House Bill 0211

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    Florida House of Representatives - 1999                 HB 211

        By Representative Feeney






  1                      A bill to be entitled

  2         An act relating to hurricane loss mitigation;

  3         providing a short title; creating s. 215.559,

  4         F.S.; creating the Hurricane Loss Mitigation

  5         Clearing Trust Fund; providing for

  6         administration; specifying moneys to be

  7         credited to the fund; requiring appropriation

  8         of moneys in the fund; providing purposes;

  9         specifying uses of such moneys by specified

10         officers and agencies; providing allocations;

11         requiring reports; providing that fund balances

12         carry over to future years; amending s.

13         215.555, F.S.; requiring the State Board of

14         Administration annually to transfer specified

15         amounts from the Florida Hurricane Catastrophe

16         Fund to the Hurricane Loss Mitigation Clearing

17         Trust Fund; providing an effective date.

18

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

20

21         Section 1.  This act may be cited as the "Bill Williams

22  Residential Safety and Preparedness Act."

23         Section 2.  Section 215.559, Florida Statutes, is

24  created to read:

25         215.559  Hurricane Loss Mitigation Clearing Trust

26  Fund.--

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

28  administration of the Comptroller, to be known as the

29  Hurricane Loss Mitigation Clearing Trust Fund.  Funds to be

30  credited to the trust fund shall consist of moneys transferred

31  from the Florida Hurricane Catastrophe Fund pursuant to s.

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    Florida House of Representatives - 1999                 HB 211

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  1  215.555(7)(c).  The Legislature shall annually appropriate the

  2  moneys provided under s. 215.555(7)(c) for the purposes set

  3  forth in this section.

  4         (2)  Moneys in the fund shall be used for the purpose

  5  of providing funding for local governments, state agencies,

  6  and nonprofit organizations to support programs intended to

  7  improve hurricane preparedness; reduce potential losses in the

  8  event of a hurricane and provide research into means to reduce

  9  such losses; educate or inform the public as to means to

10  reduce hurricane losses; and assist the public in determining

11  the appropriateness of particular upgrades to structures or in

12  the financing of such upgrades.

13         (3)  The Comptroller shall annually transfer the

14  following amounts of moneys in the fund:

15         (a)1.  Eighty-five percent to the Grants and Donations

16  Trust Fund of the Department of Community Affairs, to be used

17  by the Department of Community Affairs for programs to improve

18  the wind resistance of residences and mobile homes, including

19  loans, subsidies, grants, demonstration projects, and direct

20  assistance; cooperative programs with local governments and

21  the Federal Government; and other efforts to prevent or reduce

22  losses or reduce the cost of rebuilding after a disaster.

23         2.  In allocating the funds described in subparagraph

24  1., at least 40 percent of the total appropriation for loans,

25  subsidies, grants, demonstration projects, and direct

26  assistance for the first year of the programs shall be used

27  for mobile homes, including programs to inspect and improve

28  tie-downs, construct and provide safety structures, and

29  provide other means to reduce losses. In the second year of

30  the programs, at least 30 percent of the total appropriation

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    Florida House of Representatives - 1999                 HB 211

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  1  shall be used for mobile homes, and thereafter at least 20

  2  percent shall be used for such purposes.

  3         3.  The Department of Community Affairs shall develop

  4  the programs in consultation with an advisory council

  5  appointed by the secretary consisting of a representative of

  6  the Department of Insurance, a representative of home

  7  builders, a representative of insurance companies, a

  8  representative of the Federation of Mobile Home Owners, and a

  9  representative of a mobile home manufacturer.

10         4.  Moneys provided to the Department of Community

11  Affairs under this paragraph are intended to supplement other

12  funding sources of the Department of Community Affairs and may

13  not supplant other funding sources of the Department of

14  Community Affairs.

15         (b)  Five percent to the Insurance Commissioner's

16  Regulatory Trust Fund, to be used by the Department of

17  Insurance for the purpose of consumer education, information,

18  and outreach to encourage consumers to take actions that will

19  reduce their property insurance costs, including a media

20  public awareness campaign, provided that the funding for the

21  campaign must be matched by at least an equal amount of

22  in-kind services, with a goal of three times the funds being

23  matched by in-kind services. Moneys provided to the Department

24  of Insurance under this paragraph are intended to supplement

25  other funding sources and may not supplant other funding

26  sources of the Department of Insurance.

27         (c)  Ten percent to the Operations and Maintenance

28  Trust Fund in the general office of the Board of Regents, to

29  be used by the State University System to support programs of

30  research and development, including demonstration projects,

31  with regard to hurricane loss reduction devices and techniques

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    Florida House of Representatives - 1999                 HB 211

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  1  for residences and mobile homes and with regard to the

  2  development of credible data on potential loss reductions.

  3  The funding of research and development programs must be

  4  matched by at least an equal amount of funds or in-kind

  5  services from entities other than the State University System.

  6  The State University System shall consult with the Department

  7  of Community Affairs prior to expending moneys provided under

  8  this paragraph.

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10  On January 1, 2000, and annually thereafter, the Department of

11  Community Affairs shall provide a full report and accounting

12  of activities under this subsection and an evaluation of such

13  activities to the Speaker of the House of Representatives, the

14  President of the Senate, and the Majority and Minority Leaders

15  of the House of Representatives and the Senate.

16         (4)  Notwithstanding the provisions of s. 216.301 and

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

18  end of any fiscal year shall remain in the trust fund at the

19  end of the year and shall be available for carrying out the

20  purposes of the trust fund.

21         Section 3.  Paragraph (c) of subsection (7) of section

22  215.555, Florida Statutes, 1998 Supplement, is amended to

23  read:

24         215.555  Florida Hurricane Catastrophe Fund.--

25         (7)  ADDITIONAL POWERS AND DUTIES.--

26         (c)  Beginning with the 1999-2000 fiscal year, on the

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

28  portion of the investment income of the Florida Hurricane

29  Catastrophe Fund to the Hurricane Loss Mitigation Clearing

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

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

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    Florida House of Representatives - 1999                 HB 211

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  1  amount such that the total amount transferred equals 35

  2  percent of the investment income of the Florida Hurricane

  3  Catastrophe Fund for the prior fiscal year, however, the board

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

  5  fiscal year, the Legislature shall appropriate from the

  6  investment income of the Florida Hurricane Catastrophe Fund an

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

  8  the investment income from the prior fiscal year for the

  9  purpose of providing funding for local governments, state

10  agencies, public and private educational institutions, and

11  nonprofit organizations to support programs intended to

12  improve hurricane preparedness, reduce potential losses in the

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

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

15  reduce hurricane losses, assist the public in determining the

16  appropriateness of particular upgrades to structures or in the

17  financing of such upgrades, or protect local infrastructure

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

19  available for appropriation under this paragraph in fiscal

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

21  in this paragraph shall not be available for appropriation

22  under this paragraph if the State Board of Administration

23  finds that an appropriation of an amount of investment income

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

25  actuarial soundness of the fund based on the assumptions

26  contained in the premium formula approved for that year or

27  would have an adverse impact on rates.

28         Section 4.  This act shall take effect upon becoming a

29  law.

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    Florida House of Representatives - 1999                 HB 211

    76-193-99






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  2                          SENATE SUMMARY

  3
      Creates the Hurricane Loss Mitigation Clearing Trust
  4    Fund. Provides for administration. Specifies moneys to be
      credited to the fund. Requires appropriation of moneys in
  5    the fund. Provides purposes. Specifies uses of such
      moneys by specified officers and agencies. Provides
  6    allocations. Requires reports. Provides that fund
      balances carry over to future years. Requires the State
  7    Board of Administration annually to transfer specified
      amounts from the Florida Hurricane Catastrophe Fund to
  8    the Hurricane Loss Mitigation Clearing Trust Fund.

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