Government

Pensions

Sen. Mike Fasano (R-New Port Richey) is leading a charge to do away with the Florida Retirement System and move public workers into a defined contribution plan similar to a 401(k). Fasano says the current system of guaranteed benefits exposes taxpayers to too much financial risk. His bill (S 660), which would take effect in July, would make all new employees participate in a defined contribution plan. Rep. John Wood (R-Haines City) and Rep. Steve Precourt (R-Orlando) are sponsoring similar legislation (HB 413) in the House.

SBA Oversight

Chief Financial Officer Alex Sink has been encouraging her fellow Cabinet members to revamp the oversight of the State Board of Administration, the public agency that oversees $133 billion worth of the state’s public investments, including the pension fund for 1.1 million current and retired public employees. Sink would like to add an expert in finance and a participant/beneficiary to the SBA’s board of trustees, increasing it from three members to five. She’s also recommended that the SBA hire an independent, external auditor and that the SBA’s Investment Advisory Council and board receive annual fiduciary training.

But Gov. Charlie Crist and Attorney General Bill McCollum in December punted any decision about changing oversight of the SBA to the Legislature. Rep. Robert Schenck (R-Spring Hill), chairman of the Governmental Affairs Policy Council, says he supports McCollum’s approach. Rather than expanding the SBA’s board, McCollum has proposed expanding the Investment Advisory Council and changing the SBA’s internal audit procedures.

Cost Benefit Analysis

Rep. Steve Crisafulli (R-Merritt Island) has reintroduced a bill (HB 93) that would require legislation to be reviewed for its fiscal cost, as well as its benefit, to taxpayers. Currently, lawmakers are privy only to the potential cost associated with legislation. Crisafulli’s bill would require legislative staff to provide a full analysis of bills, including the potential revenue creation, when submitted to the Legislature for consideration. The Florida Chamber of Commerce is championing the move. Sen. Mike Haridopolis (R-Merritt Island) will offer companion legislation in the Senate.

Contingency Fees

Florida Attorney General Bill McCollum is again pushing legislation that would cap the amount of money outside attorneys hired by the state could earn from the state. Legislation, sponsored by Sen. John Thrasher (R-Jacksonville), would specifically prohibit the Attorney General’s Department of Legal Affairs from entering into a contingency fee contract with a private attorney unless the AG makes a written determination prior to entering into the contract that the contingency fee is cost-effective and in the public interest. It would also cap contingency fees at $50 million. Paul Jess, general counsel for the Florida Justice Association, says he can’t understand why McCollum would want to tie the hands of any future attorney general. “We think that is very shortsighted. No one can foresee what the future is going to bring.”

Tags: Politics & Law, Government/Politics & Law