BP BHEAD INT S [atlas:bill]

AN ACT Relating to natural disaster relief; adding a new section to chapter 48.14 RCW; adding a new chapter to Title 43 RCW; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 48.14 RCW to read as follows:

Each authorized insurer shall, on or before March 1st of each year, pay to the state treasurer through the commissioner's office, an amount equal to five dollars for every contract of insurance issued or renewed during the previous calendar year that insures against loss from damages to property as defined in RCW 48.11.040. Amounts paid to the treasurer under this section shall be placed in the natural disaster relief account created in section 3 of this act.

NEW SECTION. Sec. 2. The definitions in this section apply throughout sections 2 through 6 of this act unless the context clearly requires otherwise.

(1) "Natural disaster" includes events caused by weather, and weather related events for which insurance cannot be obtained from an admitted carrier under a standard property and casualty policy.

(2) "Victims of natural disaster" means any individual, household, or business organization who suffers loss as a result of a natural disaster to property located within an area that has been declared a disaster by the governor under RCW 43.06.010.

(3) "Board" means the natural disaster relief compensation board created in section 4 of this act.

NEW SECTION. Sec. 3. The natural disaster relief account is created in the custody of the state treasurer. All receipts from insurers paid to the treasurer under section 1 of this act shall be deposited in the account. Expenditures from the account may be used only for the purposes described in sections 4 and 5 of this act. Only the board may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION. Sec. 4. The natural disaster relief compensation board is created. The board consists of three members: The insurance commissioner, the secretary of health, and the director of the department of community, trade, and economic development, or their designees. Applications for compensation under this chapter shall be received, processed, and granted or denied by the natural disaster relief compensation board. The board will be convened by the governor in connection with any declaration of emergency or disaster involving a natural disaster. The insurance commissioner shall serve as chair. The board members shall assign staff persons from their departments to carry out the duties of the board as may be necessary. The board has the authority to contract with adjusters, appraisers, or other specialists necessary to carry out the functions of the board. These contracts shall be funded only by expenditures from the disaster relief account created in section 3 of this act.

NEW SECTION. Sec. 5. The board shall grant applications for loans or grants from the natural disaster relief account as follows: Loans may be granted for up to ninety percent of the loss, as determined by the board, upon verification that the loss meets the requirements of this chapter, and that it is likely that the applicant has the ability to repay the loan. Interest rates for loans under this chapter shall be fixed by the board at a rate not to exceed two percentage points below the current market rate for loans of a similar type. The maximum term for loans made under this chapter is fifteen years. The value of claimed losses that are the subject of applications for grants or loans under this chapter shall be fixed by the board under rules adopted by the board. Grants may be made upon verification that the loss meets the requirements of this chapter, up to sixty percent of the loss if it is determined that the applicant has no present ability to repay a loan under the terms of this section. Proceeds of grants or loans made under this chapter must be used for one or more of the following purposes: (1) To repair structures or fixtures damaged by a natural disaster and identified as the subject of the loss; (2) if repair of structures is not feasible, to relocate the residence or business of the applicant; (3) to repair essential access roads or driveways or other infrastructure facilities located on the property of the applicant; (4) to repair or replace vehicles damaged or destroyed by the natural disaster; or (5) to repair or replace furniture, equipment, or appliances damaged or destroyed by the natural disaster.

NEW SECTION. Sec. 6. The board shall adopt those rules as may be necessary for the implementation of chapter . . ., Laws of 1999 (this act), under chapter 34.05 RCW.

NEW SECTION. Sec. 7. Sections 2 through 6 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 8. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.