September 24, 2020
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Florida Senate - 2008 (Reformatted) SB 754

By Senator Baker

20-02534-08 2008754__

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A bill to be entitled

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An act relating to hurricane preparedness and insurance;

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creating the Citizens Property Insurance Corporation

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Mission Review Task Force; providing purposes; requiring a

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report; providing report requirements; providing for

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appointment of members; providing responsibilities;

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specifying service without compensation; providing for

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reimbursement of per diem and travel expenses; providing

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meeting requirements; requiring the corporation to assist

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the task force; providing for the expiration of the task

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force; requiring the Chief Financial Officer to provide a

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report on the economic impact on the state of certain

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hurricanes; providing report requirements; amending s.

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553.73, F.S.; limiting the authority of the Florida

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Building Commission to modify certain codes and standards

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under certain circumstances; requiring counties and

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municipalities to enforce certain windborne debris

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protections and structural guidelines; requiring the

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commission to amend the Florida Building Code to require

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application of certain standards and eliminate certain

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exceptions; prohibiting amendment of the Florida Building

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Code to diminish certain requirements; authorizing the

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commission to amend the code to enhance certain

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requirements; amending s. 10, ch. 2007-1, Laws of Florida;

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revising reporting requirements for the commission's

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voluntary "Code Plus" guidelines; providing an

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appropriation; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1. (1) The Citizens Property Insurance Corporation

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Mission Review Task Force is created to analyze and compile

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available data and to develop a report setting forth the

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statutory and operational changes needed to return Citizens

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Property Insurance Corporation to its former role as a state-

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created, noncompetitive residual market mechanism that provides

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property insurance coverage to risks that are otherwise entitled

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but unable to obtain such coverage in the private insurance

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market. The task force shall submit a report to the Governor, the

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President of the Senate, and the Speaker of the House of

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Representatives by January 31, 2009. At a minimum, the task force

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shall analyze and evaluate relevant and applicable information

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and data and develop recommendations concerning:

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     (a) The nature of Citizens Property Insurance Corporation's

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role in providing property insurance coverage only if such

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coverage is not available from private insurers.

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     (b) The ability of the admitted market to offer policies to

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those consumers formerly insured through Citizens Property

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Insurance Corporation. This consideration shall include, but not

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be limited to, the availability of private market reinsurance and

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coverage through the Florida Hurricane Catastrophe Fund, the

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general adequacy of the admitted market's current rates, and the

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capacity of the industry to offer policies to former Citizens

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Property Insurance Corporation policyholders within existing

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writing ratio limitations.

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     (c) The appropriate relationship of rates charged by

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Citizens Property Insurance Corporation to rates charged by

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private insurers, with due consideration for the corporation's

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role as a noncompetitive residual market mechanism.

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     (d) The relationships between the exposure of Citizens

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Property Insurance Corporation to catastrophic hurricane losses,

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the corporation's history of purchasing inadequate or no

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reinsurance coverage, and the corporation's lack of adequate

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capital to meet its potential claim obligations without incurring

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large deficits.

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     (e) The adverse effects on the people and the economy of

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this state of the large, multiyear deficit assessments by

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Citizens Property Insurance Corporation which may be levied on

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businesses and households in this state, and steps that can be

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taken to reduce those effects.

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     (f) The operational implications of the variation in the

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number of policies in force over time in Citizens Property

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Insurance Corporation and the merits of outsourcing some or all

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of its operational responsibilities.

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     (g) Changes in the mission and operations of Citizens

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Property Insurance Corporation to reduce or eliminate any adverse

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effect such mission and operations may be having on the promotion

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of sound and economic growth and development of the coastal areas

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of this state.

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     (2) The task force shall be composed of 17 members as

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follows:

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     (a) Three members appointed by the Speaker of the House of

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Representatives.

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     (b) Three members appointed by the President of the Senate.

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     (c) Three members appointed by the Governor who are not

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employed by or professionally affiliated with an insurance

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company or a subsidiary of an insurance company.

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     (d) Eight members appointed as representatives of private

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insurance companies as follows:

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     1. Two members representing two separate insurance

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companies in this state that each provide at least 300,000

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property insurance policies statewide at the time of the creation

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of the task force.

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     2. Two members representing two separate insurance

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companies in this state that each provide at least 100,000 but no

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more than 299,000 property insurance policies statewide at the

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time of the creation of the task force.

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     3. Two members representing two separate insurance

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companies in this state that each provide fewer than 100,000

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property insurance policies statewide at the time of the creation

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of the task force.

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     4. Two members appointed by the Chief Financial Officer

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representing insurance agents in this state, at least one of whom

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represents the largest property and casualty insurance agent's

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association in this state.

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Of each pair of members appointed under subparagraphs 1., 2., and

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3., one shall be appointed by the President of the Senate and one

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by the Speaker of the House of Representatives.

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     (3) The task force shall conduct research, hold public

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meetings, receive testimony, employ consultants and

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administrative staff, and undertake other activities determined

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by its members to be necessary to complete its responsibilities.

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Citizens Property Insurance Corporation shall have appropriate

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senior staff attend task force meetings, shall respond to

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requests for testimony and data by the task force, and shall

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otherwise cooperate with the task force.

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     (4) A member of the task force may not delegate his or her

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attendance or voting power to a designee.

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     (5) Members of the task force shall serve without

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compensation but are entitled to receive reimbursement for travel

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and per diem as provided in s. 112.061, Florida Statutes.

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     (6) The appointments to the task force must be completed

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within 30 calendar days after the effective date of this act, and

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the task force must hold its initial meeting within 1 month after

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appointment of all members. The task force shall expire no later

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than 60 calendar days after submission of the report required in

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subsection (1).

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     Section 2. The Chief Financial Officer shall provide a

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report on the economic impact on the state of a 1-in-250-year

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hurricane to the Governor, the President of the Senate, and the

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Speaker of the House of Representatives by March 1 of each year.

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The report shall include an estimate of the short-term and long-

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term fiscal impacts of such a storm on Citizens Property

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Insurance Corporation, the Florida Hurricane Catastrophe Fund,

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the private insurance and reinsurance markets, the state economy,

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and the state debt. The report may also include recommendations

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by the Chief Financial Officer for preparing for such a hurricane

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and reducing the economic impact of such a hurricane on the

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state. In preparing the analysis, the Chief Financial Officer

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shall coordinate with and obtain data from the Office of

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Insurance Regulation, Citizens Property Insurance Corporation,

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the Florida Hurricane Catastrophe Fund, the Florida Commission on

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Hurricane Loss Projection Methodology, the State Board of

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Administration, the Office of Economic and Demographic Research,

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and other state agencies.

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     Section 3.  Subsection (3) of section 553.73, Florida

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Statutes, is amended, and subsection (13) is added to that

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section, to read:

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     553.73  Florida Building Code.--

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     (3)  The commission shall select from available national or

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international model building codes, or other available building

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codes and standards currently recognized by the laws of this

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state, to form the foundation for the Florida Building Code. The

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commission may modify the selected model codes and standards as

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needed to accommodate the specific needs of this state, but only

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to the extent that any such modifications strengthen the

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structural integrity of buildings constructed in compliance with

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provisions of the Florida Building Code relating to wind

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protection. Standards or criteria referenced by the selected

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model codes shall be similarly incorporated by reference. If a

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referenced standard or criterion requires amplification or

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modification to be appropriate for use in this state, only the

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amplification or modification shall be specifically set forth in

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the Florida Building Code. The Florida Building Commission may

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approve technical amendments to the code, subject to the

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requirements of subsections (7) and (8), after the amendments

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have been subject to the following conditions:

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     (a)  The proposed amendment has been published on the

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commission's website for a minimum of 45 days and all the

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associated documentation has been made available to any

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interested party before any consideration by any Technical

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Advisory Committee;

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     (b)  In order for a Technical Advisory Committee to make a

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favorable recommendation to the commission, the proposal must

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receive a three-fourths vote of the members present at the

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Technical Advisory Committee meeting and at least half of the

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regular members must be present in order to conduct a meeting;

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     (c)  After Technical Advisory Committee consideration and a

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recommendation for approval of any proposed amendment, the

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proposal must be published on the commission's website for not

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less than 45 days before any consideration by the commission; and

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     (d)  Any proposal may be modified by the commission based on

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public testimony and evidence from a public hearing held in

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accordance with chapter 120.

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The commission shall incorporate within sections of the Florida

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Building Code provisions which address regional and local

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concerns and variations, but only to the extent that any such

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modifications strengthen the structural integrity of buildings

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constructed in compliance with provisions of the Florida Building

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Code relating to wind protection. The commission shall make every

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effort to minimize conflicts between the Florida Building Code,

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the Florida Fire Prevention Code, and the Life Safety Code.

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     (13) Each county and municipality in this state shall, at a

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minimum, enforce the windborne debris protections and structural

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guidelines adopted by the American Society of Civil Engineers in

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the standard commonly referred to as ASCE 7-02. Notwithstanding

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s. 109, chapter 2000-141, Laws of Florida, the Florida Building

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Commission shall amend the Florida Building Code to require

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application of ASCE 7-02 throughout the state and to eliminate

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all exceptions providing less stringent requirements. Provisions

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of the Florida Building Code, including those contained in

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referenced standards and criteria, relating to wind resistance

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shall not be amended pursuant to this subsection to diminish

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construction requirements; however, the commission may amend the

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provisions to enhance those construction requirements.

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     Section 4.  Subsection (2) of section (10) of chapter 2007-

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1, Laws of Florida, is amended to read:

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     Section 10.

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     (2)  The Florida Building Commission shall develop voluntary

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"Code Plus" guidelines for increasing the hurricane resistance of

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buildings. The guidelines may be modeled on the requirements for

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the High Velocity Hurricane Zone and must identify products,

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systems, and methods of construction that the commission

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anticipates could result in stronger construction. The commission

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shall include these guidelines in its report to the President of

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the Senate and the Speaker of the House of Representatives during

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the 2009 Regular Session of the 2008 Legislature.

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     Section 5. For the 2008-2009 fiscal year, the nonrecurring

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sum of $250,000 is appropriated from the General Revenue Fund for

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the purpose of implementing the provisions of this act relating

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to the Citizens Property Insurance Corporation Mission Review

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Task Force.

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     Section 6.  This act shall take effect upon becoming a law.

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

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