| 1 | A bill to be entitled |
| 2 | An act relating to the Protect Our Homes Loss Mitigation |
| 3 | Fund; creating s. 215.558, F.S.; creating the Protect Our |
| 4 | Homes Loss Mitigation Fund in the Office of Insurance |
| 5 | Regulation of the Financial Services Commission; providing |
| 6 | a purpose and legislative intent; providing definitions; |
| 7 | providing for administration of the fund by a board; |
| 8 | requiring the board to establish guidelines for use of |
| 9 | appropriated funds; providing requirements of the board in |
| 10 | providing financial incentives for residential hurricane |
| 11 | damage prevention activities; providing for an interest- |
| 12 | free loan program; providing criteria and requirements; |
| 13 | creating the Protect Our Homes Loss Mitigation Board for |
| 14 | certain purposes; providing for appointment of members; |
| 15 | requiring members to serve without compensation; providing |
| 16 | for per diem and travel expenses; providing for retention |
| 17 | of funds in the fund from year to year; providing for |
| 18 | future review and termination; providing an appropriation; |
| 19 | providing a contingent effective date. |
| 20 |
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| 21 | Be It Enacted by the Legislature of the State of Florida: |
| 22 |
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| 23 | Section 1. Section 215.558, Florida Statutes, is created |
| 24 | to read: |
| 25 | 215.558 Protect Our Homes Loss Mitigation Fund.-- |
| 26 | (1) CREATION; PURPOSE AND INTENT.--The Protect Our Homes |
| 27 | Loss Mitigation Fund is created within the Office of Insurance |
| 28 | Regulation of the Financial Services Commission. The purpose of |
| 29 | the fund is to provide a continuing source of funding for |
| 30 | financial incentives to encourage residential property owners of |
| 31 | this state to retrofit their properties to make them less |
| 32 | vulnerable to hurricane damage and to provide matching funds to |
| 33 | local governments and nonprofit entities for projects that will |
| 34 | reduce hurricane damage to residential properties. It is the |
| 35 | intent of the Legislature that this section be construed |
| 36 | liberally to effectuate its purpose. |
| 37 | (2) DEFINITIONS.--As used in this section: |
| 38 | (a) "Appropriation" means annual funds appropriated by the |
| 39 | Legislature to encourage hurricane loss mitigation efforts |
| 40 | throughout this state. |
| 41 | (b) "Board" means the Protect Our Homes Loss Mitigation |
| 42 | Board. |
| 43 | (c) "Fund" means the Protect Our Homes Loss Mitigation |
| 44 | Fund. |
| 45 | (3) ADMINISTRATION.-- |
| 46 | (a) The board shall administer the fund as provided in |
| 47 | this section. |
| 48 | (b) The board shall review citizen requests and make |
| 49 | determinations on award amounts based upon recommendations made |
| 50 | by board staff. |
| 51 | (c) The board shall establish guidelines for use of |
| 52 | appropriated funds. The guidelines shall include a priority |
| 53 | schedule that makes effort to retrofit the most vulnerable homes |
| 54 | in the state first. It is the intent of the Legislature to make |
| 55 | it a priority to provide funds to homeowners who permanently |
| 56 | reside in their property throughout the year. |
| 57 | (4) FINANCIAL INCENTIVES FOR RESIDENTIAL HURRICANE DAMAGE |
| 58 | PREVENTION ACTIVITIES.-- |
| 59 | (a) The board, by rule, shall establish a request for a |
| 60 | proposal process to annually solicit proposals from lending |
| 61 | institutions under which the lending institution will provide |
| 62 | interest-free loans to residential property owners to pay for |
| 63 | improvements to existing residential properties intended to |
| 64 | reduce the property's vulnerability to hurricane damage in |
| 65 | exchange for funding from the fund. |
| 66 | (b) In order to qualify for funding under this subsection, |
| 67 | an interest-free loan program must include a means for verifying |
| 68 | that the improvements to be paid for from loan proceeds have |
| 69 | been demonstrated to reduce a property's vulnerability to |
| 70 | hurricane damage and must include a means for verifying that the |
| 71 | proceeds were actually spent on such improvements. The program |
| 72 | must include a method for awarding loans according to the |
| 73 | priorities established by the board. |
| 74 | (5) PROTECT OUR HOMES LOSS MITIGATION BOARD.--The Protect |
| 75 | Our Homes Loss Mitigation Board is created to administer the |
| 76 | fund. The board shall consist of: |
| 77 | (a) A representative of lending institutions, selected by |
| 78 | the board from a list of at least three persons recommended by |
| 79 | the Florida Bankers Association. |
| 80 | (b) A representative of residential property insurers, |
| 81 | selected by the board from a list of at least three persons |
| 82 | recommended by the Florida Insurance Council. |
| 83 | (c) A representative of home builders, selected by the |
| 84 | board from a list of at least three persons recommended by the |
| 85 | Florida Home Builders Association. |
| 86 | (d) A faculty member of a state university selected by the |
| 87 | board who is an expert in hurricane-resistant construction |
| 88 | methodologies and materials. |
| 89 | (e) Two members of the House of Representatives selected |
| 90 | by the Speaker of the House of Representatives. |
| 91 | (f) Two members of the Senate selected by the President of |
| 92 | the Senate. |
| 93 | (g) The senior officer of the Florida Hurricane |
| 94 | Catastrophe Fund. |
| 95 | (h) The executive director of the Citizens Property |
| 96 | Insurance Corporation. |
| 97 | (i) The director of the Division of Emergency Management |
| 98 | of the Department of Community Affairs. |
| 99 |
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| 100 | Members appointed under paragraphs (a)-(d) shall serve at the |
| 101 | pleasure of the board. Members appointed under paragraphs (e) |
| 102 | and (f) shall serve at the pleasure of the appointing officer |
| 103 | and shall serve ex officio and in advisory capacity only. |
| 104 | Members appointed under paragraphs (g)-(i) shall serve ex |
| 105 | officio and in advisory capacity only. Members of the board |
| 106 | shall serve without compensation but may receive reimbursement |
| 107 | for per diem and travel expenses incurred in the performance of |
| 108 | their official duties as provided in s. 112.061. |
| 109 | (6) CONTINUITY.--Notwithstanding the provisions of s. |
| 110 | 216.301 and pursuant to s. 216.351, any balance in the fund at |
| 111 | the end of any fiscal year shall remain in the fund at the end |
| 112 | of the year and shall be available for carrying out the purposes |
| 113 | of the fund. |
| 114 | (7) TERMINATION.--In accordance with s. 19(f)(2), Art. III |
| 115 | of the State Constitution, the Protect Our Homes Loss Mitigation |
| 116 | Fund, unless terminated sooner, shall be terminated on July 1, |
| 117 | 2010. Before its scheduled termination, the fund shall be |
| 118 | reviewed as provided in s. 215.3206(1) and (2). |
| 119 | Section 2. The sum of $500 million is appropriated from |
| 120 | the General Revenue Fund to the Protect Our Homes Loss |
| 121 | Mitigation Fund for fiscal year 2006-2007 as a nonrecurring |
| 122 | appropriation for the purposes specified in s. 215.558, Florida |
| 123 | Statutes, as created by this act. |
| 124 | Section 3. This act shall take effect on the same date |
| 125 | House Bill 1209 or similar legislation takes effect, if such |
| 126 | legislation is adopted in the same legislative session or an |
| 127 | extension thereof and becomes a law. |