| 1 | A bill to be entitled |
| 2 | An act relating to hurricane preparedness and insurance; |
| 3 | creating the Citizens Property Insurance Corporation |
| 4 | Mission Review Task Force; providing purposes; requiring a |
| 5 | report; providing report requirements; providing for |
| 6 | appointment of members; providing responsibilities; |
| 7 | specifying service without compensation; providing for |
| 8 | reimbursement of per diem and travel expenses; providing |
| 9 | meeting requirements; requiring the corporation to assist |
| 10 | the task force; providing for the expiration of the task |
| 11 | force; requiring the Chief Financial Officer to provide a |
| 12 | report on the economic impact on the state of certain |
| 13 | hurricanes; providing report requirements; amending s. |
| 14 | 553.73, F.S.; limiting the authority of the Florida |
| 15 | Building Commission to modify certain codes and standards |
| 16 | under certain circumstances; requiring counties and |
| 17 | municipalities to enforce certain windborne debris |
| 18 | protections and structural guidelines; requiring the |
| 19 | commission to amend the Florida Building Code to require |
| 20 | application of certain standards and eliminate certain |
| 21 | exceptions; prohibiting amendment of the Florida Building |
| 22 | Code to diminish certain requirements; authorizing the |
| 23 | commission to amend the code to enhance certain |
| 24 | requirements; amending s. 10, ch. 2007-1, Laws of Florida; |
| 25 | revising reporting requirements for the commission's |
| 26 | voluntary "Code Plus" guidelines; providing an |
| 27 | appropriation; providing an effective date. |
| 28 |
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| 29 | Be It Enacted by the Legislature of the State of Florida: |
| 30 |
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| 31 | Section 1. (1) The Citizens Property Insurance |
| 32 | Corporation Mission Review Task Force is created to analyze and |
| 33 | compile available data and to develop a report setting forth the |
| 34 | statutory and operational changes needed to return Citizens |
| 35 | Property Insurance Corporation to its former role as a state- |
| 36 | created, noncompetitive residual market mechanism that provides |
| 37 | property insurance coverage to risks that are otherwise entitled |
| 38 | but unable to obtain such coverage in the private insurance |
| 39 | market. The task force shall submit a report to the Governor, |
| 40 | the President of the Senate, and the Speaker of the House of |
| 41 | Representatives by January 31, 2008. At a minimum, the task |
| 42 | force shall analyze and evaluate relevant and applicable |
| 43 | information and data and develop recommendations concerning: |
| 44 | (a) The nature of Citizens Property Insurance |
| 45 | Corporation's role in providing property insurance coverage when |
| 46 | and only if such coverage is not available from private |
| 47 | insurers. |
| 48 | (b) The ability of the admitted market to offer policies |
| 49 | to those consumers formerly insured through Citizens Property |
| 50 | Insurance Corporation. This consideration shall include, but not |
| 51 | be limited to, the availability of private market reinsurance |
| 52 | and coverage through the Florida Hurricane Catastrophe Fund, the |
| 53 | general adequacy of the admitted market's current rates, and the |
| 54 | capacity of the industry to offer policies to former Citizens |
| 55 | Property Insurance Corporation policyholders within existing |
| 56 | writing ratio limitations. |
| 57 | (c) The appropriate relationship of rates charged by |
| 58 | Citizens Property Insurance Corporation to rates charged by |
| 59 | private insurers, with due consideration for the corporation's |
| 60 | role as a noncompetitive residual market mechanism. |
| 61 | (d) The relationships between the exposure of Citizens |
| 62 | Property Insurance Corporation to catastrophic hurricane losses, |
| 63 | the corporation's history of purchasing inadequate or no |
| 64 | reinsurance coverage, and the corporation's lack of adequate |
| 65 | capital to meet its potential claim obligations without |
| 66 | incurring large deficits. |
| 67 | (e) The adverse effects on the people and the economy of |
| 68 | this state of the large, multiyear deficit assessments by |
| 69 | Citizens Property Insurance Corporation that may be levied on |
| 70 | businesses and households in this state, and steps that can be |
| 71 | taken to reduce those effects. |
| 72 | (f) The operational implications of the variation in the |
| 73 | number of policies in force over time in Citizens Property |
| 74 | Insurance Corporation and the merits of outsourcing some or all |
| 75 | of its operational responsibilities. |
| 76 | (g) Changes in the mission and operations of Citizens |
| 77 | Property Insurance Corporation to reduce or eliminate any |
| 78 | adverse effect such mission and operations may be having on the |
| 79 | promotion of sound and economic growth and development of the |
| 80 | coastal areas of this state. |
| 81 | (2) The task force shall be composed of 17 members as |
| 82 | follows: |
| 83 | (a) Three members appointed by the Speaker of the House of |
| 84 | Representatives. |
| 85 | (b) Three members appointed by the President of the |
| 86 | Senate. |
| 87 | (c) Three members appointed by the Governor who are not |
| 88 | employed by or professionally affiliated with an insurance |
| 89 | company or a subsidiary of an insurance company. |
| 90 | (d) Eight members appointed as representatives of private |
| 91 | insurance companies as follows: |
| 92 | 1. Two members representing two separate insurance |
| 93 | companies in this state that each provide at least 300,000 |
| 94 | property insurance policies statewide at the time of the |
| 95 | creation of the task force. |
| 96 | 2. Two members representing two separate insurance |
| 97 | companies in this state that each provide at least 100,000 but |
| 98 | no more than 299,000 property insurance policies statewide at |
| 99 | the time of the creation of the task force. |
| 100 | 3. Two members representing two separate insurance |
| 101 | companies in this state that each provide fewer than 100,000 |
| 102 | property insurance policies statewide at the time of the |
| 103 | creation of the task force. |
| 104 | 4. Two members appointed by the Chief Financial Officer |
| 105 | representing insurance agents in this state, at least one of |
| 106 | whom represents the largest property and casualty insurance |
| 107 | agent's association in this state. |
| 108 |
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| 109 | Of each pair of members appointed under subparagraphs 1., 2., |
| 110 | and 3., one shall be appointed by the President of the Senate |
| 111 | and one by the Speaker of the House of Representatives. |
| 112 | (3) The task force shall conduct research, hold public |
| 113 | meetings, receive testimony, employ consultants and |
| 114 | administrative staff, and undertake other activities determined |
| 115 | by its members to be necessary to complete its responsibilities. |
| 116 | Citizens Property Insurance Corporation shall have appropriate |
| 117 | senior staff attend task force meetings, shall respond to |
| 118 | requests for testimony and data by the task force, and shall |
| 119 | otherwise cooperate with the task force. |
| 120 | (4) A member of the task force may not delegate his or her |
| 121 | attendance or voting power to a designee. |
| 122 | (5) Members of the task force shall serve without |
| 123 | compensation but are entitled to receive reimbursement for |
| 124 | travel and per diem as provided in s. 112.061, Florida Statutes. |
| 125 | (6) The appointments to the task force must be completed |
| 126 | within 30 calendar days after the effective date of this act, |
| 127 | and the task force must hold its initial meeting within 1 month |
| 128 | after appointment of all members. The task force shall expire no |
| 129 | later than 60 calendar days after submission of the report |
| 130 | required in subsection (1). |
| 131 | Section 2. The Chief Financial Officer shall provide a |
| 132 | report on the economic impact on the state of a 1-in-250-year |
| 133 | hurricane to the Governor, the President of the Senate, and the |
| 134 | Speaker of the House of Representatives by March 1 of each year. |
| 135 | The report shall include an estimate of the short-term and long- |
| 136 | term fiscal impacts of such a storm on Citizens Property |
| 137 | Insurance Corporation, the Florida Hurricane Catastrophe Fund, |
| 138 | the private insurance and reinsurance markets, the state |
| 139 | economy, and the state debt. The report may also include |
| 140 | recommendations by the Chief Financial Officer for preparing for |
| 141 | such a hurricane and reducing the economic impact of such a |
| 142 | hurricane on the state. In preparing the analysis, the Chief |
| 143 | Financial Officer shall coordinate with and obtain data from the |
| 144 | Office of Insurance Regulation, Citizens Property Insurance |
| 145 | Corporation, the Florida Hurricane Catastrophe Fund, the Florida |
| 146 | Commission on Hurricane Loss Projection Methodology, the State |
| 147 | Board of Administration, the Office of Economic and Demographic |
| 148 | Research, and other state agencies. |
| 149 | Section 3. Subsection (3) of section 553.73, Florida |
| 150 | Statutes, as amended by chapter 2007-1, Laws of Florida, is |
| 151 | amended, and subsection (13) is added to that section, to read: |
| 152 | 553.73 Florida Building Code.-- |
| 153 | (3) The commission shall select from available national or |
| 154 | international model building codes, or other available building |
| 155 | codes and standards currently recognized by the laws of this |
| 156 | state, to form the foundation for the Florida Building Code. The |
| 157 | commission may modify the selected model codes and standards as |
| 158 | needed to accommodate the specific needs of this state, but only |
| 159 | to the extent that any such modifications strengthen, not |
| 160 | weaken, the structural integrity of buildings constructed in |
| 161 | compliance with provisions of the Florida Building Code relating |
| 162 | to wind protection. Standards or criteria referenced by the |
| 163 | selected model codes shall be similarly incorporated by |
| 164 | reference. If a referenced standard or criterion requires |
| 165 | amplification or modification to be appropriate for use in this |
| 166 | state, only the amplification or modification shall be |
| 167 | specifically set forth in the Florida Building Code. The Florida |
| 168 | Building Commission may approve technical amendments to the |
| 169 | code, subject to the requirements of subsections (7) and (8), |
| 170 | after the amendments have been subject to the following |
| 171 | conditions: |
| 172 | (a) The proposed amendment has been published on the |
| 173 | commission's website for a minimum of 45 days and all the |
| 174 | associated documentation has been made available to any |
| 175 | interested party before any consideration by any Technical |
| 176 | Advisory Committee; |
| 177 | (b) In order for a Technical Advisory Committee to make a |
| 178 | favorable recommendation to the commission, the proposal must |
| 179 | receive a three-fourths vote of the members present at the |
| 180 | Technical Advisory Committee meeting and at least half of the |
| 181 | regular members must be present in order to conduct a meeting; |
| 182 | (c) After Technical Advisory Committee consideration and a |
| 183 | recommendation for approval of any proposed amendment, the |
| 184 | proposal must be published on the commission's website for not |
| 185 | less than 45 days before any consideration by the commission; |
| 186 | and |
| 187 | (d) Any proposal may be modified by the commission based |
| 188 | on public testimony and evidence from a public hearing held in |
| 189 | accordance with chapter 120. |
| 190 |
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| 191 | The commission shall incorporate within sections of the Florida |
| 192 | Building Code provisions which address regional and local |
| 193 | concerns and variations, but only to the extent that any such |
| 194 | modifications strengthen, not weaken, the structural integrity |
| 195 | of buildings constructed in compliance with provisions of the |
| 196 | Florida Building Code relating to wind protection. The |
| 197 | commission shall make every effort to minimize conflicts between |
| 198 | the Florida Building Code, the Florida Fire Prevention Code, and |
| 199 | the Life Safety Code. |
| 200 | (13) Each county and municipality in this state shall, at |
| 201 | a minimum, enforce the windborne debris protections and |
| 202 | structural guidelines adopted by the American Society of Civil |
| 203 | Engineers in the standard commonly referred to as ASCE 7-02. |
| 204 | Notwithstanding s. 109, chapter 2000-141, Laws of Florida, the |
| 205 | Florida Building Commission shall amend the Florida Building |
| 206 | Code to require application of ASCE 7-02 throughout the state |
| 207 | and to eliminate all exceptions providing less stringent |
| 208 | requirements. Provisions of the Florida Building Code, including |
| 209 | those contained in referenced standards and criteria, relating |
| 210 | to wind resistance shall not be amended pursuant to this |
| 211 | subsection to diminish construction requirements; however, the |
| 212 | commission may amend the provisions to enhance those |
| 213 | construction requirements. |
| 214 | Section 4. Subsection (2) of section 10 of chapter 2007-1, |
| 215 | Laws of Florida, is amended to read: |
| 216 | Section 10. |
| 217 | (2) The Florida Building Commission shall develop |
| 218 | voluntary "Code Plus" guidelines for increasing the hurricane |
| 219 | resistance of buildings. The guidelines may be modeled on the |
| 220 | requirements for the High Velocity Hurricane Zone and must |
| 221 | identify products, systems, and methods of construction that the |
| 222 | commission anticipates could result in stronger construction. |
| 223 | The commission shall include these guidelines in its report to |
| 224 | the President of the Senate and the Speaker of the House of |
| 225 | Representatives during the 2008 Regular Session of the |
| 226 | Legislature. |
| 227 | Section 5. For the 2007-2008 fiscal year, the nonrecurring |
| 228 | sum of $250,000 is appropriated from the General Revenue Fund |
| 229 | for the purpose of implementing the provisions of this act |
| 230 | relating to the Citizens Property Insurance Corporation Mission |
| 231 | Review Task Force. |
| 232 | Section 6. This act shall take effect upon becoming a law. |