Florida Senate - 2022 CS for SB 578 By the Committee on Banking and Insurance; and Senator Hooper 597-01969-22 2022578c1 1 A bill to be entitled 2 An act relating to hurricane impact programs; amending 3 s. 215.555, F.S.; providing an annual appropriation 4 from the Florida Hurricane Catastrophe Fund to fund 5 specified research; specifying requirements and 6 exceptions; amending s. 215.559, F.S.; revising the 7 use of certain funds from the Florida Hurricane 8 Catastrophe Fund to also include construction of 9 certain facilities; revising the title of a certain 10 annual report; deleting construction relating to 11 Citizens Property Insurance Corporation coverage 12 rates; delaying the future repeal of the Hurricane 13 Loss Mitigation Program; providing an effective date. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1.Paragraph (g) is added to subsection (7) of 18 section 215.555, Florida Statutes, to read: 19 215.555Florida Hurricane Catastrophe Fund. 20 (7)ADDITIONAL POWERS AND DUTIES. 21 (g)Each fiscal year, the Legislature shall appropriate 22 from the investment income of the Florida Hurricane Catastrophe 23 Fund $2 million based upon the most recent fiscal year-end 24 audited financial statements to the University of South Florida 25 School of Risk Management and Insurance for the purpose of 26 providing research into the property insurance market of this 27 state. The school shall use publicly available data to analyze 28 trends regarding, and to develop recommended policies and best 29 practices for reducing, property insurance rates, Citizens 30 Property Insurance Corporation policyholder counts, and property 31 insurance litigation frequency. The school shall also analyze to 32 what extent hurricane losses and rebuilding costs influence 33 these trends. Moneys shall first be available for appropriation 34 under this paragraph in fiscal year 2022-2023. The investment 35 income may not be available for appropriation under this 36 paragraph if the State Board of Administration finds that an 37 appropriation of investment income from the fund would 38 jeopardize the actuarial soundness of the fund. 39 Section 2.Paragraph (b) of subsection (1), paragraph (b) 40 of subsection (2), and subsection (7) of section 215.559, 41 Florida Statutes, are amended to read: 42 215.559Hurricane Loss Mitigation Program.A Hurricane Loss 43 Mitigation Program is established in the Division of Emergency 44 Management. 45 (1)The Legislature shall annually appropriate $10 million 46 of the moneys authorized for appropriation under s. 47 215.555(7)(c) from the Florida Hurricane Catastrophe Fund to the 48 division for the purposes set forth in this section. Of the 49 amount: 50 (b)Three million dollars in funds shall be used to 51 construct or retrofit existing facilities used as public 52 hurricane shelters. Each year the division shall prioritize the 53 use of these funds for projects included in the annual report of 54 the Shelter Development Retrofit Report prepared in accordance 55 with s. 252.385(3). The division must give funding priority to 56 projects in regional planning council regions that have shelter 57 deficits and to projects that maximize the use of state funds. 58 (2) 59 (b)1.The Manufactured Housing and Mobile Home Mitigation 60 and Enhancement Program is established. The program shall 61 require the mitigation of damage to or the enhancement of homes 62 for the areas of concern raised by the Department of Highway 63 Safety and Motor Vehicles in the 2004-2005 Hurricane Reports on 64 the effects of the 2004 and 2005 hurricanes on manufactured and 65 mobile homes in this state. The mitigation or enhancement must 66 include, but need not be limited to, problems associated with 67 weakened trusses, studs, and other structural components caused 68 by wood rot or termite damage; site-built additions; or tie-down 69 systems and may also address any other issues deemed appropriate 70 by Tallahassee Community College, the Federation of Manufactured 71 Home Owners of Florida, Inc., the Florida Manufactured Housing 72 Association, and the Department of Highway Safety and Motor 73 Vehicles. The program shall include an education and outreach 74 component to ensure that owners of manufactured and mobile homes 75 are aware of the benefits of participation. 76 2.The program shall be a grant program that ensures that 77 entire manufactured home communities and mobile home parks may 78 be improved wherever practicable. The moneys appropriated for 79 this program shall be distributed directly to Tallahassee 80 Community College for the uses set forth under this subsection. 81 3.Upon evidence of completion of the program, the Citizens 82 Property Insurance Corporation shall grant, on a pro rata basis, 83 actuarially reasonable discounts, credits, or other rate 84 differentials or appropriate reductions in deductibles for the 85 properties of owners of manufactured homes or mobile homes on 86 which fixtures or construction techniques that have been 87 demonstrated to reduce the amount of loss in a windstorm have 88 been installed or implemented. The discount on the premium must 89 be applied to subsequent renewal premium amounts. Premiums of 90 the Citizens Property Insurance Corporation must reflect the 91 location of the home and the fact that the home has been 92 installed in compliance with building codes adopted after 93 Hurricane Andrew. Rates resulting from the completion of the 94 Manufactured Housing and Mobile Home Mitigation and Enhancement 95 Program are not considered competitive rates for the purposes of 96 s. 627.351(6)(d)1. and 2. 97 4.On or before January 1 of each year, Tallahassee 98 Community College shall provide a report of activities under 99 this subsection to the Governor, the President of the Senate, 100 and the Speaker of the House of Representatives. The report must 101 set forth the number of homes that have taken advantage of the 102 program, the types of enhancements and improvements made to the 103 manufactured or mobile homes and attachments to such homes, and 104 whether there has been an increase in availability of insurance 105 products to owners of manufactured or mobile homes. 106 107 Tallahassee Community College shall develop the programs set 108 forth in this subsection in consultation with the Federation of 109 Manufactured Home Owners of Florida, Inc., the Florida 110 Manufactured Housing Association, and the Department of Highway 111 Safety and Motor Vehicles. The moneys appropriated for the 112 programs set forth in this subsection shall be distributed 113 directly to Tallahassee Community College to be used as set 114 forth in this subsection. 115 (7)This section is repealed June 30, 2032 2022. 116 Section 3.This act shall take effect upon becoming a law.