Legislative Update - May 20, 2022

The Florida Legislature will return next week for a Special Session.  Governor Ron DeSantis issued a proclamation calling for a special session to consider legislation related to property insurance, reinsurance, changes to the Florida Building Code to improve the affordability of property insurance, the Office of Insurance Regulation, civil remedies, and appropriations.   The biggest problem facing Floridians is the availability and affordability of property insurance.  And even with the special session, it is not clear if the legislators can do anything to make the rates will go down.

Special Session …

House Going into Session Tuesday - Like the Senate, the Florida House appears ready to move quickly during a special legislative session next week on property insurance. The House released a tentative schedule that indicates it will not meet Monday and will convene at 1 p.m. Tuesday. It will hold an Appropriations Committee meeting and a Rules Committee meeting Tuesday and has scheduled time for floor sessions on the following three days. The Senate earlier posted a tentative schedule that shows it going into session at 9 a.m. Monday and holding an Appropriations Committee meeting for much of the rest of that day. The Senate plans to hold floor sessions on Tuesday and Wednesday. Additional floor sessions could be held the following two days if needed. Gov. Ron DeSantis called the special session amid widespread problems in the property-insurance system that have included homeowners losing coverage and seeing large rate increases. As of early Thursday evening, Republican leaders had not released proposed legislation.

Republicans Yet to Release Property Insurance Bill - Multiple Democrats have filed legislation for the upcoming special session on property insurance that is scheduled to begin next week but no bills have been filed by the majority party yet. Both the House and Senate did, however, release their respective schedules on Thursday. House Meeting Schedule / Senate Meeting Schedule / LobbyTools Bill Search

Related: Lawmakers are set to return next week for a special session on property insurance, but whatever fix they come up with isn't likely to lower rates right away. USA Today Network

Experts Warn Special Session Won't Immediately Drop Rates - Insurance industry experts warned Wednesday that whatever the Legislature does next week in a special session aimed at dealing with rising costs of property insurance is likely to take some time to have an effect on premiums. Industry officials, regulators and several members of the Legislature say litigation and fraud, particularly in roof replacements, are the biggest drivers of the rising costs and higher rates, and cancellations in the market, and for insurers going out of business. Others suggest the problem is high reinsurance costs in a state that has allowed under-capitalized companies into the market. Orlando Sentinel

“CFO Jimmy Patronis adds anti-fraud measures to Special Session agenda” via Caden DeLisa of The Capitolist — Patronis announced five legislative proposals targeting fraud that he will pursue during the upcoming special session on insurance reform, adding to the efforts that he has put forward in assembling a pair of anti-fraud teams late last year. A primary proposal for the upcoming session is to establish three anti-fraud Homeowner Squads. The Department of Financial Services (DFS) will request 23 new positions, including 15 detectives, three supervisors to work cases, three attorneys, and one administrator to prosecute cases. The teams would cover Jacksonville, Fort Lauderdale, and Miami.

Senate Dems Want Confirmation Hearing Next Week on Secy of State Choice - Senate Democrats on Tuesday called for confirmation hearings next week for Cord Byrd, named last week by Gov. Ron DeSantis to be the new secretary of state, who among other things, oversees the Division of Elections. Byrd, a Republican House member from Neptune Beach, was tapped by the governor to replace Laurel Lee, who resigned, reportedly to run for Congress. Lawmakers are scheduled to begin a special session next week in Tallahassee to take up rising property insurance rates. The new secretary will head the Division of Elections during the upcoming primary and general election later this year. The Legislature may not meet again before then, except for next week's special session. "We believe, and hope you agree, that it would be highly inappropriate for the new Secretary to preside over an election without the opportunity to be questioned under oath and fully vetted before the public," Senate Democrats wrote in a request to Senate President Wilton Simpson to take up the nomination. Senate Dems Press Release / Tampa Bay Times 

Legislative …

Driskell to Seek House Dem Leader Position - Rep. Fentrice Driskell is running to be the 2022-24 Democratic leader in the House following the previously chosen leader's decision to not seek reelection to the House. Rep. Ramon Alexander was next in line to lead the party but announced last week that he is dropping his candidacy after being accused of sexual harassment by a former employee at Florida A&M University. Alexander had been unanimously elected last year as leader-in-waiting for the House Democrats. Driskell represents House District 63, which covers part of the Tampa area, and was next in line for the leadership position behind Alexander. She is a practicing attorney and was initially elected in 2018. Notice of Candidacy Disclosure

Conservationists Oppose Measure Limiting Who Can Serve on Soil and Water Boards - A bill (SB 1078) headed to Gov. Ron DeSantis' desk would put limits on who can serve on a soil and water conservation district board in Florida, limiting it to people who work or have worked in agriculture. The measure, passed by lawmakers in March, is still opposed by many conservationists, who say it will tilt the boards entirely toward pro-farm policy at the expense of the environment. Yahoo News

Health Care …

DeSantis backs $125M to address nurse shortage — DeSantis on Monday said he would support a $125 million appropriation in the 2022-23 budget aimed at addressing the nursing shortage in Florida. Arek Sarkissian of POLITICO Florida reports that $100 million will go to the Prepping Institutions, Programs, Employers and Learners through Incentives for Nursing Education Fund, and another $25 million will go to the Linking Industry to Nursing Education Fund. The former incentivizes schools to train more nurses, and the latter is to train nursing instructors. The state will also be matching contributions to training programs made by health care providers. “We already have a huge amount of interest in this program,” DeSantis said during a news conference at Seminole State College. “They invest a dollar, and we invest a dollar, and everyone wins.”

Gov Backs Money for Cancer Research - Gov. Ron DeSantis said Tuesday he supports a $37 million increase for cancer research this upcoming fiscal year. A historic $100 million is included in the state budget for cancer centers in Florida and the governor promised the allocation will be safe from a veto. First Lady Casey DeSantis, a breast cancer survivor, joined him in supporting the funding. The governor said most of the $100 million will go to three of Florida's top cancer research centers, Tampa's Moffitt Cancer Center, Sylvester Cancer Center in Miami and the University of Florida. "Cancer remains a leading cause of death in Florida, and we will continue to support those fighting this deadly disease," said DeSantis. "Our family is grateful for the care that the First Lady received during her cancer treatment this past year, and we want to make quality care available for all Floridians." The governor has yet to approve the state's spending plan but the proposal is slated to take effect July 1. DeSantis Press Release / Tampa Bay Times / WTSP / NBC 6 South Florida

New Law to Make Prosecution of Drug Dealers Easier - A new law approved by Gov. Ron DeSantis on Thursday makes it easier to prosecute drug dealers for first-degree murder when they sell drugs to someone who then suffers a fatal overdose. Under the bill, HB 95, prosecutors will no longer have to prove a particular drug was the sole direct cause of death. The law instead now will allow for a murder conviction if prosecutors prove the drug was a "substantial factor" in producing the user's death. Under the new law, mandatory minimum sentences for trafficking fentanyl would increase from 3 to 7 years. It also adds methamphetamine to the list of capital felonies for dealers who distribute a fatal dose. The new law also strengthens penalties for dealing drugs within 1,000 feet of a substance abuse treatment facility. The legislation was passed during the regular session held earlier this year and reflects recommendations made by the Statewide Task Force on Opioid Abuse. The new law will take effect Oct. 1. DeSantis Press Release / Florida Politics / WKMG 

“Managed care plans have questions about Medicaid bid, but state won’t say what they are” via Christine Jordan Sexton of Florida Politics — Florida health care officials have received questions from Medicaid managed care plans that may be interested in providing health care to the millions of Floridians who rely on the safety net program for their care. But the agency isn’t immediately making those inquiries available to the public for review. Florida requires most Medicaid beneficiaries to enroll in managed care plans to receive their benefits. The managed care plans are tasked with providing all Medicaid-covered services, except for dental care. That makes the multi-year contracts awarded on a competitive bidding basis the most lucrative in the state, worth tens of billions to the Medicaid-managed care plans that submit winning bids.

COVID …

“Florida on verge of 6 million COVID-19 infections; reports 39,397 weekly cases” via Ian Hodgson of the Tampa Bay Times — Weekly COVID-19 cases continued to rise this week as Florida approaches 6 million infections. The state averaged over 5,600 cases a day during the seven days from May 7 to 13. That’s up 20% from the week before, and it’s the eighth straight week that infections have climbed. Hospitalizations are also up, with nearly 1,300 confirmed COVID-19 patients as of Friday. That’s up 23% from the week before.

Children aged 5 to 11 are now eligible to get a third COVID-19 vaccine according to the Food and Drug Administration. The Pfizer-BioNTech booster shot was authorized by the federal agency earlier this week. Children must have received their second dose at least five months ago in order to get the third round. NPR 

Americans remain split nearly evenly on whether facemasks should still be required while flying, according to a Gallup poll released this week. Gallup Poll

Business …

Property Insurers Continue to Seek Higher Premiums - State insurance regulators heard requests Tuesday from three companies seeking property insurance rate increases as state residents continue to grapple with rising costs in the market ahead of hurricane season, and a legislative special session aimed at finding a solution. Florida Farm Bureau executives are requesting a 48.7% rate hike that would affect more than 60,000 property insurance policies across the state. The company said homeowners on average would spend an extra $1,000 per year on premiums. First Floridian asked for a rate increase of 23% and KIN Insurance asked for an average annual rate hike of $450. Insurers say more roof claims and high litigation costs have been driving factors in increased costs to their companies. The Office of Insurance Regulation could approve or deny the rate increases in the coming weeks but decisions are not likely to be made until after lawmakers return to Tallahassee on May 23 to address the state's property insurance crisis. Insurance Journal / Florida Politics / WKMG / WESH

“Citizens Property Insurance looks to buy reinsurance amid ‘collapsing’ market” via Gray Rohrer of Florida Politics — Citizens Property Insurance board members voted Wednesday unanimously to buy $4.3 billion worth of reinsurance coverage for $400 million.

At least, that’s what they’re going to try to do.

The “collapsing” nature of the reinsurance market, which staffers said is partially fleeing Florida, means the state-run company could get less coverage as reinsurance becomes more expensive. “This marketplace is completely 100% out of control,” Citizens President and CEO Barry Gilway told the board. “Big players and other major players have cut back their capacity in the Florida marketplace by 50%, 80%.”

“Although we’re presenting a request for a $400 million placement … it will be an amazing event if we place a significant portion of what we’re proposing,” Gilway said. “And it all has to do with the total collapse of the Florida marketplace.”

Reinsurers have already grown skittish because of global events such as Russia’s war on Ukraine, but Gilway and board members pointed to the skyrocketing litigation and claims experienced by Florida property insurers as the specific reason they are shying away from the Sunshine State.

“We’re still subject to absolutely insane litigation rates that are occurring across the state,” Gilway said.

Statewide Housing Market Shows Signs of Slowing, but Prices Still Surging - The state's red hot housing market may be finally starting to show signs of slowing with recent rises in interest rates. Median home prices have continued to increase, with the supply of homes for sale still limited, but fewer buyers are looking to upgrade with interest rates starting to be pushed upward. Closed sales of single-family homes statewide in April were down 15.3% year-over-year, while existing condo and townhouse sales totaled were down 20.9% from April 2021. "Rising interest rates and high inflation are impacting all of us, and those factors are definitely affecting Florida's housing market," said Florida Realtors President Christina Pappas. But prices haven't yet caught up with the slowing demand. The statewide median sales price for single-family Homes in April was $410,000, up 21.8% from the previous year. Last month's statewide median price for condo-townhouse units was $310,000, up 24% over a year ago. Florida Association of Realtors

“Florida gas prices just keep soaring, hit record average of $4.50” via Scott Powers of Florida Politics — Gasoline prices in Florida soared last week, setting a record of $4.50 per gallon Monday morning. The latest apex easily surpasses the $4.38 mark set in March, shortly after Russia invaded Ukraine and sent worldwide oil and gas prices into chaos. The old, pre-2022 record price of a gallon of gasoline in Florida was $4.08, set back in 2008. Florida’s average price jumped about 32 cents in the past week. The state average is now $1.60 per gallon higher than a year ago.

Average Jobless Claims Below 5,000 - Florida is averaging just under 5,000 first-time unemployment claims a week over the past month, which is below the average from the period before the COVID-19 pandemic crashed the economy. The U.S. Department of Labor on Thursday estimated 4,776 initial jobless claims were filed in Florida last week, up from a revised count of 4,475 during the week that ended May 7. The estimate put a rolling average over four weeks at 4,928 claims. That was below the four-week average before March 15, 2020, which state and federal agencies mark as the start of the pandemic for employment purposes. In the four weeks before March 15, 2020, the weekly average was 5,376. The Florida Department of Economic Opportunity will release April unemployment figures Friday. Florida’s jobless rate in March was 3.2 percent, reflecting an estimated 339,000 Floridians qualified as out of work from a labor force of 10.51 million.

More than 8 in 10 Americans believe a recession is at least somewhat likely in the next year, according to a new Quinnipiac University poll. Quinnipiac Poll

Attorney General …

“Ashley Moody blasts White House for ‘unconscionable cover-up’ of Mexican border crisis” via A.G. Gancarski of Florida Politics — Moody on Friday asserted to a national television audience that the Biden administration participated in an “unconscionable cover-up” of the real conditions at the Mexican border. Moody, appearing on the Fox News Channel’s “America Reports,” contended that “from the moment Biden took office,” America has seen a “step-by-step breakdown of our immigration system,” facilitated by Homeland Security Secretary Alejandro Mayorkas. Promoting a document obtained in ongoing litigation with the federal government, Moody suggested the “U.S. Customs and Border Protection Overview of the Southwest Border” eight-pager showed critics were right when saying the Biden administration was botching the border issues.

Disney …

“State will likely take over Disney World’s Reedy Creek, DeSantis says” via Skyler Swisher and Steven Lemongello of the Orlando Sentinel — The state will likely assume control of Disney World’s Reedy Creek Improvement District, rather than local governments absorbing it, DeSantis said Monday. DeSantis said he is working on a proposal that the Legislature will likely consider after the November elections. Reedy Creek, which encompasses Disney World and neighboring properties, is set to dissolve on June 1, 2023. The Governor’s Office hasn’t released a written plan detailing how breaking up Disney World’s private government will unfold.

—“Disney edges out DeSantis in popularity poll” via A.G. Gancarski of Florida Politics

Elections …

Florida Population Undercounted in Census - Florida was one of six states where population was undercounted during the 2020 census, according to a report released Thursday by the U.S. Census Bureau. Florida had an estimated 3.48 percent undercount, the fourth-highest rate in the country behind Arkansas, Tennessee and Mississippi. Other states with undercounts were Illinois and Texas. States with population overcounts were Delaware, Hawaii, Massachusetts, Minnesota, New York, Ohio, Rhode Island and Utah, according to the census bureau. The report, known as the Post-Enumeration Survey, is designed to determine how well the census bureau performed in the once-a-decade census. Census population numbers are important, in part, because they help determine how many members of Congress represent each state and how certain federal money is distributed. “Achieving an accurate count for all 50 states and D.C. is always a difficult endeavor, and these results suggest it was difficult again in 2020, particularly given the unprecedented challenges we faced,” census bureau Director Robert L. Santos said in a prepared statement. “It is important to remember that the quality of the 2020 census total population count is robust and consistent with that of recent censuses. However, we know there is still more work to do in planning future censuses to ensure equitable coverage across the United States, and we are working to overcome any and all obstacles to achieve that goal.”

A Leon County circuit judge has lifted a stay in the legal case over the state's congressional map for the upcoming election and the next decade, allowing the use of a substitute map for one created by the governor's office and passed by lawmakers. The issue isn't finally decided, however, with an appeal of the judge's ruling throwing out the legislatively-passed map pending before the state's First District Court of Appeal. Florida Politics

“Attorneys for Florida seek stay on replacement congressional map” via Jacob Ogles of Florida Politics — Retaining a Black-performing congressional district bears a resemblance to “political apartheid,” according to attorneys for Florida’s Department of State. Two days after Circuit Judge Layne Smith lifted a stay on his decision to replace Florida’s new congressional map, the state wants the decision on hold again. Attorney Mohammad Jazil filed a 67-page motion Wednesday morning asking the 1st District Court of Appeal to stick with cartography signed by DeSantis. Jazil’s brief leans heavily on the notion the U.S. Supreme Court ultimately will favor the map designed by DeSantis’ staff precisely because it dismantles a North Florida district officials say was wrongly drawn with race as a primary motivator.

Crowded GOP field in CD 15 grows — Two more significant Republicans tossed their hats in the ring in Florida’s 15th Congressional District on Monday. State Sen. Kelly Stargel, Florida Senate Appropriations Chair, told POLITICO’s Matt Dixon she will announce her candidacy today. Additionally, veteran Green Beret Jerry Torres, founder of a global consulting firm, told Florida Politics he’s launching his campaign with $5 million in self-funding. The two join former U.S. Rep. Dennis Ross, state Rep. Jackie Toledo, veterans Jay Collins, Mac McGovern and Demetries Grimes in seeking the GOP nod for the open seat. And all that is before outgoing Secretary of State Laurel Lee’s expected entry to the race.

“Florida veteran pledges to spend millions in Tampa Bay-area congressional race” via Emily L. Mahoney of the Tampa Bay Times — The crowded Republican primary for Florida’s 15th Congressional District is getting a new face, as Jerry Torres, a Green Beret veteran and retired defense contractor, announced Monday he is entering the race. Torres has never run for office and just moved to Lakeland about a month ago, he said, after spending the prior few months living in Siesta Key, and before that, near Cape Coral. But he’s willing to go big on his race — he’s already set aside $5 million and is willing to spend up to $15 million if needed, he said. That figure would rank among the highest sums a candidate has ever dedicated toward a U.S. House race.

“‘Stay Woke Go Vote’ rally aims to awaken South Florida’s voting might” via Anne Geggis of Florida Politics — In a county where voter turnout consistently falls below the state average, South Florida politicians plan a rally to spur the region to exercise its demographic and Democratic might. Wednesday’s announcement of the “Stay Woke Go Vote” campaign on Saturday in Miramar lists all the reasons Black voters should beat a path to the voting booth, along with some participants whose names will resonate with political junkies. If voter turnout in Broward County increased by 2% more than the last Midterms, it would mean 95,450 more Broward County voters. And that could make an enormous difference, considering that DeSantis won with a 32,463-vote margin in 2018.

“‘Change is scary’: What’s next for Florida Democrats after the downfall of Ramon Alexander” via James Call of USA Today Network — The resignation this week of a top state Democratic legislator, befallen by a sex scandal, has the party hustling to replace him with only months to go before November’s midterm elections, in which every state legislative seat is on the ballot. Rep. Fentrice Driskell, the Democrats’ current policy chair, is next in line to lead the caucus. She was selected unanimously in 2021 to be leader in 2025 after Alexander served his two years. Florida House Democrats have scheduled a vote within the next week or two to pick a new caucus leader for the 2023 Legislative Session. Rep. Anna Eskamani said the group needs to move quickly with the November election less than six months away.

Ander Crenshaw endorses Chet Stokes for HD 16 — Former U.S. Rep. Crenshaw, a former Senate President, has endorsed Stokes in the Republican Primary for House District 16. “The time has come for a new generation of conservative leadership in Tallahassee. Chet Stokes is the clear choice for State Representative District 16,” Crenshaw said. Crenshaw joins Jacksonville City Councilmember Rory Diamond, Jacksonville Beach Mayor Chris Hoffman, Neptune Beach Mayor Elaine Brown, and Jacksonville Beach Councilmembers Dan Janson, Cory Nichols and Fernando Meza in endorsing Stokes, who is one of four Republicans running for the seat. He faces Heath Brockwell, Kiyan Michael and former Rep. Lake Ray in the Primary.