HB 1537

1
A bill to be entitled
2An act relating to hurricane damage mitigation programs;
3amending s. 215.5586, F.S.; transferring the Florida
4Comprehensive Hurricane Damage Mitigation Program from the
5Department of Financial Services to the Department of
6Community Affairs; redesignating the program as the
7Florida Comprehensive Hurricane Damage Mitigation Grant
8Program; providing eligibility limitations; expanding
9duties of the advisory council; creating s. 215.5587,
10F.S.; establishing the Florida Comprehensive Hurricane
11Damage Mitigation Sales Tax Exemption or Rebate Program in
12the Department of Community Affairs; providing program
13requirements; providing for requirements for wind
14certification and hurricane mitigation inspections;
15providing for an exemption from or a rebate of sales taxes
16on certain tangible personal property used for certain
17purposes; providing eligibility requirements; providing
18limitations; providing for public education and consumer
19awareness; requiring the department to seek federal
20funding; requiring the department to adopt rules;
21requiring the department to coordinate with the Department
22of Revenue for exemption or rebate purposes; requiring the
23department to develop and maintain a list of private
24hurricane damage mitigation contractors; amending s.
25212.08, F.S.; providing an additional exemption from the
26sales and use tax for certain tangible personal property
27used in hurricane damage mitigation retrofitting projects;
28providing an exception; providing an appropriation;
29providing an effective date.
30
31Be It Enacted by the Legislature of the State of Florida:
32
33     Section 1.  Section 215.5586, Florida Statutes, as amended
34by section 4 of chapter 2007-1, Laws of Florida, is amended to
35read:
36     215.5586  Florida Comprehensive Hurricane Damage Mitigation
37Grant Program.--There is established within the Department of
38Community Affairs Financial Services the Florida Comprehensive
39Hurricane Damage Mitigation Grant Program. This section does not
40create an entitlement for property owners or obligate the state
41in any way to fund the inspection or retrofitting of residential
42property in this state. Implementation of this program is
43subject to annual legislative appropriations. The program shall
44be administered by an individual with prior executive experience
45in the private sector in the areas of insurance, business, or
46construction. The program shall develop and implement a
47comprehensive and coordinated approach for hurricane damage
48mitigation that shall include the following:
49     (1)  WIND CERTIFICATION AND HURRICANE MITIGATION
50INSPECTIONS.--
51     (a)  Free home-retrofit inspections of site-built,
52residential property, including single-family, two-family,
53three-family, or four-family residential units, shall be offered
54to determine what mitigation measures are needed and what
55improvements to existing residential properties are needed to
56reduce the property's vulnerability to hurricane damage. The
57department of Financial Services shall establish a request for
58proposals to solicit proposals from wind certification entities
59to provide at no cost to homeowners wind certification and
60hurricane mitigation inspections. The inspections provided to
61homeowners, at a minimum, must include:
62     1.  A home inspection and report that summarizes the
63results and identifies corrective actions a homeowner may take
64to mitigate hurricane damage.
65     2.  A range of cost estimates regarding the mitigation
66features.
67     3.  Insurer-specific information regarding premium
68discounts correlated to recommended mitigation features
69identified by the inspection.
70     4.  A hurricane resistance rating scale specifying the
71home's current as well as projected wind resistance
72capabilities.
73     (b)  To qualify for selection by the department as a
74provider of wind certification and hurricane mitigation
75inspections, the entity shall, at a minimum:
76     1.  Use wind certification and hurricane mitigation
77inspectors who:
78     a.  Have prior experience in residential construction or
79inspection and have received specialized training in hurricane
80mitigation procedures.
81     b.  Have undergone drug testing and level 2 background
82checks pursuant to s. 435.04. The department is authorized to
83conduct criminal record checks of inspectors. Inspectors must
84submit a set of the fingerprints to the department for state and
85national criminal history checks and must pay the fingerprint
86processing fee set forth in s. 624.501. The fingerprints shall
87be sent by the department to the Department of Law Enforcement
88and forwarded to the Federal Bureau of Investigation for
89processing. The results shall be returned to the department for
90screening. The fingerprints shall be taken by a law enforcement
91agency, designated examination center, or other department-
92approved entity. Wind certification and hurricane mitigation
93inspectors participating in the program on the effective date of
94this act shall have until June 1, 2007, to meet the requirements
95for a criminal record check.
96     c.  Have been certified, in a manner satisfactory to the
97department, to conduct the inspections.
98     2.  Provide a quality assurance program including a
99reinspection component.
100     (2)  GRANTS.--Financial grants shall be used to encourage
101single-family, site-built, owner-occupied, residential property
102owners to retrofit their properties to make them less vulnerable
103to hurricane damage.
104     (a)  To be eligible for a grant, a residential property
105must:
106     1.  Have been granted a homestead exemption under chapter
107196.
108     2.  Be a dwelling with an insured value of $500,000 or
109less. Homeowners who are low-income persons, as defined in s.
110420.0004(10), are exempt from this requirement.
111     3.  Have undergone an acceptable wind certification and
112hurricane mitigation inspection, if the property is an existing
113structure.
114
115A residential property which is part of a multifamily
116residential unit may receive a grant only if all homeowners
117participate and the total number of units does not exceed four.
118     (b)  All grants must be matched on a dollar-for-dollar
119basis for a total of $10,000 for the mitigation project with the
120state's contribution not to exceed $5,000.
121     (c)  The program shall create a process in which mitigation
122contractors agree to participate and seek reimbursement from the
123state and homeowners select from a list of participating
124contractors. All mitigation must be based upon the securing of
125all required local permits and inspections. Mitigation projects
126are subject to random reinspection of up to at least 10 percent
127of all projects.
128     (d)  Matching fund grants shall also be made available to
129local governments and nonprofit entities for projects that will
130reduce hurricane damage to single-family, site-built, owner-
131occupied, residential property.
132     (e)  Grants may be used for the following improvements:
133     1.  Roof deck attachment.
134     2.  Secondary water barrier.
135     3.  Roof covering.
136     4.  Brace gable ends.
137     5.  Reinforce roof-to-wall connections.
138     6.  Opening protection.
139     7.  Exterior doors, including garage doors.
140     (f)  Grants may be used on a previously inspected existing
141structure or on a rebuild. A rebuild is defined as a site-built,
142single-family dwelling under construction to replace a home that
143was destroyed or significantly damaged by a hurricane and deemed
144unlivable by a regulatory authority. The homeowner must have had
145a homestead exemption prior to the hurricane and maintained the
146homestead exemption.
147     (g)  Low-income homeowners, as defined in s. 420.0004(10),
148who otherwise meet the requirements of paragraphs (a), (c), (e),
149and (f) are eligible for a grant of up to $5,000 and are not
150required to provide a matching amount to receive the grant.
151Additionally, for low-income homeowners, grant funding may be
152used for repair to existing structures leading to any of the
153mitigation improvements provided in paragraph (e), limited to 20
154percent of the grant value.
155     (h)  Any person receiving a grant under this section is not
156eligible to receive a sales tax rebate under s. 215.5587.
157     (3)  EDUCATION AND CONSUMER AWARENESS.--Multimedia public
158education, awareness, and advertising efforts designed to
159specifically address mitigation techniques shall be employed, as
160well as a component to support ongoing consumer resources and
161referral services.
162     (4)  ADVISORY COUNCIL.--There is created an advisory
163council to provide advice and assistance to the program
164administrator with regard to his or her administration of the
165program and the tax rebate program under s. 215.5587. The
166advisory council shall consist of:
167     (a)  A representative of lending institutions, selected by
168the Financial Services Commission from a list of at least three
169persons recommended by the Florida Bankers Association.
170     (b)  A representative of residential property insurers,
171selected by the Financial Services Commission from a list of at
172least three persons recommended by the Florida Insurance
173Council.
174     (c)  A representative of home builders, selected by the
175Financial Services Commission from a list of at least three
176persons recommended by the Florida Home Builders Association.
177     (d)  A faculty member of a state university, selected by
178the Financial Services Commission, who is an expert in
179hurricane-resistant construction methodologies and materials.
180     (e)  Two members of the House of Representatives, selected
181by the Speaker of the House of Representatives.
182     (f)  Two members of the Senate, selected by the President
183of the Senate.
184     (g)  The Chief Executive Officer of the Federal Alliance
185for Safe Homes, Inc., or his or her designee.
186     (h)  The senior officer of the Florida Hurricane
187Catastrophe Fund.
188     (i)  The executive director of Citizens Property Insurance
189Corporation.
190     (j)  The director of the Division of Emergency Management
191of the department of Community Affairs.
192
193Members appointed under paragraphs (a)-(d) shall serve at the
194pleasure of the Secretary of Community Affairs Financial
195Services Commission. Members appointed under paragraphs (e) and
196(f) shall serve at the pleasure of the appointing officer. All
197other members shall serve voting ex officio. Members of the
198advisory council shall serve without compensation but may
199receive reimbursement as provided in s. 112.061 for per diem and
200travel expenses incurred in the performance of their official
201duties. Vacancies on the advisory council under paragraphs (a)-
202(d) shall be filled by the Secretary of Community Affairs in the
203same manner as original appointments to the council were made.
204     (5)  FEDERAL FUNDING.--The department shall use its best
205efforts to obtain grants or funds from the Federal Government to
206supplement the financial resources of the program.
207     (6)  RULES.--The department of Financial Services shall
208adopt rules pursuant to ss. 120.536(1) and 120.54 governing the
209Florida Comprehensive Hurricane Damage Mitigation Grant Program.
210The department shall also adopt rules establishing priorities
211for grants provided under this section based on objective
212criteria that gives priority to reducing the state's probable
213maximum loss from hurricanes. However, pursuant to this overall
214goal, the department may further establish priorities based on
215the insured value of the dwelling, whether or not the dwelling
216is insured by Citizens Property Insurance Corporation and
217whether or not the area under consideration has sufficient
218resources and the ability to perform the retrofitting required.
219     (7)  CONTRACTS WITH NOT-FOR-PROFIT CORPORATIONS.--The
220department may of Financial Services is authorized to contract
221with not-for-profit corporations to conduct all or portions of
222the program and to increase the awareness of the benefits of
223mitigation among homeowners in this state. The department shall
224consider the not-for-profit corporation's ability to raise funds
225from the private sector to provide for mitigation grants, as
226well as administrative capabilities for conducting other
227business related to the program.
228     (8)  WIND CERTIFICATION AND HURRICANE MITIGATION INSPECTOR
229LIST.--The department shall develop and maintain as a public
230record a current list of wind certification and hurricane
231mitigation inspectors authorized to conduct wind certification
232and hurricane mitigation inspections pursuant to this section.
233     Section 2.  Section 215.5587, Florida Statutes, is created
234to read:
235     215.5587  Florida Comprehensive Hurricane Damage Mitigation
236Sales Tax Exemption or Rebate Program.--There is established
237within the Department of Community Affairs the Florida
238Comprehensive Hurricane Damage Mitigation Sales Tax Exemption or
239Rebate Program. The program shall be implemented by private
240mitigation contractors with prior experience in the private
241sector in the area of insurance, business, or construction. The
242program shall develop and implement a comprehensive and
243coordinated approach for hurricane damage mitigation that shall
244include the following:
245     (1)  WIND CERTIFICATION AND HURRICANE MITIGATION
246INSPECTIONS.--
247     (a)  Free retrofit inspections of any property shall be
248offered to determine what mitigation measures are needed and
249what improvements to existing properties are needed to reduce
250the property's vulnerability to hurricane damage. The department
251shall establish a request for proposals to solicit proposals
252from wind certification entities to provide wind certification
253and hurricane mitigation inspections at no cost to property
254owners. The inspections provided to property owners, at a
255minimum, must include:
256     1.  A property inspection and report that summarizes the
257results and identifies corrective actions a property owner may
258take to mitigate hurricane damage.
259     2.  A range of cost estimates regarding the mitigation
260features.
261     3.  Insurer-specific information regarding premium
262discounts correlated to recommended mitigation features
263identified by the inspection.
264     4.  A hurricane resistance rating scale specifying the
265property's current as well as projected wind resistance
266capabilities.
267     (b)  To qualify for selection by the department as a
268provider of wind certification and hurricane mitigation
269inspections, an entity shall, at a minimum:
270     1.  Use wind certification and hurricane mitigation
271inspectors who:
272     a.  Have prior experience in construction or inspection and
273have received specialized training in hurricane mitigation
274procedures.
275     b.  Have undergone drug testing and level 2 background
276screening pursuant to s. 435.04. The department is authorized to
277conduct criminal record checks of inspectors. Inspectors must
278submit a set of the fingerprints to the department for state and
279national criminal history checks and must pay the fingerprint
280processing fee set forth in s. 624.501. The fingerprints shall
281be sent by the department to the Department of Law Enforcement
282and forwarded to the Federal Bureau of Investigation for
283processing. The results shall be returned to the department for
284screening. The fingerprints shall be taken by a law enforcement
285agency, designated examination center, or other department-
286approved entity. Wind certification and hurricane mitigation
287inspectors participating in the program on the effective date of
288this act shall have until June 1, 2008, to meet the requirements
289for a criminal record check.
290     c.  Have been certified, in a manner satisfactory to the
291department, to conduct the inspections.
292     2.  Provide a quality assurance program, including a
293reinspection component.
294     (2)  SALES TAX EXEMPTION OR REBATE.--Tangible personal
295property purchased by a private hurricane damage mitigation
296contractor for use in retrofitting property to mitigate
297hurricane damage shall be exempt from the tax imposed under
298chapter 212 or shall be subject to a rebate from the Department
299of Revenue to the owner of such property, as provided in this
300section, to encourage property owners to retrofit their
301properties to make the properties less vulnerable to hurricane
302damage. In order to purchase tangible personal property exempt
303from the tax imposed by chapter 212, a contractor shall possess
304a valid exemption certificate as provided in chapter 212.
305     (a)1.  To be eligible for a rebate, a property that is an
306existing structure must have undergone an acceptable wind
307certification and hurricane mitigation inspection.
308     2.a.  A residential property that is part of a multifamily
309residential unit may receive a rebate only if all homeowners
310participate and the total number of units does not exceed four.
311     b.  The owners of a commercial property that consists of
312more than one unit may receive a rebate only if all business
313owners of the property participate.
314     (b)  The total amount of the exemption or rebate for an
315individual property shall not exceed $5,000.
316     (c)  The program shall create a process in which private
317mitigation contractors agree to provide wind certification and
318hurricane damage inspections and contract with property owners
319to retrofit properties to mitigate damage from hurricanes. All
320mitigation must be based upon the securing of all required local
321permits and inspections. Mitigation projects are subject to
322random reinspection of at least 10 percent of all projects.
323     (d)  Sales tax exemptions or rebates may be claimed for the
324following improvements:
325     1.  Roof deck attachment.
326     2.  Secondary water barrier.
327     3.  Roof covering.
328     4.  Brace gable ends.
329     5.  Reinforce roof-to-wall connections.
330     6.  Opening protection.
331     7.  Exterior doors, including garage doors.
332     (e)  Sales tax exemptions or rebates may be claimed on a
333previously inspected existing structure or on a rebuild. The
334term "rebuild" means a site-built facility under construction to
335replace a structure that was destroyed or significantly damaged
336by a hurricane and deemed unlivable or unusable by a regulatory
337authority.
338     (f)1.  A person who receives a rebate of sales taxes under
339this section is not eligible to receive a grant under s.
340215.5586.
341     2.  A person who receives a grant under s. 215.5586 is not
342eligible to receive a rebate under this section.
343     3.  Tangible personal property purchased by a contractor
344under contract with a property owner who has received a grant
345under s. 215.5586 is not exempt from the tax imposed by chapter
346212.
347     4.  The provisions governing refunds under s. 212.095 shall
348apply to rebates under this section.
349     (3)  EDUCATION AND CONSUMER AWARENESS.--Multimedia public
350education, awareness, and advertising efforts designed to
351specifically address mitigation techniques shall be employed, as
352well as a component to support ongoing consumer resources and
353referral services.
354     (4)  FEDERAL FUNDING.--The department shall use its best
355efforts to obtain grants or funds from the Federal Government to
356supplement the financial resources of the program.
357     (5)  RULES.--The department shall adopt rules pursuant to
358ss. 120.536(1) and 120.54 governing the Florida Comprehensive
359Hurricane Damage Mitigation Sales Tax Exemption or Rebate
360Program. The department shall coordinate with the Department of
361Revenue in administering sales tax exemptions or rebates under
362the program.
363     (6)  PRIVATE HURRICANE MITIGATION CONTRACTOR LIST.--In
364addition to the requirements of s. 215.5586(8), the department
365shall develop and maintain as a public record a current list of
366private hurricane damage mitigation contractors authorized by
367the department to retrofit properties to make them less
368vulnerable to hurricane damage in accordance with this section.
369     Section 3.  Paragraph (eee) is added to subsection (7) of
370section 212.08, Florida Statutes, to read:
371     212.08  Sales, rental, use, consumption, distribution, and
372storage tax; specified exemptions.--The sale at retail, the
373rental, the use, the consumption, the distribution, and the
374storage to be used or consumed in this state of the following
375are hereby specifically exempt from the tax imposed by this
376chapter.
377     (7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any
378entity by this chapter do not inure to any transaction that is
379otherwise taxable under this chapter when payment is made by a
380representative or employee of the entity by any means,
381including, but not limited to, cash, check, or credit card, even
382when that representative or employee is subsequently reimbursed
383by the entity. In addition, exemptions provided to any entity by
384this subsection do not inure to any transaction that is
385otherwise taxable under this chapter unless the entity has
386obtained a sales tax exemption certificate from the department
387or the entity obtains or provides other documentation as
388required by the department. Eligible purchases or leases made
389with such a certificate must be in strict compliance with this
390subsection and departmental rules, and any person who makes an
391exempt purchase with a certificate that is not in strict
392compliance with this subsection and the rules is liable for and
393shall pay the tax. The department may adopt rules to administer
394this subsection.
395     (eee)  Tangible personal property purchased for hurricane
396damage mitigation retrofitting projects.--Also exempt from the
397tax imposed by this chapter is tangible personal property
398purchased by a private hurricane damage mitigation contractor
399for purposes of retrofitting property to make the property less
400vulnerable to damage from a hurricane, as provided in s.
401215.5587, unless the owner of the property being retrofitted as
402provided in s. 215.5587 has received a grant under s. 215.5586.
403     Section 4.  The sum of $3 million is appropriated from the
404General Revenue Fund to the Department of Community Affairs for
405purposes of administering the Florida Comprehensive Hurricane
406Damage Mitigation Sales Tax Exemption or Rebate Program as
407provided in s. 215.5587, Florida Statutes.
408     Section 5.  This act shall take effect July 1, 2007.


CODING: Words stricken are deletions; words underlined are additions.