PRINTER'S NO. 192
No. 201 Session of 1999
INTRODUCED BY BAKER, TANGRETTI, THOMAS, BELARDI, HERSHEY,
YOUNGBLOOD, COY, FEESE, SAYLOR, CHADWICK, READSHAW, HERMAN,
ARMSTRONG, BARRAR, GEIST, GORDNER, TIGUE, BATTISTO, SATHER,
WILT, E. Z. TAYLOR, CURRY, CORRIGAN, HARHAI, TRELLO, RAMOS,
MELIO, SEYFERT, C. WILLIAMS, HUTCHINSON, SOLOBAY, STEIL,
J. TAYLOR, STEELMAN AND MICHLOVIC, JANUARY 28, 1999
REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY
PREPAREDNESS, JANUARY 28, 1999
AN ACT
1 Amending Title 35 (Health and Safety) of the Pennsylvania
2 Consolidated Statutes, creating an Emergency Disaster
3 Assistance Fund and providing for its administration.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Chapter 73 of Title 35 of the Pennsylvania
7 Consolidated Statutes is amended by adding a subchapter to read:
8 SUBCHAPTER C
9 EMERGENCY DISASTER ASSISTANCE FUND
10 Sec.
11 7341. Creation of Emergency Disaster Assistance Fund.
12 7342. Imposition of surcharge.
13 7343. Collection of surcharge.
14 7344. Allocation of moneys and regulations.
15 § 7341. Creation of Emergency Disaster Assistance Fund.
16 There is hereby created a separate fund in the State Treasury
1 to be known as the Emergency Disaster Assistance Fund. The fund
2 shall be administered by the Pennsylvania Emergency Management
3 Agency.
4 § 7342. Imposition of surcharge.
5 (a) Surcharge imposed.--
6 (1) In order to provide funds for emergency management,
7 preparedness and assistance, an annual surcharge of $2 per
8 policy shall be imposed on each of the following:
9 (i) Homeowner's insurance.
10 (ii) Mobile homeowner's insurance.
11 (iii) Tenant homeowner's insurance.
12 (iv) Condominium unit owner's insurance.
13 (2) To further provide funds for emergency management,
14 preparedness and assistance, an annual surcharge of $4 shall
15 be imposed on every commercial fire, commercial multiple
16 peril and business owner's property insurance policy.
17 (b) Surcharge not premium.--The surcharge is not to be
18 considered part of an insured's premium. However, nonpayment of
19 the surcharge by the insured may be a valid reason for
20 cancellation of the policy.
21 § 7343. Collection of surcharge.
22 The surcharge shall be paid by the policyholder to the
23 insurer on any policy issued or renewed on or after July 1,
24 1999. The insurer shall collect the surcharge and remit it to
25 the Department of Revenue, which shall collect, administer and
26 enforce the surcharge. All proceeds of the surcharge shall be
27 deposited in the Emergency Disaster Assistance Fund and may not
28 be used to supplant existing funding.
29 § 7344. Allocation of moneys and regulations.
30 (a) Allocation.--All moneys deposited in the Emergency
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1 Disaster Assistance Fund are appropriated on a continuing basis
2 to the Pennsylvania Emergency Management Agency. The agency
3 shall allocate the moneys in the fund as follows:
4 (1) No more than 60% to implement and administer State
5 and local emergency management programs, including training,
6 of which 20% shall be used by the agency and 80% shall be
7 allocated to local emergency management agencies and
8 programs. Of this 80%, at least 80% shall be allocated to
9 counties.
10 (2) No more than 20% to provide for State relief
11 assistance for nonfederally declared disasters, including,
12 but not limited to, grants and low-interest loans to
13 businesses for uninsured losses resulting from a disaster.
14 (3) No more than 20% for grants and loans to State or
15 regional agencies, local governments and private
16 organizations to implement projects that will further State
17 and local emergency management objectives. These projects
18 shall include, but are not limited to, projects that will
19 promote public education on disaster preparedness and
20 recovery issues, projects that will enhance coordination of
21 relief efforts of Statewide private sector organizations and
22 improve the training and operations capabilities of agencies
23 assigned lead or support responsibilities in the Pennsylvania
24 Emergency Management Plan. No more than 5% of any award made
25 pursuant to this subchapter may be used for administrative
26 expenses.
27 (b) Adjustments to allocations.--The distribution formula
28 provided for in subsection (a) may be adjusted proportionally
29 when necessary to meet any matching requirements imposed as a
30 condition of receiving Federal disaster relief assistance or
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1 planning funds.
2 (c) Regulations.--The agency shall promulgate regulations to
3 allocate moneys from the Emergency Disaster Assistance Fund. The
4 regulations shall include, but are not limited to:
5 (1) Specifying a formula that establishes a base grant
6 allocation and weighted factors for funds to be allocated
7 over the base grant amount.
8 (2) Specifying matching requirements.
9 (3) Preferential funding provisions to provide
10 incentives to political subdivisions to participate in mutual
11 aid agreements.
12 Section 2. This act shall take effect in 60 days.
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