| 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. |