Florida Legislative Session Agricultural Update – Week 8

The eighth week of the 2017 Regular Legislative Session concluded on April 28, 2017.

We will provide periodic updates as the Legislative Session continues, and for any relevant legislation, the full text of each bill and any amendments can be found on the legislative web sites. (www.flsenate.gov; www.myfloridahouse.com; and www.leg.state.fl.us.) Updates from the last report are in bold text.

Water and Natural Resources

Negron Land Purchase Plan: SB 10 by Senator Bradley passed the full Senate and was immediately certified to the House. The House is more amenable to the idea in its current form, but the proposal to borrow $1.2 billion to build the reservoir is a problem for the Speaker. The bill does the following:

• Requires the SFWMD to develop a plan to provide a minimum of 240,000 acre-feet of storage through a deep storage reservoir and water quality treatment features, using the A-2 parcel, land swaps, and purchases. The district may consider alternate configurations using the A-1 parcel if a minimum of 360,000 acre-feet of additional storage can be achieved (60,000 acre-feet currently provided by A-1 FEB).
• Requires the SFWMD to use DMSTA2 modeling to determine the amount of acreage needed in order to meet water quality standards.
• Directs the SFWMD to negotiate modifications of lease terms on state and district owned lands to make land available for the reservoir project.
• Directs SFWMD to negotiate for the acquisition of privately owned property if needed for the reservoir project through purchase or land swap.
• The bill terminates the current PRIDE work programs on state owned land using inmate labor for agricultural work in light of the high unemployment rate in the EAA for these types of jobs. This land would then be available to swap for any privately owned land needed for the reservoir project further minimizing any impact on agricultural workers in the EAA.
• Establishes a number of timelines for achieving milestones for approval of the post-authorization change report and requires reporting to the Legislature.
• Moves up the date for the EAA reservoir project planning study to commence if Congressional approval of the post-authorization change report has not occurred.
• Clarifies that ongoing Comprehensive Everglades Restoration Plan (CERP) projects will continue to receive funding.
• Authorizes the district to begin planning and discussion with the owners of the C-51 Reservoir project to determine if the state should acquire or enter into a public private partnership for this water storage facility that will add approximately 60,000 acre feet of storage south of the Lake.
• Establishes the Everglades Restoration Agricultural Community Training Program in DEO for the purpose of stimulating and supporting training and employment programs, to match state and local training programs with identified job skills associated with non-agricultural employment opportunities in areas of high agricultural unemployment. The bill expresses the Legislature’s intent to promote the implementation of the Airglades Airport in Hendry County and an inland port in Palm Beach County to create job opportunities in areas of high agricultural unemployment.
• Establishes a revolving loan fund to provide funding assistance to local governments and water supply entities for the development and construction of water storage facilities.
• Revises the uses of the Water Protection and Sustainability Program Trust Fund to include the water storage facility revolving loan program.
• Provides funding for the reservoir projects, including an authorization to bond funds from the Land Acquisition Trust Fund (LATF). The total cost is reduced from $2.4 billion to approximately $1.5 billion, half of which could be paid by the federal government. The amendment includes an appropriation of $64 million from the LATF for the 2017-18 Fiscal Year.
• Allows for funds not spent on the reservoir projects to be used for other Everglades Restoration projects as provided in Legacy Florida.

The House companion is HB 761 by Representative Altman. HB 761 has three committee references.

Land Acquisition Trust Fund: SB 982 by Senator Bradley establishes a $30 million annual appropriation for projects dedicated to the restoration of the Indian River Lagoon System. The money will be distributed evenly to the St. Johns Water Management District and the South Florida Water Management District. It has passed its first committee. The House companion, HB 1033 by Representative Altman has been referred to three committees but has not been heard.

Land Acquisition Trust Fund: CS/SB 234 requires that the sum of $35 million be distributed from the Land Acquisition Trust Fund annually to the St. Johns River Water Management District for projects dedicated to the restoration of the St. Johns River and its tributaries or the Keystone Heights Lake Region. It has passed the full Senate and is in House messages. The House companion is HB 847 by Representative Payne, which has not yet been heard.

Aquifer Replenishment: HB 755 by Representative Albritton requires additional permit conditions for certain projects involving underground injection and authorizes DEP to develop specific rule criteria for advanced water treatment and to establish additional conditions for construction of advanced water treatment facilities and underground injection. It has passed its first committee. The Senate companion is SB 1438 by Senator Broxson, which has passed its first committee.

Public Notification of Pollution: Senator Galvano has filed legislation, SB 532 requiring reporting and public notice of pollution spills. Following on the heels of a sinkhole in a Mosaic settling pond and sewage spills in Pinellas County, the Governor had directed an emergency rule on public notification. The more permanent rule proposed by DEP was invalidated and the legislation is to direct further permittee and agency action in the event of a spill. Unlike the invalidated rule, the legislation keeps the public notification through the press a function of the agency. It will require agency rulemaking. It has passed the Senate and is in House messages. Representative Peters has filed the companion bill, HB 1065, which has not been heard.

Nutrient Pollution from Onsite Sewage Treatment and Disposal Systems: SB 874 by Senator Young requires the Department of Environmental Protection (DEP) to develop remediation plans for onsite sewage treatment and disposal systems as part of a basin management action plan in coordination with the Department of Health and relevant local governments and wastewater utilities if the DEP determines that remediation is necessary to achieve a total maximum daily load. The bill requires $20 million to be appropriated annually from the Land Acquisition Trust Fund. It has passed its first committee. The House companion, HB 551 by Representative Stone has not been heard.

Septic Tanks: HB 285 by Representative Fine was substantially amended to remove the requirement for a septic tank to be inspected before a sale of property if is located within an impaired waterway and its watershed. The current version requires the Department of Health to identify and report the location of all septic tanks in the state. The current bill also requires the seller of property to disclose to the purchaser either before or at the execution of the contract for sale the existence of a septic tank on the property. SB 1748 by Senator Stewart is the Senate companion. It has been referred to three committees and has passed one. HB 285 has passed the full House and is in Senate messages.

Reclaimed Water: HB 1357 by Representative Ponder and SB 1686 by Senator Simmons are companion bills relating to reclaimed water. The legislation directs OPPAGA to prepare an analysis of water supply projects; authorizes water management districts to promulgate rules to provide incentives for reuse; requires plans to be developed to eliminate existing discharges into surface waters; and provides a new definition for “direct potable reuse” for human consumption. The legislation also requires that DEP complete a report on reuse by October 10, 2018 and directs that rulemaking begin on July 1, 2019. HB 1357 has three committee references. It was scheduled to be heard in its first committee but was temporarily postponed. SB 1686 was also temporarily postponed in its first committee.

Agricultural Operations

Low-Voltage Electric Fences: SB 190 by Senator Artiles provides requirements for a low-voltage electric fence to be permitted as a low-voltage alarm system project. The bill has passed its first of three committees. The House companion, HB 241 by Representative Williamson, also has three committees of reference. The Senate bill has passed all committees and is on the Special Order Calendar for May 1. The House bill has passed the full House and is in Senate messages.

Industrial Hemp: HB 1217 by Representative Massullo bill authorizes a state university with a departmental or generalization specialization in Florida agriculture to conduct an industrial hemp research project. The research project is required to include hemp cultivation projects that specifically address the potential impact hemp may have on other crops commercially grown in Florida, including the impacts of plant pests and diseases, and any related vectors, as well as research on the invasive nature of industrial hemp. The research project is required to take place over a minimum of 10 semiannual crop rotations or 5 years, whichever is longer. It was temporarily postponed in its final committee. The Senate companion, SB 1726 by Senator Montford, has passed the full Senate and is in House messages.

Property Rights, Budget, and Taxes

The two budget chiefs, Senator Latvala and Representative Trujillo, found common ground on $40 million for 69 local water projects and some proviso language that gives direct policy guidance to state agencies. But other issues were handed off to the two leaders, including most environmental spending.

In the final conference committee meeting of the main appropriations chairs, the Senate accepted the House offer on water projects, leaving the rest of the agriculture and natural resources budget to be decided by Senate President Joe Negron and House Speaker Richard Corcoran. The most recent Senate position had been $45.5 million. The House offered $27.5 million in its plan that ended the talks at the subcommittee level. The budget will need to be complete by Tuesday for the Regular Session to end on time Friday.

Sales Tax Exemptions for Agricultural Products: HB 765 by Representative McClain revises maximum sales prices of certain farm trailers exempt from the sales and use tax, and exempts certain animal health products and agricultural items from tax. It has been referred to three committees. It is related to SB 1536 by Senator Perry which has passed two of three committees.

Agricultural Practices: HB 1231 by Representative Raburn exempts animal health products from sales tax and removes the the requirement for certain pesticide fees. It also provides that painted marks on trees identify posted land. The bill has passed the full House and is in Senate messages. It is similar to SB 1536 by Senator Perry, which has passed two of three committees.

Rural Economic Development Initiative: SB 600 by Senator Grimsley requires an analysis of the Rural Economic Development Initiative and rural areas of opportunity; revises legislative intent relating to the Rural Economic Development Initiative; and revises the duties, responsibilities, and membership of the Rural Economic Development Initiative. It has been referred to three committees and has passed two. The House companion, HB 333 by Representative Clemons has three committees and has passed two. Related provisions also appear in the controversial House economic development reform package, HB 7005, which has passed the full House and is in Senate messages.

Farm Share Program: HB 2971 is an appropriations project request for $3 million to the Department of Agriculture and Consumer Services to fund a project to provide food free of charge to families, children, senior citizens, and individuals in need in an effort to fight hunger and poverty throughout the state of Florida. It has passed its first of two committees.

Marijuana

Compassionate Use of Low-THC Cannabis and Marijuana: SB 406 by Senator Bradley is the Senate vehicle for Amendment 2 implementation. It has passed all committees. In its current form, the bill:

• Establishes requirements that a physician must meet before certifying a patient;
• Amends current criminal penalties to conform with other changes in the bill and establishing new criminal violations for patients and caregivers cultivating or purchasing marijuana from a source other than a medical marijuana treatment center (MMTC);
• Establishes requirements for caregivers including limiting a patient to one caregiver and a caregiver to one patient with certain exceptions and requiring that caregivers pass a Level 2 background screening, with certain exceptions for a caregiver who is a close relative;
• Requires the DOH to establish requirements for the licensure and certification of independent testing laboratories (ITL), a marijuana quality control program, and a seed-to-sale tracking program for marijuana;
• Grandfathers in existing dispensing organizations as MMTCs, adding five MMTCs by October 3, 2017, and increasing the overall number of MMTCs that may be registered when certain numbers of patients are registered on the compassionate use registry; and
• Requires MMTCs to maintain compliance with the representations made in their applications for registration and allowing the DOH to grant variances in certain circumstances.

The bill also creates the “Medical Marijuana Research and Education Act” and the Coalition for Medical Marijuana Research and Education within the H. Lee Moffitt Cancer Center and Research Institute, Inc. It was amended to create a cap limiting each MMTC to three retail facilities, but the sponsor indicated that the number will likely be increased before the bill is in final form.

Medical Use of Marijuana: HB 1397 by Representative Rodrigues creates a sales tax exemption for medical marijuana. It also provides implementing language for Amendment 2 and establishes medical marijuana testing laboratories. It includes an appropriation for $9,158,463. The bill has passed all committees and is on Third Reading.

Medical Marijuana Tax Projection: According to the Revenue Estimating Conference, there are currently 17,218 users allowed the current law. If DOH successfully finalizes the proposed rule without any changes by July 3, 2017, and begins issuing identification cards by October 3, 2017, an additional 88,687 users will come on the market gradually through June 2020. Under that scenario, sales totaling $44,068,238 are estimated for fiscal year 2017-18 resulting in sales tax collection of 2,521,956.

Department of Health Rulemaking: On January 17, DOH released the preliminary text of proposed rules for implementation of Amendment 2. The release comes ahead of five public hearings schedule for early next month, giving Floridians a chance to weigh in on the agency’s rules and regulations governing the state’s medical marijuana program. Under the proposed rule, only patients with one of 10 specific medical conditions, like HIV/AIDs or cancer, are eligible for medical marijuana. The rule does allow for further use, as long as the Florida Board of Medicine identifies which debilitating conditions it can be used for. The preliminary rule also states all medical marijuana treatment centers, which under new rules would be the same as a dispensing organization, must go through the same “approval and selection process” outlined in existing law. Those organizations are also “subject to the same limitations and operational requirements” currently outlined in state law.

Other Legislation of Interest

Division of Administrative Hearings: HB 1225 by Representative Fitzenhagen bill requires the director of DOAH to be a full-time ALJ employed by DOAH. The bill also removes the requirement for the director to be confirmed by the Senate.

The bill requires full-time ALJs to be appointed by the Governor from a list of three individuals nominated by a statewide nominating commission. It has passed the full House and is in Senate messages. The Senate companion, SB 1352 by Senator Young has passed all committees.

Renewable Energy Source Devices: SB 90 by Senator Brandes expands the current prohibition against the consideration of a renewable energy source device in determining the assessed value of real property. It has passed the full Senate and is in House messages. HB 1351 by Representative Rodrigues has passed all committees but was temporarily postponed on Second Reading. It also expands the increased assessment prohibition and tangible personal property exemption as authorized by constitutional amendment. As amended, the bill’s assessment provision is only applicable to renewable energy devices installed on non-residential property on or after January 1, 2018. The same effective date is indicated for the TPP exemption.

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If you have any questions, please contact our Government Relations, Lobbying & Administrative Law Team. To view the prior week’s update click here.