PRINTER'S NO. 418
No. 401 Session of 2001
INTRODUCED BY SOLOBAY, DeWEESE, ALLEN, BELARDI, BELFANTI,
CALTAGIRONE, COSTA, DeLUCA, FAIRCHILD, FRANKEL, GEORGE,
GRUCELA, HARHAI, HENNESSEY, JOSEPHS, LaGROTTA, LAUGHLIN,
LEVDANSKY, MANN, MARKOSEK, MICHLOVIC, PETRARCA, PISTELLA,
READSHAW, ROONEY, SAINATO, SHANER, STABACK, STEELMAN, STERN,
SURRA, TIGUE, TRELLO, TRICH, WALKO, C. WILLIAMS, WANSACZ,
WOJNAROSKI, YOUNGBLOOD AND YUDICHAK, JANUARY 31, 2001
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
JANUARY 31, 2001
AN ACT
1 Amending the act of August 23, 1961 (P.L.1068, No.484),
2 entitled, as reenacted and amended, "An act to provide for
3 the creation and administration of a Coal and Clay Mine
4 Subsidence Insurance Fund within the Department of
5 Environmental Resources for the insurance of compensation for
6 damages to subscribers thereto; declaring false oaths by the
7 subscribers to be misdemeanors; providing penalties for the
8 violation thereof; and making an appropriation," further
9 providing for purpose, for definitions, for disbursements,
10 for inflation protection, for audits by the Insurance
11 Department and for subrogation; establishing the Mine
12 Subsidence Assistance Program; providing for subsidence
13 insurance; and making editorial changes.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. The title and sections 1, 2, 3, 4, 5, 7 and 9 of
17 the act of August 23, 1961 (P.L.1068, No.484), entitled, as
18 reenacted and amended, "An act to provide for the creation and
19 administration of a Coal and Clay Mine Subsidence Insurance Fund
20 within the Department of Environmental Resources for the
1 insurance of compensation for damages to subscribers thereto;
2 declaring false oaths by the subscribers to be misdemeanors;
3 providing penalties for the violation thereof; and making an
4 appropriation," reenacted and amended November 27, 1972
5 (P.L.1243, No.278), are amended to read:
6 AN ACT
7 To provide for the creation and administration of a Coal and
8 Clay Mine Subsidence Insurance Fund within the Department of
9 Environmental [Resources] Protection for the insurance of
10 compensation for damages to subscribers thereto; declaring
11 false oaths by the subscribers to be misdemeanors; providing
12 penalties for the violation thereof; and making an
13 appropriation.
14 Section 1. Purposes.--Whereas, the anthracite and bituminous
15 coal and clay mine areas have been faced with the grave problem
16 of subsidence for many years, and
17 Whereas, these problems are becoming more widespread, and
18 Whereas, these conditions cause undue hardship upon a
19 multitude of persons, and
20 [Whereas, studies reveal that the subsidence is traceable
21 primarily to mining of thirty or more years ago and not
22 necessarily to present day mining so that effective measures
23 cannot readily be taken at this late date for the elimination of
24 the problem, and]
25 Whereas, it would be to the advantage of residents of the
26 anthracite and bituminous coal and clay mining regions to form a
27 common bond to combat distress resulting from subsidence;
28 Now therefore, there shall be established a Coal and Clay
29 Mine Subsidence Insurance Fund and a Coal and Clay Mine
30 Subsidence Insurance Board with the powers and duties as herein
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1 set out.
2 Section 2. [Terms.--The Coal and Clay Mine Subsidence
3 Insurance Board is hereinafter called the board, the Coal and
4 Clay Mine Subsidence Insurance Fund is hereinafter called the
5 fund, and the Department of Environmental Resources is
6 hereinafter called the department.] Definitions.--The following
7 words and phrases when used in this act shall have the meanings
8 given to them in this section unless the context clearly
9 indicates otherwise:
10 "Board." The Coal and Clay Mine Subsidence Insurance Board
11 established in section 3.
12 "Department." The Department of Environmental Protection of
13 the Commonwealth.
14 "Dwelling." A single-family structure the primary purpose of
15 which is residential.
16 "Dwelling requiring mine subsidence insurance." A dwelling
17 located above abandoned mine workings, which is within a one-
18 half mile radius of an area where mine subsidence has been
19 detected and which the department determines to be at risk for
20 mine subsidence damage.
21 "Fund." The Coal and Clay Mine Subsidence Insurance Fund
22 established in section 4.
23 "Mine subsidence." The lateral or vertical movement of the
24 earth resulting from past or present underground coal or clay
25 mining operations.
26 "Mine subsidence emergency." A condition in which a dwelling
27 sustains mine subsidence damage sufficient to render the
28 structure unsafe for human occupancy as determined by the
29 department.
30 "Mine subsidence insurance policy." An insurance
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1 certificate, an insuring agreement, an application for mine
2 subsidence insurance and endorsements to the insurance policy.
3 "Owner of structure." A person, corporation, organization or
4 association holding title to a structure within the anthracite
5 or bituminous coal or clay mine regions as defined by the board.
6 "Program." The Mine Subsidence Assistance Program
7 established in section 20.
8 "Secretary." The Secretary of Environmental Protection of
9 the Commonwealth.
10 "Structure." A complete building which contains a roof,
11 walls and a foundation which firmly attaches the structure to
12 the earth.
13 Section 3. The Coal and Clay Mine Subsidence Insurance
14 Board.--The Coal and Clay Mine Subsidence Insurance Board is
15 hereby created consisting of the [Secretary of Environmental
16 Resources] secretary, as chairman, and the Commissioner of
17 Insurance and the State Treasurer.
18 Section 4. The Coal and Clay Mine Subsidence Insurance
19 Fund.--The premiums to be paid by owners of structures, as
20 hereinafter described, are hereby constituted a Coal and Clay
21 Mine Subsidence Insurance Fund, [hereinafter called fund,] for
22 the purpose of insuring from the moneys in the fund such owners
23 against the damages resulting from subsidence, of coal or clay
24 mines. Such fund shall be administered by a board without
25 liability on the part of the State except as hereinafter
26 provided beyond the amount thereof and shall be applied to the
27 payment of such damages.
28 Section 5. The Initial Source of Fund.--The expenses of the
29 administration of the fund shall after July 1, 1972, be paid out
30 of the general appropriation of the [Department of Environmental
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1 Resources] department.
2 Section 7. Schedule of Premiums.--At any time during each
3 year, the [said] board shall prepare and publish a schedule of
4 premiums or rates of insurance for subscribers, which schedule
5 shall be printed and distributed free of charge to such persons
6 who shall make application therefor, and any such subscriber
7 may, at his option as hereinafter provided, pay to the fund the
8 amount of premium appropriate, and upon payment thereof, shall
9 be insured, as hereinafter provided, for the year for which such
10 premium is paid, and such insurance shall cover all payments
11 becoming due for which said premium is paid. The premium is
12 fixed and shall be adequate to enable payment of all sums which
13 may become due and payable under the provisions of this act, and
14 adequate reserve sufficient to carry all policies and claims to
15 maturity. In fixing the premiums payable by any subscriber, the
16 board may take into account the condition of the premises of
17 such subscriber in respect to the possibility of subsidence as
18 shown by the report of any inspector appointed by the board or
19 by the department, and they may from time to time change the
20 amount of premiums payable by any of the subscribers as
21 circumstances may require and the condition of the premises of
22 such subscribers in respect to the possibility of subsidence may
23 justify, and they may increase the premiums of any subscriber
24 whose loss experience warrants such change. The insurance of any
25 subscriber shall not be effective until he shall have paid in
26 full the premium so fixed and determined.
27 Section 9. Investment of Surplus.--The [said] board may
28 invest any of the surplus or reserve belonging to the fund in
29 such securities and investments as are authorized for investment
30 by savings banks. All such securities or evidences of
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1 indebtedness shall be placed in the hands of the State Treasurer
2 who shall be the custodian thereof. He shall collect the
3 principal and interest thereof when due and pay the same into
4 the fund. The State Treasurer shall pay for all such securities
5 or evidences of indebtedness by check issued upon requisition of
6 the board. All such payments shall be made only upon delivery of
7 such securities or evidences of indebtedness to the State
8 Treasurer. To all requisitions calling upon the State Treasurer
9 to pay for any securities or evidences of indebtedness, there
10 shall be attached a certified copy of the resolution of the
11 board authorizing the investment. The [said] board may upon like
12 resolution sell any of such securities.
13 Section 2. Section 10 of the act, amended November 20, 1981
14 (P.L.350, No.127), is amended to read:
15 Section 10. Disbursements from Fund.--(a) Moneys from the
16 general appropriation of the [Department of Environmental
17 Resources] department are hereby made available for the expense
18 of administering the fund including the purchase through the
19 Department of General Services of surety bonds for such officers
20 or employes of the board as may be required to furnish them
21 supplies, materials, motor vehicles, workmen's insurance
22 covering the officers and employes of the board, and liability
23 insurance covering vehicles operated by the officers and
24 employes of the board.
25 (b) Moneys from the general appropriation of the [Department
26 of Environmental Resources] department shall also be available
27 [for payment, to the Insurance Department, of the cost incurred
28 by that department in examining and auditing the fund in such
29 amounts as the Insurance Department shall determine, and] for
30 payment, to the Treasury Department, of the cost of making
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1 disbursements out of the fund on behalf of the fund at such
2 amounts as the Treasury Department, with the approval of the
3 Executive Board, shall determine.
4 (c) The board shall keep an accurate account of the money
5 paid in premiums by the subscribers and the disbursements on
6 account of damages to the premises thereof, and if at the
7 expiration of any year there shall be a balance remaining after
8 deducting such disbursements, the unearned premiums on
9 undetermined risks and the percentage of premiums paid or
10 payable to create or maintain the surplus provided herein, and
11 after setting aside an adequate reserve, so much of the balance
12 as the board may determine to be safely distributable may either
13 be allocated to the cost of administering the fund or be
14 distributed among the subscribers in proportion to the premiums
15 paid by them and the proportionate share of such subscribers as
16 shall remain subscribers to the fund shall be credited to the
17 installment of premiums next due by them and the proportionate
18 share of such subscribers as shall have ceased to be subscribers
19 in the fund shall be refunded to them out of the fund in the
20 manner hereinafter provided.
21 Section 3. Section 12 of the act, amended July 10, 1984
22 (P.L.711, No.151), is amended to read:
23 Section 12. Application for Insurance; Terms of Insurance;
24 Penalty for False Statement.--(a) Any owner of a structure
25 located within the anthracite or bituminous coal or clay mine
26 region and who desires to become a subscriber to [said] the fund
27 for the purpose of insuring such a structure therein against
28 damages from coal or clay mine subsidences, shall make a written
29 request for an application for such insurance to the [said]
30 board or any of its agents. The board shall then send to the
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1 owner of the structure an application in which application the
2 applicant shall state the name, address, date of ownership of
3 the premises to be insured, the condition of the premises, prior
4 subsidence experience, if any, nature of title whether it
5 includes any subsurface support, whether any agreement exists
6 concerning surface support. Thereupon, the board shall make such
7 investigation as may be necessary if such application complies
8 with the rules and regulations of the board and within sixty
9 days after the request for an application is received shall
10 issue a certificate showing the acceptance of the application
11 and the amount of premium payable by such applicant for the year
12 for which premium is sought. Policies may be issued for one
13 year, for two years or for three years as the board may
14 establish. Except as provided in subsection (b), no insurance
15 shall become effective until the premiums have been paid. All
16 premiums shall be payable to the State Treasurer whereupon a
17 receipt shall be issued therefor. The receipt for premium
18 together with a certificate of the board shall be evidence that
19 the applicant has become a subscriber to the fund and is
20 insured.
21 (b) If the board fails to make the necessary investigations
22 or inspection and fails to approve or deny an application for
23 insurance within sixty days of receipt of the written request
24 for an application by the board or any of its agents, in
25 accordance with this section, the insurance requested by the
26 applicant shall be deemed granted. The insurance shall be
27 effective from the date the written request for an application
28 was received by the board or any of its agents, but the coverage
29 will be null and void if the applicant fails to remit the
30 premium payment within twenty days from the day the bill for the
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1 premium was postmarked.
2 (1) The insurance may be subjected to later reductions, and
3 premiums adjusted accordingly, if the board determines that the
4 amount of insurance coverage requested is in excess of the
5 current market value of the structure or current statutory
6 limits, whichever is less.
7 (2) The insurance shall be void if, upon inspection of the
8 structure, the board determines that either (i) mine subsidence
9 damage occurred prior to the request by the applicant for
10 insurance, or (ii) the applicant by his unreasonable actions or
11 in actions is responsible for the failure of the board to
12 inspect the structure within sixty days of receipt of the
13 written request for an application in accordance with this
14 section.
15 (c) Whoever shall knowingly furnish or make any false
16 certificate, application or statement herein required shall be
17 guilty of a misdemeanor, and upon conviction thereof, shall be
18 sentenced to pay a fine not exceeding one thousand five hundred
19 dollars ($1,500) and shall undergo imprisonment not exceeding
20 one year.
21 Section 4. Sections 13, 14, 15 and 17 of the act are amended
22 to read:
23 Section 13. Audit by Auditor General.--The Auditor General
24 through such agents as he may select shall, at least once each
25 year, make a complete examination and audit of the fund
26 including all receipts and expenditures, cash on hand and
27 securities, investments or property held representing cash or
28 cash disbursements, and for these purposes the Auditor General
29 is hereby authorized to employ such consultants, experts,
30 accountants or investigators as he may deem advisable.
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1 The expense incurred in making said examination and audit
2 shall be certified to the fund by the Auditor General and shall
3 be paid from the general appropriation of the [Department of
4 Environmental Resources] department.
5 The first audit of such fund may, in the discretion of the
6 Auditor General, extend back to the creation of such fund or to
7 any other period in its life.
8 [Section 14. Audit by Insurance Department.--The Insurance
9 Department at least once each year shall make a complete
10 examination and audit of the affairs of the fund including all
11 receipts and expenditures, cash on hand and securities,
12 investments or property held representing cash or cash
13 disbursements to ascertain its financial condition and its
14 ability to fulfill its obligations, whether the board in
15 managing the fund has complied with the provisions of law
16 relating to the fund and the equity of the board's plans and
17 dealings with its policyholders.
18 For the purpose of any examination and audit authorized by
19 this act, the Commissioner of Insurance, his deputy or his
20 examiners shall have free access to all the books, records and
21 papers pertaining to the fund, and all persons charged with the
22 management of the fund or connected therewith as employes are
23 hereby directed and required to give to the Commissioner of
24 Insurance, his deputy or officers the means, facilities and
25 opportunity for such examination and audit.
26 The expenses incurred by the Insurance Department in making
27 any examination and audit under the provisions of this act shall
28 be ascertained by the department, certified to the fund, and
29 paid from the general appropriation of the Department of
30 Environmental Resources.]
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1 Section 15. Claims against Fund.--Any subscriber to the fund
2 must file with the board a true statement of his claim for any
3 subsidence and shall give to the board an opportunity to
4 investigate and to determine whether the board will pay the
5 claim. For any claim to be considered valid the department must
6 determine that a mine subsidence event occurred during the term
7 of the mine subsidence insurance policy.
8 Section 17. Subrogation to Rights of Claimants.--Nothing
9 herein shall relieve any person, partnership, or corporation
10 otherwise liable therefor from any liability for damages
11 sustained; and the fund and the program shall be subrogated to
12 the rights of any property owners' insurance herein.
13 Section 5. The act is amended by adding sections to read:
14 Section 20. Program.--(a) If a homeowner believes that the
15 homeowner's dwelling has sustained mine subsidence damage, the
16 homeowner may apply to the department for mine subsidence
17 assistance. The application must be on a form prepared by the
18 department and must provide for inspection of the dwelling to
19 determine the nature, extent and time of the damage. Upon a
20 determination that a dwelling has sustained mine subsidence
21 damage and that an application for assistance was submitted to
22 the department within forty-five days of occurrence of the mine
23 subsidence event, the department shall, to the extent funds are
24 made available, grant assistance, as follows:
25 (1) Grants may be awarded only to persons whose dwellings
26 are unsafe for occupancy as a result of a mine subsidence
27 emergency and may be awarded to move and provide temporary
28 housing for persons whose dwellings are destroyed or endangered
29 until the homes are repaired, until there is no further danger
30 of subsidence or until a new permanent residence is found,
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1 provided that grants shall not be used to pay for temporary
2 housing for more than one year and the total amount of a grant
3 shall not exceed twelve thousand dollars ($12,000).
4 (2) Loans may be approved at an interest rate equal to the
5 current rate of return being earned by the fund, or five
6 percent, whichever is lower for the repair or replacement of
7 dwellings damaged by mine subsidence. Loans shall be awarded on
8 a priority basis according to severity of damages sustained, but
9 a dwelling need not be rendered unsafe for human occupancy as a
10 result of a mine subsidence emergency to qualify for a loan. The
11 loan shall be for a period of time not exceeding fifteen years
12 in duration and shall be in an amount sufficient to cover the
13 cost of repairing the structural damage to the dwelling, but in
14 no event shall be more than the replacement cost of the dwelling
15 as determined by an appraiser, or the maximum coverage limit for
16 dwellings under the subsidence insurance program, whichever
17 amount is lower, as provided for in regulations promulgated
18 under this act. Loans shall be administered by the department
19 and shall be secured by a lien upon the dwelling being repaired
20 or replaced.
21 (3) In addition to repairing or replacing structural damage
22 to a dwelling, loans may also be made to repair or replace
23 dwelling-related driveways, septic systems, sidewalks, fences,
24 sewer laterals, water lines, gas lines, wells and inground
25 pools, located on the property on which the dwelling is located,
26 provided that the damage has been caused by the same mine
27 subsidence event that damaged the dwelling.
28 (4) Loans shall be made for only the amount not covered by
29 insurance or other sources of remuneration, including amounts
30 for which a mine operator is liable under the act of April 27,
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1 1966 (1st Sp. Sess., P.L.31, No.1), known as "The Bituminous
2 Mine Subsidence and Land Conservation Act," unless it is
3 determined that the operator is unable to meet his obligations
4 under that act.
5 (b) If a person receiving assistance under this section does
6 not have mine subsidence insurance, the person shall be required
7 to purchase a mine subsidence insurance policy when the
8 structural damage for which assistance was granted has been
9 repaired. Persons receiving a loan under this section must
10 maintain mine subsidence insurance coverage for the duration of
11 the loan, and persons receiving a grant under this section must
12 maintain mine subsidence insurance coverage for as long as it is
13 determined by the department that the dwelling is in danger of
14 further damage from mine subsidence. If a person receiving mine
15 subsidence assistance fails to maintain the required mine
16 subsidence insurance, the person shall immediately pay the fund
17 the outstanding balance due on the loan under this section.
18 (c) Repairs for which loans are provided under this section
19 must be completed within one year of the receipt of grant or
20 loan assistance, unless an extension is approved by the
21 department. If the department determines that repairs have not
22 been made within one year and that no extension should be
23 granted, the person who received the grant or loan assistance
24 shall repay the fund for the amount of the grant or loan not
25 expended on repairs for which the grant or loan was provided.
26 (d) Up to five percent of the money in the fund which is not
27 committed to reserves, claims or other fund expenses, plus
28 repayment of principal and interest on loans under this section,
29 shall be used to fund assistance under this section.
30 Section 20.1. Subsidence Insurance Purchase and Compliance
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1 Requirements.--(a) Every purchaser of a dwelling requiring mine
2 subsidence insurance shall purchase subsidence insurance in an
3 amount at least equal to the appraised value of the dwelling
4 purchased or to the maximum amount of coverage available with
5 respect to the particular dwelling, whichever is less; provided,
6 however, that the amount of subsidence insurance required need
7 not exceed the outstanding principal balance of a loan against
8 the dwelling and need not be required beyond the term of the
9 loan.
10 (b) Notification of mortgage lending institution shall be as
11 follows:
12 (1) The department shall notify mortgage lending
13 institutions in areas identified by the department as being
14 located above abandoned mine workings of the requirements for
15 subsidence insurance. Notified lenders shall direct persons
16 applying for loans for the purchase of dwellings in these areas
17 to contact the department to determine if the dwelling requires
18 mine subsidence insurance and to provide the lender with a
19 certificate from the department stating one of the following:
20 (i) That subsidence insurance is necessary under the
21 provisions of this section and has been obtained as a condition
22 of receiving and maintaining the loan.
23 (ii) That subsidence insurance may be necessary under the
24 provisions of this section but is not being provided for reasons
25 set forth in the certificate by the department.
26 (iii) That subsidence insurance is not necessary under the
27 provisions of this section.
28 (2) Each State agency participating in providing mortgage
29 loan assistance for the purchase of a dwelling in an area
30 identified by the department as being located above abandoned
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1 mine workings shall, by regulations, require borrowers to obtain
2 subsidence insurance under the circumstances and in the manner
3 provided in subsection (a).
4 (c) Notwithstanding any other provision of this section,
5 subsections (a) and (b) shall not apply to any loan having an
6 original outstanding principal balance of five thousand dollars
7 ($5,000) or less and a repayment term of one year or less.
8 (d) If a lender subject to this act requires the escrowing
9 of taxes, insurance premiums, fees or any other charges for a
10 loan secured by a dwelling, then all premiums and fees for
11 subsidence insurance for the dwelling shall be paid to the
12 lender or servicer for the loan in a manner sufficient to make
13 payments as due for the duration of the loan. Upon receipt of
14 the premiums, the lender or other servicer of the loan shall
15 deposit the premiums in an escrow account on behalf of the
16 borrower. Upon receipt of a notice from the department that
17 subsidence insurance premiums are due, the lender or servicer
18 shall pay from the escrow account to the department the amount
19 of insurance premiums owed. Escrow accounts established pursuant
20 to this subsection shall be subject to the provisions of section
21 10 of the Real Estate Settlement Procedures Act of 1974 (Public
22 law 93-533, 12 U.S.C. § 2609).
23 (e) Placement of subsidence insurance by lender shall be as
24 follows:
25 (1) If, at the time of origination or at any time during the
26 term of a loan secured by a dwelling requiring mine subsidence
27 insurance, a lender or servicer for the loan determines that the
28 dwelling is not covered by subsidence insurance or is covered by
29 such insurance in an amount less than the amount required for
30 the property pursuant to subsection (a), the lender or servicer
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1 for the loan shall notify the borrower that the borrower should
2 obtain, at the borrower's expense, the required amount of
3 subsidence insurance for the term of the loan and provide the
4 lender or servicer for the loan with a certificate from the
5 department as provided in subsection (b)(1).
6 (2) If the borrower fails to purchase the required
7 subsidence insurance within forty-five days after notification
8 under paragraph (1), the lender or servicer for the loan shall
9 purchase the insurance on behalf of the borrower and may charge
10 the borrower for the cost of premiums and fees incurred by the
11 lender in purchasing the insurance.
12 (3) Review of determination that subsidence insurance is
13 required:
14 (i) The borrower and lender for a loan secured by a dwelling
15 may jointly request the department to review a determination
16 that the dwelling requires mine subsidence insurance. The
17 request must be supported by technical information relating to
18 the dwelling and its location. Within forty-five days of
19 receiving the request for review, the department shall provide
20 the borrower and the lender with a written redetermination
21 stating whether the dwelling requires mine subsidence insurance.
22 The redetermination of the department shall be final.
23 (ii) If the department redetermines that the dwelling
24 securing the loan of the borrower does not require mine
25 subsidence insurance, the borrower shall not be obligated to
26 purchase subsidence insurance for the dwelling during the period
27 determined by the department, which shall be stated in the
28 redetermination under subparagraph (i) and shall begin on the
29 date on which the letter is provided.
30 (iii) The borrower shall not be required to purchase
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1 subsidence insurance for the dwelling securing the loan until a
2 redetermination under subparagraph (i) is provided if a request
3 for redetermination is made under subparagraph (i) and the
4 department does not provide the redetermination before the later
5 of:
6 (A) the expiration of the time period under subparagraph
7 (i); or
8 (B) closing of the loan.
9 (iv) A lender or any servicer for a loan may charge the
10 borrower a reasonable fee for the costs of determining whether
11 the dwelling securing the loan requires mine subsidence
12 insurance if any of the following apply:
13 (A) The determination is made pursuant to the making,
14 increasing, extending or renewing of the loan that is initiated
15 by the borrower.
16 (B) The loan for the dwelling may reasonably be considered
17 to require the determination.
18 (C) The determination results in the purchase of subsidence
19 insurance pursuant to paragraph (2).
20 (v) The purchaser or transferee of such a loan may be
21 charged the fee in the case of sale or transfer of the loan.
22 (f) Penalties for failure to require subsidence insurance
23 shall be as follows:
24 (1) Monetary penalty shall be as follows:
25 (i) The department may assess a penalty in the amount of
26 three hundred dollars ($300) for each violation against any
27 lender that fails to require subsidence insurance pursuant to
28 subsection (b)(1) or fails to notify a borrower of lack of
29 coverage pursuant to subsection (e)(1).
30 (ii) Each State agency providing mortgage loan assistance
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1 for dwellings located above abandoned mine workings pursuant to
2 subsection (b)(2) may assess a penalty in the amount of three
3 hundred dollars ($300) for each violation against any lender
4 participating in the program that fails to require subsidence
5 insurance pursuant to agency regulations or fails to notify a
6 borrower of lack of coverage pursuant to subsection (e)(1).
7 (iii) This paragraph is subject to 2 Pa.C.S. Chs. 5 Subch. A
8 (relating to practice and procedure of Commonwealth agencies)
9 and 7 Subch. A (relating to judicial review of Commonwealth
10 agency action).
11 (2) Any lender that purchases or renews subsidence insurance
12 on behalf of or as an agent of a borrower of a loan for which
13 subsidence insurance is required shall be considered to be in
14 compliance with this section.
15 (3) Sale or other transfer of a loan by a lender that has
16 committed a violation of this section which occurs subsequent to
17 the violation shall not affect the liability of the transferring
18 lender regarding any penalty under this subsection. A lender
19 shall not be liable for any violations by another lender that
20 previously held the loan.
21 (4) Penalties collected under this subsection shall be paid
22 into the fund.
23 (5) No penalty may be imposed under this subsection after
24 the expiration of the four-year period beginning on the date of
25 the violation for which the penalty is authorized under this
26 subsection.
27 (g) This section shall apply with respect to any loan made,
28 increased, extended or renewed on or after the effective date of
29 this section.
30 Section 21. Department.--(a) The department shall provide
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1 for public notice of the program and the requirements for mine
2 subsidence insurance.
3 (b) The department shall make an annual report on the
4 program and on compliance and experience with mine subsidence
5 insurance requirements to the Environmental Resources and Energy
6 Committee of the Senate and the Environmental Resources and
7 Energy Committee of the House of Representatives.
8 Section 6. Sections 22 and 24.1 of the act are amended to
9 read:
10 Section 22. Employes of the Board to Be Part of the
11 Department [of Environmental Resources].--All employes of the
12 board shall be employed by and located in the [Department of
13 Environmental Resources] department and shall be subject to the
14 administrative jurisdiction and authority of the [Secretary of
15 Environmental Resources] secretary.
16 Section 24.1. Appeals.--Any party aggrieved by an action of
17 the board [hereunder] shall have the right to appeal to the
18 Environmental Hearing Board.
19 Section 7. The addition of section 20 of the act shall apply
20 to mine subsidence damage incurred after December 31, 1998,
21 provided that mine subsidence damage which occurred between
22 January 1, 1999, and the effective date of this act and for
23 which mine subsidence assistance is applied must have been
24 reported to the department prior to the effective date of this
25 act, and an application for assistance for such damage must be
26 filed with the department within 90 days of the effective date
27 of this act.
28 Section 8. This act shall take effect as follows:
29 (1) The addition of section 20.1 of the act shall take
30 effect in 180 days.
20010H0401B0418 - 19 -
1 (2) The remainder of this act shall take effect
2 immediately.
A26L52MRD/20010H0401B0418 - 20 -