LobbyTools Policy Briefing 4/21/2023

LobbyTools Policy Briefing 4/21/2023

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The Legislature

DeSantis' Domination of Legislative Agenda May Wear Thin

As Republican lawmakers see some of their own priorities take a backseat to Gov. Ron DeSantis' focus on "woke culture" and an ongoing battle with Walt Disney World, some are quietly saying they're not happy with the session of DeSantis. Politico

Budget

Budget Conferencing

House Speaker Paul Renner announced allocations for the annual state budget are close to being agreed to and conferencing between chambers is likely to start Monday, April 24. The House and Senate passed separate budgets earlier this month and the two chambers are now working on allocating how much of the available money will go toward each section of the budget for the coming fiscal year. The next step involves conference committees to finalize an agreement. The regular legislative session is scheduled to adjourn on Friday, May 5.

Business Regulation

Senate Passes ESG, Social Credit Scoring Ban

Fund managers investing state and local government-held money won't be able to consider "environmental, social, governance," or ESG, factors when choosing investments under legislation (HB 3) passed Wednesday by the Senate. The bill also will prohibit banks and other financial institutions from using "social credit scoring" in deciding whether to offer customers loans or other banking services. The measure passed on a party line 28-12 vote and now heads to the desk of Gov. Ron DeSantis, who pushed for the measure. Democrats argued the bill is unfriendly to businesses, by limiting companies' decisions about how they do business and who they do business with. They also argued the push is hypocritical because it comes as several companies have taken certain more "liberal" stances, particularly on climate change, but ignores efforts in previous years by Republicans to use control of government investments to push for conservative political causes. The bill's sponsor, Sen. Erin Grall, however, said that the push makes sure that elected politicians make decisions about policy, rather than unelected corporate executives. Pensions & Investments / Florida Politics

Social Credit: Most of the attention around the investment practice bill (HB 3) passed by the Legislature this week has been on its prohibition on state or local government investments in companies based on "environmental, social governance" practices. But another provision that has been on the agenda for conservative activists around the country would also prohibit "social credit score" decisions by banks. Conservative think tanks and activists have raised concerns that banks may refuse to serve conservatives and make decisions on whether to lend to customers or offer other banking services to customers based on political beliefs, evaluating them as a risk based on a "social credit score," rather than a financial credit score. The bill would prohibit the use of such scores, and says that banks, when deciding whether to provide services to a potential customer, couldn't consider the person's political opinions or religion, or certain things about the person such as whether they own a gun, or whether they work in the fossil fuel industry. Some conservative activists have pointed to China, where in addition to a traditional credit rating system, some local government officials have experimented with a "social credit" system that tracks certain behaviors by individuals and companies, such as whether they've paid court fines, or spread "harmful" information online. While in China, the "social" scoring system involves government tracking of behaviors and is more broad than whether someone could purchase financial services, the Florida measure only would stop banks and other financial institutions from using factors other than finances and financial risk in deciding whether to offer banking services.

More on ESG Investing Legislation

ESG: Separating Politics from Policy. The Bond Buyer

Battling Corporate America: Gov. Ron DeSantis vs. corporations: battle with Disney heats up as lawmakers vote on ESG. The Bond Buyer

Unintended Consequences?: As conservatives push bans on ESG investing by government funds, some critics argue the effort to avoid liberal or environmental politics driving investments could cost taxpayers in lost potential for financial gain. The Hill

Nationwide Push: The rise of state anti-ESG legislation. Fordham Journal of Corporate and Financial Law

ESG Battlegrounds: How the States Are Shaping the Regulatory Landscape in the U.S. Harvard Law School Forum on Corporate Governance

Green Banking: A "green" banker in Winter Park fears the state's coming ESG ban will put his Climate First Bank out of business. Orlando Sentinel

K-12 Education

Board of Ed Expands Ban on Teaching About Sexual Orientation

Classroom instruction on topics related to sexual orientation and gender identity is now banned in all grades in Florida schools, except in health education classes, under a substantially expanded rule approved Wednesday by the state Board of Education. A law passed by the Legislature last year as HB 1557 had banned such instruction up to grade 3, and lawmakers are considering legislation this session that would expand the ban through 8th grade. But the seven-member Board of Education, expected to implement the lower grade ban, amended its proposed rule and expanded the ban on its own to all classes up through 12th grade. The board also approved another rule removing four standards from what students are expected to learn in social studies or psychology classes in high school, including a requirement that students be able to "compare and contrast gender identity and sexual orientation," saying those also violated last year's "Parental Rights in Education" law. Orlando Sentinel / Politico

Partisan School Boards: The Senate this week passed a proposed constitutional amendment (HJR 31) that seeks to make school board elections partisan races starting in November of 2026. First, the question will go to voters, who will be asked to amend the state constitution to affect the change. Sixty percent of voters have to vote yes on the proposed amendment for it to go into effect. The vote in the Senate was 39-11. The measure had passed the House earlier. Proposed constitutional amendments don't need gubernatorial approval. Politico

School Board Candidates: A measure (SB 444) giving school board candidates more time to move into the district for which they're running was approved this week in the Senate Rules Committee. The panel approved the bill on a 14-5 vote. The measure now heads to the Senate floor.

Menstrual Hygiene: Legislation (HB 389) that allows school districts to make menstrual hygiene products available to girls in schools at no cost unanimously passed the House on Thursday and now heads to the Senate. Skidmore Press Release

Black History: A bill (HB 551) requiring school districts to report to state officials evidence that they are teaching African-American history as required passed the House unanimously on Thursday. The bill also allows the Department of Education to seek input from and contract with African-American educational organizations to support curriculum on the history of African Americans. Benjamin Press Release

Higher Ed

Higher Ed Bills Advance in Both Chambers

Controversial bills (HB 999, SB 266) that put more state control in place over college courses, including banning the teaching of “theories that systemic racism, sexism, oppression, and privilege are inherent in the institutions of the United States and were created to maintain social, political and economic inequities,” advanced on both sides of the Capitol this week. The measures also give the Board of Governors, which oversees the state university system, more control over school curriculum and university presidents the power to hire faculty, rather than deans or faculty committees. Opponents, including Miami Gardens Democrat Sen. Shevrin Jones, called the legislation "racist” but its sponsor, Fort Pierce Republican Sen. Erin Grall, said the legislation ensures that students aren't being taught one point of view. Tampa Bay Times?/ WUSF

Culture

Adult Performance Bill Passes

The Legislature this week passed and sent to Gov. Ron DeSantis a bill (SB 1438) that will prevent minors from being in attendance at live "adult" performances that depict nudity, sexual activity or other lewd content, including events that show "lewd exposure of prosthetic or imitation genitals or breasts." Opponents, including Democratic lawmakers, argued the bill targets drag shows and the LGBTQ community. They also said the measure could potentially ban children from attending concerts and local performances of Broadway plays. Supporters said it seeks to protect young kids from adult content and emphasized that the bill does not specifically target any particular type of performance. Under the proposal, violators could face losing their business license, thousands in fines and up to a year in prison if they knowingly admit a child into an event that meets the standards in the proposed law. The legislation also prohibits local governments from issuing permits for such activities, which could make it harder to obtain permits for pride parades. The bill passed the House on an 82-32 vote after having passed the Senate earlier this month. Politico / WPLG

LGBTQ - Restrooms: The full House advanced a bill on Wednesday that would mandate people use school and other public restrooms that align with their gender at birth or face potential misdemeanor charges if they refuse to leave when asked. The measure (HB 1521) also requires public places like stores and schools to have bathrooms for men and women or unisex restrooms. If someone suspects a person's gender doesn't match that designation, they could ask them to leave and call the police if they don't under the bill. Critics argued the initiative targets the transgender community but supporters said the word "transgender" appears nowhere in the bill and instead simply aims to keep public bathrooms safe and private. The proposal, sponsored by Longwood Republican Rep. Rachel Plakon, passed on an 80-37 party line vote and now heads to the Senate. Florida Politics / WTSP

Criminal Justice and Law Enforcement

DeSantis Signs Death Penalty Bill

Florida will now require that only 8 jurors instead of 12 agree on a death sentence when making recommendations to judges in capital cases, giving the state the lowest threshold for death penalty jury verdicts in the country. Gov. Ron DeSantis signed legislation (SB 450) this week that allows a jury recommendation of death with a minimum 8-4 vote, though the death penalty could only be imposed if the jury unanimously finds at least one aggravating factor beyond a reasonable doubt. The measure was spurred by the life sentence a jury recommended for Nikolas Cruz, the shooter in the 2018 Marjory Stoneman Douglas High School massacre in Parkland. In that case, nine jurors were in favor of a death penalty recommendation, but three jurors held out for life in prison. Florida joins Alabama as the only states not requiring jury unanimity for death sentence recommendations. Alabama's threshold is a vote of at least 10-2 in favor. Associated Press / Sun-Sentinel / Politico /DeSantis Press Release / LobbyTools Governor's Activity

Bill to Allow Execution of Child Rapists Goes to Gov

The Senate passed legislation (HB 1297) that would allow for the death penalty for people accused of raping a child under the age of 12, sending the bill to Gov. Ron DeSantis and possibly into the courts for an ultimate challenge of rulings that have prevented such penalties. The Senate approved the bill on a 34-5 vote following an impassioned call for the bill's passage by Democratic Sen. Lauren Book, who was sexually abused as a child. The House had passed the bill earlier. DeSantis is expected to sign it. Politico

Prison Reform Bills Advance in House Committee

The House Judiciary Committee advanced two criminal justice reform bills this week, setting them up for consideration on the floor. One (HB 779) would give judges the ability to defer the incarceration of pregnant women until 12 weeks after they give birth. It would also require officials to inform women they have a right to take a pregnancy test if they have been in custody for at least three days. The measure, called "Ava's Law," followed the death of a baby whose mother was incarcerated in Alachua County. The same committee also passed legislation (HB 1045) to create a Certified Peer Specialist Gateway Pilot Program within the Department of Corrections. The program would provide participating inmates with a path to becoming certified peer specialists by offering training hours and experience needed for certification while incarcerated and assisting inmates who complete the program with post-incarceration employment. Both proposals are sponsored by Tampa Democrat Rep. Dianne Hart and both bills are now ready to be considered by the full House. Hart Press Release

Anti-Semitism: Lawmakers in both parties presented a united front Thursday in a House floor vow to fight rising cases of anti-semitism as they unanimously passed legislation (HB 269) that would crack down on hate acts against Jewish people with stronger penalties. The bill, sponsored by Delray Beach Republican Rep. Mike Caruso and drawing much of the chamber as co-sponsors, would make it a crime to put leaflets or other materials on private property with the purpose of intimidating or threatening people, with felony charges possible for credible threats. The measure also creates a new misdemeanor crime of displaying or projecting any images onto a building, structure or other property without the written consent of the owner. Antisemitic incidents, including assault, harassment and vandalism, reached a new high across the U.S. in 2021, according to the Anti-Defamation League. The measure now goes to the Senate.

Catalytic Converters: The House passed legislation (SB 306) this week in a bid to reduce catalytic converter thefts. The measure restricts who can buy detached catalytic converters, which are frequent targets of thieves, who cut them off the exhaust systems of cars because of the high value palladium, platinum and rhodium contained in the devices. The bill also puts new requirements on auto parts dealers for record-keeping and makes it a third degree felony to knowingly possess, purchase, sell or install a stolen catalytic converter, one that is missing certain information or without proof of ownership. The measure heads to the governor’s desk. CBS Miami (Video)

Public Safety

Domestic Violence Custody Bill Goes to Gov

Legislation aimed at fixing a loophole in a law relating to custody and domestic violence unanimously passed the House on Wednesday. The proposal (SB 130) would allow courts to consider threats against ex-partners or spouses when setting child visitation and custody policies. Courts would be required to consider additional factors, including evidence of domestic or sexual violence, abuse, abandonment or neglect when determining custody or shared custody of a minor. It would also require a court to determine if the parent in question engaged in "a pattern of abusive, threatening, intimidating, or controlling behavior," especially if one parent has reasonable cause to believe that they or their child is in imminent danger. The measure, called "Greyson's Law," was inspired by a case in which a man threatened the mother of his child, but she was unable to get court protection for the four-year-old boy, who was later killed by the father. It unanimously passed the full Senate last month. The Family Law Section of the Florida Bar helped craft this year’s legislation. Florida Politics / Florida Bar Press Release

Judiciary, Civil Justice and Legal Policy

Defamation Bill Likely Dead

Legislation to make it easier to sue news media and make other types of defamation claims is unlikely to pass this session. The idea is a priority of Gov. Ron DeSantis, who says current law doesn't adequately protect Floridians from defamation or libel. Under current law, public figures have a harder time proving defamation because they have to prove the defendant acted with actual malice under a longstanding Supreme Court precedent. The proposals (SB 1220, HB 991) would narrow the circumstances in which someone would be considered a public figure, expand the situations in which plaintiffs would have a lower standard of proof and allow attorney fee advantages for prevailing plaintiffs. It would also allow lawsuits to be filed in any Florida county where the material can be accessed. And it would allow lawsuits to be brought against unverified information, as well as expand the legal definition of defamation, including giving plaintiffs the ability to more easily sue over discrimination allegations. The House and Senate bills have several differences and Florida Politics reported the chambers couldn't agree on a consensus version. Earlier this week, the Senate Rules Committee temporarily postponed consideration of the measure for the third time in a row, and with just two weeks left in the annual legislative session, passage now appears very unlikely. Florida Politics

Alimony: The Senate on Wednesday passed a bill (SB 1416) that would end permanent alimony in Florida and replace it with shorter alimony requirements based on the length of a marriage. The bill, which now heads to the House, passed 34-6. Its sponsor, Sarasota Republican Sen. Joe Gruters, has said the measure would make the alimony system more fair and set clear outlines for courts to consider when awarding alimony. Lawmakers have tried to change alimony laws for a few years but have been thwarted by gubernatorial vetoes. Florida Bar News

Wrongful Conviction:?Robert Duboise, who spent 37 years in prison for a 1983 murder and attempted rape he didn't commit, would be compensated $1.85 million for his wrongful incarceration, or $50,000 for every year he spent in prison, under a claims bill (SB 62) approved Wednesday on a 38-1 vote in the Senate. Duboise was exonerated by DNA which proved his innocence and also led to the discovery of the actual perpetrator of the rape and murder of 19-year-old Barbara Grams in Tampa. The measure goes next to the House. Robert Duboise Special Masters Report

Health Care

Workplace Violence: A bill boosting criminal penalties for people who knowingly commit violence against certain health care personnel was approved unanimously on the House floor on Thursday. The legislation (HB 825), carried by Rep. Kim Berfield, R-Clearwater, would make assault on hospital employees and volunteers a first-degree misdemeanor and battery on employees a felony. It would also add hospital personnel to the protected profession status, similar to law enforcement and firefighters. Health care workers accounted for 73% of all nonfatal workplace injuries and illnesses due to violence in 2018, according to the measure’s sponsor. The proposal now heads to the Senate where a similar bill (SB 568) is awaiting a hearing in its final committee stop.

Dementia Care: The House unanimously passed a measure (HB 299) on Thursday that would establish minimum care standards for employees dealing with patients suffering from Alzheimer's disease and dementia. The minimum requirements would range from basic written information at hiring to continuing education requirements, depending on the type of caregiver. The materials would be provided by the Department of Elder Affairs at no cost to caregivers and also made available to Florida families for free. The bill, by Republican Reps. Dean Black and Michelle Salzman, received praise from both sides of the aisle and almost every member signed on as a cosponsor. It moves next to the Senate.

Gender Care: Legislation banning gender-related medical care for minors passed the full House on Wednesday, but with changes that require it to go back to the Senate. The proposal (SB 254) provides criminal penalties, specifically a third-degree felony charge, for doctors who violate the ban. It would also prohibit state funding from paying for such treatments, including through the state group health insurance plan, and place new restrictions on treatments for transgender adults, such as requiring physicians to obtain informed written consent from patients and be physically in the same room as the patient, essentially banning the use of telehealth. Among changes added by the House was a provision that would prevent private health insurers and HMOs from covering certain treatments, including puberty blockers, hormone therapy and sex reassignment surgery. It also does not require insurance companies that have been providing gender-related medical care coverage to refund any portion of the premium they have been collecting. The bill as passed by the House also bars Floridians from changing their birth certificates to reflect a gender change.The initiative is backed by Gov. Ron DeSantis and state Surgeon General Joseph Ladapo. Florida Politics / Florida Phoenix

Local Government

Lawmakers Move Quickly to Void Disney District Moves

Lawmakers moved quickly Wednesday to retroactively invalidate an agreement between Walt Disney World and its special taxing district that was taken right before a state takeover of the board. The move was the latest in an ongoing feud between the company and Gov. Ron DeSantis, who pushed the Legislature to invalidate the previous board's final actions. Passage of an amendment to a land use bill in committees in both the Senate and House on Wednesday came over warnings that the effort may not be constitutional. Miami Herald / USA Today Network / Action News Jax

Local Vacation Rentals Measure Moving

The Senate Appropriations Committee on Agriculture, Environment, and General Government approved legislation on Tuesday aimed at giving local governments more control over vacation rentals that are booked through online platforms. The bill (SB 714), sponsored by St. Petersburg Republican Sen. Nick DiCeglie, passed on a 9-5 vote, largely along party lines. It would allow cities and counties to require vacation rentals to register and pay fees, while also requiring platforms like Airbnb and VRBO to collect and remit sales taxes to the state. But opponents, including the Florida League of Cities and some municipalities, say it doesn't go far enough and would like to see the proposal mandate platforms to post property addresses online, which is necessary for enforcing registrations. The measure would repeal part of a 2011 preemption law that banned local government restrictions on vacation rentals. It has one more committee stop. A similar House companion (HB 833), filed by Jacksonville Republican Rep. Wyman Duggan, cleared its third and final committee stop earlier this week and is now ready to be considered on the House floor. Florida Politics

Dangerous Dogs: The last local breed-specific restrictions on dogs would be outlawed by a measure passed Wednesday in the House that’s now headed to the governor. The bill (SB 942) would repeal decades-long bans on pit bulls at public housing authority properties in Miami-Dade County and the City of Sunrise by amending the state's "Dangerous Dogs" law. The two cities were grandfathered in and allowed to keep their ordinances targeting specific breeds when state law was enacted in 1990 that allowed dangerous dogs to be banned, but didn't allow certain breeds to be singled out. Florida Politics

Coastal Development: The House Commerce Committee advanced legislation this past week to prevent local governments from blocking developers from quickly demolishing and rebuilding coastal structures in storm-prone areas. The bill (HB 1317) requires the older buildings to be deemed unsafe or be below the base flood elevation established by flood zones in order for developers to rebuild without municipal interference. The measure, however, would not apply to any building on the National Registry of Historic Places. Opponents of the proposal, including the mayor of St. Augustine and a Miami Beach commissioner, argue the proposed provisions could lead to unrestrained redevelopment, replace historic sites and permanently alter the character of communities. Supporters, however, say the bill aims to ensure structures damaged by storms, like Hurricane Ian, can be rebuilt in a way that makes them insurable. Florida Politics

Housing

Bill Allows Alternative to Large Apartment Deposits

The House on Thursday passed a measure (HB 133) that would give landlords and tenants the option of having renters pay an ongoing nonrefundable monthly fee on top of their rent instead of a large refundable security deposit when they rent an apartment. Backers of the measure say such agreements could help people struggling to find housing get into an apartment without having to come up with the sometimes very high security deposit amounts upfront. Some landlords charge one or two months' rent as a security deposit, in addition to requiring the actual first months' rent, when someone signs a lease for a new place – an amount that prices many people out of getting into an apartment. The bill, sponsored by Republican Rep. Jim Mooney, ?was the subject of lengthy debate, with some opponents saying that the additional fees were another type of "tax for being poor," that adds yet more expense for people already struggling to get by. Rep. Angie Nixon, D-Jacksonville, called the fees a "poor tax," and a "perpetual junk tax." But backers noted that paying the fee was completely optional – and people would still have the option of paying a large security deposit. The House did agree on an amendment to the bill on the floor on Thursday, allowing security deposits to be paid in monthly installments, but that provision would be optional for the landlord. The House rejected several amendments including some that would have put limits on rent increases. Mooney and other backers noted that poor people are likely to have a harder time coming up with thousands of dollars upfront to rent an apartment and that is more likely to keep them out of an apartment than a much smaller monthly fee for the life of the lease. The bill passed 89-22 and now goes to the Senate. NBC 6

Open Government and Public Records

Florida Set to Make DeSantis Travel Records Secret

Information about Gov. Ron DeSantis' travel schedule, including records about how he has used the state airplane in the past, would be exempt from public disclosure requirements under a bill (SB 1616) passed this week in the Senate that's now awaiting House approval. The effort to restrict information on the governor comes as he is expected to ramp up travel as part of a presidential campaign. The bill passed Wednesday in the Senate by a 28-12 vote. The Republican supermajority in the Senate made the measure possible because new exemptions to the state's public records law are required by the Constitution to pass with at least two-thirds approval in each chamber. The House is also expected to pass the proposal. Politico

Insurance

Insurance Industry Hopes for More Reinsurance Help Dwindling

With two previous state-backed reinsurance efforts having drawn few customers in the Florida property insurance market, many in the industry were hoping for more help from lawmakers this session in the form of another reinsurance layer to help reduce the number of companies going insolvent or dramatically raising rates. But amid criticism that recent tort reform and other property insurance reform efforts may have been too industry friendly, legislators have seemed uninterested in another effort to aid the industry. No bills for another reinsurance effort are filed and time is running out for an amendment dealing with the issue. Insurance Journal

Assessment to Cover Insolvent Company Claims

Florida Insurance Commissioner Mike Yaworsky has approved a request for a 1% emergency assessment on all property insurance premiums for new and renewing policies to help cover outstanding claims from insurers that have gone insolvent. The Florida Insurance Guaranty Association, or FIGA, which pays claims when insurance companies go under, had asked the state to assess the emergency charge, the fourth for FIGA in the last two years. It will be collected starting Oct. 1 and continue at least until Sept. 30, 2024. The assessment is charged to property insurers, but will likely be passed on to policyholders. It would amount to about $30 extra per policyholder per year. FIGA said the additional funds are needed due to at least seven insurers going insolvent over the last year. Insurance Journal / WFLA / WESH

Taxes

Tax Package: The Senate Finance and Tax Committee on Tuesday unanimously advanced a tax cut package that's estimated to set Floridians up for hundreds of millions in savings. The proposal (SB 7062) includes two 14-day back-to-school sales tax holidays, tax breaks on baby and toddler supplies and a three-month long "Freedom Summer" tax holiday for recreational activities and concerts, among other breaks. It would also direct sales tax dollars to thoroughbred breeders, worth $27 million, to help the state’s horse racing industry. It now heads to the Senate Appropriations Committee. A similar tax package (HB 7063) is ready to be considered by the full House. Neither version includes the governor's suggested one-year tax exemption for basic household goods under $25, such as toilet paper and hand soap. A final tax package will be hammered out during budget conferencing between the House and Senate over the next couple of weeks.

And Finally

Alert! Alert! Florida was WOKE This Week

Floridians were abruptly awakened by an emergency alert on their phones at 4:45 a.m. Thursday morning. The state Division of Emergency Management was testing a new alert system, but the alert was supposed to be aired on television – not sent to cell phones. Gov. Ron DeSantis took to Twitter, saying it "was a completely inappropriate use of this system." Shortly after, the Division of Emergency Management issued an apology on social media and announced that it ended its contract with Everbridge, a company that provides technical coding and instructions to distribute alerts. "We are taking the appropriate action to ensure this will never happen again and that only true emergencies are sent as alerts in the middle of the night," said the Division of Emergency Management in a Tweet. Axios / Wall Street Journal / New York Times / WFLA / CNN / Fox News

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