Hitting the Midpoint with Week Five of the 2022 Legislative Session

We are officially half-way through Session with 27 days left until sine die! A busy week for the Legislature as committee meetings ramped up and bills moved through the process.

The Capitol was jam-packed this week as Seminoles gathered for FSU Days, Monroe County joined for Keys Days, and the cities congregated for the Florida League of Cities Legislative Day.

County and State officials, including Mayor Pro Tem Craig Cates, Commissioner Michelle Coldiron of Monroe County, Senator Ana Maria Rodriguez, Representative Jim Mooney, Mayor David Rice, and Commissioner Holly Raschein of Monroe County celebrate Florida Keys Day with annual traditions.



Not pictured: Chocolate Key Lime Pie on a Stick 

House and Senate Release Proposed Budgets for FY 2022-23

Last Friday, the Senate and House released their proposed budgets for this fiscal year.

The Senate revealed an approximate $108.6B Budget, including the following allocations:

• Education: $28.43B
• Human Services: $47.86B
• Criminal Justice & Corrections: $7.03B
• Natural Resources/Environment/Growth Management/Transportation: $17.91B
• General Government: $6.67B
• Judicial Branch: $667.57M

The House released an approximate $105.3B budget, consisting of the following allocations:

• Education: $28.02B
• Human Services: $47.05B
• Criminal Justice & Corrections: $5.25B
• Natural Resources/Environment/Growth Management/Transportation: $17.03B
• General Government: $7.27B
• Judicial Branch: $634.97M

Stay tuned for a full analysis of the final budget once it hits the floor soon! As we approach the last couple of crucial weeks in Session, we hope you continue to remain engaged with the Association in the push to protect home-rule.

Visit NACO's ARPA Investment Tracker

Check out the Local Government ARPA Investment Tracker which compiles a detailed picture of how large cities and counties (with populations of at least 250,000) are deploying the American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Fund dollars.

Sovereign Immunity: Amendment Raises Caps in Second Senate Committee  

CS/CS/SB 974-Sovereign Immunity by Sen. Gruters was heard on Tuesday in Senate Community Affairs. Last week, an amendment was adopted in the Senate that changed the limits to $300,000 per injured person and $400,000 per incident. Additionally, the bill authorized the Department of Financial Services to adjust the cap beginning October 1, 2032, and every 10 years after to reflect the changes in the Consumer Price Index for the Southeast or a successor index as calculated by the U.S. Department of Labor. 

However, this week an amendment was passed that would now increase the caps to $1,000,000 per claim and $3,000,000 per incident. Additionally, the amendment: 

• Removes the legislative authorization for the state and its agencies to settle claims above $1 million/$ 3 million caps, but leaves in political subdivisions to settle judgements above the caps without further action of the Legislature;
• Prohibits insurance policies from conditioning the payment of benefits on the enactment of a claim bill;
• Provides for the Department of Financial Services to adjust the caps beginning January 1, 2023, and on January 1^st every 10 years thereafter;
• Removes language that the adjusted caps would apply to claims arising on or after October 1, 2032;
• Waives the statute of limitations for certain sexual battery cases where the victim was under the age of 16 at the time of the incident; and
• Removes language that applies the increased waiver caps to claims accruing on or after October 1, 2022.

Eddy Labrador, FAC Legislative Counsel, testified on behalf of FAC in opposition to the amendment.



SB 974 passed favorably (6-3) and will move to Senate Rules. The House companion, CS/HB 985-Sovereign Immunity by Rep. Beltran awaits its final committee, House Judiciary. 

Aircraft Bill Flies Forward in the Senate



SB 2512 – Aircraft by the Appropriations Committee passed favorably (16-2) in Appropriations. The bill creates an executive aircraft pool within the Department of Management Services (DMS) for the purpose of furnishing executive air travel. The aircraft pool must consist of at least three aircrafts. The bill designates and assigns each plane in the executive aircraft pool to a tier of traveler. Plane one is exclusively for the Governor’s travel and a priority ranking is assigned for planes two and three. The bill revises the DMS’s rulemaking authority relating to the approved list of manufacturers from which governmental agencies may purchase drones to require the department to update the list annually and to provide waivers to governmental agencies under certain circumstances. The bill conforms statutes to the funding decisions in the Senate Proposed General Appropriations Act for Fiscal Year 2022-2023, which appropriates $25.3 million from the General Revenue Fund and $6 million in recurring funds from the DMS’s Operating Trust Fund for the purpose of implementing and administering the executive aircraft pool. The Companion bill, HB 5001, is on the schedule for next week. 

Bill Regulating Smoking Passes Through Senate Chambers

CS/SB 224- Regulation of Smoking in Public Places by Sen. Gruters passed unanimously (6-0) in the Environment and Natural Resources Committee. FAC waived in support. CS/SB 224 allows counties and municipalities to restrict smoking within the boundaries of any of the public beaches and public parks they own, except with regard to the smoking of cigars that do not contain a filter or a plastic tip or the smoking of pipe tobacco in a pipe. Currently, the regulation of smoking is preempted to the state, and counties and municipalities are prohibited from regulating smoking. “Smoking” is defined in Ch. 386, F.S., as “inhaling, exhaling, burning, carrying, or possessing any lighted tobacco product, including cigarettes, cigars, pipe tobacco, and any other lighted tobacco product.” The bill amends the title of the bill from “Florida Clean Indoor Air Act” to the “Florida Clean Air Act” to account for the broader application of the act proposed in the bill. The House Companion, HB 105- Regulation of Smoking by Counties and Municipalities by Rep. Altman was passed favorably out of its second committee last week.l disregard for human rights, safety, or property. 

Recall of County Commissioner Legislation Passes Second House Committee



HJR 663 and HB 1399- Recall of County Officers and Commissioners by Rep. Williamson was heard in the House Public Integrity & Elections on Monday. HJR 663, the joint resolution, proposes an amendment to the State Constitution to authorize the Legislature to provide by general law for the recall of county officers and commissioners. HB 1399, the implementing bill, provides that any member of a noncharter county may be removed from office by the electors of the noncharter county. FAC opposed the bills. HJR 663 passed unanimously (13-2) and HB 1399 passed favorably (14-3). The Senate companions, SJR 1004 and SB 1938- Recall of County Officers and Commissioners by Sen. Gruters, have not been heard.

Legislation Revising Building Inspection Services Advances to Senate Floor

CS/CS/SB 644- Building Inspections by Sen. Brodeur was heard in its last committee, Senate Rules on Thursday. SB 644 provides that an individual may sit for building inspector or plans examiner licensure test by completing a 4-year internship with a private entity and under direct supervision of a licensed building official. Additionally, the Building Code Administration and Inspectors Board (BCAIB) must create a rule establishing the partial completion of an internship program may be transferred between local governments or private entities. The bill prohibits the BCAIB from issuing a provisional license with a special condition or requirement that such licensee be employed by a municipality, county, or other local government agency.

The bill requires local governments to provide equal access to all permitting and inspection documents to a private provider, owner, and contractor if an owner or contractor retains a private provider.

Additionally, the bill outlines that a local law, ordinance, or regulation may not prohibit or otherwise restrict the ability of a private property owner to obtain a building permit to demolish any single-family residential structure located in certain flood hazard areas according to Flood Insurance Rate Maps produced by the Federal Emergency Management Agency (FEMA) under certain circumstances.

SB 644 passed favorably (16-1) and awaits action on the Senate floor. A similar bill, CS/HB 423- Building Inspection Services by Rep. LaMarca awaits action in its last committee, House Commerce.

Bills Preempting Counties from Regulating Private Parking Facilities Advances in Both Chambers

This week, HB 219- Real Property Rights by Rep. Tuck passed favorably (18-0) in the Local Administration & Veterans Affairs Subcommittee and SB 1380- Real Property Rights by Sen. Rodriguez (A) passed favorably (9-0) in the Community Affairs Committee.

The bills prohibit a county or municipality from enacting any ordinance or regulation restricting or prohibiting the owner or operator of a private parking facility from establishing rates and fees and issuing fines. Both bills will advance to their last committee stops, House Judiciary and Senate Rules. SB 1380 is on the agenda to be heard in Senate Rules on Tuesday, February 15^th at 10 AM. red on the House floor. 

Bills to Assist Rural Counties Receive Unanimous Support in Both Chambers

HB 685- Rural Development by Rep. Drake passed unanimously (12-0) in the Infrastructure & Tourism Appropriations Subcommittee. The bill is the House version of the rural economic development package this session. FAC waived in support of the bill.

The bill reduces the required non-state match amount for the Regional Rural Development Grants Program from 25 percent to 15 percent and allows in-kind contributions to count toward this threshold. The bill removes the requirement that repaid funds from the Rural Community Development Revolving Loan Fund be matched to be retained to fund future loans. Additionally, the bill revises the uses of the Rural Infrastructure Fund to remove the requirement that grants be linked to financing specific projects. The bill increases the proportion of an infrastructure project that may be covered by the grant from 50 percent to 75 percent and increases the maximum grant for infrastructure feasibility studies, design and engineering activities, or other infrastructure planning and preparation activities to $300,000 for all projects. The bill removes the local match requirement for surveys, feasibility studies, and other activities related to the identification and preclearance review of land, which is suitable for preclearance review, and removes the requirement that a grant for an employment project create a minimum number of jobs.

The comparable bill, CS/SB 800- Economic Development by Sen.Albritton, passed unanimously (7-0) in its second committee, Finance & Tax. FAC waived in support of the bill. The bill authorizes municipalities to exempt the public service tax of electrical energy purchases, starting on 7/1/23. Additionally, it exempts building materials from taxes imposed on the rehabilitation of real property. Electrical energy used in an opportunity zone of a municipality shall receive a municipal utility tax exemption equal to 50% for any qualified business. It revises the Rural Tax Credit program by removing the requirement that a new eligible business in a qualified area has at least 10 qualified employees. A tax credit of $2,500 would be received for each employee, an increase of $1,000. Lastly, it requires the Department of Economic Opportunity (DEO) to allocate 10% of the funds in the Florida Job Growth Grant Fund to projects within rural areas of opportunity. An amendment was adopted that gives more flexibility in the infrastructure fund relating to grants and fiscally constrained counties, which was offered by the Department of Economic Opportunity.. 

New Technological Water Quality Initiatives Pass in the House

CS/HB 421- Long-term Cleanup of Water Bodies by Rep. Truenow passed unanimously (17-0) in the Environment, Agriculture, and Flooding Subcommittee. An amendment was adopted that revised two of the criteria that technologies must meet to qualify for procurement by DEP. The bill, known as the “Implementation of Long-term Solutions for Cleaning Florida’s Water Bodies Act”, requires the Department of Environmental Protection to acquire innovative technologies to physically remove harmful algal blooms, toxins, algae, and nutrients from water across the state through pilot programs. The technology must be proven to reduce nitrates and toxins that foster harmful algal blooms and improve water quality in freshwater bodies. Additionally, it must provide a low-carbon or direct-air-capture benefit. The Senate Companion, SB 834- Long-term Cleanup of Harmful Algal Blooms by Sen. Brodeur has not been heard yet this Session.

Sales Tax Exemption Holiday on ENERGY STAR & WaterSense Products Clears the House

HB 201 - Sales Tax Holiday for ENERGY STAR & WaterSense Products by Rep. Daley passed unanimously (18-0) in the Ways & Means Committee. The bill provides a sales tax exemption for certain ENERGY STAR and WaterSense products from April 22, 2023, to April 24, 2023. The Committee adopted an amendment that changed the date from 2022 to 2023. ENERGY STAR products must include an ENERGY STAR label and include a room air conditioner, air purifier, ceiling fan, clothes washer, clothes dryer, dehumidifier, dishwasher, freezer, refrigerator, water heater, swimming pool pump, or package of light bulbs. WaterSense products must include a WaterSense label and include a bathroom faucet, faucet accessory, high-efficiency toilet or urinal, showerhead, or weather- or sensor-based irrigation controller. The Revenue Estimating Conference projected a total local impact of $1.3 million with less than $1 million to county revenues statewide. FAC waived in support of the bill. The bill passed unanimously and heads to Senate Finance and Tax. The Senate Companion, SB 356 - Sales Tax Holiday for ENERGY STAR & WaterSense Product by Sen. Jones passed last week and moved to its final Committee, Appropriations.

Critical Workforce Tax Exemption on the Move in Both Chambers

HB 1- Additional Homestead Property Tax Exemption for Specified Critical Public Services Workforce by Rep. Tomkow passed unanimously (18-0) in H Local Administration and Veterans Affairs on Monday. Its linked bill, HB 1563, similarly passed (18-0) in Local Administration and Veterans Affairs on Monday. A committee substitute for the Senate companion, SB 1746 and its linked bill, SB 1748, by Sen. Brodeur, both passed unanimously (7-0) in S Finance and Tax on Thursday. HB 1 and SB 1746, through joint resolution, propose an amendment to the State Constitution authorizing the legislature to grant an additional homestead property tax exemption on $50,000 of the assessed value of homestead property owned by the following “critical” members of the public service workforce:

• Classroom Teachers
• Law Enforcement Officers
• Correctional Officers
• Firefighters
• Child Welfare Services Professionals
• Active-Duty Military
• Members of the Florida National Guard

HB 1563 and SB 1748 provide the conditions and process by which these qualified workforce members may receive the additional homestead property tax exemption, as well as actions a property appraiser may take in response to an improper claim of exemption. The Senate adopted a committee substitute for SB 1748 to match the House version and provide for a distribution to eligible “fiscally-constrained” counties to offset the impacts the two measures would have on their tax revenues. The distribution begins in 2023-24.



FAC’s Deputy Director of Public Policy, Bob McKee, spoke in opposition in both chambers this week, expressing concern over the shifting tax burden (to renters and non-qualified professional groups) and the burgeoning bureaucracy needed to process claims of exemption.

General Revenue and Financial Outlook



Recent General Revenue collections are significantly overperforming previous estimates. Per the latest Financial Outlook Statement (1/24/2022) from the Office of Economic and Demographic Research (EDR), the General Revenue Fund will receive an estimated $41.2 billion in revenue for FY 2021-22, in addition to $13.8 billion in carry-over funds from last FY’s general revenue surplus—$54.3 billion in total available funds. This represents a $3.3B increase from the previous forecast and a 10.8% growth rate from FY 2020-21 revenues.

Driving this short-run revenue boom has been a host of external variables: rising consumer prices and the remaining purchasing power impacts of recent stimulus programs have led to robust sales tax revenues of late. Meanwhile, an active housing market has led to swelling documentary stamp revenues from mortgage executions and property transfers. 

Looking ahead, the Revenue Estimating Conference cautioned these collection figures could be short-lived—as the flow of federal dollars slows and people impose personal budget constraints to meet rising costs. The Conference’s updated forecast expects the collection figures to have a moderate negative growth rate, -2.9%, in FY2022-23 over FY2021-22, before stabilizing and climbing again in FY2023-24. At FY 2021-22 appropriations levels, there is an expected carry-over of $11.3 billion into the coming fiscal year.

This $11.3 billion, coupled with an estimated $39.2 billion in collected revenue, gives the legislature approximately $50.5 billion in available General Revenue funds for FY2022-23. Early appropriations estimates range from $37.0 billion from the General Revenue Fund (per the Governor’s recommended budget) to $39.2 billion in the initial House Appropriations package and $41.7 billion in the Senate, though these figures are subject to change.