FHBA Legislative Update
Thursday, September 2, 2010

Governor Takes Action on FHBA Priorities

The Florida Home Builders Association (FHBA) is pleased to report that four of your six 2010 Top Legislative Priorities passed during the 2010 Legislative Session have been signed into law by Governor Charlie Crist.

Specifically, Governor Crist signed bills that:

  • Prohibit mandatory residential fire sprinklers,
  • Validate permit extensions and DRI exemptions,
  • Fund the second phase of a passive alternative septic treatment study, and
  • Remove unnecessary barriers to condo bulk-buyers.

While FHBA appreciates the Governor’s support of these great bills, there is great disappointment in the Governor’s veto of HB 1565 – a rulemaking bill that would have reduced agency rules that harm private sector job growth. Throughout the 60-day legislative session, HB 1565 did not have one vote cast against it.

Rounding out FHBA’s Top Legislative Priorities was an affordable housing bill that would have lifted the funding cap on the Sadowski Trust Fund program. Despite having bi-partisan support, that measure did not pass during the Legislative Session.

Below is a brief synopsis of your FHBA legislative victories:

Fire Sprinklers – Signed Into Law
With the passage of SB 846 by Sen. Mike Bennett (R-Bradenton), the installation of mandatory residential fire sprinklers in one- and two-family dwellings will not be added to the Florida Building Code. Without the passage of this good bill, the Florida Building Commission would have been forced to include mandatory residential fire sprinklers in the 2010 Florida Building Code because of a directive from the International Code Congress. Florida is one of more than 20 states that filed legislation to block this mandate. Special thanks to Rep. Robert Schenck (R-Spring Hill) for sponsoring the House companion legislation.

Condo Bulk-Buyers – Signed Into Law
With the passage of SB 1196 by Sen. Mike Fasano (R-New Port Richey), investors wishing to make bulk condominium purchases of more than seven units will no longer have to accept the legal and financial liabilities of the original developer. For too long, investors have sat on the sideline – choosing not to buy condo’s in bulk – during a time when Florida desperately needed their help to reduce inventory and return stability to the market. The passage of SB 1196 by Sen. Fasano removes the condo bulk-buyer barriers and will help ensure a stronger economic recovery. Special thanks to Rep. Ellyn Bogdanoff (R-Ft. Lauderdale) for sponsoring the House companion legislation.

Permit Extension & DRI Exemptions – Signed Into Law
Because the growth management reform law that resulted from the 2009 Legislative Session is tied up in a lawsuit, there has been great uncertainty in the development industry. Under SB 1752, better known as the Jobs Bill, that uncertainty has been removed. This good bill contained the Florida Home Builders Association’s (FHBA) growth management “patch” language which provides certainty to building professionals that took a permit extension or DRI exemption in reliance on the 2009 growth management bill – SB 360. SB 1752 by Sen. Don Gaetz (R-Milton) provides additional benefits to the building industry and Florida’s economy. Specifically, it opens the window for additional permits to be extended, encourages Florida-based manufacturers to invest in machinery and equipment, accelerates tax credits for capital-intensive industries in return for adding new, high-paying jobs, and addresses needs of Florida’s space industry. It should be noted that FHBA’s growth management “patch” language was originally in HB 7099 by Rep. Dorothy Hukill (R-Port Orange). However, HB 7099 died because of an unfriendly amendment. FHBA appreciates Rep. Hukill’s hard work and support.

Performance-Based Septic Treatment Systems – Signed Into Law
When lawmakers passed Florida’s $69 billion budget (HB 5001), it included $2 million for Phase II of the Department of Health (DOH) Septic Tank Nitrogen Reduction Study – a strong step toward reducing cost burdens on current and future homeowners. The funding will allow DOH to field-test different technologies and strategies in a variety of soils and locations throughout Florida in both wet and dry seasons. Funding this study was vital. That’s because various state agencies and local governments in Florida have looked at establishing strict nitrogen limitations for existing and new onsite septic systems.  Recently, the federal EPA has proposed even more strict numeric nitrogen limitations on Florida water bodies. If not the federal government, DEP will be proposing nitrogen limits early next year.  Eventually, these rules are expected to have the effect of mandating high-performance treatment technology for onsite systems – costing upwards of $15,000 per home (new and existing). In addition to the burdensome cost of this system, it has not been proven to achieve nitrogen reduction levels in Florida’s climate. Without completion of this study, builders and homeowners will have no alternatives available to handle new government mandates coming down the pike. Estimates for upgrading homeowners to high performance, engineer-designed septic systems in the Wekiva region alone are well into the billions of dollars. New nitrogen restrictions with no other solutions than high-performance systems will amount to an overbearing regulatory burden and fee increase to citizens and businesses.

Regulatory Streamlining – Vetoed
Despite Florida’s 12.3 percent unemployment rate, some state agencies have moved forward with rulemaking efforts that would thwart job growth and eliminate even more jobs. But under a bill passed by the Florida Legislature, those job killing regulations will be prevented. With the successful passage of HB 1565 by Rep. Chris Dorworth (R-Heathrow), state agencies will be required to complete a Statement of Estimated Regulatory Costs when these rules have a negative economic impact on Florida’s private sector job growth and small businesses. If the regulatory impact is more than $1 million statewide, the rule must then be reviewed and ratified by the legislature to become effective. Special thanks to Sen. Bennett for sponsoring the Senate companion legislation, and to Rep. Matt Gaetz (R-Fort Walton Beach) for serving as the prime House co-sponsor.

FHBA appreciates the strong grassroots support of each and every member that played a role in achieving these victories. Your phone calls, letters and emails made a significant impression with lawmakers and helped ensure your priorities were received favorably. We could not have done it without you.

LEGISLATIVE NEWS