1 | A bill to be entitled |
2 | An act relating to hurricane preparedness and insurance; |
3 | providing a short title; amending s. 215.5586, F.S.; |
4 | revising criteria for wind certification and hurricane |
5 | mitigation inspection entities; requiring a level 2 |
6 | background check for wind certification and hurricane |
7 | mitigation inspectors; revising certain financial wind |
8 | certification and mitigation grant criteria and use |
9 | provisions; providing additional uses for grant funding |
10 | for certain homeowners; authorizing the Department of |
11 | Financial Services to contract with a not-for-profit |
12 | corporation to conduct the Florida Comprehensive Hurricane |
13 | Damage Mitigation Program and enhance awareness of the |
14 | benefits of mitigation; creating part XV of chapter 468, |
15 | Florida Statutes, consisting of s. 468.851, F.S.; |
16 | providing for wind mitigation inspectors; providing |
17 | definitions; authorizing the Department of Business and |
18 | Professional Regulation to certify wind inspectors; |
19 | providing for fees; providing for the department to issue |
20 | certificates for wind mitigation inspectors; providing |
21 | qualifications for applicants; providing continuing |
22 | education requirements; requiring the department to adopt |
23 | rules relating to education courses; prohibiting |
24 | employment or operation as a wind mitigation inspector |
25 | without a certificate; providing exceptions; providing |
26 | procedures and requirements; specifying certain activities |
27 | as grounds for disciplinary action; providing penalties; |
28 | prohibiting certain activities; providing criminal |
29 | penalties; requiring the department to develop and |
30 | maintain a list of wind mitigation inspectors and |
31 | contractors; providing for validity of wind mitigation |
32 | inspectors certification under certain provisions of law |
33 | for a certain time; amending ss. 471.017 and 481.215, |
34 | F.S.; authorizing certain boards to approve certain |
35 | specialized continuing education courses; authorizing |
36 | certain licensed engineers and architects to conduct |
37 | inspections; amending s. 489.115, F.S.; including wind |
38 | mitigation methodology studies under certain continuing |
39 | education courses; authorizing certain certificateholders |
40 | or registrants to conduct wind mitigation inspections |
41 | under certain circumstances; amending s. 626.2815, F.S.; |
42 | requiring continuing education for certain agents and |
43 | customer representatives on the subject of premium |
44 | discounts for hurricane mitigation options; amending s. |
45 | 627.062, F.S.; requiring certain rate filings to account |
46 | for certain mitigation measures; amending s. 627.0629, |
47 | F.S.; providing for reductions in deductibles for |
48 | mitigation measures; amending s. 627.701, F.S.; requiring |
49 | insurers to provide insureds options for certain |
50 | deductibles, credits, or rate differentials; amending s. |
51 | 627.711, F.S.; requiring the Financial Services Commission |
52 | to develop uniform mitigation verification inspection |
53 | forms; providing duties of the commission; creating the |
54 | Windstorm Mitigation Study Committee for the purpose of |
55 | analyzing solutions and programs that could address the |
56 | state's need to mitigate the effects of windstorms on |
57 | structures; providing for membership and qualifications; |
58 | providing that the members are entitled to reimbursement |
59 | for expenses incurred in connection with their duties; |
60 | providing for reimbursement of travel expenses; requiring |
61 | the Department of Financial Services, the Office of |
62 | Insurance Regulation, the Citizens Property Insurance |
63 | Corporation, and other state agencies to supply |
64 | information, assistance, and facilities to the committee; |
65 | requiring the department to provide staff assistance; |
66 | specifying duties of the committee; requiring the |
67 | committee to report to the Governor, the Legislature, the |
68 | Chief Financial Officer, and the Commissioner of Insurance |
69 | Regulation by a specified date; providing for expiration |
70 | of the committee; requiring the Financial Services |
71 | Commission to adopt a uniform home grading scale for |
72 | certain purposes; providing criteria; providing an |
73 | appropriation to the Department of Community Affairs for |
74 | certain purposes; specifying use of funds; providing |
75 | appropriations; providing effective dates. |
76 |
|
77 | Be It Enacted by the Legislature of the State of Florida: |
78 |
|
79 | Section 1. This act may be cited as the "Home Enhancement |
80 | and Loss Prevention Act." |
81 | Section 2. Paragraph (b) of subsection (1) and subsection |
82 | (2) of section 215.5586, Florida Statutes, are amended, |
83 | paragraph (c) is added to subsection (1), and subsection (7) is |
84 | added to that section, to read: |
85 | 215.5586 Florida Comprehensive Hurricane Damage Mitigation |
86 | Program.--There is established within the Department of |
87 | Financial Services the Florida Comprehensive Hurricane Damage |
88 | Mitigation Program. This section does not create an entitlement |
89 | for property owners or obligate the state in any way to fund the |
90 | inspection or retrofitting of residential property in this |
91 | state. Implementation of this program is subject to annual |
92 | legislative appropriations. The program shall be administered by |
93 | an individual with prior executive experience in the private |
94 | sector in the areas of insurance, business, or construction. The |
95 | program shall develop and implement a comprehensive and |
96 | coordinated approach for hurricane damage mitigation that shall |
97 | include the following: |
98 | (1) WIND CERTIFICATION AND HURRICANE MITIGATION |
99 | INSPECTIONS.-- |
100 | (b) To qualify for selection by the department as a |
101 | provider of wind certification and hurricane mitigation |
102 | inspections, the entity shall, at a minimum: |
103 | 1. Use wind certification and hurricane mitigation |
104 | inspectors who: |
105 | a. Have prior experience in residential construction or |
106 | inspection and have received specialized training in hurricane |
107 | mitigation procedures. |
108 | b. Have undergone drug testing and level 2 background |
109 | checks pursuant to s. 435.04. |
110 | c. Have been certified as wind mitigation inspectors |
111 | pursuant to s. 468.851, in a manner satisfactory to the |
112 | department, to conduct the inspections. |
113 | 2. Provide a quality assurance program including a |
114 | reinspection component. |
115 | (2) GRANTS.--Financial grants shall be used to encourage |
116 | single-family, site-built, owner-occupied, residential property |
117 | owners to retrofit their properties to make them less vulnerable |
118 | to hurricane damage. |
119 | (a) To be eligible for a grant, a residential property |
120 | must: |
121 | 1. Have been granted a homestead exemption under chapter |
122 | 196. |
123 | 2. Be a dwelling structure with an assessed insured value |
124 | of $500,000 or less. |
125 | 3. Have undergone an acceptable wind certification and |
126 | hurricane mitigation inspection, if the property is an existing |
127 | structure. |
128 |
|
129 | A residential property which is part of a multifamily |
130 | residential unit may receive a grant only if all homeowners |
131 | participate and the total number of units does not exceed four. |
132 | (b) All grants must be matched on a dollar-for-dollar |
133 | basis for a total of $10,000 for the mitigation project with the |
134 | state's contribution not to exceed $5,000. |
135 | (c) The program shall create a process in which mitigation |
136 | contractors agree to participate and seek reimbursement from the |
137 | state and homeowners select from a list of participating |
138 | contractors. All mitigation must be based upon the securing of |
139 | all required local permits and inspections. Mitigation projects |
140 | are subject to random reinspection of up to at least 10 percent |
141 | of all projects. |
142 | (d) Matching fund grants shall also be made available to |
143 | local governments and nonprofit entities for projects that will |
144 | reduce hurricane damage to single-family, site-built, owner- |
145 | occupied, residential property. |
146 | (e) Grants may be used for the following improvements: |
147 | 1. Roof deck attachment.; |
148 | 2. Secondary water barrier.; |
149 | 3. Roof covering.; |
150 | 4. Brace gable ends.; |
151 | 5. Reinforce roof-to-wall connections.; |
152 | 6. Opening protection.; and |
153 | 7. Exterior doors, including garage doors. |
154 | (f) Grants may be used on a previously inspected existing |
155 | structure or on a rebuild. A rebuild is defined as a site-built, |
156 | single-family dwelling under construction to replace a home that |
157 | was destroyed or significantly damaged by a hurricane and deemed |
158 | unlivable by a regulatory authority. The homeowner must have had |
159 | a homestead exemption prior to the hurricane and maintained the |
160 | homestead exemption. |
161 | (g)(f) Low-income homeowners, as defined in s. |
162 | 420.0004(10)(9), who otherwise meet the requirements of |
163 | paragraphs (a), and (c), (e), and (f) are eligible for a grant |
164 | of up to $5,000 and are not required to provide a matching |
165 | amount to receive the grant. Additionally, for low-income |
166 | homeowners, grant funding may be used for repair to existing |
167 | structures leading to any of the mitigation improvements |
168 | provided in paragraph (e), limited to 20 percent of the grant |
169 | value. Such grants shall be used to retrofit single-family, |
170 | site-built, owner-occupied, residential properties in order to |
171 | make them less vulnerable to hurricane damage. |
172 | (7) CONTRACT WITH NOT-FOR-PROFIT CORPORATION.--The |
173 | Department of Financial Services is authorized to contract with |
174 | a not-for-profit corporation to conduct all or portions of the |
175 | program and to increase the awareness of the benefits of |
176 | mitigation among homeowners in this state. The department shall |
177 | consider the not-for-profit corporation's ability to raise funds |
178 | from the private sector to provide for mitigation grants, as |
179 | well as administrative capabilities for conducting other |
180 | business related to the program. |
181 | Section 3. Effective October 1, 2007, part XV of chapter |
182 | 468, Florida Statutes, consisting of section 468.851, Florida |
183 | Statutes, is created to read: |
184 | PART XV |
185 | WIND MITIGATION INSPECTORS |
186 | 468.851 Wind mitigation inspectors; certification; |
187 | inspections.-- |
188 | (1) For purposes of this section: |
189 | (a) "Wind mitigation inspection" means home-retrofit |
190 | inspection of site-built residential property to determine |
191 | mitigation measures and improvements to existing residential |
192 | properties which measures and improvements are identified to |
193 | reduce the property's vulnerability to hurricane wind damage and |
194 | help prepare property owners for future tropical storms and |
195 | hurricanes by providing information regarding deficiencies in |
196 | structures that may be susceptible to damage due to high winds. |
197 | (b) "Wind mitigation inspector" means a person who is |
198 | certified by the department under this section or, prior to |
199 | December 31, 2007, approved by the Department of Financial |
200 | Services pursuant to s. 215.5586, who acts as a wind mitigation |
201 | inspector while conducting special inspections not required as |
202 | minimum inspections by the Florida Building Code, and who is |
203 | qualified to inspect and determine that residential buildings |
204 | and structures can be retrofitted to resist near-hurricane and |
205 | hurricane velocity winds in accordance with the provisions of |
206 | this section. |
207 | (c) "Department" means the Department of Business and |
208 | Professional Regulation. |
209 | (2) The department may: |
210 | (a) Adopt rules pursuant to ss. 120.536(1) and 120.54 to |
211 | implement the provisions of this section. |
212 | (b) Certify individuals as being qualified under the |
213 | provisions of this section as wind mitigation inspectors. |
214 | (c) Establish by rule fees to cover the costs of the |
215 | program, of up to $200 for each application or renewal. |
216 | (3)(a) Any person who desires to be certified under this |
217 | section shall apply to the department, in writing, upon forms |
218 | approved and furnished by the department. The department may |
219 | approve the application for certification if the person: |
220 | 1. Is at least 18 years of age. |
221 | 2. Is of good moral character. |
222 | 3. Provides proof, in a form established by department |
223 | rule, that the applicant has satisfactorily completed classroom |
224 | education courses for initial certification. The department may |
225 | establish by rule criteria for accepting alternative |
226 | nonclassroom education or training. |
227 | (b) As a condition of each renewal the applicant shall |
228 | provide proof, in a form established by department rule, that |
229 | the applicant has satisfactorily completed continuing education |
230 | courses during each biennium since the issuance or renewal of |
231 | the certificate. |
232 | (c) The department shall establish by rule criteria for |
233 | approval of initial education courses and continuing education |
234 | courses and providers and may endorse or approve training |
235 | conducted pursuant to s. 455.2179, s. 215.5586, or s. 215.559. |
236 | Continuing education providers shall submit education |
237 | information to the department pursuant to s. 455.2178. |
238 | (4) The department shall issue a certificate to any |
239 | individual the department determines is qualified under this |
240 | section. A person may not be employed by a state agency or local |
241 | governmental authority or hold himself or herself out to the |
242 | general public for compensation as a wind mitigation inspector |
243 | without possessing the certificate issued in accordance with |
244 | this section, except for licensed contractors, licensed |
245 | professional engineers, and licensed architects that have |
246 | satisfactorily completed a continuing education course in wind |
247 | certification and hurricane mitigation approved pursuant to s. |
248 | 489.115. |
249 | (5) The following acts constitute grounds for which the |
250 | disciplinary actions in subsection (6) may be taken: |
251 | (a) Violating or failing to comply with any provision of |
252 | this section, or rule or lawful order of the department. |
253 | (b) Obtaining certification through fraud, deceit, or |
254 | perjury. |
255 | (c) Having been convicted of a felony against this state |
256 | or the United States, or of a felony in another state that would |
257 | have been a felony had it been committed in this state. |
258 | (d) Having been convicted of a crime in any jurisdiction |
259 | which directly relates to the practice of wind mitigation |
260 | inspection. |
261 | (e) Making or filing a report or record which the |
262 | certificateholder knows to be false, knowingly inducing another |
263 | to file a false report or record, knowingly failing to file a |
264 | report or record required by state or local law, knowingly |
265 | impeding or obstructing such filing, or knowingly inducing |
266 | another person to impede or obstruct such filing. |
267 | (f) Failing to conduct proper wind mitigation inspections |
268 | by committing willful misconduct, gross negligence, gross |
269 | misconduct, repeated negligence, or negligence resulting in a |
270 | significant danger to life or property. |
271 | (g) Having a certification or license suspended or being |
272 | disciplined in another jurisdiction. |
273 | (6) When the department finds that any person has |
274 | committed any of the acts set forth in subsection (5), the |
275 | department may enter an order imposing one or more of the |
276 | following penalties: |
277 | (a) Denial of an application for certification. |
278 | (b) Permanent revocation of a certificate. |
279 | (c) Suspension of a certificate. |
280 | (d) Imposition of an administrative fine not to exceed |
281 | $5,000 for each separate offense. Such fine must be rationally |
282 | related to the gravity of the violation. |
283 | (e) Issuance of a reprimand. |
284 | (f) Placement of the certificateholder on probation for a |
285 | period of time and subject to such conditions as the department |
286 | may impose. |
287 | (g) Satisfactory completion of additional education or |
288 | training. |
289 | (h) Issuance of a citation. |
290 | (7) When a certificate is suspended, placed on probation, |
291 | or has conditions imposed, the department shall reinstate the |
292 | certificate upon proof the disciplined individual has complied |
293 | with all terms and conditions set forth in the final order. |
294 | (8) With respect to a wind mitigation inspector |
295 | certificate, a person may not: |
296 | (a) Falsely hold himself or herself out as a |
297 | certificateholder. |
298 | (b) Falsely impersonate a certificateholder. |
299 | (c) Present as his or her own the certificate of another. |
300 | (d) Give false or forged evidence to the department for |
301 | the purpose of obtaining a certificate. |
302 | (e) Use or attempt to use a certificate that has been |
303 | suspended or revoked. |
304 | (f) Threaten, coerce, persuade, or otherwise influence, or |
305 | attempt to threaten, coerce, persuade, or otherwise influence, |
306 | any certificateholder to violate any provision of this section. |
307 | (g) Offer any compensation to a certificateholder in order |
308 | to induce a violation of this part, a local building code or |
309 | ordinance, or another law of this state. |
310 | (9) Any person who violates any provision of this section |
311 | commits a misdemeanor of the first degree, punishable as |
312 | provided in s. 775.082 or s. 775.083. Any person who violates |
313 | any provision of this section after a previous conviction for |
314 | such violation commits a felony of the third degree, punishable |
315 | as provided in s. 775.082 or s. 775.083. |
316 | (10) The department shall develop and maintain as a public |
317 | record a current list of wind mitigation inspectors authorized |
318 | to conduct wind mitigation inspections pursuant to this section |
319 | and a list of contractors, architects, and engineers who are |
320 | authorized to conduct wind mitigation inspections pursuant to |
321 | ss. 489.115(4), 471.017(4), and 481.215(7), respectively. |
322 | Section 4. Wind mitigation inspectors that are approved by |
323 | the Department of Financial Services pursuant to s. 215.5586, |
324 | Florida Statutes, at the time of the effective date of the |
325 | certification provisions of s. 468.851, Florida Statutes, shall |
326 | be given until December 31, 2007, to comply with the |
327 | certification requirements by making application to the |
328 | Department of Business and Professional Regulation pursuant to |
329 | s. 120.60, Florida Statutes. The Department of Financial |
330 | Services shall provide a list of qualified wind mitigation |
331 | inspectors employed as of September 30, 2007, by the wind |
332 | certification entities approved pursuant to s. 215.5586, Florida |
333 | Statutes. The provisions of s. 468.851(4), Florida Statutes, |
334 | shall not restrict the Department of Financial Services from |
335 | using the services of those individuals performing services |
336 | pursuant to s. 215.5586, Florida Statutes, until December 31, |
337 | 2007. |
338 | Section 5. Subsection (4) is added to section 471.017, |
339 | Florida Statutes, to read: |
340 | 471.017 Renewal of license.-- |
341 | (4) The board may approve specialized continuing education |
342 | courses on wind mitigation methodologies which have been |
343 | approved by the Department of Financial Services. Upon |
344 | completion of such specialized wind mitigation courses, licensed |
345 | engineers who demonstrate proficiency in wind mitigation |
346 | methodologies may conduct wind mitigation inspections. For |
347 | purposes of this subparagraph, the term "wind mitigation |
348 | inspection" has the same meaning as provided in s. 468.851. |
349 | Section 6. Subsection (7) is added to section 481.215, |
350 | Florida Statutes, to read: |
351 | 481.215 Renewal of license.-- |
352 | (7) The board may approve specialized continuing education |
353 | courses on wind mitigation methodologies which have been |
354 | approved by the Department of Financial Services. Upon |
355 | completion of such specialized wind mitigation courses, licensed |
356 | architects who demonstrate proficiency in wind mitigation |
357 | methodologies may conduct wind mitigation inspections. For |
358 | purposes of this subparagraph, the term "wind mitigation |
359 | inspection" has the same meaning as provided in s. 468.851. |
360 | Section 7. Paragraph (b) of subsection (4) of section |
361 | 489.115, Florida Statutes, is amended to read: |
362 | 489.115 Certification and registration; endorsement; |
363 | reciprocity; renewals; continuing education.-- |
364 | (4) |
365 | (b)1. Each certificateholder or registrant shall provide |
366 | proof, in a form established by rule of the board, that the |
367 | certificateholder or registrant has completed at least 14 |
368 | classroom hours of at least 50 minutes each of continuing |
369 | education courses during each biennium since the issuance or |
370 | renewal of the certificate or registration. The board shall |
371 | establish by rule that a portion of the required 14 hours must |
372 | deal with the subject of workers' compensation, business |
373 | practices, and workplace safety. The board shall by rule |
374 | establish criteria for the approval of continuing education |
375 | courses and providers, including requirements relating to the |
376 | content of courses and standards for approval of providers, and |
377 | may by rule establish criteria for accepting alternative |
378 | nonclassroom continuing education on an hour-for-hour basis. The |
379 | board shall prescribe by rule the continuing education, if any, |
380 | which is required during the first biennium of initial |
381 | licensure. A person who has been licensed for less than an |
382 | entire biennium must not be required to complete the full 14 |
383 | hours of continuing education. |
384 | 2. In addition, the board may approve specialized |
385 | continuing education courses on compliance with the wind |
386 | resistance provisions for one and two family dwellings contained |
387 | in the Florida Building Code and any alternate methodologies for |
388 | providing such wind resistance which have been approved for use |
389 | by the Florida Building Commission or wind mitigation |
390 | methodologies which have been approved by the Department of |
391 | Financial Services. Division I certificateholders or registrants |
392 | who demonstrate proficiency upon completion of such specialized |
393 | courses may certify plans and specifications for one and two |
394 | family dwellings to be in compliance with the code or alternate |
395 | methodologies, as appropriate, except for dwellings located in |
396 | floodways or coastal hazard areas as defined in ss. 60.3D and E |
397 | of the National Flood Insurance Program. Upon completion of such |
398 | specialized wind mitigation courses, Division I |
399 | certificateholders or registrants who demonstrate proficiency in |
400 | wind mitigation methodologies may conduct wind mitigation |
401 | inspections. For purposes of this subparagraph, the term "wind |
402 | mitigation inspection" has the same meaning as provided in s. |
403 | 468.851. |
404 | 3. Each certificateholder or registrant shall provide to |
405 | the board proof of completion of the core curriculum courses, or |
406 | passing the equivalency test of the Building Code Training |
407 | Program established under s. 553.841, specific to the licensing |
408 | category sought, within 2 years after commencement of the |
409 | program or of initial certification or registration, whichever |
410 | is later. Classroom hours spent taking core curriculum courses |
411 | shall count toward the number required for renewal of |
412 | certificates or registration. A certificateholder or registrant |
413 | who passes the equivalency test in lieu of taking the core |
414 | curriculum courses shall receive full credit for core curriculum |
415 | course hours. |
416 | 4. The board shall require, by rule adopted pursuant to |
417 | ss. 120.536(1) and 120.54, a specified number of hours in |
418 | specialized or advanced module courses, approved by the Florida |
419 | Building Commission, on any portion of the Florida Building |
420 | Code, adopted pursuant to part VII of chapter 553, relating to |
421 | the contractor's respective discipline. |
422 | Section 8. Paragraph (a) of subsection (3) of section |
423 | 626.2815, Florida Statutes, is amended to read: |
424 | 626.2815 Continuing education required; application; |
425 | exceptions; requirements; penalties.-- |
426 | (3)(a) Each person subject to the provisions of this |
427 | section must, except as set forth in paragraphs (b), (c), and |
428 | (d), complete a minimum of 24 hours of continuing education |
429 | courses every 2 years in basic or higher-level courses |
430 | prescribed by this section or in other courses approved by the |
431 | department. Each person subject to the provisions of this |
432 | section must complete, as part of his or her required number of |
433 | continuing education hours, 3 hours of continuing education, |
434 | approved by the department, every 2 years on the subject matter |
435 | of ethics. Each licensed general lines agent and customer |
436 | representative subject to this section must complete, as part of |
437 | his or her required number of continuing education hours, 1 hour |
438 | of continuing education, approved by the department, every 2 |
439 | years on the subject matter of premium discounts available on |
440 | property insurance policies based on various hurricane |
441 | mitigation options and the means for obtaining the discounts. |
442 | Section 9. Paragraph (k) is added to subsection (2) of |
443 | section 627.062, Florida Statutes, to read: |
444 | 627.062 Rate standards.-- |
445 | (2) As to all such classes of insurance: |
446 | (k) With respect to residential property insurance rate |
447 | filings, the rate filing must account for mitigation measures |
448 | undertaken by policyholders to reduce hurricane losses. |
449 |
|
450 | The provisions of this subsection shall not apply to workers' |
451 | compensation and employer's liability insurance and to motor |
452 | vehicle insurance. |
453 | Section 10. Effective October 1, 2007, subsection (1) of |
454 | section 627.0629, Florida Statutes, is amended to read: |
455 | 627.0629 Residential property insurance; rate filings.-- |
456 | (1) Effective June 1, 2002, a rate filing for residential |
457 | property insurance must include actuarially reasonable |
458 | discounts, credits, or other rate differentials, and, exclusive |
459 | of discounts, credits, or other rate differentials, subject to |
460 | deductible minimums set forth in s. 627.701, or appropriate |
461 | reductions in deductibles, for properties on which fixtures or |
462 | construction techniques demonstrated to reduce the amount of |
463 | loss in a windstorm have been installed or implemented. The |
464 | fixtures or construction techniques shall include, but not be |
465 | limited to, fixtures or construction techniques which enhance |
466 | roof strength, roof covering performance, roof-to-wall strength, |
467 | wall-to-floor-to-foundation strength, opening protection, and |
468 | window, door, and skylight strength. Credits, discounts, or |
469 | other rate differentials, or appropriate reductions in |
470 | deductibles, for fixtures and construction techniques which meet |
471 | the minimum requirements of the Florida Building Code must be |
472 | included in the rate filing. All insurance companies must make a |
473 | rate filing which includes the credits, discounts, or other rate |
474 | differentials or reductions in deductibles by February 28, 2003. |
475 | By July 1, 2007, the office shall reevaluate the discounts, |
476 | credits, other rate differentials, and appropriate reductions in |
477 | deductibles for fixtures and construction techniques that meet |
478 | the minimum requirements of the Florida Building Code, based |
479 | upon actual experience or any other loss relativity studies |
480 | available to the office. The office shall determine the |
481 | discounts, credits, other rate differentials, and appropriate |
482 | reductions in deductibles that reflect the full actuarial value |
483 | of such revaluation, which may be used by insurers in rate |
484 | filings. |
485 | Section 11. Subsection (9) of section 627.701, Florida |
486 | Statutes, is amended to read: |
487 | 627.701 Liability of insureds; coinsurance; deductibles.-- |
488 | (9) With respect to hurricane coverage provided in a |
489 | policy of residential coverage, when the policyholder has taken |
490 | appropriate hurricane mitigation measures regarding the |
491 | residence covered under the policy, the insurer shall may |
492 | provide the insured the option of selecting an appropriate |
493 | reduction in the policy's hurricane deductible or in lieu of |
494 | selecting the appropriate discount credit or other rate |
495 | differential as provided in s. 627.0629. If made available by |
496 | the insurer, The insurer must provide the policyholder with |
497 | notice of the options available under this subsection on a form |
498 | approved by the office. |
499 | Section 12. Section 627.711, Florida Statutes, is amended |
500 | to read: |
501 | 627.711 Notice of premium discounts for hurricane loss |
502 | mitigation; uniform mitigation verification inspection form.-- |
503 | (1) Using a form prescribed by the Office of Insurance |
504 | Regulation, the insurer shall clearly notify the applicant or |
505 | policyholder of any personal lines residential property |
506 | insurance policy, at the time of the issuance of the policy and |
507 | at each renewal, of the availability and the range of each |
508 | premium discount, credit, other rate differential, or reduction |
509 | in deductibles for properties on which fixtures or construction |
510 | techniques demonstrated to reduce the amount of loss in a |
511 | windstorm can be or have been installed or implemented. The |
512 | prescribed form shall describe generally what actions the |
513 | policyholders may be able to take to reduce their windstorm |
514 | premium. The prescribed form and a list of such ranges approved |
515 | by the office for each insurer licensed in the state and |
516 | providing such discounts, credits, other rate differentials, or |
517 | reductions in deductibles for properties described in this |
518 | subsection shall be available for electronic viewing and |
519 | download from the Department of Financial Services' or the |
520 | Office of Insurance Regulation's Internet website. The Financial |
521 | Services Commission may adopt rules to implement this |
522 | subsection. |
523 | (2) The Financial Services Commission shall develop by |
524 | rule a uniform mitigation verification inspection form that |
525 | shall be used by all insurers when factoring discounts for wind |
526 | insurance. In developing the form, the commission shall seek |
527 | input from insurance, construction, and building code |
528 | representatives. Further, the commission shall provide guidance |
529 | as to the length of time the inspection results are valid. This |
530 | form shall be used in conjunction with the wind certification |
531 | and hurricane mitigation inspections conducted by licensed and |
532 | exempt professionals pursuant to ss. 215.5586 and 468.851. |
533 | Section 13. Windstorm Mitigation Study Committee.-- |
534 | (1)(a) The Windstorm Mitigation Study Commission is |
535 | created and shall be composed of eight members as follows: |
536 | 1. Two members shall be appointed by the Governor, with |
537 | one designated by the Governor to serve as chair. |
538 | 2. Two members shall be appointed by the Chief Financial |
539 | Officer. |
540 | 3. Two members shall be appointed by the President of the |
541 | Senate. |
542 | 4. Two members shall be appointed by the Speaker of the |
543 | House of Representatives. |
544 | (b) Each member must be knowledgeable of issues concerning |
545 | the mitigation of the effects of windstorms on structures in |
546 | this state and at least one member must represent primarily the |
547 | interests of homeowners. |
548 | (2)(a) The members of the committee shall serve without |
549 | compensation, but are entitled to reimbursement for all |
550 | necessary expenses incurred in performing their duties, |
551 | including travel expenses, in accordance with s. 112.061, |
552 | Florida Statutes. Reimbursements for travel shall be paid by the |
553 | appointing entity. |
554 | (b) The committee shall meet as necessary, at the call of |
555 | the chair, and at the time and place designated by the chair. |
556 | The committee may conduct its meetings through teleconferences |
557 | or other similar means. The first meeting of the committee shall |
558 | occur no later than February 9, 2007. |
559 | (3) The Department of Financial Services, the Office of |
560 | Insurance Regulation, the Citizens Property Insurance |
561 | Corporation, and other agencies of this state shall supply any |
562 | information, assistance, and facilities that are considered |
563 | necessary by the committee to carry out its duties under this |
564 | section. The department shall provide staff assistance as |
565 | necessary in order to carry out the required clerical and |
566 | administrative functions of the committee. |
567 | (4) The committee shall analyze those solutions and |
568 | programs that address the state's acute need to mitigate the |
569 | effects of windstorms on structures, especially residential |
570 | property that is located in areas at greatest risk of windstorm |
571 | damage, including programs or proposals that provide for: |
572 | (a) The availability of home inspections for windstorm |
573 | resistance. |
574 | (b) Grants to assist homeowners, and possibly other groups |
575 | of property owners, to harden their property against windstorm |
576 | damage. |
577 | (c) The full actuarial value to be reflected in premium |
578 | credits for windstorm mitigation. |
579 | (d) The most effective way to inform policyholders of the |
580 | availability of and means by which to obtain premium credits for |
581 | windstorm mitigation. |
582 | (e) Coordination among federal, local, and private |
583 | initiatives. |
584 | (f) Streamlining or strengthening applicable state, |
585 | regional, and local regulations. |
586 | (g) The stimulation of public and private efforts to |
587 | mitigate against windstorm injury and damage. |
588 | (h) The discovery and assessment of funding sources for |
589 | windstorm mitigation. |
590 | (i) Tax incentives for windstorm mitigation. |
591 | (j) Consumer information concerning the benefits of |
592 | windstorm mitigation, including personal safety as well as |
593 | property security. |
594 | (k) Research on windstorm mitigation. |
595 |
|
596 | The committee may develop any other solutions and programs that |
597 | it considers appropriate. |
598 | (5) In performing its analysis, the committee shall |
599 | consider both the safety of the residents of this state and the |
600 | protection of real property, especially residential. In |
601 | addition, the committee shall consider both short-term and long- |
602 | term solutions and programs. |
603 | (6) The committee shall review, evaluate, and make |
604 | recommendations regarding existing and proposed programs and |
605 | initiatives for mitigating windstorm damage. |
606 | (7) The committee shall provide recommendations, including |
607 | proposed legislation, to the Governor, the President of the |
608 | Senate, the Speaker of the House of Representatives, the Chief |
609 | Financial Officer, and the Commissioner of Insurance Regulation |
610 | by March 6, 2007. |
611 | (8) The committee shall expire on May 15, 2007. |
612 | Section 14. The Financial Services Commission shall adopt |
613 | a uniform home grading scale to grade the ability of a home to |
614 | withstand the wind load from a sustained severe tropical storm |
615 | or hurricane. The commission shall coordinate with the Office of |
616 | Insurance Regulation, the Department of Financial Services, and |
617 | the Department of Community Affairs in developing the grading |
618 | scale, which must be based upon and consistent with the rating |
619 | system required by chapter 2006-12, Laws of Florida. The |
620 | commission shall adopt the uniform grading scale by rule no |
621 | later than June 30, 2007. |
622 | Section 15. For fiscal year 2006-2007, the sum of |
623 | $100,066,518 is appropriated in fixed capital outlay from the |
624 | Florida Small Cities Community Development Block Grant Program |
625 | Fund to the Department of Community Affairs. These funds shall |
626 | be used consistent with The Federal Register, Vol. 71, No. 209, |
627 | Docket No. FR-5089-N-01, and the Action Plan for Disaster |
628 | Recovery Approved by the United States Department of Housing and |
629 | Urban Development. This funding shall be used to harden single- |
630 | family and multifamily housing to ensure that affordable |
631 | housing can withstand the effects of hurricane force winds and |
632 | to mitigate against the increasing costs of insurance. Funds may |
633 | also be used to support housing rehabilitation or repair and |
634 | infrastructure development or improvement in accordance with the |
635 | approved action plan. |
636 | Section 16. For fiscal year 2006-2007, there is |
637 | appropriated $1,761,000 from the Department of Business and |
638 | Professional Regulation's Professional Regulation Trust Fund and |
639 | 5 FTE to the Department of Business and Professional Regulation |
640 | for the purposes of implementing section 3 of this act. |
641 | Section 17. For fiscal year 2006-2007, there is |
642 | appropriated $2,000,000 from the Department of Financial |
643 | Services' Insurance Regulatory Trust Fund to the Department of |
644 | Financial Services for the purposes of implementing section 14 |
645 | of this act. |
646 | Section 18. Except as otherwise expressly provided in this |
647 | act, this act shall take effect upon becoming a law. |