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S. 346
STATUS INFORMATION
General Bill
Sponsors: Senators Cleary, Bryant and Knotts
Document Path: l:\s-res\rec\003miti.dag.doc
Introduced in the Senate on January 25, 2007
Currently residing in the Senate Committee on Banking and Insurance
Summary: Hurricane Mitigation Program
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/25/2007 Senate Introduced and read first time SJ-11 1/25/2007 Senate Referred to Committee on Banking and Insurance SJ-11
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND CHAPTER 75, TITLE 38 OF THE 1976 CODE BY ADDING ARTICLE 15 TO ESTABLISH THE SOUTH CAROLINA HURRICANE DAMAGE MITIGATION PROGRAM WITHIN THE DEPARTMENT OF INSURANCE, TO ENCOURAGE HOME IMPROVEMENT THAT MITIGATES THE HOME'S HURRICANE VULNERABILITY, TO PROVIDE THAT THE PROGRAM MUST MAKE AVAILABLE A FREE HOME INSPECTION FOR THE PURPOSE OF ASCERTAINING WHAT IMPROVEMENT SHOULD BE MADE, TO PROVIDE THAT A HOMEOWNER WHO MAKES A QUALIFIED IMPROVEMENT MAY RECEIVE A GRANT MATCHED ON A DOLLAR FOR DOLLAR BASIS NOT TO EXCEED FIVE THOUSAND DOLLARS, AND TO PROVIDE FOR AN ADVISORY COMMITTEE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 75, Title 38 of the 1976 Code is amended by adding:
Section 38-75-1500. There is established within the Department of Insurance the South Carolina Hurricane Damage Mitigation program. Subject to the advice and consent of the Senate, the Director of Insurance shall appoint an individual with prior executive experience in the private sector in the area of insurance, business, or construction to administer the program.
Section 38-75-1510. (A) The program must provide for a free home-retrofit inspection of site-built, residential property, including single-family, two-family, three-family, or four-family residential units, to determine what mitigation measures are needed and what improvement to existing residential properties are needed to reduce the property's vulnerability to hurricane damage. The Department of Insurance shall solicit proposals from wind certification entities to provide to homeowners a wind certification and hurricane mitigation inspection at no cost. Using the program's funds, the department shall establish a procedure to compensate an inspector. The inspection provided to homeowners, at a minimum, must include:
(1) a home inspection and report that summarize the results and identify corrective actions a homeowner may take to mitigate hurricane damage; and
(2) a range of cost estimates regarding the mitigation features; and
(3) insurer-specific information regarding premium discounts correlated to recommended a mitigation feature identified by the inspection; and
(4) a hurricane resistance rating scale specifying the home's current as well as projected wind resistance capability.
(B) To qualify as a provider of wind certification and hurricane mitigation inspections, an entity must:
(1) use a wind certification and hurricane mitigation inspector who:
(i) has prior experience in residential construction or inspection and has received specialized training in hurricane mitigation procedures; and
(ii) has been certified, in a manner satisfactory to the department, to conduct the inspection.
(2) provide a quality assurance program including a re-inspection component.
Section 38-75-1520. (A) The program must provide for a financial grant to encourage single-family, site-built, owner-occupied, residential property owners to retrofit their properties to make them less vulnerable to hurricane damage. To be eligible for a grant, a residential property must:
(1) be a legal residence and qualify for four percent assessment; and
(2) be a dwelling with an insured value of $500,000 or less; and
(3) have undergone an acceptable wind certification and hurricane mitigation inspection.
A residential property which is part of a multi-family residential unit may receive a grant only if all homeowners participate and the total number of units does not exceed four.
(B) Each grant must be matched by the homeowner and the grant must not exceed $5,000.
(C) The program must create a process by which a mitigation contractor agrees to participate and seek reimbursement from the State. The homeowner may select the contractor from a list of participating contractors. All mitigation must be based upon the securing of all required local permits and inspections. Mitigation projects are subject to random re-inspection, and must include at least ten percent of all projects.
(D) A grant may be used for the following improvements:
(1) Roof deck attachment;
(2) Secondary water barrier;
(3) Roof covering;
(4) Brace gable ends;
(5) Reinforce roof-to-wall connections;
(6) Opening protection; and
(7) Exterior doors, including garage doors.
(E) 'Persons and families of low income' as defined in Section 31-13-170(O), who otherwise meet the requirements of this section are eligible for a grant of up to $5,000 and are not required to provide a matching amount to receive the grant. The grant must be used to retrofit a single-family, site-built, owner-occupied, residential property in order to make the property less vulnerable to hurricane damage.
Section 38-75-1530. The program administrator shall use his best efforts to obtain grants or funds from the federal government to supplement the financial resources of the program.
Section 38-75-1540. The program may use multimedia public education, awareness, and advertising efforts designed to specifically address mitigation techniques and to support ongoing consumer resources and referral services.
Section 38-75-1550. There is created an advisory council to provide advice and assistance to the program administrator with regard to his or her administration of the program. The advisory council must consist of:
(A) a representative of lending institutions, selected by the Director of Insurance from a list of at least three persons recommended by the South Carolina Bankers Association;
(B) a representative of an insurer writing coastal property insurance in South Carolina, selected by the Director of Insurance;
(C) a representative of home builders, selected by the Director of Insurance from a list of at least three persons recommended by the Home Builders Association of South Carolina;
(D) two members of the House of Representatives who shall serve ex-officio, selected by the Speaker of the House of Representatives;
(E) two members of the Senate who shall serve ex officio, selected by the President of Pro Tempore of the Senate;
(F) The Chief Executive Officer of the Federal Alliance for Safe Homes, Inc., or his or her designee;
(G) a representative from Clemson University involved with wind engineering;
(H) a representative of the Federal Emergency Management Association; and
(I) an at-large representative appointed by the Governor.
Members shall serve for terms of two years and shall receive no per diem, mileage, or subsistence. Vacancies must be filled in the same manner as the original appointment.
Within thirty days after its appointment, the advisory committee shall meet at the call of the Director of Insurance. The advisory committee shall elect from its members a chairman and a secretary and shall adopt rules not inconsistent with this article. Meetings may be called by the chairman or at the request of three or more members of the advisory committee. All members shall be notified by the chairman of the time and place of the meeting at least seven days in advance of the meeting. All meetings must be open to the public. At least two-thirds vote of the members in attendance at the meeting is required for the advisory committee to make an official recommendation.
Section 38-75-1060. The department may promulgate regulations necessary to implement the provisions of this section. The department must establish by regulation priorities for awarding grants pursuant to this section. The priorities must be based on objective criteria that focus on reducing the State's probable maximum loss from hurricanes.
Section 38-75-1070. This article does not create an entitlement for property owners or obligate the State in any way to fund the inspection or retrofitting of residential property in this State. Implementation of this program is subject the General Assembly providing funds in the annual general appropriations act."
SECTION 2. This act takes effect upon approval by the Governor.
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