Another special session begins
This week’s special session of the Florida Legislature goes beyond considering additional hurricane relief to include bills on election law enforcement, illegal immigration, intercollegiate athletics, and special taxing districts, including Disney’s Reedy Creek Improvement District. You can read the details in Senate President Passidomo’s memo. You can read about the specific bills here.
This past week saw Governor DeSantis present his proposed budget for the next fiscal year that begins July 1. The $114.8 billion budget leaves $15 billion in reserves and includes expanded sales tax exemptions and tax holidays; $406 million for resilience projects; $30 million for rural infrastructure, including storm and wastewater systems; fully funding the Sadowski Affordable Housing Trust Fund, and natural resources protections we outlined in our last newsletter. The legislature will determine the next state budget and the Governor has line-item veto authority.
This week’s special session will include other committee meetings, followed by two weeks of back-to-back committee meetings – the last before the regular 60-day session begins on March 7. Here’s what we’ll be following:
Tuesday, Feb. 7
2:00pm – The House Regulatory Reform & Economic Development Subcommittee is hearing HB 85 – Causes of Action Based on Improvements to Real Property (see bill below).
Wednesday, Feb. 8
9:30am – The Senate Banking and Insurance Committee is hearing a presentation on the Cat Fund and from the Office of Insurance Regulation.
9:30am – The Senate Community Affairs Committee is hearing Senator Calatyud’s bill on Affordable Housing (SB 102).
1:00pm – The Senate Appropriations Committee on Transportation, Tourism, and Economic Development is hearing from the Division of Emergency Management on the Governor’s Budget Recommendations.
3:30pm – The Senate Appropriations Committee on Agriculture, Environment, and General Government is hearing from DFS and OIR on the Governor’s Budget Recommendations
Thursday, Feb.9
2:00pm – The House Select Committee on Hurricane Resiliency & Recovery is hearing a presentation by the Housing Finance Corporation on individual assistance.
The past two weeks saw a furry of new bills being filed in advance of the regular session. Here is a master list of the legislative bills we’re following so far. 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 New
Financial Services New
Property Insurance New
Motor Vehicle Liability Policies
Motor Vehicle Insurance New
Commercial Vehicle Insurance New
Post-lost Benefit Assignments Under Motor Vehicle Insurance Policies New
Access to Pharmacies and Prescription Drugs Under Insurance and Pharmacy Benefit Managers Policies
Health Insurance Cost Sharing
Telehealth Practice Standards
Physician Certifications for the Medical Use of Marijuana New
Contacting Consumer Debtors
Home Repairs and Solicitation Sales New
Causes of Action Based on Improvements to Real Property Updated
Limitation of Actions Involving Real Estate Appraisers and Appraisal Management Companies
Flood Disclosures for Real Property Sales New
Implementation of the Recommendations of the Blue-Green Algae Task Force New
General Insurance:
Insurance ̶ SB 312 by Senator Jay Collins (R-Tampa) revises restrictions on the use of genetic information for insurance purposes by life insurance and long-term care insurance companies. The bill specifies a restriction on and an authorized use of genetic information for insurance purposes by disability income carriers. It provides that certain restrictions against unfair discrimination or unlawful rebates do not include value-added products or services offered or provided by insurers or their agents if certain conditions are met. The bill has no House companion and is awaiting its first hearing in Senate Banking and Insurance. (Return to Top of List)
Financial Services ̶ HB 487 by Rep. Michelle Salzman (R-Cantonment) is the Department of Financial Services (DFS) annual omnibus bill which covers a myriad of topics under the jurisdiction of DFS, as well as the inner workings of the department itself. Some highlights include:
- References reinsurance, adjusters, insurance agents, bail bond agencies, and the Workers’ Comp Guaranty Association and the Worker’s Comp Health Care Provider Reimbursement Manual;
- Changes treatment of receiverships;
- Allows the DFS Division of Investigative and Forensic Services to initiate its own investigations (and not just conduct them);
- Gives the CFO (Jimmy Patronis)) several new powers, including the ability to remove members of boards and associations, including a reference to the Florida Association of Insurance Agents, with a focus on ethics;
- Adds a “misdemeanor directly related to the financial services business” for those who pled guilty or no contest as reason now for DFS to deny an application, suspend, revoke, or refuse to renew a license or appointment; and
- Adds to the grounds for DFS’s discretionary refusal, suspension, or revocation of license or appointment of sales representatives the “[f]ailure to report to the department within 30 days the final disposition of an administrative action taken against a salesperson by a governmental agency or other regulatory agency in this state or any other state or jurisdiction relating to the business of insurance, the sale of securities, or an activity involving fraud, dishonesty, trustworthiness, or breach of a fiduciary duty. The sales representative must submit a copy of the order, consent to order, or other relevant legal documents to the department.” (Return to Top of List)
Property Insurance ̶ HB 505 and SB 418 by Rep. Kim Berfield (R-Clearwater) and Senator Keith Perry (R-Gainesville) revises requirements for residential property insurance rate filings. The bill authorizes insurance companies to file with OIR their personal lines rating plans relating to windstorm mitigation construction standards and allows premium discounts and credits on residential property lines for windstorm mitigation measures. The bill also revises the timeframe for notices from carriers to policyholders of automatic bank withdrawal increases, and revises requirements for notice of certain automobile policies. The bill also authorizes the state Division of Emergency Management Director to appoint a designee to serve on the Florida Commission on Hurricane Loss Projection Methodology. The house bill is awaiting its first hearing in the House Insurance and Banking Subcommittee. The senate bill is awaiting committee assignments. (Return to Top of List)
Auto Insurance:
Motor Vehicle Liability Policies ̶ HB 57 by Rep. Keith Truenow (R-Tavares) revises the definition of “motor vehicle liability policy” to include certain policies issued by specified risk retention groups and further defines those groups as being “A”-rated and providing only commercial coverage for its members. The bill currently has no Senate companion. It is awaiting its first hearing before the House Insurance & Banking Subcommittee. (Return to Top of List)
Motor Vehicle Insurance ̶ HB 429 by Rep. Danny Alvarez (R-Brandon) 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. The primary difference between PIP and mandatory BI is that under PIP, someone injured in an auto accident seek coverage first under their own PIP policy, whereas under mandatory BI, someone injured in an auto accident would seek recovery from a responsible third-party’s (other driver’s) BI coverage. There is no companion bill in the Senate as of yet, and the bill is currently awaiting its first hearing in the House Insurance and Banking Subcommittee. (Return to Top of List)
Commercial Vehicle Insurance ̶ SB 434 by Senator Tom Wright (R-Port Orange) revises liability insurance requirements for movers’ commercial motor vehicles and revises additional liability insurance requirements for commercial motor vehicles, providing an exception and a requirement for wreckers. The bill currently has no House companion and is awaiting committee assignments. (Return to Top of List)
Post-lost Benefit Assignments Under Motor Vehicle Insurance Policies ̶ HB 541 by Rep. Griff Griffitts (R-Panama City) would bar vehicle insurance policyholders from entering into Assignment of Benefits (AOB) contracts with repair shops. Specifically, it would prohibit policyholders from entering into such agreements starting with policies issued on or after July 1, 2023. “Any attempt by a policy owner to enter into such assignment agreement is void and unenforceable,” the legislation reads. The bill currently has no Senate companion and is awaiting committee assignments. (Return to Top of List)
Health Insurance:
Governor DeSantis released a legislative proposal of reforms January 12 on Pharmacy Benefit Managers (PBMs) that “will enhance transparency and reduce the influence of pharmacy middlemen, which will help consumers as well as our small pharmacies,” he said. This is a subject we have followed for years and picks up where the Florida Legislature left off in March 2022 with passage of HB 357 to increase oversight of PBMs, in part by giving the Office of Insurance Regulation (OIR) more authority over the companies.
Access to Pharmacies and Prescription Drugs Under Insurance and Pharmacy Benefit Managers Policies ̶ HB 203 by Rep. Karen Gonzalez Pittman (R-Hillsborough) addresses much of the Governor’s proposal. It requires OIR to examine PBMs to ascertain compliance with specified laws; requires PBMs to have standard contracts with pharmacies; prohibits PBMs from denying pharmacies & pharmacists the right to participate as contract providers; authorizes persons & entities to bring actions & injunctive relief; prohibits PBMs from engaging in acts against patients; and prohibits health insurers & PBMs from engaging in acts relating to covered clinician-administered drugs. The bill currently has no Senate companion and is awaiting committee assignments. (Return to Top of List)
Health Insurance Cost Sharing ̶ SB 46 by Senator Tom Wright (R-Volusia) also addresses Pharmacy Benefit Managers (PBMs). It required specified individual health insurers and their PBMs to apply payments by or on behalf of insureds toward the total contributions of the insureds’ cost-sharing requirements. Similar requirements would be made on specified health insurance groups and in contracts with PBMs. The bill currently has no House companion and is awaiting its first hearing before the Senate Banking and Insurance Committee. (Return to Top of List)
Telehealth Practice Standards ̶ HB 267 and SB 298 by Rep. Tom Fabricio (R-Miramar) and Senator Jim Boyd (R-Bradenton) revises the definition of the term “telehealth” to strike the current prohibition on audio-only telephone calls. A similar bill reached an impasse in last year’s regular session over whether to strike the prohibition. (Return to Top of List)
Physician Certifications for the Medical Use of Marijuana ̶ SB 344 & HB 387 by Sen. Jason Brodeur, (R-Sanford), and Rep. Spencer Roach, (R-North Fort Myers) would allow physicians to use telehealth to recertify medical-marijuana patients. Patients are required to receive in-person physical exams from physicians to get certified to use medical marijuana. Under current law, they also are required to be evaluated in person at least once every 30 weeks for recertification. This legislation would allow recertification to be done through telehealth, which generally involves using online technology to provide care remotely. The House bill is awaiting its first hearing in the House Healthcare Regulation Subcommittee, while the Senate bill is awaiting committee assignments. (Return to Top of List)
Consumer Protections:
Contacting Consumer Debtors ̶ SB 128 and HB 113 by Senator Ana Maria Rodriguez (R-Miami-Dade) and Rep. Alex Andrade (R-Pensacola) prohibits a creditor from contacting a consumer whose debt arose from documented elder and economic abuse or human trafficking. Those who violate that would be subject to the same sanctions as any other consumer debt collector. The bill also requires the state Office of Financial Regulation to inform and furnish relevant information to the appropriate regulatory body of the state, the Federal Government, or The Florida Bar if a person has been named in a certain consumer complaint alleging specified violations of law. It also authorizes debtors to bring civil actions against creditors who violate the act. We spend a lot of time trying to help the elderly, who are often victims of contractor fraud and/or unscrupulous attorneys. This is a helpful bill in combating additional abuse at the hands of such abusers. The two bills are similar and are awaiting first hearings before their respective insurance committees. (Return to Top of List)
Home Repairs and Solicitation Sales ̶ HB 419 by Rep. John Temple (R-The Villages) requires unlicensed vendors to take certain actions within a specified timeframe after receiving initial payment. The bill provides conditions under which such vendors do not have just cause, provides criminal penalties and guidelines for prosecuting violations, and revises exemption from permitting requirements for certain solicitors, salespersons, and agents. The bill currently has no Senate companion and is awaiting its first hearing in the House Regulatory Reform & Economic Development Subcommittee. (Return to Top of List)
Disaster Recovery & Construction:
Causes of Action Based on Improvements to Real Property ̶ HB 85 by Rep. John Snyder (R-Stuart) reduces the statute of limitations to file an action founded on the design, planning, or construction of a property improvement and defines “material violation.” Such an action would have to be filed within four years, and in any event would need to be commenced within seven years rather than the current 10 years after a certificate of occupancy or completion is issued. Material violations would be those that have or likely will cause physical harm or significant damage to the performance of the building or its systems. Similar to a bill that didn’t pass in the 2022 session, the measure is meant to protect builders from frivolous lawsuits and help control rising liability insurance costs. The bill currently has no Senate companion. The bill passed its first committee stop in the House Civil Justice Subcommittee on a 15-3 vote. It will be heard tomorrow (Feb 7) in the House Regulatory Reform & Economic Development Subcommittee. (Return to Top of List)
Real Estate:
Limitation of Actions Involving Real Estate Appraisers and Appraisal Management Companies ̶ HB 213 by Rep. David Borrero (R-Miami-Dade) is another bill aimed at reducing frivolous litigation. With the exception of allegations of fraud, it requires any action against a real estate appraiser or appraisal management company that occurred prior to July 1, 2023 must be filed by July 1, 2024. Subsequent actions would need to similarly be filed within one year after the alleged act is discovered or should have been discovered, but in any event brought no more than four years after services were rendered. The bill currently has no Senate companion and is awaiting committee assignments. (Return to Top of List)
Flood Disclosures for Real Property Sales ̶ SB 484 & HB 325 by Senator Jennifer Bradley (R-Fleming Island) & Rep. Susan Valdes (D-Tampa) would require people selling real estate to provide information to buyers about flooding. Under the bill, sellers would be required to disclose information such as whether the property has sustained flood damage; whether it is located in a designated flood-hazard zone; whether sellers have received federal assistance for flood damage; and whether flood damage insurance claims have been filed. The Senate bill is awaiting committee assignments, while the House bill is pending its first hearing in the House Regulatory Reform & Economic Development Subcommittee. (Return to Top of List)
Environment:
Implementation of the Recommendations of the Blue-Green Algae Task Force ̶ HB 423 by Rep. Lindsay Cross (D-St. Petersburg) requires owners of certain onsite sewage treatment & disposal systems to have the systems inspected; requires DEP to administer the program; and requires estimated pollutant load reductions in basin management action plans to meet or exceed specified requirements. The bill revises requirements for allocation of such reductions, requires plans to provide & reevaluate certain mitigation strategies, and requires new or revised plans to list certain spatially focused projects. Finally, this legislation requires DEP to assess certain projects, and requires assessments to be included in plan updates. The bill is awaiting its first hearing in the House Water Quality, Supply & Treatment Subcommittee and has no Senate companion as of yet. (Return to Top of List)
LMA Newsletter of 2-6-23
