Senate Bill sb2618

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2006                                  SB 2618

    By Senator Smith





    14-1774-06                                         See HB 1257

  1                      A bill to be entitled

  2         An act relating to the Protect Our Homes Loss

  3         Mitigation Fund; creating s. 215.558, F.S.;

  4         creating the Protect Our Homes Loss Mitigation

  5         Fund in the Office of Insurance Regulation of

  6         the Financial Services Commission; providing a

  7         purpose and legislative intent; providing

  8         definitions; providing for administration of

  9         the fund by a board; requiring the board to

10         establish guidelines for use of appropriated

11         funds; providing requirements of the board in

12         providing financial incentives for residential

13         hurricane damage prevention activities;

14         providing for an interest-free loan program;

15         providing criteria and requirements; creating

16         the Protect Our Homes Loss Mitigation Board for

17         certain purposes; providing for appointment of

18         members; requiring members to serve without

19         compensation; providing for per diem and travel

20         expenses; providing for retention of funds in

21         the fund from year to year; providing for

22         future review and termination; providing an

23         appropriation; providing a contingent effective

24         date.

25  

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

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28         Section 1.  Section 215.558, Florida Statutes, is

29  created to read:

30         215.558  Protect Our Homes Loss Mitigation Fund.--

31  

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    Florida Senate - 2006                                  SB 2618
    14-1774-06                                         See HB 1257




 1         (1)  CREATION; PURPOSE AND INTENT.--The Protect Our

 2  Homes Loss Mitigation Fund is created within the Office of

 3  Insurance Regulation of the Financial Services Commission. The

 4  purpose of the fund is to provide a continuing source of

 5  funding for financial incentives to encourage residential

 6  property owners of this state to retrofit their properties to

 7  make them less vulnerable to hurricane damage and to provide

 8  matching funds to local governments and nonprofit entities for

 9  projects that will reduce hurricane damage to residential

10  properties. It is the intent of the Legislature that this

11  section be construed liberally to effectuate its purpose.

12         (2)  DEFINITIONS.--As used in this section:

13         (a)  "Appropriation" means annual funds appropriated by

14  the Legislature to encourage hurricane loss mitigation efforts

15  throughout this state.

16         (b)  "Board" means the Protect Our Homes Loss

17  Mitigation Board.

18         (c)  "Fund" means the Protect Our Homes Loss Mitigation

19  Fund.

20         (3)  ADMINISTRATION.--

21         (a)  The board shall administer the fund as provided in

22  this section.

23         (b)  The board shall review citizen requests and make

24  determinations on award amounts based upon recommendations

25  made by board staff.

26         (c)  The board shall establish guidelines for use of

27  appropriated funds. The guidelines shall include a priority

28  schedule that makes effort to retrofit the most vulnerable

29  homes in the state first. It is the intent of the Legislature

30  to make it a priority to provide funds to homeowners who

31  permanently reside in their property throughout the year.

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    Florida Senate - 2006                                  SB 2618
    14-1774-06                                         See HB 1257




 1         (4)  FINANCIAL INCENTIVES FOR RESIDENTIAL HURRICANE

 2  DAMAGE PREVENTION ACTIVITIES.--

 3         (a)  The board, by rule, shall establish a request for

 4  a proposal process to annually solicit proposals from lending

 5  institutions under which the lending institution will provide

 6  interest-free loans to residential property owners to pay for

 7  improvements to existing residential properties intended to

 8  reduce the property's vulnerability to hurricane damage in

 9  exchange for funding from the fund.

10         (b)  In order to qualify for funding under this

11  subsection, an interest-free loan program must include a means

12  for verifying that the improvements to be paid for from loan

13  proceeds have been demonstrated to reduce a property's

14  vulnerability to hurricane damage and must include a means for

15  verifying that the proceeds were actually spent on such

16  improvements. The program must include a method for awarding

17  loans according to the priorities established by the board.

18         (5)  PROTECT OUR HOMES LOSS MITIGATION BOARD.--The

19  Protect Our Homes Loss Mitigation Board is created to

20  administer the fund. The board shall consist of:

21         (a)  A representative of lending institutions, selected

22  by the board from a list of at least three persons recommended

23  by the Florida Bankers Association.

24         (b)  A representative of residential property insurers,

25  selected by the board from a list of at least three persons

26  recommended by the Florida Insurance Council.

27         (c)  A representative of home builders, selected by the

28  board from a list of at least three persons recommended by the

29  Florida Home Builders Association.

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    Florida Senate - 2006                                  SB 2618
    14-1774-06                                         See HB 1257




 1         (d)  A faculty member of a state university selected by

 2  the board who is an expert in hurricane-resistant construction

 3  methodologies and materials.

 4         (e)  Two members of the House of Representatives

 5  selected by the Speaker of the House of Representatives.

 6         (f)  Two members of the Senate selected by the

 7  President of the Senate.

 8         (g)  The senior officer of the Florida Hurricane

 9  Catastrophe Fund.

10         (h)  The executive director of the Citizens Property

11  Insurance Corporation.

12         (i)  The director of the Division of Emergency

13  Management of the Department of Community Affairs.

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15  Members appointed under paragraphs (a)-(d) shall serve at the

16  pleasure of the board. Members appointed under paragraphs (e)

17  and (f) shall serve at the pleasure of the appointing officer

18  and shall serve ex officio and in advisory capacity only.

19  Members appointed under paragraphs (g)-(i) shall serve ex

20  officio and in advisory capacity only. Members of the board

21  shall serve without compensation but may receive reimbursement

22  for per diem and travel expenses incurred in the performance

23  of their official duties as provided in s. 112.061.

24         (6)  CONTINUITY.--Notwithstanding the provisions of s.

25  216.301 and pursuant to s. 216.351, any balance in the fund at

26  the end of any fiscal year shall remain in the fund at the end

27  of the year and shall be available for carrying out the

28  purposes of the fund.

29         (7)  TERMINATION.--In accordance with s. 19(f)(2), Art.

30  III of the State Constitution, the Protect Our Homes Loss

31  Mitigation Fund, unless terminated sooner, shall be terminated

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    Florida Senate - 2006                                  SB 2618
    14-1774-06                                         See HB 1257




 1  on July 1, 2010. Before its scheduled termination, the fund

 2  shall be reviewed as provided in s. 215.3206(1) and (2).

 3         Section 2.  The sum of $500 million is appropriated

 4  from the General Revenue Fund to the Protect Our Homes Loss

 5  Mitigation Fund for fiscal year 2006-2007 as a nonrecurring

 6  appropriation for the purposes specified in s. 215.558,

 7  Florida Statutes, as created by this act.

 8         Section 3.  This act shall take effect on the same date

 9  Senate Bill ____ or similar legislation takes effect, if such

10  legislation is adopted in the same legislative session or an

11  extension thereof and becomes a law.

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