2021 Florida Legislative Session Wrap-Up - MAY 2021 - Florida TaxWatch
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
2021 Florida Legislative
Session Wrap-Up
MAY 2021INTRODUCTION
The 2021 Florida Legislative Session was anything but normal. Not only because pandemic
protocols caused the Capitol and downtown Tallahassee to be fairly empty—limiting public
participation in the process and resulting in most public committee testimony being delivered by
video from the Tallahassee-Leon County Civic Center—but possibly never before have the state’s
fiscal fortunes changed so much from the months leading up to the session to Sine Die.
COVID-19 was reaching Florida just as last year’s session was ending in March 2020. The
immediate negative impact on state tax revenues created much dread about the next budget and a
multi-billion shortfall was projected. However, the 2021 Legislature passed a $101.5 billion budget
that is $9.2 billion (10.0 percent) more than current spending. This also includes nearly $200
million in tax relief and record reserves. Even more remarkable, that bottom line does not include
any of the $10.2 billion in federal aid Florida will be getting from the American Rescue Plan. Most
everyone got at least something they wanted, evidenced by the House and Senate approving the
budget by a 156-1 vote.
Lawmakers approved 275 bills this year, an increase of 65 bills (31 percent) over last year. After a
record-low of 197 in 2019 (at least since 2001), the number of passed bills is on the way up again,
but still well below the levels of the past 20 years. In the first part of this millennium, sessions with
more than 300—and even more than 400—passed bills were the rule.
Some of these bills are major initiatives. One of the most significant pieces of tax legislation in the
state’s history passed, finally switching the burden of collecting and remitting sales tax on remote
sales from the Florida consumer to the out-of-state seller. The added revenue will be used to
replenish the Unemployment Compensation Trust Fund without having to increase UC taxes.
After the fund is restored, a significant future reduction in the business rent tax will take effect. The
Legislature also passed the largest expansion of school choice in the nation, established dedicated
funding for a program to address sea level rise, created a new $1 billion fund for future emergencies,
repealed the massive M-CORES toll road project, and revamped the state’s early learning and
workforce development programs.
Florida TaxWatch and the state’s taxpayers had a successful session. The bills passed by the 2021
Legislature included many recommended or supported by Florida TaxWatch research. The
following Legislative Wrap-Up discusses all these bills and more. It shows what passed and what did
not—both issues supported by Florida TaxWatch research and other important bills we monitored
all session long to keep our members and the public informed on our Legislative Update webpage.
2FLORIDA
Impact Fees (HB 337) – Places reasonable limits on
impact fee increases and prohibits retroactive
TAXWATCH
increases. (see Economic Development section)
TOP ISSUES
Water Safety and Swimming Certification for K-12
Students (SB 358) – Requires each public school to
provide information on the important role water safety
LEGISLATION SUPPORTED BY FLORIDA education and swimming lessons play in saving lives,
TAXWATCH THAT PASSED including local options for age-appropriate water safety
E-Fairness (SB 50) - Requires out-of-state sellers to courses and swimming lessons. The final bill language
collect and remit taxes on Florida sales, removing a was ultimately passed as a part of an omnibus education
major competitive disadvantage for Florida retailers, bill (SB 1028). (see Health & Aging section)
transferring the burden to remit taxes from consumers Procurement Reform (HB 1079/HB 1137) – Makes
to sellers, and protecting Floridians from collection improvements to the state’s system for contracting for
actions, penalties, and interest. (see Taxation section) goods and services (HB 1079) and the procurement of
Business Rent Tax (SB 50) – After replenishing the information technology (HB 1137). (see Government
UC Trust Fund, the E-Fairness revenue will be used to Efficiency and Accountability section)
provide a significant cut in the sales tax on commercial Sea Level Rise and Flooding Resilience (SB 1954) –
leases (5.5% to 2.0%). (see Taxation section) Creates the Statewide Flooding and Sea Level Rise
UC Tax Relief (SB 50) - Revenue from E-Fairness will Resilience Plan and the Resilient Florida Grant
be used to avoid a major tax increase when employers Program. (see Environment section)
can least afford it. (see Taxation section) Sales Tax Holidays (HB 7601) – The tax package
COVID-19 Liability Shield (SB 72) – This will contains a Back to School and Disaster Preparedness
protect businesses, non-profits, churches, health care sales tax holiday, as well as a new Freedom Week Sales
providers, and colleges and universities (HB 1261) from Tax Holiday that would exempt certain admissions and
frivolous COVID-19 related lawsuits while protecting outdoor activity equipment and supplies. (see Taxation
the rights of those harmed through true negligence. (see section)
Economic Development section) Program of All-Inclusive Care for the Elderly (HB
M-CORES (SB 100) – Repeals the massive new toll 905) – Allows AHCA to review program applications
road project, replacing it with a more flexible and less and approve new PACE organizations. This should
costly program. (see Transportation section) increase applications, providers, and access. The new
budget funds 800 new slots (see Health & Aging section)
Early Learning and Early Grade Success (HB 419/
HB 7011) – The improvements to early learning made Statewide Law Enforcement Radio System (SLERS)
by these bills could be transformational for Florida’s (SB 2502/2510) – Faced with the prospect of the
education system and children. (see Education section) current SLERS contract expiring without a viable
replacement in place, the Legislature extended the
School Choice (HB 7045) – Consolidates the state
contract with the current provider and the $3 surcharge
school choice scholarships programs and greatly
on traffic violations that helps pay for it, as
expands the number of available scholarships and who
recommended by Florida TaxWatch (see Corrections and
can qualify for them. (see Education section)
Public Safety section).
3Civics Instruction (SB 146/HB 5/SB 1108) – Three Qualified Target Industry (QTI) Tax Refund
separate bills promoting civics education in Florida were Program (SB 7068) – Reestablishes the QTI Program
passed by the 2021 Legislature. (see Education section) that was created to encourage the creation and retention
Promote Broadband Access in Underserved of high-quality, high-wage jobs and consistently shows a
Areas (HB 1239) – Although a sales tax exemption for high return on investment.
communications and internet access equipment was (see Economic Development section)
removed from the bill, it still contains measures to Consumer Data Privacy (HB 969) – This bill
promote broadband deployment, including a grant attempted to deal with the real problem of protecting
program for the expansion of broadband to underserved people’s private data. Our analysis found that while it
areas. (see Economic Development section) may provide some level of privacy, it would
Independent Living Services (SB 794) – Increases the disproportionately affect small businesses and expose
funding for James Patrick Memorial Work Incentive Florida employers to significant costs and economic
Personal Attendant Services Program ( JPPAS). risks. The bill was scaled-back, but concerns remained.
(see Health & Aging section) (see Economic Development section)
Corporate Income Tax Piggyback Bill (HB 7059) – Telehealth – Several bills seeking to remove barriers to
Florida will not be adopting the federal tax relief expansion of telehealth advanced but did not pass.
measures in the Coronavirus Aid, Relief, and Economic (see Health & Aging section)
Security Act. (see Taxation section) Visit Florida (SB 778) – Would have made this
Rounding In/Brackets Out (SB 50) – Switching to the valuable entity permanent. (see Economic Development
more modern, accurate, and taxpayer friendly rounding section)
system for calculating sales tax due. Elderly Prisoner Release Program (SB 232) - Florida
(see Taxation section) TaxWatch research finds that elderly prisoners cost the
Juvenile Diversion Record Expungement (HB most to incarcerate but pose the least danger to public
274) - Florida TaxWatch supports diverting kids from safety. (see Smart Justice section)
the correctional system when appropriate. (see Smart Sentencing Reform – Numerous bills to change the
Justice section) focus of incarceration to persons who truly should be in
Veterans Courts (HB 7023) – Florida TaxWatch prison did not pass. (see Smart Justice section)
supports the use of Veterans’ Courts and other problem- Protecting Affordable Housing Funding (SB 510) –
solving courts as they emphasize treatment over Would have prohibited the sweeping of housing trust
incarceration. (see Smart Justice section) funds. (see Economic Development section)
Physician Assistants (HB 431) – Expands physician Film Incentives (SB 704) – Would have created a
assistants’ scope of practice. (see Health & Aging section) sound, fiscally responsible incentive program to help
DID NOT PASS grow targeted industries such as film and television
production. (see Economic Development section)
Pension Reform (SB 84) - Requires all new Florida
Retirement System members to enroll in the Defined Fleet Management (SB 1152) – Would have
Contribution Investment Plan. Does not impact current implemented a centralized fleet management system
members of the FRS. (see Government Efficiency and for state vehicles. (see Government Efficiency and
Accountability section) Accountability section)
4OTHER FLORIDA
clean up the Piney Point phosphate site, and $1.4
billion for water quality, beach renourishment and
TAXWATCH
sea-level rise. The $3.5 billion in unallocated stimulus
dollars will go into General Revenue. It is uncertain
ISSUES when Florida will receive all these funds, but if you
count the unallocated dollars, Florida’s reserves
The remainder of this paper is a rundown of all of the approach $10 billion. See how the federal funds will
bills that were the focus of Florida TaxWatch research, be spent.
recommendations, and interest.
SELECTED BUDGET
BUDGET HIGHLIGHTS
Budget Tops $100 Billion - The FY 2021-22 state PAY ISSUES
budget totals $101.5 billion. The new budget is $9.2 • Increase minimum wage for state employees from
billion more than the current one, quite remarkable $13 per hour ($43 million)
when you consider that not that long ago, it was • State Attorney’s and Public Defenders 10 percent
projected lawmakers would be facing a $3 billion pay increase ($1.3 million)
shortfall this session. An economy that began • DCA Judges 10 percent pay increase ($1.6 million)
recovering much quicker than anticipated and a massive • Child Care and Early Learning Instructors -$1,000
influx of federal aid allowed lawmakers to pass a record bonus ($166 million federal funds)
budget and keep a record amount of reserves. There • Classroom teachers and principals - $1,000 bonus
was plenty of money to go around and most involved ($216 million federal funds)
were happy, reflected in the budget passing by a
combined 156-1 vote. Most of the proposed cuts, RESERVES
including deep ones in health care, were scrapped, and • $6.7 billion (includes $350 million in federal funds
big investments were made in many areas. The $9.2 added to Budget Stabilization Fund)
billion increase over current spending includes $6.9 • Eliminate Lawton Chiles Endowment (just under
billion in increased federal Medicaid and education $1 billion) and transfer to BSF.
funds. However, the $101.5 billion bottom line does • Create a $1 billion reserve fund for the Governor
not include any of the $10.2 billion in federal stimulus to use to respond to future emergencies.
funds from the Coronavirus State Fiscal Recovery Fund • Although it’s not certain when the state will get
in the American Rescue Plan. the $10.2 billion in federal Coronavirus State
Fiscal Recovery Funds, the $3.5 billion currently
Federal Stimulus $$ - The Legislature did outline how unallocated will go into GR reserves.
$6.7 billion of those funds will be spent, but since this
spending is in the “back of the bill” and technically EDUCATION
appropriated for the current fiscal year, it is not • K-12 Per Student Funding - $7,795 ($39/0.5
included in the $101.5 billion budget total. This percent increase)
spending includes $2 billion for transportation, $1 • Base FEFP Funds (flexible) – increase of $473
billion for a new Emergency Preparedness and million (3.5 percent)
Response Fund, $400 million for education facilities, • Teacher Salary Increase - $550 million (increase of
$1,000 bonuses for first responders, $100 million to $50 million to continue increasing minimum salary
to $47,500)
5• Student Reserve Allocation - $464 million for • Prison Closures – no mandated closures, but the
potential return of students that did not enroll Dept. of Corrections may develop a comprehensive
during pandemic. plan for the consolidation of one state-operated
institution.
HEALTH AND HUMAN SERVICES
• Courts and Clerks of the Court Pandemic
• Medicaid Caseload and Price Level Increase - $4.3
Recovery Plan - $16 million
billion ($1.2 billion general revenue)
• First Responders $1,000 Bonus Payment - $208.4
• Medicaid Post-Partum Care - $240 million to
million (federal funds)
extend from two months to 12 months.
• Large proposed cuts for hospitals and nursing
homes were scrapped during conference.
• Persons with Disabilities - $95.7 million to reduce
TAXES
TOP TAXWATCH PRIORITIES
the Home and Community Based Services Waiver E-Fairness/UC Tax Solvency/Business Rent Tax
waitlist. Relief - SB 50 – One of the most significant pieces of
• Child Welfare Best Practices and evidence-based tax legislation in Florida history contains four Florida
prevention services - $42 million TaxWatch recommendations, two of which have been
ENVIRONMENT our top tax issues for years. SB 50 has already been
• Everglades Restoration and Water Quality - $2.1 signed by Governor DeSantis. The bill began as a way
billion to finally address the issue of collecting sales taxes on
• Resilient Florida Grants (new program) - $500 remote sales. After being viewed as unconstitutional
million (contingent on federal funds) for many years, the U.S. Supreme Court (South Dakota
• Wastewater Grants - $500 million (contingent on v. Wayfair, Inc.) in 2018 ruled that states can apply
federal funds) reasonable requirements for remote sellers to collect
• Florida Forever Land Acquisition - $402 million sales and use taxes on sales to residents even if the
(includes $300 for Wildlife Corridor contingent on vendor does not have a physical presence in the state.
federal funds) Coming into the session, Florida was one of only two
• Piney Point phosphate site cleanup - $100 million states that had not taken steps to fix this issue in the
wake of the decision. As the bill moved through the
ECONOMIC DEVELOPMENT process, the other provisions were added, making a
• VISIT FLORIDA – increase funding from $50 great bill even better. The Florida TaxWatch
million to $75 million recommendations in SB 50 are:
• Job Growth Grant Fund - $50 million
• E-Fairness – Remote sellers and marketplace
• Affordable Housing - $209 million, $362 million
providers will now be required to collect sales taxes
swept from the housing trust funds. In addition,
on sales to Florida customers. This requirement
legislation passed that permanently reduces the
does not apply to sellers with less than $100,000 in
funds available annually for affordable housing by
annual Florida sales and a safe harbor is provided
more than half.
for businesses who failed to collect the sales tax
PUBLIC SAFETY prior to July 1, 2021, as long as they register with
• Continue transition to 8.5 hour shifts at the Department of Revenue prior to October 1,
correctional institutions - $17 million and 220 2021. This is not a new tax—it is already owed
positions under current law—but one of shifting the burden
6of collecting the taxes on remote sales from Florida overtaxed by tens of millions of dollars a year.
consumers to where it belongs: out-of-state
The bill also requires marketplace providers to collect
retailers. Not collecting sales taxes on remote sales
and remit the waste tire fee, lead-acid battery fee, and
not only costs Florida state and local governments
E911 prepaid wireless fee, beginning April 1, 2022.
$1.3 billion a year in legally owed revenue,
it also puts Florida retailers at a competitive This was a very long-time coming and Florida
disadvantage, distorts purchasing decisions, is TaxWatch would like to thank the many people and
unfair to Floridians that do pay the tax, and makes organizations who helped get this done. We were also
millions of Floridians—often unwittingly— pleased that the legislation is named the Park Randall
lawbreakers. Without this bill, Floridians would “Randy” Miller Act. Randy, who passed away last year,
have continued to be subject to collection action by was a former DOR Executive Director, president of the
the state (e.g., auditing, fines, and penalties) even Florida Retail Federation, a Florida TaxWatch
though many were unaware of this tax obligation. Executive Committee member, and a leading advocate
for E-Fairness legislation.
• Avoid a UC tax increase - The approximately $1
See some of Florida TaxWatch’s research on
billion in added annual state revenue collections
E-Fairness here and here, our committee testimony,
will be deposited into the Unemployment
and our letter to the Governor.
Compensation (UC) Trust Fund, which has been
decimated by job losses during the pandemic. Recommendations of the Florida TaxWatch
The UC deposits will continue until the fund is COVID-19 Taxpayer Task Force - In the early days of
replenished to pre-pandemic levels ($4.07 billion). the pandemic, Florida TaxWatch formed the
Further, UC tax rates will be calculated without the COVID-19 Taxpayer Task Force to discuss
considering the impacts of the pandemic-related opportunities and options to help Florida recovery and
job losses. This will avoid a major tax increase ease the burdens created by the pandemic on Florida
on all businesses when many can least afford it, taxpayers. Made up of public policy professionals, tax
helping them on the road to recovery. and budget experts, and leaders of both small and large
businesses, the Task Force was established to identify
• Reducing the Business Rent Tax – Two months
those areas of state tax policy that could be addressed
after the UC Trust Fund is replenished (in
both immediately and in the long term to provide
approximately two to three years), the sales tax
Florida’s businesses—and their employees and
on commercial leases will be reduced from 5.5%
customers—appropriate relief and assistance. The
to 2.0%. FTW has proposed using the added
E-Fairness, UC Tax, and Business Rent Tax provisions
revenue from E-Fairness to reduce/eliminate the
in SB 50 were all recommended by the Task Force. In
BRT, a tax that is unique to Florida and creates
addition, a number of other Task Force’s
a competitive disadvantage for any business that
recommendations advanced this session. See this
leases property.
summary of recommendations that were included in
• Rounding in, brackets out - The state will ditch legislation this session.
the outdated bracket system used to calculate
Tax Package - The Senate took up the House tax relief
the amount of sales tax due and replace it with
bill (HB 7061) and adopted an amendment that
the more taxpayer-friendly rounding system.
contains most of the provisions in both the House and
The bracket system results in consumers being
7Senate (SB 7068) bills while adding a couple more. In Property Tax Exemption for Flood Resistance
addition to the two sales tax holidays proposed by both Improvements - HJR 1377 is a proposed
chambers, the Senate amendment picked up--and constitutional amendment to authorize the Legislature
expanded--the House’s proposed “Freedom Week” sales to prohibit the consideration of any change or
tax holiday that exempts admissions to performances improvement made to real property used for residential
and events and the sales of outdoor activity equipment purposes to improve the property’s resistance to flood
and supplies. There are tax credits for hiring interns, damage in determining the assessed value of the
making contributions to organizations that focus on property. The implementing language, should the
children, and cleaning up contaminated sites (one-time amendment by approved by the voters, is in the final
increase). A sales tax exemption is created for specified tax package (HB 7601). HJR 1377 has been approved
items that assist in independent living, an expanded unanimously by both chambers, sending it to the
property tax exemption for affordable housing, and November 2022 ballot.
several narrower changes and tax administration
Homestead Exemption for Low-Income Seniors -
provisions. The tax package’s total tax savings is $196
(HB 597 and SB 1256) – Currently, taxpayers
million, almost all of it one-time or local tax savings.
claiming the homestead exemption for low-income
See what is in the final tax package, what changed, and
seniors must submit a sworn statement of household
what is in the new Freedom Week Sales Tax Holiday in
income annually. The bill would now require the
this TaxWatch analysis. See what was in the original
taxpayer to submit the statement only once. The bill
bills in this Florida TaxWatch analysis. See what
also requires the property appraiser to annually notify
changed and what is covered in the new Freedom
each taxpayer claiming the exemption of the adjusted
Week Sales Tax Holiday.
income limitation for that year. The taxpayer must then
OTHER BILLS THAT PASSED notify the property appraiser if his or her income
Corporate Income Tax Piggyback - The first Senate exceeds the income limitation. HB 597 has been
version (SB 7082) of the annual piggyback bill would approved by both chambers.
have picked up almost all the changes to the federal
New Worlds Reading Initiative Tax Credit (HB 3)
CIT code that were made by the CARES Act, as was
- In order to fund the newly created New Worlds
recommended by the Florida TaxWatch COVID-19
Reading Initiative, businesses that make monetary
Taxpayer Task Force. This would have saved taxpayers
donations to the program may receive a dollar-for-
$212 million in FY 2021-22 and a little over $100
dollar credit against the corporate income tax,
million annually. However, the House piggyback bill
insurance premium tax, severance taxes on oil and gas
(HB 7059) decoupled from most of the provisions,
production, alcoholic beverage taxes, or self-accrued
scuttling almost all the savings. The Senate amended its
sales tax liability of direct pay permit holders. The
bill to also decouple from the tax relief provisions. CIT
annual tax credit cap for all credits under the initiative
will continue to be a big issue, especially with the tax
is $10 million for FY 2021-22, $30 million for FY
rate scheduled to return to 5.5 percent, which will be
2022-23, and $50 million for each following fiscal
applied to an expanded tax base. HB 7059, without
year. HB 3 has been approved by both chambers.
adopting the federal tax relief provisions, was
approved by both chambers. Car-Sharing Programs (SB 566) - In addition to
establishing insurance and operational requirements for
car-sharing programs, the bill clarifies the sales tax
8applies to these programs and imposes a reduced equipment used by providers of communication or
surcharge of $1 per day on a rental or lease of less than internet access services was removed. Broadband
24 hours. SB 566 was approved by both chambers. provides many benefits in economic development,
education, and health care. Many rural areas in Florida
TAX BILLS THAT FAILED
cannot take advantage of these benefits. Florida
Qualified Target Industry (QTI) Tax Refund
TaxWatch concludes that the exemption and
Program – The QTI Program was created to encourage
encouraging reasonable fees to access municipally
the creation and retention of high-quality, high-wage
owned poles would be an efficient and immediate
jobs through state refunds of certain state and local
method to encourage broadband deployment in
taxes to businesses creating jobs in highly sought-after
Florida. HB 1239 had the sales tax exemption
industries. It sunset on June 30, 2020 after legislation to
removed but still promotes broadband deployment.
make it permanent failed to pass during the 2020
session. Florida TaxWatch’s COVID-19 Taxpayer Task TAX RELIEF BILLS THAT DIED IN
Force recommended that QTI be reestablished. This is COMMITTEE
one of the state’s most successful economic • SB 1390 and HB 1125 would have expanded
development programs, the state’s last three reviews the capital investment tax credit to projects that
have shown QTI has a positive ROI between 4.3:1 and develop intellectual property. SB 1390 made it to its
6.4:1. SB 982, reauthorizing the program, passed two last committee-Appropriations.
committees. The language was added to the Senate tax
• SB 806 would have created a sales tax exemption
package (SB 7068) but was pulled out of the final
for diapers and incontinence products. SB 806
version (HB 7601).
was approved by two committees but there was no
Tourist Development Taxes (TDTs) - HB House companion.
1429 requires all TDTs to be reapproved by
• SB 302 and HB 637 would have created a Small
referendum every five years and requires any TDT
Business Sales Tax Holiday that would make all
currently imposed to be renewed in a referendum on or
sales made by small business exempt from the sales
before July 1, 2026. It also removes the precondition to
tax on November 27, 2021. SB 302 was approved
levy certain of the five TDTS before levying certain
by two committees.
others. Lastly, the bill authorizes all TDT revenue to be
used to finance flood mitigation projects or • SB 140 would have created fees for electric
improvements. Florida TaxWatch has historically vehicles to be used for the Electric Vehicle
opposed expansion of the authorized uses of TDT Infrastructure Grant Program (HB 138). The
revenue as it takes away from the important original use fees would have been $135 (increasing to $150
of funding tourism promotion. HB 1429 has been on January 1, 2025) for an EV weighing under
approved by the full House. The House has also included 10,000 pounds and $235 (increasing to $250) for
these provisions in its tax package (HB 7061), but it is EVs over 10,000 pounds. Plug-in hybrids would
not included in the final tax package agreement. have had a fee of $35 (increasing to $50). For more
information see the Transportation section. Both
Sales Tax Exemption for Broadband Deployment
bills made it to their last committee-Appropriations.
Equipment - A bill to expand broadband access did
pass (see Economic Development section), but a sales • SB 1584 would have limited the documentary
tax exemption for the purchase, lease, or sale of stamp tax due to the difference between the
9CORRECTIONS &
price the seller paid and the price the subsequent
purchaser paid for a single-family residence or
PUBLIC SAFETY
condominium, if the seller sells the property to an
unrelated purchaser in an arm’s length transaction
within 75 days after buying the property and the PASSED
price is 110 percent or less than what the seller paid Juvenile Diversion Record Expungement (HB
for the property. The bill originally only covered 274) - This will permit a juvenile who completed a
sales made on real property platforms (resale diversion program for any offense, including felony
within 180 days) but was later broadened. SB 1584 offenses, to apply to have the nonjudicial arrest record
passed two committees. expunged. The juvenile may also lawfully deny or fail to
acknowledge his or her participation in the program and
the expunction of the nonjudicial arrest record.
Currently, this is only allowed for misdemeanor
offenses. Florida TaxWatch supports helping juveniles
recover from mistakes and keeping them from returning
to the system.
Veterans Courts (HB 7023) – These “problem-solving
courts”, modeled after drug court treatment programs,
divert veterans, servicemembers, and other eligible
individuals into treatment programs for military-related
conditions or war-related trauma. Eligibility for a VTC
program is limited to a defendant with a military-related
mental illness, traumatic brain injury, substance abuse
disorder, or psychological problem. The bill allows a
court with criminal jurisdiction to create and administer
a VTC, which may adjudicate both felony and
misdemeanor offenses. It also creates uniform
standards and procedures. Florida TaxWatch supports
the use of Veterans’ Courts and other problem-solving
courts as they emphasize treatment over incarceration.
Juvenile Justice Programs (HB 885) - The bill retains
the Accountability and Program Support program
within the Department of Juvenile Justice (DJJ). This
program was temporarily created by the budget
implementing bill last year. This change will allow the
retention of the assistant secretary that was appointed to
oversee the program and consolidate DJJ’s oversight and
monitoring efforts. The bill also requires that specified
information be considered before a court issues an
order to take a child into custody for failing to appear, to
10determine if the failure was willful. Each judicial circuit DID NOT PASS
is also required to develop a written plan specifying the Sentencing (SB 328) - The adoption of mandatory
alternative consequence components available when a minimums in Florida and other states in the 1990s
juvenile commits a technical violation of probation. resulted in huge increases in prison populations and
These plan must consider and reflect: the severity of the their associated costs to our state and the nation. While
technical violation; the child’s individual criminogenic mandatory minimums ensure that serious offenders will
needs; the child’s age and maturity level; and how serve longer sentences, they also mean that all
effective the alternative component will be in applicable offenses are subject to the same, objective
motivating the child to comply with his or her treatment, often tying judges’ hands. This can result in
probationary terms. DJJ, in consultation with the sentencing individuals struggling with substance abuse
Department of Education, is authorized to evaluate the issues to the same lengthy prison terms as violent
viability of an alternative model for providing and offenders. Florida TaxWatch research has long-
funding educational services for youth in detention and supported a “Judicial Safety Valve,” which authorizes
residential facilities. judges to exercise judicial discretion and deviate from
mandatory minimums in certain low-level criminal
Statewide Law Enforcement Radio System (SLERS)
cases. We commended the Legislature on its changes to
– The procurement process to update the state’s unified
mandatory minimums in 2016 and 2019. HB 328
digital law enforcement radio network has been beset
would have extended these good changes to more
with problems and delays. The current contract
people by making them retroactive, which increases the
between the Department of Management Services
equity of Florida’s sentencing laws. The process the bill
(DMS) and what is now L3Harris is set to expire in June
created to determine if an inmate qualifies for possible
2021. In 2016, DMS initiated an Invitation to Negotiate
resentencing and requiring that inmate to petition the
(ITN) to replace the aging SLERS equipment, which is
original sentencing court for a resentencing hearing
nearing end-of-life. The ITN was unsuccessful. After a
provided safeguards. SB 328 died in its last committee-
seven-month bid protest process and the 14-months of
-Appropriations.
negotiations that followed without a contract, DMS is
no closer to a contract for a successor SLERS network Conditional Aging Inmate Release and Medical
than it was in 2016. Citing the “immediate danger to Release (SB 232) – This bill contained numerous
the public health, 2100 safety, and welfare” of letting the criminal justice provisions but one of the key provisions
contract expire with a replacement, the budget is the establishment of programs that would permit the
implementing bill (SB 2502) directs DMS to continue conditional, supervised release of inmates with terminal
partnering with the current provider. In addition, SB medical conditions or who are suffering from severe
2510 extends the expiration date of the $3 surcharge on debilitating or incapacitating medical, as well as low-
all noncriminal moving traffic violations and certain risk, non-violent elderly inmates. Florida continues to
criminal offenses for five year (to July 1, 2026), to bear the increasing medical and housing costs of a
continue the support for the cost of SLERS. Both of growing elderly prison population. Florida TaxWatch
these actions were recommending in the Florida research finds that elderly prisoners cost the most to
TaxWatch report on SLERS. incarcerate but pose the least danger to public safety.
The National Institute of Corrections estimates that
states spend on average $70,000 per year to incarcerate
someone age 50 or older, nearly three times what it
11costs to house a younger prisoner, largely because of the SB 662 would have allowed a state attorney to file a
difference in healthcare costs. Elderly inmates are not petition for a new sentencing hearing if the original
eligible for federal healthcare support; however, they sentence no longer advances the interests of justice. If
are eligible for federally funded Medicaid (with state granted, the trial court would resentence the offender,
match) and/or Medicare upon their release. The and take into account prison disciplinary records,
Government Efficiency Task Force estimated the rehabilitation, recidivism risk, and other changed
supervised release of only those elderly inmates who circumstances. The revised sentence could not exceed
are 70 years of age or older could result in estimated the current sentence. SB 662 passed the Judiciary
annual savings of $75.5 million to $79.9 million. SB Committee unanimously.
232 was approved by the Senate Criminal Justice
SB 620 would have required the consideration an
Committee.
inmate’s institutional achievements, lack of disciplinary
• Florida TaxWatch testimony on SB 232
reports, and all indications of the lack of risk to the
(submitted to committee)
public in the decision to parole the inmate. The bill
• Florida TaxWatch research on aging inmate
would have created a long-term inmate program for
release
parole-eligible inmates to prepare them for
SB 468 would have provided for the expunction of reintegration into the community. Individuals
certain criminal history records relating to the participating in the program would be required to
misdemeanor offense of possession of 20 grams or less complete 250 hours of community service, 100 hours
of cannabis, regardless of disposition. A person may of enrichment programs, and an evidence-based
only receive one expunction under this section and may curriculum that address such topics as anger
only petition the court for an expunction after at least management, criminal thinking, educational and
one year has elapsed and he or she is no longer under vocational needs, family relationships, lifestyle and
court supervision. SB 468 passed the Senate but died wellness, substance use disorder treatment, and victim
in messages. impact. SB 620 made it to its last committee and the
House companion (HB 69) passed one committee
SB 626 would have prohibited a child younger than 7
unanimously.
years of age from being taken into custody, arrested,
charged, or adjudicated delinquent, unless the violation SB 482 would have allowed more offenders to be
of law is a forcible felony. SB 626 passed the Senate sentenced to a nonstate prison sanction in lieu of
but was not taken up by the House. prison by increasing the sentence point thresholds. A
sentence would have to be based on a sentencing
SB 472 would have increased the number of days that
range—not the statutory maximum for any offense.
may be awarded for incentive gain-time from 10 days
However, a court could sentence an offender for a term
to 20 days per month, regardless of when the offense
that exceeds the maximum term under the calculated
was committed. Currently 20 days is only allowed for
sentencing range if the trial judge provides justification
offenses committed before 1994. Current law prevents
for the longer sentence. SB 482 died in Criminal
an inmate from using gain-time to serve less than 85
Justice.
percent of a sentence, regardless if the offense is a
violent or non-violent felony. Under the bill, an inmate
serving a sentence for a nonviolent felony must serve at
least 65 percent of his or her sentence. SB 472 died in
Judiciary.
12ECONOMIC
SB 1032 would have allowed the awarding of three
types of reductions to a prisoner’s sentence in the form
DEVELOPMENT
of outstanding deed awards, good behavior time,
and rehabilitation credits. Outstanding deed awards
of 30 to 60 days could be awarded for deeds such as PASSED
saving a life. DOC would be required to grant 10 days COVID-19 Liability Shield (SB 72) - One of the
per month of good behavior time to encourage many negative impacts of COVID-19 is that employers
satisfactory behavior and develop character traits for are fearful of keeping their businesses open because of
successful reentry into the community. DOC would be the threat of opportunistic, predatory, and expensive
authorized to grant up to two additional days per month litigation resulting from alleged exposure to the virus
of good behavior time to prisoners serving certain drug when they are taking proper precautions. Responsible
sentences. Prisoners could earn rehabilitation credit for organizations that are acting in good faith to comply
completion of a high school equivalency diploma, a with public health directives and are investing in
college degree, vocational certificate, drug treatment measures to protect their patrons and employees must
program, life skills program, reentry program, or other have comfort that they will be able to operate without
evidence-based program approved by the DOC that fear of such litigation while ensuring those that are
serves the purpose of reducing recidivism and assisting harmed due to negligent behavior are protected. Our
a prisoner to reintegrate into society. SB 1032 made it report highlights the critical economic need for the
to its last committee. protections. In short, if employers’ confidence in the
economy is shaken due to the absence of a liability
shield, we would reduce the Florida economy by as
much as $27.6 billion and more than 356,000 jobs
annually. Separate legislation providing COVID
liability protection for health care providers (HB 7005
and SB 74) was combined with SB 72. (see Health and
Aging section). SB 72, which combined both liability
shields, passed both chambers and has been signed by
the Governor.
Florida TaxWatch testimony on SB 72 and HB 7
(submitted to committee)
Florida TaxWatch research on COVID-19 liability
Affordable Housing Funding – A Florida TaxWatch
report highlighting the affordable housing crisis in
Florida recommended that the Legislature stop
diverting this revenue and fully fund affordable housing.
Last year, the legislature did just that, but that victory
was short-lived. A budget conforming bill (SB 2512)
permanently changes the distribution of the
documentary stamp tax to reduce the revenue going
into the housing funds by more than half (from $423
13million to $200 million). The redirected revenue would unserved and underserved areas of Florida. The bill
be split ($111.7 million each) between the new appropriates $1.5 million for the Office to
Resilient Florida Trust Fund and the Water Protection develop geographical information system (GIS) maps
and Sustainability Program Trust Fund to be used for of Florida’s broadband Internet service availability. The
wastewater grants (see Environment section). The bill bill requires municipal electric utilities, through July 1,
does make what is left in the housing trust funds 2024, to offer broadband providers a promotional rate
off-limits for sweeping, but in effect the bill makes an of $1 per attachment per year for any new pole
annual $223 million sweep permanent. The budget also attachment necessary to make broadband service
sweeps $362 million from the housing trust funds this available to an unserved or underserved consumer.
year, and a proposal to allocate federal stimulus funds HB 1239 has been approved by both chambers.
to housing was removed from the final plan. SB 2512
Revamping Florida’s Workforce Development
was approved as part of the budget conference. A bill to
System (HB 1507) – The state’s workforce system has
prohibit sweeps without reducing revenue, as
struggled, and following the U.S. Department of
recommended by Florida TaxWatch, did not pass (see
Labor’s audit outlining the problems, the Governor and
SB 510 below).
the Legislature set out to make big changes—focusing
Impact Fees - HB 337 makes multiple changes to on access, coordination, accountability and results.
impacts fees. The bill limits impact fee increases Because there are several different agencies with
imposed by a local government, school district, or responsibilities in the system that do not always
special district to no more than 50 percent and not communicate, the bill creates a “no-wrong-door” entry
more than once every four years. Further, any increase strategy whereby Floridians may access services from
of up to 25 percent must be phased-in in two equal any workforce partner with a common intake form and
annual installments. Any increase between 25 percent case management system. It also creates the Office of
and 50 percent would require a four-year phase-in. The Reimagining Education and Career Help (REACH) in
bill also prohibits impact fees from being increased the Executive Office of the Governor to provide
retroactively. Local governments can bypass the coordination and alignment. The Governor also now
limitations by meeting certain statutory has the authority to seek federal waivers to create
requirements. HB 337 has been approved by both greater flexibility and strategic investment of federal
chambers. funding. In addition, by 2022-23, it will be required that
students entering a public postsecondary institution
Promote Broadband Access in Underserved Areas –
must be able to earn nationally recognized digital
Broadband provides many benefits in economic
credentials for competencies within the general
development, education, and health care. Many rural
education core courses that demonstrate career
areas in Florida cannot take advantage of these benefits.
readiness. With the disruption to the economy and job
HB 1239 will help broadband reach more Floridians.
market caused by the pandemic, now is the right time
Although a sales tax exemption for communications
to revamp Florida’s workforce development efforts. For
and internet access equipment was removed from the
a full list of the bill’s many provisions, see
bill, it contains other positive steps. It expands the
here. Another bill making additional workforce
duties of the Office of Broadband and creates the
changes (HB 1505) was also passed by the House
Broadband Opportunity Program to award grants for
but was not taken up by the Senate. Some of its
the expansion of broadband Internet service in
provisions were incorporated into HB 1507.
14Occupational Licensing (HB 735) - The bill preempts Legislature. Tourism plays a major role in Florida’s
the licensing of occupations to the state and supersedes economic strength. In 2019, more than 131 million
any local government licensing of occupations. tourists visited Florida and spent an estimated $91.3
However, any licensing adopted prior to July 1, 2021, billion. This spending supports 1.5 million jobs and
will continue to be effective until July 1, 2023, at which generates significant state and local tax revenues. The
time it will expire. Any licensing of occupations legislative Office of Economic and Demographic
authorized by general law is exempt from the Research estimates that for every $1 the state invests in
preemption. VISIT FLORIDA, $3.27 in state tax revenue is
generated. HB 778 would have removed the repeal
DID NOT PASS
from the statutes, making VISIT Florida permanent. SB
Protecting Affordable Housing Funds (SB 510) - In
778 was approved by two committees but died in its last
1992, acknowledging the importance of affordable
stop in the Senate--Appropriations.
housing, the Legislature created a dedicated source of
Florida TaxWatch testimony on SB 778 (submitted
funding for state and local affordable housing programs.
to committee)
Unfortunately, it has not really been dedicated, as these
Florida TaxWatch research on the importance of
funds have become more of a pot of money used to
VISIT FLORIDA
balance the budget or fund other initiatives. In fact,
since FY 2009-10, considerably more of these funds Qualified Target Industry (QTI) Tax Refund
have been diverted to other uses than have been Program – The QTI Program was created to encourage
appropriated for affordable housing programs. In light the creation and retention of high-quality, high-wage
of the affordable housing crisis in Florida, Florida jobs through state refunds of certain state and local taxes
TaxWatch has recommended that the Legislature stop to businesses creating jobs in highly sought-after
diverting these funds. SB 510 prohibits the State industries. It sunset on June 30, 2020 after legislation to
Housing Trust Fund and the Local Government make it permanent failed to pass during the 2020
Housing Trust Fund from being “swept” by the session. Florida TaxWatch’s COVID-19 Taxpayer Task
Legislature. SB 510 was approved by two committees Force recommended that QTI be reestablished. This is
but then stalled. A budget conforming bill (SB 2512) one of the state’s most successful economic
that passed prohibits sweeping of the housing funds but development programs, the state’s last three reviews
that bills also significantly reduces affordable housing have shown QTI has a positive ROI between 4.3:1 and
funding permanently. 6.4:1. SB 982, reauthorizing the program, passed two
Florida TaxWatch testimony on SB 510 (submitted committees. The language was added to the Senate tax
to committee) package (SB 7068) but was pulled out of the final
Florida TaxWatch research on diverting affordable version (HB 7601).
housing funds
Film, Television, and Digital Media Targeted Rebate
Making VISIT FLORIDA Permanent (SB 778) - Program (SB 704) - A 2018 report on Florida’s film
Florida’s tourism marketing organization—VISIT and television industry by Florida TaxWatch
FLORIDA—has survived misguided attempts to repeal recommended state policymakers strongly consider a
it during the last few sessions. Florida TaxWatch sound, fiscally responsible incentive program to help
research helped continue this valuable asset. VISIT grow targeted industries such as film and television
FLORIDA is now scheduled to be repealed on October production. SB 704 would award rebates to production
1, 2023 unless reviewed and saved from repeal by the companies based upon their demonstrated economic
15impact and their commitment to employ Floridians and Seminole Compact/Gaming – Late in the session, the
purchase goods and services from Florida businesses. Seminole Tribe and the Governor signed a new gaming
Allowing each potential project’s benefits to be compact that would bring sports betting to Florida
evaluated and prioritized, instead of the first-come, (with the Tribe serving as the “hub”), and allow the
first-served approach of past programs, would help state to resume sharing in the revenue. Florida
ensure that the most beneficial projects would receive TaxWatch has recommended the state enter into a new
the limited incentive (rebate of 23 percent of qualified compact. Without a compact since April 2019, the state
expenditures with a limit of $2 million.) A certified has been foregoing more than $300 million in annual
project may only receive a rebate after it has completed revenue. Under the new compact, the state could
production, and its expenditures have been verified. receive $2.5 billion over five years and as much as $1
TaxWatch does not believe that the state should billion annually after that. In addition, bills in both
relaunch an incentive program on a scale designed to chambers (SB 7076/7080 and HB
outdo the competition. However, a sound, fiscally 7053/7055) surfaced that would create a new Gaming
responsible incentive program, such as the targeted Commission and allow greyhound tracks, harness and
rebate program created by SB 704, will help to create quarter horse tracks, and jai alai frontons to “decouple”-
and sustain an environment in which film and -allowing them to offer cardrooms without holding live
television production companies can grow and grow events. However, there was not enough time for the
Florida’s economy at the same time. SB 704 was Legislature to wrap up this issue, so lawmakers will
approved by the Senate Commerce and Tourism come back in Special Session on May 17 to consider
committee. ratification of the compact and gaming legislation.
Florida TaxWatch testimony on SB 704 (submitted
Florida Small Manufacturing Business Recovery
to committee)
Act (SB 1444) – This bill would have created a
Florida TaxWatch research on film and television
program to allow investors to earn credits against the
incentives
insurance premium tax and retaliatory tax equal to their
Tourist Development Taxes (TDTs) - HB investment in certified relief funds; in turn, the relief
1429 requires all TDTs to be reapproved by funds will invest in certain businesses. The bill caps
referendum every five years and requires any TDT investment at a level that will result in no more than
currently imposed to be renewed in a referendum on or $80 million in tax credits under the program. SB 1444
before July 1, 2026. It also removes the precondition to passed two committees.
levy certain of the five TDTS before levying certain
others. Lastly, the bill authorizes all TDT revenue to be
used to finance flood mitigation projects or
improvements. Florida TaxWatch has historically
opposed expansion of the authorized uses of TDT
revenue as it takes away from the important original use
of funding tourism promotion. HB 1429 was approved
by the full House. The House also included these provisions
in its tax package (HB 7061), but it was not included in
the final tax package agreement.
16EDUCATION
teams. It will also create evidence-based summer
literacy tutoring programs for K-3 students and require
all teachers with reading deficient students to earn a
PASSED reading endorsement to their educator certificate.
School Choice - HB 7045 is a major expansion of the Florida TaxWatch commends all involved for
state’s school choice scholarship programs. The House developing and passing this legislation. The Governor
Speaker says it is the largest expansion of school choice has signed HB 419 and HB 7011.
in the nation. It makes more children eligible for school
choice, provides them with more money, and provides Education COVID-19 Liability Shield (HB 1261)
more flexibility in how they take advantage of those - Built around the same concept as the business and
options. The bill combines the McKay and Gardiner healthcare liability shields (see SB 72 in the Economic
Scholarship Programs with the Family Empowerment Development section),the bill provides educational
Scholarship with two categories—one for low-income institutions with liability protections against lawsuits
students and one for students with unique seeking tuition or fee reimbursements or related
abilities. Eligibility is expanded to students who are not damages for actions such as switching to on-line
enrolled in public school, students of parents serving in learning, closing facilities, or pausing or modifying
the military, and students who are in foster care or ancillary student activities. This protection does not
adopted. It also increases the initial eligible household apply to acts or omissions that were malicious or in bad
income from 300% to 375% of the federal poverty level, faith.
meaning families with income up to $100,000 can now
Civics Instruction - Florida TaxWatch supports the
qualify (but priority is given to families below 180% of
enhancement of civics education in Florida. This
the FPL). The scholarship award is increased from 95%
session there were numerous bills with that goal and
in current law to 100% of the funding a student is
three separate bills passed:
assigned through the FEFP based on the grade level and
• SB 146 - Requires the Commissioner of
school district. See this summary of the bill’s
Education to develop minimum criteria for a
provisions.
civic literacy practicum that may be included in
Early Learning and Early Grade Success (HB 419/ a high school United States Government course,
HB 7011) – The changes made by these two bills could beginning in 2022-2023. The practicum must
very well be transformational for Florida’s education provide students with an opportunity to be
system. It gives more information to parents about their civically engaged through unpaid government
children’s progress and establishes accountability internships, government simulations or
standards for early learning programs, with metrics observations, and observing the naturalization
based on student outcomes, learning gains, and child- process.
teacher interactions. Voluntary Pre-K will use screening
• HB 5 - The bill requires that the United States
and progress monitoring to identify literacy and math
Government course that is required for high school
deficiencies early, and provide students with intensive,
graduation include a comparative discussion of
personalized interventions. With the goal of 90 percent
political ideologies that conflict with the principles
of all third graders reading at grade level by 2030, HB
of freedom and democracy in the nation’s founding
7011 creates the Reading Achievement Initiative for
principles. DOE must approve an integrated
Scholastic Excellence Program (RAISE), a coordinated,
civic education curriculum that meets certain
statewide literacy support system using regional expert
17requirements and curate oral history resources to Financial Aid Programs
be used along with such curriculum. • Bright Futures (SB 86) – The Senate considered
cutting back the $650 million program by cutting
• SB 1108 - Amends the civic literacy requirement
scholarships for students getting certain degrees
for post-secondary education to include both an
that are less likely to lead to employment. SB 86
assessment and a course, as opposed to one or the
passed the Senate but was not taken up by the
other. It creates a process to allow students in high
House. The budget funds Bright Futures at
school to earn the civic literacy requirement before
current levels, except for eliminating a $600
enrolling in a public college or university in this
book stipend for one tier of recipients known as
state. The curriculum for students in grades 11 and
Academic Scholars.
12 must include instructions on voting using the
uniform primary and general election ballot. • Access to Better Learning and Education
(ABLE) – The Legislature eliminated ABLE, the
Tuition and Fee Waivers (SB 1261):
$6.4 million financial-aid program that provides
• To encourage students to seek degrees that lead
$2,800 awards to some private college students.
to in-demand jobs, the Legislature created a ‘buy
Opponents of ABLE said it was failing students.
one, get one free’ tuition and fee waiver. For
(HB 5601)
every upper-level course a student takes in a
STEM program of strategic emphasis as identified • Effective Access to Student Education (EASE)
by the Board of Governors (BOG), a waiver is grants – Continued funding of this private college
provided for another course in that program. A aid program will now be tied to performance, with
state university is eligible to earn incentive funding, recipient schools having to report graduation,
subject to appropriation, based on the number retention, affordability, and employment data. (HB
and value of waivers it grants pursuant to the bill’s 5601)
provisions. The bill specifies this funding would
• New Scholarship Programs – Proviso in the
be in addition to Performance-based Funding
budget creates the Randolph Bracy Ocoee
Incentive.
Scholarship Program to award scholarships of
• An out-of-state fee waiver is also for top- up to $6,100 to as many as 50 students who are
performing, out-of-state high school graduates descendants of victims of the Ocoee Election
who have a grandparent that is a Florida Day Riots of 1920 or current African-American
resident was also created. These waivers are residents of Ocoee. SB 52 creates a dual-
limited to 350 per year. enrollment scholarship program to reimburse
colleges and universities for high schoolers taking
• The State University Free Seat Program will
classes and the budget funds it at $15.5 million.
provide veterans and active duty service members
who are enrolled in an online baccalaureate Improving Reading Skills - A priority of Speaker
program a waiver for one online course. The Sprowls, HB 3 creates the New Worlds Reading
student may not be charged more than 75 percent Initiative to provide at-home literacy supports for
of normal tuition for all other courses in that elementary school students reading below grade level.
program. These waivers are limited to 1,000 per Under the initiative, a hardcopy book is delivered
year. monthly to eligible students enrolled in a participating
18You can also read
