S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5396
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             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:
 
   Section 1. The insurance law is amended by adding a new  article  76-A
 to read as follows:
                               ARTICLE 76-A
              TEMPORARY HOSPITALITY AND BUSINESS RELIEF FUND
 SECTION 7650.   TEMPORARY HOSPITALITY AND BUSINESS RELIEF FUND.
         7650-A.  HOSPITALITY AND BUSINESS ADVISORY COUNCIL.
   §  7650.  TEMPORARY  HOSPITALITY AND BUSINESS RELIEF FUND. (A) FOR THE
 DURATION OF THE STATE DISASTER EMERGENCY DECLARED PURSUANT TO  EXECUTIVE
 ORDER  TWO  HUNDRED TWO OF TWO THOUSAND TWENTY, TO SECURE OUR STATE FROM
 THE SPREAD OF COVID-19, THERE IS HEREBY ESTABLISHED A  TEMPORARY  HOSPI-
 TALITY  AND  BUSINESS RELIEF FUND TO PROVIDE FOR ACCESS TO RESOURCES AND
 GRANTS TO THOSE ENTITIES PARTICIPATING IN  BROAD  FORM  COVERAGE  ISSUED
 PURSUANT  TO SUBSECTION (G) OF SECTION FIVE THOUSAND FOUR HUNDRED TWO OF
 THIS CHAPTER, THAT HAVE BEEN AFFECTED BY BUSINESS INTERRUPTION RESULTING
 IN LOSS OR DAMAGE INCURRED BY AN OFFICIAL ORDER  TO  CLOSE  PURSUANT  TO
 EXECUTIVE ORDER TWO HUNDRED TWO OF TWO THOUSAND TWENTY.
   (B) THE DEPARTMENT OF FINANCIAL SERVICES SHALL ESTABLISH THE TEMPORARY
 FUND  OF  UP  TO  ONE  HUNDRED  MILLION  DOLLARS  APPROPRIATED THROUGH A
 SURCHARGE ON ALL GENERAL CERTIFICATE  OF  LIABILITY  INSURANCE  POLICIES
 UNDERWRITTEN WITHIN THE STATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08872-01-1

              

 A. 5396                             2
 
   (C)  THE  JOINT  UNDERWRITING  ASSOCIATION  SHALL  ESTABLISH RULES AND
 PROCEDURES FOR DISSEMINATION OF THE MONIES OF THE FUND TO BUSINESSES AND
 ORGANIZATIONS AFFECTED BY THE CLOSURE OF THEIR BUSINESS.
   §  7650-A.  HOSPITALITY  AND BUSINESS ADVISORY COUNCIL. (A) TO PROVIDE
 THE ASSOCIATION WITH ADVICE AND ASSISTANCE WITH THE  OPERATIONS  OF  THE
 TEMPORARY  HOSPITALITY  AND  BUSINESS  RELIEF  FUND, AN ADVISORY COUNCIL
 SHALL BE ESTABLISHED, CONSISTING OF NINE MEMBERS APPOINTED  AS  FOLLOWS:
 THREE  MEMBERS  SHALL BE APPOINTED BY THE GOVERNOR, TWO MEMBERS SHALL BE
 APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE, TWO MEMBERS SHALL BE
 APPOINTED BY THE SPEAKER OF THE ASSEMBLY, ONE MEMBER SHALL BE  APPOINTED
 BY  THE MINORITY LEADER OF THE SENATE, AND ONE MEMBER SHALL BE APPOINTED
 BY THE MINORITY LEADER OF THE ASSEMBLY. THE SUPERINTENDENT,  OR  HIS  OR
 HER  DESIGNEE, ALSO MAY PARTICIPATE AS AN EX-OFFICIO MEMBER. EACH MEMBER
 OF SUCH ADVISORY COUNCIL SHALL SERVE AT THE PLEASURE OF THE OFFICIAL WHO
 APPOINTED SUCH MEMBER.
   (B) THE ASSOCIATION SHALL ADMINISTER  THE  TEMPORARY  HOSPITALITY  AND
 BUSINESS  RELIEF  FUND.  THE ASSOCIATION MAY, SUBJECT TO APPROVAL OF THE
 SUPERINTENDENT, ADOPT REASONABLE ELIGIBILITY STANDARDS FOR PARTICIPATION
 IN THE TEMPORARY HOSPITALITY AND BUSINESS RELIEF FUND.
   (C) THE ADVISORY COUNCIL SHALL PROVIDE RECOMMENDATIONS TO THE  ASSOCI-
 ATION  FOR  CONSIDERATION BY THE BOARD OF DIRECTORS. THE BOARD OF DIREC-
 TORS SHALL PROMPTLY ADVISE THE SUPERINTENDENT, IN WRITING, OF ANY RECOM-
 MENDATIONS RECEIVED FROM THE ADVISORY COUNCIL.
   § 2. The state finance law is amended by adding a new section 99-ii to
 read as follows:
   § 99-II. TEMPORARY HOSPITALITY AND BUSINESS RELIEF FUND. 1.  THERE  IS
 HEREBY  ESTABLISHED  IN  THE  JOINT  CUSTODY  OF THE COMPTROLLER AND THE
 SUPERINTENDENT OF FINANCIAL SERVICES A FUND TO BE KNOWN AS THE TEMPORARY
 HOSPITALITY AND BUSINESS RELIEF FUND.
   2. SUCH FUND SHALL CONSIST OF MONEYS MADE AVAILABLE  PURSUANT  TO  THE
 PROVISIONS  OF  ARTICLE SEVENTY-SIX-A OF THE INSURANCE LAW AND ALL OTHER
 MONIES CREDITED OR TRANSFERRED THERETO FROM ANY  OTHER  FUND  OR  SOURCE
 PURSUANT TO LAW.
   3. MONEYS OF SUCH FUND SHALL BE EXPENDED ONLY TO PROVIDE FOR ACCESS TO
 RESOURCES  AND  GRANTS  TO  THOSE  ENTITIES  PARTICIPATING IN BROAD FORM
 COVERAGE ISSUED PURSUANT TO SUBSECTION (G) OF SECTION FIVE THOUSAND FOUR
 HUNDRED TWO OF THE INSURANCE LAW, AND THOSE WHO HAVE  BEEN  AFFECTED  BY
 BUSINESS INTERRUPTION RESULTING IN LOSS OR DAMAGE, WHICH WAS INCURRED BY
 AN  OFFICIAL  ORDER TO CLOSE PURSUANT TO EXECUTIVE ORDER TWO HUNDRED TWO
 OF TWO THOUSAND TWENTY.  NOTHING IN THIS SECTION SHALL PREVENT THE STATE
 FROM SOLICITING AND RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE PURPOSES
 OF SUCH FUND AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
   § 3. The insurance law is amended by adding a new section 3114      to
 read as follows:
   §  3114. TEMPORARY HOSPITALITY AND BUSINESS RELIEF CREDIT. (A) IN THIS
 SECTION, "COVERED PERIOD"   MEANS MARCH  SEVENTH,  TWO  THOUSAND  TWENTY
 UNTIL  THE DATE ON WHICH NONE OF THE PROVISIONS THAT CLOSED OR OTHERWISE
 RESTRICTED PUBLIC OR PRIVATE BUSINESSES OR  PLACES  OF  PUBLIC  ACCOMMO-
 DATION,  OR  REQUIRED  POSTPONEMENT OR CANCELLATION OF ALL NON-ESSENTIAL
 GATHERINGS OF INDIVIDUALS OF ANY SIZE FOR ANY REASON IN EXECUTIVE ORDERS
 202.3,  202.4,  202.5,  202.6,  202.7,  202.8,  202.10, 202.11,   202.13
 OR    202.14,   AS EXTENDED BY EXECUTIVE ORDERS 202.28 AND 202.31 AND AS
 FURTHER EXTENDED BY ANY FUTURE EXECUTIVE ORDER, ISSUED   IN RESPONSE  TO
 THE COVID-19 PANDEMIC CONTINUE TO APPLY.
   (B) FOR THE DURATION OF THE COVERED PERIOD, BUSINESSES SHALL RECEIVE A
 CREDIT  OF  UP  TO SEVENTY-FIVE PERCENT OF THE TOTAL AMOUNT PAID BY SUCH

 A. 5396                             3
 
 BUSINESS FOR A CERTIFICATE OF GENERAL LIABILITY INSURANCE POLICY  ISSUED
 DURING  THE  COVERED PERIOD IF SUCH BUSINESS HAS CLOSED OR SHUT DOWN ITS
 OPERATIONS DUE TO ANY EXECUTIVE ORDER ISSUED DURING SUCH COVERED PERIOD.
 THE  CREDIT  SHALL  BE  APPLIED TO ANY SUBSEQUENT CERTIFICATE OF GENERAL
 LIABILITY POLICY UNDERWRITTEN FOLLOWING THE END OF THE COVERED PERIOD.
   § 4. Subsections (c), (d) and (g) of section  5402  of  the  insurance
 law,  subsections  (c)  and (d) as amended by chapter 136 of the laws of
 2008 and subsection (g) as amended by chapter 70 of the  laws  of  2019,
 are amended to read as follows:
   (c)  The association shall, pursuant to the provisions of this article
 and the plan of operation and with respect to fire  insurance,  extended
 coverage,  broad form coverage issued pursuant to subsection (g) of this
 section, coverage for additional perils, INCLUDING BUSINESS INTERRUPTION
 INSURANCE RESULTING IN LOSS OR DAMAGE INCURRED BY AN OFFICIAL  ORDER  TO
 CLOSE  PURSUANT  TO  A PUBLIC EMERGENCY, and homeowners insurance should
 the same be made available through the association in accordance with  a
 determination  of  necessity  made  by  the  superintendent  pursuant to
 section five thousand four hundred twelve of this article  on  insurable
 property, have the power on behalf of its members:
   (i) to cause policies of insurance to be issued to applicants;
   (ii) to assume reinsurance from its members; and
   (iii) to cede reinsurance.
   (d)  The  association  shall adhere to a plan of operation, consistent
 with the provisions of this  article,  approved  by  the  superintendent
 after consultation with affected individuals and organizations. The plan
 shall provide for economical, fair and non-discriminatory administration
 and  prompt  and  efficient  provision of fire, extended coverage, broad
 form coverage pursuant to subsection  (g)  of  this  section,  INCLUDING
 BUSINESS  INTERRUPTION INSURANCE RESULTING IN LOSS OR DAMAGE INCURRED BY
 AN OFFICIAL ORDER TO CLOSE PURSUANT TO A PUBLIC EMERGENCY, and  homeown-
 ers  insurance,  when a determination of necessity is made by the super-
 intendent pursuant to section five thousand four hundred twelve of  this
 article to promote orderly community development. It shall contain other
 matters  including,  but not limited to, provision for necessary facili-
 ties; management of the association; assessment  of  members  to  defray
 losses  and  expenses; commission arrangements; reasonable and objective
 underwriting standards; acceptance and cession of reinsurance and proce-
 dures for determining amounts of insurance to be provided by the associ-
 ation. The amounts shall not be in excess of one  million  five  hundred
 thousand  dollars  for  the  insurable  real  property  or  the tangible
 personal property thereon.
   (g) In addition to fire insurance,  extended  coverage,  coverage  for
 additional  perils,  INCLUDING BUSINESS INTERRUPTION INSURANCE RESULTING
 IN LOSS OR DAMAGE INCURRED BY AN OFFICIAL ORDER TO CLOSE PURSUANT  TO  A
 PUBLIC  EMERGENCY,  and  homeowners  insurance  should  the same be made
 available through the association in accordance with a determination  of
 necessity  pursuant to section five thousand four hundred twelve of this
 article, the association may offer broad  form  coverage  to  applicants
 seeking to insure real property at fixed locations of this state, or the
 tangible  personal  property  located thereon. The association may offer
 broad form coverage for a period of  fifteen  years  beginning  on  June
 thirtieth,  two thousand eight. On or before October first, two thousand
 seventeen the superintendent shall require the association to report  to
 him  or  her  as  to  the  number  of  policies written pursuant to this
 subsection and paragraph three of subsection (f) of section  five  thou-
 sand  four  hundred  five of this article, and any other information the

 A. 5396                             4
 
 superintendent may require. On or before  January  first,  two  thousand
 eighteen, the superintendent shall report to the governor and the legis-
 lature  regarding the number of policies issued pursuant to this section
 and such paragraph and shall include recommendations as to the continua-
 tion of such insurance offerings.
   §  5.  This act shall take effect immediately, provided, however, that
 the provisions of sections one and two of this act shall expire 3  years
 after  such  effective  date  when upon such date the provisions of such
 sections shall  be  deemed  repealed;  and  provided  further  that  the
 provisions  of section three of this act shall be deemed to have been in
 full force and effect on and after March 7,  2020  and  shall  apply  to
 insurance policies in force on that date.