Florida Senate - 2016 SB 584
By Senator Brandes
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
42 252.64 Local government flood hazard risk reduction
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
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
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
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
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)
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
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
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
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
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
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.
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.