| 1 | A bill to be entitled |
| 2 | An act relating to hurricane damage mitigation programs; |
| 3 | amending s. 215.5586, F.S.; transferring the Florida |
| 4 | Comprehensive Hurricane Damage Mitigation Program from the |
| 5 | Department of Financial Services to the Department of |
| 6 | Community Affairs; redesignating the program as the |
| 7 | Florida Comprehensive Hurricane Damage Mitigation Grant |
| 8 | Program; providing eligibility limitations; expanding |
| 9 | duties of the advisory council; creating s. 215.5587, |
| 10 | F.S.; establishing the Florida Comprehensive Hurricane |
| 11 | Damage Mitigation Sales Tax Exemption or Rebate Program in |
| 12 | the Department of Community Affairs; providing program |
| 13 | requirements; providing for requirements for wind |
| 14 | certification and hurricane mitigation inspections; |
| 15 | providing for an exemption from or a rebate of sales taxes |
| 16 | on certain tangible personal property used for certain |
| 17 | purposes; providing eligibility requirements; providing |
| 18 | limitations; providing for public education and consumer |
| 19 | awareness; requiring the department to seek federal |
| 20 | funding; requiring the department to adopt rules; |
| 21 | requiring the department to coordinate with the Department |
| 22 | of Revenue for exemption or rebate purposes; requiring the |
| 23 | department to develop and maintain a list of private |
| 24 | hurricane damage mitigation contractors; amending s. |
| 25 | 212.08, F.S.; providing an additional exemption from the |
| 26 | sales and use tax for certain tangible personal property |
| 27 | used in hurricane damage mitigation retrofitting projects; |
| 28 | providing an exception; providing an appropriation; |
| 29 | providing an effective date. |
| 30 |
|
| 31 | Be It Enacted by the Legislature of the State of Florida: |
| 32 |
|
| 33 | Section 1. Section 215.5586, Florida Statutes, as amended |
| 34 | by section 4 of chapter 2007-1, Laws of Florida, is amended to |
| 35 | read: |
| 36 | 215.5586 Florida Comprehensive Hurricane Damage Mitigation |
| 37 | Grant Program.--There is established within the Department of |
| 38 | Community Affairs Financial Services the Florida Comprehensive |
| 39 | Hurricane Damage Mitigation Grant Program. This section does not |
| 40 | create an entitlement for property owners or obligate the state |
| 41 | in any way to fund the inspection or retrofitting of residential |
| 42 | property in this state. Implementation of this program is |
| 43 | subject to annual legislative appropriations. The program shall |
| 44 | be administered by an individual with prior executive experience |
| 45 | in the private sector in the areas of insurance, business, or |
| 46 | construction. The program shall develop and implement a |
| 47 | comprehensive and coordinated approach for hurricane damage |
| 48 | mitigation that shall include the following: |
| 49 | (1) WIND CERTIFICATION AND HURRICANE MITIGATION |
| 50 | INSPECTIONS.-- |
| 51 | (a) Free home-retrofit inspections of site-built, |
| 52 | residential property, including single-family, two-family, |
| 53 | three-family, or four-family residential units, shall be offered |
| 54 | to determine what mitigation measures are needed and what |
| 55 | improvements to existing residential properties are needed to |
| 56 | reduce the property's vulnerability to hurricane damage. The |
| 57 | department of Financial Services shall establish a request for |
| 58 | proposals to solicit proposals from wind certification entities |
| 59 | to provide at no cost to homeowners wind certification and |
| 60 | hurricane mitigation inspections. The inspections provided to |
| 61 | homeowners, at a minimum, must include: |
| 62 | 1. A home inspection and report that summarizes the |
| 63 | results and identifies corrective actions a homeowner may take |
| 64 | to mitigate hurricane damage. |
| 65 | 2. A range of cost estimates regarding the mitigation |
| 66 | features. |
| 67 | 3. Insurer-specific information regarding premium |
| 68 | discounts correlated to recommended mitigation features |
| 69 | identified by the inspection. |
| 70 | 4. A hurricane resistance rating scale specifying the |
| 71 | home's current as well as projected wind resistance |
| 72 | capabilities. |
| 73 | (b) To qualify for selection by the department as a |
| 74 | provider of wind certification and hurricane mitigation |
| 75 | inspections, the entity shall, at a minimum: |
| 76 | 1. Use wind certification and hurricane mitigation |
| 77 | inspectors who: |
| 78 | a. Have prior experience in residential construction or |
| 79 | inspection and have received specialized training in hurricane |
| 80 | mitigation procedures. |
| 81 | b. Have undergone drug testing and level 2 background |
| 82 | checks pursuant to s. 435.04. The department is authorized to |
| 83 | conduct criminal record checks of inspectors. Inspectors must |
| 84 | submit a set of the fingerprints to the department for state and |
| 85 | national criminal history checks and must pay the fingerprint |
| 86 | processing fee set forth in s. 624.501. The fingerprints shall |
| 87 | be sent by the department to the Department of Law Enforcement |
| 88 | and forwarded to the Federal Bureau of Investigation for |
| 89 | processing. The results shall be returned to the department for |
| 90 | screening. The fingerprints shall be taken by a law enforcement |
| 91 | agency, designated examination center, or other department- |
| 92 | approved entity. Wind certification and hurricane mitigation |
| 93 | inspectors participating in the program on the effective date of |
| 94 | this act shall have until June 1, 2007, to meet the requirements |
| 95 | for a criminal record check. |
| 96 | c. Have been certified, in a manner satisfactory to the |
| 97 | department, to conduct the inspections. |
| 98 | 2. Provide a quality assurance program including a |
| 99 | reinspection component. |
| 100 | (2) GRANTS.--Financial grants shall be used to encourage |
| 101 | single-family, site-built, owner-occupied, residential property |
| 102 | owners to retrofit their properties to make them less vulnerable |
| 103 | to hurricane damage. |
| 104 | (a) To be eligible for a grant, a residential property |
| 105 | must: |
| 106 | 1. Have been granted a homestead exemption under chapter |
| 107 | 196. |
| 108 | 2. Be a dwelling with an insured value of $500,000 or |
| 109 | less. Homeowners who are low-income persons, as defined in s. |
| 110 | 420.0004(10), are exempt from this requirement. |
| 111 | 3. Have undergone an acceptable wind certification and |
| 112 | hurricane mitigation inspection, if the property is an existing |
| 113 | structure. |
| 114 |
|
| 115 | A residential property which is part of a multifamily |
| 116 | residential unit may receive a grant only if all homeowners |
| 117 | participate and the total number of units does not exceed four. |
| 118 | (b) All grants must be matched on a dollar-for-dollar |
| 119 | basis for a total of $10,000 for the mitigation project with the |
| 120 | state's contribution not to exceed $5,000. |
| 121 | (c) The program shall create a process in which mitigation |
| 122 | contractors agree to participate and seek reimbursement from the |
| 123 | state and homeowners select from a list of participating |
| 124 | contractors. All mitigation must be based upon the securing of |
| 125 | all required local permits and inspections. Mitigation projects |
| 126 | are subject to random reinspection of up to at least 10 percent |
| 127 | of all projects. |
| 128 | (d) Matching fund grants shall also be made available to |
| 129 | local governments and nonprofit entities for projects that will |
| 130 | reduce hurricane damage to single-family, site-built, owner- |
| 131 | occupied, residential property. |
| 132 | (e) Grants may be used for the following improvements: |
| 133 | 1. Roof deck attachment. |
| 134 | 2. Secondary water barrier. |
| 135 | 3. Roof covering. |
| 136 | 4. Brace gable ends. |
| 137 | 5. Reinforce roof-to-wall connections. |
| 138 | 6. Opening protection. |
| 139 | 7. Exterior doors, including garage doors. |
| 140 | (f) Grants may be used on a previously inspected existing |
| 141 | structure or on a rebuild. A rebuild is defined as a site-built, |
| 142 | single-family dwelling under construction to replace a home that |
| 143 | was destroyed or significantly damaged by a hurricane and deemed |
| 144 | unlivable by a regulatory authority. The homeowner must have had |
| 145 | a homestead exemption prior to the hurricane and maintained the |
| 146 | homestead exemption. |
| 147 | (g) Low-income homeowners, as defined in s. 420.0004(10), |
| 148 | who otherwise meet the requirements of paragraphs (a), (c), (e), |
| 149 | and (f) are eligible for a grant of up to $5,000 and are not |
| 150 | required to provide a matching amount to receive the grant. |
| 151 | Additionally, for low-income homeowners, grant funding may be |
| 152 | used for repair to existing structures leading to any of the |
| 153 | mitigation improvements provided in paragraph (e), limited to 20 |
| 154 | percent of the grant value. |
| 155 | (h) Any person receiving a grant under this section is not |
| 156 | eligible to receive a sales tax rebate under s. 215.5587. |
| 157 | (3) EDUCATION AND CONSUMER AWARENESS.--Multimedia public |
| 158 | education, awareness, and advertising efforts designed to |
| 159 | specifically address mitigation techniques shall be employed, as |
| 160 | well as a component to support ongoing consumer resources and |
| 161 | referral services. |
| 162 | (4) ADVISORY COUNCIL.--There is created an advisory |
| 163 | council to provide advice and assistance to the program |
| 164 | administrator with regard to his or her administration of the |
| 165 | program and the tax rebate program under s. 215.5587. The |
| 166 | advisory council shall consist of: |
| 167 | (a) A representative of lending institutions, selected by |
| 168 | the Financial Services Commission from a list of at least three |
| 169 | persons recommended by the Florida Bankers Association. |
| 170 | (b) A representative of residential property insurers, |
| 171 | selected by the Financial Services Commission from a list of at |
| 172 | least three persons recommended by the Florida Insurance |
| 173 | Council. |
| 174 | (c) A representative of home builders, selected by the |
| 175 | Financial Services Commission from a list of at least three |
| 176 | persons recommended by the Florida Home Builders Association. |
| 177 | (d) A faculty member of a state university, selected by |
| 178 | the Financial Services Commission, who is an expert in |
| 179 | hurricane-resistant construction methodologies and materials. |
| 180 | (e) Two members of the House of Representatives, selected |
| 181 | by the Speaker of the House of Representatives. |
| 182 | (f) Two members of the Senate, selected by the President |
| 183 | of the Senate. |
| 184 | (g) The Chief Executive Officer of the Federal Alliance |
| 185 | for Safe Homes, Inc., or his or her designee. |
| 186 | (h) The senior officer of the Florida Hurricane |
| 187 | Catastrophe Fund. |
| 188 | (i) The executive director of Citizens Property Insurance |
| 189 | Corporation. |
| 190 | (j) The director of the Division of Emergency Management |
| 191 | of the department of Community Affairs. |
| 192 |
|
| 193 | Members appointed under paragraphs (a)-(d) shall serve at the |
| 194 | pleasure of the Secretary of Community Affairs Financial |
| 195 | Services Commission. Members appointed under paragraphs (e) and |
| 196 | (f) shall serve at the pleasure of the appointing officer. All |
| 197 | other members shall serve voting ex officio. Members of the |
| 198 | advisory council shall serve without compensation but may |
| 199 | receive reimbursement as provided in s. 112.061 for per diem and |
| 200 | travel expenses incurred in the performance of their official |
| 201 | duties. Vacancies on the advisory council under paragraphs (a)- |
| 202 | (d) shall be filled by the Secretary of Community Affairs in the |
| 203 | same manner as original appointments to the council were made. |
| 204 | (5) FEDERAL FUNDING.--The department shall use its best |
| 205 | efforts to obtain grants or funds from the Federal Government to |
| 206 | supplement the financial resources of the program. |
| 207 | (6) RULES.--The department of Financial Services shall |
| 208 | adopt rules pursuant to ss. 120.536(1) and 120.54 governing the |
| 209 | Florida Comprehensive Hurricane Damage Mitigation Grant Program. |
| 210 | The department shall also adopt rules establishing priorities |
| 211 | for grants provided under this section based on objective |
| 212 | criteria that gives priority to reducing the state's probable |
| 213 | maximum loss from hurricanes. However, pursuant to this overall |
| 214 | goal, the department may further establish priorities based on |
| 215 | the insured value of the dwelling, whether or not the dwelling |
| 216 | is insured by Citizens Property Insurance Corporation and |
| 217 | whether or not the area under consideration has sufficient |
| 218 | resources and the ability to perform the retrofitting required. |
| 219 | (7) CONTRACTS WITH NOT-FOR-PROFIT CORPORATIONS.--The |
| 220 | department may of Financial Services is authorized to contract |
| 221 | with not-for-profit corporations to conduct all or portions of |
| 222 | the program and to increase the awareness of the benefits of |
| 223 | mitigation among homeowners in this state. The department shall |
| 224 | consider the not-for-profit corporation's ability to raise funds |
| 225 | from the private sector to provide for mitigation grants, as |
| 226 | well as administrative capabilities for conducting other |
| 227 | business related to the program. |
| 228 | (8) WIND CERTIFICATION AND HURRICANE MITIGATION INSPECTOR |
| 229 | LIST.--The department shall develop and maintain as a public |
| 230 | record a current list of wind certification and hurricane |
| 231 | mitigation inspectors authorized to conduct wind certification |
| 232 | and hurricane mitigation inspections pursuant to this section. |
| 233 | Section 2. Section 215.5587, Florida Statutes, is created |
| 234 | to read: |
| 235 | 215.5587 Florida Comprehensive Hurricane Damage Mitigation |
| 236 | Sales Tax Exemption or Rebate Program.--There is established |
| 237 | within the Department of Community Affairs the Florida |
| 238 | Comprehensive Hurricane Damage Mitigation Sales Tax Exemption or |
| 239 | Rebate Program. The program shall be implemented by private |
| 240 | mitigation contractors with prior experience in the private |
| 241 | sector in the area of insurance, business, or construction. The |
| 242 | program shall develop and implement a comprehensive and |
| 243 | coordinated approach for hurricane damage mitigation that shall |
| 244 | include the following: |
| 245 | (1) WIND CERTIFICATION AND HURRICANE MITIGATION |
| 246 | INSPECTIONS.-- |
| 247 | (a) Free retrofit inspections of any property shall be |
| 248 | offered to determine what mitigation measures are needed and |
| 249 | what improvements to existing properties are needed to reduce |
| 250 | the property's vulnerability to hurricane damage. The department |
| 251 | shall establish a request for proposals to solicit proposals |
| 252 | from wind certification entities to provide wind certification |
| 253 | and hurricane mitigation inspections at no cost to property |
| 254 | owners. The inspections provided to property owners, at a |
| 255 | minimum, must include: |
| 256 | 1. A property inspection and report that summarizes the |
| 257 | results and identifies corrective actions a property owner may |
| 258 | take to mitigate hurricane damage. |
| 259 | 2. A range of cost estimates regarding the mitigation |
| 260 | features. |
| 261 | 3. Insurer-specific information regarding premium |
| 262 | discounts correlated to recommended mitigation features |
| 263 | identified by the inspection. |
| 264 | 4. A hurricane resistance rating scale specifying the |
| 265 | property's current as well as projected wind resistance |
| 266 | capabilities. |
| 267 | (b) To qualify for selection by the department as a |
| 268 | provider of wind certification and hurricane mitigation |
| 269 | inspections, an entity shall, at a minimum: |
| 270 | 1. Use wind certification and hurricane mitigation |
| 271 | inspectors who: |
| 272 | a. Have prior experience in construction or inspection and |
| 273 | have received specialized training in hurricane mitigation |
| 274 | procedures. |
| 275 | b. Have undergone drug testing and level 2 background |
| 276 | screening pursuant to s. 435.04. The department is authorized to |
| 277 | conduct criminal record checks of inspectors. Inspectors must |
| 278 | submit a set of the fingerprints to the department for state and |
| 279 | national criminal history checks and must pay the fingerprint |
| 280 | processing fee set forth in s. 624.501. The fingerprints shall |
| 281 | be sent by the department to the Department of Law Enforcement |
| 282 | and forwarded to the Federal Bureau of Investigation for |
| 283 | processing. The results shall be returned to the department for |
| 284 | screening. The fingerprints shall be taken by a law enforcement |
| 285 | agency, designated examination center, or other department- |
| 286 | approved entity. Wind certification and hurricane mitigation |
| 287 | inspectors participating in the program on the effective date of |
| 288 | this act shall have until June 1, 2008, to meet the requirements |
| 289 | for a criminal record check. |
| 290 | c. Have been certified, in a manner satisfactory to the |
| 291 | department, to conduct the inspections. |
| 292 | 2. Provide a quality assurance program, including a |
| 293 | reinspection component. |
| 294 | (2) SALES TAX EXEMPTION OR REBATE.--Tangible personal |
| 295 | property purchased by a private hurricane damage mitigation |
| 296 | contractor for use in retrofitting property to mitigate |
| 297 | hurricane damage shall be exempt from the tax imposed under |
| 298 | chapter 212 or shall be subject to a rebate from the Department |
| 299 | of Revenue to the owner of such property, as provided in this |
| 300 | section, to encourage property owners to retrofit their |
| 301 | properties to make the properties less vulnerable to hurricane |
| 302 | damage. In order to purchase tangible personal property exempt |
| 303 | from the tax imposed by chapter 212, a contractor shall possess |
| 304 | a valid exemption certificate as provided in chapter 212. |
| 305 | (a)1. To be eligible for a rebate, a property that is an |
| 306 | existing structure must have undergone an acceptable wind |
| 307 | certification and hurricane mitigation inspection. |
| 308 | 2.a. A residential property that is part of a multifamily |
| 309 | residential unit may receive a rebate only if all homeowners |
| 310 | participate and the total number of units does not exceed four. |
| 311 | b. The owners of a commercial property that consists of |
| 312 | more than one unit may receive a rebate only if all business |
| 313 | owners of the property participate. |
| 314 | (b) The total amount of the exemption or rebate for an |
| 315 | individual property shall not exceed $5,000. |
| 316 | (c) The program shall create a process in which private |
| 317 | mitigation contractors agree to provide wind certification and |
| 318 | hurricane damage inspections and contract with property owners |
| 319 | to retrofit properties to mitigate damage from hurricanes. All |
| 320 | mitigation must be based upon the securing of all required local |
| 321 | permits and inspections. Mitigation projects are subject to |
| 322 | random reinspection of at least 10 percent of all projects. |
| 323 | (d) Sales tax exemptions or rebates may be claimed for the |
| 324 | following improvements: |
| 325 | 1. Roof deck attachment. |
| 326 | 2. Secondary water barrier. |
| 327 | 3. Roof covering. |
| 328 | 4. Brace gable ends. |
| 329 | 5. Reinforce roof-to-wall connections. |
| 330 | 6. Opening protection. |
| 331 | 7. Exterior doors, including garage doors. |
| 332 | (e) Sales tax exemptions or rebates may be claimed on a |
| 333 | previously inspected existing structure or on a rebuild. The |
| 334 | term "rebuild" means a site-built facility under construction to |
| 335 | replace a structure that was destroyed or significantly damaged |
| 336 | by a hurricane and deemed unlivable or unusable by a regulatory |
| 337 | authority. |
| 338 | (f)1. A person who receives a rebate of sales taxes under |
| 339 | this section is not eligible to receive a grant under s. |
| 340 | 215.5586. |
| 341 | 2. A person who receives a grant under s. 215.5586 is not |
| 342 | eligible to receive a rebate under this section. |
| 343 | 3. Tangible personal property purchased by a contractor |
| 344 | under contract with a property owner who has received a grant |
| 345 | under s. 215.5586 is not exempt from the tax imposed by chapter |
| 346 | 212. |
| 347 | 4. The provisions governing refunds under s. 212.095 shall |
| 348 | apply to rebates under this section. |
| 349 | (3) EDUCATION AND CONSUMER AWARENESS.--Multimedia public |
| 350 | education, awareness, and advertising efforts designed to |
| 351 | specifically address mitigation techniques shall be employed, as |
| 352 | well as a component to support ongoing consumer resources and |
| 353 | referral services. |
| 354 | (4) FEDERAL FUNDING.--The department shall use its best |
| 355 | efforts to obtain grants or funds from the Federal Government to |
| 356 | supplement the financial resources of the program. |
| 357 | (5) RULES.--The department shall adopt rules pursuant to |
| 358 | ss. 120.536(1) and 120.54 governing the Florida Comprehensive |
| 359 | Hurricane Damage Mitigation Sales Tax Exemption or Rebate |
| 360 | Program. The department shall coordinate with the Department of |
| 361 | Revenue in administering sales tax exemptions or rebates under |
| 362 | the program. |
| 363 | (6) PRIVATE HURRICANE MITIGATION CONTRACTOR LIST.--In |
| 364 | addition to the requirements of s. 215.5586(8), the department |
| 365 | shall develop and maintain as a public record a current list of |
| 366 | private hurricane damage mitigation contractors authorized by |
| 367 | the department to retrofit properties to make them less |
| 368 | vulnerable to hurricane damage in accordance with this section. |
| 369 | Section 3. Paragraph (eee) is added to subsection (7) of |
| 370 | section 212.08, Florida Statutes, to read: |
| 371 | 212.08 Sales, rental, use, consumption, distribution, and |
| 372 | storage tax; specified exemptions.--The sale at retail, the |
| 373 | rental, the use, the consumption, the distribution, and the |
| 374 | storage to be used or consumed in this state of the following |
| 375 | are hereby specifically exempt from the tax imposed by this |
| 376 | chapter. |
| 377 | (7) MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any |
| 378 | entity by this chapter do not inure to any transaction that is |
| 379 | otherwise taxable under this chapter when payment is made by a |
| 380 | representative or employee of the entity by any means, |
| 381 | including, but not limited to, cash, check, or credit card, even |
| 382 | when that representative or employee is subsequently reimbursed |
| 383 | by the entity. In addition, exemptions provided to any entity by |
| 384 | this subsection do not inure to any transaction that is |
| 385 | otherwise taxable under this chapter unless the entity has |
| 386 | obtained a sales tax exemption certificate from the department |
| 387 | or the entity obtains or provides other documentation as |
| 388 | required by the department. Eligible purchases or leases made |
| 389 | with such a certificate must be in strict compliance with this |
| 390 | subsection and departmental rules, and any person who makes an |
| 391 | exempt purchase with a certificate that is not in strict |
| 392 | compliance with this subsection and the rules is liable for and |
| 393 | shall pay the tax. The department may adopt rules to administer |
| 394 | this subsection. |
| 395 | (eee) Tangible personal property purchased for hurricane |
| 396 | damage mitigation retrofitting projects.--Also exempt from the |
| 397 | tax imposed by this chapter is tangible personal property |
| 398 | purchased by a private hurricane damage mitigation contractor |
| 399 | for purposes of retrofitting property to make the property less |
| 400 | vulnerable to damage from a hurricane, as provided in s. |
| 401 | 215.5587, unless the owner of the property being retrofitted as |
| 402 | provided in s. 215.5587 has received a grant under s. 215.5586. |
| 403 | Section 4. The sum of $3 million is appropriated from the |
| 404 | General Revenue Fund to the Department of Community Affairs for |
| 405 | purposes of administering the Florida Comprehensive Hurricane |
| 406 | Damage Mitigation Sales Tax Exemption or Rebate Program as |
| 407 | provided in s. 215.5587, Florida Statutes. |
| 408 | Section 5. This act shall take effect July 1, 2007. |