Florida Government and Politics Weekly Update

Politics: Governor Crist Appoints Former Chief of Staff to U.S. Senate
After weeks of speculation and an unusually public process involving interviews with at least nine prominent Republicans, Gov. Charlie Crist on August 28, 2009 appointed George LeMieux to fill the U.S. Senate vacancy created by the resignation of Sen. Mel Martinez.

Mr. LeMieux has been associated with Gov. Crist for many years. He served as chief of staff for the governor, campaign manager of Gov. Crist’s 2006 gubernatorial campaign, and deputy attorney general while Gov. Crist served as attorney general. Earlier in his career, Mr. LeMieux chaired the Broward County Republican party and ran unsuccessfully for the state legislature. After leaving the governor’s office in 2008, Mr. LeMieux became chair of the West Palm Beach-based law firm of Gunster Yoakley & Stewart PA.

Mr. LeMieux, who describes himself as “a Charlie Crist Republican,” is expected to be sworn in as soon as the Senate returns from its August recess.

Before appointing Mr. LeMieux, Gov. Crist also interviewed U.S. Rep. C. W. Bill Young of Seminole (R-10^th Congressional District); former members of Congress Michael Bilirakis of Palm Harbor, Lou Frey of Winter Park, and Clay Shaw of Ft. Lauderdale; state Rep. Jennifer Carroll (R-Jacksonville); former state Attorney General and Secretary of State Jim Smith of Tallahassee; former state Sen. Daniel Webster (R-Winter Garden); former Jacksonville Mayor John Delaney; and former U.S. Attorney Roberto “Bobby” Martinez of Coral Gables.

Legislature: Speaker Cretul Rearranges Committee Chairs and Members
On August 24, 2009, state House Speaker Larry Cretul (R-Ocala) announced a mid-term reorganization of the House. Under House rules, all council and committee appointments expire on August 1 of each odd-numbered year.

The most significant change was the consolidation of budget functions under Rep. David Rivera (R-Miami), who will serve as the chair of the both the Full Appropriations Council on Education & Economic Development and the Full Appropriations Council on General Government & Health Care. In the 2009 legislative session, Rep. Rivera chaired the Council on Education & Economic Development and Rep. Marcelo Llorente (R-Miami) chaired the Council on General Government & Health Care. The functional consolidation of these two councils, and the effective elimination of several appropriations committees, provides the House with a budget council and committee structure that matches the state Senate’s budget committee structure.

Speaker Cretul designated Rep. Llorente as the chair of the House Policy Council, replacing Rep. Ray Sansom (R-Fort Walton Beach). Rep. Sansom, at his own request, received no committee assignments in the reorganized House. Other major changes included the appointment of Rep. Will Weatherford (R-Wesley Chapel) as chair of the Education Policy Council, replacing Rep. Faye Culp (R-Tampa), and the appointment of Rep. Culp as chair of the Government Accountability Act Council, replacing Rep. Denise Grimsley (R-Sebring). Rep. Weatherford is expected to become House Speaker after the 2012 elections, assuming Republicans maintain their majority.

As part of the reorganization, Speaker Cretul set the membership of all committees at 14 members each, most councils at 16 members each, and the Full Appropriations, Rules and Calendar, and Policy Councils at 18 members each. In the House, each committee is assigned to a council, and the committee’s actions are subject to the oversight and approval of councils.

Insurance: A.M. Best Company Downgrades and Withdraws Financial Strength Ratings of Three Tower Hill Insurance Companies
Florida’s unstable property insurance market and exposure to catastrophic losses resulted in the downgrading of the financial strength ratings three insurance companies on August 26, 2009. The A.M. Best Company announced that it was lowering the financial strength ratings of three members of the Gainesville-based Tower Hill Insurance Group, LLC: Tower Hill Preferred Insurance Co., Tower Hill Prime Insurance Co., and Omega Insurance Co. After they were assigned these lower ratings, the companies were removed from the A.M. Best rating process at the companies’ request.

A.M. Best, in a press release describing its action, said that the downgrade was based on the companies’ exposure to catastrophic losses in Florida. The press release stated that the companies had “modest catastrophe reinsurance coverage, in potential multiple event scenarios,” and went on to state that “A.M. Best views their risk-adjusted capital positions as poor, particularly as evaluated on a catastrophe stress test basis. The uncertainties inherent in the companies’ risk-adjusted capital positions and overall catastrophe reinsurance programs are reflected by the negative outlook.”

A.M. Best has downgraded its ratings of several major Florida property insurers during the past few months, including State Farm Florida Insurance Co. and Allstate Floridian Insurance Company (now known as Castle Key Insurance Group).

Public Policy News Alert is part of our ongoing commitment to providing up-to-the-minute information about pressing concerns or industry issues affecting our clients and our colleagues. If you have any questions about this alert or would like to discuss these topics further, please contact your Foley attorney or any of the following individuals: