DEBORAH E. LAWSON & R. BRUCE KERSHNER

ICPC LOBBYISTS March 10, 2017

Contents Ready to Fight ........................................................................................................................................................................................ 2

Corcoran and Negron Set Priorities ................................................................................................................................................... 2

Speaker Batting 1000 ......................................................................................................................................................................... 2

House and Senate Agree on Budget Rules ......................................................................................................................................... 2

Legislative Office Visits ........................................................................................................................................................................... 3

Bills & Issues of Interest .......................................................................................................................................................................... 3

CONSTRUCTION LIENS – A WEEK OF GOOD NEWS! .......................................................................................................................... 3

The Corcoran Lien Law Initiative ................................................................................................................................................... 3

Notice of Termination Bills Dead for This Year .............................................................................................................................. 3

WORKERS’ COMPENSATION .............................................................................................................................................................. 3

STATUTE OF REPOSE .......................................................................................................................................................................... 4

FLORIDA BUILDING CODE .................................................................................................................................................................. 4

Florida Building Commission Adoption Procedures ...................................................................................................................... 4

The Other Code Bill ........................................................................................................................................................................ 5

APPRENTICESHIP & HIGH SCHOOL GRADUATION REQUIREMENTS .................................................................................................. 5

WATER REMEDIATION AND ASSIGNMENT OF BENEFITS (AOB) ........................................................................................................ 5

OPEN COMPETITION .......................................................................................................................................................................... 6

TEXTING WHILE DRIVING ................................................................................................................................................................... 6

SMALL BUSINESS PARTICIPATION IN STATE CONTRACTING .............................................................................................................. 6

NACM ICPC Legislative Report March 10, 2017 P a g e | 2

Ready to Fight Governor Rick Scott and Speaker of the House Richard Corcoran did not mince words on the first day of the 2017

Legislative Session as their war of words continued over the fate of two state agencies. Much of Governor Scott's

address centered on economic development—namely all the tax incentives the state offers to companies so that they

will relocate to Florida and create high-paying jobs. Those comments were directly aimed at Speaker Corcoran and

the House members who are following the Speaker’s quest to abolish Enterprise Florida and Visit Florida. In his

opening remarks the Speaker vowed to continue to fight for the taxpayers…even if that means taking the battle to the

committee or court rooms. He is more than willing to take on the establishment in order to rein in big government’s

wasteful spending.

Corcoran and Negron Set Priorities Senate President Negron’s top priority in 2017 will be promoting the state’s higher education system to the tune of $1

billion for Florida’s 12 public universities and scholarships for college students. Another one of President Negron’s

priorities is to reduce the flow of polluted water out of Lake Okeechobee into nearby waterways. He supports a

potential $2.4 billion state and federal project to buy sugar land for water storage south of the lake.

On the other side of the rotunda, House Speaker Corcoran wants a total overhaul of the lobbying industry and how

lobbyists and legislators interact. The cornerstone of his plan to “drain the swamp” in Tallahassee is a six-year ban on

former legislators lobbying both the legislative and executive branches of state government. His goal is to make

Florida the most transparent, accountable and ethical government in the country. Beyond cracking down on lobbying-

legislator relationships, Speaker Corcoran will also promote school choice and a universal voucher system.

Speaker Batting 1000 House Speaker Richard Corcoran has been on the job just over a hundred days and already has several notches in his

belt. His most recent victory came this week when Leon County Circuit Court Judge Karen Gievers said that the Lottery

Secretary “lacked the legal authority to enter into a multi-year contract” when he obligated the state to nearly $13

million more than the Legislature authorized. The judge agreed with House lawyers that state law prohibits an agency

from both soliciting and signing a contract that exceeds the amount of money authorized by the Legislature and

declared the contract void and unenforceable.

This is the second victory for Speaker Corcoran, who sued the Florida Lottery after his budget staff discovered it had

signed the agreement in what appeared to be an attempt to get around the Legislature’s refusal to authorize the state

to lease more full-service vending machines.

In December, Corcoran sued the production company of rapper Pitbull when Visit Florida, another one of the

governor’s agencies, refused to disclose its $1 million contract. The suit was withdrawn when the agency agreed to

make the deal public. Don’t think for a moment that the Speaker is satisfied with these early victories. His next

targets are the foundations of Florida's 12 public universities. He challenges the foundations to justify their worldwide

travel, lavish salaries and use of public money to attract private donations.

House and Senate Agree on Budget Rules House and Senate leaders have reached an agreement on joint rules that will guide the addition of projects to the

annual state budget. The lack of an agreement had raised the threat of a budget deadlock. The two chambers may

have agreed on the rules but they remain far apart on how large the state budget should be. It could still be a long hot

summer in our state Capitol.

NACM ICPC Legislative Report March 10, 2017 P a g e | 3

Legislative Office Visits We continue to work hard in getting our message out to members of the legislature on the importance of preserving

and defending the lien rights of subcontractors and material suppliers.

This week we met with the following:

Visited with Representative Ahern’s Legislative Assistant. We will follow up next week with a meeting with the representative.

Visited with Representative Toledo’s Legislative Assistant as a follow up to Lori and Wade’s meeting in the district with the representative.

Met with Senator Powell’s Legislative Assistant regarding withdrawing SB 734 (notice of termination). The House companion has already been withdrawn, and Senator Powell intends to withdraw his bill from further consideration as well.

Met with Representative Jayer Williamson and had an excellent discussion on Florida’s lien law and the Speaker’s desires. The representative is third generation electrical contractor from Florida Panhandle who the ICPC supported in the 2016 elections.

Bills & Issues of Interest The deadline for all bills to be filed was noon on the first day of Session. That means over the last week, the remainder

of general bills for this year came into the system; and, those of importance have been added to our bill tracking.

CONSTRUCTION LIENS – A WEEK OF GOOD NEWS!

The Corcoran Lien Law Initiative

No issues from the Speaker’s office this week. He has his hands full certainly, but we are on “full alert” and will let

ICPC members know immediately if we see any movement with respect to residential lien rights.

Notice of Termination Bills Dead for This Year

HB 685 by Leek; SB 734 by Powell

These bills were filed on behalf of the Florida Bar Real Property Probate and Trust Law (RPPTL) Section in an effort to

create a pathway for termination and recommencement without ceasing construction. We expressed our strong

opposition to the bills as filed to both the sponsors, staff in the House and Senate and lobbyists for the Florida Bar

RPPTL Section.

STATUS: As a direct result of the issues we raised, the bills are being withdrawn from consideration for this year. HB

685 was withdrawn from consideration on Friday before the start of Session, and Senator Powell’s office has

confirmed that the Senate bill will also be withdrawn.

WORKERS’ COMPENSATION PCB IBS 17-01

SB 1582 by Bradley

HB 1107 by Albritton; SB 1008 by Perry (Public Records Exemption for Injured or Deceased Employees)

Two Florida Supreme Court decisions made in 2016 have unraveled major parts of Florida’s 2003 Work Comp reforms.

The decision receiving the most focus by the business community is the decision which declared the cap on attorney’s

fees unconstitutional finding that it restricted workers’ access to attorney representation. A proposal to incorporate

numerous changes to the workers’ comp system and address attorney’s fees from a different angle has been put forth

NACM ICPC Legislative Report March 10, 2017 P a g e | 4 by Task Force that includes members of the Construction Coalition, FUBA, NFIB, AIF and Florida Chamber. Another

proposal has been put forth by the Florida Justice Association (trial attorneys). Pieces of both proposals are

encapsulated in a proposed committee bill by the House Insurance & Banking Subcommittee. Also of importance are

public records bills which would protect records of employee injury and death from exposure to the public and

attorneys who prey on injured workers and their families.

The Bradley bill came into the process this past week and had been anticipated. It makes sweeping changes to the

current workers’ comp laws including opening the door for a change regarding the use of NCCI as the state’s rating

organization. It required carriers to implement cost containing measures, report on those measures and return

excesses to policyholders. It attempts to address the attorneys fee issue by providing guidance to the courts on what

factors can be considered in awarding fees. A claim for permanent benefits must include the specific date of

maximum medical improvement and the specific date that such permanent benefits are claimed to begin. There is no

House companion, and the bill has not yet received committee references.

STATUS: The House PCB was workshopped this past week in the House Insurance & Banking Subcommittee.

Testimony was taken, but no vote. The PCB will be up again this coming Tuesday where we expect a vote will be

taken. A proposed committee substitute for HB 1107, regarding the exemption from public records, will also be heard.

No workers’ comp issues are currently scheduled to be taken up in the Senate.

STATUTE OF REPOSE HB 377 by Leek; SB 204 by Passidomo

This initiative is led by ABC in an effort to improve the statute dealing with lawsuits for latent defects. The bills were

filed in the same form as last year’s bills. However, HB 377 was amended in its first committee to begin the four years

to bring suit from completion of the contract defined as the latter of the date of final performance of all the

contracted services or the date that final payment for such services becomes due without regard to the date final

payment is made. This change would apply to causes of action that accrue on or after July 1, 2017.

STATUS: HB 377 was heard for the first time on February 16 in the Civil Justice & Claims Committee and received a

unanimous vote as amended. The Senate bill will be heard for the first time on Tuesday, March 14, and we expect it to

be amended to match the House bill.

FLORIDA BUILDING CODE There will be several bills dealing with the Florida Building Code and Code officials this year. The two we will be most

focused on are as follows:

Florida Building Commission Adoption Procedures

HB 901 by McClain; SB 7000 by Lee

These bills would change the procedure utilized by the Florida Building Commission to revise the code. Proponents

are the Florida Home Builders Association, Florida Roofing & Sheet Metal Association and Florida Roof Deck

Association. Opponents of these changes include the Building Officials Association of Florida and some property

insurers who say reversing the process has the potential to weaken the Florida Code.

STATUS: HB 901 has now received committee referrals but has not been agendaed. SB 7000 will be heard for the

second time on Wednesday, March 15 in the General Government Appropriations Subcommittee.

NACM ICPC Legislative Report March 10, 2017 P a g e | 5 The Other Code Bill

HB 1021 by Avila; SB 1312 by Perry

In an effort to keep the Florida Home Builders Association’s priority bill above from getting caught up in the annual

cluster that typically surrounds code bills, these bills will be the “everything and the kitchen sink” code bills this year.

The bills are not currently identical as filed but include issues such as certification of solar energy systems (similar to

HB 567 by McClain), allocation of $150,000 from the Building Surcharge Fund to continue the work of the Construction

Industry Workforce Task Force for fiscal year 2017-2018, prohibiting a local enforcement agency from charging

additional fees for pulling a permit if proof of licensure and workers’ compensation coverage is provided and recorded,

prohibits requiring a permit to paint a dwelling and provides for a study to include moving apprenticeship program

oversight from the Department of Education to the Department of Economic Opportunity.

STATUS: The Senate bill is still awaiting committee references. The House bill has not yet been heard or agendaed.

APPRENTICESHIP & HIGH SCHOOL GRADUATION REQUIREMENTS HB 407 by Massullo; SB 584 by Montford (Alternative Pathway to Graduation)

HB 525 by Silver; SB 978 by Powell and Silvers (Apprenticeship path to High School Graduation)

HB 517 by Jaquet; SB 1738 by Powell (Establishes advisory committee to report to DOE)

SB 1290 by Hutson (CAPE Pathways)

In addition to the Workforce Task Force funded in the Code bills discussed above, numerous bills have been filed. The

bills are attempting to incorporate a more aggressive path to workforce education, which will give high school

students an additional pathway to graduation through apprenticeship, or to create certification programs or degrees

that will provide students with the means to transition from high school to meaningful employment.

STATUS: SB 1738 came into the system this past week, but none of the bills are currently agendaed. It’s too early to

tell which concept(s) may get traction with the Legislature this year.

WATER REMEDIATION AND ASSIGNMENT OF BENEFITS (AOB) SB 1150 by Artilles; SB 1218 by Farmer (licensure of remediators)

HB 1421 by Grant, J. & Plasencia; SB 1038 by Hukill (AOB)

SB 1412 by Broxson (prohibitions on licensees)

The fight over fraud through the assignment of benefits will continue this year with the state’s Citizen’s Property

Insurance Co. weighing in heavily warning that rates will skyrocket if AOB is not reigned in. The Grant and Hukill bills

would place a myriad of restrictions and conditions on the assignment of benefits which would make the entire

process unworkable and unattractive for most businesses and individuals. The House bill was just recently filed and

has already been agendaed.

SB 1150 and SB 1218 both attempt to address the issue through the licensure of “professional water damage

restorers” by the Department of Business & Professional Regulation.

Newly filed SB 1412 has no House companion. It would impose penalties on any state licensee for giving or taking a

referral fee for work involving insurance proceeds, prohibits activities that would be considered those of an insurance

adjuster and requires good faith estimates to be given.

NACM ICPC Legislative Report March 10, 2017 P a g e | 6 STATUS: HB 1421 by Grant will be heard this coming Tuesday in the House Insurance & Banking Subcommittee. With

this contentious issue as well as workers’ compensation on the agenda, the committee has a five-hour meeting

scheduled. None of the Senate bills have been heard or agendaed.

OPEN COMPETITION HB 599 By Williamson and Santiago; SB 534 by Perry

These bills are a priority for the commercial contracting industry (ABC and AGC) and are similar to bills filed in prior

years. They seek to prohibit local government entities from placing various workforce and benefit requirements on

contractors in order for them to bid on projects. DOT projects are excluded.

STATUS: SB 534 was heard on March 6, and HB 599 was heard on March 8. Both bills were amended to require 50%

or more of the project to be funded with state funds in order for the prohibition on local regulations to apply. The bills

both passed committees over the objections of labor unions and local government lobbyists.

TEXTING WHILE DRIVING HB 47 by Stark and Slosberg; SB 1742 by Rodriguez (School Zones)

HB 69 by Slosberg; SB 144 by Garcia (Age 18 or younger)

The ICPC continues to support increased penalties for texting while driving and is a member of the DNT TXT + DRIVE

Coalition. The concept of increasing penalties for all texting continues to have opposition in the legislature; therefore,

bills filed to date are an attempt to whittle away at the issue. HB 47 would make texting while driving a primary

offense if it is done in a school zone, while the other two bills above make it a primary offense if you are 18 years of

age or younger. The newly filed Rodriquez bill also requires each law enforcement agency in this state to adopt

policies to prohibit the practice of racial profiling in the enforcement of the law.

STATUS: SB 144 by Garcia was heard during the first week of Session and passed the committee with an amendment

to prohibit texting by all persons and make it a primary offense. The problem with these bills is historically in the

House where they never get heard; and unfortunately, we expect the same this year.

SMALL BUSINESS PARTICIPATION IN STATE CONTRACTING SB 560 by Campbell; no house companion

This is identical to bills filed for the last several years which we have actively opposed. The legislation would

“unbundle” state construction contracts – breaking them into smaller contracts that can be performed by small

business entities, would raise the threshold for projects that would not be required to be bonded to $500,000, and

mandates a 35% small business participation requirement.

STATUS: No House companion was filed this year making this a dead issue for Session. We will remove it from the

report and add it to our list of issues already dead for this Session.

For copies of bills, staff analyses, or other tracking information, access www.myflhouse.gov.

For additional information please contact us at Lawson.deborah.e@gmail.com or

rbkershner@att.net.