Florida Senate - 2016                                     SB 584
       By Senator Brandes
       22-00568C-16                                           2016584__
    1                        A bill to be entitled                      
    2         An act relating to the peril of flood; creating s.
    3         252.64, F.S.; authorizing the Division of Emergency
    4         Management to administer a matching grant program to
    5         provide up to $50 million in technical and financial
    6         assistance to local governments to implement certain
    7         flood risk reduction policies and projects; requiring
    8         the division to rank applications for assistance based
    9         on certain criteria; authorizing the division to adopt
   10         rules; capping funds for administration; requiring the
   11         division to establish a system to monitor grants;
   12         amending s. 380.507, F.S.; authorizing the Florida
   13         Communities Trust to undertake, coordinate, or fund
   14         flood mitigation projects and to acquire and dispose
   15         of real and personal property or specified interest
   16         when necessary or appropriate to reduce flood hazards;
   17         amending s. 380.508, F.S.; specifying the purpose of
   18         acceptable flood mitigation projects undertaken,
   19         coordinated, or funded by the trust; amending s.
   20         380.510, F.S.; conforming a cross-reference;
   21         specifying certain required conditions to be included
   22         in trust grant or loan agreements for land
   23         acquisition; amending s. 472.0366, F.S.; authorizing
   24         the division to contract with third parties to store
   25         elevation certificates and maintain a database for
   26         public access to such certificates; amending s.
   27         627.715, F.S.; authorizing an insurer to issue flood
   28         insurance policies on a flexible basis; extending the
   29         date by which an insurer may use certain statutory
   30         rate standards for establishing and using flood
   31         coverage rates; extending the date by which a surplus
   32         lines agent may export a contract or endorsement
   33         providing flood coverage to an eligible surplus lines
   34         insurer without making a diligent effort to seek such
   35         coverage from three or more authorized insurers;
   36         providing an effective date.
   38  Be It Enacted by the Legislature of the State of Florida:
   40         Section 1. Section 252.64, Florida Statutes, is created to
   41  read:
   42         252.64 Local government flood hazard risk reduction
   43  assistance.—
   44         (1) The Division of Emergency Management is authorized to
   45  administer a matching grant program to provide up to $50 million
   46  in technical and financial assistance, subject to appropriation,
   47  to local governments to implement flood risk reduction policies
   48  and projects consistent with the coastal management element of a
   49  local government comprehensive plan required under s. 163.3178,
   50  an approved local hazard mitigation plan, or an adaptation
   51  action plan.
   52         (2)The division shall rank each received application for
   53  assistance and shall give priority to:
   54         (a) Projects that provide the greatest scoring improvement
   55  within the National Flood Insurance Program Community Rating
   56  System;
   57         (b) The acquisition of flood-prone property for conversion
   58  to open space in perpetuity, or the development of natural or
   59  grey infrastructure, to reduce the risk of flooding;
   60         (c) Applications submitted by local governments that have
   61  encountered a significant increase in National Flood Insurance
   62  premiums during the preceding 5 years;
   63         (d) Projects that will protect the greatest number of
   64  structures from frequent flooding;
   65         (e) Applications that exceed the dollar-for-dollar matching
   66  funds threshold; and
   67         (f) Local governments that participate in the National
   68  Flood Insurance Program Community Rating System.
   69         (3) The division may adopt rules to administer this section
   70  and shall consult with the state land planning agency in
   71  developing ranking criteria for project selection.
   72         (4) A recipient may not spend more than 8 percent of grant
   73  funds on administration.
   74         (5)The division shall establish a system to monitor
   75  grants, including site visits, to ensure proper expenditure of
   76  funds and compliance with the conditions of the recipient’s
   77  contract.
   78         Section 2. Present paragraphs (c) through (g) of subsection
   79  (2) of section 380.507, Florida Statutes, are redesignated as
   80  paragraphs (d) through (h), respectively, a new paragraph (c) is
   81  added to that subsection, and subsection (4) of that section is
   82  amended, to read:
   83         380.507 Powers of the trust.—The trust shall have all the
   84  powers necessary or convenient to carry out the purposes and
   85  provisions of this part, including:
   86         (2) To undertake, coordinate, or fund activities and
   87  projects which will help bring local comprehensive plans into
   88  compliance and help implement the goals, objectives, and
   89  policies of the conservation, recreation and open space, and
   90  coastal elements of local comprehensive plans, or which will
   91  otherwise serve to conserve natural resources and resolve land
   92  use conflicts, including, but not limited to:
   93         (c) Flood mitigation projects.
   94         (4) To acquire and dispose of real and personal property or
   95  any interest therein when necessary or appropriate to protect
   96  the natural environment, provide public access or public
   97  recreational facilities, including the Florida National Scenic
   98  Trail, preserve wildlife habitat areas, provide access for
   99  managing acquired lands, reduce flood hazards, or otherwise
  100  carry out the purposes of this part. If the trust acquires land
  101  for permanent state ownership, title to such land shall be
  102  vested in the Board of Trustees of the Internal Improvement
  103  Trust Fund; otherwise, title to property acquired in partnership
  104  with a county or municipality shall vest in the name of the
  105  local government. Notwithstanding any other provision of law,
  106  the trust may enter into an option agreement to purchase lands
  107  included in projects approved according to this part, when
  108  necessary to reserve lands during the preparation of project
  109  plans and during acquisition proceedings. The consideration for
  110  an option shall not exceed $100,000.
  111         Section 3. Present paragraphs (c) through (f) of subsection
  112  (4) of section 380.508, Florida Statutes, are redesignated as
  113  paragraphs (d) through (g), respectively, and a new paragraph
  114  (c) is added to that subsection, to read:
  115         380.508 Projects; development, review, and approval.—
  116         (4) Projects or activities which the trust undertakes,
  117  coordinates, or funds in any manner shall comply with the
  118  following guidelines:
  119         (c) The purpose of acceptable flood mitigation projects,
  120  which should serve to lower a community’s class rating under the
  121  National Flood Insurance Program Community Rating System, shall
  122  be:
  123         1. To acquire interests in lands designated as severe
  124  repetitive loss properties within coastal “V,” “VE,” and “V1-30”
  125  designated flood zones, as designated by the Federal Emergency
  126  Management Agency, which are suitable for enhancing beach and
  127  coastal access for the public, creating public parks, and
  128  providing flood control; or
  129         2. To provide technical and financial assistance to local
  130  governments to implement flood risk reduction policies and
  131  projects consistent with the coastal element of the local
  132  government comprehensive plan required under s. 163.3178, an
  133  approved local hazard mitigation plan, or an adaptation action
  134  plan.
  136  Project costs may include costs of providing parks, open space,
  137  public access sites, scenic easements, and other areas and
  138  facilities serving the public where such features are part of a
  139  project plan approved according to this part. In undertaking or
  140  coordinating projects or activities authorized by this part, the
  141  trust shall, when appropriate, use and promote the use of
  142  creative land acquisition methods, including the acquisition of
  143  less than fee interest through, among other methods,
  144  conservation easements, transfer of development rights, leases,
  145  and leaseback arrangements. The trust shall assist local
  146  governments in the use of sound alternative methods of financing
  147  for funding projects and activities authorized under this part.
  148  Any funds over and above eligible project costs, which remain
  149  after completion of a project approved according to this part,
  150  shall be transmitted to the state and deposited into the Florida
  151  Forever Trust Fund.
  152         Section 4. Paragraph (d) of subsection (3) of section
  153  380.510, Florida Statutes, is amended, and paragraph (f) is
  154  added to that subsection, to read:
  155         380.510 Conditions of grants and loans.—
  156         (3) In the case of a grant or loan for land acquisition,
  157  agreements shall provide all of the following:
  158         (d) If any essential term or condition of a grant or loan
  159  is violated, title to all interest in real property acquired
  160  with state funds shall be conveyed or revert to the Board of
  161  Trustees of the Internal Improvement Trust Fund. The trust shall
  162  treat such property in accordance with s. 380.508(4)(g) s.
  163  380.508(4)(f).
  164         (f) Land acquired for flood mitigation projects must be
  165  maintained strictly for flood mitigation purposes or
  166  conservation purposes. Conveyance of such lands to private
  167  entities must contain conditions, covenants, restrictions, or
  168  other provisions that ensure that the land will be maintained
  169  for flood mitigation or conservation purposes.
  171  Any deed or other instrument of conveyance whereby a nonprofit
  172  organization or local government acquires real property under
  173  this section shall set forth the interest of the state. The
  174  trust shall keep at least one copy of any such instrument and
  175  shall provide at least one copy to the Board of Trustees of the
  176  Internal Improvement Trust Fund.
  177         Section 5. Subsection (3) is added to section 472.0366,
  178  Florida Statutes, to read:
  179         472.0366 Elevation certificates; requirements for surveyors
  180  and mappers.—
  181         (3) The division may contract with a third party to store
  182  elevation certificates received pursuant to this section. The
  183  division may also contract with a third party to maintain a
  184  centralized database allowing the public to access elevation
  185  certificates and the data contained within the certificates.
  186         Section 6. Section 627.715, Florida Statutes, is amended to
  187  read:
  188         627.715 Flood insurance.—An authorized insurer may issue an
  189  insurance policy, contract, or endorsement providing personal
  190  lines residential coverage for the peril of flood on any
  191  structure or the contents of personal property contained
  192  therein, subject to this section. This section does not apply to
  193  commercial lines residential or commercial lines nonresidential
  194  coverage for the peril of flood. This section also does not
  195  apply to coverage for the peril of flood that is excess coverage
  196  over any other insurance covering the peril of flood. An insurer
  197  may issue flood insurance policies, contracts, or endorsements
  198  on a standard, preferred, customized, flexible, or supplemental
  199  basis.
  200         (1)(a)1. Standard flood insurance must cover only losses
  201  from the peril of flood, as defined in paragraph (b), equivalent
  202  to that provided under a standard flood insurance policy under
  203  the National Flood Insurance Program. Standard flood insurance
  204  issued under this section must provide the same coverage,
  205  including deductibles and adjustment of losses, as that provided
  206  under a standard flood insurance policy under the National Flood
  207  Insurance Program.
  208         2. Preferred flood insurance must include the same coverage
  209  as standard flood insurance but:
  210         a. Include, within the definition of “flood,” losses from
  211  water intrusion originating from outside the structure that are
  212  not otherwise covered under the definition of “flood” provided
  213  in paragraph (b).
  214         b. Include coverage for additional living expenses.
  215         c. Require that any loss under personal property or
  216  contents coverage that is repaired or replaced be adjusted only
  217  on the basis of replacement costs up to the policy limits.
  218         3. Customized flood insurance must include coverage that is
  219  broader than the coverage provided under standard flood
  220  insurance.
  221         4. Flexible flood insurance must cover losses from the
  222  peril of flood, as defined in paragraph (b), and may also
  223  include coverage for losses from water intrusion originating
  224  from outside the structure which is not otherwise covered by the
  225  definition of flood. Flexible flood insurance must include one
  226  or more of the following provisions:
  227         a. An agreement between the insurer and the insured that
  228  the flood coverage is in a specified amount, such as coverage
  229  that is limited to the total amount of each outstanding mortgage
  230  applicable to the covered property.
  231         b. A requirement for a deductible in an amount authorized
  232  under s. 627.701, including a deductible in an amount authorized
  233  for hurricanes.
  234         c. A requirement that flood loss to a dwelling be adjusted
  235  in accordance with s. 627.7011(3) or adjusted only on the basis
  236  of the actual cash value of the property.
  237         d. A restriction limiting flood coverage to the principal
  238  building defined in the policy.
  239         e. A provision including or excluding coverage for
  240  additional living expenses.
  241         f. A provision excluding coverage for personal property or
  242  contents as to the peril of flood.
  243         5. Supplemental flood insurance may provide coverage
  244  designed to supplement a flood policy obtained from the National
  245  Flood Insurance Program or from an insurer issuing standard or
  246  preferred flood insurance pursuant to this section. Supplemental
  247  flood insurance may provide, but need not be limited to,
  248  coverage for jewelry, art, deductibles, and additional living
  249  expenses.
  250         (b) “Flood” means a general and temporary condition of
  251  partial or complete inundation of two or more acres of normally
  252  dry land area or of two or more properties, at least one of
  253  which is the policyholder’s property, from:
  254         1. Overflow of inland or tidal waters;
  255         2. Unusual and rapid accumulation or runoff of surface
  256  waters from any source;
  257         3. Mudflow; or
  258         4. Collapse or subsidence of land along the shore of a lake
  259  or similar body of water as a result of erosion or undermining
  260  caused by waves or currents of water exceeding anticipated
  261  cyclical levels that result in a flood as defined in this
  262  paragraph.
  263         (2) Flood coverage deductibles and policy limits pursuant
  264  to this section must be prominently noted on the policy
  265  declarations page or face page.
  266         (3)(a) An insurer may establish and use flood coverage
  267  rates in accordance with the rate standards provided in s.
  268  627.062.
  269         (b) For flood coverage rates filed with the office before
  270  October 1, 2025 2019, the insurer may also establish and use
  271  such rates in accordance with the rates, rating schedules, or
  272  rating manuals filed by the insurer with the office which allow
  273  the insurer a reasonable rate of return on flood coverage
  274  written in this state. Flood coverage rates established pursuant
  275  to this paragraph are not subject to s. 627.062(2)(a) and (f).
  276  An insurer shall notify the office of any change to such rates
  277  within 30 days after the effective date of the change. The
  278  notice must include the name of the insurer and the average
  279  statewide percentage change in rates. Actuarial data with regard
  280  to such rates for flood coverage must be maintained by the
  281  insurer for 2 years after the effective date of such rate change
  282  and is subject to examination by the office. The office may
  283  require the insurer to incur the costs associated with an
  284  examination. Upon examination, the office, in accordance with
  285  generally accepted and reasonable actuarial techniques, shall
  286  consider the rate factors in s. 627.062(2)(b), (c), and (d), and
  287  the standards in s. 627.062(2)(e), to determine if the rate is
  288  excessive, inadequate, or unfairly discriminatory. If the office
  289  determines that a rate is excessive or unfairly discriminatory,
  290  the office shall require the insurer to provide appropriate
  291  credit to affected insureds or an appropriate refund to affected
  292  insureds who no longer receive coverage from the insurer.
  293         (4) A surplus lines agent may export a contract or
  294  endorsement providing flood coverage to an eligible surplus
  295  lines insurer without making a diligent effort to seek such
  296  coverage from three or more authorized insurers under s.
  297  626.916(1)(a). This subsection expires July 1, 2025 2017.
  298         (5) In addition to any other applicable requirements, an
  299  insurer providing flood coverage in this state must:
  300         (a) Notify the office at least 30 days before writing flood
  301  insurance in this state; and
  302         (b) File a plan of operation and financial projections or
  303  revisions to such plan, as applicable, with the office.
  304         (6) Citizens Property Insurance Corporation may not provide
  305  insurance for the peril of flood.
  306         (7) The Florida Hurricane Catastrophe Fund may not provide
  307  reimbursement for losses proximately caused by the peril of
  308  flood, including losses that occur during a covered event as
  309  defined in s. 215.555(2)(b).
  310         (8) An agent must, upon receiving an application for flood
  311  coverage from an authorized or surplus lines insurer for a
  312  property receiving flood insurance under the National Flood
  313  Insurance Program, obtain an acknowledgment signed by the
  314  applicant before placing the coverage with the authorized or
  315  surplus lines insurer. The acknowledgment must notify the
  316  applicant that, if the applicant discontinues coverage under the
  317  National Flood Insurance Program which is provided at a
  318  subsidized rate, the full risk rate for flood insurance may
  319  apply to the property if the applicant later seeks to reinstate
  320  coverage under the program.
  321         (9) With respect to the regulation of flood coverage
  322  written in this state by authorized insurers, this section
  323  supersedes any other provision in the Florida Insurance Code in
  324  the event of a conflict.
  325         (10) If federal law or rule requires a certification by a
  326  state insurance regulatory official as a condition of qualifying
  327  for private flood insurance or disaster assistance, the
  328  Commissioner of Insurance Regulation may provide the
  329  certification, and such certification is not subject to review
  330  under chapter 120.
  331         (11)(a) An authorized insurer offering flood insurance may
  332  request the office to certify that a policy, contract, or
  333  endorsement provides coverage for the peril of flood which
  334  equals or exceeds the flood coverage offered by the National
  335  Flood Insurance Program. To be eligible for certification, such
  336  policy, contract, or endorsement must contain a provision
  337  stating that it meets the private flood insurance requirements
  338  specified in 42 U.S.C. s. 4012a(b) and may not contain any
  339  provision that is not in compliance with 42 U.S.C. s. 4012a(b).
  340         (b) The authorized insurer or its agent may reference or
  341  include a certification under paragraph (a) in advertising or
  342  communications with an agent, a lending institution, an insured,
  343  or a potential insured only for a policy, contract, or
  344  endorsement that is certified under this subsection. The
  345  authorized insurer may include a statement that notifies an
  346  insured of the certification on the declarations page or other
  347  policy documentation related to flood coverage certified under
  348  this subsection.
  349         (c) An insurer or agent who knowingly misrepresents that a
  350  flood policy, contract, or endorsement is certified under this
  351  subsection commits an unfair or deceptive act under s. 626.9541.
  352         Section 7. This act shall take effect July 1, 2016.