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In This Issue...
- Florida Retirement System
- Career and Professional Education Act
- From the News Service of Florida Wire
- Back Issues of Perception
2013 Legislative Session - Week 3
Almost Halfway There
We are headed into the fourth week of the 2013 Legislative session and some things are quickly moving through the process. Week 4 will be a shortened week in Tallahassee due to the Passover and Easter Holidays and business will only be conducted on March 27 - 28.
The Senate released initial budget proposals last week which provides about a 2% overall increase to the CCPF. The House should release their initial education budget on March 27. We are hopeful that there will be some new money allocated and no major cuts to developmental education as we have seen in the Senate budget. We also expect the House to release a bill to address dual enrollment funding. Last week, some presidents met with Sen. Negron (Appropriations Chair) on the issue of Developmental Education. Although the Florida College System supports some reforms to how we deliver Developmental Education, we are requesting the funding not be changed as in the Senate proposal.
BILLS WE ARE WATCHING
HB 7011 by Brodeur and the Governmental Operations Subcommittee - Florida Retirement System
As previously reported, House Speaker Will Weatherford's top priorities this year include revamping the Florida Retirement System. He wants to require all newly hired employees join the "defined contribution" plan, an investment system similar to 401(k) plans in the private sector. Rep. Jason Brodeur, R-Sanford, has a more restricting reform plan that carries out Weatherford's will. It would close the FRS to new employees after Jan. 1, 2014, requiring them to take the investment plan.
Current employees would not be impacted but Democrats and organized labor oppose the change, contending the system is not broken and needs no fixing. Weatherford and Gov. Rick Scott cite a $19B unfunded actuarial liability (UAL), costing about $500 million a year, as reason enough to make the change. The current FRS fund is at about 89%. This means that if the FRS had to pay every single member out at once, there are 89% of the funds needed to do that. The standard is 80% since it is never likely that all members would have to be paid out simultaneously.
The Senate has a different approach to the reform plan. Sen. Wilton Simpson, R-Trilby, offered SB 1392 that lets new employees continue joining the pension plan; however, closes it to senior management and elected officials effective January 1, 2014 (only 1.5% of FRS members). New members in these classes would have to join the "defined contribution" plan. The Senate model also recommends employees would have incentives for choosing the investment plan. Those who opt for the investment plan will only chip in 2% of salaries, rather than the 3% employees pay now. Also, vesting in the investment plan comes in one year, rather than the 10 years (up from eight) Simpson's bill would require in the defined-benefit plan.
On March 22, the full House passed HB 7011 by a 73-43 vote, sending it to the Senate. House Majority Leader Steve Precourt, R-Orlando, and bill sponsor Rep. Jason Brodeur, R-Sanford, emphasized that no current public employees would be forced to change pension plans. Precourt said "we're simply taking on too much risk for the taxpayers." Democrats argued unsuccessfully that Florida has one of the nation's most healthy pension plans. "Where is the crisis?" said Rep. Michelle Rehwinkel-Vasilinda, D-Tallahassee. Senate seems to be holding firm on its version of the reform effort so we expect a hearty negotiation in conference committee around week seven or eight.
HB 655 by Precourt - Political Subdivisions
This bill amends current law to also prohibit political subdivisions from requiring an employer to provide employment benefits that are not required by state or federal law. The term “employment benefits” refers to anything of value that an employee may receive from an employer in addition to wages and salary. The term includes, but is not limited to, health benefits; disability benefits; death benefits; group accidental death and dismemberment benefits; paid or unpaid days off for holidays, sick leave, vacation, and personal necessity; retirement benefits; and profit sharing benefits. The term “employer” refers to any person who is required to pay a state or federal minimum wage to the person’s employees.
This bill also prohibits a political subdivision from:
Requiring, as part of a contract with the political subdivision, a minimum wage or employment benefit for employees of a political subdivision’s contractors or subcontractors;
Requiring, as a condition of receiving an abatement or subsidy, a minimum wage or employment benefit for employees of an employer that receives tax abatements or subsidies; or
Awarding contract preferences based upon the wages or benefits provided to employees.
However, the bill does not limit the authority of a political subdivision to establish a minimum wage or provide employment benefits not otherwise required under state or federal law for its own employees. HB 655 is the only bill filed by the House Majority Leader Steve Precourt, we expect it to move quickly through the process. Bill was placed on the House Calendar on March 12, 2013.
SPB 7038 (Senate proposed bill)) by Senate Appropriations Committee - Health Care
SPB 7038 amends several sections of the Florida Kidcare Program Act under Part II of chapter 409, Florida Statutes, to remove obsolete provisions and conform other provisions with changes in federal laws and regulations relating to the implementation of the federal Patient Protection and Affordable Care Act (Public Law 2011-148), as amended by the Health Care and Education Reconciliation Act of 2010 (Public Law 2011-152), known collectively as “PPACA,” and the Supreme Court ruling in National Federation of Independent Business v. Sebelius.1
The bill adds definitions for “modified adjusted gross income” and “household income” to align with changes in Medicaid and Children’s Health Insurance Program (CHIP) program eligibility laws and regulations and removes definitions that are no longer applicable to the program. The bill removes authority and provisions for an employer-sponsored insurance premium assistance program component in Florida Kidcare. Notification requirements for certain Florida Kidcare disenrollees regarding other insurance options on the exchange, as defined under PPACA, are added, and the non-subsidized program under Florida Kidcare is phased-out. The bill includes provisions for electronic eligibility matching through the exchange hub and an option for written documentation when matching is not feasible.
The bill would have an indeterminate fiscal impact. Estimates of the increased administrative costs incurred by the Florida Healthy Kids Corporation are yet to be finalized. The costs for providing coverage to new enrollees under the bill are estimated to be approximately $1.26 billion in federal expenditures for state fiscal year 2013-14.
CS/HB 1076 by Legg – Career and Professional Education Act (CAPE)
This bill revises what is to be included in the strategic plan that the BOG must develop and includes criteria for the designation of certain baccalaureate degree programs and graduate degree programs as high-demand programs. It also revises requirements for high school graduation and accelerated high school graduation to include financial literacy and a rigorous industry certification program of study. It specifies that the Postsecondary Industry Certification Funding List shall be used in determining annual performance funding distributions to school districts and Florida College System institutions based on industry certified completers. The bill would enable industry certifications in the high school curriculum to meet grad requirements by “ensuring that the same rigorous standards required in current course curricula are met during the process of earning a rigorous industry certification”. The bill has passed two committees of reference and is slated next to be heard in Senate Appropriations. There is no identical companion but some elements of this bill may be found in HB 7057, HB 7091, and SB 1720.
SB 1718 by Flores and HB 1295 by Fresen – Miami-Dade Local Referendum
This bill authorizes a county defined in s. 125.011(1), F.S., to levy a surtax up to a specified amount for the benefit of a Florida College System institution in the county. This can only be accomplished pursuant to an ordinance to take effect upon approval in a county referendum to the voters. The bill also establishes an oversight board with specified duties, responsibilities, and procedures relating to the expenditure of the surtax proceeds. The bill includes a provision that would not allow the State from reducing funding to the college because an institution receives surtax funds.
Name Change Bills
Two of our colleges are seeking official name changes. Despite each college’s board approving the name change, Florida law requires the legislature approve it. Currently Brevard Community College is seeking approval to change its name to Eastern Florida State College, and Lake Sumter Community College is seeking approval to change its name to Lake Sumter State College. Typically, name change bills face little if any opposition in either chamber.
SB 1640 by Sachs and HB 1343 by Berman – Gun Control
These bills would require universal background checks. Despite the national debate sparked by the Aurora, Colo., and Newtown, Conn., mass killings last year, there is little prospect of favorable action on either bill. They were introduced March 8 and assigned to committees, where they might not even get a hearing. If they do, look for a massive outpouring of public comment from both sides -- but Hammer's contention that background checks have very little impact on crime will likely be more persuasive.
Another gun bill, HB 1355 by Rep. Barbara Watson of Miami Gardens, was worked out with Hammer and gun advocates. It is intended to prevent people adjudicated incompetent under the Baker Act, the state's major mental-health statute, from legally buying firearms. It is pending in the House Judiciary Committee. The Quinnipiac University Polling Institute released a survey indicating 91% of Floridians favor universal background checks prior to gun purchases, with only 8% opposed. Even gun owners favored the background checks by an 88% to 11% margin.
HB 751 by Campbell and SB 1610 by Thompson (identical) – Adult Education Fees
These bills would greatly increase student fees for adult education programs and would delete the assessment of block tuition. The cost to the student would increase by about $50 per course. The bill also disallows not-for-profit institutions that currently pay for students from doing so. Neither bill has moved through their respective committees of reference yet.
CS/HB 7027 by the Choicer and Innovation Subcommittee and SB 878 by Galvano (similar) – Educational Accountability
The House bill modifies school grade calculations to possibly include charter schools. The bill also
significantly increases duties of the Articulation Coordinating Committee (ACC) regarding access, quality and reporting of data in the K-20 data warehouse, and requires it to facilitate timely reporting of data by ALL educational delivery systems, outside organizations and authorized reps. The bill expands the role of the Higher Education Coordinating Council to facilitate solutions to data issues identified by ACC and promote the adoption of a common set of data elements. The bill would also require the Commissioner of Education to work with Department of Economic Opportunity (DEO) to develop an ability to tie student level data to student and workforce outcome data. The Commissioner must develop a self-service “research engine” to the data warehouse so data inquiries can be easily achieved. The House bill has passed one committee of reference and will next be heard in the House Education Committee.
Similarly, SB 878 asks the State Board of Education to notify the Legislature of any major changes in federal law which may affect the state’s K-20 education performance accountability system. It requires the Board of Governors to make available to the Department of Education all data within the State University Database System which is to be integrated into the K-20 data warehouse. It also revises provisions relating to schools that are assigned school grades, including co-located schools, and students whose assessment data is used in determining school grades. The bill has its committees of reference in the Senate and will be moved to the Senate floor for vote this week.
Medicaid Expansion
The Senate Appropriations Committee Chairman Joe Negron has a plan to amend the Florida Kidcare Act of 1998, which created the Healthy Kids program, to provide coverage to people with an income of up to 138% of the federal poverty level. The proposal makes other changes to the act to qualify for the subsidies available under the Affordable Care Act. Enrollees would pay small premiums for private insurance; copays for doctor visits and hospital stays – as little as $2 – and qualify for health reimbursement accounts. Negron’s Healthy Florida proposal is an attempt to appease concerns of lawmakers reluctant to add about 1 million people to what they think is a broken Medicaid program and others reluctant to reject $51 billion in federal subsidies over 10 years to cover the cost of the new enrollees. The Negron plan is based on the five principles the Senator outlined during a March 11 meeting.
FROM THE NEWS SERVICE OF FLORIDA WIRE…..
Everglades Compromise Passes House
Compromise legislation that would allow the state to push forward with the next phase of Everglades restoration unanimously passed the House on Friday. The 114-0 vote on the bill (HB 7065) came after agricultural interests and the environmental movement agreed on language to add the updated plan to state law and extend higher tax rates for permit holders in the Everglades Agricultural Area on the north end of the "River of Grass." All sides of the issue hailed the agreement. "Protection and restoration of the Everglades has historically been based on compromise and many parties working together, and I believe this legislation is further proof of that," said Eric Eikenberg, CEO of the Everglades Foundation, in a statement issued after the vote. "This legislation demonstrates the art of compromise between all parties and is a victory for all of us who have been part of Everglades restoration efforts for 20 years," said Robert Coker, senior vice president of U.S. Sugar, one of the major agricultural business in the EAA. The bill is expected to easily clear the Senate, and Gov. Rick Scott put out a statement Friday indicating he will sign the legislation.
House Approves Optometry Compromise
The House voted 116-0 on Friday to approve a compromise bill that would end a long-running controversy about expanding the drug-prescribing powers of optometrists. Optometrists are able to prescribe "topical" drugs, such as drops and creams, but have sought to also prescribe oral drugs. The bill (HB 239) includes 14 oral drugs that optometrists would be able to prescribe, including certain types of antibiotics and anti-glaucoma drugs. But it also includes limitations, such as barring optometrists from prescribing many types of controlled substances. Ophthalmologists have long fought the expanded prescribing powers, arguing, in part, that optometrists don't have the same training as medical doctors. But groups representing ophthalmologists and optometrists said they agreed to the compromise, which also cleared the Senate Appropriations Committee on Thursday. It is now headed to the Senate floor.
Failing School Trigger Measure Clears Final House Stop
One of the most controversial bills of the 2012 legislative session, and one already making waves in 2013, passed its final House committee stop Friday on a party-line vote. The measure (HB 867) would allow parents to petition their school board to adopt a specific turnaround option for any school that draws an "F" on state report cards for two straight years. If the local school board chooses a different turnaround plan, the State Board of Education would make the final selection. The bill passed the committee on an 11-7 vote. Supporters of the Parent Empowerment in Education legislation say it encourages parents to get involved in their children’s schools; critics say the measure, sometimes called the parent trigger bill, could allow politically savvy private corporations to essentially campaign to take over a public school. The measure died last year on a tie vote in the Senate, where that chambers version (SB 862) hasn’t been scheduled for any of its three committee stops.
Immigrant Tuition Bill Headed To House Floor
A measure allowing some children of undocumented immigrants to get in-state tuition is headed to the House floor after passing its last committee stop Friday. The measure (HB 7051), sponsored by Rep. Jeanette Nunez, R-Miami, was unanimously approved by the House Education Committee. The bill allows students who are citizens and attended high school in Florida for three years to be eligible for in-state tuition, regardless of their parents' immigration status. The measure largely follows the outline of a federal court decision last year striking down a state law requiring those students to pay the higher, out-of-state tuition rates. Supporters say the bill is still significant, in part because it covers groups beyond immigrants, including veterans.
House Education Panel Moves Charter Bill
Legislation about charter schools is en route to the House floor after passing the House Education Committee on Friday. The measure (HB 7009) is aimed in part at standardizing the process for opening new charter schools and cracking down on a few problem charters. It passed 12-6, with most of the panels Democrats hesitant about a portion of the bill that would allow buildings that had been schools but are no longer being used as schools to be turned over to a charter school on request. Rep. George Moraitis, R-Fort Lauderdale, has said he is willing to work on the language about buildings.
State Files To Block Injunction Against No-Fault Auto Insurance Law
Florida Insurance Commissioner Kevin McCarty is asking a court to allow continued enforcement of the new Personal Injury Protection law, appealing an injunction a Tallahassee circuit court judge issued Wednesday. Leon County Circuit Judge Terry Lewis ruled the law that Gov. Rick Scott signed last May illegally prevents accident patients from using PIP claims to pay for treatment by acupuncturists and massage therapists. He also found fault with the law's lower limit on how much it will pay for non-emergency medical care. The Office of Insurance Regulation, in its filing on Thursday, sought a stay of the injunction pending its appeal to the 1st District Court of Appeal. The law was expected to eventually lower rates 14 percent to 24.6 percent, but the savings have been slow in coming. The bill was considered a last ditch effort to maintain the no-fault coverage that requires motorists to carry $10,000 in medical coverage. The alternative would be to replace the system with bodily injury insurance, which could put medical coverage into the courts as the injured party seeks to recoup expenses from the at-fault motorist. Scott, who pushed for the PIP changes, promised to fight for the new law. "Our personal injury protection legislation was designed to stop the high costs passed on to Florida families by car insurance companies because of excessive lawsuits, waste and fraud, Scott said in a statement after Lewis' ruling. "Since our legislation, more than 70 percent of the insurance rates approved by the Office of Insurance Regulation have either decreased or held steady, compared to a majority of rate increases before our reforms. Our reforms are working to lower insurance costs for Florida families and we will continue to fight special interest groups to keep them in place."
Scott Repeats Call For Citizens To Revoke Executive Pay Hikes
A series of pay hikes for executives at Citizens Property Insurance Corp. in the past year, some reaching $31,000 a year, have been highly criticized by Gov. Rick Scott. On Friday, he reiterated his displeasure with the pay raises. Citizens board members said Friday morning during their meeting in Orlando that they believe their executives still aren’t compensated equally to their counterparts in the private insurance industry. The comments drew a statement from the governor’s office in which Scott called for the state-backed insurer to revoke the raises and continue reforms requested by the states Inspector General to become "responsible stewards of the taxpayer funds." "Citizens claims that they need to pay their executives more because of their history of controversy is simply ridiculous," Scott said in the statement. "A few weeks ago, I asked Citizens to give back outrageous pay raises they doled out to their executives last year." Board members, proclaiming the agency shouldn’t be run based upon media reports, did support President and CEO Barry Gilways reduction in the daily meal stipend from $60 to $36 and mileage from the federal 54-cents a mile rate to the states 44-cents.
Perception is compiled weekly and distributed to AFC members.
Special thanks go to the members of the AFC legislative committee for their contributions to this issue of Perception.
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