of the budget conference. A bill to prohibit sweeps without reducing revenue, as recommended by Florida TaxWatch, did not pass (see SB 510 below).

Impact Fees - HB 337 makes multiple changes to impacts fees. The bill limits impact fee increases imposed by a local government, school district, or special district to no more than 50 percent and not more than once every four years.  Further, any increase of up to 25 percent must be phased-in in two equal annual installments.  Any increase between 25 percent and 50 percent would require a four-year phase-in.  The bill also prohibits impact fees from being increased retroactively.  Local governments can bypass the limitations by meeting certain statutory requirements.  HB 337 has been approved by both chambers.

Promote Broadband Access in Underserved Areas – Broadband provides many benefits in economic development, education, and health care. Many rural areas in Florida cannot take advantage of these benefits. HB 1239 will help broadband reach more Floridians. Although a sales tax exemption for communications and internet access equipment was removed from the bill, it contains other positive steps.  It expands the duties of the Office of Broadband and creates the Broadband Opportunity Program to award grants for the expansion of broadband Internet service in

unserved and underserved areas of Florida. The bill appropriates $1.5 million for the Office to develop geographical information system (GIS) maps of Florida’s broadband Internet service availability. The bill requires municipal electric utilities, through July 1, 2024, to offer broadband providers a promotional rate of $1 per attachment per year for any new pole attachment necessary to make broadband service available to an unserved or underserved consumer.  HB 1239 has been approved by both chambers. 

Revamping Florida’s Workforce Development System (HB 1507) – The state’s workforce system has struggled, and following the U.S. Department of Labor’s audit outlining the problems, the Governor and the Legislature set out to make big changes—focusing on access, coordination, accountability and results.  Because there are several different agencies with responsibilities in the system that do not always communicate, the bill creates a “no-wrong-door” entry strategy whereby Floridians may access services from any workforce partner with a common intake form and case management system. It also creates the Office of Reimagining Education and Career Help (REACH) in the Executive Office of the Governor to provide coordination and alignment.  The Governor also now has the authority to seek federal waivers to create greater flexibility and strategic investment of federal funding. In addition, by 2022-23, it will be required that students entering a public postsecondary institution must be able to earn nationally recognized digital credentials for competencies within the general education core courses that demonstrate career readiness.  With the disruption to the economy and job market caused by the pandemic, now is the right time to revamp Florida’s workforce development efforts.  For a full list of the bill’s many provisions, see here.  Another bill making additional workforce changes (HB 1505) was also passed by the House but was not taken up by the Senate.  Some of its provisions were incorporated into HB 1507.

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Occupational Licensing (HB 735) - The bill preempts the licensing of occupations to the state and supersedes any local government licensing of occupations. However, any licensing adopted prior to July 1, 2021, will continue to be effective until July 1, 2023, at which time it will expire. Any licensing of occupations authorized by general law is exempt from the preemption.

DID NOT PASSProtecting Affordable Housing Funds (SB 510) - In 1992, acknowledging the importance of affordable housing, the Legislature created a dedicated source of funding for state and local affordable housing programs. Unfortunately, it has not really been dedicated, as these funds have become more of a pot of money used to balance the budget or fund other initiatives. In fact, since FY 2009-10, considerably more of these funds have been diverted to other uses than have been appropriated for affordable housing programs.  In light of the affordable housing crisis in Florida, Florida TaxWatch has recommended that the Legislature stop diverting these funds.  SB 510 prohibits the State Housing Trust Fund and the Local Government Housing Trust Fund from being “swept” by the Legislature.  SB 510 was approved by two committees but then stalled. A budget conforming bill (SB 2512) that passed prohibits sweeping of the housing funds but that bills also significantly reduces affordable housing funding permanently. Florida TaxWatch testimony on SB 510 (submitted to committee)  Florida TaxWatch research on diverting affordable housing funds

Making VISIT FLORIDA Permanent (SB 778) - Florida’s tourism marketing organization—VISIT FLORIDA—has survived misguided attempts to repeal it during the last few sessions.  Florida TaxWatch research helped continue this valuable asset.   VISIT FLORIDA is now scheduled to be repealed on October 1, 2023 unless reviewed and saved from repeal by the

Legislature.  Tourism plays a major role in Florida’s economic strength. In 2019, more than 131 million tourists visited Florida and spent an estimated $91.3 billion. This spending supports 1.5 million jobs and generates significant state and local tax revenues.  The legislative Office of Economic and Demographic Research estimates that for every $1 the state invests in VISIT FLORIDA, $3.27 in state tax revenue is generated.   HB 778 would have removed the repeal from the statutes, making VISIT Florida permanent.  SB 778 was approved by two committees but died in its last stop in the Senate--Appropriations.   Florida TaxWatch testimony on SB 778 (submitted to committee)  Florida TaxWatch research on the importance of VISIT FLORIDA

Qualified Target Industry (QTI) Tax Refund Program – The QTI Program was created to encourage the creation and retention of high-quality, high-wage jobs through state refunds of certain state and local taxes to businesses creating jobs in highly sought-after industries. It sunset on June 30, 2020 after legislation to make it permanent failed to pass during the 2020 session. Florida TaxWatch’s COVID-19 Taxpayer Task Force recommended that QTI be reestablished.  This is one of the state’s most successful economic development programs, the state’s last three reviews have shown QTI has a positive ROI between 4.3:1 and 6.4:1.   SB 982, reauthorizing the program, passed two committees.  The language was added to the Senate tax package (SB 7068) but was pulled out of the final version (HB 7601).

Film, Television, and Digital Media Targeted Rebate Program (SB 704) - A 2018 report on Florida’s film and television industry by Florida TaxWatch recommended state policymakers strongly consider a sound, fiscally responsible incentive program to help grow targeted industries such as film and television production. SB 704 would award rebates to production companies based upon their demonstrated economic

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impact and their commitment to employ Floridians and purchase goods and services from Florida businesses. Allowing each potential project’s benefits to be evaluated and prioritized, instead of the first-come, first-served approach of past programs, would help ensure that the most beneficial projects would receive the limited incentive (rebate of 23 percent of qualified expenditures with a limit of $2 million.) A certified project may only receive a rebate after it has completed production, and its expenditures have been verified.  TaxWatch does not believe that the state should relaunch an incentive program on a scale designed to outdo the competition. However, a sound, fiscally responsible incentive program, such as the targeted rebate program created by SB 704, will help to create and sustain an environment in which film and television production companies can grow and grow Florida’s economy at the same time.  SB 704 was approved by the Senate Commerce and Tourism committee. Florida TaxWatch testimony on SB 704 (submitted to committee)  Florida TaxWatch research on film and television incentives

Tourist Development Taxes (TDTs) - HB 1429 requires all TDTs to be reapproved by referendum every five years and requires any TDT currently imposed to be renewed in a referendum on or before July 1, 2026.  It also removes the precondition to levy certain of the five TDTS before levying certain others.  Lastly, the bill authorizes all TDT revenue to be used to finance flood mitigation projects or improvements.  Florida TaxWatch has historically opposed expansion of the authorized uses of TDT revenue as it takes away from the important original use of funding tourism promotion.  HB 1429 was approved by the full House.  The House also included these provisions in its tax package (HB 7061), but it was not included in the final tax package agreement.

Seminole Compact/Gaming – Late in the session, the Seminole Tribe and the Governor signed a new gaming compact that would bring sports betting to Florida (with the Tribe serving as the “hub”), and allow the state to resume sharing in the revenue.  Florida TaxWatch has recommended the state enter into a new compact. Without a compact since April 2019, the state has been foregoing more than $300 million in annual revenue. Under the new compact, the state could receive $2.5 billion over five years and as much as $1 billion annually after that.  In addition, bills in both chambers (SB 7076/7080 and HB 7053/7055) surfaced that would create a new Gaming Commission and allow greyhound tracks, harness and quarter horse tracks, and jai alai frontons to “decouple”--allowing them to offer cardrooms without holding live events.  However, there was not enough time for the Legislature to wrap up this issue, so lawmakers will come back in Special Session on May 17 to consider ratification of the compact and gaming legislation.

Florida Small Manufacturing Business Recovery Act (SB 1444) – This bill would have created a program to allow investors to earn credits against the insurance premium tax and retaliatory tax equal to their investment in certified relief funds; in turn, the relief funds will invest in certain businesses. The bill caps investment at a level that will result in no more than $80 million in tax credits under the program.  SB 1444 passed two committees.

 

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EDUCATIONPASSEDSchool Choice - HB 7045 is a major expansion of the state’s school choice scholarship programs. The House Speaker says it is the largest expansion of school choice in the nation. It makes more children eligible for school choice, provides them with more money, and provides more flexibility in how they take advantage of those options.  The bill combines the McKay and Gardiner Scholarship Programs with the Family Empowerment Scholarship with two categories—one for low-income students and one for students with unique abilities. Eligibility is expanded to students who are not enrolled in public school, students of parents serving in the military, and students who are in foster care or adopted. It also increases the initial eligible household income from 300% to 375% of the federal poverty level, meaning families with income up to $100,000 can now qualify (but priority is given to families below 180% of the FPL).  The scholarship award is increased from 95% in current law to 100% of the funding a student is assigned through the FEFP based on the grade level and school district.  See this summary of the bill’s provisions.  

Early Learning and Early Grade Success (HB 419/HB 7011) – The changes made by these two bills could very well be transformational for Florida’s education system.  It gives more information to parents about their children’s progress and establishes accountability standards for early learning programs, with metrics based on student outcomes, learning gains, and child-teacher interactions.  Voluntary Pre-K will use screening and progress monitoring to identify literacy and math deficiencies early, and provide students with intensive, personalized interventions.  With the goal of 90 percent of all third graders reading at grade level by 2030, HB 7011 creates the Reading Achievement Initiative for Scholastic Excellence Program (RAISE), a coordinated, statewide literacy support system using regional expert

teams.  It will also create evidence-based summer literacy tutoring programs for K-3 students and require all teachers with reading deficient students to earn a reading endorsement to their educator certificate.  Florida TaxWatch commends all involved for developing and passing this legislation.  The Governor has signed HB 419 and HB 7011.

Education COVID-19 Liability Shield (HB 1261) - Built around the same concept as the business and healthcare liability shields (see SB 72 in the Economic Development section),the bill provides educational institutions with liability protections against lawsuits seeking tuition or fee reimbursements or related damages for actions such as switching to on-line learning, closing facilities, or pausing or modifying ancillary student activities. This protection does not apply to acts or omissions that were malicious or in bad faith.

Civics Instruction - Florida TaxWatch supports the enhancement of civics education in Florida.  This session there were numerous bills with that goal and three separate bills passed:

• SB 146 - Requires the Commissioner of Education to develop minimum criteria for a civic literacy practicum that may be included in a high school United States Government course, beginning in 2022-2023. The practicum must provide students with an opportunity to be civically engaged through unpaid government internships, government simulations or observations, and observing the naturalization process. 

• HB 5 - The bill requires that the United States Government course that is required for high school graduation include a comparative discussion of political ideologies that conflict with the principles of freedom and democracy in the nation’s founding principles. DOE must approve an integrated civic education curriculum that meets certain

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requirements and curate oral history resources to be used along with such curriculum.

• SB 1108 - Amends the civic literacy requirement for post-secondary education to include both an assessment and a course, as opposed to one or the other.  It creates a process to allow students in high school to earn the civic literacy requirement before enrolling in a public college or university in this state. The curriculum for students in grades 11 and 12 must include instructions on voting using the uniform primary and general election ballot.

Tuition and Fee Waivers (SB 1261):• To encourage students to seek degrees that lead

to in-demand jobs, the Legislature created a ‘buy one, get one free’ tuition and fee waiver. For every upper-level course a student takes in a STEM program of strategic emphasis as identified by the Board of Governors (BOG), a waiver is provided for another course in that program. A state university is eligible to earn incentive funding, subject to appropriation, based on the number and value of waivers it grants pursuant to the bill’s provisions. The bill specifies this funding would be in addition to Performance-based Funding Incentive.

• An out-of-state fee waiver is also for top-performing, out-of-state high school graduates who have a grandparent that is a Florida resident was also created.  These waivers are limited to 350 per year.

• The State University Free Seat Program will provide veterans and active duty service members who are enrolled in an online baccalaureate program a waiver for one online course.  The student may not be charged more than 75 percent of normal tuition for all other courses in that program.  These waivers are limited to 1,000 per year.

Financial Aid Programs• Bright Futures (SB 86) – The Senate considered

cutting back the $650 million program by cutting scholarships for students getting certain degrees that are less likely to lead to employment. SB 86 passed the Senate but was not taken up by the House.  The budget funds Bright Futures at current levels, except for eliminating a $600 book stipend for one tier of recipients known as Academic Scholars.

• Access to Better Learning and Education (ABLE) – The Legislature eliminated ABLE, the $6.4 million financial-aid program that provides $2,800 awards to some private college students. Opponents of ABLE said it was failing students. (HB 5601)

• Effective Access to Student Education (EASE) grants – Continued funding of this private college aid program will now be tied to performance, with recipient schools having to report graduation, retention, affordability, and employment data. (HB 5601)

• New Scholarship Programs – Proviso in the budget creates the Randolph Bracy Ocoee Scholarship Program to award scholarships of up to $6,100 to as many as 50 students who are descendants of victims of the Ocoee Election Day Riots of 1920 or current African-American residents of Ocoee. SB 52 creates a dual-enrollment scholarship program to reimburse colleges and universities for high schoolers taking classes and the budget funds it at $15.5 million.

Improving Reading Skills - A priority of Speaker Sprowls, HB 3 creates the New Worlds Reading Initiative to provide at-home literacy supports for elementary school students reading below grade level. Under the initiative, a hardcopy book is delivered monthly to eligible students enrolled in a participating

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school district. Their parents are provided with resources to help improve the student’s reading skills. The books will be provided at no cost to the student.  The bill creates a tax credit for contributions to the program. HB 3 was approved by both chambers.

Revamping Florida’s Workforce Development System (HB 1507) – This bill makes big changes--focusing on access, coordination, accountability and results.  The bill includes some education provisions, including the requirement that by 2022-23, it will be required that students entering a public postsecondary institution must be able to earn nationally recognized digital credentials for competencies within the general education core courses which demonstrate career readiness.  The bill also creates the Open Door Workforce Grant Program to provide grants to schools and colleges to pay for up to two-thirds of the cost of short-term, high-demand programs and the Money-Back Guarantee Program, requiring school districts and colleges to refund the cost of tuition to students who are not able to find a job within six months of graduating.  There will also be a new performance funding model for schools and colleges, with one-third of funding based on student job placement and two-thirds based on student earnings, with a focus on increasing the economic mobility of underserved populations. With the disruption to the economy and job market caused by the pandemic, now was the right time to revamp Florida’s workforce development efforts.  For more information on this bill see the Economic Development section. Full a full list of the bill’s many provisions, see here.  While HB 1507 passed, another bill making additional workforce changes (HB 1505) was also passed by the House but was not taken up by the Senate.  Some of its provisions were incorporated into HB 1507.

ENVIRONMENTPASSEDSea Level Rise and Flooding Resilience (SB 1954) - The bill addresses the state’s adaptation to flooding and sea level rise. The Resilient Florida Grant Program within the Department of Environmental Protection (DEP) is created to provide grants to local governments for community resilience planning, such as vulnerability assessments, plan development, and projects to adapt critical assets, such as transportation and other infrastructure, community and emergency facilities, and natural, cultural, and historical resources.

The Comprehensive Statewide Flood Vulnerability and Sea Level Rise Data Set, to be updated every five years, will help determine the risks to inland and coastal communities, including statewide sea level rise projections, and develop a statewide assessment (which must be updated at least every five years) to identify and inventory vulnerable areas, infrastructure, and critical assets. The Statewide Flooding and Sea Level Rise Resilience Plan will consist of ranked projects addressing the risks of flooding and sea level rise to communities in the state. This panning will be updated annually, with a three-year planning horizon. Funding for proposed projects may not exceed $100 million in one year and is subject to review and appropriation by the Legislature. There is a 50 percent cost-share requirement, which can be waived for a financially disadvantaged small community. The bill also creates the Florida Flood Hub for Applied Research and Innovation within the University of South Florida College of Marine Science. The Hub will coordinate efforts to support applied research and innovation to address flooding and sea level rise in the state.

Funding for Resiliency and Wastewater Grants (SB 2512/SB 2514) - In order to fund the new resiliency program (see above) and wastewater grants, a budget conforming bill (SB 2512) permanently changes the

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distribution of the documentary stamp tax to provide $111.7 million annually for each program.  Another bill (SB 2514) creates the Resilient Florida Trust Fund, where the $111.7 million will be deposited, to fund the Resilient Florida Grant Program and the Statewide Flooding and Sea-Level Rise Resilience Plan, including costs to operate the grant program, to develop the plan, provide grants to regional resilience coalitions,  administrative and operational costs of the Florida Hub for Applied Research and Innovation, and coastal resilience initiatives. SB 2512 directs the other $111.7 million to the existing Water Protection and Sustainability Program Trust Fund and authorizes it to be used for wastewater grants. This gives this grants program, created last year, a dedicated source of funding that it did not have. While Florida TaxWatch concurs on the importance of these addressing resiliency and water quality, we were disappointed that the redirection of documentary stamp tax revenue came at the expense of affordable housing, reducing the revenue going into the housing funds by more than half (from $423 million to $200 million). See Protecting Affordable Housing Funds in the Economic Development section. SB 2512 and SB 2514 were approved as part of the budget conference.

Lake Okeechobee (SB 2516) – A priority of President Simpson, who believes the state’s water restoration efforts have been focused on the wrong end of Lake Okeechobee, SB 2516 will expedite the implementation of the Lake Okeechobee Watershed Restoration Project (LOWRP) and water storage north of the lake.  The bill requires the South Florida Water Management District (SFWMD) to request the Army Corps of Engineers to seek expedited congressional approval of the LOWRP expedite implementation of the aquifer storage and recovery (ASR) science plan on a specified schedule. The bill requires $50 million annually to be appropriated for the project.  This will not affect the $64 million currently designated for the Everglades Agricultural Area Storage Reservoir Project south of the Lake. SB 2516 was approved as part of the budget conference.

DID NOT PASSBlue-Green Algae Task Force Recommendations (SB 1522) – Created by Governor DeSantis in 2019, the task force was charged with expediting progress towards reducing nutrient pollution and the impacts of blue-green algae blooms in the state.  In our report on protecting Florida’s water resources, Florida TaxWatch supported the implementation of the task force recommendations, many of which were include in the 2020 Clean Waterways Act. SB 1522 would implement more of them, requiring DEP to administer an onsite sewage treatment and disposal system inspection program and assess whether certain pollution reduction projects are effectively reducing nutrient pollution or water use. The bill also would require basin management action plans to identify and prioritize spatially focused suites of projects in areas likely to yield maximum pollutant reductions.  The original version of the bill included the implementation of more recommendations, but it was scaled back in committee. SB 1522 was approved by two committees but the House companion (HB 1225) never got moving.

Sea-Level Rise Task Force (SB 514) – This would have established the Statewide Office of Resiliency, headed by a Chief Resilience Officer, within the Executive Office of the Governor. The bill would have also created the Statewide Sea-Level Rise Task Force to recommend consensus projections of the anticipated sea level rise and flooding impacts along Florida’s coastline.  The task force must develop and recommend consensus baseline projections of the expected sea level rise and submit them to the Environmental Regulation Commission for adoption or rejection.

If adopted, the task force’s projections must serve as the state’s official estimate of sea level rise and flooding impacts along Florida’s coastline for the purpose of developing future state projects, plans, and programs. This bill was approved in committee during interim meetings but was supplanted by SB 1954.

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HEALTH & AGINGPASSEDCOVID-19 Health Care Civil Liability - HB 7005 and SB 74 (now SB 72).  Similar to the protections provided by SB 72 and HB 7 (see Economic Development section), both chambers quickly moved bills that focused on health care liability.  Responsible healthcare workers and facilities who are acting in good faith to comply with public health directives, and who must make extremely difficult decisions under trying and uncertain circumstances, must have comfort that they will be able to provide treatment and care without fear of opportunistic, predatory, and expensive litigation. It is just as important to make sure that those acting in “bad faith” are held accountable for their negligence while ensuring that those who contract COVID-19 because of the gross negligence of others can recover for their injuries. SB 72, which combined both liability shields, was signed by the Governor. Florida TaxWatch testimony on SB 74 and HB 7005 (submitted to committee)  Florida TaxWatch research on COVID-19 liability

Every Child a Swimmer - Florida TaxWatch believes it is essential that children are taught how to swim at an early age.  SB 358 promotes that goal by requiring each public school to provide, to a parent who initially enrolls his or her child, information on the important role water safety education and swimming lessons play in saving lives including local options for age-appropriate water safety courses and swimming lessons. Child drownings in Florida have increased significantly over the last decade.  This bill can save lives.  SB 358 was approved by the full Senate but not taken up by the House.  However, the language was amended onto another bill (SB 1028) late in the session, which passed.

Program of All-Inclusive Care for the Elderly (PACE) - PACE provides comprehensive medical and social services through an interdisciplinary team, while allowing seniors to remain comfortably and safely in their own homes. It is funded through Medicaid and Medicare financing. Florida TaxWatch research found that PACE improves patient outcomes, with increased senior autonomy and improved health measures. The PACE model is also able to produce considerable cost-savings to the taxpayer by providing healthcare at a lower cost and by diverting elders from expensive nursing homes, and we recommended increasing access to PACE.  HB 905 would codify PACE in law, set specific parameters on program services and participating organizations, and required PACE organizations to meet quality and performance standards, as outlined by the federal Centers for Medicare and Medicaid Services.  The bill would allow AHCA to review program applications and approve new PACE organizations, the Legislature would have to approve new slots or expenditures.  This should increase applications, providers and access.  HB 905 was approved by both chambers and the budget includes $6.5 million for 800 new PACE slots.

Independent Living Services (SB 794) - Florida TaxWatch supports efforts that empower individuals to achieve independence, including programs that support opportunities for persons with disabilities to maintain meaningful employment such as the James Patrick Memorial Work Incentive Personal Attendant Services Program ( JPPAS).  SB 794, which increases funding for the program, passed both chambers.

Telehealth Pilot Program - HB 1381 creates a telehealth minority maternity care pilot programs in Duval and Orange Counties to expand the capacity for positive maternal health outcomes in racial and ethnic minority populations. The pilot programs are required to use telehealth or coordinate with prenatal home visiting programs to provide services and education to

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eligible pregnant women and provide training to participating health care practitioners and other perinatal professionals. HB 1381 has been approved by both chambers.  There were a number of bills concerning removing barriers to the increased use of telehealth—which Florida TaxWatch research supports—but none of them passed (see SB 700 below).

Physician’s Assistant Scope of Practice – Florida TaxWatch research has long supported increasing the scope of practice for Advanced Practice Registered Nurses (APRNs) and physician’s assistants (PA) as a way to increase access to health care and reduce costs. Positive changes have been passed by the Legislature recently, including last session.  The 2021 Legislature is again considering changes to the practice of APRNs and PAs. HB 431 expands the scope of practice of physician assistants by allowing them to prescribe psychiatric mental health controlled substances to minors under certain circumstances; procure certain medical equipment and devices; supervise medical assistants; and sign and certify documents that currently require a physician’s signatures such as Baker Act commitments, do-not-resuscitate orders, school physicals, and death certificates.  HB 431 received bi-partisan support in both chambers.   HB 111 and SB 424—dealing with APRNs—never gained traction.

Aging in Place – SB 224 would create a sales tax exemption for the purchase of items that would assist a person to live independently in their home. The exemption would apply to bed transfer handles and rails, grab bars and shower seats. Florida TaxWatch supports ways to help the elderly age in place. This exemption was included in the final tax package (HB 7061).

Non-Profit Hospitals – The 2020 Legislature passed a law to limit a hospital’s property tax exemption to the value of the charity care it provides (as reported to the IRS).  This year, SB 58 would repeal that requirement.  SB 58 was approved by the full Senate but was not taken up by the House.  However, the provision was included in the final tax package (HB 7061).

DID NOT PASSTelehealth - Beginning in 2014, Florida TaxWatch began researching telehealth and has published three reports on the issue.  We find that telehealth provides a way for states to increase self-sufficiency, contain costs, and improve health care access and outcomes. As Florida’s Medicaid enrollment and spending grows, and an aging population increasingly needs to access quality health care, the development of a statewide telehealth infrastructure is a critical step toward the physical and economic health of our state. In 2019, the Legislature enacted statutes governing the provision of telehealth but barriers to its effective use remain. SB 700 addresses some of those barriers, including increasing Medicaid reimbursement, expanding the definition of telehealth, and increasing the authorization for telehealth providers to prescribe drugs.  HB 247 and SB 1568 would allow practitioners to prescribe Schedule III, IV, and V controlled substances via telehealth. SB 700 died in its last committee—Appropriations.  HB 247 passed the House only and SB 1568 (with many more healthcare provisions) was in returning messages three times before ending up there. A bill establishing a telehealth pilot program (HB 1381) did pass (see above).  Florida TaxWatch testimony on SB 700 (submitted to committee)   Florida TaxWatch research on telehealth here, here and here.

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TRANSPORTATIONPASSEDM-CORES (SB 100) - The Multi-Use Corridors of Regional Economic Significance (M-CORES) was created by the 2019 Legislature to build three major toll roads. It would be the largest transportation project in modern Florida history.  The Florida TaxWatch report The Suncoast Connector:  What We Still Need to Know raised concerns about the need for the project and its economic feasibility.  Several bills were filed this session that addressed several of the concerns raised by the report. SB 100, which passed, repeals the M-CORES program and replaces it with a scaled-back, less prescriptive program.  Instead of requiring a major new toll road from Citrus to Jefferson County (the Suncoast Connector), the bill directs DOT to address the free flow of traffic on U.S. 19 by improving existing portions of the roadway.  It replaces the mandate to build another one of the toll roads with a mandate to begin project development to extend the current turnpike from Wildwood, with no requirement for its terminus.  No replacement for the third road (the Southwest-Central Florida Connector) is included.  The bill also restores the distribution of some revenue from the Florida Turnpike Enterprise to the STTF to support statewide transportation priorities. 

DID NOT PASSEconomic Development Transportation Projects – As part of his budget recommendations, Governor DeSantis proposed legislation requiring the Department of Economic Opportunity and Enterprise Florida to review and recommend these transportation projects.  The projects would have to be approved by the Department of Transportation. This would help ensure that the best projects are chosen and they are better incorporated into the Work Program.

For several years, in our annual Budget Turkey Watch Report, Florida TaxWatch has been recommending

creating a more deliberate formal competitive selection process for these economic development transportation projects.  Currently, this budget line-item is made up of member projects that are not thoroughly vetted and have little assurances they will return significant economic development benefits.  The amount funded by the Legislature always exceeds the amount included in the DOT Work Program.  Projects that are not part of the Work Program can take scarce transportation dollars away from the vetted and comprehensively planned projects that are programmed. These projects all included in our Budget Turkey Watch Report.  Florida TaxWatch urged the Legislature to file the Governor’s proposed legislation and finally reform this process.   We  further recommend that more formal competitive selection processes be established for areas of the budget that sorely need them, including water projects, economic development projects, housing and community development projects, local law enforcement and fire service projects, and school and instructional enhancement projects.  The Governor’s recommendation was never considered by the Legislature and there are scores of these projects worth almost $90 million in the new budget.

Electric Vehicle (EV) Infrastructure (SB 138/SB 140) -  SB 138 would have created the Electric Vehicle Infrastructure Grant Program to provide financial assistance to encourage the installation of publicly available electric vehicle charging infrastructure for electric vehicles, electric semi-trucks, and electric aircraft on public or private property. The bill authorizes state agencies, public universities, public transit agencies, ports, airports, and local governments to apply to FDOT for grants for technical assistance and for the purchase of related equipment and costs of installation.  FDOT would develop and publish criteria for prioritizing applications and maintain a prioritized list of approved grant applications; continually review emerging research, policies, and standards relating to

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EV charging infrastructure; and publish best practices relating to such infrastructure. Linked bill SB 140 would have created fees for EVs, in addition to current license fees to fund the program.  The fees would be $135 (increasing to $150 on January 1, 2025) for an EV weighing under 10,000 pounds and $235 (increasing to $250) for EVs over 10,000 pounds. Plug-in hybrids would have a fee of $35 (increasing to $50).  Certain low-speed EVs such as golf carts would be exempt. Registrations must be renewed biennially. The grant programs would receive 64 percent of the revenue and 36 percent must be allocated to the county where the vehicle is registered for use by the county commission to provide publicly available EV charging infrastructure and related equipment.  Beginning July 1, 2024 counties could use the revenue for other transportation expenditures.  Both bills made it to their last committee-Appropriations.

GOVERNMENT EFFICIENCY AND ACCOUNTABILITYPASSEDInformation Technology Procurement (HB 1137) - This bill greatly expands the duties of the Florida Digital Service (FDS) and its involvement in state IT projects, as well as other improvements in IT procurement.  In addition to its current project management and oversight standards, FDS will now be required to establish technical standards that agencies must meet to ensure IT projects comply with the enterprise architecture. The bill also increases FDS’s involvement in state agency IT projects with costs above $10 million, including participating in the development of specifications, recommending modifications to ensure compliance with the enterprise architecture, and post-award contract monitoring.

The bill lowers the IT project cost threshold that triggers FDS project oversight from $25 million to $20 million and removes the requirement that a project must impact other agencies before triggering FDS project oversight. IT commodities and services purchased by the state must meet the National Institute of Standards and Technology Cybersecurity Framework and that certain IT projects require an independent verification and validation.

When an IT state term contracts exceeds 48 months, the Secretary of Management Services and the state chief information officer must certify in writing that it is in the best interest of the state. The bill further requires an agency to issue a request for quote to at least 25 approved vendors (or all approved vendors if there are less than 25).  In addition, a vendor removed from the approved list due to failure to fulfill a contract or placed on a disqualified vendor list, is immediately disqualified from state term contract eligibility.  

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See this Florida TaxWatch article highlighting the problems with the state’s IT procurement system.

Procurement Reform (HB 1079) - The bill makes several improvements to the evaluation, management, and oversight of competitively procured contracts for commodities and services. These include:

• requiring that before any contract renewal or amendment over $5 million is executed, a contract performance report must be submitted to the Governor and Legislature;

• requiring an agency to issue a request for quote to at least 25 approved vendors (or all approved vendors if there are less than 25);

• requiring each agency inspector general to complete a risk-based compliance audit of all contracts executed in the last three years and identify and evaluate any trend in vendor preference;

• requiring the creation of a “continuing oversight team” for each contractual services contract of $5 million or more;

• expanding training requirements of contract personnel; and

• providing that a vendor who is placed on the suspended vendor list is disqualified from bidding on or renewing a contract with the state.

Special District Accountability (HB 1103) - The bill requires all independent special fire control districts and each hospital district to contract with an independent entity to conduct a performance review every five years beginning October 1, 2022, and October 1, 2023, respectively. The Office of Program Policy Analysis and Government Accountability (OPPAGA) will conduct performance reviews of those fire control districts located in rural areas of opportunity. OPPAGA will also conduct performance reviews of all independent mosquito control districts and soil and water conservation districts by September 30, 2023, and September 30, 2024, respectively. The annual financial report and annual financial audit

report now required of all special districts must specify the total number of employees and independent contractors compensated by the district, the amount of compensation earned or awarded to employees and independent contractors, and each construction project with a total cost of at least $65,000. Special districts that amend their annual budgets will now be required to file a budget variance report. The bill also requires the annual financial report and annual financial audit report of each independent special district that levies ad valorem taxes or non-ad valorem special assessments to include the rate of such levies, the total amount collected by the levies, and the total amount and terms of all outstanding bonds issued by the district.  Florida TaxWatch has released several reports highlighting the need to more review and accountability of special districts and hospital taxing districts.  HB 1103 passed both chambers unanimously.

Emergency Preparedness and Response Fund - SB 1892 creates a new trust fund within the Executive Office of the Governor. Moneys specifically appropriated to the fund are available “as a primary funding source for the Governor for purposes of preparing or responding to a disaster declared by the Governor as a state of emergency that exceeds regularly appropriated funding sources.”  There is no dedicated funding source, the Legislature has to appropriate money for the fund.  The new budget directs that $1 billion from the $10.2 billion the state is expected to receive from the federal Coronavirus State Fiscal Recovery Fund in the American Rescue Plan (ARP) shall be deposited into the fund.  It is not clear when the federal money will be received, but the budget provides that the new fund is the second item on the list to receive funding, following the bonuses to first responders.  It is also not clear if the ARP authorizes the funds to be used for this, in fact it appears it does not.  Additional guidance from the U.S. Department of Treasury is expected soon.  Unless reenacted, the new trust fund will sunset on July 1, 2025.

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Abolishing the Lawton Chiles Endowment Fund (LCEF) was established in 1999 to receive a portion of the state’s settlement agreement with tobacco companies. The LCEF was created to provide a perpetual source of enhanced funding for state health care programs and biomedical research activities, but the Legislature has basically used it as a reserve fund.  In FY 2008-09, $354 million was transferred to support health care appropriations.  Also, that year, $700 million was transferred to offset a budget shortfall. In FY 2012-13, another $350 was transferred to GR.  The $1.05 billion from the two transfers to GR was supposed to be paid back by 2021, but only $45.4 million has been repaid.  HB 5011 will eliminate the LCEF by June 30, 2022.  It is currently valued at $958 million.  When the LCEF assets are liquidated, the funds will be deposited into the constitutionally created Budget Stabilization Fund (BSF).  Funds can only be withdrawn from the BSF to cover revenue shortfalls or to provide funding for an emergency. If such funds are withdrawn, the Constitution requires the fund to be restored.  The new budget also directs that $300 million of the federal American Rescue Plan Fund by deposited into the BSF.

Abolishing the Constitutional Revision Commission (CRC) (SJR 204) – In November, voters will decide whether to continue the CRC, the constitutionally-created group that meets every 20 years and can bring proposed amendments directly to the ballot. It is one of five ways an amendment can make it to the ballot in Florida.  The CRC has met three times, in 1977-78, 1997-98, and 2017-18.  The latest convening of the CRC resulted in eight proposed amendments, seven made it to the ballot (one was struck by the Supreme Court) and all seven passed.  The seven amendments contained 17 separate issues.  The bundling of unrelated ideas (e.g., bans of offshore drilling and vaping) upset many lawmakers and others.

 

DID NOT PASSPension Reform - SB 84 (Rodrigues) would have required all new Florida Retirement System members to enroll in the Defined Contribution Investment Plan.  Due primarily to its substantial and unpredictable long-term costs, Florida TaxWatch has long been a proponent of reforming the Florida Retirement System (FRS). Requiring all new FRS members to enroll in the Defined Contribution (DC) Investment Plan will help ensure that the FRS is actuarially sound going forward, avoid billions in future liabilities, and increase the retirement wealth of state employees. Enrolling all new FRS members in the DC Investment Plan will better align government benefits with those provided by the private sector, reduce the state’s financial liability, and generate significant savings in the long run. SB 84 was approved by the Senate but the House did not take it up. Florida TaxWatch testimony on SB 84 (submitted to committee) 

Centralizing Vehicle Fleet Operations - SB 1152 would have required the Department of Management Services to prepare an inventory of state-owned motor vehicles, maintenance facilities, and fuel depots and create a centralized management system for these assets. Florida TaxWatch made this recommendation in our Bringing Florida’s Budget Back from COVID-19 report—pointing out that the current decentralized model hinders coordination, which reduces efficiency and increases costs. Implementing this idea could save in excess of $10 million annually.  SB 1152 died in its last committee. An amendment was added to SB 1616 that would have required the Department of Management Services to conduct a study evaluating fleet management options to identify potential savings. The study was due to the Speaker and President by January 1, 2022. The House substituted its bill-without the fleet management language-and it was the one that passed.

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Supermajority Vote for Constitutional Amendments (HJR 61/SJR 1238) -  Fifteen years after raising the threshold required to approve an amendment from 50 percent to 60 percent of those voting on the measure, this joint resolution would have brought a proposed constitutional amendment to the November 2022 ballot that would raise the threshold to 66.7 percent (two-thirds).  The repeal of a constitutional amendment would still only require the approval by vote of at least the same percent of the electors as was required at the time of passage. Of the 31 measures that have passed since the 60 percent threshold was implemented in 2006, only fourteen would have been passed under a two-thirds requirement. Florida TaxWatch supported the increase to 60 percent as well as other supermajority requirements but has warned two-thirds may be too high of a threshold. HJR 61 died on the floor and SJR 1238 died in Rules.

Florida Integrity Office (HB 1585) – This would have created the Florida Integrity Office (FIO) under the Auditor General for the purpose of ensuring accountability and integrity in state and local government and facilitating the elimination of fraud, waste, abuse, mismanagement, and misconduct in government. The bill also provides for the state to recover funds when the Chief Inspector General or an agency inspector general determines a public official, independent contractor, or agency has committed fraud, waste, abuse, mismanagement, or misconduct in government. The state’s Chief Financial Officer would forward suggestions and information submitted through the state’s “Get Lean” hotline to the FIO and a financial incentive is provided for agency employees to file “Whistle-blower’s Act” complaints and participate in investigations that lead to the recovery of funds.  After clearing two committee, HB 1585 died in Appropriations.

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