A regulatory framework is advancing in the House that would prohibit hemp sales in convenience stores and levy a 15% tax elsewhere.

The House Budget Committee reported two bills favorably, one (HB 7027) regulating where consumable hemp goods can be sold and how much THC they can contain, and another (HB 7029) that imposes a tax on goods similar to cigarettes and alcohol.

The committee unanimously approved an excise tax on THC-infused goods, and Rep. Michelle Salzman, a Pensacola Republican, said more changes are in the works before the package reaches its next committee stop.

That includes a further exploration of how Florida regulates the level of THC, the same intoxicant as marijuana, that can be contained in edible products and beverages sold in retail stores.

“We do need to address the weight-to-THC limit,” Salzman said. “It makes sense when you look at the 3% level, but whenever you say it, and in real conversation, it doesn’t make sense. Here, you can have five milligrams and a half of a drink, but you can only have 2.5 mg and a gummy, but they’re both a serving.”

The excise tax approved in committee was much lower than originally appeared in legislation. A committee bill released this month by the House Housing, Agriculture and Tourism Subcommittee would have imposed a 60% tax on edible goods and a $2.25-per-gallon tax on drinks. But coming out of the Budget Committee, the bill now looks at a 15% tax across the board.

Patrick Shatzer, lobbying for Sunmed, said that change will be far more tolerable for retailers and the hemp industry.

“But it’s still above what medical marijuana is charged at the excise rate of 10.75%, so any lower considerations would be appreciated,” he said.

In committee, many lawmakers remained focused on potential policy changes to the bill that could be proposed before it reaches the House Commerce Committee, the last panel that will comb through the bill before it reaches the House floor.

Rep. Toby Overdorf, a Palm City Republican, said he remains concerned that many products still contain synthetic components, which pose their own health concerns while not directly involving hemp.

“We keep talking about that hemp is going to be a great product for farmers, it’s a great opportunity for farmers,” Overdorf said. “Yet we’re looking at foreign countries being able to import chemicals that are the baseline of synthetics for the hemp products, and I don’t know how that helps Florida farmers when we’re importing all that material.”

Rep. Traci Koster, a Tampa Republican, said she remains concerned the legislation bans products from many retail locations where they can be purchased now.

“I do think I’d like to see more conversation about our convenience stores being added back in,” she said. “I think that they, too, are allowed to sell alcohol at different levels. So perhaps there’d be a different level.”

Rep. Christine Hunschofsky, a Parkland Democrat, agreed. But she also praised Salzman for spearheading a collaborative effort to bring stakeholders together before the bill landed in front of the committee.

“In previous Sessions, the room has been full, and we’ve had so much constituent input because it was never in the right place,” Hunschofsky said. “And the way you’ve worked through this process and getting it to where it is has been absolutely remarkable.”

Last year, the Legislature passed a regulatory framework, but it drew intense opposition from retailers. Ultimately, Gov. Ron DeSantis vetoed that bill, writing in a transmittal letter that the legislation as passed would “impose debilitating regulatory burdens” and “dramatic disruption and harm” on businesses in the sector.

The Senate already passed hemp legislation as a single bill (SB 438), and there remain differences in the policy that may need to be worked out in conference, Salzman said.

Post Views: 0

A new property insurance company is coming to the Florida marketplace, a move that signals continued competition and possible wins for property owners who are struggling with affordability challenges.

Patriot Select Property and Casualty Insurance Company has received formal approval from the Office of Insurance Regulation (OIR) to begin operations.

The company is backed by seasoned industry leadership, institutional capital and a forward-looking business model, according to its leadership, and is entering the market with a mission to deliver dependable, long-term insurance solutions for Florida homeowners.

Fourth-generation Floridian John Rollins, an executive with more than 30 years of experience in Florida’s insurance marketplace, is leading the company. A licensed actuary, Rollins previously served as Chief Risk Officer and Board member at Citizens Property Insurance Corporation, as well as Chief Financial, Underwriting, and Risk Officer at several Florida-based insurers.

“Thanks to its forward-looking Legislature and regulatory bodies, Florida’s property insurance market is stabilizing, yet there is still a clear need for additional capacity and competition,” Rollins said. “Patriot Select is focused on meeting this need by providing homeowners with reliable insurance options, grounded in sound financial management and a commitment to customer service.”

Rollins will be joined by several experienced Florida property insurance professionals, including Marcia Lamb, a CPA, as Chief Financial Officer, and Kelly Booten as Chief Operating Officer.

The St. Petersburg-based company will partner with independent agents across Florida to ensure consumers are accessing professionals with a unique understanding of their communities’ insurance needs.

The company said in its launch announcement that it is backed by strong financials and has robust catastrophe reinsurance. It has designed what company leadership describes as a disciplined risk management approach and plans to provide customers with a responsive claims handling practice designed to ensure dependable support, even in the wake of severe storms.

“We aim to support Florida’s continued growth and resilience by providing sustainable insurance solutions,” Rollins added. “Patriot Select will maintain a high standard of service and trust for homeowners across the state.”

As part of its formation, Insurance Advisory Partners LLC served as exclusive financial advisor to Patriot Select and exclusive placement agent for the notes, helping guide the overall transaction strategy.

Acrisure Re, the reinsurance division of global fintech leader Acrisure, also played a key role in the transaction, aligning strategic capital with deep industry expertise. The firm’s specialized catastrophe and capital advisory teams provided technical and consulting support throughout the process.

Post Views: 0

I am an attorney who represents and defends property insurance carriers, but first, I am a consumer and Floridian.

Reversing historic changes that are lowering insurance premiums for hard-working families will be a disaster for policyholders and our state.

For years, insurance premiums only went one direction — up and up again and again due to meritless litigation.

The domino effect threatened our state’s economy and the ability of people to live here.

Lawmakers made bold and historic reforms in recent years, capped by House Bill 837 in 2023 which eliminated “one-way fees” that allowed attorneys to file hundreds of thousands of unnecessary lawsuits with the knowledge that they would lose nothing and stand to gain guaranteed legal fees.  It is what I refer to as “spaghetti litigation.”

Let’s throw it against the wall and see what sticks, without regard to the claim’s merits, just to recover attorney fees.

The reason for the change was one of the most fundamental rules of economics: Competition among providers of any service or product means lower costs for consumers. And insurers were reluctant to cover Florida with the very real threat of bottomless litigation.

Frankly, it has been stunning to see how quickly and effectively these reforms have worked.

In just a little more than a year, nearly 100 homeowners and auto insurance companies in Florida have filed for a rate decrease or no change or increase. Since the reforms took effect, 12 new property insurance companies have entered the Florida market.

Last year, Florida had the lowest average homeowners’ premium increases — less than 1% — in the nation. What a stunning reversal. Even auto insurance costs are dropping, with the largest providers asking to reduce rates by as much as 10%.

Why? There are many reasons, but the biggest contributing factor to this change is that litigation has dropped by nearly 30 percent from past peak levels.

I have seen this firsthand. Before these reforms were enacted, 80% of my firm’s practice focused on litigation. Since then, my practice has shifted to only 20% litigation and 80% pre-suit investigation and resolution.

As an attorney representing insurance companies, my firm and I could earn quite a bit more money if lawmakers pass a bill currently on the fast track to passage in the Florida House.

My plea to those lawmakers — please, don’t do it!

Despite my practice and this shift in business, I am thrilled to see this change. Less litigation is almost always better for consumers.  The claims that need to be resolved are being resolved before they directly hit my desk with the carriers or through the pre-suit process. This is best for consumers, as it means quick settlements and money in hand for repairs.  Rather than years of needless litigation, this is what the consumer needs.

And things are only going to get better. Consider that this rapid stabilization has come during a time of peak inflation and that lingering claims and lawsuits from years ago under the prior statutory regime are skewing the real impact of these changes.

House Bill 1551 will unravel all the progress by bringing back the incentive for lawyers to file as many lawsuits as they can.

Mandating attorney fees in Florida law will not only increase premiums, but it will discourage market competition and scare reinsurers from providing necessary reinsurance. Florida insurers will have no choice but to increase their premium requests again.

Make no mistake: If this bill passes, it will destroy the Florida insurance market and devastate its citizens. Carriers will again begin to leave our state or face insolvency. Homeowners will again see spikes in their insurance premiums, which so many cannot afford.

This bill helps only attorneys. I have faith that lawmakers will recognize the incredible benefits these reforms are bringing consumers and that allowing these successful reforms to keep working is best for all Floridians.

___

Katelyn Ferry is a partner at and founding member of Cambo Ferry, PLLC, with offices in Maitland, Tampa, and Miami. Ferry has practiced exclusively insurance defense litigation since 2014 and has focused her practice on the areas of first and third-party insurance coverage and defense.

Post Views: 0