PRINTER'S NO. 342
No. 313 Session of 1997
INTRODUCED BY HABAY, PETTIT, SEMMEL, MILLER, ALLEN AND GEIST,
FEBRUARY 5, 1997
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
FEBRUARY 5, 1997
AN ACT
1 Providing for abandoned mine subsidence emergency assistance;
2 establishing a mine subsidence revolving loan fund; and
3 making an appropriation.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Abandoned
8 Mine Subsidence Assistance Act.
9 Section 2. Purpose of act.
10 By this act, the General Assembly of the Commonwealth of
11 Pennsylvania recognizes that the existence of abandoned mine
12 cavities beneath large and populated areas of this Commonwealth
13 poses a continued threat to the health and welfare of the
14 residents of those areas and further recognizes that subsidence
15 over such abandoned mines damages property, jeopardizes public
16 safety and causes economic hardship to property owners.
17 Accordingly, it is the purpose of this act to authorize
18 financial assistance, in the form of grants and loans, to
1 homeowners whose dwellings have been damaged by subsidence over
2 abandoned mine cavities.
3 Section 3. Definitions.
4 The following words and phrases when used in this act shall
5 have the meanings given to them in this section unless the
6 context clearly indicates otherwise:
7 "Department." The Department of Environmental Protection of
8 the Commonwealth.
9 "Dwelling." A structure whose primary use is residential.
10 "Mine subsidence damage." Damage to a dwelling caused by the
11 vertical or lateral movement of the earth as the result of the
12 collapse of an abandoned mine cavity.
13 "Mine subsidence emergency." A condition in which a dwelling
14 sustains mine subsidence damage sufficient to render the
15 structure unsafe for human occupancy.
16 Section 4. Mine Subsidence Assistance Program.
17 (a) Financial assistance.--Whenever a homeowner believes
18 that his dwelling has sustained mine subsidence damage, the
19 homeowner may apply to the department for mine subsidence
20 assistance. The application shall be on a form prepared by the
21 department and shall provide for inspection of the dwelling to
22 determine the nature and extent of the damage. Upon a
23 determination by the department that a dwelling has sustained
24 mine subsidence damage, the department shall, to the extent
25 funds are made available, grant assistance, as follows:
26 (1) Grants may be awarded only to those homeowners whose
27 dwellings are unsafe for occupancy as a result of a mine
28 subsidence emergency as defined herein and may be awarded to
29 move persons whose dwellings are destroyed or endangered
30 until the homes are repaired, until there is no further
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1 danger of subsidence or until a new permanent residence is
2 found.
3 (2) Loans may be approved at interest rates not to
4 exceed 3% for the repair or replacement of dwellings damaged
5 by mine subsidence. Loans shall be awarded on a priority
6 basis according to severity of damages sustained, provided
7 that a dwelling need not be rendered unsafe for human
8 occupancy as a result of a mine subsidence emergency as
9 defined herein to qualify for a loan under this subsection.
10 The loan shall be in an amount sufficient to cover the cost
11 of repairing the structural damage to the dwelling, but in no
12 event shall be greater than the replacement cost of the
13 dwelling as determined by an appraiser, as provided for in
14 regulations promulgated pursuant hereto. Loans shall be
15 administered by the department and shall be secured by a lien
16 upon the dwelling being repaired or replaced.
17 (3) In addition to repairing or replacing structural
18 damage to a dwelling, loans under this act may also be made
19 to repair or replace foundations, driveways, septic tanks,
20 sidewalks, fences, sewer laterals, water lines, gas lines,
21 wells and inground pools located on the property on which the
22 dwelling is located. Such loans shall only be made for the
23 amount not covered by other insurance or sources of
24 remuneration against a loss which are in effect for the
25 dwelling at the time of the loss.
26 (b) Insurance required.--Persons receiving assistance under
27 this section shall be required to purchase mine subsidence
28 insurance at such time as the structural damage for which
29 assistance was granted has been repaired if it is deemed by the
30 department that said dwelling is in danger of further damage
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1 from mine subsidence.
2 (c) Prohibition.--The provisions of subsection (a)(1) and
3 (2) are not applicable to homeowners if they are holders of mine
4 subsidence insurance policies pursuant to the act of August 23,
5 1961 (P.L.1068, No.484), entitled, "An act to provide for the
6 creation and administration of a Coal and Clay Mine Subsidence
7 Insurance Fund within the Department of Environmental Resources
8 for the insurance of compensation for damages to subscribers
9 thereto; declaring false oaths by the subscribers to be
10 misdemeanors; providing penalties for the violation thereof; and
11 making an appropriation."
12 Section 5. Rulemaking.
13 The Environmental Quality Board may promulgate regulations
14 which it deems necessary to carry out the provisions and
15 purposes of this act.
16 Section 6. Public notice.
17 Following the effective date of this act, the department
18 shall undertake appropriate measures to notify the public of the
19 availability of and need for mine subsidence insurance as
20 provided for by the act of August 23, 1961 (P.L.1068, No.484),
21 entitled, "An act to provide for the creation and administration
22 of a Coal and Clay Mine Subsidence Insurance Fund within the
23 Department of Environmental Resources for the insurance of
24 compensation for damages to subscribers thereto; declaring false
25 oaths by the subscribers to be misdemeanors; providing penalties
26 for the violation thereof; and making an appropriation."
27 Section 7. Revolving fund.
28 The Department of Environmental Protection shall establish a
29 mine subsidence revolving loan fund. All appropriations and any
30 repayments of loans together with any interest paid thereon,
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1 made pursuant to this act, shall be deposited to this revolving
2 loan fund for the purposes provided under this act.
3 Section 8. Appropriation.
4 The sum of $250,000 is hereby appropriated to the Department
5 of Environmental Protection for the fiscal period beginning July
6 1, 1997, through June 20, 2001. This appropriation shall be
7 deposited in the revolving loan fund established in section 7.
8 Section 9. Retroactivity.
9 This act shall be retroactive to November 1, 1994.
10 Section 10. Effective date.
11 This act shall take effect immediately.
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