Legislation that overhauls how state taxes on insurance premiums are distributed to help fund municipal police and fire pension passed the Florida House 112-4 Friday.
The bill has already cleared the Senate and now goes to Gov. Rick Scott, whose approval is not guaranteed.
Scott’s administration has reinterpreted state law to give cities more flexibility to cut pension benefits while retaining their premium tax funds. The legislation approved Friday would overrule that decision and put more restrictions on how cities can use premium tax money.
The Florida League of Cities and groups that support reducing pension costs, such as the Florida Chamber of Commerce, oppose the legislation while police and fire unions support it.
The conflict dates back to a 1999 law signed by former Gov. Jeb Bush. That legislation mandated that all increases in premium tax revenue go towards funding additional pension benefits for police and firefighters. Cities that cut their benefits below a certain level risked losing state funding.
Many city officials support the way Scott’s administration reinterpreted the 1999 law to give cities more flexibility to cut benefits without jeopardizing state money.
House bill sponsor Travis Cummings, R-Orange Park, said he does not believe Scott’s position could pass the Legislature and that the municipal pension bill worked out this session “is extremely fair and balanced.”
