The third week of the Legislative Session ends today, and bills are moving through the Florida House and Senate. Gunster’s Government Affairs team is working hard, closely tracking legislation and meeting with legislators to monitor and lobby on behalf of our clients.
Below is a weekly update from Gunster’s Government Affairs Consultants with a summary of the week’s top issues and how they may impact your business and a close look at this week’s happenings around the capital city.
ISSUES TO WATCH IN 2024 SESSION
BUDGET
The Florida House and Senate have released their proposed budgets for the 2024-2025 fiscal year. The Senate's proposal totals $115.9 billion, while the House's proposal is just under $115.55 billion. These figures are lower than the current year's spending plan, which totaled $119.1 billion. The decrease in budget is due to the end of federal funds received during the COVID-19 pandemic. Senate President Kathleen Passidomo stated that they are making fiscally responsible adjustments to ensure a sustainable budget for the long term. House Speaker Paul Renner also mentioned that the state is moving beyond the influx of federal funds and expects a tight budget. It is important to note that these proposed budgets are subject to changes before being passed by the House and Senate. The final spending plan for the 2024-2025 fiscal year will be negotiated between the two chambers, with the legislative session scheduled to end on March 8. Both proposals are larger than the $114.4 billion plan released by Governor Ron DeSantis in December.
HEALTH CARE
SB 644/HB 309 - RURAL HOSPITALS
A proposal that would establish "rural emergency hospitals" in Florida, aiming to address the healthcare needs of rural areas. The bill sponsor, Corey Simon, who represents a rural district in North Florida, emphasized the lack of healthcare access in his area. A federal law passed in December 2020 allows the creation of these hospitals and makes them eligible for Medicare payments. Rural emergency hospitals can provide emergency, observation, and outpatient services with a maximum stay of 24 hours, but they cannot offer inpatient services. The closure of rural hospitals in Florida and across the country has highlighted the need for alternative healthcare models. The bill has received support from Senate Majority Leader Ben Albritton, who emphasized its significance for rural Floridians.
The Senate bill was passed unanimously on Tuesday Senate in Health Policy. A House version of the bill has also been filed by Rep. Jason Shoaf and is still waiting to be heard in its first committee stop.
SB 248 - MEDICAL NEGLIGENCE
A proposal to make significant changes to the state's medical-malpractice laws, including placing limits on pain-and-suffering damages in lawsuits against doctors and hospitals. The proposal has reignited a long-standing debate between doctors, hospitals, insurers, and business groups who support the caps, and plaintiffs' attorneys and individuals who argue that they would undermine justice for victims of medical negligence. The Senate Judiciary Committee voted in favor of the bill, adding the proposed caps as amendments. Supporters of the caps claim they are necessary to stabilize medical-malpractice insurance rates and attract doctors to the state, while opponents argue they would harm victims of medical malpractice. The proposed caps would restrict non-economic damages to a maximum of $500,000 from doctors and practitioners and $750,000 from hospitals or nonpractitioners. The issue of malpractice caps has been contentious in the past, with previous caps being deemed unconstitutional by the Florida Supreme Court. The current proposal aims to address the court's concerns and has gained support due to the change in the court's composition. The bill also includes provisions allowing adult children and parents to seek damages in wrongful death cases, which has garnered support from doctors and insurers who had opposed similar proposals in the past. The House bill does not include the proposed caps and has not yet been heard in committees.
TECHNOLOGY
HB 1 – SOCIAL MEDIA USE FOR MINORS
A bill that would prevent children under 16 from having social media accounts. The bill, backed by House Speaker Paul Renner, aims to protect children's mental health and prevent communication between sexual predators and minors. If passed by both chambers, the bill would prohibit minors under 16 from creating social media accounts and require platforms to terminate existing accounts held by children under 16. Parents would also have the ability to request the termination of their child's account. The bill has faced criticism from companies like Meta (parent company of Facebook and Instagram) and industry groups, who argue that it violates First Amendment rights and would require the collection of more personal data. Renner and Passidomo have defended the bill, dismissing concerns about its constitutionality.
The bill passed the full House on Wednesday and is waiting to be heard by Senate Fiscal Policy. A similar bill has been filed in the Senate, and committees in both chambers could begin reviewing the bills soon.
EDUCATION
HB 1403 - SCHOOL CHOICE
A bill aimed to expand the school-vouchers program for students with disabilities and enhance a state book-delivery program are set to be presented to the full Florida House. During a special legislative session, lawmakers temporarily lifted the cap on participation in the Family Empowerment Scholarship for Unique Abilities, the vouchers program, due to high demand. The bill would increase the growth rate of the program to 5 percent of the state's exceptional student education population, up from the previously approved 3 percent. The bill also includes changes to the usage of vouchers, limiting purchases to instructional materials in specific subjects.
The House Education & Employment Committee unanimously approved the bill on Tuesday and was placed on Special Order for February 1st.
HB 1361 - EDUCATION
A bill that expands eligibility for the New Worlds Reading Initiative, allowing students in Florida's voluntary pre-kindergarten program to participate if they exhibit deficiencies in early literacy skills. Currently, the program is available to students in kindergarten through fifth grade.
The House Education & Employment Committee unanimously approved the bill on Tuesday and was placed on Special Order for February 1st.
JUDICIAL
SB 702/HB 1167 - ATTORNEY FEES AND COSTS
A bill aimed at reducing lawsuits in property-rights disputes is moving. The bill, filed by Senator Jonathan Martin, would allow landowners to be awarded attorney fees in specific lawsuits related to projects on their property. Landowners would be eligible for attorney fees if they win the lawsuits and if the projects have already received government approvals. The intention of the bill is to address lawsuits concerning projects like seawalls and pools that have already been granted permits.
The Senate bill was passed unanimously in its last committee stop and is ready to be presented to the full Senate. The House companion was approved by its first committee stop on Thursday and has two more stops before it goes to the full House.
ENVIRONMENT & AGRICULTURAL
HB 1071/SB 1084 - DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES
Bills that would prohibit the production and sale of "cultivated" meat in the state. Cultivated meat, also known as lab-grown meat, is produced by growing a small number of animal cells in controlled settings. The proposed ban is supported by Florida agriculture groups, citing concerns about food safety. However, industry officials argue that the process has been thoroughly regulated by the FDA and USDA. Some lawmakers believe that cultivated meat could be a potential economic opportunity for Florida, despite personal reservations about consuming it.
The House Regulatory Reform & Economic Development Subcommittee voted in favor of the bill on Wednesday. Its Senate companion was approved last week at its first committee stop.
SB 1546 - STATEWIDE DRINKING WATER STANDARDS
Legislation aimed at regulating the levels of the toxic chemical 1,4-dioxane in drinking water. The bill, filed by Senator Linda Stewart, would require the Florida Department of Environmental Protection to establish rules for a statewide maximum contaminant level for 1,4-dioxane. It would also mandate regular testing for the chemical in public water systems and require utilities to make the test findings of tap water publicly available. The proposed allowable limit for 1,4-dioxane in drinking water is 0.35 parts per billion, which aligns with state and federal guidelines. The need for this legislation arises from the detection of 1,4-dioxane in Lake Mary, Sanford, and Seminole County, and its link to adverse health conditions, including cancer.
The bill was unanimously approved by the Senate Environment and Natural Resources Committee. The Senate proposal will go through two more committee stops, while a similar House companion bill has yet to be introduced in committee.
HB 1557 - DEPARTMENT OF ENVIRONMENTAL PROTECTION
The bill creates a new aquatic preserve designation for the Kristin Jacob’s Coral Reef Ecosystem Conservation Area (Coral ECA) and the inclusion of seagrass protections for the Nature Coast Aquatic Preserve which was created by the legislature in 2020. The measure ensures that reclaimed water is treated to reduce the nutrients entering Florida’s waterways by requiring domestic wastewater that is land applied to meet advanced waste treatment standards, ensuring feasibility studies for reclaimed water are conducted for all facilities and requires the implementation of reuse where feasible, and incentivizing the use of reclaimed water through consumptive use permit extensions, clarifies elements eligible for the Resilient Florida Grant Program, roles of the Chief Resilience Officer and the Florida Flood Hub, and requirements for completion of local vulnerability assessments. Additionally, it outlines the next steps in the transfer of the onsite sewage and treatment disposal system (OSTDS) program from Department of Health to the Department of Environmental Protection (DEP) and provides a path for DEP to expeditiously review new enhanced nutrient-reducing technologies by establishing an enhanced nutrient reducing OSTDS approval program. Lastly, the measure clarifies that wastewater facilities operated by a special district or private entities must provide wastewater facility information to local governments as part of domestic wastewater services. The bill’s Senate companion passed its first committee stop last week.
HB 1557 passed unanimously through the House Water Quality, Supply & Treatment Subcommittee.
LOCAL GOVERNMENT
HB 57 – COUNTY COMMISSIONER TERM LIMITS
A bill that would implement term limits for county commissioners in Florida is advancing in the legislative process. It aims to limit county commissioners to a maximum of 12 years in office. The bill, carried by Rep. Michelle Salzman, has already passed through another subcommittee. However, Rep. Sam Killebrew was the only Republican to vote against it. A similar bill with an eight-year term limit is being carried in the Senate by Sen. Blaise Ingoglia. Currently, a majority of Floridians live in counties that have voted for term limits, according to Salzman. Supporters argue that term limits prevent the development of political classes focused on re-election rather than effective governance. However, opponents, including Rep. LaVon Bracy Davis, argue that the decision on term limits should be made by cities and counties themselves.
The bill passed through the Ethics, Elections & Open Government Subcommittee with a vote of 9-6. The bill will now move to the State Affairs Committee for further review.
HB 1195/SB 1322 - MILLAGE RATES
A proposal in the Florida Legislature would raise the threshold for approving property-tax hikes for city and county boards. The bill would require two-thirds votes from governing boards to approve increases in millage rates. Supporters argue that the bill strikes a balance between allowing local governments to provide core services while ensuring there is a valid reason for raising property taxes. Critics, including some lawmakers, express concerns about taking power away from elected officials and the potential negative impact on local governments. Currently, most local boards only need a simple majority vote to approve property-tax increases. Further, the bill exempts situations where tax rates remain the same, but property owners pay more due to increased property values.
The Senate and House versions both passed out of their first committee stops on Monday.
BANKING & FINANCE
HB 1347/SB 1436 - CONSUMER FINANCE LOANS
Florida lawmakers are advancing proposals that could result in higher interest rates on consumer-finance loans, after Governor Ron DeSantis vetoed a similar bill last year. The proposals would allow lenders to charge annual interest rates of up to 36 percent on the first $10,000 of principal amounts, 30 percent on amounts between $10,000 and $20,000, and 24 percent on amounts between $20,000 and $25,000. Currently, lenders can charge 30 percent annual interest on the first $3,000 of principal amounts, 24 percent on amounts between $3,000 and $4,000, and 18 percent on amounts between $4,000 and $25,000. Supporters argue that these changes would provide more borrowing options for consumers who may not qualify for bank or credit union loans and would increase regulation on consumer finance-loan companies. Last year's bill proposed a maximum annual rate of 36 percent for all loans but was vetoed by Governor DeSantis, who expressed concerns about increased indebtedness and inflationary pressures caused by the federal government.
The House Insurance & Banking Subcommittee approved the House version of the bill on Thursday, while the Senate Banking and Insurance Committee backed the Senate version on Monday.
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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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