1Establishing the Flood Insurance Premium Assistance Program to
2provide premium assistance to eligible Pennsylvania residents
3who purchase flood insurance; and imposing powers and duties
4on the Insurance Department.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Short title.

8This act shall be known and may be cited as the Flood
9Insurance Premium Assistance Program Act.

10Section 2. Legislative findings.

11The General Assembly finds and declares as follows:

12(1) Pennsylvania is the most flood-prone state in the
13nation.

14(2) Many communities in this Commonwealth frequently are
15subject to flooding which adversely affects means of
16livelihood and economic resources and causes significant
17damage and disruption in the life of the community but which
18is not often of sufficient magnitude to qualify for Federal
19disaster assistance programs.

1(3) The Commonwealth needs a proactive program to
2protect its citizens against the economic damages incurred by
3continued flooding, while maintaining its ability to obtain
4Federal disaster assistance in the future.

5Section 3. Definitions.

6The following words and phrases when used in this act shall
7have the meanings given to them in this section unless the
8context clearly indicates otherwise:

9"Department." The Insurance Department of the Commonwealth.

10"FEMA." The Federal Emergency Management Agency, which 
11administers the National Flood Insurance Program.

12"Net book premium." The total premium amount for all 
13eligible flood insurance policies in this Commonwealth.

14"NFIP." The National Flood Insurance Program, created by 
15Congress in response to the rising cost of taxpayer-funded 
16disaster relief for flood victims to provide flood insurance to 
17anyone living in a participating community that adheres to NFIP 
18floodplain management and development regulations.

19"Program." The Flood Insurance Premium Assistance Program 
20established in section 4.

21"Providers." National Flood Insurance Program-approved 
22insurance providers who sell National Flood Insurance Program 
23flood insurance in this Commonwealth.

24Section 4. Flood Insurance Premium Assistance Program.

25There is established under the jurisdiction of the Insurance
26Department the Flood Insurance Premium Assistance Program to
27assist any eligible Pennsylvania resident or business purchasing
28flood insurance with 15% of the cost of premiums for that flood
29insurance in years in which funds are appropriated or made
30available to the department to administer the program.

1Section 5. Eligibility.

2(a) General rule.--Any Pennsylvania resident or business is
3eligible to participate in the program if either:

4(1) Has purchased flood insurance prior to the initial
5year of the program or purchases flood insurance during or
6after the initial year of the program.

7(2) Lives in a community participating in the National
8Flood Insurance Program.

9(b) Termination of coverage.--

10(1) Subject to the provisions of paragraphs (2) and (3),
11if a participant in the program drops flood insurance
12coverage on the covered property where the participant
13resides or conducts business, that participant will not be
14eligible for future participation in the program for coverage
15on the same property as long as the participant continues to
16reside at that property or conduct business at that property.

17(2) If a participant moves back to or conducts business
18on a property for which that participant had dropped coverage
19at a prior date, the participant shall be eligible for the
2015% premium assistance under the program upon purchasing
21flood insurance for that property after the expiration of one
22calendar year.

23(3) If a participant purchases a new policy for a
24different property, the participant shall be eligible for a
2515% premium discount for the property upon the purchase of
26flood insurance for the property.

27Section 6. Assistance when program not funded.

28If an eligible Pennsylvania resident or business purchases
29flood insurance after the initial year of enactment but in a
30year in which the program is not funded and administered, the

1participant shall be eligible for a discount in the amount of
215% of the premium beginning with the year in which the program
3is reenacted.

4Section 7. Mitigation.

5If a participant resides at a property determined by the 
6Director of FEMA to be a severe repetitive loss property as 
7defined under section 1361A of the National Flood Insurance Act 
8of 1968 (Public Law 90-448, 42 U.S.C. § 4102a), the participant 
9shall accept mitigation offers provided under that act or be 
10disqualified from the Flood Insurance Premium Assistance Program 
11upon the refusal to do so.

12Section 8. Administration of program.

13The program shall be administered by the Insurance
14Department, which shall promulgate the necessary rules and
15regulations to implement and administer the program. The
16department shall:

17(1) Enter into a contract with FEMA and NFIP-approved
18insurance providers to administer the program in an agreed-
19upon way. The department is authorized to draft and enter
20into agreements with Federal agencies, other Commonwealth
21agencies and private entities as necessary to implement the
22program.

23(2) Publicize the program through its flood insurance
24consumer education plan. This shall include, but not be
25limited to, informing consumers when the program will be
26available, when the program will be discontinued due to
27unavailability of funding and/or when the program will be
28reenacted.

29(3) In years in which funding has been made available to
30the department for the program, notify FEMA and insurance

1providers of the department's intent to provide premium
2assistance for the following calendar year and to remit
3payment to FEMA in a projected amount equal to 15% of the net
4book premium to be discounted for all eligible policies in
5effect between January 1 and December 31 of the upcoming
6calendar year.

7(4) In years in which insufficient funding is made
8available to administer the program for the next calendar
9year, notify FEMA and insurance providers by November 1 of
10the department's intent to discontinue premium assistance for
11the following calendar year.

12(5) On or before December 31 of years preceding premium
13assistance, remit payment to FEMA in a projected amount equal
14to 15% of the net book premium for all eligible policies to
15be taken out in the following calendar year.

16(6) Develop an agreement and procedure with FEMA and
17insurance providers to address instances of remittance of
18insufficient funding needed by FEMA to provide premium
19assistance for any given year. This may include, but is not
20limited to, establishing extra payment dates to provide
21supplemental funding to FEMA to cover any instances of
22insufficient funding or discontinuing the program for the
23following calendar year and using those appropriated funds to
24compensate FEMA for funding owed.

25(7) No later than March 1 of each year, submit a report
26to the General Assembly detailing its plan, its
27implementation and the progress of the program. The report
28shall include the number of Commonwealth residents who have
29purchased flood insurance during the preceding year and
30comparisons to prior years.

1Section 9. Funding.

2The program shall be administered based on nonlapsing funds
3appropriated to the Insurance Department by the General Assembly
4to provide payment to FEMA in an amount equal to 15% of the cost
5of insurance premiums for any eligible Pennsylvania resident or
6business that purchases a flood insurance policy in years in
7which funds are appropriated or made available to the department
8for premium assistance.

9Section 10. Implementation.

10The program shall be implemented by the department in the
11first full calendar year that occurs after funding is made
12available, but no sooner than 90 days after the effective date
13of this act.

14Section 20. Effective date.

15This act shall take effect in 90 days.