Pennsylvania HB 589: An Act establishing the Landslide and Sinkhole Insurance Program and the Landslide and Sinkhole Insurance Fund; establishing and providing for the powers and duties of the Landslide and Sinkhole Insurance Board; providing for duties of the Auditor General; imposing a penalty; and making transfers.

Bill Text

PRIOR PRINTER'S NOS. 1069, 2096 PRINTER'S NO. 2104
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 589
Session of
2025
INTRODUCED BY KINKEAD, GAYDOS, SANCHEZ, KHAN, BENHAM, VENKAT,
BRENNAN, KUZMA, CEPEDA-FREYTIZ, MALAGARI, FREEMAN, HILL-
EVANS, FLEMING, OTTEN, DEASY, STEELE, GREEN, KENYATTA,
GUENST, SCHWEYER, PASHINSKI, INGLIS, MATZIE, ABNEY,
SALISBURY, POWELL, KULIK, MAYES, D. MILLER, MARKOSEK,
McANDREW, TAKAC AND WEBSTER, MARCH 20, 2025
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JULY 9, 2025
AN ACT
Establishing the Landslide and Sinkhole Insurance Program and
the Landslide and Sinkhole Insurance Fund; establishing and
providing for the powers and duties of the Landslide and
Sinkhole Insurance Board; providing for duties of the Auditor
General; imposing a penalty; and making transfers.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Declarations.
Section 102. Definitions.
Chapter 3. Landslide and Sinkhole Insurance Program
Section 301. Program goals.
Section 302. Landslide and Sinkhole Insurance Program.
Section 303. Board authority.
Section 304. Land-use controls.
Section 305. Landslide and Sinkhole Insurance Board.
Chapter 5. Landslide and Sinkhole Insurance Fund
Section 501. Landslide and Sinkhole Insurance Fund.
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Section 502. Expenses.
Section 503. State Treasurer custodian of insurance fund.
Section 504. Schedule of premiums.
Section 505. Surplus.
Section 506. Investment of surplus.
Section 507. Disbursements from insurance fund.
Section 508. Application for insurance, terms of insurance and
penalty for false statement.
Section 509. Application for increase in insurance.
Section 510. Automatic inflation protection increase.
Section 511. Insurance for structures under construction.
Section 512. Claims.
Section 513. Audit by Auditor General.
Section 514. Claims against insurance fund.
Section 515. Defenses against claims, suits, procedure and
investigations of claims.
Section 516. Subrogation to rights of claimants.
Section 517. Insurance companies may cover this type of risk.
Chapter 7. Administration and Funding
Section 701. Rules and regulations.
Section 702. Escrow of premium payments.
Section 703. Properties in violation of State or local law.
Section 704. Board report.
Section 705. Appropriation.
Section 706. Appeals.
Section 707. Cost of administration.
Chapter 9. Miscellaneous Provisions
Section 901. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
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CHAPTER 1
PRELIMINARY PROVISIONS
Section 101. Declarations.
The General Assembly finds and declares as follows:
(1) Geologists have studied with increasing concern the
underground movement of the geological formations in this
Commonwealth and its impeding effects on vertical and
horizontal natural and manmade surfaces.
(2) Landslides and sinkholes have historically been the
norm throughout most parts of this Commonwealth.
(3) Landslides and sinkholes occur without regard for
municipal boundaries, ordinances, planning codes, politics
and economies, making it difficult for local officials to
deal effectively with the development and implementation of
methods and standards to control the devastation that these
natural forces can cause.
(4) Landslides and sinkholes have caused an enormous
amount of damage to homes and roadways in this Commonwealth,
particularly the southwestern region of the State.
(5) Landslides and sinkholes will continue to plague
southwestern Pennsylvania.
(6) Landslides and sinkholes affect every state in the
nation, causing an estimated $2,000,000,000 to $4,000,000,000
in damages per year.
(7) Landslide and sinkhole damage caused by flooding is
not covered by the National Flood Insurance Program.
(8) Problems associated with landslide and sinkhole
damage are becoming more widespread.
Section 102. Definitions.
The following words and phrases when used in this act shall
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have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Board." The Landslide and Sinkhole Insurance Board
established under section 305.
"Community." A political subdivision that has zoning and
building code jurisdiction over an area having landslide and
sinkhole features.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"GIS." Geographic information systems.
"Insurance fund." The Landslide and Sinkhole Insurance Fund
established under section 501.
"Landslide." A detached mass of soil, rock, earth or debris
that moves down a slope and is of sufficient size to cause
damage.
"Landslide features." The term includes rockfall areas,
creep, red beds and historic landslides.
"Program." The Landslide and Sinkhole Insurance Program
esta