Senate Bill sb1864c2

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    Florida Senate - 2007                    CS for CS for SB 1864

    By the Committees on Community Affairs; Banking and Insurance;
    and Senator Posey




    578-2536-07

  1                      A bill to be entitled

  2         An act relating to hurricane damage mitigation;

  3         amending s. 215.5586, F.S.; redesignating the

  4         Florida Comprehensive Hurricane Damage

  5         Mitigation Program as the "My Safe Florida Home

  6         Program"; providing additional duties of the

  7         Department of Financial Services; revising

  8         criteria and requirements for hurricane

  9         mitigation inspections; requiring the

10         department to contract with certain entities to

11         provide hurricane mitigation inspections;

12         revising the requirements for such inspections;

13         providing for a hurricane resistance rating

14         scale as adopted by the Financial Services

15         Commission; revising the requirements for an

16         entity to be selected by the department to

17         perform inspections; providing qualification

18         requirements for certain licensed

19         professionals; providing requirements for a

20         homeowner with respect to applying for an

21         inspection; revising requirements for

22         mitigation grants; limiting the purposes for

23         which a grant may be used; providing for

24         priorities of grants; requiring the department

25         to develop a grant applications verification

26         and collection process; authorizing the

27         department to undertake a statewide consumer

28         information campaign; requiring the advisory

29         council to advise and assist the department in

30         administering the program; expanding the

31         department's authorization to enhance financial

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 1         resource funding of the program; revising the

 2         department's rulemaking authority; deleting

 3         provisions authorizing the department to

 4         contract with not-for-profit corporations;

 5         requiring the department to maintain a list of

 6         authorized hurricane mitigation inspectors;

 7         authorizing the department to develop a

 8         no-interest loan program; providing program

 9         requirements and limitations; requiring the

10         department to pay certain creditors from funds

11         appropriated for the program; providing loan

12         eligibility criteria; authorizing the

13         department to set aside certain funds for

14         program purposes; requiring the department to

15         adopt rules; providing for public outreach for

16         contractors, real estate brokers, and licensed

17         sales associates; authorizing the department to

18         contract for grants management, inspection

19         services, education outreach, and auditing

20         services; providing additional legislative

21         intent; requiring the department to make annual

22         reports to the Legislature concerning the

23         program; providing report requirements;

24         amending s. 489.115, F.S.; including wind

25         mitigation methodologies under certain

26         continuing education requirements for

27         contractors; amending ss. 4, 39, and 42 of ch.

28         2006-12, Laws of Florida; providing conforming

29         changes to the redesignation of the Florida

30         Comprehensive Hurricane Damage Mitigation

31         Program; providing legislative intent;

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    Florida Senate - 2007                    CS for CS for SB 1864
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 1         requiring the Office of Insurance Regulation,

 2         in consultation with the Department of

 3         Community Affairs and the Florida Building

 4         Commission, to conduct wind-loss mitigation

 5         studies; providing requirements for the

 6         studies; requiring a report to the Governor,

 7         the Legislature, the Chief Financial Officer,

 8         and the Commissioner of Insurance Regulation;

 9         creating s. 553.844, F.S.; providing

10         legislative findings concerning the need to

11         prevent property damage caused by hurricanes;

12         requiring the Florida Building Commission to

13         adopt amendments to the Florida Building Code,

14         including requirements for certain buildings

15         constructed before the implementation of the

16         code; providing requirements for such

17         amendments; providing requirements for

18         buildings located in a wind-borne debris

19         region; amending s. 627.351, F.S.; requiring

20         that a residential structure located in a

21         wind-borne debris region have certain opening

22         protections required under the Florida Building

23         Code in order to be eligible for coverage by

24         the Citizens Property Insurance Corporation;

25         providing an effective date.

26  

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

28  

29         Section 1.  Section 215.5586, Florida Statutes, is

30  amended to read:

31  

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 1         215.5586  My Safe Florida Home Comprehensive Hurricane

 2  Damage Mitigation Program.--There is established within the

 3  Department of Financial Services the My Safe Florida Home

 4  Comprehensive Hurricane Damage Mitigation Program. The

 5  department shall provide fiscal accountability, contract

 6  management, and strategic leadership for the program,

 7  consistent with this section. This section does not create an

 8  entitlement for property owners or obligate the state in any

 9  way to fund the inspection or retrofitting of residential

10  property in this state. Implementation of this program is

11  subject to annual legislative appropriations. The program

12  shall be administered by an individual with prior executive

13  experience in the private sector in the areas of insurance,

14  business, or construction. The program shall develop and

15  implement a comprehensive and coordinated approach for

16  hurricane damage mitigation that shall include the following:

17         (1)  WIND CERTIFICATION AND HURRICANE MITIGATION

18  INSPECTIONS.--

19         (a)  Free home-retrofit inspections of site-built,

20  single-family, residential property, including single-family,

21  two-family, three-family, or four-family residential units,

22  shall be offered throughout the state to determine what

23  mitigation measures are needed, what insurance premium

24  discounts may be available, and what improvements to existing

25  residential properties are needed to reduce the property's

26  vulnerability to hurricane damage. The Department of Financial

27  Services shall contract with establish a request for proposals

28  to solicit proposals from wind certification entities to

29  provide free at no cost to homeowners wind certification and

30  hurricane mitigation inspections. The inspections provided to

31  homeowners, at a minimum, must include:

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 1         1.  A home inspection and report that summarizes the

 2  results and identifies recommended improvements corrective

 3  actions a homeowner may take to mitigate hurricane damage.

 4         2.  A range of cost estimates regarding the recommended

 5  mitigation improvements features.

 6         3.  Insurer-specific information regarding premium

 7  discounts correlated to the current mitigation features and

 8  the recommended mitigation improvements features identified by

 9  the inspection.

10         4.  A hurricane resistance rating scale specifying the

11  home's current as well as projected wind resistance

12  capabilities. As soon as practical, the rating scale must be

13  the uniform home grading scale adopted by the Financial

14  Services Commission pursuant to s. 40 of chapter 2007-1, Laws

15  of Florida.

16         (b)  To qualify for selection by the department as a

17  provider of wind certification entity to provide and hurricane

18  mitigation inspections, the entity shall, at a minimum:

19         1.  Use wind certification and hurricane mitigation

20  inspectors who:

21         a.  Have prior experience in residential construction

22  or inspection and have received specialized training in

23  hurricane mitigation procedures. Such training may be provided

24  by a class offered online or in person.

25         b.  Have undergone drug testing and level 2 background

26  checks pursuant to s. 435.04. The department is authorized to

27  conduct criminal record checks of inspectors used by wind

28  certification entities. Inspectors must submit a set of the

29  fingerprints to the department for state and national criminal

30  history checks and must pay the fingerprint processing fee set

31  forth in s. 624.501. The fingerprints shall be sent by the

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 1  department to the Department of Law Enforcement and forwarded

 2  to the Federal Bureau of Investigation for processing. The

 3  results shall be returned to the department for screening. The

 4  fingerprints shall be taken by a law enforcement agency,

 5  designated examination center, or other department-approved

 6  entity. Wind certification and Hurricane mitigation inspectors

 7  participating in the program on January 25, 2007, the

 8  effective date of this act shall have until June 1, 2007, to

 9  meet the requirements for a criminal record check.

10         c.  Have been certified, in a manner satisfactory to

11  the department, to conduct the inspections.

12         2.  Provide a quality assurance program including a

13  reinspection component.

14         (c)  The requirements of subparagraph (b)1. do not

15  apply to an individual who:

16         1.  Holds an active and current license as a:

17         a.  Division I contractor under chapter 489.

18         b.  Building code administrator or building code

19  inspector under chapter 468;

20         c.  Architect under part I of chapter 481; or

21         d.  Engineer under chapter 471; and

22         2.  Completes a 2-hour course on the program provided

23  or approved by the department, available online or in person.

24         (d)  An application for an inspection must contain a

25  signed or electronically verified statement made under penalty

26  of perjury that the applicant has submitted only a single

27  application for that home.

28         (e)  The owner of a site-built, single-family,

29  residential property may apply for and receive an inspection

30  without also applying for a grant pursuant to subsection (2)

31  and without meeting the requirements of paragraph (2)(a).

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 1         (2)  MITIGATION GRANTS.--Financial grants shall be used

 2  to encourage single-family, site-built, owner-occupied,

 3  residential property owners to retrofit their properties to

 4  make them less vulnerable to hurricane damage.

 5         (a)  To be eligible for a grant for persons who have

 6  obtained a completed inspection after May 1, 2007, a

 7  residential property must:

 8         1.  Have been granted a homestead exemption under

 9  chapter 196.

10         2.  Be a dwelling having a just valuation for purposes

11  of ad valorem property taxation of $300,000 with an insured

12  value of $500,000 or less. Homeowners who are low-income

13  persons, as defined in s. 420.0004(10), are exempt from this

14  requirement.

15         3.  Have undergone an acceptable wind certification and

16  hurricane mitigation inspection, if the property is an

17  existing structure.

18         4.  Be located in the "wind-borne debris region" as

19  that term is defined in s. 1609.2, International Building Code

20  (2006).

21         5.  Be a home for which the building permit application

22  for initial construction was made before March 1, 2002.

23  

24  An application for a grant must contain a signed or

25  electronically verified statement made under penalty of

26  perjury that the applicant has submitted only a single

27  application and must have attached documents demonstrating the

28  applicant meets the requirements of this paragraph. A

29  residential property which is part of a multifamily

30  residential unit may receive a grant only if all homeowners

31  

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 1  participate and the total number of units does not exceed

 2  four.

 3         (b)  All grants are limited to 25 percent of the actual

 4  cost of the must be matched on a dollar-for-dollar basis for a

 5  total of $10,000 for the mitigation project with the state's

 6  contribution not to exceed $2,500 $5,000.

 7         (c)  The program shall create a process in which

 8  mitigation contractors agree to participate and seek

 9  reimbursement from the state and homeowners select from a list

10  of participating contractors. All mitigation must be based

11  upon the securing of all required local permits and

12  inspections and must be performed by properly licensed

13  contractors. Mitigation projects are subject to random

14  reinspection of up to at least 5 10 percent of all projects.

15         (d)  Matching fund grants shall also be made available

16  to local governments and nonprofit entities for projects that

17  will reduce hurricane damage to single-family, site-built,

18  owner-occupied, residential property. The department shall

19  liberally construe those requirements in favor of availing the

20  state of the opportunity to leverage funding for the My Safe

21  Florida Home Program with other sources of funding.

22         (e)  When recommended by a hurricane mitigation

23  inspection, grants may be used for the following improvements

24  only:

25         1.  Roof deck attachment.

26         2.  Secondary water barrier.

27         3.  Roof covering.

28         4.  Brace gable ends.

29         5.  Reinforce roof-to-wall connections.

30         1.6.  Opening protection.

31         2.7.  Exterior doors, including garage doors.

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 1         3.  Brace gable ends.

 2         (f)  Grants may be used on a previously inspected

 3  existing structure or on a rebuild. A rebuild is defined as a

 4  site-built, single-family dwelling under construction to

 5  replace a home that was destroyed or significantly damaged by

 6  a hurricane and deemed unlivable by a regulatory authority.

 7  The homeowner must be a low-income homeowner as defined in

 8  paragraph (g), must have had a homestead exemption for that

 9  home prior to the hurricane, and must be intending to rebuild

10  the home as that homeowner's homestead and maintained the

11  homestead exemption.

12         (g)  Low-income homeowners, as defined in s.

13  420.0004(10), who otherwise meet the requirements of

14  paragraphs (a), (c), (e), and (f) are eligible for a grant of

15  up to $2,500 $5,000 and are not required to provide a matching

16  amount to receive the grant. Additionally, for low-income

17  homeowners, grant funding may be used for repair to existing

18  structures leading to any of the mitigation improvements

19  provided in paragraph (e), limited to 20 percent of the grant

20  value. The program may accept a certification directly from a

21  low-income homeowner that the homeowner meets the requirements

22  of s. 420.0004(10) if the homeowner provides such

23  certification in a signed or electronically verified statement

24  made under penalty of perjury.

25         (h)  The department shall establish objective,

26  reasonable criteria for prioritizing grant applications,

27  consistent with the requirements of this section.

28         (i)  The department shall develop a process that

29  ensures the most efficient means to collect and verify grant

30  applications to determine eligibility and may direct hurricane

31  mitigation inspectors to collect and verify grant application

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 1  information or use the Internet or other electronic means to

 2  collect information and determine eligibility.

 3         (3)  EDUCATION AND CONSUMER AWARENESS.--The department

 4  may undertake a statewide multimedia public outreach and

 5  advertising campaign to inform consumers of the availability

 6  and benefits of hurricane inspections and of the safety and

 7  financial benefits of residential hurricane damage mitigation.

 8  The department may seek out and use local, state, federal, and

 9  private funds to support the campaign. Multimedia public

10  education, awareness, and advertising efforts designed to

11  specifically address mitigation techniques shall be employed,

12  as well as a component to support ongoing consumer resources

13  and referral services.

14         (4)  ADVISORY COUNCIL.--There is created an advisory

15  council to provide advice and assistance to the department

16  regarding program administrator with regard to his or her

17  administration of the program. The advisory council shall

18  consist of:

19         (a)  A representative of lending institutions, selected

20  by the Financial Services Commission from a list of at least

21  three persons recommended by the Florida Bankers Association.

22         (b)  A representative of residential property insurers,

23  selected by the Financial Services Commission from a list of

24  at least three persons recommended by the Florida Insurance

25  Council.

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

27  Financial Services Commission from a list of at least three

28  persons recommended by the Florida Home Builders Association.

29         (d)  A faculty member of a state university, selected

30  by the Financial Services Commission, who is an expert in

31  hurricane-resistant construction methodologies and materials.

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 1         (e)  Two members of the House of Representatives,

 2  selected by the Speaker of the House of Representatives.

 3         (f)  Two members of the Senate, selected by the

 4  President of the Senate.

 5         (g)  The Chief Executive Officer of the Federal

 6  Alliance for Safe Homes, Inc., or his or her designee.

 7         (h)  The senior officer of the Florida Hurricane

 8  Catastrophe Fund.

 9         (i)  The executive director of Citizens Property

10  Insurance Corporation.

11         (j)  The director of the Division of Emergency

12  Management of the Department of Community Affairs.

13  

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

15  pleasure of the Financial Services Commission. Members

16  appointed under paragraphs (e) and (f) shall serve at the

17  pleasure of the appointing officer. All other members shall

18  serve voting ex officio. Members of the advisory council shall

19  serve without compensation but may receive reimbursement as

20  provided in s. 112.061 for per diem and travel expenses

21  incurred in the performance of their official duties.

22         (5)  FEDERAL FUNDING.--The department may seek out and

23  leverage local, state, federal, or private funds to enhance

24  shall use its best efforts to obtain grants or funds from the

25  federal government to supplement the financial resources of

26  the program.

27         (6)  RULES.--The Department of Financial Services shall

28  adopt rules pursuant to ss. 120.536(1) and 120.54 to govern

29  governing the Florida Comprehensive Hurricane Damage

30  Mitigation program, implement the provisions of this section,

31  including rules governing hurricane mitigation inspections,

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 1  mitigation contractors, and training of inspectors and

 2  contractors, and carry out the duties of the department under

 3  this section. The department shall also adopt rules

 4  establishing priorities for grants provided under this section

 5  based on objective criteria that gives priority to reducing

 6  the state's probable maximum loss from hurricanes. However,

 7  pursuant to this overall goal, the department may further

 8  establish priorities based on the insured value of the

 9  dwelling, whether or not the dwelling is insured by Citizens

10  Property Insurance Corporation and whether or not the area

11  under consideration has sufficient resources and the ability

12  to perform the retrofitting required.

13         (7)  CONTRACTS WITH NOT-FOR-PROFIT CORPORATIONS.--The

14  Department of Financial Services is authorized to contract

15  with not-for-profit corporations to conduct all or portions of

16  the program and to increase the awareness of the benefits of

17  mitigation among homeowners in this state. The department

18  shall consider the not-for-profit corporation's ability to

19  raise funds from the private sector to provide for mitigation

20  grants, as well as administrative capabilities for conducting

21  other business related to the program.

22         (7)(8)  WIND CERTIFICATION AND HURRICANE MITIGATION

23  INSPECTOR LIST.--The department shall develop and maintain as

24  a public record a current list of wind certification and

25  hurricane mitigation inspectors authorized to conduct wind

26  certification and hurricane mitigation inspections pursuant to

27  this section.

28         (8)  NO-INTEREST LOANS.--The department may develop a

29  no-interest loan program by December 31, 2007, to encourage

30  the private sector to provide loans to owners of site-built,

31  single-family, residential property to pay for mitigation

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 1  measures listed in subsection (2). A loan eligible for

 2  interest payments pursuant to this subsection may be for a

 3  term of up to 3 years and cover up to $5,000 in mitigation

 4  measures. The department shall pay the creditor the market

 5  rate of interest using funds appropriated for the My Safe

 6  Florida Home program. In no case shall the department pay more

 7  than the interest rate set by s. 687.03. To be eligible for a

 8  loan, a loan applicant must first obtain a home inspection and

 9  report that specifies what improvements are needed to reduce

10  the property's vulnerability to windstorm damage pursuant to

11  this section and meet loan underwriting requirements set by

12  the lender. The department may set aside up to $10 million

13  from funds appropriated for the My Safe Florida Home program

14  to implement this subsection. The department shall adopt rules

15  pursuant to ss. 120.36(1) and 120.54 to implement this

16  subsection which may include eligibility criteria.

17         (9)  PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE

18  BROKERS AND SALES ASSOCIATES.--The program shall develop

19  brochures for distribution to general contractors, roofing

20  contractors, and real estate brokers and sales associates

21  licensed under part I of chapter 475 explaining the benefits

22  to homeowners of residential hurricane damage mitigation. The

23  program shall encourage contractors to distribute the

24  brochures to homeowners at the first meeting with a homeowner

25  who is considering contracting for home or roof repairs or

26  contracting for the construction of a new home. The program

27  shall encourage real estate brokers and sales associates

28  licensed under part I of chapter 475 to distribute the

29  brochures to clients prior to the purchase of a home. The

30  brochures may be made available electronically.

31  

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 1         (10)  CONTRACT MANAGEMENT.--The department may contract

 2  with third parties for grants management, inspection services,

 3  educational outreach, and auditing services. Such contracts

 4  shall be considered direct costs of the program and shall not

 5  be subject to administrative cost limits, but contracts valued

 6  at $500,000 or more shall be subject to review and approval by

 7  the Legislative Budget Commission. The department shall

 8  contract with providers that have a demonstrated record of

 9  successful business operations in areas directly related to

10  the services to be provided and shall ensure the highest

11  accountability for use of state funds, consistent with this

12  section.

13         (11)  INTENT.--It is the intent of the Legislature that

14  grants made to residential property owners under this section

15  shall be considered disaster-relief assistance within the

16  meaning of s. 139 of the Internal Revenue Code of 1986, as

17  amended.

18         (12)  REPORTS.--The department shall make an annual

19  report on the activities of the program that shall account for

20  the use of state funds and indicate the number of inspections

21  requested, the number of inspections performed, the number of

22  grant applications received, and the number and value of

23  grants approved. The report shall be delivered to the

24  President of the Senate and the Speaker of the House of

25  Representatives by February 1 of each year.

26         Section 2.  Paragraph (b) of subsection (4) of section

27  489.115, Florida Statutes, is amended to read:

28         489.115  Certification and registration; endorsement;

29  reciprocity; renewals; continuing education.--

30         (4)

31  

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 1         (b)1.  Each certificateholder or registrant shall

 2  provide proof, in a form established by rule of the board,

 3  that the certificateholder or registrant has completed at

 4  least 14 classroom hours of at least 50 minutes each of

 5  continuing education courses during each biennium since the

 6  issuance or renewal of the certificate or registration. The

 7  board shall establish by rule that a portion of the required

 8  14 hours must deal with the subject of workers' compensation,

 9  business practices, and workplace safety, and, for applicable

10  licensure categories, wind mitigation methodologies. The board

11  shall by rule establish criteria for the approval of

12  continuing education courses and providers, including

13  requirements relating to the content of courses and standards

14  for approval of providers, and may by rule establish criteria

15  for accepting alternative nonclassroom continuing education on

16  an hour-for-hour basis. The board shall prescribe by rule the

17  continuing education, if any, which is required during the

18  first biennium of initial licensure. A person who has been

19  licensed for less than an entire biennium must not be required

20  to complete the full 14 hours of continuing education.

21         2.  In addition, the board may approve specialized

22  continuing education courses on compliance with the wind

23  resistance provisions for one and two family dwellings

24  contained in the Florida Building Code and any alternate

25  methodologies for providing such wind resistance which have

26  been approved for use by the Florida Building Commission.

27  Division I certificateholders or registrants who demonstrate

28  proficiency upon completion of such specialized courses may

29  certify plans and specifications for one and two family

30  dwellings to be in compliance with the code or alternate

31  methodologies, as appropriate, except for dwellings located in

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 1  floodways or coastal hazard areas as defined in ss. 60.3D and

 2  E of the National Flood Insurance Program.

 3         3.  Each certificateholder or registrant shall provide

 4  to the board proof of completion of the core curriculum

 5  courses, or passing the equivalency test of the Building Code

 6  Training Program established under s. 553.841, specific to the

 7  licensing category sought, within 2 years after commencement

 8  of the program or of initial certification or registration,

 9  whichever is later. Classroom hours spent taking core

10  curriculum courses shall count toward the number required for

11  renewal of certificates or registration. A certificateholder

12  or registrant who passes the equivalency test in lieu of

13  taking the core curriculum courses shall receive full credit

14  for core curriculum course hours.

15         4.  The board shall require, by rule adopted pursuant

16  to ss. 120.536(1) and 120.54, a specified number of hours in

17  specialized or advanced module courses, approved by the

18  Florida Building Commission, on any portion of the Florida

19  Building Code, adopted pursuant to part VII of chapter 553,

20  relating to the contractor's respective discipline.

21         Section 3.  Sections 4, 39, and 42 of chapter 2006-12,

22  Laws of Florida, are amended to read:

23         Section 4.  Of the funds appropriated for the My Safe

24  Florida Home Comprehensive Hurricane Damage Mitigation Program

25  specified in s. 215.5586, Florida Statutes, as created by this

26  act, $7.5 million shall be for the Manufactured Housing and

27  Mobile Home Mitigation and Enhancement Program specified in s.

28  215.559(4)(b), Florida Statutes, as created by this act. The

29  Department of Financial Services shall use these funds to

30  contract with Tallahassee Community College to implement the

31  

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 1  Manufactured Housing and Mobile Home Mitigation and

 2  Enhancement Program.

 3         Section 39.  (1)  The Office of Insurance Regulation,

 4  in consultation with the Department of Community Affairs, the

 5  Department of Financial Services, the Federal Alliance for

 6  Safe Homes, the Florida Insurance Council, the Florida Home

 7  Builders Association, the Florida Manufactured Housing

 8  Association, the Risk and Insurance Department of Florida

 9  State University, and the Institute for Business and Homes

10  Safety, shall study and develop a program that will provide an

11  objective rating system that will allow homeowners to evaluate

12  the relative ability of Florida properties to withstand the

13  wind load from a sustained severe tropical storm or hurricane.

14         (2)  The rating system will be designed in a manner

15  that is easy to understand for the property owner, based on

16  proven readily verifiable mitigation techniques and devices,

17  and able to be implemented based on a visual inspection

18  program. The Department of Financial Services shall implement

19  a pilot program for use in the My Safe Florida Home

20  Comprehensive Hurricane Damage Mitigation Program.

21         (3)  The Department shall provide a report to the

22  Governor, the President of the Senate, and the Speaker of the

23  House of Representatives by March 31, 2007, detailing the

24  nature and construction of the rating scale, its effectiveness

25  based on implementation in a pilot program, and an operational

26  plan for statewide implementation of the rating scale.

27         Section 42.  (1)  For the 2006-2007 fiscal year, the

28  sum of $250 million is appropriated on a nonrecurring basis

29  from the General Revenue Fund to the Insurance Regulatory

30  Trust Fund in the Department of Financial Services for

31  purposes of the My Safe Florida Home Comprehensive Hurricane

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 1  Damage Mitigation Program specified in s. 215.5586, Florida

 2  Statutes, as created by this act. The department shall

 3  establish a separate account within the trust fund for

 4  accounting purposes.

 5         (2)  The sum of $250 million is appropriated from the

 6  Insurance Regulatory Trust Fund in the Department of Financial

 7  Services for the purposes set forth in subsection (1). The

 8  department may expend up to 1 percent of the funds

 9  appropriated to administer the program. Beginning October 15,

10  2007, and quarterly thereafter, the Chief Financial Officer

11  shall provide a report to the Executive Office of the Governor

12  and the chair and vice chair of the Legislative Budget

13  Commission containing information regarding expenditures made

14  for the purposes set forth in subsection (1).

15         (3)  Notwithstanding the provisions of s. 216.301,

16  Florida Statutes, to the contrary, the unexpended balance of

17  appropriations authorized in subsections (1) and (2) shall not

18  revert until June 30, 2009.

19         Section 4.  It is the intent of the Legislature that

20  scientifically valid and actuarially sound windstorm

21  mitigation rate factors, premium discounts, and differentials

22  be provided to residential and commercial property insurance

23  policyholders. In order to ensure the validity of such

24  factors, the Office of Insurance Regulation, in consultation

25  with the Department of Community Affairs and the Florida

26  Building Commission, shall conduct or cause to be conducted

27  one or more wind-loss mitigation studies, subject to

28  appropriation of funds by the Legislature for this purpose.

29  The studies shall evaluate the windstorm loss relativities for

30  construction features, including, but not limited to, those

31  that enhance roof strength, roof-covering performance,

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 1  roof-to-wall strength, wall-to-floor-to-foundation strength,

 2  opening protections, and window, door, and skylight strength.

 3  The studies shall include residential property, including

 4  single-family and multifamily homes, mobile homes, and

 5  condominiums, and commercial nonresidential property. The

 6  studies shall include, but need not be limited to, an analysis

 7  of loss data from the 2004 and 2005 hurricanes. The findings

 8  of the studies shall be reported to the Governor, the

 9  President of the Senate, the Speaker of the House of

10  Representatives, the Chief Financial Officer, and the

11  Commissioner of Insurance Regulation by March 1, 2008.

12         Section 5.  Section 553.844, Florida Statutes, is

13  created to read:

14         553.844  Windstorm loss mitigation; requirements for

15  roofs and opening protection.--

16         (1)  The Legislature finds that:

17         (a)  The effects of recent hurricanes on the state have

18  demonstrated the effectiveness of the Florida Building Code in

19  reducing property damage to buildings constructed in

20  accordance with its requirements, and have also exposed a

21  vulnerability of some construction undertaken prior to

22  implementation of the Florida Building Code.

23         (b)  Hurricanes represent a continuing threat to the

24  health, safety, and welfare of the residents of this state due

25  to the direct destructive effects of hurricanes as well as

26  their effects on windstorm insurance rates.

27         (c)  The mitigation of property damage constitutes a

28  valid and recognized objective of the Florida Building Code.

29         (d)  Cost-effective techniques for integrating proven

30  methods of the Florida Building Code into buildings built

31  

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 1  prior to its implementation benefit all residents of the state

 2  as a whole.

 3         (2)  The Florida Building Commission shall:

 4         (a)  Analyze the extent to which a proposed Florida

 5  Building Code provision will mitigate property damage to

 6  buildings and their contents in evaluating that proposal. If

 7  the nature of the proposed Florida Building Code provision

 8  relates only to mitigation of property damage and not to a

 9  life safety concern, the proposal shall be reviewed based on

10  its measurable benefits in relation to the costs imposed.

11         (b)  Develop and adopt within the Florida Building Code

12  a means to incorporate recognized mitigation techniques for

13  site-built, single-family residential structures constructed

14  prior to the implementation of the Florida Building Code,

15  including, but not limited to:

16         1.  Prescriptive techniques for the installation of

17  gable-end bracing;

18         2.  Secondary water barriers for roofs and standards

19  relating to secondary water barriers. The criteria may

20  include, but need not be limited to, roof shape, slope, and

21  composition of all elements of the roof system;

22         3.  Prescriptive techniques for improvement of

23  roof-to-wall connections. The Legislature recognizes that the

24  cost of retrofitting existing buildings to meet the code

25  requirements for new construction in this regard may exceed

26  the practical benefit to be attained. The Legislature intends

27  for the commission to provide for the integration of

28  alternate, lower-cost means that may be employed to retrofit

29  existing buildings that are not otherwise required to comply

30  with the requirements of the Florida Building Code for new

31  

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 1  construction so that the cost of such improvements does not

 2  exceed approximately 15 percent of the cost of reroofing;

 3         4.  Strengthening or correcting roof-decking

 4  attachments and fasteners during reroofing; and

 5         5.  Adding or strengthening opening protections.

 6         (3)  The Legislature finds that the integration of

 7  these specifically identified mitigation measures is critical

 8  to addressing the serious problem facing the state from damage

 9  caused by windstorms and that delay in the adoption and

10  implementation constitutes a threat to the health, safety, and

11  welfare of the state. Accordingly, the Florida Building

12  Commission shall develop and adopt these measures by October

13  1, 2007, by rule separate from the Florida Building Code,

14  which take immediate effect and shall incorporate such

15  requirements into the next edition of the Florida Building

16  Code. Such rules shall require or otherwise clarify that for

17  site-built, single-family residential structures:

18         (a)  A roof replacement must incorporate the techniques

19  specified in subparagraphs (2)(b)2. and 4.

20         (b)  For a building that is located in the wind-borne

21  debris region as defined in s. 1609.2 of the International

22  Building Code (2006) and that has a just valuation for

23  purposes of ad valorem taxation of $300,000 or more:

24         1.  A roof replacement must incorporate the techniques

25  specified in subparagraph (2)(b)3.

26         2.  Any activity that requires a building permit that

27  is applied for after January 1, 2008, must include provision

28  of opening protection as required within the Florida Building

29  Code for new construction of the building for buildings

30  subject to the building permit.

31  

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 1         Section 6.  Paragraph (a) of subsection (6) of section

 2  627.351, Florida Statutes, as amended by section 21 of chapter

 3  2007-1, Laws of Florida, is amended to read:

 4         627.351  Insurance risk apportionment plans.--

 5         (6)  CITIZENS PROPERTY INSURANCE CORPORATION.--

 6         (a)1.  The Legislature finds that actual and threatened

 7  catastrophic losses to property in this state from hurricanes

 8  have caused insurers to be unwilling or unable to provide

 9  property insurance coverage to the extent sought and needed.

10  It is in the public interest and a public purpose to assist in

11  assuring that property in the state is insured so as to

12  facilitate the remediation, reconstruction, and replacement of

13  damaged or destroyed property in order to reduce or avoid the

14  negative effects otherwise resulting to the public health,

15  safety, and welfare; to the economy of the state; and to the

16  revenues of the state and local governments needed to provide

17  for the public welfare. It is necessary, therefore, to provide

18  property insurance to applicants who are in good faith

19  entitled to procure insurance through the voluntary market but

20  are unable to do so. The Legislature intends by this

21  subsection that property insurance be provided and that it

22  continues, as long as necessary, through an entity organized

23  to achieve efficiencies and economies, while providing service

24  to policyholders, applicants, and agents that is no less than

25  the quality generally provided in the voluntary market, all

26  toward the achievement of the foregoing public purposes.

27  Because it is essential for the corporation to have the

28  maximum financial resources to pay claims following a

29  catastrophic hurricane, it is the intent of the Legislature

30  that the income of the corporation be exempt from federal

31  income taxation and that interest on the debt obligations

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 1  issued by the corporation be exempt from federal income

 2  taxation.

 3         2.  The Residential Property and Casualty Joint

 4  Underwriting Association originally created by this statute

 5  shall be known, as of July 1, 2002, as the Citizens Property

 6  Insurance Corporation. The corporation shall provide insurance

 7  for residential and commercial property, for applicants who

 8  are in good faith entitled, but are unable, to procure

 9  insurance through the voluntary market. The corporation shall

10  operate pursuant to a plan of operation approved by order of

11  the Financial Services Commission. The plan is subject to

12  continuous review by the commission. The commission may, by

13  order, withdraw approval of all or part of a plan if the

14  commission determines that conditions have changed since

15  approval was granted and that the purposes of the plan require

16  changes in the plan. The corporation shall continue to operate

17  pursuant to the plan of operation approved by the Office of

18  Insurance Regulation until October 1, 2006. For the purposes

19  of this subsection, residential coverage includes both

20  personal lines residential coverage, which consists of the

21  type of coverage provided by homeowner's, mobile home owner's,

22  dwelling, tenant's, condominium unit owner's, and similar

23  policies, and commercial lines residential coverage, which

24  consists of the type of coverage provided by condominium

25  association, apartment building, and similar policies.

26         3.  For the purposes of this subsection, the term

27  "homestead property" means:

28         a.  Property that has been granted a homestead

29  exemption under chapter 196;

30         b.  Property for which the owner has a current, written

31  lease with a renter for a term of at least 7 months and for

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 1  which the dwelling is insured by the corporation for $200,000

 2  or less;

 3         c.  An owner-occupied mobile home or manufactured home,

 4  as defined in s. 320.01, which is permanently affixed to real

 5  property, is owned by a Florida resident, and has been granted

 6  a homestead exemption under chapter 196 or, if the owner does

 7  not own the real property, the owner certifies that the mobile

 8  home or manufactured home is his or her principal place of

 9  residence;

10         d.  Tenant's coverage;

11         e.  Commercial lines residential property; or

12         f.  Any county, district, or municipal hospital; a

13  hospital licensed by any not-for-profit corporation qualified

14  under s. 501(c)(3) of the United States Internal Revenue Code;

15  or a continuing care retirement community that is certified

16  under chapter 651 and that receives an exemption from ad

17  valorem taxes under chapter 196.

18         4.  For the purposes of this subsection, the term

19  "nonhomestead property" means property that is not homestead

20  property.

21         5.  Effective July 1, 2008, a personal lines

22  residential structure that has a dwelling replacement cost of

23  $1 million or more, or a single condominium unit that has a

24  combined dwelling and content replacement cost of $1 million

25  or more is not eligible for coverage by the corporation. Such

26  dwellings insured by the corporation on June 30, 2008, may

27  continue to be covered by the corporation until the end of the

28  policy term. However, such dwellings that are insured by the

29  corporation and become ineligible for coverage due to the

30  provisions of this subparagraph may reapply and obtain

31  coverage in the high-risk account and be considered

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 1  "nonhomestead property" if the property owner provides the

 2  corporation with a sworn affidavit from one or more insurance

 3  agents, on a form provided by the corporation, stating that

 4  the agents have made their best efforts to obtain coverage and

 5  that the property has been rejected for coverage by at least

 6  one authorized insurer and at least three surplus lines

 7  insurers. If such conditions are met, the dwelling may be

 8  insured by the corporation for up to 3 years, after which time

 9  the dwelling is ineligible for coverage. The office shall

10  approve the method used by the corporation for valuing the

11  dwelling replacement cost for the purposes of this

12  subparagraph. If a policyholder is insured by the corporation

13  prior to being determined to be ineligible pursuant to this

14  subparagraph and such policyholder files a lawsuit challenging

15  the determination, the policyholder may remain insured by the

16  corporation until the conclusion of the litigation.

17         6.  For properties constructed on or after January 1,

18  2009, the corporation may not insure any property located

19  within 2,500 feet landward of the coastal construction control

20  line created pursuant to s. 161.053 unless the property meets

21  the requirements of the code-plus building standards developed

22  by the Florida Building Commission.

23         7.  It is the intent of the Legislature that

24  policyholders, applicants, and agents of the corporation

25  receive service and treatment of the highest possible level

26  but never less than that generally provided in the voluntary

27  market. It also is intended that the corporation be held to

28  service standards no less than those applied to insurers in

29  the voluntary market by the office with respect to

30  responsiveness, timeliness, customer courtesy, and overall

31  

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 1  dealings with policyholders, applicants, or agents of the

 2  corporation.

 3         8.  Effective January 1, 2009, a personal lines

 4  residential structure that is located in the "wind-borne

 5  debris region," as defined in s. 1609.2, International

 6  Building Code (2006), and that has a just valuation for

 7  purposes of ad valorem taxation of $300,000 or more is not

 8  eligible for coverage by the corporation unless the structure

 9  has shutters, impact-resistant glass, or such other approved

10  opening protections as required under the Florida Building

11  Code for a newly constructed residential structure in that

12  area.

13         Section 7.  This act shall take effect upon becoming a

14  law.

15  

16          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
17                     CS for Senate Bill 1864

18                                 

19  The committee substitute for the committee substitute
    clarifies that amendments to the Florida Building Code that
20  incorporate windstorm loss mitigation techniques apply to
    site-built, single-family residential structures built prior
21  to the adoption of the Building Code and having a just value
    for ad valorem taxing purposes of $300,000 or more.
22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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