April 18 • 12:00 P.M.

The following is an update on where Realtor® issues stand at this point of session. We encourage you to continue to read Earlybird every day for updates on legislative activity—especially in the final two weeks of the session. If you would like to follow real estate issues even more closely, view FAR’s Legislative Tracker on our website. Bill status is updated in real time all day every day as bills are being considered.

Also, we will be doing targeted calls to action on a moments notice as the session comes to an end, so please be on the lookout for those. If you are not signed up for FAR’s call to action system, Click here.


Property Tax Reform
We believe voters approved Amendment 1 in January, 2008 with the promise that it would be the first step toward meaningful tax relief for all property owners. We are now encouraging both the Legislature and the Tax and Budget Reform Commission (TBRC) to address FAR’s tax policy priorities.

There are a huge number of tax bills in play this session and property taxes will be an issue until the Legislature adjourns on May 2. In addition, there is a lot of activity in the Tax and Budget Reform Commission (TBRC), which ends the same day.

Two FAR-supported bills that affect the Value Adjustment Boards (VAB’s), HB 909 and SB 2080, have momentum behind them.  While these bills do not currently change the highest and best use standard, they are a big step in having fair appeals hearings for appraisals. FAR is working to amend these bills to include highest and best use changes. Also, Rep. Cannon’s HB 1283, which does away with the presumption of correctness that property appraisers enjoy in VAB hearings, is on the House floor. While the Senate companion has not moved out of committee, we continue to press for its passage.

FAR is also working with Rep. Simmons, Governor Crist, and Senator Peaden to pass an additional amendment to protect Amendment 1 and Save Our Homes. HB 421 is on the House floor, while SB 2758 is in committee, awaiting a hearing next week. The Senate appears reluctant to pass additional property tax cuts in the form of constitutional amendments. We are concerned that if additional targeted tax relief is not offered, a successful challenge of our tax system in the courts will occur.

Some other tax issues have emerged, including the raising of several court filing fees in the Senate’s budget proposal. In particular, the Senate proposes to raise the eviction proceeding filing fee from the current $75 to $265, which is out of line with the other court fees increased. FAR is working to get that fee lowered so property managers are not burdened with an increased fee for the eviction process.

In the TBRC, the final vote of CP 002 (which includes a “buy out” of the school portion of our property tax and a 5 percent non-homestead assessment cap) next week will certainly be close. Of the 25 TBRC members, 17 must vote for the amendment to appear on the November ballot. The TBRC has approved additional measures in previous weeks that will appear on the 2008 ballot that FAR supports, including lower property tax assessments for conservation lands, working waterfronts and buildings with storm-proof improvements.

Health insurance
Affordable health insurance is just a few votes away for thousands of Florida Realtors. On Wednesday the Senate unanimously passed a measure by Sen. Durell Peaden (R-Crestview) that will provide preventive, primary and urgent care coverage, including hospitalization, to individuals for as little as $150 a month.

SB 2534 is part of Gov. Charlie Crist’s “Cover Florida” initiative to provide flexible health benefits to the more than 3.8 million uninsured Floridians. Two types of coverage would be available to persons currently uninsured for six months. A non-catastrophic plan would cover basics such as annual physicals and doctor visits for when patients get sick. A catastrophic plan, at a higher cost, would include emergency room treatment, outpatient surgery and hospitalization, but it would still limit the use of certain services to keep costs down. Insurers would also cap benefits and specify co-payments.

Coverage would be guaranteed to anyone aged 19 to 64, and policyholders would be able to keep dependents covered until the age of 30.

The House of Representatives received Senate Bill 2534 on Thursday and amended it to include the Florida Health Choices Program.  The Florida Health Choices program is a public‐private partnership ‐ a “marketplace” ‐ that creates a new environment for buying and selling health insurance and health services.  The marketplace proposal allows for small businesses with up to 50 employees to participate in a cafeteria-like plan that would allow consumers a choice in the manner and amount of health care coverage they can afford.  The plans are portable and voluntary allowing employees to maintain coverage even if they change jobs  The individuals participating in the marketplace can then continue to buy services and coverage for as long as they choose.

The combination of the Senate and House versions seek the same outcome — available and affordable health insurance for more than 3.8 million Floridians. 

Property insurance
Despite the efforts of last year’s property insurance reform legislation, at least a dozen of the largest insurers have requested rate hikes in the past year. Insurers have cancelled or not renewed more than 219,000 homeowners’ policies. The House and Senate continue to have very different ideas about what insurance legislation should be enacted as a follow-up to last year’s HB 1A.  The Senate has passed CS/CS/SB 2860 & 1196 by Senators Atwater and Geller respectively.

The Senate’s property insurance plan would:

• Repeal a law passed last year that prevents owners of $1 million homes to apply for Citizens Insurance. Backers say those homeowners actually benefit the pool because their homes are better built.
• Increase penalties for willful violations of state insurance code from $20,000 to $100,000. Also provide $25,000 a day penalty for failure to comply.
• Require 90-day notice for companies planning to drop more than 10,000 policies.
• Restrict the amount of reinsurance a company can buy.
• Require companies to file for premium hikes before passing increases on to customers.
• Require companies to use only state approved hurricane project models when determining the cost of insurance.
• Freeze Citizens premiums until July 31, 2009 and cap premium increases

There is no house companion, but we expect the House will take up several specific items desired by the Senate and send it back to the Senate near the end of session.

Private transfer fees
FAR is supporting legislation that prohibits a property’s restrictive covenants from being amended to require subsequent purchasers pay a previous owner a percentage of sales price. SB 464 by Sen. Aronberg (D-Greenacres) has passed the Senate and is on its way to the House. HB 361, by Rep. McBurney (R-Jacksonville) has cleared all committees and is before the full House. The legislation will help to ensure the marketability of real property in Florida, and the transferability of interests in real property free of title defects or unreasonable restraints on alienation.

Affordable/Workforce Housing & Economic Stimulus
The House and Senate have passed their respective budgets and will soon “conference” to work out their differences. FAR supports the Senate’s position on housing funding, which currently appropriates $243 million to the state and local housing trust funds and includes an additional $75 million in other housing programs. The Senate also sweeps only $75 million into general revenue in this historically tight budget year.

The House offer is far worse—simply appropriating $243 million to the trust funds and sweeping the entire remaining balance, $333 million, into general revenue. FAR will be pushing the House toward the Senate position.

Florida Forever
The Governor, Speaker of the House and President of the Senate have all stated that the renewal of the Florida Forever program is a priority.  Funding will likely continue as it has in the past at $300 million per year, but will provide for management of the lands as well.  It appears other changes in the program will include public use of the lands purchased with taxpayer money, use of these lands for imperiled species and whether private entities may be permitted to lease portions of these lands and help pay for proper management.

Septic tanks/on-site sewer systems
In January, the FAR Board of Directors approved three action items related to septic tanks and funding for a state study regarding the application of cost-effective passive technologies to conventional septic tank systems. The goal of the study is to save homeowners money and reduce nitrogen levels without having to replace existing systems with expensive, performance-based on-site sewer systems. These motions are part of HB 975 by Rep. Bryan Nelson (R-Apopka) and SB 1482 by Sen. Steve Geller (D-Hallandale Beach).

Unfortunately, the study FAR supports costs $5 million over 3 years. In an effort to lower the cost, the sponsors are attempting to allocate the funding over three fiscal years. And even then, finding $1.7 million in this very tight budget year has proven difficult. We continue to work with a coalition of homebuilders and others to secure the funding in this tight budget year.