Bill Text: NY A05396 | 2021-2022 | General Assembly | Introduced
Bill Title: Establishes the temporary hospitality and business relief fund; creates a credit for certain hospitality businesses affected by the COVID-19 pandemic; provides insurance coverage for loss or damage incurred by business interruption resulting from an official order to close.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-01-05 - referred to insurance [A05396 Detail]
Download: New_York-2021-A05396-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5396 2021-2022 Regular Sessions IN ASSEMBLY February 16, 2021 ___________ Introduced by M. of A. CUSICK, LUPARDO -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law and the state finance law, in relation to establishing the temporary hospitality and business relief fund; and to amend the insurance law, in relation to creating a credit for certain hospitality businesses affected by the COVID-19 pandemic; and providing for the repeal of certain provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The insurance law is amended by adding a new article 76-A 2 to read as follows: 3 ARTICLE 76-A 4 TEMPORARY HOSPITALITY AND BUSINESS RELIEF FUND 5 Section 7650. Temporary hospitality and business relief fund. 6 7650-a. Hospitality and business advisory council. 7 § 7650. Temporary hospitality and business relief fund. (a) For the 8 duration of the state disaster emergency declared pursuant to executive 9 order two hundred two of two thousand twenty, to secure our state from 10 the spread of COVID-19, there is hereby established a temporary hospi- 11 tality and business relief fund to provide for access to resources and 12 grants to those entities participating in broad form coverage issued 13 pursuant to subsection (g) of section five thousand four hundred two of 14 this chapter, that have been affected by business interruption resulting 15 in loss or damage incurred by an official order to close pursuant to 16 executive order two hundred two of two thousand twenty. 17 (b) The department of financial services shall establish the temporary 18 fund of up to one hundred million dollars appropriated through a 19 surcharge on all general certificate of liability insurance policies 20 underwritten within the state. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08872-01-1A. 5396 2 1 (c) The joint underwriting association shall establish rules and 2 procedures for dissemination of the monies of the fund to businesses and 3 organizations affected by the closure of their business. 4 § 7650-a. Hospitality and business advisory council. (a) To provide 5 the association with advice and assistance with the operations of the 6 temporary hospitality and business relief fund, an advisory council 7 shall be established, consisting of nine members appointed as follows: 8 three members shall be appointed by the governor, two members shall be 9 appointed by the temporary president of the senate, two members shall be 10 appointed by the speaker of the assembly, one member shall be appointed 11 by the minority leader of the senate, and one member shall be appointed 12 by the minority leader of the assembly. The superintendent, or his or 13 her designee, also may participate as an ex-officio member. Each member 14 of such advisory council shall serve at the pleasure of the official who 15 appointed such member. 16 (b) The association shall administer the temporary hospitality and 17 business relief fund. The association may, subject to approval of the 18 superintendent, adopt reasonable eligibility standards for participation 19 in the temporary hospitality and business relief fund. 20 (c) The advisory council shall provide recommendations to the associ- 21 ation for consideration by the board of directors. The board of direc- 22 tors shall promptly advise the superintendent, in writing, of any recom- 23 mendations received from the advisory council. 24 § 2. The state finance law is amended by adding a new section 99-ii to 25 read as follows: 26 § 99-ii. Temporary hospitality and business relief fund. 1. There is 27 hereby established in the joint custody of the comptroller and the 28 superintendent of financial services a fund to be known as the temporary 29 hospitality and business relief fund. 30 2. Such fund shall consist of moneys made available pursuant to the 31 provisions of article seventy-six-A of the insurance law and all other 32 monies credited or transferred thereto from any other fund or source 33 pursuant to law. 34 3. Moneys of such fund shall be expended only to provide for access to 35 resources and grants to those entities participating in broad form 36 coverage issued pursuant to subsection (g) of section five thousand four 37 hundred two of the insurance law, and those who have been affected by 38 business interruption resulting in loss or damage, which was incurred by 39 an official order to close pursuant to executive order two hundred two 40 of two thousand twenty. Nothing in this section shall prevent the state 41 from soliciting and receiving grants, gifts or bequests for the purposes 42 of such fund and depositing them into the fund according to law. 43 § 3. The insurance law is amended by adding a new section 3114 to 44 read as follows: 45 § 3114. Temporary hospitality and business relief credit. (a) In this 46 section, "covered period" means March seventh, two thousand twenty 47 until the date on which none of the provisions that closed or otherwise 48 restricted public or private businesses or places of public accommo- 49 dation, or required postponement or cancellation of all non-essential 50 gatherings of individuals of any size for any reason in executive orders 51 202.3, 202.4, 202.5, 202.6, 202.7, 202.8, 202.10, 202.11, 202.13 52 or 202.14, as extended by executive orders 202.28 and 202.31 and as 53 further extended by any future executive order, issued in response to 54 the COVID-19 pandemic continue to apply. 55 (b) For the duration of the covered period, businesses shall receive a 56 credit of up to seventy-five percent of the total amount paid by suchA. 5396 3 1 business for a certificate of general liability insurance policy issued 2 during the covered period if such business has closed or shut down its 3 operations due to any executive order issued during such covered period. 4 The credit shall be applied to any subsequent certificate of general 5 liability policy underwritten following the end of the covered period. 6 § 4. Subsections (c), (d) and (g) of section 5402 of the insurance 7 law, subsections (c) and (d) as amended by chapter 136 of the laws of 8 2008 and subsection (g) as amended by chapter 70 of the laws of 2019, 9 are amended to read as follows: 10 (c) The association shall, pursuant to the provisions of this article 11 and the plan of operation and with respect to fire insurance, extended 12 coverage, broad form coverage issued pursuant to subsection (g) of this 13 section, coverage for additional perils, including business interruption 14 insurance resulting in loss or damage incurred by an official order to 15 close pursuant to a public emergency, and homeowners insurance should 16 the same be made available through the association in accordance with a 17 determination of necessity made by the superintendent pursuant to 18 section five thousand four hundred twelve of this article on insurable 19 property, have the power on behalf of its members: 20 (i) to cause policies of insurance to be issued to applicants; 21 (ii) to assume reinsurance from its members; and 22 (iii) to cede reinsurance. 23 (d) The association shall adhere to a plan of operation, consistent 24 with the provisions of this article, approved by the superintendent 25 after consultation with affected individuals and organizations. The plan 26 shall provide for economical, fair and non-discriminatory administration 27 and prompt and efficient provision of fire, extended coverage, broad 28 form coverage pursuant to subsection (g) of this section, including 29 business interruption insurance resulting in loss or damage incurred by 30 an official order to close pursuant to a public emergency, and homeown- 31 ers insurance, when a determination of necessity is made by the super- 32 intendent pursuant to section five thousand four hundred twelve of this 33 article to promote orderly community development. It shall contain other 34 matters including, but not limited to, provision for necessary facili- 35 ties; management of the association; assessment of members to defray 36 losses and expenses; commission arrangements; reasonable and objective 37 underwriting standards; acceptance and cession of reinsurance and proce- 38 dures for determining amounts of insurance to be provided by the associ- 39 ation. The amounts shall not be in excess of one million five hundred 40 thousand dollars for the insurable real property or the tangible 41 personal property thereon. 42 (g) In addition to fire insurance, extended coverage, coverage for 43 additional perils, including business interruption insurance resulting 44 in loss or damage incurred by an official order to close pursuant to a 45 public emergency, and homeowners insurance should the same be made 46 available through the association in accordance with a determination of 47 necessity pursuant to section five thousand four hundred twelve of this 48 article, the association may offer broad form coverage to applicants 49 seeking to insure real property at fixed locations of this state, or the 50 tangible personal property located thereon. The association may offer 51 broad form coverage for a period of fifteen years beginning on June 52 thirtieth, two thousand eight. On or before October first, two thousand 53 seventeen the superintendent shall require the association to report to 54 him or her as to the number of policies written pursuant to this 55 subsection and paragraph three of subsection (f) of section five thou- 56 sand four hundred five of this article, and any other information theA. 5396 4 1 superintendent may require. On or before January first, two thousand 2 eighteen, the superintendent shall report to the governor and the legis- 3 lature regarding the number of policies issued pursuant to this section 4 and such paragraph and shall include recommendations as to the continua- 5 tion of such insurance offerings. 6 § 5. This act shall take effect immediately, provided, however, that 7 the provisions of sections one and two of this act shall expire 3 years 8 after such effective date when upon such date the provisions of such 9 sections shall be deemed repealed; and provided further that the 10 provisions of section three of this act shall be deemed to have been in 11 full force and effect on and after March 7, 2020 and shall apply to 12 insurance policies in force on that date.
