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Home , Florida Legislature, Josie Tomkow, Ray Rodrigues

ine Die: April 26-30, 2021

Issued for BioFlorida Members

Session 2021 Report Week 9: April 26-30, 2021 (Sine Die)

The Legislature officially finished the 2021 Session this afternoon. Following is a summary of the priority policy and budget items impacting the life sciences.

Timing and Process

Following the November elections, the Legislature convened interim committee hearings in January and February 2021. The Legislative Session officially began on March 2 and ran through April 30. This Session, 3,095 total bills were filed in the House and Senate, and 259 (0.83%) passed both chambers. Once a bill has passed both chambers, it is enrolled and converted into an act for presentation to the Governor. Per Article III, section 8 of the Florida Constitution, once bill is presented to the Governor during session, there is a seven day period for Governor’s action – to sign or veto the bill, or it becomes law automatically. When the Legislature adjourns sine die, the Governor has fifteen days to act from the date of presentation.

Policy Issues

COVID Liability Protection Governor signs bill into law

HB 7 by Representative Lawrence McClure and SB 72 by Senator provide several COVID-19 liability protections for businesses, educational institutions, government and healthcare entities, religious organizations and other entities. A covered entity that makes a good faith effort to substantially comply with applicable COVID-19 guidance is immune from civil liability from a COVID-19-related civil action. The bill’s liability protections do apply to a healthcare provider. SB 72 passed the Senate 24-15 on March 18, and then passed the House 83-31 on March 26. On Monday, March 29, the Governor signed SB 72 into law.

Rare Disease Advisory Council Bill enrolled to the Governor

SB 272 by Senator and HB 1373 by Representative Bobby DuBose create the Rare Disease Advisory Council adjunct to DOH. The Council is tasked with providing recommendations to improve the health outcomes of Floridians who have a rare disease, defined as a disease that affects fewer than 200,000 people in the United States. The bill establishes the membership of the Council as well as the length of the members’ terms, requires that the Council first meet on October 1, 2021, and that the Council provide its recommendations to the Governor and the State Surgeon General by July 1 of each year beginning in 2022. SB 272 passed the Senate 39-0 and the House 117-0, the bill is enrolled and will be presented to the Governor.

Genetic Privacy Bill enrolled to the Governor

HB 833 by Representative and SB 1140 by Senator prohibit the collection or retention of DNA sample without authorization for specified purposes; prohibit DNA analysis & disclosure of results of such analysis without authorization and provide criminal penalties for specified violations. A life sciences coalition worked with the sponsor on amendment language which would include an exemption for research institutions and data banking, that language was adopted in the strike all amendment on the floor. HB 833 ultimately passed the Senate 22-18 and the House 85-28, and the bill will be enrolled and presented to the Governor.

Data Privacy Bills died in negotiations

HB 969 by Representative Fiona McFarland and SB 1734 by Senator Jen Bradley require certain businesses to provide notice to consumers about data collection and selling practices; provide consumers the right to request that data be disclosed, deleted or corrected; provide nondiscrimination measures, methods for requesting data & opting-in or opting-out of sale or sharing of such data, exemptions, applicability, contracts, & private cause of action, and enforcement. HB 969 passed the chamber floor 118-1 on April 21, 2021. SB 1734 passed all committees of reference and is on the calendar. BioFlorida worked with other health-related organizations to ensure the bill recognizes the importance of safely protected patient data used for clinical research. In final week negotiations, chamber leadership could not agree on the policy and the bill died.

Dispensing Medicinal Drugs Bill enrolled to the Governor

SB 262 by Senator and HB 29 by Representative Willhite authorize certain hospitals to dispense supplies of prescribed medicinal drugs in a specified amount to emergency department patients or inpatients upon discharge under certain circumstances; authorizes a greater specified supply of medicinal drugs to be prescribed and dispensed in areas in which a state of emergency has been declared and is in effect; authorizes a prescriber to provide a patient with a prescription for medicinal drugs beyond the initial prescription period under certain circumstances. SB 262 passed the Senate 40-0 and the House 117-0, the bill is enrolled and will be presented to the Governor.

Prescription Drug Coverage Bills died in the committee process

SB 390 by Senator Tom Wright and HB 1155 by Representative authorize the Office of Insurance Regulation to examine pharmacy benefit managers; revise the entities conducting pharmacy audits to which certain requirements and restrictions apply; revise the definition of the term “maximum allowable cost”; authorize the office to require health insurers to submit to the office certain contracts or contract amendments entered into with pharmacy benefit managers; and require certain health benefit plans covering small employers to comply with certain provisions. SB 390 passed all committees of reference and died on the calendar on 2nd reading. HB 1155 was heard and passed in all committees of reference, but the bill died in the Senate.

Telehealth Bills died in committee

HB 247 by Rep. Tom Fabricio, SB 660 by Senator Manny Diaz, SB 864 by Senator , SB 700 by Senator Ana Maria Rodriguez, HB 831 by Rep. Anthony Rodriguez, SB 1250 by Senator , and HB 6079 by Rep. all make various changes to the telehealth statutes. During this legislative session, the legislature will address such issues as whether audio-only telephone calls can be considered telehealth, which controlled substances can be prescribed via telehealth, reimbursement amounts, and use of telehealth and supervisory relationships by out of state telehealth providers. HB 247 passed the chamber floor 118-0. SB 864 was heard and passed in Health Policy but was not heard in the final two committees of reference. SB 700 was heard and passed in the first two committees of reference, but was never heard in the final committee, Appropriations. There is telehealth language in the Department of Health bill, SB 1568, which authorizes a telehealth provider, practicing in a manner consistent with his or her scope of practice, to prescribe Schedule III, IV, and V controlled substances through telehealth and may use telehealth to prescribe Schedule II controlled substances if they are prescribed for the treatment of certain conditions, including the treatment of a psychiatric disorder. SB 1568 died in final negotiations on sine die.

Step Therapy Protocols Bills did not pass this session

HB 1001 by Representative and SB 1290 by Senator revise circumstances under which step-therapy protocols may not be required, limit the types of health insurers that may not require step-therapy protocol, and provides requirements for granting and denying protocol exemption requests. HB 1001 passed all committees of reference and is now on the calendar on 2nd Reading. SB 1290 has not yet been heard in committee.

Qualified Targeted Industries Bills died in committee

HB 6071 by Representative Chip LaMarca and SB 982 by Senator repeal the current deadline of the QTI program. HB 6071 was referred to committees but never heard. SB 982 passed the first two committees of reference and died in the Appropriations committee. QTI renewal was not included in the final tax package.

Health Insurance Prior Authorization Bill died in committee

SB 528 by Senator Gayle Harrell provides certain patient protection provisions regarding prior authorization forms, treatment coverage and prescription drug coverage. Specifically, the bill prohibits health insurers from excluding coverage for certain cancer treatments drugs. The bill also provides that prior authorization forms may only contain information that is necessary for the determination of medical necessity or coverage for the requested medical procedure, course of treatment, or prescription drug benefit. The bill requires insurers to publish on their website and provide insureds in writing, protocol exception procedures. In addition, the bill prohibits insurers from retroactively denying coverage if the health insurer verified eligibility at the time of treatment or provided an authorization number. Finally, the bill provides for certain step therapy protocol exceptions. The bill was referred but never heard.

Drug Coverage for Treatment of Cancer Bills died in committee

HB 1021 by Representative Allison Tant and SB 1392 by Senator Gayle Harrell prohibit health insurers and HMOs from requiring insured and subscribers to meet certain requirements before drugs prescribed for stage 4 cancer and associated conditions are covered. The bills prohibit health insurers and HMOs from excluding such drugs on specified ground and provides coverage for certain medically necessary services. Both bills were referred to committees but never heard.

Health Insurance Cost Sharing Bills died in committee

SB 1078 by Senator Jason Brodeur and HB 1111 by Representative Demi Busatta Cabrera require specified individual health insurers and their pharmacy benefits managers to apply payments by or on behalf of insureds toward the total contributions of the insureds’ cost-sharing requirements; require specified individual health insurers to disclose on their websites and in their policies their applications of payments by or on behalf of policyholders toward the policyholders’ total contributions to cost-sharing requirements; and require pharmacy benefits managers to apply payments by or on behalf of insureds and subscribers toward the insureds’ and subscribers’ total contributions to cost-sharing requirements. Both bills were referred to committees but never heard.

Budget Issues State budget passed by the Legislature

The budget conference began on April 16 and ran though April 27. The Appropriations Subcommittee chairs negotiated funding amounts for their respective silos and all unresolved issues were bumped to the full Appropriations chairs on Monday, April 19. The Senate and House spent the final week of session debating policy on the chamber floor and negotiating one final budget. On Tuesday, April 27, the final documents of the budget were published and the legislature took final votes on the budget on April 30. SB 2500, the FY 2021-22 budget, passed out of the House 117-1 and 39-0 in the Senate. The bill is enrolled and will be presented to the Governor.

The total budget is $101.5 billion for Fiscal Year 2021-22 with $6 billion in reserves. The budget includes $6.7 billion in federal Coronavirus State Fiscal Recovery funds which are allocated to one-time projects including first responder bonuses, infrastructure and water quality improvements, and economic development support including upgrades to the reemployment assistance system and workforce information technology system as well as $50 million for the Job Growth Grant Fund. The health and human services silo of the budget totals $44 billion and includes investments in biomedical research and healthcare services for Floridians. Economic development funding includes toolkit payments at $20.5 million and $14.4 million for Enterprise Florida. More information on BioFlorida budget priorities can be found on the budget tracker.

Biomedical Research Level funding for biomedical research

BioFlorida supports the state’s investment in biomedical research that can lead to breakthrough treatments and expand the industry and Florida’s economy. Governor DeSantis’ “Florida Leads” budget recommendations support level funding of these priorities. In early budget negotiations, the Senate supported level funding and the House budget took a 20% cut to these programs. Through the budget conference process, those cuts were restored and biomedical research was level funded in fiscal year 2021-22.

Tax Package House and Senate compromise and pass annual tax package

HB 7061 is the Legislature’s 2021-22 tax package that was negotiated by the House and Senate in the final week of session, it totals $196.3 million. The tax package has several components that make reductions in state sales tax including “Back to School” and “Disaster Preparedness” sales tax holidays which total $134 million. Components of the tax package that relate to BioFlorida include: • A repeal of the hospital community benefit reporting statute, 193.019; • Language that clarifies charitable, religious, scientific or literary property exemptions; • An allocation of 7% (from 2021-2024) and 10% (from 2024-2054) of the cigarette tax to Moffitt Cancer Center and Research Institute; • An internship tax credit program which allows businesses to take a $2,000 deduction per student intern; • Codifies the reduction in commercial lease tax from the current 5.5 to 2.0%; • Finally, the state’s research and development tax credit is maintained at the base $9 million. HB 7061 passed the Senate 40-1 and the House 117-1, the bill is enrolled and will be presented to the Governor.

Sales and Use Tax Governor signed the bill into law

HB 15 and SB 50 require out-of-state retailers and marketplace providers with no physical presence in Florida to collect sales tax on sales of taxable items delivered to purchasers in Florida if the out-of-state retailer or marketplace provider makes a substantial number of sales into Florida. This is a codification of the 2018 South Dakota v. Wayfair decision. The Revenue Estimating Conference determined the bill will increase the General Revenue Fund by $973.6 million in the first year, and $1.08 billion each year thereafter. In the final version of the bill, those funds would be distributed to the Unemployment Compensation Trust Fund until either the balance is $4.07 billion or December 31, 2025; after which the revenue remains in General Revenue. Two months after the trust fund reaches $4.07 billion, the tax rate on commercial real property rentals drops from 5.5% to 2.0%. SB 50 was amended and passed the chamber floor 30-10 on March 25. The bill went back to the House where it was amended with the final compromise language and passed 93-24. The bill returned to the Senate for final passage, 27- 12. The Governor signed the bill into law on April 19, 2021.

Confirmation Confirmations of Executive Director for the Department of Economic Opportunity and Secretary of Health Care Administration complete with final floor vote

On Monday, March 23, Senate Commerce and Tourism held a confirmation hearing for , Executive Director for the Department of Economic Opportunity. Director Eagle is a former House member who took the helm of DEO in September 2020. On March 30, Senate Ethics and Elections considered Eagle’s confirmation in committee. The final confirmation vote of 40-0 was held on April 29 on the Senate floor.

Additionally, on March 30, the Ethics and Elections committee considered the confirmation of Simone Marstiller, Secretary of Health Care Administration. This follows her confirmation hearing in Health Policy. The final confirmation vote of 40-0 was held on April 29 on the Senate floor.

The 2021 BioFlorida Government Affairs Priorities can be found here, and a complete legislative bill tracking list here.

If there is anyone who is interested in joining the BioFlorida Government Relations Committee please email [email protected]. The Government Relations Committee helps address the legislative priorities and goals of BioFlorida and also formulates advocacy positions in support or opposition of proposed legislation.