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.