Legislature: Oil Spill and Budgetary Issues Could Result in Late Summer Special Session
Interest in a potential special session of the Florida Legislature remains high, while the timing of a potential session remains uncertain.
Governor Charlie Crist continues to support the concept of a special session to propose an amendment to the state constitution to prohibit offshore-oil drilling, but a drilling ban amendment cannot be placed on the 2010 general election ballot unless it is approved by the Legislature before August 4, 2010. Although the governor has indicated that his proposal would have the support of Senate leadership, he concedes that House leaders have yet to be convinced. Both Senate President-designate Mike Haridopolos (R-Melbourne) and House Speaker-designate Dean Cannon (R-Winter Park) have said that they have no intention of trying to overturn the current statutory ban on offshore drilling and that therefore a constitutional ban is not needed.
Sen. Jeff Atwater (R-North Palm Beach), the current Senate President and Republican candidate for chief financial officer, has supported a special session to provide tax relief for property owners whose value has declined because of the Deepwater Horizon oil spill or other means of addressing the negative economic impacts of the oil spill.
Leading Democrats have recently added to the pressure for a special session. House Minority Leader-designate Ron Saunders (D-Key West) said on June 29, 2010 that property owners and local governments are already absorbing costs associated with the oil spill and that a drop in tourism-related tax revenues could have an immediate impact on state finances. He also raised concerns about the way BP, the owner of the Deepwater Horizon well, was handling claims from affected businesses and individuals. Rep. Saunders said, "I think we're better off coming into session in July to be able to address budget changes, also if we need to make statutory changes to speed up the claims process, for example, or if we need to change the way advertising dollars are spent."
Chief Financial Officer Alex Sink, the Democratic candidate for governor, also called for a special session to address the BP claims process. "What my office is studying right now is legislation to protect and to clarify when businesses are filing claims, what the expectations are from BP," she said. She compared the situation with the deadlines and other requirements that apply to insurance claims after a hurricane, adding that "right now we're in a situation with BP where there are no rules and there are no expectations."
House Majority Leader Adam Hasner (R-Delray Beach) said that a decision on a special session might need to wait until early August, when the Consensus Revenue Estimating Conference will provide an updated projection of sales tax collections. In a press interview, Rep. Hasner said that the public was angry about an apparent lack of coordination between BP and the federal government, "but rushing into a special session without the full picture is not going to solve these problems."
Budget issues unrelated to the oil spill also may affect the prospects for a special session. Congress has thus far failed to extend the Federal Medicaid Assistance Percentage (FMAP). The state budget for the 2010 – 2011 fiscal year, which began on July 1, included $960 million in FMAP money. The budget included $730 million in reserves and $230 million in spending on health care, the Bright Futures scholarship program, and Everglades restoration that was contingent on FMAP funding.
Politics: Trial of Former State Republican Chair Jim Greer Set for October
Former Republican Party of Florida Chair Jim Greer will go on trial in Orlando on October 18, 2010 on six felony counts of grand theft, fraud, and money laundering. He is alleged to have concealed his ownership of a company that was paid a commission on donations received by the party.
On June 29, 2010, the Florida Office of Statewide Prosecution released documents and tape recordings that will be used as evidence against Mr. Greer. Mr. Greer was elected party chair in January 2007 on the recommendation of Gov. Crist and resigned that post in February 2010.
Much of the evidence against Mr. Greer comes from Delmar Johnson, who served as executive director of the party under Mr. Greer. Mr. Johnson entered into an immunity agreement on May 18, 2010 under which he will testify against Mr. Greer and will pay $65,093 in restitution to the party. Although Mr. Johnson also allegedly profited from the commission arrangement, prosecutors said that he was "under the dominion, control, and domination of Mr. Greer in the commission of the scheme to obtain monies from the Republican Party of Florida."
The witness list released by the prosecution consisted of 63 names, including Gov. Crist and Rep. Chris Dorworth (R-Lake Mary), who is in line to become House Speaker in 2014.
The evidence included a recording of a lengthy telephone call between Mr. Greer and Mr. Johnson, which Mr. Johnson made at the behest of the prosecutors. The conversation indicated that Mr. Greer's ouster was arranged by Sen. John Thrasher (R-St. Augustine), Senate President-designate Mike Haridopolos (R-Melbourne), House Speaker-designate Dean Cannon (R-Winter Park), and Attorney General Bill McCollum, a Republican candidate for governor.
Utility Regulation: Public Service Commission Nominating Council Rejects Two Sitting Commissioners
On June 30, 2010, the Florida Public Service Commission Nominating Council voted to interview 18 applicants for two vacancies on the Public Service Commission (PSC). The vacancies will be created when the terms of current PSC Chair Nancy Argenziano and Commissioner Nathan Skop expire at the end of 2010.
The council voted not to interview either of the outgoing commissioners, both of whom had applied for reappointment. The two commissioners were instrumental in the PSC's decision earlier in the year to reject a major rate increase proposed by Florida Power & Light (FPL).
The nominating council, which is appointed by the Senate President and the House Speaker, consists of six legislators and six members of the public. PSC Nominating Council Chair Sen. Mike Bennett (R-Bradenton) attributed the decision to concerns about a lack of collegiality on the commission, saying that it appeared that the two rejected commissioners "were more than willing to take the disagreement to the public. I just believe you don't need to do that. You can disagree without being disagreeable. We were looking for a Public Service Commission that will be more congenial, more cooperative."
The only vote to renominate Commissioner Argenziano came from Sen. Arthenia Joyner (D-Tampa). Commissioner Skop received the votes of Sen. Steve Oelrich (R-Gainesville) and public member Gerri McPherson.
Gov. Crist said he was "enormously disappointed" by the nominating council's decision and that the two commissioners "have served with such dignity and great passion and intellect for ratepayers all over the state."
Commissioner Argenziano blamed her rejection on the Legislature and Associated Industries of Florida, the business lobby, and their support of the FPL rate filling. "That this should have cost me my job, given the decrepitude of the Legislature, was a foregone conclusion."
Commissioner Skop said that the council's decision "shows the extent to which the Legislature is influenced by the companies we regulate. Four members of the commission who voted against the rate case have lost their job, which clearly smells of retaliation."
Among the 18 applicants who made the cut are six persons who were also nominated to fill two other vacancies on the PSC: term-limited Sen. Lee Constantine (R-Altamonte Springs), former PSC Executive Director Mary Bane, Jacksonville City Council member Art Graham, former Missouri Public Service Commissioner Connie Murray, attorney and former legislative staffer Charles Ranson, and current legislative staffer Kevin Wiehle.
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