News : POLITICO Florida Playbook: Florida’s big fix for hurricane — and election

Thursday, July 28, 2022

POLITICO Florida Playbook: Florida’s big fix for hurricane — and election — season

Jul 28, 2022

Hello and welcome to Thursday.

Strange Days — Something happened on Wednesday that got some media attention but not nearly as much as it should have. After all, it's complicated and involves insurance.

Break On Through — Essentially, the state made a decision to undertake a potentially massive bailout of Florida's insurance market — one that would have been unthinkable at one time coming from Republicans who roundly talk about the free market. It's a signal that the GOP-controlled government knows they have a problem they need to fix this election season.

Take It As It Comes — What Florida is doing is promising to use Citizens Property Insurance — the state-created insurer of last resort — as a pledged backstop to any insurer that gets downgraded by rating agencies and then goes insolvent and can't pay off its claims. This potential ratings downgrade is a big deal since it could potentially force homeowners to seek out new insurance carriers to meet requirements of their lenders. That's not easy when you have a market on the verge of complete collapse. The goal of this new plan is to designed to let homeowners maintain coverage.

Waiting For The Sun — Florida Insurance Commissioner David Altmaier conceded in a statement that "we've been forced to take extraordinary steps to protect millions of consumers."

Riders On The Storm — Yes, it is extraordinary. First off, this is happening when everyone has been worrying loudly about the extraordinary growth in Citizens to begin with. But why is that important? Because if Florida gets hit with one (or more) big storms and Citizens can't pay its claims of those of other carriers, guess who's on the hook? Yep, nearly every Floridian with an insurance policy. That's because the law allows Citizens to add a surcharge, derisively known as a hurricane tax, to the bills of its customers and eventually customers of other insurance polices, such as auto, to pay off its debts.

End Of The Night — It's this hurricane tax that has caused the insurance industry and others to push for changes in the past to make Citizens — which right now has nearly 1 million policyholders — less attractive to homeowners. State legislators for the last few years have also fretted about Citizens's financial status because even though it has multibillion-dollar reserves, there have been fears that it was getting too big.

When The Music's Over — And now there's this plan? It essentially undercuts all the posturing and positioning of legislators who have wanted to force Citizens to raise rates and have called for limits on insurance lawsuits. Instead, it bolsters the argument made by those like Rep. Charlie Crist who have long argued that Florida should use Citizens more to shape the insurance marketplace. But the bigger issue is this: What happens if another Hurricane Andrew hits? That could be quite the day of reckoning for Florida politicians.

— WHERE'S RON? — Gov. DeSantis is scheduled to be in New York City for a fundraising trip.

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... DATELINE TALLAHASSEE ...

STORM WARNINGS — " State guaranteeing insurance claims through hurricane season to counter downgrade risk ," by South Florida Sun-Sentinel Ron Hurtibise: "Florida homeowners won't lose their insurance coverage or face force-placed policies if their insurers lose their financial stability ratings — at least through hurricane season. The Florida Office of Insurance Regulation on Wednesday announced that the state, through the Florida Insurance Guaranty Association and state-run Citizens Property Insurance Corp., will offer 100% backstop coverage of any claim left unpaid by an insurer that goes bankrupt. The temporary program will be in effect through hurricane season, which ends on Nov. 30."

THE AGENDA — " DeSantis plans to fight 'woke ideology' of Paypal and other financial services ," by Tampa Bay Times' Chris Hippensteel : "Gov. Ron DeSantis plans to make money transfer services such as PayPal — as well as credit cards and banks — the next targets in his campaign against 'woke ideology,' announcing Wednesday a set of measures ahead of the next legislative session. The proposals, which DeSantis said would include a combination of legislative and executive initiatives, would ban credit card companies and money transfer services from "discriminating" against users based on political or religious ideology. Banks, credit cards and money transfer services 'should not be colluding with one another to marginalize people that they have political disagreements with,' DeSantis said, addressing an audience in the wood-paneled dining area at Harpoon Harry's Crab House in downtown Tampa."

UP CLOSE WITH — " DeSantis spokeswoman Christina Pushaw makes sure reporters feel the burn ," by Washington Post's Paul Farhi : "The derisive tone was typical of [Christina] Pushaw, 31, a state employee who earns $120,000 a year. In the 14 months since joining DeSantis's staff, she has transformed the typically button-down role of gubernatorial press secretary into something like a running public brawl — with Twitter as her blunt-force weapon. Her usual targets: Democrats, the news media and anyone else she deems insufficiently supportive of DeSantis's agenda and her own conservative politics."

DETAILS — " DeSantis touted police action against illegal migrants. Most arrests were legal residents ," by Miami Herald's Ana Ceballos: He highlighted a state-led law enforcement operation, which took place June 7-9 in four counties in Northwest Florida. When talking about outcomes, the governor's message was unmistakable: The state was doing its part to combat illegal immigration because it had arrested several "illegal aliens." "They were able to recover these illegal aliens and enough fentanyl to kill off 2,000 people in the state of Florida," DeSantis said at the press conference in Pensacola. What DeSantis did not mention is that the vast majority of the 22 arrests were not related to immigration but rather tied to men and women who live in the country legally. DeSantis also implied that undocumented migrants had been arrested on drug-related crimes, when none were, according to arrest records provided by the Florida Highway Patrol and two of the four sheriff's offices that participated in the state's effort."

NOTHING TO SEE HERE — Tallahassee mayor denies utility for sale to FPL as scandal boils , by POLITICO's Bruce Ritchie: Tallahassee Mayor John Dailey on Wednesday denied speculation on social media that the city is discussing selling its electric utility to Florida Power & Light Co. Dailey responded to POLITICO after emails involving Florida Power & Light Co. were posted on Twitter revealing FPL officials in February requested a meeting with the mayor. Dailey said he met with Matt Valle of NextEra Energy, FPL's parent company, and the utility's Matt Mohler to discuss the city's solar power generation. "No, no, no," the mayor said in an interview when asked if a utility sale was discussed. "The city of Tallahassee's No. 1 public utility in the nation that produces more solar electricity per capita except for one is not for sale."

DATELINE D.C.

'FAR-REACHING' — " Senate passes $280 billion industrial policy bill to counter China ," by The New York Times' Catie Edmondson : "The Senate on Wednesday passed an expansive $280 billion bill aimed at building up America's manufacturing and technological edge to counter China, embracing in an overwhelming bipartisan vote the most significant government intervention in industrial policy in decades. The legislation reflected a remarkable and rare consensus in a polarized Congress in favor of forging a long-term strategy to address the nation's intensifying geopolitical rivalry with Beijing."

Rubio, Scott vote no — Florida's two senators — Marco Rubio and Rick Scott — were no votes on the legislation that deals with semiconductors. Rubio maintained that there were not enough safeguards in the final measure and complained Democrats blocked his amendments. Rubio said on Twitter that "We need to support American semi-conductor production but the details in these bills matter Remember this tweet when the stories start coming out about how your tax dollars are being used by these companies to make chips in China and the R&D you paid for is being stolen."

Dear colleague — Scott meanwhile sent a letter to House members — who are expected to take up the bill as soon as today — urging them to reject the legislation. "Our nation is $30 trillion in debt and this bill spends $280 billion that we don't have," Scott wrote. "It sets a dangerous precedent for massive, taxpayer-funded corporate welfare to the world's most profitable corporations without any accountability or guarantee of return on investment (ROI) for the American people."

Response — Democrats sharply criticized Rubio for his no vote. "Instead of voting for popular bipartisan legislation to invest in American manufacturing, improve our supply chains, and lower prices for Floridians, Marco Rubio chose to play political games," Grant Fox, a spokesman for the Florida Democratic Party, said in a statement. "Working families across the state are facing a rising cost of living, but all Marco Rubio has to offer them are empty rhetoric and lame excuses for why he voted against another bill to tackle high prices."

ONLY FLORIDA REP TO VOTE NO — " 20 Republicans, including Rep. Matt Gaetz, vote against anti-human trafficking bill ," by USA Today's Ella Lee : "Twenty Republicans on Wednesday voted against legislation that would reauthorize programs to combat human trafficking. The bill, called the Frederick Douglass Trafficking Victims Prevention and Protection Reauthorization Act of 2022, passed the House by a tally of 401-20. It first became law in 2000 and saw almost no opposition from either party at the time. Florida GOP Rep. Matt Gaetz, who is reportedly himself under federal investigation for sex trafficking allegations involving a minor, was among the GOP members who voted 'no' on the bill."

— " Florida Christian school sues Biden, Nikki Fried over gender-identity mandate for student lunches ," by Washington Times' Valerie Richardson

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CAMPAIGN MODE

ENDORSEMENT DRAMA — "' A horrible look': Florida Democrats bash abortion-rights group for Fried snub ," by NBC News Marc Caputo: "Ruth's List Florida's mission is to recruit, train and elect 'pro-choice' women, but [Pamela] Goodman said it wouldn't discuss what happened with Fried. Nor would Ruth's List Florida tell NBC News why it has so far declined to endorse Fried in the Democratic primary against Rep. Charlie Crist, once a self-described 'pro-life' Republican governor who evolved years ago into a Democrat supporting abortion rights. The group's national sister organization, EMILY's List, also wouldn't respond to requests for comment about why it, too, is sitting on the sidelines in the primary. Both groups backed her candidacy in 2018 when she won statewide."

Commissioner Nikki Fried, left, and Rep. Charlie Crist shake hands.

Commissioner Nikki Fried, left, and Rep. Charlie Crist shake hands moments before the Telemundo 51 / NBC 6 "Decision 2022: Democratic Gubernatorial Debate" in Miramar, Fla. | Telemundo 51 & NBC 6

CAMPAIGN ROUNDUP — Over 50 current and former state legislators from across the state have endorsed state Sen. Annette Taddeo in the race for Florida's 27th Congressional District. Taddeo faces two other Democrats including Miami City Commissioner Ken Russell in the Aug. 23 primary. The legislators endorsing Taddeo include several from South Florida, such as Sens. Lauren Book, Shevrin Jones and Jason Pizzo as well as former state Rep. and now Miami-Dade County Commissioner Kionne McGhee.

… Jared Moskowitz has been endorsed by Florida LGBTQ+ Democratic Caucus and the Human Rights Campaign of Palm Beach County.

— "' Cancel my registration': GOP candidate pulled himself off voter rolls after 2020 election ," by Orlando Sentinel's Stephen Hudak

— " Rick Scott agnostic on timing of Donald Trump 2024 launch ," by Florida Politics' A.G. Gancarski

— " Former county commissioner Sharief gives state Sen. Book her first campaign test ," by Miami Herald's Bianca Padró Ocasio

— " Florida House District 1 race is rematch of 2020 race between Michelle Salzman, Mike Hill ," by Pensacola News Journal's Jim Little

— " Republicans hoping to flip South Florida congressional district look to the right, and the far right, for support ," by South Florida Sun-Sentinel's Anthony Man

TRUMPLANDIA AND THE SWAMP

A DIFFERENT WAY TO CAMPAIGN — " This accused Tampa Jan. 6 insurrectionist is running for Florida House from jail ," by Tampa Bay Times' Colleen Wright: "Jeremy Michael Brown, the lone Republican awaiting the Democratic primary winner for a Florida House seat representing parts of Pinellas and Hillsborough counties, is facing charges related to the Jan. 6 insurrection. And he's running his campaign from the Pinellas County Jail, where he is being held on felony federal weapons charges stemming from his arrest for misdemeanor trespassing and disruptive conduct in connection to the attack on the U.S. Capitol. Brown was photographed outside the Capitol in full tactical gear as hundreds disrupted congressional certification of Joe Biden's electoral victory."

THE GUNSHINE STATE

WARNING SIGNS — " Jurors see Florida school shooter's violent internet posts ," by The Associated Press' Terry Spencer: "Jurors in the penalty trial of Florida school shooter Nikolas Cruz saw evidence Wednesday of his growing obsession to commit a massacre, seeing internet posts and searches about mass killings in the months before he murdered 17 people at Parkland's Marjory Stoneman Douglas High School. In an emotionless monotone, Broward County sheriff's Detective Nick Masters read hundreds of searches and comments Cruz made starting seven months before the Feb. 14, 2018, massacre as prosecutors try to prove he planned it."

PENINSULA AND BEYOND

CLOSING TIME? — " Florida agency sees drag show, with children in attendance as a nuisance. 'This is wrong,' DeSantis says ," by South Florida Sun-Sentinel's Lisa J. Huriash: "The state of Florida has gone after a Miami-area restaurant after videos surfaced of its drag shows in front of kids, saying the performances violated the sensibilities of children. After videos appeared of drag performers wearing pasties and dollar bills flowing from a bikini bottom in the presence of children in the audience, the state is going after the restaurant's liquor license to shut it down, Gov. Ron DeSantis said Wednesday. He said children didn't need 'some agenda shoved down their throats all the time.'"

POWER PLAY — " Dark power: How FPL, other utilities neutralize opponents, grow profits ," by Orlando Sentinel's Annie Martin and Floodlight's Mario Alejandro Ariza and Miranda Green: "The CEO of the biggest power company in the U.S. had a problem. A Democratic state senator was proposing a law that could cut into Florida Power & Light's profits. Landlords would be able to sell cheap rooftop solar power directly to their tenants — bypassing FPL and their monopoly on electricity. 'I want you to make his life a living hell....seriously,' FPL's CEO Eric Silagy wrote in a 2019 email to two of his vice presidents about State Sen. José Javier Rodríguez, who proposed the legislation. Within minutes, one of them forwarded the directive to the CEO of Matrix, LLC, a powerful but little-known political consulting firm that has operated behind the scenes in at least eight states. Rodríguez was ousted from office in the next election."

— " Florida Medical Association gets drafted into culture wars, considers resolutions on abortion, trans care, guns and diversity ," by Florida Politics' Christine Jordan Sexton

— " Florida will include gun safety tips with weapons licenses ," by The Associated Press

ODDS, ENDS AND FLORIDA MEN

— " Miami considering plan to move homeless people to camp on island in Biscayne Bay ," by Miami Herald's Joey Flechas: "Commissioners have for years debated how to address homelessness in Miami. In recent years, the city has taken steps to make it harder for people to live in public spaces, outside of a shelter. The latest idea would have the city move homeless people away from densely populated areas such as downtown, Overtown and Little Havana. The commission asked city staff to develop a concept for a space where homeless people could be temporarily housed. The top choice recommended by City Manager Art Noriega's staff was the northern tip of Virginia Key, on a swath of land near the Virginia Key Outdoor Center and biking trails."

BIRTHDAYS: Washington Post's Beth Reinhard … Bill Cotterell, columnist and former state government reporter ... Juan Guaidó, Venezuelan opposition leader.