Florida Senate Committee on Community Affairs Considers Bill (SPB 7002) to Redefine “Insignificant Fiscal Impact” relating to Unfunded Mandates

On October 4, 2011, the Senate Committee on Community Affairs is considering a proposed committee bill (SPB 7002) that would define an “insignificant fiscal impact” in relation to unfunded mandates as an annual amount not greater than $.10 per citizen annually.  The bill was drafted pursuant to a Senate Interim report that recommended a revision of the existing definition.  To view the report, click here.

In 2010, a lower Florida court decision indicated there may be a need for statutory clarification of the definition of “insignificant fiscal impact” in Florida’s Constitution, which generally describes state “mandates” on local governments as general laws requiring counties or municipalities to spend funds, limiting their ability to raise revenue, or reducing the percentage of a state-shared tax revenue.

Article VII, Section 18 of the Florida Constitution limits the ability of the Florida Legislature to enact laws that are mandates.  Any law passed by the Legislature that has such an effect requires at least a two-thirds vote of the membership of each house and, for a mandate that requires the expenditure of funds, a finding of important state interest.  However, there are a number of exemptions, one of which is for laws that have an “insignificant fiscal impact.”

While clarifying the law may assist the courts, the Legislature, and local governments in determining whether a law is a mandate, it also may help prevent intergovernmental litigation, thereby saving taxpayer dollars.

Nevertheless, by passing this bill, the Legislature could preclude itself from arguing that larger fiscal impacts are “insignificant.”

To view the meeting packets from the September 20 and October 4 Committee meetings, click on the hyperlinks below:

• September 20, 2011
  • Presentations
    • Florida Department of Economic Opportunity Executive Director Doug Darling relating to the establishment of the new Department
    • Florida Division of Community Development Chief of Comprehensive Planning Mike McDaniel, “Implementation of the Community Planning Act (HB 7207)”
    • Florida Division of Community Planning Director Tom Beck, “Insignificant Fiscal Impact”
• October 4, 2011
  • Presentations
    • Florida Department of Economic Opportunity – Special Districts Information Program Specialist Jack Gaskins, Jr., “Special Districts Information”