Bill Text: PA HB1838 | 2011-2012 | Regular Session | Introduced

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Bill Title: Providing for small disaster assistance, for low-interest loans to individual disaster victims and businesses and for municipal grants; establishing a fund; and conferring powers and duties on various Commonwealth agencies.

Spectrum: Slight Partisan Bill (Republican 12-7)

Status: (Introduced - Dead) 2011-09-14 - Referred to VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS [HB1838 Detail]

Download: Pennsylvania-2011-HB1838-Introduced.html

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PRINTER'S NO. 2355
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1838 Session of2011
INTRODUCED BY PETRI, CALTAGIRONE, CLYMER, DeWEESE, EVERETT, GEIST, GEORGE, GIBBONS, GOODMAN, HENNESSEY, MAJOR, MICOZZIE, MURT, O'NEILL, RAPP, READSHAW, SCAVELLO, VULAKOVICH AND WAGNER, SEPTEMBER 14, 2011
REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS, SEPTEMBER 14, 2011
AN ACT
Providing for small disaster assistance, for low-interest loans
to individual disaster victims and businesses and for
municipal grants; establishing a fund; and conferring powers
and duties on various Commonwealth agencies.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Small
Disaster Assistance Act.
Section 2. Declaration of policy.
The General Assembly finds and declares as follows:
(1) Many communities in this Commonwealth frequently are
subject to natural and manmade disasters which cause
significant damage and disruption in the life of the
community but which are not of sufficient magnitude to
qualify for Federal disaster assistance programs.
(2) Nevertheless, losses under paragraph (1) are of
considerable importance to those directly affected and their
communities and to the health and welfare of the citizens of
this Commonwealth.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agency." The Pennsylvania Emergency Management Agency.
"Assistance." Any of the following:
(1) A loan under:
(i) section 6; or
(ii) section 7.
(2) A grant under section 8.
"Business." The term includes nonprofit organizations and
the nonsectarian portion of religious facilities.
"Cost-of-living increase." The amount of increase equal to
the percentage change in the Consumers Price Index for All Urban
Consumers (CPI-U) for the Pennsylvania, New Jersey, Delaware and
Maryland area for the most recent 12-month period for which
figures have been officially reported by the Bureau of Labor
Statistics immediately prior to the date the adjustment is to
take effect.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Fund." The Small Disaster Assistance Fund established in
section 4.
"Small disaster." An event which meets all of the following
paragraphs:
(1) Occurs after June 30, 2011.
(2) Results in total uninsured losses for all affected
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individuals and businesses of not more than $2,000,000.
(3) Falls below the current Federal guidelines for
Federal disaster assistance.
(4) Involves:
(i) damage exceeding 40% of the total value of a
structure and contents of each of at least five homes or
two businesses;
(ii) loss of life; or
(iii) total estimated damages of at least $250,000
to public facilities.
Section 3. Agency.
The agency has the following powers and duties:
(1) Administer the fund. This includes seeking:
(i) appropriations under section 4(c)(1); and
(ii) Federal money under section 4(c)(2).
(2) Coordinate assistance among administering agencies
under section 5(c).
(3) Make an annual report to the Secretary of the Senate
and the Chief Clerk of the House of Representative on the
implementation of this act.
Section 4. Fund.
(a) Establishment.--There is established in the State
Treasury the Small Disaster Assistance Fund.
(b) Purpose.--The purpose of the fund is to assist the
victims of small disasters with low-interest loans and grants.
(c) Sources.--The following are the sources of the fund:
(1) Appropriations.
(2) Federal money available for small disaster
assistance.
(3) Repayment of loans under this act.
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(4) Return on money in the fund.
(d) Administration.--The agency shall administer the fund.
(e) Nonlapse.--The money in the fund is continuously
appropriated into the fund. This appropriation shall not lapse
at the end of a fiscal year.
Section 5. Program.
(a) Small disaster declarations.--
(1) A county emergency management director may petition
the agency for a declaration of a small disaster.
(2) The agency shall determine whether to make the
declaration. A determination under this paragraph shall be
deemed a final order, subject to review under 2 Pa.C.S. Ch. 7
Subch. A (relating to judicial review of Commonwealth agency
action).
(b) Effect.--
(1) Except as set forth in paragraph (2), upon a
declaration under subsection (a), assistance shall be
available to individuals, businesses and municipalities,
within a county that suffered a level of physical damage from
the small disaster.
(2) Assistance shall not be available to a person that:
(i) owns property within a 100-year flood plain; and
(ii) does not have flood insurance.
(c) Administering agencies.--The agency shall coordinate
assistance with the following:
(1) For residential housing and contents, the
Pennsylvania Housing Finance Agency.
(2) For business and municipal programs, the department.
Section 6. Individual loans.
(a) Eligibility.--
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(1) An individual is eligible for a loan if, as a result
of a small disaster, the individual has suffered damage to:
(i) the real property of the individual's primary
residence; or
(ii) personal property in the individual's primary
residence.
(2) Subject to subsection (c), the loan may be for any
of the following:
(i) To investigate flood damage.
(ii) To repair or replace property under paragraph
(1). This subparagraph includes removal of debris.
(iii) Elevation of primary residence.
(iv) A flood mitigation project.
(3) The amount of the loan shall not exceed the
following:
(i) In a household comprised of more than one
individual, the lesser of:
(A) $7,500 per individual; or
(B) $30,000 per household.
(ii) In a household comprised of one individual,
$15,000.
(b) Interest.--A loan shall bear interest for the entire
term at a rate no greater than the annual cost-of-living
increase in the year in which the loan is granted.
(c) Coverage.--A loan shall cover only that portion of loss
not covered by insurance.
Section 7. Business loans.
(a) Eligibility.--A business is eligible for a loan if, as a
result of a small disaster, any of the following are lost or
seriously damaged:
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(1) Real property. This paragraph includes a leasehold
improvement.
(2) Fixed equipment.
(3) Major movable equipment.
(4) Furnishings.
(5) Inventory, if it can be shown that an insurance
policy at a reasonable premium in relation to value was not
available to replace the inventory.
(b) Purpose.--A loan may be for any of the following:
(1) To investigate flood damage.
(2) To repair or replace property under subsection (a).
This paragraph includes removal of debris.
(3) Elevation of a structure.
(4) A flood mitigation project.
(c) Security.--A loan must be secured by one of the
following:
(1) A mortgage on the real property of the business.
(2) Collateral acceptable to the department.
(d) Amount.--
(1) Subject to paragraph (2), the department may lend an
amount of up to 150% of eligible repair or replacement costs
to assist in business retention and recovery.
(2) The sum of all business loans in a fiscal year may
not be more than one-half of the money available for
expenditure in the fund in that fiscal year.
(e) Interest.--A loan shall bear interest for the entire
term at a rate no greater than the annual cost-of-living
increase in the year in which the loan is granted.
(f) Term.--
(1) Except as set forth in paragraph (2), the maximum
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term of a loan shall be 15 years.
(2) The department may extend the term under paragraph
(1) if it determines a hardship.
Section 8. Municipal grants.
(a) Eligibility.--A municipality affected by a small
disaster may apply to the department for a grant to rectify
conditions or inadequate public facilities which:
(1) led directly to the small disaster; or
(2) contributed substantially to:
(i) the occurrence of the small disaster; or
(ii) the inability of local officials to bring the
damage under control.
(b) Determination.--The department shall make a
determination on a grant based on all of the following:
(1) Eligibility under subsection (a).
(2) Available money in the fund.
(c) Use.--A grant may be used for repairing or replacing all
of the following when lost or seriously damaged due to a small
disaster:
(1) Municipal-owned buildings.
(2) Municipal-owned major equipment other than vehicles,
plows, backhoes and similar gasoline-powered or diesel-
powered mobile machinery.
(3) Municipal-owned office machines.
(4) Municipal-maintained streets.
(5) Municipal water and sewer lines and other public
utilities.
(6) Municipal recreational facilities.
Section 20. Effective date.
This act shall take effect in 60 days.
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