Florida 2008-9 Legislative Update

The Sun-Senitnel has an article giving an update regarding laws to go in effect July 1, 2009.


Cigarette tax
Florida's cigarette tax increases by $1 per pack, to $1.34. The tax on other tobacco products, including pipe and smokeless tobacco, also goes up by a similar rate. Cigars are exempt from the increase. With the hike, Florida's cigarette tax -- previously unchanged since 1990 and among the lowest in the nation -- is now slightly higher than average. The extra $1 tax is expected to generate more than $900 million in income, used to fund cancer research and defray Medicaid costs.

Pill mills
Despite privacy concerns, anyone who buys addictive prescription drugs at pain clinics will be reported to a state database designed to crack down on clinics and doctors that distribute painkillers. Florida becomes the 39th state to create such a pain-pill database, but it could take a while to gear up. The state has to raise millions from private sources to operate the database and the Department of Health has until October 2010 to instruct pain clinics and their doctors on how to report their sales.

Seat belts
Drivers in Florida can now be pulled over for not wearing their seat belts -- and get slapped with tickets that could run more than $100 depending on the county. Until now, drivers could only be cited for not wearing their seat belts if they were pulled over for something else, such as speeding. The state fine for seat-belt violations is $35, but counties can tack on additional fees and court costs.

Insurance
Customers with state-run Citizens Property Insurance Co. will see their premiums rise, for the first time in two years. Most of Citizens' 1 million policyholders, the majority of whom live in South Florida, will see rates rise 10 percent a year for at least five years, beginning Jan. 1. Private insurers also are likely to raise premiums in 2010, although they'll still have to get permission from the state Office of Insurance Regulation. A change to state law provides a quicker process for private insurers to boost premiums up to 10 percent a year.

Property tax appeals
Florida property owners will now have an easier time winning an appeal if they think a county appraiser valued their homes too high. The burden is now on county appraisers to justify their values. In prior years, homeowners had to clear a high legal hurdle to prove the government appraisal was wrong. With the change, more homeowners should be able to win reductions on their tax bills through quasi-judicial Value Adjustment Boards, state analysts predict.

KidCare
Parents who lose their jobs -- or can no longer afford health care premiums -- will now have an easier time enrolling their children in KidCare, a federal-state subsidized health care program for children under 18. The waiting period to switch from private insurance to KidCare has been reduced to two months, from six months. And parents who fall behind on the $15 or $20 monthly co-pay for KidCare will have to wait only 30 days to re-enroll, instead of 60 days. The state also cut down administrative barriers to KidCare enrollment. For example, income eligibility now is verified electronically rather than in person. A family of four making $44,000 or less is eligible for KidCare, which currently insures about 1.5 million Florida children.

Bright Futures
Changes to popular but expensive Bright Futures scholarships will make the program less lucrative for college students. Now, Bright Futures students will receive a flat scholarship award, from $95 to $126 per credit hour, rather than the traditional scholarship that covered up to 100 percent of tuition costs. The flat rate will not cover this year's 8 to 15 percent tuition hikes at state universities, meaning students will pay potentially thousands more out of pocket for each year in school.

Prepaid college
Parents who save for their children's education through so-called 529 prepaid plans will now have additional flexibility to transfer the money to private and out-of-state colleges and career centers. Until now, parents could only get the full benefit from 529 savings plans if their children enrolled in Florida public universities and community colleges.

Phone rates
Florida's home phone service is now deregulated, with the Public Service Commission no longer having authority to set rates and service standards. Under the new system, phone companies such as AT&T will be allowed to raise rates with no state oversight on most home phone packages, by up to 10 percent a year. Telecommunications executives, though, point out that competition is driving prices down rather than up. In addition, phone companies will be able to post their rate schedules online rather than with the PSC. The changes also expand the state's Lifeline program, which provides subsidized basic phone service to the poor. A single person making less than $16,245 will now qualify for free or reduced-cost phone service.

First-responder fees
Cities and counties are now banned from charging a so-called "crash tax," a concept once considered by Davie and other municipalities. Local governments are now prohibited from charging a first-responder fee for a police officer to respond to the scene of an accident or for ambulance rides.