Legislative Update - January 13, 2023

Governor …

“Ron DeSantis' response to migrant wave appears to be underway. FHP on scene of Keys landings” via David Goodhue, Syra Ortiz-Blanes and Douglas Hanks of the Miami Herald — Six Florida Highway Patrol troopers responded to a single landing on the ocean side of Key Largo around 7 a.m. Sunday.

To put that in perspective, that’s about the number of FHP troopers that are regularly assigned to patrol all of the more than 120 miles of road in the Keys on a daily basis.

One law enforcement source told the Miami Herald that Florida Highway Patrol troopers from various areas of the mainland are heading to the Keys in shifts — about five at a time, for two or three days at a time — as part of DeSantis’ plan to deal with the situation.

“DeSantis tested on immigration as he weighs 2024 candidacy” via The Associated Press — DeSantis sent dozens of immigrants from Texas to an island off the Massachusetts coast last year in a high-profile effort to highlight illegal immigration on the eve of the Midterm Elections. But as thousands of Cuban migrants flocked to his own state’s shores in recent weeks, he has adopted a more cautious approach. DeSantis activated the National Guard late last week. But related deployments of soldiers, boat patrols, and military planes were slow to materialize. Some residents expressed frustration about the persistent influx of migrants as they recently inspected two large rafts abandoned in a Florida Keys community park.

“DeSantis activates National Guard to help with South Florida migrants” via Gray Rohrer of Florida Politics — After an influx of migrants from Cuba and Haiti swamped local and federal resources in South Florida recently, DeSantis declared a state of emergency, activated the National Guard, and ordered state agencies to help deal with the crisis. He also slammed President Joe Biden for not responding to the issue. “As the negative impacts of Biden’s lawless immigration policies continue unabated, the burden of the Biden administration’s failure falls on local law enforcement who lack the resources to deal with the crisis,” DeSantis said.

DeSantis Pushes Plan for Lowering Rx Prices by Regulating PBMs - Gov. Ron DeSantis wants state lawmakers to tackle high prescription drug prices this session by regulating pharmacy benefit managers. Pharmacy benefit managers, or PBMs, are third-party administrators of prescription drug programs and are responsible for managing the pharmacy benefits of roughly 270 million Americans in commercial health plans, self-insured employer plans and government health plans. The governor's proposal, which he announced Thursday at a press conference, would ban PBMs from requiring consumers to use mail-in pharmacies. It would also prohibit PBMs from using a "narrow network" of pharmacies that only include businesses affiliated with PBMs and would mandate PBMs provide more information when registering with the state. Additionally, drug manufacturers would need to provide the state with an annual report justifying price increases. "These reforms will enhance transparency and reduce the influence of pharmacy middlemen, which will help consumers as well as our small pharmacies," said DeSantis. The move to lower drug prices comes after the Legislature created the Canadian Prescription Drug Importation Program in 2019. The program was expected to save an average of $150 million annually by lowering drug prices for people covered under state programs such as Medicaid and the Department of Corrections. The program, however, needed federal approval before it could take effect but the Food and Drug Administration has yet to approve it. In response to the delay, the DeSantis administration filed a lawsuit in August. Additionally, legislators last year passed a measure (HB 357) that was intended to build off of a 2018 law by authorizing the Office of Insurance Regulation to fine PBMs up to $10,000 in penalties if they don't register with the state. The governor also issued an executive order in July promoting transparency in the health care industry by requiring all state agencies to review contracts they have with PBMs to make sure costs are justified. Provisions in the executive order will be included in the new legislative proposal but will expand to include the commercial market. Associated Press / Florida Politics / WKMG / WESH / DeSantis Press Release / Lower Drug Prices Graphic  

“DeSantis plan: Disney could lose power over its special district, while assuming its debts” via Douglas Soule of the Tallahassee Democrat — DeSantis ratcheted up his yearlong fight with The Walt Disney Co., with a plan Friday to take control of the governing board for its sprawling Central Florida property and make the company assume $700 million in outstanding debt. A public notice was posted in Osceola County that a bill would be introduced during the upcoming legislative session making major changes to the district. While not heavy with details, DeSantis' staff said the legislation would give district control to a state-controlled board appointed by the Governor. “The corporate kingdom has come to an end,” DeSantis' Communications Director, Taryn Fenske, said.

“DeSantis considers banning 'hostile nation' China from buying Florida real estate, polishing tough-on-China foreign policy stance amid 2024 speculation” via Kimberly Leonard of Business Insider — DeSantis is poised to ask state lawmakers to ban China from buying farmland and residences in Florida, the governor confirmed Tuesday. “We don't want to have holdings by hostile nations,” DeSantis said during a news conference on Everglades restoration in Bonita Springs, Florida. “And so, if you look at the Chinese Communist Party, they've been very active throughout the Western Hemisphere in gobbling up land and investing in different things.” In all, foreign investors hold 5.7% of Florida's privately held farmland.

“DeSantis aims for $3.5B for environmental projects, targets water improvements” via Gray Rohrer of Florida Politics — DeSantis has signed an executive order calling for massive funding for environmental projects and directing state officials to prioritize projects to clean water in important areas, including the Everglades and the Indian River Lagoon. The order calls on lawmakers to spend $3.5 billion on those projects over the next four years, including $100 million for projects to restore the Indian River Lagoon on the East Coast, which experienced damaging blue-green algae in the years before DeSantis took office in 2019, leading to massive loss of marine life. “We’ve made this a priority in the state of Florida,” DeSantis said at an event in Bonita Springs. “We need to leave Florida to God better than we found it.”

Gov. Ron DeSantis would oppose any effort to ban natural gas stoves in Florida. Moves have been made in other states to prohibit gas stoves in new construction because of environmental and safety concerns. Florida Politics 

DeSantis appoints John Haas as Adjutant General of Florida — The Governor has appointed Major Gen. Haas as Adjutant General of Florida. Haas is currently the Assistant Adjutant General — Army and the Commander of the Florida Army National Guard. He was previously the Director of Strategic Plans, Policies, and Programs for the Florida National Guard. Haas has completed three combat tours and has held multiple company-level commands including Battalion Operations Officer, Squadron Executive Officer, and Squadron Commander of the 1-153rd Cavalry Squadron. Awards he has received include the Combat Infantry Badge, Legion of Merit, Bronze Star Medal, Purple Heart and Meritorious Service Medal. Haas earned his bachelor’s degree from Florida State University and his master’s degree in strategic studies from the U.S. Army War College. He will assume the position of Adjutant General of Florida upon the retirement of Major Gen. James Eifert.

“DeSantis aides resign before lobbying restriction kicks in” via Jeffrey Schweers of the Orlando Sentinel — Several top state agency executives have left the DeSantis administration ahead of a new law that took effect Jan. 1 prohibiting them from lobbying their former offices and the Legislature for six years after giving up their posts. Their departures leave several key positions vacant as DeSantis begins his second term and include public officials who have had some of the toughest problems to deal with as members of his administration.

—“After taking money from Walmart heirs, Ron DeSantis and the Legislature helped billionaires hide their family fortunes” via Jason Garcia of Seeking

Rents

Business …

Florida Chamber Foundation Predicts Another Positive Year of Population and Economic Growth in 2023

https://www.flchamber.com/florida-chamber-foundation-predicts-another-positive-year-of-population-and-economic-growth-in-2023/

“Florida electric bills to increase this month” via Scott Heidler of WESH 2 — Expect your next electricity bill to be bigger this January. State regulators approved a request in December from Florida Power & Light and Duke Energy to raise rates. The utility companies cited a combination of factors for the need, arguing natural gas prices are at their highest in more than 10 years. So how will this boil down for those who have service with FPL and Duke? For the average 1,000 kilowatt-hour usage, FPL customers will see a near-$5 a month hop in their electric bills with the average bill increasing from $120.67 to $125.39 a month. Duke Energy customers will see a monthly increase of almost $20. The average bill goes from $150.01 to $168.90.

Jobless Claims increase - First-time unemployment claims in Florida ticked up after the holidays, while the national total dipped slightly. The U.S. Department of Labor on Thursday said an estimated 7,110 jobless claims were filed in Florida during the week that ended Jan. 7, up from 4,238 during the week that ended Dec. 31 and from 4,579 during the week that ended Dec. 24. Last week’s total was the highest since the week that ended Nov. 5, when 7,412 claims were filed. Meanwhile, an estimated 205,000 claims were filed nationally last week, down 1,000 from the prior week. The Department of Labor report was released as data showed that increases in consumer prices slowed for a third month. The department last week said the national unemployment rate in December was 3.5 percent, a 53-year low. Florida had a 2.6 percent unemployment rate in November, representing 280,000 Floridians out-of-work from a labor force of 10.756 million. The state Department of Economic Opportunity will release a December rate and other data on Jan. 20.

Miami ranked 9th in the world in a recent study of the cities where drivers lose the most hours out of their life sitting in traffic. And it's getting worse. The number of hours lost to commuting in Miami was up nearly 60% over the year before, according to the Inrix Global Traffic Scorecard. Inrix Scorecard / Miami Herald

“Florida business incentives 2022: Rebound from pandemic lull but applications drop” via Gray Rohrer of Florida Politics — Florida paid out $20.6 million in incentives to businesses that added jobs or relocated to the state, a 50% jump from the previous year when the economy was still recovering from the COVID-19 pandemic. The payments went to 114 projects with 7,330 new jobs confirmed by the DEO paying an average annual wage of $59,986, or 8.2% more than the statewide average annual wage in 2020 of $55,422. Those payments were on deals agreed to in prior years. But the future of incentive payments and programs could be rocky, as applications for new projects and new agreements fell significantly.

Workplace Law: Florida Continues to Battle for Training Law - The DeSantis Administration's defense of a law banning certain types of discussion of race in workplace training settings continues in the federal court system. Employers challenging the law have urged an 11th Circuit Court of Appeals judge to uphold a ruling that determined Florida's "Stop-WOKE" law violates the free speech rights of businesses. Politico

COVID …

New COVID variant XBB.1.5 is fueling cases in Florida - A new COVID variant has made its way to Florida, pushing case numbers higher and leading health experts to say the most transmissible version yet is certain to infect even those who have had the virus. Since Thanksgiving, the confirmed COVID case numbers in the state and positivity rate have more than doubled, and many counties, including Miami-Dade, Palm Beach and Broward, are once again considered to be at high risk for the disease. [Source: Orlando Sentinel]

“New variant XBB. 1.5 is ‘most transmissible’ yet, could fuel COVID-19 wave” via Fenit Nirappil and Lauren Weber of The Washington Post — Three years after the novel coronavirus emerged, a new variant, XBB. 1.5, is quickly becoming the dominant strain in parts of the United States because of a potent mix of mutations that makes it easier to spread broadly, including among those who have been previously infected or vaccinated. XBB. 1.5, pegged by the World Health Organization as “the most transmissible” descendant yet of the omicron variant, rose from barely 2% of U.S. cases at the start of December to more than 27% the first week of January.

Elections and Politics …

“Field set for HD 24 Special Election, write-in candidate closes GOP Primary” via Jacob Ogles of Florida Politics — The field is set for the Special Election to replace Rep. Joe Harding. The qualification deadline passed Tuesday with five Republicans qualified to run in the House District 24 race. Candidates include Justin Albright, Ryan Chamberlin, Jose Juarez, Stephen Pyles and Charlie Stone. Also of note, Robert “Foxy” Fox qualified as a write-in candidate. That means the March 7 Republican Primary will be closed to only registered Republicans, even though no Democrats or members of other political parties qualified to run. This also means the General Election will not technically be settled until May 16. The Legislative Session will convene March 7 and close May 5. That means whoever wins the HD 24 election will not be seated until after the close of Session this year.

Republicans to Choose Next State Chairman - An early February vote in Orlando will determine who takes over as the new chairman of the Republican Party of Florida to try to maintain the momentum from the GOP's landslide in the midterm elections and see it through the beginning of the next presidential cycle. Seeking the post are current Vice Chairman Christian Ziegler and Evan Power, chairman of the Leon County Republican Party, who also chairs the group overseeing all the county-level party leaders for the state party. The current Florida GOP Chair, state Sen. Joe Gruters, is not seeking reelection after holding the post since 2019. Politico

“Miami Democrats face internal feud after disastrous 2022 Midterms” via Matt Dixon of POLITICO — The 2022 Midterms saw Republicans win Miami-Dade County for the first time in 20 years. Now, the Democratic infighting has begun. 10 party officials in Florida’s most populous county are asking the statewide Florida Democratic Party to audit the county party over alleged campaign finance “improper activity.” The county has long been held up as an overwhelming Democratic home turf. Miami-Dade Democratic Party Chair Robert Dempster has said an audit of the county party is underway, but the group of 10 say they would like to hand off those duties to the statewide party. The Miami-Dade Democratic Executive Committee has 257 total members.

Diaz Resigns as Democratic Chair - Two months after Democrats suffered historic losses across the state, Florida Democratic Party Chairman Manny Diaz resigned Monday. “After much reflection, I regret to inform you that I have chosen to retire as FDP Chair, effective immediately,” Diaz wrote in a lengthy letter. “It has been a pleasure and honor to work with you, and rest assured, I will continue to fight with you to get Democrats elected.” Diaz, a former Miami mayor, became Democratic chairman after the 2020 elections. During the 2022 elections, Republican Gov. Ron DeSantis won re-election by nearly 20 percentage points and the GOP won all three state Cabinet seats and supermajorities in the Legislature, along with picking up four congressional seats. “Floridians overwhelmingly adopted constitutional amendments that reflect our values,” Diaz wrote. “However, we cannot win elections if we continue to rely on voter registration to drive turnout, build field operations only around elections, and expect to get our vote out without engaging voters where they live; listening to them and earning their trust.” Speculation had swirled since the November elections about whether Diaz would leave the chairman’s post. “I like Manny. But you can’t lose by 19 points and get to stay to talk about it,” Congressman Jared Moskowitz, a South Florida Democrat said in a Twitter post. The party is expected to vote on new leaders when its executive and central committees meet this month in Maitland. Republicans in 2021 took the lead in registered voters in Florida, after Democrats traditionally had an edge. “I don’t care about the ideology of the next Chair,” tweeted Sean Shaw, a former state lawmaker and the 2018 Democratic candidate for attorney general. “I care about their ability to register voters and run the actual operation of the (Florida Democratic Party) competently. Everything else comes after that.”

Tallahassee Commissioner Jeremy Matlow says he is a candidate to be the new state Democratic Party chairman. Tallahassee Democrat / The Capitolist

Political consultant Alex Berrios is also seeking the chairmanship of the state Democratic Party. Florida Politics 

Broward Democratic Party Chairman Rick Hoye has joined the list of those seeking to become chairman of the statewide party. Sun-Sentinel

“Ron DeSantis is GOP’s early front-runner. That could be a problem” via Alexander Bolton of The Hill

A new nationwide poll conducted for the conservative Club for Growth shows DeSantis is emerging as a bigger potential threat to President Joe Biden than former President Trump, NBC News reports.