Chapter 23B of the General Laws is hereby amended by inserting after Section 30 the following new section:-

Section 30A: Lodging Liability Insurance for Damages in Emergency Housing Assistance; Requirements

(a) Any hotel, motel, or lodging facility contracted by the Commonwealth to provide emergency housing assistance shall:

(1) Maintain an active general liability insurance policy and property damage insurance that covers damages caused by occupants placed through the emergency housing assistance program; (2) Provide annual proof of insurance coverage to the executive office prior to the signing of any contract and upon contract renewal; (3) Assume full financial responsibility for any property damage, destruction, or loss caused by occupants housed under state-funded emergency housing programs. The Commonwealth shall not be financial responsibility for any such damages, including but not limited to repair costs, replacement costs, insurance deductibles, or lost revenue due to unusable rooms; (4) Submit timely damage reports to the facility’s insurance provider and pursue reimbursement exclusively through insurance policies.

(b) Facilities that are lodging individuals under Section 30 of Chapter 23B that fail to maintain proper insurance or attempt to recover damage costs from the Commonwealth shall experience: (1) Termination of contracts; (2) Financial penalties as determined by the executive office (3) Disqualification from future state housing contracts

(c) The Executive Office of Housing and Livable Communities shall promulgate rules and regulations necessary to implement this section.