PRINTER'S NO. 918
No. 860 Session of 1999
INTRODUCED BY MARKOSEK, SAINATO, PETRARCA, STEELMAN, PESCI,
TIGUE, DALEY, HARHAI, ROBINSON, TRELLO, BELFANTI, RUFFING,
YOUNGBLOOD, PRESTON, M. COHEN, WASHINGTON AND MICHLOVIC,
MARCH 10, 1999
REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY
PREPAREDNESS, MARCH 10, 1999
AN ACT
1 Amending Title 35 (Health and Safety) of the Pennsylvania
2 Consolidated Statutes, creating the State Disaster Assistance
3 Loan Program; providing for powers and duties of the
4 Pennsylvania Emergency Management Agency; establishing the
5 State Disaster Assistance Loan Fund; and providing for
6 funding for the State Disaster Assistance Loan Program.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Chapter 73 of Title 35 of the Pennsylvania
10 Consolidated Statutes is amended by adding a subchapter to read:
11 SUBCHAPTER C
12 DISASTER ASSISTANCE LOANS
13 Sec.
14 7321. Legislative findings and purpose.
15 7322. Definitions.
16 7323. State Disaster Assistance Loan Program.
17 7324. Request for loan authorization.
18 7325. Application for and issuance of loan.
1 7326. Funding.
2 § 7321. Legislative findings and purpose.
3 (a) Findings.--The General Assembly finds as follows:
4 (1) The Commonwealth, because of its topography,
5 development and economic base, is susceptible to a wide range
6 of disasters and emergencies, including fire, flood and wind
7 and technological accidents and emergencies, that threaten
8 public health and safety as well as the economic well-being
9 of the citizens of this Commonwealth.
10 (2) The violent forces of nature and unpredictable man-
11 made accidents that occur in this Commonwealth cause damage
12 to public and private property and create conditions that
13 force businesses from their locations and families from their
14 homes. These disasters and emergencies threaten public
15 health, safety and the general welfare of affected
16 communities.
17 (3) Disasters which impact on a large area and
18 population often qualify for various forms of aid from the
19 Federal Government to help repair and replace damaged
20 residences. More localized disasters create identical serious
21 hardship and loss for those businesses and families directly
22 affected, but Federal assistance is not made available to
23 help with recovery.
24 (4) As a result of extensive repair and replacement
25 costs resulting from disaster and emergency damages,
26 businesses and homeowners without adequate insurance coverage
27 may be unable to repair or replace damaged or destroyed
28 business and household possessions.
29 (5) Failure to expeditiously repair or replace household
30 possessions may result in a degradation of the quality of the
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1 community and the creation of unsafe conditions.
2 (b) Purpose.--It is the purpose of this subchapter to create
3 a State program to provide limited assistance to businesses and
4 homeowners directly affected by disasters and emergencies. State
5 assistance will be limited to loans to businesses and homeowners
6 to repair or replace business or household possessions.
7 § 7322. Definitions.
8 The following words and phrases when used in this subchapter
9 shall have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "Business possessions." Appliances, business machines,
12 furniture, inventory, equipment, devices, fixtures,
13 appurtenances or improvements required for the operation and
14 maintenance of the business.
15 "Fund." The State Disaster Assistance Loan Fund established
16 under this subchapter.
17 "Household possessions." Appliances, furniture, equipment,
18 devices, fixtures and appurtenances required for the convenience
19 and comfort of residents of a primary residence. The term does
20 not include items of apparel.
21 "Program." The State Disaster Assistance Loan Program
22 created under this subchapter.
23 § 7323. State Disaster Assistance Loan Program.
24 (a) Program created.--The State Disaster Assistance Loan
25 Program is hereby created to provide disaster assistance loans
26 to businesses and homeowners for the repair or replacement of
27 business or household possessions under the provisions of this
28 subchapter for disasters which occurred on or after July 1,
29 1997.
30 (b) Responsibilities of the agency.--The agency is hereby
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1 authorized to do the following:
2 (1) Immediately develop the program with county
3 government representatives to provide loans to businesses and
4 homeowners directly affected by disasters and emergencies
5 when the Governor has declared a State disaster emergency
6 area in conformity with this act.
7 (2) Authorize the issuance of State disaster assistance
8 loans to businesses and homeowners after review and approval
9 of the county's written request, submission of a detailed
10 damage survey report, compliance with necessary public
11 funding requirements and certification that no other public-
12 funded program exists to help affected homeowners.
13 (3) Develop and conduct training programs for State and
14 county officials and staff to implement the State Disaster
15 Assistance Loan Program. Training shall include program
16 administration, damage assessment documentation and reporting
17 and mitigation identification and implementation.
18 § 7324. Request for loan authorization.
19 (a) County requests.--County emergency management
20 coordinators, in coordination with disaster-affected municipal
21 elected officials and local emergency management coordinators,
22 shall submit to the agency a request to make State disaster
23 assistance loans available to disaster-affected businesses and
24 homeowners in the county. As required by section 7504(b)
25 (relating to coordination, assistance and mutual aid), all
26 requests shall be based on a finding that the disaster is of
27 such magnitude and severity that State disaster assistance is
28 necessary to alleviate the hardships caused to the affected
29 businesses and homeowners and that no other government-funded
30 programs exist or existing programs have been exhausted.
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1 (b) Program eligibility threshold.--In order for the agency
2 to authorize State disaster assistance loans, the county must
3 submit or must have submitted a detailed written damage survey
4 report which identifies by name and address each residential
5 homeowner who has suffered an uninsured loss of business or
6 household possessions. In order for the program to be
7 implemented, there must be damage to at least one business
8 property or one primary residence of either a single-family
9 residential, condominium, apartment or mobile home nature which
10 has suffered damage or loss of business or household possessions
11 directly caused by the identified disaster or emergency. Camps,
12 cottages or other types of secondary residences are not eligible
13 for disaster loan assistance. Applicants must show proof that
14 banks and other financial institutions will not grant a loan for
15 this purpose or that the loan repayment amount is beyond the
16 capability of, or the repayment of the loan would create a
17 substantial financial hardship for, the business or homeowner.
18 In its written request, the county shall also furnish
19 information requested by the agency concerning the nature of the
20 disaster or emergency that impacted the affected residence or
21 residences within the county.
22 § 7325. Application for and issuance of loan.
23 (a) Review of county requests for assistance.--The agency
24 shall review and approve all county requests for loan
25 assistance. The agency shall then implement the loan
26 application, review, approval and award process for the
27 individual businesses or residential homeowners identified in
28 the county's damage survey report.
29 (b) Loan application and award.--This program may be
30 authorized when the magnitude and severity of the disaster or
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1 emergency meets or exceeds program eligibility standards as set
2 forth in section 7324(b) (relating to request for loan
3 authorization). All requirements of the loan application and
4 award process will be developed, by regulation, by the agency
5 within 60 days of the effective date of this act. All
6 applications for loans must be received by the agency within 60
7 days after the agency has approved the county damage survey
8 report and request for assistance.
9 (c) Eligibility.--
10 (1) A homeowner or tenant residing within a political
11 subdivision designated by the Governor as a State disaster
12 emergency area who suffered disaster-related damage to
13 household possessions contained in a primary residence may
14 apply for a State disaster assistance loan.
15 (2) Any business within a political subdivision
16 designated by the Governor as a State disaster emergency area
17 which suffered disaster-related damage to the business
18 possessions contained in or at the business may apply for a
19 State disaster assistance loan.
20 (d) Interest.--The rate of interest on State disaster
21 assistance loans shall be 2%. Loans shall be secured by
22 mortgages on the real estate and shall be repaid over a term not
23 to exceed ten years in accordance with promissory notes which
24 establish monthly loan principal and interest payments.
25 (e) Limitations.--The following limitations shall apply to
26 the program:
27 (1) A loan shall not be made to a business or homeowner
28 eligible to receive assistance from the Federal Government
29 under any Federal disaster assistance and recovery program or
30 any other public or private insurance policy.
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1 (2) Loans shall be limited to businesses and homeowner-
2 occupied primary residences that are located within a
3 political subdivision that the agency has designated as a
4 disaster emergency area.
5 (3) Loans are limited to providing for essential
6 structural repairs or replacement of business or household
7 possessions.
8 (4) A business or homeowner may only apply for one
9 disaster assistance loan at a time. While a business's or
10 homeowner's disaster assistance loan is in effect, the same
11 business or homeowner shall be ineligible for another loan
12 under the program.
13 (5) The maximum amount of a loan is $10,000. However, in
14 extenuating circumstances, as determined by the agency, the
15 amount may exceed this limit.
16 (6) Recipients of loans are required to submit bills,
17 vouchers, receipts or canceled checks which demonstrate to
18 the agency that the amount awarded by the agency was used to
19 repair or replace business or household possessions pursuant
20 to the requirements of the program established under this
21 subchapter.
22 § 7326. Funding.
23 (a) State Disaster Assistance Loan Fund.--The State Disaster
24 Assistance Loan Fund is hereby established as a restricted
25 receipts account in the State Treasury. Ten million dollars of
26 the annual revenue received from the Master Settlement Agreement
27 between this Commonwealth and the tobacco industry shall be
28 deposited annually into the fund.
29 (b) Diversion of moneys in fund prohibited.--Moneys in the
30 fund shall not be diverted to fund other Commonwealth operations
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1 or programs or be transferred to other funds, and shall be used
2 exclusively for the purposes provided for in this subchapter.
3 Section 2. The addition of 35 Pa.C.S. Ch. 73 Subch. C shall
4 be retroactive to July 1, 1997.
5 Section 3. This act shall take effect immediately.
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