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Politics

Chamber, AIF Upbeat about Session's Outcome

March 1, 2012 - 6:00pm

Florida's two biggest business lobbying groups have been mostly satisfied with the ongoing legislative session, even as a number of big ticket items have yet to be resolved and one was on the losing side of the high-profile -- and ultimately unsuccessful --attempt to bring three large casinos to South Florida.

The agendas for both the Florida Chamber of Commerce and Associated Industries of Florida place both business-friendly organizations on track for another successful session.

Both organizations are optimistic that legislators will be able to reform personal injury protection auto insurance and workers compensation costs, and reform Citizens Property Insurance to reduce the states exposure in the Florida Hurricane Catastrophe Fund by the end of next week, while hammering out a budget that is on target to reduce fees, regulations and redirect higher education to produce more science, technology, engineering and math students.

Still, the Chamber is most likely to be seen as the bigger winner when sine die -- signifying the adjournment of the session -- is finally called next week because of its successful opposition to the expansion of gambling in Florida.

Chamber vice president of public affairs, Edie Ousley, gave a rosy outlook to the session when asked how the business groups scorecard is shaping up.

Several Florida Chamber-backed bills have already been signed into law by Governor Scott. We successfully helped close the books on this sessions distracting mega-casino debate, and lawmakers remain focused on addressing very important issues to Floridas business community, Ousley wrote in an email.

While the clock is winding down on the 2012 session, there is still much time left to tackle important unemployment compensation reform and auto insurance reform legislation.

Meanwhile, Jose Gonzalez, vice president of governmental affairs for Associated Industries of Florida, remains confident that legislators will complete the AIF-supported efforts to reform personal injury protection auto insurance and workers compensation costs, adding that failure of the Legislature to reform Citizens and reduce the Hurricane Catastrophe Fund would be a bigger defeat than the demise of the destination gaming bill.

If this Legislature does nothing on the property insurance issue with the Cat Fund, were going to be heading into another year, a seventh hurricane season, where we havent addressed the reality that we need to restructure our insurance, Gonzalez said.

A Senate insurance committee has reported that a repeat of the 2004-05 hurricane seasons would cost the state-backed Citizens Property Insurance $7.6 billion in claims, while the insurer has $6 billion in reserves.

Legislators viewed the session so far as being good for business organizations, but in smaller terms than in 2011 when bigger issues were pushed, from a Medicaid overhaul to pension and immigration reform.

Also, legislators say the business groups, as with everyone else, went into 2012 knowing that redistricting would take up a large chunk of the session that was also facing a $1.4 billion shortfall in the budget.

This year has been much more member-built, said Rep. James Grant, R-Tampa. I think youve seen much more small initiatives that do much more for small business, which I think is a good thing.

Minority Leader Rep. Ron Saunders, D-Key West, said last year the business groups may not have been on an even keel with Scott, as they were trying to feel each other out as the governor headed into his first session.

I think its worked out, I havent seen them lose too many issues, Saunders said.

Last year might have been better, but thats only because they got more stuff that they wanted.

One area of success already reached: Both organizations were behind efforts to get the Legislature and Scott to ask Environmental Protection Agency Administrator Lisa Jackson to approve, in their entirety, the Florida Department of Environmental Protections water-quality standards.

While a reply from Jackson has yet to be announced, a state study has estimated that the state proposal would cost utility customers and affected companies between $51 million and $150 million a year, while placing the proposed federal regulations between $298 million and $4.7 billion. And while the EPA's own estimate for cost of its regulation is vastly lower than state projection, the numbers still significantly top the state's: between $135 million to $206 million a year.

However, the business groups have not been as successful in convincing lawmakers on e-fairness, an effort to require the state to collect sales taxes on purchases made by Floridians from companies outside the state. Legislators have been unable to justify the proposal, saying it could be seen by consumers as a new tax when making an online purchase.

Nor have they succeeded to convince senators that SB 688, a bill that seeks to cap what physicians can charge workers' comp patients, is touting accurate numbers, will save the state the money it says it will, or serve to get injured employees back to work more quickly.

AIF SESSION PRIORITIES:

Workers' compensation drug repackaging

AIF will continue to advocate for legislation that will close the statutory loophole that some physicians use to charge exorbitantly high rates when they dispense repackaged drugs to injured workers.

Online travel company taxes

AIF opposes any legislation that seeks to permanently provide online travel companies with an unfair tax advantage.

Internet sales taxes

Regarding e-fairness, AIF supports efforts to enforce the fair collection of state sales tax. Common-sense updates can and should be made to Floridas tax system to level the playing field for all retailers selling goods in Florida.

Destination resorts

AIF supports and will aggressively advocate for legislation that will bring premier development companies to Florida to build world-class destination resorts resulting in direct and indirect economic benefits to Florida and Florida businesses.

Auto insurance

AIF supports legislation to reduce Personal Injury Protection (PIP) claims costs.

Bad faith reform

In an effort to better protect Florida businesses, AIF supports legislation establishing a 60-day time frame during which an insurer may investigate and, if warranted, offer policy limits to settle a liability claim.

CHAMBER'S SESSION PRIORITIES:

Talent supply and education

Preparing students to compete in Floridas global marketplace.

Innovation and economic development

Further diversify Floridas economy.

Infrastructure and growth leadership

Better planning and smarter growth.

Business climate and competitiveness

Positioning Florida to become one of the most competitive business climates in the global marketplace.

Civic and government systems

Streamlining government systems.

Quality of life and quality places

Maintaining Floridas high quality of life.

Talent supply, education

Advocating for expanded use of technology in the classroom to support Floridas transition into the new economy.

Maintaining Floridas status as a national leader in producing a talented work force through high-value programs like the Quick Response Training program.

Promoting more flexibility, efficiency and performance in higher education and increasing the number of STEM baccalaureate degrees.

Enhancing parental choice in education.

Innovation, economic development

Further transforming Floridas economy through the trade, logistics, manufacturing, aerospace and related industries.

Continuing to pursue research and development activities to build on Floridas economic diversification and burgeoning innovation brand.

Strengthening Floridas manufacturing base by making Florida more competitive by providing targeted and timely incentives.

Investing in intermodal connections and viable inland ports in order to achieve the goal of doubling Florida-origin exports and increased manufacturing activity.

Infrastructure

Eliminating regulatory roadblocks and incentivizing governments to turn to the private sector to speed up shovel-ready transportation projects.

Stopping the federal Environmental Protection Agencys Florida-only numeric nutrient criteria rulemaking (a Florida-specific water mandate).

Supporting the creation of science-based water-quality standards to protect Floridas natural resources.

Advocating for a comprehensive energy policy that increases energy independence and promotes sustainable economic growth.

Business climate, competitiveness

Reforming Floridas no-fault auto insurance system (PIP) to cut down on fraud and abuse a billion-dollar problem that raises the cost of living for Floridians.

Stabilizing and lowering unemployment compensation tax increases for Floridas job creators.

Ensuring workers compensation premiums are fair and not inflated with unnecessary costs by closing the loophole on drug repackaging contracts that are inflating the price of medication and responsible for nearly one-third of the 8.9 percent increase, costing Florida employers an additional $100 million annually.

Ensuring the taxpayer subsidized Citizens Property Insurance Corp. becomes the insurer of last resort, not first resort.

Civic and government systems

Closing the Internet sales tax loophole and supporting e-fairness for Florida based retailers.

Removing duplicative, outdated, obsolete rules, permitting processes and statutes.

Streamlining the permitting process to limit excessive costs on employers and encourage efficiency for business development and job creation.

Supporting a one-stop shop venue that provides existing and new businesses with permitting, licensing and regulatory assistance.

Supporting 401(k)-style defined contribution retirement programs for new government employees.

Quality of life

Supporting medical/legal reform efforts aimed at stabilizing health care costs.

Protecting Floridas future by maintaining our longstanding opposition to the expansion of casino gambling in Florida.

Addressing issues surrounding the talent gap of medical students educated in Florida leaving the state for their residency program and not returning to practice medicine in Florida.

Reach Jim Turner at jturner@sunshinestatenews.com or at (772) 215-9889.

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