Recap of Week 3 & Preview of Week 4 of Session
It’s because we’ll be at the midpoint of the 2022 Florida Legislative session after this week that we’ve seen a flurry of activity in the last few days, with new measures introduced on condominium building safety, re-inspection, and association board management. We’re also seeing a veteran legislator pulling out the stops to help save Florida’s precarious property insurance market.
Senator Jeff Brandes (R-Pinellas), who is termed out of office after this session, last week introduced an amendment to the insurance omnibus bill (SB 468 below) that would temporarily suspend the rapid cash buildup factor in the Florida Hurricane Catastrophe Fund (Cat Fund). His goal: to help provide premium relief to Florida homeowners and improve insurance availability in a market of dwindling carriers. He crystalized the state of the market and what’s at stake in his comments to the Appropriations Committee.
“The insurance market of Florida is going to come to a grinding halt,” Brandes said. “Citizens is going to balloon. It will impact the credit rating of the state. Ultimately, the real estate market, which is what fuels the Florida economy, will come to a screeching halt if rates continue to double in two or three years and then double again. It’s been hidden by low interest rates today. But interest rates are going to start going up. We have an affordable housing crisis today in Florida. It’s only going to get worse unless we take it seriously and begin to address the real issue of property insurance in Florida.”
Senator Brandes has been a proven leader in facing head-on the state’s property insurance challenges over the years. Armed with a deep knowledge of the Florida market and unburdened by re-election, he isn’t going to finish his legislative career without convincing his colleagues in the Senate of the wisdom of this common sense idea – the right idea at the absolute right time. Stay tuned.
Here is a master list of the legislative bills we’re following so far in this 60-day session. You can click the bill link in the list below to go directly to the bill and its details farther below. “New” and “Updated” bills are so noted. Updates within each bill are noted in blue font:
Insurance Policies (aka Insurance Omnibus Bill) Updated
Insolvent Insurers Updated
Property Insurer Reimbursements Updated
Domestic Surplus Lines Insurers Updated
Citizens Property Insurance Updated
Property Insurance Updated
Department of Financial Services (DFS) Updated
Fraud Prevention Updated
Motor Vehicle Glass
Hurricane Impact Programs
Sales Tax Refunds for Building Mitigation Retrofit Improvements
Mandatory Building Inspections Updated
Community Association Database Updated
Community Association Building Safety New
Powers of the Florida Building Commission
Construction Defect Claims
Building Inspection Services Updated
Motor Vehicle Insurance (PIP) Updated
Consumer Data Privacy
Judicial Notice Updated
COVID-19-related Claims Updated
Communicable and Infectious Diseases
Insurance Coverage for At-home COVID-19 Test Kits
Veterinary Telehealth Updated
Nutrient Application Rates
Insurance Policies (Insurance Omnibus bill) – SB 468 and HB 503 by Senator Keith Perry (R-Gainesville) and Rep. Tommy Gregory (R-Sarasota) would, among the many provisions, redefine the term “covered policy” under the Florida Hurricane Catastrophe Fund in relation to certain collateral protection insurance policies; authorize insurers to file certain rating plans based on certain windstorm mitigation construction standards, if certain requirements are met; and relax rules on Citizens Property Insurance offering wind-only policies for condominium buildings, among other provisions. The Senate Judiciary Committee and the House Insurance & Banking Subcommittee in mid-January both passed revised bills that eliminated the Legal Service of Process (LSOP) changes that had been debated in December committee meetings. Those changes would have altered “when the lawsuit clock starts” to when the company receives the notice from Department of Financial Services rather than when DFS receives it.
The revised bills also made tweaks to the collateral protection provisions; changed the workers’ comp provisions to require on-site audits only for policies with premiums greater than $10,000; allow a modeling indication that is the weighted or straight average of two or more hurricane loss projection models; allow an insurer to use an “independent, non-for-profit scientific research organization” to develop windstorm mitigation construction standards for personal lines residential rating plans; clarify in Assignment of Benefits (AOB) agreements that the contractor provide the 10-day pre-lawsuit notice to the policyholder, insurance company and assignor; and loosen licensing requirements on agents selling motor vehicle service agreements and home warranty contracts.
At last Thursday’s Senate Appropriations Committee meeting, Senator Jeff Brandes (R-Pinellas), citing the “critical condition of Florida’s property insurance market,” offered an amendment to SB 468 that would change the funding of the Cat Fund, from which insurance companies purchase reinsurance. It would:
- Cut the threshold level of losses in half that all insurance companies in total have to meet before drawing a payout from the Fund; and
- Suspend the Rapid Cash Buildup Factor, known as the “hurricane tax” on insurance companies that they in turn pass to their policyholders, designed to help the Fund grow.
Senator Brandes argued that lowering the threshold or “aggregate retention point” would lower the cost of reinsurance, with the savings under his amendment to be passed along to policyholders (a point made in our January 3 newsletter story). He said suspending the hurricane tax would save every Florida residential policyholder $150 annually and help counter the repeated double-digit rate increases now common in the Florida property insurance marketplace. He referenced the January 21 rate hearings where three companies requested rate increases ranging from 26% to 111%.
“We’re adjusting a couple of numbers. And the benefit of adjusting those couple of numbers is that Floridians will save between $750 million and $1 billion dollars in premiums next year,” Brandes said. He noted that the Cat Fund is flush with combined reserves of nearly $16 billion (more than twice the state’s reserve fund), which is more than the Cat Fund has had to pay out over its 29-year history. “We’re about to be in week four of the legislative session. We have yet to see a substantive bill that begins to address what the real impact is to Florida policyholders, who are about to be seeing double digit rate increases ad infinitum. We have to do something. If we don’t address these issues, there are companies that won’t survive by the end of this year,” said Brandes.
Cat Fund COO Gina Wilson warned the committee that any such changes could weaken the health of the Fund and that the current reserve exists because Florida went for a decade without a major hurricane. She said she hadn’t run an analysis so didn’t have all the answers to Sen. Brandes’ follow-up questions but would study them further.
Supporters of Sen. Brandes’ amendment included the Florida Association of Insurance Agents, the Federal Association for Insurance Reform (FAIR), and some of the state’s key domestic insurance companies. Opponents included Associated Industries of Florida and the Florida Chamber of Commerce that promised to downgrade its report cards on legislators who support the measure.
Senator Ben Albritton suggested a work group be convened later this year to examine the Cat Fund and Sen. Brandes’ concept. Senator Brandes withdrew his amendment at the suggestion of the committee chair, but said he may bring it up on Wednesday before the Senate Banking and Insurance Committee or the full Senate, calling it “an all-hands-on-deck situation where insurance companies are either going insolvent or pulling out of the market…and consumers are losing choices.”
To reinforce his point, Sen. Brandes told them they would soon see another company stop writing policies. The next day, market sources shared with us that Farm Bureau Insurance will suspend new business in the homeowners and dwelling fire lines on February 1 and consider non-renewing certain policies driving loss. You can watch the testimony yourself by clicking here and forwarding to the 43:00 mark on the playback.
SB 468 unanimously passed the Appropriations Committee and now goes to the full Senate for consideration. HB 503 awaits its next as yet unscheduled hearing before the House Commerce Committee. (Return to Top of Page)
Insolvent Insurers – HB 1023 and SB 1430 by Rep. Tom Fabricio (R-Miramar) and Senator Danny Burgess (R-Zephyrhills) amend several provisions of the Florida Insurance Code relating to the regulation and workings of our various backstop entities tasked with managing insolvent insurance companies. Specifically these bills would:
- For the Florida Insurance Guaranty Association (FIGA): Authorize insurers to make advance assessment payments made to FIGA in quarterly installments; authorize an insurer to forego recouping advances of assessments to FIGA; and require insurers making assessment payments to FIGA to file reconciliation reports on a form and schedule adopted by FIGA regardless of assessment payment method.
- For the Florida Workers’ Compensation Insurance Guaranty Association (FWCIGA): Provide that past loss experience and prospective loss experience for insolvent insurers must be used in the determination and fixing of workers’ compensation rates, and that data previously reported by insolvent insurers may be used to assess the impact on rates; authorize the Workers’ Compensation Insurance Guaranty Association (WCIGA) to allow an insurer to make advance assessment payments in a single payment or on a quarterly basis based on cash-flow needs; reduce the frequency of annual reconciliation reports subsequently filed with the WCIGA after the assessment year from a period of 3 years to a period of 2 years; clarify that an assessment paid before surcharges are collected is an advance; and make additional technical and conforming changes.
The Senate bill passed now includes an amendment by Senator Jeff Brandes (R-Pinellas) that would allow officers and directors of insolvent carriers to serve as officers or directors of other carriers in the future, unless regulators found their actions contributed to or caused the insolvency. It awaits its second hearing before the Appropriations Subcommittee on Agriculture, Environment, and General Government. The House bill unanimously passed the Insurance & Banking Subcommittee this past Friday and now goes to the State Administration & Technology Appropriations Subcommittee. (Return to Top of Page)
Property Insurer Reimbursements – HB 695 and SB 1058 by Rep. Cyndi Stevenson (R-St. Augustine) and Senator Travis Hutson (R-Palm Coast) revise requirements for coverage under the Florida Hurricane Catastrophe Fund of certain policies assumed from “unsound insurers” by authorized insurers or Citizens Property Insurance Corporation. The bills would allow a private insurance company to seek assignment of the liquidated insurer’s cat fund contract when it assumes its policies. The House bill will have its second hearing today at 3pm before the Appropriations Committee. The Senate bill will have its second hearing on Wednesday (Feb. 2) before the Community Affairs committee. During the Senate Banking and Insurance committee in mid-January, Senator Brandes offered an amendment that he later withdrew that would require any policy from an unsound insurer rolling into Citizens to keep the same premium pricing through two policy renewal cycles at Citizens. (Return to Top of Page)
Domestic Surplus Lines Insurers – HB 951 and SB 1402 by Rep. Tommy Gregory (R-Sarasota) and Senator Danny Burgess (R-Zephyrhills) changes the law governing surplus lines carriers, providing more options to consumers. It provides that the term “eligible surplus lines insurer” now includes domestic surplus lines insurers; authorizes specified non-admitted insurers to transact insurance as domestic surplus lines insurers; authorizes domestic surplus lines insurers to write surplus lines insurance in any jurisdiction; requires such insurers to be considered unauthorized insurers & non-admitted insurers for specified purposes; limits circumstances under which such insurers may write surplus lines insurance; and provides such policies are subject to specified taxes but are not subject to certain other taxes. The Senate bill last Wednesday unanimously passed the Appropriations Subcommittee on Agriculture, Environment, and General Government and now goes to its final stop before the Appropriations Committee. The House bill unanimously passed the Insurance & Banking Subcommittee last Thursday and now goes to the Ways & Means Committee, its second of three stops. (Return to Top of Page)
Citizens Property Insurance – SB 186 and HB 1307 by Senator Jeff Brandes (R-Pinellas) and Reps. Tommy Gregory (R-Sarasota) and Mike Giallombardo (R-Cape Coral) would allow surplus lines companies to do takeouts of Citizens policies, just as admitted carriers can do. The bills also have other provisions to attempt to stem Citizens explosive growth, which ended 2021 with a policy count of 759,305, a 40% increase from 2020, with continued growth of almost 5,000 policies weekly. They would make a current Citizens policyholder ineligible for renewal unless a private insurance company take-out premium is more than 20% higher than the Citizens renewal premium; and require Citizens to keep any premium in place from an unsound insurance company policy that Citizens assumes unless Citizens’ premium is higher. The Senate bill received its first hearing last Tuesday before the Senate Banking and Insurance committee. It was debated and approved after a strike-all amendment where staff technical changes were adopted. The bill now:
- Requires Citizens to merge its three accounts (personal, commercial, and coastal) to prevent a scenario of Citizens having to access surcharges from one account while maintaining robust reserves in another;
- Increases the Citizens policyholder surcharge from 15% to 20% when claims exceed reserves, should Citizens grow above 1 million policies;
- Defines “Primary Residence” for purposes of applying the glide path and creates a $5 surcharge on primary residence policies to cover administration and auditing costs;
- Applies the 20% threshold take-out premium eligibility to the current renewal rate within Citizens;
- Sets parameters for agent commissions;
- Allows Surplus Lines to make takeout offers when Citizens policy count grows above 700,000:
- Participating insurers must get OIR approval and meet certain disclosure and solvency requirements; and
- Citizens policies valued above $700,000 can be made ineligible for renewal with a surplus lines offer no greater than the rate currently offered by Citizens.
The House bill, filed on January 7, still awaits its first hearing in the Insurance & Banking Subcommittee. (Return to Top of Page)
Property Insurance – SB 1728 by Senator Jim Boyd (R-Bradenton) has identical changes to the Citizens Property Insurance Corporation that SB 186 and HB 1307 above have but also attempts to clarify advertising and solicitation restrictions in last session’s SB 76 reform law that a federal judge enjoined from enforcement last summer on free-speech grounds. This bill would also allow insurance companies to offer policies covering actual cash value of roofs older than 10 years old, rather than full replacement value, to reduce a cost-driver contributing to double-digit rate increases. That provision failed to be included in last year’s SB 76. There is no identical House companion to this bill, but it may be that parts of this bill end up being included in HB 1307 above. Here’s what Senator Boyd had to say about his efforts in a mid-January published report: “I will take another pass at property insurance reform to give additional relief,” the Senator said. “Nothing too aggressive, but I have a couple measures that may help with the rate part of the process. It will take a little energy, but nothing too aggressive.” In this fourth week of the nine-week session, the bill will have its first hearing on Wednesday (Feb. 2) before the Senate Banking and Insurance Committee which Senator Boyd chairs. (Return to Top of Page)
Department of Financial Services (DFS) – HB 959 and SB 1874 by Rep. Chip LaMarca (R-Broward) and Senator Jim Boyd (R-Bradenton) pertain to various administrative procedures, but tighten the rules on public adjusters; also included is that proposed change in the Department’s Legal Service of Process (LSOP) that alters when the “lawsuit notice of commencement clock starts.” According to the bill, “service of process is considered valid and binding at the time the process documents are received by, rather than sent to, the insurance company…and “when the process documents are made available on the DFS electronic system.” There are measures in these bills impacting insurance agents and workers’ compensation insurance, too. The bill prohibits compensation to a public adjuster based on amounts attributable to additional living expenses unless the public adjuster and the policyholder agree to such compensation in a separate agreement that includes a specified disclosure. The bills also:
- Create a new provision which states that compensation paid to a public adjuster may not be increased based on a claim being resolved by litigation.
- Require that adjusting firms seeking licensure include the name and license number of the designated primary adjuster who is responsible for adjusters at each business location, and requires fingerprints for background checks of the owner(s) as well as corporate officers and directors;
- Require that an applicant for licensure as a public adjuster must have been licensed and appointed in Florida as a non-resident public adjuster, or as an all-lines adjuster, on a continual basis, during the six months prior to application;
- Amend the definition of “public adjuster apprentice” to state that such apprentice must be employed by a public adjusting firm, rather than employed by a public adjuster;
- Require that a $50,000 bond posted by each public adjuster apprentice remain in effect for one year after termination of the public adjuster apprentice license, and requires that the public adjusting firm provide DFS with notice of the primary adjuster who responsible for the supervision of all adjusters at the firm’s location;
- Require that the $50,000 bond posted by each nonresident public adjuster must remain in effect for one year following the expiration or termination of the public adjuster license, and also makes changes to comply with federal law related to the use of fingerprints in national background checks, discussed above.
The bills also add an exemption to the examination requirement for the all-lines adjuster license; allow unaffiliated insurance agents to adjust claims without surrendering their appointments; clarify existing laws for title agents and agencies; and modify existing laws for public adjuster compensation, qualifications and bonding requirements. In workers’ compensation insurance, the bills would revise statewide schedules of maximum reimbursement allowances (aka the Workers’ Comp Reimbursement Manual) for medically necessary treatment to exempt from the requirement that the legislature ratify rules with an adverse economic impact in excess of $1 million, along with other provisions. The House bill passed unanimously this past Friday in the Finance & Facilities Subcommittee and now goes to the Appropriations Committee, its third of four committee stops. The Senate bill had a strike-all amendment clarifying existing bill language that was offered and amended by an amendment that limited public adjuster fees to recovery awards only and not attorney fee awards. The bill was unanimously approved as amended by the Banking and Insurance Committee. It now goes to the Appropriations Subcommittee on Agriculture, Environment, and General Government, its second of three committee stops. (Return to Top of Page)
Fraud Prevention – HB 749 and SB 1292 by Rep. Chuck Clemons (R-Newberry) and Senator Joe Gruters (R-Sarasota) increase fines on public adjusters & public adjuster apprentices for certain violations under specified circumstances, including work performed during a state of emergency. The measures also requires sellers to allow consumers to cancel in specified manners & by specified means service contracts with automatic renewal provisions. They also remove provisions relating to circumstances under which investigations are considered active; revise requirements for advertisements issued or caused to be issued by service agreement companies or salespersons; revise felony violations for which prosecutions must be commenced within specified timeframe; provide that certain insurers are entitled to specified expenses at trials & appellate courts; and create a $2,000 daily fine for insurance companies that fail to comply with a Division of Investigative and Forensic Services or State Fire Marshall investigation. Both the House and Senate bills passed their respective first committees in mid-January, with the following provisions added to both bills:
- Expanding the existing $10,000 fine for contractors or unlicensed persons acting on their behalf who solicit or incentivize a residential property owner to file a roof damage insurance claim or receive a paid referral from insurance proceeds to $20,000 if the violations occur during a declared state of emergency.
- Entitling insurance companies that are victims of false and fraudulent insurance claims to recover investigation and litigation expenses, including attorney fees, when they have reported the possible fraud to the Department of Financial Services Division of Investigative and Forensic Services and the accused has been found guilty. This is in addition to having a cause of action in other cases to the recovery of compensatory damages, investigation and litigation expenses, including attorney fees that is already part of these bills.
- Requiring service agreement companies and salespersons to disclose their full legal name during phone solicitations and radio/television and written advertisements.
- A new section that requires development of a digital insurance verification system for licensed Florida motor vehicle drivers that can interface seamlessly to the Department of Highway Safety and Motor Vehicles’ digital driver’s license project already in process.
The House bill will be heard this Wednesday (Feb. 2) by the State Administration & Technology Appropriations Subcommittee, its second of three stops. The Senate bill will also be heard this Wednesday before the Appropriations Subcommittee on Agriculture, Environment, and General Government, its second of three stops. (Return to Top of Page)
Motor Vehicle Glass – SB 484 by Senator Linda Stewart (D-Orlando) (there is no corresponding House Bill to date) targets Assignment of Benefits (AOB) abuse in the windshield repair industry, an effort that failed to gain traction last session. The bill would prohibit motor vehicle repair shops or their employees from offering anything of value to a customer in exchange for making an insurance claim for motor vehicle glass replacement or repair, including offers made through certain persons, etc. The bill still awaits its first hearing in the Banking and Insurance committee. (Return to Top of Page)
Hurricane Impact Programs – SB 578 and HB 837 by Senator Ed Hooper (R-Palm Harbor) and Rep. Matt Willhite (D-Wellington) would extend the state Division of Emergency Management’s hurricane loss mitigation program for 10 years. The Senate bill directs an appropriation of $10 million a year from the Florida Hurricane Catastrophe Fund that would fund 4 programs: tie-downs or mobile homes; wind resistance mitigation for homes; new construction and retrofits of public shelters; and continued hurricane research at Florida International University. Under an amendment offered by Senator Jeff Brandes (R-Pinellas) and approved by the Senate Banking and Insurance Committee on January 12, an additional $2 million each year from the Cat Fund would fund research by the University of South Florida School of Risk Management. The research would examine Florida’s property insurance market, analyze trends, and recommend polices for reducing property insurance rates, Citizens Property Insurance policy counts, and frequency of insurance litigation. The school would also be tasked with determining to what extent hurricane losses and rebuilding costs influence these trends. The Senate bill’s next stop is the Community Affairs Committee. The House bill still awaits its first hearing in the Insurance & Bank Subcommittee. (Return to Top of Page)
Sales Tax Refunds for Building Mitigation Retrofit Improvements – HB 863 and SB 1250 by Rep. Nick DiCeglie (R-Pinellas) and Senator Joe Gruters (R-Sarasota) would create a sales & use tax refund for homeowners who purchase building materials used for mitigation retrofit improvements, along with regulation of mitigation inspectors. This would be a win-win for Florida homeowners, to encourage them to fortify their homes and help save on future insurance premiums. The House bill still awaits its first hearing in the Regulatory Reform Subcommittee; the Senate bill its first hearing in the Community Affairs Committee. (Return to Top of Page)
Mandatory Building Inspections – This bill is among several filed in the aftermath of the Champlain Towers South condominium collapse that killed 98 people in June of 2021. Although near the last of the group to be filed, legislative intelligence is such that all eyes in the condo communities and other stakeholders are on this bill as it appears it will be the “vehicle” for condo law changes in the 2022 session. SB 1702 by Senator Jennifer Bradley (R-Fleming Island) who Chairs the Community Affairs Committee (there is no corresponding House Bill to date), would require multifamily residential building inspections statewide “to ensure that such buildings are safe for continued use.” It would impose “milestone inspections” for buildings taller than three stories. Those within three miles of a coast would be structurally inspected on their 20th anniversary and every seven years afterward; the rest on their 30th anniversary and every 10 years afterward. All those buildings opened before July 1, 1992 would need to have initial inspections performed by Dec. 31, 2024. Inspections would have to be performed by architects or engineers. For condominium buildings or cooperatives, copies of inspection reports would be sent under seal to authorities and distributed to unit owners. The bill also requires the Florida Building Commission to further develop structural and life-safety standards for all building types and structures by the end of this year.
At the bill’s first hearing last week before her Senate Community Affairs Committee, Senator Bradley said Florida needs a minimum statewide standard so that another Champlain Towers collapse doesn’t happen again. ““We have half a million condo units in our state that are between 40 and 50 years old, more than 100,000 that are 50 years old or greater. And there is no requirement that they be inspected.”
The bill mirrors some of the suggestions in a joint report by The Florida Engineering Society and the American Council of Engineering Companies of Florida, one of two reports out so far in the aftermath of the tragedy. The bill allows local communities to establish even tighter standards. There was no debate or opposition to the bill. Its next hearing is tomorrow (Feb. 1) at 3:30pm before the Senate Regulated Industries Committee.
Two other bills, HB 1391 and SB 1780 by Rep. Joe Geller (D-Aventura) and Senator Jason Pizzo (D-Miami) would require residential buildings be structurally inspected at their 30th anniversary and every five years afterward. They await their first hearings before the House Regulatory Reform Subcommittee and Senate Regulated Industries Committee respectively. . (Return to Top of Page)
Community Association Database – HB 329 and SB 642 by Rep. Nicholas Duran (D-Miami-Dade) and Senator Ana Maria Rodriguez (R-Miami-Dade) require the Department of Business and Professional Regulation (DBPR) to establish a searchable database of condominium and homeowners’ associations’ information. This would include contact information of board members, community managers, articles of incorporation and the like, but also a copy of the annual budget and schedule of expenses and assessments. It must specify whether the association has reserve accounts for capital expenditures and deferred maintenance, and if they are fully funded. A copy of the most recent reserve study, if one has been conducted, would also be included in the database. The Senate bill was not on the agenda of last Tuesday’s Senate Regulated Industries Committee, but later in the week, the committee released a brand new proposed bill of its own, SPB 7042 – Community Association Building Safety (see new bill below). The House bill still awaits its first hearing in the House Regulatory Reform Subcommittee. (Return to Top of Page)
(NEW) Community Association Building Safety – SPB 7042 by the Senate Regulated Industries Committee came out late last week and will be heard tomorrow (Feb. 1) by the committee at its 3:30pm meeting. The bill focuses extensively on reserves that high-rise condominium buildings should have to fund needed maintenance and repair and is again, a product of the aftermath of the Surfside condominium collapse. The bill requires three-story or higher condo buildings conduct a reserve study every three years and that the condo board review its reserves annually for sufficiency, along with other very specific requirements. The bill includes an “alternative funding method” for a reserve account by means other than an assessment or special assessment of condo owners, including a line of credit and payments by developers offering units for sale. It also enhances the authority of the Department of Business and Professional Regulation’s Division of Florida Condominiums, Timeshares, and Mobile Homes. The bill also stresses mandatory building maintenance, requiring the association perform any required work identified by the developer until new maintenance protocols are obtained by a licensed professional engineer or architect. The bill amends Chapter 718 which is condo law and Chapter 719 which is HOA law. (Return to Top of Page)
Powers of the Florida Building Commission – HB 771 and SB 1604 by Rep. Alex Andrade (R-Pensacola) and Senator Keith Perry (R-Gainesville) would require the Florida Building Commission to develop uniform standards for the maintenance and periodic inspection of existing building structures or facilities; provide requirements for such standards; and authorize the commission to adopt certain local rules that deviate from statewide standards. The House bill still awaits its first hearing in the Regulatory Reform Subcommittee. The Senate bill still awaits its first hearing in the Community Affairs Committee. (Return to Top of Page)
Condominium Associations – Another bill following the Surfside condo collapse, SB 880 by Senator Jason Pizzo (D-Miami) (there is no corresponding House Bill to date), would expand the jurisdiction of DBPR in investigating complaints about condo associations. It would also revise criminal penalties on acceptance of things or services of value or kickbacks, specify acts that comprise fraudulent voting activities relating to association elections, and require an association provide an itemized list and a sworn affidavit to persons requesting to inspect records. It awaits its first hearing in the Regulated Industries Committee. (Return to Top of Page)
Construction Defect Claims – HB 583 and SB 736 by Rep. Clay Yarborough (R-Jacksonville) and Senator Travis Hutson (R-Palm Coast) would require a claimant to provide written reasons for rejecting a settlement offer to remedy a defect; authorizes a supplemental offer; provides notice requirements for a supplemental offer; requires a court to stay action under certain circumstances; limits attorney fees under certain circumstances; requires certain claimants to complete repairs of construction defect within a specified time; provides requirements for payment of repairs; requires an expert to examine defect & prepare report; provides report requirements; provides for compensation of expert; provides liability; and requires certain notices of construction defects be sent to mortgagee or assignee. One provision would reduce the current statute of repose for filing a lawsuit over latent defects from 10 years, to a tiered-system to one to five years, depending on the structure. Supporters say the measures would protect builders from frivolous lawsuits and help control rising insurance costs. Opponents say it would limit consumer protection over latent defects. The Senate bill passed the Community Affairs Committee on January 12 on a 6-2 vote. The two dissenting Senators argued that a five-year window was too little time for some defects, such as faulty foundations and faulty structural components in attics and load-bearing walls, to present themselves. The Senate Bill awaits its final hearing before the Rules Committee. The House bill awaits a hearing before the Regulatory Reform Subcommittee, its second of three committee stops. (Return to Top of Page)
Building Inspection Services – HB 423 and SB 644 by Rep. Chip LaMarca (R-Lighthouse Point) and Senator Jason Brodeur (R-Lake Mary) revise eligibility requirements for a building code inspector or plans examiner; revise special conditions that may be imposed on provisional certificates; authorize partial completion of an internship program to be transferred between jurisdictions & private entities; limit the administrative fee that local jurisdiction can charge; provide certificate of occupancy or completion is automatically granted & issued; and require a local building official to provide written certificate of occupancy or completion within specified time. The House bill is awaiting a hearing before the Local Administration & Veterans Affairs Subcommittee, its second of three committee stops. The Senate bill passed by an 8-1 vote last Tuesday in the Community Affairs Committee. It was subject to a strike-all amendment which added a section on demolition. The bill now prohibits local laws or regulations from preventing a private property owner from obtaining a permit to demolish a single-family home located in a coastal high hazard area, moderate flood zone, or special flood hazard area if the lowest finished floor is at or below base flood elevation. There were some questions at the meeting about the impact on historic buildings, with the sponsor saying it would not impact any homes already registered. The bill will be heard tomorrow (Feb. 1) before the Regulated Industries Committee, its second of three stops. (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. While the legislature did pass a bill in the 2021 session, the Governor vetoed it, out of concern it could raise auto insurance rates and lead to more uninsured drivers on the road. This session, SB 150 and HB 1525 by Senators Danny Burgess (R-Zephyrhills) and Darryl Rouson (D-St. Petersburg) and Rep. Erin Grall (R-Vero Beach) are making another attempt at repealing PIP. The Senate bill has third-party bad faith reform and the House bill doesn’t – something that’s been a deal-breaker in the past. Many in the insurance industry insist that PIP repeal without bad faith reform will not reduce costs to motorists. The Senate bill will have its first hearing on Wednesday (Feb. 2) before the Senate Banking & Insurance Committee. The House version still awaits its first hearing before the Civil Justice & Property Rights Subcommittee. (Return to Top of Page)
Consumer Data Privacy – SB 1864 and HB 9 by Senator Jennifer Bradley (R-Fleming Island) and Rep. Fiona McFarland (R-Sarasota) would create the “Florida Privacy Protection Act”. It would require controllers that collect consumer personal information to provide certain information to the consumer and allow them to opt out of the sale and processing of their information by controllers. It also prohibits controllers from selling the personal information of consumers younger than 16 without their or (under 13) a parent’s consent. The House bill contains a private cause of action provision, something business interests are objecting to and that killed similar bills last session. The Senate bill awaits its first hearing in the Commerce and Tourism Committee; the House bill its first hearing in the Commerce Committee. (Return to Top of Page)
Judicial Notice – SB 634 and HB 677 by Senator Jennifer Bradley (R-Fleming Island) and Rep. Will Robinson (R-Bradenton) would allow courts to accept images and other information taken from web mapping services, global satellite imaging sites, or Internet mapping tools (such as Google Maps) as evidence, so long as a date stamp is visible. The measures also provide for the authorizing parties to object to the admissibility of such information. The Senate bill passed unanimously last Monday in the Commerce and Tourism Committee and included a strike-all amendment that was primarily technical and clarifying in nature. Numerous speakers and senators supported the bill because it helps certain defined documents to be self-authenticated rather than requiring an expert or records custodian to have to authenticate a document in Court. However, the Public Defenders Association, an FSU evidence professor, and a few senators expressed to Senator Bradley that an additional amendment was needed for constitutional concerns related to criminal trials and specific elements of crimes that could not be proven without live testimony authenticating specific issues for conviction of a crime. Senator Bradley agreed to work with these individuals to improve the bill at a later date with some type of carve out for criminal trials. The House bill last Thursday passed unanimously in the Civil Justice & Property Rights Subcommittee and will be heard again tomorrow (Feb. 1) in the Judiciary Committee. (Return to Top of Page)
COVID-19-related Claims – This is one of several bills addressing the ongoing coronavirus pandemic. SB 610 by Senator Jeff Brandes (R-Pinellas) (there is no corresponding House Bill to date) would extend current COVID-19 liability protections for health care providers through December 2023. Another Senate bill, SB 7014 recognizes the same need and extends the protections against claims filed before June 1, 2023. The Senate passed SB 7014 in mid-January on a 22-13 vote and it awaits consideration in the House. The identical House bill, HB 7021 passed the Judiciary Committee last week on a 15-5 vote and now goes to the full House for consideration and reconciliation with the Senate bill. (Return to Top of Page)
Communicable and Infectious Diseases – Citing this act as the “Sergeant Justin White Act,” SB 774 and HB 117 by Senator Joe Gruters (R-Sarasota) and Rep. Elizabeth Fetterhoff (R-Deland) and Rep. Anika Omphroy (D-Lauderdale Lakes), the bills provide a presumption to specified workers that an impairment of health caused by COVID-19 or an infectious disease happened in the line of duty. They require certain actions in order to be entitled to the presumption and require emergency rescue or public safety workers to file an incident or accident report under certain conditions. The Senate bill awaits its first hearing before the Governmental Oversight and Accountability Committee. The House bill awaits its first hearing before the Government Operations Subcommittee. (Return to Top of Page)
Insurance Coverage for At-home COVID-19 Test Kits – SB 328 and H 129 by Senator Ana Maria Rodriguez (R-Miami-Dade) and Rep. Ardian Zika (R-Pasco) define the term “at-home COVID-19 test kit”; require health insurers and health maintenance organizations to provide 100 percent coverage for at-home COVID-19 test kits; and provide for expiration of the insurance coverage, among other provisions. The Senate bill still awaits its first hearing in the Banking and Insurance committee. The House bill still awaits its first hearing in the Finance & Facilities Subcommittee. (Return to Top of Page)
Telehealth – SB 312 and HB 17 by Senator Manny Diaz (R-Hialeah) and Rep. Tom Fabricio (R-Miramar) and Rep. Mike Giallombardo (R-Cape Coral) revise the definition of the term “telehealth” and narrow the prohibition on prescribing controlled substances through telehealth to include only specified controlled substances. The Senate bill was passed unanimously by the full Senate on Thursday. The House bill passed unanimously in the Health & Human Services Committee last Tuesday and is ready for a vote by the full House. The only difference in the bills at this point is that the Senate version strikes a current prohibition on audio-only devices in telehealth visits, while the House version keeps the prohibition in place. (Return to Top of Page)
Veterinary Telehealth – SB 448 and HB 723 by Senator Jason Brodeur (R-Lake Mary) and Rep. James Buchanan (R-Sarasota) and Rep. Kristen Arrington (D-Osceola) would provide a framework for veterinary telemedicine. The measures generally authorize prescription of controlled substances under specified circumstances; revise grounds for disciplinary action against a veterinarian; and provide a supervising veterinarian assumes responsibility for person working under or at his or her supervision, among other provisions. The Senate bill was temporarily postponed from consideration on January 18 before the Committee on Regulated Industries and has not been rescheduled. The House bill passed the Commerce Committee last Monday on a 20-1 vote and is ready for consideration by the full House. (Return to Top of Page)
Nutrient Application Rates – SB 1000 and HB 1291 by Senator Ben Albritton (R-Bartow) and Rep. Lawrence McClure (R-Hillsborough) is meant to control nutrient run-off pollution from farms into streams and rivers. The bills authorize agricultural producers to use specified recommendations to tailor nutrient application rates; require such producers to keep certain records & to enroll in & implement certain best management practices; require certain state universities & Florida College System institutions to recommend nutrient application rates, ranges, rate tailoring authorizations; and provide a presumption of compliance with certain requirements for agricultural producers using rate tailoring. The Senate bill awaits a hearing before the Rules Committee, its last committee stop. The House bill still awaits its first hearing before the Environment, Agriculture & Flooding Subcommittee. (Return to Top of Page)
LMA Newsletter of 1-31-22