HB 7057

1
A bill to be entitled
2An act relating to hurricane damage mitigation; amending
3s. 215.5586, F.S.; redesignating the Florida Comprehensive
4Hurricane Damage Mitigation Program as the My Safe Florida
5Home Program; providing additional duties of the
6Department of Financial Services; providing additional
7legislative intent; revising criteria and requirements for
8wind certification and hurricane mitigation inspections;
9requiring the department to maintain a list of certain
10inspectors; revising requirements for mitigation grants;
11authorizing inspectors to participate as contractors under
12certain circumstances; providing for priorities of grants;
13requiring the department to develop a grant applications
14verification and collection process; requiring the
15department to transfer certain appropriated funds to
16Volunteer Florida Foundation, Inc., for certain purposes;
17specifying duties of Volunteer Florida Foundation, Inc.;
18authorizing the department to undertake a statewide
19consumer information campaign; requiring the advisory
20council to advise and assist the department in
21administering the program; expanding the department's
22authorization to enhance financial resource funding of the
23program; revising the department's rulemaking authority;
24deleting provisions authorizing the department to contract
25with not-for-profit corporations; requiring the department
26to develop a no-interest loan program; providing program
27requirements and limitations; requiring the department to
28pay certain creditors from funds appropriated for the
29program; providing loan eligibility criteria; requiring
30the department to set aside certain funds for program
31purposes; requiring the department to adopt rules;
32providing for public outreach for contractors and real
33estate brokers and licensed sales associates; authorizing
34the department to contract for grants management,
35inspection services, education outreach, and auditing
36services; providing additional legislative intent;
37requiring the department to make annual reports on the
38program; providing report requirements; amending s.
39215.559, F.S.; requiring the Legislature to make an annual
40appropriation from the Florida Hurricane Catastrophe Fund
41to the Florida Catastrophic Storm Risk Management Center
42of Excellence; creating s. 215.5597, F.S.; creating the
43Florida Catastrophic Storm Risk Management Center of
44Excellence at Florida State University; providing
45purposes; providing responsibilities of the center;
46amending s. 489.115, F.S.; including wind mitigation
47methodologies under certain continuing education
48requirements for contractors; amending ss. 4, 39, and 42
49of ch. 2006-12, Laws of Florida; providing conforming
50changes to the redesignation of the Florida Comprehensive
51Hurricane Damage Mitigation Program; providing an
52effective date.
53
54Be It Enacted by the Legislature of the State of Florida:
55
56     Section 1.  Section 215.5586, Florida Statutes, is amended
57to read:
58     215.5586  My Safe Florida Home Comprehensive Hurricane
59Damage Mitigation Program.--There is established within the
60Department of Financial Services the My Safe Florida Home
61Comprehensive Hurricane Damage Mitigation Program. The
62department shall provide fiscal accountability, contract
63management, and strategic leadership for the program, consistent
64with this section. This section does not create an entitlement
65for property owners or obligate the state in any way to fund the
66inspection or retrofitting of residential property in this
67state. Implementation of this program is subject to annual
68legislative appropriations. It is the intent of the Legislature
69that the My Safe Florida Home Program provide inspections for at
70least 400,000 site-built, single-family, residential properties
71and provide grants to at least 35,000 applicants before June 30,
722009. The program shall be administered by an individual with
73prior executive experience in the private sector in the areas of
74insurance, business, or construction. The program shall develop
75and implement a comprehensive and coordinated approach for
76hurricane damage mitigation that shall include the following:
77     (1)  WIND CERTIFICATION AND HURRICANE MITIGATION
78INSPECTIONS.--
79     (a)  Free home-retrofit inspections of site-built,
80single-family, residential property, including single-family,
81two-family, three-family, or four-family residential units,
82shall be offered throughout the state to determine what
83mitigation measures are needed, what insurance premium discounts
84may be available, and what improvements to existing residential
85properties are needed to reduce the property's vulnerability to
86hurricane damage. The Department of Financial Services shall
87establish a request for proposals to solicit proposals from wind
88certification entities to provide free at no cost to homeowners
89wind certification and hurricane mitigation inspections. The
90inspections provided to homeowners, at a minimum, must include:
91     1.  A home inspection and report that summarizes the
92results and identifies corrective actions a homeowner may take
93to mitigate hurricane damage.
94     2.  A range of cost estimates regarding the mitigation
95features.
96     3.  Insurer-specific information regarding premium
97discounts correlated to recommended mitigation features
98identified by the inspection.
99     4.  A hurricane resistance rating scale specifying the
100home's current as well as projected wind resistance
101capabilities.
102     (b)  To qualify for selection by the department as a
103provider of wind certification and hurricane mitigation
104inspections, the entity shall, at a minimum:
105     1.  Use wind certification and hurricane mitigation
106inspectors who:
107     a.  Have prior experience in residential construction or
108inspection and have received specialized training in hurricane
109mitigation procedures. Such training may be provided by a class
110offered online or in person.
111     b.  Have undergone drug testing and level 2 background
112checks pursuant to s. 435.04. The department is authorized to
113conduct criminal record checks of inspectors. Inspectors must
114submit a set of the fingerprints to the department for state and
115national criminal history checks and must pay the fingerprint
116processing fee set forth in s. 624.501. The fingerprints shall
117be sent by the department to the Department of Law Enforcement
118and forwarded to the Federal Bureau of Investigation for
119processing. The results shall be returned to the department for
120screening. The fingerprints shall be taken by a law enforcement
121agency, designated examination center, or other department-
122approved entity. Wind certification and hurricane mitigation
123inspectors participating in the program on the effective date of
124this act shall have until June 1, 2007, to meet the requirements
125for a criminal record check.
126     c.  Have been certified, in a manner satisfactory to the
127department, to conduct the inspections.
128     2.  Provide a quality assurance program including a
129reinspection component.
130     (c)  An application for an inspection must contain a signed
131or electronically verified statement made under penalty of
132perjury that the applicant has submitted only a single
133application.
134     (d)  The owner of a site-built, single-family, residential
135property may apply for and receive an inspection without also
136applying for a grant pursuant to subsection (2) and without
137meeting the requirements of paragraph (2)(a).
138     (e)  The department shall develop and maintain as a public
139record a current list of wind certification and hurricane
140mitigation inspectors authorized to conduct wind certification
141and hurricane mitigation inspections pursuant to this section.
142     (2)  MITIGATION GRANTS.--Financial grants shall be used to
143encourage single-family, site-built, owner-occupied, residential
144property owners to retrofit their properties to make them less
145vulnerable to hurricane damage.
146     (a)  To be eligible for a grant, a residential property
147must:
148     1.  Have been granted a homestead exemption under chapter
149196.
150     2.  Be a dwelling with an insured value of $500,000 or
151less. Homeowners who are low-income persons, as defined in s.
152420.0004(10), are exempt from this requirement.
153     3.  Have undergone an acceptable wind certification and
154hurricane mitigation inspection, if the property is an existing
155structure.
156
157An application for a grant must contain a signed or
158electronically verified statement made under penalty of perjury
159that the applicant has submitted only a single application and
160must have attached documents demonstrating the applicant meets
161the requirements of this paragraph. A residential property which
162is part of a multifamily residential unit may receive a grant
163only if all homeowners participate and the total number of units
164does not exceed four.
165     (b)  All grants must be matched on a dollar-for-dollar
166basis for a total of $10,000 for the actual cost of the
167mitigation project with the state's contribution not to exceed
168$5,000.
169     (c)  The program shall create a process in which mitigation
170contractors agree to participate and seek reimbursement from the
171state and homeowners select from a list of participating
172contractors. All mitigation must be based upon the securing of
173all required local permits and inspections. Mitigation projects
174are subject to random reinspection of up to at least 5 10
175percent of all projects. Wind certification and hurricane
176mitigation inspectors qualifying for the program may also
177participate as mitigation contractors as long as the inspectors
178meet the department's qualifications and certification
179requirements for mitigation contractors.
180     (d)  Matching fund grants shall also be made available to
181local governments and nonprofit entities for projects that will
182reduce hurricane damage to single-family, site-built, owner-
183occupied, residential property.
184     (e)  Grants may be used for the following improvements:
185     1.  Roof deck attachment.
186     2.  Secondary water barrier.
187     3.  Roof covering.
188     4.  Brace gable ends.
189     5.  Reinforce roof-to-wall connections.
190     6.  Opening protection.
191     7.  Exterior doors, including garage doors.
192     (f)  Grants may be used on a previously inspected existing
193structure or on a rebuild. A rebuild is defined as a site-built,
194single-family dwelling under construction to replace a home that
195was destroyed or significantly damaged by a hurricane and deemed
196unlivable by a regulatory authority. The homeowner must have had
197a homestead exemption prior to the hurricane and maintained the
198homestead exemption.
199     (g)  Low-income homeowners, as defined in s. 420.0004(10),
200who otherwise meet the requirements of paragraphs (a), (c), (e),
201and (f) are eligible for a grant of up to $5,000 and are not
202required to provide a matching amount to receive the grant.
203Additionally, for low-income homeowners, grant funding may be
204used for repair to existing structures leading to any of the
205mitigation improvements provided in paragraph (e), limited to 20
206percent of the grant value. The program may accept a
207certification directly from a low-income homeowner that the
208homeowner meets the requirements of s. 420.0004(10) if the
209homeowner provides such certification in a signed or
210electronically verified statement made under penalty of perjury.
211     (h)  Priority of grants shall be given to site-built,
212single-family, residential properties:
213     1.  Built prior to the adoption of the American Society of
214Civil Engineers Standard 7, 2002 edition (ACSE 7-02) into the
215Florida Building Code;
216     2.  In coastal counties;
217     3.  In interior counties significantly impacted by the
218hurricanes of 2004 and 2005; or
219     4.  Insured by Citizens Property Insurance Corporation in
220the high risk account.
221     (i)  The department shall develop a process that ensures
222the most efficient means to collect and verify grant
223applications to determine eligibility and may direct wind
224certification inspectors to collect and verify grant application
225information or use the Internet or other electronic means to
226collect information and determine eligibility.
227     (j)  The department shall transfer the amount of $40
228million from funds appropriated to the program, including up to
2295 percent for administrative costs, to Volunteer Florida
230Foundation, Inc., for provision of inspections and grants to
231low-income homeowners, as defined in s. 420.0004(10), consistent
232with this section. Volunteer Florida Foundation, Inc., shall be
233responsible for inspections and grants management for low-income
234homeowners and shall report its activities and account for state
235funds on a quarterly and annual basis to the Chief Financial
236Officer, the President of the Senate, and the Speaker of the
237House of Representatives.
238     (3)  EDUCATION AND CONSUMER AWARENESS.--The department may
239undertake a statewide multimedia public outreach and advertising
240campaign to inform consumers of the availability and benefits of
241hurricane inspections and of the safety and financial benefits
242of residential hurricane damage mitigation. The department may
243seek out and use local, state, federal, and private funds to
244support the campaign. Multimedia public education, awareness,
245and advertising efforts designed to specifically address
246mitigation techniques shall be employed, as well as a component
247to support ongoing consumer resources and referral services.
248     (4)  ADVISORY COUNCIL.--There is created an advisory
249council to provide advice and assistance to the department
250regarding program administrator with regard to his or her
251administration of the program. The advisory council shall
252consist of:
253     (a)  A representative of lending institutions, selected by
254the Financial Services Commission from a list of at least three
255persons recommended by the Florida Bankers Association.
256     (b)  A representative of residential property insurers,
257selected by the Financial Services Commission from a list of at
258least three persons recommended by the Florida Insurance
259Council.
260     (c)  A representative of home builders, selected by the
261Financial Services Commission from a list of at least three
262persons recommended by the Florida Home Builders Association.
263     (d)  A faculty member of a state university, selected by
264the Financial Services Commission, who is an expert in
265hurricane-resistant construction methodologies and materials.
266     (e)  Two members of the House of Representatives, selected
267by the Speaker of the House of Representatives.
268     (f)  Two members of the Senate, selected by the President
269of the Senate.
270     (g)  The Chief Executive Officer of the Federal Alliance
271for Safe Homes, Inc., or his or her designee.
272     (h)  The senior officer of the Florida Hurricane
273Catastrophe Fund.
274     (i)  The executive director of Citizens Property Insurance
275Corporation.
276     (j)  The director of the Division of Emergency Management
277of the Department of Community Affairs.
278
279Members appointed under paragraphs (a)-(d) shall serve at the
280pleasure of the Financial Services Commission. Members appointed
281under paragraphs (e) and (f) shall serve at the pleasure of the
282appointing officer. All other members shall serve voting ex
283officio. Members of the advisory council shall serve without
284compensation but may receive reimbursement as provided in s.
285112.061 for per diem and travel expenses incurred in the
286performance of their official duties.
287     (5)  FEDERAL FUNDING.--The department may seek out and
288leverage local, state, federal, or private funds to enhance
289shall use its best efforts to obtain grants or funds from the
290federal government to supplement the financial resources of the
291program, consistent with this section.
292     (6)  RULES.--The Department of Financial Services shall
293adopt rules pursuant to ss. 120.536(1) and 120.54 to govern
294governing the Florida Comprehensive Hurricane Damage Mitigation
295program, implement the provisions of this section, including
296rules governing wind certification and hurricane mitigation
297inspections, mitigation contractors, and training of inspectors
298and contractors, and carry out the duties of the department
299under this section. The department shall also adopt rules
300establishing priorities for grants provided under this section
301based on objective criteria that gives priority to reducing the
302state's probable maximum loss from hurricanes. However, pursuant
303to this overall goal, the department may further establish
304priorities based on the insured value of the dwelling, whether
305or not the dwelling is insured by Citizens Property Insurance
306Corporation and whether or not the area under consideration has
307sufficient resources and the ability to perform the retrofitting
308required.
309     (7)  CONTRACTS WITH NOT-FOR-PROFIT CORPORATIONS.--The
310Department of Financial Services is authorized to contract with
311not-for-profit corporations to conduct all or portions of the
312program and to increase the awareness of the benefits of
313mitigation among homeowners in this state. The department shall
314consider the not-for-profit corporation's ability to raise funds
315from the private sector to provide for mitigation grants, as
316well as administrative capabilities for conducting other
317business related to the program.
318     (7)(8)  WIND CERTIFICATION AND HURRICANE MITIGATION
319INSPECTOR LIST.--The department shall develop and maintain as a
320public record a current list of wind certification and hurricane
321mitigation inspectors authorized to conduct wind certification
322and hurricane mitigation inspections pursuant to this section.
323     (8)  NO-INTEREST LOANS.--The department shall develop a no-
324no-interest loan program by December 31, 2007, to encourage the
325private sector to provide loans to owners of site-built,
326single-family, residential property to pay for mitigation
327measures listed in subsection (2). A loan eligible for interest
328payments pursuant to this subsection may be for a term of up to
3293 years and cover up to $5,000 in mitigation measures. The
330department shall pay the creditor the market rate of interest
331using funds appropriated for the My Safe Florida Home program.
332In no case shall the department pay more than the interest rate
333set by s. 687.03. To be eligible for a loan, a loan applicant
334must first obtain a home inspection and report that specifies
335what improvements are needed to reduce the property's
336vulnerability to windstorm damage pursuant to this section and
337meet loan underwriting requirements set by the lender. The
338department shall set aside $10 million from funds appropriated
339for the My Safe Florida Home program to implement this
340subsection. The department shall adopt rules pursuant to ss.
341120.36(1) and 120.54 to implement this subsection.
342     (9)  PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE
343BROKERS AND SALES ASSOCIATES.--The program shall develop
344brochures for distribution to general contractors, roofing
345contractors, and real estate brokers and sales associates
346licensed under part I of chapter 475 explaining the benefits to
347homeowners of residential hurricane damage mitigation. The
348program shall encourage contractors to distribute the brochures
349to homeowners at the first meeting with a homeowner who is
350considering contracting for home or roof repairs or contracting
351for the construction of a new home. The program shall encourage
352real estate brokers and sales associates licensed under part I
353of chapter 475 to distribute the brochures to clients prior to
354the purchase of a home. The brochures may be made available
355electronically.
356     (10)  CONTRACT MANAGEMENT.--The department may contract
357with third parties for grants management, inspection services,
358educational outreach, and auditing services. Such contracts
359shall be considered direct costs of the program and shall not be
360subject to administrative cost limits, but contracts valued at
361$500,000 or more shall be subject to review and approval by the
362Legislative Budget Commission. The department shall contract
363with providers that have a demonstrated record of successful
364business operations in areas directly related to the services to
365be provided and shall ensure the highest accountability for use
366of state funds, consistent with this section.
367     (11)  INTENT.--It is the intent of the Legislature that
368grants made to residential property owners under this section
369shall be considered disaster-relief assistance within the
370meaning of s. 139 of the Internal Revenue Code of 1986, as
371amended.
372     (12)  REPORTS.--The department shall make an annual report
373on the activities of the program that shall account for the use
374of state funds and indicate the number of inspections requested,
375the number of inspections performed, the number of grant
376applications received, and the number and value of grants
377approved. The report shall be delivered to the President of the
378Senate and the Speaker of the House of Representatives by
379February 1 of each year.
380     Section 2.  Subsection (1) of section 215.559, Florida
381Statutes, is amended to read:
382     215.559  Hurricane Loss Mitigation Program.--
383     (1)  There is created a Hurricane Loss Mitigation Program.
384The Legislature shall annually appropriate $10 million of the
385moneys authorized for appropriation under s. 215.555(7)(c) from
386the Florida Hurricane Catastrophe Fund to the Department of
387Community Affairs for the purposes set forth in this section.
388The Legislature shall annually appropriate $1 million of the
389moneys authorized for appropriation under s. 215.555(7)(c) from
390the Florida Hurricane Catastrophe Fund to the Florida
391Catastrophic Storm Risk Management Center of Excellence.
392     Section 3.  Section 215.5597, Florida Statutes, is created
393to read:
394     215.5597  Florida Catastrophic Storm Risk Management Center
395of Excellence.--The Florida Catastrophic Storm Risk Management
396Center of Excellence is created at the Florida State University,
397College of Business, Department of Risk Management. The purpose
398of the center is to promote and disseminate research on issues
399related to hurricane catastrophe loss and to assist in
400identifying and developing education and research grant funding
401opportunities among higher education institutions in this state
402and the private sector. The purpose of activities of the center
403is to support the state's ability to prepare for, respond to,
404and recover from catastrophic storms. The center shall:
405     (1)  Coordinate and disseminate applied research efforts
406that are expected to have an immediate impact on policy and
407practices related to windstorm mitigation.
408     (2)  Coordinate and disseminate information related to
409catastrophic storm risk management, including, but not limited
410to, research and information that would benefit businesses,
411consumers, and public policy makers. Areas of interest may
412include storm forecasting, loss modeling, building construction
413and mitigation, and risk management strategies. Through its
414efforts, the center shall facilitate Florida's preparedness for
415and responsiveness to catastrophic storms.
416     (3)  Create and promote studies that enhance the
417educational options available to risk management and insurance
418students.
419     (4)  Publish and disseminate findings.
420     (5)  Organize and sponsor conferences, symposia, and
421workshops to educate consumers and policymakers.
422     Section 4.  Paragraph (b) of subsection (4) of section
423489.115, Florida Statutes, is amended to read:
424     489.115  Certification and registration; endorsement;
425reciprocity; renewals; continuing education.--
426     (4)
427     (b)1.  Each certificateholder or registrant shall provide
428proof, in a form established by rule of the board, that the
429certificateholder or registrant has completed at least 14
430classroom hours of at least 50 minutes each of continuing
431education courses during each biennium since the issuance or
432renewal of the certificate or registration. The board shall
433establish by rule that a portion of the required 14 hours must
434deal with the subject of workers' compensation, business
435practices, wind mitigation methodologies, and workplace safety.
436The board shall by rule establish criteria for the approval of
437continuing education courses and providers, including
438requirements relating to the content of courses and standards
439for approval of providers, and may by rule establish criteria
440for accepting alternative nonclassroom continuing education on
441an hour-for-hour basis. The board shall prescribe by rule the
442continuing education, if any, which is required during the first
443biennium of initial licensure. A person who has been licensed
444for less than an entire biennium must not be required to
445complete the full 14 hours of continuing education.
446     2.  In addition, the board may approve specialized
447continuing education courses on compliance with the wind
448resistance provisions for one and two family dwellings contained
449in the Florida Building Code and any alternate methodologies for
450providing such wind resistance which have been approved for use
451by the Florida Building Commission or wind mitigation
452methodologies approved by the Department of Financial Services.
453Division I certificateholders or registrants who demonstrate
454proficiency upon completion of such specialized courses may
455certify plans and specifications for one and two family
456dwellings to be in compliance with the code or alternate
457methodologies, as appropriate, except for dwellings located in
458floodways or coastal hazard areas as defined in ss. 60.3D and E
459of the National Flood Insurance Program.
460     3.  Each certificateholder or registrant shall provide to
461the board proof of completion of the core curriculum courses, or
462passing the equivalency test of the Building Code Training
463Program established under s. 553.841, specific to the licensing
464category sought, within 2 years after commencement of the
465program or of initial certification or registration, whichever
466is later. Classroom hours spent taking core curriculum courses
467shall count toward the number required for renewal of
468certificates or registration. A certificateholder or registrant
469who passes the equivalency test in lieu of taking the core
470curriculum courses shall receive full credit for core curriculum
471course hours.
472     4.  The board shall require, by rule adopted pursuant to
473ss. 120.536(1) and 120.54, a specified number of hours in
474specialized or advanced module courses, approved by the Florida
475Building Commission, on any portion of the Florida Building
476Code, adopted pursuant to part VII of chapter 553, relating to
477the contractor's respective discipline.
478     Section 5.  Sections 4, 39, and 42 of chapter 2006-12, Laws
479of Florida, are amended to read:
480     Section 4.  Of the funds appropriated for the My Safe
481Florida Home Comprehensive Hurricane Damage Mitigation Program
482specified in s. 215.5586, Florida Statutes, as created by this
483act, $22.5 $7.5 million shall be for the Manufactured Housing
484and Mobile Home Mitigation and Enhancement Program specified in
485s. 215.559(4)(b), Florida Statutes, as created by this act. The
486Department of Financial Services shall use these funds to
487contract with Tallahassee Community College to implement the
488Manufactured Housing and Mobile Home Mitigation and Enhancement
489Program.
490     Section 39.  (1)  The Office of Insurance Regulation, in
491consultation with the Department of Community Affairs, the
492Department of Financial Services, the Federal Alliance for Safe
493Homes, the Florida Insurance Council, the Florida Home Builders
494Association, the Florida Manufactured Housing Association, the
495Risk and Insurance Department of Florida State University, and
496the Institute for Business and Homes Safety, shall study and
497develop a program that will provide an objective rating system
498that will allow homeowners to evaluate the relative ability of
499Florida properties to withstand the wind load from a sustained
500severe tropical storm or hurricane.
501     (2)  The rating system will be designed in a manner that is
502easy to understand for the property owner, based on proven
503readily verifiable mitigation techniques and devices, and able
504to be implemented based on a visual inspection program. The
505Department of Financial Services shall implement a pilot program
506for use in the My Safe Florida Home Comprehensive Hurricane
507Damage Mitigation Program.
508     (3)  The Department shall provide a report to the Governor,
509the President of the Senate, and the Speaker of the House of
510Representatives by March 31, 2007, detailing the nature and
511construction of the rating scale, its effectiveness based on
512implementation in a pilot program, and an operational plan for
513statewide implementation of the rating scale.
514     Section 42.  (1)  For the 2006-2007 fiscal year, the sum of
515$250 million is appropriated on a nonrecurring basis from the
516General Revenue Fund to the Insurance Regulatory Trust Fund in
517the Department of Financial Services for purposes of the My Safe
518Florida Home Comprehensive Hurricane Damage Mitigation Program
519specified in s. 215.5586, Florida Statutes, as created by this
520act. The department shall establish a separate account within
521the trust fund for accounting purposes.
522     (2)  The sum of $250 million is appropriated from the
523Insurance Regulatory Trust Fund in the Department of Financial
524Services for the purposes set forth in subsection (1). The
525department may expend up to 1 percent of the funds appropriated
526to administer the program. Beginning October 15, 2007, and
527quarterly thereafter, the Chief Financial Officer shall provide
528a report to the Executive Office of the Governor and the chair
529and vice chair of the Legislative Budget Commission containing
530information regarding expenditures made for the purposes set
531forth in subsection (1).
532     (3)  Notwithstanding the provisions of s. 216.301, Florida
533Statutes, to the contrary, the unexpended balance of
534appropriations authorized in subsections (1) and (2) shall not
535revert until June 30, 2009.
536     Section 6.  This act shall take effect July 1, 2007.


CODING: Words stricken are deletions; words underlined are additions.