NU Online News Service, April 13, 12:10 p.m.EDT

A tenuous truce has been forged between federal and Floridaemergency-management officials over a bill passed by the Floridalegislature that could potentially leave 2.06 million propertyowners in the state without flood insurance just as the hurricaneseason nears its peak in July.

The agreement calls for Florida officials to clarify that thelegislation, if signed by the governor, won't allow newconstruction to proceed in flood plains without prior approval, asmandated under the National Flood Insurance Program.

The confrontation was created by a provision in H.B. 503, passedunanimously by the Florida legislature recently, that bars countiesand municipalities from requiring state or federal permits as aprecondition for processing development permits.

This provision would put Florida at odds with FEMArequirements.

In a letter to Florida Gov. Rick Scott sent March 30, FEMAregional administrator Major May noted that, “To participate in theNFIP, FEMA requires local communities to meet floodplain-managementstandards that include reviewing proposed development to assurenecessary permits have been received from all relevant governmentalagencies.”

The letter warned that the conflicting provisions “might impedethe state's ability to enforce required components of the NFIP'sflood-plain-management regulations and may jeopardize the state'svoluntary participation in the NFIP.”

The Florida director of the Heartland Institute, ChristianCámara, who brought the matter to NU Online's attention, says,“This is a clear example of how the lack of a private market forflood insurance has real consequences for the entire state.”

He adds, “I wouldn't blame Gov. [Rick] Scott for what looks likean almost certain veto. The sudden and unexpected suspension ofNFIP coverage would have disastrous consequences for a state likeFlorida.”

However, a FEMA spokesperson said today in a statement to NUOnline News, “The Florida Division of Emergency Management hasindicated that they are prepared to address the concerns related tocompliance with the minimum National Flood Insurance Programfloodplain-management regulations.”

The statement adds, “As long as this course ofaction can be effectively enforced, it will resolve the potentialconflict created by House Bill 503.”

The Florida-regulatory comment to FEMA was that, in its view,while the proposed law bars counties and municipalities fromrequiring any state or federal permits as a precondition forprocessing a development permit, there is separate language in thebill that allows local governments to require all other applicablepermits be secured before construction actually starts.

The state emergency management has also promised FEMA it willsend out a memo to counties and municipalities clarifying thislanguage.

But, R.J. Lehmann, deputy director of the Center on Finance,Insurance, and Real Estate at the Heartland Institute inWashington, cautioned, “It remains to be seen whether FEMA willaccept that response as sufficient to resolve the conflict in thelaw.”

The bill is awaiting the signature of Gov. Rick Scott, R. Hisstaff said the legislation has not been sent to him for action, andhe will determine whether he should sign it or veto within theperiod required by state law.

If signed by the governor, the law would go into effect July1.