PRINTER'S NO. 83

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 83 Session of 1991


        INTRODUCED BY LAUGHLIN, JOHNSON, COLAIZZO, STISH, PESCI, TIGUE,
           DEMPSEY, SCRIMENTI, TRELLO, ROBINSON, KUKOVICH, DALEY,
           HARPER, STEIGHNER, PRESTON, LESCOVITZ, CIVERA, KASUNIC,
           PISTELLA, LaGROTTA, E. Z. TAYLOR, VEON AND TELEK,
           JANUARY 29, 1991

        REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 29, 1991

                                     AN ACT

     1  Amending Title 35 (Health and Safety) of the Pennsylvania
     2     Consolidated Statutes, providing for a Local Emergency Relief
     3     Fund.

     4     The General Assembly hereby finds and declares that:
     5         (1)  Current provisions of the Emergency Management
     6     Services Code authorize the Governor to provide for temporary
     7     housing and removal of debris in the event of a disaster
     8     emergency, but do not allow for direct State financial
     9     assistance, such as family grants or public assistance,
    10     unless there is a declaration of disaster by the President of
    11     the United States.
    12         (2)  Several local emergencies have occurred in recent
    13     years which have caused very substantial hardship and damage
    14     but which have not affected sufficient numbers of families or
    15     businesses to the extent necessary for a Presidential
    16     declaration, with the result that Federal disaster relief
    17     programs authorized under the Small Business Act (Public Law

     1     85-536, 15 U.S.C. § 631 et seq.) and the Disaster Relief Act
     2     of 1974 (Public Law 93-288, 88 Stat. 143) are not available
     3     to assist those victims.
     4         (3)  It is in the public interest to assist these victims
     5     in order to protect the public health, prevent economic
     6     blight and eliminate the existing disparity of treatment in
     7     Federal and State responses to emergency relief needs.
     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  Chapter 73 of Title 35 of the Pennsylvania
    11  Consolidated Statutes is amended by adding a subchapter to read:
    12                             CHAPTER 73
    13                       COMMONWEALTH SERVICES
    14                               * * *
    15                            SUBCHAPTER C
    16                   LOCAL EMERGENCY FINANCIAL AID
    17  Sec.
    18  7321.  Local Emergency Relief Fund.
    19  7322.  Grants and loans for local emergencies.
    20  7323.  False claims.
    21  § 7321.  Local Emergency Relief Fund.
    22     There is hereby created in the Office of the Governor a
    23  special nonlapsing fund known as the Local Emergency Relief Fund
    24  which shall be available only for the purposes provided in this
    25  subchapter.
    26  § 7322.  Grants and loans for local emergencies.
    27     (a)  Expenditures.--Subject to the limitations of the Local
    28  Emergency Relief Fund, including funds appropriated to the Fund
    29  from time to time by the General Assembly, the Governor may,
    30  without additional legislative authorization, expend for any
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     1  fiscal year not more than $5,000,000 for the purpose of making
     2  grants and loans to individuals, businesses and municipalities
     3  who or which are victims of local emergencies as determined by
     4  the Governor and are not otherwise eligible for Federal or State
     5  disaster relief programs.
     6     (b)  Proclamation.--Upon a determination by the Governor that
     7  the victims of a local emergency will not be eligible for other
     8  Federal or State disaster relief programs due to their falling
     9  below the overall threshold of damage required for a Federal
    10  disaster, the Governor shall issue a proclamation that
    11  assistance is required from the Local Emergency Relief Fund.
    12     (c)  Applications.--The agency shall receive applications and
    13  determine eligibility for assistance pursuant to regulations
    14  adopted under authority of this subchapter, subject to the
    15  following limitations:
    16         (1)  Grants to individuals or families shall be limited
    17     to $5,000 and shall be for the sole purposes of compensating
    18     for:
    19             (i)  Uninsured loss from damage to an owner-occupied
    20         primary residence.
    21             (ii)  Uninsured loss from damage to personal
    22         property, including clothing, household furnishings and
    23         appliances, incurred by a homeowner in his owner-occupied
    24         primary residence or incurred by a tenant in premises he
    25         rents as a primary residence.
    26             (iii)  Rental assistance for up to six months for
    27         homeowners to allow for repair of principal residences or
    28         up to two months for displaced renters.
    29         (2)  Loans to individuals or families shall be used to
    30     supplement residence repair and personal property replacement
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     1     grants available under paragraph (1). Such loans shall be
     2     limited to $100,000 for the dwelling and $20,000 for personal
     3     possessions. Loans to business entities shall be limited to
     4     $500,000. All loans under this paragraph shall be based upon
     5     certified damage assessment data. Repayment shall be on terms
     6     and conditions established by the agency by regulation,
     7     provided that annual interest shall not exceed 5%, and the
     8     repayment period shall not exceed 30 years.
     9         (3)  Grants to municipalities shall be used to repair or
    10     replace property of a political subdivision or to restore or
    11     resume governmental functions which cannot otherwise be
    12     provided due to insufficient revenues when the deficiency is
    13     caused by a local emergency. These grants shall be limited to
    14     $100,000.
    15  § 7323.  False claims.
    16     A person who fraudulently or willfully makes a misstatement
    17  of fact in connection with an application for assistance under
    18  this subchapter commits a misdemeanor of the third degree.
    19     Section 2.  The sum of $5,000,000 is hereby appropriated to
    20  the Local Emergency Relief Fund for the purposes of this act.
    21  Notwithstanding the provisions of any other act to the contrary,
    22  the funds hereby appropriated shall not lapse. Any amount in
    23  excess of $5,000,000 remaining unexpended or uncommitted after
    24  July 1 of each year, beginning in the calendar year after
    25  enactment of this subchapter, shall revert to the General Fund.
    26     Section 3.  This act shall take effect July 1, 1991, or
    27  immediately, whichever is later.


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