Bill Watch

Recap of Week 4 & Preview of Week 5 of Session

The Florida legislative session is typically 9 weeks of “hurry up and wait” and this year is a lot of waiting.  We are unable to freely go in and out of the Capitol so there is no walking the halls and advocating good public policy when seeing a legislator on the way to a meeting or in their office.  And as someone said, “Zoom just doesn’t cut it,” although it has been a lifeline for those of us who talk and advocate every day in our professional lives.

As an example, a realtor who has been in a battle with an unscrupulous contractor, who had her sign documents that allowed them to sue her insurance company, came to town this week to talk about what those in the real estate profession should be doing to stop the homeowner’s insurance cost drivers from tanking real estate deals.  She talked to folks via the phone versus in person but she was laser focused that she wanted her “feet in Tallahassee” to show her commitment to, as she put it, “stop feeding the fraud.”  And insurance agents are complaining that they are getting the brunt of consumer complaints as insurance renewals are hundreds and thousands of dollars more than last year.  Some agents will be asking consumers if they would be willing to have their local legislative office conferenced in on the phone line so policymakers can instantly hear an actual consumer talk about how the rate increases are hurting pocketbooks.

Folks, today marks the halfway point, the beginning of the 5th week of our 2021 session (which ends April 30).  In the next couple weeks, many of the committees will stop meeting so legislators can focus on the almost $100 billion budget our state is contemplating for the coming fiscal year that starts July 1.  We are racing…racing to pass meaningful reform to turn around the property insurance market by slowing Citizens growth, stopping those who prey on unsuspecting consumers using phrases like “free roof” and “worry free,” and bringing balance to how the courts award fees to lawyers who are in the litigation factory business.  There is much more to do so scroll through where things stand on the bills we are tracking and as always email or call me if questions.  Thanks for your loyalty to LMA and our advocacy efforts!

Here is a master list of the legislative bills we’re following so far in the 60-day session (you can click the bill link to go directly to its details farther below).  “New” and “Updated” bills are so noted.  Updates within each bill are now noted in blue font:

Contingency Risk Multipliers
Residential Property Insurance Updated
Offers of Judgment
Litigation Financing Consumer Protection Updated
Consumer Protection Updated
Citizens Property Insurance Corporation
Insurance Policies Updated
Medical Expenses
Credit for Reinsurance Updated
Civil Liability for COVID-19 Damages Updated
Motor Vehicle Insurance (PIP) Updated
Demand Letters for PIP
Motor Vehicle Insurance Coverage Exclusions
Hurricane Loss Mitigation Program
Resiliency
Resilient Florida Grant Program Updated
Climate and Resiliency Task Force
Tourist and Convention Development Taxes Updated
Telehealth Practice Standards Updated
Telehealth
Construction Defects Updated
Florida Building CodeUpdated

Contingency Risk Multipliers – SB 212 by Senator Jeff Brandes (R-Pinellas) is a renewed attempt to put the brakes on a growing abuse of attorney fee awards.  The bill provides that for certain attorney fees awarded for claims arising under property insurance policies, a strong presumption is created that a lodestar fee (billable hours x reasonable hourly rate) is sufficient and reasonable; and providing that such presumption may be rebutted only under certain circumstances, specifically “in a rare and exceptional circumstance with evidence that competent counsel could not be retained in a reasonable manner.”  The bill passed the House last session but got hung up in the Senate.  The bill still awaits its first hearing.  There is no identical bill in the House.  (Return to Top of Page)

Residential Property Insurance – The principal reform bills advanced in both houses of the legislature this past week, with the Senate bill now heading to the floor.  At this point, the Senate bill, SB 76, does the most to cure the most serious ailments and abuses in Florida’s homeowners property insurance market as you can.

The House bill, HB 305, which originally almost mirrored SB 76, has gone in another direction with a focus on claim data collection as one key point – even though Citizens Insurance, the Insurance Commissioner, and many others have supplied mountains of data about what is driving rates.  The House bill also provides that unlicensed persons acting on behalf of the contractor, a public adjuster or apprentice may not solicit or incentivize the filing of a roof damage insurance claim; clarifies OIR’s examination authority over insurer “affiliates”; requires quarterly claims and litigation data; puts a cap on Citizens executive salaries and requires reinsurance costs be included in their rate filings regardless of purchase; changes the notice of claim deadlines to within two years of the date of loss; and includes a ten-day presuit notice and demand, after a determination of coverage, before bringing suit against an insurer with the insurer served either making a settlement offer or heading to appraisal or alternative dispute resolution.  It also changes the eligibility to be a Citizens policyholder.  Currently, private insurance company coverage has to be 15% more expensive to qualify to switch to Citizens.  That would increase to 20% under the bill.  It does however, prohibit attorney fee awards in cases that are dismissed.  You can read more in the latest bill analysis by House staff.

The Senate bill focuses on attorney fees and roof replacements.  Sponsored by the Chairman of the Senate Banking and Insurance Committee, Senator Jim Boyd (R-Bradenton), SB 76 would require a notice of intent 60 days before initiating a lawsuit.  The notice must specify the reason for the suit, the demand, and the amount of reasonable attorney fees incurred by the claimant.  It creates a “strong presumption” for a lodestar fee (billable hours x reasonable hourly rate) but awards attorney fees based on the relationship between the plaintiff demand and final judgment.  If the claimant recovers at least 80%, full attorney fees would be awarded; less than 20%, then there would be no attorney fees.  Judgments between 20% and 80% would merit the same proportional attorney fee.  The bill also attempts to thwart neighborhood roofing canvassers trying to use insurance policies to cover normal wear-and-tear.  It would require insurance companies to provide full replacement for roofs under 10 years old and establish a reimbursement schedule for older roofs based on age and type of roof to pay actual cash value.  A claim would have to be filed within two years (instead of the current three) and insurance companies would have the right to request inspection and photographs prior to work commencing.

After nearly two hours of public testimony and debate the previous week, the Senate Rules Committee on Thursday passed SB 76 on a 12-5 vote and sent it to the full Senate for consideration.  Senator Jeff Brandes (R-Pinellas), as he has during each committee meeting this session, insisted that doing nothing is not an option here.  “Every year that we don’t address this problem, rates are going to continue to go up,” he said.  Democrats on the committee continued to insist the bill was a solution in search of a problem.  Senator Gary Farmer (D-Broward), Senate Democratic Leader and a trial lawyer, argued the legislation went too far.  “This is a David versus Goliath situation, literally, and we’re taking David’s sling away.”  Senator Brandes countered that “If we don’t act, we’re failing our constituents.  We have to stand our ground here.”  Consumer advocates applauded the vote, including Floridians for Lawsuit Reform, which declared afterward that “real rate relief for homeowners is one step closer to reality.”

Senator Boyd previously filed a strike-all amendment that among other things, removed language related to unlicensed activity and claims adjusting because the provisions applied across various lines of insurance and this bill is an act related to “property insurance” only.  Along the way, another provision that was previously added was also removed that clarified that only an attorney or public adjuster may prepare, complete or file an insurance claim for a policyholder or third-party claimant or negotiate on their behalf in a damages claim.  That provision also gave the Department of Financial Services new powers to pursue administration action and impose fines on those bad actors.

The House bill went before the Insurance and Banking Subcommittee last Tuesday.  Its sponsor, Rep. Bob Rommel (R-Collier) acknowledged the lack of available and affordable property insurance and that Citizens is growing “at an alarming rate.”  Options, he said, have dwindled.  “We cannot attract insurance carriers to the state of Florida,” Rommel said.  He called his bill an adequate fix “without giving the insurance company too much power.”

Much of the discussion focused on Citizens Insurance, with Rep. Mike Beltran (R-Lithia) noting the state doesn’t want to be in the insurance business.  “We’re government…we don’t want to be in that business. If we can shore up the private market and have most or all people in the private market at affordable premiums, then that’s what we should do.”

The Subcommittee approved the bill on a 12-2 vote.  It now heads to the House Civil Justice and Property Rights Subcommittee tomorrow at 12:30 pm, its second of three committee stops, before going to the House floor.

The House and Senate have to agree on a bill for it to pass.  At this juncture, the Senate Bill (SB 76) is the best hope at stemming the red ink that that is in the Florida Domestic Property Insurers Summary of 2020 Year-End Financial Results spreadsheet.  Unless there is tremendous pressure on House Speaker Chris Sprowls to come to the table and agree with SB 76, insurance carriers will be left no choice but to slash their books of business, buy less reinsurance, and send their customers to Citizens, the state-backed insurer of last resort.  Such a move would put all of Florida’s insurance consumers at much greater risk of assessments to cover Citizens Insurance losses in a future catastrophic hurricane or series of hurricanes.  Reinsurance companies are noting this development, too, as it will lead to significantly less private reinsurance in the market, in lieu of greater taxpayer risk.

The Office of Insurance Regulation made a presentation in January showing that homeowners insurance companies will likely double their losses from 2019 to 2020.  The combined ratios are above 100 for the third year in a row, with net underwriting losses in each of the past five years.  You can read about other past pertinent testimony on this bill from the February 2 Banking and Insurance Committee meeting and the March 9 Senate Judiciary Committee meeting.  (Return to Top of Page)

Offers of Judgment – SB 686 by Senator Jeff Brandes (R-Pinellas) would allow parties in a lawsuit to make an exclusive offer of judgment identifying the total amount of indemnity or damages and stipulating attorney fees and costs would be determined at a later date by the parties or the court.  A party serving the offer would not be required to stipulate an amount offered for attorney fees and costs; the other party would have 30 days to challenge the validity of the offer.  The bill had its first hearing on February 15 before the Senate Judiciary Committee, which Senator Brandes chairs.  There was lengthy debate on an amendment to clarify language, but the bill ultimately passed on a 6-4 vote.  The bill passed 8-3 in the Banking and Insurance Committee on March 10 and awaits a hearing in the Rules Committee, its final stop before the full Senate.  Committee staff prepared this updated bill analysis afterward.  A similar bill in the House, HB 1533 by Rep. Fiona McFarland (R-Sarasota), differs in requiring arbitration in addition to a fee award hearing.  The bill still awaits its first hearing.  (Return to Top of Page)

Litigation Financing Consumer Protection – SB 1750 is a second attempt by Senator Doug Broxson (R-Pensacola) to create a regulatory framework for litigation financiers who provide capital to firms who take cases on contingency, similar to a “factoring” company that buys receivables and pays an upfront, discounted fee for the right to assume the receivable at full value.  The bill was supposed to have its first hearing last Wednesday before the Senate Banking and Insurance Committee but was postponed.  A similar House bill, HB 1293 by Rep. Toby Overdorf (R-Stuart) awaits its first hearing.  Senator Broxson’s bill last year never got a hearing; its counterpart in the House passed all three of its committees but was never heard by the full House and the Senate.  (Return to Top of Page)

Consumer Protection – HB 717 by Rep. Chuck Clemons (R-Dixie & Gilchrist) attempts to go to the heart of insurance fraud in Florida – unlicensed and unregulated contractors.  The bill prohibits unlicensed activity by an adjusting firm; prohibits a person from providing claims adjusting services unless the person meets specified requirements; and prohibits licensed contractors & subcontractors from engaging in certain activities unless licensed & compliant as public adjusters.  The bill also provides disclosure requirements that insurance coverage must meet before being eligible for export under Surplus Lines Law; prohibits foreign venue clauses in property insurance policies; and provides penalties for a licensed bail bond agent or a temporary bail bond agent who knowingly engages in certain activities.

The bill also address life & health insurance lines.  It authorizes regulators to disapprove use of insurance agency names containing words “Medicare” or “Medicaid” and prohibits life insurers from writing new policies of industrial life insurance beginning on a certain date.  The bill has received unanimous support to date and still awaits its last hearing before the House Commerce Committee, having been postponed last Wednesday. 

While not identical, a similar bill SB 1598 by Senator Joe Gruters (R-Sarasota), unanimously passed the Senate Appropriations Subcommittee on Agriculture, Environment, and General Government last Wednesday.  It now awaits its final hearing before the Appropriations Committee.  The bill includes important language clarifying that only an attorney or public adjuster may prepare, complete or file an insurance claim for a policyholder or third-party claimant or negotiate on their behalf in a damages claim.  It also gives the Department of Financial Services new powers to pursue administration action and impose fines on those bad actors. These are the same provisions that had been in the Residential Property Insurance bill SB 76 but were removed from that bill in mid-March.

An early March report by the Office of Program Policy Analysis and Government Accountability (OPPAGA), which is Florida’s version of the federal GAO, looks at homeowners and automobile insurance fraud and unlicensed activity.  The report shows that homeowners insurance fraud referrals to the Department of Financial Services (DFS) more than doubled over a five year period of 2015-2020.  Yet few resulted in full investigation and even fewer in prosecution.  The DFS Division of Investigative and Forensic Services reported that staffing issues affect its ability to investigate complex cases like insurance fraud.  One in five investigator positions are vacant statewide with higher vacancies in metro areas that have higher number of fraud referrals.  OPPAGA made a presentation to the Senate Judiciary Committee on February 1, which you can read more about here.  (Return to Top of Page)

Citizens Property Insurance Corporation – SB 1574 by Senator Jeff Brandes (R-Pinellas) seeks to bring a more market-oriented approach to the state’s taxpayer-backed insurer of last resort in the face of reverse migration of policies back into Citizens over the past two years.  The bill would revise the method for determining potential surcharges levied against policyholders, limit agent commission rates, and allow eligible surplus lines insurers to participate in Citizens depopulation, take-out, or keep-out programs in the same manner and on the same terms as an authorized insurer.  It would also authorize information from underwriting files and confidential claims files to be released by the corporation to specified entities considering writing or underwriting risks insured by the corporation under certain circumstances.  The bill unanimously passed the Senate Banking and Insurance Committee on March 16.  Significant changes were made to it under a series of amendments by Senator Brandes.  Among the changes:

• Elimination of the 10% “glide path” annual rate increase cap for new Citizens customers after July 1 as well as owners of non-homesteaded property, such as second homes. Existing customers in homesteaded property would keep the cap.
• Non-homesteaded (meaning not owner-occupied) property is not eligible for coverage unless the premium for comparable coverage from an authorized insurance company is more than 15% greater than the Citizens premium.
• Deficits in any of Citizens’ three accounts would subject a Citizens’ policyholder to a special annual premium surcharge, based on Citizens current policy count. (15% premium surcharge for less than one million policyholders; 20% for one-million to 1.5 million policyholders; and 25% for 1.5 million or more.)
• Any deficit in its legal expenses would subject all policyholders to an additional annual premium surcharge.
• Agent commissions would be based on the market average commission rate paid by the top 20 admitted insurers in Florida.
• Enhanced requirements to qualify as an eligible surplus lines insurer for depopulation, take-out, and keep-out programs (see pages 38-42 in the bill).

In presenting his successful amendments before the March 16 committee, Senator Brandes said the goal is to “right the ship” of Citizens, noting “We are seeing radical growth that is exposing the state of Florida to untold liability.”  Indeed, when Citizens grows, so does every Floridians’ risk of paying for that growth through state-mandated assessments, should there be a catastrophe (a single big hurricane or smaller multiple hurricanes).  A healthy and competitive insurance market means Citizens shrinks.  When Citizens offers cheaper rates than most of the rest of the private market (under the legislatively-created 10% annual “glide path” cap on rate increases) rather than actuarially sound rates, policies flock to Citizens, as they have been doing over the past almost two years. 

Since March 2020, Citizens’ policy count has grown from 443,444 to 551,613 by February 28, 2021, an increase of 26.4%.  Citizens is now receiving more than 3,000 new customers per week and expects to add a total of nearly 150,000 policies this year.  During its March 15 rate hearing, Citizens asked insurance regulators for the same rate cap flexibility contained in this bill (see Citizens Pushing Higher Rates in our March 22 newsletter). This bill would do what the Florida Office of Insurance Regulation may choose not to do on its own. 

You can read more in this updated bill analysis prepared by Committee staff afterward, particularly on pages 7-8.  The bill awaits its second committee stop before the Senate Appropriations Subcommittee on Agriculture, Environment, and General Government.  There is still no identical House bill.  (Return to Top of Page)

Insurance Policies – SB 742 is an omnibus bill that seeks to fix a number of issues in insurance law and regulation.  The bill, sponsored by Senator Keith Perry (R-Gainesville) would redefine “covered policy” under the Florida Hurricane Catastrophe Fund in relation to certain collateral protection insurance policies; specify when service of process is valid and binding upon insurers; specify the entities that must receive requests for loss run statements; limit loss run statement requests with respect to group health insurance policies to group policyholders; and authorize, rather than require, rate filings for certain residential property insurance to include certain rate factors.

The bill also touches on mitigation and flood insurance.  It authorizes insurers to file rating plans based on windstorm mitigation construction standards and authorizes them to require policyholders provide evidence of compliance with mitigation standards under certain conditions.  It authorizes residential property insurers to file rating plans that provide certain windstorm mitigation premium discounts, credits and rate differentials; authorizes surplus lines agents to export flood coverage contracts or endorsements to surplus lines insurers without making certain diligent efforts; and redefines the term “assignment agreement” to include scopes of service & property inspection.

It has an identical bill in the House, HB 815 by Rep. Tommy Gregory (R-Bradenton).  During the week of March 8, both bills were amended with the resulting Committee Substitutes.  HB 815 passed unanimously last Thursday before the State Administration & Technology Appropriations Subcommittee and awaits a final hearing before the House Commerce Committee.  SB 742 will be heard today at 3:30 pm before the Senate Judiciary Committee, its second of three stops.

On the property insurance side, the bills clarify that only laws and ordinances enacted on or before the date of a loss are applicable to a particular loss.  The trial bar objected to this provision, but a legacy carrier argued it was necessary to make sure any changes in building codes after a hurricane weren’t applied retroactively, forcing insurance companies to pay more for a claim.

Other property insurance changes include:

• Allowing an insurance agent to export a flood insurance policy or endorsement to a surplus lines insurer without first making a diligent effort to seek coverage from three or more authorized insurance companies
• Providing that s. 627.7152 F.S. governing assignment agreements, applies to instruments that assign or transfer post-loss benefits to a service provider that provides scopes of service or inspection services. It also clarifies fees charged by a public adjuster are not included.
• Eliminating mandatory use of the Building Code Effectiveness Scale in residential rate filings
• Authorizing an insurance company to use IBHS or other windstorm construction standards developed by an independent nonprofit scientific research organization when filing premium discounts, credits, and other rate reductions.
• Authorizing an insurance company to require a policyholder who is building or retrofitting a structure to show compliance with windstorm mitigation standards before receiving premium discounts, credits, or rate reductions
• Allowing a rate filing to include a modeling indication that is either a weighted or straight average of two or more models
• Requiring the Florida CAT Fund to reimburse for losses under collateral protection insurance that are equal to the amount of coverage under a lapsed homeowners policy   (Return to Top of Page)

Medical Expenses – SB 846 by Senator Jeff Brandes (R-Pinellas) is another legal reform bill that would require evidence of medical expenses in personal injury claims be based on the usual and customary charges for such treatment or the amount covered by the claimant’s health insurance and their share of expenses under insurance.  Supporters say it will reduce the practice of inflating medical expenses in an attempt to obtain multi-million-dollar payouts for plaintiff attorneys.  The bill awaits a hearing in the Health Policy Committee, its second of three stops.  A similar bill, HB 561 by Rep. Randy Maggard (R-Pasco) is awaiting its first hearing before the House Civil Justice & Property Rights Subcommittee.  (Return to Top of Page)

Credit for Reinsurance – SB 728 by Senator Doug Broxson (R-Pensacola) and the identical bill HB 733 by Rep. Elizabeth Fetterhoff (R-DeLand) adopt provisions of the NAIC Credit for Reinsurance Model Law, which is based on negotiations between U.S, EU, and UK regulators.  It eliminates additional collateral requirements for reinsurers if the reinsurer is domiciled in a “reciprocal jurisdiction.”  Capital and surplus requirements and solvency or capital ratio requirements would be determined by administrative rule.  The bill requires the assuming insurer to notify the Florida Office of Insurance Regulation (OIR) if it falls below minimum requirements and agree to be bound by the jurisdiction of Florida courts and pay all final judgments. There are also OIR reporting requirements.  You can read the bill analysis here.  The House bill was fast-tracked this session and awaits a vote on the House floor.  The Senate bill was passed on a 16-1 vote last Thursday in the Rules Committee and awaits a vote on the Senate floor.  (Return to Top of Page)

Civil Liability for COVID-19 Damages  ̶  This past Friday the Florida House adopted and passed the Senate’s SB 72 by Senator Jeff Brandes (R-Pinellas) which had passed the Senate the previous week.  The vote was 83-31.  This is the comprehensive agreement on liability protection for businesses, organizations, health care facilities and their workers.  It now goes to Governor DeSantis for his expected signature into law. 

The bill, which was a successful combination with Brandes’ other bill SB 74 outlines requirements for a civil action based on a COVID-19-related claim; provides that the plaintiff has the burden of proof in such action; and provides a statute of limitations, severability, and retroactive applicability.  The bill also requires a finding of gross negligence and applies a tougher clear and convincing evidence standard.

The bill requires a plaintiff – for other than medical malpractice claims against healthcare providers – have a signed affidavit from a physician attesting COVID transmission came from the defendant before filing suit.  Medical malpractice or nursing home-related claims would not require those affidavits.  The bill has a good faith provision allowing judges to make the call whether defendants tried to substantially comply with government-issued health safety standards.

Before passing the bill on March 18, the Senate approved an amendment by Senator Brandes deleting a part of the bill that would have allowed businesses to claim immunity if “supplies, materials, equipment, or personnel necessary to comply with the applicable government-issued health standards or guidance at issue were not readily available or were not available at a reasonable cost.”  The bill also has a sunset provision one year and a day after becoming effective and so only impacts lawsuits filed during that time period.

Various amendments offered by Democrats failed, including one that would have changed workers’ compensation insurance laws to include a presumption for healthcare workers who test positive; another would have limited protection for nursing homes with a history of recent state or federal sanctions.  The Senate had passed SB 72 in a 24-15 vote, with only one Democrat voting with the majority.

The House had previously pursued a two-track approach to provide COVID-19 liability protections through HB 7 and HB 7005, which are now moot with final passage of SB 74.

An early March poll by Mason-Dixon and Florida TaxWatch found that 74% of those surveyed say healthcare providers that act in good faith during the pandemic should have lawsuit protection (18% opposed) and 72% agreed that same protection should apply to regular businesses and organizations (20% opposed).  (Return to Top of Page)

Motor Vehicle Insurance (PIP)  ̶  This is a perennial effort to do away with Personal Injury Protection (PIP) coverage under Florida’s No-Fault insurance law and replace it with bodily injury (BI) liability coverage.  Similar bills failed the last several sessions.  SB 54 by Senator Danny Burgess (R- Zephyrhills) would replace the current $10,000 in PIP which covers anyone’s medical bills in an accident and replace it with BI coverage for those other than the driver, with a minimum amount of $25,000 for one injury/death and $50,000 for two or more injuries/deaths.  It passed the Banking and Insurance Committee on January 26 where a bad faith amendment was added that would establish standards for third-party claimants.  A dispute between the Senate and House about such bad faith provisions sank last year’s effort.

SB 54 went before the Senate Judiciary Committee on February 15 which passed the bill with the following changes:

• Low-income motorists and students would be offered reduced coverage of $15,000 for one injury/death and $30,000 for two injuries/deaths.
• Insurance companies would be allowed to offer policies with deductibles up to $200 for windshield repairs, as a disincentive to some auto-glass businesses that offer free gift cards to motorists who agree to questionable repairs and replacements.

The Senate Rules Committee passed the measure on a 12-3 vote on March 11.  The bill was scheduled to be heard by the full Senate this past Thursday but was postponed because of changes being made to its bad faith provision.  This is a work in progress.

This year’s House bill HB 719 by Rep. Erin Grall (R-Vero Beach) is similar to SB 54 but like last year’s bill, it has no bad faith provision.  It has a bunch of other measures, including revising garage liability insurance requirements, requirements on transportation network companies such as Uber and their drivers and vehicle owners, as well as financial responsibility requirements for owners or lessees of for-hire passenger transportation vehicles.  The bill passed the House Civil Justice & Property Rights Subcommittee on March 11 with an amendment that requires that medical payments coverage must be offered with no deductible.  The bill awaits a hearing before the House Insurance & Banking Subcommittee, its second of three stops.  Critics contend that without bad faith reform, repealing PIP could lead to higher costs for consumers and increased litigation.

In late February, the Florida Office of Insurance Regulation issued a report at the request of the Commerce Committee, noting that auto premiums continue to increase across all coverages in Florida.  The report includes additional information on the potential impact that changes to PIP could have on premiums.  (Return to Top of Page)

Demand Letters for PIP  ̶  HB 237 by Rep. Keith Truenow (R-Tavares) requires written notice of intent to initiate litigation for relief related to Personal Injury Protection (PIP) benefits.  It also revises requirements for demand letter for PIP benefits and prohibits actions by & prosecutions on behalf of claimants unless certain requirements are met.  The bill still awaits its first hearing.  There is no identical Senate bill.  (Return to Top of Page)

Motor Vehicle Insurance Coverage Exclusions  ̶  HB 273 by Rep. Scott Plakon (R-Longwood) creates a named driver exclusion.  It provides private passenger motor vehicle policies may exclude identified individuals from specified coverages and provides exceptions.  The bill is scheduled to be heard today at 4:15 pm before the House Commerce Committee, its second and last stop.  It has an identical Senate companion in SB 420 by Senator Hooper, which awaits a final stop in the Rules Committee.  (Return to Top of Page)

Hurricane Loss Mitigation Program – SB 168 by Senator Ed Hooper (R- Pinellas) continues a controversial program that while on its face appears to “harden” mobile homes from the threat of hurricanes, it has been questioned by many mitigation experts who have said the effectiveness of the $2 million annual program is doubtful.   We will keep a close eye on this bill in hopes the legislature will ask for concrete data to show the results of this appropriation post Hurricane Irma.  The bill has unanimously passed previous committees and awaits its last stop before the Appropriations Committee.   A similar bill in the House, HB 423, by Rep. Kaylee Tuck (R-Sebring), is awaiting a hearing before the House Appropriations Committee, its third of four committee stops.  (Return to Top of Page)

Resiliency  ̶  SB 514 by Senator Ray Rodrigues (R-Lee) establishes the Statewide Office of Resiliency within the Governor’s Office.  It also creates the Statewide Sea-Level Rise Task Force within the resiliency office and authorizes the Department of Environmental Protection to contract for specified services, upon request of the task force.  It also requires the Environmental Regulation Commission to take certain action on the task force’s recommendations.  This bill contains an appropriation of $500,000.  A similar proposal passed the Senate in 2020 but failed to get through House committees.  The bill passed the Senate Environment and Natural Resources Committee unanimously on February 15 and awaits its second stop before the Appropriations Subcommittee on Agriculture, Environment, and General Government.  An identical House companion in HB 315 is awaiting its first hearing.  (Return to Top of Page)

Resilient Florida Grant Program – HB 7019 and HB 7021 are at the heart of House Speaker Chris Sprowls’ commitment to combat sea-level rise that spans several legislative bills he’s named the “Always Ready” plan.  The bills are sponsored by the House Environment, Agriculture & Flooding Subcommittee and Rep. Demi Busatta Cabrera (R-Miami).  The bills unanimously passed their sponsoring subcommittee on March 8 and likewise the House Agriculture & Natural Resources Appropriations Subcommittee on March 11.  This past Wednesday, both bills unanimously passed the State Affairs Committee and now await a full vote in the House.  HB 7019 was amended to eliminate the cost-share requirement for areas deemed a “financially disadvantaged small community” as specified in the amendment.

The plan follows the Governor’s previous announcement that he’d like to spend $1 billion over the next four years on resiliency projects.  The bills recognize that Florida “is particularly vulnerable to adverse impacts from flooding resulting from increases in frequency and duration of rainfall events, storm surge, and sea level rise…that pose economic, social, environmental, and public health and safety challenges to the state.”

HB 7019 would establish the Resilient Florida Grant Program within the Department of Environmental Protection (DEP) and set-aside up to $100 million a year by 2022-2023 for local governments to mitigate effects of rising sea levels through community resilience planning.  It also requires the DEP to:

• Complete a comprehensive statewide flood vulnerability and sea level rise data set and assessment;
• Develop a three-year Statewide Flooding and Sea Level Rise Resilience Plan and annually submit the plan to the Governor and Legislature;
• Require water management districts to annually submit proposed projects and their requirements to DEP for inclusion in the plan; and
• Require DEP to implement a scoring system for assessing those projects.

The bill also requires the Legislature to review and approve funding for projects, subject to appropriation; authorizes local governments to create regional resilience coalitions to be funded by DEP; and establishes the Florida Flood Hub for Applied Research and Innovation within the University of South Florida College of Marine Science.  The hub would be required to submit an annual report to the Governor and Legislature.  The Office of Economic and Demographic Research would also be required to include specified information relating to inland and coastal flood control in certain assessments & analysis it performs.

HB 7021 establishes the Resilient Florida Trust Fund within DEP to fund the Resilient Florida Grant Program and the Statewide Flooding and Sea Level Rise Resilience Plan and all of the parts above.

“We are a low-lying state surrounded by water on three sides, and that water is flowing into places it shouldn’t. Flooding is a real threat to people’s homes, businesses and livelihoods,” said Speaker Sprowls in a news release following passage of the two bills.  “The success of our state is inextricably connected to the proper management of water.” 

Rep. Cabrera explained to the House Agriculture & Natural Resources Appropriations Subcommittee that “The effects of flooding are felt all across the state in both coastal and inland communities, and we must address these threats using a coordinated statewide approach, and these bills do just that.”  Rep. Cabrera said she’d work with subcommittee members who expressed concern about smaller, budget-constrained communities that may not be able to match the funding bill’s required 50% cost-share threshold.

Governor DeSantis has suggested that some of the new federal stimulus plan money going to Florida could be used to fund these resiliency proposals.  Florida is reportedly set to receive about $8 billion in stimulus money.

On the Senate side, a similar bill, SB 1954 by Senator Ray Rodrigues (R-Ft. Myers) passed unanimously in the Environment and Natural Resources Committee on March 15.  It will have a hearing this Wednesday at 1 pm before the Senate Appropriation Committee, its last stop before going to the full Senate.  Both Rodrigues and Speaker Sprowls have said they hope to have a bipartisan bill in front of the governor to sign by the end of this week.

Last week, Speaker Sprowls and Senate President Wilton Simpson released a Plan to Invest in Florida’s Infrastructure to use real estate documentary stamp taxes currently dedicated to affordable housing to partially fund the “Always Ready” plan.  They propose to use a third of the doc-stamp tax money for sea-level rise efforts, a third for a wastewater treatment grant program, and a third for dedicated affordable housing.  The House Agriculture & Natural Resources Appropriations Subcommittee last Thursday voted 9-5 along party lines to support the proposal, PCB ANR 21-01, which will go forward as HB 5401.  (Return to Top of Page)

Climate and Resiliency Task Force – HB 1623 by Rep. Ben Diamond (D-Pinellas) establishes a Climate & Resiliency Task Force to be headed by the Florida Insurance Commissioner to consider the impact of climate change on the state’s insurance market.  This is an exciting development in furtherance of much-needed flood protection and expanded insurance coverage.  The Task Force would identify protection gaps in the state’s insurance market and assess and recommend risk-transfer mechanisms and other approaches for reducing, managing, and mitigating climate-related risk.  Per the bill, the Task Force “shall consider mechanisms that improve access to affordable property and flood insurance for all residents of the state; apply technology and innovation to the mitigation of climate-related risks; encourage investment in natural infrastructure to reduce climate-related risks to communities; mitigate the effects of extreme heat on agriculture and other businesses throughout the state; and provide coverage for additional living expenses relating to flood damage.”  The Task Force would produce a report every two years to the Governor, Cabinet, & Legislature.  The bill was filed March 2 and awaits its first hearing in the House Insurance & Banking Subcommittee.  A similar Senate bill, SB 1872 by Senator Darryl Rouson (D-Hillsborough & Pinellas), was filed two days later and awaits its first hearing before the Banking and Insurance Committee.  (Return to Top of Page)

Tourist and Convention Development Taxes – SB 2008 by Senator Manny Diaz (R-Hialeah) would make it easier for local governments to fund flood mitigation projects.  It authorizes a county to impose both a tourist development tax and convention development tax to finance flood mitigation projects or improvements, and specifies that certain taxing authority expires 5 years after the date the authority was approved in an election.  The bill also expands funding capacity by deleting a provision requiring an extraordinary vote of a governing board for a county or sub-county special taxing district to increase its tourist development taxes.  It will have its first hearing tomorrow at 3:30 pm in the Community Affairs Committee.  A similar bill in the House, HB 1429 by Rep. Bryan Avila (R-Miami Springs), was passed unanimously by the Ways & Means Committee last Tuesday and will have its final hearing today at 1 pm before the State Affairs Committee.  (Return to Top of Page)

Telehealth Practice Standards – HB 247 by Rep. Tom Fabricio (R-Hialeah) and Rep. Mike Giallombardo (R-Cape Coral) revises the definition of “telehealth” and would allow providers to prescribe controlled substances during telehealth visits.  The House bill was amended to allow telehealth visits to be audio only and also allow providers to prescribe controlled substances only for patients in hospitals, nursing homes, or receiving hospice care, or for treatment of a psychiatric disorder.  The bill was passed unanimously last Tuesday by the House Professions & Public Health Subcommittee and awaits its final stop before the Health & Human Services Committee.  An identical Senate bill, SB 660 by Senator Manny Diaz (R-Hialeah) still awaits its first hearing.  (Return to Top of Page)

Telehealth – SB 700 by Senator Ana Maria Rodriguez (R-Doral) would require the Agency for Health Care Administration to reimburse the use of telehealth services under certain circumstances and with certain limitations; authorize telehealth providers to prescribe specified controlled substances under certain circumstances; authorize out-of-state physician telehealth providers to engage in formal supervisory relationships with certain non-physician health care practitioners in this state; authorize registered pharmacy technicians to compound and dispense medicinal drugs under certain circumstances; and exempt certain registered pharmacy technicians from specified prohibitions.  The bill passed unanimously on February 17 in the Senate Health Policy Committee.  It awaits a hearing in the Appropriations Subcommittee on Health and Human Services, its second of three stops.  House bill HB 247 (above) is considered comparable for requiring similar AHCA reimbursement.  (Return to Top of Page)

Construction Defects – SB 270 by Senator Keith Perry (R-Gainesville) revises and expands the mandatory procedures governing how construction defects disputes are resolved.  The bill would define the term “material violation” in a warranty and require that a person submit a construction defect claim to the warranty provider before bringing a cause of action; require that a claimant submit a construction defect claim to the warranty provider before serving a notice of claim; authorize a person served with a copy of a notice of claim to perform a reasonable inspection of the property subject to the claim; require, instead of authorize, a person served with a notice to serve a copy of the notice to specified persons under certain circumstances, among other changes.  You can read the bill analysis here.  The bill passed the Senate Judiciary Committee on February 15 on a 9-1 vote and awaits a hearing in the Community Affairs Committee, it’s second of three stops.

In the House, a similar bill, HB 21 by Rep. Alex Andrade (R-Pensacola) would also require a claimant to notify a mortgagee or assignee within a specified timeframe after settlement.  You can read the bill analysis here.  It has narrowly passed its previous committees and is awaiting a hearing before the Judiciary Committee, its last stop before going to the full House.

The Berger Singerman law recently published an interesting analysis of the bills, Does the Florida Legislature Finally Have a Fix to Construction Defect Law?   (Return to Top of Page)

Florida Building Code – HB 401 by Rep. Elizabeth Fetterhoff (R-DeLand) exempts assisted living facilities from compliance with rules relating to lifeguard standards; authorizes substantially affected person to file petition with the Florida Building Commission to review local government regulations and provides requirements for such petition; provides requirements for the commission when considering petition; requires the commission to issue nonbinding advisory opinion within a specified timeframe; authorizes the commission to issue errata to code; prohibits local government from requiring certain contracts for issuance of building permit; and requires evaluation entities that meet certain criteria to comply with certain standards.  The bill was passed unanimously on March 2 by the House Regulatory Reform Subcommittee and awaits its next hearing before the Local Administration & Veterans Affairs Subcommittee.  An identical Senate Bill SB 1146 by Senator Jason Brodeur (R-Lake Mary) will have its first hearing tomorrow at 3:30 pm before the Community Affairs Committee.  (Return to Top of Page)

LMA Newsletter of 3-29-21