DeSantis vetoes bill that would have punished governments for regulating businesses
Gov. Ron DeSantis delivered a blow to some businesses by vetoing a bill Friday that would have required taxpayers to pay damages if a local government ordinance results in a business losing 15% of its revenues.
“The broad and ambiguous language of the bill will lead to both unintended and unforeseen consequences and costly litigation,’’ DeSantis wrote in his veto message.
The measure, SB 620, would have allowed businesses that have been in operation for at least three years to file lawsuits seeking to recover lost profits for up to seven years if they lose revenue as a result of a local ordinance or citizen initiative.
It was one of a series of measures that were passed in the 2022 legislative session amid the standoffs between DeSantis and big-city governments over mask mandates, COVID-19 shutdowns and other pandemic-related policies.
In recent years, some business groups have turned to the Republicancontrolled Legislature to reverse or prevent local governments from restricting natural-gas hookups, regulating vacation rentals and party houses, banning plastic straws and certain sunscreens, and imposing rules on where utility companies can set up solar farms.
Proponents called SB 620 a “pro-business” bill designed to protect privateproperty rights. Opponents said it would be an expensive burden for taxpayers, encourage frivolous lawsuits, prevent efforts to crack down on such things as puppy mills, regulate bar hours, and to restrict bans on products that harm the environment.
Florida TaxWatch, a business-backed research organization, estimated that the legislation could cost local governments over $900 million annually because it predicted an avalanche of lawsuits could force governments to increase taxes or reduce services to cover legal fees.
But while DeSantis criticized local governments, he suggested the measure went too far.
“Local governments do overstep their authority and unreasonably burden businesses through policies that range from the merely misguided to the politically motivated,’’ he wrote. “Indeed, this was illustrated by the bizarre and draconian measures adopted by some governments during COVID-19, necessitating the state to overrule these edicts to protect freedom and opportunity for Floridians.”
He added, “Incredibly, this bill exempts compensating businesses due to ‘emergency’ orders of local government.”
DeSantis suggested “the better approach is to enact targeted preemption legislation when local governments act in a way that frustrates state policy and/ or undermines the rights of Floridians.”
Last year, DeSantis signed into law a bill that preempted a decision by Key West residents, who voted to ban cruise ships with more than 1,300 passengers from docking at city ports.
Local government officials warned that the measure would pit businesses against each other and force taxpayers to foot the bill. They urged DeSantis to veto the legislation.
“Although the bill was amended to address some of the concerns with the original language, we fear that the creation of a private cause of action will lead to countless frivolous lawsuits whenever a local government passes a law perceived as unfavorable to a single entity,’’ wrote Miami-Dade Mayor Daniella Levine Cava in a March 28 letter to DeSantis. “We are also concerned that the volume of lawsuits will worsen the already litigious climate in Florida and negatively impact taxpayers.”
The veto of SB 620 was the fourth time this year the governor derailed a priority project for Senate President Wilton Simpson, the Trilby businessman who is seeking the Republican nomination for agriculture commissioner.
Simpson did not respond to requests for comments.