Florida Senate - 2012 SB 1684
By Senator Hays
20-01371-12 20121684__
1 A bill to be entitled
2 An act relating to the Hurricane Loss Mitigation
3 Program; amending s. 215.559, F.S.; revising
4 provisions relating to the program; providing
5 purposes; revising the membership of the program’s
6 advisory council; deleting provisions specifying how
7 program funding is to be apportioned; deleting the
8 Manufactured Housing and Mobile Home Mitigation and
9 Enhancement Program; providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Section 215.559, Florida Statutes, is amended to
14 read:
15 215.559 Hurricane Loss Mitigation Program.—A Hurricane Loss
16 Mitigation Program is established in the Division of Emergency
17 Management.
18 (1) The purpose of the program is to:
19 (a) Provide funding and supervision for the public
20 hurricane loss projection model;
21 (b) Supervise and fund the My Safe Florida Home Program;
22 (c) Establish a statewide program for inspection standards
23 and data collection related to hurricane loss;
24 (d) Further the science of hurricane mitigation by working
25 with all types of businesses, scientists, and academics in order
26 to further the availability and measure the effectiveness of new
27 ways to mitigate hurricane damage to homes;
28 (e) Be a state resource on the assessment of the potential
29 expected cost of hurricane damage and the results of mitigation;
30 and
31 (f) Provide regulatory oversight to the Office of Insurance
32 Regulation on the applicability and use of wind mitigation
33 discounts for homeowners’ insurance.
34 (2)(1) The Legislature shall annually appropriate $10
35 million of the moneys authorized for appropriation under s.
36 215.555(7)(c) from the Florida Hurricane Catastrophe Fund to the
37 division for the purposes set forth in this section. Of the
38 amount:
39 (a) Seven million dollars in funds shall be used for
40 programs to improve the wind resistance of residences and mobile
41 homes, including loans, subsidies, grants, demonstration
42 projects, and direct assistance; educating persons concerning
43 the Florida Building Code cooperative programs with local
44 governments and the Federal Government; and other efforts to
45 prevent or reduce losses or reduce the cost of rebuilding after
46 a disaster.
47 (b) Three million dollars in funds shall be used to
48 retrofit existing facilities used as public hurricane shelters.
49 Each year the division shall prioritize the use of these funds
50 for projects included in the annual report of the Shelter
51 Retrofit Report prepared in accordance with s. 252.385(3). The
52 division must give funding priority to projects in regional
53 planning council regions that have shelter deficits and to
54 projects that maximize the use of state funds.
55 (2)(a) Forty percent of the total appropriation in
56 paragraph (1)(a) shall be used to inspect and improve tie-downs
57 for mobile homes.
58 (b)1. The Manufactured Housing and Mobile Home Mitigation
59 and Enhancement Program is established. The program shall
60 require the mitigation of damage to or the enhancement of homes
61 for the areas of concern raised by the Department of Highway
62 Safety and Motor Vehicles in the 2004-2005 Hurricane Reports on
63 the effects of the 2004 and 2005 hurricanes on manufactured and
64 mobile homes in this state. The mitigation or enhancement must
65 include, but need not be limited to, problems associated with
66 weakened trusses, studs, and other structural components caused
67 by wood rot or termite damage; site-built additions; or tie-down
68 systems and may also address any other issues deemed appropriate
69 by Tallahassee Community College, the Federation of Manufactured
70 Home Owners of Florida, Inc., the Florida Manufactured Housing
71 Association, and the Department of Highway Safety and Motor
72 Vehicles. The program shall include an education and outreach
73 component to ensure that owners of manufactured and mobile homes
74 are aware of the benefits of participation.
75 2. The program shall be a grant program that ensures that
76 entire manufactured home communities and mobile home parks may
77 be improved wherever practicable. The moneys appropriated for
78 this program shall be distributed directly to Tallahassee
79 Community College for the uses set forth under this subsection.
80 3. Upon evidence of completion of the program, the Citizens
81 Property Insurance Corporation shall grant, on a pro rata basis,
82 actuarially reasonable discounts, credits, or other rate
83 differentials or appropriate reductions in deductibles for the
84 properties of owners of manufactured homes or mobile homes on
85 which fixtures or construction techniques that have been
86 demonstrated to reduce the amount of loss in a windstorm have
87 been installed or implemented. The discount on the premium must
88 be applied to subsequent renewal premium amounts. Premiums of
89 the Citizens Property Insurance Corporation must reflect the
90 location of the home and the fact that the home has been
91 installed in compliance with building codes adopted after
92 Hurricane Andrew. Rates resulting from the completion of the
93 Manufactured Housing and Mobile Home Mitigation and Enhancement
94 Program are not considered competitive rates for the purposes of
95 s. 627.351(6)(d)1. and 2.
96 4. On or before January 1 of each year, Tallahassee
97 Community College shall provide a report of activities under
98 this subsection to the Governor, the President of the Senate,
99 and the Speaker of the House of Representatives. The report must
100 set forth the number of homes that have taken advantage of the
101 program, the types of enhancements and improvements made to the
102 manufactured or mobile homes and attachments to such homes, and
103 whether there has been an increase in availability of insurance
104 products to owners of manufactured or mobile homes.
105
106 Tallahassee Community College shall develop the programs set
107 forth in this subsection in consultation with the Federation of
108 Manufactured Home Owners of Florida, Inc., the Florida
109 Manufactured Housing Association, and the Department of Highway
110 Safety and Motor Vehicles. The moneys appropriated for the
111 programs set forth in this subsection shall be distributed
112 directly to Tallahassee Community College to be used as set
113 forth in this subsection.
114 (3) Of moneys provided to the division in paragraph (1)(a),
115 10 percent shall be allocated to the Florida International
116 University center dedicated to hurricane research. The center
117 shall develop a preliminary work plan approved by the advisory
118 council set forth in subsection (4) to eliminate the state and
119 local barriers to upgrading existing mobile homes and
120 communities, research and develop a program for the recycling of
121 existing older mobile homes, and support programs of research
122 and development relating to hurricane loss reduction devices and
123 techniques for site-built residences. The State University
124 System also shall consult with the division and assist the
125 division with the report required under subsection (6).
126 (4) Except for the programs set forth in subsection (3),
127 the division shall develop the programs set forth in this
128 section in consultation with an advisory council consisting of a
129 representative designated by the Chief Financial Officer, a
130 representative designated by the Florida Home Builders
131 Association, a representative designated by the Florida
132 Insurance Council, a representative designated by the Federation
133 of Manufactured Home Owners, a representative designated by the
134 Florida Association of Counties, a representative designated by
135 the Florida Manufactured Housing Association, and a
136 representative designated by the Florida Building Commission.
137 (5) Moneys provided to the division under this section are
138 intended to supplement, not supplant, the division’s other
139 funding sources.
140 (3) An advisory council shall be established to provide
141 advice and assistance regarding the administration of the
142 program. The advisory council shall consist of:
143 (a) The Director of the Office of Insurance Regulation, or
144 his or her designee, who may not serve as chair of the
145 committee;
146 (b) The Insurance Consumer Advocate, or his or her
147 designee;
148 (c) Two representatives of homeowners’ insurance companies,
149 one of whom represents small companies and is appointed by the
150 President of the Senate, and one of whom represents large
151 companies and is appointed by the Speaker of the House of
152 Representatives;
153 (d) Two scientists, one of whom has experience and training
154 in the sciences related to wind or the building code and is
155 appointed by the President of the Senate, and one of whom has a
156 background in engineering and is appointed by the Speaker of the
157 House of Representatives;
158 (e) Two legislators, one appointed by the President of the
159 Senate, and one appointed by the Speaker of the House of
160 Representatives;
161 (f) One representative of the reinsurance industry, who is
162 appointed jointly by the President of the Senate and the Speaker
163 of the House of Representatives; and
164 (f) One scientist who has a background in modeling
165 appointed by the division.
166 (4)(6) On January 1st of each year, the division shall
167 provide a full report and accounting of activities under this
168 section and an evaluation of such activities to the Speaker of
169 the House of Representatives, the President of the Senate, and
170 the Majority and Minority Leaders of the House of
171 Representatives and the Senate. Upon completion of the report,
172 the division shall deliver the report to the Office of Insurance
173 Regulation. The Office of Insurance Regulation shall review the
174 report and shall make such recommendations available to the
175 insurance industry as the Office of Insurance Regulation deems
176 appropriate. These recommendations may be used by insurers for
177 potential discounts or rebates pursuant to s. 627.0629. The
178 Office of Insurance Regulation shall make such recommendations
179 within 1 year after receiving the report.
180 (5)(7) This section expires is repealed June 30, 2021.
181 Section 2. This act shall take effect July 1, 2012.