Bill Text: PA HB523 | 2009-2010 | Regular Session | Amended


Bill Title: Establishing the Landslide Insurance and Assistance Program within the Department of Environmental Protection; providing for related powers and duties of the Pennsylvania Emergency Management Agency; establishing and providing for the powers and duties of the Landslide Insurance and Assistance Board; establishing the Landslide Insurance Fund and the Landslide Assistance Fund; and providing for loans from the Coal and Clay Mine Subsidence Insurance Fund.

Spectrum: Slight Partisan Bill (Democrat 12-5)

Status: (Introduced - Dead) 2009-10-08 - Re-committed to APPROPRIATIONS [HB523 Detail]

Download: Pennsylvania-2009-HB523-Amended.html

  

 

PRIOR PRINTER'S NO. 575

PRINTER'S NO.  2768

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

523

Session of

2009

  

  

INTRODUCED BY DeLUCA, BOBACK, GEIST, GEORGE, KORTZ, KOTIK, LEVDANSKY, MUSTIO, READSHAW, SIPTROTH, SOLOBAY, THOMAS, VULAKOVICH, WALKO, YOUNGBLOOD, MATZIE AND MURT, FEBRUARY 19, 2009

  

  

AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, OCTOBER 7, 2009   

  

  

  

AN ACT

  

1

Establishing the Landslide Insurance and Assistance Program

2

within the Pennsylvania Emergency Management Agency 

<--

3

Department of Environmental Protection; providing for related

<--

4

powers and duties of the Pennsylvania Emergency Management

5

Agency; establishing and providing for the powers and duties

6

of the Landslide Insurance and Assistance Board; establishing

7

the Landslide Insurance Fund and the Landslide Assistance

8

Fund; and making appropriations providing for loans from the

<--

9

Coal and Clay Mine Subsidence Insurance Fund.

10

TABLE OF CONTENTS

11

Chapter 1.  Preliminary Provisions

12

Section 101.  Short title.

13

Section 102.  Declaration of policy.

14

Section 103.  Definitions.

15

Chapter 3.  Program Generally

16

Section 301.  Program goals.

17

Section 302.  Board.

18

Section 303.  Appeals.

19

Section 304.  Program generally.

20

Section 305.  Program authority.

 


1

Section 306.  Land use controls and rate structure.

2

Chapter 5.  Landslide Insurance Fund

3

Section 501.  Landslide Insurance Fund.

4

Section 502.  Schedule of premiums.

5

Section 503.  Surplus.

6

Section 504.  Insurance program.

7

Section 505.  Application for increase in insurance.

8

Section 506.  Automatic inflation protection increase.

9

Section 507.  Audit by Auditor General.

10

Section 508.  Claims against insurance fund.

11

Section 509.  Defenses against claims and procedure.

12

Section 510.  Subrogation to rights of claimants.

13

section 511.  Insurance companies may cover risk.

14

Section 512.  Escrow of premium payments.

15

Section 513.  Properties in violation of State or local law.

16

Chapter 7.  Mitigation Assistance

17

Section 701.  Mitigation assistance.

18

Section 702.  Landslide Assistance Fund.

19

Section 703.  Construction permits.

20

Chapter 9.  Program Administration and Funding

21

Section 901.  Regulations.

22

Section 902.  Agency Department report.

<--

23

Section 903.  Program funding.

24

Section 904.  Reimbursement.

25

Section 905.  Appropriations Loans.

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26

Section 906.  Cost of administration.

27

Section 907.  Commissions.

28

Chapter 21.  Miscellaneous Provisions

29

Section  2101.  Effective date.

30

The General Assembly of the Commonwealth of Pennsylvania

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1

hereby enacts as follows:

2

CHAPTER 1

3

PRELIMINARY PROVISIONS

4

Section 101.  Short title.

5

This act shall be known and may be cited as the Landslide

6

Insurance and Assistance Program Act.

7

Section 102.  Declaration of policy.

8

The General Assembly finds and declares as follows:

9

(1)  Geologists have studied with increasing concern the

10

underground movement of the geological formations in this

11

Commonwealth and its impeding effects on the vertical and

12

horizontal natural and manmade surfaces.

13

(2)  Landslides and slope movement have historically been

14

the norm throughout most parts of this Commonwealth.

15

(3)  Landslides and slope movements occur without regard

16

for municipal boundaries, ordinances, planning codes,

17

politics and economies, making it difficult for local

18

officials to deal effectively with the development and

19

implementation of methods and standards to control the

20

devastation these natural forces can cause.

21

(4)  Landslides and slope movement have caused an

22

enormous amount of damage to homes and roadways in this

23

Commonwealth, particularly the southwestern region of the

24

State.

25

(5)  Landslides and slope movement will continue to

26

plague southwestern Pennsylvania.

27

(6)  Landslides affect every state in the nation causing

28

an estimated $1,000,000,000 to $3,000,000,000 in damages a

29

year.

30

(7)  Landslide damage caused by flooding is not covered

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1

by the National Flood Insurance Program.

2

(8)  While landslide damage caused by mining practices is

3

covered by the Coal and Clay Mine Subsidence Insurance Fund

4

and mudslide damage is covered by the National Flood

5

Insurance Program, other types of landslide damage are

6

usually not covered by insurance.

7

(9)  Problems associated with landslide damage are

8

becoming more widespread.

9

(10)  It would be to the advantage of residents of the

10

landslide-prone areas of this Commonwealth to form a common

11

bond to combat distress resulting from landslides.

12

Section 103.  Definitions.

13

The following words and phrases when used in this act shall

14

have the meanings given to them in this section unless the

15

context clearly indicates otherwise:

16

"Agency."  The Pennsylvania Emergency Management Agency.

<--

17

"Assistance fund."  The Landslide Assistance Fund established

18

in section 702.

19

"Board."  The Landslide Insurance and Assistance Board

20

established in section 302.

21

"Community."  Either of the following:

22

(1)  A political subdivision that has zoning and building

23

code jurisdiction over an area having landslide hazards.

24

(2)  A political subdivision that is designated to

25

develop and administer a mitigation plan.

26

"Department."  The Department of Environmental Protection of

<--

27

the Commonwealth.

28

"Extremely hazardous area."  An area where all of the

29

following factors that contribute to landslides occur in the

30

same location:

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1

(1)  Steep slopes.

2

(2)  Soils prone to landslides.

3

(3)  Landslide features.

4

"Further review area."  An area for which additional site-

5

specific review is needed based on a geological map or model

6

identifying the area as including a site prone to experience a

7

landslide.

8

"GIS."  Geographic Information Systems.

9

"Hazardous area."  An area where one of the following factors

10

that contribute to landslides occurs:

11

(1)  Steep slopes.

12

(2)  Soils prone to landslides.

13

(3)  Landslide features.

14

"Insurance fund."  The Landslide Insurance Fund established

15

in section 501.

16

"Landslide."  Any detached mass of soil, rock, earth or

17

debris that moves down a slope and is of sufficient size to

18

cause damage. The term includes sinkholes.

19

"Landslide features."  Includes, but is not limited to,

20

rockfall areas, creep, red beds and historic landslides.

21

"Mitigation."  An activity relative to landslides that

22

prevents an emergency from occurring, reduces the likelihood of

23

an emergency occurring or lessens the damaging effects of

24

unavoidable emergencies.

25

"Mitigation plan."  A plan designed by a community that when

26

implemented provides mitigation.

27

"Program."  The Landslide Insurance and Assistance Program

28

established in section 304.

29

CHAPTER 3

30

PROGRAM GENERALLY

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1

Section 301.  Program goals.

2

The goals of the program are as follows:

3

(1)  To provide actuarially sound insurance coverage.

4

(2)  To make program policies universally available and

5

competitively priced.

6

(3)  To make use of the most effective scientific and

7

technological advances available, including technology such

8

as GIS.

9

(4)  To process claims promptly, fairly and consistently.

10

(5)  To provide tools and incentives for landslide loss

11

reduction, including the assistance fund.

12

(6)  To collaborate with other organizations that operate

13

in the public interest to assist in achieving program goals.

14

Section 302.  Board.

15

(a)  Board established.--The Landslide Insurance and

16

Assistance Board is hereby established within the Pennsylvania

<--

17

Emergency Management Agency department.

<--

18

(b)  Members.--The board shall consist of the following

19

members:

20

(1)  The Secretary of Banking or a designee.

21

(2)  The Secretary of Community and Economic Development

22

or a designee.

23

(3)  The Secretary of Conservation and Natural Resources

24

or a designee.

25

(4)  The Secretary of Environmental Protection or a

26

designee.

27

(5)  The Insurance Commissioner or a designee.

28

(6)  The Secretary of Public Welfare or a designee.

29

(7)  The Secretary of the Commonwealth or a designee.

30

(8)  The Secretary of Transportation or a designee.

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1

(9)  The State Treasurer or a designee.

2

(10)  The Director Secretary of the Pennsylvania

<--

3

Emergency Management Agency Department of Environmental

<--

4

Protection or a designee.

5

(11)  The Executive Director of the Pennsylvania Housing

6

Finance Agency or a designee.

7

(c)  Chairperson.--The Director secretary of the Pennsylvania

<--

8

Emergency Management Agency department or the a designee shall

<--

9

serve as the chairperson of the board.

10

(d)  General counsel.--The Attorney General Office of General

<--

11

Counsel shall, ex officio, be the general counsel of the board

12

and shall appoint an attorney or attorneys as may be deemed

13

necessary to aid the board in its functioning.

14

(e)  Employees.--All employees of the board shall be employed

15

by and located in the agency department and shall be subject to

<--

16

the administrative jurisdiction and authority of the agency 

<--

17

department.

<--

18

Section 303.  Appeals.

19

Any party aggrieved by an action of the board shall have the

20

right to appeal in accordance with 2 Pa.C.S. (relating to

21

administrative law and procedure).

22

Section 304.  Program generally.

23

(a)  Establishment.--The Landslide Insurance and Assistance

24

Program is hereby established within the agency department.

<--

25

(b)  Program components.--The program shall consist of the

26

following components:

27

(1)  A grant program.

28

(2)  A revolving loan program.

29

(3)  An insurance program.

30

(c)  Purposes.--The grant program and the revolving loan

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1

program are established for the primary purposes of mitigation

2

and repairing minor structural damage. The board shall employ

3

the grant program and the revolving loan program as tools to aid

4

in the success of the insurance fund.

5

Section 305.  Program authority.

6

(a)  Intergovernmental cooperation.--The program shall:

7

(1)  Work closely with Federal, State and local agencies

8

and any other government agencies, including those of other

9

states, to accomplish program goals.

10

(2)  Create and implement a Statewide landslide

11

mitigation plan that would encourage and support local

12

mitigation efforts.

13

(3)  Investigate sites to define hazards.

14

(4)  Recommend legislation, regulations, ordinances and

15

zoning to mitigate slope instability contributed by

16

excavation and drainage.

17

(5)  Work with local governments to evaluate risk

18

associated with certain homesite development.

19

(6)  Share the most up-to-date geological surveys, in the

20

form of maps, GIS data or other useful form, and related

21

information, free of charge to government agencies and

22

appropriate representatives of communities, and at a

23

reasonable cost to all other persons. Receipts under this

24

paragraph shall be deposited in the assistance fund.

25

(7)  Inform the Department of Transportation which

26

highways are at greatest risk from landslides.

27

(8)  Notify local governments in areas with the greatest

28

risk from landslides.

29

(9)  Have the authority to consult, receive information

30

and enter into any agreements or other arrangements in order

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1

to identify and publish information with respect to all

2

landslide-prone areas, establish or update landslide-risk

3

zone data and make estimates with respect to the rates of

4

probable landslide-caused loss for the various landslide risk

5

zones for each of these areas.

6

(10)  Publish any change to landslide insurance map

7

panels.

8

(11)  Ensure that it is consistent in landslide control,

9

landslide forecasting and landslide damage prevention.

10

(b)  Studies and investigations.--

11

(1)  The program is authorized to carry out necessary

12

studies and investigations, utilizing to the maximum extent

13

practicable the existing facilities and services of other

14

Federal and Commonwealth departments or agencies, local

15

governmental agencies and any other organizations, with

16

respect to the adequacy of State and local measures in

17

landslide-prone areas as to:

18

(i)  Land management and use.

19

(ii)  Landslide control.

20

(iii)  Zoning.

21

(iv)  Landslide damage prevention.

22

(2)  The program may enter into any contracts, agreements

23

or other appropriate arrangements to carry out its authority

24

under this section. The studies and investigations shall

25

include, but not be limited to, the following:

26

(i)  Laws.

27

(ii)  Regulations.

28

(iii)  Ordinances.

29

(iv)  Zoning.

30

(v)  Building codes.

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1

(vi)  Building permits.

2

(vii)  Subdivision or other building restrictions.

3

(c)  State and local measures.--On the basis of studies and

4

investigations under subsection (b) and other information as the

5

agency department deems necessary, the program shall develop

<--

6

comprehensive criteria designed to encourage, where necessary,

7

the adoption of adequate State and local measures which, to the

8

maximum extent feasible, will:

9

(1)  Constrict the development of land which is exposed

10

to landslide damage where appropriate.

11

(2)  Guide the development of proposed construction away

12

from locations which are threatened by landslide hazards.

13

(3)  Assist in reducing damage caused by landslides.

14

(4)  Otherwise improve the long-range land management and

15

use of landslide-prone areas.

16

(d)  Technical assistance.--The program shall work closely

17

with and provide any necessary technical assistance to State and

18

local governmental agencies to encourage the application of the

19

criteria and the adoption and enforcement of the measures under

20

this section.

21

Section 306.  Land-use controls and rate structure.

22

Local governments may initiate land-use controls for the

23

benefit of their residents. The following shall apply:

24

(1)  No new landslide insurance coverage shall be

25

provided to new construction without preapproval by an

26

appropriate local public body, which shall have the option of

27

adopting adequate land use and control measures with

28

effective enforcement provisions.

29

(2)  A community rating system shall be employed by the

30

board as an incentive for community landslide management.

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1

(3)  Rate structures shall provide incentives for

2

measures that reduce the risk of landslide damage and

3

evaluate the measures. The program shall provide incentives

4

in the form of credits on premium rates for landslide

5

insurance coverage in communities that the agency department  

<--

6

determines have adopted and enforced measures that reduce the

7

risk of landslide damage.

8

(4)  The credits on premium rates for flood insurance

9

coverage shall be based on the estimated reduction in flood

10

and erosion damage risks resulting from the measures adopted

11

by the community under the program. If a community has

12

received mitigation or other assistance under the program,

13

the credits may be used in a manner determined by the agency 

<--

14

department to recover the amount of assistance provided for

<--

15

the community.

16

CHAPTER 5

17

LANDSLIDE INSURANCE FUND

18

Section 501.  Landslide Insurance Fund.

19

(a)  Establishment.--The Landslide Insurance Fund is

20

established as a separate fund in the Treasury Department. The

21

insurance fund shall be administered by the board for the

22

purpose of insuring subscribers against the damages to their

23

structures resulting from landslides if the damage is not

24

covered by other insurance programs or coverage.

25

(b)  Administration.--The insurance fund shall be

26

administered by the board without liability on the part of the

27

Commonwealth beyond the amount of the fund except as provided

28

under this act and shall be applied to the payment of damage as

29

described under subsection (a).

30

(c)  State Treasurer as custodian of insurance fund.--The

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1

State Treasurer shall be the custodian of the insurance fund,

2

and all disbursements from the insurance fund shall be paid at

3

the request of the board. For making payments without audit, the

4

State Treasurer shall not be under any liability whatsoever. The

5

State Treasurer may deposit any portion of the insurance fund

6

not needed for immediate use as other State funds are lawfully

7

deposited. The interest shall be placed to the credit of the

8

insurance fund.

9

Section 502.  Schedule of premiums.

10

At any time during each year the board shall prepare and

11

publish a schedule of premiums or rates of insurance for

12

subscribers. This schedule shall be printed and distributed free

13

of charge to any person upon application. Any subscriber may at

14

the subscriber's option pay to the insurance fund the amount of

15

premium appropriate, and upon payment of the premium shall be

16

insured for the year for which the premium is paid. The

17

insurance shall cover all payments becoming due for which the

18

premium is paid. The premium shall be adequate to enable payment

19

of all sums which may become due and payable under this act, and

20

adequate reserve sufficient to carry all policies and claims to

21

maturity. In establishing the premiums payable by any

22

subscriber, the board may take into account the condition of the

23

premises of the subscriber in respect to the possibility of

24

landslide damage as shown by the report of any inspector

25

appointed by the board or by the agency department. The board

<--

26

may change the amount of premiums payable by any of the

27

subscribers as circumstances may require and the condition of

28

the premises of the subscribers in respect to the possibility of

29

a landslide may justify. The board may increase the premiums of

30

any subscriber whose loss experience warrants a change. The

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1

insurance of any subscriber shall not be effective until the

2

premium so fixed and determined has been paid in full.

3

Section 503.  Surplus.

4

The board shall set aside 5% of all premiums collected for

5

the creation of a surplus until the surplus is sufficiently

6

large to cover catastrophic hazard of all the subscribers to the

7

insurance fund and to guarantee the solvency of the fund. At

8

such point, the board shall reevaluate the set-aside and

9

investment of the surplus and make a recommendation to the

10

General Assembly.

11

Section 504.  Insurance program.

12

(a)  General rule.--Any owner of a structure located within a

13

landslide-prone region who desires to become a subscriber to the

14

insurance fund for the purpose of insuring a structure in the

15

region against damage from landslides shall make a complete

16

application as prescribed by the board to the board, its agents

17

or insurance producers. Upon receipt of an application, the

18

board shall make an investigation as may be necessary if the

19

application complies with the rules and regulations of the

20

board. Within 60 days after the request for an application is

21

received the board shall issue a certificate showing the

22

acceptance of the application and the amount of premium payable

23

by the applicant for one, two or three years as the board may

24

establish. No insurance shall become effective until the premium

25

has been paid. All premiums shall be made payable to the State

26

Treasurer whereupon a receipt shall be issued therefor. The

27

receipt for premium together with a certificate of the board

28

shall be evidence that the applicant has become a subscriber to

29

the insurance fund and is insured from the date of application.

30

The following apply:

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1

(1)  The insurance may be subject to later reductions,

2

and premiums adjusted accordingly, if the board determines

3

that the amount of insurance coverage requested is in excess

4

of the current replacement cost of the structure or the

5

maximum amount of coverage established by the fund, whichever

6

is less.

7

(2)  The insurance shall be void if, upon investigation

8

of the structure, the board determines that either landslide

9

damage occurred before the application was submitted or the

10

applicant is responsible for not allowing the board to

11

inspect the structure within 60 days of receipt of the

12

application.

13

(3)  The use of the most current science available to

14

identify landslide-prone areas shall be employed. If the

15

property is located in a further review area within a

16

hazardous area, the property owner may be required to

17

complete a site assessment with a licensed professional,

18

which may include an onsite evaluation. The property owner

19

shall fund this assessment. This assessment may also be

20

required before a local government accepts an application for

21

a development permit.

22

(4)  Notwithstanding any other provision of law, any

23

structure repaired or restored to its original condition with

24

moneys from the insurance fund shall not be eligible for

25

duplicative disaster relief assistance from programs

26

administered by the agency Pennsylvania Emergency Management

<--

27

Agency.

28

(5)  In order to assist insurance producers and potential

29

policyholders in identifying structures that could be at risk

30

from landslides, the board shall publish and update in the

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1

Pennsylvania Bulletin a list of areas in this Commonwealth

2

that are believed to be at risk for landslide damage.

3

(b)  Penalty.--A person who knowingly furnishes or makes any

4

false certificate, application or statement required under this

5

section commits a misdemeanor and shall, upon conviction, be

6

sentenced to pay a fine of not more than $1,500 or to

7

imprisonment for not more than one year, or both.

8

Section 505.  Application for increase in insurance.

9

Additions in the amount of insurance are subject to the same

10

standards as initial applications.

11

Section 506.  Automatic inflation protection increase.

12

The board shall make available to all subscribers an annual

13

inflation protection option on the anniversary date of each

14

policy issued only if the total insurance remains at or under

15

the value of the structure itself. An inflation protection

16

increase shall not be subject to a reinspection of the

17

structure.

18

Section 507.  Audit by Auditor General.

19

The Auditor General shall at least once each year make a

20

complete examination and audit of the insurance fund, including

21

all receipts and expenditures, cash on hand, investments and

22

property held representing cash or cash disbursements. For these

23

purposes the Auditor General is hereby authorized to employ

24

agents and staff as the Auditor General may deem necessary. The

25

expense incurred in making the examination and audit shall be

26

certified to the insurance fund by the Auditor General and shall

27

be paid from the program.

28

Section 508.  Claims against insurance fund.

29

Any subscriber to the insurance fund must file with the board

30

a true statement of the subscriber's claim for any landslide

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1

damage and shall give to the board an opportunity to investigate

2

and to determine whether the board will pay the claim.

3

Section 509.  Defenses against claims and procedure.

4

In every case where a claim is made against the insurance

5

fund, the fund shall be entitled to every defense against the

6

claim under the policy and shall be subrogated to every right of

7

the subscriber arising out of such accidents against any third

8

persons. The insurance fund may, in the name of the fund, sue or

9

be sued to enforce any right given against or to any subscriber

10

or other persons under this act.

11

Section 510.  Subrogation to rights of claimants.

12

Nothing in this act shall relieve any person, partnership or

13

corporation otherwise liable therefor from any liability for

14

damages sustained by a subscriber. The insurance fund shall be

15

subrogated to the rights of any property owner's insurance under

16

this act.

17

Section 511.  Insurance companies may cover risk.

18

Any insurance company may issue policies covering the type of

19

risk provided for under this chapter subject to the prior

20

approval of the Insurance Commissioner as to policy form and

21

rates.

22

Section 512.  Escrow of premium payments.

23

Mortgage lenders shall escrow the landslide insurance premium

24

payments if they offer the purchase of the insurance.

25

Section 513.  Properties in violation of State or local law.

26

No new landslide insurance coverage shall be provided for any

27

property which the agency department finds has been declared by

<--

28

a State or local zoning authority, or other authorized public

29

body, to be in violation of State or local laws, regulations or

30

ordinances which are intended to discourage or otherwise

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1

restrict land development or occupancy in landslide-prone areas.

2

CHAPTER 7

3

MITIGATION ASSISTANCE

4

Section 701.  Mitigation assistance.

5

(a)  Financial assistance generally.--The agency department 

<--

6

shall carry out a program to provide financial assistance to

7

communities and individuals for planning and carrying out

8

activities designed to reduce the risk of landslide damage to

9

structures covered under contracts for landslide insurance.

10

Financial assistance may be made available to communities and

11

individuals in the form of grants or revolving loans for the

12

carrying out of mitigation activities. Loans shall carry an

13

interest rate of no more than 3%.

14

(b)  Grants.--The agency department may make grants under

<--

15

this section to communities to assist in developing mitigation

16

plans.

17

(c)  Eligibility.--To be eligible to receive financial

18

assistance, a community shall develop a mitigation plan that

19

describes the mitigation activities to be carried out with

20

assistance provided under this section. The mitigation plan must

21

be consistent with the criteria established by the agency 

<--

22

department and provide protection against landslide losses to

<--

23

structures for which contracts for flood insurance are available

24

under this act. The mitigation plan shall be consistent with a

25

comprehensive strategy for mitigation activities for the area

26

affected by the mitigation plan that has been adopted by the

27

community following a public hearing.

28

(d)  Procedure.--The agency department shall notify a

<--

29

community submitting a mitigation plan of the approval or

30

disapproval of the plan not later than 120 days after submission

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1

of the plan. If the agency department does not approve a

<--

2

mitigation plan submitted under this section, the agency 

<--

3

department shall notify in writing the community submitting the

<--

4

plan of the reasons for the disapproval.

5

(e)  Limitation.--Amounts provided under this section may be

6

used only for mitigation activities specified in a mitigation

7

plan approved by the agency department. The agency department 

<--

8

may approve only mitigation plans that specify mitigation

9

activities that are technically feasible and cost effective and

10

that are cost beneficial under Chapter 5.

11

(f)  Approval.--The agency department shall approve funding

<--

12

for mitigation plans based on criteria that include:

13

(1)  Criteria under subsection (e).

14

(2)  Proposed activities to address repetitive loss

15

structures and structures that have incurred substantial

16

damage.

17

(g)  Matching funds.--The agency department may require a

<--

18

community to match grant funds.

19

(h)  Oversight.--The agency department shall conduct

<--

20

oversight of recipients of mitigation assistance to ensure that

21

the assistance is used in compliance with the approved

22

mitigation plans of the recipients and that any matching fund

23

requirements are fulfilled.

24

(i)  Failure to comply.--If the agency department determines

<--

25

that a community that has received mitigation assistance has not

26

carried out the mitigation activities as set forth in the

27

mitigation plan or has not secured required matching funds, the

28

agency department shall recapture any unexpended amounts and

<--

29

redeposit the amounts in the assistance fund.

30

Section 702.  Landslide Assistance Fund.

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1

The Landslide Assistance Fund is hereby established as a

2

restricted account in the Treasury Department. The assistance

3

fund shall be administered by the agency department and shall be

<--

4

comprised of moneys appropriated provided to it for purposes of

<--

5

this chapter. All moneys in the assistance fund and the interest

<--

6

accruing thereon are appropriated to the agency on a continuing

7

basis to carry out the provisions of this chapter.

8

Section 703.  Construction permits.

9

No Commonwealth agency shall approve any financial assistance

10

for the acquisition of land for construction purposes in any

11

area that has been identified by the agency department as an

<--

12

extremely hazardous zone without approval to proceed by the

13

agency department based on the results of a risk assessment.

<--

14

CHAPTER 9

15

PROGRAM ADMINISTRATION AND FUNDING

16

Section 901.  Regulations.

17

The agency department, in conjunction with the board, may

<--

18

promulgate rules and regulations and establish other conditions

19

of the policies as it deems just and expedient in keeping with

20

the fulfillment of the purposes of this act, including

21

reasonable classification of risks eligible for coverage under

22

this act, limits of coverage and rules covering the adjustment

23

and settlement of claims.

24

Section 902.  Agency Department report.

<--

25

The agency department shall make an annual report on the

<--

26

program and on experience with landslide insurance sales through

27

producers to the General Assembly. Each report shall include

28

mitigation efforts, an analysis of the cost-effectiveness of the

29

program, accomplishments or shortcomings of the program and

30

recommendations for legislation regarding the program.

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1

Section 903.  Program funding.

2

The program shall be funded by the General Assembly through

<--

3

an appropriation of moneys to the Pennsylvania Emergency

4

Management Agency loans under section 905 until which time the

<--

5

insurance fund and assistance fund are deemed self-sufficient by

6

the General Assembly, but not more than ten years from the

<--

7

effective date of this act.

8

Section 904.  Reimbursement.

9

The program shall reimburse any Commonwealth departments for

10

agreed-upon costs of services that aid in administering the

11

program.

12

Section 905.  Appropriations Loans.

<--

13

(a)  Insurance fund.--The Coal and Clay Mine Subsidence

<--

14

Insurance Fund shall loan the sum of $2,500,000, or as much

15

thereof as may be necessary, is hereby appropriated to the

<--

16

Landslide Insurance Fund for the fiscal year July 1, 2009 2010,

<--

17

through June 30, 2010 2011.

<--

18

(b)  Assistance fund.--The Coal and Clay Mine Subsidence

<--

19

Insurance Fund shall loan the sum of $2,500,000, or as much

20

thereof as may be necessary, is hereby appropriated to the

<--

21

Landslide Assistance Fund for the fiscal year July 1, 2009 2010,

<--

22

through June 30, 2010 2011.

<--

23

(c)  Agency Department.--Moneys in the Landslide Insurance

<--

24

Fund and the Landslide Assistance Fund are hereby appropriated

25

to the Pennsylvania Emergency Management Agency department in

<--

26

such amounts as may be determined annually by the Governor to be

27

used for the specified purposes of this act.

28

(d)  Additional appropriations.--If, upon completion of the

<--

29

annual examination and audit, it is determined that the total

30

asset value of either the insurance fund or assistance fund is

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1

less than $2,500,000, such additional sum as may be necessary to

2

increase the total asset value of the fund or funds to

3

$2,500,000 shall be appropriated.

4

Section 906.  Cost of administration.

5

The board shall keep an accurate account of the money paid in

6

premiums by the subscribers and the disbursements on account of

7

damages to premises. If, at the expiration of any year there

8

shall be a balance remaining after deducting the disbursements,

9

the unearned premiums on undetermined risks and the percentage

10

of premiums paid or payable to create or maintain the surplus

11

provided under this act, and after setting aside an adequate

12

reserve, the board may determine to allocate to the cost of

13

administering the insurance fund.

14

Section 907.  Commissions.

15

Moneys from the insurance fund shall be available to pay a

16

one-time commission as determined by the board to insurance

17

producers who forward applications for landslide insurance to

18

the board if a policy is issued pursuant to an application

19

submitted by an insurance producer. The amount of the commission

20

shall be determined by the board on an annual basis.

21

CHAPTER 21

22

MISCELLANEOUS PROVISIONS

23

Section 2101.  Effective date.

24

This act shall take effect July 1, 2009 2010, or immediately,

<--

25

whichever is later.

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