Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/HB 7057, 1st Eng.
                        Barcode 940114
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11  Senator Posey moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         Delete everything after the enacting clause
15  
16  and insert:  
17         Section 1.  Section 215.5586, Florida Statutes, is
18  amended to read:
19         215.5586  My Safe Florida Home Comprehensive Hurricane
20  Damage Mitigation Program.--There is established within the
21  Department of Financial Services the My Safe Florida Home
22  Comprehensive Hurricane Damage Mitigation Program. The
23  department shall provide fiscal accountability, contract
24  management, and strategic leadership for the program,
25  consistent with this section. This section does not create an
26  entitlement for property owners or obligate the state in any
27  way to fund the inspection or retrofitting of residential
28  property in this state. Implementation of this program is
29  subject to annual legislative appropriations. It is the intent
30  of the Legislature that the My Safe Florida Home Program
31  provide inspections for at least 400,000 site-built,
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Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 single-family, residential properties and provide grants to at 2 least 35,000 applicants before June 30, 2009. The program 3 shall be administered by an individual with prior executive 4 experience in the private sector in the areas of insurance, 5 business, or construction. The program shall develop and 6 implement a comprehensive and coordinated approach for 7 hurricane damage mitigation that shall include the following: 8 (1) WIND CERTIFICATION AND HURRICANE MITIGATION 9 INSPECTIONS.-- 10 (a) Free home-retrofit inspections of site-built, 11 single-family, residential property, including single-family, 12 two-family, three-family, or four-family residential units, 13 shall be offered throughout the state to determine what 14 mitigation measures are needed, what insurance premium 15 discounts may be available, and what improvements to existing 16 residential properties are needed to reduce the property's 17 vulnerability to hurricane damage. The Department of Financial 18 Services shall contract with establish a request for proposals 19 to solicit proposals from wind certification entities to 20 provide free at no cost to homeowners wind certification and 21 hurricane mitigation inspections. The inspections provided to 22 homeowners, at a minimum, must include: 23 1. A home inspection and report that summarizes the 24 results and identifies recommended improvements corrective 25 actions a homeowner may take to mitigate hurricane damage. 26 2. A range of cost estimates regarding the recommended 27 mitigation improvements features. 28 3. Insurer-specific information regarding premium 29 discounts correlated to the current mitigation features and 30 the recommended mitigation improvements features identified by 31 the inspection. 2 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 4. A hurricane resistance rating scale specifying the 2 home's current as well as projected wind resistance 3 capabilities. As soon as practical, the rating scale must be 4 the uniform home grading scale adopted by the Financial 5 Services Commission pursuant to s. 40 of chapter 2007-1, Laws 6 of Florida. 7 (b) To qualify for selection by the department as a 8 provider of wind certification entity to provide and hurricane 9 mitigation inspections, the entity shall, at a minimum: 10 1. Use wind certification and hurricane mitigation 11 inspectors who: 12 a. Have prior experience in residential construction 13 or inspection and have received specialized training in 14 hurricane mitigation procedures. Such training may be provided 15 by a class offered online or in person. 16 b. Have undergone drug testing and level 2 background 17 checks pursuant to s. 435.04. The department is authorized to 18 conduct criminal record checks of inspectors used by wind 19 certification entities. Inspectors must submit a set of the 20 fingerprints to the department for state and national criminal 21 history checks and must pay the fingerprint processing fee set 22 forth in s. 624.501. The fingerprints shall be sent by the 23 department to the Department of Law Enforcement and forwarded 24 to the Federal Bureau of Investigation for processing. The 25 results shall be returned to the department for screening. The 26 fingerprints shall be taken by a law enforcement agency, 27 designated examination center, or other department-approved 28 entity. Wind certification and Hurricane mitigation inspectors 29 participating in the program on January 25, 2007, the 30 effective date of this act shall have until June 1, 2007, to 31 meet the requirements for a criminal record check. 3 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 c. Have been certified, in a manner satisfactory to 2 the department, to conduct the inspections. 3 2. Provide a quality assurance program including a 4 reinspection component. 5 (c) An application for an inspection must contain a 6 signed or electronically verified statement made under penalty 7 of perjury that the applicant has submitted only a single 8 application for that home. 9 (d) The owner of a site-built, single-family, 10 residential property may apply for and receive an inspection 11 without also applying for a grant pursuant to subsection (2) 12 and without meeting the requirements of paragraph (2)(a). 13 (2) MITIGATION GRANTS.--Financial grants shall be used 14 to encourage single-family, site-built, owner-occupied, 15 residential property owners to retrofit their properties to 16 make them less vulnerable to hurricane damage. 17 (a) To be eligible for a grant for persons who have 18 obtained a completed inspection after May 1, 2007, a 19 residential property must: 20 1. Have been granted a homestead exemption under 21 chapter 196. 22 2. Be a dwelling with an insured value of $300,000 23 $500,000 or less. Homeowners who are low-income persons, as 24 defined in s. 420.0004(10), are exempt from this requirement. 25 3. Have undergone an acceptable wind certification and 26 hurricane mitigation inspection, if the property is an 27 existing structure. 28 4. Be located in the "wind-borne debris region" as 29 that term is defined in s. 1609.2, International Building Code 30 (2006). 31 5. Be a home for which the building permit application 4 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 for initial construction was made before March 1, 2002. 2 3 An application for a grant must contain a signed or 4 electronically verified statement made under penalty of 5 perjury that the applicant has submitted only a single 6 application and must have attached documents demonstrating the 7 applicant meets the requirements of this paragraph. A 8 residential property which is part of a multifamily 9 residential unit may receive a grant only if all homeowners 10 participate and the total number of units does not exceed 11 four. 12 (b) All grants must be matched on a dollar-for-dollar 13 basis for a total of $10,000 for the actual cost of the 14 mitigation project with the state's contribution not to exceed 15 $5,000. 16 (c) The program shall create a process in which 17 mitigation contractors agree to participate and seek 18 reimbursement from the state and homeowners select from a list 19 of participating contractors. All mitigation must be based 20 upon the securing of all required local permits and 21 inspections and must be performed by properly licensed 22 contractors. Mitigation projects are subject to random 23 reinspection of up to at least 5 10 percent of all projects. 24 Hurricane mitigation inspectors qualifying for the program may 25 also participate as mitigation contractors as long as the 26 inspectors meet the department's qualifications and 27 certification requirements for mitigation contractors. 28 (d) Matching fund grants shall also be made available 29 to local governments and nonprofit entities for projects that 30 will reduce hurricane damage to single-family, site-built, 31 owner-occupied, residential property. The department shall 5 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 liberally construe those requirements in favor of availing the 2 state of the opportunity to leverage funding for the My Safe 3 Florida Home Program with other sources of funding. 4 (e) When recommended by a hurricane mitigation 5 inspection, grants may be used for the following improvements 6 only: 7 1. Roof deck attachment. 8 2. Secondary water barrier. 9 3. Roof covering. 10 4. Brace gable ends. 11 5. Reinforce roof-to-wall connections. 12 1.6. Opening protection. 13 2.7. Exterior doors, including garage doors. 14 3. Brace gable ends. 15 16 The department may require that improvements be made to all 17 openings, including exterior doors and garage doors, as a 18 condition of approving an application for a grant if the 19 department determines that improvements to less than all 20 openings would not substantially improve the structure's 21 ability to withstand hurricane damage. 22 (f) Grants may be used on a previously inspected 23 existing structure or on a rebuild. A rebuild is defined as a 24 site-built, single-family dwelling under construction to 25 replace a home that was destroyed or significantly damaged by 26 a hurricane and deemed unlivable by a regulatory authority. 27 The homeowner must be a low-income homeowner as defined in 28 paragraph (g), must have had a homestead exemption for that 29 home prior to the hurricane, and must be intending to rebuild 30 the home as that homeowner's homestead and maintained the 31 homestead exemption. 6 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 (g) Low-income homeowners, as defined in s. 2 420.0004(10), who otherwise meet the requirements of 3 paragraphs (a), (c), (e), and (f) are eligible for a grant of 4 up to $5,000 and are not required to provide a matching amount 5 to receive the grant. Additionally, for low-income homeowners, 6 grant funding may be used for repair to existing structures 7 leading to any of the mitigation improvements provided in 8 paragraph (e), limited to 20 percent of the grant value. The 9 program may accept a certification directly from a low-income 10 homeowner that the homeowner meets the requirements of s. 11 420.0004(10) if the homeowner provides such certification in a 12 signed or electronically verified statement made under penalty 13 of perjury. 14 (h) The department shall establish objective, 15 reasonable criteria for prioritizing grant applications, 16 consistent with the requirements of this section. 17 (i) The department shall develop a process that 18 ensures the most efficient means to collect and verify grant 19 applications to determine eligibility and may direct hurricane 20 mitigation inspectors to collect and verify grant application 21 information or use the Internet or other electronic means to 22 collect information and determine eligibility. 23 (j) The department shall transfer the amount of $40 24 million from funds appropriated to the program, including up 25 to 5 percent for administrative costs, to Volunteer Florida 26 Foundation, Inc., for provision of inspections and grants to 27 low-income homeowners, as defined in s. 420.0004(10), 28 consistent with this section. Volunteer Florida Foundation, 29 Inc., shall be responsible for inspections and grants 30 management for low-income homeowners and shall report its 31 activities and account for state funds on a quarterly and 7 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 annual basis to the Chief Financial Officer, the President of 2 the Senate, and the Speaker of the House of Representatives. 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. 8 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 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, 9 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 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 10 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 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 (10) CONTRACT MANAGEMENT.--The department may contract 11 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 with third parties for grants management, inspection services, 2 educational outreach, and auditing services. Such contracts 3 shall be considered direct costs of the program and shall not 4 be subject to administrative cost limits, but contracts valued 5 at $500,000 or more shall be subject to review and approval by 6 the Legislative Budget Commission. The department shall 7 contract with providers that have a demonstrated record of 8 successful business operations in areas directly related to 9 the services to be provided and shall ensure the highest 10 accountability for use of state funds, consistent with this 11 section. 12 (11) INTENT.--It is the intent of the Legislature that 13 grants made to residential property owners under this section 14 shall be considered disaster-relief assistance within the 15 meaning of s. 139 of the Internal Revenue Code of 1986, as 16 amended. 17 (12) REPORTS.--The department shall make an annual 18 report on the activities of the program that shall account for 19 the use of state funds and indicate the number of inspections 20 requested, the number of inspections performed, the number of 21 grant applications received, and the number and value of 22 grants approved. The report shall be delivered to the 23 President of the Senate and the Speaker of the House of 24 Representatives by February 1 of each year. 25 Section 2. Paragraph (b) of subsection (4) of section 26 489.115, Florida Statutes, is amended to read: 27 489.115 Certification and registration; endorsement; 28 reciprocity; renewals; continuing education.-- 29 (4) 30 (b)1. Each certificateholder or registrant shall 31 provide proof, in a form established by rule of the board, 12 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 that the certificateholder or registrant has completed at 2 least 14 classroom hours of at least 50 minutes each of 3 continuing education courses during each biennium since the 4 issuance or renewal of the certificate or registration. The 5 board shall establish by rule that a portion of the required 6 14 hours must deal with the subject of workers' compensation, 7 business practices, and workplace safety, and, for applicable 8 licensure categories, wind mitigation methodologies. The board 9 shall by rule establish criteria for the approval of 10 continuing education courses and providers, including 11 requirements relating to the content of courses and standards 12 for approval of providers, and may by rule establish criteria 13 for accepting alternative nonclassroom continuing education on 14 an hour-for-hour basis. The board shall prescribe by rule the 15 continuing education, if any, which is required during the 16 first biennium of initial licensure. A person who has been 17 licensed for less than an entire biennium must not be required 18 to complete the full 14 hours of continuing education. 19 2. In addition, the board may approve specialized 20 continuing education courses on compliance with the wind 21 resistance provisions for one and two family dwellings 22 contained in the Florida Building Code and any alternate 23 methodologies for providing such wind resistance which have 24 been approved for use by the Florida Building Commission. 25 Division I certificateholders or registrants who demonstrate 26 proficiency upon completion of such specialized courses may 27 certify plans and specifications for one and two family 28 dwellings to be in compliance with the code or alternate 29 methodologies, as appropriate, except for dwellings located in 30 floodways or coastal hazard areas as defined in ss. 60.3D and 31 E of the National Flood Insurance Program. 13 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 3. Each certificateholder or registrant shall provide 2 to the board proof of completion of the core curriculum 3 courses, or passing the equivalency test of the Building Code 4 Training Program established under s. 553.841, specific to the 5 licensing category sought, within 2 years after commencement 6 of the program or of initial certification or registration, 7 whichever is later. Classroom hours spent taking core 8 curriculum courses shall count toward the number required for 9 renewal of certificates or registration. A certificateholder 10 or registrant who passes the equivalency test in lieu of 11 taking the core curriculum courses shall receive full credit 12 for core curriculum course hours. 13 4. The board shall require, by rule adopted pursuant 14 to ss. 120.536(1) and 120.54, a specified number of hours in 15 specialized or advanced module courses, approved by the 16 Florida Building Commission, on any portion of the Florida 17 Building Code, adopted pursuant to part VII of chapter 553, 18 relating to the contractor's respective discipline. 19 Section 3. Sections 4, 39, and 42 of chapter 2006-12, 20 Laws of Florida, are amended to read: 21 Section 4. Of the funds appropriated for the My Safe 22 Florida Home Comprehensive Hurricane Damage Mitigation Program 23 specified in s. 215.5586, Florida Statutes, as created by this 24 act, $7.5 million shall be for the Manufactured Housing and 25 Mobile Home Mitigation and Enhancement Program specified in s. 26 215.559(4)(b), Florida Statutes, as created by this act. The 27 Department of Financial Services shall use these funds to 28 contract with Tallahassee Community College to implement the 29 Manufactured Housing and Mobile Home Mitigation and 30 Enhancement Program. 31 Section 39. (1) The Office of Insurance Regulation, 14 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 in consultation with the Department of Community Affairs, the 2 Department of Financial Services, the Federal Alliance for 3 Safe Homes, the Florida Insurance Council, the Florida Home 4 Builders Association, the Florida Manufactured Housing 5 Association, the Risk and Insurance Department of Florida 6 State University, and the Institute for Business and Homes 7 Safety, shall study and develop a program that will provide an 8 objective rating system that will allow homeowners to evaluate 9 the relative ability of Florida properties to withstand the 10 wind load from a sustained severe tropical storm or hurricane. 11 (2) The rating system will be designed in a manner 12 that is easy to understand for the property owner, based on 13 proven readily verifiable mitigation techniques and devices, 14 and able to be implemented based on a visual inspection 15 program. The Department of Financial Services shall implement 16 a pilot program for use in the My Safe Florida Home 17 Comprehensive Hurricane Damage Mitigation Program. 18 (3) The Department shall provide a report to the 19 Governor, the President of the Senate, and the Speaker of the 20 House of Representatives by March 31, 2007, detailing the 21 nature and construction of the rating scale, its effectiveness 22 based on implementation in a pilot program, and an operational 23 plan for statewide implementation of the rating scale. 24 Section 42. (1) For the 2006-2007 fiscal year, the 25 sum of $250 million is appropriated on a nonrecurring basis 26 from the General Revenue Fund to the Insurance Regulatory 27 Trust Fund in the Department of Financial Services for 28 purposes of the My Safe Florida Home Comprehensive Hurricane 29 Damage Mitigation Program specified in s. 215.5586, Florida 30 Statutes, as created by this act. The department shall 31 establish a separate account within the trust fund for 15 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 accounting purposes. 2 (2) The sum of $250 million is appropriated from the 3 Insurance Regulatory Trust Fund in the Department of Financial 4 Services for the purposes set forth in subsection (1). The 5 department may expend up to 1 percent of the funds 6 appropriated to administer the program. Beginning October 15, 7 2007, and quarterly thereafter, the Chief Financial Officer 8 shall provide a report to the Executive Office of the Governor 9 and the chair and vice chair of the Legislative Budget 10 Commission containing information regarding expenditures made 11 for the purposes set forth in subsection (1). 12 (3) Notwithstanding the provisions of s. 216.301, 13 Florida Statutes, to the contrary, the unexpended balance of 14 appropriations authorized in subsections (1) and (2) shall not 15 revert until June 30, 2009. 16 Section 4. It is the intent of the Legislature that 17 scientifically valid and actuarially sound windstorm 18 mitigation rate factors, premium discounts, and differentials 19 be provided to residential and commercial property insurance 20 policyholders. In order to ensure the validity of such 21 factors, the Office of Insurance Regulation, in consultation 22 with the Department of Community Affairs and the Florida 23 Building Commission, shall conduct or cause to be conducted 24 one or more wind-loss mitigation studies, subject to 25 appropriation of funds by the Legislature for this purpose. 26 The studies shall evaluate the windstorm loss relativities for 27 construction features, including, but not limited to, those 28 that enhance roof strength, roof-covering performance, 29 roof-to-wall strength, wall-to-floor-to-foundation strength, 30 opening protections, and window, door, and skylight strength. 31 The studies shall include residential property, including 16 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 single-family and multifamily homes, mobile homes, and 2 condominiums, and commercial nonresidential property. The 3 studies shall include, but need not be limited to, an analysis 4 of loss data from the 2004 and 2005 hurricanes. The findings 5 of the studies shall be reported to the Governor, the 6 President of the Senate, the Speaker of the House of 7 Representatives, the Chief Financial Officer, and the 8 Commissioner of Insurance Regulation by January 1, 2008, for 9 the studies related to residential property, and by March 1, 10 2008, for the studies related to commercial nonresidential 11 property. 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 prior to its implementation benefit all residents of the state 17 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 as a whole. 2 (2) The Florida Building Commission shall: 3 (a) Analyze the extent to which a proposed Florida 4 Building Code provision will mitigate property damage to 5 buildings and their contents in evaluating that proposal. If 6 the nature of the proposed Florida Building Code provision 7 relates only to mitigation of property damage and not to a 8 life safety concern, the proposal shall be reviewed based on 9 its measurable benefits in relation to the costs imposed. 10 (b) Develop and adopt within the Florida Building Code 11 a means to incorporate recognized mitigation techniques for 12 site-built, single-family residential structures constructed 13 prior to the implementation of the Florida Building Code, 14 including, but not limited to: 15 1. Prescriptive techniques for the installation of 16 gable-end bracing; 17 2. Secondary water barriers for roofs and standards 18 relating to secondary water barriers. The criteria may 19 include, but need not be limited to, roof shape, slope, and 20 composition of all elements of the roof system; 21 3. Prescriptive techniques for improvement of 22 roof-to-wall connections. The Legislature recognizes that the 23 cost of retrofitting existing buildings to meet the code 24 requirements for new construction in this regard may exceed 25 the practical benefit to be attained. The Legislature intends 26 for the commission to provide for the integration of 27 alternate, lower-cost means that may be employed to retrofit 28 existing buildings that are not otherwise required to comply 29 with the requirements of the Florida Building Code for new 30 construction so that the cost of such improvements does not 31 exceed approximately 15 percent of the cost of reroofing; 18 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 4. Strengthening or correcting roof-decking 2 attachments and fasteners during reroofing; and 3 5. Adding or strengthening opening protections. 4 (3) The Legislature finds that the integration of 5 these specifically identified mitigation measures is critical 6 to addressing the serious problem facing the state from damage 7 caused by windstorms and that delay in the adoption and 8 implementation constitutes a threat to the health, safety, and 9 welfare of the state. Accordingly, the Florida Building 10 Commission shall develop and adopt these measures by October 11 1, 2007, by rule separate from the Florida Building Code, 12 which take immediate effect and shall incorporate such 13 requirements into the next edition of the Florida Building 14 Code. Such rules shall require or otherwise clarify that for 15 site-built, single-family residential structures: 16 (a) A roof replacement must incorporate the techniques 17 specified in subparagraphs (2)(b)2. and 4. 18 (b) For a building that is located in the wind-borne 19 debris region as defined in s. 1609.2 of the International 20 Building Code (2006) and that has an insured value of $300,000 21 or more or, if the building is uninsured or for which 22 documentation of insured value is not presented, has a just 23 valuation for the structure for purposes of ad valorem 24 taxation of $300,000 or more, a roof replacement must 25 incorporate the techniques specified in subparagraph (2)(b)3. 26 (c) Any activity requiring a building permit that is 27 applied for on or after July 1, 2008, and for which the 28 estimated cost is $50,000 or more, must include provision of 29 opening protections as required within the Florida Building 30 Code for new construction for a building that is located in 31 the wind-borne debris region as defined in s. 1609.2 of the 19 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 International Building Code (2006) and that has an insured 2 value of $750,000 or more, or, if the building is uninsured or 3 for which documentation of insured value is not presented, has 4 a just valuation for the structure for purposes of ad valorem 5 taxation of $750,000 or more. 6 Section 6. Paragraph (a) of subsection (6) of section 7 627.351, Florida Statutes, as amended by section 21 of chapter 8 2007-1, Laws of Florida, is amended to read: 9 627.351 Insurance risk apportionment plans.-- 10 (6) CITIZENS PROPERTY INSURANCE CORPORATION.-- 11 (a)1. The Legislature finds that actual and threatened 12 catastrophic losses to property in this state from hurricanes 13 have caused insurers to be unwilling or unable to provide 14 property insurance coverage to the extent sought and needed. 15 It is in the public interest and a public purpose to assist in 16 assuring that property in the state is insured so as to 17 facilitate the remediation, reconstruction, and replacement of 18 damaged or destroyed property in order to reduce or avoid the 19 negative effects otherwise resulting to the public health, 20 safety, and welfare; to the economy of the state; and to the 21 revenues of the state and local governments needed to provide 22 for the public welfare. It is necessary, therefore, to provide 23 property insurance to applicants who are in good faith 24 entitled to procure insurance through the voluntary market but 25 are unable to do so. The Legislature intends by this 26 subsection that property insurance be provided and that it 27 continues, as long as necessary, through an entity organized 28 to achieve efficiencies and economies, while providing service 29 to policyholders, applicants, and agents that is no less than 30 the quality generally provided in the voluntary market, all 31 toward the achievement of the foregoing public purposes. 20 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 Because it is essential for the corporation to have the 2 maximum financial resources to pay claims following a 3 catastrophic hurricane, it is the intent of the Legislature 4 that the income of the corporation be exempt from federal 5 income taxation and that interest on the debt obligations 6 issued by the corporation be exempt from federal income 7 taxation. 8 2. The Residential Property and Casualty Joint 9 Underwriting Association originally created by this statute 10 shall be known, as of July 1, 2002, as the Citizens Property 11 Insurance Corporation. The corporation shall provide insurance 12 for residential and commercial property, for applicants who 13 are in good faith entitled, but are unable, to procure 14 insurance through the voluntary market. The corporation shall 15 operate pursuant to a plan of operation approved by order of 16 the Financial Services Commission. The plan is subject to 17 continuous review by the commission. The commission may, by 18 order, withdraw approval of all or part of a plan if the 19 commission determines that conditions have changed since 20 approval was granted and that the purposes of the plan require 21 changes in the plan. The corporation shall continue to operate 22 pursuant to the plan of operation approved by the Office of 23 Insurance Regulation until October 1, 2006. For the purposes 24 of this subsection, residential coverage includes both 25 personal lines residential coverage, which consists of the 26 type of coverage provided by homeowner's, mobile home owner's, 27 dwelling, tenant's, condominium unit owner's, and similar 28 policies, and commercial lines residential coverage, which 29 consists of the type of coverage provided by condominium 30 association, apartment building, and similar policies. 31 3. For the purposes of this subsection, the term 21 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 "homestead property" means: 2 a. Property that has been granted a homestead 3 exemption under chapter 196; 4 b. Property for which the owner has a current, written 5 lease with a renter for a term of at least 7 months and for 6 which the dwelling is insured by the corporation for $200,000 7 or less; 8 c. An owner-occupied mobile home or manufactured home, 9 as defined in s. 320.01, which is permanently affixed to real 10 property, is owned by a Florida resident, and has been granted 11 a homestead exemption under chapter 196 or, if the owner does 12 not own the real property, the owner certifies that the mobile 13 home or manufactured home is his or her principal place of 14 residence; 15 d. Tenant's coverage; 16 e. Commercial lines residential property; or 17 f. Any county, district, or municipal hospital; a 18 hospital licensed by any not-for-profit corporation qualified 19 under s. 501(c)(3) of the United States Internal Revenue Code; 20 or a continuing care retirement community that is certified 21 under chapter 651 and that receives an exemption from ad 22 valorem taxes under chapter 196. 23 4. For the purposes of this subsection, the term 24 "nonhomestead property" means property that is not homestead 25 property. 26 5. Effective July 1, 2008, a personal lines 27 residential structure that has a dwelling replacement cost of 28 $1 million or more, or a single condominium unit that has a 29 combined dwelling and content replacement cost of $1 million 30 or more is not eligible for coverage by the corporation. Such 31 dwellings insured by the corporation on June 30, 2008, may 22 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 continue to be covered by the corporation until the end of the 2 policy term. However, such dwellings that are insured by the 3 corporation and become ineligible for coverage due to the 4 provisions of this subparagraph may reapply and obtain 5 coverage in the high-risk account and be considered 6 "nonhomestead property" if the property owner provides the 7 corporation with a sworn affidavit from one or more insurance 8 agents, on a form provided by the corporation, stating that 9 the agents have made their best efforts to obtain coverage and 10 that the property has been rejected for coverage by at least 11 one authorized insurer and at least three surplus lines 12 insurers. If such conditions are met, the dwelling may be 13 insured by the corporation for up to 3 years, after which time 14 the dwelling is ineligible for coverage. The office shall 15 approve the method used by the corporation for valuing the 16 dwelling replacement cost for the purposes of this 17 subparagraph. If a policyholder is insured by the corporation 18 prior to being determined to be ineligible pursuant to this 19 subparagraph and such policyholder files a lawsuit challenging 20 the determination, the policyholder may remain insured by the 21 corporation until the conclusion of the litigation. 22 6. For properties constructed on or after January 1, 23 2009, the corporation may not insure any property located 24 within 2,500 feet landward of the coastal construction control 25 line created pursuant to s. 161.053 unless the property meets 26 the requirements of the code-plus building standards developed 27 by the Florida Building Commission. 28 7. It is the intent of the Legislature that 29 policyholders, applicants, and agents of the corporation 30 receive service and treatment of the highest possible level 31 but never less than that generally provided in the voluntary 23 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 market. It also is intended that the corporation be held to 2 service standards no less than those applied to insurers in 3 the voluntary market by the office with respect to 4 responsiveness, timeliness, customer courtesy, and overall 5 dealings with policyholders, applicants, or agents of the 6 corporation. 7 8. Effective January 1, 2009, a personal lines 8 residential structure that is located in the "wind-borne 9 debris region," as defined in s. 1609.2, International 10 Building Code (2006), and that has an insured value on the 11 structure of $750,000 or more is not eligible for coverage by 12 the corporation unless the structure has opening protections 13 as required under the Florida Building Code for a newly 14 constructed residential structure in that area. 15 Section 7. From the funds appropriated to the My Safe 16 Florida Home Program by section 42 of chapter 2006-12, Laws of 17 Florida, the Department of Financial Services shall transfer 18 $1 million from the Insurance Regulatory Trust Fund to the 19 Energy Consumption Trust Fund within the Department of 20 Community Affairs for the purpose of funding the Low-income 21 Emergency Home Repair Program under s. 420.36, Florida 22 Statutes. Notwithstanding s. 420.36(3)(b), Florida Statutes, 23 administrative expenses of the program may not exceed 5 24 percent of the total funds appropriated by this section. 25 Section 8. This act shall take effect upon becoming a 26 law. 27 28 29 ================ T I T L E A M E N D M E N T =============== 30 And the title is amended as follows: 31 Delete everything before the enacting clause 24 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 and insert: 2 A bill to be entitled 3 An act relating to hurricane damage mitigation; 4 amending s. 215.5586, F.S.; redesignating the 5 Florida Comprehensive Hurricane Damage 6 Mitigation Program as the "My Safe Florida Home 7 Program"; providing additional duties of the 8 Department of Financial Services; providing 9 additional legislative intent; revising 10 criteria and requirements for hurricane 11 mitigation inspections; requiring the 12 department to contract with certain entities to 13 provide hurricane mitigation inspections; 14 revising the requirements for such inspections; 15 providing for a hurricane resistance rating 16 scale as adopted by the Financial Services 17 Commission; revising the requirements for an 18 entity to be selected by the department to 19 perform inspections; providing requirements for 20 a homeowner with respect to applying for an 21 inspection; revising requirements for 22 mitigation grants; authorizing inspectors to 23 participate as contractors under certain 24 circumstances; limiting the purposes for which 25 a grant may be used; providing for priorities 26 of grants; requiring the department to develop 27 a grant applications verification and 28 collection process; requiring the department to 29 transfer certain appropriated funds to 30 Volunteer Florida Foundation, Inc., for certain 31 purposes; specifying duties of Volunteer 25 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 Florida Foundation, Inc.; authorizing the 2 department to undertake a statewide consumer 3 information campaign; requiring the advisory 4 council to advise and assist the department in 5 administering the program; expanding the 6 department's authorization to enhance financial 7 resource funding of the program; revising the 8 department's rulemaking authority; deleting 9 provisions authorizing the department to 10 contract with not-for-profit corporations; 11 requiring the department to maintain a list of 12 authorized hurricane mitigation inspectors; 13 authorizing the department to develop a 14 no-interest loan program; providing program 15 requirements and limitations; requiring the 16 department to pay certain creditors from funds 17 appropriated for the program; providing loan 18 eligibility criteria; authorizing the 19 department to set aside certain funds for 20 program purposes; requiring the department to 21 adopt rules; providing for public outreach for 22 contractors, real estate brokers, and licensed 23 sales associates; authorizing the department to 24 contract for grants management, inspection 25 services, education outreach, and auditing 26 services; providing additional legislative 27 intent; requiring the department to make annual 28 reports to the Legislature concerning the 29 program; providing report requirements; 30 amending s. 489.115, F.S.; including wind 31 mitigation methodologies under certain 26 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 continuing education requirements for 2 contractors; amending ss. 4, 39, and 42 of ch. 3 2006-12, Laws of Florida; providing conforming 4 changes to the redesignation of the Florida 5 Comprehensive Hurricane Damage Mitigation 6 Program; providing legislative intent; 7 requiring the Office of Insurance Regulation, 8 in consultation with the Department of 9 Community Affairs and the Florida Building 10 Commission, to conduct wind-loss mitigation 11 studies; providing requirements for the 12 studies; requiring reports to the Governor, the 13 Legislature, the Chief Financial Officer, and 14 the Commissioner of Insurance Regulation; 15 creating s. 553.844, F.S.; providing 16 legislative findings concerning the need to 17 prevent property damage caused by hurricanes; 18 requiring the Florida Building Commission to 19 adopt amendments to the Florida Building Code, 20 including requirements for certain buildings 21 constructed before the implementation of the 22 code; providing requirements for such 23 amendments; providing requirements for 24 buildings located in a wind-borne debris 25 region; amending s. 627.351, F.S.; requiring 26 that a residential structure located in a 27 wind-borne debris region have certain opening 28 protections required under the Florida Building 29 Code in order to be eligible for coverage by 30 the Citizens Property Insurance Corporation; 31 providing appropriations; providing an 27 8:14 AM 05/02/07 h7057e1d-24-j05
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/HB 7057, 1st Eng. Barcode 940114 1 effective date. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 28 8:14 AM 05/02/07 h7057e1d-24-j05