Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. SB 1684
       
       
       
       
       
       
                                Barcode 394588                          
       
                              LEGISLATIVE ACTION                        
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       The Committee on Military Affairs, Space, and Domestic Security
       (Bennett) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 215.559, Florida Statutes, is amended to
    6  read:
    7         215.559 Hurricane Loss Mitigation Program.—A Hurricane Loss
    8  Mitigation Program is established in the Division of Emergency
    9  Management.
   10         (1) The purpose of the program is to:
   11         (a) Reduce the vulnerability of and damage to residential
   12  structures from wind, wind-driven rain, and wind-driven debris
   13  during high-wind events through the implementation of a
   14  residential mitigation retrofit program;
   15         (b) Ensure that residential mitigation activities
   16  prioritize wind-borne debris regions throughout the state;
   17         (c) Ensure that all mitigation projects will be reviewed,
   18  inspected, and designed by technical and environmental
   19  professionals;
   20         (d) Ensure that all mitigation projects be cost-effective
   21  and provide a positive return on investment;
   22         (e) Ensure that all products and systems are installed in
   23  accordance with the Florida Building Code and manufacturer’s
   24  installation specifications and have a product approval number
   25  from the building code;
   26         (f) Ensure that all mitigation activities follow recognized
   27  best practices for residential wind mitigation and provide
   28  increased sustainability;
   29         (g) Ensure that all mitigation activities are tracked and
   30  analyzed after the event in order to measure the effectiveness
   31  of the mitigation program. A database must be maintained to
   32  capture all necessary information;
   33         (h) Ensure that participation by homeowners is voluntary.
   34         (2) The program shall:
   35         (a) Provide funding and supervision for the public
   36  hurricane loss projection model established under s. 627.06281;
   37         (b) Establish a statewide program for inspection standards
   38  and data collection related to hurricane loss;
   39         (c) Further the science of hurricane mitigation by working
   40  with all types of businesses, scientists, and academics in order
   41  to further the availability and measure the effectiveness of new
   42  ways to mitigate hurricane damage to homes;
   43         (d) Be a state resource on the assessment of potential
   44  costs of hurricane damage and the results of mitigation; and
   45         (e) Determine appropriate wind mitigation standards based
   46  on hurricane loss models and the applicability and use of wind
   47  mitigation discounts for homeowners’ insurance.
   48         (3)(1) The Legislature shall annually appropriate $10
   49  million of the moneys authorized for appropriation under s.
   50  215.555(7)(c) from the Florida Hurricane Catastrophe Fund to the
   51  division for the purposes set forth in this section.
   52         (a) Of that the amount:
   53         1.(a) Seven million dollars in funds shall be used for
   54  programs to improve the wind resistance of residences and mobile
   55  homes, including loans, subsidies, grants, demonstration
   56  projects, and direct assistance; educating persons concerning
   57  the Florida Building Code cooperative programs with local
   58  governments and the Federal Government; and other efforts to
   59  prevent or reduce losses or reduce the cost of rebuilding after
   60  a disaster. Of that amount:
   61         a. Forty percent shall be used to establish a statewide
   62  program for inspection standards and data collection related to
   63  hurricane and windstorm loss and to fund the public hurricane
   64  loss projection model.
   65         b. Ten percent shall be allocated to the Florida
   66  International University center dedicated to hurricane research.
   67  The center shall develop a preliminary work plan to eliminate
   68  the state and local barriers to upgrading existing mobile homes
   69  and communities, research and develop a program for the
   70  recycling of existing older mobile homes, and support programs
   71  of research and development relating to hurricane loss reduction
   72  devices and techniques for site-built residences. The center’s
   73  preliminary plan shall be reviewed by the advisory council
   74  established under subsection (4), which shall provide comments
   75  and recommendations to the center with respect to the plan. The
   76  State University System also shall consult with the division and
   77  assist the division with the report required under subsection
   78  (5).
   79         2.(b) Three million dollars in funds shall be used to
   80  retrofit existing facilities used as public hurricane shelters.
   81  Each year the division shall prioritize the use of these funds
   82  for projects included in the annual report of the Shelter
   83  Retrofit Report prepared in accordance with s. 252.385(3). The
   84  division must give funding priority to projects in regional
   85  planning council regions that have shelter deficits and to
   86  projects that maximize the use of state funds.
   87         (2)(a) Forty percent of the total appropriation in
   88  paragraph (1)(a) shall be used to inspect and improve tie-downs
   89  for mobile homes.
   90         (b)1. The Manufactured Housing and Mobile Home Mitigation
   91  and Enhancement Program is established. The program shall
   92  require the mitigation of damage to or the enhancement of homes
   93  for the areas of concern raised by the Department of Highway
   94  Safety and Motor Vehicles in the 2004-2005 Hurricane Reports on
   95  the effects of the 2004 and 2005 hurricanes on manufactured and
   96  mobile homes in this state. The mitigation or enhancement must
   97  include, but need not be limited to, problems associated with
   98  weakened trusses, studs, and other structural components caused
   99  by wood rot or termite damage; site-built additions; or tie-down
  100  systems and may also address any other issues deemed appropriate
  101  by Tallahassee Community College, the Federation of Manufactured
  102  Home Owners of Florida, Inc., the Florida Manufactured Housing
  103  Association, and the Department of Highway Safety and Motor
  104  Vehicles. The program shall include an education and outreach
  105  component to ensure that owners of manufactured and mobile homes
  106  are aware of the benefits of participation.
  107         2. The program shall be a grant program that ensures that
  108  entire manufactured home communities and mobile home parks may
  109  be improved wherever practicable. The moneys appropriated for
  110  this program shall be distributed directly to Tallahassee
  111  Community College for the uses set forth under this subsection.
  112         3. Upon evidence of completion of the program, the Citizens
  113  Property Insurance Corporation shall grant, on a pro rata basis,
  114  actuarially reasonable discounts, credits, or other rate
  115  differentials or appropriate reductions in deductibles for the
  116  properties of owners of manufactured homes or mobile homes on
  117  which fixtures or construction techniques that have been
  118  demonstrated to reduce the amount of loss in a windstorm have
  119  been installed or implemented. The discount on the premium must
  120  be applied to subsequent renewal premium amounts. Premiums of
  121  the Citizens Property Insurance Corporation must reflect the
  122  location of the home and the fact that the home has been
  123  installed in compliance with building codes adopted after
  124  Hurricane Andrew. Rates resulting from the completion of the
  125  Manufactured Housing and Mobile Home Mitigation and Enhancement
  126  Program are not considered competitive rates for the purposes of
  127  s. 627.351(6)(d)1. and 2.
  128         4. On or before January 1 of each year, Tallahassee
  129  Community College shall provide a report of activities under
  130  this subsection to the Governor, the President of the Senate,
  131  and the Speaker of the House of Representatives. The report must
  132  set forth the number of homes that have taken advantage of the
  133  program, the types of enhancements and improvements made to the
  134  manufactured or mobile homes and attachments to such homes, and
  135  whether there has been an increase in availability of insurance
  136  products to owners of manufactured or mobile homes.
  137  
  138  Tallahassee Community College shall develop the programs set
  139  forth in this subsection in consultation with the Federation of
  140  Manufactured Home Owners of Florida, Inc., the Florida
  141  Manufactured Housing Association, and the Department of Highway
  142  Safety and Motor Vehicles. The moneys appropriated for the
  143  programs set forth in this subsection shall be distributed
  144  directly to Tallahassee Community College to be used as set
  145  forth in this subsection.
  146         (3) Of moneys provided to the division in paragraph (1)(a),
  147  10 percent shall be allocated to the Florida International
  148  University center dedicated to hurricane research. The center
  149  shall develop a preliminary work plan approved by the advisory
  150  council set forth in subsection (4) to eliminate the state and
  151  local barriers to upgrading existing mobile homes and
  152  communities, research and develop a program for the recycling of
  153  existing older mobile homes, and support programs of research
  154  and development relating to hurricane loss reduction devices and
  155  techniques for site-built residences. The State University
  156  System also shall consult with the division and assist the
  157  division with the report required under subsection (6).
  158         (4) Except for the programs set forth in subsection (3),
  159  the division shall develop the programs set forth in this
  160  section in consultation with an advisory council consisting of a
  161  representative designated by the Chief Financial Officer, a
  162  representative designated by the Florida Home Builders
  163  Association, a representative designated by the Florida
  164  Insurance Council, a representative designated by the Federation
  165  of Manufactured Home Owners, a representative designated by the
  166  Florida Association of Counties, a representative designated by
  167  the Florida Manufactured Housing Association, and a
  168  representative designated by the Florida Building Commission.
  169         (b)(5) Moneys provided to the division under this section
  170  are intended to supplement, not supplant, the division’s other
  171  funding sources.
  172         (4) An advisory council shall be established to provide
  173  advice and assistance regarding the administration of the
  174  program. The advisory council shall consist of:
  175         (a) The director of the Office of Insurance Regulation, or
  176  his or her designee, who may not serve as chair of the
  177  committee;
  178         (b) The director of the Division of Emergency Management,
  179  or his or her designee;
  180         (c) The Insurance Consumer Advocate, or his or her
  181  designee;
  182         (d) Two representatives of authorized homeowners’ insurers,
  183  one of whom represents insurers with less than $25 million in
  184  surplus and is appointed by the President of the Senate, and one
  185  of whom represents insurers with more than $25 million in
  186  surplus and is appointed by the Speaker of the House of
  187  Representatives;
  188         (e) Two scientists, one of whom has experience and training
  189  in the sciences related to windstorm loss mitigation or the
  190  Florida Building Code and is appointed by the President of the
  191  Senate, and one of whom has a background in engineering and is
  192  appointed by the Speaker of the House of Representatives;
  193         (f) Two legislators, one appointed by the President of the
  194  Senate, and one appointed by the Speaker of the House of
  195  Representatives;
  196         (g) Two representatives of the reinsurance industry, one
  197  whom is a representative of a direct reinsurer and is appointed
  198  by the President of the Senate, and one of whom is a
  199  representative of a reinsurance intermediary and is appointed by
  200  the Speaker of the House of Representatives;
  201         (h) One scientist who has a background in modeling and is
  202  appointed by the division; and
  203         (i) One representative from the windstorm mitigation
  204  inspection industry who is appointed jointly by the President of
  205  the Senate and the Speaker of the House of Representatives.
  206         (5)(6) On January 1st of each year, the division shall
  207  provide a full report and accounting of activities under this
  208  section and an evaluation of such activities to the Speaker of
  209  the House of Representatives, the President of the Senate, and
  210  the Majority and Minority Leaders of the House of
  211  Representatives and the Senate. Upon completion of the report,
  212  the division shall deliver the report to the Office of Insurance
  213  Regulation. The Office of Insurance Regulation shall review the
  214  report and shall make such recommendations available to the
  215  insurance industry as the Office of Insurance Regulation deems
  216  appropriate. These recommendations may be used by insurers for
  217  potential discounts or rebates pursuant to s. 627.0629. The
  218  Office of Insurance Regulation shall make such recommendations
  219  within 1 year after receiving the report.
  220         (6)(7) This section expires is repealed June 30, 2021.
  221         Section 2. Section 627.711, Florida Statutes, is amended to
  222  read:
  223         627.711 Notice of premium discounts for hurricane loss
  224  mitigation; uniform mitigation verification inspection form.—
  225         (1) Using a form prescribed by the Florida Building
  226  Commission, in consultation with the Division of Emergency
  227  Management Office of Insurance Regulation, the insurer shall
  228  clearly notify the applicant or policyholder of any personal
  229  lines residential property insurance policy, at the time of the
  230  issuance of the policy and at each renewal, of the availability
  231  and the range of each premium discount, credit, other rate
  232  differential, or reduction in deductibles, and combinations
  233  thereof of discounts, credits, rate differentials, or reductions
  234  in deductibles, for properties on which fixtures or construction
  235  techniques demonstrated to reduce the amount of loss in a
  236  windstorm can be or have been installed or implemented. The
  237  prescribed form must shall describe generally what actions the
  238  policyholders may be able to take to reduce their windstorm
  239  premium. The prescribed form and a list of such ranges approved
  240  by the Florida Building Commission, in consultation with the
  241  office, for each insurer licensed in the state and providing
  242  such discounts, credits, other rate differentials, or reductions
  243  in deductibles for properties described in this subsection shall
  244  be made available for electronic viewing and downloading
  245  download from the Department of Financial Services’ or the
  246  Office of Insurance Regulation’s Internet website. The Financial
  247  Services Commission may adopt rules to implement this
  248  subsection.
  249         (2)(a) The Florida Building Financial Services Commission,
  250  in consultation with the Division of Emergency Management, shall
  251  develop by rule a uniform mitigation verification inspection
  252  form to that shall be used by all insurers when submitted by
  253  policyholders for the purpose of factoring discounts for wind
  254  insurance. In developing the form, the Florida Building
  255  Commission, together with the Division of Emergency Management,
  256  shall seek input from insurance, construction, and home
  257  inspector and building code representatives. Further, The
  258  commission shall also provide guidance as to the length of time
  259  the inspection results are valid.
  260         (a) An insurer shall accept as valid a uniform mitigation
  261  verification form signed by the following authorized mitigation
  262  inspectors who have completed at least 3 hours of hurricane
  263  mitigation training approved by the Construction Industry
  264  Licensing Board which includes hurricane mitigation techniques
  265  and compliance with the uniform mitigation verification form and
  266  completion of a proficiency examination:
  267         1. A home inspector licensed under s. 468.8314 who has
  268  completed at least 3 hours of hurricane mitigation training
  269  approved by the Construction Industry Licensing Board which
  270  includes hurricane mitigation techniques and compliance with the
  271  uniform mitigation verification form and completion of a
  272  proficiency exam;
  273         2. A building code inspector certified under s. 468.607;
  274         3. A general, building, or residential contractor licensed
  275  under s. 489.111;
  276         4. A professional engineer licensed under s. 471.015;
  277         5. A professional architect licensed under s. 481.213; or
  278         6. Any other individual or entity recognized by the insurer
  279  as possessing the necessary qualifications to properly complete
  280  a uniform mitigation verification form.
  281         (b) An insurer may, but is not required to, accept a form
  282  from any other person possessing qualifications and experience
  283  acceptable to the insurer.
  284         (3) A person who is authorized to sign a mitigation
  285  verification form must inspect the structures referenced by the
  286  form personally, not through employees or other persons, and
  287  must certify or attest to personal inspection of the structures
  288  referenced by the form. However, licensees under s. 471.015 or
  289  s. 489.111 may authorize a direct employee, who is not an
  290  independent contractor, and who possesses the requisite skill,
  291  knowledge and experience, to conduct a mitigation verification
  292  inspection. Insurers shall have the right to request and obtain
  293  information from the authorized mitigation inspector under s.
  294  471.015 or s. 489.111, regarding any authorized employee’s
  295  qualifications prior to accepting a mitigation verification form
  296  performed by an employee that is not licensed under s. 471.015
  297  or s. 489.111.
  298         (4) An authorized mitigation inspector that signs a uniform
  299  mitigation form, and a direct employee authorized to conduct
  300  mitigation verification inspections under paragraph (3), may not
  301  commit misconduct in performing hurricane mitigation inspections
  302  or in completing a uniform mitigation form that causes financial
  303  harm to a customer or their insurer; or that jeopardizes a
  304  customer’s health and safety. Misconduct occurs when an
  305  authorized mitigation inspector signs a uniform mitigation
  306  verification form that:
  307         (a) Falsely indicates that he or she personally inspected
  308  the structures referenced by the form;
  309         (b) Falsely indicates the existence of a feature that which
  310  entitles an insured to a mitigation discount that which the
  311  inspector knows does not exist or did not personally inspect;
  312         (c) Contains erroneous information due to the gross
  313  negligence of the inspector; or
  314         (d) Contains a pattern of demonstrably false information
  315  regarding the existence of mitigation features that could give
  316  an insured a false evaluation of the ability of the structure to
  317  withstand major damage from a hurricane endangering the safety
  318  of the insured’s life and property.
  319         (5) The licensing board of an authorized mitigation
  320  inspector that violates subsection (4) may commence disciplinary
  321  proceedings and impose administrative fines and other sanctions
  322  authorized under the authorized mitigation inspector’s licensing
  323  act. Authorized mitigation inspectors licensed under s. 471.015
  324  or s. 489.111 shall be directly liable for the acts of employees
  325  that violate subsection (4) as if the authorized mitigation
  326  inspector personally performed the inspection.
  327         (6) An insurer, person, or other entity that obtains
  328  evidence of fraud or evidence that an authorized mitigation
  329  inspector or an employee authorized to conduct mitigation
  330  verification inspections under paragraph (3) has made false
  331  statements in the completion of a mitigation inspection form
  332  shall file a report with the Division of Insurance Fraud, along
  333  with all of the evidence in its possession which that supports
  334  the allegation of fraud or falsity. An insurer, person, or other
  335  entity making the report is shall be immune from liability, in
  336  accordance with s. 626.989(4), for any statements made in the
  337  report, during the investigation, or in connection with the
  338  report. The Division of Insurance Fraud shall issue an
  339  investigative report if it finds that probable cause exists to
  340  believe that the authorized mitigation inspector, or an employee
  341  authorized to conduct mitigation verification inspections under
  342  paragraph (3), made intentionally false or fraudulent statements
  343  in the inspection form. Upon conclusion of the investigation and
  344  a finding of probable cause that a violation has occurred, the
  345  Division of Insurance Fraud shall send a copy of the
  346  investigative report to the office and a copy to the agency
  347  responsible for the professional licensure of the authorized
  348  mitigation inspector, whether or not a prosecutor takes action
  349  based upon the report.
  350         (7) An individual or entity who knowingly provides or
  351  utters a false or fraudulent mitigation verification form with
  352  the intent to obtain or receive a discount on an insurance
  353  premium to which the individual or entity is not entitled
  354  commits a misdemeanor of the first degree, punishable as
  355  provided in s. 775.082 or s. 775.083.
  356         (8) At its expense, the insurer may require that a uniform
  357  mitigation verification form provided by a policyholder, a
  358  policyholder’s agent, or an authorized mitigation inspector or
  359  inspection company be independently verified by an inspector, an
  360  inspection company, or an independent third-party quality
  361  assurance provider that which possesses a quality assurance
  362  program before accepting the uniform mitigation verification
  363  form as valid.
  364         Section 3. This act shall take effect July 1, 2012.
  365  
  366  ================= T I T L E  A M E N D M E N T ================
  367         And the title is amended as follows:
  368         Delete everything before the enacting clause
  369  and insert:
  370                        A bill to be entitled                      
  371         An act relating to the Hurricane Loss Mitigation
  372         Program; amending s. 215.559, F.S.; revising
  373         provisions relating to the program; providing purposes
  374         and program duties including funding and supervising
  375         the public hurricane loss projection model; providing
  376         additional specification as to how moneys appropriated
  377         to the Division of Emergency Management for the
  378         program are spent; revising the membership of the
  379         program’s advisory council; deleting the Manufactured
  380         Housing and Mobile Home Mitigation and Enhancement
  381         Program; amending s. 627.711, F.S.; requiring the form
  382         used by insurers to provide notice of premium
  383         discounts and the uniform mitigation verification
  384         inspection form to be prescribed by the Florida
  385         Building Commission, in consultation with the Division
  386         of Emergency Management; revising who must conduct
  387         such mitigation verification inspections and sign such
  388         form; providing an effective date.