EMPLOYER Summer 2001 • Vol. 1, No. 2aif.com/publications/ea/01_summer_ea.pdfEmployer Advocate • Summer 2001 3 S e r v i c e F i r s t By Jacquelyn HorkaDn, Editor espite all the

EMPLOYER Summer 2001 • Vol. 1, No. 2

(Continued on page 4)

What’s Inside

Common Sense:Unconventionalities

by Jon L. Shebel

Putting the Civil Backin Civil Service

by Jacquelyn Horkan

Unfinished Business by Jacquelyn Horkan

Session BusinessReport

by Curt Leonard

Et Cetera by Jacquelyn Horkan

AIF’s Team ofLobbyists

The Business at Hand

A publication of ssociated Industries of Florida Service Corporation

By Jacquelyn Horkan, Editor

Hugh Lofting’s children’s novel,The Story of Dr. Doolittle, featuredexotic creatures called pushmi-

pullyus, described thus: “They had twoheads with sharp horns, one head at eachend of their body.

To understand the dilemma facing thelong-term-care industry, imagine an editorialcartoon with a figure identified as “nursinghomes” under siege by a herd of ravenouspushmi-pullyus, each with one head labeled“lawyers” and the other named “inadequatereimbursement.”

The 2001 Legislature took aim at thestrange herd by enacting SB 1200 and SB1202, which combine lawsuit reforms withmeasures vital to improving the quality ofcare and increases in the Medicaid reim-bursement rates. Both bills will help theindustry redirect money and resources awayfrom lawsuits and toward improving thequality of care provided to residents of long-term-care facilities.

Industry representatives began the sessionby readily acquiescing to tougher regulationin return for protection from the lawsuitonslaught. The industry has also faced up toits failures and embarked on a self-policingprogram that will operate separately fromthe augmented state regulatory efforts.

Until the very end of the session, however,trial lawyers and their allies were unwillingto make any compromise that might shut offaccess to the nursing-home-litigation honeypot. They justified their obstinacy withprofessions of a selfless interest in protecting

Slaying the BeastL o n g T e r m C a r e

residents. Their assertions were weakened bya lack of any evidence that all of their law-suits had achieved any improvement in thelives of nursing-home residents.

In fact, the evidence paints a contrast to theabysmal picture of nursing-home abusebandied about by plaintiff lawyers. Floridainspectors have a reputation as among thetoughest in the nation. The results talliedfrom their reports show that Florida nursinghomes merit poor scores on such measure-ments as food sanitation, care planning,dignity, and assessments. On the other hand,they rank among the best in the nation whenit comes to quality of care, accident preven-tion, pressure sores, and assistance withactivities of daily living.

Nonetheless, a disturbing trend has devel-oped: The number of violations for staffingshortages more than doubled between 1993and 1999. At the same time, the population ofnursing homes grew more frail and debili-tated, requiring higher levels of care. Thus,the need for more staffing came at the verytime that the facilities could not afford theexpense of adding personnel.

Nursing home lawsuits are on the risethroughout the country, but the problem isparticularly grim in Florida. The depth of theproblem is revealed by a few statistics. Theaverage size of a claim filed by a Floridanursing home under its liability policy was250 percent higher than the rest of the countryin 1999. This state accounts for 10 percent ofthe nation’s nursing home beds and 40

C o m m o n S e n s e

2 Employer Advocate • Summer 2001

Unconven-tionalities

EMPLOYER

Published byAssociated Industries

of Florida ServiceCorporation to inform

readers about issuespertinent to Florida’sbusiness community.

© 2001. All rightsreserved.

PUBLISHERJon L. Shebel

ASSOCIATE PUBLISHERStephen B. Trickey

EDITORJacquelyn Horkan

PUBLICATIONSSPECIALIST

J. Gregory Vowell

EDITORIAL OFFICES516 North Adams St.

Post Office Box 784Tallahassee, FL

32302-0784Phone: (850) 224-7173

Fax: (850) 224-6532E-mail: [email protected]

By Jon L. Shebel, Publisher

What do judges, nursing homes, andstate workers have to do with yourability to make a profit? The an-

swer boils down to the accountability ofthose who exercise the power we grant togovernment.

Florida’s judicial system — and, in fact,the entire nation’s — has grown inimical tothe independent functioning of the freemarket as a result of the left-wing bias of thelords of the legal profession. The courtreform bill enacted by the Legislature willhelp return accountability to those who serveon the bench, without undermining judicialindependence. That’s good news for allFlorida businesses, who must live under theinterpretations of law handed down incourtrooms across the state.

The power of judges over your business isless significant, however, than the influenceexerted daily by state bureaucrats. Florida’scivil service system, which establishespersonnel rules for state employees, is anantiquated, creaky brute that shields incom-petent, inefficient, and insubordinate stateworkers, while doing nothing to rewardthose who work hard and pursue innovation.

Business people rely on the bureaucracymore than the average citizen, and bear ahigher burden for tax dollars wasted oninefficiency. That over-reliance on businessfor tax dollars also triggered AIF’s engage-ment in the nursing-home industry crisis.About 80 percent of the funding for nursinghomes derives from government revenues.Right now, the demand for government

funding of nursing homes will only increasein the future. Wasting that money on frivo-lous litigation and poor care translates di-rectly to a waste of your hard-earned dollars.

Attacking the stresses on the nursing-home industry ensures that your tax dollarsare put to their best use, in part, by openingthe market for long-term-care policies. Thisgrowing field of insurance provides individu-als with the means to pay for the services theywill need when they grow old and frail.Transferring financing of long-term care awayfrom government and onto individuals willrescue Florida and the nation from futurebudget shortfalls. It will also give individualscontrol over the long-term-care options theyprefer, rather than having those choicesdictated to them by government.

The victories aside, 2001 produced a disturb-ing note. Until this session, the cumulativevoting percentages of Republicans and Demo-crats in favor of AIF’s positions have typicallybeen comparable, with the GOP usually morepro-business. AIF’s records, however, show a50-point differential between Republican andDemocratic pro-business scores for 2001.

One reason for the unprecedented discrep-ancy was the unconventional nature of the2000 session. Gone was the profusion of lesscontroversial bills that typically saturate thelegislative session and on which Republicansand Democrats tend to coalesce. Instead theemphasis was on a handful of major issuesthat defined party differences. Those bills onwhich the Republican and Democratic cau-cuses clashed were often the same high-profile ones into which AIF poured enormousresources and time.

As long as the Democratic leadershipinsists on opposing free-market solutions, theperformance of rank-and-file caucus mem-bers will continue to suffer. For the good ofthe state’s economy we hope they rethinktheir positions on the issues of concern toFlorida’s employers. ■

Jon L. Shebel is president and CEO of Assoc-iated Industries of Florida and affiliatedcompanies (e-mail: [email protected]).

Employer Advocate • Summer 2001 3

S e r v i c e F i r s t


Despite all the sound and fury, Gov.Jeb Bush won passage SB 466, whichwas based his package of reforms to

state government’s civil service system ina significant first step to improving theaccountability of state employees.

Created to exert control over society,governmental agencies have a natural incen-tive to expand their authority. Holding themaccountable for the use of power can bedifficult because the ship of state is so largeand responsibility is so widely distributed.Gov. Bush’s changes to the state personnelsystem were designed to increase individualaccountability among state employees.

Service First was the subject of a bitter battlebetween left-leaning labor unions, particularlythe American Federation of State, County andMunicipal Employees (AFSCME), that are stillfuming over George W. Bush’s presidentialvictory. While this issue may seem one of narrowpolitical interest, concerning only those few whoactually receive a paycheck from the state ofFlorida, reform of the civil service system asencompassed in Service First is of benefit to allFloridians who pay taxes and depend on stateemployees for everything from driver’s licensesto social services to environmental permits.

Gov. Bush took a balanced approach toimproving the civil service system, combiningincentives with penalties for poor perfor-mance. Opponents of the plan objected to anymeasure that gave supervisors the power topunish workers, including those that made iteasier to reprimand or fire inefficient orinsubordinate employees.

The squabble reached epic proportionswhen union officials convinced Leon CountyCircuit Judge L. Ralph “Bubba” Smith to issuean injunction to keep lawmakers from meeting

on any subject involved in a collective bargain-ing impasse between government and unionnegotiators. The order was so broadly writtenthat it not only prohibited legislative action onService First, it also made budget talks strictlyforbidden for 20 days. When the House andSenate leadership defied Judge Smith’s tram-pling on the doctrine of separation of powers,he ordered them to explain why he should nothold them in criminal contempt. The FloridaSupreme Court intervened and averted aconstitutional crisis by ruling that Judge Smithhad overstepped his jurisdiction.

During the last week of session, lawmakersreached agreement on their version of thepackage and passed it into law on the finalday. While the final product is a slightlyweakened version of the original Service Firstproposal, the legislation retains the mostmuscular provisions devised by the governor.It should provide relief to all businesses withfirsthand experience of the inefficiency andfrustration that marred the old system.

SB 466Effective date: Upon becoming lawHouse vote: 73-43Senate vote: 23-15Final action: Signed into law May 14

Jacquelyn Horkan is editor of EmployerAdvocate and AIF‘s online magazineFlorida Business Insight(http://flabusinessinsight.com).Her e-mail is [email protected].

Putting theCivil Back inCivil Service

Service First Highlights■ Moves 16,165 managerial and supervisory employees to Selected

Exempt Service, where they receive a more lucrative benefits packagebut can be reassigned or replaced at the pleasure of the department head

■ Creates performance-based bonuses, expands ability of agency headsto grant salary increases, and expands the state-employee educationand training program

■ Expands the definition of “cause” for employee discipline to includepoor performance and streamlines the employee grievance andappeals processes

■ Eliminates “bumping,” which allowed senior employees to take over thejobs of employees with less tenure when jobs at an agency were cut

■ Doubles the probationary period for new employees from six monthsto one year

Created to exert

control over

society, govern-

mental agencies

have a natural

incentive to

expand their

authority.

percent of the losses paid. There are 22.6claims for every 1,000 occupied beds inFlorida compared to seven claims for theother states. Attorneys for both defendantsand plaintiffs account for 49 percent of theclaims costs paid by liability insurers.

Lawsuits and demographic, however, werenot the only source of pressure on the industry.Some large nursing-home chains banked theirfutures on a generous loophole in the Medicarereimbursement schedule. When Congressclosed loophole, the chains were left with aback-breaking load of debt and no revenue toservice it. Nursing home residents grewincreasingly dependent on Medicaid andMedicare to pay for their stays at the facilities.Nursing homes lose an average of $15.74 a dayon these residents. With fewer and fewerprivate-pay residents, the nursing homes werecaught in an inexorable cash squeeze.

The situation reached a crisis point lastyear when insurers began tripling liabilitypremiums, even for homes and assisted-livingfacilities (ALF) that had never been sued.ALFs are required by state law to carryliability insurance. Many lenders insist thatnursing homes carry liability insurance aspart of their loan agreements. The scarcityand cost of insurance threatened wholesaleclosures of the facilities.

Nursing homes and ALFs were governedby two separate chapters of law that containedbroadly worded language defining what theycould be sued for. Patients’ rights sections ofthe statutes attracted lawsuits because theyincluded such vague concepts as the right todignity, privacy, and health care. As a boonto lawyers, their fees were added on to anysettlement or award.

Lawsuits alleging even the most trivialtransgressions were routinely settled bynursing homes and ALFs that merely soughtto cut their losses. A facility that was suedwould have its operations disrupted by aplaintiff lawyer who sought to boost his feesby deposing almost every one of its employ-ees. The longer the case dragged on, thehigher the costs and fees that would have tobe paid to the plaintiff lawyer.

(continued from page 1)

The laws enacted by the Legislature protectthe rights of residents in lawsuits similar tothose that make the headlines, while blockingthe frivolous or abusive ones you never hearabout. More importantly, the legislation willimprove the lives of residents by attacking thecauses behind poor or inadequate care.

SB1200Effective date: Upon becoming lawHouse vote: 99-21Senate vote: 39-0Final action: Signed into law May 15

SB1202Effective date: Upon becoming lawHouse vote: 109-8Senate vote: 38-0Final action: Signed into law May 15



L o n g T e r m C a r e

The laws enacted

by the Legislature

protect the rights

of residents in

lawsuits similar

to those that make

the headlines,

while blocking the

frivolous or

abusive ones you

never hear about.


WHAT DO YOU NEED TO KNOW?On AIF’s Web sites you’ll find the information youneed — when you need it — on the political,legislative, and regulatory efforts that are shapingyour company’s future.

Associated Industries of Florida Online• Links to all of AIF’s web sites, both public and members only• Access to AIF research and issue pages• Ability to print mailing labels for Florida lawmakers

http://aif.com

Florida Business Insight – The Magazine of Free Enterprise andPublic Policy

• Timely analysis of political and economic developments• Expert advice on how to comply with laws and regulations• In Box — a tour of the outlandish and outrageous world of

current events• Dateline: Florida Business — the latest breaking news on

Florida’s economyhttp://flabusinessinsight.com

Florida Business Network (limited to AIF members)• Complete information on important business bills• AIF legislative positions and Voting Records• Articles from Florida’s leading newspapers• All past issues of Daily Brief, Weekly Legislative Update, and

Action Reports• E-mail notification on bills of interest• Member issue-response program

http://fbnnet.com

Florida Business United Online (limited to FBU members)• Expert analysis of the political climate• Exclusive updates from our political experts on news and

activities from the campaign trail• Complete voter registration, voter performance, and election

history profiles for every legislative district in the state• One-of-a-kind campaign contribution reports that rank

political contributions by occupation and industry• Detailed biographical and issue profiles for every qualified

state legislative candidatehttp://fbunet.com

Associated Industries Insurance Company• Information for injured workers about how to navigate the

workers’ comp system• Resources for employers to help them control their workers’

compensation costs• How-to Manual of Safety, providing all the tools to create a

workplace safety programhttp://aiic-insurance.com

Long-term-care ReformHighlightsQuality of Care■ Gives the state the power to deny an application,

or suspend or revoke a facility’s license, undercertain circumstances; requires the state to revokea facility’s license if it meets certain guidelines forsubstandard or insufficient quality of care.

■ Increases the frequency and scope of visits byquality of care monitors.

■ Institutes stronger requirements governingresident-grievance procedures and gives the stateadded authority to investigate and punish facilitiesfor noncompliance with the procedures.

■ Increases minimum staffing requirements.■ Provides additional funding to increase Medicaid

reimbursement rates.■ Strengthens requirements for charting of services

provided to residents; institutes new and expandedtraining programs for non-physician caregivers.

■ Mandates risk-management programs at facilitiesto improve the quality of care.

■ Establishes reporting by facilities on staff turnover,staff stability, and staff-to-resident ratios; increasesthe penalties for failure to comply with minimumstaffing requirements; adds requirements foradditional reports designed to give early warningof possible problems.

Tort Reform■ Replaces strict liability with clearly drafted negli-

gence standards; conforms standards of care tomedical malpractice law; establishes exclusiveremedy for a claim based on negligence or aviolation of a resident’s rights.

■ Establishes a three-tier system for awards ofpunitive damages, similar to that contained inthe 1999 tort reform act, with higher limits inthe first two tiers; second or third-tier punitivedamage awards will automatically be referred tothe appropriate law enforcement agency forinvestigation; punitive-damage awards will bedivided equally between the plaintiff and theQuality Improvement Trust Fund.

■ Institutes a two-year statute of limitation with afour-year statute of repose; six years for claimsalleging fraud, fraudulent concealment, orintentional misrepresentation of facts thatprevented discovery of the injury.

■ Repeals add-on attorney fees and costs for injurydeath cases; imposes a cap of $25,000 on fees forclaims that involve violations of residents’ rights.

The confusion of

the anti-reform

business lobbyists

has forced employ-

ers and employees

alike to wait

another year for

relief.

W o r k e r s ’ C o m p e n s a t i o n



For yet another year, the Legislatureadjourned with the desperately neededreform of the state’s workers’ compensa-

tion system left undone.Some progress was made with the passage

of HB 1803, a package of noncontroversialamendments that address a number ofadminstrative and procedural problems.One of the bill’s most important provisionsremoved the mandatory use of managed carein the provision of health care to injuredworkers, which was instituted in 1993.The managed-care requirement was anexperiment that failed. The cost-savingfeatures of managed care were ineffectivein workers’ comp because of the cost-controlmechanisms already in place; instead itactually increased costs by adding anotherlayer of paperwork and administrativeoversight.

HB 1803 also made substantive changes tothe Office of Judges of Compensation Claims,which hears benefit disputes, that will im-prove accountability and streamline thehearing process.

The passage of HB 1803 provided somesolace for the defeat of the major reform billthat was crafted with the assistance of MaryAnn Stiles, AIF’s general counsel and govern-ment-affairs consultant. Stiles, nicknamed theQueen of Comp for her depth of knowledgeof the field of workers’ comp law, had de-signed a package that attacked the two majorcost-drivers in the system: attorneys’ fees andoveruse of permanent-total disability.

Stiles shepherded the reform bills past aseries of hostile attacks by workers’ compclaimant lawyers who feared the loss of theirgravy train. The fault for the bill’s failure onthe last day of session falls not on the claim-ant lawyers, however, but on a group of so-called business lobbyists who did not take thetime to understand the bill.

The carefully developed legislation killed

by these ill-informed business lobbyistsironed the wasteful and costly kinks out ofthe workers’ comp system. By their last-minute intervention, they played right intothe hands of the claimant lawyers who are theonly ones guaranteed to benefit from manipu-lative litigation and abuse of the permanenttotal designation.

The Price of Pinching PenniesThe reform package would have doubled

the impairment benefits due to an injuredworker after he reaches maximum medicalimprovement. The 1993 reforms slashedbenefits to injured workers in a desperateattempt to cut premium costs. Those benefitcuts had a perverse effect, however. More andmore workers hired lawyers in an effort toincrease their benefits. The pursuit of perma-nent-total-disability designations for theirclients was one part of the strategy adoptedby claimant lawyers.

Permanent-total disability is supposed tobe reserved for those with injuries so severethat they will never be able to work again.Instead, it has become a haven for injuredemployees who could work but choose tostay at home and collect disability checks.This gaming of the system has produced amalignancy of rising costs.

While the benefits outlined in Florida’sworkers’ comp law are the lowest in thenation, the actual benefits paid rank amongthe highest. Thanks to the ingenious schemesof injured workers and their lawyers, Floridaemployers pay among the highest premiumrates in the United States. Much of the faultcan be traced to abuse of the permanent-totaldesignation.

In Florida, permanent-total disabilityaccounts for 20.5 percent of all non-medicalbenefits. Only Colorado pays a higher per-centage, barely squeaking by Florida at 20.9percent. Compare that to New York (2.5

Unfinished Business

Visit

http://aif.com

for the full

story on

workers‘

compensation

reform


percent), California (6.4 percent), Texas (8.1percent), South Carolina (8.5 percent), andGeorgia (8.1 percent). Permanent-total disabil-ity levies a substantial tariff on goods manu-factured in Florida.

AIF’s proposal launched a multi-prongedattack on the permanent-total disabilityconundrum. By increasing impairmentbenefits, the bill would have alleviated someof the frustration experienced by injuredworkers who run out of benefits before theyare prepared to return to work, therebylessening their incentive to hire lawyers.By itself the benefit increase was predictedto boost rates by six to 6.7 percent.

Offsetting the premium-hike were provi-sions to attack the real causes of Florida’shigh rates. The bill would have made ittougher to be designated as permanently andtotally disabled. Restricting permanent totalto those incapacitated by a workplace injurywould save money for Florida employers bycurtailing the payment of costly, lifetimebenefits to those who don’t need them.

Cutting Costs the Right WayThe bill based on Stiles’s ideas also cut

back on the waste and expense engenderedby claimant lawyers. Of all workers’ compinjuries in Florida, 95 percent are handledwithout lawyers and lawsuits; the other fivepercent that are litigated account for 70percent of the benefit dollars paid out.

Claimant lawyers drive up costs in everysegment of the system. First, they boostmedical benefits by shopping around amongfriendly doctors to find questionableimpairmant ratings for their clients. Theultimate goal is to add up the impairmentratings until they qualify the claimant forpermanent total disability; even if the claim-ant doesn’t meet that threshold, every dubi-ous percentage of impairment increases theamount of indemnity benefits paid to claim-ants and, by no coincidence, the amount offees earned by the lawyers.

The quest for these fees is what is forcingpremium rates upward. The lawyers exploit

every loophole they can find — or create — inorder to pad their wallets. One loophole theycreated involves hourly fees. Workers’ compclaimant lawyers are supposed to be paid ona contingency basis, using a schedule ofcontingency percentages set forth in thestatutes. If a case meets certain qualifications— for example, it is extremely complex — ajudge of compensation claims can award theattorney hourly fees. Judges have a taken avery lenient approach to awarding hourlyfees, which gives claimant attorneys apowerful incentive to waste time buildingup billable hours. In fact, there a number ofcases where the carrier ended up payingmore to the attorney than it did to theclaimant.

As a result, the workers’ comp system isnow attorney-driven and filled with perverseincentives. One of these is the creation ofdelays. In some areas of the state, an injuredworker has to wait up to a year and half for afinal determination of his claim as the lawyerson both sides churn the case and drive uptheir billable hours. During this time a claim-ant may be going without the treatment orbenefits he desperately needs.

The confusion of the anti-reform businesslobbyists has forced employers and employ-ees alike to wait another year for relief. The2002 legislature will convene in January, twomonths earlier than usual because of reappor-tionment, and AIF will gear up once again towin passage of legislation to correct the flawsin the state’s workers’ comp system.

HB 1803Effective date: October 1, 2001House vote: 110-5Senate vote: 39-0Final action: Signed into law May 30


S e s s i o n B u s i n e s s R e p o r t


What PassedBy Curt Leonard

EDUCATIONEducation Governance

With the approval of SB 1162, the FloridaLegislature continues the process of establish-ing a unified system for governance ofFlorida public education, from kindergartenthrough graduate school. The bill directs thegovernor to appoint members of a new stateBoard of Education by July 1, which he hasalready done. This body will share its dutieswith the governor and Cabinet, which now sitsas the state Board of Education, until a 1998constitutional amendment reorganizing theCabinet takes effect in January 2003. They and anadvisory committee will work out the operatingdetails and report back to the 2002 Legislature.The bill also replaces the Board of Regentswith an appointed board at each university.

AIF supports these efforts to implementreform of our education system. Florida’s em-ployers need high quality, trained, and equippedpeople to meet the needs of an increasingly high-tech, knowledge-based economy. These reformsare an important first step in improving thequality of potential employees for the businesscommunity, and they brighten the future for allof Florida’s citizens.Effective date: July 1, 2001House vote: 70-45Senate vote: 27-10Final action: Signed into law June 6

Tax Credits For Non-Profit Scholarship FundsThe Florida Legislature passed HB 21 by

Rep. Mike Fasano (R-New Port Richey) andothers to provide corporate income tax creditsfor corporate donations to non-profit scholar-ship funds. Under the bill companies receivea 100-percent corporate-income-tax credit formonetary donations to a nonprofit scholar-ship-funding organization. The credit maynot exceed 75 percent of a taxpayer’s totalliability after all other credits are taken, andthe total amount of credit granted in a year iscapped at $50 million.

Any proposal that promotes and encour-ages competition in the education monopolypromises to benefit students. Opponentsexpressed concern that the scholarshipmonies could be used to allow children torelocate to other public or private schools,which was actually an argument for the bill.Many of the state’s failing schools are in poorneighborhoods. These scholarship funds willprovide opportunities for students trapped inpoor schools to migrate to better schools inbetter areas. Education is not simply anexercise in reading, writing, and arithmetic;the ability to move to other schools providesfor broader socialization, allowing the stu-dents to interact with students from all walksof life. Wasn’t this the purpose of forcedbussing promoted by our liberal friends nottoo many years ago?Effective date: July 1, 2001House vote: 72-44Senate vote: 25-14Final action: Signed into law June 13

Teacher Liability ProtectionThe Florida Legislature approved HB 409

by Rep. Frank Farkas (R-St. Petersburg) andthe House Lifelong Learning Council toprotect teachers from lawsuits.

Public-school teachers and other educa-tional personnel have become ripe targets forlitigation over actions related to discipline,grading, and other classroom decisions. Manyof these lawsuits are frivolous, wasting timeand money that could better be spent onhelping children learn. They also undercutthe ability of instructors to render accuratemeasurements of student performance and tomaintain classroom order.

Under this act, the state of Florida willprovide liability insurance at no cost toteachers, guidance counselors, school psy-chologists, librarians, and all other staffmembers who provide direct instruction tostudents.Effective date: July 1, 2001House vote: 117-0Senate vote: 36-4Final action: Signed into law May 16


of Florida patients. The legislative agreementadopted in 2000 provided that all health plansare required to use licensed physicians ratherthan insurance personnel to make treatmentdecisions, or so-called “adverse determina-tions.” SB 1568 stipulates that only a Florida-licensed physician can make determinationson a treatment plan. The legislature passedit, forgetting that last year’s carefullynegotiated compromise protected consumersagainst decisions driven purely by cost,while also giving health plans the authoritythey need to provide the best and mostefficient care.

Proponents of the bill argued that thislegislation allows Florida’s patients to receive“accountable care” from a doctor based inFlorida, where disciplinary measures can takeplace. Lost on the Legislature was the factthat the Florida Board of Medicine has beenextraordinarily lax, if not outright negligent,with respect to disciplining Florida doctors.This is a false argument anyway, since HMOsare held accountable, both by regulators andthe marketplace, no matter where the doctoris located.

SB 1568 was just one of a slew of “anti-HMO” bills introduced this year, and the onlyone that passed. Anti-HMO bills fall into thecategory of politically attractive but fatal tothe ability of Florida employees to retainaccess to affordable, high-quality health care.Thanks to the efforts of the Senate and Houseleadership, few of the bills received anythingmore than cursory consideration in thecommittee process.

While introduced with the best of inten-tions, much of the legislation sought either toweaken HMOs’ ability to manage costs or tomandate certain types of coverage, regardlessof the actual cost. Substantive and sweepingreforms were enacted in 2000, and the gover-nor and lawmakers deserve credit for reject-ing most of the anti-HMO proposals andgiving last year’s reform time to take effect.Effective date: January 1, 2002House vote: 116-3Senate vote: 38-0Final action: Signed into law June 6

HEALTH CAREPharmacy Licensure

SB 654 by Sen. Burt Saunders (R-Naples)creates licensure by endorsement for pharma-cists in other states. In other words, it allowspharmacists in other states to relocate toFlorida and continue to practice profession-ally without having to “start all over” withFlorida’s professional licensure requirements.Every state in the country, except for Floridaand California, provides licensure by en-dorsement. This bill will assist tremendouslyin solving the problems faced by retail phar-macy establishments in finding enoughpharmacists to serve the needs of theircustomers.Effective date: Upon becoming lawHouse vote: 118-0Senate vote: 38-1Final action: Signed into law June 6

Restrictions on First-Class CareSB 1568 by Sen. Jim Sebesta (R-St. Peters-

burg) busts an agreement struck by theFlorida Medical Association and the businesscommunity on the question of who is quali-fied within a health maintenance organization(HMO) to make medical decisions on behalf

Anti-HMO bills

fall into the

category of politi-

cally attractive

but fatal to the

ability of Florida

employees to

retain access to

affordable, high-

quality health

care.


LEGAL & JUDICIALGovernment Accountability

SB 822 by Sen. Buddy Dyer (D-Orlando)institutes limits on contingency fee contractsbetween state government and privateattorneys. The bill requires that a privateattorney who contracts with the state main-tain documents and records and make themavailable for inspection.

The Florida business community has acompelling interest in seeing to it thatFlorida’s tax dollars are administered in a fairand equitable manner, particularly as itrelates to any state legal action against aprivate sector entity. In addition, publicscrutiny of the retention of private counseland the contractual arrangements establishedmay assist in ensuring that the state does notgratuitously seek legal remedy without firstconducting an adequate policy debate on theissues involved.Effective date: July 1, 2001House vote: 119-0Senate vote: 36-0Final action: Signed into law June 19

Civil Liability/Gun ManufacturersSB 412 by Sen. Charlie Bronson (R-Indian

Harbour Beach) prohibits civil actions againstfirearms and ammunition manufacturers,distributors, dealers, and trade associationsby certain governmental entities undercertain circumstances.

The bill was prompted by the appearanceof gun manufacturers on the “hit list” ofmunicipal, county, and state governmentsand their trial attorney friends who hadparticipated in the looting of the tobaccocompanies. In a cultural and legal environ-ment where personal responsibility andaccountability have been virtually eliminated,gun manufacturers became a tempting targetin need of protection.

Lawsuits against the gun industry fordamages, abatement, or injunctive reliefresulting from the lawful design, marketing,or sale of firearms to the public are prohib-ited. The specified entities prohibited frombringing such suits are the state, counties,

municipalities, special districts, or otherpolitical subdivisions of the state. The billdoes not prohibit an individual from bringinga suit for breach of contract, breach of expresswarranty, or injuries resulting from a defect inmaterials or workmanship.

Passage of this bill was only the first stepin ensuring that our own governments,lacking the political will or wherewithal toban or regulate products, will not use legalartifice to plunder industries such as alcoholicbeverage manufacturers, fast-food chains,and any other business that has, at some time,produced something that may have beensubject to misuse or abuse.Effective date: upon becoming lawHouse vote: 78-35Senate vote: 27-12Final action: Signed into law May 1


In a cultural and

legal environment

where personal

responsibility and

accountability

have been virtu-

ally eliminated,

gun manufacturers

became a tempting

target in need of

protection.


Motor Vehicle Crash ReportsHB 1805 by Rep. Leslie Waters (R-Largo)

implements one of the suggestions arisingfrom last fall’s statewide grand jury reportdealing with insurance fraud. According tothe report, approximately $1.1 billion infraudulent auto-insurance claims are filedannually. with a large portion of that sumdirectly attributable to personal-injury protec-tion (PIP) fraud.

An unholy alliance of doctors, chiroprac-tors, and lawyers conspired openly andaggressively to persuade those involved incar accidents to file fraudulent PIP claims.The conspirators hired runners to monitorpolice reports of car accidents. Car accidentvictims, no matter how minor the accident,were solicited by the runners to file claims formedical services a result of the accidents.Personal hectoring and repeated phone callsshortly after an accident were not uncommon.

Kickbacks of as much as $600 were used bythe runners to entice accident victims intoseeking “therapy” at facilities nicknamed“crash clinics,” which were set up for theexpress purpose of treating accident victims.Some crash clinics also cooperated withlawyers who might file personal-injurylawsuits on behalf of the crash victims.

Florida’s no-fault auto insurance lawguarantees up to $10,000 in medical care toanyone injured in a crash. This provides theingredients for a soup of illegal solicitation ofaccident victims, billing for unnecessaryservices, and patient brokering. According tothe Florida Department of Insurance, thesefraudulent schemes add an estimated $246 ayear to the price the average Florida familypays for auto insurance.

Florida Bar rules prohibit telephonesolicitations and impose other restrictions onlawyers, such as requiring them to wait 30days before contacting crash victims. As isusually the case, the Bar has shown little, ifany, interest in enforcing these rules orsanctioning lawyers who violate them.

HB 1805 would reduce the ability toengage in these schemes by imposing aperiod of confidentiality on victims’ personalinformation that is collected by law enforce-

ment agencies and stored by the state formotor-vehicle crash reports. Only authorizedparties can obtain crash reports including thepersonal-identity information during theexempted period. With a reduction in thisugly fraud, insurance rates should decrease.

A law that had prohibited the use of policecrash reports for commercial solicitation wasrecently ruled unconstitutional by the FloridaSupreme Court, but the effect of that decisionon HB 1805 should be minimal.

Rampant auto-insurance fraud not onlycosts Florida citizens. It breeds contempt forthe law while diminishing respect for themedical and legal professions.Effective date: upon becoming lawHouse vote: 115-0Senate vote: 39-0Final action: Signed into law June 6

Judicial Selection ReformOn the last day of the session lawmakers

passed a compromise on court reform.CS/HB 367 gives the governor practicalcontrol over the membership of the state’s26 judicial nominating commissions thatrecommend candidates to the governor forvacancies on the bench.

Under current law, the governor selectsthree of the nine members of each commis-sion. The Florida Bar appoints the other threeand those six pick the remaining three com-missioners. CS/HB 367 gives five directappointments to the governor who will thenchoose the final four members from a listsubmitted by the Florida Bar. The governorwill be able to reject the Bar’s slates of final-ists until they contain candidates he deems fitfor consideration.

While the change is not as great as thatoriginally supported by AIF, it is a move in theright direction to limit the input of the FloridaBar. Of course, the press has opined that “poli-tics” has been interjected into the court selectionprocess, as if the whole judicial nominatingcommission system was some kind of organicoperation, untouched by human hands andconducted with holy motives.

This is a predictable approach by the press,which has always treated The Florida Bar,

Visit http://aif.com

for Voting Records

a comprehensive

report on the

issues followed

by AIF and how

lawmakers voted

on them.


environmentalists, the unions, and feministgroups as “neutral” participants in the processrather than revealing them to be the politi-cally charged, disciplined, well-financed, andideologically motivated partisans that theyare. The Florida Bar’s input needs to belimited because it is a private group with itsown agenda, its own perspective, and its ownpriorities, which do not always agree withthose embraced by the larger public.

The Florida Bar may once have been apolitically neutral organization, suited for itsrole in assisting in the selection of judges, butthat is no longer the case. Giving The FloridaBar a privileged position in selecting candi-dates makes no more sense than it would tobestow such power on the Audubon Societyor the local Kiwanis Club.Effective date: July 1, 2001House vote: 68-48Senate vote: 29-10Final action: Signed into law June 19

TAXATIONIntangibles Tax Reduction

Although the intangibles tax did not sufferfinal repeal this year, the Legislature did adoptHB 21, House Majority Leader Mike Fasano(R-New Port Richey), which raised exemptionsfrom $20,000 to $250,000 for individuals andfrom $40,000 to $500,000 for married couples.It also granted a $250,000 exemption tobusinesses. Since a taxpayer is not requiredto remit taxes due of less than $60, the changeremoves from the intangible tax roles indi-viduals with intangible assets of less than$310,000 and couples with less than $560,000.

The Senate added some major amend-ments to the bill, including one by Sen. JimHorne (R-Orange Park) that was barelymentioned in the last-minute consideration ofthe bill. It would help Florida begin requiringmail order and Internet sales companies tocollect and remit sales tax by authorizing thedirector of the Department of Revenue toenter into the Streamlined Sales and Use TaxAgreement with other states. The system,developed by the National Conference ofState Legislators, would provide uniform tax

rates and other procedures to simplify collec-tion of sales taxes by out-of-state companiesand help overcome their objections that havekept Congress from requiring the collections.

AIF salutes the House and Senate leader-ship for further chipping away at the intan-gibles tax, a Depression-Era relic that is puni-tive, inhibits the movement of capital, penal-izes savings and investment, imposes double ifnot triple taxation on citizens, and provides anenormous disincentive for corporations torelocate their companies to Florida

Florida’s participation in the StreamlinedSales Tax Project is the first step to having allthe 45 states with a sales tax adopt a uniformsystem for the assessment and collection of thesales taxes. This procedure will relieve ven-dors from many of the existing burdens whileplacing Main Street, catalog, and Internetvendors on a level-playing field so that no onehas an economic advantage based on thecollection or non-collection of sales taxes. TheState of Florida will also realize additional taxrevenues if this uniform system is implemented.Effective date: July 1, 2001House vote: 72-44Senate vote: 25-14Final action: Signed into law June 13

Communications Services Tax SimplificationCS/CS/SB 1878 by Sen. Jim Horne (R-

Orange Park) consolidates seven taxes andfees into a single communications tax. The billis designed to be “revenue neutral,” meaningthat by combining the taxes, taxpayers are notincurring greater tax liability. The telecommuni-cations explosion has created a nest of confus-ing taxes on various communication services.It is hard for the state to collect, and even harderfor taxpayers to identify exactly what they arepaying. The simplified tax creates equity in thecollection and administration of the taxes, whilegiving taxpayers a better understanding of howmuch they are paying in taxes, which createsmore accountability with the Legislature.Effective date: October 1, 2001House vote: 99-15Senate vote: 39-0Final action: Signed into law June 1


What those

such as Sen.

Wasserman-

Schultz choose to

ignore is the fact

that only 40

percent of

Florida’s

population enjoy

the benefits of

a private

healthinsurance

policy


What Didn’tPassPrescription Insurance and Contraceptives

SB 168 by Sen. Debbie Wasserman-Schultz(D-Pembroke Pines) died in the SenateAppropriations Subcommittee on GeneralGovernment. Simply put, the bill requiredany health insurer providing prescription-drug coverage also to provide coverage fororal contraceptives.

Currently, Florida law mandates thathealth-insurance policies include coverage of51 different types of procedures and illnesses,whether the policyholder wants them or not.What those such as Sen. Wasserman-Schultzchoose to ignore is the fact that only 40percent of Florida’s population enjoy thebenefits of a private health-insurance policy,and the numbers are dropping as the costs ofthe insurance continue to spiral.

Some of those 51 mandates represent smartpolicy decisions and, arguably, reduce long-term costs to the carriers and to the employ-ers buying the coverage. But many are bur-densome and drive up prices beyond thereach of employers who would like to pur-chase basic health-care coverage for theiremployees. Until a system is established forthe objective cost-benefit evaluation of cur-rent and proposed mandates, AIF is opposedto the imposition of any additional healthinsurance coverage mandates.

Industrial Sales-Tax ExemptionHB 527 by Rep. Rob Wallace (R-Tampa)

died in the House Council on Fiscal Responsi-bility. The bill amended state law to provide afull (rather than partial) sales-tax exemptionon industrial machinery and equipment usedin the expansion of existing spaceport andmanufacturing facilities.

Under current law, the partial exemptiononly applies after the first $50,000 in sales taxhas been paid. Southeastern states all providea full exemption. As is the case with much of

Florida’s tax code, the partial exemption is adisincentive to smaller manufacturers whowish to grow and expand their operations. Afull exemption would promote growth andjobs while putting Florida on a more levelplaying field with neighboring states whenmanufacturing operations are considering amove to the region.

Supermajority ApprovalOne good idea that has languished in the

halls of the Legislature for several years againfaded away during the 2001 session. Theproposal would have required approval by 60percent of the voters to adopt a constitutionalamendment. If it had passed the House andSenate, the proposed constitutional amendmentwould have gone before the voters in 2002.

Spurring interest in the supermajorityamendment was passage of the statewidehigh-speed rail system constitutional amend-ment last November by a mere 53 percentmajority. As if the adoption of the constitu-tional amendment by such a bare majority isnot enough to give pause, a small percentageof those Florida citizens eligible to vote actu-ally went to the polls. In other words, a verysmall number of Florida’s citizens are respon-sible for placing a mandate in the state’sconstitution for construction of an expensiveand controversial high-speed rail system.

The Florida Constitution is a documentcrafted to protect the rights and privileges ofFlorida’s citizens and to define the constraints



of governmental power. It is an organizingdocument designed to provide an outline forthe governance of Florida’s citizens. In thecase of the high-speed rail system, there areexceptional costs and complex policy ques-tions related to the merits of such a systemthat far exceed the bare paragraph allotted toassist voters in making such a momentousdecision on an election day.

AIF supports the requirement forsupermajority approval of constitutionalamendments as a means to protect citizensgenerally, and employers specifically, fromthe tyranny of the majority.

Tax ReformHJR 689 by Rep. Rob Wallace (R-Tampa) gave

up the ghost on the House Special Order Calen-dar. Its Senate companion, SB 1414 by Sen. BillPosey (R-Rockledge) died without ever receivinga hearing in a Senate committee. Both itemswould have required a three-fifths majority voteof the legislators in both the House and theSenate on any bill to raise taxes or fees, or torepeal a sales-tax exemption. Currently, as withany bill, only a simple majority is required for atax increase to win adoption.

If it had passed the House and Senate, themeasure would have gone to the voters in2002 to decide whether to add it to theconstitution.

AIF believes this proposal has merit. Taxincreases, fee increases, and the removal ofsales-tax exemptions are seen by manylawmakers as painless medicine when staterevenues tighten. A two-thirds vote, asopposed to a simple majority, would requirethe sponsor to make a more compelling andconsidered case for any proposed tax in-crease, fee increase, or sales-tax exemptionremoval. Government’s authority to tax themoney earned by businesses and individualsis a tremendous power and should not beexercised lightly.

Unemployment Compensation Benefits forBirth & Adoption

CS/SB 500 by Sen. Debbie WassermanSchultz (D-Pembroke Pines) died in the

Senate Finance & Taxation Committee. Thebill would have dipped into the unemploy-ment compensation trust fund to finance upto six weeks of paid leave for parents ofnewborns and newly adopted children.Why is it that when certain legislators want tohelp their constituents, the proposal usuallycosts Florida’s employers money?

AIF opposed CS/SB 500 because, whilewell intended, it sought to fund a socialwelfare program through the unemploymentcompensation trust fund. Adequate federaland state law is available to accommodateemployees who welcome newly born oradopted children into their homes.

Cabinet ReorganizationThe legislature failed to enact any legisla-

tion accommodating the 1998 constitutionalamendment restructuring Florida’s Cabinetand merging the cabinet offices of the trea-surer and the comptroller into that of chieffinancial officer. This constitutional revisionwill become effective January 7, 2003, afterwhich the Cabinet will consist of the chieffinancial officer, the attorney general, and theagriculture commissioner. The secretary ofstate and commissioner of education willbecome appointed positions and will beeliminated from the Cabinet.

Since the 1998 amendment only addressedthe duties assigned to the treasurer andcomptroller by the Constitution, the Legisla-ture must decide how to treat the responsi-bilities assigned to each by statute, specifi-cally those involved in regulation of theinsurance, banking, and financial servicesindustries. AIF supported Comptroller BobMilligan’s proposal, encompassed in HB 681as passed by the House, by Rep. Leslie Waters(R-Largo), that created three departments,one each for insurance, banking, and financialservices, that would assume the regulatoryduties of the two obsolete Cabinet officials.An executive director, appointed by thegovernor and Cabinet and approved by theSenate, would nominate the three departmentheads who would then receive final approvalfrom the governor and Cabinet.

(Continued on page 20)


For a full list

of all the bills

passed, visit AIF’s

Members Only

Web site,

http://fbn.com

Et CeteraBy Jacquelyn Horkan, Editor

Sharpening the Pencil ActCS/CS/HB 269 extends the education-

reform project of the Bush Administration tothe local school districts. Under the Sharpen-ing the Pencil Act, each school district willundergo a best financial-management prac-tices review every five years in the hope thatthe districts will improve their use of re-sources and identify methods for savingcosts. Reviews of this type performed for thePolk, Brevard, and Martin County schoolsystems revealed combined possible five-yearsavings of more than $30 million if the districtofficials adopted all of the recommendations.This review process, combined with theselected performance reviews, will helprestore accountability and improve effective-ness at the local level. The money spent bytaxpayers on education should be accompa-nied by promises that it will be spent wisely.Effective date: July 1House vote: 117-0Senate vote: 36-1Final action: Signed into law May 30

Sales Tax HolidayWith HB 251, sponsored by Rep. Bev

Kilmer (R-Marianna), the Legislature ex-tended the popular sales tax holiday for afourth year. For a a nine-day period begin-ning on July 28, 2001, Florida shoppers willnot have to pay sales tax on the purchase ofany item of clothing sold for $100 or less. Thetax will be due on some items such as in-lineskates, briefcases, jewelry, handkerchiefs, andumbrellas. The holiday will save shoppers anestimated $42.8 million.Effective date: Upon becoming lawHouse vote: 99-12Senate vote: 26-8Final action: Signed into law June 1

Economic-Impact AmendmentLawmakers approved House Joint Resolu-

tion 571, a proposed constitutional amend-ment that would require the Legislature toprepare a report estimating the cost of anyproposed constitutional amendment placedbefore the voters. Currently no economic-impact study is required, leaving voters in thedark about the budgetary effects of theirdecisions. This amendment will go before thevoters in the 2002 general election.Effective date: not applicableHouse vote: 105-9Senate vote: 36-0Final action: Joint resolutions must be

passed by three-fifths of themembers of both chambers;they do not require action bythe governor


And now for the rest of the story — the laws enacted bythe Legislature that may not affect your business directly,but that you need to know about.

ssociated Industries of Florida

Jon L. Shebel – President & CEO of AssociatedIndustries of Florida and affiliated corporations ...more than 32 years as a lobbyist for AIF ... directsAIF’s legislative efforts based on AIF Board ofDirectors’ positions ... graduated from The Citadeland attended Stetson University College of Law.Issues: General issues

Randy Miller – Senior executive vice president &COO of Associated Industries of Florida ...responsible for the daily operations of AIF ...former special consultant to Pennington, Moore,Wilkinson, Bell & Dunbar, P.A. ... former executivedirector of the Florida Department of Revenue ...expertise in state and local tax issues, includingconsulting, lobbying, and government agencyliaison ... B.S. from Florida State University.Issues: Taxation, general issues

Mary Ann Stiles, Esq. – General counsel ofAssociated Industries of Florida ... managingpartner in the law firm of Stiles, Taylor, & Grace,P.A. ... more than 28 years of legislative andlobbying expertise before the Legislature andother branches of government ... graduate ofHillsborough Community College, Florida StateUniversity and Antioch Law School.Issues: Workers‘ compensation reform

Chris Verlander – Senior vice president - corpo-rate development of Associated Industries ofFlorida ... more than 21 years of expertise ininsurance lobbying activities ... former president(1994-1997) and vice chairman (1997-1999) ofAmerican Heritage Life Insurance Company ...B.S. from Georgia Tech and M.B.A. from theUniversity of Florida.Issues: Cabinet reorganization

Curtis L. Leonard – Governmental affairs managerof Associated Industries of Florida ... over 14 yearsof experience in lobbying the executive and judicialbranches ... areas of specialization: health care,taxation, private property rights ... former staffanalyst with the Florida Legislature ... B.A. in politicalcommunications from Florida State University.Issues: General issues

Barney T. Bishop III – President & CEO, TheWindsor Group ... former aide to state TreasurerBill Gunter ... former executive director of theFlorida Democratic Party ... more than 22 years ofexperience in legislative and political affairs ...areas of expertise include appropriations, criminaljustice, and behavioral health care issues ... B.S. inpolitical & judicial communication from EmersonCollege in Boston.Issues: Appropriations, cabinet reorganization, civil-service reform, nursing-home reform, judicial reform

Ronald L. Book, Esq. – Principal shareholder ofRonald L. Book, P.A. ... former special counsel incabinet and legislative affairs for Gov. BobGraham ... 29 years of experience in governmentand legislative activities ... areas of expertiseinclude legislative and governmental affairs withan emphasis on sports, health care, appropriations,insurance, and taxation ... graduate of theUniversity of Florida, Florida InternationalUniversity, and Tulane Law School.Issues: Economic development, regulatedindustries, transportation

Jodi L. Chase, Esq. – Of Jodi Chase, P.A. ...former executive vice president & general counselof AIF ... areas of specialization include healthcare, legal and judicial issues, and business issues... undergraduate and law degrees from FloridaState University, both with honors.Issues: Nursing-home reform, judicial reform

Keyna Cory – President, Public AffairsConsultants, a public affairs and governmentalrelations consulting firm ... more than 16 years ofexperience representing a variety of clients, fromsmall entrepreneurs to Fortune 500 companies,before the Florida Legislature ... majored inpolitical science at the University of Florida.Issues: Health regulation, nursing-home reform,banking & insurance, cabinet reorganization

Martha Edenfield, Esq. – Partner in Pennington,Moore, Wilkinson, Bell & Dunbar, P.A. ... more than16 years of lobbying experience before theLegislature and other branches of government ...areas of expertise include environmental andadministrative law ... graduate of Florida StateUniversity and Florida State University College of Law.Issues: Environment & growth management,nursing-home reform, cabinet reorganization,health care

A IF’s contingent of lobbyists is not only one of the largest in the state, it comprises the best and brightest namesin Florida politics. These men and women reached the pinnacles of government leadership, steered the course of state party politics, and served in the administrations of former presidents

of the United States. Their knowledge encompasses the issues and the processes of lawmaking. And theyunderstand business, running their own companies and facing the challenge of meeting a payroll.

Seasoned veterans, they apply their skill and understanding to helping you achieve success in the marketplace.

Twenty-two lobbyists, representing almost 500 years of accumulated experience in politics and government, spent

Ralph Haben Jr., Esq. – Partner in the law firm ofHaben & Richmond, P.A. ... former speaker of theFlorida House of Representatives (1981-1982) ...as a member of the House from 1972 to 1982,served on every major committee and receivednumerous awards in recognition of legislativeaccomplishments ... B.A. from the University ofFlorida and J.D. from Cumberland College of Law.Issues: Workers‘ compensation

Frank Mirabella – Partner in the public andgovernmental relations firm of Mirabella, Smith& McKinnon ... more than 15 years of legislativelobbying experience ... B.S. in government fromFlorida State University.Issues: Government reform, regulated industries,cabinet reorganization

Pete Mitchell – Consultant for Pennington,Moore, Wilkinson, Bell & Dunbar, P.A. ... formerassistant state insurance commissioner andtreasurer ... former staff director for theCommittee on Appropriations, Florida House ofRepresentatives ... B.A. in business administrationand computer science from Southridge StateUniversity, with honors.Issues: Education, appropriations, ethics &elections, government reform

Ken Plante – President of Plante & Adams, Inc. ...more than 33 years of governmental experience ...former director of legislative affairs, Office of theGovernor (1999) ... former Florida senator (1967-1978) and Republican leader (1976-1978) ...member of the Florida Constitutional RevisionCommission (1977-78) and chairman of theCommission’s Finance and Taxation Committee ...a founder and first president of Florida Tax Watch.Issues: General issues

Jim Rathbun – President of Rathbun & Associates... more than 12 years of experience representingindividuals and entities before the Legislature,state agencies, and the governor and Cabinet ...formerly worked with the Florida House ofRepresentatives and served as staff director ofthe House Republican Office ... B.S. fromFlorida State University.Issues: Agriculture, commerce & economicdevelopment, ethics & elections, cabinetreoganization, civil-service reform

Tom Slade – President of Tidewater Consulting,Inc. ... more than 41 years of experience inpolitics and government ... Republican Party ofFlorida National Committeeman elect ... servedas state chairman of the Republican Party ofFlorida from 1993-1999 ... former staterepresentative and state senator ... served asvice-chairman of the Florida Taxation andBudget Reform Commission in 1990.Issues: General government, political affairs

Damon Smith – Partner in the public andgovernmental relations firm of Mirabella, Smith &McKinnon ... more than 16 years of legislativelobbying experience ... former south Florida aideto U.S. Sen. Lawton Chiles ... B.S. in journalismfrom the University of Florida.Issues: Banking & insurance, commerce &economic development, regulated industries,cabinet reorganization, civil-service reform,government reform

Arthur E. Teele Jr., Esq. – Commissioner of thecity of Miami ... chairman of the city of MiamiCommunity Redevelopment Agency ... formerchairman of the Metro-Dade Commission ...former vice president & general counsel ofAIF ... former administrator of the Urban MassTransportation Agency under the Reaganadministration ... also served on the President’sTask Force on Urban Affairs ... B.S. fromFlorida A&M University and J.D. from FloridaState University.Issues: Local government, political affairs

John Thrasher – Partner in the lobbying firmSouthern Strategy Group ... former speaker of theFlorida House of Representatives (1999-2000) ... asa member of the House from 1992 to 2000, wasinstrumental in protecting Floridians’ access to healthinsurance, shepherding tort reform legislation, andpromoting pro-free-market policies ... recognizedfrequently for legislative accomplishments ... B.S.and J.D. with honors from Florida State University.Issues: Does not lobby the legislature

Screven Watson, Esq. – Partner in SouthernConsulting Group ... more than 13 years ofexperience in Florida politics ... former executivedirector of the Florida Democratic Party ... hasworked with numerous Democratic Party officials,on both the national and the state scene ... B.A.from Southern Methodist University and J.D.from Nova Southeastern.Issues: Banking & insurance, environment,regulated industries, cabinet reorganization

John Wehrung – Tidewater Consulting, Inc. ...more than 12 years of experience in political andgovernmental affairs ... former political director ofthe Republican Party of Florida ... engineered the1996 GOP takeover of the Florida House ... served aschief of staff for the General Counsel’s Office at theRepublican National Committee from 1991-1993.Issues: Workers‘ compensation, ethics & elections

Gerald Wester– Governmental consultant withthe law firm of Katz, Kutter and Haigler, P.A. ...former chief deputy over Florida Department ofInsurance’s regulatory staff ... more than 25 yearsof lobbying experience ... expertise in insurance,banking, and health care issues ... Bachelor’s andmaster’s degrees from Florida State University.Issues: Health care, Health MaintenanceOrganizations (HMO‘s)

2 0 0 1 L O B B Y I N G T E A M more than 10,000 hours in the Capitol during the 2001 Legislative Session advocating for your business interests.

T h e B u s i n e s s a t H a n d


Tort Reform UpdateBusiness people well knew that winning

passage of the massive tort reform bill in 1999was just the first step. Now we’re in phasetwo: defending the law against a trial-law-yer lawsuit to overturn it.

The Supreme Court of Florida refused tohear a case overturning the 1999 law thatsought to shield Florida’s employers fromfrivolous and excessive lawsuits and damageawards. The court’s 6-0 decision returns thecase to the First District Court of Appeal. TheFirst District had originally taken a pass onthe case, asking that the Supreme Court re-view it because of its importance.

The appellate review stems from a deci-sion in February of this year by Circuit CourtJudge Nikki Clark, stricking down the tort-

AIF’s comprehensiveranking of lawmakerperformance is on its wayto a computer near you.

Voting Records is one the state’s most unique post-session

wrapup tools. The AIF staff compiles thousands of votes cast

by each Florida representative and senator on key business bills.

What makes Voting Records stand out from the rest? AIF’s

record includes more votes on more bills than anyone else. It

tallies votes on the bills and amendments to the bills, both in

committee and on the floor. And unlike other groups, AIF’s

results are purely objective; no votes have been given added

significance, which tends to skew the results.

The full Voting Records will soon be available online

(http://aif.com). ■

If you’re an

AIF member

and haven’t

already gotten

your FBN

login ID and

a password,

call the

Florida

Business

Network at

(850) 224-7173.


reform law on highly technical grounds. Un-der the Florida Constitution each law enactedby the Legislature must be limited to a singlesubject. Judge Clark declared the 1999 lawin violation of that constitutional require-ment, despite three Florida Supreme Courtrulings in the past 20 years holding that tortreform constitutes a single subject.

The defendants immediately appealed herdecision to the First District, which promptlyasked the state Supreme Court to take on thecase. In April the Supreme Court declinedearly review of the Clark decision in a unani-mous decision and bounced it back to theFirst District.

The delay was a victory for business be-cause it means the law will get the most care-ful and comprehensive review possible. Thecase is now in the briefing phase at the First

District, which should end in early August.Within 90 days after that, oral arguments willbe scheduled. Once the process at the appealscourt is finished, the case will move on to theSupreme Court.

The only issue at controversy right now isJudge Clark’s application of the single-sub-ject clause. If the Supreme Court upholds thetrial judge’s ruling, the business communitywill have to get the 1999 law reenacted inseveral different bills, which will then eachbe challenged. If the court rejects JudgeClark’s decision, the law will go back to thetrial court for a hearing on its substantive pro-visions.

Either way, relief from frivolous litigationis a long time coming. Here’s a word of ad-vice: Keep the pressure on elected officials tofind a lasting fix to the problem. ■

The major election reform bill enactedduring the session contained a provisionabolishing future second, or runoff, primaryelections. In the past, second primaries wererequired whenever none of the candidates ina first primary race received a majority of theballots cast; the two top votegetters wouldface off in the runoff, with the winner movingon to the general election.

In statewide races, first primaries usuallybenefited those from large-population areasor those with the most appeal to the partyrank-and-file. The second primary helpedbring to office some rather illustrious figureswho made their home base in more sparselypopulated areas, most significantly formerGov. LeRoy Collins and a little-known U.S.Senate candidate by the name of LawtonChiles.

The lack of a second primary in next year’sgubernatorial election may provide Demo-

cratic voters with an interesting dilemma.So far, nine different politicos have beenmentioned as potential candidates. One ofthem, Attorney General Bob Butterworth, isreluctant to run, which leaves a potential slateof eight credible candidates. If all eight goahead with their plans, and no one else entersthe race, the winner would only have toreceive a 12.6 percent share of the votes castto win the party’s nomination.

That means that the candidate from southFlorida has the best chance of pulling off avictory — except that four of the eight hailfrom Miami-Dade, Broward, or Palm Beachcounties. Chances are they could end upcancelling out each others advantage, whichleaves the field open for former Congressmanand Ambassador Pete Peterson.

If there are two or more winners whoreceive identical numbers of votes, they willdraw lots to decide who gets the nomination. ■

Don’t Second that Election

PRESORTEDSTANDARD

US POSTAGE PAIDTALLAHASSEE FLPERMIT NO 904

ssociated Industries of Florida Service Corporation516 NORTH ADAMS STREETP.O. BOX 784 TALLAHASSEE, FL 32302-0784

For more

comprehensive

information

on these

issues, visit

http://aif.com


CS/SBs 164 & 1970 by Sens. Jack Latvala(R-St. Petersburg) and Steven Geller(D-Hallandale Beach) provided that the CFOwould shoulder both the constitutional andthe statutory duties of treasurer and comp-troller. The CFO would appoint heads of thedivisions responsible for regulating insur-ance, banking, and financial services, whothen be subject to confirmation by the StateBoard of Administration (governor, chieffinancial officer, and attorney general).The State Board of Administration wouldenjoy the power to terminate a division head.The division heads would have the authorityfor “final agency action.” This language wasamended onto HB 681 by the Senate andsent back to the House for its approval.This version died in House messages.

Although the Senate expanded the over-sight of the governor and Cabinet over thestatutory and regulatory duties of the divi-sion heads in its final version of the bill, thelanguage did not provide the completeoversight supported by AIF and the House.Under the Senate version, the Office of theCFO remained overly burdened with respon-sibilities that compete with those granted tothe Office of the Governor.

Faced with an implacable deadline ofJanuary 2003, lawmaker must act on this issuein the 2002 session. AIF will continue to arguein favor of the approach recommended by thecomptroller and outlined in the originalHouse bill.

Curt Leonard is AIF’s governmental affairsmanager (email: [email protected]).


(continued from page 14)

Documents

EMPLOYER Summer 2001 • Vol. 1, No. 2aif.com/publications/ea/01_summer_ea.pdfEmployer Advocate • Summer 2001 3 S e r v i c e F i r s t By Jacquelyn HorkaDn, Editor espite all the