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Florida Realtors Public Policy Report 3.31.23

By Kymberly Franklin posted 03-31-2023 15:36

  



March 31, 2023

Public Policy Update

Hello everyone. There are good weeks, and sometimes there are great weeks. This week was neither of those because it turned out to be an absolutely incredible week. So many great things happened that its hard to know where to start. I’ll give it my best shot though.

First of all, let’s all give President Mike McGraw a rousing round of applause for knocking an amazing opportunity out of the park (as indicated in the photo above). We got word earlier this week that Governor DeSantis wanted to have a bill signing ceremony for SB 102, the Live Local Act, on Wednesday. Given that this bill was one of our biggest legislative priorities this year we were ecstatic to see the governor acting so quickly on it. But the real kicker was the governor’s team asking us to join him at the event and say a few words.

Despite it being the first day of Great American Realtor Days (GARD), President McGraw and CEO Margy Grant were able to make it down to Naples for the signing and boy are we glad they did. Mike was the last speaker before the bill was signed and you could not have asked for a better representative of the industry and the profession. I highly encourage you to watch his speech by clicking here. His part starts at the 38:46 mark if you want to fast-forward.  

So, there you have it folks. One of the most transformative housing bills in the last three decades is now law and will take effect starting July 1, 2023, and it all starts with the Realtor voice. You kept up the pressure. You stayed vocal. And you never took your foot off the gas as the organization advocated for funding and programs to help put more Floridians in homes. Congratulations on this amazing win everyone.

Okay, as if that wasn’t enough good news for the week, we also happened to have more than a thousand of you join us in Tallahassee for GARD. Between all the hill visits, legislative briefings, a keynote address from Florida’s Chief Financial Officer Jimmy Patronis, and of course, our amazing block party, I’d say we are on track for a very successful session. But GARD got an extra boost of Realtor love this year with a planned stop by NAR’s Riding with the Brand motorcoach. 

The motorcoach, along with the custom motorcycle that’s a part of the Riding With the Brand sweepstakes, were incorporated into the block party and were situated right in the shadow of the Capitol building. It made for an impressive sight as members mingled with lawmakers on and around the motorcoach. The end result was a sea of people in Realtor blue playing cornhole, taking pictures, shaking hands with lawmakers and dancing the night away.

It really was an epic week here in Tallahassee and we are only about halfway through session!


Live Local Act Signed Into Law

I touched on this above but I wanted to direct you to Governor DeSantis’ official announcement about the signing of SB 102, the Live Local Act. This announcement provides additional context about the new law and comments from various stakeholders.


House and Senate Budgets Take Shape

House and Senate committees on Tuesday cleared their respective spending plans, setting the stage for a month’s worth of negotiations between now and the end of session on May 5.

The two budgets are currently about $700 million apart in overall spending, but there is a roughly $1 billion gap when it comes to general revenue — which is the main state budget account that includes proceeds from Florida’s sales tax.

The main differences between the two budgets include:

  • State Guard: The House has set aside more than $108 million, which includes approximately $38.1 million the governor asked to buy aircraft for the unit. The Senate has not funded the group. 
  • Visit Florida: The Senate has set aside $80 million for Florida’s tourism marketing entity while the House has zeroed out money for Visit Florida. 
  • School Funding Formula: The House is pushing for a major overhaul of Florida’s main school funding formula but the Senate may want to push this issue to 2024 given its complexity. 
  • First Responder Bonuses: Gov. DeSantis wants to issue another round of $1,000 bonus checks to first responders who work for either state or local government. The governor’s proposed budget includes $220 million for the bonuses, while the House budget sets aside $165 million for the bonuses and the Senate allots $110 million and limits the bonuses. 

The House and Senate will vote out their respective budgets early next week before going on a short break during the Passover and Easter holidays. When they return, they will have about four weeks to negotiate a final spending plan in order to end session by May 5.


2023 Legislative Session

The 2023 regular session concluded its fourth week today. Here is the latest activity regarding our priorities and other bills of interest we are currently watching closely. You can tune in to the Florida Channel whenever a bill is up in committee to see the discussion taking place and hear the outcome.

  • Affordable Housing: Senate Bill 102, designated the “Live Local Act,” is a comprehensive affordable housing bill that is a major priority for Florida Realtors® this year. The bill does variety of things such as increasing funding for certain state housing programs, providing incentives for multifamily unit owners to make a portion of their units more affordable, providing incentives for developers to build new affordable housing units and much more. A full list of the measures in the bill can be found here.  
    • Recent Actions: PASSED BY THE FLORIDA LEGISLATURE AND SIGNED BY THE GOVERNOR.
  • Realtor License Plate: House Bill 675 and Senate Bill 1254 would create a specialty Realtor license plate that would give members of the profession and other Floridians a visible way to demonstrate their passion for the real estate industry. Proceeds of license plate sales would go to programs that support homeownership in Florida.  
    • Recent Actions: SB 1254 unanimously passed its first committee, the Transportation Committee, on 3/27 and now heads to its second committee, the Appropriations Committee on Transportation, Tourism, and Economic Development.  HB 675 has received its two committee assignments and is waiting to be placed on its first agenda. 
  • Real Estate Appraisers and Appraisal Management Companies: House Bill 213 and Senate Bill 398 are identical bills that would establish a statutory limitation on the time in which a civil cause of action can be brought against a real estate appraiser, or appraisal management company, following the date the appraisal was performed.  
    • Recent Actions: HB 213 is waiting to be placed on the agenda of its final committee, the Judiciary Committee. SB 398 unanimously passed its first committee, the Judiciary Committee on 3/29 and now heads to its final committee, the Rules Committee.  
  • Local Ordinances: Senate Bill 170 and House Bill 1515 deal with local ordinances and their impact on businesses. This is similar to the bill we supported last session that allows courts to award attorney fees, costs, and damages to a complainant who successfully challenges a local ordinance on the grounds that the ordinance is arbitrary or unreasonable.  
    • Recent Actions: SB 170 was passed by the Senate on 3/8 by a 29 – 11 vote. It now waits for the House to conclude their actions on HB 1515. HB 1515 passed its final committee, the State Affairs Committee on 3/23 by a 14 – 6 vote and is now on second reading on the House Floor. 
  • Residential Tenancies: House Bill 1417 and Senate Bill 1586 preempt regulation of residential tenancies, the landlord-tenant relationship and all subjects under Part II of Chapter 83, Florida Statutes (F.S.), also known as the Florida Residential Landlord and Tenant Act, to the state. This is a retroactive preemption, meaning this bill would in effect void all current local ordinances which expand beyond Ch. 83, F.S. This bill includes an increase in the number of days’ notice a termination of tenancy without a specific term will take place, by changing the minimum number of days’ notice from 15 to 30 days by the tenant or landlord for month to month. For termination of tenancy with a specific duration, the number of days’ notice of termination requirement is a minimum of 60 days’ notice from either the tenant of the landlord.  
    • Recent Actions: HB 1417 passed its second committee, the Local Administration, Federal Affairs & Special Districts Subcommittee on 3/29 by a 12 – 5 vote. It now heads to its final committee, the Judiciary Committee. SB 1586 passed its first committee, the Judiciary Committee, on 3/29 by an 8 – 3 vote and now heads to its final committee, the Rules Committee. 
  • Vacation RentalsSenate Bill 714 and House Bill 833 would require advertising platforms to collect and remit taxes for certain transactions, limit local government registration requirements, cap local registration fees, and require advertisements to attest to certain information, among other things.  
    • Recent Actions: SB 714 is waiting to be heard in its second committee, the Appropriations Committee on Agriculture, Environment, and General Government. HB 833 passed its first committee, the Regulatory Reform & Economic Development Subcommittee, on 3/28 by a 12 – 3 vote and now heads to the Ways & Means Committee.
  • Condominium and Cooperative Associations: Senate Bill 154 and House Bill 1395 clarifies several measures that are outlined in Senate Bill 4D which was passed last year during the May Special Session. Specifically, it clarifies who can provide milestone inspections, that in some circumstances a milestone inspection can be required sooner than the building reaching 30 years of age, which Citizens condominium policyholders must have flood insurance, the specific items subject to a structural integrity reserve study and the resale disclosure requirements associated with milestone inspections and reserve studies.  
    • Recent Actions: SB 154 is currently on second reading on the Senate floor. HB 1395 unanimously passed its second committee, the State Administration & Technology Appropriations Subcommittee on 3/29 and now heads to its final committee, the Commerce Committee. 
  • Telephone Solicitation: House Bill 761 and Senate Bill 1308 would prohibit certain sales phone calls and clear up loopholes in existing state law that have led to litigation against businesses.  
    • Recent Actions: HB 761 passed its second committee, the Civil Justice Subcommittee on 3/27 by a 12 – 3 vote and now heads to its final committee, the Commerce Committee. SB 1308 is set to be heard in its first committee, the Commerce and Tourism Committee on 4/4 at 8:30 a.m. 
  • Flood Disclosures for Real Property Sales: Senate Bill 484 and House Bill 759 are identical bills that would require a seller of real property to disclose in writing certain flood information to a prospective purchaser before executing a contract for the sale of the property.  
    • Recent Actions: SB 484 is waiting to be heard in its first committee, the Senate Judiciary Committee. HB 759 is in a similar situation, waiting to be heard in its first committee, the House Regulatory Reform & Economic Development Subcommittee. 
  • Fees in Lieu of Security Deposits: House Bill 133 and Senate Bill 494 provide the option for a landlord to offer a tenant to pay a fee in lieu of a security deposit. This type of product is typically for a prospective tenant who cannot pay a security deposit and is currently an allowed business practice. The bills provide conditions by which a landlord must follow in order to offer such a payment option.  
    • Recent Actions: SB 494 is waiting to be heard in its final committee, the Rules Committee. HB 133 passed its final committee, the Judiciary Committee, on 3/14 and is currently on second reading on the House floor. 
  • Termination of Agreements by a Servicemember: House Bill 73 and Senate Bill 574 provide clarity in defining the type of housing eligible for lease termination due to a servicemember receiving military orders by specifying that “government quarters” means any military housing option that is available to a servicemember, including privatized military housing that is owned, operated, or managed by a private sector company.  
    • Recent Actions: HB 73 passed its final committee, the Judiciary Committee, on 3/14 and is currently on second reading on the House floor. SB 574 unanimously passed its second committee, the Judiciary Committee on 3/29 and now heads to its final committee, the Rules Committee.  
  • Real Property Fraud: House Bill 1419 and Senate Bill 1436 would require real estate licensees & parties providing real estate transaction closing services to send fraud prevention notices to the potential seller of the property, limits liability of real estate licensee for noncompliance but provides that such noncompliance may be introduced as evidence for certain violations, and provides that failure of property owner to respond to notice does not preclude or limit his or her ability to establish certain challenges or defenses or limit his or her remedy in any quiet title or declaratory judgment action.  
    • Recent Actions: HB 1419 passed its first committee, the Civil Justice Subcommittee, unanimously on 3/20 and now heads to its final committee, the Judiciary Committee. SB 1436 unanimously passed its first committee, the Judiciary Committee on 3/29 and now heads to its final committee, the Rules Committee.
  • Residential Real Estate Listing Agreements: Senate Bill 770 and House Bill 861 are identical bills that limit the term of a listing agreement for the disposition of residential real property to 6 months, prohibits a court from enforcing an option to enter into a listing agreement by certain means, requires notice and a written agreement of the residential property owner before a broker may assign the option to enter into a listing agreement to another broker, and provides penalties for violations.  
    • Recent Actions: SB 770 unanimously passed its second committee, the Commerce and Tourism Committee, on 3/27 and now heads to its final committee, the Rules Committee. HB 861 unanimously passed its second committee, the Judiciary Committee, on 3/23 and now heads to its final committee, the Commerce Committee.
  • Disclosures of Ad Valorem Taxes: Senate Bill 974 and House Bill 1097 would require residential online listing platforms to include an ad valorem tax estimator for online listings of residential property and link to the respective county property appraiser office’s website for a more detailed property tax estimate for the residential parcel.  
    • Recent Actions: SB 974 unanimously passed its first committee, the Community Affairs Committee, on 3/22 and now heads to the Finance and Tax Committee. HB 1097 is waiting to be heard in its first committee, the Ways & Means Committee.
  • Resiliency Energy Environment Florida Programs: Senate Bill 950 and House Bill 669 provide that a property owner may apply to a Resiliency Energy Environment Florida (REEF) program for funding to finance a qualifying improvement and may enter into an assessment financing agreement with a local government; revising and specifying public recording requirements for assessment financing agreements and notices of lien; revising requirements for qualifying improvements; revising the calculation of non-ad valorem assessment limits; specifying additional annual reporting requirements for program administrators, etc.  
    • Recent Actions: SB 950 unanimously passed its first committee, the Community Affairs Committee, on 3/22 and now heads to its final committee, the Fiscal Policy Committee. HB 669 passed its second committee unanimously on 3/15. It now heads to its third of four committees, the Ways & Means Committee.
  • Onsite Sewage Treatment and Disposal System Inspections: House Bill 1425 creates a mandatory periodic inspection of a septic system every 5 years and provides that the owner may seek the least costly repair option to repair the system.  
    • Recent Actions: HB 1425 is waiting to be heard in its first committee, the Water Quality, Supply & Treatment Subcommittee. A Senate companion has not been filed.
  • Interests of Foreign Countries: Senate Bill 264 and House Bill 1355 restrict governmental entities from contracting with entities of foreign countries of concern, and entering into contracts for an economic incentive with a foreign entity of concern. The bill also prohibits a foreign principal from owning or acquiring, or having an interest in any agricultural land, or any real property within 20 miles of a military installation or critical infrastructure in the state, and requires that a buyer must provide a signed affidavit attesting that the buyer is not a foreign principal and in compliance with the law. The listed countries of concern are China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria. 
    • Recent Actions: SB 264 has passed all of its committees and is on second reading on the Senate floor. HB 1355 unanimously passed its first committee, the Judiciary Committee, on 3/23 and now heads to the Appropriations Committee. 

CFO Patronis Speaks to Citizens Board About Insurance Issues

On Wednesday, Chief Financial Officer (CFO) Jimmy Patronis delivered remarks to the Citizens Property Insurance Corp. Board of Governor’s meeting. You can access his full remarks here.   


Please reach out to us at publicpolicy@floridarealtors.org with any questions you may have.

Sincerely,

 

 


Andy Gonzalez
Vice President of Public Policy
Florida Realtors®

 

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