Bill Text: FL S1684 | 2012 | Regular Session | Comm Sub


Bill Title: Hurricane Loss Mitigation Program

Spectrum: Bipartisan Bill

Status: (Failed) 2012-03-09 - Died in Banking and Insurance [S1684 Detail]

Download: Florida-2012-S1684-Comm_Sub.html
       Florida Senate - 2012                             CS for SB 1684
       
       
       
       By the Committee on Military Affairs, Space, and Domestic
       Security; and Senator Hays
       
       
       
       583-03082-12                                          20121684c1
    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 purposes
    5         and program duties including funding and supervising
    6         the public hurricane loss projection model; providing
    7         additional specification as to how moneys appropriated
    8         to the Division of Emergency Management for the
    9         program are spent; revising the membership of the
   10         program’s advisory council; amending s. 627.711, F.S.;
   11         requiring that the form used by insurers to provide
   12         notice of premium discounts and the uniform mitigation
   13         verification inspection form be prescribed by the
   14         Division of Emergency Management; revising who must
   15         conduct such mitigation verification inspections and
   16         sign such form; providing an effective date.
   17  
   18  Be It Enacted by the Legislature of the State of Florida:
   19  
   20         Section 1. Section 215.559, Florida Statutes, is amended to
   21  read:
   22         215.559 Hurricane Loss Mitigation Program.—A Hurricane Loss
   23  Mitigation Program is established in the Division of Emergency
   24  Management.
   25         (1) The purpose of the program is to:
   26         (a) Reduce the vulnerability of and damage to residential
   27  structures from wind, wind-driven rain, and wind-driven debris
   28  during high-wind events through the implementation of a
   29  residential mitigation retrofit program;
   30         (b) Ensure that residential mitigation activities
   31  prioritize wind-borne debris regions throughout the state;
   32         (c) Ensure that all mitigation projects will be reviewed,
   33  inspected, and designed by technical and environmental
   34  professionals;
   35         (d) Ensure that all mitigation projects be cost-effective
   36  and provide a positive return on investment;
   37         (e) Ensure that all products and systems are installed in
   38  accordance with the Florida Building Code and manufacturer’s
   39  installation specifications and have a product approval number
   40  from the building code;
   41         (f) Ensure that all mitigation activities follow recognized
   42  best practices for residential wind mitigation and provide
   43  increased sustainability;
   44         (g) Ensure that all mitigation activities are tracked and
   45  analyzed after the event in order to measure the effectiveness
   46  of the mitigation program. A database must be maintained to
   47  capture all necessary information; and
   48         (h) Ensure that participation by homeowners is voluntary.
   49         (2) The program shall:
   50         (a) Provide funding and supervision for the public
   51  hurricane loss projection model established under s. 627.06281;
   52         (b) Establish a statewide program for inspection standards
   53  and data collection related to hurricane loss;
   54         (c) Further the science of hurricane mitigation by working
   55  with all types of businesses, scientists, and academics in order
   56  to further the availability and measure the effectiveness of new
   57  ways to mitigate hurricane damage to homes;
   58         (d) Be a state resource on the assessment of potential
   59  costs of hurricane damage and the results of mitigation; and
   60         (e) Determine appropriate wind mitigation standards based
   61  on hurricane loss models and the applicability and use of wind
   62  mitigation discounts for homeowners’ insurance.
   63         (3)(1) The Legislature shall annually appropriate $10
   64  million of the moneys authorized for appropriation under s.
   65  215.555(7)(c) from the Florida Hurricane Catastrophe Fund to the
   66  division for the purposes set forth in this section.
   67         (a) Of that the amount:
   68         1.(a) Seven million dollars in funds shall be used for
   69  programs to improve the wind resistance of residences and mobile
   70  homes, including loans, subsidies, grants, demonstration
   71  projects, and direct assistance; educating persons concerning
   72  the Florida Building Code cooperative programs with local
   73  governments and the Federal Government; to establish inspection
   74  standards and data collection related to hurricane and windstorm
   75  loss and to fund the public hurricane loss-projection model; and
   76  other efforts to prevent or reduce losses or reduce the cost of
   77  rebuilding after a disaster. Of that amount:
   78         a. Forty percent shall be used to inspect and improve tie
   79  downs for mobile homes described in subsection (4).
   80         b. Ten percent shall be allocated to the Florida
   81  International University center dedicated to hurricane research.
   82  The center shall develop a preliminary work plan to eliminate
   83  the state and local barriers to upgrading existing mobile homes
   84  and communities, research and develop a program for the
   85  recycling of existing older mobile homes, and support programs
   86  of research and development relating to hurricane loss reduction
   87  devices and techniques for site-built residences. The center’s
   88  preliminary plan shall be reviewed by the advisory council
   89  established under subsection (6), which shall provide comments
   90  and recommendations to the center with respect to the plan. The
   91  center also shall consult with the division and assist the
   92  division with the report required under subsection (7).
   93         2.(b) Three million dollars in funds shall be used to
   94  retrofit existing facilities used as public hurricane shelters.
   95  Each year the division shall prioritize the use of these funds
   96  for projects included in the annual report of the Shelter
   97  Retrofit Report prepared in accordance with s. 252.385(3). The
   98  division must give funding priority to projects in regional
   99  planning council regions that have shelter deficits and to
  100  projects that maximize the use of state funds.
  101         (2)(a) Forty percent of the total appropriation in
  102  paragraph (1)(a) shall be used to inspect and improve tie-downs
  103  for mobile homes.
  104         (4)(b)1. The Manufactured Housing and Mobile Home
  105  Mitigation and Enhancement Program is established to. The
  106  program shall require the mitigation of damage to or the
  107  enhancement of homes for the areas of concern raised by the
  108  Department of Highway Safety and Motor Vehicles in the 2004-2005
  109  Hurricane Reports on the effects of the 2004 and 2005 hurricanes
  110  on manufactured and mobile homes in this state. The mitigation
  111  or enhancement must include, but need not be limited to,
  112  problems associated with weakened trusses, studs, and other
  113  structural components caused by wood rot or termite damage;
  114  site-built additions; or tie-down systems and may also address
  115  any other issues deemed appropriate by Tallahassee Community
  116  College, the Federation of Manufactured Home Owners of Florida,
  117  Inc., the Florida Manufactured Housing Association, and the
  118  Department of Highway Safety and Motor Vehicles. The program
  119  shall include an education and outreach component to ensure that
  120  owners of manufactured and mobile homes are aware of the
  121  benefits of participation.
  122         (a)2. The program shall be a grant program that ensures
  123  that entire manufactured home communities and mobile home parks
  124  may be improved wherever practicable. The moneys appropriated
  125  for this program shall be distributed directly to Tallahassee
  126  Community College for the uses set forth under this subsection.
  127         (b)3. Upon evidence of completion of the program, the
  128  Citizens Property Insurance Corporation shall grant, on a pro
  129  rata basis, actuarially reasonable discounts, credits, or other
  130  rate differentials or appropriate reductions in deductibles for
  131  the properties of owners of manufactured homes or mobile homes
  132  on which fixtures or construction techniques that have been
  133  demonstrated to reduce the amount of loss in a windstorm have
  134  been installed or implemented. The discount on the premium must
  135  be applied to subsequent renewal premium amounts. Premiums of
  136  the Citizens Property Insurance Corporation must reflect the
  137  location of the home and the fact that the home has been
  138  installed in compliance with building codes adopted after
  139  Hurricane Andrew. Rates resulting from the completion of the
  140  Manufactured Housing and Mobile Home Mitigation and Enhancement
  141  program are not considered competitive rates for the purposes of
  142  s. 627.351(6)(d)1. and 2.
  143         (c)4. On or before January 1 of each year, Tallahassee
  144  Community College shall provide a report of activities under
  145  this subsection to the Governor, the President of the Senate,
  146  and the Speaker of the House of Representatives. The report must
  147  set forth the number of homes that have taken advantage of the
  148  program, the types of enhancements and improvements made to the
  149  manufactured or mobile homes and attachments to such homes, and
  150  whether there has been an increase in availability of insurance
  151  products to owners of manufactured or mobile homes.
  152         (d) Tallahassee Community College shall develop the program
  153  programs set forth in this subsection in consultation with the
  154  Federation of Manufactured Home Owners of Florida, Inc., the
  155  Florida Manufactured Housing Association, and the Department of
  156  Highway Safety and Motor Vehicles. The moneys appropriated for
  157  the program must be appropriated the programs set forth in this
  158  subsection shall be distributed directly to Tallahassee
  159  Community College to be used as set forth in this subsection.
  160         (3) Of moneys provided to the division in paragraph (1)(a),
  161  10 percent shall be allocated to the Florida International
  162  University center dedicated to hurricane research. The center
  163  shall develop a preliminary work plan approved by the advisory
  164  council set forth in subsection (4) to eliminate the state and
  165  local barriers to upgrading existing mobile homes and
  166  communities, research and develop a program for the recycling of
  167  existing older mobile homes, and support programs of research
  168  and development relating to hurricane loss reduction devices and
  169  techniques for site-built residences. The State University
  170  System also shall consult with the division and assist the
  171  division with the report required under subsection (6).
  172         (4) Except for the programs set forth in subsection (3),
  173  the division shall develop the programs set forth in this
  174  section in consultation with an advisory council consisting of a
  175  representative designated by the Chief Financial Officer, a
  176  representative designated by the Florida Home Builders
  177  Association, a representative designated by the Florida
  178  Insurance Council, a representative designated by the Federation
  179  of Manufactured Home Owners, a representative designated by the
  180  Florida Association of Counties, a representative designated by
  181  the Florida Manufactured Housing Association, and a
  182  representative designated by the Florida Building Commission.
  183         (5) Moneys provided to the division under this section are
  184  intended to supplement, not supplant, the division’s other
  185  funding sources.
  186         (6) An advisory council shall be established to provide
  187  advice and assistance regarding the administration of the
  188  program. The advisory council shall consist of:
  189         (a) The director of the Office of Insurance Regulation, or
  190  his or her designee, who may not serve as chair of the
  191  committee;
  192         (b) The director of the Division of Emergency Management,
  193  or his or her designee;
  194         (c) The Insurance Consumer Advocate, or his or her
  195  designee;
  196         (d) Two representatives of authorized homeowners’ insurers,
  197  one of whom represents insurers having less than $25 million in
  198  surplus and is appointed by the President of the Senate, and one
  199  of whom represents insurers having more than $25 million in
  200  surplus and is appointed by the Speaker of the House of
  201  Representatives;
  202         (e) Two scientists, one of whom has experience and training
  203  in the sciences related to windstorm loss mitigation or the
  204  Florida Building Code and is appointed by the President of the
  205  Senate, and one of whom has a background in engineering and is
  206  appointed by the Speaker of the House of Representatives;
  207         (f) Two legislators, one appointed by the President of the
  208  Senate, and one appointed by the Speaker of the House of
  209  Representatives;
  210         (g) Two representatives of the reinsurance industry, one
  211  whom is a representative of a reinsurer and is appointed by the
  212  President of the Senate, and one of whom is a representative of
  213  a reinsurance intermediary and is appointed by the Speaker of
  214  the House of Representatives;
  215         (h) One scientist who has a background in modeling and is
  216  appointed by the division; and
  217         (i) One representative from the windstorm mitigation
  218  inspection industry who is appointed jointly by the President of
  219  the Senate and the Speaker of the House of Representatives.
  220         (7)(6) On January 1st of each year, the division shall
  221  provide a full report and accounting of activities under this
  222  section and an evaluation of such activities to the Speaker of
  223  the House of Representatives, the President of the Senate, and
  224  the Majority and Minority Leaders of the House of
  225  Representatives and the Senate. Upon completion of the report,
  226  the division shall deliver the report to the Office of Insurance
  227  Regulation. The Office of Insurance Regulation shall review the
  228  report and shall make such recommendations available to the
  229  insurance industry as the Office of Insurance Regulation deems
  230  appropriate. These recommendations may be used by insurers for
  231  potential discounts or rebates pursuant to s. 627.0629. The
  232  Office of Insurance Regulation shall make such recommendations
  233  within 1 year after receiving the report.
  234         (8)(7) This section expires is repealed June 30, 2021.
  235         Section 2. Section 627.711, Florida Statutes, is amended to
  236  read:
  237         627.711 Notice of premium discounts for hurricane loss
  238  mitigation; uniform mitigation verification inspection form.—
  239         (1) Using a form prescribed by the Division of Emergency
  240  Management, in consultation with the advisory council created
  241  under s. 215.559 Office of Insurance Regulation, the insurer
  242  shall clearly notify the applicant or policyholder of any
  243  personal lines residential property insurance policy, at the
  244  time of the issuance of the policy and at each renewal, of the
  245  availability and the range of each premium discount, credit,
  246  other rate differential, or reduction in deductibles, and
  247  combinations thereof of discounts, credits, rate differentials,
  248  or reductions in deductibles, for properties on which fixtures
  249  or construction techniques demonstrated to reduce the amount of
  250  loss in a windstorm can be or have been installed or
  251  implemented. The prescribed form must shall describe generally
  252  what actions the policyholders may be able to take to reduce
  253  their windstorm premium. The prescribed form and a list of such
  254  ranges approved by the Division of Emergency Management, in
  255  consultation with the advisory council, the office for each
  256  insurer licensed in the state and providing such discounts,
  257  credits, other rate differentials, or reductions in deductibles
  258  for properties described in this subsection shall be made
  259  available for electronic viewing and downloading download from
  260  the Department of Financial Services’ or the Office of Insurance
  261  Regulation’s Internet website. The Financial Services Commission
  262  may adopt rules to implement this subsection.
  263         (2)(a) The Division of Emergency Management, in
  264  consultation with the advisory council created under s. 215.559,
  265  Financial Services Commission shall develop by rule a uniform
  266  mitigation verification inspection form to that shall be used by
  267  all insurers when submitted by policyholders for the purpose of
  268  factoring discounts for wind insurance. In developing the form,
  269  the division the Commission shall seek input from insurance,
  270  construction, and home inspector and building code
  271  representatives. Further, The division commission shall also
  272  provide guidance as to the length of time the inspection results
  273  are valid.
  274         (a) An insurer shall accept as valid a uniform mitigation
  275  verification form signed by the following authorized mitigation
  276  inspectors who have completed at least 3 hours of hurricane
  277  mitigation training approved by the Construction Industry
  278  Licensing Board which includes hurricane mitigation techniques
  279  and compliance with the uniform mitigation verification form and
  280  completion of a proficiency examination:
  281         1. A home inspector licensed under s. 468.8314 who has
  282  completed at least 3 hours of hurricane mitigation training
  283  approved by the Construction Industry Licensing Board which
  284  includes hurricane mitigation techniques and compliance with the
  285  uniform mitigation verification form and completion of a
  286  proficiency exam;
  287         2. A building code inspector certified under s. 468.607;
  288         3. A general, building, or residential contractor licensed
  289  under s. 489.111;
  290         4. A professional engineer licensed under s. 471.015;
  291         5. A professional architect licensed under s. 481.213; or
  292         6. Any other individual or entity recognized by the insurer
  293  as possessing the necessary qualifications to properly complete
  294  a uniform mitigation verification form.
  295         (b) An insurer may, but is not required to, accept a form
  296  from any other person possessing qualifications and experience
  297  acceptable to the insurer.
  298         (3) A person who is authorized to sign a mitigation
  299  verification form must inspect the structures referenced by the
  300  form personally, not through employees or other persons, and
  301  must certify or attest to personal inspection of the structures
  302  referenced by the form. However, licensees under s. 471.015 or
  303  s. 489.111 may authorize a direct employee, who is not an
  304  independent contractor, and who possesses the requisite skill,
  305  knowledge and experience, to conduct a mitigation verification
  306  inspection. Insurers shall have the right to request and obtain
  307  information from the authorized mitigation inspector under s.
  308  471.015 or s. 489.111, regarding any authorized employee’s
  309  qualifications prior to accepting a mitigation verification form
  310  performed by an employee that is not licensed under s. 471.015
  311  or s. 489.111.
  312         (4) An authorized mitigation inspector that signs a uniform
  313  mitigation form, and a direct employee authorized to conduct
  314  mitigation verification inspections under paragraph (3), may not
  315  commit misconduct in performing hurricane mitigation inspections
  316  or in completing a uniform mitigation form that causes financial
  317  harm to a customer or their insurer; or that jeopardizes a
  318  customer’s health and safety. Misconduct occurs when an
  319  authorized mitigation inspector signs a uniform mitigation
  320  verification form that:
  321         (a) Falsely indicates that he or she personally inspected
  322  the structures referenced by the form;
  323         (b) Falsely indicates the existence of a feature that which
  324  entitles an insured to a mitigation discount that which the
  325  inspector knows does not exist or did not personally inspect;
  326         (c) Contains erroneous information due to the gross
  327  negligence of the inspector; or
  328         (d) Contains a pattern of demonstrably false information
  329  regarding the existence of mitigation features that could give
  330  an insured a false evaluation of the ability of the structure to
  331  withstand major damage from a hurricane endangering the safety
  332  of the insured’s life and property.
  333         (5) The licensing board of an authorized mitigation
  334  inspector that violates subsection (4) may commence disciplinary
  335  proceedings and impose administrative fines and other sanctions
  336  authorized under the authorized mitigation inspector’s licensing
  337  act. Authorized mitigation inspectors licensed under s. 471.015
  338  or s. 489.111 shall be directly liable for the acts of employees
  339  that violate subsection (4) as if the authorized mitigation
  340  inspector personally performed the inspection.
  341         (6) An insurer, person, or other entity that obtains
  342  evidence of fraud or evidence that an authorized mitigation
  343  inspector or an employee authorized to conduct mitigation
  344  verification inspections under paragraph (3) has made false
  345  statements in the completion of a mitigation inspection form
  346  shall file a report with the Division of Insurance Fraud, along
  347  with all of the evidence in its possession which that supports
  348  the allegation of fraud or falsity. An insurer, person, or other
  349  entity making the report is shall be immune from liability, in
  350  accordance with s. 626.989(4), for any statements made in the
  351  report, during the investigation, or in connection with the
  352  report. The Division of Insurance Fraud shall issue an
  353  investigative report if it finds that probable cause exists to
  354  believe that the authorized mitigation inspector, or an employee
  355  authorized to conduct mitigation verification inspections under
  356  paragraph (3), made intentionally false or fraudulent statements
  357  in the inspection form. Upon conclusion of the investigation and
  358  a finding of probable cause that a violation has occurred, the
  359  Division of Insurance Fraud shall send a copy of the
  360  investigative report to the office and a copy to the agency
  361  responsible for the professional licensure of the authorized
  362  mitigation inspector, whether or not a prosecutor takes action
  363  based upon the report.
  364         (7) An individual or entity who knowingly provides or
  365  utters a false or fraudulent mitigation verification form with
  366  the intent to obtain or receive a discount on an insurance
  367  premium to which the individual or entity is not entitled
  368  commits a misdemeanor of the first degree, punishable as
  369  provided in s. 775.082 or s. 775.083.
  370         (8) At its expense, the insurer may require that a uniform
  371  mitigation verification form provided by a policyholder, a
  372  policyholder’s agent, or an authorized mitigation inspector or
  373  inspection company be independently verified by an inspector, an
  374  inspection company, or an independent third-party quality
  375  assurance provider that which possesses a quality assurance
  376  program before accepting the uniform mitigation verification
  377  form as valid.
  378         Section 3. This act shall take effect July 1, 2012.

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