HB 691

1	A bill to be entitled
2	An act relating to a property insurance pilot program;
3	providing for a wind-deductible reimbursement cooperative
4	pilot program for named tropical storms; providing for
5	using sales tax revenues for such program; providing
6	legislative intent; providing definitions; requiring the
7	Department of Revenue to provide certain sales tax
8	revenues to the Department of Financial Services in the
9	pilot region for program purposes; providing for the
10	Department of Financial Services to establish a public-
11	private cooperative for certain purposes; authorizing the
12	cooperative to establish and collect fees; providing
13	rulemaking authority; providing for annual reports;
14	providing for future repeal; providing an effective date.
15
16	Be It Enacted by the Legislature of the State of Florida:
17
18	Section 1.  Wind-deductible reimbursement cooperative pilot
19	program for named tropical storms.--
20	(1)  FINDINGS AND INTENT.--The Legislature finds that there
21	is a growing economic crisis in insurance that requires bold
22	action. To allow for the private sector to offer lower rates for
23	insurance coverage, deductibles need to be higher. Such an
24	increase in deductibles must be done while protecting the
25	consumer and the financial obligations of the insurer from
26	overexposure. This section initiates the creation of the wind-
27	deductible reimbursement cooperative pilot program for named
28	tropical storms.
29	(2)  DEFINITIONS.--As used in this section, the term:
30	(a)  "Department" means the Department of Financial
31	Services.
32	(b)  "Pilot region" means the counties of Brevard, Duval,
33	Lake, Orange, and Seminole.
34	(c)  "Sales tax revenue" means the general sales and use
35	tax collected under s. 212.05, Florida Statutes, exclusive of
36	any discretionary local tax.
37	(3)  WIND-DEDUCTIBLE REIMBURSEMENT COOPERATIVE PILOT
38	PROGRAM FOR NAMED TROPICAL STORMS.--
39	(a)  Notwithstanding any other law, the Department of
40	Revenue shall make available to the department one-twelfth of
41	the sales tax revenues generated annually in the pilot region.
42	(b)  The department shall use this money in the pilot
43	region to fund a public-private cooperative called the
44	Deductible Recovery Cooperative, Inc. This nonprofit cooperative
45	is to facilitate the offer of wind-deductible coverage for the
46	consumer in the pilot region that keeps the state's exposure
47	down for named tropical storms and helps the private sector
48	provide consumers lower property insurance rates. The
49	cooperative shall use funds provided from sales tax revenues for
50	the program to reimburse consumers participating in the program
51	the difference between the standard deductible and the increased
52	deductible required under the program. The deductible increase
53	for wind coverage under the program shall be twice the standard
54	deductible for such coverage.
55	(c)  The cooperative may collect a membership fee within
56	the pilot region for enrolling insureds in the program and may
57	provide for administrative fees. The cooperative shall work with
58	the department to establish procedures necessary to conduct
59	program requirements.
60	(d)  The department may adopt rules under ss. 120.536(1)
61	and 120.54, Florida Statutes, to implement and administer this
62	section.
63	(4)  REPORT.--The department shall report annually by
64	December 31 of each year to the Governor, the President of the
65	Senate, and the Speaker of the House of Representatives
66	concerning the activities and expenditures of the program under
67	this section.
68	(5)  REPEAL.--This section expires December 31, 2012.
69	Section 2.  This act shall take effect July 1, 2007.

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