The Florida Legislature concluded its work on schedule today, taking final action on bills, passing the budget and adjourning Sine Die. Governor DeSantis was a driving force in the Legislature this year, with most of his priority items headed to his desk for approval, including, Insurer Accountability, Surfside condo glitch fix, Telehealth, Telephone Solicitation, and Data Privacy. Some of the Governor’s priorities are already enacted, including Tort Reform, Construction Defect, ESG and PBM Regulation.
LIFE
1. Pre-licensing Education and Value-Added Insurance Products – HB 1111/SB 312
By Rep. Barnaby and Sen. Collins
PASSED
SB312 passed the Senate on April 28 and passed the House on May 3rd.
This bill originally rolled back the prohibition on using DNA to underwrite life insurance by allowing underwriting on test results that are in a medical record. That provision was removed from the bill.
In addition, this bill contains language related to allowing “value added products” to be offered by agents and insurers without them being deemed an unlawful inducement or rebate. Due to opposition from the property insurance agents’ group, the scope of this section was limited to life & health products. Based on an NAIC model act, the value-added services must be designed to:
a. Provide loss mitigation or control services
b. Reduce claim costs
c. Provide education about liability risks or risks of loss to persons or property
d. Monitor, assess or reduce risk
e. Enhance health
f. Enhance financial wellness through education or financial planning services
g. Provide post-loss services (for example, grief counseling or funeral planning for life)
h. Incentivize behavioral changes to improve health
i. Assist in the administration of employee or retiree benefit insurance coverage
The cost to the insurer or agent must be reasonable in comparison to the premiums or insurance coverage. The insurer or agent cannot advertise that these services are “free” or similar wording.
Finally, this bill has been amended to reduce the pre-licensing hours for life insurance agent licenses from 40 hours down to 30 hours.
2. Paid Family Leave Insurance HB 721/SB 670
By Rep. Chaney and Sen. Yarborough
PASSED
This bill authorizes life insurers to optionally transact paid family leave insurance. Revises the definition of the term “kinds of insurance” to include paid family leave insurance. Requiring paid family leave insurance policies to specify details and requirements about covered family leave reasons. Sets the “benefit period” for the length of family leave benefits available for each covered family leave reason, which may not be less than 2 weeks during a period of 52 consecutive calendar weeks.
3. Paperless Billing for Health and Dental Policies HB505/SB418
By Rep. Berfield and Sen. Perry
PASSED
See description below in the Property insurance section.
HEALTH
1. PBM Reform – HB 1509/SB 1550
By Rep. Chaney and Sen. Brodeur
SIGNED BY THE GOVERNOR (CHAPTER NUMBER 2023-29)
The bill is a priority of Governor DeSantis and never received a “no” vote on the floor.
This bill would impose a massive new regulation of Pharmacy Benefit Managers (“PBMs”) and require PBMs to do the following:
· Register as Third-Party Administrators for a fee and require extensive audits and penalties for violations;
· Prohibit spread pricing and mandate 100 % pass through of rebates or else give policyholders Point-of Sale rebates at the pharmacy counter;
· Includes Medicaid, State Group, ERISA and Medicare Part D plans in the scope of the bill, except where the provisions conflict with federal law;
· Regulate MAC appeals;
· Prohibit mandatory mail order;
· Removed from House bill: Impose fiduciary duty of PBMs to policyholders (similar to New York law);
· Ban directing insureds to pharmacy affiliates of a PBM or health plan (steering) in certain circumstances and defines the term “affiliate”;
· White Bagging: Require PBMs to offer to contract with Essential Provider hospitals as defined in the Medicaid code and using state Board of Pharmacy accreditation standards;
· Frozen Formulary: sixty-day continuity of care provision.
2. Telehealth Practice Standards – HB 267/SB 298
By Rep. Fabricio and Sen. Boyd
PASSED
The House bill has cleared all of its committees and the floor, 115-0, and passed the Senate 39-0. The bill revises the definition of “telehealth.” Under the bill, the use of audio-only telephone calls is no longer excluded from the definition.
3. Genetic Counselors Utilizing Telehealth – HB 117/SB 218
By Rep. Silvers and Sen. Harrell
PASSED
SB218 has been enrolled and will be sent to the Governor for his review soon. The bill amends the definition of a telehealth provider in s. 456.47, F.S., to allow licensed genetic counselors to provide health care and related services utilizing telehealth.
4. Pharmacy Benefit Managers HB 203/SB 420
By Rep. Gonzalez Pittman and Sen. Wright
DIED
These bills did not pass. See the Governor’s PBM package, HB1519/SB1550, which has been signed by the Governor.
The bill mandates OIR to examine PBMs. Allows OIR to suspend/revoke and fine a PBM if it violates certain provisions of law. Requires pharmacy benefit managers to have standard contracts with pharmacies, provides requirements for such contracts' terms and conditions, requires pharmacy benefit managers to provide copies of such standard contracts within a specified timeframe to requesting pharmacies and pharmacists.
Prohibits pharmacy benefit managers from engaging in certain acts against patients and covered individuals and provides that such acts are unfair methods of competition or unfair or deceptive acts or practices subject to Ch. 501 of Florida Law.
5. Protection from Discrimination Based on Health Care Choices HB 1013/SB 252
By Griffits Jr. and Burton
PASSED
These bills would:
· Repeal a temporary pandemic provision relating to prohibiting public employers from imposing COVID-19 vaccination mandates;
· Prohibit business entities and governmental entities from requiring COVID-19 testing to gain access to, entry upon, or service from such entities;
· Prohibit such entities from requiring persons to provide certain documentation or requiring COVID-19 testing as a condition of contracting, hiring, promotion, or continued employment;
· Prohibit business and governmental entities from refusing to hire persons, discharging persons, depriving or attempting to deprive persons of employment opportunities, adversely affecting persons with respect to employment, or otherwise discriminating against any person based on knowledge or belief of a person’s COVID-19 vaccination or post infection recovery status or failure to take a COVID-19 test, among other things.
6. Protections of Medical Conscience HB1403/SB1580
By Rep. Rudman and Sen. Trumbull
PASSED
This bill is a priority of the Governor. The bill is likely subject to judicial scrutiny once it has been signed because opponents raised a number of concerns regarding potential discrimination. The bill:
· Authorizes health care providers & health care payors to opt out of participation in or payment for certain health care services by conscience-based objections without discrimination or threat of adverse actions;
· Requires health care provider to notify patient and health care provider’s supervisor or employee in writing when such health care provider declines to participate in health care services & retain copy of such notification; and
· Prohibits certain boards and DOH from taking certain disciplinary actions.
7. Protection of Medical Freedom HB 305/SB 222
By Rep. Barnaby and Sen. Gruters
DIED
These bills were never heard. The House and Senate bills have received three committees of reference. The bill contains insurance underwriting prohibitions based on vaccine status. The House bill is running into timing issues based on the committees it has to go through.
The Department of Health may not include a person's immunization records in any interstate or federal immunization tracking system or otherwise allow an entity not required by law to have such records without first obtaining written informed consent from the person or the person's parent or guardian, if the person is a minor, to release the immunization records for such purpose.
Health Care providers may not make the provision of any health care services contingent upon a patient receiving or having received a particular vaccine or having recovered from infection from a particular disease.
Creates a new section of law that prohibits employment discrimination on the basis of vaccination or immunity status. Adds similar language in other sections of law dealing with unlawful employment practices, sale or rental of housing, and financing of housing. Revises purposes of Florida Civil Rights Act of 1992 to include discrimination protection for vaccination or immunity status.
8. Coverage for Diagnostic and Supplemental Breast Examination HB 575/SB 460
By Rep. Woodson and Sen. Berman
DIED
These bills were never heard in any committee.
The bill prohibits the state group insurance program from imposing any enrollee cost-sharing liability with respect to coverage for diagnostic breast examinations and supplemental breast examinations. Prohibits the imposition of cost-sharing requirements for diagnostic and supplemental breast examinations by individual, group, blanket and franchise accident and health insurance policies.
The bill defines "Diagnostic breast examination" as a medically necessary and appropriate examination of the breast, including an examination using diagnostic mammography, breast magnetic resonance imaging, or breast ultrasound, which is used to evaluate an abnormality.
9. Newborn Hearing Screenings – HB 435/SB 394
By Rep. Melo and Sen. Polsky
DIED
These bills were never heard in any committee. The bills would have mandated a “Congenital Cytomegalovirus Test” as a required newborn screening test.
A congenital cytomegalovirus test is defined as a test approved by the United States Food and Drug Administration or another diagnostically equivalent test to screen newborns for congenital cytomegalovirus.
10. Group Health Plans/MEWAs HB 897/SB 940
By Rep. Fernandez-Barquin and Sen. Calatayud
PASSED
The House Bill passed the full House by a vote of 100-7 and passed the Senate 38-0.
This bill codifies the definition of “Bona Fide Association” used in HIPAA into the MEWA statute, replacing a reference to an obsolete federal regulation. The bill revises eligibility requirements for a bona fide group to qualify as a multiple-employer welfare arrangement. The sponsor said that he was handling the bill on behalf of the Miami Chamber of Commerce, which has 21,000 people currently receiving coverage through MEWA plans so needed to protect that model.
11. Health Care Benefit Coverage for Members of Nonprofit Organizations and Agricultural Cooperative Associations HB 1483/ SB 1062
By Rep. Plakon and Sen. Collins
DIED
Neither bill was heard in committee. The bill would have authorized nonprofit membership organizations and agricultural cooperative associations to offer health care benefit coverage to their members. Authorizes such nonprofit membership organizations and agricultural cooperative associations to cede individual risks to certain insurers by reinsurance agreements and requires such organizations and associations to file by a specified ate each year a specified statement with the Commissioner of Insurance Regulation.
12. Copay Coupon Accumulator HB 1063/SB 46
By Rep. Cross and Sen. Wright
DIED
The House bill was never heard in committee and the Senate version only passed one committee.
The bill requires specified individual health insurers and their pharmacy benefit managers to apply payments by or on behalf of insureds toward the total contributions of the insureds’ cost-sharing requirements.
Defines the term “cost-sharing requirement” as a dollar limit, a deductible, a copayment, coinsurance, or any other out-of-pocket expense imposed on an insured, including, but not limited to, the annual limitation on cost sharing subject to 42 U.S.C. s. 18022.
13. Coverage for Skin Cancer Screenings HB 785/SB 142
By Rep. Massullo and Sen. Harrell
DIED
HB785 passed all of its committees but was never taken up on the House floor. The Senate version never received a committee hearing.
A health insurance policy issued or renewed on or after January 1, 2024, must provide coverage and payment, without imposing a deductible, copayment, coinsurance, or any other cost-sharing requirement, for annual skin cancer screenings performed by a licensed dermatologist.
14. Employer Coverage of Gender Dysphoria Treatment HB 1265/SB 952
By Rep. Yarkosky and Sen. Ingoglia
DIED
These bills were never heard in any committee.
The bill would have required employers to provide coverage of gender dysphoria treatment to also cover the full costs associated with treatment that reverses such gender dysphoria treatment, regardless of the rate of coverage provided for the initial treatment. Provides that employees who receive gender dysphoria treatment through coverage provided by an employer are entitled to full coverage of total costs associated with treatment that reverses such gender dysphoria treatment under certain circumstances, regardless of whether they are still employed by that employer.
The bill also creates a private right of action. If an employer or former employer, as applicable, refuses to cover the total costs associated with treatment to reverse gender dysphoria treatment it initially covered for an employee, the employee may file a civil action in a court of competent jurisdiction to recover from the employer or former employer, as applicable, the actual total costs associated with such treatment as well as any damages incurred by the person as a result of the employer’s noncompliance with this section.
15. Gender Clinical Interventions/Treatment for Sex Re-assignment HB 1421/SB 254
By Fine/Yarborough
PASSED
The bills would codify recent Board of Medicine policy and was being pushed by the Governor’s Office.
Provides criteria under which such treatments and prescriptions are prohibited. Allows treatment to be a factor in child custody determinations. Creates new private cause of action for persons under 18 in certain circumstances. The House bill prohibits private health plan coverage of this treatment. Both bills ban coverage using public funds and governmental entities, including public colleges, state employees group health plan and Medicaid (once the Senate amendments are adopted on April 3).
DENTAL
1. Noncovered Services - Dental Payments Under Health Insurance Plans HB 1605/SB 834
By Rep. Gonzalez Pittman and Sen. Harrell
DIED
Neither the House nor Senate bills were heard in committee.
This bill would have allowed dentists to charge more for non-covered services. The bill set certain guidelines if initiating or changing payment methods to a dentist from a health insurer. Sets a method for denying a claim submitted to a dentist. The new provisions in the bill may not be waived by contract and if they are the contract is void.
2. Practice of Dentistry HB 503/SB 356
By Rep. Berfield and Sen. Boyd
DIED
The House bill never made it out of its last committee stop effecting killing the bill.
Requires individuals and entities that provide dental services through telehealth to provide each patient with specified information regarding the dentists treating such patient and requires that there be a dentist of record for each patient treated through telehealth. Finally, the bill requires individuals and entities that provide dental services through telehealth to make specified information available to each patient before rendering such services and at any time upon patient request. The bill seeks to improve safety for products such as Invisalign or Smile Direct.
3. Dental Services for Veterans HB 635/SB 366
By Rep. Maney and Sen. Burgess
PASSED
The House bill passe the floor by a vote of 116-0 and passed the Senate 38-0.
The state has sufficient funds for this program and the State of Florida has a good track record of creating programs to help veterans. We expect this bill to move and get resounding support for leadership. Both the House and Senate versions have received three committees of reference but have not yet been heard.
The bill establishes the Veterans Dental Care Grant Program in the Florida Department of Veterans’ Affairs. The department shall contract with a statewide direct service organization to administer the Veterans Dental Care Grant Program. The statewide direct-service organization must have proven experience developing and implementing veteran relevant programs, including dental service programs. The program is subject to appropriation by the legislature.
PROPERTY
1. Insurer Accountability – HB7065/SB 7052
By Rep. Duggan and Sen. Hutson
PASSED
The House concurred with the Senate’s version of SB 7052, regarding insurer accountability, and it’s on the way to the Governor. Here are key provisions that stand out:
· Criminal Actions. If the OIR has reason to believe, during an examination, that a criminal law has been violated, they must refer the case to the Division of Investigative and Forensic Services, law enforcement, or prosecutorial agencies, as applicable. While it does not reference insurers specifically, it applies to violations by insurers, policyholders, adjusters, or others.
· Reporting of Violations. The OIR must now complete a quarterly report outlining actions against insurers including fines levied. With increased fine amounts and penalty provision in this bill, it’s possible that we will begin seeing the Office levy fines for violations that in the past came with a warning.
· Increased Examinations. No matter how few consumer complaints an insurer has following a hurricane, if they are in the top 20 percent of companies with complaints or the top 20 percent of insurers in the calculation of ratio of hurricane closed claims without payment to the insurers total number of hurricane claims, they will subject to a market conduct examination.
· Liability Claims Bad Faith Standards. When handling a liability claim, there are significant duties placed on insurers which are items pulled from Florida Supreme Court cases indicating how insurers must act in good faith. If an insurer on any claim does not follow them, they are subject to enhanced fines which are double the increased fine amounts. For example, a single willful violation now can cause an insurer to be fined $200,000, and that amount can be doubled to $400,000.
· Other Fines Increased. Violations of the Unfair Trade Practices can come with a $25,000 per violation, up to $200,000 cap on non-willful violations, or $200,000 per violation up to a cap of $1,000,000 in willful violations.
· Hazardous Insurer Standards.
- An NAIC Model act on this topic has been in effect in rule in Florida for some time. It’s now put into statute with additional issues not in the NAIC model. There are over 30 new triggers which can result in OIR ordering corrective action, following are some that stand out.
- If an insurers excess surplus (above what’s needed to comply with statute) falls by 50% or more, including paid dividends, it can be used to trigger an examination or other action. If an insurer’s excess surplus drops more than 20 percent of the remaining surplus, it is also a trigger.
- Whether transactions among affiliates do not provide sufficient value, liquidity, or diversity to assure the insurers ability to meet its outstanding obligations as they mature.
- Whether the insurer has sufficient capital, surplus and reinsurance to withstand not just hurricanes but other “significant weather events” like severe convective storms.
- Whether an insurer has incurred substantial new debt, or has had to rely on frequent or substantial capital infusions.
- Whether an insurer “relies increasingly on other entities, including but not limited to affiliates, third party administrators, managing general agents or management companies.”
The OIR must look at the “totality of the circumstances of the insurer” in determining if it’s in a hazardous condition, so theoretically the OIR ought not be able to apply just one of the more than 30 new tests. If, however they find a hazardous condition, they can require increased rates, increased surplus infusions, suspension or limiting of insurance company dividends (not MGA dividends), corrective action plans and other actions.
· All hurricane mitigation discounts available to insureds must be listed on the insurance company home page, or via a link listed on the home page.
· Claims Handling Manuals. Insurers must develop manuals and various standards for those manuals are set forth in statute. The OIR can inspect them and can require submission of the claims manuals. No provision (other than declaring them trade secret, if they are in fact a trade secret) was made to protect them from view by the general public. Insurers must annually attest that the manual complies with insurance code and usual and customary industry claims processes.
· December Attorney Fee Reform Prospective Only. The bill makes clear that the elimination of the one way attorney fee only applies on claims filed on policies renewed after the bill was signed in mid-December 2022.
Below is the Florida Insurance Council’s summary of the legislation adopted by the Legislature regarding insurer accountability. Regarding insurance coverage for property insurance, the bill:
- Prohibits authorized insurers from cancelling a personal or commercial property insurance policy until after repairs are complete or 1 year after final payment of the claim, whichever is earlier, if the property claim is not hurricane or wind loss related.
- Prohibits authorized insurers from cancelling a personal or commercial property insurance policy for 90 days after the property is repaired if the property was damaged due to a hurricane or wind loss and specifically applies the provision to Hurricanes Ian and Nicole.
- Requires that Citizens cover property with open claims that are being handled by FIGA (Florida Insurance Guaranty Association).
- Provides that the prohibition on applying any other deductible under the policy if a roof deductible is applied encompasses any other loss to the property caused by the same covered peril (applies to personal lines residential property).
- Tolls the time period for filing a property insurance claim during a servicemember/insured’s deployment to a combat zone (applies to property insurance and surplus lines property insurance).
- Clarifies legislative intent that Chapter 2022-271, Laws of Florida, passed during Special Session A in December 2022, (SB 2-A [2022] on Property Insurance) shall not be construed to impair any right under an insurance contract in effect on or before the effective date of that chapter law (December 16, 2022).
Regarding insurance coverage for all lines of insurance, the bill:
- Prohibits the Office of Insurance Regulation (OIR) from waiving its review of policy forms for 3 years for any insurer that has violated the Insurance Code (does not apply to reinsurance, wet marine and transportation insurance, title insurance, credit life or credit disability insurance).
Regarding rates charged for residential property insurance, the bill:
- Requires that residential property insurance rate filings made after July 1, 2023 or pending as of this date must include, and the OIR must consider in reviewing rates, the combined effect of recent legislative reforms and allows the OIR to develop an actuarially sound methodology to review rate filings for this requirement with an appropriation to pay for the methodology development. Exempts reinsurance only filings from the requirement. Specifies no mandatory rate reduction is required and that rate filings must still be for rates that are not excessive, inadequate or unfairly discriminatory.
- Requires that residential property insurance mitigation discounts be updated at least every 5 years starting January 1, 2025 and insurers to provide consumer-friendly information on their website by October 1, 2023 describing hurricane mitigation discounts available to policyholders.
Regarding rates charged for auto insurance, the bill:
- Requires that auto insurance rate filings made after July 1, 2023 or pending as of this date must include, and the OIR must consider in reviewing rates, the combined effect of recent legislative reforms and allows the OIR to develop an actuarially sound methodology to review rate filings for this requirement with an appropriation to pay for the methodology development. Specifies no mandatory rate reduction is required and that rate filings must still be for rates that are not excessive, inadequate or unfairly discriminatory.
Regarding regulatory oversight of property insurance, the bill:
· Allows OIR to do a market conduct examination of a property insurer after a hurricane. Requires the OIR to do an additional market conduct examination on a residential property insurer if after 90 days after a hurricane, the insurer has a high number of consumer complaints, a high number of hurricane claims closed without payment, and other reasons. Only one additional market conduct examination is required even if more than one hurricane hits in a year.
- Requires notice to the OIR via an OIR adopted form if an insurer is going to temporarily suspend writing new residential property insurance. The time for the notice is the earliest of 20 days before the suspension takes effect or 5 days before the insurer notifies its agents of the suspension. Temporary suspensions for imminent hurricane landfall or any other natural emergency are exempted as long as the suspension ends 72 hours or less after hurricane or emergency conditions subside.
Regarding insurer claims handling for liability insurance, the bill:
- Requires OIR to review an insurer’s liability claims handling practices if it finds during a market conduct examination that the insurer has a pattern or practice of violations of the Insurance Code. Subjects the insurer to enhanced penalties for violating specified claims handling practices. Specifies no civil cause of action, civil remedy, or unfair trade practice is created by violations of the liability claims handling practices found by the OIR.
Regarding insurer claims handling for residential property insurance, the bill:
· Requires residential property insurers to create and use a claims handling manual that includes claims handling guidelines that comply with the Insurance Code and usual and customary industry claims-handling practices. Requires these insurers to annually attest on an OIR form that the manual comports with the Insurance Code and usual and customary industry claims handling practices and that the insurer has adequate resources available to implement its claims manual.
- OIR can request an insurer submit its claims manual to them, but insurers do not have to give them to the OIR unless requested.
- No public record exemption is created by a separate bill to protect the confidentiality of the claims manuals if they are requested by the OIR, though insurers may be able to allege the manuals are trade secret to keep the manuals confidential. If trade secret protection is asserted and the manuals are requested by a public records request, the insurer will have to sue the OIR in circuit court in a trade secret case to have a judge rule the manuals are protected by the trade secret law.
- OIR authorized to enact emergency rules to implement this provision.
- Strengthens the Unfair Insurance Trade Practices Act by:
- Prohibiting altering or amending an adjuster’s report without including a list of changes, who made the change, and an explanation of a change that reduces the loss estimate; and
- Prohibiting payment of bonuses to officers and directors while an insurer is impaired or insolvent.
Regarding regulatory oversight of all lines of insurance, the bill:
- Requires insurers to more promptly respond (14 days instead of 20 days) to the Department of Financial Services Division of Consumer Services and increases fines ($5K instead of $2,500 per entity and $1K instead of a sliding scale per individual) for noncompliance.
- Increases the maximum administrative fine imposed by the OIR for nonwillful violations stemming from a state of emergency from $5K-$20K to $25K - $100K and for nonwillful violations that do not stem from a state of emergency from $5K-$20K to $12,500 - $50K.
- Increases the maximum administrative fine imposed for willful violations stemming from a state of emergency from $40K-$200K to $200K - $1M and for willful violations that do not stem from a state of emergency from $40K-$200K to $100K - $500K.
- Increases the maximum administrative fine imposed for nonwillfull violations of the Unfair Insurance Trade Practices Act from $5K to $12,500 and for willful violations from $40K to $100K. Aggregate fine amounts are increased from $20K to $50K for nonwillful violations and $200K to $500K for willful ones. Fine amounts are higher for violations that relate to losses or claims due to a state of emergency. In this case, fines are $25K for nonwillful violations and $200K for willful one with an aggregate fine max of $100K for nonwillful and $1M for willful.
- Increases the maximum administrative fine for twisting and churning from $5K to $12,500 for nonwillful violations and from $75K to $187,500 for willful ones with aggregate fine max increase from $50K to $125K for nonwillful and from $250K to $625K for willful.
- Increases the maximum administrative fine for willfully or nonwillfully submitting fraudulent signatures on an application or policy-related document to $187,500 max for each violation. Currently, fine is $5K for nonwillful violations and $75K for willful ones.
- Requires additional reporting from regulators regarding their enforcement actions: Annual and quarterly reporting with insurer name listed. Annual report published on OIR website. Annual and quarterly reports provided to Financial Services Commission (Governor and Cabinet), legislative presiding officers, and insurance committees in House and Senate. Information that violates a confidentiality provision in an Order or agreement with or by the OIR is not included in the reporting.
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Requires OIR to create a risk-based selection methodology for market conduct examinations and specifies conditions that require OIR to conduct a market conduct examination. Requires OIR to do rules by October 1, 2023 on the methodology.
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Requires OIR to create a risk-based selection methodology for scheduling financial examinations and specifies what the methodology must contain. Allows OIR to adopt the NAIC Financial Analysis Handbook by rule for the methodology.
- Deletes current law that requires a financial examination of domestic insurers every five years and adds a provision requiring examination of high-risk insurers at least every three years and average and low-risk at least every five years. Current law requiring the examination to cover the preceding five fiscal years is removed and replaced with language requiring the exam to cover the fiscal years since the last examination. However, for low-risk insurers, the examination still covers the preceding three fiscal years.
- Makes OIR do rulemaking on the methodology and financial examination schedule by October 1, 2023.
- Adopts the standards and commissioner’s authority contained in the NAIC Model Law relating to insurers in hazardous financial condition. Additional standards not found in the NAIC Model Law are also included in the bill.
- Requires the OIR to refer all violations of criminal law it uncovers in any investigation or examination to DFS, law enforcement, and prosecutors and provide any records of a violation. OIR is also required to assist in the prosecution.
- Specifies that insurance fraud referrals may be made to the statewide prosecutor for crimes that impact two or more judicial circuits and requires the prosecutor to tell the Bureau of Insurance Fraud why an insurance fraud referral was not begun in 60 days or declined to be prosecuted.
- Requires additional reporting by the DFS Bureau of Insurance Fraud.
Provides additional funding for the DFS Division of Consumer Services.
2. Condominium and Cooperative Associations – HB 1395/SB 154
By Rep. Lopez and Senator Bradley
PASSED
This is a cleanup package for the Surfside bill that passed in special session last May.
SB 154 revises the milestone inspection requirements for condominium and cooperative buildings that are three or more stories in height to:
· Limit the milestone inspection requirements to buildings that include a residential condominium or cooperative;
· Provide that the milestone inspection requirements apply to buildings that in whole or in part are subject to the condominium or cooperative forms of ownership, such as mixed-use buildings;
· Clarify that all owners of a mixed-use building in which portions of the building are subject to the condominium or cooperative form of ownership are responsible for ensuring compliance and must share the costs of the inspection;
· Delete the 25-year milestone inspection requirements for buildings that are within three miles of the coastline;
· Authorize the local enforcement agencies that are responsible with enforcing the milestone inspection requirements the option to set a 25-year inspection requirement if justified by local environmental conditions, including proximity to seawater;
· Authorize the local enforcement agency to extend the inspection deadline for a building upon a petition showing good cause that the owner or owners of the building have entered a contract with an architect or engineer to perform the milestone inspection services and the milestone inspection cannot reasonably be completed before the deadline;
· Provide that the inspection services may be provided by a team of design professionals with an architect or engineer acting as a registered design professional in responsible charge; and
· Clarify that an association must distribute a copy of the summary of the inspection reports to unit owners within 30 days of its receipt.
Requires the Florida Building Commission to establish by rule a building safety program to implement the milestone inspection requirements within the Florida Building Code. The commission must specify the minimum requirements for the commission’s building safety program by December 31, 2024, including inspection criteria, testing protocols, standardized inspection and reporting forms that are adaptable to an electronic format, and record maintenance requirements for the local authority having jurisdiction.
Revises the requirement that all personal lines residential policies issued by the Citizens Property Insurance Corporation must include flood coverage to exempt condominium or cooperative units that are in certain flood-risk areas and above specified floors in a building.
Clarifies that both the condominium or cooperative unit owner and any person authorized by any owner as his or her representative may inspect the official records of the association.
The bill provides additional presale notice requirements in contracts for sales of a unit by a developer or nondeveloper. This provision is similar to current contract notices to unit owners obligated to furnish certain governing documents to the prospective buyer of a unit more than three days before closing for sales by a nondeveloper or 15 days before closing for sales by a developer. A contract that does not conform to these notice requirements is voidable at the option of the purchaser prior to closing.
3. Collateral Protection Insurance on Real Property HB 793/SB 410
By Rep. Fernandez-Barquin and Sen. Garcia (I)
PASSED
The bill creates a new section of law dealing with real property collateral protection insurance, also known as “forced-placed” insurance. The bill seeks to promote the public welfare by regulating collateral protection insurance on real property, create a legal framework which collateral protection insurance on real property may be written in the state, help maintain the separation between mortgage lenders or servicers, and insurers or insurance agents, and minimize the possibilities of unfair competitive practices in the sale, placement, solicitation, and negotiation of collateral protection insurance.
The scope of the bill applies to insurers and insurance agents engaged in any transaction involving collateral protection insurance on real property and all collateral protection insurance written in connection with mortgaged real property, including manufactured and mobile homes.
4. Insurance Omnibus HB 505/SB 418 including Paperless Billing
By Rep. Berfield and Sen. Perry
PASSED
This bill has turned into the Insurance Omnibus bill for the 2023 Legislative Session. The bill was subject to a floor amendment that dealt with foreign pure captive insurance company, which ultimately was not accepted by the Senate.
The Senate bill is ahead of the House version and has the following provisions:
· Allows a residential property insurer’s rate filing to estimate projected hurricane losses by using a weighted or straight average of two or more models approved by the Florida Commission on Hurricane Loss Projection Methodology.
· Provides that, in lieu of themselves, the Executive Director of the Citizens Property Insurance Corporation, and the Director of the Division of Emergency Management, respectively, may appoint a designee to be a member of the Commission on Hurricane Loss Projection Methodology.
· Authorizes an insurer to file a personal lines residential property insurance rating plan that provides premium discounts, credits, and other rate differentials based on windstorm construction standards developed by an independent, not-for-profit, scientific research organization.
· Limits the requirement that an insurer provide a policyholder who has an automatic bank withdrawal agreement with the insurer with 15 days advance written notice of any increase in policy premiums. Instead, notice will only be required for premium increases that result in an increase in the automatic withdrawal of more than $10 from the previous withdrawal amount.
· Revises provisions regarding the delivery of a policy to a policyholder by expanding the type of policies authorized to be delivered by electronic transmission to include individual and group health insurance policies, including dental.
· Revises the mandated deductibles that must be offered for hurricane loss when issuing a personal lines residential property insurance policy. For policies with a dwelling limit of at least $1 million, the bill no longer requires the offer of the current mandated deductibles of 2 percent, 5 percent, and ten percent of the dwelling limit. Instead, the bill provides that an insurer may offer deductibles of up to:
- Ten percent, for a policy covering a risk with dwelling limits of at least $1 million, but less than $3 million;
- Fifteen percent, for a policy covering a risk with dwelling limits greater than $3 million.
· Revises the requirement that the waiver by a policyholder of windstorm coverage or contents coverage, must be in the policy holder's own handwriting, by also allowing the waiver to be typed.
· Eliminates the requirement that a notice be stamped on the declarations page of limited coverage automobile policies. Such policies generally cover antique motor vehicles.
5. Hurricane Protection for Condominium Association (Mitigation Credits)
HB 395/SB 556 By Rep. Tuck and Sen. Hooper
DIED
Both House and Senate bills have received three committee references. The Senate bill has cleared its second of three committees by a vote of 7-0. The House bill has not moved and technically may be dead for the session.
Adds in the definition section of condominium a term “hurricane protection” which covers hurricane shutters, impact glass, code-compliant windows or doors and other code-compliant hurricane protection products in order to potentially earn insurance mitigation credits.
The bill allows for condominium associations to let members vote and by a simple majority require unit owners to install hurricane protection that complies with or exceeds the applicable building code.
6. Residential Property Insurance Rates (Mitigation Credits)
HB 799/SB 594 By Rep. Griffitts and Sen. Martin
PASSED
The bill adds “wind uplift prevention” to a list of techniques that can be used to reduce property loss and potentially receive a discount, credit or other rate differentials on property insurance. The bill also fixes the flood coverage mandate for citizens’ policies for condominium owners. In addition, the bill requests $750,000 for wind-loss mitigation study.
7. Flood Zone Disclosures for Dwelling Units HB 1291/SB 716
By Rep. Antone and Sen. Stewart
DIED
Both the House and Senate versions have received three committees of reference. Neither of these bills has been heard in committee.
Requires landlords or persons authorized to enter into rental agreements on behalf of landlords to make specified disclosures relating to flood zones before the commencement of a tenancy and reinform tenant if the flood zone changes.
8. Flood Damage Prevention HB 859/SB 1018 (Mitigation Credits)
By Rep. Basabe and Sen. Trumbull
DIED
The House bill was never heard in committee and the Senate bill was only heard in two of three committees.
The bill creates the “Flood Damage Prevention Act of 2023.” The bill seeks to allow the Florida Building Commission to develop certain mitigation strategies in rule to mitigate property damage and encourage continued investment in Florida.
9. Resolution of Disputed Property Insurance Claims HB 1141/SB 1174
By Rep. Gottlieb and Sen. Polsky
DIED
The bills received three references each in the House and Senate. The bills were never heard in both House and Senate.
The bill creates mandatory mediation for resolution of disputed property insurance claims. If agreed to by both parties, it allows for mediation to be conducted via telephone. Once mediation is invoked, the policyholder must, within 10 days, provide the insurer with any and all supporting documents and information that serve as the basis for the claim.
10. Natural Emergencies HB 7057/SB250
by Rep. Giallombardo and Sen. Martin
PASSED
The bill:
· Requires the Division of Emergency Management (DEM) to post on its website a model debris removal contract for the benefit of local governments.
· Encourages local governments to create emergency financial plans in preparation for major natural disasters.
· Provides that counties and municipalities cannot prohibit a resident from placing a temporary residential structure on their property for up to 36 months following a natural emergency under certain circumstances.
· Authorizes local governments to create specialized building inspection teams following a natural disaster and encourages interlocal agreements for additional building inspection services during a state of emergency.
· Requires local governments to expedite the issuance of permits following a natural disaster.
· Increases the extension of certain building permits following a declaration of a state of emergency from 6 to 24 months and caps such extension at 48 months in the event of multiple natural emergencies.
· Prohibits counties and municipalities within the disaster declaration for Hurricane Ian or Hurricane Nicole from increasing building fees until October 1, 2024.
· Allows registered contractors to engage in contracting for the types of work covered by their registration within areas for which a state of emergency has been declared.
· Prohibits counties and municipalities within the disaster declaration for Hurricane Ian or Hurricane Nicole from adopting more restrictive or burdensome procedures to its comprehensive plan or land development regulations concerning review, approval, or issuance of a site plan, development permit, or development or der before October 1, 2024.
· Amends the Consultants’ Competitive Negotiation Act to allow for additional disaster-related construction projects relating to Hurricane Ian to utilize the “continuing contracts” provision through December 31, 2023.
· Provides clarification regarding abandoned vessels and their destruction.
· Directs DEM to administer a revolving loan program for local government hazard mitigation projects, and appropriates $1,000,000 in nonrecurring funds from the General Revenue Fund and $10,000 ,000 in nonrecurring funds from the Federal Grants Trust Fund for such activity. Such funds will be held in reserve, contingent upon FEMA approval and release by the Legislative Budget Commission.
· Extends the date for fire control districts to submit the statutorily-required performance reviews in the event of a natural disaster or a major hurricane.
· Makes the Local Government Emergency Bridge Loan Program a revolving program and makes funds available for local governments impacted by federally declared disasters until July 1, 2038. Additionally, the bill appropriates $50 million in nonrecurring funds from the General Revenue Fund to the program.
AUTO
1. Motor Vehicle Glass HB 541/SB1002 By Rep. Griffitts and Sen. Stewart
PASSED
This is the auto glass AOB bill. It has been filed for the past four years. This The Chief Financial Officer has championed the legislation and spoke in multiple committees in support of the bill.
The bill creates s. 627.7290, F.S., to provide that:
· No person may require a claimant to use a particular company for motor vehicle windshield glass replacement, repair, or calibration services under a personal lines automobile insurance policy.
· An insurer or a person acting on the insurer’s behalf may provide an explanation of motor vehicle comprehensive coverage benefits and any applicable limit of liability to a claimant.
· An insurer must provide an actuarially sound discount to the insured if they offer a policy that contains a managed repair arrangement for the provision of windshield glass replacement, repair, or calibration services.
· Nothing in this section shall be construed to create a private cause of action.
2. Motor Vehicle Liability Policies - HB 57/SB 516 for Risk Retention Groups
Rep. Truenow and Sen. DiCeglie
DIED
Ultimately, the Senate staff had reservations about the bill because they were unsure of the effects on the risk retention market.
The bill permits the owner or operator of a motor vehicle to provide proof of financial responsibility by obtaining an insurance policy from a risk retention group that: 1) has an “A” or higher rating for financial strength, and “VIII” or higher for financial size by the A.M. Best Company, and 2) only provides commercial coverage to its members and shareholders. The bill would permit an RRG to directly provide commercial auto insurance at a lower price to its Florida members.
3. Motor Vehicle Insurance and Driver Licenses for Foster Youth SB 168
By Sen. Garcia (I)
DIED
No House companion bill was ever filed.
Expands the “Keys to Independence” program by removing language in statute that restricts one of the eligibility paths to receive Keys support. Currently, youth and young adults who achieve eligibility for the Keys program via enrollment in postsecondary educational services and supports (PESS) must also have been in licensed care when he or she reached 18 years of age. The bill expands eligibility for the Keys program by removing the requirement for young adults who are eligible by enrollment in PESS to also have been in licensed care when turning 18 years of age.
The Keys program is a state-funded normalcy support program designed to remove barriers to obtaining a driver license for foster and former foster youth. The program removes barriers to obtaining a driver license by young adults by paying, subject to available funding, the cost of driver education, licensure, other costs incidental to licensure, and motor vehicle insurance for certain populations. The change will allow approximately an additional 450 young adults to be eligible to participate in the Keys program.
4. Electronic Motor Vehicle Registration Certificates SB 370
By Sen. Brodeur
DIED
The Senate version moved through the second of three committee stops. A House version was never filed.
Authorizes acceptance of an electronic certificate of motor vehicle registration as documentation required to be in the possession of a motor vehicle’s operator or carried in the vehicle while the vehicle is being operated on the roads of this state. The bill provides that displaying an electronic registration certificate does not constitute consent for an officer or agent to access any other information on the electronic device, and the person who presents the device assumes liability for any resulting damage to the device.
5. Motor Vehicle Insurance HB 429/SB 586
By Rep. Alvarez and Sen. Grall
DIED
This is the PIP repeal bill for the 2023 Legislative Session. It has been filed by members of the legislature who are plaintiffs’ attorneys. The bill repeals Florida’s Motor Vehicle No-Fault Law and replaces it with a bodily injury liability system. In talks with leadership in the House, they have told us that PIP repeal is off the table or this session. We expect this to be an issue during the 2024 Legislative Session.
6. Commercial Vehicle Insurance SB 434
By Sen. Wright
DIED
The Senate bill received three committees of reference and no House bill has been filed.
The bill increases the liability coverage from $350,000 per occurrence to $700,000 per occurrence for commercial motor vehicles with a gross weight over 44,000 pounds.
7. Towing Vehicles SB 438
By Sen. Rodriguez
DIED
The Senate bill has received three references and a House bill has yet to be filed. The bill has not been heard.
This bill seeks to make tow operators whole when towing vehicles from a scene to an investigating agency’s storage facility by mandating that the agency collects the towing and storage cost from the owner of the vehicle before the agency releases the vehicle and if they fail to do so the agency must pay that amount to the tow operator within 5 days.
GENERAL INSURANCE
1. Department of Financial Services HB 487/SB 1158
By Rep. Salzman and Sen. DiCeglie
PASSED
This is an omnibus department package and includes the following:
· Workers compensation – changes jurisdiction of the three-member panel and reimbursement schedule; Senate bill contains language to codify DFS Drug Repackaging rules but the House bill currently does not;
· Guaranty funds: Makes changes to the board composition of FSIGA, FIGA, FLAHIGA and Medical Malpractice JUA. Contains conflict of interest voting rules. Allows CFO to remove a director for malfeasance. The provision requiring term limits for board members was stricken from the bill for all of the guaranty fund sections of the bill. The FIGA section requires that three members of the board appointments be from domestic carriers, with a range of five to nine board appointments.
· Changes fingerprint requirements for agent licensing exam centers;
· Exempts title, life insurance and annuity contracts from agency closure notification provisions.
· Agent examination is not required for Professional in Claims (PIC) from 2021 Training, LLC;
· Specifies elective continuing education courses for public adjusters may be any course related to commercial and residential property coverages, claim adjusting practices, and any other adjuster elective courses;
· Strikes prohibitions on agents holding limited lines licenses for credit insurance for sales of motor vehicle physical damage and physical breakdown insurance, and combinations of other lines as well;
· Contains various public adjuster licensing updates;
· Revokes health insurance Navigator licenses where they fail to maintain a valid federal navigator registration;
· For property, casualty, except mortgage guaranty, surety, or marine insurance, other than motor vehicle insurance subject to s. 627.728 or s. 627.7281, reduces the period from 90 days to 60 days when such cancellation or termination occurs during the first 60 days during which the insurance is in force and the insurance is canceled or terminated for reasons other than nonpayment of premium, then at least 20 days' written notice of cancellation or termination must be given accompanied by the reason why;
· Corrects a glitch for HB701 (2021 session) for Behavioral Health notification and disclosure requirements; (this language is now the same in both bills.)
· Prohibits a liability insurer is prohibited from denying coverage for property and bodily injury liability claims made against an insured for up to the property and bodily injury liability limits set in s. 324.021(9) solely based on the insured's failure to cooperate with the insurer's investigation -- unless the insurer can clearly demonstrate by a preponderance of the evidence that the insured's lack of cooperation has resulted in actual prejudice to the insurer;
· Alternative Dispute Resolution: Would require an insurer is to make a claim determination or elect to repair pursuant to s. 627.70131 before participating in mediation.
· Mediation of Claims: Increases the jurisdictional amount from $10,000 per claim to $50,000 per claim for personal injury or property damage claims related to a motor vehicle; insurers must bear all costs of the mediation, which must be reasonable; allows DFS to adopt rules for the program;
· FIGA: allows sharing of the insolvent insurers records with the prospective solvent assuming insurer for purposes of due diligence and allows transfer of the insolvent insurers book of business and policies; allows adjustment of cancellation date of policies by the receiver;
· Establishes a Direct Support Organization for the State Fire Marshal;
· Service Warranties: allows DFS to issue salesperson license for motor vehicle service agreement companies and insurers to nonresident applicant where there is reciprocity with the applicant’s home state; licensees charged with a felony may be immediately suspended; licenses must report actions against their license within 30 days of final administrative action;
· Bail bonds: revises agency licensing requirements.
2. SEE description of SB 7052/HB7065 Insurer Accountability
See summary in Property section of this report. This is the Senate’s response to manufactured criticism that big insurance companies are being bailed out and after couple of high-profile news articles on insurance companies low balling claims following Hurricane Ian. The bill applies to all lines, although its heavily focused on property insurance.
3. Firearm Liability Insurance SB 1024
By Sen. Stewart
DIED
It’s very unlikely that this bill will ever be heard in a committee. It received three committees of reference in the Senate and does not have a House sponsor.
The bill defines the terms “purchaser” and “qualified liability insurance policy.” A qualified liability insurance policy must provide such coverage in the amounts of at least $25,000 in medical benefits for injuries incurred as a result of the discharge of the firearm and $10,000 in liability coverage for property damage resulting from the discharge of the firearm. Set guidelines for selling and transferring firearms and requires the Department of Law Enforcement to adopt a form by rule.
There is no House companion measure.
TORT REFORM
1. Asbestos and Silica Claims HB 755/SB 1260
By Rep. Fabricio and Sen. Trumbull
DIED
This bill sought to codify current Florida case law on Bare Metal Defense and secondly seeks to crack down on over-naming of defendants by requiring the plaintiff’s attorney within 30 days after filing an asbestos or silica claim to provide a simple nexus of why the defendant was named. If the plaintiff’s attorney does not provide the documentation, the claim upon motion to the court shall be dismissed without prejudice.
2. Civil Remedies HB 837/SB 236
By Rep. Fabricio and Gregory and Sen. Hutson
Signed by the Governor (Chapter No. 2023-15)
This was the main tort bill for the 2023 legislative session. It was signed by the Governor on March 24, 2023.
The bill makes the following changes to Florida’s civil justice system:
· Changes Florida’s comparative negligence system from a “pure” comparative negligence system to a “modified” comparative negligence system, so that a plaintiff who is more at fault for his or her own injuries than the defendant may not recover damages from the defendant.
· Provides uniform standards to assist juries in calculating the accurate value of medical damages in personal injury or wrongful death actions.
· Modifies Florida’s “bad faith” framework to:
- Allow an insurer to avoid third-party bad faith liability if the insurer tenders the lesser of the policy limits or the amount demanded by the claimant before a complaint is filed, or within 120 days after service of the complaint.
- Clarify that negligence alone is not enough to demonstrate bad faith.
- Require a claimant to act in good faith with respect to furnishing information, making demands, setting deadlines, and attempting to settle the insurance claim.
- Allow an insurer, when there are multiple claimants in a single action, to limit the insurer’s bad faith liability by paying the total amount of the policy limits at the outset.
· Provides that a contingency fee multiplier for an attorney fee award is appropriate only in a rare and exceptional circumstance, adopting the federal standard.
· Repeals Florida’s one-way attorney fee provisions for insurance cases.
· Requires the trier of fact in certain negligent security actions to consider the fault of all persons who contributed to the injury.
· Reduces the statute of limitations for general negligence cases from 4 years to 2 years.
3. Advertising for Legal Services HB 1205/SB 1246
By Rep. Andrade and Sen. Yarborough
PASSED
This is another tort priority being pushed by the Florida Justice Reform Institute. The Senate version passed the floor on April 28th, where HB1205 was then substituted and will be sent to the Governor.
Requires advertisements for legal services relating to injuries from medications or medical devices to include specified statements and information:
· This is a paid advertisement for legal services.
· Consult your physician before making decisions regarding prescribed medication or medical treatment.
Prohibits protected health information from being sold, transferred, disclosed, used, or obtained for certain purposes without certain written authorization.
Provides that certain violations are deceptive and unfair trade practices and violators are subject to the penalties and enforcement under Ch. 501.
4. Causes of Action Based on Improvements to Real Property (Construction Defect)
HB 85 by Rep. Snyder and SB 360 Sen. Hutson
Signed by the Governor (Chapter No. 2023-22)
HB 85/SB 360 amends s. 95.11, F.S., to modify the time periods within which a construction defect cause of action must be brought.
Specifically, the bill:
· Changes the point from which the four-year statute of limitations begins to run for patent defects to the date of the earliest of the:
- Issuance of a temporary certificate of occupancy;
- Issuance of a certificate of occupancy;
- Issuance of a certificate of completion; or
- Construction’s abandonment, if not completed.
· Decreases the statute of repose from ten years to seven years, running from the date of the earliest of the:
- Issuance of a temporary certificate of occupancy;
- Issuance of a certificate of occupancy;
- Issuance of a certificate of completion; or
- Construction’s abandonment, if not completed.
The bill also:
· Specifies that each dwelling unit within a “multi-dwelling building” must be considered its own improvement for purposes of determining the limitations period, consistent with the reasoning of the Fifth DCA in the Sabal Chase case, described above.
· Provides that these amendments apply to any construction defect cause of action commenced on or after the bill’s effective date, regardless of when the cause of action accrued, except that any such action that would not have been time-barred before these amendments must be commenced on or before July 1, 2024.
Finally, the bill amends s. 553.84, F.S., to limit the cause of action for a Building Code violation to a cause of action for a “material” Building Code violation, defined by the bill as a Building Code violation “that exists within a completed building, structure, or facility which may reasonably result, or has resulted, in physical harm to a person or significant damage to the performance of a building or its systems.” This limitation would apply even where the person responsible for a “non-material” Building Code violation knew or should have known that the violation existed and failed to repair it.
PRIVACY
1. Technology Transparency HB 1547/SB 262
By Rep. McFarland and Sen Bradley
PASSED
The bill was on life support during the last week of session but made it across the finish line on the last day. The Governor’s Office twisted some arms to finally bring the bill in for a landing. However, some late floor amendments are problematic for most industries because of the vagueness of the terms.
The bill contains exemptions for HIPAA and GLBA.
The bill creates a unified scheme to allow Florida’s consumers to control the digital flow of their personal data. Specifically, it gives consumers the right to:
· Confirm and access their personal data;
· Delete, correct, or obtain a copy of that personal data;
· Opt out of the processing of personal data for the purposes of targeted advertising, the sale of personal data, or profiling in furtherance of a decision that produces a legal or similarly significant effect concerning a consumer;
· Opt out of the collection of sensitive data; and
· Opt out of the collection of personal data collected through the operation of a voice recognition feature.
The data privacy provisions of the bill generally apply to businesses that collect Florida consumers’ personal data, make in excess of $1 billion in global gross annual revenues, and meet one of the following thresholds:
· Derives 50 percent or more if its global gross annual revenues from the sale of advertisements, including from providing targeted advertising or the sale of ads online;
· Operates a consumer smart speaker and voice command component service with an integrated virtual assistant connected to a cloud computing service that uses hands-free verbal activation; or
· Operates an app store or digital distribution platform that offers at least 250,000 different software applications for consumers to download and install. The bill requires a controller who operates an online search engine to make available an up-to-date plain language description of the main parameters that are most significant in determining ranking and the relative importance of those main parameters, including the prioritization or de-prioritization of political partisanship or political ideology in search results.
The Florida Department of Legal Affairs has authority to enforce the bill. No new civil remedy provisions were included.
The bill also adds “biometric data” and “geolocation information” to the definition of “personal information” under the Florida Information Protection Act. As such, entities that possess fingerprints, DNA, and other biological or physiological identifying information must take reasonable measures to protect that data and report data breaches.
Business groups have raised concerns regarding potential advertising restrictions. While the bill contains an opt-out provision for targeted advertising, it could result in more ads targeting consumers seeking their attention while offering less value. The legislation could take targeted advertising out of the small business owner's toolbox. This bill is a priority of Governor DeSantis.
Floor Amendment 3383388 – leaves the terms “profiling” and “surveillance” undefined and has new definition of “Targeted Marketing” which is not helpful.
WORKERS’ COMPENSATION
1. Workers' Compensation Benefits for Posttraumatic Stress Disorder - HB 337/SB 352
By Rep. McFarland and Sen. Burgess
DIED
The Senate version has not progressed since its introduction on the 7th of March.
The bill allows posttraumatic stress disorder suffered by 911 public safety telecommunicators or crime scene investigators to be a compensable occupational disease. Provides requirements for benefits offered to 911 public safety telecommunicators or crime scene investigators for posttraumatic stress disorder and specifies when claim for posttraumatic stress disorder must be noticed.
OTHER (Non-insurance)
1. Government and Corporate Activism (ESG)– HB 3/SB 302
By Rep. Rommel and Sen. Grall
SIGNED BY THE GOVENOR (CHAPTER NO. 2023-28)
This bill is a Speaker/President/Governor/CFO priority. HB3 passed the House and the Senate. The Senate bill has been substituted with the House bill. HB3 has been enrolled and will be presented to the Governor shortly.
Revises current law regarding the investment criteria for the Chief Financial Officer (CFO) and his office by stating he/she can only use pecuniary factors when making investment decisions. The bill defines pecuniary factors as:
The term "pecuniary factor" means a factor that the plan administrator, named fiduciary, board, or board of trustees prudently determines is expected to have a material effect on the risk or returns of an investment based on appropriate investment horizons consistent with the investment objectives and funding policy of the retirement system or plan. The term does not include the consideration or furtherance of any social, political, or ideological interests.
Significant portions of the bill affect state and local bonds, local government investing, purchasing, and contracting and empowers the state attorney general to enforce the bill.
Adds provisions to the definition of a “Qualified Public Depository” that stat no one can be discriminated against for a plethora of issues including but not limited to ownership of a firearm, support in combatting illegal immigration or human trafficking, engagement in fossil fuel-energy, etc. And beginning July 1, 2023, banks must attest to the CFO that they are in compliance with this new law.
2. State Board of Administration(“ESG”) – HB 1139/SB 110
By Sen. Hooper
PASSED
The Senate bill passed the floor on April 26 by a vote of 40-0 and passed the House by a vote of 119-0.
This bill seeks to codify in statute actions taken by the State Board of Administration (SBA) during an August 23, 2022, Cabinet meeting that reiterated the fiduciary responsibility of the SBA and it may not sacrifice investment return or take on additional investment risk to promote any non-pecuniary factors.
Both bills were amended in their respective first committees to eliminate the ESG language. It is now merely an SBA housekeeping bill. The ESG issue is tackled in another bill, HB3.
3. Telephone Solicitation – HB 761/SB 1308
Rep. Fabricio and Sen. Yarborough
PASSED
This bill was hijacked by the trial bar at the beginning of session but with the efforts of multiple industries and some aggressive floor tactics we were able to bring a decent bill in for a landing.
The bill:
· Clarify notice requirements prior to obtaining consent for telephone calls, text messages, or the transmission of prerecorded voicemails.
· Specify that the signature needed to establish prior written consent for telephonic sales calls includes an electronic or digital signature if the form of signature is recognized as a valid signature under federal law or state contract law, or an act that demonstrates express consent, including, but not limited to, checking a box indicating consent or responding affirmatively to receiving text messages, to an advertising campaign, or to an e-mail solicitation.
· Provide that a person may not make or knowingly allow to be made an unsolicited telephonic sales call if such call involves an automated system for the selection and dialing of telephone numbers or the playing of a recorded message when a connection is completed to a number called without the prior express written consent of the called party.
The bill provides that prior to commencement of any action for damages for text message solicitations, the called party must reply “STOP” to the number from which the called party received the text, and within 15 days after that request, the solicitor must cease sending text messages. An action for damages may be brought only if the solicitor continues to text 15 days after the request to stop.
The bill specifies that amendments made by this bill to s. 501.059, F.S., apply to any suit filed on or after the effective date of the bill, and to any putative class action not certified on or before the effective date.
The bill takes effect upon becoming law.
4. Flooding and Sea Level Rise Vulnerability Studies – HB 111/SB 1170
By Rep. Hunschofsky and Sen. Calatayud
PASSED
HB 111 passed through the House by a vote of 117-0 and passed the Senate by a vote of 37-0.
The bill seeks to expand the studies for public financing of construction projects from the coastal building zone to “areas at risk due to sea level rise.” This newly defined area will apply to structures within the 50 year National Oceanic and Atmospheric Administration (NOAA) intermediate-high sea level rise projections. A defined threshold established by the Florida Department of Environmental Protection by rule, in coordination with the Florida Department of Transportation and water management districts, for a potentially at-risk structure or infrastructure where replacement cost is not an appropriate metric, such as roadways. The threshold must be established by July 1, 2024.
5. Medical Treatment of Animals via Telehealth HB 1117/SB 1600
By Rep. Buchanan and Sen. Ingoglia
DIED
The House version passed the chamber 109-0. It was then sent to the Senate where it was referred to the Rules Committee. The Senate version has not progressed since its introduction.
We expect the bill to receive a hearing in at least one committee but not pass, as the ability to prescribe a controlled substance will probably weigh the bill down.
The bill allows for veterinarian telemedicine and creates a gives a veterinarian practicing telemedicine to order, prescribe, or make available specified medicinal drugs and controlled substances. The bill also makes minor changes in scope of work when performing rabies vaccinations.
6. My Safe Florida Home Program HB 881/SB 748
By Rep. LaMarca and Sen. Boyd
PASSED
This is a glitch cleanup bill from a for Senate Bill 2D passed May of 2022. Both bills passed their respective chambers on April 28th and HB881 has been ordered enrolled.
Expands the coverage of the My Safe Florida Home Program to include townhouses. Cleans up previous language of who can perform the hurricane mitigation inspection, clarifies the inspection can only be for homesteaded properties, removed upgrading roof covering from code to code plus for eligibility for grants and increase the grant amount for low-income homeowners from $5,000 to $10,000.
7. Consumer Protection HB 1185/SB 1398
By Rep. Giallombardo and Sen. DiCeglie
PASSED
This is the CFO’s second agency bill. The House put on a
This is the Department of Financial Services Consumer Protection Package. This bill would adopt the NAIC Best Interest Standard for Annuity sales, including incorporating the 3 disclosure forms from the model regulation. These forms would supersede Florida’s previous version of the disclosure form. In addition, we are working with FAIA to remove a provision from this bill which reduces from 30 down to 5 days the time frame for notifying the DFS of an address, phone, or email address change for an agent or agency. That’s not enough time.
The bill also contains service warranty language as well as new restrictions on public adjusters signing up policyholders after natural disasters.
