Oppose HB 145

(Sovereign Immunity Caps)

Protecting Taxpayers from Unreasonable Liability Costs

HB 145 (McFarland) would significantly increase the statutory limits on liability for tort claims against the state and its agencies and subdivisions (which include cities). Raising the caps on government liability in negligence lawsuits would impose a massive financial burden on local taxpayers.

Under current law, cities and other governmental entities may be held liable for up to $200,000 per person and $300,000 per incident for negligence or other tort claims. HB 145 would significantly increase those limits and loosen key procedural safeguards. For causes of action that accrue on or after October 1, 2026, the liability caps would increase to $500,000 per person and $1 million per incident, and for claims accruing on or after October 1, 2031, the limits would further rise to $600,000 per person and $1.2 million per incident.

The Florida League of Cities STRONGLY OPPOSES increasing sovereign immunity limits.

HB 145 will be heard in the House Civil Justice and Claims Subcommittee on Wednesday, November 5. Please contact committee members and urge them to oppose HB 145. (Click here for subcommittee contact information.)

Below is information that you can share with subcommittee members when urging them to oppose.

Protecting Taxpayers and City Services

• Cities are not profit-driven entities; they exist to serve communities. Increasing lawsuit payouts means taxpayers will ultimately foot the bill.
• Higher caps = skyrocketing insurance costs. The insurance market in Florida is already volatile, and this bill would make securing adequate coverage even more difficult and expensive for cities.
• Unlike private businesses, cities can’t just raise prices to cover additional liability costs. Instead, they’ll be forced to cut vital services, raise taxes, or both.

HB 145’s Limits Are Extreme Compared to Other States

• Thirty-three states have sovereign immunity caps.
• Texas caps liability at $250,000 per person and $500,000 per occurrence. Florida should not be setting liability limits drastically higher than peer states.
• New York and California have no caps, but they also have some of the highest tax burdens in the country. Florida’s low-tax, business-friendly environment would be undermined by extreme liability costs.

A More Reasonable, Balanced Approach

• The last increase in Florida’s sovereign immunity limits was in 2011. Adjusting for inflation, today’s caps would be $288,056 per person and $432,085 per incident.
• HB 145’s proposed caps are much higher than inflation would justify. That’s an unjustified and dangerous increase that goes far beyond what’s reasonable.
• The existing system already provides a pathway for additional compensation through claims bills. There is no need for an across-the-board increase that will strain public budgets.

Encouraging Frivolous Lawsuits & Targeting Taxpayers

• Raising lawsuit limits would open the floodgates to excessive and frivolous litigation that only benefits trial attorneys, not communities.
• More lawsuits = more taxpayer dollars spent on legal defense instead of public services.
• Cities would be forced to divert funds from police, fire, and infrastructure to defend against lawsuits, hurting public safety and economic growth.

Please contact David Cruz with any questions.