TALLAHASSEE - It remains to be seen whether Floridians will see significant rollbacks of homeowners insurance rates, but big increases looming over those in the state-run Citizens pool would go away under legislation proposed by a Senate committee.

Lawmakers have gathered in Tallahassee in advance of a special session next week on the state's property insurance crisis.

A draft bill released Monday by the Senate Banking and Insurance Committee repeals a measure passed in the spring that would increase rates an average 56 percent for those covered by Citizens Property Insurance Corp.

Further, an annual Citizens' rate increase that averages 25 percent is also erased by the proposal, meaning those facing potential 80 percent rate increases might breathe a little easier.

After months of behind-the-scenes work, the release of the draft bill offers the first public glimpse of where the Legislature might be headed on one of its priority issues. Here's what the bill would do:

•Rate reversal. Repeal the portion of Senate Bill 1980 that required Citizens to charge actuarially sound rates. The measure was intended to level the playing field between the state-backed insurer and the private market, but Floridians were stunned to learn the impact - a 56 percent boost. As for the annual rate increase, the bill would offer refunds to those who already paid it.

•Catastrophe fund. Reduce the threshold for private insurers' access to the state-backed catastrophe fund, a backstop in case of a major event. Coverage would begin at about $3 billion in damages, down from $6 billion. And the bill would fatten the fund by offering maximum coverage of $19 billion, up from $16 billion. The state would require those who sign on for "cat fund" coverage, which is cheaper than reinsurance in the private market, to pass the savings to ratepayers.

•Second homes. Welcomes second-home policyholders back into Citizens. Previous legislation banished them to expensive surplus lines insurers.

•More would pay. Expands the assessment base in the case of deficits in Citizens. Holders of auto, medical malpractice and other insurance policies would be required to help bail out the fund should it run in the red, as opposed to only property insurance accounts.

•Panhandle exemption. Eliminate the "Panhandle exemption" to state building codes, bringing all of Florida up to generally accepted codes. It also calls for even tougher building standards on a voluntary basis, and the formation of a committee on mitigation, the hardening of homes.

•Sinkhole coverage. Limit sinkhole coverage to damage that renders at least 5 percent of a home's square footage uninhabitable.

Policyholders also would be offered options on deductibles and exclusions in their policies, such as coverage of contents.

Despite the clamor for lower insurance rates - Gov. Charlie Crist repeated his demand Monday - the provisions in the bill don't guarantee immediate or significant rollbacks. Private insurers would pass along savings from the cheaper cat fund reinsurance if they participated in the program. The effort to strengthen buildings and building codes could take years to show results.

Crist, however, remained optimistic.

"I really think we're going to have an opportunity to make a difference to people, and you know what I mean by that - I mean lower rates," Crist said.

"I'm encouraged by what I'm hearing from the Senate, and I'm encouraged by what I'm hearing out of the House. … I don't want to get expectations too high, but people deserve high hopes, and I have them," he said.

Sam Miller, executive vice president of the Florida Insurance Council, an industry group, said the strategy of loosening up the state catastrophe fund is "a legitimate policy decision for the state to make; there probably isn't any other way" to lower rates.

But he warned of a pay-now-or-pay-later scenario, when the state would be forced to sell billions in bonds or collect assessments on policyholders should the cat fund run a deficit.

Reporter Jerome R. Stockfisch can be reached at jstockfisch @tampatrib.com or (850) 222-8382.