A House panel on Thursday approved a measure that would raise the amount state and local governments can be forced to pay in lawsuits, moving forward a proposal that would make changes to Florida’s sovereign immunity law.

The House Budget Committee voted 25-3 to advance the bill, which is sponsored by Rep. Fiona McFarland. The measure would raise the current cap on damages from $200,000 per person and $300,000 per incident to $1 million and $3 million, respectively, for claims that accrue between Oct. 1, 2025, and Sept. 30, 2030. Beginning Oct. 1, 2030, those limits would increase again to $1.1 million per person and $3.2 million per incident.

The bill would also allow local governments, including cities and counties, to settle claims above those caps without having to seek legislative approval, a change from current law that requires such payouts to go through the claim bill process.

Under the proposal, insurance policies issued to state and local agencies could no longer tie coverage or payment of claims to the passage of a claim bill. Any policy issued on or after Oct. 1, 2025, with such language would be considered void.

The measure would shorten the time allowed to file certain claims against government agencies. Most negligence claims would have to be filed within two years instead of four, and the deadline to notify an agency before filing suit would be reduced from three years to 18 months. Agencies would have four months to respond before the claim is deemed denied. The timeline for medical malpractice and wrongful death claims, which require a response within 90 days, would remain unchanged.

Lawsuits involving sexual battery against a victim under 16 could be brought at any time, though the bill would not reopen cases that have already expired under previous time limits.

If passed, the changes would take effect Oct. 1, 2025. The bill’s companion, SB 1570 by Sen. Nick DiCeglie, is moving through the Senate’s committee process.