PRIOR PRINTER'S NO. 163 PRINTER'S NO. 3123
No. 148 Session of 2003
INTRODUCED BY SOLOBAY, ALLEN, BELARDI, BELFANTI, BLAUM, CAPPELLI, DALEY, DeWEESE, FRANKEL, GEORGE, HARHAI, HERMAN, JAMES, KOTIK, LAUGHLIN, LEVDANSKY, MARKOSEK, READSHAW, SHANER, STERN, SURRA, TIGUE, WANSACZ, YEWCIC, YUDICHAK, BROWNE, COSTA, DeLUCA, FAIRCHILD, GEIST, GRUCELA, HENNESSEY, HORSEY, KELLER, LaGROTTA, LEACH, MANN, PRESTON, SAINATO, STABACK, R. STEVENSON, TANGRETTI, WALKO, WOJNAROSKI, YOUNGBLOOD, PISTELLA, HARPER, GERGELY, REICHLEY AND PALLONE, FEBRUARY 6, 2003
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, DECEMBER 17, 2003
AN ACT 1 Amending the act of August 23, 1961 (P.L.1068, No.484), 2 entitled, as amended, "An act to provide for the creation and 3 administration of a Coal and Clay Mine Subsidence Insurance 4 Fund within the Department of Environmental Protection for 5 the insurance of compensation for damages to subscribers 6 thereto; declaring false oaths by the subscribers to be 7 misdemeanors; providing penalties for the violation thereof; 8 and making an appropriation," further providing for 9 definitions; establishing a mine subsidence assistance 10 program; and imposing duties on the Department of 11 Environmental Protection. 12 The General Assembly of the Commonwealth of Pennsylvania 13 hereby enacts as follows: 14 Section 1. Section 2 of the act of August 23, 1961 15 (P.L.1068, No.484), entitled, as amended, "An act to provide for 16 the creation and administration of a Coal and Clay Mine 17 Subsidence Insurance Fund within the Department of Environmental 18 Protection for the insurance of compensation for damages to
1 subscribers thereto; declaring false oaths by the subscribers to 2 be misdemeanors; providing penalties for the violation thereof; 3 and making an appropriation," reenacted and amended November 27, 4 1972 (P.L.1243, No.278), is amended to read: 5 Section 2. [Terms.--The Coal and Clay Mine Subsidence 6 Insurance Board is hereinafter called the board, the Coal and 7 Clay Mine Subsidence Insurance Fund is hereinafter called the 8 fund, and the Department of Environmental Resources is 9 hereinafter called the department.] Definitions.--The following 10 words and phrases when used in this act shall have the meanings 11 given to them in this section unless the context clearly 12 indicates otherwise: 13 "Abandoned underground mining area." An area determined by 14 the Department of Environmental Protection to be either above or 15 in close proximity to abandoned underground mine workings and 16 periodically published in the Pennsylvania Bulletin. 17 "Board." The Coal and Clay Mine Subsidence Insurance Board 18 established in section 3. 19 "Department." The Department of Environmental Protection of 20 the Commonwealth. 21 "Dwelling." A single-family structure the primary purpose of 22 which is residential. 23 "Fund." The Coal and Clay Mine Subsidence Insurance Fund 24 established in section 4. 25 "Mine subsidence." The lateral or vertical movement of the 26 earth resulting from past or present underground coal or clay 27 mining operations. 28 "Mine subsidence emergency." A condition in which a dwelling 29 sustains mine subsidence damage sufficient to render the 30 structure unsafe for human occupancy as determined by the 20030H0148B3123 - 2 -
1 Department of Environmental Protection. 2 "Mine subsidence insurance policy." An insurance agreement, 3 as defined by department regulation, which is issued by the 4 Department of Environmental Protection. 5 "Owner of structure." A person, corporation, organization or 6 association holding title to a structure within the anthracite 7 or bituminous coal or clay mine regions as defined by the Coal 8 and Clay Mine Subsidence Insurance Board. 9 "Program." The Mine Subsidence Assistance Program 10 established in section 19.1. 11 "Secretary." The Secretary of Environmental Protection of 12 the Commonwealth. 13 "Structure." A complete building which contains a roof, 14 walls and a foundation which firmly attaches the structure to 15 the earth. 16 Section 2. The act is amended by adding a section to read: 17 Section 19.1. Program.--(a) If a homeowner believes that 18 the homeowner's dwelling has sustained mine subsidence damage, 19 the homeowner may apply to the department for mine subsidence 20 assistance. The application must be on a form prepared by the 21 department and must provide for inspection of the dwelling to 22 determine the nature, extent and time of the damage. Upon a 23 determination that a dwelling has sustained mine subsidence 24 damage and that an application for assistance was submitted to 25 the department within forty-five days of the time when the 26 dwelling was damaged by such subsidence, the department shall, 27 to the extent funds are made available, grant assistance, as 28 follows: 29 (1) Grants may be awarded only to persons whose dwellings 30 are unsafe for occupancy as a result of a mine subsidence 20030H0148B3123 - 3 -
1 emergency and may be awarded to move and provide temporary 2 housing for persons whose dwellings are destroyed or endangered 3 until the homes are repaired, until there is no further danger 4 of subsidence or until a new permanent residence is found, 5 provided that grants shall not be used to pay for temporary 6 housing for more than one year and the total amount of a grant 7 shall not exceed twelve thousand dollars ($12,000). A person may 8 receive grant assistance only one time for a specific damaged 9 dwelling. 10 (2) Loans may be approved at an interest rate equal to the 11 average rate of return earned by the fund during the previous 12 five fiscal years or six percent, whichever is lower for the 13 repair or replacement of dwellings damaged by mine subsidence. 14 The loan shall be for a period of time not exceeding fifteen 15 years in duration and shall be in an amount sufficient to cover 16 the cost of repairing the structural damage to the dwelling, but 17 in no event shall be more than the market value of the dwelling 18 as determined by an appraiser, or the maximum amount of coverage 19 established by the fund, whichever is less, as provided for in 20 regulations promulgated under this act. Loans shall be 21 administered by the department pursuant to standard criteria 22 utilized by the mortgage banking industry in issuing 23 conventional mortgages, provided that the department may 24 consider other equity interests in real property available to 25 the borrower in addition to the equity in the dwelling for which 26 the loan is applied and shall be secured by a lien upon the 27 dwelling being repaired or replaced. 28 (3) In addition to repairing or replacing structural damage 29 to a dwelling, loans may also be made to repair or replace 30 dwelling-related driveways, septic systems, sidewalks, fences, 20030H0148B3123 - 4 -
1 sewer laterals, water lines, gas lines, wells and inground 2 pools, located on the property on which the dwelling is located, 3 provided that the damage has been caused by the same mine 4 subsidence event that damaged the dwelling. 5 (4) Loans shall be made for only the amount not covered by 6 insurance or other sources of remuneration, including amounts 7 for which a mine operator is liable under the act of April 27, 8 1966 (1st Sp. Sess., P.L.31, No.1), known as "The Bituminous 9 Mine Subsidence and Land Conservation Act," unless it is 10 determined that the operator is unable to meet his obligations 11 under that act. 12 (5) Any homeowner who has carried mine subsidence insurance 13 in the past on a dwelling for which assistance under this 14 section is applied shall not be eligible for such assistance if 15 the homeowner has failed to maintain the insurance and coverage 16 is not in effect at the time of the mine subsidence event that 17 caused the damage for which assistance is applied. This 18 paragraph does not apply to homeowners who may apply for 19 assistance as a result of the failure of a mine operator to meet 20 his obligations under "The Bituminous Mine Subsidence and Land 21 Conservation Act." 22 (b) If a person receiving assistance under this section does 23 not have mine subsidence insurance and is not ineligible to 24 receive such assistance under subsection (a)(5), the person 25 shall be required to purchase a mine subsidence insurance policy 26 when the structural damage for which assistance was granted has 27 been repaired. A person receiving a loan under this section must 28 maintain mine subsidence insurance coverage for the duration of 29 the loan in an amount equal to the lesser of eighty percent of 30 the value of the repaired dwelling or the maximum amount of mine 20030H0148B3123 - 5 -
1 subsidence insurance available. If a person receiving a loan 2 under this section fails to maintain the required mine 3 subsidence insurance, the person shall immediately pay the fund 4 the outstanding balance due on the loan. 5 (c) Repairs for which loans are provided under this section 6 must be completed within one year of the receipt of the loan 7 unless an extension is approved by the department. If the 8 department determines that repairs have not been made within one 9 year and that no extension should be granted, the person who 10 received the loan shall repay the fund for the amount of the 11 loan not expended on repairs for which the loan was provided. 12 (d) Loans provided pursuant to this section are not 13 transferable. If a person receiving a loan under this section 14 sells or transfers ownership of the dwelling for which loan 15 assistance has been provided, the person shall pay the fund the 16 outstanding balance due on the loan at the time title to the 17 dwelling is transferred. 18 (e) Up to five percent of the money in the fund which is not 19 committed to reserves, claims or other fund expenses, plus 20 repayment of principal and interest on loans under this section, 21 shall be used to fund assistance under this section. 22 Section 3. Section 20 of the act, added December 9, 2002, 23 (P.L.1323, No.155), is amended to read: <-- 24 Section 20. Department Report.--The department shall make an 25 annual report on the program [and on experience with mine 26 subsidence insurance sales through producers] to the 27 Environmental Resources and Energy Committee of the Senate and 28 the Environmental Resources and Energy Committee of the House of 29 Representatives. 30 SECTION 4. THE ADDITION OF SECTION 19.1 OF THE ACT SHALL <-- 20030H0148B3123 - 6 -
1 APPLY RETROACTIVELY TO MINE SUBSIDENCE DAMAGE:
2 (1) WHICH WAS INCURRED AFTER DECEMBER 31, 1999, AND
3 BEFORE THE EFFECTIVE DATE OF THIS SECTION.
4 (2) FOR WHICH MINE SUBSIDENCE ASSISTANCE IS APPLIED, IS
5 REPORTED TO THE DEPARTMENT PRIOR TO THE EFFECTIVE DATE OF
6 THIS SECTION; AND
7 (3) FOR WHICH AN APPLICATION FOR ASSISTANCE IS FILED
8 WITH THE DEPARTMENT WITHIN 90 DAYS OF THE EFFECTIVE DATE OF
9 THIS SECTION.
10 Section 4 5. This act shall take effect in 90 days. <--
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