Bill Watch

Recap of Week 9: End of 2023 Session

The Florida House of Representatives on its final day of session, May 5, 2023

The Florida Legislature ended its 2023 session this past Friday morning with the same efficiency and expediency it displayed throughout the 60-day session.  It’s the first session in several years to end on-time and early in the day at that!  There were 356 bills that passed both chambers out of 1,873 bills filed.  With a supermajority in both houses, all of the Republicans’ priority bills passed and nearly all of the Governor’s.  More on those in a moment.

In passing the Insurer Accountability bill (SB 7052 below) the legislative leadership, in part, was trying to show skeptics that it wasn’t being too friendly to the insurance industry after all…that what it could “give” through the tort reform of HB 837, it could “take” through increased regulation and fines on insurance companies.  “Property insurers who prey on Floridians with deliberate efforts to reject or reduce legitimate claims deserve to get hammered,” said House Speaker Paul Renner (R-Palm Coast) in a statement.  “Recent reforms by this Legislature to create a healthier and more balanced property insurance market will make homeowner’s insurance more affordable.  As more competition enters the market, we need to ensure Florida’s homeowners are not taken advantage of,” he said.

Indeed, some legislators felt not enough accountability had been achieved.  Here is a video link to the short final debate on SB 7052 on the House floor last Wednesday before it passed unanimously and was sent to the Governor for his consideration.

CFO Jimmy Patronis took a mostly higher road in his release, stressing the truly helpful parts of the bill.  “This bill, along with current budget allocations, will provide the Department of Financial Services with nearly $4 million in additional funding, and more positions, to expand support for our mediation program and the insurance helpline.  This infusion of cash will bolster our ability to deliver effective mediation services and alleviate workload challenges, so that DFS can better aid policyholders.  With the reforms the Legislature enacted to stabilize Florida’s insurance market, we need to make sure policyholders have access to the tools they need to obtain their claims.  This bill will also provide the Office of Insurance Regulation with more tools to hold insurers accountable.  With higher fines, tighter timelines, and greater reporting requirements, Florida is holding carriers’ feet to the fire to ensure they are being responsive to the needs of policyholders.”  

The legislature passed a $117 billion dollar state budget for the new fiscal year that begins July 1, an increase of nearly $5 billion from the current year’s budget.  It includes pay raises for state employees, added hurricane relief, and lots more, per City & State Florida, while adding another $2 billion to state reserves that now total nearly $11 billion.  It includes $382.5 million for Everglades restoration and another $400 million for conservation easements.  One new environmental program would create a $10 million, 10-year “Florida Restoration Plan” to implement tools and technologies to restore natural seagrass.  There’s also millions of dollars in legislators’ local projects that they hope will survive the Governor’s veto pen.  Lawmakers also passed a historic $2.7 billion tax cut package that includes the popular annual sales tax holidays, including for purchase of storm supplies. 

This Bill Watch clearly labels bills that DID NOT PASS and those that PASSED.  PASSED bills require the Governor’s signature to become law, unless otherwise noted.   

Here is a list of the legislative bills we followed in this past 60-day session.  You can click the bill link in the list below to go directly to the bill and its details farther below.  Updates within each bill are noted in blue font:

PASSED

Consumer Protection
Insurer Accountability
Financial Services
Property Insurance
Property Insurance for Wind and Flood
Motor Vehicle Glass
Collateral Protection Insurance on Real Property
Natural Emergencies
Condominium and Cooperative Associations
My Safe Florida Home Program
Limitation of Actions Involving Real Estate Appraisers and Appraisal Management Companies
Insurance (health)
Telehealth Practice Standards
Physician Certifications for the Medical Use of Marijuana
Prescription Drugs Signed Into Law
Civil Remedies Signed Into Law
Causes of Action Based on Improvements to Real Property Signed Into Law

DID NOT PASS

Motor Vehicle Liability Policies
Contacting Consumer Debtors
Flood Damage Prevention
Coverage for Skin Cancer Screenings
Implementation of the Recommendations of the Blue-Green Algae Task Force
Civil Remedies for Unlawful Employment Practices
Litigation Financing Consumer Protection
Insurance (property)
Surplus Requirements for Residential Property Insurers
Insurance Claims
Motor Vehicle Insurance
Commercial Vehicle Insurance
Emergency Residential Property Insurance Assistance Trust Fund
Home Repairs and Solicitation Sales
Flood Disclosures for Real Property Sales
Flood Zone Disclosures for Dwelling Units
Access to Pharmacies and Prescription Drugs Under Insurance and Pharmacy Benefit Managers Policies

Consumer Protection – PASSED  ̶  HB 1185 by Representative Mike Giallombardo (R-Cape Coral) provides additional requirements for those in financial and insurance services and ancillary industries.  HB 1185 made it across the finish line with a unanimous bipartisan vote the day before session ended and awaits the Governor’s signature.  The enrolled bill shortens the time that a hurricane deductible can be applied to a loss.  Prior law defined the beginning of hurricane coverage as “any time a hurricane warning or hurricane watch is issued for any part of Florida.”  This bill deletes the reference to a hurricane watch so hurricane coverage now begins when a hurricane warning is issued for any part of Florida.

The bill shortens the time when a cancellation or termination of new business can occur from 90 days to 60 days after the policy is in force.  The bill also outlines new requirements for public adjuster contracts as follows:

• Prior to signing the contract, the policyholder must be given a disclosure statement approved by the Office of Insurance Regulation (OIR).
• The policyholder must sign the contract and initial each page of the contract.
• The policyholder must be given an executed copy of the contract.
• A copy of the signed contract must be given to the insurance company within seven days of execution.
• The contract must state that the public adjuster does not receive any compensation for services performed prior to the date the contract was executed.
• The contract must provide that, in the event of an emergency declaration by the governor, the policyholder can rescind the contract without penalty within 30 days after the date of loss or ten days after signing the contract, whichever is later.
• The contract must provide a right of rescission if the itemized estimate of the loss is not completed and submitted to the insurance company within 60 days.
• The disclosure statement must explain to the policyholder that they have the right to initiate contact with the insurance company, the company adjuster, the company’s attorney, or any person regarding the settlement of the claim.
• Prohibits the public adjuster from contracting for services of a third party without the expressed permission of the policyholder.
• Prohibits public adjusters from collecting a fee on any payments made prior to the execution of the public adjuster contract.
• The policyholder may cancel the public adjuster contract with no penalty or fees if a written estimate is not provided within 60 days after the contract is signed.

You can view the final enrolled bill here and most recent House Bill analysis from April 22.  (Return to Top of List)

Insurer Accountability  ̶  PASSED  ̶  SB 7052 by the Senate Banking and Insurance Committee and the Fiscal Policy Committee is intended to increase accountability and transparency of insurance companies with regulators and consumers.  It passed the House Thursday on a unanimous bipartisan vote with little debate and awaits the Governor’s signature.  (See additional remarks in the introduction of this Bill Watch.)  Its provisions are effective July 1, 2023.  You can view the final enrolled bill here.  Its major provisions:

On regulation:

• Section 1 (line 122) – requires the Florida Office of Insurance Regulation (OIR) to report any suspected violation of criminal law to the Division of Investigative and Forensic Service or law enforcement.
• Section 2 (line 132) – reduces the time for providing documents to the OIR regarding a complaint from 20 days after the receipt of a written request from 20 days to 14 days and increases the fines for non-compliance.
• Section 3 (line 151) – requires new quarterly report of enforcement activity by the OIR.
• Section 4 (line 196) – requires OIR to create a risk-based selection methodology for scheduling examinations of insurers.
• Section 5 (line 266) – requires additional market conduct examinations at any time at least 90 days after landfall of a hurricane. The language in the original bill has been clarified to make it clear that the companies that must be examined are
  • the top 20 insurers based on the ratio of insurance related consumer complaints to the total number of hurricane related claims, and
  • the top 20 percent of insurers based on the ratio of hurricane claims closed without payment to the total number of hurricane claims.

    An insurer providing liability coverage can be subject to enhanced penalties if the market conduct examination uncovers a pattern or practice of violating the insurance code. The new statute includes a long list of what an insurance company must do to respond adequately to a liability claim.

• Section 6 (line 476) – gives OIR the authority to fine companies rather than suspend or revoke their certificate of authority.
• Section 7 (line 531) – requires every company provide the OIR with at least 20 days’ notice prior to the temporary discontinuance of writing new business. Language has been added which makes it clear that this new statute does not apply to the temporary suspension of writing new business in response to a hurricane which may make landfall in Florida provided the suspension ceases within 72 hours after hurricane conditions are no longer present in Florida.
• Section 8 (line 565) – creates a new section of law, FS 624.805 defining the standards for determining a company in “hazardous financial condition” and giving the OIR authority to evaluate that status and providing enforcement authority. The statute authorizes the OIR in its discretion and without advance notice or a hearing to issue an immediate final order to any company deemed in hazardous financial condition.
• Section 9 (line 742) – deletes section 11 of FS624.81 which gave the OIR the authority to adopt rules substantially similar to the standards contained in the NAIC 1997 model act relating to Hazardous Financial Condition.
• Section 10 (line 753) – provides additional rule making authority to the Financial Services Commission.
• Section 11 (line 758) – amends FS628.8015 the statute governing Own-Risk Assessment (ORSA).
• Section 12 (line 897) – adds language to FS626.207 to provide a seven-year disqualification period for any applicant or licensees who violate the Florida Insurance Code.
• Section 15 (line 1057) – requires additional reporting by the Division of Investigative and Forensic Services.
• Section 18 (line 1215) – prohibits the OIR from waving a form filing requirement for any insurer that has violated the Florida Insurance Code in the last 36 months.

On claims handling:

• Section 13 (line 908) – amends FS626.9521 (unfair or deceptive acts) to increase the financial penalties and adds language to provide enhanced penalties if the deceptive practices involve claim handling after a hurricane.
• Section 14 (line 956) – amends FS626.9541 (1)(i) (Unfair claim settlement practices) to add language making it a violation to alter or amend an insurance adjuster’s report without including a listing of all the changes, the identity of the person ordering the change, and explain the reason for any change that reduced the amount of the estimate. Language in this section of the bill also makes it a violation to pay bonuses from an impaired or insolvent insurer.
• Section 19 (line 1230) – The original bill required the submission of claims handling manuals to the OIR. This section of the bill requires every company to “create and use a claims-handling manual.” The manual must cover a list of subjects outlined in the bill, be furnished to the OIR, and must be attested on or before August 1, 2023, and annually thereafter beginning on May 1 of each calendar year.

On insurance coverage:

• Section 16 (line 1144) – amends FS627.0629 to require insurers to put information regarding wind mitigation discounts on their website by October 1, 2023. Prior to January 1, 2025, and every five years thereafter, the OIR is required to re-evaluate wind mitigation credits.
• Section 17 (line 1203) – requires Citizens to cover homes insured by insolvent carriers that have not been repaired.
• Section 20 (line 1299) – prohibits the cancellation or non-renewal of a home damaged by a hurricane until at least 90 days after the repairs have been completed. This section also prohibits the cancellation or nonrenewal of a policy “until the earlier of when the dwelling or residential property has been repaired or one year after the insurer issues the final claim payment if such property was damaged by any covered peril” (other than a hurricane). The insurer can still cancel or nonrenew a policy within 10 days for nonpayment of premium or 45 days for a material misstatement or unreasonable delay in repair caused by the insured or the payment of policy limits.
• Section 21 (line 1361) – clarifies that if the policy has a roof deductible that’s the only deductible that applies in the event of a loss.
• Section 22 (line 1394) – tolls the one-year limit for filing claims and the 18-month limit for filing claims for active members of the federal or state armed forces.

On rates:

• Section 24 (line 1420) – requires every rate filing “made or pending” after July 1, 2023, to reflect the cost savings anticipated because of SB 76, SB 2-D, SB 2-A, and CS for HB 837.

The bill also attempted to clarify the current dispute in court on whether the SB 2-A reform passed last December eliminating one-way attorney fees to plaintiff lawyers is retroactive to the date of policy issue or instead the date the lawsuit was filed. Section 23 (line 1412) provides that “Chapter 2022-271, Laws of Florida, shall not be construed to impair any right under an insurance contract in effect on or before the effective date of that chapter law. To the extent that chapter 2022-271, Laws of Florida, affects a right under an insurance contract, that chapter law applies to an insurance contract issued or renewed after the applicable effective date provided by the chapter law. This section is intended to clarify existing law and is remedial in nature.”

The bill also provides under Section 25 (line 1456), an appropriation of $2,064,215 to the OIR to implement this act.  Section 26 (line 1462) provides an appropriation of $607,503 to the Department of Financial Services to implement this act.  Section 27 (line 1468) makes the effective date of SB 7052 July 1, 2023.  (Return to Top of List)

Financial Services  ̶  PASSED  ̶  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.  Last Wednesday, HB 487 passed the finish line with a unanimous bipartisan vote and awaits the Governor’s signature.  The bill mostly focuses on DFS’ property, automobile, and sinkhole insurance mediation program.  The bill provides statutory authority for the department to exercise its mediation authority on behalf of policyholders. It specifically makes a claim eligible for mediation after an insurance company elects to reinspect a property or has complied with the 90-day requirement to pay or deny the claim.  The bill also authorizes the department to expand background checks on insurance appointments and allows DFS to suspend, revoke or nonrenew an insurance license if revoked in another state.  The bill also clarifies provisions of life insurance regarding “preneed contracts” and clarifies what a judge in a workers’ compensation claim case may do when there is disagreement among medical professional expert testimony.  Of particular interest to residential property insurance, the bill allows DFS to rescind privileges of temporary adjusters beyond violations in F.S. 626.611 and 626.621, to broader violations contained in all of Chapter 626 of the Florida Statutes.  Here is the final enrolled HB 487.  (Return to Top of List)

Property Insurance  ̶  PASSED  ̶  SB 418 by Senator Keith Perry (R-Gainesville) revises requirements for residential property insurance rate filings.  It passed unanimously and without debate the day before session ended and now awaits the Governor’s signature.  Here is the enrolled bill.  The bill allows the use of multiple computer models to determine insurance company hurricane rates (Section 3- line 103).  The bill also allows a company to offer additional mitigation credits “developed by an independent, nonprofit, scientific research organization.”  This language was put in the bill to allow companies to offer additional wind mitigation credits developed by the Institute of Building and Home Safety (IBHS) (Section 5- line 169).  The bill also authorizes increased deductibles: 1) 3% rather than 2% for homes with schedule A values between $1,000,000 and $3,000,000 and 2) eliminates the need to offer a 2% deductible on homes valued over $3 million (Section 8- line 228).  (Return to Top of List)

Property Insurance for Wind and Flood  ̶  PASSED  ̶  HB 799 by Rep. Griff Griffitts (R-Panama City) requires residential property insurance rate filings to account for windstorm mitigation measures undertaken by policyholders.  HB 799 passed the Wednesday before session ended and was sent to the Governor for consideration.  Here is the enrolled bill.  It makes changes to residential property insurance rate filings by requiring the inclusion of actuarial discounts for wind uplift prevention measures. The bill also clarifies that flood insurance for Citizens property insurance is based on replacement cost, not property value, and eliminates the requirement for Citizens Property Insurance condominium policyholders to purchase flood insurance.  The bill allows Citizens to include language in their policies about alternative dispute resolution through DOAH, including Offer of Judgments and Proposals for Settlement.  The bill also allows a residential or commercial property insurance company to deny a wind claim if the policyholder did not also carry flood insurance under certain circumstances.  The bill includes a $750,000 appropriation for a new wind loss mitigation study to be done by OIR, the Department of Business and Professional Regulation, and the Florida Building Commission.  To encourage private market policies from insolvent insurance companies remain in the private market, the bill allows Citizens Property Insurance to charge those incoming policyholders up to 50% over its approved rate and to exempt the policy from Citizens’ legislatively-mandated rate increase glidepath.  (Return to Top of List)

Motor Vehicle Glass  ̶  PASSED  ̶  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.  SB 1002 passed the House chambers on a 103-16 vote and awaits the Governor’s signature.  During closing on the bill, Representative Griffiths thanked the CFO’s office for their help and said, “There were 37,000 lawsuits in 2022 related to auto glass, and we’re on track to hit 45,000 this year.  The top 20 lawyers in the state account for 96% of the litigation.  This measure will help fight fraud and litigation and hopefully move auto insurance premiums in the right direction.”  Here is the final enrolled SB 1002.  The bill revises definitions under the Florida Motor Vehicle Repair Act to ensure that businesses that calibrate or recalibrate advanced driver assistance systems associated with windshields are regulated.  The bill prohibits motor vehicle repair shops, their employees, and their representatives from offering an inducement to a customer in exchange for making an insurance claim for motor vehicle glass replacement or repair.  The bill prohibits a policyholder from entering an assignment agreement of benefits for motor vehicle glass replacement or repair, including for calibration or recalibration of advanced driver assistance systems.  (Return to Top of List)

Collateral Protection Insurance on Real Property  ̶  PASSED  ̶  HB 793 by Rep. Juan Fernandez-Barquin (R-Miami) and Rep. Christopher Benjamin (D-Miami Gardens) creates a new section in Chapter 627 of the Florida Statutes, titled “Real Property Collateral Protection Insurance.” Last Monday, May 1, HB 793 was unanimously approved by both chambers and sent to the Governor for consideration.  Here is the enrolled bill.  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 insurance company 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 insurance company 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.   (Return to Top of List)

Natural Emergencies – PASSED  ̶  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.  The bill also clarifies the duties and responsibilities of state agencies during a natural emergency. Last Monday May 1, the bill unanimously passed and was sent to the Governor.  Here is the enrolled bill.  The bill is based on the work done over the past few months by the Senate Select Committee on Resiliency and the House Select Committee on Hurricane Resiliency & Recovery.  

Following last year’s devastation from Hurricane Ian and Hurricane Nicole, these provisions in the bill are aimed at helping communities recover as well as set guidelines for use in future storm recovery:

• Allowing residents to remain on their property in temporary housing, such as trailers, as they rebuild;
• Requiring faster approval of building permits to streamline the rebuilding effort;
• Retroactively prohibiting local governments from raising building fees until October 2024 in communities impacted by Hurricanes Ian and Nicole;
• Requiring faster removal of damaged derelict boats from state waters by their owners;
• Establishing temporary housing for disaster relief works;
• Establishing permanent funding for local government emergency loans;
• Requiring local governments have uniform pre-storm contracts for debris removal;
• Encouraging local governments and school districts to develop emergency financial plans for disasters;
• Protecting the identities of people hurt or killed in natural disasters from public records searches to avoid potential fraud;
• Authorizes the extension for fire control district performance reviews for only those districts located within 50 miles of where Hurricane Ian made landfall that were required to submit reports by July 1, 2023, and requires submission of the report by January 1, 2024;
• Makes the provision on the tolling and extension of permits following an emergency declaration retroactive to September 28, 2022;
• Makes the provision prohibiting local governments from proposing or adopting more restrictive or burdensome amendments to its comprehensive plan or land development regulations retroactive to September 28, 2022, instead of September 29, 2022;
• Prohibits local governments from proposing or adopting a moratorium on construction, reconstruction, or redevelopment of any property damaged by Hurricane Ian or Nicole before October 1, 2024, and applies it retroactively to September 28, 2022;
• Adds a new section to provide that public utilities are not liable for damages based in whole or in part on changes in the reliability, continuity, or qualify of utility services which arise out of an emergency or disaster;
• Removes the appropriation to the Office of Insurance Regulation for hurricane-related market conduct activity; and
• Makes a technical change regarding the continuing contracts provision and the reversion to current law after the provision expires.  (Return to Top of List)

Condominium and Cooperative Associations  ̶  PASSED  ̶  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.  SB 154 unanimously made it across the finish line last week and was sent to the Governor for his signature.  During debate, Representatives Berfield, Jaques, Andrade, LaMarca, and Robinson spoke on behalf of the bill, each echoing their excitement to bring the good news back to their constituents.  Representative Robinson reiterated concerns over housing saying, “Housing is an issue in Florida and we have to do everything we can to ensure Floridians live safely.“  In closing, Representative Vicki Lopez (R-Miami-Dade), who had sponsored the companion House bill, thanked her colleagues and emphasized that the bill is just the beginning, a foundation.  Here is the enrolled SB 154. The bill revises the milestone inspection requirements for condominium and cooperative buildings that are three or more stories in height, born of the deadly June 2021 Surfside condo building collapse.   It also eliminates the requirement that Citizens Insurance customers who purchase an HO6 (condo) policy are required to purchase flood insurance and likewise eliminates the flood requirement on Citizens non-wind policies.  (Return to Top of List)

My Safe Florida Home Program  ̶  PASSED  ̶  HB 881 by Rep. Chip LaMarca (R-Lighthouse Point) amends the My Safe Florida Home Program, which offers grants of up to $10,000 on a $2 to $1 match to incentivize homeowners to harden their homes from future hurricanes and reduce their insurance premiums as a result.  The bill passed unanimously and is now enrolled and awaiting the Governor’s expected signature. Here is the enrolled bill.  (Return to Top of List)

Limitation of Actions Involving Real Estate Appraisers and Appraisal Management Companies  ̶  PASSED  ̶  HB 213 by Rep. David Borrero (R-Miami-Dade) is another bill aimed at reducing frivolous litigation.  It was unanimously approved the Tuesday before session ended and now awaits the Governor’s consideration.  Here is the enrolled version of HB 213.  The bill regulates Florida real estate appraisers and the provision of real estate appraisal services.  It creates a two-year statute of limitations and a four-year statute of repose for a lawsuit to recover damages from an appraiser or appraisal management company based on contract, tort, or other legal theory for an act or omission in the performance of appraisal services or appraisal management services.  (Return to Top of List)  

Insurance (health)  ̶  PASSED  ̶  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.   SB 312 was unanimously approved the Wednesday before session ended with no debate and now awaits the Governor’s signature.  You can read the latest Senate Bill Analysis here, which is still accurate.  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 insurance companies or their agents if certain conditions are met.  (Return to Top of List)

Telehealth Practice Standards  ̶  PASSED  ̶  HB 267 by Rep. Tom Fabricio (R-Miramar) revises the definition of the term “telehealth” to strike the current prohibition on audio-only telephone calls, allowing Medicaid to elect reimbursement.  HB 267 was unanimously approved the Thursday before session ended.  Here is the enrolled version of HB 267. The bill revises the definition of telehealth to include telephone calls in the telehealth technology authorization statute.  (Return to Top of List)

Physician Certifications for the Medical Use of Marijuana  ̶  PASSED  ̶ HB 387 by 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 Senate added an amendment, and the House concurred, to expand the number of medical marijuana licenses granted to black farmers who meet a certain threshold based on a federal class action decision against the United States Department of Agriculture.  The Thursday before session ended, HB 387 was unanimously approved and sent to the Governor.  Here is the enrolled version of HB 387.  (Return to Top of List)

Prescription Drugs – SIGNED INTO LAW  ̶  SB 1550 by Senator Jason Brodeur (R-Lake Mary) along with two committees, is designed to reduce the role of the middleman – the Pharmacy Benefit Mangers (PBM) – and improve transparency in prescription drug pricing and regulation.  Among other things, the bills would require drug manufacturers to notify the Department of Business and Professional Regulation of reportable drug price increases; prohibits manufacturers from claiming public records exemption for trade secrets for information provided in forms or reports; and require the Department of Financial Services to designate an employee as the primary contact for consumer complaints involving PBMs.  The bill also expands the Office of Insurance Regulation’s authority by requiring PBMs be considered insurance administrators and regulated accordingly.  On Tuesday both the House and Senate unanimously approved SB 1550.  During House debate, Representatives Skidmore, Eskamani, and Massullo praised the consideration and innovation of the bill, with Representative Massullo saying, “We say on the conservative side that we don’t want to get in the way of the free market. Well, healthcare is the most controlled market we have.  We have narrow networks where patients don’t have access, and we have open and closed enrollment where people can sign up and get out of certain policies.  So we really don’t have a free market.  You’ve done a wonderful job, but this is just a start.”  The other representatives echoed the necessity for the bill and continued support of healthcare policies.  In closing, Representative Chaney gave some insight as to the changes under PBMs noting, “Since PBMs have been in control, prescription drug list prices have risen 129%, with patient out-of-pocket cost increasing 53%, and insurance payments to PBMs for those drugs has risen 64%.”  She also emphasized the transparency and accountability implemented by the bill.  On Wednesday, the Governor signed the bill into law.  Here is a Summary of the House Amendment that went into the final enrolled SB 1550.  (Return to Top of List)

Civil Remedies  ̶   SIGNED INTO LAW  ̶   HB 837 and SB 236 by Reps. Tommy Gregory (R-Lakewood Ranch) and Tom Fabricio (R-Miami-Dade) and 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 most lines of insurance – not just property insurance. 

On Friday March 24, Governor DeSantis signed HB 837 into law, with its provisions going into effect immediately.  The new law makes additional changes to state statutes to reduce excessive litigation and resulting costs to insurance consumers.  As passed, the bill does the following PROSPECTIVELY from March 24, 2023 on:

1. Adopts the federal standard for contingency fee multiplier in that it applies in only rare and exceptional circumstances.
2. Repeals the one-way attorney fee statute (as was done for property insurance in December 2022) for admitted and surplus lines.  Attorney fees will only be paid if the insurer totally denies insurance coverage and the plaintiff lawyer prepares (and wins) a declaratory judgment action (dec action) to determine coverage.  Reservation of rights letters do not constitute as a claim denial.  This section does NOT apply to property insurance total denial dec actions.
3. General negligence cases must be filed in 2 years, down from 4 years.
4. Changes Bad Faith laws:
   • Applies bad faith to liability claims.
   • Bad faith safe harbor is 90 days after receiving actual notice of a claim.
   • Negligence singularly and failure to tender policy limits is not bad faith.
   • A judge can consider failure of the policyholder/claimant to act in good faith when determining damages against the insurer.
   • Interpleader process will be used with more than one claimant and when claims exceed policy limits.
   • Binding arbitration is paid for by insurance company, all parties must agree to it and it is allowed with more than one claimant where policy limits are exceeded.
5. Provides that an offer of judgment applies to any insurance civil action.
6. Establishes uniform jury standards to transparently calculate personal injury or wrongful death medical damage costs:
   • Evidence of past paid medical bills and unpaid bill data will now be a part of a court case.
   • Ensures that a letter of protection is not inflated by ensuring the health insurance benefits are transparent to the jury. 
   • Evidence of past or future unpaid medical bills for those uninsured or on Medicaid/Medicare are subject to 120% of the Medicare rate or 170% of the Medicaid rate if no Medicare rate.
   • Evidence of past medical bills if letter of protection is sold is the sales price of the letter.
   • Evidence of future medical bills for insured plaintiffs is the provider health insurance rate for future care plus the plaintiff’s cost share.
   • The jury can also be presented any reasonable amount for past and future medical bills.
7. Ensures transparency about a provider/plaintiff counsel financial relationship to inform the jury.
8. All persons who contributed to the injury in a premises liability action will now become part of the civil action.  The bill establishes a presumption against liability for criminal acts of apartment complex non employees, owners or operators that occur in the complex if security measures and training is in place.
9. Changes Florida’s comparative negligence system so that if a plaintiff is more at fault for their injuries, they may not recover damages from the defendant.  Medical malpractice coverage/cases are not included with this change.  (Return to Top of List)

Causes of Action Based on Improvements to Real Property  ̶  SIGNED INTO LAW  ̶  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.  On March 15, the full Senate passed SB 360 on a 31-8 vote and sent it to the House. 

On March 23, the House adopted an amendment on HB 85 that made it identical to the Senate Bill, then substituted the Senate bill in its place.  The House passed SB 360 on an 89-8 vote and sent it to the Governor.  On April 13, the Governor signed the bill into law.  (Return to Top of List)

Motor Vehicle Liability Policies  ̶  DID NOT PASS  ̶  HB 57 and SB 516 by Rep. Keith Truenow (R-Tavares) and Senator Nick DiCeglie (R-St. Petersburg) would have revised 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 Senate bill was the subject of a clarifying amendment on April 24 before being sent to the full Senate, where it was never considered.  The House bill was amended the next day on the House floor and was eventually passed by the full House and sent to the Senate, where it, too, was never considered.  (Return to Top of List)

Contacting Consumer Debtors  ̶  DID NOT PASS  ̶  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 House bill never received its first hearing.

SB 128 was heard on March 29 in the Senate Banking and Insurance Committee where an amendment was adopted that removed several provisions relating to who a creditor cannot contact.  The intent is to provide protection for victims and require a signed affidavit identifying the debt to be served as a notice to stop contacting the victim.  There was no debate, and the bill was unanimously passed.  The bill was heard last Tuesday in the Appropriations Committee on Agriculture, Environment and General Government.  There were no questions or debate and the bill passed unanimously.  It was awaiting its final hearing before the Senate Fiscal Policy Committee which met for the last time on April 25, but SB 128 was not on the agenda and its language never became part of another bill that was in play.  (Return to Top of List)

Flood Damage Prevention  ̶  DID NOT PASS  ̶  HB 859 and SB 1018 by Rep. Fabian Basabe (R-North Bay Village) and 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 never received its first hearing in the Regulatory Reform & Economic Development Subcommittee. 

The Senate bill had its first hearing in the Community Affairs Committee on March 15 and passed unanimously.  SB 1018 was heard in the Environment and Natural Resources Committee on March 27.  During the meeting, Rep. Basabe noted that FEMA flood maps can be outdated or wrong, so they cannot rely solely on that deciding factor when determining which homes to elevate.  As flooding worsens, property owners need tools to prepare their property for flooding, and elevation of the structure is the primary way to do that.  Senator Harrell asked if federal FEMA dollars would be available for those areas where homeowners want to raise their homes, and the response was that because the process would be voluntary, there would be no direct assistance, but there could potentially be a reduction in flood credits for flood insurance.  The bill passed unanimously.  It was awaiting its final hearing before the Senate Rules Committee which never met again in this session, effectively killing the bill.  (Return to Top of List)

Coverage for Skin Cancer Screenings  ̶  DID NOT PASS  ̶  HB 785 by Rep. Bobby Payne (R-Palatka) and Rep. Ralph Massullo (R-Inverness) and SB 142 by Senator Gayle Harrell (R-Stuart)   requires all health insurance plans, including HMOs, to cover and pay for annual skin cancer screenings.  Rep. Massullo is a dermatologist and Senator Harrell worked as a health care practice administrator for more than 30 years.  Skin cancer is the most common cancer in the U.S. with one in five people getting it; yet it is also highly curable if detected early.  The bill specifies the screening be performed by a licensed dermatologist without imposing any cost-sharing requirement on the patient.  The Senate bill never received its first hearing.  HB 785 was heard in the House Health & Human Services Committee.  It was unanimously approved and was awaiting consideration before the full House, which never occurred.  Because the subject was never heard in the Senate though, its ultimate passage in the legislature was doubtful.  (Return to Top of List)

Implementation of the Recommendations of the Blue-Green Algae Task Force  ̶  DID NOT PASS  ̶   HB 423 by Rep. Lindsay Cross (D-St. Petersburg) and 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 never received its first hearing in the House Water Quality, Supply & Treatment Subcommittee.  The Senate bill adopted an amendment in the Senate Environment and Natural Resources Committee on April 4.  The amendment removes provisions requiring periodic inspections of onsite sewage treatment and disposal systems. It also removes language requiring new or revised basin management action plans to include a list that identifies and prioritizes spatially focused suites of projects in areas likely to yield maximum pollutant reductions.  The bill was unanimously approved. SB 1538 was heard in the Appropriations Committee on Agriculture, Environment and General Government on April 18 and was unanimously approved.  It awaited its final hearing before the Senate Fiscal Policy Committee which met for the last time on April 25 but SB 1538 was not on the agenda and never became part of another bill that was in play.  (Return to Top of List)

Civil Remedies for Unlawful Employment Practices  ̶  DID NOT PASS  ̶  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 never received its first hearing in the House Civil Justice Subcommittee, while the Senate bill had been assigned to the Judiciary Committee, one of three committee stops, but never heard.  (Return to Top of List)

Litigation Financing Consumer Protection – DID NOT PASS  ̶  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.  SB 1612 was referred to the Judiciary and Fiscal Policy Committees and its House companion was referred to the Civil Justice Subcommittee and Judiciary Committee but neither bill was ever heard.  (Return to Top of List)

Insurance (property) – DID NOT PASS  ̶  SB 1340 and HB 1431 by Senator Erin Grall (R-Fort Pierce) and 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.

SB 1340 was referred to the Senate Banking and Insurance, Judiciary and Fiscal Policy Committees but never heard.  HB 1431 never received its first hearing in the House Insurance and Banking Subcommittee.  (Return to Top of List)

Surplus Requirements for Residential Property Insurers – DID NOT PASS  ̶  SB 1528 and 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.  SB 1528 was assigned to the Senate Banking and Insurance and Rules Committees, and its companion HB 1431 was assigned to the House Insurance and Banking Subcommittee but neither received a first hearing.  (Return to Top of List)

Insurance Claims – DID NOT PASS  ̶  SB 1662 and HB 1497 by Senator Erin Grall (R-Fort Pierce) and Representative Jeff Holcomb (R-Spring Hill) 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 to 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.  SB 1662 was referred to the Senate Insurance and Banking, Judiciary, and Rules Committees, and its companion HB 1497 was referred to the House Insurance & Banking Subcommittee and Commerce Committee but neither received a first hearing.  (Return to Top of List)

Motor Vehicle Insurance  ̶  DID NOT PASS  ̶  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 never received its first hearing in the House Insurance and Banking Subcommittee.  The Senate bill never received its first hearing in the Senate Banking and Insurance Committee.  (Return to Top of List)

Commercial Vehicle Insurance  ̶  DID NOT PASS  ̶  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 never had a House companion and never received its first hearing in the Senate Banking and Insurance Committee.  (Return to Top of List)

Emergency Residential Property Insurance Assistance Trust Fund – DID NOT PASS  ̶  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.  Neither bill received a first hearing. Subcommittee.  (Return to Top of List)

Home Repairs and Solicitation Sales  ̶  DID NOT PASS  ̶  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 never had a Senate companion and never received its first hearing in the House Regulatory Reform & Economic Development Subcommittee.  (Return to Top of List)

Flood Disclosures for Real Property Sales  ̶  DID NOT PASS  ̶  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.  Neither bill received a first hearing.  (Return to Top of List)

Flood Zone Disclosures for Dwelling Units  ̶  DID NOT PASS  ̶   SB 716 and HB 1291 by Senator Linda Stewart (D-Orlando) 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.  Neither bill received a first hearing.  (Return to Top of List)

Access to Pharmacies and Prescription Drugs Under Insurance and Pharmacy Benefit Managers Policies  ̶  DID NOT PASS  ̶  HB 203 by and SB 420 by Rep. Karen Gonzalez Pittman (R-Hillsborough) and Senator Tom Wright (R-Port Orange) addresses much of the Governor’s proposal requiring 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.  Neither bill received a first hearing.  (Return to Top of List)

LMA Newsletter of 5-8-23