H2386B3602A05887 NAD:CDM 05/26/20 #90 A05887
AMENDMENTS TO HOUSE BILL NO. 2386
Sponsor: REPRESENTATIVE PEIFER
Printer's No. 3602
Amend Bill, page 1, lines 1 and 2, by striking out all of
said lines and inserting
Providing for business interruption insurance assistance and for
powers and duties of the Department of Community and Economic
Development.
Amend Bill, page 1, lines 5 through 16; page 2, lines 1
through 30; page 3, lines 1 through 23; by striking out all of
said lines on said pages and inserting
Section 1. Short title.
This act shall be known and may be cited as the Business
Interruption Insurance Assistance Act.
Section 2. Purpose.
The purpose of this act is to establish a program within the
Department of Community and Economic Development to encourage
businesses to acquire business interruption insurance coverage
from an insurance provider for assistance with expenses in the
event a business is impacted by a peril and to provide business
interruption insurance financial assistance, subject to the
availability of funding, to eligible businesses for business
interruption insurance premium costs.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Business." An individual, corporation, limited liability
company, limited liability partnership, partnership,
association, joint stock company, trust, unincorporated
organization, sole proprietor, similar entity or combination of
the foregoing acting in concert.
"Business interruption insurance." An insurance policy
issued by stock fire, stock marine, stock fire and marine or
stock casualty insurance company as incorporated under section
202(c), (d), (e), (f) or (g) of the act of May 17, 1921
(P.L.682, No.284), known as The Insurance Company Law of 1921,
to assist with damages incurred by a business.
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"Department." The Department of Community and Economic
Development of the Commonwealth.
Section 4. Business Interruption Insurance Assistance Program.
(a) Establishment.--The department, in consultation with the
Insurance Department, shall establish a program to educate
businesses on the benefits of business interruption insurance
coverage. The Business Interruption Insurance Assistance Program
shall promote the purchase of business interruption insurance
and may provide financial assistance to eligible businesses to
partially offset business interruption insurance premiums. The
provision of financial assistance shall be subject to the
availability of funding.
(b) Powers and duties of department.--The department shall
have the following powers and duties:
(1) The department shall administer the Business
Interruption Insurance Assistance Program established under
subsection (a) and shall exercise all administrative powers
necessary to effectuate the purposes of this section,
including, but not limited to, drafting and entering into
agreements necessary to implement this section, establishing
eligibility criteria for business interruption insurance
financial assistance and developing an application and
application procedure for business interruption insurance
financial assistance, including time frames for the
submission, review and approval of applications.
(2) The department may draft and enter into agreements
with Federal agencies, other State agencies and private
entities as necessary to implement this section.
(3) The department, in consultation with the Insurance
Department, shall issue guidelines to implement this section.
(c) Business interruption insurance financial assistance.--
The department may provide business interruption insurance
financial assistance to eligible businesses in an amount up to
10% of the cost of the insurance premiums in years in which
funds are appropriated or made available to the department. If
sufficient funds are not available to provide for up to 10% of
the cost of the insurance premiums, the department shall prorate
the available funds among all the businesses who applied for and
received business interruption insurance for the fiscal year.
(d) Funding.--The department is authorized to use funds
specifically appropriated by the General Assembly for the
purposes of this section and any funds, contributions or
payments which may be made available to the department by the
Federal Government, another State agency or any public or
private source for the purpose of implementing this section.
(e) Report.--The department shall annually submit a report
that provides details of the department's expenditures,
including administrative expenditures, under this section to the
chairperson and minority chairperson of the Community, Economic
and Recreational Development Committee of the Senate, the
chairperson and minority chairperson of the Banking and
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Insurance Committee of the Senate, the chairperson and minority
chairperson of the Commerce Committee of the House of
Representatives and the chairperson and minority chairperson of
the Insurance Committee of the House of Representatives.
Section 5. Effective date.
This act shall take effect immediately.
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