Capitol Update – March 26, 2021 | Buchanan Government Relations

Budget Update

Appropriations subcommittees released their respective, initial spending plans this week beginning the budget process that will cumulate in passage of the 2021-22 Fiscal Year State Budget. The chairs’ proposals will likely be taken up Wednesday and Thursday of next week by both the House and Senate full budget committees, before being debated and passed by each chamber. After passage, the budget conference process is expected to begin the second to last week or last week of Session, to negotiate the differences between the Senate and House proposals.

Even though Florida is expected to receive $17 billion from the American Rescue Plan Act, the Legislature must base their budget on expected revenues from the Revenue Estimating Conference, which has forecasted a $2.7 billion deficit. However, because of the better than expected economic rebound, numbers are expected to improve before lawmakers finalize their budget in April which could ease cuts. The subcommittee budget released this week contain significant reductions over current year funding. Below are some highlights of the proposals.

Legislative Leadership has come to an agreement for the funding of sewage treatment projects and so called resiliency efforts to address rising sea levels and flooding resulting from climate change. Budget proposals shift two-thirds of money designed for affordable housing programs to address the effects of sea-level rise. The money was directed towards affordable-housing programs known as the Sadowski Trust Fund. The change would sweep money from the trust fund to spend on the climate change related resiliency projects, leaving the Sadowski TF with $149 million for affordable housing, again reducing the fund by a third.

Both the Senate and House Healthcare Budget Committees recommend reductions in Medicaid payments for inpatient and outpatient hospital care; $226 million in the House and $251 million in the Senate. In addition, they both reduce Medicaid payments to hospitals for charity care known as the “critical care fund” by $266 million in the House and $77 million in the Senate.

Florida has seen a sharp increase in Medicaid enrollees as a result of the pandemic. Florida’s Medicaid population has increased 16.5% with 4.4 million being covered by the program, the state rolls are growing by about 2,000 new enrollees a day. State economist project an enrollment increase of 3.3% for FY 2021-22, estimated to cost over $32.5 billion in state and federal dollars.

Higher education funding has taken a hit in initial budget proposals as well. For private, non-profit colleges and universities, the House has proposed a $36 million reduction to the grant program known as the Effective Access for Student Education (EASE) by requiring graduation/job placement rates and other criteria to qualify for the state subsidy. However, the Senate has increased the EASE grant from $2,800 to $3,500 per student for the upcoming year with no qualifiers added.

State universities are facing hundreds of millions in reductions over current year funding. The House has come in at $4.6 billion for state universities compared to the Senate at $4.9 billion. Current year funding is roughly $5.2 billion.

The Senate Agriculture Appropriations Subcommittee on Wednesday released a $6.1 billion budget that includes $786 million for Everglades restoration and water projects, that is $161 million more than Governor DeSantis requested in his proposal.

The budget would fund $29 million to start a local government grant program to combat the impacts of rising sea levels and flooding.

The proposal also includes $75 million to restore the state’s natural springs, $25 million more than the current year; $70 million for water storage before it enters Lake Okeechobee and $348 million for loan programs involving drinking and wastewater. Although the Florida Forever program receives $50 million less than current year funding (which is $100 million).

Bill Action Update

Transportation
SB 138 Electric Vehicles directs the Florida Department of Transportation (FDOT) to establish the Electric Vehicle (EV) Infrastructure Grant Program to provide financial assistance to encourage the installation of publicly available electric vehicle charging infrastructure for electric vehicles, electric semi-trucks, and electric aircraft on public or private property.

Among other items, the bill authorizes state agencies, public universities, public transit agencies, ports, airports, and local governments to apply to the FDOT for grants for technical assistance for the development and adoption of local or regional plans establishing charging infrastructure and for assistance with the purchase of related equipment and costs of installation. The bill sets out required matching funds and sources and authorizes an applicant to partner with a private-sector entity to install charging infrastructure on private property in the jurisdiction of the applicant. SB 138 passed the Senate Appropriations Subcommittee on Transportation, Tourism, and Economic Development Committee with more stop remaining.

SB 140 Fees/Electric Vehicles imposes flat fees by weight, in addition to existing license taxes, for electric vehicles beginning July 1, 2021, and increasing January 1, 2025. The bill likewise imposes an additional flat fee for plug-in hybrid electric vehicles, which also increases on January 1, 2025. The bill authorizes any person or entity registering an electric or plug-in hybrid electric vehicle to renew the registration biennially in accordance with current law.

These fees are contingent upon passage of a linked bill, SB 138, which in part creates the Electric Vehicle Infrastructure Grant Program within the Florida Department of Transportation (FDOT) to provide financial assistance to encourage the installation of publicly-available electric vehicle charging infrastructure on public or private property. That bill requires 64 percent of the additional flat fees imposed to be deposited into the State Transportation Trust Fund (STTF) to be used to fund the grant program.

The other 36 percent of the additional flat fee must be allocated to the county where the vehicle is registered. Until June 30, 2024, the county must use the fees to provide publically available electrical vehicle charging infrastructure and related equipment. Beginning July 1, 2024, allocation must be distributed by the Department of Revenue to the county and the municipalities within the county proportionate to the distributions of local option fuel taxes. These funds must be used for transportation expenditures, the same as the current uses for the local option fuel taxes. SB 140 goes into effect only if Sb 138 or similar legislation is passed. SB 140 Passed the Senate Appropriations Subcommittee on Transportation, Tourism, and Economic Development Committee with more stop remaining.

HB 1049 Use of Drones by a Government Agency expands the exceptions to the prohibition on drone surveillance to permit the use of a drone:

To provide a law enforcement agency with an aerial perspective of a crowd of 50 people or more, but only if: The law enforcement agency establishes policies and procedures, including guidelines:
For the agency’s use of a drone;
For the proper storage, retention, and release of images or video captured by the drone; and
Addressing the personal safety and constitutional protections of the people being observed.
To assist a law enforcement agency with traffic management, except that a drone may not be used to issue a traffic infraction citation based on images or video captured by the drone.
To facilitate a law enforcement agency’s collection of evidence at a crime scene or traffic crash scene.
By a state agency or political subdivision: To assess damage due to a flood, wildfire, or natural disaster; or for vegetation or wildlife management on publicly owned land or water.
By certified fire department personnel to perform tasks within the scope and practice of their certification.

The bill also requires any governmental agency authorized to use a drone to take specified protective measures to secure the data collected by the drone and to ensure that any information gathered in the operation and management of the drone, including all associated software, hardware, and data, remains within the borders of the United States. HB 1049 passed the House Criminal Justice & Public Safety Subcommittee with two more stops remaining.

SB 1620 Autonomous Vehicles defines the term “low-speed autonomous delivery vehicle” as a fully autonomous vehicle that meets the current federal definition. The bill authorizes such vehicles to operate only on streets or roads where the posted speed limit is 35 miles per hour or less but are not prohibited from crossing a road or street at an intersection where the road or street has a posted speed limit of more than 35 miles per hour. A low-speed autonomous delivery vehicle may operate on a street or road with a posted speed limit of more than 35 miles per hour, but no more than 45 miles per hour, under certain conditions.

The bill sets out equipment requirements for such vehicles and provides that the new provisions are superseded by any conflicting federal regulations. The bill also establishes insurance coverage requirements for such vehicles. The provisions of any motor vehicle equipment laws or regulations of this state, relating to or supporting motor vehicle operation by a human driver but not relevant for an automated driving system, are rendered inapplicable to fully autonomous vehicles designed to be operated exclusively by the automated driving system for all trips. SB 1620 passed Senate Community Affairs and has one more committee stop.

Higher Education
HB 5601 Higher Education conforms applicable statutes to the appropriations provided in the House proposed General Appropriations Act for fiscal year 2021-22. The bill:

Specifies that all funds appropriated for Preeminent State Research Universities must be distributed equally;
Eliminates the State University Professional and Graduate Degree Excellence Program; · Provides minimum performance standards for institutions to be eligible to participate in the Effective Access to Student Education tuition assistance program;
Eliminates the Access to Better Learning and Education tuition assistance program; Expands the existing faculty salary cap from state university administrative employees to include all university faculty, excluding those in specified high-demand fields; and
Creates the Florida Integrated Library System to provide funding for critical library services, a distance learning catalog, and transient student applications.

HB 5601 Higher Education Appropriations Subcommittee passed the House and is available for floor action.

Regulatory
HB 833 Unlawful Use of DNA creates the “Protecting DNA Privacy Act.” The bill changes the level of consent currently required for a lawful analysis of a person’s DNA and disclosure of the results of such analysis by requiring his or her express consent, which means authorization from a person or his or legal guardian or representative, evidenced by an affirmative act demonstrating his or her intentional decision, after receiving a clear and prominent disclosure regarding the specified purpose for the collection, use, retention, maintenance, or disclosure of the DNA sample or analysis thereof. The bill also requires express consent for collecting, retaining, or submitting for analysis another person’s DNA. HB 833 passed the House Judiciary Committee and is available for floor action.

HB 969 Consumer Data Privacy adds “biometric data” to the definition of “personal information” in FIPA. Thus, entities in possession of fingerprints, DNA, and other biological or physiological identifying information must take reasonable measures to protect the biometric data and report data breaches.

Due to the growth in the internet and specifically the growth in companies whose entire business model is the collection of personal information for the purpose of selling targeted advertising, many countries and states have adopted or updated their laws relating to the collection and use of personal information. Specifically, the European Union, and states like California, Virginia and Illinois, have enacted data privacy regulations to protect personal information and give consumers more control over how their information is used. The bill requires certain businesses to publish a privacy policy for personal information.

The bill defines “personal information” as information that identifies, relates to, or describes a particular consumer or household, or is reasonably capable of being directly or indirectly associated or linked with, a particular consumer or household. The term does not include public information that is readily available to the public from government records or deidentified or aggregate consumer information. The bill gives consumers certain rights related to personal information collected by a business, including:

The right to access personal information collected,
The right to delete or correct personal information, and
The right to opt-out of the sale or sharing of personal information. The bill requires businesses to comply with certain consumer requests and make certain information available on the business’s website.

The bill allows the Department of Legal Affairs to bring an action against, and collect civil penalties from, a business who violates these requirements. Consumers whose personal information has been breached, sold, or shared after opting-out, or retained after a request to delete or correct may also bring a cause of action against the business in certain limited circumstances. HB 969 passed the House Civil Justice & Property Rights Subcommittee and has one more committee stop.

HB 7019 Statewide Flooding and Sea Level Rise Resilience creates the Resilient Florida Grant Program, which authorizes the Department of Environmental Protection (DEP) to provide grants to local governments to fund the costs for community resilience planning to prepare for threats from flooding and sea level rise. The bill requires vulnerability assessments funded by the grant program to include an analysis of the vulnerability of and risks to critical assets owned or managed by the local government.

By July 1, 2022, the bill requires DEP to complete the development of a comprehensive flood vulnerability and sea level rise data set. By July 1, 2023, the bill requires DEP to use the data set to complete a comprehensive statewide flood vulnerability and sea level rise assessment that identifies inland and coastal infrastructure, geographic areas, and communities that are vulnerable to flooding and sea level rise and the associated risks.

Beginning December 1, 2021, the bill requires DEP to annually develop a three-year Statewide Flooding and Sea Level Rise Resilience Plan and submit it to the Governor and the Legislature. The plan must consist of ranked projects that address risks of flooding and sea level rise to coastal and inland communities. DEP must implement a scoring system for assessing each project submitted for inclusion in the plan, and each project must have a minimum 50 percent cost-share, with certain exceptions.

The bill authorizes DEP to provide funding for certain purposes to regional entities whose responsibilities include planning for the resilience needs of communities and coordinating intergovernmental solutions to mitigate adverse impacts of flooding and sea level rise.

HB 7019 creates the Florida Flood Hub for Applied Research and Innovation within the University of South Florida College of Marine Science. The hub must organize existing data needs, establish community-based programs to improve flood monitoring, and develop opportunities to partner with other flood and sea level rise research and innovation leaders.

The bill requires the Office of Economic & Demographic Research to include in its annual assessment of Florida’s water resources and conservation lands an analysis of future expenditures by federal, state, regional, and local governments required to minimize the adverse economic effects of inland and coastal flooding. HB 7019 passed the House State Affairs Committee and is now available for floor action.

*Summaries provided by House and Senate bill analyses