| 1 | A bill to be entitled |
| 2 | An act relating to hurricane damage mitigation; amending |
| 3 | s. 215.5586, F.S.; redesignating the Florida Comprehensive |
| 4 | Hurricane Damage Mitigation Program as the "My Safe |
| 5 | Florida Home Program"; providing additional duties of the |
| 6 | Department of Financial Services; providing additional |
| 7 | legislative intent; revising criteria and requirements for |
| 8 | hurricane mitigation inspections; requiring the department |
| 9 | to contract with certain entities to provide hurricane |
| 10 | mitigation inspections; revising the requirements for such |
| 11 | inspections; providing for a hurricane resistance rating |
| 12 | scale as adopted by the Financial Services Commission; |
| 13 | revising the requirements for an entity to be selected by |
| 14 | the department to perform inspections; providing |
| 15 | requirements for a homeowner with respect to applying for |
| 16 | an inspection; revising requirements for mitigation |
| 17 | grants; authorizing inspectors to participate as |
| 18 | contractors under certain circumstances; limiting the |
| 19 | purposes for which a grant may be used; providing for |
| 20 | priorities of grants; requiring the department to develop |
| 21 | a grant applications verification and collection process; |
| 22 | requiring the department to transfer certain appropriated |
| 23 | funds to Volunteer Florida Foundation, Inc., for certain |
| 24 | purposes; specifying duties of Volunteer Florida |
| 25 | Foundation, Inc.; authorizing the department to undertake |
| 26 | a statewide consumer information campaign; requiring the |
| 27 | advisory council to advise and assist the department in |
| 28 | administering the program; expanding the department's |
| 29 | authorization to enhance financial resource funding of the |
| 30 | program; revising the department's rulemaking authority; |
| 31 | deleting provisions authorizing the department to contract |
| 32 | with not-for-profit corporations; requiring the department |
| 33 | to maintain a list of authorized hurricane mitigation |
| 34 | inspectors; authorizing the department to develop a no- |
| 35 | interest loan program; providing program requirements and |
| 36 | limitations; requiring the department to pay certain |
| 37 | creditors from funds appropriated for the program; |
| 38 | providing loan eligibility criteria; authorizing the |
| 39 | department to set aside certain funds for program |
| 40 | purposes; requiring the department to adopt rules; |
| 41 | providing for public outreach for contractors, real estate |
| 42 | brokers, and licensed sales associates; authorizing the |
| 43 | department to contract for grants management, inspection |
| 44 | services, education outreach, and auditing services; |
| 45 | providing additional legislative intent; requiring the |
| 46 | department to make annual reports to the Legislature |
| 47 | concerning the program; providing report requirements; |
| 48 | amending s. 489.115, F.S.; including wind mitigation |
| 49 | methodologies under certain continuing education |
| 50 | requirements for contractors; amending ss. 4, 39, and 42 |
| 51 | of ch. 2006-12, Laws of Florida; providing conforming |
| 52 | changes to the redesignation of the Florida Comprehensive |
| 53 | Hurricane Damage Mitigation Program; providing legislative |
| 54 | intent; requiring the Office of Insurance Regulation, in |
| 55 | consultation with the Department of Community Affairs and |
| 56 | the Florida Building Commission, to conduct wind-loss |
| 57 | mitigation studies; providing requirements for the |
| 58 | studies; requiring reports to the Governor, the |
| 59 | Legislature, the Chief Financial Officer, and the |
| 60 | Commissioner of Insurance Regulation; creating s. 553.844, |
| 61 | F.S.; providing legislative findings concerning the need |
| 62 | to prevent property damage caused by hurricanes; requiring |
| 63 | the Florida Building Commission to adopt amendments to the |
| 64 | Florida Building Code, including requirements for certain |
| 65 | buildings constructed before the implementation of the |
| 66 | code; providing requirements for such amendments; |
| 67 | providing requirements for buildings located in a wind- |
| 68 | borne debris region; amending s. 627.351, F.S.; requiring |
| 69 | that a residential structure located in a wind-borne |
| 70 | debris region have certain opening protections required |
| 71 | under the Florida Building Code in order to be eligible |
| 72 | for coverage by the Citizens Property Insurance |
| 73 | Corporation; providing appropriations; providing an |
| 74 | effective date. |
| 75 |
|
| 76 | Be It Enacted by the Legislature of the State of Florida: |
| 77 |
|
| 78 | Section 1. Section 215.5586, Florida Statutes, is amended |
| 79 | to read: |
| 80 | 215.5586 My Safe Florida Home Comprehensive Hurricane |
| 81 | Damage Mitigation Program.--There is established within the |
| 82 | Department of Financial Services the My Safe Florida Home |
| 83 | Comprehensive Hurricane Damage Mitigation Program. The |
| 84 | department shall provide fiscal accountability, contract |
| 85 | management, and strategic leadership for the program, consistent |
| 86 | with this section. This section does not create an entitlement |
| 87 | for property owners or obligate the state in any way to fund the |
| 88 | inspection or retrofitting of residential property in this |
| 89 | state. Implementation of this program is subject to annual |
| 90 | legislative appropriations. It is the intent of the Legislature |
| 91 | that the My Safe Florida Home Program provide inspections for at |
| 92 | least 400,000 site-built, single-family, residential properties |
| 93 | and provide grants to at least 35,000 applicants before June 30, |
| 94 | 2009. The program shall be administered by an individual with |
| 95 | prior executive experience in the private sector in the areas of |
| 96 | insurance, business, or construction. The program shall develop |
| 97 | and implement a comprehensive and coordinated approach for |
| 98 | hurricane damage mitigation that shall include the following: |
| 99 | (1) WIND CERTIFICATION AND HURRICANE MITIGATION |
| 100 | INSPECTIONS.-- |
| 101 | (a) Free home-retrofit inspections of site-built, single- |
| 102 | family, residential property, including single-family, two- |
| 103 | family, three-family, or four-family residential units, shall be |
| 104 | offered throughout the state to determine what mitigation |
| 105 | measures are needed, what insurance premium discounts may be |
| 106 | available, and what improvements to existing residential |
| 107 | properties are needed to reduce the property's vulnerability to |
| 108 | hurricane damage. The Department of Financial Services shall |
| 109 | contract with establish a request for proposals to solicit |
| 110 | proposals from wind certification entities to provide free at no |
| 111 | cost to homeowners wind certification and hurricane mitigation |
| 112 | inspections. The inspections provided to homeowners, at a |
| 113 | minimum, must include: |
| 114 | 1. A home inspection and report that summarizes the |
| 115 | results and identifies recommended improvements corrective |
| 116 | actions a homeowner may take to mitigate hurricane damage. |
| 117 | 2. A range of cost estimates regarding the recommended |
| 118 | mitigation improvements features. |
| 119 | 3. Insurer-specific information regarding premium |
| 120 | discounts correlated to the current mitigation features and the |
| 121 | recommended mitigation improvements features identified by the |
| 122 | inspection. |
| 123 | 4. A hurricane resistance rating scale specifying the |
| 124 | home's current as well as projected wind resistance |
| 125 | capabilities. As soon as practical, the rating scale must be the |
| 126 | uniform home grading scale adopted by the Financial Services |
| 127 | Commission pursuant to s. 40 of chapter 2007-1, Laws of Florida. |
| 128 | (b) To qualify for selection by the department as a |
| 129 | provider of wind certification entity to provide and hurricane |
| 130 | mitigation inspections, the entity shall, at a minimum: |
| 131 | 1. Use wind certification and hurricane mitigation |
| 132 | inspectors who: |
| 133 | a. Have prior experience in residential construction or |
| 134 | inspection and have received specialized training in hurricane |
| 135 | mitigation procedures. Such training may be provided by a class |
| 136 | offered online or in person. |
| 137 | b. Have undergone drug testing and level 2 background |
| 138 | checks pursuant to s. 435.04. The department is authorized to |
| 139 | conduct criminal record checks of inspectors used by wind |
| 140 | certification entities. Inspectors must submit a set of the |
| 141 | fingerprints to the department for state and national criminal |
| 142 | history checks and must pay the fingerprint processing fee set |
| 143 | forth in s. 624.501. The fingerprints shall be sent by the |
| 144 | department to the Department of Law Enforcement and forwarded to |
| 145 | the Federal Bureau of Investigation for processing. The results |
| 146 | shall be returned to the department for screening. The |
| 147 | fingerprints shall be taken by a law enforcement agency, |
| 148 | designated examination center, or other department-approved |
| 149 | entity. Wind certification and Hurricane mitigation inspectors |
| 150 | participating in the program on January 25, 2007, the effective |
| 151 | date of this act shall have until June 1, 2007, to meet the |
| 152 | requirements for a criminal record check. |
| 153 | c. Have been certified, in a manner satisfactory to the |
| 154 | department, to conduct the inspections. |
| 155 | 2. Provide a quality assurance program including a |
| 156 | reinspection component. |
| 157 | (c) An application for an inspection must contain a signed |
| 158 | or electronically verified statement made under penalty of |
| 159 | perjury that the applicant has submitted only a single |
| 160 | application for that home. |
| 161 | (d) The owner of a site-built, single-family, residential |
| 162 | property may apply for and receive an inspection without also |
| 163 | applying for a grant pursuant to subsection (2) and without |
| 164 | meeting the requirements of paragraph (2)(a). |
| 165 | (2) MITIGATION GRANTS.--Financial grants shall be used to |
| 166 | encourage single-family, site-built, owner-occupied, residential |
| 167 | property owners to retrofit their properties to make them less |
| 168 | vulnerable to hurricane damage. |
| 169 | (a) To be eligible for a grant for persons who have |
| 170 | obtained a completed inspection after May 1, 2007, a residential |
| 171 | property must: |
| 172 | 1. Have been granted a homestead exemption under chapter |
| 173 | 196. |
| 174 | 2. Be a dwelling with an insured value of $300,000 |
| 175 | $500,000 or less. Homeowners who are low-income persons, as |
| 176 | defined in s. 420.0004(10), are exempt from this requirement. |
| 177 | 3. Have undergone an acceptable wind certification and |
| 178 | hurricane mitigation inspection, if the property is an existing |
| 179 | structure. |
| 180 | 4. Be located in the "wind-borne debris region" as that |
| 181 | term is defined in s. 1609.2, International Building Code |
| 182 | (2006). |
| 183 | 5. Be a home for which the building permit application for |
| 184 | initial construction was made before March 1, 2002. |
| 185 |
|
| 186 | An application for a grant must contain a signed or |
| 187 | electronically verified statement made under penalty of perjury |
| 188 | that the applicant has submitted only a single application and |
| 189 | must have attached documents demonstrating the applicant meets |
| 190 | the requirements of this paragraph. A residential property which |
| 191 | is part of a multifamily residential unit may receive a grant |
| 192 | only if all homeowners participate and the total number of units |
| 193 | does not exceed four. |
| 194 | (b) All grants must be matched on a dollar-for-dollar |
| 195 | basis for a total of $10,000 for the actual cost of the |
| 196 | mitigation project with the state's contribution not to exceed |
| 197 | $5,000. |
| 198 | (c) The program shall create a process in which mitigation |
| 199 | contractors agree to participate and seek reimbursement from the |
| 200 | state and homeowners select from a list of participating |
| 201 | contractors. All mitigation must be based upon the securing of |
| 202 | all required local permits and inspections and must be performed |
| 203 | by properly licensed contractors. Mitigation projects are |
| 204 | subject to random reinspection of up to at least 5 10 percent of |
| 205 | all projects. Hurricane mitigation inspectors qualifying for the |
| 206 | program may also participate as mitigation contractors as long |
| 207 | as the inspectors meet the department's qualifications and |
| 208 | certification requirements for mitigation contractors. |
| 209 | (d) Matching fund grants shall also be made available to |
| 210 | local governments and nonprofit entities for projects that will |
| 211 | reduce hurricane damage to single-family, site-built, owner- |
| 212 | occupied, residential property. The department shall liberally |
| 213 | construe those requirements in favor of availing the state of |
| 214 | the opportunity to leverage funding for the My Safe Florida Home |
| 215 | Program with other sources of funding. |
| 216 | (e) When recommended by a hurricane mitigation inspection, |
| 217 | grants may be used for the following improvements only: |
| 218 | 1. Roof deck attachment. |
| 219 | 2. Secondary water barrier. |
| 220 | 3. Roof covering. |
| 221 | 4. Brace gable ends. |
| 222 | 5. Reinforce roof-to-wall connections. |
| 223 | 1.6. Opening protection. |
| 224 | 2.7. Exterior doors, including garage doors. |
| 225 | 3. Brace gable ends. |
| 226 |
|
| 227 | The department may require that improvements be made to all |
| 228 | openings, including exterior doors and garage doors, as a |
| 229 | condition of approving an application for a grant if the |
| 230 | department determines that improvements to less than all |
| 231 | openings would not substantially improve the structure's ability |
| 232 | to withstand hurricane damage. |
| 233 | (f) Grants may be used on a previously inspected existing |
| 234 | structure or on a rebuild. A rebuild is defined as a site-built, |
| 235 | single-family dwelling under construction to replace a home that |
| 236 | was destroyed or significantly damaged by a hurricane and deemed |
| 237 | unlivable by a regulatory authority. The homeowner must be a |
| 238 | low-income homeowner as defined in paragraph (g), must have had |
| 239 | a homestead exemption for that home prior to the hurricane, and |
| 240 | must be intending to rebuild the home as that homeowner's |
| 241 | homestead and maintained the homestead exemption. |
| 242 | (g) Low-income homeowners, as defined in s. 420.0004(10), |
| 243 | who otherwise meet the requirements of paragraphs (a), (c), (e), |
| 244 | and (f) are eligible for a grant of up to $5,000 and are not |
| 245 | required to provide a matching amount to receive the grant. |
| 246 | Additionally, for low-income homeowners, grant funding may be |
| 247 | used for repair to existing structures leading to any of the |
| 248 | mitigation improvements provided in paragraph (e), limited to 20 |
| 249 | percent of the grant value. The program may accept a |
| 250 | certification directly from a low-income homeowner that the |
| 251 | homeowner meets the requirements of s. 420.0004(10) if the |
| 252 | homeowner provides such certification in a signed or |
| 253 | electronically verified statement made under penalty of perjury. |
| 254 | (h) The department shall establish objective, reasonable |
| 255 | criteria for prioritizing grant applications, consistent with |
| 256 | the requirements of this section. |
| 257 | (i) The department shall develop a process that ensures |
| 258 | the most efficient means to collect and verify grant |
| 259 | applications to determine eligibility and may direct hurricane |
| 260 | mitigation inspectors to collect and verify grant application |
| 261 | information or use the Internet or other electronic means to |
| 262 | collect information and determine eligibility. |
| 263 | (j) The department shall transfer the amount of $40 |
| 264 | million from funds appropriated to the program, including up to |
| 265 | 5 percent for administrative costs, to Volunteer Florida |
| 266 | Foundation, Inc., for provision of inspections and grants to |
| 267 | low-income homeowners, as defined in s. 420.0004(10), consistent |
| 268 | with this section. Volunteer Florida Foundation, Inc., shall be |
| 269 | responsible for inspections and grants management for low-income |
| 270 | homeowners and shall report its activities and account for state |
| 271 | funds on a quarterly and annual basis to the Chief Financial |
| 272 | Officer, the President of the Senate, and the Speaker of the |
| 273 | House of Representatives. |
| 274 | (3) EDUCATION AND CONSUMER AWARENESS.--The department may |
| 275 | undertake a statewide multimedia public outreach and advertising |
| 276 | campaign to inform consumers of the availability and benefits of |
| 277 | hurricane inspections and of the safety and financial benefits |
| 278 | of residential hurricane damage mitigation. The department may |
| 279 | seek out and use local, state, federal, and private funds to |
| 280 | support the campaign. Multimedia public education, awareness, |
| 281 | and advertising efforts designed to specifically address |
| 282 | mitigation techniques shall be employed, as well as a component |
| 283 | to support ongoing consumer resources and referral services. |
| 284 | (4) ADVISORY COUNCIL.--There is created an advisory |
| 285 | council to provide advice and assistance to the department |
| 286 | regarding program administrator with regard to his or her |
| 287 | administration of the program. The advisory council shall |
| 288 | consist of: |
| 289 | (a) A representative of lending institutions, selected by |
| 290 | the Financial Services Commission from a list of at least three |
| 291 | persons recommended by the Florida Bankers Association. |
| 292 | (b) A representative of residential property insurers, |
| 293 | selected by the Financial Services Commission from a list of at |
| 294 | least three persons recommended by the Florida Insurance |
| 295 | Council. |
| 296 | (c) A representative of home builders, selected by the |
| 297 | Financial Services Commission from a list of at least three |
| 298 | persons recommended by the Florida Home Builders Association. |
| 299 | (d) A faculty member of a state university, selected by |
| 300 | the Financial Services Commission, who is an expert in |
| 301 | hurricane-resistant construction methodologies and materials. |
| 302 | (e) Two members of the House of Representatives, selected |
| 303 | by the Speaker of the House of Representatives. |
| 304 | (f) Two members of the Senate, selected by the President |
| 305 | of the Senate. |
| 306 | (g) The Chief Executive Officer of the Federal Alliance |
| 307 | for Safe Homes, Inc., or his or her designee. |
| 308 | (h) The senior officer of the Florida Hurricane |
| 309 | Catastrophe Fund. |
| 310 | (i) The executive director of Citizens Property Insurance |
| 311 | Corporation. |
| 312 | (j) The director of the Division of Emergency Management |
| 313 | of the Department of Community Affairs. |
| 314 |
|
| 315 | Members appointed under paragraphs (a)-(d) shall serve at the |
| 316 | pleasure of the Financial Services Commission. Members appointed |
| 317 | under paragraphs (e) and (f) shall serve at the pleasure of the |
| 318 | appointing officer. All other members shall serve voting ex |
| 319 | officio. Members of the advisory council shall serve without |
| 320 | compensation but may receive reimbursement as provided in s. |
| 321 | 112.061 for per diem and travel expenses incurred in the |
| 322 | performance of their official duties. |
| 323 | (5) FEDERAL FUNDING.--The department may seek out and |
| 324 | leverage local, state, federal, or private funds to enhance |
| 325 | shall use its best efforts to obtain grants or funds from the |
| 326 | federal government to supplement the financial resources of the |
| 327 | program. |
| 328 | (6) RULES.--The Department of Financial Services shall |
| 329 | adopt rules pursuant to ss. 120.536(1) and 120.54 to govern |
| 330 | governing the Florida Comprehensive Hurricane Damage Mitigation |
| 331 | program, implement the provisions of this section, including |
| 332 | rules governing hurricane mitigation inspections, mitigation |
| 333 | contractors, and training of inspectors and contractors, and |
| 334 | carry out the duties of the department under this section. The |
| 335 | department shall also adopt rules establishing priorities for |
| 336 | grants provided under this section based on objective criteria |
| 337 | that gives priority to reducing the state's probable maximum |
| 338 | loss from hurricanes. However, pursuant to this overall goal, |
| 339 | the department may further establish priorities based on the |
| 340 | insured value of the dwelling, whether or not the dwelling is |
| 341 | insured by Citizens Property Insurance Corporation and whether |
| 342 | or not the area under consideration has sufficient resources and |
| 343 | the ability to perform the retrofitting required. |
| 344 | (7) CONTRACTS WITH NOT-FOR-PROFIT CORPORATIONS.--The |
| 345 | Department of Financial Services is authorized to contract with |
| 346 | not-for-profit corporations to conduct all or portions of the |
| 347 | program and to increase the awareness of the benefits of |
| 348 | mitigation among homeowners in this state. The department shall |
| 349 | consider the not-for-profit corporation's ability to raise funds |
| 350 | from the private sector to provide for mitigation grants, as |
| 351 | well as administrative capabilities for conducting other |
| 352 | business related to the program. |
| 353 | (7)(8) WIND CERTIFICATION AND HURRICANE MITIGATION |
| 354 | INSPECTOR LIST.--The department shall develop and maintain as a |
| 355 | public record a current list of wind certification and hurricane |
| 356 | mitigation inspectors authorized to conduct wind certification |
| 357 | and hurricane mitigation inspections pursuant to this section. |
| 358 | (8) NO-INTEREST LOANS.--The department may develop a no- |
| 359 | interest loan program by December 31, 2007, to encourage the |
| 360 | private sector to provide loans to owners of site-built, single- |
| 361 | family, residential property to pay for mitigation measures |
| 362 | listed in subsection (2). A loan eligible for interest payments |
| 363 | pursuant to this subsection may be for a term of up to 3 years |
| 364 | and cover up to $5,000 in mitigation measures. The department |
| 365 | shall pay the creditor the market rate of interest using funds |
| 366 | appropriated for the My Safe Florida Home program. In no case |
| 367 | shall the department pay more than the interest rate set by s. |
| 368 | 687.03. To be eligible for a loan, a loan applicant must first |
| 369 | obtain a home inspection and report that specifies what |
| 370 | improvements are needed to reduce the property's vulnerability |
| 371 | to windstorm damage pursuant to this section and meet loan |
| 372 | underwriting requirements set by the lender. The department may |
| 373 | set aside up to $10 million from funds appropriated for the My |
| 374 | Safe Florida Home program to implement this subsection. The |
| 375 | department shall adopt rules pursuant to ss. 120.36(1) and |
| 376 | 120.54 to implement this subsection which may include |
| 377 | eligibility criteria. |
| 378 | (9) PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE |
| 379 | BROKERS AND SALES ASSOCIATES.--The program shall develop |
| 380 | brochures for distribution to general contractors, roofing |
| 381 | contractors, and real estate brokers and sales associates |
| 382 | licensed under part I of chapter 475 explaining the benefits to |
| 383 | homeowners of residential hurricane damage mitigation. The |
| 384 | program shall encourage contractors to distribute the brochures |
| 385 | to homeowners at the first meeting with a homeowner who is |
| 386 | considering contracting for home or roof repairs or contracting |
| 387 | for the construction of a new home. The program shall encourage |
| 388 | real estate brokers and sales associates licensed under part I |
| 389 | of chapter 475 to distribute the brochures to clients prior to |
| 390 | the purchase of a home. The brochures may be made available |
| 391 | electronically. |
| 392 | (10) CONTRACT MANAGEMENT.--The department may contract |
| 393 | with third parties for grants management, inspection services, |
| 394 | educational outreach, and auditing services. Such contracts |
| 395 | shall be considered direct costs of the program and shall not be |
| 396 | subject to administrative cost limits, but contracts valued at |
| 397 | $500,000 or more shall be subject to review and approval by the |
| 398 | Legislative Budget Commission. The department shall contract |
| 399 | with providers that have a demonstrated record of successful |
| 400 | business operations in areas directly related to the services to |
| 401 | be provided and shall ensure the highest accountability for use |
| 402 | of state funds, consistent with this section. |
| 403 | (11) INTENT.--It is the intent of the Legislature that |
| 404 | grants made to residential property owners under this section |
| 405 | shall be considered disaster-relief assistance within the |
| 406 | meaning of s. 139 of the Internal Revenue Code of 1986, as |
| 407 | amended. |
| 408 | (12) REPORTS.--The department shall make an annual report |
| 409 | on the activities of the program that shall account for the use |
| 410 | of state funds and indicate the number of inspections requested, |
| 411 | the number of inspections performed, the number of grant |
| 412 | applications received, and the number and value of grants |
| 413 | approved. The report shall be delivered to the President of the |
| 414 | Senate and the Speaker of the House of Representatives by |
| 415 | February 1 of each year. |
| 416 | Section 2. Paragraph (b) of subsection (4) of section |
| 417 | 489.115, Florida Statutes, is amended to read: |
| 418 | 489.115 Certification and registration; endorsement; |
| 419 | reciprocity; renewals; continuing education.-- |
| 420 | (4) |
| 421 | (b)1. Each certificateholder or registrant shall provide |
| 422 | proof, in a form established by rule of the board, that the |
| 423 | certificateholder or registrant has completed at least 14 |
| 424 | classroom hours of at least 50 minutes each of continuing |
| 425 | education courses during each biennium since the issuance or |
| 426 | renewal of the certificate or registration. The board shall |
| 427 | establish by rule that a portion of the required 14 hours must |
| 428 | deal with the subject of workers' compensation, business |
| 429 | practices, and workplace safety, and, for applicable licensure |
| 430 | categories, wind mitigation methodologies. The board shall by |
| 431 | rule establish criteria for the approval of continuing education |
| 432 | courses and providers, including requirements relating to the |
| 433 | content of courses and standards for approval of providers, and |
| 434 | may by rule establish criteria for accepting alternative |
| 435 | nonclassroom continuing education on an hour-for-hour basis. The |
| 436 | board shall prescribe by rule the continuing education, if any, |
| 437 | which is required during the first biennium of initial |
| 438 | licensure. A person who has been licensed for less than an |
| 439 | entire biennium must not be required to complete the full 14 |
| 440 | hours of continuing education. |
| 441 | 2. In addition, the board may approve specialized |
| 442 | continuing education courses on compliance with the wind |
| 443 | resistance provisions for one and two family dwellings contained |
| 444 | in the Florida Building Code and any alternate methodologies for |
| 445 | providing such wind resistance which have been approved for use |
| 446 | by the Florida Building Commission. Division I |
| 447 | certificateholders or registrants who demonstrate proficiency |
| 448 | upon completion of such specialized courses may certify plans |
| 449 | and specifications for one and two family dwellings to be in |
| 450 | compliance with the code or alternate methodologies, as |
| 451 | appropriate, except for dwellings located in floodways or |
| 452 | coastal hazard areas as defined in ss. 60.3D and E of the |
| 453 | National Flood Insurance Program. |
| 454 | 3. Each certificateholder or registrant shall provide to |
| 455 | the board proof of completion of the core curriculum courses, or |
| 456 | passing the equivalency test of the Building Code Training |
| 457 | Program established under s. 553.841, specific to the licensing |
| 458 | category sought, within 2 years after commencement of the |
| 459 | program or of initial certification or registration, whichever |
| 460 | is later. Classroom hours spent taking core curriculum courses |
| 461 | shall count toward the number required for renewal of |
| 462 | certificates or registration. A certificateholder or registrant |
| 463 | who passes the equivalency test in lieu of taking the core |
| 464 | curriculum courses shall receive full credit for core curriculum |
| 465 | course hours. |
| 466 | 4. The board shall require, by rule adopted pursuant to |
| 467 | ss. 120.536(1) and 120.54, a specified number of hours in |
| 468 | specialized or advanced module courses, approved by the Florida |
| 469 | Building Commission, on any portion of the Florida Building |
| 470 | Code, adopted pursuant to part VII of chapter 553, relating to |
| 471 | the contractor's respective discipline. |
| 472 | Section 3. Sections 4, 39, and 42 of chapter 2006-12, Laws |
| 473 | of Florida, are amended to read: |
| 474 | Section 4. Of the funds appropriated for the My Safe |
| 475 | Florida Home Comprehensive Hurricane Damage Mitigation Program |
| 476 | specified in s. 215.5586, Florida Statutes, as created by this |
| 477 | act, $7.5 million shall be for the Manufactured Housing and |
| 478 | Mobile Home Mitigation and Enhancement Program specified in s. |
| 479 | 215.559(4)(b), Florida Statutes, as created by this act. The |
| 480 | Department of Financial Services shall use these funds to |
| 481 | contract with Tallahassee Community College to implement the |
| 482 | Manufactured Housing and Mobile Home Mitigation and Enhancement |
| 483 | Program. |
| 484 | Section 39. (1) The Office of Insurance Regulation, in |
| 485 | consultation with the Department of Community Affairs, the |
| 486 | Department of Financial Services, the Federal Alliance for Safe |
| 487 | Homes, the Florida Insurance Council, the Florida Home Builders |
| 488 | Association, the Florida Manufactured Housing Association, the |
| 489 | Risk and Insurance Department of Florida State University, and |
| 490 | the Institute for Business and Homes Safety, shall study and |
| 491 | develop a program that will provide an objective rating system |
| 492 | that will allow homeowners to evaluate the relative ability of |
| 493 | Florida properties to withstand the wind load from a sustained |
| 494 | severe tropical storm or hurricane. |
| 495 | (2) The rating system will be designed in a manner that is |
| 496 | easy to understand for the property owner, based on proven |
| 497 | readily verifiable mitigation techniques and devices, and able |
| 498 | to be implemented based on a visual inspection program. The |
| 499 | Department of Financial Services shall implement a pilot program |
| 500 | for use in the My Safe Florida Home Comprehensive Hurricane |
| 501 | Damage Mitigation Program. |
| 502 | (3) The Department shall provide a report to the Governor, |
| 503 | the President of the Senate, and the Speaker of the House of |
| 504 | Representatives by March 31, 2007, detailing the nature and |
| 505 | construction of the rating scale, its effectiveness based on |
| 506 | implementation in a pilot program, and an operational plan for |
| 507 | statewide implementation of the rating scale. |
| 508 | Section 42. (1) For the 2006-2007 fiscal year, the sum of |
| 509 | $250 million is appropriated on a nonrecurring basis from the |
| 510 | General Revenue Fund to the Insurance Regulatory Trust Fund in |
| 511 | the Department of Financial Services for purposes of the My Safe |
| 512 | Florida Home Comprehensive Hurricane Damage Mitigation Program |
| 513 | specified in s. 215.5586, Florida Statutes, as created by this |
| 514 | act. The department shall establish a separate account within |
| 515 | the trust fund for accounting purposes. |
| 516 | (2) The sum of $250 million is appropriated from the |
| 517 | Insurance Regulatory Trust Fund in the Department of Financial |
| 518 | Services for the purposes set forth in subsection (1). The |
| 519 | department may expend up to 1 percent of the funds appropriated |
| 520 | to administer the program. Beginning October 15, 2007, and |
| 521 | quarterly thereafter, the Chief Financial Officer shall provide |
| 522 | a report to the Executive Office of the Governor and the chair |
| 523 | and vice chair of the Legislative Budget Commission containing |
| 524 | information regarding expenditures made for the purposes set |
| 525 | forth in subsection (1). |
| 526 | (3) Notwithstanding the provisions of s. 216.301, Florida |
| 527 | Statutes, to the contrary, the unexpended balance of |
| 528 | appropriations authorized in subsections (1) and (2) shall not |
| 529 | revert until June 30, 2009. |
| 530 | Section 4. It is the intent of the Legislature that |
| 531 | scientifically valid and actuarially sound windstorm mitigation |
| 532 | rate factors, premium discounts, and differentials be provided |
| 533 | to residential and commercial property insurance policyholders. |
| 534 | In order to ensure the validity of such factors, the Office of |
| 535 | Insurance Regulation, in consultation with the Department of |
| 536 | Community Affairs and the Florida Building Commission, shall |
| 537 | conduct or cause to be conducted one or more wind-loss |
| 538 | mitigation studies, subject to appropriation of funds by the |
| 539 | Legislature for this purpose. The studies shall evaluate the |
| 540 | windstorm loss relativities for construction features, |
| 541 | including, but not limited to, those that enhance roof strength, |
| 542 | roof-covering performance, roof-to-wall strength, wall-to-floor- |
| 543 | to-foundation strength, opening protections, and window, door, |
| 544 | and skylight strength. The studies shall include residential |
| 545 | property, including single-family and multifamily homes, mobile |
| 546 | homes, and condominiums, and commercial nonresidential property. |
| 547 | The studies shall include, but need not be limited to, an |
| 548 | analysis of loss data from the 2004 and 2005 hurricanes. The |
| 549 | findings of the studies shall be reported to the Governor, the |
| 550 | President of the Senate, the Speaker of the House of |
| 551 | Representatives, the Chief Financial Officer, and the |
| 552 | Commissioner of Insurance Regulation by January 1, 2008, for the |
| 553 | studies related to residential property, and by March 1, 2008, |
| 554 | for the studies related to commercial nonresidential property. |
| 555 | Section 5. Section 553.844, Florida Statutes, is created |
| 556 | to read: |
| 557 | 553.844 Windstorm loss mitigation; requirements for roofs |
| 558 | and opening protection.-- |
| 559 | (1) The Legislature finds that: |
| 560 | (a) The effects of recent hurricanes on the state have |
| 561 | demonstrated the effectiveness of the Florida Building Code in |
| 562 | reducing property damage to buildings constructed in accordance |
| 563 | with its requirements, and have also exposed a vulnerability of |
| 564 | some construction undertaken prior to implementation of the |
| 565 | Florida Building Code. |
| 566 | (b) Hurricanes represent a continuing threat to the |
| 567 | health, safety, and welfare of the residents of this state due |
| 568 | to the direct destructive effects of hurricanes as well as their |
| 569 | effects on windstorm insurance rates. |
| 570 | (c) The mitigation of property damage constitutes a valid |
| 571 | and recognized objective of the Florida Building Code. |
| 572 | (d) Cost-effective techniques for integrating proven |
| 573 | methods of the Florida Building Code into buildings built prior |
| 574 | to its implementation benefit all residents of the state as a |
| 575 | whole. |
| 576 | (2) The Florida Building Commission shall: |
| 577 | (a) Analyze the extent to which a proposed Florida |
| 578 | Building Code provision will mitigate property damage to |
| 579 | buildings and their contents in evaluating that proposal. If the |
| 580 | nature of the proposed Florida Building Code provision relates |
| 581 | only to mitigation of property damage and not to a life safety |
| 582 | concern, the proposal shall be reviewed based on its measurable |
| 583 | benefits in relation to the costs imposed. |
| 584 | (b) Develop and adopt within the Florida Building Code a |
| 585 | means to incorporate recognized mitigation techniques for site- |
| 586 | built, single-family residential structures constructed prior to |
| 587 | the implementation of the Florida Building Code, including, but |
| 588 | not limited to: |
| 589 | 1. Prescriptive techniques for the installation of gable- |
| 590 | end bracing; |
| 591 | 2. Secondary water barriers for roofs and standards |
| 592 | relating to secondary water barriers. The criteria may include, |
| 593 | but need not be limited to, roof shape, slope, and composition |
| 594 | of all elements of the roof system; |
| 595 | 3. Prescriptive techniques for improvement of roof-to-wall |
| 596 | connections. The Legislature recognizes that the cost of |
| 597 | retrofitting existing buildings to meet the code requirements |
| 598 | for new construction in this regard may exceed the practical |
| 599 | benefit to be attained. The Legislature intends for the |
| 600 | commission to provide for the integration of alternate, lower- |
| 601 | cost means that may be employed to retrofit existing buildings |
| 602 | that are not otherwise required to comply with the requirements |
| 603 | of the Florida Building Code for new construction so that the |
| 604 | cost of such improvements does not exceed approximately 15 |
| 605 | percent of the cost of reroofing; |
| 606 | 4. Strengthening or correcting roof-decking attachments |
| 607 | and fasteners during reroofing; and |
| 608 | 5. Adding or strengthening opening protections. |
| 609 | (3) The Legislature finds that the integration of these |
| 610 | specifically identified mitigation measures is critical to |
| 611 | addressing the serious problem facing the state from damage |
| 612 | caused by windstorms and that delay in the adoption and |
| 613 | implementation constitutes a threat to the health, safety, and |
| 614 | welfare of the state. Accordingly, the Florida Building |
| 615 | Commission shall develop and adopt these measures by October 1, |
| 616 | 2007, by rule separate from the Florida Building Code, which |
| 617 | take immediate effect and shall incorporate such requirements |
| 618 | into the next edition of the Florida Building Code. Such rules |
| 619 | shall require or otherwise clarify that for site-built, single- |
| 620 | family residential structures: |
| 621 | (a) A roof replacement must incorporate the techniques |
| 622 | specified in subparagraphs (2)(b)2. and 4. |
| 623 | (b) For a building that is located in the wind-borne |
| 624 | debris region as defined in s. 1609.2 of the International |
| 625 | Building Code (2006) and that has an insured value of $300,000 |
| 626 | or more or, if the building is uninsured or for which |
| 627 | documentation of insured value is not presented, has a just |
| 628 | valuation for the structure for purposes of ad valorem taxation |
| 629 | of $300,000 or more, a roof replacement must incorporate the |
| 630 | techniques specified in subparagraph (2)(b)3. |
| 631 | (c) Any activity requiring a building permit that is |
| 632 | applied for on or after July 1, 2008, and for which the |
| 633 | estimated cost is $50,000 or more, must include provision of |
| 634 | opening protections as required within the Florida Building Code |
| 635 | for new construction for a building that is located in the wind- |
| 636 | borne debris region as defined in s. 1609.2 of the International |
| 637 | Building Code (2006) and that has an insured value of $750,000 |
| 638 | or more, or, if the building is uninsured or for which |
| 639 | documentation of insured value is not presented, has a just |
| 640 | valuation for the structure for purposes of ad valorem taxation |
| 641 | of $750,000 or more. |
| 642 | Section 6. Paragraph (a) of subsection (6) of section |
| 643 | 627.351, Florida Statutes, as amended by section 21 of chapter |
| 644 | 2007-1, Laws of Florida, is amended to read: |
| 645 | 627.351 Insurance risk apportionment plans.-- |
| 646 | (6) CITIZENS PROPERTY INSURANCE CORPORATION.-- |
| 647 | (a)1. The Legislature finds that actual and threatened |
| 648 | catastrophic losses to property in this state from hurricanes |
| 649 | have caused insurers to be unwilling or unable to provide |
| 650 | property insurance coverage to the extent sought and needed. It |
| 651 | is in the public interest and a public purpose to assist in |
| 652 | assuring that property in the state is insured so as to |
| 653 | facilitate the remediation, reconstruction, and replacement of |
| 654 | damaged or destroyed property in order to reduce or avoid the |
| 655 | negative effects otherwise resulting to the public health, |
| 656 | safety, and welfare; to the economy of the state; and to the |
| 657 | revenues of the state and local governments needed to provide |
| 658 | for the public welfare. It is necessary, therefore, to provide |
| 659 | property insurance to applicants who are in good faith entitled |
| 660 | to procure insurance through the voluntary market but are unable |
| 661 | to do so. The Legislature intends by this subsection that |
| 662 | property insurance be provided and that it continues, as long as |
| 663 | necessary, through an entity organized to achieve efficiencies |
| 664 | and economies, while providing service to policyholders, |
| 665 | applicants, and agents that is no less than the quality |
| 666 | generally provided in the voluntary market, all toward the |
| 667 | achievement of the foregoing public purposes. Because it is |
| 668 | essential for the corporation to have the maximum financial |
| 669 | resources to pay claims following a catastrophic hurricane, it |
| 670 | is the intent of the Legislature that the income of the |
| 671 | corporation be exempt from federal income taxation and that |
| 672 | interest on the debt obligations issued by the corporation be |
| 673 | exempt from federal income taxation. |
| 674 | 2. The Residential Property and Casualty Joint |
| 675 | Underwriting Association originally created by this statute |
| 676 | shall be known, as of July 1, 2002, as the Citizens Property |
| 677 | Insurance Corporation. The corporation shall provide insurance |
| 678 | for residential and commercial property, for applicants who are |
| 679 | in good faith entitled, but are unable, to procure insurance |
| 680 | through the voluntary market. The corporation shall operate |
| 681 | pursuant to a plan of operation approved by order of the |
| 682 | Financial Services Commission. The plan is subject to continuous |
| 683 | review by the commission. The commission may, by order, withdraw |
| 684 | approval of all or part of a plan if the commission determines |
| 685 | that conditions have changed since approval was granted and that |
| 686 | the purposes of the plan require changes in the plan. The |
| 687 | corporation shall continue to operate pursuant to the plan of |
| 688 | operation approved by the Office of Insurance Regulation until |
| 689 | October 1, 2006. For the purposes of this subsection, |
| 690 | residential coverage includes both personal lines residential |
| 691 | coverage, which consists of the type of coverage provided by |
| 692 | homeowner's, mobile home owner's, dwelling, tenant's, |
| 693 | condominium unit owner's, and similar policies, and commercial |
| 694 | lines residential coverage, which consists of the type of |
| 695 | coverage provided by condominium association, apartment |
| 696 | building, and similar policies. |
| 697 | 3. For the purposes of this subsection, the term |
| 698 | "homestead property" means: |
| 699 | a. Property that has been granted a homestead exemption |
| 700 | under chapter 196; |
| 701 | b. Property for which the owner has a current, written |
| 702 | lease with a renter for a term of at least 7 months and for |
| 703 | which the dwelling is insured by the corporation for $200,000 or |
| 704 | less; |
| 705 | c. An owner-occupied mobile home or manufactured home, as |
| 706 | defined in s. 320.01, which is permanently affixed to real |
| 707 | property, is owned by a Florida resident, and has been granted a |
| 708 | homestead exemption under chapter 196 or, if the owner does not |
| 709 | own the real property, the owner certifies that the mobile home |
| 710 | or manufactured home is his or her principal place of residence; |
| 711 | d. Tenant's coverage; |
| 712 | e. Commercial lines residential property; or |
| 713 | f. Any county, district, or municipal hospital; a hospital |
| 714 | licensed by any not-for-profit corporation qualified under s. |
| 715 | 501(c)(3) of the United States Internal Revenue Code; or a |
| 716 | continuing care retirement community that is certified under |
| 717 | chapter 651 and that receives an exemption from ad valorem taxes |
| 718 | under chapter 196. |
| 719 | 4. For the purposes of this subsection, the term |
| 720 | "nonhomestead property" means property that is not homestead |
| 721 | property. |
| 722 | 5. Effective July 1, 2008, a personal lines residential |
| 723 | structure that has a dwelling replacement cost of $1 million or |
| 724 | more, or a single condominium unit that has a combined dwelling |
| 725 | and content replacement cost of $1 million or more is not |
| 726 | eligible for coverage by the corporation. Such dwellings insured |
| 727 | by the corporation on June 30, 2008, may continue to be covered |
| 728 | by the corporation until the end of the policy term. However, |
| 729 | such dwellings that are insured by the corporation and become |
| 730 | ineligible for coverage due to the provisions of this |
| 731 | subparagraph may reapply and obtain coverage in the high-risk |
| 732 | account and be considered "nonhomestead property" if the |
| 733 | property owner provides the corporation with a sworn affidavit |
| 734 | from one or more insurance agents, on a form provided by the |
| 735 | corporation, stating that the agents have made their best |
| 736 | efforts to obtain coverage and that the property has been |
| 737 | rejected for coverage by at least one authorized insurer and at |
| 738 | least three surplus lines insurers. If such conditions are met, |
| 739 | the dwelling may be insured by the corporation for up to 3 |
| 740 | years, after which time the dwelling is ineligible for coverage. |
| 741 | The office shall approve the method used by the corporation for |
| 742 | valuing the dwelling replacement cost for the purposes of this |
| 743 | subparagraph. If a policyholder is insured by the corporation |
| 744 | prior to being determined to be ineligible pursuant to this |
| 745 | subparagraph and such policyholder files a lawsuit challenging |
| 746 | the determination, the policyholder may remain insured by the |
| 747 | corporation until the conclusion of the litigation. |
| 748 | 6. For properties constructed on or after January 1, 2009, |
| 749 | the corporation may not insure any property located within 2,500 |
| 750 | feet landward of the coastal construction control line created |
| 751 | pursuant to s. 161.053 unless the property meets the |
| 752 | requirements of the code-plus building standards developed by |
| 753 | the Florida Building Commission. |
| 754 | 7. It is the intent of the Legislature that policyholders, |
| 755 | applicants, and agents of the corporation receive service and |
| 756 | treatment of the highest possible level but never less than that |
| 757 | generally provided in the voluntary market. It also is intended |
| 758 | that the corporation be held to service standards no less than |
| 759 | those applied to insurers in the voluntary market by the office |
| 760 | with respect to responsiveness, timeliness, customer courtesy, |
| 761 | and overall dealings with policyholders, applicants, or agents |
| 762 | of the corporation. |
| 763 | 8. Effective January 1, 2009, a personal lines residential |
| 764 | structure that is located in the "wind-borne debris region," as |
| 765 | defined in s. 1609.2, International Building Code (2006), and |
| 766 | that has an insured value on the structure of $750,000 or more |
| 767 | is not eligible for coverage by the corporation unless the |
| 768 | structure has opening protections as required under the Florida |
| 769 | Building Code for a newly constructed residential structure in |
| 770 | that area. A residential structure shall be deemed to comply |
| 771 | with the requirements of this subparagraph if it has shutters or |
| 772 | opening protections on all openings and if such opening |
| 773 | protections complied with the Florida Building Code at the time |
| 774 | they were installed. |
| 775 | Section 7. From the funds appropriated to the My Safe |
| 776 | Florida Home Program by section 42 of chapter 2006-12, Laws of |
| 777 | Florida, the Department of Financial Services shall transfer $1 |
| 778 | million from the Insurance Regulatory Trust Fund to the Energy |
| 779 | Consumption Trust Fund within the Department of Community |
| 780 | Affairs for the purpose of funding the Low-income Emergency Home |
| 781 | Repair Program under s. 420.36, Florida Statutes. |
| 782 | Notwithstanding s. 420.36(3)(b), Florida Statutes, |
| 783 | administrative expenses of the program may not exceed 5 percent |
| 784 | of the total funds appropriated by this section. |
| 785 | Section 8. This act shall take effect upon becoming a law. |