PRIOR PRINTER'S NOS. 403, 1811 PRINTER'S NO. 2943
No. 370 Session of 1987
INTRODUCED BY BOWLEY, BORTNER, YANDRISEVITS, PRESSMANN, DeWEESE,
TRELLO, COY, OLASZ, HOWLETT, ARTY, MICHLOVIC, COLAFELLA,
DALEY, REBER, McHALE, TIGUE, LLOYD, CAPPABIANCA, FOX,
STABACK, DOMBROWSKI, BELFANTI, KOSINSKI, RAYMOND, HALUSKA,
PUNT, CARLSON, BLAUM, KUKOVICH, BELARDI, LEVDANSKY,
CALTAGIRONE, MARKOSEK, VEON, PETRONE, PETRARCA, HARPER,
SERAFINI, MAIALE, CIVERA, BUNT, CAWLEY, JOSEPHS, WOZNIAK,
FISCHER, FREEMAN, MAINE, KASUNIC AND RUDY, FEBRUARY 11, 1987
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 14, 1988
AN ACT
1 Providing for the establishment and operation of a Statewide
2 disaster assistance program and fund; and imposing additional
3 powers and duties on the Pennsylvania Emergency Management
4 Agency.
5 TABLE OF CONTENTS
6 Section 1. Short title.
7 Section 2. Findings and legislative intent.
8 Section 3. Definitions.
9 Section 4. Federally declared disasters. <--
10 Section 5. Commonwealth-declared disasters.
11 Section 6. Criteria. SECTION 4. INDIVIDUAL AID PROGRAM. <--
12 Section 7 5. Rules and regulations. <--
13 Section 8 6. Penalty. <--
14 Section 9. Funding. SECTION 7. CREATION OF FUND. <--
15 Section 10 8. Severability. <--
1 Section 11 9. Repeals. <--
2 Section 12 10. Applicability. <--
3 Section 13 11. Effective date. <--
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Pennsylvania
8 Disaster Assistance Act.
9 Section 2. Findings and legislative intent.
10 (a) Findings.--
11 (1) Often individuals, businesses, farms and political <--
12 subdivisions which have suffered losses due to natural or
13 man-made disasters have received INADEQUATE OR no Federal or <--
14 State financial assistance to aid in the restoration of
15 homes, businesses, farms and public facilities. This occurs, <--
16 in part, because the extent of damage has not been sufficient
17 to qualify for Federal declared disaster assistance.
18 (2) There are no State financial assistance programs
19 available to assist individuals, businesses, farms and
20 political subdivisions which have suffered losses due to
21 natural or man-made disasters which are non-Federally
22 declared disasters.
23 (3) (2) There is a need to establish a State-funded
24 disaster assistance program to aid Pennsylvania's citizens, <--
25 businesses, farms and political subdivisions that suffer
26 losses during Federal and Commonwealth-declared DECLARED <--
27 disasters.
28 (4) (3) It is in the public interest pursuant to section <--
29 17 of Article VIII of the Constitution of Pennsylvania to
30 provide additional aid to individuals, businesses, farms and <--
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1 political subdivisions to supplement the compensation which
2 they receive from private insurance and the Federal
3 Government.
4 (b) Legislative intent.--It is the intent of the General
5 Assembly to provide for comprehensive disaster assistance
6 programs which will provide A MECHANISM FOR financial assistance <--
7 to individuals, families, businesses, farms and political <--
8 subdivisions in the event a natural or man-made disaster has
9 occurred.
10 Section 3. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Adjusted loss." The total eligible loss excluding:
15 (1) Any amount received by or due the applicant from
16 private insurance and Federal or State-subsidized funds,
17 including, but not limited to, Small Business Administration
18 loans, Federal Emergency Management Agency benefits and the
19 Individual and Family Grant Program grants.
20 (2) An amount for which the applicant would have been
21 eligible from Federal or State-subsidized funds had the
22 applicant applied for or accepted the assistance.
23 "Agency." The Pennsylvania Emergency Management Agency.
24 "Business." Private and profit-making enterprises and <--
25 private nonprofit educational, vocational, utilitarian,
26 emergency medical and custodian care facilities.
27 "Business purposes." Real or personal property, or both,
28 used to generate income in one's trade, occupation, employment
29 or profession.
30 "Commonwealth-declared disaster." Those disasters declared
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1 as such by the Governor, on the recommendation of the
2 Pennsylvania Emergency Management Agency, based on the agency's
3 established criteria for determination of applicability and
4 suitability of disaster assistance.
5 "Disaster." A man-made or natural disaster.
6 "Family." An individual or a group of two or more
7 individuals related by birth, marriage or adoption and residing
8 together in their primary residence at the time of the disaster.
9 "Farm." Real or personal property, or both, used in the <--
10 operation of any type of farm, including dairy, crop and
11 livestock farms and farms for the raising of agricultural and
12 horticultural commodities and orchards.
13 "Federal declared disaster." Those disasters designated as
14 such by the President, by the Small Business Administration
15 (physical disaster declaration), or by the United States
16 Secretary of Agriculture.
17 "Fund." The Pennsylvania Disaster Assistance Fund.
18 "Gross income." The total annual cash receipts before taxes <--
19 from all sources and receipts from an individual's business or
20 farm after expense deductions, using 50 Fed. Reg. 9518 (1985)
21 for income exclusions.
22 "Homeowner." The legal owner at the time of the disaster of
23 residential property located in a disaster area.
24 "Man-made disaster." An industrial, nuclear or
25 transportation accident, explosion, conflagration, power
26 failure, natural resource shortage or other condition, except
27 enemy action, resulting from man-made causes, such as oil spills
28 and other injurious environmental contamination, which threatens
29 or causes substantial damage to property, human suffering,
30 hardship or loss of life.
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1 "Natural disaster." A hurricane, tornado, storm, flood, high
2 water, wind-driven water, tidal wave, earthquake, landslide,
3 mudslide, snowstorm, drought, fire, explosion or other
4 catastrophe which results in substantial damage to property,
5 hardship, suffering or possible loss of life.
6 "Owner-occupied primary residence." A residence which was
7 the principal residence of its legal owner at the time of the
8 disaster.
9 "Political subdivisions." All counties, cities, boroughs,
10 incorporated towns, townships, school districts and municipal
11 authorities created under the act of May 2, 1945 (P.L.382,
12 No.164), known as the Municipality Authorities Act of 1945.
13 "Public facility." A publicly owned flood control,
14 navigation, irrigation, reclamation, public power, sewage
15 treatment and collection, water supply and distribution,
16 watershed development, or airport facility; a bridge, street,
17 road or highway which is not a subject of Federal aid; any other
18 public building, structure, or system, and any park.
19 "Recreation purposes." Real or personal property, or both,
20 used for the purpose of entertainment or amusement.
21 "Tenant." One who, at the time of the disaster, was renting
22 as his primary residence a premises located in a disaster area.
23 Section 4. Federally declared disasters INDIVIDUAL AID PROGRAM. <--
24 (a) General rule.--Disasters may occur within the
25 Commonwealth of Pennsylvania which cause sufficient damage to
26 qualify for a Federal Declared Disaster Declaration under the
27 Federal Disaster Relief Act of 1974 (Public Law 93-288, 42
28 U.S.C. § 5121). This declaration may initiate aid for
29 individuals, businesses and local governments through the
30 Federal Individual and Family Grant Program, the Public
19870H0370B2943 - 5 -
1 Assistance Program, and the Small Business Administration's low-
2 interest loan program. When a Federal declaration of disaster
3 has been issued, the Commonwealth shall provide those State
4 matching funds that are required by either Federal law or
5 regulation from sources other than the Pennsylvania Disaster
6 Assistance Fund. All moneys received from the Federal Government
7 for the purpose of disaster relief assistance or for damages
8 caused by the disaster are hereby appropriated to the
9 departments, boards, commissions or agencies designated by the
10 Governor.
11 (b) Establishment of aid program.--In order to provide funds
12 for the Governor, in accordance with 35 Pa.C.S. Ch. 73 Subch. A
13 (relating to the Governor and disaster emergencies) to alleviate
14 the hardships and repair the damage caused by the disaster, the
15 following supplemental grant program is established to assist
16 victims of these disasters.
17 (c) Individual.--The agency shall administer a grant program
18 which provides emergency funds to residents of counties stricken
19 by disasters which were the subject of a Federal declaration of
20 disaster.
21 (d) Individual eligibility.--An applicant's request for
22 funding shall be subject to the following evaluation:
23 (1) Upon receipt and approval of a sworn application by
24 a homeowner for nonbusiness or nonfarm real property damaged
25 or destroyed, or a homeowner or tenant of premises he rents
26 as his primary residence for personal property damaged or
27 destroyed in a Federal declared disaster, the agency may make
28 an individual grant to cover a portion of the adjusted loss.
29 (2) For the purpose of this subsection, total eligible
30 loss shall be the loss from damage to an owner-occupied
19870H0370B2943 - 6 -
1 primary residence and the loss from damage to personal
2 property, including clothing, household furnishings and
3 appliances, incurred by a homeowner in his owner-occupied
4 primary residence or incurred by a tenant in premises he
5 rents as a primary residence. Eligible loss shall not include
6 an item used principally for recreational purposes.
7 (3) An applicant whose previous year's income does not
8 exceed 300% of the previous year's poverty income guidelines
9 using gross income before taxes shall be eligible to
10 participate in this grant program. The applicant, in order to
11 be eligible for this program by reason of a loss in a
12 federally declared disaster, must have registered at a
13 disaster assistance center, unless extenuating circumstances
14 prevented registration. Extenuating circumstances shall be
15 determined by the agency on an individual case-by-case basis.
16 The determination shall be subject to appeal to the
17 Commonwealth Court.
18 (4) The amount of the grant shall be determined in
19 accordance with the following schedule:
20 (i) 50% of the first $5,000 of adjusted loss.
21 (ii) 25% of the second $5,000 of adjusted loss.
22 (iii) 10% of the remaining adjusted loss.
23 (iv) No grant shall exceed $12,500.
24 (e) Limitation on eligibility.--If the real property is
25 condemned under eminent domain proceedings and the measure of
26 damage is calculated under section 602 of the act of June 22,
27 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain Code,
28 the property owner shall not be eligible for a grant under
29 subsection (d) for property for which compensation is granted in
30 the eminent domain proceedings.
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1 (f) Administration.--The agency shall administer the grant
2 program in the following manner:
3 (1) Grants under this section shall be administered by
4 the agency in prompt fashion.
5 (2) Applications shall be made available to disaster
6 victims within 60 days of the Federal declaration of
7 disaster.
8 (3) If sufficient funds are not allocated under this act <--
9 APPROPRIATED, distribution of the grants shall be on a pro <--
10 rata basis.
11 (4) Funds for this grant program shall come from the <--
12 fund APPROPRIATIONS TO THE PENNSYLVANIA DISASTER ASSISTANCE <--
13 PROGRAM.
14 Section 5. Commonwealth-declared disasters. <--
15 (a) General rule.--When the Governor declares that a
16 disaster has occurred within this Commonwealth the following
17 programs shall be used to assist the individual residents,
18 families, political subdivisions, businesses and farms within
19 the counties stricken by the disaster. These programs shall be
20 used to provide funding which is supplemental to Federal
21 funding.
22 (b) Individual--The department shall administer a loan
23 program which provides emergency funds to residents of counties
24 stricken by disasters which were the subject of a Commonwealth
25 declaration of disaster.
26 (1) Individual eligibility.--An applicant's request for
27 funding shall be subject to the following evaluation:
28 (i) Upon receipt and approval of a sworn application
29 by a homeowner for nonbusiness or nonfarm real property
30 damaged or destroyed or by a homeowner or tenant of
19870H0370B2943 - 8 -
1 premises he rents as his primary residence for personal
2 property damaged or destroyed, in a Commonwealth-declared
3 disaster, the agency may make an individual loan to cover
4 a portion of the adjusted loss.
5 (ii) For the purpose of this subsection, total
6 eligible loss shall be the loss from damage to an owner-
7 occupied primary residence and the loss from damage to
8 personal property, including clothing, household
9 furnishings and appliances, incurred by a homeowner in
10 his owner-occupied primary residence or incurred by a
11 tenant in premises he rents as a primary residence. Total
12 eligible loss shall not include an item used principally
13 for recreational purposes.
14 (iii) The amount of the loan shall be determined in
15 accordance with the following rules:
16 (A) Owner-occupied primary residence: Loans of
17 up to $100,000 to cover adjusted losses to owner-
18 occupied primary residences shall be made for repairs
19 to or replacement of a primary residence. The loans
20 shall be repayable over a 30-year period at an
21 interest rate of 5%.
22 (B) Personal property: Loans of up to $20,000 to
23 cover adjusted losses to personal property shall be
24 made for repairs to or replacement of personal
25 property. The loans shall be repayable over a 20-year
26 period at an interest rate of 5%.
27 (2) Limitation on individual eligibility.--If the real
28 property is condemned under eminent domain proceedings and
29 the measure of damage is calculated under section 602 of the
30 act of June 22, 1964 (Sp.Sess., P.L.84, No.6), known as the
19870H0370B2943 - 9 -
1 Eminent Domain Code, the property owner is not eligible for a
2 loan under paragraph (1) for property for which compensation
3 is granted in the eminent domain proceedings.
4 (3) Administration of loans to individuals.--The agency
5 shall administer the program in the following manner:
6 (i) Loans under this section shall be administered
7 by the department in prompt fashion.
8 (ii) Applications shall be made available to
9 disaster victims within 60 days of the Commonwealth-
10 declared disaster declaration.
11 (iii) If sufficient funds are not allocated under
12 this act, distribution of the loans shall be on a pro
13 rata basis.
14 (iv) Funds for this loan program shall come from the
15 fund.
16 (v) Repayments of loans under this program shall be
17 returned to the fund.
18 (c) Political subdivisions.--The agency shall coordinate and
19 administer a grant and loan program which provides emergency
20 funds to political subdivisions stricken by disasters which were
21 the subject of a Commonwealth declaration of disaster.
22 (1) Political subdivision eligibility.--A political
23 subdivision request for funding shall be subject to the
24 following evaluation:
25 (i) Upon receipt and approval of a sworn application
26 by an authorized official of a political subdivision for
27 public facilities damaged or destroyed in a Commonwealth-
28 declared disaster, the agency may make a grant, loan, or
29 both, to cover a portion of the adjusted loss.
30 (ii) For the purpose of this subsection, total
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1 eligible loss shall be any loss from damages to public
2 facilities.
3 (iii) Only political subdivisions which are
4 designated as distressed under the act of July 2, 1984
5 (P.L.520, No.105), known as the Business Infrastructure
6 Development Act, shall be eligible for assistance in the
7 form of grants. Other local governments shall receive
8 assistance in the form of no-interest loans, including
9 provisions for deferrals of repayments with a maximum
10 term of 10 years.
11 (iv) The amount of a grant shall be determined by
12 multiplying the adjusted losses for each municipality by
13 the ratio of the total funds available under the program
14 to the total adjusted losses of all governments applying
15 for assistance. However, no local government may receive
16 a grant for more than 50% of its adjusted losses.
17 (2) Limitation on eligibility of political
18 subdivisions.--If the real property was condemned under
19 eminent domain proceedings and where the measure of damage is
20 calculated under section 602 of the Eminent Domain Code, the
21 property owner is not eligible for a grant or loan under
22 paragraph (1) for property for which compensation is granted
23 in the eminent domain proceedings.
24 (3) Administration of political subdivision grant and
25 loan program.--The agency shall administer the program in the
26 following manner:
27 (i) Grants and loans to political subdivisions shall
28 be administered by the agency in prompt fashion.
29 (ii) Applications shall be made available to
30 political subdivisions within 60 days of the
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1 Commonwealth-declared disaster.
2 (iii) If sufficient funds are not allocated under
3 this section, distribution of the grants and loans shall
4 be on a pro rata basis.
5 (iv) Funds for this program shall come from the
6 fund.
7 (v) Repayment of loans under this program shall be
8 returned to the fund.
9 (d) Businesses and farm.--The agency shall administer a loan
10 program which provides emergency funds to qualifying businesses
11 and farms located in areas covered by a Commonwealth-declared
12 disaster.
13 (1) Business and farm eligibility.--An applicant's
14 request for funding shall be subject to the following
15 evaluation:
16 (i) Upon receipt and approval of a sworn application
17 by an owner of business or farm real property damaged or
18 destroyed in a Commonwealth-declared disaster, the agency
19 may make a loan to cover a portion of the adjusted loss.
20 (ii) For the purpose of this subsection, total
21 eligible loss shall be the loss from damages to business
22 or farm. Total eligible loss shall not include an item
23 used principally for recreational purposes.
24 (iii) An applicant may be eligible to receive a low-
25 interest loan of up to $500,000 for repair,
26 reconstruction or replacement of the applicant's business
27 or farm, subject to the following terms:
28 (A) Loans in excess of $100,000 shall be
29 repayable over a 30-year period at an interest rate
30 of 5%.
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1 (B) Loans for less than $100,000 shall be
2 repayable over a 20-year period at an interest rate
3 of 5%.
4 (2) Limitation on eligibility of business or farm.--If
5 the real property was condemned under eminent domain
6 proceedings and where the measure of damage is calculated
7 under section 602 of the Eminent Domain Code, the property
8 owner is not eligible for a loan under paragraph (1) for
9 property for which compensation is granted in the eminent
10 domain proceedings.
11 (3) Administration of business and farm program.--The
12 agency shall administer the program in the following manner:
13 (i) Loans under this section shall be administered
14 by the agency in prompt fashion.
15 (ii) Application shall be made available to disaster
16 victims within 60 days of the Commonwealth declaration of
17 disaster.
18 (iii) If sufficient funds are not allocated under
19 this act, distribution of the funds shall be on a pro
20 rata basis.
21 (iv) Funds for this loan program shall come from the
22 fund.
23 (v) Repayments of loans under this program shall be
24 returned to the fund.
25 Section 6. Criteria.
26 The agency shall develop and promulgate, within 90 days of
27 the effective date of this act, the criteria on which it makes
28 its recommendation to the Governor regarding a Commonwealth
29 declaration of disaster.
30 Section 7 5. Rules and regulations. <--
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1 The agency shall promulgate rules and regulations necessary
2 to carry out the provisions of this act and cause them to be
3 published in the Pennsylvania Bulletin. Regulations shall be
4 subject to review pursuant to the act of June 25, 1982 (P.L.633,
5 No.181), known as the Regulatory Review Act.
6 Section 8 6. Penalty. <--
7 A person or political subdivision making a false claim under <--
8 the provisions of this act shall be subject to a penalty in the
9 amount of three times the amount of the loan with interest of 6%
10 from the effective date of the loan. This penalty may be
11 enforced by the Attorney General in an assumpsit action and
12 collected in the manner that other debts due and owing the
13 Commonwealth are collected.
14 Section 9. Funding. SECTION 7. CREATION OF FUND. <--
15 (a) Creation of Pennsylvania Disaster Assistance Fund.--
16 There is hereby created a restricted revenue account in the <--
17 General Fund SPECIAL FUND to be known as the Pennsylvania <--
18 Disaster Assistance Fund. This fund shall be maintained with a <--
19 minimum balance of $5,000,000 each fiscal year by transferring
20 up to $5,000,000 of the real property transfer tax to this
21 account to fund the programs provided for in this act. FUND <--
22 WHICH SHALL BE ONLY AVAILABLE FOR THE PURPOSES OF THIS ACT OR
23 SUCH OTHER DISASTER ASSISTANCE AS THE GENERAL ASSEMBLY MAY, FROM
24 TIME TO TIME, APPROPRIATE FUNDS.
25 (b) Nonlapsing allocation.--Allocations APPROPRIATION.-- <--
26 APPROPRIATIONS to the fund shall not lapse to the General Fund
27 if not used during the fiscal year.
28 (c) Repayment of loans.--When and as the amounts granted or <--
29 loaned by the agency to individuals, political subdivisions,
30 businesses and farms are repaid to the agency pursuant to the
19870H0370B2943 - 14 -
1 terms of the agreements made and entered into with the agency,
2 it shall pay such amounts into the fund, which shall operate as
3 a revolving fund, whereby all allocations, appropriations and
4 repayments made to the fund may be applied and reapplied to the
5 purpose of this act.
6 Section 10 8. Severability. <--
7 The provisions of this act are severable. If any provision of
8 this act or its application to any person or circumstance is
9 held invalid, the invalidity shall not affect other provisions
10 or applications of this act which can be given effect without
11 the invalid provision or application.
12 Section 11 9. Repeals. <--
13 All acts and parts of acts are repealed insofar as they are
14 inconsistent with this act.
15 Section 12 10. Applicability. <--
16 This act shall apply to disasters occurring in this
17 Commonwealth on or after January 1, 1987, THE EFFECTIVE DATE OF <--
18 THIS ACT which were the subject of either a Federal or <--
19 Commonwealth-disaster A FEDERAL DISASTER declaration. Political <--
20 subdivisions suffering losses which were a result of a disaster
21 occurring between January 1, 1986, and the effective date of
22 this act but which were not the subject of a Federal declaration
23 of disaster by the President or a Commonwealth declaration of
24 disaster by the Governor, and where funding or reimbursement for
25 such repairs and replacements cannot be obtained under other
26 State or Federal programs, shall have 60 days from the
27 development of criteria under section 6 in which to apply for
28 the relief provided under this act.
29 Section 13 11. Effective date. <--
30 This act shall take effect immediately.
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