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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY DeLUCA, CALTAGIRONE, D. COSTA, GEORGE, KIRKLAND, KOTIK, MATZIE, MURT, MUSTIO, READSHAW, YOUNGBLOOD AND KORTZ, FEBRUARY 15, 2011 |
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| REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 15, 2011 |
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| AN ACT |
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1 | Establishing the Landslide Insurance and Assistance Program |
2 | within the Department of Environmental Protection; providing |
3 | for related powers and duties of the Pennsylvania Emergency |
4 | Management Agency; establishing and providing for the powers |
5 | and duties of the Landslide Insurance and Assistance Board; |
6 | establishing the Landslide Insurance Fund and the Landslide |
7 | Assistance Fund; and providing for loans from the Coal and |
8 | Clay Mine Subsidence Insurance Fund. |
9 | TABLE OF CONTENTS |
10 | Chapter 1. Preliminary Provisions |
11 | Section 101. Short title. |
12 | Section 102. Declaration of policy. |
13 | Section 103. Definitions. |
14 | Chapter 3. Program Generally |
15 | Section 301. Program goals. |
16 | Section 302. Board. |
17 | Section 303. Appeals. |
18 | Section 304. Program generally. |
19 | Section 305. Program authority. |
20 | Section 306. Land use controls and rate structure. |
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1 | Chapter 5. Landslide Insurance Fund |
2 | Section 501. Landslide Insurance Fund. |
3 | Section 502. Schedule of premiums. |
4 | Section 503. Surplus. |
5 | Section 504. Insurance program. |
6 | Section 505. Application for increase in insurance. |
7 | Section 506. Automatic inflation protection increase. |
8 | Section 507. Audit by Auditor General. |
9 | Section 508. Claims against insurance fund. |
10 | Section 509. Defenses against claims and procedure. |
11 | Section 510. Subrogation to rights of claimants. |
12 | section 511. Insurance companies may cover risk. |
13 | Section 512. Escrow of premium payments. |
14 | Section 513. Properties in violation of State or local law. |
15 | Chapter 7. Mitigation Assistance |
16 | Section 701. Mitigation assistance. |
17 | Section 702. Landslide Assistance Fund. |
18 | Section 703. Construction permits. |
19 | Chapter 9. Program Administration and Funding |
20 | Section 901. Regulations. |
21 | Section 902. Department report. |
22 | Section 903. Program funding. |
23 | Section 904. Reimbursement. |
24 | Section 905. Loans. |
25 | Section 906. Cost of administration. |
26 | Section 907. Commissions. |
27 | Chapter 21. Miscellaneous Provisions |
28 | Section 2101. Effective date. |
29 | The General Assembly of the Commonwealth of Pennsylvania |
30 | hereby enacts as follows: |
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1 | CHAPTER 1 |
2 | PRELIMINARY PROVISIONS |
3 | Section 101. Short title. |
4 | This act shall be known and may be cited as the Landslide |
5 | Insurance and Assistance Program Act. |
6 | Section 102. Declaration of policy. |
7 | The General Assembly finds and declares as follows: |
8 | (1) Geologists have studied with increasing concern the |
9 | underground movement of the geological formations in this |
10 | Commonwealth and its impeding effects on the vertical and |
11 | horizontal natural and manmade surfaces. |
12 | (2) Landslides and slope movement have historically been |
13 | the norm throughout most parts of this Commonwealth. |
14 | (3) Landslides and slope movements occur without regard |
15 | for municipal boundaries, ordinances, planning codes, |
16 | politics and economies, making it difficult for local |
17 | officials to deal effectively with the development and |
18 | implementation of methods and standards to control the |
19 | devastation these natural forces can cause. |
20 | (4) Landslides and slope movement have caused an |
21 | enormous amount of damage to homes and roadways in this |
22 | Commonwealth, particularly the southwestern region of the |
23 | State. |
24 | (5) Landslides and slope movement will continue to |
25 | plague southwestern Pennsylvania. |
26 | (6) Landslides affect every state in the nation causing |
27 | an estimated $1,000,000,000 to $3,000,000,000 in damages a |
28 | year. |
29 | (7) Landslide damage caused by flooding is not covered |
30 | by the National Flood Insurance Program. |
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1 | (8) While landslide damage caused by mining practices is |
2 | covered by the Coal and Clay Mine Subsidence Insurance Fund |
3 | and mudslide damage is covered by the National Flood |
4 | Insurance Program, other types of landslide damage are |
5 | usually not covered by insurance. |
6 | (9) Problems associated with landslide damage are |
7 | becoming more widespread. |
8 | (10) It would be to the advantage of residents of the |
9 | landslide-prone areas of this Commonwealth to form a common |
10 | bond to combat distress resulting from landslides. |
11 | Section 103. Definitions. |
12 | The following words and phrases when used in this act shall |
13 | have the meanings given to them in this section unless the |
14 | context clearly indicates otherwise: |
15 | "Assistance fund." The Landslide Assistance Fund established |
16 | in section 702. |
17 | "Board." The Landslide Insurance and Assistance Board |
18 | established in section 302. |
19 | "Community." Either of the following: |
20 | (1) A political subdivision that has zoning and building |
21 | code jurisdiction over an area having landslide hazards. |
22 | (2) A political subdivision that is designated to |
23 | develop and administer a mitigation plan. |
24 | "Department." The Department of Environmental Protection of |
25 | the Commonwealth. |
26 | "Extremely hazardous area." An area where all of the |
27 | following factors that contribute to landslides occur in the |
28 | same location: |
29 | (1) Steep slopes. |
30 | (2) Soils prone to landslides. |
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1 | (3) Landslide features. |
2 | "Further review area." An area for which additional site- |
3 | specific review is needed based on a geological map or model |
4 | identifying the area as including a site prone to experience a |
5 | landslide. |
6 | "GIS." Geographic Information Systems. |
7 | "Hazardous area." An area where one of the following factors |
8 | that contribute to landslides occurs: |
9 | (1) Steep slopes. |
10 | (2) Soils prone to landslides. |
11 | (3) Landslide features. |
12 | "Insurance fund." The Landslide Insurance Fund established |
13 | in section 501. |
14 | "Landslide." Any detached mass of soil, rock, earth or |
15 | debris that moves down a slope and is of sufficient size to |
16 | cause damage. The term includes sinkholes. |
17 | "Landslide features." Includes, but is not limited to, |
18 | rockfall areas, creep, red beds and historic landslides. |
19 | "Mitigation." An activity relative to landslides that |
20 | prevents an emergency from occurring, reduces the likelihood of |
21 | an emergency occurring or lessens the damaging effects of |
22 | unavoidable emergencies. |
23 | "Mitigation plan." A plan designed by a community that when |
24 | implemented provides mitigation. |
25 | "Program." The Landslide Insurance and Assistance Program |
26 | established in section 304. |
27 | CHAPTER 3 |
28 | PROGRAM GENERALLY |
29 | Section 301. Program goals. |
30 | The goals of the program are as follows: |
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1 | (1) To provide actuarially sound insurance coverage. |
2 | (2) To make program policies universally available and |
3 | competitively priced. |
4 | (3) To make use of the most effective scientific and |
5 | technological advances available, including technology such |
6 | as GIS. |
7 | (4) To process claims promptly, fairly and consistently. |
8 | (5) To provide tools and incentives for landslide loss |
9 | reduction, including the assistance fund. |
10 | (6) To collaborate with other organizations that operate |
11 | in the public interest to assist in achieving program goals. |
12 | Section 302. Board. |
13 | (a) Board established.--The Landslide Insurance and |
14 | Assistance Board is hereby established within the department. |
15 | (b) Members.--The board shall consist of the following |
16 | members: |
17 | (1) The Secretary of Community and Economic Development |
18 | or a designee. |
19 | (2) The Secretary of Conservation and Natural Resources |
20 | or a designee. |
21 | (3) The Secretary of Environmental Protection or a |
22 | designee. |
23 | (4) The Insurance Commissioner or a designee. |
24 | (5) The State Treasurer or a designee. |
25 | (c) Chairperson.--The secretary of the department or a |
26 | designee shall serve as the chairperson of the board. |
27 | (d) General counsel.--The Office of General Counsel shall, |
28 | ex officio, be the general counsel of the board and shall |
29 | appoint an attorney or attorneys as may be deemed necessary to |
30 | aid the board in its functioning. |
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1 | (e) Employees.--All employees of the board shall be employed |
2 | by and located in the department and shall be subject to the |
3 | administrative jurisdiction and authority of the department. |
4 | Section 303. Appeals. |
5 | Any party aggrieved by an action of the board shall have the |
6 | right to appeal in accordance with 2 Pa.C.S. (relating to |
7 | administrative law and procedure). |
8 | Section 304. Program generally. |
9 | (a) Establishment.--The Landslide Insurance and Assistance |
10 | Program is hereby established within the department. |
11 | (b) Program components.--The program shall consist of the |
12 | following components: |
13 | (1) A grant program. |
14 | (2) A revolving loan program. |
15 | (3) An insurance program. |
16 | (c) Purposes.--The grant program and the revolving loan |
17 | program are established for the primary purposes of mitigation |
18 | and repairing minor structural damage. The board shall employ |
19 | the grant program and the revolving loan program as tools to aid |
20 | in the success of the insurance fund. |
21 | Section 305. Program authority. |
22 | (a) Intergovernmental cooperation.--The program shall: |
23 | (1) Work closely with Federal, State and local agencies |
24 | and any other government agencies, including those of other |
25 | states, to accomplish program goals. |
26 | (2) Create and implement a Statewide landslide |
27 | mitigation plan that would encourage and support local |
28 | mitigation efforts. |
29 | (3) Investigate sites to define hazards. |
30 | (4) Recommend legislation, regulations, ordinances and |
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1 | zoning to mitigate slope instability contributed by |
2 | excavation and drainage. |
3 | (5) Work with local governments to evaluate risk |
4 | associated with certain homesite development. |
5 | (6) Share the most up-to-date geological surveys, in the |
6 | form of maps, GIS data or other useful form, and related |
7 | information, free of charge to government agencies and |
8 | appropriate representatives of communities, and at a |
9 | reasonable cost to all other persons. Receipts under this |
10 | paragraph shall be deposited in the assistance fund. |
11 | (7) Inform the Department of Transportation which |
12 | highways are at greatest risk from landslides. |
13 | (8) Notify local governments in areas with the greatest |
14 | risk from landslides. |
15 | (9) Have the authority to consult, receive information |
16 | and enter into any agreements or other arrangements in order |
17 | to identify and publish information with respect to all |
18 | landslide-prone areas, establish or update landslide-risk |
19 | zone data and make estimates with respect to the rates of |
20 | probable landslide-caused loss for the various landslide risk |
21 | zones for each of these areas. |
22 | (10) Publish any change to landslide insurance map |
23 | panels. |
24 | (11) Ensure that it is consistent in landslide control, |
25 | landslide forecasting and landslide damage prevention. |
26 | (b) Studies and investigations.-- |
27 | (1) The program is authorized to carry out necessary |
28 | studies and investigations, utilizing to the maximum extent |
29 | practicable the existing facilities and services of other |
30 | Federal and Commonwealth departments or agencies, local |
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1 | governmental agencies and any other organizations, with |
2 | respect to the adequacy of State and local measures in |
3 | landslide-prone areas as to: |
4 | (i) Land management and use. |
5 | (ii) Landslide control. |
6 | (iii) Zoning. |
7 | (iv) Landslide damage prevention. |
8 | (2) The program may enter into any contracts, agreements |
9 | or other appropriate arrangements to carry out its authority |
10 | under this section. The studies and investigations shall |
11 | include, but not be limited to, the following: |
12 | (i) Laws. |
13 | (ii) Regulations. |
14 | (iii) Ordinances. |
15 | (iv) Zoning. |
16 | (v) Building codes. |
17 | (vi) Building permits. |
18 | (vii) Subdivision or other building restrictions. |
19 | (c) State and local measures.--On the basis of studies and |
20 | investigations under subsection (b) and other information as the |
21 | department deems necessary, the program shall develop |
22 | comprehensive criteria designed to encourage, where necessary, |
23 | the adoption of adequate State and local measures which, to the |
24 | maximum extent feasible, will: |
25 | (1) Constrict the development of land which is exposed |
26 | to landslide damage where appropriate. |
27 | (2) Guide the development of proposed construction away |
28 | from locations which are threatened by landslide hazards. |
29 | (3) Assist in reducing damage caused by landslides. |
30 | (4) Otherwise improve the long-range land management and |
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1 | use of landslide-prone areas. |
2 | (d) Technical assistance.--The program shall work closely |
3 | with and provide any necessary technical assistance to State and |
4 | local governmental agencies to encourage the application of the |
5 | criteria and the adoption and enforcement of the measures under |
6 | this section. |
7 | Section 306. Land-use controls and rate structure. |
8 | Local governments may initiate land-use controls for the |
9 | benefit of their residents. The following shall apply: |
10 | (1) No new landslide insurance coverage shall be |
11 | provided to new construction without preapproval by an |
12 | appropriate local public body, which shall have the option of |
13 | adopting adequate land use and control measures with |
14 | effective enforcement provisions. |
15 | (2) A community rating system shall be employed by the |
16 | board as an incentive for community landslide management. |
17 | (3) Rate structures shall provide incentives for |
18 | measures that reduce the risk of landslide damage and |
19 | evaluate the measures. The program shall provide incentives |
20 | in the form of credits on premium rates for landslide |
21 | insurance coverage in communities that the department |
22 | determines have adopted and enforced measures that reduce the |
23 | risk of landslide damage. |
24 | (4) The credits on premium rates for flood insurance |
25 | coverage shall be based on the estimated reduction in flood |
26 | and erosion damage risks resulting from the measures adopted |
27 | by the community under the program. If a community has |
28 | received mitigation or other assistance under the program, |
29 | the credits may be used in a manner determined by the |
30 | department to recover the amount of assistance provided for |
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1 | the community. |
2 | CHAPTER 5 |
3 | LANDSLIDE INSURANCE FUND |
4 | Section 501. Landslide Insurance Fund. |
5 | (a) Establishment.--The Landslide Insurance Fund is |
6 | established as a separate fund in the Treasury Department. The |
7 | insurance fund shall be administered by the board for the |
8 | purpose of insuring subscribers against the damages to their |
9 | structures resulting from landslides if the damage is not |
10 | covered by other insurance programs or coverage. |
11 | (b) Administration.--The insurance fund shall be |
12 | administered by the board without liability on the part of the |
13 | Commonwealth beyond the amount of the fund except as provided |
14 | under this act and shall be applied to the payment of damage as |
15 | described under subsection (a). |
16 | (c) State Treasurer as custodian of insurance fund.--The |
17 | State Treasurer shall be the custodian of the insurance fund, |
18 | and all disbursements from the insurance fund shall be paid at |
19 | the request of the board. For making payments without audit, the |
20 | State Treasurer shall not be under any liability whatsoever. The |
21 | State Treasurer may deposit any portion of the insurance fund |
22 | not needed for immediate use as other State funds are lawfully |
23 | deposited. The interest shall be placed to the credit of the |
24 | insurance fund. |
25 | Section 502. Schedule of premiums. |
26 | At any time during each year the board shall prepare and |
27 | publish a schedule of premiums or rates of insurance for |
28 | subscribers. This schedule shall be printed and distributed free |
29 | of charge to any person upon application. Any subscriber may at |
30 | the subscriber's option pay to the insurance fund the amount of |
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1 | premium appropriate, and upon payment of the premium shall be |
2 | insured for the year for which the premium is paid. The |
3 | insurance shall cover all payments becoming due for which the |
4 | premium is paid. The premium shall be adequate to enable payment |
5 | of all sums which may become due and payable under this act, and |
6 | adequate reserve sufficient to carry all policies and claims to |
7 | maturity. In establishing the premiums payable by any |
8 | subscriber, the board may take into account the condition of the |
9 | premises of the subscriber in respect to the possibility of |
10 | landslide damage as shown by the report of any inspector |
11 | appointed by the board or by the department. The board may |
12 | change the amount of premiums payable by any of the subscribers |
13 | as circumstances may require and the condition of the premises |
14 | of the subscribers in respect to the possibility of a landslide |
15 | may justify. The board may increase the premiums of any |
16 | subscriber whose loss experience warrants a change. The |
17 | insurance of any subscriber shall not be effective until the |
18 | premium so fixed and determined has been paid in full. |
19 | Section 503. Surplus. |
20 | The board shall set aside 5% of all premiums collected for |
21 | the creation of a surplus until the surplus is sufficiently |
22 | large to cover catastrophic hazard of all the subscribers to the |
23 | insurance fund and to guarantee the solvency of the fund. At |
24 | such point, the board shall reevaluate the set-aside and |
25 | investment of the surplus and make a recommendation to the |
26 | General Assembly. |
27 | Section 504. Insurance program. |
28 | (a) General rule.--Any owner of a structure located within a |
29 | landslide-prone region who desires to become a subscriber to the |
30 | insurance fund for the purpose of insuring a structure in the |
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1 | region against damage from landslides shall make a complete |
2 | application as prescribed by the board to the board, its agents |
3 | or insurance producers. Upon receipt of an application, the |
4 | board shall make an investigation as may be necessary if the |
5 | application complies with the rules and regulations of the |
6 | board. Within 60 days after the request for an application is |
7 | received the board shall issue a certificate showing the |
8 | acceptance of the application and the amount of premium payable |
9 | by the applicant for one, two or three years as the board may |
10 | establish. No insurance shall become effective until the premium |
11 | has been paid. All premiums shall be made payable to the State |
12 | Treasurer whereupon a receipt shall be issued therefor. The |
13 | receipt for premium together with a certificate of the board |
14 | shall be evidence that the applicant has become a subscriber to |
15 | the insurance fund and is insured from the date of application. |
16 | The following apply: |
17 | (1) The insurance may be subject to later reductions, |
18 | and premiums adjusted accordingly, if the board determines |
19 | that the amount of insurance coverage requested is in excess |
20 | of the current replacement cost of the structure or the |
21 | maximum amount of coverage established by the fund, whichever |
22 | is less. |
23 | (2) The insurance shall be void if, upon investigation |
24 | of the structure, the board determines that either landslide |
25 | damage occurred before the application was submitted or the |
26 | applicant is responsible for not allowing the board to |
27 | inspect the structure within 60 days of receipt of the |
28 | application. |
29 | (3) The use of the most current science available to |
30 | identify landslide-prone areas shall be employed. If the |
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1 | property is located in a further review area within a |
2 | hazardous area, the property owner may be required to |
3 | complete a site assessment with a licensed professional, |
4 | which may include an onsite evaluation. The property owner |
5 | shall fund this assessment. This assessment may also be |
6 | required before a local government accepts an application for |
7 | a development permit. |
8 | (4) Notwithstanding any other provision of law, any |
9 | structure repaired or restored to its original condition with |
10 | moneys from the insurance fund shall not be eligible for |
11 | duplicative disaster relief assistance from programs |
12 | administered by the Pennsylvania Emergency Management Agency |
13 | or other Commonwealth agency. |
14 | (5) In order to assist insurance producers and potential |
15 | policyholders in identifying structures that could be at risk |
16 | from landslides, the board shall publish and update in the |
17 | Pennsylvania Bulletin a list of areas in this Commonwealth |
18 | that are believed to be at risk for landslide damage. |
19 | (b) Penalty.--A person who knowingly furnishes or makes any |
20 | false certificate, application or statement required under this |
21 | section commits a misdemeanor and shall, upon conviction, be |
22 | sentenced to pay a fine of not more than $1,500 or to |
23 | imprisonment for not more than one year, or both. |
24 | Section 505. Application for increase in insurance. |
25 | Additions in the amount of insurance are subject to the same |
26 | standards as initial applications. |
27 | Section 506. Automatic inflation protection increase. |
28 | The board shall make available to all subscribers an annual |
29 | inflation protection option on the anniversary date of each |
30 | policy issued only if the total insurance remains at or under |
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1 | the value of the structure itself. An inflation protection |
2 | increase shall not be subject to a reinspection of the |
3 | structure. |
4 | Section 507. Audit by Auditor General. |
5 | The Auditor General shall at least once each year make a |
6 | complete examination and audit of the insurance fund, including |
7 | all receipts and expenditures, cash on hand, investments and |
8 | property held representing cash or cash disbursements. For these |
9 | purposes the Auditor General is hereby authorized to employ |
10 | agents and staff as the Auditor General may deem necessary. The |
11 | expense incurred in making the examination and audit shall be |
12 | certified to the insurance fund by the Auditor General and shall |
13 | be paid from the program. |
14 | Section 508. Claims against insurance fund. |
15 | Any subscriber to the insurance fund must file with the board |
16 | a true statement of the subscriber's claim for any landslide |
17 | damage and shall give to the board an opportunity to investigate |
18 | and to determine whether the board will pay the claim. |
19 | Section 509. Defenses against claims and procedure. |
20 | In every case where a claim is made against the insurance |
21 | fund, the fund shall be entitled to every defense against the |
22 | claim under the policy and shall be subrogated to every right of |
23 | the subscriber arising out of such accidents against any third |
24 | persons. The insurance fund may, in the name of the fund, sue or |
25 | be sued to enforce any right given against or to any subscriber |
26 | or other persons under this act. |
27 | Section 510. Subrogation to rights of claimants. |
28 | Nothing in this act shall relieve any person, partnership or |
29 | corporation otherwise liable therefor from any liability for |
30 | damages sustained by a subscriber. The insurance fund shall be |
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1 | subrogated to the rights of any property owner's insurance under |
2 | this act. |
3 | Section 511. Insurance companies may cover risk. |
4 | Any insurance company may issue policies covering the type of |
5 | risk provided for under this chapter subject to the prior |
6 | approval of the Insurance Commissioner as to policy form and |
7 | rates. |
8 | Section 512. Escrow of premium payments. |
9 | Mortgage lenders shall escrow the landslide insurance premium |
10 | payments if they offer the purchase of the insurance. |
11 | Section 513. Properties in violation of State or local law. |
12 | No new landslide insurance coverage shall be provided for any |
13 | property which the department finds has been declared by a State |
14 | or local zoning authority, or other authorized public body, to |
15 | be in violation of State or local laws, regulations or |
16 | ordinances which are intended to discourage or otherwise |
17 | restrict land development or occupancy in landslide-prone areas. |
18 | CHAPTER 7 |
19 | MITIGATION ASSISTANCE |
20 | Section 701. Mitigation assistance. |
21 | (a) Financial assistance generally.--The department shall |
22 | carry out a program to provide financial assistance to |
23 | communities and individuals for planning and carrying out |
24 | activities designed to reduce the risk of landslide damage to |
25 | structures covered under contracts for landslide insurance. |
26 | Financial assistance may be made available to communities and |
27 | individuals in the form of grants or revolving loans for the |
28 | carrying out of mitigation activities. Loans shall carry an |
29 | interest rate of no more than 3%. |
30 | (b) Grants.--The department may make grants under this |
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1 | section to communities to assist in developing mitigation plans. |
2 | (c) Eligibility.--To be eligible to receive financial |
3 | assistance, a community shall develop a mitigation plan that |
4 | describes the mitigation activities to be carried out with |
5 | assistance provided under this section. The mitigation plan must |
6 | be consistent with the criteria established by the department |
7 | and provide protection against landslide losses to structures |
8 | for which contracts for flood insurance are available under this |
9 | act. The mitigation plan shall be consistent with a |
10 | comprehensive strategy for mitigation activities for the area |
11 | affected by the mitigation plan that has been adopted by the |
12 | community following a public hearing. |
13 | (d) Procedure.--The department shall notify a community |
14 | submitting a mitigation plan of the approval or disapproval of |
15 | the plan not later than 120 days after submission of the plan. |
16 | If the department does not approve a mitigation plan submitted |
17 | under this section, the department shall notify in writing the |
18 | community submitting the plan of the reasons for the |
19 | disapproval. |
20 | (e) Limitation.--Amounts provided under this section may be |
21 | used only for mitigation activities specified in a mitigation |
22 | plan approved by the department. The department may approve only |
23 | mitigation plans that specify mitigation activities that are |
24 | technically feasible and cost effective and that are cost |
25 | beneficial under Chapter 5. |
26 | (f) Approval.--The department shall approve funding for |
27 | mitigation plans based on criteria that include: |
28 | (1) Criteria under subsection (e). |
29 | (2) Proposed activities to address repetitive loss |
30 | structures and structures that have incurred substantial |
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1 | damage. |
2 | (g) Matching funds.--The department may require a community |
3 | to match grant funds. |
4 | (h) Oversight.--The department shall conduct oversight of |
5 | recipients of mitigation assistance to ensure that the |
6 | assistance is used in compliance with the approved mitigation |
7 | plans of the recipients and that any matching fund requirements |
8 | are fulfilled. |
9 | (i) Failure to comply.--If the department determines that a |
10 | community that has received mitigation assistance has not |
11 | carried out the mitigation activities as set forth in the |
12 | mitigation plan or has not secured required matching funds, the |
13 | department shall recapture any unexpended amounts and redeposit |
14 | the amounts in the assistance fund. |
15 | Section 702. Landslide Assistance Fund. |
16 | The Landslide Assistance Fund is hereby established as a |
17 | restricted account in the Treasury Department. The assistance |
18 | fund shall be administered by the department and shall be |
19 | comprised of moneys provided to it for purposes of this chapter. |
20 | Section 703. Construction permits. |
21 | No Commonwealth agency shall approve any financial assistance |
22 | for the acquisition of land for construction purposes in any |
23 | area that has been identified by the department as an extremely |
24 | hazardous zone without approval to proceed by the department |
25 | based on the results of a risk assessment. |
26 | CHAPTER 9 |
27 | PROGRAM ADMINISTRATION AND FUNDING |
28 | Section 901. Regulations. |
29 | The department, in conjunction with the board, may promulgate |
30 | rules and regulations and establish other conditions of the |
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1 | policies as it deems just and expedient in keeping with the |
2 | fulfillment of the purposes of this act, including reasonable |
3 | classification of risks eligible for coverage under this act, |
4 | limits of coverage and rules covering the adjustment and |
5 | settlement of claims. |
6 | Section 902. Department report. |
7 | The department shall make an annual report on the program and |
8 | on experience with landslide insurance sales through producers |
9 | to the General Assembly. Each report shall include mitigation |
10 | efforts, an analysis of the cost-effectiveness of the program, |
11 | accomplishments or shortcomings of the program and |
12 | recommendations for legislation regarding the program. |
13 | Section 903. Program funding. |
14 | The program shall be funded by loans under section 905 until |
15 | the insurance fund and assistance fund are deemed self- |
16 | sufficient by the General Assembly, but not more than ten years |
17 | from the effective date of this act. |
18 | Section 904. Reimbursement. |
19 | The program shall reimburse any Commonwealth departments for |
20 | agreed-upon costs of services that aid in administering the |
21 | program. |
22 | Section 905. Loans. |
23 | (a) Insurance fund.--The Coal and Clay Mine Subsidence |
24 | Insurance Fund shall lend the sum of $2,500,000, or as much |
25 | thereof as may be necessary, to the Landslide Insurance Fund for |
26 | the fiscal year July 1, 2012, through June 30, 2013. |
27 | (b) Assistance fund.--The Coal and Clay Mine Subsidence |
28 | Insurance Fund shall lend the sum of $2,500,000, or as much |
29 | thereof as may be necessary, to the Landslide Assistance Fund |
30 | for the fiscal year July 1, 2012, through June 30, 2013. |
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1 | (c) Department.--Moneys in the Landslide Insurance Fund and |
2 | the Landslide Assistance Fund are hereby appropriated to the |
3 | department in such amounts as may be determined annually by the |
4 | Governor to be used for the specified purposes of this act. |
5 | Section 906. Cost of administration. |
6 | The board shall keep an accurate account of the money paid in |
7 | premiums by the subscribers and the disbursements on account of |
8 | damages to premises. If, at the expiration of any year there |
9 | shall be a balance remaining after deducting the disbursements, |
10 | the unearned premiums on undetermined risks and the percentage |
11 | of premiums paid or payable to create or maintain the surplus |
12 | provided under this act, and after setting aside an adequate |
13 | reserve, the board may determine to allocate to the cost of |
14 | administering the insurance fund. |
15 | Section 907. Commissions. |
16 | Moneys from the insurance fund shall be available to pay a |
17 | one-time commission as determined by the board to insurance |
18 | producers who forward applications for landslide insurance to |
19 | the board if a policy is issued pursuant to an application |
20 | submitted by an insurance producer. The amount of the commission |
21 | shall be determined by the board on an annual basis. |
22 | CHAPTER 21 |
23 | MISCELLANEOUS PROVISIONS |
24 | Section 2101. Effective date. |
25 | This act shall take effect July 1, 2011, or immediately, |
26 | whichever is later. |
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