SB 922 – Employment Agreements

On Monday, March 17, SB 922 by Senator Tom Leek (R-Ormond Beach) was heard by the Senate Commerce & Tourism Committee and was reported favorably with 6 yeas and 3 nays. AIF stood in support of this legislation.

In a highly competitive business environment, companies are often required to keep innovations and intellectual property developments confidential. SB 922 strengthens non-compete and confidential employment agreement guidelines by establishing a framework that protects confidential trade secret information. The framework sets new rules for covered garden leave agreements for covered employers and covered employees, as current laws allow for several loopholes that employees can use to contest these agreements through litigation while also working for a competing business.

SB 922 will now go to the Senate Judiciary Committee for consideration.

AIF supports legislation that protects a business’s sensitive information and drives more innovation through clarified rulemaking. These standards will allow more businesses who rely heavily on research & development to invest in Florida and create new jobs in various industry sectors.

SB 1740 – Insurance

On Monday, March 17, SB 1740 by Senator Blaise Ingoglia (R-Spring Hill) was heard and amended by the Senate Banking and Insurance Committee and was reported favorably with 7 yeas and 0 nays. AIF spoke and provided information on an amendment to this legislation.

SB 1740 reorganizes the homeowner’s insurance mitigation climate, creates surplus minimums for insurers offering residential/sinkhole coverage, and eliminates individuals who served as a director or officer from working for other insurers if their company goes insolvent.

The amendment that was proposed and adopted directs all insurers who use artificial intelligence for the claims handling process to accurately detail the process for denial of claims to the claimant. It also indicates that claims must not be solely denied based on an AI algorithm and with no human involvement. The bill lists several record-keeping items that direct insurers to accurately disclose the qualified human professionals who take part in individual claims denials to the claimant.

SB 1740 will now go to the Senate Appropriations Committee on Agriculture, Environment, and General Government for consideration.

AIF supports tailoring AI application regulations to specific risk profiles to ensure a balanced environment that promotes responsible innovation while safeguarding consumer welfare. This nuanced approach can help prevent stifling technological growth while ensuring AI’s benefits are realized safely and ethically. AIF supports measures that would foster innovation and promote the adaptation of emerging technologies.