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HomeMy WebLinkAboutR-02-1032J-02-812 9/10/02 RESOLUTION NO . 02-1032 A RESOLUTION OF THE MIAMI CITY COMMISSION DIRECTING THE CITY ATTORNEY TO TAKE ALL ACTIONS NECESSARY, INCLUDING BUT NOT LIMITED TO, FILING SUIT OR JOINING THE SUIT FILED BY THE FLORIDA LEAGUE OF CITIES, TO CHALLENGE THE CONSTITUTIONALITY OF SENATE BILL 108, ENACTED IN SECTION 112.18, FLORIDA STATUTES, THAT EXTENDS THE PRESUMPTION FOR TUBERCULOSIS, HEART DISEASE, AND HYPERTENSION TO LAW ENFORCEMENT OFFICERS. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Attorney is directed to take all actions necessary, including but not limited to filing suit or joining the suit filed by the Florida League of Cities, to challenge the constitutionality of Senate Bill 108, enacted in Section 112.18, Florida Statutes, that extends the presumption for tuberculosis, heart disease, and hypertension to law enforcement officers. CITY COMMr41S&M- H NLEETING S E P 1 1 2002 02-1032. Section 2. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.'''/ PASSED AND ADOPTED this 11th ATTEST: PRISCILLA A. TIHOMPSON CITY CLERK day of September 1 2002. j a,&&* " "� & • AWFW - , - - I ,4a*1 - MANUEL A. DIAZ, MAYLR APPROVED., S TOJORM AND CORRECTNESSt/ 001 A 6558:MVT:BSS 1� If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 2 of 2 02-1032 CITY OF MIAMI CITY ATTORNEY'S OFFICE MEMORANDUM TO: Members of the City Commissioner , FROM: Alejandro Vilarello, City DATE: September 6, 2002 4 RE: Proposed Resolution — A League of Cities, etc./ to Join Lawsuit by Florida At the request of Mayor Manuel A. Diaz, please consider the attached resolution which authorizes the City Attorney to join the lawsuit filed by the Florida League of Cities challenging the constitutionality of Senate Bill 108, enacted in Section 112.18, Florida Statutes, that extends the presumption of the Heart Bill to law enforcement officers. cc: Manuel A. Diaz, Mayor w/encl. Carlos A. Gimenez, City Manager w/encl. Raul Martinez, Chief of Police w/encl. Elvi Alonso, Agenda Coordinator w/encl. 02-1092 -- 08/22/01 11:48 FL LEAGUE OF CITIES -> 305 416 1901 NO. 389 IP02 FLORIDA LEAGUE OF CITIES, 301 South Bronough Street, Suite 300 • Post Office Box 1757 • Tallahassee, FL 32302-1757 Telephone (850) 222-9684 • Suncom 278-5331 . Fax (850) 222-3806 • Web site: www.flclties.com August 22, 2002 Mimi Turin, Assistant City Attorney City of Miami 3500 Pan American Drive Miami, Florida 33233 Re: Police Officers' Disability Presumption Litigation Dear Ms. Turin: VIA FACSIMILE (305) 416-1801 We appreciate the City of Miami's interest in participating in the legal challenge of the police officers' disability presumption legislation. Ours will undoubtedly be an uphill battle; but, with your support, we have an opportunity to force the state legislature to respect our cities' home rule rights. We filed the complaint in. Leon County Circuit Court on Monday, August 19, 2002. Generally, the complaint alleges four (4) counts: the state legislature provided public employees a retirement benefit and failed to contemporaneously fund, it; the legislation violates the single subject rule; the legislation impairs existing collective bargaining agreements; and the legislation is an unfunded mandate. Your city's charter and ordinances authorize either the mayor or the commission to commence litigation on behalf of the city. If your city is willing to be a party to the litigation, please send the League a letter substantially similar to the attached sample. The League will pay the costs of the litigation. In the litigation, we allege the legislation is an unfunded mandate. To successfully do so, we need your help to demonstrate its financial impact on municipalities. I am therefore requesting you or your staff take a moment to promptly complete the attached survey and return it to my attention. Additionally, I'd appreciate it if you would provide me with a copy of your Comprehensive Accounting and Financial Report (CAFR) for FY 2000/2001 or, if it is unavailable, your Independent Financial Audit for FY 2000/2001. If neither is available, I'd appreciate a copy of the Annual Financial Report (AFR) you submitted to the Department of Banking and Finance for FY 2000/2001. President Scott Bleck, Mayor, Dade City First Vice President Carrtels Sterece, Councilperson. Royal Palm Beach - Second Vice President Dottie Reeder, Mayor,Seminole Executive Director Michael Slttig - General Counsel Merry Morrison, Jr. . 02-103 b9/22i01 11:48 FL LEAGUE OF CITIES 4 305 415 1801 N0.389 D03 August 22, 2002 Page Two If you have any questions, please don't hesitate to call Kraig Conn or me at 850/222- 9684. Again, thank you for your consideration. With kind regards, I am, Sincerely, Harry ortison, Jr. General Counsel HMj/thr attachments 02--1032 08/22%01 11:48 FL LEAGUE OF CITIES 3 305 415 1801 MO.389 D0? Police Disability Presumption Passes Legislature By Kraig Conn The Florida Legislature passed a bill requiring (lie provision of workers' compensation and disability benefits to city and county law enforcement officers suffering certain diseases without proof the disease is caused by their employment. The Legislature amended the disability presumption language onto CS/CS/SB 108 (R. Smith), a workers' compensation bill. The bill expands an existing "heart and lung" presumption for firefighters and state law enforcement officers to include city and county law enforcement officers. Governor Bush signed the bill on May 8, 2002 and it was designated Chapter Law 2002-236, The new law means hypertension, heart disease or tuberculosis suffered by city and county law enforcement officers is presumed to be job related, and, therefore, covered under workers' compensation and disability benefits. This new law will result in a significant wifunded mandate for cities and counties regarding workers' compensation and disability expenses. The law is effective July 1, 2002. Since 1965, Florida retirement law, section 112.18, Florida Statutes, has provided that firefighters who are totally or partially disabled due to tuberculosis, heart disease or hypertension are presumed to have suffered an "in the line of duty" disability. Based on this presumption (commonly referred to as the heart and lung presumption), disabled firefighters receive enhanced retirement benefits without proof the disease was caused or related to employment duties. This presumption is based on the fact that firefighters frequently enter into smoke-filled, and possibly toxic, areas as an aspect of their employment. While the disability presumption was initially created for firefighters, it was expanded to state law enforcement officers in 1999. Under the law, the employer must prove contraction of any of these diseases or conditions is as a result of off -the -job circumstances. This is an extremely difficult presumption to overcome, and not one single employer has ever successfully proven that tuberculosis, heart disease or hypertension was not job related. Under the bill, this same presumption will now be applied to all 40,000 city and county law enforcement officers in Florida. The difficulty with expanding the disability presumption to city and county law enforcement officers arises primarily in the area of workers' compensation. Florida courts have held the heart and lung presumption contained in section 112.18, Florida Statutes, is applicable to workers' compensation claims. Therefore, expansion of a retirement related disability presumption to include city and county law enforcement officers will, by necessary implication, make the disability presumption applicable to their workers' compensation claims. Florida's workers' compensation system has one of the highest premium rates in the country, and many cities and counties are self-insured. Expansion of the heart and lung presumption to city and county law enforcement officers will cost taxpayers a significant amount in additional workers' compensation and disability expenses. 02-1032 06/22/01 11:48 FL LEAGUE OF CITIES i 305 416 1801 NO.389 008 During its 2001 Legislative Conference, the Florida League of Cities' Legislative Committee on Criminal Justice, Ethics and Personnel adopted as its legislative priority the desire to support legislation requiring disabilities claimed as job-related, such as hypertension or heart disease, as well as HIV, hepatitis or cancer, be proven by the weight of the evidence, and not by statutory presumption. Cities and counties are not advocating denial of disability or workers' compensation benefits to law enforcement officers. It is the duty of local government to provide competitive benefits and to provide injured workers with quality care so they can return to their duties. Rather, cities and counties advocate that entitlement to these benefits be appropriately shown by competent evidence. This is a fair standard and should apply to any employee seeking to obtain an employment benefit. Florida's cities understand the inherent risks faced by law enforcement officers, and typically address these matters through the collective bargaining process. However, Florida's cities oppose expanding the disability presumption because it does not take into account that tuberculosis, heart disease or hypertension can be caused by lifestyle or other non -work related factors. If a statutory presumption is to be considered at all, it should be limited to employees who comply with non-smoking and other health and. physical fitness standards set by the employer. Also, the benefit should not apply to workers' compensation unless the facts in the case support the claim. These alternatives would create sound public policy recognizing the risks faced by our law enforcement officers, but allowing cities to better control the rising costs of workers' compensation and disability expenses. Cities and counties want to save taxpayers from the potential harm of paying workers' compensation and disability costs for injuries unrelated to the job. The goal is to shed light on the flawed public policy behind disability presumptions and limit their expansion to other categories of employees, such as law enforcement officers. Kraig Conn is Legislative Counsel and Deputy General Counsel ,fir the rlorida League Cities. ies. 02-1412 88:22/01 11:48 FL LEAGUE OF CITIES y 305 415 1901 FLORIDA LEAGUE OF CITIES, I,ronough Street, Suite 300 ♦ Post Office Box 1757 Telephone (850) 222-9684 ♦ Suncom 278-5331 Web site: www.flcltles.com NEWS NO.389 P09 ► Tallahassee, FL 32302-17576 Fax (850) 222-3806 FOR IMMEDIATE RELEASE Contact: John Thomas (850) 222-9684 August 19, 2002 20 Florida cities fight legislation with lawsuit Suit f led today argues against constitutionality of police presumption bill passed last session. TALLAHASSEE — The Florida League of Cities filed a lawsuit today challenging the constitutionality of a new law that makes cities pay workers' compensation benefits to city police officers that suffer from hypertension or heart disease — even if the condition is not related to theirjob. The law does not provide city governments with the money needed to pay for this new benefit. Twenty cities in Florida and the League argue the law violates a constitutional amendment approved by the voters of Florida in 1992 saying the state' legislature cannot require cities or counties to implement a law that costs them money without also providing the money to pay for it. "The constitutional amendment was approved by the voters to keep local taxes local and to prevent the state legislature from spending local taxes on state priorities," said Mike Sittig, Executive Director of the Florida League of Cities. IF SB 108 remains in effect, city governments likely would have to increase property taxes to pay for the added benefits. "The legislature gave the police union bosses what they wanted and ordered the cities to pay the bill. Once again, the legislature is writing checks out of our checkbook and that's exactly what the voters intended to stop when they passed the constitutional amendment in 1992," said Jim Naugle, Mayor of Fort Lauderdale. President Carmela Starace, Vice Mayor, Royal Palm Beach ♦ First Vice President Dottie Reader, Mayor, Seminole i Second Vice President Clay Ford, Vice Mayor. Gulf Breeze Executive Director Michael Sittig ♦ General Counsel Harry Morrison, Jr. 02-1032 08%22101 11:48 FL LEAGUE OF CITIES 4 305 415 1801 NO.389 910 Article VII, Section 18 of the Florida Constitution provides for cities to decide for themselves if they want to provide these kind of benefits to police officers and prohibits the state legislature from mandating cities to provide these extra benefits without providing the money to pay for them. "Making city governments charge their citizens for a policy they didn't create is like ordering the most expensive entree on a menu and charging it to someone else's table. You benefit at another's expense," said George Meros, the attorney filing the suit on behalf of the cities. The cities involved in the suit are: City of Belle Glade City of Brooksville City of Coconut Creek City of DeFuniak Springs City of Eagle Lake City of Edgewood City of Fort Lauderdale City of Green Cove Springs City of Hialeah City of Holmes Beach City of Inverness City of Lake City City of Madison City of Melbourne City of Ocala City of Rockledge City of Sebring City of Valparaiso Town of Windermere City of Winter Garden 02-1032 66/22/01 11:48 FL LEAGUE OF CITIES y 305 416 1801 N0.389 011 IN THE CIRCUIT COURT OF THE SECOND JUDICIAL CIRCUIT IN AND FOR LEON COUNTY, FLORIDA CITY OF FORT LAUDERDALE; CITY OF HIALEAH; CITY OF BELLE GLADE; CITY OF BROOKSVILLE; CITY OF COCONUT CREEK; CITY OF DEFUNIAK SPRINGS; CITY OF EAGLE LAKE; CITY OF EDGEWOOD; CITY OF GREEN COVE SPRINGS; CITY OF HOLMES BEACH; CITY OF INVERNESS; CITY OF LAKE CITY; CITY OF MADISON; CITY OF MELBOURNE; CITY OF OCALA; CITY OF ROCKLEDGE; CITY OF SEBRING; CITY OF VALPARAISO; CITY OF WINDERMERE; CITY OF WINTER GARDEN; AND FLORIDA LEAGUE OF CITIES, INC., Plaintiffs, 0 THE STATE OF FLORIDA, Defendant. -^ o o Case NoUck U0)3 � S COMPLAINT FOR DECLARATORY AND INJUCTTVE RELIEF Plaintiffs, the Cities of Fort Lauderdale; Hialeah; Belle Glade; Brooksville; Coconut Creek; Defuniak-Springs; Eagle Lake; Edgewood; Green Cove Springs; Holmes Beach; Inverness; Lake City; Madison; Melbourne; Ocala; Rockledge; Sebring; Valparaiso; Windermere; Winter Garden, and the Florida League of Cities (hereinafter the "League"), hereby sue defendant, the State of Florida (the "State"), and allege: NATURE OF THE ACTION 1. This is an action for a declaratory judgment pursuant to Chapter 86 of the Florida Statutes seeking a declaration that Chapter 2002-236 of the Laws of Florida (hereinafter "Chapter 2002-236") (a true and correct copy of Chapter 2002-236 is attached hereto as Exhibit A), 02-1032 C;, rC"" w C� -^ o o Case NoUck U0)3 � S COMPLAINT FOR DECLARATORY AND INJUCTTVE RELIEF Plaintiffs, the Cities of Fort Lauderdale; Hialeah; Belle Glade; Brooksville; Coconut Creek; Defuniak-Springs; Eagle Lake; Edgewood; Green Cove Springs; Holmes Beach; Inverness; Lake City; Madison; Melbourne; Ocala; Rockledge; Sebring; Valparaiso; Windermere; Winter Garden, and the Florida League of Cities (hereinafter the "League"), hereby sue defendant, the State of Florida (the "State"), and allege: NATURE OF THE ACTION 1. This is an action for a declaratory judgment pursuant to Chapter 86 of the Florida Statutes seeking a declaration that Chapter 2002-236 of the Laws of Florida (hereinafter "Chapter 2002-236") (a true and correct copy of Chapter 2002-236 is attached hereto as Exhibit A), 02-1032 09i22i01 11:48 FL LEAGUE OF CITIES 4 305 415 1801 NO.389 D12 r A violates the Floiida and United States Constitutions. Chapter 2002-236 violates the following constitutional provisions: 1) Article X, Section 14 of the Florida Constitution — (limitation on changes to state retirement and pension systems); 2) Article III, Section 6 of the Florida Constitution — (requirement that every law embrace but one subject); 3) Article I, Section 10 of the Florida and United States Constitutions — (prohibition against governmental impairment of contract obligations); and 4) Article VII, Section 18 of the Florida Constitution — (prohibition against unfunded mandates). 2. Chapter 2002-236 was originally an act relating to workers' compensation, amending Chapter 440 of the Florida Statutes. In its final form, Chapter 2002-236, Section 3 (hereinafter "Section 3 ), amends Section 112.18 of the Florida Statutes to include a provision that any condition or impairment of health of any law enforcement or correctional officer (including those employed by municipalities), caused by heart disease, hypertension, or tuberculosis, shall be presumed to be suffered in the line of duty. The modification is embodied in a law that encompasses more than one subject, imposes significant financial burdens upon Plaintiffs without providing a source of funding for the obligation, and impermissibly impairs Plaintiffs' contractual rights and interferes with Plaintiffs' contractual obligations. JURISDICTION AND VENUE 3. This Court has jurisdiction over this action pursuant to Art V, § 20, Fla. Const.; § 263.012, Fla. Stat; and § 86.011, Fla. Stat. 4. Venue lies in this Court because Leon County is the situs of State government. See Art. II, § 2, Fla. Const.; See also § 47.011, Fla. Stat.. 2 02-032 08/22/01 11 48 FL LEAGUE OF CITIES 3 305 416 1801 NO. 389 D13 5 C� 7 8 PARTIES Plaintiff, the City of Fort Lauderdale ("Fort Lauderdale"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Fort Lauderdale had more than 2,571 full-time employees, including more than 502 law enforcement officers. Fort Lauderdale provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. Fort Lauderdale has a collective bargaining agreement with its law enforcement officers. Fort Lauderdale's workers' compensation insurance program is self-funded. Plaintiff, the City of Hialeah ("Hialeah"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Hialeah had more than 1,322 full-time employees, including more than 317 law enforcement officers. Hialeah provides a retirement plan to employed law enforcement officers. Thin plan is maintained pursuant to Chapter 185 of the Florida Statutes. Hialeah has a collective bargaining agreement with its law enforcement officers. Plaintiff, the City of Belle Glade ("Belle Glade"), is.a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Belle Glade had more than 236 full-time employees, including more than 45 law enforcement officers. i Belle Glade provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. Plaintiff, the City of Brooksville ("Brooksville'), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Brooksville had more than 141 full-time employees, including more than 18 law enforcement officers. Brooksville provides a retirement plan to employed law enforcement officers. The plan is 3 02-1032 08/22/01 11:48 FL LEAGUE OF CITIES 4 305 416 1801 NO.389 014 l , I i partially maintained pursuant to Chapter 185 of the Florida Statutes. Some employees' plans are maintained as part of the Florida Retirement System (hereinafter "FRS"). 9. Plaintiff, the City of Coconut Creek ("Coconut Creek', is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Coconut Creek had more than 301 full-time employees, including more than 80 law enforcement officers. Coconut Creek provides a retirement plan to employed law enforcement officers. The plan is a part of FRS. Coconut Creek has a collective bargaining agreement with its law enforcement officers. 10. Plaintiff, the City of DeFuniak Springs ("DeFuniak Springs"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, DeFuniak Springs had more than 73 full-time employees, including more than 14 law enforcement officers. Defuniak Springs provides a retirement plan to employed law enforcement officers. The plan is a part of FRS. ) 1. Plaintiff, the City of Eagle Lake ("Eagle Lake"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Eagle Lake had more than 19 full-time employees, including more than 5 law enforcement officers. Eagle Lake provides a retirement plan to employed law enforcement officers. The plan is not maintained pursuant to Chapter 185 of the Florida Statutes. The retirement plan is a defined contribution plan. 12. Plaintiff, the City of Edgewood. ("Edgewood', is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Edgewood had more than 15 fill -time employees, including more than 11 law enforcement officers. Edgewood provides a retirement plan to employed law enforcement officers. The plan is 4 02-J032 08/22/01 11:48 FL LEAGUE OF CITIES 3 305 416 1801 NO.389 015 maintained pursuant to Chapter 185 of the Florida Statutes. Edgewood has a collective bargaining agreement with its law enforcement officers. 13. Plaintiff, the City of Green Cove Springs ("Green Cove Springs'), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Green Cove Springs had more than 90 full-time employees, including more than 18 law enforcement officers. Green Cove Springs provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. 14. Plaintiff, the City of Holmes Beach ("Holmes Beach"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Holmes Beach had more than 35 full-time employees, including more than 12 law enforcement officers. Holmes Beach provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. 15. Plaintiff, the City of Inverness ("Inverness"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Inverness had more than 61 full-time employees, including more than 13 law enforcement officers. Inverness provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. Inverness has a collective bargaining agreement with its law enforcement officers. 16. Plaintiff, the City of Lake City ("Lake City"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Lake City had more than 248 full-time employees, including more than 43 law enforcement officers. Lake City provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. 5 02-1032. 08/22/01 11:48 FL LEAGUE OF CITIES 4 305 415 1801 NO.389 015 17. Plaintiff, the City of Madison ("Madison"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Madison had more than 57 fitll-time employees, including more than 13 law enforcement officers. Madison provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. 18. Plaintiff, the City of Melbourne ("Melbourne"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Melbourne had more than 824 full-time employees, including more than 159 law enforcement officers. Melbourne provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. Melbourne has a collective bargaining agreement with its law enforcement officers. 19. Plaintiff, the City of Ocala ("Ocala"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Ocala had more than 966 full-time employees, including more than 154 law enforcement officers. Ocala provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. Ocala has a collective bargaining agreement with its law enforcement officers. 20. Plaintiff, the City of Rockledge ("Rockledge"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Rockledge had more than 210 full-time employees, including more than 46 law enforcement officers. Rockledge provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. Rockledge has a collective bargaining agreement with its law enforcement officers. 6 02-1032 08.'22/01 1148 FL LEAGUE OF CITIES y 305 416 1801 NO.389 017 21. Plaintiff, the City of Sebring ("Sebring"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Sebring had more than 154 full-time employees, including more than 34 law enforcement officers. Sebring provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. Sebring has a collective bargaining agreement with its law enforcement officers. 22. Plaintiff, the City of Valparaiso ("Valparaiso"), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Valparaiso had more than 55 full-time employees, including more than 9 law enforcement officers. Valparaiso provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. 23. Plaintiff, the City of Windermere ("Windermere'), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Windermere had more than 19 full-time employees, including more than 9 law enforcement officers. Windermere provides a money purchase plan to employed law enforcement officers. The plan is not maintained pursuant to Chapter 185 of the Florida Statutes. The plan is a defined cpntribution plan. 24. Plaintiff, the City of Winter Garden ("Winter Garden'), is a municipal corporation existing under the laws of the State of Florida. As of the effective date of Chapter 2002-236, Winter Garden had more than 200 full-time employees, including more than 35 law enforcement officers. Winter Garden provides a retirement plan to employed law enforcement officers. The plan is maintained pursuant to Chapter 185 of the Florida Statutes. 25. Plaintiff, Florida League of Cities, is a not-for-profit corporation organized and existing under the laws of the State of Florida. Its membership consists of more than 400 02-x032 0822/01 11:48 FL LEAGUE OF CITIES 4 305 416 1801 NO.389 Pie municipalities and charter counties located in the State. Its purpose is to work for the general improvement of municipal government and its efficient administration in the State and to represent its members before the various legislative, executive and judicial branches of government on issues pertaining to the welfare of its members. Its members employ more than 16,000 full-time law enforcement officers. 26. Defendant, the State of Florida, is a sovereign state, obligated to follow the limitations on its authority set forth by the People of the State in the Florida Constitution and the United States Constitution. GENERAL ALLEGATIONS 27. Former Section 112.18 of the Florida Statutes provided that firefighters and state law enforcement officers who suffered a health impairment due to heart disease, tuberculosis, or hypertension, resulting in total or partial disability, were presumed to have suffered the impairment in the line of duty. 28. Chapter 2002-236, among other things, amends Section 112.16 to include local law enforcement and state correctional officers. 29. Chapter 2002-236 is a logrolled compilation of multiple subjects grouped together to gain the support of a majority of the Florida Legislature to ensure its passage. 30. Chapter 2002-236, although entitled "an act relating to workers compensation," includes provisions regarding workers compensation, disability benefits, and even insurance fraud. See Exhibit A generally. The law amends no less than four Chapters of the Florida Statutes, 31. By passing Chapter 2002-236, the State is creating a benefit that must be financed by Plaintiffs without providing a funding source. 32. The statute has been in effect since July 1, 2002. There is a bona fide, actual, present and practical need for a declaration to preserve Plaintiffs' rights and property. 0 02-1032 08/22/01 11:48 FL LEAGUE OF CITIES 4 305 416 1801 NO.389 919 33. 34. 35 36. 37. 38. 39 COUNT Article X, Section 14 Plaintiffs incorporate and adopt by reference paragraphs 1 through 32 of this Complaint as if fully set forth herein. Article X, Section 14 of the Florida Constitution sets forth: A governmental unit responsible for any retirement or pension system supported in whole or in part by public funds shall not after January 1, 1977, provide any increase in the benefits to the members or beneficiaries of such system unless such unit has made or concurrently makes provision for the funding of the increase in benefits on a sound actuarial basis. Article X, Section 14 of the Florida Constitution binds governmental units, including the State, to provide for the funding of any increase in pension benefits on a sound actuarial basis concurrent to the passage of such increase. Article 111, Section I of the Constitution of the State of Florida vests the legislative power of the state in its Legislature. During the 2002 legislative session, exercising its legislative power, and therefore its concomitant control over the benefits system applicable to public employees, the Legislature passed Chapter 2002-236, Laws of Florida ("Chapter 2002-236"), which amended Section 112.18, Florida Statutes ("Section 112.18'x. The amendment expands the application of a statutory presumption of accidental disability so that the presumption will apply to all law enforcement officers and certain correctional officers, including those employed by municipalities. Section 112.18(1), Florida Statutes, entitled "Firefighters and law enforcement officers; special provisions relative to disability," provides (in relevant part): Any condition or impairment of health of any Florida state, municipal, county, port authority, special tax district, or fire control district firefighter or any law enforcement officer or correctional officer as defined in s. 943.10(1), (2), or (3) caused by tuberculosis, z 02-1032 08;/22/01 11:49 FL LEAGUE OF CITIES + 305 416 1901 NO.389 020 40. 41. 42. 43 44. 45 46. heart disease, or hypertension resulting in total or partial disability or death shall be presumed to have been accidental and to have been suffered in the line of duty unless the contrary be shown by competent evidence. Section 112.18(l) has a significant fiscal impact on Plaintiffs, who are ultimately responsible for paying the disability benefits to public employees within the statutory framework created by the Legislature. Florida Statutes define "(p]ension or retirement benefit" to mean "any benefit, including a disability benefit, paid to a member or beneficiary of a retirement system or plan as defined in subsection (l)." § 112.625(6), Fla. Stat. Disability benefit plans funded by the Plaintiffs fall squarely within the plans covered by Section 112.625. See § 112.625(l), Fla. Stat. Any increase in a disability benefit to a pension benefit plan within the ambit of Section 112.625 supported in whole or in part by public funds is, therefore, an increase in "the benefits to the members or beneficiaries of' a pension system. Accordingly, since Chapter 2002-236 necessarily increases the disability benefits coverage to certain public employees - whose benefits are paid in whole or in part by public funds — It necessarily results in an increase in the benefits to the pension system for such employees. Neither prior to nor concurrent with the enactment of Chapter 2002-236 was any provision Z ade by the Legislature, or any other entity, for the funding of the increase in benefits provided by the statute. The House Message Summary dated March 20, 2002 ("HMS") (a true and correct copy of which is attached hereto as Exhibit B), is ripe with evidence that the Florida Legislature was fully cognizant of the effect the law would have on municipalities. Brooksville, Coconut Creek and DeFuniak Springs are municipalities taking part in the FRS. These municipalities would be required to pay for the increase in pension benefits provided for in Chapter 2002-236. 10 02-1032 08.,22/01 1148 FL LEAGUE OF CITIES 4 305 416 1801 47 48. 49 50. 51 52. 53 54 NO. 389 921 The HMS acknowledges, with regard to municipalities involved in the FRS, that " [i]t is possible, however, that as more members use in -line -of -duty benefits, it would produce actuarial losses that would slowly emerge. If such costs occur, they would have to be funded through contribution rate increases as recommended in future valuations of the FRS." Exhibit B at 1-2. As such, Chapter 2002-236 did not ensure that the FRS was funded in such a way that the retirement fund is able to meet its continuing obligations as and when they mature. The HMS also states that the impact on local goverrunents would range between $5.3-6.2 million. Id. House Bill 5 ("HB 5") contained virtually identical language to Sections 3 and 4 of Chapter 2002-236. See Fla. HB 5 (2002). HB 5 died in committee before it was revived in the logrolling effort described infra at Count II. The Staff Analysis for HB 5 provides that municipalities maintaining their own pension plans would be required to expend an "unknown amount of funds" for higher benefits because of the new provisions. (Attached as Exhibit C is a true and correct copy of the Staff Analysis for HB 5 at 1, 8). Tfie State has presented no sound actuarial basis for funding the increase of benefits provided by Chapter 2002-236. Since the Legislature, in enacting Chapter 2002-236, did not make `provision for the funding of the increase in benefits on a sound actuarial basis," Chapter 2002-236 violates Article X, Section 14 of the Constitution of the State of Florida. COUNT II Article III, Section 6 -- Single -Subject Violation Plaintiffs incorporate and adopt by reference paragraphs 1 through 53 of this Complaint as if fully set forth herein. 11 02-032 08.,22/01 11:48 FL LEAGUE OF CITIES 4 305 416 1901 061 56 57. 58. 59 .a 61 NO. 389 D22 The Florida Constitution requires that "[e]very law shall embrace but one subject and matter properly connected therewith, and the subject shall be briefly expressed in the title." Art.111, Section 6, Fla. Const. The procedural history of Chapter 2002-236 presents clear evidence of "logrolling," a practice where several separate subjects are rolled into a single bill in order to aggregate votes and secure passage of all disparate subjects in the bill. Chapter 2002-236 contains multiple subjects and does not manifest a logical and natural oneness of purpose. Chapter 2002-236 is captioned "(a]n act relating to workers' compensation... " The law, however, relates to disability benefits, workers' compensation benefits, retirement benefits, and even general insurance fraud. Chapter 2002-236 was Committee Substitute for Committee Substitute for Senate Bill 108 ("SB 108"). The original form of Committee Substitute for Committee Substitute for SB 108, which was passed and referred from the Florida Senate to the Florida House of Representatives (hereinafter the "Florida House" or `•`House', was devoid of any reference to disability benefits, or anti -fraud. (Attached hereto as Exhibit D is a true and correct copy of SB108E1 as published on February 28, 2002). The Florida House made significant amendments to SB 108 and specifically included, among other things, the full text of House Bill 5 ("HB 5'J (a true and correct copy of HB 5 is attached hereto as Exhibit E) and certain other anti -fraud insurance provisions. HB 5 was entitled "an act relating to disability in the line of duty.. . ." Exhibit E at 1. HB 5 died in a Florida House of Representatives committee. 12 02-1032 08.-22/01 1148 FL LEAGUE OF CITIES 4 305 416 1801 NO.389 1723 i. is 62. In fact, Florida Senate Bill 278 ("SB 278") (a true and correct copy of SB 278 is attached hereto as Exhibit F), was also a bill that was virtually identical to HB 5. SB 278, like HB 5, died in a Florida Senate committee. 63. In the second to last week of the regular scheduled legislative session, the Florida House amended SB 108, a wholly unrelated bill, to include HB 5 ("First Amendment") and thus "revived" the dead bill and sent it back to the Florida Senate. 64. In the last week of the regular scheduled legislative session, the Florida House again amended SB 108 to include, among other things, the anti -fraud provision ("Second Amendment"). 65. The amended bill was sent back to the Florida Senate on the third to last day of the regular scheduled legislative session. The Florida Senate voted on the bill during the last day of legislative session. 66. The Florida Senate initially moved for the Florida House of Representatives to recede from the First Amendment. The motion, however, was reconsidered and the Florida Senate then concurred with all amendments to SB 108. 67. Due to the unconstitutional logrolling, and the fact that SB 108 had to be voted on by the Florida Senate on the last day of legislative session, the Florida Senate was faced with the prospect of 1) letting SB 108 (and the Senate backed provisions of it as sent to the House in its original form) die on the Senate Floor; 2) jeopardizing the fate of the bill by sending it to the Florida House on the last day of session and requesting the House to recede from the unwanted amendments; or 3) succumbing to the unlawful logrolling of issues and pass the bill anyway. The Senate passed the bill as amended by the House and the bill was presented to the Governor. 13 02-1032 Oe/22/01 11:48 FL LEAGUE OF CITIES 4 305 415 1801 NO.389 024 r. 1 68. Disability in the line of duty is a subject and matter separate and distinct from workers compensation and insurance fraud. 69. Workers' compensation benefits are separate and distinct from disability and retirement benefits. In fact, Section 112.13 of the Florida Statutes (2001), the same Chapter amended by Chapter 2002-236, provides that, " f t]be insurance permitted and allowed under this law shall be in addition to, and in no manner in lieu of the provisions of the Workers' Compensation Law," making a clear distinction between workers' compensation and disability benefits. 70. Moreover, the anti -fraud provision relates to the insurance industry as a whole. This, again, is a subject and matter distinct from either workers' compensation or disability presumptions. 71. Because Chapter 2002-236 embraces multiple subjects, among them the separate and distinct areas of workers' compensation, disability law, and anti -fraud, the Chapter law violates the single subject requirement of Article III, Section 6 of the Florida Constitution. COUNT III Article 1, Section 10 - Impairment'of Contract 72. Plaintiffs incorporate and adopt by reference paragraphs 1 through 71 of this Complaint as dfully set forth herein. 73. The Constitution of the State of Florida provides, " f njo bill of attainder, ex post facto law or law impairing the obligation of contracts shall be passed." Art I, § 10, Fla. Const. 74. Certain Plaintiffs have entered into collective bargaining agreements with the collective bargaining agents of law enforcement officers. These agreements contain terms and conditions of employment including benefits Plaintiffs are obliged to provide to such employees. 14 OB./22/01 11:48 FL LEAGUE OF CITIES 4 305 416 1801 NO.389 025 75. Presumptions similar to the presumption contained in Section 112.18 of the Florida Statutes are appropriately subjects to be considered during negotiations between the Plaintiffs and the agents of such parties. 76. By specifically omitting such presumptions in the current collective bargaining agreements, the agents of such employees bargained away the potential benefit from such a presumption. 77. Chapter Law 2002-236 severely impairs Plaintiffs' contract rights by placing obligations on Plaintiffs to provide additional benefits to certain employees. Plaintiffs were not obligated to provide, nor the employees entitled, to these additional benefits under the terms of the original plans. 78. In addition, Chapter Law 2002-236 requires Plaintiffs to provide this increased level of benefits to such employees in all future plans. 79. By requiring benefits not provided for in the original collective bargaining agreements, Chapter 2002-236 jeopardizes the solvency of the current plans and jeopardizes the provision of employee benefits thereunder. 80. Chapter 2002-236 now causes a severe, permanent, irrevocable, retroactive, and immediate change in the contractual relationship of the parties. 81. The State of Florida possesses no significant and legitimate public purpose for enacting Chapter 2002-236. The Florida Legislature cannot state an important, general, societal problem that necessitates the impairment of the contract rights of the Plaintiffs and employees in this instance. 82. Accordingly, the State has impaired the contractual obligations of Plaintiffs in violation of Article I, Section 10 of the Florida Constitution. 15 02-1032 08/22/01 11:48 FL LEAGUE OF CITIES 4 305 416 1801 NO.389 D26 COUNT IV U.S. Const. Art. I, § 10 — Impairment of Contract 83. Plaintiffs incorporate and adopt by reference paragraphs 1 through 82 of this Complaint as if fully set forth herein. 84. The State has impaired the contractual obligations of Plaintiffs in violation of Article 1, Section 10 of the United States Constitution. COUNT V Article VII, Section 18 -- Unfunded Mandate 85. Plaintiffs incorporate and adopt by reference paragraphs 1 through 84 of this Complaint as if fully set forth herein. 86. Article VII, Section 18 of the Florida Constitution provides that: No county or municipality shall be bound by any general law requiring such county or municipality to spend funds or to take an action requiring the expenditure of funds unless the legislature has determined that such law fulfills an important state interest and unless: funds have been appropriated that have been estimated at the time of enactment to be sufficient to fund such expenditure; the legislature authorizes or has authorized a county or municipality to enact a funding source not available for such county or municipality on February 1, 1989, that can be used to generate the amount of funds estimated to be sufficient to fund such expenditure by a simple majority vote of the governing body of such county or municipality; the law requiring such expenditure is approved by two-thirds of the membership in each house of the legislature; the expenditure is required to comply with a law that applies to all persons similarly situated, including the state and local governments; or the law is either required to comply with a federal requirement or required for eligibility for a federal entitlement .... 87. Chapter 2002-236 requires municipalities and counties to expend additional funds to provide certain employee benefits. 88. The 1045 acknowledges, with regard to localities involved in the Florida Retirement System, that " [i]t is possible, however, that as more members use in -line -of -duty benefits, it would produce actuarial losses that would slowly emerge. If such costs occur, they would have to #80,7V, 16 02-1032 08.122/01 11:48 FL LEAGUE OF CITIES 3 305 416 1801 N0.389 D27 be funded through contribution rate increases as recommended in future valuations of the FRS." Exhibit Bat 1-2. 89. With regard to non -FRS localities, a majority of localities, the HMS acknowledges "there will be additional expenses passed along to those participating units of government whose employees make such claims." Exhibit B at 2. 90. The HMS also acknowledges that the impact on local governments would range between $5.3-6.2 million. Id. 91. Accordingly, the passage of Chapter 2002-236 has a significant fiscal impact on Plaintiffs. 92. The State of Florida possesses no important state interest for enacting Chapter 2002-236 and cannot, therefore, compel Plaintiffs' compliance with the provisions of Chapter 2002-236. 93. To the extent such an interest can be imputed through the Florida Legislature's conclusory recitation of an important state interest, it is patently erroneous. 94. Accordingly, the State has imposed an unfunded mandate on Plaintiffs in violation of Article VII, Section 18 of the Florida Constitution. 17 42"1032 08./22/01 11:48 FL LEAGUE OF CITIES 4 305 415 1801 WHEREFORE, Plaintiffs pray that this Court: NO.389 P28 (1) Declare that Chapter 2002-236 of the Laws of Florida violates Article X, Section 14 of the Florida Constitution and is null and void; and (2) Declare that Chapter 2002-236 of the Laws of Florida violates Article I, Section 6 of the Florida Constitution and is null and void, and (3) Declare that Chapter 2002-236 of the Laws of Florida violates Article L Section 10 of the Florida Constitution and is mull and void; and (4) Declare that Chapter 2002-236 of the Laws of Florida violates Article I, Section 10 of the United States Constitution and is null and void; and (5) Declare that Chapter 2002-236 of the Laws of Florida violates Article VII, Section 18 of the Florida Constitution and is null and void; and (6) To permanently enjoin the State and any and all state officers from enforcing the unconstitutional provisions of Chapter 2002-236 of the Laws of Florida; and (7) Grant any and all further relief as the interest of justice may require. Respectfully submitted, Dated: q - 0 D, rge KfAeros Florida Dfir No. 0263321 Alex S. Nakis Florida Bar No. 0538221 GRAY, HARRIS & ROBINSON, P.A. Post Office Box 11189 Tallahassee, Florida 32302-3189 Telephone: 850-222-7717 Telecopi er: 850-222-3494 Attorneys for Plaintiffs 18 02--1032