Bill Watch – Lisa Miller Associates

Start of the 2023 legislative session

Florida’s 40 state Senators and 119 state Representatives (the 120^th seat is open pending a special election) return to Tallahassee today to begin the regular 60-day legislative session. The Senate and House chambers will meet in joint session tomorrow (March 7) at 11am to welcome the Governor for his annual state of the state address. Then after lunch, both chambers will be busy resuming committee meetings, further crafting some of the 1,606 bills that have been filed so far this session. (You can check out the full Senate and House schedules.)

This 2023 session will see significant bills expected to pass on comprehensive tort reform, both for the insurance industry and general business in Florida, building on the 2022 Insurance Consumer Protections & Market Reforms. There are many newly filed bills to report this week in that regard, as well as new bills to respond to the 2022 hurricanes and better prepare Florida for future storms. Some of the other major topics from this session are expected to include abortion, transgender surgeries, prescription coverage, and a variety of new consumer protections in insurance and real estate. But we are still awaiting a bill that would provide additional affordable reinsurance to Florida’s domestic property insurance companies that many feel are crucial in preparation for the June 1 start of the Atlantic hurricane season.

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 (health) Updated
Insurance (property) New
Surplus Requirements for Residential Property Insurers New
Insurance Claims New
Financial Services Updated
Property Insurance Updated
Motor Vehicle Liability Policies
Motor Vehicle Insurance
Commercial Vehicle Insurance
Post-lost Benefit Assignments Under Motor Vehicle Insurance Policies Updated
Civil Remedies Updated
Civil Remedies for Unlawful Employment Practices Updated
Litigation Financing Consumer Protection New
Consumer Protection New
Emergency Residential Property Insurance Assistance Trust Fund New
Contacting Consumer Debtors
Home Repairs and Solicitation Sales
C ollateral Protection Insurance on Real Property Updated
Natural Emergencies New
Causes of Action Based on Improvements to Real Property Updated
Condominium and Cooperative Associations Updated
Flood Damage Prevention Updated
My Safe Florida Home Program Updated
Limitation of Actions Involving Real Estate Appraisers and Appraisal Management Companies
Flood Disclosures for Real Property Sales
Flood Zone Disclosures for Dwelling Units Updated
Implementation of the Recommendations of the Blue-Green Algae Task Force Updated
Access to Pharmacies and Prescription Drugs Under Insurance and Pharmacy Benefit Managers Policies
Health Insurance Cost Sharing Updated
Telehealth Practice Standards Updated
Physician Certifications for the Medical Use of Marijuana

General Insurance:

Insurance (health) ̶ SB 312 by Senator Jay Collins (R-Tampa) and newly filed HB 1111 by Rep. Webster Barnaby (R- Deland) 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 Senate bill is still awaiting its first hearing in the Senate Banking and Insurance Committee. The House bill is awaiting its first meeting in the Insurance and Banking Subcommittee, one of three committee stops. (Return to Top of List)

(NEW) Insurance (property) – SB 1340 by Senator Erin Grall (R- Fort Pierce) and the similar HB 1431 by Rep. Spencer Roach (R-North Ft. Myers) modify and expand the 2022 consumer insurance reforms. The Senate bill:

Allows the recovery of extra-contractual damages for common law bad faith;
Provides that automobile insurance companies also writing homeowners insurance may not continue to write in Florida unless at least 5% of their total policy count in the state is homeowners insurance policies;
Requires new domestic residential property insurance companies to have a surplus of at least $30 million;
Requires the Florida Office of Insurance Regulation (OIR) to conduct market conduct exams after a hurricane under certain conditions;
Requires the OIR to publish litigation data from 2021, 2022, and 2023 on its website;
Requires Citizens Insurance to file litigation data with the Legislature each year;
Removes the requirement that a Citizens Insurance policyholder must prove water damage was not caused by flood;
Requires the Insurance Consumer Advocate to prepare an annual report analyzing rate filings involving a rate increase request and summarizing the grounds upon which the increase was approved;
Provides that an admitted or surplus lines insurance company writing homeowners or commercial property insurance may not cancel or nonrenew a policy during a pending claim;
Requires insurance companies to provide certain adjuster and engineer reports to the policyholder within 10 days after receipt and prohibits companies from imposing an additional premium because of a filed a claim, except under specific circumstances;
Limits the ability of insurance companies to cancel coverage, require additional repairs, or increase the policy premium for the first contract year once a binder is issued;
Provides that if a roof deductible is applied, no other deductible may be applied to any other loss caused by the same peril and requires 48 hours’ notice to a homeowner before an inspection of a homeowner’s residential property;
Provides that repeated violations of the 90-day pay or deny rule is an unfair trade practice and that the claim filing deadlines in 627.70132 are tolled during the period of active duty for a policyholder in active military service; and
Requires that a policyholder must agree to appraisal, that appraisal must be invoked within 30 days after presentation of a dispute, and that appraisal may not be invoked after the filing of a lawsuit.

Neither SB 1340 nor HB 1431 has been assigned to committees yet. (Return to Top of List)

(NEW) Surplus Requirements for Residential Property Insurers – SB 1528 and a comparable HB 1431 by Senator Linda Stewart (D- Orlando) and Rep. Spencer Roach (R-North Fort Myers) increases surplus requirements from the current $15 million to $20 million for new property insurance companies entering the Florida market. Also, beginning July 1, 2030, and every 5 years after, the minimum surplus requirement must be increased by $5 million. Both bills were filed this past Friday and are awaiting committee assignments. (Return to Top of List)

(NEW) Insurance Claims – SB 1662 by Representative Erin Grall (R- Fort Pierce) requires the Office of Insurance Regulation to consider the recovery of funds under specified provisions in reviewing an insurance company’s rates. The bill also requires insurance companies report the recovered funds under specified provisions and requires that a policyholder’s payment of a deductible or copayment is not a condition of a carrier’s claim payment. The bill does not have a House companion and is waiting committee assignments. (Return to Top of List)

Financial Services ̶ HB 487 by Rep. Michelle Salzman (R-Cantonment) and SB 1158 by Senator Nick DiCeglie (R-St.Petersburg) 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.”

The house bill is still awaiting its first hearing in the House Insurance and Banking Subcommittee and the recently filed Senate bill will have its first stop in the Senate Banking and Insurance Committee. (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 allows a residential property insurer’s rate filing to estimate projected hurricane losses by using a weighted or straight average of two or more models approved by the Florida Commission on Hurricane Loss Projection Methodology. 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. It also authorizes the state Division of Emergency Management Director to appoint a designee to serve on the Florida Commission on Hurricane Loss Projection Methodology.

SB 418 unanimously passed in the Banking and Insurance Committee on February 21 with an adopted amendment that allows insurers greater flexibility in offering higher deductibles for high-value homes. Currently, deductibles must be offered at 2%, 5%, or 10%, and the amendment changes these restrictions to allow deductibles up to 10% for homes valued under $3 million, and up to 15% for those valued over $3 million. Senator Perry emphasized that this amendment should open up the market for coverage of higher-valued homes. The bill is scheduled to be heard tomorrow (March 7) at 2pm before the Senate Military and Veterans Affairs, Space and Domestic Security Committee. HB 505 is still awaiting its first hearing in the House Insurance and Banking Subcommittee. (Return to Top of List)

Auto Insurance:

Motor Vehicle Liability Policies ̶ HB 57 by Rep. Keith Truenow (R-Tavares) and Senator Nick DiCeglie (R-St. Petersburg) 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 House bill passed unanimously on Feb. 14 in the Insurance & Banking Subcommittee. Rep. Stevenson inquired about insolvency measures, but was informed that the companies affected by the bill have an incredibly high capital access and insolvency will likely never happen. The bill is awaiting scheduling in the House Commerce Committee, its last stop before the full House. The Senate bill is still awaiting its first hearing in the Senate Banking and Insurance Committee. (Return to Top of List)

Motor Vehicle Insurance ̶ HB 429 and SB 586 by Rep. Danny Alvarez (R-Brandon) and Senator Erin Grall (R-Fort Pierce) 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. The House bill is still awaiting its first hearing in the House Insurance and Banking Subcommittee. The Senate bill is still awaiting its first hearing in the Senate Banking and Insurance Committee. (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 its first hearing in the Senate Banking and Insurance Committee. (Return to Top of List)

Post-lost Benefit Assignments Under Motor Vehicle Insurance Policies ̶ HB 541 by Rep. Griff Griffitts (R-Panama City) and SB 1002 by Senator Linda Stewart (D- Orlando) and Senator Ed Hooper (R-Palm Harbor) bars 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 House bill is still awaiting its first hearing in the House Insurance & Banking Subcommittee. The newly filed Senate bill has been referred to the Banking and Insurance Committee, its first of three committee stops. (Return to Top of List)

Tort Reform:

Civil Remedies ̶ HB 837 by Reps. Tommy Gregory (R-Lakewood Ranch) and Tom Fabricio (R-Miami-Dade) and the recently filed and similar Senate companion, SB 236 by Senator Travis Hutson (R-Palm Coast) pick-up where the December 2022 special session on insurance market reforms left off, by eliminating one-way attorney fees in all lines of insurance – not just property insurance. The bill also makes other significant changes to reduce excessive litigation and resulting costs to insurance consumers, including the following:

Ends contingency fee multipliers and adopts the lodestar method of calculating attorney fees based on reasonable time and rate;
Establishes a uniform process for the admissibility of evidence and the calculation of medical damages in personal injury or wrongful death actions, and it prohibits damages from including any inflated amount above the amounts actually paid for services rendered, regardless of the source of payment;
Modifies comparative fault, by requiring that if a plaintiff is found to be more than 50% at fault, they cannot recover damages in a lawsuit. This adopts the standard used in most states;
Provides a “safe harbor” for bad faith claims by precluding the filing of suit if the insurer pays damages or rectifies violations within 60 days of being notified; adds sections of law that say “negligence alone is insufficient to constitute bad faith” and that people who are insured and their representatives “have a duty to act in good faith in furnishing information regarding the claim, in making demands of the insurer, in setting deadlines, and in attempting to settle the claim.”; reduces multi-claimant exposures on bad faith by permitting interpleader and arbitration rulings; clarifies that punitive damages will not be awarded unless there is a general business practice of acts that are either willful, wanton, or malicious or in reckless disregard of an insured rights; clarifies there’s no class actions; and clarifies there’s no double recoveries under statute or common law.
Requires the disclosure of and procedure for use of Letters of Protection from plaintiff attorneys to medical providers, guaranteeing payment of a client’s medical expenses from a future lawsuit settlement or verdict award;
Ends the attorney-client communication privilege from referrals of clients to treating physicians.

During the House Civil Justice Subcommittee meeting of Feb. 24, representatives discussed the benefits of the bill, including reducing costs and preventing windfalls, and potential harms of the proposed changes, such as limiting access to medical care and preventing juries from deciding reasonable care. Rep. Gregory, addressing those concerns in closing, emphasized the problem that the bill seeks to solve. “The insurance premiums rising are driven by only one thing: claims. And if the claims are driven by excessive litigation, then that is inappropriate. If the claims are driven and the amounts of them by inflated damages, that is inappropriate. When you have one way fees, when you have fee multipliers, you are going to get excessive litigation.” After Rep. Gregory’s closing remarks, the committee passed the bill on a 12-6 vote. Notably, Rep. Mike Beltran (R-Valrico), a vocal opponent of the bill, was the sole Republican voting against the bill. The bill has one more committee stop in the Judiciary Committee before going to the full House. The Senate companion, SB 236 was filed last Thursday and will have its first hearing tomorrow (March 7) at 4pm before the Senate Banking and Insurance Committee. (Return to Top of List)

Civil Remedies for Unlawful Employment Practices ̶ HB 315 and SB 738 by Rep. Alex Andrade (R-Pensacola) and Senator Jason Brodeur (R-Lake Mary) amends Section 760.11 of the Florida Statutes to provide limits on a judgment for punitive and compensatory damages for claims brought under the recently enacted Critical Race Theory (CRT) reforms. The bill allows judgment for the total amount of punitive damages awarded to an aggrieved party claiming CRT discrimination to be at least $50,000 and up to $1 million. The judgment for the total amount of compensatory damages awarded to the aggrieved person for mental anguish and loss of dignity must be the amount of the aggrieved person’s actual damages or three times the amount of his or her highest annual salary, whichever is greater. The total amount of recovery against the state and its agencies and subdivisions may not exceed the sovereign immunity limitations in statute. The right to trial by jury is preserved in any such private right of action in which the aggrieved person is seeking compensatory or punitive damages, and any party may demand a trial by jury. The Commission on Human Relations’ determination of reasonable cause is not admissible into evidence in any civil proceeding, including any hearing or trial, except to establish for the court the right to maintain the private right of action. A civil action brought under this section must be commenced no later than one year after the date of determination of reasonable cause by the commission. The commencement of such action divests the commission of jurisdiction of the complaint, except that the commission may intervene in the civil action as a matter of right. The House bill is awaiting its first hearing in the House Civil Justice Subcommittee, while the Senate bill has been assigned to Judiciary, one of three committee stops. (Return to Top of List)

(NEW) Litigation Financing Consumer Protection – SB 1612 and HB 1447 by Senator Clay Yarborough (R- Jacksonville) and Rep. Toby Overdorf (R-Stuart) would regulate litigation finance (also called litigation funding or legal financing), where a third party unrelated to the lawsuit provides capital to a plaintiff involved in litigation in return for a portion of any financial recovery from the lawsuit. The measure would require litigation financiers to register with the Department of State and file a surety bond along with other registration requirements. It would also prohibit certain practices and conduct and establish requirements for such financiers to assess specified interest, fees and charges. A similar effort in the 2021 session failed. Both bills were filed this past Friday and are awaiting committee assignments. (Return to Top of List)

Consumer Protections:

(NEW) Consumer Protection – HB 1185 by Representative Giallombardo (R-Cape Coral) and SB 1398 by Senator Nick Diceglie (R- St. Petersburg) provides additional requirements for distributed energy systems and specifies violations and penalties for licensees. The bill prohibits certain contracts by public adjusters and provides an additional requirement for a public adjuster’s license. The bill revises provisions relating to hurricane deductibles and reduces the time period in which a property insurance company may cancel a policy in certain circumstances. The bill also revises duties of carriers & agents concerning the sale of annuities and provides additional requirements for service agreement policies. Both bills are awaiting committee assignments. (Return to Top of List)

(NEW) Emergency Residential Property Insurance Assistance Trust Fund – SB 1526 and HB 1415 by Senator Tracie Davis (D-Jacksonville) and Rep. Angie Nixon (D-Jacksonville) establishes a trust fund within the Department of Financial Services (DFS) that will assist homeowners with annual income under $250,000 acquire homeowners insurance. The bills were filed this past Friday and are awaiting committee assignments. (Return to Top of List)

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)

Collateral Protection Insurance on Real Property ̶ SB 410 and HB 793 by Senator Ileana Garcia (R-Miami) and Rep. Juan Fernandez-Barquin (R-Miami) creates a new section in Chapter 627 of the Florida Statutes, titled “Real Property Collateral Protection Insurance.” It establishes regulations for insurance companies and agents engaging in transactions involving collateral protection insurance (the so-called “lender-placed” or “force-placed” insurance) on real property, including manufactured and mobile homes. It defines terms, outlines the terms of policies, and provides calculations of coverages and premiums. It also prohibits certain practices, such as issuing collateral protection insurance if the insurer or insurance agent owns the real property; compensating a lender, investor, or servicer on collateral protection insurance policies; offering contingent commissions, profit-sharing, or other payments dependent on profitability or loss ratios to any person affiliated with a servicer or the insurer in connection with collateral protection insurance; and providing free or below-cost outsourced services to a lender, investor, or servicer. The bill also specifies the terms of the insurance policy, which must become effective no earlier than the date of lapse of insurance upon mortgaged real property, and must terminate on the earliest of certain dates. It also states that an insurance charge may not be made to a mortgagor for collateral protection insurance before the effective date of the insurance or for a term longer than the scheduled term of the insurance. The Senate bill is awaiting its first hearing in the Senate Banking and Insurance Committee, while the House bill has been assigned to its first committee stop in the Insurance and Banking Subcommittee. (Return to Top of List)

Disaster Recovery & Construction:

(NEW) Natural Emergencies – SB 250 by Senator Jonathan Martin (R- Fort Myers) establishes temporary housing for disaster relief workers and makes permanent funding for local-government emergency loans. After both Hurricane Ian and Nicole devastated parts of the state last year, the Florida Legislature is pursuing a series of proposals, including SB 250, aimed at helping communities recover from future storms. Other provisions of the bill include ensuring that people would be able to remain on their property as they rebuild and requiring quicker approval of building permits. Another provision will set a 45-day time frame on owners removing their destroyed boats from state waters. (See Hurricane Response & Preparedness in this newsletter.) The bill has been referred to the Community Affairs Committee, one of only two stops. The House Select Committee on Hurricane Resiliency & Recovery is expected to releases its own proposal soon, which will take the form of a companion House bill to SB 250. (Return to Top of List)

Causes of Action Based on Improvements to Real Property ̶ HB 85 and SB 360 by Rep. John Snyder (R-Stuart) and Senator Travis Hutson (R-Palm Coast) revises the timeline for filing lawsuits on design, planning, or construction defects. It shortens the 10-year statute of repose to 7 years and adjusts the trigger date of that 7 year marker by changing the commencement dates to run based on the date the Certificate of Occupancy was issued. The bill also specifies this timeline in regard to temporary certificate of occupancy, certificate of occupancy, and certificate of completion. The Senate Judiciary Committee on February 21 passed SB 360 on a 10-1 vote. Senator Book was the only legislator to vote against this bill, after inquiring about identifying defects in homes and apartment complexes, and the difference in timeline between the two, concerned that applying the same timeline for an apartment complex may not account for delays in tenants moving in if it starts to run from the time the builder delivers the finished product. The bill will be heard next on Wednesday (March 8) at 1:30pm before the Senate Rule Committee.

The similar House bill passed 14-1 on February 7 by the House Regulatory Reform & Economic Development Subcommittee. Members engaged in many questions regarding this bill’s relationship to affordable housing and rising insurance costs, with Rep. Casello specifically asking how this bill can help making housing more affordable. Rep. Snyder replied that in addition to the rising costs of materials and inflation, the cost of insurance for builders has also gone up due to frivolous lawsuits, and that by cleaning up the statute, this will lower the cost of insurance and thus lower the cost of housing projects. HB 85 is awaiting its final committee hearing in the House Judiciary Committee. (Return to Top of List)

Condominium and Cooperative Associations ̶ SB 154 by Senator Jennifer Bradley (R-Fleming Island) makes several clarifying and technical changes to the requirements for Condominium and Cooperative Associations, including revising the circumstances under which community association managers or management firms must comply with the milestone inspection requirement passed in the May 2022 special session in SB 4-D. The bill clarifies that milestone inspections apply to buildings that are three stories tall or higher; revises the definition of the terms “milestone inspection” and “substantial structural deterioration”; authorizes local enforcement agencies to make certain determinations relating to milestone inspections after a building reaches a specified age; authorizes municipal governing bodies to adopt certain ordinances relating to association repairs; revises the types of policyholders not required to purchase flood insurance as a condition for maintaining certain policies issued by the Citizens Property Insurance Corporation; and revises condominium association reserve account requirements for structural integrity improvements.

The bill had its first hearing on Feb. 21 before the Senate Regulated Industries committee, passing unanimously. Four amendments were added, which aim to ensure the safety of those living in condos by preventing the waiver of life safety elements of the building, while still allowing for the waiver of other items with a majority vote of all voting interests.

Senator Davis referenced the committee’s previous meeting on Feb. 7, which focused on the differences between coastal and inland buildings, including salt corrosion, and whether strict requirements are necessary for inland buildings whose tenants don’t necessarily have the financial resources for building repairs that their coastal counterparts do. Senator Davis asked Senator Bradley if the bill would impact or raise costs on association members and condo owners. Senator Bradley noted that it depends on the financial health of the condo, and whether or not the condo has been reserving and maintaining the structural integrity components of the building. She also clarified that the bill would not attach personal liability to condo board members. Senator Davis asked if non-structural items could be waived in both three-story and higher condos and condos that are two stories or less, to which Senator Bradley answered that they could be waived if they have an indeterminate useful life.

I testified at the meeting, asking the committee to consider putting inspection data in a central database, available to the insurance industry to assist in underwriting. Such a database would also help consumers considering purchase of a condo unit determine if the building has been re-inspected and the outcome of the inspection and any remediation performed. You can watch my testimony here.

A comparable bill was filed in the House this past Friday, HB 1395 by Rep. Vicki Lopez (R-Miami-Dade). (Return to Top of List)

Flood Damage Prevention ̶ HB 859 by Rep. Fabian Basabe (R-North Bay Village) and recently filed SB 1018 by Senator Jay Trumbull (R-Panama City) provides legislative findings that public and private investments in communities are important for economic growth, and that protecting structures from flooding is essential to maintaining resilient communities. The bill modifies freeboard requirements for certain buildings. (Freeboard is the additional height, usually expressed as a factor of safety in feet, above the base flood elevation in determining the level at which a structure’s lowest floor or the bottom of the lowest horizontal structural member must be elevated.) The bill also establishes maximum voluntary freeboard requirements for all new construction and substantial improvements to existing construction, and prohibits voluntary freeboard from being used in the calculation of the maximum allowable height for certain construction in applicable zoning districts. The bill requires the Florida Building Commission to develop and adopt minimum freeboard requirements by a specified date, and to review the freeboard requirements in the Florida Building Code every 5 years. The House bill is awaiting its first hearing in the Regulatory Reform & Economic Development Subcommittee. The Senate bill is awaiting its first hearing in the Community Affairs Committee. (Return to Top of List)

My Safe Florida Home Program ̶ HB 881 and SB 748 by Rep. Chip LaMarca (R-Lighthouse Point) and Senator Jim Boyd (R-Bradenton) amends the My Safe Florida Home Program by providing that licensed, rather than certified, inspectors are to provide hurricane mitigation inspections on site-built, single-family, residential properties that have been granted a homestead exemption. The bill also revises the information provided to homeowners as part of a hurricane mitigation inspection, revises the hurricane mitigation inspectors that may be selected by the Department of Financial Services to provide hurricane mitigation inspections, and deletes a provision requiring the department to implement a certain quality assurance program. Additionally, the bill revises the criteria for mitigation grant eligibility for homeowners; deletes a provision that subjects mitigation projects to random reinspection for a specified timeframe; revises the improvements for which mitigation grants may be used, including secondary water barriers for roofs; and revises the amount that low-income homeowners may receive from the department under the grant program. The House bill is awaiting its first hearing in the House Insurance & Banking Subcommittee. The Senate bill is awaiting its first hearing in the Senate Banking and Insurance Committee. (Return to Top of List)

Real Estate:

Limitation of Actions Involving Real Estate Appraisers and Appraisal Management Companies ̶ HB 213 and SB 398 by Rep. David Borrero (R-Miami-Dade) and Senator Ana Maria Rodriguez (R-Miami) 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 House bill is awaiting its first hearing in the House Civil Justice Subcommittee, while the Senate companion bill awaits its first hearing in the Senate Judiciary Committee. (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 its first hearing in the Senate Judiciary Committee, while the House bill awaits its first hearing in the House Regulatory Reform & Economic Development Subcommittee. (Return to Top of List)

Flood Zone Disclosures for Dwelling Units ̶ SB 716 by Senator Linda Stewart (D-Orlando) and newly filed HB 1291 by Rep. Bruce Antone (D-Orlando) requires landlords or persons authorized to enter into rental agreements on behalf of landlords to make written disclosures to tenants before the commencement of a tenancy regarding whether the dwelling unit is located within a flood zone established by the Federal Emergency Management Agency. This disclosure must include the risk designation for the flood zone and definition of the designation. The Senate bill is awaiting its first hearing before the Senate Judiciary Committee, while the House bill is awaiting committee assignments. (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) and newly filed SB 1538 by Senator Linda Stewart (D- Orlando) 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 House bill is awaiting its first hearing in the House Water Quality, Supply & Treatment Subcommittee while the Senate bill 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, with Senate companion SB 420 by Senator Tom Wright (R-Port Orange). 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 House bill is awaiting its first hearing in the House Healthcare Regulation Subcommittee. The Senate bill is awaiting its first hearing in the Senate Health Policy Committee. (Return to Top of List)

Health Insurance Cost Sharing ̶ SB 46 by Senator Tom Wright (R-Volusia) and the newly filed identical HB 1063 by Rep. Lindsay Cross (D-St. Petersburg) also addresses Pharmacy Benefit Managers (PBMs). It requires 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 Senate bill is still awaiting its first hearing before the Senate Banking and Insurance Committee. The House bill is awaiting its first hearing before the Healthcare Regulation Subcommittee. (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, allowing Medicaid to elect reimbursement. A similar bill reached an impasse in last year’s regular session over whether to strike the prohibition. The Senate bill had its first hearing on Feb. 20 before the Health Policy Committee, passing unanimously. Senators asked questions about the cost for the audio only telehealth bills, if the patient would pay a copay, and if the bill would allow elderly individuals, minorities, and those in urban communities with poor broadband access to communicate with their doctors. Senator Boyd responded to the questions about the bill by stating that the cost for audio only telehealth bills would likely be the same as in-person visits, and that patients would likely pay a copay. He also clarified that if the healthcare practitioner and the patient decide an in-person visit is warranted, they can follow up with that. He said this would help those in rural areas and communities where it is cost effective, convenient, and time saving. Senator Harrell also emphasized that this bill would help those in rural areas who do not have the capability for video conferencing. The bill now goes to the Senate Banking and Insurance Committee. The House bill is awaiting its first hearing in the Healthcare Regulation Subcommittee. (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 its first hearing in the Senate Health Policy Committee. (Return to Top of List)

LMA Newsletter of 3-6-23