Amid opposition from groups representing cities, counties, hospitals and schools, a Florida House panel Wednesday continued moving forward with a proposal that could lead to government agencies paying more money in negligence lawsuits.
The House Budget Committee voted 22-2 to approve a bill (HB 145) that would revamp the state's sovereign-immunity laws, which generally are designed to shield government agencies from costly lawsuits. The issue centers on people who pursue lawsuits over injuries caused by government negligence.
Under a law passed in 2010, government agencies' liability in such cases is capped at $200,000 for payments to a single person and $300,000 if multiple people are involved in an incident, though the caps can be exceeded if lawmakers pass a special type of measure known as a "claim" bill.
The House bill, sponsored by Rep. Fiona McFarland, R-Sarasota, would increase the caps to $500,000 and $1 million, respectively, for cases that begin as of Oct. 1 and $600,000 and $1.2 million for cases as of Oct. 1, 2031. It also would allow agencies such as cities and counties to settle lawsuits above the limits without needing the Legislature to approve claim bills.
McFarland, whose proposal is filed for the legislative session that will start Jan. 13, called the proposal a "measured, responsible update" to the law.
But groups such as the Florida League of Cities, the Florida Association of Counties, the Safety Net Hospital Alliance of Florida and the Panhandle Area Educational Consortium — a collection of largely rural school districts — signaled opposition to the bill Wednesday.
Bob Harris, a lobbyist for the educational consortium, said the proposal would drive up districts' insurance costs and that increasing the payment limits would lead to more lawsuits.
"It's the pot of gold at the end of the rainbow syndrome," Harris said.
McFarland acknowledged that costs likely would increase but said it is time to give residents more recourse if they get injured.
"I'm just saying that it's worth it," McFarland said. "It's time to update it (the law)."
Rep. Patt Maney, R-Shalimar, and Rep. Toby Overdorf, R-Palm City, cast the only dissenting votes. The bill last month was approved by the House Civil Justice & Claims Subcommittee and would need to clear the Judiciary Committee before it could go to the full House during the 2026 legislative session.
The House passed a bill during the 2025 session to revamp the sovereign-immunity laws, but it was not taken up in the Senate. A Senate version of McFarland's bill had not been filed for the 2026 session as of Wednesday morning.
