Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS/HB 7057, 1st Eng.
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CHAMBER ACTION
Senate House
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05/02/2007 12:09 PM .
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11 Senator Posey moved the following amendment:
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13 Senate Amendment (with title amendment)
14 Delete everything after the enacting clause
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16 and insert:
17 Section 1. Section 215.5586, Florida Statutes, is
18 amended to read:
19 215.5586 My Safe Florida Home Comprehensive Hurricane
20 Damage Mitigation Program.--There is established within the
21 Department of Financial Services the My Safe Florida Home
22 Comprehensive Hurricane Damage Mitigation Program. The
23 department shall provide fiscal accountability, contract
24 management, and strategic leadership for the program,
25 consistent with this section. This section does not create an
26 entitlement for property owners or obligate the state in any
27 way to fund the inspection or retrofitting of residential
28 property in this state. Implementation of this program is
29 subject to annual legislative appropriations. It is the intent
30 of the Legislature that the My Safe Florida Home Program
31 provide inspections for at least 400,000 site-built,
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1 single-family, residential properties and provide grants to at
2 least 35,000 applicants before June 30, 2009. The program
3 shall be administered by an individual with prior executive
4 experience in the private sector in the areas of insurance,
5 business, or construction. The program shall develop and
6 implement a comprehensive and coordinated approach for
7 hurricane damage mitigation that shall include the following:
8 (1) WIND CERTIFICATION AND HURRICANE MITIGATION
9 INSPECTIONS.--
10 (a) Free home-retrofit inspections of site-built,
11 single-family, residential property, including single-family,
12 two-family, three-family, or four-family residential units,
13 shall be offered throughout the state to determine what
14 mitigation measures are needed, what insurance premium
15 discounts may be available, and what improvements to existing
16 residential properties are needed to reduce the property's
17 vulnerability to hurricane damage. The Department of Financial
18 Services shall contract with establish a request for proposals
19 to solicit proposals from wind certification entities to
20 provide free at no cost to homeowners wind certification and
21 hurricane mitigation inspections. The inspections provided to
22 homeowners, at a minimum, must include:
23 1. A home inspection and report that summarizes the
24 results and identifies recommended improvements corrective
25 actions a homeowner may take to mitigate hurricane damage.
26 2. A range of cost estimates regarding the recommended
27 mitigation improvements features.
28 3. Insurer-specific information regarding premium
29 discounts correlated to the current mitigation features and
30 the recommended mitigation improvements features identified by
31 the inspection.
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1 4. A hurricane resistance rating scale specifying the
2 home's current as well as projected wind resistance
3 capabilities. As soon as practical, the rating scale must be
4 the uniform home grading scale adopted by the Financial
5 Services Commission pursuant to s. 40 of chapter 2007-1, Laws
6 of Florida.
7 (b) To qualify for selection by the department as a
8 provider of wind certification entity to provide and hurricane
9 mitigation inspections, the entity shall, at a minimum:
10 1. Use wind certification and hurricane mitigation
11 inspectors who:
12 a. Have prior experience in residential construction
13 or inspection and have received specialized training in
14 hurricane mitigation procedures. Such training may be provided
15 by a class offered online or in person.
16 b. Have undergone drug testing and level 2 background
17 checks pursuant to s. 435.04. The department is authorized to
18 conduct criminal record checks of inspectors used by wind
19 certification entities. Inspectors must submit a set of the
20 fingerprints to the department for state and national criminal
21 history checks and must pay the fingerprint processing fee set
22 forth in s. 624.501. The fingerprints shall be sent by the
23 department to the Department of Law Enforcement and forwarded
24 to the Federal Bureau of Investigation for processing. The
25 results shall be returned to the department for screening. The
26 fingerprints shall be taken by a law enforcement agency,
27 designated examination center, or other department-approved
28 entity. Wind certification and Hurricane mitigation inspectors
29 participating in the program on January 25, 2007, the
30 effective date of this act shall have until June 1, 2007, to
31 meet the requirements for a criminal record check.
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1 c. Have been certified, in a manner satisfactory to
2 the department, to conduct the inspections.
3 2. Provide a quality assurance program including a
4 reinspection component.
5 (c) An application for an inspection must contain a
6 signed or electronically verified statement made under penalty
7 of perjury that the applicant has submitted only a single
8 application for that home.
9 (d) The owner of a site-built, single-family,
10 residential property may apply for and receive an inspection
11 without also applying for a grant pursuant to subsection (2)
12 and without meeting the requirements of paragraph (2)(a).
13 (2) MITIGATION GRANTS.--Financial grants shall be used
14 to encourage single-family, site-built, owner-occupied,
15 residential property owners to retrofit their properties to
16 make them less vulnerable to hurricane damage.
17 (a) To be eligible for a grant for persons who have
18 obtained a completed inspection after May 1, 2007, a
19 residential property must:
20 1. Have been granted a homestead exemption under
21 chapter 196.
22 2. Be a dwelling with an insured value of $300,000
23 $500,000 or less. Homeowners who are low-income persons, as
24 defined in s. 420.0004(10), are exempt from this requirement.
25 3. Have undergone an acceptable wind certification and
26 hurricane mitigation inspection, if the property is an
27 existing structure.
28 4. Be located in the "wind-borne debris region" as
29 that term is defined in s. 1609.2, International Building Code
30 (2006).
31 5. Be a home for which the building permit application
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1 for initial construction was made before March 1, 2002.
2
3 An application for a grant must contain a signed or
4 electronically verified statement made under penalty of
5 perjury that the applicant has submitted only a single
6 application and must have attached documents demonstrating the
7 applicant meets the requirements of this paragraph. A
8 residential property which is part of a multifamily
9 residential unit may receive a grant only if all homeowners
10 participate and the total number of units does not exceed
11 four.
12 (b) All grants must be matched on a dollar-for-dollar
13 basis for a total of $10,000 for the actual cost of the
14 mitigation project with the state's contribution not to exceed
15 $5,000.
16 (c) The program shall create a process in which
17 mitigation contractors agree to participate and seek
18 reimbursement from the state and homeowners select from a list
19 of participating contractors. All mitigation must be based
20 upon the securing of all required local permits and
21 inspections and must be performed by properly licensed
22 contractors. Mitigation projects are subject to random
23 reinspection of up to at least 5 10 percent of all projects.
24 Hurricane mitigation inspectors qualifying for the program may
25 also participate as mitigation contractors as long as the
26 inspectors meet the department's qualifications and
27 certification requirements for mitigation contractors.
28 (d) Matching fund grants shall also be made available
29 to local governments and nonprofit entities for projects that
30 will reduce hurricane damage to single-family, site-built,
31 owner-occupied, residential property. The department shall
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1 liberally construe those requirements in favor of availing the
2 state of the opportunity to leverage funding for the My Safe
3 Florida Home Program with other sources of funding.
4 (e) When recommended by a hurricane mitigation
5 inspection, grants may be used for the following improvements
6 only:
7 1. Roof deck attachment.
8 2. Secondary water barrier.
9 3. Roof covering.
10 4. Brace gable ends.
11 5. Reinforce roof-to-wall connections.
12 1.6. Opening protection.
13 2.7. Exterior doors, including garage doors.
14 3. Brace gable ends.
15
16 The department may require that improvements be made to all
17 openings, including exterior doors and garage doors, as a
18 condition of approving an application for a grant if the
19 department determines that improvements to less than all
20 openings would not substantially improve the structure's
21 ability to withstand hurricane damage.
22 (f) Grants may be used on a previously inspected
23 existing structure or on a rebuild. A rebuild is defined as a
24 site-built, single-family dwelling under construction to
25 replace a home that was destroyed or significantly damaged by
26 a hurricane and deemed unlivable by a regulatory authority.
27 The homeowner must be a low-income homeowner as defined in
28 paragraph (g), must have had a homestead exemption for that
29 home prior to the hurricane, and must be intending to rebuild
30 the home as that homeowner's homestead and maintained the
31 homestead exemption.
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1 (g) Low-income homeowners, as defined in s.
2 420.0004(10), who otherwise meet the requirements of
3 paragraphs (a), (c), (e), and (f) are eligible for a grant of
4 up to $5,000 and are not required to provide a matching amount
5 to receive the grant. Additionally, for low-income homeowners,
6 grant funding may be used for repair to existing structures
7 leading to any of the mitigation improvements provided in
8 paragraph (e), limited to 20 percent of the grant value. The
9 program may accept a certification directly from a low-income
10 homeowner that the homeowner meets the requirements of s.
11 420.0004(10) if the homeowner provides such certification in a
12 signed or electronically verified statement made under penalty
13 of perjury.
14 (h) The department shall establish objective,
15 reasonable criteria for prioritizing grant applications,
16 consistent with the requirements of this section.
17 (i) The department shall develop a process that
18 ensures the most efficient means to collect and verify grant
19 applications to determine eligibility and may direct hurricane
20 mitigation inspectors to collect and verify grant application
21 information or use the Internet or other electronic means to
22 collect information and determine eligibility.
23 (j) The department shall transfer the amount of $40
24 million from funds appropriated to the program, including up
25 to 5 percent for administrative costs, to Volunteer Florida
26 Foundation, Inc., for provision of inspections and grants to
27 low-income homeowners, as defined in s. 420.0004(10),
28 consistent with this section. Volunteer Florida Foundation,
29 Inc., shall be responsible for inspections and grants
30 management for low-income homeowners and shall report its
31 activities and account for state funds on a quarterly and
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1 annual basis to the Chief Financial Officer, the President of
2 the Senate, and the Speaker of the House of Representatives.
3 (3) EDUCATION AND CONSUMER AWARENESS.--The department
4 may undertake a statewide multimedia public outreach and
5 advertising campaign to inform consumers of the availability
6 and benefits of hurricane inspections and of the safety and
7 financial benefits of residential hurricane damage mitigation.
8 The department may seek out and use local, state, federal, and
9 private funds to support the campaign. Multimedia public
10 education, awareness, and advertising efforts designed to
11 specifically address mitigation techniques shall be employed,
12 as well as a component to support ongoing consumer resources
13 and referral services.
14 (4) ADVISORY COUNCIL.--There is created an advisory
15 council to provide advice and assistance to the department
16 regarding program administrator with regard to his or her
17 administration of the program. The advisory council shall
18 consist of:
19 (a) A representative of lending institutions, selected
20 by the Financial Services Commission from a list of at least
21 three persons recommended by the Florida Bankers Association.
22 (b) A representative of residential property insurers,
23 selected by the Financial Services Commission from a list of
24 at least three persons recommended by the Florida Insurance
25 Council.
26 (c) A representative of home builders, selected by the
27 Financial Services Commission from a list of at least three
28 persons recommended by the Florida Home Builders Association.
29 (d) A faculty member of a state university, selected
30 by the Financial Services Commission, who is an expert in
31 hurricane-resistant construction methodologies and materials.
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1 (e) Two members of the House of Representatives,
2 selected by the Speaker of the House of Representatives.
3 (f) Two members of the Senate, selected by the
4 President of the Senate.
5 (g) The Chief Executive Officer of the Federal
6 Alliance for Safe Homes, Inc., or his or her designee.
7 (h) The senior officer of the Florida Hurricane
8 Catastrophe Fund.
9 (i) The executive director of Citizens Property
10 Insurance Corporation.
11 (j) The director of the Division of Emergency
12 Management of the Department of Community Affairs.
13
14 Members appointed under paragraphs (a)-(d) shall serve at the
15 pleasure of the Financial Services Commission. Members
16 appointed under paragraphs (e) and (f) shall serve at the
17 pleasure of the appointing officer. All other members shall
18 serve voting ex officio. Members of the advisory council shall
19 serve without compensation but may receive reimbursement as
20 provided in s. 112.061 for per diem and travel expenses
21 incurred in the performance of their official duties.
22 (5) FEDERAL FUNDING.--The department may seek out and
23 leverage local, state, federal, or private funds to enhance
24 shall use its best efforts to obtain grants or funds from the
25 federal government to supplement the financial resources of
26 the program.
27 (6) RULES.--The Department of Financial Services shall
28 adopt rules pursuant to ss. 120.536(1) and 120.54 to govern
29 governing the Florida Comprehensive Hurricane Damage
30 Mitigation program, implement the provisions of this section,
31 including rules governing hurricane mitigation inspections,
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1 mitigation contractors, and training of inspectors and
2 contractors, and carry out the duties of the department under
3 this section. The department shall also adopt rules
4 establishing priorities for grants provided under this section
5 based on objective criteria that gives priority to reducing
6 the state's probable maximum loss from hurricanes. However,
7 pursuant to this overall goal, the department may further
8 establish priorities based on the insured value of the
9 dwelling, whether or not the dwelling is insured by Citizens
10 Property Insurance Corporation and whether or not the area
11 under consideration has sufficient resources and the ability
12 to perform the retrofitting required.
13 (7) CONTRACTS WITH NOT-FOR-PROFIT CORPORATIONS.--The
14 Department of Financial Services is authorized to contract
15 with not-for-profit corporations to conduct all or portions of
16 the program and to increase the awareness of the benefits of
17 mitigation among homeowners in this state. The department
18 shall consider the not-for-profit corporation's ability to
19 raise funds from the private sector to provide for mitigation
20 grants, as well as administrative capabilities for conducting
21 other business related to the program.
22 (7)(8) WIND CERTIFICATION AND HURRICANE MITIGATION
23 INSPECTOR LIST.--The department shall develop and maintain as
24 a public record a current list of wind certification and
25 hurricane mitigation inspectors authorized to conduct wind
26 certification and hurricane mitigation inspections pursuant to
27 this section.
28 (8) NO-INTEREST LOANS.--The department may develop a
29 no-interest loan program by December 31, 2007, to encourage
30 the private sector to provide loans to owners of site-built,
31 single-family, residential property to pay for mitigation
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1 measures listed in subsection (2). A loan eligible for
2 interest payments pursuant to this subsection may be for a
3 term of up to 3 years and cover up to $5,000 in mitigation
4 measures. The department shall pay the creditor the market
5 rate of interest using funds appropriated for the My Safe
6 Florida Home program. In no case shall the department pay more
7 than the interest rate set by s. 687.03. To be eligible for a
8 loan, a loan applicant must first obtain a home inspection and
9 report that specifies what improvements are needed to reduce
10 the property's vulnerability to windstorm damage pursuant to
11 this section and meet loan underwriting requirements set by
12 the lender. The department may set aside up to $10 million
13 from funds appropriated for the My Safe Florida Home program
14 to implement this subsection. The department shall adopt rules
15 pursuant to ss. 120.36(1) and 120.54 to implement this
16 subsection which may include eligibility criteria.
17 (9) PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE
18 BROKERS AND SALES ASSOCIATES.--The program shall develop
19 brochures for distribution to general contractors, roofing
20 contractors, and real estate brokers and sales associates
21 licensed under part I of chapter 475 explaining the benefits
22 to homeowners of residential hurricane damage mitigation. The
23 program shall encourage contractors to distribute the
24 brochures to homeowners at the first meeting with a homeowner
25 who is considering contracting for home or roof repairs or
26 contracting for the construction of a new home. The program
27 shall encourage real estate brokers and sales associates
28 licensed under part I of chapter 475 to distribute the
29 brochures to clients prior to the purchase of a home. The
30 brochures may be made available electronically.
31 (10) CONTRACT MANAGEMENT.--The department may contract
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1 with third parties for grants management, inspection services,
2 educational outreach, and auditing services. Such contracts
3 shall be considered direct costs of the program and shall not
4 be subject to administrative cost limits, but contracts valued
5 at $500,000 or more shall be subject to review and approval by
6 the Legislative Budget Commission. The department shall
7 contract with providers that have a demonstrated record of
8 successful business operations in areas directly related to
9 the services to be provided and shall ensure the highest
10 accountability for use of state funds, consistent with this
11 section.
12 (11) INTENT.--It is the intent of the Legislature that
13 grants made to residential property owners under this section
14 shall be considered disaster-relief assistance within the
15 meaning of s. 139 of the Internal Revenue Code of 1986, as
16 amended.
17 (12) REPORTS.--The department shall make an annual
18 report on the activities of the program that shall account for
19 the use of state funds and indicate the number of inspections
20 requested, the number of inspections performed, the number of
21 grant applications received, and the number and value of
22 grants approved. The report shall be delivered to the
23 President of the Senate and the Speaker of the House of
24 Representatives by February 1 of each year.
25 Section 2. Paragraph (b) of subsection (4) of section
26 489.115, Florida Statutes, is amended to read:
27 489.115 Certification and registration; endorsement;
28 reciprocity; renewals; continuing education.--
29 (4)
30 (b)1. Each certificateholder or registrant shall
31 provide proof, in a form established by rule of the board,
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1 that the certificateholder or registrant has completed at
2 least 14 classroom hours of at least 50 minutes each of
3 continuing education courses during each biennium since the
4 issuance or renewal of the certificate or registration. The
5 board shall establish by rule that a portion of the required
6 14 hours must deal with the subject of workers' compensation,
7 business practices, and workplace safety, and, for applicable
8 licensure categories, wind mitigation methodologies. The board
9 shall by rule establish criteria for the approval of
10 continuing education courses and providers, including
11 requirements relating to the content of courses and standards
12 for approval of providers, and may by rule establish criteria
13 for accepting alternative nonclassroom continuing education on
14 an hour-for-hour basis. The board shall prescribe by rule the
15 continuing education, if any, which is required during the
16 first biennium of initial licensure. A person who has been
17 licensed for less than an entire biennium must not be required
18 to complete the full 14 hours of continuing education.
19 2. In addition, the board may approve specialized
20 continuing education courses on compliance with the wind
21 resistance provisions for one and two family dwellings
22 contained in the Florida Building Code and any alternate
23 methodologies for providing such wind resistance which have
24 been approved for use by the Florida Building Commission.
25 Division I certificateholders or registrants who demonstrate
26 proficiency upon completion of such specialized courses may
27 certify plans and specifications for one and two family
28 dwellings to be in compliance with the code or alternate
29 methodologies, as appropriate, except for dwellings located in
30 floodways or coastal hazard areas as defined in ss. 60.3D and
31 E of the National Flood Insurance Program.
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1 3. Each certificateholder or registrant shall provide
2 to the board proof of completion of the core curriculum
3 courses, or passing the equivalency test of the Building Code
4 Training Program established under s. 553.841, specific to the
5 licensing category sought, within 2 years after commencement
6 of the program or of initial certification or registration,
7 whichever is later. Classroom hours spent taking core
8 curriculum courses shall count toward the number required for
9 renewal of certificates or registration. A certificateholder
10 or registrant who passes the equivalency test in lieu of
11 taking the core curriculum courses shall receive full credit
12 for core curriculum course hours.
13 4. The board shall require, by rule adopted pursuant
14 to ss. 120.536(1) and 120.54, a specified number of hours in
15 specialized or advanced module courses, approved by the
16 Florida Building Commission, on any portion of the Florida
17 Building Code, adopted pursuant to part VII of chapter 553,
18 relating to the contractor's respective discipline.
19 Section 3. Sections 4, 39, and 42 of chapter 2006-12,
20 Laws of Florida, are amended to read:
21 Section 4. Of the funds appropriated for the My Safe
22 Florida Home Comprehensive Hurricane Damage Mitigation Program
23 specified in s. 215.5586, Florida Statutes, as created by this
24 act, $7.5 million shall be for the Manufactured Housing and
25 Mobile Home Mitigation and Enhancement Program specified in s.
26 215.559(4)(b), Florida Statutes, as created by this act. The
27 Department of Financial Services shall use these funds to
28 contract with Tallahassee Community College to implement the
29 Manufactured Housing and Mobile Home Mitigation and
30 Enhancement Program.
31 Section 39. (1) The Office of Insurance Regulation,
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1 in consultation with the Department of Community Affairs, the
2 Department of Financial Services, the Federal Alliance for
3 Safe Homes, the Florida Insurance Council, the Florida Home
4 Builders Association, the Florida Manufactured Housing
5 Association, the Risk and Insurance Department of Florida
6 State University, and the Institute for Business and Homes
7 Safety, shall study and develop a program that will provide an
8 objective rating system that will allow homeowners to evaluate
9 the relative ability of Florida properties to withstand the
10 wind load from a sustained severe tropical storm or hurricane.
11 (2) The rating system will be designed in a manner
12 that is easy to understand for the property owner, based on
13 proven readily verifiable mitigation techniques and devices,
14 and able to be implemented based on a visual inspection
15 program. The Department of Financial Services shall implement
16 a pilot program for use in the My Safe Florida Home
17 Comprehensive Hurricane Damage Mitigation Program.
18 (3) The Department shall provide a report to the
19 Governor, the President of the Senate, and the Speaker of the
20 House of Representatives by March 31, 2007, detailing the
21 nature and construction of the rating scale, its effectiveness
22 based on implementation in a pilot program, and an operational
23 plan for statewide implementation of the rating scale.
24 Section 42. (1) For the 2006-2007 fiscal year, the
25 sum of $250 million is appropriated on a nonrecurring basis
26 from the General Revenue Fund to the Insurance Regulatory
27 Trust Fund in the Department of Financial Services for
28 purposes of the My Safe Florida Home Comprehensive Hurricane
29 Damage Mitigation Program specified in s. 215.5586, Florida
30 Statutes, as created by this act. The department shall
31 establish a separate account within the trust fund for
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1 accounting purposes.
2 (2) The sum of $250 million is appropriated from the
3 Insurance Regulatory Trust Fund in the Department of Financial
4 Services for the purposes set forth in subsection (1). The
5 department may expend up to 1 percent of the funds
6 appropriated to administer the program. Beginning October 15,
7 2007, and quarterly thereafter, the Chief Financial Officer
8 shall provide a report to the Executive Office of the Governor
9 and the chair and vice chair of the Legislative Budget
10 Commission containing information regarding expenditures made
11 for the purposes set forth in subsection (1).
12 (3) Notwithstanding the provisions of s. 216.301,
13 Florida Statutes, to the contrary, the unexpended balance of
14 appropriations authorized in subsections (1) and (2) shall not
15 revert until June 30, 2009.
16 Section 4. It is the intent of the Legislature that
17 scientifically valid and actuarially sound windstorm
18 mitigation rate factors, premium discounts, and differentials
19 be provided to residential and commercial property insurance
20 policyholders. In order to ensure the validity of such
21 factors, the Office of Insurance Regulation, in consultation
22 with the Department of Community Affairs and the Florida
23 Building Commission, shall conduct or cause to be conducted
24 one or more wind-loss mitigation studies, subject to
25 appropriation of funds by the Legislature for this purpose.
26 The studies shall evaluate the windstorm loss relativities for
27 construction features, including, but not limited to, those
28 that enhance roof strength, roof-covering performance,
29 roof-to-wall strength, wall-to-floor-to-foundation strength,
30 opening protections, and window, door, and skylight strength.
31 The studies shall include residential property, including
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1 single-family and multifamily homes, mobile homes, and
2 condominiums, and commercial nonresidential property. The
3 studies shall include, but need not be limited to, an analysis
4 of loss data from the 2004 and 2005 hurricanes. The findings
5 of the studies shall be reported to the Governor, the
6 President of the Senate, the Speaker of the House of
7 Representatives, the Chief Financial Officer, and the
8 Commissioner of Insurance Regulation by January 1, 2008, for
9 the studies related to residential property, and by March 1,
10 2008, for the studies related to commercial nonresidential
11 property.
12 Section 5. Section 553.844, Florida Statutes, is
13 created to read:
14 553.844 Windstorm loss mitigation; requirements for
15 roofs and opening protection.--
16 (1) The Legislature finds that:
17 (a) The effects of recent hurricanes on the state have
18 demonstrated the effectiveness of the Florida Building Code in
19 reducing property damage to buildings constructed in
20 accordance with its requirements, and have also exposed a
21 vulnerability of some construction undertaken prior to
22 implementation of the Florida Building Code.
23 (b) Hurricanes represent a continuing threat to the
24 health, safety, and welfare of the residents of this state due
25 to the direct destructive effects of hurricanes as well as
26 their effects on windstorm insurance rates.
27 (c) The mitigation of property damage constitutes a
28 valid and recognized objective of the Florida Building Code.
29 (d) Cost-effective techniques for integrating proven
30 methods of the Florida Building Code into buildings built
31 prior to its implementation benefit all residents of the state
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1 as a whole.
2 (2) The Florida Building Commission shall:
3 (a) Analyze the extent to which a proposed Florida
4 Building Code provision will mitigate property damage to
5 buildings and their contents in evaluating that proposal. If
6 the nature of the proposed Florida Building Code provision
7 relates only to mitigation of property damage and not to a
8 life safety concern, the proposal shall be reviewed based on
9 its measurable benefits in relation to the costs imposed.
10 (b) Develop and adopt within the Florida Building Code
11 a means to incorporate recognized mitigation techniques for
12 site-built, single-family residential structures constructed
13 prior to the implementation of the Florida Building Code,
14 including, but not limited to:
15 1. Prescriptive techniques for the installation of
16 gable-end bracing;
17 2. Secondary water barriers for roofs and standards
18 relating to secondary water barriers. The criteria may
19 include, but need not be limited to, roof shape, slope, and
20 composition of all elements of the roof system;
21 3. Prescriptive techniques for improvement of
22 roof-to-wall connections. The Legislature recognizes that the
23 cost of retrofitting existing buildings to meet the code
24 requirements for new construction in this regard may exceed
25 the practical benefit to be attained. The Legislature intends
26 for the commission to provide for the integration of
27 alternate, lower-cost means that may be employed to retrofit
28 existing buildings that are not otherwise required to comply
29 with the requirements of the Florida Building Code for new
30 construction so that the cost of such improvements does not
31 exceed approximately 15 percent of the cost of reroofing;
18
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1 4. Strengthening or correcting roof-decking
2 attachments and fasteners during reroofing; and
3 5. Adding or strengthening opening protections.
4 (3) The Legislature finds that the integration of
5 these specifically identified mitigation measures is critical
6 to addressing the serious problem facing the state from damage
7 caused by windstorms and that delay in the adoption and
8 implementation constitutes a threat to the health, safety, and
9 welfare of the state. Accordingly, the Florida Building
10 Commission shall develop and adopt these measures by October
11 1, 2007, by rule separate from the Florida Building Code,
12 which take immediate effect and shall incorporate such
13 requirements into the next edition of the Florida Building
14 Code. Such rules shall require or otherwise clarify that for
15 site-built, single-family residential structures:
16 (a) A roof replacement must incorporate the techniques
17 specified in subparagraphs (2)(b)2. and 4.
18 (b) For a building that is located in the wind-borne
19 debris region as defined in s. 1609.2 of the International
20 Building Code (2006) and that has an insured value of $300,000
21 or more or, if the building is uninsured or for which
22 documentation of insured value is not presented, has a just
23 valuation for the structure of $300,000 or more for purposes
24 of ad valorem taxation:
25 1. A roof replacement must incorporate the techniques
26 specified in subparagraph (2)(b)3.
27 2. Any activity that requires a building permit that
28 is applied for after January 1, 2008, must include provision
29 of opening protection as required within the Florida Building
30 Code for new construction of the building for buildings
31 subject to the building permit.
19
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1 Section 6. Paragraph (a) of subsection (6) of section
2 627.351, Florida Statutes, as amended by section 21 of chapter
3 2007-1, Laws of Florida, is amended to read:
4 627.351 Insurance risk apportionment plans.--
5 (6) CITIZENS PROPERTY INSURANCE CORPORATION.--
6 (a)1. The Legislature finds that actual and threatened
7 catastrophic losses to property in this state from hurricanes
8 have caused insurers to be unwilling or unable to provide
9 property insurance coverage to the extent sought and needed.
10 It is in the public interest and a public purpose to assist in
11 assuring that property in the state is insured so as to
12 facilitate the remediation, reconstruction, and replacement of
13 damaged or destroyed property in order to reduce or avoid the
14 negative effects otherwise resulting to the public health,
15 safety, and welfare; to the economy of the state; and to the
16 revenues of the state and local governments needed to provide
17 for the public welfare. It is necessary, therefore, to provide
18 property insurance to applicants who are in good faith
19 entitled to procure insurance through the voluntary market but
20 are unable to do so. The Legislature intends by this
21 subsection that property insurance be provided and that it
22 continues, as long as necessary, through an entity organized
23 to achieve efficiencies and economies, while providing service
24 to policyholders, applicants, and agents that is no less than
25 the quality generally provided in the voluntary market, all
26 toward the achievement of the foregoing public purposes.
27 Because it is essential for the corporation to have the
28 maximum financial resources to pay claims following a
29 catastrophic hurricane, it is the intent of the Legislature
30 that the income of the corporation be exempt from federal
31 income taxation and that interest on the debt obligations
20
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1 issued by the corporation be exempt from federal income
2 taxation.
3 2. The Residential Property and Casualty Joint
4 Underwriting Association originally created by this statute
5 shall be known, as of July 1, 2002, as the Citizens Property
6 Insurance Corporation. The corporation shall provide insurance
7 for residential and commercial property, for applicants who
8 are in good faith entitled, but are unable, to procure
9 insurance through the voluntary market. The corporation shall
10 operate pursuant to a plan of operation approved by order of
11 the Financial Services Commission. The plan is subject to
12 continuous review by the commission. The commission may, by
13 order, withdraw approval of all or part of a plan if the
14 commission determines that conditions have changed since
15 approval was granted and that the purposes of the plan require
16 changes in the plan. The corporation shall continue to operate
17 pursuant to the plan of operation approved by the Office of
18 Insurance Regulation until October 1, 2006. For the purposes
19 of this subsection, residential coverage includes both
20 personal lines residential coverage, which consists of the
21 type of coverage provided by homeowner's, mobile home owner's,
22 dwelling, tenant's, condominium unit owner's, and similar
23 policies, and commercial lines residential coverage, which
24 consists of the type of coverage provided by condominium
25 association, apartment building, and similar policies.
26 3. For the purposes of this subsection, the term
27 "homestead property" means:
28 a. Property that has been granted a homestead
29 exemption under chapter 196;
30 b. Property for which the owner has a current, written
31 lease with a renter for a term of at least 7 months and for
21
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1 which the dwelling is insured by the corporation for $200,000
2 or less;
3 c. An owner-occupied mobile home or manufactured home,
4 as defined in s. 320.01, which is permanently affixed to real
5 property, is owned by a Florida resident, and has been granted
6 a homestead exemption under chapter 196 or, if the owner does
7 not own the real property, the owner certifies that the mobile
8 home or manufactured home is his or her principal place of
9 residence;
10 d. Tenant's coverage;
11 e. Commercial lines residential property; or
12 f. Any county, district, or municipal hospital; a
13 hospital licensed by any not-for-profit corporation qualified
14 under s. 501(c)(3) of the United States Internal Revenue Code;
15 or a continuing care retirement community that is certified
16 under chapter 651 and that receives an exemption from ad
17 valorem taxes under chapter 196.
18 4. For the purposes of this subsection, the term
19 "nonhomestead property" means property that is not homestead
20 property.
21 5. Effective July 1, 2008, a personal lines
22 residential structure that has a dwelling replacement cost of
23 $1 million or more, or a single condominium unit that has a
24 combined dwelling and content replacement cost of $1 million
25 or more is not eligible for coverage by the corporation. Such
26 dwellings insured by the corporation on June 30, 2008, may
27 continue to be covered by the corporation until the end of the
28 policy term. However, such dwellings that are insured by the
29 corporation and become ineligible for coverage due to the
30 provisions of this subparagraph may reapply and obtain
31 coverage in the high-risk account and be considered
22
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1 "nonhomestead property" if the property owner provides the
2 corporation with a sworn affidavit from one or more insurance
3 agents, on a form provided by the corporation, stating that
4 the agents have made their best efforts to obtain coverage and
5 that the property has been rejected for coverage by at least
6 one authorized insurer and at least three surplus lines
7 insurers. If such conditions are met, the dwelling may be
8 insured by the corporation for up to 3 years, after which time
9 the dwelling is ineligible for coverage. The office shall
10 approve the method used by the corporation for valuing the
11 dwelling replacement cost for the purposes of this
12 subparagraph. If a policyholder is insured by the corporation
13 prior to being determined to be ineligible pursuant to this
14 subparagraph and such policyholder files a lawsuit challenging
15 the determination, the policyholder may remain insured by the
16 corporation until the conclusion of the litigation.
17 6. For properties constructed on or after January 1,
18 2009, the corporation may not insure any property located
19 within 2,500 feet landward of the coastal construction control
20 line created pursuant to s. 161.053 unless the property meets
21 the requirements of the code-plus building standards developed
22 by the Florida Building Commission.
23 7. It is the intent of the Legislature that
24 policyholders, applicants, and agents of the corporation
25 receive service and treatment of the highest possible level
26 but never less than that generally provided in the voluntary
27 market. It also is intended that the corporation be held to
28 service standards no less than those applied to insurers in
29 the voluntary market by the office with respect to
30 responsiveness, timeliness, customer courtesy, and overall
31 dealings with policyholders, applicants, or agents of the
23
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1 corporation.
2 8. Effective January 1, 2009, a personal lines
3 residential structure that is located in the "wind-borne
4 debris region," as defined in s. 1609.2, International
5 Building Code (2006), and that has an insured value on the
6 structure of $300,000 or more is not eligible for coverage by
7 the corporation unless the structure has shutters,
8 impact-resistant glass, or such other approved opening
9 protections as required under the Florida Building Code for a
10 newly constructed residential structure in that area.
11 Section 7. Section 1004.647, Florida Statutes, is
12 created to read:
13 1004.647 Florida Catastrophic Storm Risk Management
14 Research Center.--The Florida Catastrophic Storm Risk
15 Management Research Center is created at the Florida State
16 University, College of Business, Department of Risk
17 Management. The purpose of the center is to promote and
18 disseminate research on issues related to hurricane
19 catastrophe loss and to assist in identifying and developing
20 education and research grant funding opportunities among
21 higher education institutions in this state and the private
22 sector. The purpose of activities of the center is to support
23 the state's ability to prepare for, respond to, and recover
24 from catastrophic storms. The center shall:
25 (1) Coordinate and disseminate applied research
26 efforts that are expected to have an immediate impact on
27 policy and practices related to windstorm mitigation.
28 (2) Coordinate and disseminate information related to
29 catastrophic storm risk management, including, but not limited
30 to, research and information that would benefit businesses,
31 consumers, and public policy makers. Areas of interest may
24
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1 include storm forecasting, loss modeling, building
2 construction and mitigation, and risk management strategies.
3 Through its efforts, the center shall facilitate Florida's
4 preparedness for and responsiveness to catastrophic storms.
5 (3) Create and promote studies that enhance the
6 educational options available to risk management and insurance
7 students.
8 (4) Publish and disseminate findings.
9 (5) Organize and sponsor conferences, symposia, and
10 workshops to educate consumers and policymakers.
11 Section 8. This act shall take effect upon becoming a
12 law.
13
14
15 ================ T I T L E A M E N D M E N T ===============
16 And the title is amended as follows:
17 Delete everything before the enacting clause
18
19 and insert:
20 A bill to be entitled
21 An act relating to hurricane damage mitigation;
22 amending s. 215.5586, F.S.; redesignating the
23 Florida Comprehensive Hurricane Damage
24 Mitigation Program as the "My Safe Florida Home
25 Program"; providing additional duties of the
26 Department of Financial Services; providing
27 additional legislative intent; revising
28 criteria and requirements for hurricane
29 mitigation inspections; requiring the
30 department to contract with certain entities to
31 provide hurricane mitigation inspections;
25
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1 revising the requirements for such inspections;
2 providing for a hurricane resistance rating
3 scale as adopted by the Financial Services
4 Commission; revising the requirements for an
5 entity to be selected by the department to
6 perform inspections; providing requirements for
7 a homeowner with respect to applying for an
8 inspection; revising requirements for
9 mitigation grants; authorizing inspectors to
10 participate as contractors under certain
11 circumstances; limiting the purposes for which
12 a grant may be used; providing for priorities
13 of grants; requiring the department to develop
14 a grant applications verification and
15 collection process; requiring the department to
16 transfer certain appropriated funds to
17 Volunteer Florida Foundation, Inc., for certain
18 purposes; specifying duties of Volunteer
19 Florida Foundation, Inc.; authorizing the
20 department to undertake a statewide consumer
21 information campaign; requiring the advisory
22 council to advise and assist the department in
23 administering the program; expanding the
24 department's authorization to enhance financial
25 resource funding of the program; revising the
26 department's rulemaking authority; deleting
27 provisions authorizing the department to
28 contract with not-for-profit corporations;
29 requiring the department to maintain a list of
30 authorized hurricane mitigation inspectors;
31 authorizing the department to develop a
26
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1 no-interest loan program; providing program
2 requirements and limitations; requiring the
3 department to pay certain creditors from funds
4 appropriated for the program; providing loan
5 eligibility criteria; authorizing the
6 department to set aside certain funds for
7 program purposes; requiring the department to
8 adopt rules; providing for public outreach for
9 contractors, real estate brokers, and licensed
10 sales associates; authorizing the department to
11 contract for grants management, inspection
12 services, education outreach, and auditing
13 services; providing additional legislative
14 intent; requiring the department to make annual
15 reports to the Legislature concerning the
16 program; providing report requirements;
17 amending s. 489.115, F.S.; including wind
18 mitigation methodologies under certain
19 continuing education requirements for
20 contractors; amending ss. 4, 39, and 42 of ch.
21 2006-12, Laws of Florida; providing conforming
22 changes to the redesignation of the Florida
23 Comprehensive Hurricane Damage Mitigation
24 Program; providing legislative intent;
25 requiring the Office of Insurance Regulation,
26 in consultation with the Department of
27 Community Affairs and the Florida Building
28 Commission, to conduct wind-loss mitigation
29 studies; providing requirements for the
30 studies; requiring reports to the Governor, the
31 Legislature, the Chief Financial Officer, and
27
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1 the Commissioner of Insurance Regulation;
2 creating s. 553.844, F.S.; providing
3 legislative findings concerning the need to
4 prevent property damage caused by hurricanes;
5 requiring the Florida Building Commission to
6 adopt amendments to the Florida Building Code,
7 including requirements for certain buildings
8 constructed before the implementation of the
9 code; providing requirements for such
10 amendments; providing requirements for
11 buildings located in a wind-borne debris
12 region; amending s. 627.351, F.S.; requiring
13 that a residential structure located in a
14 wind-borne debris region have certain opening
15 protections required under the Florida Building
16 Code in order to be eligible for coverage by
17 the Citizens Property Insurance Corporation;
18 creating s. 1004.647, F.S.; creating the
19 Florida Catastrophic Storm Risk Management
20 Research Center at Florida State University;
21 providing purposes; providing responsibilities
22 of the center; providing an effective date.
23
24
25
26
27
28
29
30
31
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