Tallahassee – Florida House Majority Leader Lopez-Cantera (R-Miami) today issued the following statement regarding the Economic Development & Tourism Subcommittee’s passing of the Proposed Committee Bill (PCB) on Unemployment Compensation (PCB EDTS 11-01)

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By Michael C. Bender, Times/Herald Tallahassee Bureau

February 11, 2011, Tallahassee – Unemployed Floridians would work harder to earn fewer state benefits under a pair of proposals on the fast track in the Florida Legislature.

On Thursday, a divided House committee approved a bill from Republican leaders that would:

• Make it easier to fire employees.

• Put more burden on workers to prove they deserve benefits if employers appeal.

• Reduce weekly unemployment checks from the state from 26 weeks to as few as 12.

“This bill … helps ease the burden on businesses so they can start hiring again,” said Rep. Doug Holder, R-Sarasota.

The House Economic Development and Tourism subcommittee passed the bill 7-4 along party lines.

PCB EDTS 11-01 has two more committee stops but could be ready for a vote on the House floor when the annual spring lawmaking session starts March 8.

The Senate plan is similar to the House bill but includes a slight increase in the base unemployment tax rate on businesses. SB 728 is scheduled for its first vote later this month.

Unemployment benefits in Florida are paid from business taxes. The state fund, however, was wiped out in August 2009 by the historic unemployment crisis.

Lawmakers attempted to save the fund in 2009 when they increased business taxes to pay for it. But the Legislature undid those changes in its first bill of 2010.

Instead, lawmakers have taken on $2 billion in federal loans plus more than $200 million in interest.

President Barack Obama is pushing to let Florida delay about $500 million in payments for the next two years. But Gov. Rick Scott wants lawmakers to cover the federal debt obligations while cutting unemployment taxes for businesses by $630 million over two years.

Scott’s plan would also reduce state benefits to 20 weeks from 26 weeks. His plan, as well as the House and Senate bills, would limit unemployment checks to 12 weeks if the unemployment rate reaches or falls below 5 percent. It’s now at 12 percent in Florida.

Senate President Mike Haridopolos, R-Merritt Island, said he would consider Obama’s plan.

“Interest payments cripple families, cripple this state,” Haridopolos said. “We need to find a long-term solution.”

In the House committee on Thursday, nearly a dozen out-of-work residents pleaded not to reduce their benefits. The maximum benefit is $275 per week, among the lowest in the country.

But the Republican majority sided with business lobbyists who said lower taxes would make it easier to hire new workers.

“The whole system needs to be reformed,” said Senate Commerce and Tourism Chairwoman Nancy Detert, R-Venice. “And that is going to be a huge lift.”

Michael C. Bender can be reached at [email protected].

March 3, 2011,Tallahassee – Following meetings last month, Gov. Rick Scott, Attorney General Pam Bondi and Claims Czar Kenneth Feinberg have agreed on initial steps for improving the Gulf Coast Claims Facility’s (GCCF) process regarding outstanding Florida claims as a result of the Deepwater oil spill.

“Florida’s tourism, fishing and seafood industries are still feeling the impacts of last summer’s disaster almost a year later,” said Gov. Scott. “Mr. Feinberg agrees that It’s time to get to work and implement a streamlined, fair and effective way of paying these claims for Floridians.”

Last month Gov. Scott and Attorney General Bondi met separately with Feinberg and wrote letters outlining the initial steps that must be taken. Some of those steps include:

• Processing at least 25 percent of all pending claims by March 31, 2011.

• Expanding staffing in Florida to provide more localized treatment of claimants, specifically in Panama City, Pensacola, Santa Rosa, Gulf Breeze and Ft. Walton Beach.

•  In each Florida claims office, providing the names of local, independent accounting firms that are available to review and assist claimants in preparing claims documentation. The fees for these accountants will be submitted with the claimant’s GCCF submission as an expense, reimbursable by the GCCF.

•  In each Florida claims office, providing a named contact person who is part of Florida claims’ team to allow claimants to obtain additional information on the status of their claim.

•  Coordinating the claims process through one person in Florida and one person in Washington in an effort to assure responsiveness and efficiency.

•  Having GCCF accountants on site or available by appointment to answer questions for claimants about their claim determination calculations.

•  Summarizing, by general category, the reasons for claims being denied to assist with educating claimants and possibly preventing future denials.

“Hundreds of thousands of Floridians’ livelihoods have been devastated by the oil spill and compounded by a nearly halted claims process,” said Attorney General Bondi. “I look forward to working with Gov. Scott and Mr. Feinberg to ensure Floridians receive the compensation they deserve.”

Feinberg has agreed to return to Tallahassee in April to report on the progress of these steps and discuss additional improvements moving forward.

To view Gov. Scott’s letter to Fienberg from March 2, 2011, visit:

http://www.flgov.com/wp‐content/uploads/2011/03/GovScottLetter‐03.02.2011.pdf

To view Attorney General Bondi’s letter to Fienberg from Feb. 25, 2011, visit:

http://www.flgov.com/wp‐content/uploads/2011/03/bondi‐feinbergltrt.pdf

Florida’s first unemployment rate released under Gov. Rick Scott shows a slight drop in January, decreasing .1 percent to 11.9 percent for the month. During January 1,100,000 Floridians were out of work, which is down 8,000 from December. But again the state lost jobs, losing nearly 13,000 jobs during January after losing nearly 18,000 in December. The decrease in the unemployment rate, however, is the first decline since June of 2010 and comes after two consecutive months of the rate staying at 12 percent.

“While Florida’s unemployment rate is still unacceptably high, we are seeing positive signs that employers are starting to hire,” said Cynthia R. Lorenzo, director of the Agency for Workforce Innovation.

The increase coincides with the first rate released under Scott, who has touted his pro-jobs and pro-business agenda. A part of Scott’s agenda is to bring 700,000 jobs in seven years by removing business regulations and enticing companies to move to Florida.

“An increase in online advertisements for full-time jobs coupled with an increase in Florida’s consumer confidence index indicates that our business owners and families are increasingly optimistic about Florida’s economic recovery,” said Lorenzo.

The lowest unemployment rates were in Liberty and Monroe counties at 7.6 percent each. Alachua County followed at 8.6 percent and Wakulla County at 8.7 percent. The highest unemployment rate is in Flagler County at 16 percent, up .3 percent from December. Hernando County followed at 15.1 percent, while Hendry and Marion counties followed at 14.2 percent each.

March 22, 2011, Tallahassee, Fla. – Today, Governor Rick Scott named former federal prosecutor Ken Lawson as Secretary of the Florida Department of Business and Professional Regulation.  A native Floridian, Lawson has held numerous regulatory positions within the private sector and federal government.  As Secretary of DBPR, Lawson will oversee the licensing and regulation of businesses and professionals in the state of Florida.

Lawson has held several senior positions with federal law enforcement agencies prior to this appointment. As the Assistant Secretary of Enforcement for the Department of the Treasury, he oversaw a staff of over fifty attorneys and investigators and had oversight of federal law enforcement agencies responsible for protection of America’s financial system. Lawson has also served as the Assistant Chief Counsel for Field Operations at the Transportation Security Administration.  For seven years, he was an Assistant United States Attorney in the Criminal Division for the Middle District of Florida (Tampa). In addition, Lawson served as a Captain in the United States Marine Corps, Judge Advocate General’s Division.

In the private sector, he spent two years with Booz Allen Hamilton as a consultant, including a year as Chief of Party for the Financial Crimes Prevention Project in Jakarta, Indonesia, where he directed international anti-money laundering, anticorruption, and counterterrorist financing projects. Lawson most recently served as Vice-President for Compliance at nFinanSe Inc., a financial services company in Tampa. He is a graduate of Florida State University and the Florida State University College of Law.

“With his background in federal law enforcement, prosecution, and the military, Ken Lawson brings an impressive track record to DBPR,” said Governor Scott.

RESOLUTION BY THE VISIT FLORIDA^® BOARD OF DIRECTORS REGARDING THE PROPOSED GOVERNMENT REORGANIZATION

WHEREAS, the VISIT FLORIDA Board of Directors recognizes and agrees with the need for centralized, top-down, strategic attention to a comprehensive and coordinated approach to the State of Florida’s overall economic development efforts;

WHEREAS, in 2010, the statewide Florida tourism industry hosted 83 million visitors who spent $61 billion and supported 1 million jobs in Florida;

WHEREAS, VISIT FLORIDA provides access to industry engagement and expertise through a 53 member board of directors, an additional 110 members of industry councils, committees and task forces, as well as over 9,300 statewide tourism businesses;

WHEREAS, the private-sector, industry driven nature of VISIT FLORIDA is demonstrated not only by support of the cooperative marketing platforms, but more importantly by active engagement in developing these platforms and then buying into them generating $40+ million in FY 2010-11 alone;

WHEREAS, VISIT FLORIDA is a $1.1 billion destination marketing cooperative matching $350 million from a dedicated funding source of public investment by the State of Florida with $776 million of private investment by thousands of Florida tourism businesses and strategic partners since 1996;

WHEREAS, VISIT FLORIDA has strong brand equity with reach and relevance around the state, around the country and around the world supported by investment in multi-party, multi- year contractual relationships;

WHEREAS, VISIT FLORIDA has been recognized for visionary leadership as the first-ever state destination marketing organization to receive accreditation by the Destination Marketing Association International;

WHEREAS, VISIT FLORIDA has maintained an industry leadership position and momentum through best in class partnerships and practices over a 15-year history;

NOW, THEREFORE, BE IT RESOLVED that the VISIT FLORIDA Board of Directors respectfully requests:

•   VISIT FLORIDA retain its current industry-lead governance fostering broad based industry support and engagement as an autonomous public/private partnership with a dedicated funding source and a strategically aligned contractual relationship to the newly created public/private partnership.

Approved and adopted this 8th day of April, 2011 by the VISIT FLORIDA Board of Directors.

Section by Section Analysis.

An act relating to government reorganization.

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Governor Scott announced today his 2012 Job Creation and Economic Growth Agenda, his remarks are below:

“I was elected to get Floridians back to work.  Since I’ve been Governor, Florida has averaged more than 10,000 jobs a month. Florida has moved from 6th to 3rd on Chief Executive Magazine’s list of best states for business. We are definitely on the right track.

My first year in office was marked by an unprecedented number of conservative reforms focused on getting our state back to work.  Those accomplishments included $200 million in property tax reductions for Florida’s families and small businesses, the elimination of the business income tax for nearly half of the businesses that pay it, the repeal of burdensome rules and regulations, the elimination of tenure in public schools and a plan to pay effective teachers as professionals, a balanced budget and significant reductions in state government spending, the creation of more than 87,000 private sector jobs, and a declining unemployment rate in 5 of the first 8 months.

But with nearly 900,000 Floridians still out of work, being on the right track is not enough. We must take action to move along that track faster and farther. We must stay focused on making Florida the No. 1 place for business. We must stay focused on giving businesses the stability and confidence they need to create jobs.

Florida will become the nation’s leader in job creation and economic growth by consistently doing the right things month after month to create the nation’s premier environment to start, relocate or expand a business.

Unlike our elected leaders in Washington, D.C., I realize that it is our families and businesses, taking risks with their ideas, capital and time, that create jobs and grow an economy.  To that end, my 2012 Job Creation and Economic Growth Agenda will not propose new government spending or programs to “stimulate” job growth.  Instead, this plan focuses on removing the barriers to beginning, relocating and growing a business in our state.  We will attract new jobs by consistently letting businesses know through our actions that we want Florida to be their home.

With that in mind, here are my seven job creation and economic growth priorities for the upcoming legislative session:

1.   Streamlining business permitting and eliminating burdensome rules and regulations

2.   Providing tax relief and reform for Florida’s working families and businesses

3.   Reforming Florida’s unemployment system to create a reemployment system

4.   Restoring accountability and credibility to Florida’s Workforce Boards

5.   Prioritizing vital transportation projects to facilitate economic development opportunities

6.   Offering stability to Florida businesses by balancing the budget without raising taxes

7.   Prioritizing science, technology, engineering and mathematics in education

Let me run through them, one by one:

First up, Streamlining Business Permitting & Eliminating Burdensome Rules and Regulation

With the help of the Governor’s Office of Fiscal Accountability and Regulatory Reform, our state agencies have identified more than 1,000 rules for repeal.  The rules were identified by a thorough review of existing agency rules ordered I ordered on my first day in office. The repeal process has already begun, and many overly burdensome, unnecessary or duplicative regulations have been repealed.

More repeals are scheduled, with plans to expedite many of the repeals through proposed legislation in the 2012 session.  In addition, agencies identified approximately 1,500 rule revisions that can be made to reduce overly burdensome, unnecessary or duplicative regulations.  The Office of Fiscal Accountability and Regulatory Reform also receives input from the public and works with agencies to identify other possible amendments that could reduce the regulatory burden placed on Florida businesses.

Additionally, my office will work with the Government Efficiency Task Force to begin the process of establishing temporary business permits so entrepreneurs can open their doors earlier, and employ Floridians faster. Combined with a one-stop business registration effort already underway, Florida will continue to identify burdensome permits and licenses and begin to set specific time reduction targets for application and issuance processes. This plan will create an environment in Florida that will allow businesses to operate with fewer unnecessary regulations and to begin hiring faster by giving them an opportunity to open their doors faster with a reasonable period in which to achieve compliance.

Second, I want to Provide Tax Relief & Reform for Florida’s Working Families & Businesses

As businesses struggle with questions such as when and where to open, or if they should relocate or expand, their decisions largely depend on the tax structure of the locations under consideration.  One of the most important things Florida can do to attract businesses, and in turn jobs, is to create a tax environment that welcomes business growth and encourages investment in our state.

Last year, by passing an exemption for businesses that owe up to $25,000 in corporate income taxes, we were able to eliminate nearly half of all the companies obligated to pay the tax. To continue to fulfill my promise to eliminate the corporate income tax in seven years, I am further proposing to reduce the number of remaining companies required to pay this tax by twenty-five percent.  We’ll do it by increasing the corporate income tax exemption from $25,000 to $50,000.  The eventual elimination of the corporate income tax will eliminate a major barrier preventing Florida from attracting future Fortune 100, Fortune 500 and other growing companies that can get our residents back to work.

Additionally, Florida can remove another major tax burden on small business job creators by working to reduce the Tangible Personal Property Tax.  This tax, which is paid by more than 300,000 business owners, is levied on the amount of all items of value owned by a business.  For small businesses, the burden is twofold; not only do they pay the tax, but they are also forced to spend time and effort logging and tracking items just to complete the filing of the tax, which means less time spent on growing their businesses.  During the 2012 session, I will ask the legislature to place a constitutional amendment on the ballot that will completely exempt any business with less than $50,000 in tangible personal property. When the amendment is passed, it will completely eliminate this tax burden for over 150,000 businesses, representing roughly half of all the businesses that are currently required to pay the tax.

I am also proposing to increase scrutiny on those with the authority to levy taxes on Florida’s families and business owners.  Though many may not realize it, some of Florida’s greatest tax burden on families and businesses can be found among the $15.4 billion in revenue taken in by the state’s special taxing districts.  As of June 2011, 1,633 of these districts existed around the state, and as of Fiscal Year 2008-09 they owed $24.7 billion in debt.  A dedicated task force is currently examining hospital districts, which bring in around 25 percent of the total revenue to special districts—the largest budgets among all types of taxing districts. I am committed to shining a bright light on all other taxing districts, too, and this year will work to make sure that Floridians know exactly what these districts are doing and how they are spending taxpayers’ money.

To continue to attract needed new employers, I will remain focused on targeting industries that can get Floridians back to work quickly.  Manufacturing is the most important goods-producing sector in this country, making up 57 percent of the value of U.S. exports, according to the Manufacturing Institute.  An astounding 85 percent of Florida’s exports are manufactured goods, despite the sector supplying only around five percent of the state’s workforce.  New opportunities in manufacturing will be critical to Florida’s economic growth in the future.  A fundamental component of good economic growth policy is to avoid double taxation and the taxation of inputs, which Florida currently imposes in a variety of ways on its manufacturing industry.  Florida’s sales tax statutes already provide a number of exemptions for the purchase of machinery and equipment, including an exemption for new businesses.  However, I realize that not only does Florida need help from new businesses to create jobs, but our state also needs to encourage businesses already in Florida to expand.  Maximizing these incentives for new and existing businesses can make sure that Florida can become more attractive to quality manufacturing jobs in the future.

My third priority is to Reform Florida’s “Unemployment” System to Create a “Reemployment” System

The strength of Florida’s economy depends on the productivity of its workforce, and I am working to ensure that every Floridian has the opportunity to obtain a job by creating 700,000 new jobs in our state in 7 years.  Since I took office in January 2011, more than 87,200 private sector jobs have been created.  These new jobs have helped to reduce our unemployment rate by 1.3 percent, from 12.0 percent in December 2010 to 10.7 in August 2011.

My focus is on creating private-sector jobs and having a qualified workforce of citizens to fill those jobs.  Florida is averaging more than 9,000 new jobs per month; and the state needs to work on continuous improvements to programs for both job creation and for workforce development to get Floridians back to work.

Our state’s economy is changing, and the jobs that are being created are different from the jobs that were lost during the economic down turn.  The skills of the unemployed do not always match the current and future job market.  If we are serious about getting people back to work, that begins with repurposing our unemployment compensation system to become a reemployment system – rather than merely helping make ends meet for families in the short run, we are instead focused on identifying jobs and getting Floridians prepared for their next job opportunity.

I’ve already taken the first step by passing a major unemployment compensation reform package last year. The next step will be to incorporate required job training for those on unemployment so that Floridians can get back to work faster and gain the knowledge necessary to ensure that they are prepared for their next job.  Rather than continue to simply pay out benefits for those out of work, Florida must focus its efforts on ensuring that it can offer the most able workforce in the nation.  Requiring training as a part of unemployment benefits will help Florida lead the nation in creating new jobs.  This will be accomplished by creating a reemployment system that proactively works with unemployed Floridians to assess the compatibility of their skills with current and future job opportunities and provides them with the training and career education opportunities that facilitates career advancement, increased productivity, and economic prosperity.

Fourth, I am committed to Restoring Accountability and Credibility to Florida’s Workforce Boards

Florida’s workforce development system provides employment-related services to job seekers and employers through 24 locally controlled Regional Workforce Boards that receive a portion of the federal funds awarded to the state for employment-related services.  But since 2003, federal and state auditors have found that 11 of the 24 Regional Workforce Boards have made $9,273,714 in questionable or disallowable expenditures.

These questionable expenditures include lavish food and entertainment expenses that directly benefited individual staff and board members, excessive vehicle purchases, superhero capes for the unemployed, and millions to renovate buildings that are not owned by the boards.  Boards have also entered into contracts with their board members or their families and, in some cases, the board members have voted on contracts with themselves or their family members without disclosing the potential conflict of interest.  In a time when more Floridians than ever are relying on the mission of Florida’s Workforce Boards, these types of decisions are clearly unacceptable and demonstrate a lack of the internal controls needed to ensure the wise use of taxpayer dollars.  New accountability measures are critical to ensuring that the missions of these boards are realized and that Floridians are able to get back to work.

I’ve already begun this effort by working to clean up Florida’s local workforce boards and forcing board members who have been involved in self-dealing contracts to resign. Additionally, I placed the Workforce Central Florida Board on probation for a two-week period on September 21, 2011 because of the substantial evidence that money allocated to the workforce board is not being used to help people get jobs.

In order to restore credibility and accountability to Florida’s Workforce Boards, I will work with the Legislature on proposed legislation that will allow increased oversight ability of Workforce Boards by the my office, ensuring that these boards will focus on their mission of getting Floridians better prepared and back to work.  This legislation will also propose a way to bring consistency to the Boards in the way they are named, branded and advertised so that Floridians know exactly what to look for and what to expect throughout the state.

My fifth legislative initiative will be Prioritizing Vital Transportation Projects to Facilitate Economic Development Opportunities

Floridians realize that it is businesses and individuals taking risks with their own capital that create jobs, not the government spending their tax dollars.  One thing I can do by working with the Legislature and the Department of Transportation, however, is to prioritize the advancement of port, roadway and other transportation projects that make it easier for commerce to flourish.

With changes to the Panama Canal and continued investment in our ports, Florida is uniquely positioned to lead the nation in the volume and value of trade entering our ports.  In 2011, I put forward an important funding plan to widen and deepen the Port of Miami to allow the state to capitalize on the larger Post Panamax ships that will bring cargo to and from the United States.  This important project is projected to add 30,000 Florida jobs in the coming years while allowing our state to outcompete other states for the Post Panamax shipping.

Continued prioritization of our port investments as well as the development of innovative concepts like inland ports will encourage businesses to take advantage of Florida’s unique position by locating and expanding in our state.  Success in this area will mean additional jobs for our citizens.  Paired with the passage of free trade agreements with Colombia and Panama, continued investment in our ports will ensure that Florida will benefit more than any other state from expanded trade opportunities and the jobs that come with them in the future.

I remain committed to making the transportation infrastructure investments that create both direct and indirect private sector jobs and investment, wherever possible.  Working with Florida Department of Transportation Secretary Ananth Prasad, Florida can take advantage of favorable commodity costs to continue building an interconnected and efficient transportation system that will allow Florida businesses to thrive in the future.  Supporting the Department’s innovative Transportation Vision plan will allow the state to employ creative financing alternatives, offer transportation choices, reduce bureaucracy and streamline decision making to plan and develop future corridors. This plan will provide more efficient project delivery to get our citizens back to work faster.

Sixth, we must Offer Stability to Florida Businesses by Balancing the Budget Without Raising Taxes

Over and over again, businesses have shared that the things they need from government are predictability and stability so that they can plan for the future.  Certainty this is critical to weighing the future risks of expanding a business and creating new jobs.  To that end, I will ensure again in 2012 that Florida produces a balanced budget without raising taxes.  It is this kind of stability and commitment that will help Florida attract the best businesses in the future.

Florida’s existing tax structure and revenue is sufficient to satisfy the basic mission of Florida government: that of providing an adequate and fair system of education, the provision of health and human services for our most vulnerable, and a system of incarceration for those that do harm to others. Unlike the federal government, which simply borrows more money as the level of income is reduced during difficult economic times, Florida must conduct themselves as everyday families and businesses do with their own budgets—by reducing spending and living within their means.

During the years leading up to Fiscal Year 2006-07, Florida’s leaders saved significant amounts of income rather than spending it.  Their responsible actions have allowed Florida to weather the storm of the last five years by using savings, reducing spending, and not by enacting broad-based tax increases or borrowing more money to cover general fund spending gaps.

I will insist on maintaining conservative and responsible money management policies in the state budget.  Only in an economic environment guided by such principles will businesses be able to establish themselves and flourish. As our economy continues to recover, this predictability will make it easier for families and businesses to invest and grow jobs in our state.

Last, but not least, I will Prioritize Science, Technology, Engineering and Mathematics in Education

In order to meet future workforce demands, Florida will need approximately 120,000 new workers in STEM (Science, Technology, Engineering, & Mathematics) fields through 2018, based on Agency for Workforce Innovation projected job field growth.  This figure does not account for the additional need that would be generated by new companies moving into the state or emerging industries. Further, Enterprise Florida estimates that 15 out of the 20 fastest growing job fields will require a STEM education.  In order for Florida’s economy to grow with sustainable, high-wage, private sector jobs, we must increase our commitment to prioritizing STEM in both our K-12 and higher education institutions.

A major factor in Florida’s future economic growth will be the ability of the State University and State College Systems to promote economic growth and meet the needs of the state’s businesses.  In order to do this Florida’s universities must produce more graduates in STEM fields, increase their STEM research productivity that can be commercialized and expanded into new economic opportunities, and build strong relationships with the business community to expand services such as business incubators that will promote targeted economic growth.

The State University System must lead the way in producing graduates who have degrees in STEM fields.  Right now, less than 20 percent of the State University System’s graduates are expected to earn STEM degrees.  Our Universities can drive its graduates toward high employment and high earning careers by increasing its focus on graduating students in STEM fields. In order to achieve these goals, it is critical that Florida establish a goal for STEM graduates over the next five and ten years. High expectations coupled with increased accountability will ensure that our universities are a driving force for economic growth.

The K-12 system must also meet STEM demands in both the K-12 setting as well as in its workforce education programs.  Our students must meet high academic standards with strong preparation in science and math in order to be prepared to compete with an increasingly competitive global workforce.  We must continue reforms that reward and promote excellence in the classroom, demand accountability of our schools, and ensure that our students are receiving the best education possible.

There you have it – my top seven job creation and economic development priorities:

1.   Streamlining business permitting and eliminating burdensome rules and regulations

2.   Providing tax relief and reform for Florida’s working families and businesses

3.   Reforming Florida’s unemployment system to create a reemployment system

4.   Restoring accountability and credibility to Florida’s Workforce Boards

5.   Prioritizing vital transportation projects to facilitate economic development opportunities

6.   Offering stability to Florida businesses by balancing the budget without raising taxes

7.   Prioritizing science, technology, engineering and mathematics in education

I want to thank all of the business leaders who have shared their ideas with me. These steps come out of those conversations. I look forward to working with the Legislature to put this strategy in place.”

Minimum Wage

Senate Bill 2106 would create a guaranteed hourly wage for tipped employees of 130 percent of the current Florida minimum wage, or $9.98 an hour. Because Florida’s minimum wage is indexed for inflation, the guaranteed wage would rise each year if and when the state minimum wage was increased. Employers could opt in to provide the hourly guarantee. In exchange for providing the hourly guarantee, the employer’s obligation with respect to state minimum wage law would be satisfied. (Federal wage laws would still apply).

We’ve assembled a few facts below that provide a richer picture of SB2106 and its impact.

• Fact: Senate Bill 2106 would create the highest state wage guarantee in the region and the country
  • The highest state wage guarantee in the country is currently $9.04 an hour in Washington State. Georgia, Mississippi, Alabama, North Carolina, and South Carolina all have a wage guarantee of $7.25 an hour.
  • SB 2106 would create a wage guarantee that’s 30 percent higher than Florida’s current minimum wage, and 10 percent higher than the highest current wage guarantee in the country (Washington State).

• Fact: The constitution of the state of Florida permits legislation (such as SB2106) that creates a more generous wage guarantee than set by current law
  • Title X, Section 24, of the Florida constitution says the following (emphasis added): “This amendment provides for payment of a minimum wage and shall not be construed to preempt or otherwise limit the authority of the state legislature or any other public body to adopt or enforce any other law, regulation, requirement, policy or standard that provides for payment of higher or supplemental wages or benefits, or that extends such protections to employers or employees not covered by this amendment.”
  • By adopting SB 2106, the Florida legislature would simply be creating a law that provided for the payment of a higher minimum wage than the one guaranteed under current law

• Fact: Senate Bill 2106 would provide for a stable hourly wage guarantee to tipped employees
  • Tips can vary based on the time of year or the business cycle. Advocacy groups in particular have been outspoken about this, criticizing the “erratic” nature of tips in the service industry.
  • This legislation gives employers the options to provide a stable hourly guarantee that’s 30 percent higher than the current state minimum wage. Employee advocates should be strongly supportive of this effort.

Destination Resort Casinos

HB 487/SB 710

With Legislators looking for budget solutions in these hard economic times, some seem willing to gamble with “Destination Resort Casinos.”  Regardless of what it’s called – gaming or gambling – it still boils down to one issue – is this what we want Florida’s future to look like?

THE REAL NUMBERS: After three meetings and much lobbying from the gambling industry, a panel of economists for the State Revenue Estimating Conference could not come up with a firm number on how much the State will make from the mega resorts.  The estimates were “too squishy,” they said, and the variables too uncertain, and the ambitious timeline to susceptible to delay.

“It’s a choice of either saying it’s indeterminate or put a number down and say it’s highly uncertain,” commented Don Langston, economist for the State House of Representatives.

The FRLA is not alone in its position against gambling.  All Florida Cabinet members, Attorney General Pam Bondi, Chief Financial Officer Jeff Atwater, and Agriculture Commissioner Adam Putnam, along with the Florida Chamber of Commerce and the Florida Retail Federation is against the expansion of gambling.

Florida is considered one of the most family-friendly destination locations in the world.  Are we ready to swap the motto of: “Share a little Sunshine,” with “What happens in Florida, stay’s in Florida?”

The Florida Restaurant and Lodging Association is opposed to the expansion of gambling.

Online Travel Companies

HB 1393/SB 1888

For several years now, competing interests have been warring in Florida and across the country over how taxes should be calculated on hotel rooms sold over the internet.

The dispute revolves around how hotel rooms that are sold through online travel companies (OTCs) should be taxed.  Internet companies such as Expedia, Travelocity and Orbitz currently pay taxes only on the wholesale rate (which is the rate they pay the hotel), rather than on the retail rate (which is what they charge the customer).  Since the customer pays taxes on retail rates, the online travel companies consider the difference between the two rates the price of the service they provide.

Hotels, who currently pay taxes at the retail rate, argue that online travel companies have an unfair advantage over bricks-and-mortar companies.  The Florida Association of Counties estimates that counties are losing $20 million a year in hotel-tax revenue due to the discrepancy.

This issue has appeared before the Legislature for the past 3 years.  The FRLA believes that our state policies should not put hard working Florida hotels at a disadvantage.

The Florida Restaurant and Lodging Association opposes any policy that would provide online travel companies a special tax advantage.

HB 511/SB 668

Florida has made great headway in reducing workers’ compensation insurance costs.  Florida went from having the 2^nd highest rates in the nation in 1998, to the 10^th lowest rates in 2010.

For years The Florida Restaurant and Lodging Association has been an advocate for a workers’ compensation policy that yields an equitable system at affordable rates.

As such, The FRLA is continuing to advocate for legislation that will close a statutory loophole that some physicians are using to charge exorbitantly high rates when they dispense repackaged drugs to injured workers.  Because the pharmacy providers are not permitted to collect the exponentially higher rates that the physicians unfairly collect, unpredictable cost fluctuations are caused.  The cost fluctuations drive up workers compensation pharmacy costs.

Legislation filed this year, HB 511 and SB 668, would clarify that all drugs are subject to the same statutory fee amounts regardless of where the drug is dispensed.  If this Legislation is approved, Florida will see an immediate savings of $62 million in workers’ compensation rates.

The Florida Restaurant and Lodging Association supports measures that will produce fair and reasonable workers compensation insurance at affordable rates.

HB 1061

For two years, State lawmakers have pushed back significant hikes in the State’s unemployment compensation taxes, however, businesses across the state are scheduled to get a sizeable tax rate hike in 2012.

Skyrocketing unemployment began to deplete the State’s unemployment compensation trust fund in 2009, causing Florida to borrow money from the federal government.  The taxable wage base was scheduled to increase from $7,000 to $8,500 that year, but business groups persuaded the Legislature to delay any increases in the wage base for two years in hopes the economy would turn around and spark new hiring.

Unfortunately, Florida has endured sustained high levels of unemployment and the minimum tax rate per worker is scheduled to jump from $72.10 per employee to $170.00 (minimum rate).  The maximum rate (high risk-experience) jumps from $378.00 to $459.00.  Since 2009, Florida has been forced to borrow $2.4 billion from Washington to keep the trust fund solvent.

Approximately 46,000 Florida employers pay the annual tax that is based on each business’ employment history over the past three years.  Businesses with no layoffs – nearly half the total – pay the minimum rate while those with the worst records pay the maximum rate.

The Florida Restaurant and Lodging Association supports measures to stabilize and eventually lower the cost of unemployment compensation tax rate increases.

HB 1243/SB1468

Each year prior to 2006, many school districts around the state began to push their school year start dates further into the month of August.  Then the inevitable happened, one school district decided to start its school year in July.

It was at that point that parents around the state started to complain.  It was also at that point that many hospitality businesses started to notice a reduction in sales and bookings.    Studies were performed and a significant and disturbing pattern was uncovered.

Florida families generally take their last vacation immediately prior to the school start date in their community.  As school start dates around the state continued to eat into the month of August instead of the traditional start of somewhere closer to Labor Day, hospitality businesses began to experience a drop in numbers and attendance.

In 2006, legislation was proposed and passed that clearly stated that the school year start date could not begin any sooner than 14 days prior to Labor Day.  This was a compromise between parents, businesses and educators.  Educators claimed the need for additional days to prepare students for exams, and parents and businesses were satisfied that if the school year start date was fixed so that it was predictable constant in the future, both sides would be winners.

Now there are a few bills that threaten to unleash school districts to be able to set a school start date at practically anytime.  These bills, if passed, will have a significant impact on both your bottom line and state revenues.

Immigration

HB 1315/SB 1638

The United States Congress has not passed major legislation addressing immigration since 1986, when it made it illegal for employers to knowingly hire undocumented workers.

Many states believe that our nation’s immigration policy must be revamped, so they are implementing their own immigration policies.  Immigration reform has been lobbied extensively for years in Tallahassee and Washington DC.

Since the start of 2007, state legislators from across the country have considered nearly 7,300 bills and resolutions to reform immigration.  Many worry that laws similar to Arizona, Alabama, Georgia, Indiana, South Carolina, and Utah are sending the wrong message.  Every state that has passed “immigration reform” has immediately been sued in Federal court.

New state laws passed in 2011 address nearly every facet of immigration, including how states should handle identification for undocumented immigrants, whether employees should use the federal E-verify system to ensure legal status and whether schools must verify students’ immigration status.  Due to the questionable legal status of most of the immigration bills, The FRLA believes that federal lawmakers should address this issue not the states.

FRLA supports a consistent federal policy that avoids unnecessary, costly or regulatory burdens on business.  Florida must protect its economy and its welcoming reputation to all visitors.

Florida is not like other states.   Is Florida willing to endure the costly litigation that every other state passing immigration bills has had to fight? Will this solve the real problem?

The Florida Restaurant and Lodging Association believes that working with the federal government on a national solution is the best way to resolve Florida’s immigration issues.

Appeals court refuses to halt Fla. barrel racing

TALLAHASSEE, Fla. (AP) — An appellate court says betting on quarter horse barrel racing can continue at least until the next step in a legal challenge.

The 1st District Court of Appeal issued a brief order on Tuesday denying a request by opponents to temporarily halt pari-mutuel barrel racing in Gretna.

The three-judge panel next will decide whether administrative hearings should be held on the issue.

Two associations representing flat-track racing quarter horse owners and breeders oppose barrel racing. They say it’s not a legitimate form of pari-mutuel wagering

Read more from Tampa Bay Online

Business groups seek more changes to stem unemployment tax hike

Unemployment compensation taxes that businesses pay are poised to sharply increase at the end of the month, but Florida business groups are hoping to reduce the increase through changes to the unemployment compensation system.

In a letter sent last week to Gov. Rick Scott, Senate President Mike Haridopolos and House Speaker Dean Cannon, business groups asked the leaders to make two changes to the unemployment compensation tax formula this year: decrease the taxable wage base per worker from $8,500 to $7,000, and extend the time for recovering imbalances in the trust fund from three to six years.

Read more from The Current 

Poll: Gingrich leads GOP field, Romney better against Obama

Newt Gingrich has a double-digit over the GOP field nationally, a new NBC News-Wall Street Journal poll found.

Newt Gingrich has a double-digit over the GOP field nationally, but Mitt Romney performs better in a head-to-head match-up against President Obama, according to a NBC-Wall Street Journal poll released on Tuesday.

Gingrich is the first candidate in the poll to take 40 percent of likely Republican primary voters, followed by Romney at 23 percent, Ron Paul at 9 percent, Michele Bachmann at 8 percent, Rick Perry at 6 percent, Jon Huntsman at 5 percent, and Rick Santorum at 3 percent.

Read more from The Hill

Outlook for hotels still bright

South Florida’s hotel industry will continue to be a bright spot in the region’s economic recovery, but a new study expects the growth rate in revenue per room to slow down.

Occupancy is expected to rise in the Miami and Fort Lauderdale markets, while PKF Hospitality Research (PKF-HR) expects a drop in the West Palm Beach market.

While the region had a spate of new hotel rooms during the pre-recession boom, supply is expected to increase a modest 2.1 percent in Miami and Fort Lauderdale during the upcoming year and be unchanged in West Palm Beach. That should help hoteliers raise rates and increase profitability.

For more from the South Florida Business Journal

Genting: Our Miami casino won’t be the largest in the world

The Malaysian company pushing for a massive resort on the Miami waterfront said Monday it does not want to put the world’s largest casino there, calling that idea a “myth.”

A casino planned for the current Miami Herald site would be comparable to some of the biggest in the United States, a top executive for Genting Group told a gambling forum at Miami-Dade College. That’s still a sizeable venture but not the gargantuan casino that critics have seized on in warning Genting’s plan would overwhelm downtown Miami.

“That’s simply false,’’ Christian Goode, Genting’s top Florida executive said when a fellow panelist talked of bringing the “largest casino on the planet” to Miami. “It’s not even close to being the largest.”
For more the Miami Herald

Florida Tourism Industry Saw Modest Growth During 2011

ST. PETERSBURG | A flood of new visitors from Brazil and a stunning post-oil-spill rebound by Panhandle beaches were bright spots in 2011 for a Florida tourism industry that has weathered some hard times the past couple of years.

The $60 billion industry experienced modest growth this year, and officials expect a similar bump in 2012 as the nation’s economy continues to improve and the BP oil spill that fouled the shores of Gulf Coast states last year becomes a more distant memory.

For more from the Ledger