Legislative Update - May 27, 2022

The Florida Legislature was in Tallahassee this week for a special session on property insurance.  They worked on a $2 billion plan to stabilize Florida’s property insurance market, which has been plagued by insurer insolvency and dropped homeowner policies.  Gov. Ron DeSantis called lawmakers to town for the special session, and urged them to take on litigation issues, noting that Florida accounts for 79 percent of lawsuits against insurers nationally while accounting for just 9 percent of total claims. The measures considered on both sides of the Capitol attempt to do that too, by limiting and changing rules around attorney fees in lawsuits related to property insurance.

The call was expanded, and they worked on condominium safety measures too. 

Bills on both issues were passed and Governor DeSantis quickly signed the legislation on Thursday.  One issue not addressed during the special session was gun control.

DeSantis Signs Property Insurance, Condo Safety Bills - Gov. Ron DeSantis quickly signed legislation on Thursday aimed at shoring up the state's property insurance market (SB 2D) and putting new safety inspection and financial reserve requirements in place for condominiums in a response to the collapse of the Champlain Towers South building in Surfside last year (SB 4D). The measures were both passed earlier in the week during a special session originally called to try to tackle the rising cost of homeowners coverage and the conditions causing insurers to fail or leave the state. During the session, lawmakers also worked out an agreement on condo safety, a reaction to the Surfside disaster, which killed 98 people, that had eluded them during the regular session. Associated Press- Condo Bill / Associated Press-Insurance Bill / Law360 / CBS Miami / LobbyTools Governor's Bill Actions 

Legislature Passes 'First Step' Property Insurance Bill - The House on Wednesday passed what both supporters and opponents said was a first step in a bid to address the state's overburdened property insurance market, sending the measure to Gov. Ron DeSantis just before the start of hurricane season, but acknowledging it likely won't immediately reduce skyrocketing premiums. The bill (SB 2D) "does not purport to answer every question or solve every problem," acknowledged House sponsor Rep. Jay Trumbull, R-Panama City, before the House voted 95-14 in favor of the legislation, which had cleared the Senate a day earlier. The Senate sponsor had earlier said that it might be more than a year before homeowners see any reduction in rates because of the legislation, if they ever do. The bill creates a $2 billion Reinsurance to Assist Policyholders (RAP) fund that gives insurers a new layer of reinsurance before they tap the Florida Hurricane Catastrophe Fund, a plan that could save companies millions on private reinsurance. Companies that use the fund are expected to provide premium reductions to policyholders. Another major part of the legislation seeks to reduce spurious lawsuits related to claims – with backers of the bill having noted several times during this week's special session that Florida accounts for nearly 80% of insurance lawsuits, while making up just 10% of claims. The measure takes aim at that problem by eliminating attorney fee multipliers and making other changes to how lawyers get paid in such suits, a provision intended to reduce incentives for fraudulent claims. While the legislation drew bipartisan support, several Democratic opponents said it didn't go far enough, and would help insurance companies without any guarantee they'd lower premiums. The House shot down an amendment calling for a rate freeze. Democrats who voted for the bill said it was a first step – Rep. Carlos Guillermo Smith called it "tiptoeing in the right direction," – and several legislators warned that lawmakers needed to continue to work on the issue or face retribution from voters fed up with rising premiums. Another part of the reform effort dealt with roof replacements, and was included in a separate bill (SB 4D) that got more attention for putting new inspection requirements on condo high rises (see above). Passage of the measure effectively ended the special session two days early, with lawmakers not planning to take up any more legislation this week. Insurance Journal / Associated Press / USA Today Network / Law 360 / Reinsurance News

“Lawmakers pass insurance bills with $10,000 for home upgrades” via Lawrence Mower of the Tampa Bay Times — State lawmakers are reviving a 16-year-old state program that could give homeowners up to $10,000 to harden their homes, an attempt, legislators hope, to curb skyrocketing homeowners’ insurance rates. While the program, known as My Safe Florida Home, could help thousands of homeowners get free home inspections and money to replace their windows, doors and roofs, it’s unlikely to make a significant dent in rapidly rising rate increases for the vast majority of Floridians. The program’s past iteration was troubled during its two-year stint, and lawmakers this year are giving it 40% less money than they did in 2006 when the state was experiencing another property insurance crisis triggered by a series of hurricanes.

“Lawmakers deliver home insurance reforms sought by Ron DeSantis. Will they work?” via Zac Anderson and Jason Delgado of USA Today Network — Pressed into action by DeSantis to stem a growing crisis, Florida lawmakers delivered property insurance reforms sought by the Governor and primarily favored by the insurance industry. Now the questions are whether they will work and who will benefit. Homeowners struggle with higher rates, while insurers fail and drop coverage. DeSantis was under pressure to get something done. The solution lawmakers produced is a bill that the Senate sponsor said focuses on stabilizing struggling insurers than delivering immediate rate relief.

Several lawmakers said the Legislature didn't do enough on property insurance during this week's special session, setting the stage for more work on the issue early next year – or maybe sooner. Orlando Sentinel

“Homeowners won’t see insurance rate cuts for 18 months, or maybe never, Senator says” via Jeffrey Schweers of the Orlando Sentinel — Florida’s 7 million homeowners can forget about any immediate relief from rising property insurance rates coming out of this week’s special session. Boyd, the sponsor of two bills aimed at stabilizing the ailing insurance market and curbing abuses in the roofing repair industry, said during the bill’s only committee hearing Monday that rate reductions would take up to 18 months or they might not happen at all. “Right now, in terms of rate relief, there is no immediate impact,” said Boyd, an insurance agent himself.

“Ron DeSantis wants insurance market problems fixed before diving into Citizens” via Jacob Ogles of Florida Politics — DeSantis signaled confidence lawmakers will pass effective property insurance reforms during the Special Session this week. And he does not believe those will result in rate increases for homeowners using Citizens Property Insurance. “This homeowners' insurance, this has been something that’s been a problem with the state for a long time,” DeSantis said. While DeSantis had been optimistic reforms passed and signed in 2021 would assist, he said the Legislature ultimately didn’t do enough to stop rising costs on consumers.

“Condo safety bill clears Legislature, heads to Governor’s desk” via Ron Hurtibise of the South Florida Sun-Sentinel — Aging high-rise condos will have to undergo safety inspections while condo boards will have to save money for structural repairs if the Governor signs a new condo safety bill that cleared the Legislature on Wednesday. The bill is meant to prevent another catastrophe like last year’s collapse of the Champlain Tower South in Surfside, killing 98 people. Earlier this year, during the Regular Session, the bill failed to clear the Legislature but will now go to DeSantis.

“‘Not expecting much to change.’ Gun control bills ignored in Florida, ‘constitutional carry’ still in play” via Skylar Swisher and Jeffrey Schweers of the Orlando Sentinel — The Texas elementary school massacre is putting new scrutiny on a proposal to allow Floridians to carry handguns without a permit, a measure DeSantis promised to sign before he leaves office. Gun control advocates don’t expect the Republican-led Florida Legislature to back off its pro-gun stance. Patricia Brigham, president of Prevent Gun Violence Florida, said she is “not expecting much to change” regarding Tallahassee’s attitude toward guns.

A tropical disturbance already? Early system off Florida bringing rain to the Panhandle - The first disturbance of the 2022 hurricane season has moved into Alabama and is expected to be short-lived, with no chance of development in the next five days, forecasters said. However, it’s causing stormy weather in parts of Florida’s Panhandle. The National Weather Service Office in Tallahassee said there’s a “marginal risk” for severe storms in the region Monday, with heavy rain, strong winds and possible flash floods. More from the Miami Herald.

Legislative …

“New Florida program helps ‘hometown heroes’ buy their first homes, DeSantis says” via Lisa. J. Huriash of the Orlando Sentinel — To help people buy homes in the communities they serve, a new program will assist “vital” workers among 50 professions with down payment and closing costs, DeSantis said Monday. The initiative, called the Florida Hometown Heroes Housing Program, begins on June 1, as the state faces rising costs in housing. The state’s initiative will cost taxpayers $100 million. There are 1,000 lenders involved in the program to start aiding essential workers, such as police officers, firefighters, doctors, nurses and teachers, among other professions.

Federal Court Ruling Blocks Part of Florida's Social Media Law - A federal appeals court on Monday found unconstitutional a Florida law that bans social media platforms from banning politicians. The law, which was championed by Gov. Ron DeSantis and passed as (SB 7072) in 2021, was challenged by trade associations for social media companies. The measure primarily prohibited social media companies from kicking candidates or publications off of the platforms, and came at a time when conservatives were complaining that some social media companies wouldn't provide a forum for their views, and followed the banning of then-President Donald Trump from Twitter. The 11th Circuit Court of Appeals struck down the part of the law requiring social media companies to accept users and content without being able to ban those who violate rules or standards, but did allow to stand a part of the law that required social media companies to provide people banned from the platforms with access to their data for 60 days. It also upheld a part of the law requiring the companies to make content standards more clear. The appeals court's unanimous decision was written by a Trump-appointed judge, Kevin Newsom. Florida officials arguing for the law had contended that social media companies are more similar to "common carriers," like telephone companies that could be regulated than to media organizations, which have First Amendment protections. 11th Circuit Ruling in NetChoice LLC et. al. v. Attorney General, State of Florida et. al. / Washington Post / Orlando Sentinel / Associated Press / Bloomberg

“Appeals court blocks key parts of DeSantis’ Big Tech censorship law” via Skyler Swisher of the Orlando Sentinel — A federal appeals court ruled Monday it is unconstitutional for Florida to prohibit social media companies from banning politicians, dealing a blow to DeSantis’ push to combat what he declares to be online censorship. A three-judge panel of the 11th Circuit Court of Appeals upheld an injunction blocking critical parts of Florida’s social media law pushed by DeSantis, writing that meddling with the platforms’ content-moderation policies ran afoul of the First Amendment. DeSantis and other Republican leaders argued that social media companies were biased toward conservatives and censored political speech.

Florida law targeting Facebook, Twitter is unconstitutional, U.S. appeals court rules - Dealing a major setback to Gov. Ron DeSantis, a three-judge appellate panel on Monday ruled that a 2021 Florida law targeting social-media platforms such as Facebook and Twitter unconstitutionally restricts the companies’ First Amendment rights. Monday’s decision by the 11th U.S. Circuit Court of Appeals upheld most of a preliminary injunction imposed in June by U.S. District Judge Robert Hinkle. [Source: Miami Herald]

“House Democrats likely to pick Fentrice Driskell as leader after Alexander sexual harassment scandal” via James Call of USA Today Network — Florida House Democrats are expected to meet Tuesday morning at the state Capitol to elect Rep. Driskell as their caucus leader for the 2023 and 2024 Legislative Sessions. No opposition to Driskell’s ascension appears to have formed as shellshocked Democrats gather in Tallahassee for a Special Session on property insurance. The minority party was unsettled two weeks ago when Leader-elect Rep. Ramon Alexander announced he would not pursue re-election to the House due to sexual harassment allegations against him.

Business …

Memorial Day weekend is expected to bring an increase in travelers even though fuel, hotel and airfare costs have skyrocketed in recent months. Officials believe the three-day holiday weekend will be above pre-pandemic levels, signaling a busy summer season for Florida's tourism industry.Florida Politics

According to a new survey released by Florida Atlantic University, Floridians are shelving plans to make purchases and trips amid the highest inflationary period since the Ronald Reagan administration.

FAU’s Business and Economics Polling Initiative found that nearly half of Floridians believe the national economy is in poor shape, and five out of six say addressing inflation and cost of living increases should be a top priority.

Respondents echoed those broad strokes concerns in several other economic sectors. More than 93% told the pollster they were at least a little concerned about rising housing costs, including 24% who said they were “very concerned.” Meanwhile, 91% said the same about increasing homeowners’ insurance premiums.

Some said economic issues were not mere concerns. They’re already having an impact on their day-to-day lives.

Nearly two-thirds of Floridians said they are cutting back on grocery spending. Cutbacks were even more common for non-necessities — 75% are driving less, 79% are traveling less, and 80% are spending less on entertainment.

A sizable proportion is also struggling to make ends meet, cutbacks or not. A full 58% said they were tapping into their savings to pay bills, while 38% said they’ve bill payments.

The FAU BEPI survey was conducted online May 20-22. It has a sample size of 532 with a margin of error of plus or minus 4.24 percentage points.

“Median home price soars to $410,000; affordability a statewide crisis” via Trevor Fraser of the Orlando Sentinel — The median home price in Florida hit $410,000 in April, further eroding the options for working-class residents to find housing. All of Florida’s 22 metropolitan statistical areas experienced increased home prices over the past year, most in double digits, with prices continuing to rise. The statewide year-over-year increase was 21.8% percent, the report found. Only the Tallahassee metro, with a median home price of $299,000, saw a decrease from its price in February, which was $306,950. The Orlando-Kissimmee-Sanford MSA had the sixth-highest home prices with a median of $425,000, a 23.9% raise. This is higher than April’s Orlando Regional Realtor Association report, which includes a broader coverage area than the MSA.

“Congressional budget office says inflation to last into 2023” via Fatima Hussein of The Associated Press — The Congressional Budget Office released an economic outlook Wednesday saying high inflation will persist into next year, likely causing the federal government to pay higher interest rates on its debt. The nonpartisan agency expects the consumer price index to rise 6.1% this year and 3.1% in 2023. This forecast suggests that inflation will slow from current annual levels of 8.3%, yet it would still be dramatically above a long-term baseline of 2.3%. The 10-year estimates do contain positive news as this year’s annual budget deficit will be $118 billion lower than forecast last year.

Florida gas prices drop nearly 4 cents after reaching new record-highs - Florida gas prices are going down a bit as nearly two million Floridians prepare to take a Memorial Day road trip. As of Monday, the average price for gasoline in Florida is $4.47. The state average declined 4 cents after setting a new record high price of $4.51 per gallon last week. More from CBS 12.

Florida joins feds to target illegal caller ID spoofing and robocalls - Sick of spam calls? So are state leaders. Florida Attorney General Ashley Moody on Thursday announced a new investigative partnership against illegal caller ID spoofing and robocalls with the Federal Communications Commission. The partnership, Moody explained, will allow Florida to access more resources. It will also allow broader communication between federal and state investigators. Caller ID spoofing is when a caller disguises themselves and provides a false caller ID. More from the Gainesville Sun.

Campaign and Elections …

Advocates Take Congressional Map Challenge to State Supreme Court - Voting rights groups turned to the Florida Supreme Court on Monday to weigh in on the new congressional district map passed by lawmakers after the 1st District Court of Appeal ruled late last week that the newly drawn districts must remain in effect. Plaintiffs, including Black Voters Matter, claim the map drawn by the governor's office and passed by the Legislature last month is unconstitutional. The group filed a lawsuit the same day Gov. Ron DeSantis signed the map into law. The central issue is a North Florida adopted a decade ago by the courts that was eliminated in the newly drawn boundaries. The district, currently Congressional District 5, combines several geographically disparate Black residential areas between Jacksonville and Tallahassee to make it likely that a Black congressional candidate would be elected. The governor's office contends that amounts to racial gerrymandering and that the district is unconstitutional but challengers argue that dissolving the district violates the Fair Districts amendment put in place by voters to try to make drawing districts more fair. Although the voting rights organizations have issues with other parts of the map, the plaintiffs are requesting the Supreme Court to issue an injunction on the boundaries in North Florida with the midterm elections approaching. Candidates for Congress must qualify to run in less than a month. Florida Politics 

“Ready for Ron PAC urges DeSantis to run for President in 2024” via Fred Lucas of Fox News — A new political action committee has formed attempting to draft DeSantis to run for President in 2024, and it's run by a Republican consultant heavyweight who has been a veteran of campaigns involving former GOP Presidents Ronald Reagan and Trump. DeSantis, running this year for a second term as Governor, has consistently led polls among Republican Primary voters if Trump isn’t a contender. However, when Trump is included in the polling, DeSantis usually runs a distant second. "Ready for Ron" registered with the Federal Elections Committee and has made an ad buy to garner attention for the petition. Like other PACs, under FEC rules, it is independent and cannot coordinate with DeSantis.

“DeSantis reaches new highs in 2024 prediction market” via A.G. Gancarski of Florida Politics — PredictIt markets concerning both the Republican nomination and the Presidential Election are showing DeSantis has hit new highs in recent days. In the still-hypothetical race for the 2024 GOP nomination, DeSantis has trended of late toward parity with Trump. The latest “Yes” price for DeSantis was 33 cents, and in the last week, DeSantis shares have closed at 35 cents. Trump’s latest “Yes” price is 37 cents. While Trump action has stayed relatively static, with prices near or at 40 cents a share, DeSantis has seen increased enthusiasm. The spread between “Yes” shares for the former President and the Governor was around 10 cents three months ago. The momentum here jibes with that of various polls showing DeSantis as an increasingly viable Trump alternative. No other Republican is really a factor for investors here.

Nikki Fried wins Democratic Environmental Caucus straw poll — Agriculture Commissioner Fried won a straw poll of the Governor Primary held by the Democratic Environmental Caucus of Florida, a group that candidates who “preserve, protect and enhance Florida’s natural resources.” They held the straw poll on May 15 and included Fried, U.S. Rep. Charlie Crist and Sen. Annette Taddeo. Fried’s campaign touted the win and pointed to her recent victories in the Young Democrats and Black Caucus straw polls. “For too long, Florida Governors have failed to honor the sacred pact every Floridian has with our salt air, our sandy beaches, the river of grass, and our precious waterways,” Fried said, adding that climate change “is the No. 1 generational challenge we face, and one we can’t afford to ignore any longer.”

“Florida Family Action endorses Wilton Simpson for Agriculture Commissioner” via Jacob Ogles of Florida Politics — One of Florida’s most vocal socially conservative groups endorsed Simpson’s bid for Agriculture Commissioner. “When it comes to protecting our food, agriculture and natural resources, there is no candidate more qualified than Wilton Simpson,” said John Stemberger, Florida Family Action President. Stemberger’s voice has boomed, especially in Republican circles. The endorsement should help shield the Trilby Republican from a challenge from the right, though that concern largely seemed assuaged when DeSantis backed Simpson and primary challenger Chuck Nadd promptly suspended his campaign. The endorsement comes a day after Simpson landed the endorsement of Grover Norquist, president of Americans for Tax Reform and one of the nation’s most influential fiscal conservatives.

“Al Lawson: Cord Byrd brings Donald Trump philosophy to State Department” via Renzo Downey of Florida Politics — U.S. Rep. Lawson says new Secretary of State Byrd is bringing former President Donald Trump’s election lie philosophy to the Florida Department of State. “What you hear from the rhetoric coming out of the Secretary of State’s Office with a new person over there, it’s just ridiculous,” said Lawson. “It’s really ridiculous to be not wanting to admit that there were no problems in the state of Florida.” Despite Lawson’s characterization, Byrd did say Florida’s 2020 election was successful and accurate.

“‘Putting politics before everything else’: Kelli Stargel’s daughter speaks out against mother’s congressional run in viral TikTok” via Kelly Hayes of Florida Politics — In a TikTok that has garnered over 64,000 views, Stargel’s daughter, Hannah, recounts what she considers hypocrisies between her parents’ political facade promoting conservative, family-first policy and their relationship with their children. “After numerous years of telling me I was hard to love, putting me through tons of years of neglect, putting politics before everything else, and honestly, just being a horrible, horrible person to look up to — is this really somebody you want up in D.C. passing laws for you and your children, telling you what to do with your body?” Hannah Stargel said on TikTok. Hannah told Florida Politics that she decided to speak out after her mother announced her congressional run, after years of promising to step away from politics.

“Ashley Moody endorses Laurel Lee in CD 15” via Jacob Ogles of Florida Politics — “I’ve seen firsthand Laurel Lee’s commitment to serving the people of Florida, from our days as young lawyers volunteering to assist victims of domestic violence through her service as Secretary of State for Gov. DeSantis,” Attorney General Moody said. “Like me, Laurel has been a federal prosecutor and a judge. She’s worked side-by-side with law enforcement to protect Floridians and ensure that the laws of our state are respected.” Lee resigned from Gov. Ron DeSantis’ administration to run in the newly drawn Florida’s 15th Congressional District. The Thonotosassa Republican entered a crowded GOP Primary field.

“‘Ghost’ candidate Jestine Iannotti booked into Seminole jail, bonds out” via Jeff Weiner of the Orlando Sentinel — Iannotti, the former Seminole County substitute teacher whose independent 2020 bid for Florida Senate District 9 was central to the statewide “ghost” candidate scandal, was booked into the Seminole County Jail on Wednesday morning. She was jailed at about 11:30 a.m. and released roughly two hours later after posting a $4,500 bond. Her brief detention provided a rare glimpse of Iannotti, 36, who never campaigned for the seat and spent weeks before the November 2020 election in Sweden, where she moved after the race was decided.

COVID …

No. 3 in new cases: Florida recorded more than 55,000 new cases of COVID-19 in the week through Wednesday, the highest seven-day total seen since the winter 2022 surge was waning in early February. Florida’s latest case tally from the U.S. Centers for Disease Control and Prevention — 55,390 over seven days through Wednesday  was one-third higher than the week before. Only California, with 77,000 cases, and New York, with 71,000, saw more new cases emerge during the week. 

Federal health officials have classified the Tampa Bay area as at high risk for COVID-19 infections. Tampa Bay Times

The federal government plans to expand COVID-19 testing sites to include treatment for infections. The antiviral treatment known as Paxlovid is available at the nation's first federally supported test-to-treat site that opened in Rhode Island on Thursday. Other test-to-treat sites are expected to open in Massachusetts and New York City. Health officials are preparing for a spike in cases as summer travel increases in the coming weeks to months. Associated Press

Health Care …

Florida's Constitutional Right to Privacy is Key in Abortion Debate - The Florida Supreme Court, which has been remade by Gov. Ron DeSantis, could end up deciding the fate of abortion rights in the state because of a longstanding legal opinion here that extended privacy rights guaranteed by the state constitution to women seeking abortions. Politico

Health Care: While COVID cases have been rising again in the United States in recent weeks, more than 1 in 3 Americans consider the pandemic over. Gallup

Weesam Khoury has been named the Deputy Chief of Staff at the Florida Department of Health.

“Tenet Health to operate Community of Caring Hospital, fourth hospital in St. Lucie County” via Olivia McKelvey of Treasure Coast Newspapers — Tenet Health is expected to manage the new 54-bed hospital planned near Becker Road and Florida's Turnpike. Community of Caring Hospital would be the fourth hospital in St. Lucie County and the third in Port St. Lucie. It could open by the end of 2024. The Dallas-based for-profit company has surgery centers in Vero Beach, Port St. Lucie, Jensen Beach and Stuart, but this would be its first hospital on the Treasure Coast. It would be about 8 miles from HCA Florida St. Lucie Hospital, 9 miles from Cleveland Clinic Tradition Hospital, and 20 miles from HCA Florida Lawnwood Hospital in Fort Pierce. The City Council approved the hospital site plan Monday.

CMS Approves Postpartum Medicaid Extension - The Centers for Medicare & Medicaid Services recently approved Florida's request to extend Medicaid coverage for women for up to a year after they have a baby. The measure, passed in 2021, was a priority of House Speaker Chris Sprowls. Medicaid pays for more than four in ten births nationwide, and federal rules require states to cover pregnant women through 60 days postpartum, but after that states can choose how long to continue the coverage. Other states, including California, Oregon and Kentucky were also given the green light by the agency. More than 5 million people are currently enrolled in Florida's Medicaid program. The expanded Medicaid coverage has been available to pregnant women in the state since March 2020 following a public health emergency put in place by the federal government during the height of the COVID-19 pandemic, but that public health emergency recently expired. The approval of the postpartum initiative also extends Children's Health Insurance Program benefits. "The American Rescue Plan gives all states an easier pathway to extend postpartum coverage beyond the critical first weeks for a new family, which can put all our communities, particularly those hard-hit by health disparities, on a better course toward health and well-being," said CMS Administrator Chiquita Brooks-LaSure. Florida Politics / American Journal of Managed Care / Healthcare Finance News / WLRN / Politico / American Hospital Association