Legislative News
Meredith Woodrum Snowden
Special Consultant
Pennington, Moore, Wilkinson, Bell & Dunbar, P.A

The House and Senate met on November 16, 2004 for Organizational Session.   Representative Allan Bense ( R-Panama City) was elected House Speaker, and Senator Tom Lee (R-Brandon) was elected Senate President.   Representative Leslie Waters (R-Seminole) were chosen by Speaker Bense as Speaker Pro Tempore.   House Majority Leader is Representative Andy Gardiner (R-Orlando), and the House Democrats chose Representative Chris Smith (D-Ft. Lauderdale) as Democratic Leader.   In the Senate, Senator Charlie Clary (R-Destin) was elected President Pro Tempore, and Senator Alex Villalobos (R-Miami) was named Senate Majority Leader. The Senate Democrats selected Senator Les Miller (D-Tampa) as Minority Leader.

Speaker Bense and President Lee also named committee memberships.   Of special interest are the committees handling insurance issues.   Representative Dennis Ross (R-Lakeland) was named Chair of the House Insurance Committee with David Rivera (R-Miami) serving as Vice Chair.   The following members are serving on the Insurance Committee:   Rafael Arza (R-Hialeah), Kim Berfield (R-Clearwater),   Don Brown (R- DeFuniak Springs), Dean Cannon (R-Winter Park), Donna Clarke (R-Sarasota), Carl Domino (R-Jupiter), Greg Evers (R-Baker), Terry Fields (D-Jacksonville), Bill Galvano (R-Bradenton), Anne Gannon (D-Delray Beach), Ed Homan (R-Tampa), Ed Jennings (D-Gainesville), Dick Kravitz (R-Jacksonville), Pat Patterson (R- DeLand), Juan-Carlos Planas (R-Miami/Westchester), Franklin Sands (D-Weston), Priscilla Taylor (D-Riviera Beach), and Trey Traviesa (R-Tampa).

President Lee named Senator Rudy Garcia (R-Hialeah) as Chair of the Senate Banking and Insurance Committee with Senator Steve Geller (D-Hallandale ) serving as Vice Chair.   Other Senators named to the committee are JD Alexander (R-Lake Wales), Jeff Atwater (R-North Palm Beach), Carey Baker (R-Eustis), Skip Campbell (D-Ft. Lauderdale),   Mike Fasano (R-New Port Richey), Al Lawson (D-Tallahassee), Les Miller, and Bill Posey (R-Rockledge).

The House Speaker and Senate President called the Legislature into special session on December 13 to address hurricane issues and the universal pre kindergarten program, and the session adjourned on December 16, 2004.   Of significance to the insurance industry was the passage of HB 9-A, which created the hurricane deductible grant program to be administered by the Department of Financial Services.   The program allows insureds who were charged a hurricane deductible more than once this season to get grants of up to $10,000 for the second and subsequent deductibles. Funding for the grants came from a $150 million appropriation from the Florida Hurricane Catastrophe Fund, a loan being repaid through a $30 million a year increase in premiums into the Fund for five years beginning in 2006.   The bill also created a single season hurricane deductible, effective May 1, 2005, which requires carriers to impose the percentage hurricane deductible for the first hurricane and the other perils deductible for subsequent hurricanes.   HB 9-A was approved by the Governor on December 21, 2004.

Speaker Bense and President Lee appointed the Joint Select Committee on Hurricane Insurance. Senator Rudy Garcia and Representative Leslie Waters serve as co-chairs of the committee.   The membership of the Joint Select Committee includes:   Senator Alexander, Senator Atwater, Senator Baker, Representative Berfield, Senator Campbell, Senator Geller, Senator Mike Haridopolos (R-Melbourne), Representative Adam Hasner (R-Delray Beach),   Representative Arthenia Joyner (D-Tampa), Representative Will Kendrick (D-Carrabelle), Senator Lawson, Representative Dave Murzin (R-Pensacola), Representative Ross, and Representative Taylor.  

Speaker Bense and President Lee appointed the Joint Select Committee on Hurricane Insurance. Senator Rudy Garcia and Representative Leslie Waters serve as co-chairs of the committee.   The membership of the Joint Select Committee includes:   Senator Alexander, Senator Atwater, Senator Baker, Representative Berfield, Senator Campbell, Senator Geller, Senator Mike Haridopolos (R-Melbourne), Representative Adam Hasner (R-Delray Beach),   Representative Arthenia Joyner (D-Tampa), Representative Will Kendrick (D-Carrabelle), Senator Lawson, Representative Dave Murzin (R-Pensacola), Representative Ross, and Representative Taylor.  

The Joint Select Committee is studying the insurance market in light of the 2004 hurricane season.   Issues considered by the Joint Select Committee include: multiple deductibles and the impact on commercial residential insurers; the retention rate and funding of the Florida Hurricane Catastrophe Fund; and Citizens Property Insurance Corporation.   The Joint Select Committee has met throughout January and February and is anticipated to have its report to leadership sometime in February.   The recommendations of the Joint Select Committee will be crafted into legislation that will be taken up early in the session.

House and Senate committees have meeting regularly in recent months.   The 2005 Regular Session begins on March 8 and ends May 6.   Some of the issues will be Medicaid reform, property insurance, repeal of the substitute communication tax, and tort reform.   Fortunately, the consensus in the business community regarding changes to workers’ compensation is to leave Chapter 440 alone and let the changes implemented by previous legislatures work.   However, some bills related to workers’ compensation already have been filed.   HB 35 providing workers’ compensation to first responders has been filed by Representative Sandy Adams (R-Orlando).   As of this writing, a Senate companion has not been filed.   The bill has 4 committee references:   State Administration Appropriations; Domestic Security; Insurance; and the Fiscal Council.   It remains to be seen whether the bill will actually be heard in committee. Additionally, NCCI estimates that costs for the first responder class would increase 4.3%.  

Representative Ross filed HB 423, which revises the exemption relating to owner-operators of motor vehicles under the definition of “employer” in s. 440.02, F.S.   This bill does not have a Senate companion and has not received references from the Speaker’s Office.

SB 708 was filed by Senator Bennett (R-Bradenton).   The bill is similar to legislation filed by the Senator last year and would allow employers with 4 or fewer employees to select alternative coverage for work-related and non work-related accidents, rather than traditional workers’ compensation coverage.  

Senator Rod Smith (D-Gainesville) filed SB 980.   The bill is aimed at fighting workers’ compensation fraud by requiring the Legislature to appropriate funds each year to provide for one assistant state attorney position in the 11th, 15th, and 17th judicial circuits for the purpose of investigating and prosecuting violations of workers’ compensation anti fraud laws.   The bill also would fund one half of a position in the remaining judicial circuits.