HOUSE AMENDED
        PRIOR PRINTER'S NOS. 730, 1202, 1446          PRINTER'S NO. 1990

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 642 Session of 1985


        INTRODUCED BY O'CONNELL, ZEMPRELLI, SALVATORE, BRIGHTBILL,
           LOEPER, MELLOW, FUMO, LYNCH, STAPLETON AND ANDREZESKI,
           MARCH 27, 1985

        AS REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, APRIL 7, 1986

                                     AN ACT

     1  Providing for a community services block grant program; and       <--
     2     further providing for powers and duties of the Department of
     3     Community Affairs.

     4                         TABLE OF CONTENTS
     5  Section 1.  Short title.
     6  Section 2.  Declaration of policy.
     7  Section 3.  Definitions.
     8  Section 4.  Eligibility for community services block grant funds
     9                 and designation of community action agencies.
    10  Section 5.  Community action agencies and board.
    11  Section 6.  Financial assistance for community services block
    12                 grant program.
    13  Section 7.  Monitoring of community action agency.
    14  Section 8.  Fiscal control and fund accounting.
    15  Section 9.  Remedies.
    16  Section 10.  Waivers.
    17  Section 11.  Expiration.

     1  Section 12.  Effective date.
     2  AMENDING THE ACT OF MARCH 28, 1986 (P.L.   , NO.25), ENTITLED     <--
     3     "AN ACT PROVIDING FOR GRANTS TO PERSONS FOR PROPERTY DAMAGED
     4     OR DESTROYED BY TORNADO OR FLOOD; ESTABLISHING THE BASIS FOR
     5     THE GRANTS; AND MAKING AN APPROPRIATION," EXTENDING THE
     6     PROVISIONS OF THIS ACT TO CERTAIN DISASTERS OCCURRING IN
     7     CALENDAR YEARS 1984 AND 1986; PROVIDING A MORATORIUM ON
     8     CERTAIN ASSESSMENTS; AND MAKING AN APPROPRIATION.
     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11  Section 1.  Short title.                                          <--
    12     This act shall be known and may be cited as the Community
    13  Services Act.
    14  Section 2.  Declaration of policy.
    15     The General Assembly finds and declares as follows:
    16         (1)  It is the intention of the General Assembly as a
    17     matter of public policy to affirm the commitment of the
    18     Commonwealth to ameliorating the causes and effect of poverty
    19     by:
    20             (i)  Providing a range of services and activities
    21         having a measurable and potentially major impact on the
    22         causes of poverty in the community and establishing
    23         grants for organizations providing services to migrant
    24         and seasonal farmworkers.
    25             (ii)  Providing activities designed to assist low-
    26         income participants in obtaining employment, education,
    27         housing, emergency assistance, transportation and other
    28         necessities.
    29             (iii)  Providing, on an emergency basis, for the
    30         provision of such supplies and services, nutritious
    19850S0642B1990                  - 2 -

     1         foodstuffs and related services as may be necessary to
     2         counteract conditions of starvation and malnutrition
     3         among the poor.
     4             (iv)  Coordinating and establishing linkages between
     5         governmental and other social service programs to assure
     6         the effective delivery of services to low-income
     7         individuals.
     8             (v)  Encouraging the use of entities in the private
     9         sector in efforts to ameliorate poverty in the community.
    10         (2)  It is also the intention of the General Assembly to
    11     stimulate a better focusing of human and financial resources
    12     on the goal of eliminating poverty by providing for the
    13     continuity of programs which presently exist throughout this
    14     Commonwealth for this stated purpose.
    15         (3)  By so doing, it is the intention of the General
    16     Assembly to set forth the policies which shall govern the
    17     administration of the community services block grant or
    18     subsequent funding mechanisms established for similar
    19     purposes. This block grant was created by the Omnibus Budget
    20     Reconciliation Act of 1981 (Public Law 97-35, 95 Stat. 357)
    21     and follows the provisions defined in that act.
    22  Section 3.  Definitions.
    23     The following words and phrases when used in this act shall
    24  have the meanings given to them in this section unless the
    25  context clearly indicates otherwise:
    26     "Community action agency."  Any organization which was
    27  officially designated by county commissioners or mayors as such
    28  under the Omnibus Budget Reconciliation Act of 1981 (Public Law
    29  97-35, 95 Stat. 357) or established pursuant to this act, whose
    30  structure and functions are further defined in sections 4 and 5.
    19850S0642B1990                  - 3 -

     1     "Community services block grant."  A program authorized by
     2  the Omnibus Budget Reconciliation Act of 1981 which follows the
     3  provision defined in Title XVII, Subtitle C, Chapter 2, which is
     4  intended to be used by the Commonwealth for programs to
     5  ameliorate the causes and effects of poverty.
     6     "Community Services Block Grant Advisory Task Force."  An
     7  advisory panel established by the department pursuant to the
     8  Omnibus Budget Reconciliation Act of 1981 to:
     9         (1)  coordinate and establish linkages between
    10     governmental and other social services programs as
    11     established by this act to assure the effective delivery of
    12     such services to low-income individuals; and
    13         (2)  encourage the use of entities in the private sector
    14     of the community to ameliorate poverty.
    15     "Department."  The Department of Community Affairs of the
    16  Commonwealth, or the designated agency responsible for the
    17  administration of community service block grant funds.
    18     "Eligible entity."  Any agency or organization designated in
    19  the Omnibus Budget Reconciliation Act of 1981 as an eligible
    20  recipient of community services block grant funds, including a
    21  limited purpose agency and a Statewide migrant and seasonal
    22  farmworkers' organization.
    23     "Limited purpose agency."  An agency that was funded under
    24  Title II of the Economic Opportunity Act of 1964 (Public Law 88-
    25  452, 78 Stat. 508) for a limited functional or geographical
    26  purpose and recognized as a community action program under the
    27  Omnibus Budget Reconciliation Act of 1981.
    28     "Secretary."  The Secretary of Community Affairs of the
    29  Commonwealth, or the designated individual responsible for the
    30  administration of community service block grant funds.
    19850S0642B1990                  - 4 -

     1  Section 4.  Eligibility for community services block grant funds
     2                 and designation of community action agencies.
     3     (a)  Community action agency receives block grants.--Each
     4  county and first and second class city within this Commonwealth
     5  to receive funds under this act shall have a community action
     6  agency designated to receive community services block grant
     7  funds. These community action agencies may be an arm of the
     8  designating unit of government or nonprofit private community
     9  organization, constituted so that one-third of the members of
    10  the board of directors are elected public officials currently
    11  holding offices or their representatives, except that if the
    12  number of elected officials reasonably available and willing to
    13  serve is less than one-third of the board membership, membership
    14  on the board of appointive officials may be counted in meeting
    15  such one-third requirement; at least one-third are persons
    16  chosen in accordance with democratic selection procedures
    17  adequate to assure that they are representative of the poor in
    18  the area served; and the remainder of the members are officials
    19  or members of business, industry, labor, religious, welfare,
    20  education, or other major groups and interests in the community.
    21     (b)  Present agencies included for eligibility.--This
    22  designation includes all present community action agencies and
    23  other eligible entities established under the Omnibus Budget
    24  Reconciliation Act of 1981 (Public Law 97-35, 95 Stat. 357). In
    25  counties and first and second class cities where there is no
    26  community action agency, the department shall provide services
    27  through another eligible agency, which shall receive community
    28  service block grant funds specifically for this purpose.
    29  Section 5.  Community action agencies and board.
    30     (a)  Powers of agency.--Each community action agency
    19850S0642B1990                  - 5 -

     1  designated and created pursuant to the criteria set forth in
     2  section 4 shall:
     3         (1)  Develop and implement programs and projects designed
     4     in accordance with Federal regulations established under the
     5     Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35,
     6     95 Stat. 357) to serve the poor or low-income areas with
     7     maximum feasible participation of residents of the areas and
     8     members of the groups served, so as to best stimulate and
     9     take full advantage of capabilities for self-advancement and
    10     assure that those programs and projects are otherwise
    11     meaningful to and widely utilized by their intended
    12     beneficiaries.
    13         (2)  Be a continuing and effective mechanism for securing
    14     broad community involvement in the programs assisted under
    15     this act.
    16         (3)  Provide effective coordination of existing community
    17     action programs with other Federal and State funds provided
    18     within the jurisdictional area targeted to the low-income
    19     population to avoid duplication of efforts within the area.
    20     (b)  Functions of agency.--In exercising its powers and
    21  carrying out its overall responsibility for a community action
    22  program, a community action agency shall have, subject to the
    23  purposes of this act, at least the following functions:
    24         (1)  Planning systematically for and evaluating the
    25     programs, including actions to develop information as to the
    26     problems and causes of poverty in the community; determining
    27     how much and how effectively assistance is being provided to
    28     deal with those problems and causes; and establishing
    29     priorities among projects, activities and areas as needed for
    30     the best and most efficient use of resources.
    19850S0642B1990                  - 6 -

     1         (2)  Encouraging agencies engaged in activities related
     2     to the community action program to plan for, secure and
     3     administer assistance available under this act or from other
     4     sources on a common or cooperative basis; providing planning
     5     or technical assistance to those agencies; and generally, in
     6     cooperation with community agencies and officials,
     7     undertaking actions to improve existing efforts to attack
     8     poverty, such as improving day-to-day communication, closing
     9     service gaps, focusing resources on the most needy and
    10     providing additional opportunities to low-income individuals
    11     for regular employment or participation in the programs or
    12     activities for which those community agencies and officials
    13     are responsible.
    14         (3)  Initiating and sponsoring projects responsive to
    15     needs of the poor which are not otherwise being met, with
    16     particular emphasis on providing central or common services
    17     that can be drawn upon by a variety of related programs;
    18     developing new approaches or new types of services that can
    19     be incorporated into other programs; and filling gaps pending
    20     the expansion or modification of those programs.
    21         (4)  Establishing effective procedures by which the poor
    22     and area residents concerned will be enabled to influence the
    23     character of programs affecting their interests, and
    24     providing technical and other support needed to enable the
    25     poor and neighborhood groups to secure on their own behalf
    26     available assistance from public and private sources.
    27         (5)  Joining with and encouraging business, labor and
    28     other private groups and organizations to undertake, together
    29     with public officials and agencies, activities in support of
    30     the community action program which will result in the
    19850S0642B1990                  - 7 -

     1     additional use of private resources and capabilities, with a
     2     view to such things as developing new employment
     3     opportunities, stimulating investment that will have a
     4     measurable impact in reducing poverty among residents of
     5     areas of concentrated poverty, and providing methods by which
     6     residents of those areas can work with private groups, firms
     7     and institutions in seeking solutions to problems of common
     8     concern.
     9     (c)  Prohibition of activities.--No community action agency
    10  or limited purpose agency receiving funds pursuant to this act
    11  may use those funds to engage in organized political activity,
    12  including, but not limited to, endorsement of candidates for
    13  public office, political fundraising, activities to provide
    14  voters and prospective voters with transportation to the polls
    15  or provide similar assistance in connection with an election or
    16  any voter registration activity or lobbying efforts at the
    17  local, State or Federal level.
    18  Section 6.  Financial assistance for community services block
    19                 grant program.
    20     (a)  Apportionment of appropriations.--To help meet the
    21  department's objective of establishing community action agencies
    22  to provide services to all counties within this Commonwealth,
    23  the sum appropriated under the community services block grant
    24  shall be distributed as follows:
    25         (1)  No greater than 5% shall be allotted to the
    26     department for the administration of program operations.
    27         (2)  No less than 5% may be allotted at the discretion of
    28     the secretary in a manner consistent with this act.
    29         (3)  Of the remaining 90%, no greater than 5% may be
    30     alloted to establish community action agencies in those areas
    19850S0642B1990                  - 8 -

     1     currently unserved; no less than 85% shall be reserved for
     2     existing community action agencies and other eligible
     3     entities as defined in section 3.
     4         (4)  A formula basis shall be established for the
     5     distribution of funds reserved for community action agencies.
     6     The formula shall include consideration of the number of
     7     persons below the poverty level and the number of persons
     8     unemployed, as determined annually by the United States
     9     Department of Labor, and shall include a minimum funding
    10     level of community services block grant funds for existing
    11     community action agencies meeting the requirements of the
    12     Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35,
    13     95 Stat. 357) and a Statewide migrant and seasonal
    14     farmworkers' organization approved by the secretary.
    15         (5)  A minimum funding level of only community service
    16     block grant funds shall be set at $150,000.
    17         (6)  In the event Federal funds are insufficient to meet
    18     the minimum funding levels, the determination of annual
    19     funding levels shall be made by the secretary based on input
    20     from the local agencies and the Community Services Block
    21     Grant Advisory Task Force.
    22     (b)  Grant prerequisite.--The secretary shall require, as a
    23  condition of assistance, that each community action agency or
    24  other eligible agency designated for funding adopt a systematic
    25  approach for achieving the functions stated in section 5(b) and
    26  for utilizing the funds provided under this act. Such an
    27  approach shall encompass a planning and implementation process
    28  which seeks to identify the problems and causes of poverty in
    29  the community, seeks to mobilize and coordinate relevant public
    30  and private resources, establishes program priorities, links
    19850S0642B1990                  - 9 -

     1  program components with one another and with other relevant
     2  programs and provides for evaluation.
     3     (c)  Program priorities.--The secretary may establish
     4  Statewide priorities for the offering of specific services or
     5  type of services. In establishing these priorities, the
     6  secretary shall consider the recommendations of the Community
     7  Services Block Grant Advisory Task Force.
     8     (d)  Determination of local services.--To promote local
     9  responsibility and initiatives, decisions regarding which of the
    10  qualified services shall be provided shall be established
    11  through a local planning process administered by the local
    12  agency. The plan should be based on the recommendations of the
    13  local board and the public at large and the Statewide priorities
    14  established by the secretary. Each local agency shall submit its
    15  plan to the department for review to ensure eligibility of
    16  proposed services under the provision of Federal law and
    17  regulations and consistency, to the extent possible, with the
    18  Statewide priorities.
    19  Section 7.  Monitoring of community action agency.
    20     (a)  Monitoring procedures.--It shall be the policy of the
    21  department to monitor the community action agencies to assure
    22  compliance with all contractual obligations and to assess the
    23  effectiveness of local agencies in meeting the objectives of
    24  this act as outlined in section 2, and to assess the impact of
    25  Statewide priorities on local services. Monitoring procedures
    26  shall be established annually by the department and published as
    27  part of the State plan.
    28     (b)  Onsite visits.--If determined to be necessary by the
    29  department, the department may conduct an agency onsite visit.
    30  The department may conduct an onsite visit to clarify
    19850S0642B1990                 - 10 -

     1  discrepancies that may result from monitoring procedures, to
     2  review agency records regarding programs funded pursuant to this
     3  act, interview agency personnel and board members, and interview
     4  agency constituents and other local human services agencies.
     5     (c)  Preparation of report.--The department shall prepare a
     6  report, using the findings of the monitoring procedures and
     7  onsite visits, if conducted, which identifies agency strengths
     8  and weaknesses and any required remedial actions. A copy of the
     9  report shall be forwarded by certified mail to the community
    10  action agency. The agency may request a conference with the
    11  department to discuss the report.
    12  Section 8.  Fiscal control and fund accounting.
    13     Under the provisions of the Omnibus Budget Reconciliation Act
    14  of 1981 (Public Law 97-35, 95 Stat. 357), the department shall:
    15         (1)  Provide that fiscal control and fund accounting
    16     procedures be established as may be necessary to assure the
    17     proper disbursement of and accounting for Federal funds paid
    18     to the Commonwealth. This includes procedures which may be
    19     necessary for monitoring the assistance provided to community
    20     action agencies and other eligible agencies under the
    21     provisions of that act.
    22         (2)  Provide that at least once a year the department
    23     shall prepare an audit of its expenditures of amounts
    24     received and transferred to carry out the purposes of this
    25     section. If the auditing and monitoring procedures result in
    26     any audit exceptions or disallowed costs on the part of any
    27     local agency, the local agency shall reimburse the department
    28     for said audit exceptions and disallowed costs from non-State
    29     and non-Federal funds.
    30         (3)  Permit and cooperate with Federal investigations
    19850S0642B1990                 - 11 -

     1     undertaken pursuant to section 679 of the Omnibus Budget
     2     Reconciliation Act of 1981.
     3  Section 9.  Remedies.
     4     (a)  Notice of discrepancy or violation.--If a discrepancy or
     5  violation of this act is discovered through monitoring and
     6  auditing activities of the department, the department shall
     7  notify the community action agency of the discrepancy or
     8  violation immediately.
     9     (b)  Agency response.--The agency shall respond to the
    10  department's notice of discrepancy or violation within two weeks
    11  of receipt of said notice by written correspondence to, or by
    12  requesting a meeting with, the department to negotiate or
    13  clarify facts.
    14     (c)  Agency noncompliance.--If the community action agency is
    15  found to have been in noncompliance with the provisions of this
    16  act, the department shall have the power to do any of the
    17  following:
    18         (1)  Demand that the community action agency comply with
    19     this act.
    20         (2)  Place the community action agency on probation until
    21     the agency complies with this act.
    22     (d)  Agency violation.--Notwithstanding subsection (b), if
    23  the department determines that a violation has occurred with
    24  willful disregard for this act, the department may do any of the
    25  following:
    26         (1)  Suspend the operation of the community action agency
    27     for a designated period of time. The agency must then rectify
    28     the violation and reestablish itself as competent as
    29     determined by the department to carry out those
    30     responsibilities enumerated in this statute for a community
    19850S0642B1990                 - 12 -

     1     action agency.
     2         (2)  Close out the operation of the community action
     3     agency through the process of defunding, in accordance with
     4     Federal law and regulations. If closeout is approved by the
     5     secretary, a minimum of 30 days' notice shall be given to the
     6     agency. The department shall oversee agency equipment
     7     inventory transfer to other agencies.
     8     (e)  Right of appeal.--The community action agency shall, at
     9  all times, retain the right to appeal any departmental
    10  adjudications concerning this program as otherwise provided by
    11  law.
    12  Section 10.  Waivers.
    13     If a determination is made by the Department of Health and
    14  Human Services that any provisions of this act are in violation
    15  of Federal law or regulations and would jeopardize Federal
    16  funding, the secretary shall have the right to waive those
    17  sections, or portions thereof, whose enforcement constitutes
    18  said violations.
    19  Section 11.  Expiration.
    20     This act shall expire in three years unless extended by
    21  statute.
    22  Section 12.  Effective date.
    23     This act shall take effect immediately.
    24     SECTION 1.  THE TITLE AND SECTIONS 1, 2 AND 3 OF THE ACT OF    <--
    25  MARCH 28, 1986 (P.L.   , NO.25), ENTITLED "AN ACT PROVIDING FOR
    26  GRANTS TO PERSONS FOR PROPERTY DAMAGED OR DESTROYED BY TORNADO
    27  OR FLOOD; ESTABLISHING THE BASIS FOR THE GRANTS; AND MAKING AN
    28  APPROPRIATION," ITEM VETOED IN PART, ARE AMENDED TO READ:
    29                               AN ACT
    30  PROVIDING FOR GRANTS TO PERSONS FOR PROPERTY DAMAGED OR
    19850S0642B1990                 - 13 -

     1     DESTROYED BY TORNADO OR FLOOD; ESTABLISHING THE BASIS FOR THE
     2     GRANTS AND TAX MORATORIA; AND MAKING [AN APPROPRIATION]
     3     APPROPRIATIONS.
     4  SECTION 1.  [POWER TO ADMINISTER EMERGENCY FUNDS TO DISASTER-
     5                 STRICKEN COUNTIES.
     6     (A)  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:
     7         (1)  DURING 1985, TORNADOES AND FLOODING OCCURRED IN
     8     SEVERAL COUNTIES OF THIS COMMONWEALTH, CAUSING SUBSTANTIAL
     9     DAMAGES, IN EXCESS OF $60,000,000, TO PRIVATE HOMES, IN
    10     ADDITION TO THE DAMAGE TO BUSINESSES, INDUSTRY AND PUBLIC
    11     FACILITIES.
    12         (2)  FEDERAL EMERGENCY DECLARATIONS DESIGNATED CERTAIN
    13     AREAS AS ELIGIBLE FOR EMERGENCY RELIEF.
    14         (3)  THE COMBINATION OF PRIVATE INSURANCE AND FEDERAL
    15     GRANTS AND LOANS FOR PRIVATE HOMEOWNERS PROVIDES INSUFFICIENT
    16     COMPENSATION FOR THEIR LOSSES.
    17         (4)  BECAUSE MANY OF THE VICTIMS OF THESE DISASTERS
    18     RESIDE IN AREAS WHICH PRIOR TO THE DISASTER WERE ECONOMICALLY
    19     DISTRESSED, AND BECAUSE THEIR LOSSES ARE INADEQUATELY
    20     COVERED, IT IS IN THE PUBLIC INTEREST PURSUANT TO SECTION 17
    21     OF ARTICLE VIII OF THE CONSTITUTION OF PENNSYLVANIA TO
    22     PROVIDE ADDITIONAL AID TO PRIVATE HOMEOWNERS TO SUPPLEMENT
    23     THE COMPENSATION WHICH THEY RECEIVE FROM PRIVATE INSURANCE
    24     AND THE FEDERAL GOVERNMENT.
    25     (B)  AN APPLICANT'S REQUEST FOR FUNDING SHALL BE SUBJECT TO
    26  THE FOLLOWING EVALUATION:
    27         (1)  UPON RECEIPT AND APPROVAL OF A SWORN APPLICATION BY
    28     ANY HOMEOWNER FOR NONBUSINESS OR NONFARM REAL OR PERSONAL
    29     PROPERTY DAMAGED OR DESTROYED IN A DECLARED DISASTER DURING
    30     1985, THE DEPARTMENT OF PUBLIC WELFARE MAY MAKE AN INDIVIDUAL
    19850S0642B1990                 - 14 -

     1     HOMEOWNER GRANT TO COVER A PORTION OF THE ADJUSTED LOSS.
     2         (2)  THE ADJUSTED LOSS SHALL BE THE TOTAL ELIGIBLE LOSS
     3     MINUS ANY AMOUNT RECEIVED BY OR DUE THE APPLICANT FROM
     4     PRIVATE INSURANCE AND FEDERAL OR STATE GRANTS AND SHALL NOT
     5     INCLUDE ANY INSURANCE DEDUCTIBLE PAID BY THE HOMEOWNER.
     6         (3)  TOTAL ELIGIBLE LOSS SHALL BE ANY LOSS FROM DAMAGE TO
     7     AN OWNER-OCCUPIED PRIMARY RESIDENCE, AND ANY LOSS FROM DAMAGE
     8     TO PERSONAL PROPERTY, INCLUDING CLOTHING, HOUSEHOLD
     9     FURNISHINGS AND APPLIANCES. ELIGIBLE LOSS SHALL NOT INCLUDE
    10     ANY ITEM USED PRINCIPALLY FOR RECREATIONAL PURPOSES.
    11         (4)  HOMEOWNERS WHOSE HOUSEHOLD 1985 INCOME DOES NOT
    12     EXCEED 300% OF THE 1985 POVERTY INCOME GUIDELINES SHALL BE
    13     ELIGIBLE TO PARTICIPATE IN THIS GRANT PROGRAM. THE HOMEOWNER,
    14     IN ORDER TO BE ELIGIBLE FOR THIS PROGRAM, MUST HAVE
    15     REGISTERED AT A DISASTER ASSISTANCE CENTER, UNLESS
    16     EXTENUATING CIRCUMSTANCES PREVENTED HIM OR HER FROM DOING SO.
    17     EXTENUATING CIRCUMSTANCES SHALL BE DETERMINED ON AN
    18     INDIVIDUAL BASIS.
    19         (5)  THE AMOUNT OF THE GRANT SHALL BE DETERMINED IN
    20     ACCORDANCE WITH THE FOLLOWING SCHEDULE:
    21             (I)  75% OF THE FIRST $5,000 OF ADJUSTED LOSS.
    22             (II)  50% OF THE SECOND $5,000 OF ADJUSTED LOSS.
    23             (III)  10% OF THE REMAINING ADJUSTED LOSS.
    24             (IV)  NO GRANT SHALL EXCEED $12,500.
    25     (C)  IF THE REAL PROPERTY WAS CONDEMNED UNDER EMINENT DOMAIN
    26  PROCEEDINGS AND WHERE THE MEASURE OF DAMAGE IS CALCULATED UNDER
    27  SECTION 602 OF THE ACT OF JUNE 22, 1964 (SP.SESS., P.L.84,
    28  NO.6), KNOWN AS THE EMINENT DOMAIN CODE, THE PROPERTY OWNER
    29  SHALL NOT BE ELIGIBLE FOR A GRANT UNDER SUBSECTION (B) FOR
    30  PROPERTY FOR WHICH COMPENSATION IS GRANTED IN THE EMINENT DOMAIN
    19850S0642B1990                 - 15 -

     1  PROCEEDINGS.
     2     (D)  THE DEPARTMENT OF PUBLIC WELFARE SHALL ADMINISTER THE
     3  PROGRAM IN THE FOLLOWING MANNER:
     4         (1)  ALL GRANTS UNDER THIS ACT SHALL BE ADMINISTERED BY
     5     THE DEPARTMENT OF PUBLIC WELFARE IN PROMPT FASHION.
     6         (2)  APPLICATIONS SHALL BE AVAILABLE TO DISASTER VICTIMS
     7     WITHIN 60 DAYS OF THE EFFECTIVE DATE OF THIS ACT.
     8         (3)  IF SUFFICIENT FUNDS ARE NOT ALLOCATED UNDER THIS
     9     ACT, DISTRIBUTION OF THE GRANTS SHALL BE ON A PRO RATA BASIS.
    10         (4)  THE DEPARTMENT OF PUBLIC WELFARE MAY PROMULGATE
    11     RULES AND REGULATIONS NECESSARY TO CARRY OUT THE PROVISIONS
    12     OF THIS ACT.
    13     (E)  THE SUM OF $15,000,000, OR AS MUCH THEREOF AS MAY BE
    14  NECESSARY, IS HEREBY APPROPRIATED TO THE DEPARTMENT OF PUBLIC
    15  WELFARE FOR THE PURPOSES OF THIS ACT. NOTWITHSTANDING THE
    16  PROVISIONS OF ANY OTHER ACT TO THE CONTRARY, THE FUNDS HEREBY
    17  APPROPRIATED SHALL NOT LAPSE UNTIL JUNE 30, 1987.
    18     (F)  A PERSON MAKING A FALSE CLAIM UNDER THE PROVISIONS OF
    19  THIS ACT SHALL BE SUBJECT TO A PENALTY IN THE AMOUNT OF THREE
    20  TIMES THE AMOUNT OF THE GRANT WITH INTEREST OF 6% FROM THE DATE
    21  OF THE GRANT. THIS PENALTY MAY BE ENFORCED BY THE COMMONWEALTH
    22  IN AN ASSUMPSIT ACTION AND COLLECTED IN THE MANNER THAT OTHER
    23  DEBTS DUE AND OWING THE COMMONWEALTH ARE COLLECTED.
    24  SECTION 2.  RULES AND REGULATIONS.
    25     IN ORDER TO FACILITATE THE SPEEDY IMPLEMENTATION OF THE
    26  PROGRAM, THE DEPARTMENT OF PUBLIC WELFARE SHALL HAVE THE POWER
    27  AND AUTHORITY TO PROMULGATE AND ADOPT AND USE REGULATIONS THAT
    28  SHALL BE PUBLISHED IN THE PENNSYLVANIA BULLETIN. THE REGULATIONS
    29  SHALL NOT BE SUBJECT TO REVIEW PURSUANT TO THE ACT OF JUNE 25,
    30  1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY REVIEW ACT.
    19850S0642B1990                 - 16 -

     1  SECTION 3.  EFFECTIVE DATE.
     2     THIS ACT SHALL TAKE EFFECT IMMEDIATELY AND SHALL APPLY
     3  RETROACTIVELY TO ALL DISASTERS FOR WHICH THE PRESIDENTIAL
     4  DECLARATION WAS ISSUED IN CALENDAR YEAR 1985.]
     5  LEGISLATIVE INTENT.
     6     THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:
     7         (1)  DURING AUGUST 1984 AND DURING 1985, TORNADOES AND
     8     FLOODING OCCURRED IN SEVERAL COUNTIES OF THIS COMMONWEALTH,
     9     CAUSING SUBSTANTIAL DAMAGES, IN EXCESS OF $60,000,000, TO
    10     PRIVATE HOMES, IN ADDITION TO THE DAMAGE TO BUSINESSES,
    11     INDUSTRY AND PUBLIC FACILITIES.
    12         (2)  FEDERAL EMERGENCY DECLARATIONS DESIGNATED CERTAIN
    13     AREAS AS ELIGIBLE FOR EMERGENCY RELIEF.
    14         (3)  THE COMBINATION OF PRIVATE INSURANCE AND FEDERAL
    15     GRANTS AND LOANS FOR PRIVATE HOMEOWNERS PROVIDES INSUFFICIENT
    16     COMPENSATION FOR THEIR LOSSES.
    17         (4)  ON MARCH 14, 15 AND 16, 1986, HOMEOWNERS INCURRED
    18     SUBSTANTIAL LOSS BY REASON OF FLOODING IN SEVERAL AREAS OF
    19     THIS COMMONWEALTH.
    20         (5)  BECAUSE MANY OF THE VICTIMS OF THESE DISASTERS
    21     RESIDE IN AREAS WHICH PRIOR TO THE DISASTER WERE ECONOMICALLY
    22     DISTRESSED, AND BECAUSE THEIR LOSSES ARE INADEQUATELY
    23     COVERED, IT IS IN THE PUBLIC INTEREST PURSUANT TO SECTION 17
    24     OF ARTICLE VIII OF THE CONSTITUTION OF PENNSYLVANIA TO
    25     PROVIDE ADDITIONAL AID TO PRIVATE HOMEOWNERS TO SUPPLEMENT
    26     THE COMPENSATION WHICH THEY RECEIVE FROM PRIVATE INSURANCE
    27     AND THE FEDERAL GOVERNMENT.
    28  SECTION 2.  EMERGENCY FUNDS TO DISASTER-STRICKEN COUNTIES.
    29     (A)  PROGRAM.--THE DEPARTMENT OF PUBLIC WELFARE SHALL
    30  ADMINISTER A PROGRAM WHICH PROVIDES EMERGENCY FUNDS TO RESIDENTS
    19850S0642B1990                 - 17 -

     1  OF COUNTIES STRICKEN BY THE DISASTROUS FLOODS AND TORNADOES OF
     2  1984 AND 1985 WHICH WERE THE SUBJECT OF FEDERAL EMERGENCY
     3  DECLARATIONS.
     4     (B)  ELIGIBILITY.--AN APPLICANT'S REQUEST FOR FUNDING SHALL
     5  BE SUBJECT TO THE FOLLOWING EVALUATION:
     6         (1)  UPON RECEIPT AND APPROVAL OF A SWORN APPLICATION BY
     7     ANY HOMEOWNER FOR NONBUSINESS OR NONFARM REAL OR PERSONAL
     8     PROPERTY DAMAGED OR DESTROYED IN A DECLARED DISASTER DURING
     9     1984 OR 1985, OR DAMAGED OR DESTROYED BY FLOODING DURING
    10     MARCH 14, 15 AND 16, 1986, THE DEPARTMENT OF PUBLIC WELFARE
    11     MAY MAKE AN INDIVIDUAL HOMEOWNER GRANT TO COVER A PORTION OF
    12     THE ADJUSTED LOSS.
    13         (2)  THE ADJUSTED LOSS SHALL BE THE TOTAL ELIGIBLE LOSS
    14     MINUS ANY AMOUNT RECEIVED BY OR DUE THE APPLICANT FROM
    15     PRIVATE INSURANCE AND FEDERAL OR STATE GRANTS AND SHALL NOT
    16     INCLUDE ANY INSURANCE DEDUCTIBLE PAID BY THE HOMEOWNER.
    17         (3)  TOTAL ELIGIBLE LOSS SHALL BE ANY LOSS FROM DAMAGE TO
    18     AN OWNER-OCCUPIED PRIMARY RESIDENCE, AND ANY LOSS FROM DAMAGE
    19     TO PERSONAL PROPERTY, INCLUDING CLOTHING, HOUSEHOLD
    20     FURNISHINGS AND APPLIANCES. ELIGIBLE LOSS SHALL NOT INCLUDE
    21     ANY ITEM USED PRINCIPALLY FOR RECREATIONAL PURPOSES.
    22         (4)  HOMEOWNERS WHOSE HOUSEHOLD 1985 INCOME DOES NOT
    23     EXCEED 300% OF THE 1985 POVERTY INCOME GUIDELINES SHALL BE
    24     ELIGIBLE TO PARTICIPATE IN THIS GRANT PROGRAM. THE HOMEOWNER,
    25     IN ORDER TO BE ELIGIBLE FOR THIS PROGRAM BY REASON OF A LOSS
    26     IN A DECLARED DISASTER DURING 1984 OR 1985, MUST HAVE
    27     REGISTERED AT A DISASTER ASSISTANCE CENTER, UNLESS
    28     EXTENUATING CIRCUMSTANCES PREVENTED HIM OR HER FROM DOING SO.
    29     EXTENUATING CIRCUMSTANCES SHALL BE DETERMINED ON AN
    30     INDIVIDUAL BASIS.
    19850S0642B1990                 - 18 -

     1         (5)  THE AMOUNT OF THE GRANT SHALL BE DETERMINED IN
     2     ACCORDANCE WITH THE FOLLOWING SCHEDULE:
     3             (I)  75% OF THE FIRST $5,000 OF ADJUSTED LOSS.
     4             (II)  50% OF THE SECOND $5,000 OF ADJUSTED LOSS.
     5             (III)  10% OF THE REMAINING ADJUSTED LOSS.
     6             (IV)  NO GRANT SHALL EXCEED $12,500.
     7     (C)  LIMITATION ON ELIGIBILITY.--IF THE REAL PROPERTY WAS
     8  CONDEMNED UNDER EMINENT DOMAIN PROCEEDINGS AND WHERE THE MEASURE
     9  OF DAMAGE IS CALCULATED UNDER SECTION 602 OF THE ACT OF JUNE 22,
    10  1964 (SP.SESS., P.L.84, NO.6), KNOWN AS THE EMINENT DOMAIN CODE,
    11  THE PROPERTY OWNER SHALL NOT BE ELIGIBLE FOR A GRANT UNDER
    12  SUBSECTION (B) FOR PROPERTY FOR WHICH COMPENSATION IS GRANTED IN
    13  THE EMINENT DOMAIN PROCEEDINGS.
    14     (D)  ADMINISTRATION.--THE DEPARTMENT OF PUBLIC WELFARE SHALL
    15  ADMINISTER THE PROGRAM IN THE FOLLOWING MANNER:
    16         (1)  ALL GRANTS UNDER THIS ACT SHALL BE ADMINISTERED BY
    17     THE DEPARTMENT OF PUBLIC WELFARE IN PROMPT FASHION.
    18         (2)  APPLICATIONS SHALL BE AVAILABLE TO DISASTER VICTIMS
    19     WITHIN 60 DAYS OF THE EFFECTIVE DATE OF THIS ACT.
    20         (3)  IF SUFFICIENT FUNDS ARE NOT ALLOCATED UNDER THIS
    21     ACT, DISTRIBUTION OF THE GRANTS SHALL BE ON A PRO RATA BASIS.
    22     (E)  RULES AND REGULATIONS.--IN ORDER TO FACILITATE THE
    23  SPEEDY IMPLEMENTATION OF THE PROGRAM, THE DEPARTMENT OF PUBLIC
    24  WELFARE SHALL HAVE THE POWER AND AUTHORITY TO PROMULGATE AND
    25  ADOPT AND USE REGULATIONS THAT SHALL BE PUBLISHED IN THE
    26  PENNSYLVANIA BULLETIN. THE REGULATIONS SHALL NOT BE SUBJECT TO
    27  REVIEW PURSUANT TO THE ACT OF JUNE 25, 1982 (P.L.633, NO.181),
    28  KNOWN AS THE REGULATORY REVIEW ACT.
    29     (F)  PENALTY.--A PERSON MAKING A FALSE CLAIM UNDER THE
    30  PROVISIONS OF THIS ACT SHALL BE SUBJECT TO A PENALTY IN THE
    19850S0642B1990                 - 19 -

     1  AMOUNT OF THREE TIMES THE AMOUNT OF THE GRANT WITH INTEREST OF
     2  6% FROM THE DATE OF THE GRANT. THIS PENALTY MAY BE ENFORCED BY
     3  THE COMMONWEALTH IN AN ASSUMPSIT ACTION AND COLLECTED IN THE
     4  MANNER THAT OTHER DEBTS DUE AND OWING THE COMMONWEALTH ARE
     5  COLLECTED.
     6     (G)  APPROPRIATION.--THE SUM OF $15,000,000, OR AS MUCH
     7  THEREOF AS MAY BE NECESSARY, IS HEREBY APPROPRIATED TO THE
     8  DEPARTMENT OF PUBLIC WELFARE FOR THE PURPOSES OF THIS ACT.
     9  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER ACT TO THE CONTRARY,
    10  THE FUNDS HEREBY APPROPRIATED SHALL NOT LAPSE UNTIL JUNE 30,
    11  1987.
    12  SECTION 3.  MORATORIUM ON ASSESSMENTS.
    13     (A)  RESIDENCES OR BUSINESSES REBUILT OR REPAIRED.--A TAXING
    14  AUTHORITY SHALL NOT INCREASE THE REAL PROPERTY ASSESSMENT AMOUNT
    15  FOR ANY RESIDENCES OR BUSINESSES REBUILT OR REPAIRED BY A
    16  HOMEOWNER IN A DESIGNATED NATURAL DISASTER AREA DUE TO
    17  DESTRUCTION OR DAMAGE RESULTING FROM A NATURAL DISASTER BY MORE
    18  THAN 20% DURING THE FIRST YEAR, 40% DURING THE SECOND YEAR, 60%
    19  DURING THE THIRD YEAR AND 80% DURING THE FOURTH YEAR. DURING THE
    20  FIFTH AND FINAL YEAR OF THIS FREEZE, REAL PROPERTY MAY BE
    21  ASSESSED AT 100% OF THE REAL MARKET VALUE OF THE PROPERTY.
    22     (B)  TIME PERIOD OF MORATORIUM.--THE MORATORIUM ON
    23  ASSESSMENTS PROVIDED FOR IN THIS SECTION SHALL BE FOR A PERIOD
    24  OF FIVE YEARS FOLLOWING THE BEGINNING OR STARTUP OF ANY
    25  RECONSTRUCTION OR REPAIR OF DAMAGED PROPERTY.
    26     (C)  NOTICE.--TAXING AUTHORITIES SHALL PUBLISH NOTICE OF THE
    27  MORATORIUM ON ASSESSMENTS PROVIDED FOR IN THIS SECTION. NOTICES
    28  SHALL BE PUBLISHED IN NEWSPAPERS WITH GENERAL CIRCULATION IN THE
    29  AFFECTED AREAS.
    30     (D)  TERM.--THIS MORATORIUM SHALL END FIVE YEARS AFTER THE
    19850S0642B1990                 - 20 -

     1  DATE OF THE PROCLAMATION WHICH DECLARED THE AREA A DISASTER.
     2     (E)  APPROPRIATION.--THE SUM OF $1,000,000, OR AS MUCH
     3  THEREOF AS MAY BE NECESSARY, IS HEREBY APPROPRIATED TO THE
     4  DEPARTMENT OF COMMUNITY AFFAIRS FOR ALLOCATION TO A TAXING
     5  AUTHORITY WHICH SUFFERS A REVENUE LOSS DUE TO THIS ACT.
     6     (F)  DEFINITION.--AS USED IN THIS SECTION THE TERM "TAXING
     7  AUTHORITY" MEANS A MUNICIPALITY OR OTHER POLITICAL SUBDIVISION
     8  AUTHORIZED TO ASSESS REAL PROPERTY FOR THE PURPOSE OF LOCAL
     9  PROPERTY TAXES.
    10     (G)  APPLICATION.--THIS SECTION SHALL APPLY TO RESIDENCES
    11  DESTROYED OR DAMAGED ON OR AFTER JANUARY 1, 1984.
    12     SECTION 2.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
    13  SECTION 4.  RETROACTIVITY.
    14     THIS ACT SHALL APPLY RETROACTIVELY TO DISASTERS FOR WHICH THE
    15  PRESIDENTIAL DECLARATION WAS ISSUED IN CALENDAR YEAR 1984 OR
    16  1985.
    17  SECTION 5.  ADDITIONAL APPLICATION.
    18     THIS ACT SHALL ALSO APPLY TO HOMEOWNERS WHO INCURRED LOSS
    19  CAUSED BY FLOODING DURING MARCH 14, 15 AND 16, 1986.
    20  SECTION 6.  EFFECTIVE DATE.
    21     THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
    22     SECTION 3.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.






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