CS/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; creating s.
391004.647, F.S.; creating the Florida Catastrophic Storm
40Risk Management Center of Excellence at Florida State
41University; providing purposes; providing responsibilities
42of the center; amending s. 489.115, F.S.; including wind
43mitigation methodologies under certain continuing
44education requirements for contractors; amending ss. 4,
4539, and 42 of ch. 2006-12, Laws of Florida; providing
46conforming changes to the redesignation of the Florida
47Comprehensive Hurricane Damage Mitigation Program;
48providing an appropriation; providing an effective date.
49
50Be It Enacted by the Legislature of the State of Florida:
51
52     Section 1.  Section 215.5586, Florida Statutes, is amended
53to read:
54     215.5586  My Safe Florida Home Comprehensive Hurricane
55Damage Mitigation Program.--There is established within the
56Department of Financial Services the My Safe Florida Home
57Comprehensive Hurricane Damage Mitigation Program. The
58department shall provide fiscal accountability, contract
59management, and strategic leadership for the program, consistent
60with this section. This section does not create an entitlement
61for property owners or obligate the state in any way to fund the
62inspection or retrofitting of residential property in this
63state. Implementation of this program is subject to annual
64legislative appropriations. It is the intent of the Legislature
65that the My Safe Florida Home Program provide inspections for at
66least 400,000 site-built, single-family, residential properties
67and provide grants to at least 35,000 applicants before June 30,
682009. The program shall be administered by an individual with
69prior executive experience in the private sector in the areas of
70insurance, business, or construction. The program shall develop
71and implement a comprehensive and coordinated approach for
72hurricane damage mitigation that shall include the following:
73     (1)  WIND CERTIFICATION AND HURRICANE MITIGATION
74INSPECTIONS.--
75     (a)  Free home-retrofit inspections of site-built,
76single-family, residential property, including single-family,
77two-family, three-family, or four-family residential units,
78shall be offered throughout the state to determine what
79mitigation measures are needed, what insurance premium discounts
80may be available, and what improvements to existing residential
81properties are needed to reduce the property's vulnerability to
82hurricane damage. The Department of Financial Services shall
83establish a request for proposals to solicit proposals from wind
84certification entities to provide free at no cost to homeowners
85wind certification and hurricane mitigation inspections. The
86inspections provided to homeowners, at a minimum, must include:
87     1.  A home inspection and report that summarizes the
88results and identifies corrective actions a homeowner may take
89to mitigate hurricane damage.
90     2.  A range of cost estimates regarding the mitigation
91features.
92     3.  Insurer-specific information regarding premium
93discounts correlated to recommended mitigation features
94identified by the inspection.
95     4.  A hurricane resistance rating scale specifying the
96home's current as well as projected wind resistance
97capabilities.
98     (b)  To qualify for selection by the department as a
99provider of wind certification and hurricane mitigation
100inspections, the entity shall, at a minimum:
101     1.  Use wind certification and hurricane mitigation
102inspectors who:
103     a.  Have prior experience in residential construction or
104inspection and have received specialized training in hurricane
105mitigation procedures. Such training may be provided by a class
106offered online or in person.
107     b.  Have undergone drug testing and level 2 background
108checks pursuant to s. 435.04. The department is authorized to
109conduct criminal record checks of inspectors. Inspectors must
110submit a set of the fingerprints to the department for state and
111national criminal history checks and must pay the fingerprint
112processing fee set forth in s. 624.501. The fingerprints shall
113be sent by the department to the Department of Law Enforcement
114and forwarded to the Federal Bureau of Investigation for
115processing. The results shall be returned to the department for
116screening. The fingerprints shall be taken by a law enforcement
117agency, designated examination center, or other department-
118approved entity. Wind certification and hurricane mitigation
119inspectors participating in the program on the effective date of
120this act shall have until June 1, 2007, to meet the requirements
121for a criminal record check.
122     c.  Have been certified, in a manner satisfactory to the
123department, to conduct the inspections.
124     2.  Provide a quality assurance program including a
125reinspection component.
126     (c)  An application for an inspection must contain a signed
127or electronically verified statement made under penalty of
128perjury that the applicant has submitted only a single
129application.
130     (d)  The owner of a site-built, single-family, residential
131property may apply for and receive an inspection without also
132applying for a grant pursuant to subsection (2) and without
133meeting the requirements of paragraph (2)(a).
134     (e)  The department shall develop and maintain as a public
135record a current list of wind certification and hurricane
136mitigation inspectors authorized to conduct wind certification
137and hurricane mitigation inspections pursuant to this section.
138     (2)  MITIGATION GRANTS.--Financial grants shall be used to
139encourage single-family, site-built, owner-occupied, residential
140property owners to retrofit their properties to make them less
141vulnerable to hurricane damage.
142     (a)  To be eligible for a grant, a residential property
143must:
144     1.  Have been granted a homestead exemption under chapter
145196.
146     2.  Be a dwelling with an insured value of $500,000 or
147less. Homeowners who are low-income persons, as defined in s.
148420.0004(10), are exempt from this requirement.
149     3.  Have undergone an acceptable wind certification and
150hurricane mitigation inspection, if the property is an existing
151structure.
152
153An application for a grant must contain a signed or
154electronically verified statement made under penalty of perjury
155that the applicant has submitted only a single application and
156must have attached documents demonstrating the applicant meets
157the requirements of this paragraph. A residential property which
158is part of a multifamily residential unit may receive a grant
159only if all homeowners participate and the total number of units
160does not exceed four.
161     (b)  All grants must be matched on a dollar-for-dollar
162basis for a total of $10,000 for the actual cost of the
163mitigation project with the state's contribution not to exceed
164$5,000.
165     (c)  The program shall create a process in which mitigation
166contractors agree to participate and seek reimbursement from the
167state and homeowners select from a list of participating
168contractors. All mitigation must be based upon the securing of
169all required local permits and inspections. Mitigation projects
170are subject to random reinspection of up to at least 5 10
171percent of all projects. Wind certification and hurricane
172mitigation inspectors qualifying for the program may also
173participate as mitigation contractors as long as the inspectors
174meet the department's qualifications and certification
175requirements for mitigation contractors.
176     (d)  Matching fund grants shall also be made available to
177local governments and nonprofit entities for projects that will
178reduce hurricane damage to single-family, site-built, owner-
179occupied, residential property.
180     (e)  Grants may be used for the following improvements:
181     1.  Roof deck attachment.
182     2.  Secondary water barrier.
183     3.  Roof covering.
184     4.  Brace gable ends.
185     5.  Reinforce roof-to-wall connections.
186     6.  Opening protection.
187     7.  Exterior doors, including garage doors.
188     (f)  Grants may be used on a previously inspected existing
189structure or on a rebuild. A rebuild is defined as a site-built,
190single-family dwelling under construction to replace a home that
191was destroyed or significantly damaged by a hurricane and deemed
192unlivable by a regulatory authority. The homeowner must have had
193a homestead exemption prior to the hurricane and maintained the
194homestead exemption.
195     (g)  Low-income homeowners, as defined in s. 420.0004(10),
196who otherwise meet the requirements of paragraphs (a), (c), (e),
197and (f) are eligible for a grant of up to $5,000 and are not
198required to provide a matching amount to receive the grant.
199Additionally, for low-income homeowners, grant funding may be
200used for repair to existing structures leading to any of the
201mitigation improvements provided in paragraph (e), limited to 20
202percent of the grant value. The program may accept a
203certification directly from a low-income homeowner that the
204homeowner meets the requirements of s. 420.0004(10) if the
205homeowner provides such certification in a signed or
206electronically verified statement made under penalty of perjury.
207     (h)  Priority of grants shall be given to site-built,
208single-family, residential properties:
209     1.  Built prior to the adoption of the American Society of
210Civil Engineers Standard 7, 2002 edition (ACSE 7-02) into the
211Florida Building Code;
212     2.  In coastal counties;
213     3.  In interior counties significantly impacted by the
214hurricanes of 2004 and 2005; or
215     4.  Insured by Citizens Property Insurance Corporation in
216the high risk account.
217     (i)  The department shall develop a process that ensures
218the most efficient means to collect and verify grant
219applications to determine eligibility and may direct wind
220certification inspectors to collect and verify grant application
221information or use the Internet or other electronic means to
222collect information and determine eligibility.
223     (j)  The department shall transfer the amount of $40
224million from funds appropriated to the program, including up to
2255 percent for administrative costs, to Volunteer Florida
226Foundation, Inc., for provision of inspections and grants to
227low-income homeowners, as defined in s. 420.0004(10), consistent
228with this section. Volunteer Florida Foundation, Inc., shall be
229responsible for inspections and grants management for low-income
230homeowners and shall report its activities and account for state
231funds on a quarterly and annual basis to the Chief Financial
232Officer, the President of the Senate, and the Speaker of the
233House of Representatives.
234     (3)  EDUCATION AND CONSUMER AWARENESS.--The department may
235undertake a statewide multimedia public outreach and advertising
236campaign to inform consumers of the availability and benefits of
237hurricane inspections and of the safety and financial benefits
238of residential hurricane damage mitigation. The department may
239seek out and use local, state, federal, and private funds to
240support the campaign. Multimedia public education, awareness,
241and advertising efforts designed to specifically address
242mitigation techniques shall be employed, as well as a component
243to support ongoing consumer resources and referral services.
244     (4)  ADVISORY COUNCIL.--There is created an advisory
245council to provide advice and assistance to the department
246regarding program administrator with regard to his or her
247administration of the program. The advisory council shall
248consist of:
249     (a)  A representative of lending institutions, selected by
250the Financial Services Commission from a list of at least three
251persons recommended by the Florida Bankers Association.
252     (b)  A representative of residential property insurers,
253selected by the Financial Services Commission from a list of at
254least three persons recommended by the Florida Insurance
255Council.
256     (c)  A representative of home builders, selected by the
257Financial Services Commission from a list of at least three
258persons recommended by the Florida Home Builders Association.
259     (d)  A faculty member of a state university, selected by
260the Financial Services Commission, who is an expert in
261hurricane-resistant construction methodologies and materials.
262     (e)  Two members of the House of Representatives, selected
263by the Speaker of the House of Representatives.
264     (f)  Two members of the Senate, selected by the President
265of the Senate.
266     (g)  The Chief Executive Officer of the Federal Alliance
267for Safe Homes, Inc., or his or her designee.
268     (h)  The senior officer of the Florida Hurricane
269Catastrophe Fund.
270     (i)  The executive director of Citizens Property Insurance
271Corporation.
272     (j)  The director of the Division of Emergency Management
273of the Department of Community Affairs.
274
275Members appointed under paragraphs (a)-(d) shall serve at the
276pleasure of the Financial Services Commission. Members appointed
277under paragraphs (e) and (f) shall serve at the pleasure of the
278appointing officer. All other members shall serve voting ex
279officio. Members of the advisory council shall serve without
280compensation but may receive reimbursement as provided in s.
281112.061 for per diem and travel expenses incurred in the
282performance of their official duties.
283     (5)  FEDERAL FUNDING.--The department may seek out and
284leverage local, state, federal, or private funds to enhance
285shall use its best efforts to obtain grants or funds from the
286federal government to supplement the financial resources of the
287program, consistent with this section.
288     (6)  RULES.--The Department of Financial Services shall
289adopt rules pursuant to ss. 120.536(1) and 120.54 to govern
290governing the Florida Comprehensive Hurricane Damage Mitigation
291program, implement the provisions of this section, including
292rules governing wind certification and hurricane mitigation
293inspections, mitigation contractors, and training of inspectors
294and contractors, and carry out the duties of the department
295under this section. The department shall also adopt rules
296establishing priorities for grants provided under this section
297based on objective criteria that gives priority to reducing the
298state's probable maximum loss from hurricanes. However, pursuant
299to this overall goal, the department may further establish
300priorities based on the insured value of the dwelling, whether
301or not the dwelling is insured by Citizens Property Insurance
302Corporation and whether or not the area under consideration has
303sufficient resources and the ability to perform the retrofitting
304required.
305     (7)  CONTRACTS WITH NOT-FOR-PROFIT CORPORATIONS.--The
306Department of Financial Services is authorized to contract with
307not-for-profit corporations to conduct all or portions of the
308program and to increase the awareness of the benefits of
309mitigation among homeowners in this state. The department shall
310consider the not-for-profit corporation's ability to raise funds
311from the private sector to provide for mitigation grants, as
312well as administrative capabilities for conducting other
313business related to the program.
314     (7)(8)  WIND CERTIFICATION AND HURRICANE MITIGATION
315INSPECTOR LIST.--The department shall develop and maintain as a
316public record a current list of wind certification and hurricane
317mitigation inspectors authorized to conduct wind certification
318and hurricane mitigation inspections pursuant to this section.
319     (8)  NO-INTEREST LOANS.--The department shall develop a no-
320no-interest loan program by December 31, 2007, to encourage the
321private sector to provide loans to owners of site-built,
322single-family, residential property to pay for mitigation
323measures listed in subsection (2). A loan eligible for interest
324payments pursuant to this subsection may be for a term of up to
3253 years and cover up to $5,000 in mitigation measures. The
326department shall pay the creditor the market rate of interest
327using funds appropriated for the My Safe Florida Home program.
328In no case shall the department pay more than the interest rate
329set by s. 687.03. To be eligible for a loan, a loan applicant
330must first obtain a home inspection and report that specifies
331what improvements are needed to reduce the property's
332vulnerability to windstorm damage pursuant to this section and
333meet loan underwriting requirements set by the lender. The
334department shall set aside $10 million from funds appropriated
335for the My Safe Florida Home program to implement this
336subsection. The department shall adopt rules pursuant to ss.
337120.36(1) and 120.54 to implement this subsection.
338     (9)  PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE
339BROKERS AND SALES ASSOCIATES.--The program shall develop
340brochures for distribution to general contractors, roofing
341contractors, and real estate brokers and sales associates
342licensed under part I of chapter 475 explaining the benefits to
343homeowners of residential hurricane damage mitigation. The
344program shall encourage contractors to distribute the brochures
345to homeowners at the first meeting with a homeowner who is
346considering contracting for home or roof repairs or contracting
347for the construction of a new home. The program shall encourage
348real estate brokers and sales associates licensed under part I
349of chapter 475 to distribute the brochures to clients prior to
350the purchase of a home. The brochures may be made available
351electronically.
352     (10)  CONTRACT MANAGEMENT.--The department may contract
353with third parties for grants management, inspection services,
354educational outreach, and auditing services. Such contracts
355shall be considered direct costs of the program and shall not be
356subject to administrative cost limits, but contracts valued at
357$500,000 or more shall be subject to review and approval by the
358Legislative Budget Commission. The department shall contract
359with providers that have a demonstrated record of successful
360business operations in areas directly related to the services to
361be provided and shall ensure the highest accountability for use
362of state funds, consistent with this section.
363     (11)  INTENT.--It is the intent of the Legislature that
364grants made to residential property owners under this section
365shall be considered disaster-relief assistance within the
366meaning of s. 139 of the Internal Revenue Code of 1986, as
367amended.
368     (12)  REPORTS.--The department shall make an annual report
369on the activities of the program that shall account for the use
370of state funds and indicate the number of inspections requested,
371the number of inspections performed, the number of grant
372applications received, and the number and value of grants
373approved. The report shall be delivered to the President of the
374Senate and the Speaker of the House of Representatives by
375February 1 of each year.
376     Section 2.  Section 1004.647, Florida Statutes, is created
377to read:
3781004.647  Florida Catastrophic Storm Risk Management Center
379of Excellence.--The Florida Catastrophic Storm Risk Management
380Center of Excellence is created at the Florida State University,
381College of Business, Department of Risk Management. The purpose
382of the center is to promote and disseminate research on issues
383related to hurricane catastrophe loss and to assist in
384identifying and developing education and research grant funding
385opportunities among higher education institutions in this state
386and the private sector. The purpose of activities of the center
387is to support the state's ability to prepare for, respond to,
388and recover from catastrophic storms. The center shall:
389     (1)  Coordinate and disseminate applied research efforts
390that are expected to have an immediate impact on policy and
391practices related to windstorm mitigation.
392     (2)  Coordinate and disseminate information related to
393catastrophic storm risk management, including, but not limited
394to, research and information that would benefit businesses,
395consumers, and public policy makers. Areas of interest may
396include storm forecasting, loss modeling, building construction
397and mitigation, and risk management strategies. Through its
398efforts, the center shall facilitate Florida's preparedness for
399and responsiveness to catastrophic storms.
400     (3)  Create and promote studies that enhance the
401educational options available to risk management and insurance
402students.
403     (4)  Publish and disseminate findings.
404     (5)  Organize and sponsor conferences, symposia, and
405workshops to educate consumers and policymakers.
406     Section 3.  Paragraph (b) of subsection (4) of section
407489.115, Florida Statutes, is amended to read:
408     489.115  Certification and registration; endorsement;
409reciprocity; renewals; continuing education.--
410     (4)
411     (b)1.  Each certificateholder or registrant shall provide
412proof, in a form established by rule of the board, that the
413certificateholder or registrant has completed at least 14
414classroom hours of at least 50 minutes each of continuing
415education courses during each biennium since the issuance or
416renewal of the certificate or registration. The board shall
417establish by rule that a portion of the required 14 hours must
418deal with the subject of workers' compensation, business
419practices, wind mitigation methodologies, and workplace safety.
420The board shall by rule establish criteria for the approval of
421continuing education courses and providers, including
422requirements relating to the content of courses and standards
423for approval of providers, and may by rule establish criteria
424for accepting alternative nonclassroom continuing education on
425an hour-for-hour basis. The board shall prescribe by rule the
426continuing education, if any, which is required during the first
427biennium of initial licensure. A person who has been licensed
428for less than an entire biennium must not be required to
429complete the full 14 hours of continuing education.
430     2.  In addition, the board may approve specialized
431continuing education courses on compliance with the wind
432resistance provisions for one and two family dwellings contained
433in the Florida Building Code and any alternate methodologies for
434providing such wind resistance which have been approved for use
435by the Florida Building Commission or wind mitigation
436methodologies approved by the Department of Financial Services.
437Division I certificateholders or registrants who demonstrate
438proficiency upon completion of such specialized courses may
439certify plans and specifications for one and two family
440dwellings to be in compliance with the code or alternate
441methodologies, as appropriate, except for dwellings located in
442floodways or coastal hazard areas as defined in ss. 60.3D and E
443of the National Flood Insurance Program.
444     3.  Each certificateholder or registrant shall provide to
445the board proof of completion of the core curriculum courses, or
446passing the equivalency test of the Building Code Training
447Program established under s. 553.841, specific to the licensing
448category sought, within 2 years after commencement of the
449program or of initial certification or registration, whichever
450is later. Classroom hours spent taking core curriculum courses
451shall count toward the number required for renewal of
452certificates or registration. A certificateholder or registrant
453who passes the equivalency test in lieu of taking the core
454curriculum courses shall receive full credit for core curriculum
455course hours.
456     4.  The board shall require, by rule adopted pursuant to
457ss. 120.536(1) and 120.54, a specified number of hours in
458specialized or advanced module courses, approved by the Florida
459Building Commission, on any portion of the Florida Building
460Code, adopted pursuant to part VII of chapter 553, relating to
461the contractor's respective discipline.
462     Section 4.  Sections 4, 39, and 42 of chapter 2006-12, Laws
463of Florida, are amended to read:
464     Section 4.  Of the funds appropriated for the My Safe
465Florida Home Comprehensive Hurricane Damage Mitigation Program
466specified in s. 215.5586, Florida Statutes, as created by this
467act, $22.5 $7.5 million shall be for the Manufactured Housing
468and Mobile Home Mitigation and Enhancement Program specified in
469s. 215.559(4)(b), Florida Statutes, as created by this act. The
470Department of Financial Services shall use these funds to
471contract with Tallahassee Community College to implement the
472Manufactured Housing and Mobile Home Mitigation and Enhancement
473Program.
474     Section 39.  (1)  The Office of Insurance Regulation, in
475consultation with the Department of Community Affairs, the
476Department of Financial Services, the Federal Alliance for Safe
477Homes, the Florida Insurance Council, the Florida Home Builders
478Association, the Florida Manufactured Housing Association, the
479Risk and Insurance Department of Florida State University, and
480the Institute for Business and Homes Safety, shall study and
481develop a program that will provide an objective rating system
482that will allow homeowners to evaluate the relative ability of
483Florida properties to withstand the wind load from a sustained
484severe tropical storm or hurricane.
485     (2)  The rating system will be designed in a manner that is
486easy to understand for the property owner, based on proven
487readily verifiable mitigation techniques and devices, and able
488to be implemented based on a visual inspection program. The
489Department of Financial Services shall implement a pilot program
490for use in the My Safe Florida Home Comprehensive Hurricane
491Damage Mitigation Program.
492     (3)  The Department shall provide a report to the Governor,
493the President of the Senate, and the Speaker of the House of
494Representatives by March 31, 2007, detailing the nature and
495construction of the rating scale, its effectiveness based on
496implementation in a pilot program, and an operational plan for
497statewide implementation of the rating scale.
498     Section 42.  (1)  For the 2006-2007 fiscal year, the sum of
499$250 million is appropriated on a nonrecurring basis from the
500General Revenue Fund to the Insurance Regulatory Trust Fund in
501the Department of Financial Services for purposes of the My Safe
502Florida Home Comprehensive Hurricane Damage Mitigation Program
503specified in s. 215.5586, Florida Statutes, as created by this
504act. The department shall establish a separate account within
505the trust fund for accounting purposes.
506     (2)  The sum of $250 million is appropriated from the
507Insurance Regulatory Trust Fund in the Department of Financial
508Services for the purposes set forth in subsection (1). The
509department may expend up to 1 percent of the funds appropriated
510to administer the program. Beginning October 15, 2007, and
511quarterly thereafter, the Chief Financial Officer shall provide
512a report to the Executive Office of the Governor and the chair
513and vice chair of the Legislative Budget Commission containing
514information regarding expenditures made for the purposes set
515forth in subsection (1).
516     (3)  Notwithstanding the provisions of s. 216.301, Florida
517Statutes, to the contrary, the unexpended balance of
518appropriations authorized in subsections (1) and (2) shall not
519revert until June 30, 2009.
520     Section 5.  For the 2007-2008 fiscal year, the nonrecurring
521sum of $1 million is appropriated from the General Revenue Fund
522to the Department of Education for the purpose of funding the
523Florida Catastrophic Storm Risk Management Center of Excellence
524as created by this act.
525     Section 6.  This act shall take effect July 1, 2007.


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