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Governor Puts No-Fault Auto Insurance On Agenda

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By JEROME R. STOCKFISCH The Tampa Tribune

Published: October 1, 2007

Updated: 10/01/2007 11:13 pm

Previous Coverage: If You Drive, You Should Read This

TALLAHASSEE - On the day that Floridians were no longer required to hold personal injury protection in their auto policies, Gov. Charlie Crist placed the issue of no-fault insurance onto the agenda for the special legislative session beginning this week.

Crist also announced Monday that legislative leaders would schedule another special session after the one ending Oct. 12 to address property taxes. A constitutional amendment altering the local property tax structure by creating a "super" homestead exemption was removed from January's primary election ballot last week by a judge who cited misleading and improper language. Lawmakers will attempt to rewrite the amendment.

The governor had been pressured by House Speaker Marco Rubio, R-West Miami, to force the Legislature's hand. Senate President Ken Pruitt, R-Port St. Lucie, refused last week to take up either personal injury protection, known as "PIP," or property taxes in the special session scheduled to beginWednesday. The meeting was intended to focus solelyon the $1.1 billion state budget shortfall, and Pruitt said that should be the Legislature's priority.

"I've been on the phone with these gentlemen a lot this past week," Crist said. "We're trying to figure out with each other how we can benefit the people of our state. It became very clear to me as it got closer to this day … that we had an opportunity to have personal injury protection go forward."

What topics the legislative session addresses must have the agreement of the leaders of the two chambers. But, the governor can also set the agenda.

"The governor believes the sunset of PIP is an important issue to the state," Pruitt said in a statement issued by his office. "As I have said before: When an issue is a priority to the governor, then it is a priority for me."

Lawmakers Wary Of Some Ideas

Pruitt noted that there is no general agreement on PIP. That had been an unofficial requirement of the two legislative leaders when considering a special session, demonstrating their wariness of an unproductive session at a cost to taxpayers of $40,000 a day.

Sen. Bill Posey, R-Rockledge, and Rep. Ellyn Bogdanoff, R-Fort Lauderdale, have been negotiating a bill that would have extended PIP while addressing fraud concerns. But there have been competing bills, and some lawmakers are leery of various provisions, such as medical fee or treatment schedules. Crist said Monday that he felt lawmakers were "in a good place" on PIP changes.

Florida legislatures have tried repeatedly to overhaul no-fault since the state shifted from an at-fault system in 1972. Last year, they set an Oct. 1 expiration date for PIP laws, meaning if a fix could not be found, the state would revert to an at-fault system.

Under that system, effective in 38 states, the person at fault in an accident is responsible for damage. That often requires legal action. Under PIP, motorists carry $10,000 worth of protection for themselves no matter who is at fault.

Critics say unscrupulous health care professionals lured by that $10,000 pot have left PIP rife with fraud.

Insurance Groups Like PIP's End

The issue has brought some of the capital's most influential lobbying groups into the PIP debate.

A spokesman for Allstate, the state's second largest insurer covering about 17 percent of Florida's drivers, saidMonday that the company would remain compliant with whatever system the state adopts. Allstate and other insurers had supported the end of PIP, citing the fraud issue.

"As we move into this new phase of determining what the Legislature may or may not do, we will try to arm ourselves and our agents with the best possible information to share with our customers," said Adam Shores, a company spokesman in St. Petersburg. Still, he added, "we don't know what to expect. Every day there appears to be some new change with PIP."

State Farm, the state's largest auto insurer with coverage for about 22 percent of Florida's drivers, deferred comment to Floridians for Lower Insurance Costs, an industry lobbying group against reinstating no-fault insurance. The group said bringing back PIP would mean higher insurance premiums for the state's drivers.

"It is unfortunate this continues to be up in the air," said Allison North Jones, a spokeswoman for the industry group. "Our hope is they let no-fault remain off the books, or there is substantive reform [to] the no-fault system."

Superexemption Talks Return

Meanwhile, a plan to ask voters on Jan. 29 whether to allow the superexemption to lower local property tax bills was derailed last week.

Under the plan sent to the ballot by the Legislature, homeowners could accept a tax exemption totaling 75 percent of the first $200,000 of a home's value, and 15 percent of the next $300,000 of value. The significant exemption likely would lower tax bills, particularly for new buyers.

Under the plan, homeowners could retain their existing exemption and Save Our Homes cap, which limits valuation increases and has been a popular benefit to longtime homeowners. But a Tallahassee judge said the language of the constitutional amendment on the issue was misleading and improper.

The state has appealed, but with Monday's announcement, lawmakers will likely attempt to rewrite the ballot measure. The ballot measure must be submitted by Oct. 31.

Crist said he agreed it would be best to handle the property tax issue separately from this week's special session.

"The Senate president counseled me well," the governor said. "This budget thing is important stuff. We have to get it right. … Keeping a good laser focus on the budget and what looks like a not-too-difficult lift on personal injury protection is good counsel on his part. He and the speaker feel that doing the property tax session later would be beneficial to that process, and I agree."

Reporter Ted Jackovics contributed to this report. Reporter Jerome R. Stockfisch can be reached at jstockfisch@tampatrib.com or (850) 222-8382.

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