PRINTER'S NO. 1445
No. 1035 Session of 2004
INTRODUCED BY COSTA, LOGAN, KUKOVICH, PIPPY AND FERLO, MARCH 22, 2004
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, MARCH 22, 2004
AN ACT 1 Establishing the Landslide Insurance and Assistance Program 2 within the Pennsylvania Emergency Management Agency; 3 providing for related powers and duties of the Pennsylvania 4 Emergency Management Agency; establishing and providing for 5 the powers and duties of the Landslide Insurance and 6 Assistance Board; establishing the Landslide Insurance Fund 7 and the Landslide Assistance Fund; and making appropriations. 8 TABLE OF CONTENTS 9 Chapter 1. Preliminary Provisions 10 Section 101. Short title. 11 Section 102. Declaration of policy. 12 Section 103. Definitions. 13 Chapter 3. Program Generally 14 Section 301. Program goals. 15 Section 302. Board. 16 Section 303. Appeals. 17 Section 304. Program generally. 18 Section 305. Program authority. 19 Section 306. Land use controls and rate structure. 20 Chapter 5. Landslide Insurance Fund
1 Section 501. Landslide Insurance Fund. 2 Section 502. Schedule of premiums. 3 Section 503. Surplus. 4 Section 504. Insurance program. 5 Section 505. Application for increase in insurance. 6 Section 506. Automatic inflation protection increase. 7 Section 507. Audit by Auditor General. 8 Section 508. Claims against insurance fund. 9 Section 509. Defenses against claims and procedure. 10 Section 510. Subrogation to rights of claimants. 11 section 511. Insurance companies may cover risk. 12 Section 512. Escrow of premium payments. 13 Section 513. Properties in violation of State or local law. 14 Chapter 7. Mitigation Assistance 15 Section 701. Mitigation assistance. 16 Section 702. Landslide Assistance Fund. 17 Section 703. Construction permits. 18 Chapter 9. Program Administration and Funding 19 Section 901. Regulations. 20 Section 902. Agency report. 21 Section 903. Program funding. 22 Section 904. Reimbursement. 23 Section 905. Appropriations. 24 Section 906. Cost of administration. 25 Section 907. Commissions. 26 Chapter 21. Miscellaneous Provisions 27 Section 2101. Effective date. 28 The General Assembly of the Commonwealth of Pennsylvania 29 hereby enacts as follows: 30 CHAPTER 1 20040S1035B1445 - 2 -
1 PRELIMINARY PROVISIONS 2 Section 101. Short title. 3 This act shall be known and may be cited as the Landslide 4 Insurance and Assistance Program Act. 5 Section 102. Declaration of policy. 6 The General Assembly finds and declares as follows: 7 (1) Geologists have studied with increasing concern the 8 underground movement of the geological formations in this 9 Commonwealth and its impeding effects on the vertical and 10 horizontal natural and manmade surfaces. 11 (2) Landslides and slope movement have historically been 12 the norm throughout most parts of this Commonwealth. 13 (3) Landslides and slope movements occur without regard 14 for municipal boundaries, ordinances, planning codes, 15 politics and economies, making it difficult for local 16 officials to deal effectively with the development and 17 implementation of methods and standards to control the 18 devastation these natural forces can cause. 19 (4) Landslides and slope movement have caused an 20 enormous amount of damage to homes and roadways in this 21 Commonwealth, particularly the southwestern region of the 22 State. 23 (5) Landslides and slope movement will continue to 24 plague southwestern Pennsylvania. 25 (6) Landslides affect every state in the nation causing 26 an estimated $1 billion to $3 billion in damages a year. 27 (7) Landslide damage caused by flooding is not covered 28 by the National Flood Insurance Program. 29 (8) While landslide damage caused by mining practices is 30 covered by the Coal and Clay Mine Subsidence Insurance Fund 20040S1035B1445 - 3 -
1 and mudslide damage is covered by the National Flood 2 Insurance Program, other types of landslide damage is usually 3 not covered by insurance. 4 (9) Problems associated with landslide damage are 5 becoming more widespread. 6 (10) It would be to the advantage of residents of the 7 landslide-prone areas of this Commonwealth to form a common 8 bond to combat distress resulting from landslides. 9 Section 103. Definitions. 10 The following words and phrases when used in this act shall 11 have the meanings given to them in this section unless the 12 context clearly indicates otherwise: 13 "Agency." The Pennsylvania Emergency Management Agency. 14 "Assistance fund." The Landslide Assistance Fund. 15 "Board." The Landslide Insurance and Assistance Board. 16 "Community." Either of the following: 17 (1) A political subdivision that has zoning and building 18 code jurisdiction over an area having landslide hazards. 19 (2) A political subdivision that is designated to 20 develop and administer a mitigation plan. 21 "Extremely hazardous area." An area where all of the 22 following factors that contribute to landslides occur in the 23 same location: 24 (1) Steep slopes. 25 (2) Soils prone to landslides. 26 (3) Landslide features. 27 "Further review area." An area for which additional site- 28 specific review is needed based on a geological map or model 29 identifying the area as including a site prone to experience a 30 landslide. 20040S1035B1445 - 4 -
1 "GIS." Geographic Information Systems. 2 "Hazardous area." An area where one of the following factors 3 that contribute to landslides occurs: 4 (1) Steep slopes. 5 (2) Soils prone to landslides. 6 (3) Landslide features. 7 "Insurance fund." The Landslide Insurance Fund. 8 "Landslide." Any detached mass of soil, rock, earth or 9 debris that moves down a slope and is of sufficient size to 10 cause damage. The term includes sinkholes. 11 "Landslide features." Includes, but is not limited to, 12 rockfall areas, creep, red beds and historic landslides. 13 "Mitigation." An activity relative to landslides that 14 prevents an emergency from occurring, reduces the likelihood of 15 an emergency occurring or lessens the damaging effects of 16 unavoidable emergency situations. 17 "Mitigation plan." A plan designed by a community that when 18 implemented provides mitigation. 19 "Program." The Landslide Insurance and Assistance Program. 20 CHAPTER 3 21 PROGRAM GENERALLY 22 Section 301. Program goals. 23 The goals of the program are as follows: 24 (1) To provide actuarially sound insurance coverage. 25 (2) To make program policies universally available and 26 competitively priced. 27 (3) To make use of the most effective scientific and 28 technological advances available, including technology such 29 as GIS. 30 (4) To process claims promptly, fairly and consistently. 20040S1035B1445 - 5 -
1 (5) To provide tools and incentives for landslide loss 2 reduction, including the Landslide Assistance Fund. 3 (6) To collaborate with other organizations that operate 4 in the public interest to assist in achieving program goals. 5 Section 302. Board. 6 (a) Board established.--The Landslide Insurance and 7 Assistance Board is hereby established within the Pennsylvania 8 Emergency Management Agency. 9 (b) Members.--The board shall consist of the following 10 members: 11 (1) The Secretary of Banking or a designee. 12 (2) The Secretary of Community and Economic Development 13 or a designee. 14 (3) The Secretary of Conservation and Natural Resources 15 or a designee. 16 (4) The Secretary of Environmental Protection or a 17 designee. 18 (5) The Insurance Commissioner or a designee. 19 (6) The Secretary of Public Welfare or a designee. 20 (7) The Secretary of State or a designee. 21 (8) The Secretary of Transportation or a designee. 22 (9) The State Treasurer or a designee. 23 (10) The Director of the Pennsylvania Emergency 24 Management Agency or a designee. 25 (11) The Executive Director of the Pennsylvania Housing 26 Finance Agency or a designee. 27 (c) Chairperson.--The Director of the Pennsylvania Emergency 28 Management Agency or the designee shall serve as the chairperson 29 of the board. 30 (d) General counsel.--The Attorney General shall, ex 20040S1035B1445 - 6 -
1 officio, be the general counsel of the board and shall appoint 2 an attorney or attorneys as may be deemed necessary to aid the 3 board in its functioning. 4 (e) Employees.--All employees of the board shall be employed 5 by and located in the agency and shall be subject to the 6 administrative jurisdiction and authority of the agency. 7 Section 303. Appeals. 8 Any party aggrieved by an action of the board shall have the 9 right to appeal in accordance with 2 Pa.C.S. (relating to 10 administrative law and procedure). 11 Section 304. Program generally. 12 (a) Establishment.--The Landslide Insurance and Assistance 13 Program is hereby established within the agency. 14 (b) Program components.--The program shall consist of the 15 following components: 16 (1) A grant program. 17 (2) A revolving loan program. 18 (3) An insurance program. 19 (c) Purposes.--The grant program and the revolving loan 20 program are established for the primary purposes of mitigation 21 and repairing minor structural damage. The board shall employ 22 the grant program and the revolving loan program as tools to aid 23 in the success of the insurance fund. 24 Section 305. Program authority. 25 (a) Intergovernmental cooperation.--The program shall: 26 (1) Work closely with Federal, State and local agencies 27 and any other government agencies, including those of other 28 states, to accomplish program goals. 29 (2) Create and implement a Statewide landslide 30 mitigation plan that would encourage and support local 20040S1035B1445 - 7 -
1 mitigation efforts. 2 (3) Investigate sites to define hazards. 3 (4) Recommend legislation, regulations, ordinances and 4 zoning to mitigate slope instability contributed by 5 excavation and drainage. 6 (5) Work with local governments to evaluate risk 7 associated with certain homesite development. 8 (6) Share the most up-to-date geological surveys, in the 9 form of maps, GIS data or other useful form, and related 10 information, free of charge to government agencies and 11 appropriate representatives of communities, and at a 12 reasonable cost to all other persons. Receipts under this 13 paragraph shall be deposited in the assistance fund. 14 (7) Inform the Department of Transportation of the 15 highways at greatest risk from landslides. 16 (8) Notify local governments in areas with the greatest 17 risk from landslides. 18 (9) Have the authority to consult, receive information 19 and enter into any agreements or other arrangements in order 20 to identify and publish information with respect to all 21 landslide-prone areas, establish or update landslide-risk 22 zone data and make estimates with respect to the rates of 23 probable landslide-caused loss for the various landslide risk 24 zones for each of these areas. 25 (10) Publish any change to landslide insurance map 26 panels. 27 (11) Ensure that it is consistent in landslide control, 28 landslide forecasting and landslide damage prevention. 29 (b) Studies and investigations.-- 30 (1) The program is authorized to carry out necessary 20040S1035B1445 - 8 -
1 studies and investigations, utilizing to the maximum extent 2 practicable the existing facilities and services of other 3 Commonwealth departments or agencies, Federal and local 4 governmental agencies and any other organizations, with 5 respect to the adequacy of State and local measures in 6 landslide-prone areas as to: 7 (i) Land management and use. 8 (ii) Landslide control. 9 (iii) Zoning. 10 (iv) Landslide damage prevention. 11 (2) The program may enter into any contracts, agreements 12 or other appropriate arrangements to carry out its authority 13 under this section. The studies and investigations shall 14 include, but not be limited to, the following: 15 (i) Laws. 16 (ii) Regulations. 17 (iii) Ordinances. 18 (iv) Zoning. 19 (v) Building codes. 20 (vi) Building permits. 21 (vii) Subdivision or other building restrictions. 22 (c) State and local measures.--On the basis of studies and 23 investigations under subsection (b) and other information as the 24 agency deems necessary, the program shall develop comprehensive 25 criteria designed to encourage, where necessary, the adoption of 26 adequate State and local measures which, to the maximum extent 27 feasible, will: 28 (1) Constrict the development of land which is exposed 29 to landslide damage where appropriate. 30 (2) Guide the development of proposed construction away 20040S1035B1445 - 9 -
1 from locations which are threatened by landslide hazards. 2 (3) Assist in reducing damage caused by landslides. 3 (4) Otherwise improve the long-range land management and 4 use of landslide-prone areas. 5 (d) Technical assistance.--The program shall work closely 6 with and provide any necessary technical assistance to State and 7 local governmental agencies to encourage the application of the 8 criteria and the adoption and enforcement of the measures under 9 this section. 10 Section 306. Land use controls and rate structure. 11 Local governments may initiate land-use controls for the 12 benefit of their residents. The following shall apply: 13 (1) No new landslide insurance coverage shall be 14 provided to new construction without pre-approval by an 15 appropriate local public body, which shall have the option of 16 adopting adequate land-use and control measures with 17 effective enforcement provisions. 18 (2) A community rating system shall be employed by the 19 board as an incentive for community landslide management. 20 (3) Rate structures shall provide incentives for 21 measures that reduce the risk of landslide damage and 22 evaluate the measures. The program shall provide incentives 23 in the form of credits on premium rates for landslide 24 insurance coverage in communities that the agency determines 25 have adopted and enforced measures that reduce the risk of 26 landslide damage. 27 (4) The credits on premium rates for flood insurance 28 coverage shall be based on the estimated reduction in flood 29 and erosion damage risks resulting from the measures adopted 30 by the community under the program. If a community has 20040S1035B1445 - 10 -
1 received mitigation or other assistance under the program, 2 the credits shall be phased in in a manner determined by the 3 agency to recover the amount of assistance provided for the 4 community. 5 CHAPTER 5 6 LANDSLIDE INSURANCE FUND 7 Section 501. Landslide Insurance Fund. 8 (a) Establishment.--The Landslide Insurance Fund is 9 established as a separate fund in the State Treasury. The 10 insurance fund shall be administered by the board for the 11 purpose of insuring subscribers against the damages to their 12 structures resulting from landslides if the damage is not 13 covered by other insurance programs or coverage. 14 (b) Administration.--The insurance fund shall be 15 administered by the board without liability on the part of the 16 Commonwealth beyond the amount of the fund except as provided 17 under this act and shall be applied to the payment of damage as 18 described under subsection (a). 19 (c) State Treasurer as custodian of insurance fund.--The 20 State Treasurer shall be the custodian of the insurance fund, 21 and all disbursements from the insurance fund shall be paid at 22 the request of the board. For making payments without audit, the 23 State Treasurer shall not be under any liability whatsoever. The 24 State Treasurer may deposit any portion of the insurance fund 25 not needed for immediate use as other State funds are lawfully 26 deposited. The interest shall be placed to the credit of the 27 insurance fund. 28 Section 502. Schedule of premiums. 29 At any time during each year the board shall prepare and 30 publish a schedule of premiums or rates of insurance for 20040S1035B1445 - 11 -
1 subscribers. This schedule shall be printed and distributed free 2 of charge to any person upon application. Any subscriber may at 3 the subscriber's option pay to the insurance fund the amount of 4 premium appropriate, and upon payment of the premium shall be 5 insured for the year for which the premium is paid. The 6 insurance shall cover all payments becoming due for which the 7 premium is paid. The premium shall be adequate to enable payment 8 of all sums which may become due and payable under this act, and 9 adequate reserve sufficient to carry all policies and claims to 10 maturity. In establishing the premiums payable by any 11 subscriber, the board may take into account the condition of the 12 premises of the subscriber in respect to the possibility of 13 landslide damage as shown by the report of any inspector 14 appointed by the board or by the agency. The board may change 15 the amount of premiums payable by any of the subscribers as 16 circumstances may require and the condition of the premises of 17 the subscribers in respect to the possibility of a landslide may 18 justify. The board may increase the premiums of any subscriber 19 whose loss experience warrants a change. The insurance of any 20 subscriber shall not be effective until the premium so fixed and 21 determined has been paid in full. 22 Section 503. Surplus. 23 The board shall set aside 5% of all premiums collected for 24 the creation of a surplus until the surplus is sufficiently 25 large to cover catastrophic hazard of all the subscribers to the 26 insurance fund and to guarantee the solvency of the fund. At 27 such point, the board shall reevaluate the set-aside and 28 investment of the surplus and make a recommendation to the 29 General Assembly. 30 Section 504. Insurance program. 20040S1035B1445 - 12 -
1 (a) General rule.--Any owner of a structure located within a 2 landslide-prone region who desires to become a subscriber to the 3 insurance fund for the purpose of insuring a structure in the 4 region against damage from landslides shall make a complete 5 application as prescribed by the board to the board, its agents 6 or insurance producers. Upon receipt of an application, the 7 board shall make an investigation as may be necessary if the 8 application complies with the rules and regulations of the 9 board. Within 60 days after the request for an application is 10 received the board shall issue a certificate showing the 11 acceptance of the application and the amount of premium payable 12 by the applicant for one, two or three years as the board may 13 establish. No insurance shall become effective until the premium 14 has been paid. All premiums shall be made payable to the State 15 Treasurer whereupon a receipt shall be issued therefore. The 16 receipt for premium together with a certificate of the board 17 shall be evidence that the applicant has become a subscriber to 18 the insurance fund and is insured from the date of application. 19 The following apply: 20 (1) The insurance may be subject to later reductions, 21 and premiums adjusted accordingly, if the board determines 22 that the amount of insurance coverage requested is in excess 23 of the current replacement cost of the structure or the 24 maximum amount of coverage established by the fund, whichever 25 is less. 26 (2) The insurance shall be void if, upon investigation 27 of the structure, the board determines that either landslide 28 damage occurred before the application was submitted or the 29 applicant is responsible for not allowing the board to 30 inspect the structure within 60 days of receipt of the 20040S1035B1445 - 13 -
1 application. 2 (3) The use of the most current science available to 3 identify landslide-prone areas shall be employed. If the 4 property is located in a further review area within a 5 hazardous area, the property owner may be required to 6 complete a site assessment with a licensed professional, 7 which may include an onsite evaluation. The property owner 8 shall fund this assessment. This assessment may also be 9 required before a local government accepts an application for 10 a development permit. 11 (4) Notwithstanding any other provision of law, any 12 structure repaired or restored to its original condition with 13 moneys from the insurance fund shall not be eligible for 14 duplicative disaster relief assistance from programs 15 administered by the agency. 16 (5) In order to assist insurance producers and potential 17 policyholders in identifying structures that could be at risk 18 from landslides, the board shall publish and update in the 19 Pennsylvania Bulletin a list of areas in this Commonwealth 20 that are believed to be at risk for landslide damage. 21 (b) Penalty.--A person who knowingly furnishes or makes any 22 false certificate, application or statement required under this 23 section commits a misdemeanor and shall, upon conviction, be 24 sentenced to pay a fine of not more than $1,500 or to 25 imprisonment for not more than one year, or both. 26 Section 505. Application for increase in insurance. 27 Additions in the amount of insurance are subject to the same 28 standards as initial applications. 29 Section 506. Automatic inflation protection increase. 30 The board shall make available to all subscribers an annual 20040S1035B1445 - 14 -
1 inflation protection option on the anniversary date of each 2 policy issued only if the total insurance remains at or under 3 the value of the structure itself. An inflation protection 4 increase shall not be subject to a reinspection of the 5 structure. 6 Section 507. Audit by Auditor General. 7 The Auditor General shall at least once each year make a 8 complete examination and audit of the insurance fund, including 9 all receipts and expenditures, cash on hand, investments and 10 property held representing cash or cash disbursements. For these 11 purposes the Auditor General is hereby authorized to employ 12 agents and staff as the Auditor General may deem necessary. The 13 expense incurred in making the examination and audit shall be 14 certified to the insurance fund by the Auditor General and shall 15 be paid from the program. 16 Section 508. Claims against insurance fund. 17 Any subscriber to the insurance fund must file with the board 18 a true statement of the subscriber's claim for any landslide 19 damage and shall give to the board an opportunity to investigate 20 and to determine whether the board will pay the claim. 21 Section 509. Defenses against claims and procedure. 22 In every case where a claim is made against the insurance 23 fund, the fund shall be entitled to every defense against the 24 claim under the policy and shall be subrogated to every right of 25 the subscriber arising out of such accidents against any third 26 persons. The insurance fund may, in the name of the fund, sue or 27 be sued to enforce any right given against or to any subscriber 28 or other persons under this act. 29 Section 510. Subrogation to rights of claimants. 30 Nothing in this act shall relieve any person, partnership or 20040S1035B1445 - 15 -
1 corporation otherwise liable therefore from any liability for 2 damages sustained by a subscriber. The insurance fund shall be 3 subrogated to the rights of any property owner's insurance under 4 this act. 5 Section 511. Insurance companies may cover risk. 6 Any insurance company may issue policies covering the type of 7 risk provided for under this chapter subject to the prior 8 approval of the Insurance Commissioner as to policy form and 9 rates. 10 Section 512. Escrow of premium payments. 11 Mortgage lenders shall escrow the landslide insurance premium 12 payments if they offer the purchase of the insurance. 13 Section 513. Properties in violation of State or local law. 14 No new landslide insurance coverage shall be provided for any 15 property which the agency finds has been declared by a State or 16 local zoning authority, or other authorized public body, to be 17 in violation of State or local laws, regulations or ordinances 18 which are intended to discourage or otherwise restrict land 19 development or occupancy in landslide-prone areas. 20 CHAPTER 7 21 MITIGATION ASSISTANCE 22 Section 701. Mitigation assistance. 23 (a) Financial assistance generally.--The agency shall carry 24 out a program to provide financial assistance to communities and 25 individuals for planning and carrying out activities designed to 26 reduce the risk of landslide damage to structures covered under 27 contracts for landslide insurance. Financial assistance may be 28 made available to communities and individuals in the form of 29 grants or revolving loans for the carrying out of mitigation 30 activities. Loans shall carry an interest rate of no more than 20040S1035B1445 - 16 -
1 3%. 2 (b) Grants.--The agency may make grants under this section 3 to communities to assist in developing mitigation plans. 4 (c) Eligibility.--To be eligible to receive financial 5 assistance, a community shall develop a mitigation plan that 6 describes the mitigation activities to be carried out with 7 assistance provided under this section. The mitigation plan must 8 be consistent with the criteria established by the agency and 9 provide protection against landslide losses to structures for 10 which contracts for flood insurance are available under this 11 act. The mitigation plan shall be consistent with a 12 comprehensive strategy for mitigation activities for the area 13 affected by the mitigation plan that has been adopted by the 14 community following a public hearing. 15 (d) Procedure.--The agency shall notify a community 16 submitting a mitigation plan of the approval or disapproval of 17 the plan not later than 120 days after submission of the plan. 18 If the agency does not approve a mitigation plan submitted under 19 this section, the agency shall notify, in writing, the community 20 submitting the plan of the reasons for the disapproval. 21 (e) Limitation.--Amounts provided under this section may be 22 used only for mitigation activities specified in a mitigation 23 plan approved by the agency. The agency may approve only 24 mitigation plans that specify mitigation activities that are 25 technically feasible and cost-effective and that are cost- 26 beneficial under Chapter 5. 27 (f) Approval.--The agency shall approve funding for 28 mitigation plans based on criteria that include: 29 (1) Criteria under subsection (e). 30 (2) Proposed activities to address repetitive loss 20040S1035B1445 - 17 -
1 structures and structures that have incurred substantial 2 damage. 3 (g) Matching funds.--The agency may require a community to 4 match grant funds. 5 (h) Oversight.--The agency shall conduct oversight of 6 recipients of mitigation assistance to ensure that the 7 assistance is used in compliance with the approved mitigation 8 plans of the recipients and that any matching fund requirements 9 are fulfilled. 10 (i) Failure to comply.--If the agency determines that a 11 community that has received mitigation assistance has not 12 carried out the mitigation activities as set forth in the 13 mitigation plan or has not secured required matching funds, the 14 agency shall recapture any unexpended amounts and redeposit the 15 amounts in the assistance fund. 16 Section 702. Landslide Assistance Fund. 17 The Landslide Assistance Fund is hereby established as a 18 restricted account in the State Treasury. The assistance fund 19 shall be administered by the agency and shall be comprised of 20 moneys appropriated for purposes of this chapter. All moneys in 21 the fund and the interest accruing thereon are appropriated to 22 the agency on a continuing basis to carry out the provisions of 23 this chapter. 24 Section 703. Construction permits. 25 No Commonwealth agency shall approve any financial assistance 26 for the acquisition of land for construction purposes in any 27 area that has been identified by the agency as an extremely 28 hazardous zone without approval to proceed by the agency based 29 on the results of a risk assessment. 30 CHAPTER 9 20040S1035B1445 - 18 -
1 PROGRAM ADMINISTRATION AND FUNDING 2 Section 901. Regulations. 3 The agency, in conjunction with the board, may promulgate 4 rules and regulations and establish other conditions of the 5 policies as it deems just and expedient in keeping with the 6 fulfillment of the purposes of this act, including reasonable 7 classification of risks eligible for coverage under this act, 8 limits of coverage and rules covering the adjustment and 9 settlement of claims. 10 Section 902. Agency report. 11 The agency shall make an annual report on the program and on 12 experience with landslide insurance sales through producers to 13 the General Assembly. Each report shall include mitigation 14 efforts, an analysis of the cost-effectiveness of the program, 15 accomplishments or shortcomings of the program and 16 recommendations for legislation regarding the program. 17 Section 903. Program funding. 18 The program shall be funded by the General Assembly through 19 an appropriation of moneys to the Pennsylvania Emergency 20 Management Agency until which time the insurance fund and 21 assistance fund are deemed self-sufficient by the General 22 Assembly. 23 Section 904. Reimbursement. 24 The program shall reimburse any Commonwealth departments for 25 agreed-upon costs of services that aid in administering the 26 program. 27 Section 905. Appropriations. 28 (a) Insurance fund.--The sum of $2,500,000, or as much 29 thereof as may be necessary, is hereby appropriated to the 30 Landslide Insurance Fund for the fiscal year July 1, 2004, 20040S1035B1445 - 19 -
1 through June 30, 2005. 2 (b) Assistance fund.--The sum of $2,500,000, or as much 3 thereof as may be necessary, is hereby appropriated to the 4 Landslide Assistance Fund for the fiscal year July 1, 2004, 5 through June 30, 2005. 6 (c) Agency.--Moneys in the Landslide Insurance Fund and the 7 Landslide Assistance Fund are hereby appropriated to the 8 Pennsylvania Emergency Management Agency in such amounts as may 9 be determined annually by the Governor to be used for the 10 specified purposes of this act. 11 (d) Additional appropriations.--If, upon completion of the 12 annual examination and audit, it is determined that the total 13 asset value of either the insurance fund or assistance fund is 14 less than $2,500,000, such additional sum as may be necessary to 15 increase the total asset value of the fund or funds to 16 $2,500,000 shall be appropriated. 17 Section 906. Cost of administration. 18 The board shall keep an accurate account of the money paid in 19 premiums by the subscribers and the disbursements on account of 20 damages to premises. If, at the expiration of any year there 21 shall be a balance remaining after deducting the disbursements, 22 the unearned premiums on undetermined risks and the percentage 23 of premiums paid or payable to create or maintain the surplus 24 provided under this act, and after setting aside an adequate 25 reserve, the board may determine to allocate to the cost of 26 administering the insurance fund. 27 Section 907. Commissions. 28 Moneys from the insurance fund shall be available to pay a 29 one-time commission as determined by the board to insurance 30 producers who forward applications for landslide insurance to 20040S1035B1445 - 20 -
1 the board if a policy is issued pursuant to an application 2 submitted by an insurance producer. The amount of the commission 3 shall be determined by the board on an annual basis. 4 CHAPTER 21 5 MISCELLANEOUS PROVISIONS 6 Section 2101. Effective date. 7 This act shall take effect July 1, 2004, or immediately, 8 whichever is later. A28L35SFL/20040S1035B1445 - 21 -