JMEA Capitol Report December 07, 2015

JMEA Capitol Report December 07, 2015 Provided by: Capitol Alliance Group 106 E. College Ave, Suite 640 Tallahassee, FL 32301 1

I. OVERVIEW Final Interim Committee Week The final interim committee week of the 2016 Legislative Session ended last Friday as legislators and staff prepare for a short Holiday Break prior to the regular legislative session commencing January 12, 2016. The committee week ends a long summer and fall of 3 special sessions, two of which focused on congressional and senate redistricting which was unresolved and have been sent back to the Supreme Court for final decision. Budget The Governor released his 2016 budget which the House and Senate have begun to review and will consider as they develop their appropriations bills for consideration by their members in January and February. Senate President Designate Joe Negron This week in Tallahassee, Senator Joe Negron, R-Stuart, was formally designated as Florida Senate President-designate after a long and bitter struggle against his Republican colleague, Jack Latvala. The House selected their Speaker Designate, Rep Richard Corcoran several months ago. Bills Filed There have been 1084 bills filed to date, 24 of which we are monitoring as related to the electrical contracting industry. In a typical legislative session, over 2500 bills are filed, of which 10% pass. This year, there are substantially fewer bills filed for this time of the session. The Capitol Alliance Group team continues to monitor bills that affect the Electrical Contractors as they are filed as well as other policy issues related to the industry. Legislative Schedule The Legislative schedule is as follows: Jan. 12, 2016 March 11, 2016 Regular Session convenes 60th day - last day of Regular Session II. POLITICAL NEWS FROM AROUND THE STATE Gov. Rick Scott's Proposed 'Florida First' Budget: $79.3B, Tax Cuts Gov. Rick Scott on proposed a $79.3 billion budget for next year that would spend more on schools, cut taxes by $1 billion and eliminate nearly 1,000 more fulltime jobs from the state workforce. 2

Scott rolled out his spending plan at Harbinger, a sign-making company on Jacksonville's south side where owner Roger Williams and dozens of his workers helped to promote Scott's call to permanently end the sales tax on equipment used in manufacturing. Scott's "Florida First" budget would be about $1 billion more than current spending, after allowing for Scott's $461 million in line-item vetoes. The governor's budget is only a recommendation to the Legislature, which has the final spending authority, and in the past five years lawmakers have accepted only pieces of his recommendations. Senate President Andy Gardiner has already said he would support starting with just $250 million in tax cuts and wants to restore budget cuts in various programs. Scott's proposal puts on record his priorities as the biggest needs in the state and where he's prepared to do battle with lawmakers. His plan reflects two pillars of his successful 2014 campaign for re-election in which he promised Florida voters $1 billion in tax cuts over two years and a "historic' increase in per-pupil spending. His budget sets aside $7,221 per student and would surpass the previous record for per-pupil funding by $95. Scott would permanently eliminate income taxes on manufacturing, retail businesses and cut taxes on commercial leases over two years, and permanently eliminate sales taxes on manufacturing equipment. Those cuts alone would be worth over $1 billion. For consumers, Scott has a $46 million sales tax exemption for college textbooks for one year, and a nearly$73 million break on temporary sales taxes for back to school shopping and another for disaster preparedness supplies. Scott's budget continues to increase the size of the state's bottom line while reducing the number of employees by 863 positions, a signal that the state continues to shift jobs to the private sector. The two agencies absorbing the most cuts are the Department of Health and Department of Environmental Protection, both losing staff that the governor's office says are mostly vacant positions. Already, Scott has been locked in a fight with the Florida Senate over money he says he needs to recruit companies to move to Florida a key element of his campaign for office. Scott's budget includes $250 million for a new Enterprise Fund to expand programs bring in companies, even as Legislators have questioned how that fund has been structured and used in the past. The governor's budget will be the starting point for negotiations with the House and Senate in the 2016 regular session that begins on Jan. 12. The new budget will take effect next July 1. 3

Negron Chosen As Senate President Stuart Republican Joe Negron, who until a month ago was locked in a contentious and expensive leadership battle, was formally designated Wednesday as the next president of the Florida Senate. Members of the Republican caucus, praising Negron's "matter-of-fact style" and offering a video message about leadership from former Atlanta Braves star Dale Murphy, unanimously voted to have Negron take the gavel from President Andy Gardiner after the 2016 elections. Negron, a 54-year-old attorney who has become a champion for South Florida water issues, said he intends to make priorities of state university affordability and juvenilejustice reform. Negron recounted a water-balloon throwing incident when he was about 13 or 14 in which a law-enforcement officer whose vehicle was splattered took him to his father rather than to juvenile detention. As part of his goals to make universities more affordable, Negron intends to push for $1 billion after the 2016 session for academic programs tied to performance and to restore part of the state's Bright Futures Scholarship program to pre-recession levels. The proposal, which deals with the Academic Scholars part of the program, would cover 100 percent of tuition and provide $300 stipends for textbooks. With Gov. Rick Scott pushing for $1 billion in tax cuts this year, Negron acknowledged after the meeting that his education proposal will require Florida's economy to remain healthy. Negron said he will also continue to focus on South Florida water issues, primarily water releases east and west from Lake Okeechobee. After health concerns grew from polluted water releases from the lake in 2013, Negron spearheaded $231 million in projects to shift the flow from the lake south in the Everglades. Wednesday's vote put a formal end to the clash between Negron and Clearwater Republican Jack Latvala, who battled to run the chamber in the 2017 and 2018 sessions. The race had consumed Senate's politics --- and policies --- for more than three years, impacted GOP leaders' priorities and resulted in bad blood between Republicans who dominate the chamber. The more-moderate Latvala ceded the contest last month after agreeing to serve as the powerful chairman of the Senate's budget committee. Scott s Jobs Chief Leaving In January Jesse Panuccio, Gov. Rick Scott's jobs chief who was expected to face intense scrutiny during upcoming Senate confirmation hearings, announced Friday he is stepping down. 4

The governor's office said Panuccio is seeking "new opportunities" and that his replacement will be named in the coming weeks. Panuccio, who has been with Scott since shortly after the governor took office in 2011, said in a resignation letter that his last day as executive director of the Florida Department of Economic Opportunity will be Jan. 8. Panuccio has been one of Scott's biggest cheerleaders, sending out monthly employment numbers and other releases that praise Scott's policies for growth in jobs across the state. Panuccio was one of 16 agency heads who failed to be confirmed by the Senate during the 2015 legislative session, which was dominated by health-care fights in which Scott often sided with the House. All 16 were quickly reappointed by Scott. But to retain their jobs for longer one year, the appointees must again go through the Senate confirmation process. Scott Proposes $80 Million For Tourism Marketing The state's tourism-marketing arm would receive a boost of $6 million from the current year under Gov. Rick Scott's proposed $79.3 billion budget released. The proposal comes amid Scott's drive for Florida to attract 100 million visitors in a single calendar year. Under his proposal, Visit Florida would receive $80 million during the fiscal year that starts July 1, of which $30 million would be non-recurring or one-time funds for its marketing efforts. State lawmakers will craft a final budget during the 2016 legislative session, which begins in January. Scott announced last week that Florida saw a record 79.1 million tourists in the first nine months of the year, with the tourism industry now accounting for 1.195 million jobs, up 5.2 percent from a year earlier. Speedway, Football Stadiums To Play For State Cash Florida's three professional football stadiums and Daytona International Speedway are seeking millions of dollars from the state to help pay for upgrades that in most cases are already underway. The applications have been filed despite continued opposition from House leaders to such funding. Applications submitted Monday --- the deadline to file --- were from Buccaneers Football Stadium Limited Partnership for Raymond James Stadium in Tampa and from the city of Jacksonville and the Jacksonville Jaguars for EverBank Field. The speedway filed its application Friday, joining an earlier submission from South Florida Stadium LLC, which oversees the Miami Dolphins' home, Sun Life Stadium. The Department of Economic Opportunity will begin reviewing the applications to determine the potential returns on investment and to rank the proposals for the 2016 stadium funding process. Earlier this year, House leaders turned back attempts to steer state money to Sun Life Stadium, the speedway, EverBank Field and a soccer stadium in downtown Orlando. 5

Proponents of stadium funding say the money goes to projects that create jobs, attract tourists and increase regional trade. Critics, such as the conservative-advocacy group Americans for Prosperity, question the economic return on investment and call stadium funding "corporate welfare." The Daytona speedway and South Florida Stadium are each again seeking $90 million - $3 million a year for 30 years. The state agency didn't immediately release how much was requested for the Jacksonville and Tampa stadiums. The state process allows stadium backers to apply for as much as $3 million a year when projects total more than $200 million. They can seek up to $2 million a year if construction or improvements are between $100 million and $200 million. The requested amount is limited to $1 million a year when the work is below $100 million. Jacksonville sought $1 million a year for three decades from the state during the 2015 process. The Tampa Bay Buccaneers, who play in the Hillsborough County-owned Raymond James Stadium, have been in discussions with the county and the Tampa Sports Authority for $75 million to $100 million in upgrades to the facility. The Legislature created a new funding method for professional stadiums in 2014 in an attempt to reduce the lobbying from prior years for state money. Initially $7 million was set aside in potential sales-tax revenue that could go to stadium projects, with the annual pool of money growing to $13 million in 2016. The law gives the Department of Economic Opportunity 60 days to determine if an application should go forward and to rank all the applications by Feb. 1, something the agency didn't do with the four proposals that were made for the 2015 legislative session. III. KEY LEGISLATION CAREER AND ADULT EDUCATION AND APPRENTICESHIP LANGUAGE SB 7017 Related to Career and Adult Education is a major bill related to trades and career education programs which in addition to adding language regarding "journeyworker" and apprenticeship programs, identifies several eligible programs as part of the big push for Career and Professional Education (CAPE) programs in an attempt to strengthen trades and career job opportunities. The bill does a variety of things, one being it promotes apprenticeship programs by creating the Florida Apprenticeship Grant (FLAG) Program to expand existing and establish new apprenticeship programs, updating terminology, revising membership on the State Apprenticeship Advisory Council, and clarifying language relating to industry standards. 6

However, there may be changes here that would adversely impact our current apprenticeship efforts, so please review the staff analysis and let me know if we need to be concerned about anything. The bill is in its final committee in the House, while the Senate version has yet to move. MINIMUM WAGE BILLS Florida Democrats have filed legislation to more than double the state's minimum wage to $15 an hour, an eye-popping figure they hope will spark an outpouring of activism aimed at pressuring the Republican-controlled Legislature to act. The legislation, SB 6, is sponsored by Sen. Dwight Bullard (D-Miami), who for years has tried unsuccessfully to raise Florida's minimum wage of $8.05, currently set slightly above the federally-mandated minimum of $7.25 an hour, to $10.10. More than two dozen other states have higher minimum wages than the federal standard. PUBLIC WORKS PROJECTS HB 181 by Rep. Charles Van Zant (R-Palatka), creates an unnumbered section of law relating to public works projects. The bill defines the terms political subdivision, public works, and public works project. It prohibits the state or a political subdivision, except when required by state or federal law, from requiring a contractor, subcontractor, or material supplier or carrier engaged in the public works project to: Pay employees a predetermined amount of wages or prescribe any wage rate; Provide employees a specified type, amount, or rate of employee benefits; Control, limit, or expand staffing; or Recruit, train, or hire employees from a designated, restricted, or single source. In addition, the bill provides that the state or a political subdivision that contracts for a public works project may not prohibit a contractor, subcontractor, or material supplier or carrier from submitting a bid on the project if such individual is otherwise qualified to do the work described. RENEWABLE ENERGY SOURCE DEVICE BY SENATOR BRANDES SB 172 by Sen. Jeff Brandes (R-St. Petersburg), is the implementing legislation for SJR 170. The bill expands the definition of renewable energy source device to include devices that store solar energy or energy derived from geothermal deposits and expands the exemption for renewable energy source devices from consideration in appraised property value to all real property. It also creates s. 196.182, F.S., exempting renewable energy source devices, and any components thereof, from the tangible personal property tax. These changes would take effect January 1, 2017, should the constitutional amendments proposed in SJR 170 or a similar joint resolution having substantially the same specific intent and purpose be passed by three-fifths of the membership of each house of the 7

Legislature and be approved by vote of at least 60 percent of the electors voting on the measure at the next general election, in which case the constitutional amendments proposed by SJR 170 will become effective on the first Tuesday after the first Monday in January following the election, or on such other date as may be specified in the amendment or revision. FLORIDA BUILDING CODES HB 535 by Rep. Eagle (R-Cape Coral) and SB 704 by Sen. Hutson (R-Palm Coast), seeks to revise the certification examination requirements for building code inspectors, plans examiners, and building code administrators; authorizing local boards created to address specified issues to combine the appeals boards to create a single, local board; requiring all new high-rise and existing high-rise buildings to maintain a minimum radio signal strength for fire department communications; creating the Calder Sloan Swimming Pool Electrical-Safety Task Force within the Florida Building Commission, etc. Jeff Sharkey testified before the House Business and Professions Subcommittee against an amendment filed by Rep. Eagle and raised concerns about the elimination of licensing requirements for electrical repairs of HVAC and water heaters at apartment complexes. The amendment reduced the repair amount to $500 from $1000. The amendment was voted up and incorporated into a Committee Substitute, which now mirrors last year s language. Rep Eagle committed to working with concerned parties to fix the bill related to apartment management. HB 51 by Rep. Kristin Jacobs (D-Coconut Creek), seeks to prohibit certain technical amendments to Florida Building Code adopted by local government from being rendered void in certain circumstances; specifies that such amendments are subject to review or modification when new edition of Code is issued. CALDER SLOAN SWIMMING POOL ELECTRICAL-SAFETY TASK FORCE SB 530 and HB 295 by Sen. Eleanor Sobel (D-Hollywood) and Rep. Eric Fresen (R-Miami) creates the Calder Sloan Swimming Pool Electrical-Safety Task Force within Florida Building Commission; specifies purpose of task force; requires report to Governor & Legislature; provides for membership; requires Florida Building Commission to provide staff, information, & other assistance to task force; provides for future repeal of task force. Contact Information: Dr. Jeffrey Sharkey Capitol Alliance Group 106 E. College Ave. Suite 640 Tallahassee, FL 32301 (850)224-1660 jeff@capitolalliancegroup.com 8

Taylor Patrick Biehl Capitol Alliance Group 106 E. College Ave. Suite 640 Tallahassee, FL 32301 (850)224-1660 taylor@capitolalliancegroup.com 9