Legislative Update

Bring On 2010!!

By Nancy Stewart,
Lobbyist and General Council
Professional Opticians of Florida

Many have struggled during 2009 -so as we all turned the calendar page, with the hopes of improved prosperity and a fresh start.

The Legislature has struggled too. As you may know, the Florida Legislature met in a Special Session in December solely for the purpose of addressing commuter and high-speed rail issues. The idea was to make changes to existing rail systems: commit $17 million to the South Florida Tri-Rail system; and, purchase existing rail from CSX for use by commuters between DeLand and Poinciana) in order to prove to the federal government that Florida is supportive and committed to rail transportation.

The laws and funding they passed in December allowed Florida to qualify for the federal dollars that were available for high-speed rail projects. These federal dollars would be used to build high-speed rail between Tampa and Orlando to start, with a connection from Orlando to Miami in the future. The competition between States for these dollars was fierce. Both the Florida House and Senate worked through the opposition issues and ultimately concluded their business earlier than planned. To their credit, they stuck to the agenda and did not delve into other things.

The Regular Session begins on March 2, 2010. Probably the biggest issue they’ll face again this year is the budget. Over the last quarter there has been a slight increase in state revenues in relation to projections of what they thought they would have to spend. That will certainly be helpful and will ease the pain of future budget cuts somewhat. We had been facing a $ 2.6-$ 2.8 billion shortfall for building the budge for the next budget cycle.

So you can see a $ 348 million improvement is helpful but won’t solve the problem. As they figure out next year’s budget, POF will work hard to maintain the vision services Medicaid benefit. The state Medicaid agency is recommending elimination of this benefit, once again. We stopped them from cutting it completely out of the budget in 2009 by reducing the services slightly.

The Vision Summit is scheduled this year for February. POF has supported this effort in the past with attendance and guest speakers. This event is a wonderful opportunity for “all the O’s” to be on the same page.

So 2010 will be a busy and exciting time. I appreciate the support you give me through your membership and participation in POF.

Current Issues Affecting Opticians

Sales Tax on Prescription Eyewear

By Nancy Stewart
POF Lobbyist and General Council

In March, 2009, the House Finance and Tax Council had public hearings on approximately 50 existing sales tax exemptions.  As you may have heard, one of the exemptions considered for review was the sales tax exemption on eyeglasses and other corrective lenses.  I don’t need to tell you what a bad idea this is.

Since the current sales tax exemption for eyewear is a State Law, along with other non-discretionary medical devices, such as artificial eyes and limbs, dentures, hearing aids, and, prosthetic and orthopedic appliances, there was brief discussion about taxing just the frames and not the lenses. The committee members quickly realized the difficulties of enforcing the sales tax collection on one portion of the sale and not the other, and they dropped the discussion immediately of taxing the frames.

During the committee hearing, Professional Opticians of Florida testified in favor of maintaining the exemption, as did optometry and ophthalmology.  After the committee hearings were complete, POF president Jerry Campbell, LDO, wrote a letter to which I hand delivered to House Finance & Tax Chair Ellyn Bogdanoff and Senate Finance & Tax Chair Thad Altman.  Each Chair appreciated this kind of additional feedback and input.  Please understand that if this tax went into effect, you would become the sales tax collector as you dispense prescription eyewear.

As of now, the House has held no further committee hearings on removing sales tax exemptions. Chair Bogdanoff has publicly expressed her concern about raising taxes in this challenging economic climate.  In the Senate, Chairman Altman has indicated that he believes the entire Florida Tax Code is ripe for extensive review rather than piecing together a hit-or-miss approach. 

As you may have read in the paper, both the House and Senate leaders are not currently considering removing any of the existing sales tax exemptions (which includes prescription eyewear) during the this year's legislative session.  However given the state’s current need for more revenue, this issue is not going away anytime soon and could be potentially a very big issue for you again and as always POF will remain vigilant for you.

Medicaid Coverage for Adult Vision Services

As of now, Senate has removed the funding for adult vision services for Medicaid eligible persons to instead help fund the Medically Needy Program.  The Medically Needy Program covers the sickest of the sick. As you can imagine, it is hard to argue against helping the folks in the Medically Needy Program.  As your lobbyist, I have pleaded with Senator Durell Peaden to make every effort to put funding for Medicaid adult vision services coverage back in the Senate budget at the first opportunity.  Historically Senator Peaden has been supportive of maintaining this Medicaid benefit.

In the House, funding for adult vision services coverage remains, though at a reduced level.  Currently the benefit covers two pair of eyeglasses per year.  The House Bill proposes to limit eyeglasses for adults to one pair every two years and to limit lenses to one pair every 365 days, beginning in January, 2010.

The difference in the House and Senate positions listed above will be ironed out when the sit together down to work out the differences in the Conference Committee process. This Conference Committee will be meeting over the next few weeks; we will keep you posted on any new developments or decisions.