LobbyTools Policy Briefing 12/2/2022

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Here's your weekly wrap-up of legislative news in Florida. Brought to you by the policy professionals at LobbyTools, Florida's most trusted legislative intelligence company.

State Finance

State to Divest Money Invested Using ESG

The state will divest $2 billion in assets that were invested by money manager BlackRock using the investing principles known as Environmental, Social, and Governance standards, or ESG. The move is the largest divestment effort by a state to date because of opposition to ESG investing. Chief Financial Officer Jimmy Patronis, who oversees $60 billion in state taxpayer money, said the state will freeze about $1.43 billion worth of long-term securities and pull $600 million in short-term overnight investments from BlackRock’s management beginning in 2023. BlackRock oversaw $1.43 billion of Florida's Long Duration Portfolio, which manages investments such as corporate obligations, asset backed securities and municipal bonds. BlackRock also exclusively managed the Treasury's $600 million Short Term Investment Fund, which invests excess cash on a short-term basis. "Whether stakeholder capitalism, or ESG standards, are being pushed by BlackRock for ideological reasons, or to develop social credit ratings, the effect is to avoid dealing with the messiness of democracy," said Patronis. "I think it's undemocratic of major asset managers to use their power to influence societal outcomes." The practice of ESG seeks to consider factors like systemic racism and economic inequality, or environmental effects, when making investment decisions. Both Gov. Ron DeSantis and new House Speaker Paul Renner have spoken out against the use of ESG, emphasizing that the state should invest in financial institutions that solely focus on return on investment. Reuters / Wall Street Journal / Fox Business / Florida Politics / Orlando Sentinel / USA Today / City and State Florida / Patronis Press Release

Florida Unlikely to Make Major Change to Jobless Benefits

Florida has the second lowest jobless benefit in the nation, and could consider making changes to the unemployment compensation laws. But if lawmakers do make any changes, they won’t be dramatic, House Speaker Paul Renner said. Center Square

Insurance

Insurers Expect Lawsuit Changes in Special Session?

Florida lawmakers may end some attorney fee arrangements in claims litigation, further limit assignment-of-benefits agreements and add yet another layer of state-backed reinsurance for carriers during the special session on insurance coming up next month. Industry officials and experts also anticipate some adjustments to the Florida Hurricane Catastrophe Fund, perhaps allowing easier access to the fund's backup coverage. The Legislature is expected to hold a special session beginning Dec. 12 to try to shore up the property insurance system in the face of premium increases that have made coverage unaffordable for many. Insurance Journal

K-12 Education

Diaz to Continue as Ed Commissioner

Former lawmaker Manny Diaz Jr. will continue to serve as Education Commissioner for Gov. Ron DeSantis' second term as governor. Diaz was elected to the House in 2012 and moved to the Senate in 2018, where he served until DeSantis appointed him as Education Commissioner in June. Diaz replaced former House Speaker Richard Corcoran in the top Department of Education position. Diaz has experience teaching and most recently was vice president of financial affairs at Doral College. Diaz helped implement several DeSantis-backed measures, including new laws that prohibit instruction on gender identity and sexuality in lower grades and another proposal that restricts how issues related to race, racism and the history of racial relations can be taught in public schools. Florida Politics

Senate Bill Requires Schools to Share Social Media Safety Info

Legislation filed Thursday in the Senate would require the Department of Education to make social media safety instruction material available online and require districts to notify parents that it is there. The measure (SB 52) was filed by Sen. Danny Burgess, R-Zephyrhills, for a second year in a row. "Our children need us," Burgess said in a statement. "I filed SB 52 to protect our kids and empower parents. Being a parent today requires constant vigilance and education, but parents do not have to do this alone." Florida Politics?

New Boards Assert Power, Fire Superintendents

School boards with several new members elected earlier this month are starting to purge district officials who enforced COVID mandates. Boards with new conservative members in Brevard and Sarasota counties have within a couple weeks of taking office pushed out or fired superintendents over those policies. The new board in Broward County also fired the superintendent there, but for other reasons. Politico?

Local Government

Lawmakers May Undo Disney Special District Law

The change in leadership at Disney, which named former CEO Bob Iger to once again head up the company, makes it possible that Florida lawmakers will reverse a high profile move that stripped Disney of its right to run the private government known as the Reedy Creek Improvement District around its theme parks. The Legislature abolished the special taxing district earlier this year at the behest of Gov. Ron DeSantis as punishment for not supporting the governor's move to restrict teaching about LGBTQ issues in Florida schools. The Financial Times reported Friday that legislators are working on a compromise plan that could keep the Disney special district in place. Rep. Randy Fine, who sponsored the bill (SB 4C) that ended the district, said the removal last week of CEO Bob Chapek and his replacement by Iger could improve chances of rescinding the move. A spokesperson for DeSantis, however, said the governor wouldn't support a reversal. "The governor was right to champion removing the extraordinary benefit given to one company through the Reedy Creek Improvement District," the spokesperson?told NBC News. Financial Times

Law Enforcement

DMS Considering Protest Rules for Capitol

The agency that manages state property heard this week from several opponents of proposed new rules that would allow police to remove people from the Capitol if they use indecent language when protesting, or create disturbances, or a "disruption to official duties." Rules proposed by the Department of Management Services note that state buildings are "nonpublic forums" where demonstrations may be prohibited when necessary to protect the public or employees or when people are causing a disturbance that "is likely to impede or disrupt the performance of official duties" of state workers. The proposed rules also say that "because the Capitol Complex is often a destination for children learning about their state government, visual displays, sounds, and other actions that are indecent, including gratuitous violence, gore, and material that arouses prurient interests," aren't allowed in indoor portions of the Capitol. Several people attended a public meeting this week in Tallahassee to speak against the proposed new rules. Tallahassee Democrat / Florida Administrative Register

Florida's Crime Rate Dropped in 2021

Florida's overall rate of certain crimes decreased by 8.3% in 2021, reaching a 50-year low, according to Annual Uniform Crime Report statistics released Wednesday. The data, reported by the state to federal officials, shows Florida had 38,524 fewer reported tracked index crimes than in 2020. Violent crimes, property crimes and domestic violence incidents all declined last year. The Florida Department of Law Enforcement said 239 state law enforcement agencies submitted summary-based crime statistics covering 57.5% of the population. Some agencies did not submit data because they are transitioning to Florida Incident-Based Reporting, which provides more detailed information on each crime occurrence. FDLE Press Release

Fried Urges First Responder Bonuses for Dispatchers?

Emergency 911 dispatchers were not a part of Gov. Ron DeSantis' initiative to award $1,000 bonus checks to Florida first responders, but outgoing Agriculture Commissioner Nikki Fried wants to change that. The state issued bonus checks to local firefighters and law enforcement officers impacted by Hurricane Ian, with the money coming from federal COVID-19 relief dollars and administered through the Florida Essential First Responder Recognition Payment Program. But Florida is among 32 states nationwide that don't consider 911 dispatchers first responders. Fried sent a letter to DeSantis urging him to include the emergency phone operators who worked long hours and took thousands of traumatic calls while Hurricane Ian barreled through the state. She also noted Florida Forestry personnel and other Agriculture Law Enforcement officers who assisted in hurricane recovery efforts, such as search and rescue, were not eligible for the $1,000 first responder bonuses. Fried will also ask lawmakers to designate 911 operators as first responders this upcoming session. Similar proposals to designate emergency phone dispatchers as first responders have been filed in the past but none have been successful. Fried Press Release / Florida Politics

Fried Pushes for Marijuana Pardons

Agriculture Commissioner Nikki Fried sent a letter to Gov. Ron DeSantis urging him to pardon Floridians convicted of simple marijuana possession following President Biden's pledge to do the same at the federal level. The letter also comes after the governor canceled the final Cabinet and Clemency Board meetings scheduled for this year. "I am asking the governor to take the correct and popular step, hold our Clemency Board meeting, and consider pardons for all prior state-level offenses of simple marijuana possession," said Fried. The Florida Board of Executive Clemency, which consists of the governor and two statewide elected Cabinet members, has met just once in 2022. Fried Press Release

Health Care

Ian Showed Problems with Hospital Hurricane Operations?

Hurricane Ian made it clear that many hospitals in Florida aren't able to quickly evacuate patients and some couldn't likely withstand a direct hit from a major storm. Several hospitals that were in evacuation order areas remained open and only moved a few patients before Category 4 Ian hit Southwest Florida in late September. After hurricane winds and rain affected the facilities for several hours, some moved more patients, but had to delay those moves because of the dangers from the storm raging outside. "My anticipation and expectation is that when you're asked to evacuate, you evacuate," Florida Division of Emergency Management Director Kevin Guthrie told Politico. Politico

AHCA Continues to Consider Emergency Management Plans

The Agency for Health Care Administration will gather additional public input on proposed rules for comprehensive emergency management plans, or CEMPs, after stakeholders raised issues with the proposed regulations. The agency is updating its rules to better mirror a law passed in 2020 by the Legislature. CEMPs outline the roles, responsibilities and coordination mechanisms used when a disaster strikes. Assisted living facilities were previously required to have locally-approved CEMPs before obtaining a license from the state but lawmakers agreed to amend that requirement, allowing facilities to get a license as long as they provide an approved CEMP within 30 days of licensure. The 2020 law also required assisted living facilities to notify AHCA within 30 days of getting approval for their plans. Florida Senior Living Association Vice President of Public Policy Jason Hand said he's worried the proposed rules would require assisted living facilities to provide a statement of estimated regulatory costs, or a SERC, which could increase the industry's annual operating costs by more than $200,000. The Legislature would have to approve the agency's regulations if the cost of doing business increases to that amount. The proposed rules as written would require assisted living facilities to seek reapproval if they modify their CEMPs and mandate facilities submit CEMPs annually. Florida Politics

Court Cases and Legal Policy

Judge Has Warren Dismissal Case

A federal judge will decide on whether suspended Hillsborough County prosecutor Andrew Warren should be reinstated. Warren was removed from office by Gov. Ron DeSantis over pledges not to prosecute certain crimes, including violations of abortion restrictions. Testimony wrapped up Thursday in a federal trial over the dismissal. U.S. District Judge Robert Hinkle will rule on the case, likely in the next couple weeks. Axios Tampa Bay / Tampa Bay Times / Florida Phoenix / Politico / Associated Press

Greenberg Sentenced to 11 Years in Federal Fraud Case

Former Seminole County Tax Collector Joel Greenberg, who was arrested in June 2020 on multiple fraud offenses, was sentenced to 11 years in prison on Thursday. Greenberg was indicted on 33 federal criminal counts, including theft, stalking, sex trafficking, cryptocurrency fraud and Small Business Administration loan fraud. He was also ordered last month to pay more than $1.3 million in restitution to Seminole County. “The one thing that stands out to me is the violation of public trust,” U.S. District Judge Gregory Presnell said. ”We have an elected tax collector stealing tax money. ... It’s truly outrageous.” Several people close to Greenberg have also been charged for their involvement in the case and related fraud. Orlando Sentinel / Florida Politics / New York Times / Associated Press

Court Rejects Claim Over Cuba Cruise Ship Docking?

A federal appeals court declined to award damages to a Jacksonville neurosurgeon over cruise ships’ use of Cuban ports confiscated from his family. A three judge panel of the 11th U.S. Circuit Court agreed that the doctor, Javier Garcia-Bengochea has a legitimate, documented claim to a partial ownership interest in the La Maritima port facility in Havana, but found he inherited his claim too late to take advantage of the law allowing such causes of action. The suit had sought damages from Carnival Cruise Lines and Royal Caribbean Cruises under a section of the 1996 federal Helms-Burton Act that allowed U.S. nationals to sue over property confiscated by the Cuban government. But the law specifically precluded compensation to heirs who acquired their interest after March of 1996. Garcia-Bengochea inherited his interest in the property in Cuba on the death of a relative in 2000, and therefore is ineligible, the court found. The case, which first was decided by the U.S. District Court for the Southern District of Florida, is Javier Garcia-Bengochea v. Carnival Corp. and Royal Caribbean Cruises. National Law Journal / 11th Circuit Opinion

Court: "Floribama Shore" Doesn't Violate Flora-Bama Trademark

"MTV Floribama Shore," a reality show on the MTV cable network, didn't violate the trademark rights of the Flora-Bama Lounge, a famous bar near Pensacola, a three judge panel of the 11th U.S. Circuit Court of Appeals ruled. The appeals court unanimously found no evidence that the production company that made the show tried to make viewers think it was endorsed or sponsored by the Flora-Bama, or tried to give any indication the series was affiliated in some way with the bar. The case is MGFB Properties Inc., Flora-Bama Management et. al. v. Viacom. Law360 / 11th Circuit Opinion

Court Payments: A measure (SB 48) filed this week in the Senate would allow a trial court to waive and modify fees or replace the amount due with community service hours under certain circumstances. Bill author Sen. Tom Wright has filed similar proposals in the past.

New Federal Prosecutors: The U.S. Senate Judiciary Committee on Thursday confirmed the nominations of two federal prosecutors in Florida. The nominations of Roger Handberg to be U.S. Attorney for the Middle District of Florida and Markenzy Lapointe as U.S. Attorney for the Southern District of Florida were both advanced on voice votes. National Law Journal / Law 360

Energy

Some Skeptical of PSJ Nat Gas Plans?

A plan to develop the old St. Joe Co. paper mill in Port St. Joe into a liquefied natural gas export hub has support from local officials in the Gulf County town, but a few people in the local Black community say the proposed project raises environmental justice and safety issues. The project would be developed by Miami-based Nopetro LNG LLC, using gas supplied by the St. Joe Gas Co., a utility owned by the family of state Rep. Jason Shoaf, who represents the area in the Florida House. "The economy is propped up by tourism. So anytime we can have a company come in with manufacturing or LNG production or whatever, that's not subject to the whims of the tourism market, it's a good thing," said Shoaf, a vice president of the St. Joe Gas Co. "It's completely safe, from the research I've done. They have facilities like this all over the country." Local residents in mostly Black North Port St. Joe, who lived through years of contamination caused by the old paper mill – while acknowledging it was a trade off for good jobs there – urge caution and transparency with the new development. "I'll be the first one to say we need good-paying jobs," said Charles Gathers, a local pastor. "If [LNG] is good, and they're trying to do it for the reason it's going to benefit the community, well then do it. But don't do it on the backs of the people." E&E Energy Wire / (Gulf County) Star

Emergency Preparedness and Response

Federal Disaster: The Biden administration this week extended a federal disaster declaration initially issued for Hurricane Ian. The updated declaration raises the federal reimbursement rate to 100% for debris removal and emergency protective measures. It also extends the period for reimbursements from the original deadline of Nov. 4 to Dec. 7. Biden Press Release / Florida Politics / Florida Phoenix

Climate and Environment

Coastal Erosion Depletes Beaches; Fixing Them is Harder

Coastal erosion that happened during this year's hurricane season has left some Florida communities scrambling to replace beach sand, which is getting harder to get and more expensive. More than 425 miles of Florida beach – about half the coastline in the state – was considered critically eroded back in June, before Hurricanes Ian and Nicole. Axios Tampa Bay?

Groups Call for Climate Change Committee

A coalition of environmental and community groups are calling on the new leaders of the Florida Legislature to create a special committee to tackle climate change issues, saying it's a threat to the state. The groups sent a letter to House Speaker Paul Renner and Senate President Kathleen Passidomo prior to last week's organizational session requesting the creation of a Joint Select Committee on the Climate Crisis. Renner is establishing a select committee on hurricane resiliency and recovery, but it's not clear how much the panel will try to address the broader issue of climate change. Gov. Ron DeSantis signed legislation (HB 7053) this year putting in place the first state sea level rise plan, creating a chief resiliency officer in the governor's office and requiring a ranking of projects aimed at mitigating the effects of higher sea levels. Florida Phoenix

DeSantis Sets Out Money for Biscayne Bay

Gov. Ron DeSantis awarded $22.7 million for seven projects relating to water quality improvements and protection for Biscayne Bay in Miami-Dade County. The funding, which is more than double what he previously invested into the bay, comes from the Biscayne Bay Grant Program and will cover septic-to-sewer, stormwater management and wetland restoration projects in areas surrounding the bay. Biscayne Bay is the state's largest estuary that directly connects to Florida's Coral Reef, the only coral reef system in the continental United States. The bay also serves as the largest passenger port in the world. The seven projects include $14.5 million for a Miami-Dade water quality characterization and pollution-reduction program, and smaller amounts for septic-to-sewer conversions in North Miami, the first phase of a Coral Gables sanitary sewer system program, a Miami Springs stormwater infrastructure program, wetland restoration in Cutler Bay, stormwater infrastructure in Key Biscayne and $600,000 for the Miami River Fund Inc., a nonprofit working with local governments on stormwater and marine debris management. The DeSantis administration has invested $52 million in water quality for Biscayne Bay over the course of four years. In 2021, state lawmakers passed legislation (HB 1177) that created the Biscayne Bay Commission, which brings together federal, state and regional entities in an effort to improve the bay by establishing a financial plan to ensure funding of water quality projects. Miami Herald / Florida Politics / WTSP / WFLA / DeSantis Press Release?

FWC Creates First ‘Spring Protection Zone’

The Florida Fish and Wildlife Conservation Commission approved a rule creating the first spring protection zone in the state. Anchoring, mooring, beaching and grounding will be prohibited in and around Nichols Spring in Sumter County. Vessel speed restrictions are also allowed in the spring protection zone. A private property owner requested the designation and state wildlife managers found that certain boating activities caused harm to bank vegetation, cypress trees and aquatic grasses in and around the spring. Hernando County residents are also seeking similar protections for the Weeki Wachee Spring, which is much larger than Nichols, but no designation has been made yet. Florida Politics / FWC Press Release?

Tortoise Interference: State wildlife officials don't plan to change a rule on how far gopher tortoises can be relocated by developers until some studies are done. The current agency rule prohibits the relocation of tortoises more than 100 miles north or south of a given development site. Some conservationists say the rule makes it difficult to take in the tortoises because their wildlife sanctuaries are outside of the rule's parameters. The Florida Fish and Wildlife Conservation Commission said the rule could be amended in the future but in the meantime, there is a waiver system that allows tortoise relocations outside of 100 miles if capacity is unavailable closer to the site, among other specific reasons. Florida Politics?

Tortoise Reform: State wildlife managers say captive diamondback terrapin breeding should continue to be banned in Florida, rejecting suggestions that a breeding program could help restore wild populations and add genetic diversity to the population. Diamondback terrapin turtles are currently deemed a vulnerable species by the International Union for Conservation of Nature. Florida Fish and Wildlife Conservation Commission staff sided with experts who say captive breeding and commercial trade doesn't make a positive difference in terms of conservation. Florida Politics

Children and Families

Harris to Stay on as DCF Secretary

Department of Children and Families Secretary Shevaun Harris will remain on the job for Gov. Ron DeSantis' second term as governor. Harris has more than 20 years of experience working for the state, including serving as interim secretary at the Agency for Health Care Administration after former Secretary Mary Mayhew stepped down. DeSantis appointed Harris to lead DCF in February 2021 following the departure of former Secretary Chad Poppell. DCF oversees the state's child welfare and foster care system. Florida Politics

Florida System May Unintentionally Aid Traffickers

According to a yearlong investigation by the South Florida Sun-Sentinel, Florida's child welfare system and lack of oversight may increase the odds a young person will be trafficked. The four-part series found that the state used a workaround to bypass federal law that aims to prevent sending certain vulnerable children to group homes. Teenagers are more likely to run away from group homes, making them more susceptible to human and sex trafficking and Florida law does not require the group homes to look for missing children. Traffickers often seek out young people assigned to group homes, waiting for runaways. The Sun-Sentinel also found that nearly 6,670 hotels and other lodging establishments racked up 14,279 citations following the implementation of a 2019 sex trafficking law that aimed to protect victims. But none of the entities were actually fined by the state due to a 90-day grace period allowing hotels to fix the issues at hand. Florida is the third-highest state in the nation for human trafficking cases, with the Florida Abuse Hotline reporting 3,182 cases last year. Sun-Sentinel / Raw Story

Immigration

Migrant Removal Suits: The Southern Poverty Law Center is suing Gov. Ron DeSantis over the Florida program that relocated migrants seeking asylum from Texas to Martha's Vineyard. And three immigration rights groups also filed a lawsuit challenging the program this week in federal court. Politico / Associated Press

Gambling

Gaming Control Commission Delays Magic City Sale

State regulators have put on hold the proposed transfer of a gambling permit from Magic City Casino in Miami to an Alabama-based Native American tribe. The Florida Gaming Control Commission on Thursday said the companies involved in the proposed sale of the casino need to first disclose more information to the public. Miami Herald

Lobbying and Influence

Former Panhandle House Member to Join Consulting Firm

Former Northwest Florida Rep. Jayer Williamson is joining Oak Strategies, a Northeast Florida lobbying and consulting firm founded in 2021 by former state lawmakers Sen. Rob Bradley and Rep. Travis Cummings. The two Fleming Island Republicans who launched the firm previously chaired the House and Senate appropriations committees while in office. Current law prohibits legislators from lobbying the state government until two years have passed since being in office. Cummings and Bradley said their firm's current focus is on local issues. Florida Politics

Campaigns and Elections

Team Named for Florida House GOP Campaigns

Rep. Daniel Perez, who is next in line to be House speaker, named members of the group that will work to keep the GOP majority in the House in 2024. Nick Catroppo was named director of the effort and will supervise day-to-day operations. Catroppo previously served as vice president of political operations at the Florida Chamber of Commerce. Faron Boggs will take on the role of political director and will oversee campaign strategies. Boggs has nearly 10 years of experience working for the Republican Party of Florida. Daniel Leon will lead fundraising efforts as finance director. Member liaison and engagement will be headed by Sydney Fowler and Hannah Littlejohn will be finance coordinator. Tom Piccolo and Tony Cortese will work as consultants, and communication efforts will be led by Sarah Bascom and Lyndsey Brzozowski. "Today, we turn our focus to 2024," said Perez in a memo to the House Republican Caucus. "We will immediately begin to defend our 85 seats, elevate the profile of our outstanding members, and immediately implement a strong candidate recruitment program, so we can pave the way toward an overwhelming majority in the Florida House of Representatives." Republicans secured 85 out of the 120 seats in the House following the 2022 elections. Florida Politics

DeSantis to Release Book Next Year

The book "The Courage to Be Free: Florida's Blueprint for America's Revival" by Gov. Ron DeSantis will be released early next year, the publisher said Wednesday. HarperCollins imprint Broadside said the governor's book, part policy, part memoir, will be out Feb. 28. Associated Press / Fox News / HarperCollins

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