Senate Bill 1990c1

CODING: Words stricken are deletions; words underlined are additions.



    Florida Senate - 1998                           CS for SB 1990

    By the Committee on Community Affairs and Senator Diaz-Balart





    316-2185-98

  1                      A bill to be entitled

  2         An act relating to hurricane loss mitigation;

  3         creating s. 215.559, F.S.; creating the

  4         Hurricane Loss Mitigation Clearing Trust Fund;

  5         providing for administration; specifying moneys

  6         to be credited to the fund; requiring

  7         appropriation of moneys in the fund; providing

  8         purposes; providing that fund balances carry

  9         over to future years; amending s. 215.555,

10         F.S.; requiring the State Board of

11         Administration annually to transfer specified

12         amounts from the Florida Hurricane Catastrophe

13         Fund to the Hurricane Loss Mitigation Clearing

14         Trust Fund; providing an effective date.

15

16  Be It Enacted by the Legislature of the State of Florida:

17

18         Section 1.  Section 215.559, Florida Statutes, is

19  created to read:

20         215.559  Hurricane Loss Mitigation Clearing Trust

21  Fund.--

22         (1)  There is created a clearing fund under the

23  administration of the Comptroller, to be known as the

24  Hurricane Loss Mitigation Clearing Trust Fund.  Funds to be

25  credited to the trust fund shall consist of moneys transferred

26  from the Florida Hurricane Catastrophe Fund under s.

27  215.555(7)(c).  The Legislature shall annually appropriate the

28  moneys in the fund for the purposes set forth in this section.

29         (2)  Moneys in the fund must be used to provide funding

30  for local governments, state agencies, public and private

31  educational institutions, and nonprofit organizations to

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                           CS for SB 1990
    316-2185-98




  1  support programs intended to improve hurricane preparedness,

  2  reduce potential losses in the event of a hurricane, provide

  3  research into means to reduce such losses, educate or inform

  4  the public as to means to reduce hurricane losses, assist the

  5  public in determining the appropriateness of particular

  6  upgrades to structures or in the financing of such upgrades,

  7  or protect local infrastructure from potential damage from a

  8  hurricane.

  9         (3)  Notwithstanding the provisions of s. 216.301 and

10  pursuant to s. 216.351, any balance in the trust fund at the

11  end of any fiscal year must remain in the trust fund at the

12  end of the year and must be available for carrying out the

13  purposes of the trust fund.

14         Section 2.  Paragraph (c) of subsection (7) of section

15  215.555, Florida Statutes, is amended to read:

16         215.555  Florida Hurricane Catastrophe Fund.--

17         (7)  ADDITIONAL POWERS AND DUTIES.--

18         (c)  Beginning with the 1998-1999 fiscal year, on the

19  first day of each fiscal year, the board shall transfer a

20  portion of the investment income of the Florida Hurricane

21  Catastrophe Fund to the Hurricane Loss Mitigation Clearing

22  Trust Fund created by s. 215.559. The amount of the annual

23  transfer shall consist of $10 million, plus an additional

24  amount such that the total amount transferred equals 35

25  percent of the investment income of the Florida Hurricane

26  Catastrophe Fund for the prior fiscal year; however, the board

27  shall limit the transfer to $10 million if the board Each

28  fiscal year, the Legislature shall appropriate from the

29  investment income of the Florida Hurricane Catastrophe Fund an

30  amount no less than $10 million and no more than 35 percent of

31  the investment income from the prior fiscal year for the

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                           CS for SB 1990
    316-2185-98




  1  purpose of providing funding for local governments, state

  2  agencies, public and private educational institutions, and

  3  nonprofit organizations to support programs intended to

  4  improve hurricane preparedness, reduce potential losses in the

  5  event of a hurricane, provide research into means to reduce

  6  such losses, educate or inform the public as to means to

  7  reduce hurricane losses, assist the public in determining the

  8  appropriateness of particular upgrades to structures or in the

  9  financing of such upgrades, or protect local infrastructure

10  from potential damage from a hurricane. Moneys shall first be

11  available for appropriation under this paragraph in fiscal

12  year 1997-1998. Moneys in excess of the $10 million specified

13  in this paragraph shall not be available for appropriation

14  under this paragraph if the State Board of Administration

15  finds that an appropriation of an amount of investment income

16  in excess of $10 million from the fund would jeopardize the

17  actuarial soundness of the fund, based on the assumptions that

18  are contained in the premium formula approved for that year,

19  or would have an adverse impact on rates.

20         Section 3.  This act shall take effect upon becoming a

21  law.

22

23          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
24                         Senate Bill 1990

25

26  The CS deletes the provisions from the bill that require the
    Comptroller to transfer funds from the newly created Hurricane
27  Loss Mitigation Clearing Trust Fund to the Department of
    Community Affairs (DCA), Department of Insurance, and the
28  Board of Regents. In addition, the provision requiring DCA to
    report to the Legislature is deleted.
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