Para enmendar la Ley Núm. 12 de 12 de diciembre de 1966, según enmendada, conocida como la “Ley de Seguros Agrícolas de Puerto Rico”, a los fines de autorizar a la Corporación de Seguros Agrícolas de Puerto Rico a establecer un mecanismo de compensación extraordinaria para agricultores que sufran pérdidas significativas no cubiertas por las pólizas del seguro agrícola vigente, en circunstancias excepcionales; y para otros fines relacionados.

2025-2028 Session

Authorizes ARS Puerto Rico to create an extraordinary compensation mechanism for farmers with major losses not covered by existing insurance, under exceptional circumstances.

Vista Pública: Salón de Audiencias #6

Summary — Bill PC 686

Overview

Bill PC 686 proposes amending Puerto Rico Law 12 of December 12, 1966 (the Puerto Rico Agricultural Insurance Law) to authorize the Corporación de Seguros Agrícolas de Puerto Rico (ARS Puerto Rico) to establish an extraordinary compensation mechanism for farmers who suffer significant losses that are not covered by existing agricultural insurance policies, under exceptional circumstances. The bill’s aim is to provide an additional layer of relief when standard policies do not fully address severe agricultural losses.

Purpose and intent

Create a framework for ARS Puerto Rico to implement an extraordinary compensation mechanism.

Target relief for farmers experiencing substantial losses not covered by current agricultural insurance, but only in exceptional circumstances.

Provide a mechanism to address gaps in coverage and protect agricultural producers during extraordinary events or conditions.

Key provisions (as inferred from the bill’s description)

Authorization for ARS Puerto Rico to establish and administer an extraordinary compensation program.

Eligibility criteria to be determined by implementing regulations and guidelines (specific thresholds, types of losses, and triggering events would be defined in the bill’s regulatory framework).

Funding and administration:

The bill would authorize ARS to manage such a program within its statutory framework, potentially subject to appropriations and regulatory oversight.
Details on funding sources (ARS reserves, state funds, or other financing mechanisms) and annual caps would be defined in implementing rules (not specified in the brief summary).

Scope of losses: losses must be significant and not covered by existing policies, and occur under exceptional circumstances.

Oversight and administration: program governance, reporting requirements, and adherence to applicable laws would be established.

Affected parties

Farmers and agricultural producers in Puerto Rico who hold or would hold agricultural insurance.

ARS Puerto Rico as the administrator and funder/overseer of the extraordinary compensation mechanism.

Potentially, the Commonwealth’s budget and relevant regulatory agencies responsible for oversight and compliance.

Procedural and timeline aspects

Introduced: May 19, 2025.

First Reading: May 27, 2025.

Refer to Committee(s): May 27, 2025.

Public hearings:

September 19, 2025 — Salón de Audiencias #2.
October 20, 2025 — Salón de Audiencias #6.

Current status: Vista Pública (Public Hearing) in the indicated House hearing rooms, indicating the bill is being reviewed in committee and has not yet advanced to final passage.

Potential impact

Provides a safety net for農 farmers facing extraordinary losses not covered by traditional insurance.

Could improve resilience of the agricultural sector by addressing gaps in risk transfer.

Implementation details (eligibility, funding, triggers, and caps) will determine the scope and fiscal impact; these would be clarified through implementing regulations and committee deliberations.

Next steps

Monitor committee reports and any amendments.

Review the bill’s full text for precise eligibility criteria, funding mechanisms, and triggering events.

Assess fiscal implications and any required appropriations or regulatory changes.