The Florida Legislature officially begins the sixty day 2021 Regular Session on Tuesday, March 2nd. While each Session is unique, this year will be unlike any other Session with the COVID-19 pandemic still impacting the entire world. Public access to the Capitol will remain extremely limited and the COVID protocols the House and Senate instituted for the Interim Committee Weeks, including testing of all Legislators and staff prior to weekly meetings, mask wearing requirements, and physical distancing continue. The Legislature is only constitutionally required to pass a state budget and that task may prove to be even more challenging than most years as the economic impacts from COVID continue to impact tax revenues. Senate President Wilton Simpson (R-Trilby) and Speaker of the House Chris Sprowls (R-Palm Harbor) warned members there will be budget cuts. Governor DeSantis (R) proposed a $96.6 billion budget for the upcoming year, which is $4 billion over the budget the Legislature passed last year.
Affordable Housing – Last year, the State Housing Initiatives Partnership (SHIP) Program, which receives funding for local governments to create and subsidize low and moderate-income housing appeared as if it would be fully funded. But, the seriousness of the financial crisis that would result from the COVID pandemic began to become clear, and Governor DeSantis vetoed the entire $225 million allocated for SHIP projects. Despite vetoing SHIP funds, the Governor kept $115 million for the State Apartment Incentive Loan program (SAIL), which provides low-interest loans on a competitive basis to affordable housing developers. The Governor supports funding the housing trust fund, but ultimately Legislators will decide whether that money is swept for other purposes or kept intact.
Gaming and Sports Betting – Several bills have been filed that would legalize sports betting in Florida with a licensing fee of $100,000 and a 15% tax rate. Similar bills last session didn’t go anywhere and it will be an uphill battle this Session as well. Sports betting is considered a class III game and the agreement between the State and the Seminole Tribe grants the Tribe exclusivity over covered games. Also, to be considered is the 2018 constitutional ballot measure which passed by over 70% of voters. This prevents class III gaming at non-tribal facilities in all but two counties in Florida. If sports betting is passed without the inclusion of the Seminole Tribe, you can “bet” that the measure will be litigated for months or years. Another consideration for this session is the prospect of a new compact between the State and the Seminole Tribe. When the compact expired in 2019, the Tribe stopped making payments to the state. Attempts to legislate sports wagering without the Tribe’s involvement could encourage the Tribe to come back to the bargaining table. Resumed payments to the State would certainly be helpful in this difficult budget year.
Taxes – Currently retailers that have a physical presence in Florida must collect and remit sales taxes for items sold in the state currently. The business community is pushing for this bill that requires retailers that do not have a physical presence, but sell products to Floridians to collect sales taxes on purchases made by Floridians.
Business Liability Bill — Republicans leaders will push legislation creating COVID-19 liability protections for most businesses. Under the House bill, liability protections would apply to organizations who make a “good faith effort” to follow government health guidelines. Expect to see the House bill voted out of the House and sent to the Senate the first week of Session. Legislators will also consider a bill granting liability protection to health care providers.
Data Privacy — Governor DeSantis and House Republicans filed legislation ensuring Floridians certain rights to data privacy. The bill, which is focused on larger businesses, creates the right to find out what information companies have, have the companies delete the data, ask companies not to sell the data, and sue businesses that violate those protections. Further the bill gives the Attorney General the power to enforce.
Insurance – There are many property insurance bills filed this session hoping to reduce consumer abuses and prevent the cost drivers contributing to Florida’s rising homeowners insurance premiums. Some of the proposed changes include an attempt to reduce attorney fees and to thwart neighborhood roofing canvassers trying to use insurance policies to cover normal wear-and-tear. The Florida Trial Bar will most likely oppose many of these changes. Property insurers will attempt to fend off more sweeping reforms to stop the double digit premium increases, especially with Floridians suffering COVID’s economic devastation. As for motor vehicle insurance, the Legislature will again address personal injury protection, as wells as motor vehicle insurance coverage exclusions and abusive windshield claim filing. Another important topic that will get much discussion this Session is telehealth practice standards.
Environment – The Governor and the Legislature will continue to prioritize Florida’s environment during the 2021 Session. Governor DeSantis proposed funding the Resilient Florida program, which would provide $1 billion over four years, to support grants to state and local governments to adapt with the impacts of sea level rise and localized flooding. The Legislature is also considering bills that establishes the Statewide Office of Resiliency within the Executive Office of the Governor and authorizes the Governor to appoint a Chief Resilience Officer.
Water policy will continue to be a major focus during the 2021 Session. House and Senate members have filed legislation that would expand on last Session’s environmental legislation related to reclaimed water and reuse. The House and Senate have also filed legislation that would incorporate certain recommendations presented by the Governor’s Blue-Green Algae Task Force, some of which include septic tank inspections, stormwater system monitoring, and modifications to basin management action plans.
The protection of the Florida Everglades continues to be a top priority for legislative leaders. The Governor has requested over $625 million of Everglades restoration funding, with $50 million dedicated for the Lake Okeechobee Watershed Restoration Project and $80 million for the Northern Everglades and Estuaries Protection Program. Legislation complementing the Governor’s budget recommendation was recently filed, which directs the South Florida Water Management District, in partnership with the US Army Corp of Engineers, to expedite water storage projects north of Lake Okeechobee.
Pharmacy – The state of Florida and private insurers use pharmacy benefit managers (PBMs) who are supposed to control the cost of prescription drugs for both the state and insurance companies. Reports have shown, however, these companies are unnecessary middlemen driving up the cost for the state and consumers. Bills have been filed to address this issue and bring into the sunshine the profits the PBMs are making on markups and restrict these practices.
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This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication.
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