Politics

Session time set for PIP, taxes

Personal injury protection laws and property taxes will be addressed this month.

By JENNIFER LIBERTO and ALEX LEARY, Times Staff Writers
Published October 2, 2007

Florida Gov. Charlie Crist calls for an expansion of the special session dealing with the budget to include automobile insurance personal injury protection and another special session to be called to work on property taxes in a press conference.
	[AP photo]

TALLAHASSEE - After a weekend working the phones, Gov. Charlie Crist persuaded reluctant legislators to devote time in this week's special session to resurrecting the state's no-fault auto insurance laws.

Legislative leaders had said last week they didn't want to add debate over personal injury protection laws, which expired early Monday, to this week's special session on cutting $1-billion from the budget.

But Crist argued that PIP was "not too difficult to lift," given that legislative negotiators, Sen. Bill Posey, R-Rockledge, and Rep. Ellyn Bogdanoff, R-Fort Lauderdale, had already come up with a compromise to extend the no-fault system. The governor's office hosted the industry negotiations that led to the deal.

"It became very clear to me as we got closer to this day that we had an opportunity to, because of Senator Posey's good work, and Representative Bogdanoff's good work, have personal injury protection go forward and get rid of some of the fraud," Crist said.

Also, Crist and leaders of the House and Senate agreed to return later this month -- in what would be the Legislature's fourth special session this year -- to try again to cut property taxes. A judge recently knocked their last attempt off the Jan. 29 ballot.

The House leaders had wanted to add PIP to this special session. Some in the Senate, especially Senate President Ken Pruitt, an expert on the state budget, were concerned that PIP and the plethora of special interests that follow the issue would get in the way of the budget, the only issue lawmakers are constitutionally mandated to address.

Despite Crist's confidence, not everyone believes in the PIP compromise.

Auto insurers oppose it and some lawmakers have expressed doubt. Pruitt released a tempered statement explaining his turnaround on the issue, while pointing out that there is "no legislative agreement on PIP."

"The governor believes the sunset of PIP is an important issue to the state. As I have said before - when an issue is a priority to the governor, then it is a priority for me," Pruitt said. "It is now up to membership to decide the issue."

By contrast, redoing property taxes requires more work and deserves its own special session, Crist said. Pruitt, in particular, agrees.

Property taxes suddenly re-emerged as an issue last week after a state judge struck the proposed super homestead exemption plan from the Jan. 29 ballot.

The judge said the ballot language is misleading because it does not fully explain that Save Our Homes, the 3 percent cap on annual assessments, would be phased out under the new exemptions, worth up to $195,000 on a $500,000 home.

The state is appealing the decision, but Crist and others view it as an opportunity to rework the plan, which is getting lukewarm reception from the public.

One thing is sure, Crist said: The state must come up with something. He said he had dinner in South Florida on Friday and "person after person was like, 'You've got to get about the business of cutting these property taxes some more.'"

"Your heart bleeds for them," Crist said.

One possibility is the concept of "portability," which would allow people to carry their accrued Save Our Homes benefit when they move. Crist campaigned on portability and the concept was part of an early Senate plan. Crist also may try to revive his plan to double the $25,000 homestead exemption.

Time and internal division could work against a new plan. The budget session will last until at least Oct. 12, leaving just over two weeks for property taxes. Putting an item on the Jan. 29 ballot requires 90-day notice.

A bigger threat is philosophical differences between the more moderate Senate and House Speaker Marco Rubio, who has been talking about doing more on taxes ever since the last tax deal was signed. Democrats also have the ability to spike any deal because putting an item on the special election ballot requires a three-fourths vote.

"If we're going to do anything, it'll have to be simple and limited," said Sen. Steve Geller, D-Cooper City, an advocate for portability.

Fast Facts:

PIP repercussions

Allowing PIP to expire and then dithering about bringing it back has created tremendous confusion for Florida drivers and insurance agents, said St. Petersburg Allstate agent Gus Espinosa. "It's been a terrible interruption to business," he said. Legislators "don't realize the amount of cost, inconvenience and stress this is putting us through. Half your time is eaten up answering questions about PIP and the worst part about it is that you don't have a good answer."

Espinosa said last month was his worst for sales in more than a year because customers hesitated to act while PIP was undecided. Monday "everyone has been calling me to go ahead and now I have to tell them that they're changing their minds again." He said legislators should drop PIP and require drivers to carry bodily injury insurance.

Helen Huntley, Times staff writer

[Last modified October 1, 2007, 23:18:22]