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Florida Swimming Pool Association
Pool and Spa Regulatory & Legislative Information
Taking action to protect your industry January 29, 2010 |
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Late-breaking News on Unemployment Compensation Tax
Governor Agrees to Delay Unemployment Compensation Tax Increase
By Kari Hebrank, FSPA Lobbyist
Responding to concerns raised by a coalition of business interests, including FSPA, Governor Crist announced that he would delay the unemployment compensation tax increase that takes effect in April until lawmakers can reduce it. Crist remarked that the tax increase goes against the state's efforts to strengthen businesses and create jobs to help Florida's economy recover. The unemployment compensation tax is based on a formula that includes unemployment compensation benefits paid to former employees over the last three years. Without a change, the minimum rate will go from $8.40 to $100.30 per employee and the maximum rate rises from $378 to $459. Part of the steep increase is due to the state's 11.8 unemployment rate that depleted the Unemployment Compensation Trust Fund, triggering a tax increase to replenish the fund. Moreover, the taxable wage base was increased from $7000 to $8500 to expedite the fund recovery.
In response to Crist's announcement, both Senate President Jeff Atwater (R-North Palm Beach) and Speaker of the House Larry Cretul (R-Ocala) agreed to work with lawmakers to provide relief to employers and would strive to pass legislation early in the Regular Session set to begin on March 2. Potential reforms include suspending the taxable wage increase ($7000-$8500) for two years and not implementing the Unemployment Compensation Trust Fund trigger. FSPA continues to fight for unemployment compensation tax relief and urges FSPA members to contact their local lawmakers to urge them act swiftly to pass UC tax relief.
PLEASE READ THE ORIGINAL ARTICLE BELOW FOR MORE DETAILS ON THE TAX:
Unemployment Compensation Tax Hike Creates Political Dilemma
By Kari Hebrank, FSPA Lobbyist
By now, your business should have received a tax notice from the Florida Department of Revenue indicating an increase in unemployment compensation tax that as an employer you must pay. And, if you are like most employers, you are probably scratching your head wondering why there is such a sharp increase in this year's projected tax.
Last session, the Florida Legislature shortened the time to recapture funds for the Unemployment Compensation Trust Fund (UC fund) from 4 years to 3 years through the year 2015 in order to infuse the trust fund more rapidly which is insolvent due to rising unemployment rates statewide. Since August, the state has been forced to borrow $839.5 million from the federal government, paying out $300 million each month in unemployment compensation claims. Next year, the Florida Legislature must begin repaying the loans, along with hundreds of millions of dollars accrued in interest.
Additionally, at the request of key business groups, the Legislature also increased taxable wages from the current $7000 to $8500 per employee to help replenish the trust fund more quickly. The unemployment compensation tax increase is automatic under state law, triggered when the balance of the fund dropped below 4 percent of taxable payroll last June. Interestingly, the trust fund had a $1.3 billion surplus last December prior to Florida's unemployment rate exceeding 11.5 percent. The Legislature also changed the fund balance adjustments -a positive fund balance was adjusted from 3.7% to 4%; a negative fund balance was adjusted from 4.7% to 5%--based on prior year payroll. Interestingly, the trust fund triggers in 1957 were 4% and 5% respectively, but were reduced in 2003 when the UC fund was "flush."
Employers will get a notice to pay the tax in March and the taxes are due in April. For those with financial hardships, they can spread out the payments. The rates are broken down in the following categories: Minimum rate (55% of all employers fall into this category); New Employer Rate; Experience Rate; and Maximum Rate. If there were no changes in 2010, the Minimum Rate per employee would have risen from $8.40 to $63; with the Legislative changes, the Minimum Rate will increase to $100.30 per employee. The Maximum Rate, currently $378 per employee, will rise to $459.
FSPA is working with a coalition of business groups to encourage lawmakers to either phase-in the tax increase or seek relief from the federal government by granting another year's grace period on loan repayments or forgive the loan entirely. Lawmakers face a political dilemma as they recognize that with Florida's 1.1 million unemployed and the rate rising monthly and the state already facing a budget shortfall of more than $2 billion, they cannot afford to roll back the tax hike, yet the impact to those businesses that are keeping Florida's weak economic engine running can also ill afford the tax hike.
Recently, democratic lawmakers in the Florida House have indicated a willingness to spearhead a proposal to the Obama administration that would ease the tax pain. Rep. Saunders (D-Key West) commented, "One of the few advantages I see these days of having Democrats in charge in Washington is that maybe we can be the ones who can help lead the charge to get our businesses a break."
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Proposed Water Quality Standards Harmful for Florida
By Kari Hebrank, FSPA Lobbyist
On Friday, January 15, the Environmental Protection Agency (EPA) distributed its proposed rule on numeric nutrient criteria for Florida's water bodies. This rule is the result of a lawsuit filed by the environmental group Earthjustice, and will likely attempt to impose upon our state the country's most stringent water quality regulations.
Every Florida business and resident will be impacted by these regulations. In February, the EPA is conducting three public hearings around the state and is welcoming written comments as well as public testimony. The EPA has indicated that they only expect to allow each person to comment for 5 minutes or less at each hearing, but attendance at these hearings is nevertheless critical to demonstrate the magnitude of this issue to all Floridians.
The dates and locations of the hearings are: · February 16, 2010: 1:00 p.m. to 5:00 p.m. and 7:00 p.m. to 10:00 p.m. at the Holiday Inn Capitol East, 1355 Apalachee Parkway, Tallahassee, FL 32301
· February 17, 2010: 1:00 p.m. to 5:00 p.m. and 7:00 p.m. to 10:00 p.m. at the Crowne Plaza Orlando Universal, 7800 Universal Boulevard, Orlando, FL 32819
· February 18, 2010: 1:00 p.m. to 5:00 p.m. and 7:00 p.m. to 10:00 p.m. at the Holiday Inn Palm Beach Airport, 1301 Belvedere Road, West Palm Beach, FL 33405
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"Amendment 4" Likely to Cost 267,247 Florida Jobs, Major Economic Study Says
Florida Business and Labor leaders come together to oppose amendment; officially launch "No on 4" campaign
(Tallahassee, FL - January 26, 2010) Florida business, civic and labor leaders gathered in Tallahassee on Tuesday to hear the report of a top Florida economist showing that Amendment 4 - a proposed change to the state constitution - would lead to heavy job loss and higher costs for Floridians.
"The losses of Florida jobs under the 'Most Likely Scenario' are very high," reported Tony Villamil, economist for the Washington Economics Group, the organization that conducted the study. "Amendment 4's passage will have potentially devastating consequences to Florida's economy at a time when the economic situation at both the state and national levels is uncertain and at a time when attracting new businesses to Florida is essential for the future recovery and prosperity of the state and its residents."
The study considers a "Modest" and a "Most Likely" economic impact scenario. The study does not predict a "Worst Case" scenario. According to the study: Under both scenarios, Florida's economic dynamism is lost. This would permanently impact the economic growth potential for Florida, causing a steady decline in the standard of living of all Florida residents. Further, permanently impacting employment and growth within major industries and job-generating activities.
"If you like the recession, you'll love Amendment 4," said Mark Wilson, President of the Florida Chamber of Commerce. "This amendment will cost jobs, hurt taxpayers and make it more expensive to live in Florida."
In an unprecedented show of unity, labor and business leaders agreed to jointly oppose Amendment 4.
"It's not too often that a union leader and a business leader agree on something," said Frank Ortis, President of the Florida State Council of Machinists and Aerospace Workers. "But we can all see how much Amendment 4 would hurt Florida's working families. And we are working together to defeat it."
Ortis and Wilson serve together on the board of Citizens for Lower Taxes and a Stronger Economy, Inc., the group formed to defeat Amendment 4. That organization is chaired by former South Bay Mayor and National League of Cities President Clarence Anthony.
"No single item on the 2010 ballot has the potential to weaken Florida's economy and hurt Florida's taxpayers more than Amendment 4," said Anthony. "If passed, this amendment will trap Florida's communities in gridlock."
The economic study indicates that Amendment 4 will also have a major impact on Florida taxpayers. According to the study: Additionally, Florida's tax revenues would sharply slow as a result of Amendment 4's passage as fewer commercial and residential properties will be developed due to the increased costs and uncertainty associated with each comprehensive land-use plan referendum. This would force local and state governments to either raise taxes or cut services. Public schools, public safety and local health care services would suffer from both the direct impact of Amendment 4 (delay construction until the next election) and the indirect impact of fewer tax revenues from which to fund needed operations and capital investments.
If Amendment 4 is adopted, Florida would become the guinea pig for a measure that has never been adopted in any other state in the country. However, the small Florida town of St. Pete Beach adopted a local version of Amendment 4 in 2006. Since then, the town has seen fewer jobs, higher tax rates and endless litigation at taxpayer expense.
"Our experiment in Amendment 4 has turned St. Pete Beach into a battleground for special interests," said Ward Friszolowski, the former Mayor of St. Pete Beach. "And at a time of economic hardship, it has caused extraordinary damage to our economy."
"I ask the voters of Florida to learn more about St. Pete Beach-- and to learn from our mistakes," said Friszolowski. "Amendment 4 supporters promise that they'll give you a 'say on growth.' Don't believe it. Don't let them do to Florida what they already did to my hometown."
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ABC and Crane Safety Coalition Win Fight Against Miami-Dade Crane Ordinance
By Peter Dyga, Associated Builders & Contractors
A landmark decision was issued yesterday by the 11th Circuit Court of Appeals, affirming the decision of the lower court in ABC and the Crane Safety Coalition's fight against Miami-Dade's faulty crane ordinance. For full details, please see the complete decision below.
ASSOCIATED BUILDERS AND CONTRACTORS FLORIDA EAST COAST CHAPTER, as an Organization and Representative of its Members, SOUTH FLORIDA ASSOCIATED GENERAL CONTRACTORS OF AMERICA, INC., as an Organization and Representative of its Members, FLORIDA CRANE OWNERS COUNCIL INC., as an Organization and Representative of its Members, CONSTRUCTION ASSOCIATION OF SOUTH FLORIDA, as an Organization and Representative of its Members, Plaintiffs-Appellees, v. MIAMI-DADE COUNTY, FL, a political subdivision of the State of Florida, Defendant-Appellant. ASSOCIATED BUILDERS AND CONTRACTORS FLORIDA EAST COAST CHAPTER, as an Organization and Representative of its Members, SOUTH FLORIDA ASSOCIATED GENERAL CONTRACTORS OF AMERICA, as an Organization and Representative of its Members, FLORIDA CRANE OWNERS COUNCIL INC., as an Organization and Representative of its Members, CONSTRUCTION ASSOCIATION OF SOUTH FLORIDA, as an Organization and Representative of its Members, Plaintiffs-Appellees, v. MIAMI-DADE COUNTY, Defendant-Appellant.
Nos. 08-13549. Non Argument Calendar, 09-10678. Non Argument Calendar United States Court of Appeals, Eleventh Circuit. January 26, 2010. Before EDMONDSON, BIRCH and KRAVITCH, Circuit Judges.
PER CURIAM: Miami-DadeCounty ("County") appeals (1) the district court's grant of a preliminary injunction prohibiting the enforcement of part of Miami-Dade County Ordinance Number 08-34 ("Ordinance") and (2) the district court's subsequent grant of summary judgment and a permanent injunction against the enforcement of the same section of the Ordinance. In both instances, the district court held that the Occupational Safety and Health Act ("OSH Act"), 29 U.S.C. §§ 651-78, preempted a section of the Ordinance mandating wind load standards for tower cranes and hoists.[ 1 ] Considering these appeals together, we affirm the district court's order of summary judgment and grant of a permanent injunction and dismiss the appeal of the preliminary injunction as moot.
I. Background On March 18, 2008, Miami-DadeCounty passed and adopted the Ordinance, which set binding regulations for the construction, installation, operation, and use of tower cranes, personnel, and material hoists.
Soon thereafter, several building and contracting groups ("plaintiff-appellees") sought declaratory and injunctive relief to prohibit enforcement of the Ordinance. In part, plaintiff-appellees argued that the Ordinance violated the OSH Act because it was a non-approved state regulation of occupational safety and health issues governed by federal standards. The OSH Act's regulations seek to ensure occupational safety by requiring compliance with either the manufacturer's specifications for erection, maintenance, and operation of cranes and hoists[ 2 ] or, if those are unavailable, compliance with the determinations of a qualified engineer competent in the field. 29 C.F.R. § 1926.550(a)(1). If a state desires to override these federal occupational safety standards, the state must submit a plan for federal approval. 29 U.S.C. § 667.
After a hearing, the district court temporarily enjoined the enforcement of certain provisions of the Ordinance, concluding that they were preempted by the OSH Act. In relevant part, the district court held the Ordinance's hurricane wind load standard of 140 miles per hour for tower cranes was a non-approved occupational safety regulation preempted by the OSH Act's regulations. The County timely appealed this preliminary injunction.
Before we could address that appeal, plaintiff-appellees filed a motion for summary judgment asking the court to permanently enjoin the enforcement of the Ordinance that the district court held was preempted in the preliminary injunction. The district court granted the motion for summary judgment motion and permanently enjoined the County from implementing the wind load standards. The County appealed. We review these appeals together.
II. Discussion Once an order of permanent injunction is entered, any preliminary injunction merges with it, and appeal may be had only from the order of permanent injunction. Sec. & Exch. Comm'n v. 1st Fin. Group of Tex., 645 F.2d 429, 433 (5th Cir. 1981).[ 3 ] In this case, the district court's order of summary judgment granted a permanent injunction, thus merging the preliminary injunction into the permanent injunction and mooting the appeal of the preliminary injunction. Thus, the only issues properly before us are the district court's grant of summary judgment and the permanent injunction. We review the district court's grant of summary judgment de novo. Gilmour v. Am. Nat'l Red Cross, 385 F.3d 1318, 1321 (11th Cir. 2004).
In Gade v. National Solid Wastes Management Ass'n, the Supreme Court reasoned that Congress intended to establish "uniform, federal occupational and health standards" in the OSH Act to avoid "duplicative, and possibly counterproductive, regulation." 505 U.S. 88, 102 (1992). The Court concluded that "the OSH Act precludes any state regulation of an occupational safety or health issue with respect to which a federal standard has been established, unless a state plan has been submitted." Id. (emphasis added). Because it is undisputed that the Ordinance had not been submitted as a state plan, we must determine (1) whether the Ordinance's wind load standard is an "occupational safety or health issue" and, if so, (2) whether it is preempted because the OSH Act's regulations establish a superseding "federal standard."
The County first argues that the Ordinance's wind load standards are not preempted because these standards do not regulate an "occupational safety or health issue." As the County explains it, because "falling cranes kill people, workers and non workers alike," the standards are directed toward public safety during hurricanes and not occupational safety. In other words, the County's position is that the Ordinance has a singular purpose: to protect public safety and not workers.
This argument is not persuasive. Construction job sites are closed to the public and it is undisputed that the Ordinance's wind load standards regulate how workers use and erect tower cranes during the course of their employment, thus directly affecting occupational safety. Furthermore, the County failed to identify a single incident in which a crane accident injured a member of the general public during a hurricane. To the extent that the Ordinance does provide a benefit to the general public, the regulation is a dual purpose law. A state law is still an occupational standard even if it serves the dual purposes of protecting both public and occupational safety: "That such a law may also have a nonoccupational impact does not render it any less of an occupational standard for the purposes of pre-emption analysis." Gade, 505 U.S. at 107. We therefore conclude that the wind load standards in the Ordinance are "occupational safety or health" regulations.
The County next argues that the OSH Act does not set a "federal standard" for wind load in its regulations and therefore cannot preempt the Ordinance. The Code of Federal Regulations defines a "standard" as "the adoption or use of one or more practices, means, methods, operations, or processes, reasonably necessary to provide safe or healthful employment and places of employment." 19 C.F.R. § 1911.2(c). Under this definition, a plain reading of 29 C.F.R. § 1926.550 reveals that the OSH Act's regulations create a federal "standard": Employers operating cranes or hoists on a job site must comply with either the manufacturer's specifications (the vast majority reflect a national consensus and are identical) or the limitations set forth by a competent expert in the field. As the former Deputy Assistant Secretary of Labor testified at thepreliminary injunction hearing, the OSH Act "exists at this moment and binds the employer to operate all his cranes on a construction site in accordance with the specifications of the manufacturer." It is immaterial that the OSH Act's regulations do not set a uniform wind load standard; every job site with a crane or hoist has a federally mandated safety standard. Thus, we conclude that the OSH Act's regulations set a federal standard for wind load standards.
Finally, the County argues that the OSH Act unconstitutionally delegates legislative power to set federal occupational safety standards to manufacturers by failing to provide an "intelligible principle" to govern the use of this delegated legislative power. See J.W. Hampton, Jr. & Co. v. United States, 276 U.S. 394 (1928).
This argument is also unavailing. The OSH Act provides an intelligible principle, directing the Secretary of Labor to adopt standards that are in accordance with the "national consensus standard." 29 U.S.C. § 655(a). In this case, the majority of crane manufacturers have reached a consensus by adopting the European Standard, requiring cranes to accommodate a wind load of 93 miles per hour. By adopting these consensus specifications, the OSH Act's wind load regulations, therefore, conform with an intelligible principle and are constitutionally valid. Faced with the same constitutional challenge, the Sixth Circuit reached the same conclusion: "[T]he requirement that employers comply with manufacturer's load limits is not an unlawful delegation because the manufacturer's limits reflect the `national consensus standard' that Congress authorized the Secretary to adopt." Towne Constr. Co. v. Occupational Safety & Health Review Comm'n, 847 F.2d 1187, 1189 (6th Cir. 1988). The Sixth Circuit further reasoned that "the physical impossibility of requiring OSHA independently to set safety standards for every industry job classification and industrial substance in the country adequately explains and justifies Congress's decision to allow the Secretary to adopt the fruits of private efforts as governmental standards." Towne, 847 F.2d at 1190. The Third Circuit used similar reasoning in concluding that the Occupational Safety and Health Administration could rely on information from chemical manufacturers in setting standards. Associated Builders & Contractors, Inc. v. Brock, 862 F. 2d 63, 68-69 (3d Cir. 1988). We therefore refuse to invalidate the OSH Act's wind load standards.
III. Conclusion Because the Ordinance contains non-approved occupational safety or health regulations conflicting with a federal standard, the Ordinance is preempted. Therefore, the district court's grant of summary judgment and the issuance of a permanent injunction are AFFIRMED.
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Florida Swimming Pool Association
2555 Porter Lake Drive
Sarasota, Florida 34240
941-952-9293 |
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