Governor Bob Martinez, Senior Policy Advisor, Tampa, Karen D. Walker, Partner, Tallahassee & Patricia B. Greene, Public Affairs Advisor, Tallahassee

Please click on the following link to read Eyes on Tallahassee - 2010 Florida Legislative Session Recap in full.

On April 30, 2010, the Florida Legislature adjourned sine die, bringing the 2010 Regular Legislative Session to a close. Eyes on Tallahassee is Holland & Knight's annual summary of bills that passed during the 2010 session. Also included are bills of interest which did not pass, but may be considered again during the 2011 session which begins on March 1, 2011.

For the 2010 session, 301 bills passed both the House and Senate, specifically 253 general bills, 39 local bills, two concurrent resolutions, three joint resolutions and four memorials. At the beginning of the session, Florida House Speaker Larry Cretul said his goal was to set a record for the fewest bills passed during his two-year tenure. While he didn't realize this goal, the total number of bills passed under his speakership is the lowest since Republicans took control of the Legislature in the 1998 elections.

Highlights of the 2010 session include passage of a $70.4 billion budget, the signing of a Seminole Indian gambling compact, a gubernatorial veto of controversial teacher merit pay legislation and a constitutional amendment easing the class-size requirement passed by voters in 2002, just to name a few.

In this issue:

Construction

Insurance

Education

Procurement

Energy and EPSC Reform

Public Records

Environmental and Land Use

State and Local Taxes

Finance

Transportation

Healthcare

Key

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CONSTRUCTION

Building Safety

CS/CS/CS/CS/HB 663 revises the current law relating to elevator safety, home inspection services, mold assessment and remediation, and building code inspections and enforcement. The bill also provides that after the three-year period provided for repair or rebuilding, the expiration, lapse, non-renewal or revocation of a building permit issued to the property owner will also constitute abandonment of the property as homestead. The bill revises the Florida Building Commission's authority and exempts specified structures from Florida's Building Code requirements.

If approved by the Governor, the effective date of this bill is July 1, 2010, except as otherwise provided.

Copy of Enrolled/Enacted Bill: CS/CS/CS/CS/HB 663

Department of Business and Professional Regulation

CS/CS/CS/HB 713 assigns certain programs to be regulated by the Department of Business and Professional Regulation's (DBPR) Division of Professions. The bill specifies that DBPR is responsible for regulation of certain professions and administration of certain examinations. In addition, among other changes, the bill: (1) authorizes the Department of Highway Safety and Motor Vehicles (DHSMV) to issue reproductions of driver licenses to DBPR; (2) revises certain licensing and continuing education requirements; (3) authorizes temporary licensure of spouses of active duty service members; (4) revises grounds for discipline of professional licensees; (5) revises licensing requirements for home inspectors, mold assessors and mold remediators; (6) deletes requirements for certificates of authorization for corporations or partnerships offering home inspection or mold-related services; (7) exempts from punishment certain unlicensed activity occurring before various specified dates; (8) extends time for licensure of home inspectors, mold assessors and mold remediators under certain grandfather provisions and revises such provisions; (9) revises certain exemptions from veterinary regulations; (10) revises licensing requirements for real estate brokers and sales associates and cosmetologists; (11) revises membership of the Florida Real Estate Appraisal Board; (12) authorizes certain board members and certain members of the Florida Real Estate Commission to offer, conduct and teach certain courses; (13) assigns a departmental unit responsible for regulation of carbon monoxide hazards in certain public lodging establishments; and (14) authorizes DBPR to issue and enforce notices to cease and desist violations of provisions regulating boxing exhibitions.

If approved by the Governor, the effective date of this bill is July 1, 2010.

Copy of Enrolled/Enacted Bill: CS/CS/CS/HB 713

International Commercial Arbitration

CS/HB 821 replaces the Florida International Arbitration Act with the Florida International Commercial Arbitration Act. Among other provisions, the bill: (1) provides requirements, procedures and limitations for international commercial arbitration; (2) provides requirements and restrictions on courts; (3) provides for creation of arbitral tribunals; (4) provides powers, duties and responsibilities of arbitral tribunals; (5) provides for arbitral proceedings; (6) provides procedures for appointment of arbitrators; (7) specifies powers, duties and responsibilities of arbitrators; (8) provides for liability for, and award of, costs and damages; (9) authorizes parties to arbitration to agree to arbitration procedures; (10) provides default procedures; (11) provides procedures and requirements for evidence; (12) provides for awards by arbitral tribunals; (13) provides judicial immunity to arbitrators; and (14) specifies conditions under which court may set aside arbitral award, and provides for recognition and enforcement of arbitral awards by court.

The bill was approved by the Governor on May 11, 2010, and will take effect on July 1, 2010. Chapter 2010-60, Laws of Florida

Copy of Chapter Law: Chapter 2010-60

Residential Fire Sprinkler Requirements

CS/CS/CS/SB 846 prohibits incorporation into the Florida Building Code of certain mandatory residential fire sprinkler provisions of the International Residential Code, but provides an exception. The legislation prohibits the requirement for property owners to install fire sprinklers in residential properties based on the use of that property as a rental property or any change in or reclassification of the property's primary use to a rental property.

If approved by the Governor, this bill will be effective upon becoming law.

Copy of Enrolled/Enacted Bill: CS/CS/CS/SB 846

Underground Facility Damage Prevention and Safety

CS/CS/SB 982 prohibits municipalities, counties, districts and other local governments from enacting ordinances or rules that conflict with Chapter 556, F.S. The bill provides that if an excavation is proposed within 15 feet of a high-priority subsurface installation and is identified as such an installation by the facility operator, the facility operator must notify the excavator of the installation and mark its location before excavation may begin.

If approved by the Governor, the effective date of this bill is October 1, 2010.

Copy of Enrolled/Enacted Bill: CS/CS/SB 982

Elevator Safety

CS/HB 1035 requires DBPR's Division of Hotels and Restaurants to adopt elevator safety rules. The bill also: (1) authorizes the Division to enter certain buildings; (2) provides for variances; (3) exempts certain elevators from specific code update requirements; (4) provides a phase-in period for such elevators; (5) specifies additional acts by a registered elevator company or certificate holder which are subject to discipline and requires certain licensees to provide written responses to departmental requests relating to inspection reports; (6) extends the time within which an elevator owner may comply with certain orders to correct; (7) provides procedures related to citations and discipline relating to unlicensed activity; and (8) provides registration and continuing education requirements for certified elevator inspectors.

If approved by the Governor, the effective date of this bill is July 1, 2010.

Copy of Enrolled/Enacted Bill: CS/HB 1035

Docks

CS/SB 1118 authorizes the placement of roofs on certain residential single-family docks. The bill also authorizes the Department of Environmental Protection (DEP) to adopt rules that include special criteria for approving certain docking facilities in shellfish harvesting waters and authorizes DEP to maintain a list of projects or activities for applicants to consider when developing proposals in order to meet mitigation or public interest requirements.

If approved by the Governor, the effective date of this bill is July 1, 2010.

Copy of Enrolled/Enacted Bill: CS/SB 1118

Firesafety Inspections

SB 1136 provides exceptions to certain local government firesafety inspection requirements. The bill specifies inspection requirements for fire hydrants owned by governmental entities and authorizes local government utilities to comply using designated employees. The legislation also specifies the responsibility for ensuring the qualification of designated employees to conduct the inspections.

If approved by the Governor, this bill will be effective upon becoming law.

Copy of Enrolled/Enacted Bill: SB 1136

Local Government Prompt Payment Act

CS/HB 1157 revises the provisions relating to timely payment for purchases of construction services and requires that a dispute be resolved according to the procedures set forth in the contract. The bill prohibits the assessment of damages against a contractor if the list of items remaining to complete is not provided timely to the contractor. The bill revises the provisions relating to the resolution of disputes concerning an improper payment request or invoice and provides that a local governmental entity waives its objection in a payment dispute if it fails to commence the dispute resolution procedure within the time period required.

If approved by the Governor, the effective date of this bill is October 1, 2010.

Copy of Enrolled/Enacted Bill: CS/HB 1157

Community Associations

CS/CS/CS/SB 1196 exempts certain elevators from specific code update requirements. Among other changes, the bill: (1) revises the limitations on the right of members to vote on corporate matters for certain nonprofit corporations that are regulated under specified provisions; (2) specifies the maximum amount of any unit owner's loss assessment coverage that can be determined for any loss; and (3) creates the "Distressed Condominium Relief Act."

If approved by the Governor, the effective date of this bill is July 1, 2010.

Copy of Enrolled/Enacted Bill: CS/CS/CS/SB 1196

Design Professionals

CS/CS/SB 1964 provides for limited liability for engineers, surveyors and mappers, architects, interior designers and registered landscape architects, as a result of construction defects due to the performance of a contract. The legislation provides that, if a contract requires professional liability insurance, the contract may not limit the liability of the design professional inconsistent with the insurance requirements.

If approved by the Governor, the effective date of this bill is July 1, 2010.

Copy of Enrolled/Enacted Bill: CS/CS/SB 1964

Sewage Disposal Facilities

CS/CS/CS/SB 550 is an extensive environmental bill which amends the current law regarding sewage disposal facilities. Section 35 of the bill adds new requirements for onsite sewage treatment and disposal systems, including septic tanks. Beginning January 1, 2011, DEP is required to develop a five-year-cycle evaluation program for implementation statewide by January 1, 2016, to assess the operational conditions of the 2.5 million septic tanks in this state, including pump-outs every five years. A notice is required to be given to a system owner at least 60 days prior to a written evaluation and assessment being performed; in addition, the owner must bear the costs of the written report and any repairs indicated as a result.

If approved by the Governor, the effective date of this bill is July 1, 2010.

Copy of Enrolled/Enacted Bill: CS/CS/CS/SB 550

Construction Contracts

CS/SB 1752 is an extensive economic development bill. Section 50 of the bill was amended on the House floor during final debate to mandate an employment preference to state residents on state-funded construction contracts where there are "substantially equal qualifications."

If approved by the Governor, this bill will be effective upon becoming law, except as otherwise expressly provided.

Copy of Enrolled/Enacted Bill: CS/SB 1752

Non-Ad Valorem Assessments

CS/HB 7179 authorizes local governments to levy non-ad valorem assessments for the purpose of financing certain "qualifying" real property improvements made by property owners to increase resistance to wind damage (such as: strengthening roof deck attachments; creating a secondary water barrier; reinforcing roof-to-wall connections; or installing wind-resistant shingles, gable-end bracing, storm shutters or opening protections), or installing renewable energy source devices (such as: air sealing; installing insulation, energy-efficient heating, cooling or ventilation systems, energy controls or recovery systems; replacing windows; or increasing the use of daylight). Agreements for the financing will have to be recorded in the public records and liens created as a result will be equal in dignity to county taxes and assessments. Such financing will require that all taxes be current and that the mortgagee consent if the amount of the assessment exceeds 20 percent of the property's just value. A written disclosure statement must be given to a prospective purchaser in the form set out in the statute.

If approved by the Governor, this bill will be effective upon becoming law.

Copy of Enrolled/Enacted Bill: CS/HB 7179

Real Property Assessment

CS/CS/HB 965 would authorize property appraisers to reduce the just value of "single-family residential" properties that have been adversely impacted by foreign or domestic drywall with elevated levels of elemental sulfur that is corrosive to certain metals (unless the owner was aware of this condition at the time of purchase). Some county appraisers have already been doing this, but now will have statutory authority to reduce the property tax assessment of affected improvements to zero until the drywall has been replaced. As to properties that are "homestead property," the reduced assessment can last regardless of the time period taken for remediation and repairs.

If approved by the Governor, this bill will be effective upon becoming law and shall apply to the 2010 and subsequent assessment rolls.

Copy of Enrolled/Enacted Bill: CS/CS/HB 965

Bills That Did Not Pass:

Construction Lien Law: There were several bills (SB 510, SB 634, SB 1048, HB 693 and SB 878) filed this session to change Florida's construction lien law (Chapter 713, F.S.). None of these bills passed this session, even though the Senate Regulated Industries Committee issued a 2009 Interim Study Report suggesting necessary reforms to the law.

Crane Regulation: The attempt to regulate tower cranes (SB 1174, HB 375) and preempt local government regulations, failed again this session, but is sure to be filed again.

EDUCATION

Pre-K Through 12 Education

School Voucher Programs

CS/SB 2126 revises the Florida Tax Credit Scholarship Program by: (1) increasing the tax credit cap from $118 million to $140 million in the 2010-2011 fiscal year, subject to the increase in subsequent years; (2) allowing a credit for 100 percent of an eligible contribution made to an eligible scholarship-funding organization against various taxes except in some cases the credit may not exceed 50-57 percent of the tax due on the return where the credit is taken; (3) providing for approval of tax credits on a first-come, first-served basis via application; (4) providing for a three-year carry-forward of unused tax credit amounts; (5) adding certain accountability measures for participating scholarship-funding organizations and schools; (6) changing the formula to determine scholarship amounts; and (7) enabling the Commissioner of Education to deny, suspend or revoke a private school's participation in the program if operating contrary to the health, safety, or welfare of the public.

The bill was approved by the Governor on April 22, 2010, and will take effect on July 1, 2010. Chapter 2010-24, Laws of Florida

Copy of Chapter Law: Chapter 2010-24

CS/HB 1505 will expand the eligibility for students in the John M. McKay Scholarship Program. Under the bill, preschoolers with a current individual educational plan who received specialized instructional services under the Voluntary Prekindergarten Education Program during the previous year or who have been enrolled in a public school in any of the past five years will now be eligible for the program. Under current law, only disabled students who attend public school during the prior year are eligible. The bill also grants the Commissioner of Education the authority to revoke participation by schools that operate in a manner contrary to the health, safety, or welfare of the students.

If approved by the Governor, the effective date of this bill is July 1, 2010.

Copy of Enrolled/Enacted Bill: CS/HB 1505

Teacher Merit Pay

CS/CS/SB 6 would have required school districts to adopt a salary schedule that compensated employees based on performance instead of longevity, incentivized teachers to teach in low income schools and to teach subjects in which there is a critical shortage such as math and science, and encouraged teachers to accept additional academic responsibilities. The bill would have created a dedicated pool of funding equal to 5 percent of total state, local and federal education funding to be used in support of these new responsibilities and to develop end-of-course assessments. The bill would have required districts to adopt a modified annual appraisal system for teachers, at least 50 percent of which would be dependent on student gains. It also outlined a modified "just cause" basis for suspension or dismissal of teachers. Each school district would also have had to develop a valid and reliable end-of-course assessment for each subject area and grade level not measured by state assessments. School districts were forbidden to assign teachers to reading, science, or mathematics unless certified in those areas. The bill would also have required charter schools to adopt a salary schedule for instructional personnel and administrators not based on longevity, to meet certain end-of-course assessments and to adopt a performance appraisal system. Teachers failing to demonstrate student learning gains would have received remediation in teacher preparation programs.

The Governor vetoed this bill on April 15, 2010.

Copy of Vetoed Bill: CS/CS/SB 6

Copy of Governor's Veto Message

Class-Size Amendment

SJR 2 would alter the constitutional class-size amendment approved by voters in 2002 by applying the student caps to average classroom size instead of the per-classroom limits that the current law requires. The resolution would cap average class sizes at 18 students for pre-K through third grade with the maximum number of students assigned to each teacher not to exceed 21; at 22 students for grades four through eight with the maximum number of students assigned to each teacher not to exceed 27; and 25 students for grades nine through 12 with the maximum number of students assigned to each teacher not to exceed 30. The resolution would exempt virtual classes.

This resolution will take effect upon approval of the electors on November 2, 2010, and operate retroactively to the beginning of the 2010-2011 school year.

Copy of Enrolled/Enacted Bill: SJR 2

School Speech

CS/CS/HB 31 prohibits school boards, administrative personnel and instructional personnel from infringing or waiving First Amendment rights afforded to instructional personnel, school staff or students without the express written consent of the individual.

If approved by the Governor, the effective date of this bill is July 1, 2010.

Copy of Enrolled/Enacted Bill: CS/CS/HB 31

Civics Education

CS/HB 105 creates the "Justice Sandra Day O'Connor Civics Education Act" and provides for a variety of civics education requirements.

The bill was approved by the Governor on May 11, 2010, and will take effect on July 1, 2010. Chapter 201-48, Laws of Florida

Copy of Chapter Law: Chapter 201-48

Education Accountability

CS/CS/SB 4 concerns education accountability in middle schools and high schools. The act requires a middle school student beginning in 2011 or 2012: (1) to pass end-of-course assessments in Algebra I, Geometry and Biology I to receive high school credit; (2) specifies what high school students must learn as part of their personalized academic and career plan; (3) revises requirements for high school graduation to meet end-of-course assessment requirements and revises credit requirements in mathematics and science to replace the Mathematics and Science portions of the Florida Comprehensive Assessment Test (FCAT); (4) requires the State Board of Education to establish passing scores; (5) requires the Commissioner of Education to develop additional end-of-course assessments contingent on funding; (6) revises requirements for accelerated high school graduation options; (7) requires that district school boards assign a minimum of 30 percent of a student's grade based on performance on end-of-course assessments; (8) requires each high school beginning in 2011 to offer an International Baccalaureate Program, an Advanced International Certificate of Education program or a combination of at least four courses in dual enrollment or Advanced Placement; (9) requires changes to the high school FCAT such as aligning it with the Next Generation Sunshine State Standards; and (10) requires the Office of Program Policy Analysis and Government Accountability (OPPAGA) to study differentiated high school diploma options.

The bill was approved by the Governor on April 20, 2010, and will take effect on July 1, 2010. Chapter 2010-22, Laws of Florida

Copy of Chapter Law: Chapter 2010-22

Community Colleges

College Designations

CS/SB 436 renamed various community colleges. Central Florida Community College became the College of Central Florida, Lake City Community College became the Florida Gateway College, Palm Beach Community College became Palm Beach State College, and Seminole Community College became Seminole State College of Florida.

The bill was approved by the Governor and took effect on April 20, 2010. Chapter 2010-23, Laws of Florida

Copy of Chapter Law: Chapter 2010-23

State University System

Board of Governors

HB 7237 revises provisions relating to responsibility for the State University System. The bill states that the Board of Governors has the authority to regulate the State University System. Additionally, the bill provides that the Board of Governors: (1) is subject to Chapter 120, F.S., when acting pursuant to statutory authority along with the Board of Trustees of the universities when delegated authority; (2) may adopt a different rule promulgation system consistent with various standards applicable otherwise: (3) should align the mission of each university with peer institutions; (4) shall confirm the presidential selection by a university board of trustees; (5) shall establish criteria for the review and approval of new programs at state universities; and (6) may approve flexible tuition policies that do not increase the state's fiscal liability or affect the Florida Bright Futures Scholarship Program. The act also creates the Higher Education Coordinating Council to identify unmet needs and resolve disputes regarding the creation of new degree programs and the establishment of new institutes, campuses and centers. The bill also authorizes new fees, an admissions deposit and makes the board of trustees the contracting agent of each university.

The bill was approved by the Governor on May 11, 2010, and will take effect on July 1, 2010. Chapter 2010-78, Laws of Florida

Copy of Chapter Law: Chapter 2010-78

Fee Exemptions

CS/HB 1363 clarifies exemptions from state university fee requirements for a student who is or was at the time he or she reached 18 years of age in the custody of a relative under the Relative Caregiver Program, or who was adopted from the Department of Children and Family Services, after a specified date.

The bill was approved by the Governor on May 11, 2010, and will take effect on July 1, 2010. Chapter 2010-68, Laws of Florida

Copy of Chapter Law: Chapter 2010-68

CS/CS/HB 723 authorizes state universities and community colleges to waive tuition and fees for certain public school classroom teachers for undergraduate courses approved by the Department of Education. The bill also prohibits causes of action against state universities for the decisions or actions of the state university student government unless made final by the university and a violation of law. Certain convenience fees associated with the use of a credit card are also authorized.

If approved by the Governor, the effective date of this bill is July 1, 2010.

Copy of Enrolled/Enacted Bill: CS/CS/HB 723

Doctor of Medicine Degree

HB 1581 authorizes a doctor of medicine degree program at Florida Atlantic University, subject to the Board of Governors' approval.

The bill was approved by the Governor on May 15, 2010, and will take effect on July 1, 2010. Chapter 2010-88

Copy of Chapter Law: Chapter 2010-88

Workforce Education

Vocational Rehabilitation

HB 7037 revises and repeals the provisions relating to vocational rehabilitation programs and services. Among other things, the bill updates obsolete references in the Florida K-20 Education Code.

The bill was approved by the Governor on May 11, 2010, and will take effect on July 1, 2010. Chapter 2010-70, Laws of Florida

Copy of Chapter Law: Chapter 2010-70

Bills That Did Not Pass:

Blaine Amendment: SJR 2550 and CS/HJR 1399 would have allowed voters to repeal the last sentence of Article I, Section 3 of the Florida Constitution. The sentence is referred to as a "Blaine Amendment" after former U.S. Senator James Blaine who in response to an anti-Catholic campaign nearly amended the U.S. Constitution with similar language adopted by a number of states. The Resolution would have allowed voters to replace the Blaine Amendment with this statement: "An individual may not be barred from participating in any public program because that individual has freely chosen to use his or her program benefits at a religious provider."

Teacher Bonuses: CS/SB 1970 and CS/CS/HB 1287 would have awarded teachers $50 or more for every student passing an end-of-course exam in Advanced Placement, International Baccalaureate and Advanced International Certificate of Education and would have removed the $2,000 cap on bonuses to teachers teaching at "D" or "F" schools. Teachers would receive $500 per high-scoring student in such a school. The bill also would have required school districts to spend 100 percent of funds for these rigorous programs solely on the administration, preparation and success of the students in the program and to advertise the number of students taking rigorous courses.

FCAT: SB 120 would have removed the requirement that a student earn a passing score on the FCAT or alternative assessment to gradate from high school, the requirement for mandatory retention of a student in grade three who does not meet FCAT proficiency, and the requirement that a district school board adopt policies for meeting class size maximums which allow a student to graduate from high school if the student passes the grade 10 FCAT. SB 1154 would also have discontinued administration of the FCAT in favor of subject area assessments, deleted requirements that district school boards establish policies for intensive reading and mathematics intervention courses in high school, and modified general high school graduation requirements.

Vouchers: SB 1426 would have provided an additional purpose for the Corporate Tax Scholarship Program enabling students in specified grades in public schools to receive certain assistance in attaining grade-level performance and requiring scholarship funding organizations to allocate at least 25 percent of their scholarships to public school students.

Public School Funding: SB 1368 would have deleted a requirement that school boards imposing the school capital outlay surtax freeze noncapital local school property taxes for at least three years, extended the duration of a provision specifying methods to calculate the salary of a school board member and revised provisions exempting charter school facilities from certain fees.

Scholarships: SB 2642 and HB 1415 would have revised the Florida Bright Futures Scholarship Program to provide for five levels of awards and included the tuition differential in the calculation of award amounts. SB 144 would have created the Sure Futures Scholarship Program for the purpose of matching private sector businesses that need employees in Florida who have advanced degrees with students who are seeking them in critical need areas in Florida public and private colleges. SB 1344 would have required the State Board of Education to base the eligibility of students to receive Florida Academic Scholars awards on SAT percentile ranks and provided for a student who attended a home education program to be eligible for a Florida Medallion Scholars award. SB 1344 would also have modified provisions relating to benefits to dependent children or spouses of deceased or disabled veterans, the licensing of electronic library resources to school districts and compensation of community college presidents.

Tuition/Resident Status: SB 248 would have set conditions for reclassifying a student as a resident for tuition purposes. SB 2398 would also have revised residency requirements for certain dependent children and required classification of a student as a resident if recognized as such by another institution.

New University Fees: CS/SB 778 and HB 505 would have authorized university boards of trustees to establish a renewable energy fee if approved by student referendum of up to $1 per credit hour. SB 894 and HB 547 would have authorized the University of South Florida to increase the activity, health and athletic fees to construct a multipurpose campus center.

New Degree Programs: SB 838 and HB 101 would have authorized a doctor of pharmacy degree program at the University of South Florida. SB 228 and HB 353 would have created the Charter Technical Career Center Associate in Applied Science and Associate in Science Degree Programs, authorizing charter technical career centers to offer such degree programs through partnerships with community colleges or directly.

School Withdrawal: SB 940 would have required that a student who is withdrawing from school be assigned a counselor to provide educational information until the student is 18 years old and be instructed concerning the consequences of the student's decision and diploma alternatives.

Board of Governors: CS/CS/SB 2442 would have revised the powers and duties of the Board of Governors relating to accountability, required the Board to align the missions of each university so as to encourage them to become nationally recognized and ranked as research institutions, and revised the process for colleges to propose new baccalaureate degree programs.

Early Learning: SB 2394 would have transferred the Office of Early Learning within the Department of Education and the child care facility licensing responsibilities of the Department of Children and Family Services to the Office of Early Learning within the Agency for Workforce Innovation.

Foreign Gift Disclosure: SB 1804 would have required each institution of higher education to disclose to the Department of Revenue (DOR) the amount, terms, restrictions and requirements made a part of any gift given to the institution by a foreign government, person or entity if the value of the gift exceeds a specified amount.

ENERGY AND FLORIDA PUBLIC SERVICE COMMISSION (FPSC) REFORM

Property Assessed Clean Energy Program

Although a variety of energy bills were filed during the 2010 Session, the only energy bill that passed was CS/HB 7179, which established a program to allow local governments to finance energy efficiency and renewable energy improvement projects using traditional land-secured municipal finance mechanisms. The program, commonly referred to as the Property Assessed Clean Energy (PACE) Program, allows a local government to create a special district, issue bonds secured by real property within the district, and use the bond proceeds for certain approved renewable energy and energy efficiency projects. The program is voluntary and only those property owners electing to participate would repay the debt to service the bond as part of their property tax bill. CS/HB 7179 also expands Florida's definition of "renewable energy" to include "electrical energy produced using pipeline-quality synthetic gas produced from waste petroleum coke with carbon capture and sequestration."

If approved by the Governor, this bill will be effective upon becoming law.

Copy of Enrolled/Enacted Bill: CS/HB 7179

Bills That Did Not Pass:

Renewable Portfolio Standards: Perhaps the most heavily lobbied energy bill in the session was CS/HB 7229 which passed the House but died in messages to the Senate. This bill would have replaced the renewable portfolio standard (RPS) model that the Legislature preliminarily adopted in 2008 with a model that would have provided premium payment incentives for renewable energy. Opponents of the legislation argued that allowing renewable energy producers to receive premium payments for such energy would add significant costs to electric bills. To address these concerns, the Legislature amended the bill to impose more stringent price caps on renewable energy. However, the price caps ultimately did not assuage the fears of legislators who viewed the rate increases embedded in CS/HB 7229 as a risky political proposition, particularly in an election year during these economic times. A similar bill in the Senate, CS/SB 1186, never made it to the Senate floor.

Florida Energy and Climate Commission: CS/HB 77 and SB 90 would have encouraged energy efficiency with respect to low-income and rental housing properties.

Biomass Plants: SB 596 would have authorized the Florida Public Service Commission (FPSC) to allow a utility to recover the costs of converting a fossil fuel generating plant to a biomass plant.

Renewable Energy: HB 1417 and SB 774 would have ratified the preliminary RPS standards submitted by the FPSC in 2009. SB 1086 and HB 1371 would have authorized power purchase agreement payments for renewable energy to exceed a utility's full avoided costs.

Investor-Owned Utilities: SB 1104 would have imposed heightened service and reliability standards on investor-owned electric, water and wastewater utilities.

Compensation Disclosure: HB 1601 and SB 2570 would have required certain electric utilities to annually report the salaries of some specific company executives.

FPSC Regulation: HB 725, HB 1217, SB 2168 and SB 2632 would have subjected certain governmental utilities to FPSC regulation.

Renewable Energy Surcharges: HB 1267, SB 2346 and SB 2404 would have imposed renewable energy surcharges on electric bills to support a trust fund for clean energy projects.

Climate Change Regulation: HB 1535 would have urged rejection of federal climate change legislation that imposed undue economic burdens on businesses and customers.

Solar Energy: SB 1014, SB 1018, SB 1024 and HB 1575 would have encouraged solar energy and energy efficiency.

Offshore Oil Drilling: It also should be noted that legislation (HB 563) urging Congress to support offshore drilling for oil failed to pass. Because of the Deepwater Horizon oil spill, which occurred during the waning days of the Session, support for this offshore drilling initiative has fallen dramatically. Governor Crist has announced that he intends to call a special session to address renewable energy and other energy supply alternatives along with a possible constitutional amendment to ban offshore drilling. The Governor's announcement of a special session has been publicly criticized by several legislative leaders, so it remains to be seen whether the Legislature will act in these areas. Finally, an association of renewable energy producers indicated the week of May 3 that it would begin to gather signatures to establish an RPS standard in Florida's Constitution and create a clean energy trust fund to provide money for investments in renewable energy.

FPSC Reform: Driven by allegations of improper communications between electric utilities and FPSC staff members, legislation to reform the FPSC became a legislative priority in the Florida Senate and was one of the first bills to pass the Senate. CS/SB 1034 would have required FPSC Commissioners to abide by the Code of Judicial Conduct and imposed significant restrictions on communications between regulated entities and FPSC staff. The House adopted a different approach to FPSC reform and proposed legislation that would have fundamentally reorganized the agency into two structurally separate entities: the FPSC, whose primary responsibility would be to serve as an independent decision maker; and the Office of Regulatory Staff (ORS), which would be housed under the control of the Governor and Cabinet and would be treated like any other party to an administrative proceeding. The companion measure, CS/CS/HB 7209, would have also transferred the Office of Public Council from the Legislature to the Florida Attorney General's Office. The Governor aggressively opposed attempts by the House to structurally reorganize the FPSC. Ultimately, the Senate and the House failed to reach consensus on the FPSC reform issue and both bills failed.

Other FPSC Reform Measures: HB 293 and SB 594 would have proposed a constitutional amendment requiring the election (and not the appointment) of FPSC members. HB 533 would have required persons testifying before the FPSC to formally disclose any financial or fiduciary relationships with regulated utilities. HB 565 would have prohibited former FPSC members and employees from lobbying the Florida's legislative and executive branches for two years following their termination of service.

FPSC Confirmations: The Florida Senate refused to confirm two of Governor Crist's FPSC appointees – David Klement and Benjamin Stevens. Because both of these sitting commissioners were not confirmed by the Senate, Florida law requires that they vacate their positions at the end of May 2010. The FPSC Nominating Council has already begun the process of soliciting applications to fill the two vacancies.

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