So, how did the state’s business industry fare as lawmakers spent 60 days in negotiation and debate on tort reform, insurance deregulation, and tax relief?
Many of the key pieces of legislation that would have benefited businesses passed, and some gained bipartisan support.
“It’s ironic, I guess, but it seems the business community has some of the best sessions during times of economic uncertainty,” said Jose Gonzalez, vice president of governmental affairs for Associated Industries of Florida.
Mark Wilson, president of the Florida Chamber of Commerce, said this year provided the perfect storm for passing pro-business legislation.
Florida voters were urging lawmakers to create jobs, and business advocates were unified in their approach to gaining financial stability and stimulating employment with limited cost.
“We went an entire legislative session with no new taxes on the people of Florida and the people who employ them,” Wilson said.
Below are some of the key pieces of business-related legislation to pop up this session and analyses on whether they were victories or failures for business.
Unemployment Tax Hike Delay: SB 1666 and HB 5033
Verdict: Win
What Does the Legislation Do? Florida’s employers faced as much as a 12-fold increase in their tax bills this year due to an increase in the state unemployment tax. The two bills proposed to postpone the hike to save employers struggling in a troubled economy.
Who Sponsored It? Sen. Rudy Garcia, R-Miami, and Rep. Dave Murzin, R-Pensacola.
What Happened? The House bill passed the Legislature unanimously and was signed into law by Gov. Charlie Crist.
In the first and most wide-ranging triumph of the session for businesses, the Legislature voted on its first day to delay the tax hike for two years, and Gov. Charlie Crist quickly signed it into law.
The measure rolled back the base wage from $8,500 to $7,000, froze it there until 2012 and allowed employers to pay it in quarterly installments. Because of the delay, businesses will face a 15-fold increase in two years instead of a 12-fold one.
The legislation received widespread support from both Democrats and Republicans, a pleasant development for business advocates accustomed to having Republicans “butter our bread,” Gonzalez said.
“I got to say that the Democrats were very good to work with this session,” he said.
Slip & Fall: SB 1224 & HB 689
Verdict: Win
What Does the Legislation Do? Switches the burden of proof in slip & fall negligence lawsuits from defendants to plaintiffs.
Who Sponsored It? Sen. Andy Gardiner, R-Orlando, and Rep. Gary Aubuchon, R-Cape Coral.
What Happened? Crist signed the House bill into law.
Florida retailers have been lobbying for several sessions to convince state lawmakers to switch the burden of proof in slip & fall cases from retailers to customers filing the suits.
In the Owens v. Publix Supermarkets case of 2001, the Florida Supreme Court ruled that businesses must prove they were not negligent and caused a fall in a negligence suit. The Florida Retail Federation has been trying for several sessions to get the standards changed.
“This has been a long slog of getting this case decided by the Supreme Court years ago reversed,” said Rick McAllister, president of the Florida Retail Federation.
Now, businesses should be able to save money on proving innocence in tort cases, McAllister said.
Property Insurance Deregulation: SB 2044, SB 876 and HB 447
Verdict: Loss
What Does the Legislation Do? Allows private insurers to raise rates on their premiums.
Who Sponsored It? Sen. Garrett Richter, R-Naples, sponsored SB 2044. Mike Bennett, R-Bradenton, sponsored SB 876. Rep. Bill Proctor, R-St. Augustine, sponsored HB 447.
What Happened? Bennett’s and Proctor’s bills are dead, but Richter’s bill, which allows for yearly base rate increases if revenue is lost due to discounts, was passed by both chambers and is now on the governor’s desk.
The defeat of at least two of the rate hike bills is disappointing for many business advocates but not unexpected.
Crist has vowed to veto any legislation permitting unregulated property insurance rate hikes. Many lawmakers and pro-business think tank Florida TaxWatch recommended allowing for increases to improve consumer choice and ease the risk taken on by the state-run Citizens Property Insurance Corp.
“Trying to govern down the middle, he should approve this,” said Dominic Calabro, president and CEO of Florida TaxWatch.
Parental Liability Waiver for Children: HB 285
Verdict: Win
What Does the Legislation Do? Allows businesses to require parents to sign a liability waiver before letting them set foot on a rock wall or engage in other activities prone to cause injuries.
Who Sponsored It? Rep. Mike Horner, R-Kissimmee.
What Happened? Crist signed it into law.
The new law was prompted by a Florida Supreme Court decision that ruled waivers as unenforceable after a boy died in an accident at an ATV track. The bill was scaled back to apply only to businesses that offer activities with “inherent risk” that are characteristic or necessary to an activity.
Renewable Energy Bill: HB 7229
Verdict: Neutral
What Does the Legislation Do? Allows for investor-owned utilities to raise their rates to recoup costs from renewable energy projects.
Who Sponsored It? Rep. Stephen Precourt, R-Orlando.
What Happened? The House bill died in messages to the Senate, and attempts to amend another House bill to match it were withdrawn.
The legislation would have benefitted larger power companies but put smaller ones at a disadvantage, and its death is another hiccup in the state's attempt to transition to a renewable energy economy. Precourt's bill would have allowed the state’s four largest investor-owned utilities to raise their rates by as much as $386 million over three years to pay for their renewable energy projects. Critics felt the cost to ratepayers was too high and the legislation did not do enough to help independent producers.
Wilson said the abandoned legislation was one of the notable failures of the session. It would have allowed Florida to create a uniform policy for renewable energy, and it’s quite possible that rates would not rise as high as they could.
Jobs for Florida: SB 1752
Verdict: Win
What Is It? A long-stewing economic benefits package that expands tax incentives for certain business sectors and the film industry. It also channels state money toward the Space Coast in the wake of the retirement of Kennedy Space Center’s shuttle program and creates a state matching grant program for a federal research grant program.
Who Sponsored it? Sen. Don Gaetz, R-Niceville, and a slew of other lawmakers who amended and transformed it.
What Happened? It was passed by both chambers with many amendments and will be on its way to the governor.
The Jobs for Florida bill will cost nearly $200 million over three years. Among its many provisions, the bill:
- Channels millions toward recruitment and training for Space Coast workers.
- Requires the state to give preference to Florida workers and businesses when contracting construction projects.
- Puts $3 million toward creating a Florida Research Commercialization Matching Grant.
- Provides a per-person $1,000 tax credit for business that hire the unemployed.
- Expands tax credits for high-skilled, high-paying, qualified targeted industries and defense industries.
- Caps taxes on boat and refit purchases at $18,00.