A Capitol Closed: 2021 Legislative Session

A Capitol Closed:2021 Legislative Update

By Chris Dudley

In a year when the doors to the State Capitol were locked and the halls and committee rooms of Florida’s Capitol Complex were void of advocates and citizens, the 2021 regular legislative session, nonetheless, proved to be one of the most productive policy sessions in decades. The leadership of Senate President Wilton Simpson and House Speaker Chris Sprowls focused on a significant number of important policy issues to the state of Florida. From Covid liability protections for businesses, financial relief from pending unemployment tax rates, significant reforms to the property insurance market, to massive investments in road and water infrastructure, the 2021 Florida Legislature tackled some of the biggest issues facing our state in a wellrun 60-day session that ended on April 30th. Led by Governor Ron DeSantis, the business community rallied early around providing liability protections to businesses impacted by Covid-19. The new law, signed by Governor Ron DeSantis on March 29th, will ensure that businesses that follow state and federal health guidelines and take proactive steps to safeguard the wellbeing of their employees and the public are shielded from COVID-related lawsuits. The Legislature followed that up with an $800 million infusion of funds into the state’s unemployment assistance trust fund, negating a huge pending tax increase to employers. Under SB 50, which was signed into law on

April 19th, the state of Florida has now leveled the playing field for Florida’s brick and mortar stores by collecting sales tax from out-of-state online retailers. The Legislature then dedicated that new revenue to both stop an unexpected unemployment tax increase for employers, but also to substantially reduce Florida’s business rent tax rate down to 2% from the current rate of 5.5%. A significant property insurance reform bill, signed by Governor DeSantis on June 11th, is focused on reducing skyrocketing premiums that have resulted from excessive tort litigation and fraud. The bill addresses two main cost drivers that have continued to threaten the insurance market, including key steps to address attorney fees and questionable roofing repair solicitations that have fueled rate increases for consumers. In the transportation arena, the Legislature passed SB 100, which was a major policy shift from the 2019 M-Cores legislation to provide for three new major toll roads in the state. Approved by the Governor on June 24th, the new law will require the completion of the planning and design for the Northern Turnpike Connector and will allow the completion of the Suncoast Parkway up to US 19.US 19 north to Madison County would be prioritized to encourage a free-flow of traffic in congested areas. The new bill will also create a grant program for the expansion of two-lane rural roads that have more than 15% commercial motor vehicle traffic. Legislation supported by the Florida Department of Transportation and passed into law will also allow drivers and companies to appear remotely before the Commercial Motor Vehicle Review Board instead of having to appear in person. The Legislature also passed legislation that was approved by the Governor on April 29th to protect reasonable agricultural activities conducted on farmland from nuisance lawsuits. The new law provides stronger liability protections to farms that comply with best management practices and environmental regulations. Finally, as part of the state’s $100 billion budget, the Legislature invested $2 billion of federal stimulus funds to advance transportation projects in the current $9 billion work program. They also invested an additional $1 billion to fund capital investments for water, wastewater, septic and climate change. Two weeks after the formal Sine Die of the 2021 regular session on April 30th, the Legislature returned for a Special Session on May 17th. The three-day session was convened solely for the purpose of addressing a state gaming compact with the Seminole Indian Tribe. Under the provisions of the new gaming compact, which has been signed by the Governor and is under review by the United States Department of Interior, a new revenue-sharing agreement with the Tribe will provide up to $2.5 billion to the state in the first five years. The compact authorizes craps and roulette games at Seminole properties, additional facilities on the Tribe’s Hollywood Reservation, and statewide online sports betting. The Legislature will begin the work of the 2022 regular session with a series of six interim committee weeks starting in September. The 60-day 2022 session will formally begin on January 11, 2022. Chris Dudley is a Partner at The Southern Group.