LobbyTools Policy Briefing 8/19/2022

State Finance

SBA to Consider Banning Non-Financial Considerations in Investing Pension?

A draft rule to be considered by the State Board of Administration next week would prohibit managers of Florida's state employee pension fund from considering social impact when managing the fund's portfolio. The proposed rule would allow managers to weigh only the financial risk or return of an investment when directing the state's $200 billion in assets. The directive is part of Gov. Ron DeSantis' effort to curb so-called "environmental, social and governance, or ESG, investing." That practice seeks to consider factors like systemic racism and economic inequality, or environmental effects, when making investment decisions. In requiring that only financial decisions be considered, it could also bar the use of the fund for political means. Politicians from both parties over the years have advocated for using the pension fund to send political messages – which could be banned by the new rule. Most recently, Florida Democrats suggested divesting the pension fund from Russian assets following Russia's invasion of Ukraine. And DeSantis and other Republicans have also previously pushed for the SBA to divest from certain companies for political reasons. DeSantis advocated divestment from Ben & Jerry's and its parent company, Unilever, because of their corporate stances on Israel. DeSantis also said recently that he and incoming House Speaker Paul Renner?wanted to do the opposite of the proposed rule – to use the pension fund for geopolitical messaging. "There's going to be an appetite to look to see if we can, by statute, target our investments away from some of the parts of the world that are hostile to American interests," DeSantis said in April. The new rules are expected to be voted on next Tuesday when DeSantis, Attorney General Ashley Moody and Chief Financial Officer Jimmy Patronis meet as the State Board of Administration. Draft Rule / CNN

Education

Judge Partly Blocks Stop Woke Act on Freedom of Speech Grounds

A federal judge this week blocked part of a new state law restricting how issues related to race can be discussed in workplace training, ruling the "Stop WOKE Act" violates constitutional free speech protections. U.S. District Judge Mark Walker ruled that the law is also overly vague. The law, passed earlier this year as HB 7 and pushed by Gov. Ron DeSantis, was aimed at preventing teaching about systemic racism in both school settings and workplace training programs, and prohibited teaching that made anyone feel guilty about the actions of certain racial groups. Walker declined to issue a stay of his ruling pending an appeal, meaning the part of the law dealing with workplace training can't be enforced for now. Walker referred in his injunction order to "the upside down" parallel dimension featured in the popular television show Stranger Things. "Recently, Florida has seemed like a First Amendment upside down," Walker wrote. "Normally, the First Amendment bars the state from burdening speech, while private actors may burden speech freely. But in Florida, the First Amendment apparently bars private actors from burdening speech, while the state may burden speech freely." Walker also called the law a "naked viewpoint-based regulation on speech that does not pass strict scrutiny." The law, also known as the Individual Freedom Act, was challenged by a group of Florida companies that claimed the law infringed on their free speech rights in restricting what they can tell employees in training programs. The companies said the law would have prevented them from stressing diversity, inclusion, and avoiding workplace harassment. The law could have allowed for civil lawsuits over teaching about those issues, the plaintiffs said. Walker is also hearing another case that deals with the school classroom requirements of the measure. The case is Honeyfund.com Inc v. DeSantis. Associated Press / Reuters / Bloomberg / Florida Politics / The Hill / Politico / Axios / CNN / Court Ruling

State Board Finalizes Vets Teaching Rule

The State Board of Education finalized a new rule allowing some veterans to get teaching certificates by counting military experience in lieu of some other requirements. A new law, passed as SB 896, provides a path for veterans who don't have a bachelor's degree to obtain a temporary teaching certificate that can last up to five years while they finish school. Qualifying veterans would work under the supervision of a licensed "teacher mentor" for at least two years. The Board of Education on Wednesday approved the rule to implement the program. According to Education Commissioner Manny Diaz, 215 veterans have shown interest in the program. Opponents of the initiative argue the requirements could lower teacher quality. To be eligible, service members must have completed four years of active military duty, have 60 hours of college credit, pass a subject area exam and pass a background check. The governor has also expressed support for similar measures focused on recruiting and retaining teachers. One proposal would expand the veteran teaching pathway to include law enforcement officers and other first responders. Another would create a teacher apprenticeship program, allowing people with associate degrees to work in a classroom under the mentorship of an experienced teacher while they complete their bachelor's degree. DeSantis Press Release / Florida Phoenix / WKMG

Schools Start Year with Confusion Over Parental Rights Law

As schools start a new year, many teachers, librarians and administrators are moving cautiously, unsure how a new law prohibiting some instruction related to gender identity and sexual orientation will be interpreted and enforced. Associated Press

Law Enforcement

Removed Prosecutor Sues DeSantis

Suspended Hillsborough County State Attorney Andrew Warren filed a lawsuit this week challenging Gov. Ron DeSantis' decision to remove him from office. Warren was removed from office earlier this month for signing a pledge to not prosecute people for getting or providing abortions. DeSantis also said that Warren had signed a pledge not to prosecute violations of state laws prohibiting the providing of "gender-affirming care" for minors. Warren sued Wednesday in federal court in the Northern District of Florida claiming the governor overstepped his authority and violated his right to free speech when he suspended him. In the lawsuit, Warren says that "a difference of opinion is not 'incompetency' as defined by the Florida Constitution. Neither is the exercise of ethically and constitutionally required prosecutorial discretion." Warren will remain suspended while the lawsuit moves forward. A potential trial in the state Senate could be next, but rules prevent the process from taking place while any lawsuit over the suspension is active. Warren Complaint / Warren Memorandum / Tampa Bay Times / Associated Press / Florida Politics / Politico / Washington Post / Fox News / NPR / CNN

Patronis Pushing for Legislation Taking on IRS

Chief Financial Officer Jimmy Patronis is urging the Legislature to pass laws countering provisions of a new federal law that boosts funding for the Internal Revenue Service and to help small business owners fight tax collection efforts. Patronis also is pushing for IRS agents to be licensed, and for criminal penalties against the IRS if its agents target people based on their viewpoints or politics. USA Today Network / CFO Press Release

Related: Gov. Ron DeSantis said expanding the IRS' ability to collect taxes is "basically just the middle finger to the American public," arguing it will result in more audits for ordinary taxpayers. IRS Commissioner Chuck Rettig has said the expansion will allow the agency to "improve taxpayer service." Florida Politics

Health Care

Rule Bans Fla Medicaid from Paying for Gender Care

Florida Medicaid recipients will no longer be able to receive “gender-affirming” medical care unless they find another way to pay for it. The Agency for Health Care Administration has finalized a rule saying Florida Medicaid will not cover treatment for gender dysphoria, including puberty blockers, hormones and hormone antagonists, sex reassignment surgeries, and other procedures that alter sexual characteristics. The agency adopted the rule banning Medicaid payments for gender-affirming care for all Floridians, regardless of age. It is slated to take effect Aug. 21. A separate rulemaking process is currently underway that would consider changing the state standard of care to prevent physicians from treating gender dysphoria in minors. The new rules follow recommendations made by State Surgeon General Dr. Joseph Ladapo, which goes against guidance from the American Academy of Pediatrics and the American Medical Association. Politico / Axios / Washington Post / The Hill

Court: Parentless 16-Year-Old Can't Bypass Abortion Notification Requirements

A Florida appeals court ruled that a parentless 16-year-old girl wasn't "sufficiently mature" enough to get an abortion and can't be exempted from a state law that requires parental notification for minors seeking abortions. The teen had sought approval from a local judge in Pensacola to bypass notification and consent requirements in state law, but was turned down by the circuit court. Monday's ruling by a three-judge panel of the 1st District Court of Appeal upheld the local judge's ruling. The girl lives with a relative. Associated Press / Politico / USA Today Network / The Hill / Forbes / 1st District Court of Appeal Ruling

Groups Challenging 15-Week Abortion Law Ask High Court to Weigh In

A doctor and multiple abortion providers, including Planned Parenthood, are asking the Florida Supreme Court to take up an appeals court decision that kept Florida's new 15-week abortion ban in place. In July, Leon Circuit Judge John Cooper issued a temporary injunction blocking the new 15-week abortion ban from taking effect, but the state appealed and the injunction was stayed. Plaintiffs then sought to vacate the stay but the 1st District Court of Appeal ruled the law can be enforced pending the outcome of the lawsuit. Lawyers for the American Civil Liberties Union representing the clinics and the doctors filed notice that they'll ask the Florida Supreme Court to review the appellate court ruling. Plaintiffs are challenging the law based on the Florida Constitution's right to privacy clause. The ban on abortions after 15 weeks of pregnancy was passed by lawmakers this year as?HB 5. Florida Politics / Forbes / Bloomberg / 1st DCA Ruling in State of Florida v. Planned Parenthood of Southwest and Central Florida

Abortion Travel: A Democratic lawmaker from Orlando launched an initiative aimed at helping Florida women get abortions by providing funding for travel expenses. At a press conference on Tuesday, Sen. Randolph Bracy said he's fundraising and looking for partners to help support the initiative, which he said may be necessary because Florida could ban abortions outright. Currently, abortions are illegal after 15 weeks of pregnancy. Bracy's sister LaVon Bracy Davis noted that the Greater Orlando Chapter of the National Organization for Women has already agreed to assist in the fundraising effort. WMFE

BBL Limits: The 3rd District Court of Appeal decided not to block an emergency rule issued by the Florida Board of Medicine that adds more restrictions on gluteal fat grafting procedures, also known as "Brazilian butt lifts." The rule limits surgeons to three procedures per day and requires the use of ultrasound. The emergency rule, which is expected to last for at least 90 days, came after 10 verified patient deaths were reported over the last three years in South Florida. Action News Jax?

Election Law

First Charges Filed by New Election Law Enforcement Agency

Gov. Ron DeSantis announced the state was filing criminal charges against 20 people for illegally voting in the 2020 election, the first arrests for the new election law enforcement agency created by a new law pushed by the governor. The allegations of illegal voting investigated by the new Office of Election Crimes and Security involved people who should have been barred from voting because of prior convictions of murder or felony sexual offenses. Perpetrators of those crimes weren't covered by a constitutional amendment that restored voting rights to other felons. DeSantis said most of the 20 charged were from Broward, Miami-Dade and Palm Beach counties. The election law enforcement office was created by this year's SB 524. More than 11 million people voted in Florida during the 2020 election. Associated Press / Tampa Bay Times-Miami Herald / Orlando Sentinel-Sun-Sentinel / Politico / New York Times / CBS News / DeSantis Press Release

Congressional Committee: Elex Officials 'Under Siege'

Local elections officials in Florida and other states face harassment, threats and allegations of election fraud, according to a recent report from a Democrat-led congressional committee investigating election misinformation and disinformation. U.S. Rep. Carolyn Maloney, the chairwoman of the panel, said election officials are "under siege" by people making "false accusations of fraud." USA Today Network

Drop Boxes: Democratic attorneys general from 16 states are urging a federal appeals court to reject Florida's restrictions on election drop boxes that were enacted last year. In a friend-of-the-court brief, the attorneys general argued the 11th U.S. Circuit Court of Appeals should uphold a March ruling by Florida-based Chief U.S. District Judge Mark Walker that the restrictions are unconstitutional and should be blocked. WLRN

Courts and Legal Policy

New DCA on Track to Hear Cases by First of Year

The addition of a new Sixth District Court of Appeal is on track to start hearing cases at the beginning of next year, the judge leading the project said. The new appeals court was created by HB 7027, signed into law earlier this year by Gov. Ron DeSantis. Florida Bar News

Government Process

Sentinel: DeSantis Consolidating Power, Remaking State Governance

The appointment by Gov. Ron DeSantis to the Florida Supreme Court of another conservative justice who is likely to side with the governor on lawsuits challenging his agenda is part of a broad remaking of the apparatus of government in the state to consolidate power, favor the conservative governor and smooth his path to overhauling the state's political culture, the Orlando Sentinel argues. Orlando Sentinel

Related - Consolidation II: Gov. Ron DeSantis said over the weekend that he's working to elect allies to the Legislature and may achieve a goal of having a veto-proof supermajority in Tallahassee after this election. Florida Politics

Local Government

League of Cities: Port St. Lucie Vice Mayor Jolien Caraballo has been tapped to serve as the Florida League of Cities' new president for the 2022-23 term. Other officers were also recently elected, including Cooper City Mayor Greg Ross as the First Vice President and Cocoa Mayor Michael Blake as the Second Vice President. The organization advocates for Florida's municipal governments. Florida Politics?

Campaigns and Elections

DeSantis Campaigns for Politicians Who Say 2020 Election Was Stolen

While Gov. Ron DeSantis has sidestepped questions about whether the 2020 election was fairly decided or was stolen, as former President Donald Trump has claimed, he has campaigned for Republican candidates who say the results weren't legitimate. Politico

Fried Accuses Reporters of Being Paid by Environmental Group

Democratic gubernatorial candidate Nikki Fried is accusing newspaper reporters of being paid by the Sierra Club to write critical articles about her record related to dealing with the sugar industry. Orlando Sentinel

GOP Lock: Republicans now have had a hold on more legislative seats than Democrats in state legislatures around the country for more than 10 straight years, according to data from the National Conference of State Legislatures and Ballotpedia. Axios

AG’s Race: A look at the Democratic primary in the state attorney general's race. Orlando Sentinel

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