Mine Subsidence Right To Know Act

Summary: Mine Subsidence Right To Know Act - Requires the lender of any federally related mortgage loan for the purchase of a dwelling located in a mine subsidence hazard State to provide written and oral notice to the borrower contemporaneous with the purchase agreement of:  (1) the potential or actual hazards facing the property as a result of its location; (2) the availability or results of Federal determination of potential or actual hazard in the property area; and (3) the availability of insurance protection. 
Requires the insurer of a homeowner's insurance policy to timely notify the policyholder of the absence or availability of coverage for mine subsidence damage. 
Requires the Director of the Office of Surface Mining Reclamation and Enforcement of the Department of the Interior to: (1) identify, certify, and subsequently publish in the Federal Register all areas in each State that are subject to mine subsidence hazard risk; and (2) periodically review such areas.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mine Subsidence Right To Know Act''.

SEC. 2. PROTECTION OF HOMEBUYERS.

    (a) Notice Requirement.--In the case of any federally related 
mortgage loan (made after the expiration of the period under section 
4(a)) for the purchase of a dwelling located in a mine subsidence 
hazard State, the person making the loan shall provide the borrower 
notice in accordance with subsection (b) or (c). Such notice shall be 
provided orally and in writing, at or before the time of the signing of 
the purchase agreement for the property for which the federally related 
mortgage loan is made, and shall be evidenced by a statement signed by 
the borrower that such oral and written notice has been provided to the 
borrower.
    (b) Notice of Potential for Hazards.--Notice in accordance with 
this subsection is notice--
            (1) that the dwelling is located in a mine subsidence 
        hazard State and, therefore, may be subject to damage from mine 
        subsidence;
            (2) that the borrower can obtain a determination of whether 
        the dwelling is located in a mine subsidence hazard area from 
        the Office and how to obtain such a determination; and
            (3) that insurance coverage may be purchased to insure the 
        borrower against loss caused by mine subsidence and where the 
        borrower may obtain information regarding purchasing such 
        insurance.
    (c) Notice of Determination of Hazards.--Notice in accordance with 
this subsection is notice--
            (1) that the dwelling is located in a mine subsidence 
        hazard State and, therefore, may be subject to damage from mine 
        subsidence;
            (2) of the results of a determination by the Office 
        regarding whether the dwelling is located in a mine subsidence 
        hazard area, which shall be made by the Office upon the request 
        of the person making the loan;
            (3) that such determination was made by the Office upon the 
        request of the person making the loan; and
            (4) that insurance coverage may be purchased to insure the 
        borrower against loss caused by mine subsidence and where the 
        borrower may obtain information regarding purchasing such 
        insurance.
Any person who makes a federally related mortgage loan and provides 
notice in accordance with this subsection shall not be civilly or 
criminally liable under any provision of law for any damages resulting 
from any mine subsidence affecting the dwelling for which the loan was 
made.
    (d) Enforcement.--If a person making a federally related mortgage 
loan fails to provide notice required under this section, the Federal 
banking or financial regulatory agency having supervisory or regulatory 
authority with respect to such person may, to require compliance with 
this section, take such actions as are authorized by the laws and 
regulations providing such supervisory or regulatory authority.

SEC. 3. PROTECTION OF HOMEOWNERS.

    (a) Notice.--In the case of the purchase or renewal (occurring 
after the expiration of the period under section 4(a)) of any 
homeowner's insurance policy for any dwelling located in a mine 
subsidence hazard State, the insurer under such policy shall, before 
such purchase or renewal, notify the individual making the purchase or 
renewal--
            (1) of the coverage of such policy of damage from mine 
        subsidence;
            (2) if such policy does not cover mine subsidence, of where 
        such individual may purchase insurance which does cover losses 
        caused by mine subsidence; and
            (3) that the individual can obtain a determination of 
        whether the insured property is located in a mine subsidence 
        hazard area from the Office and how to obtain such a 
        determination.
    (b) Penalty.--If an insurer fails to provide the notice required 
under subsection (a), the State insurance agency for the State in which 
the dwelling involved is located may, under this subsection, impose on 
the insurer such penalties as the State insurance agency may impose on 
insurers who fail to comply with requirements applicable in such State 
to the offering of insurance.

SEC. 4. IDENTIFICATION OF MINE SUBSIDENCE HAZARD AREAS.

    (a) Identification.--Not later than the expiration of the 12-month 
period beginning on the date of the enactment of this Act, the Director 
of the Office of Surface Mining Reclamation and Enforcement of the 
Department of the Interior shall--
            (1) identify all areas in each State that, because of 
        underground coal or clay mining, are subject to significant and 
        identifiable risk of mine subsidence, based upon the most 
        recent information available to the Director regarding such 
        hazards (which shall include any information of the United 
        States Geological Survey);
            (2) certify such areas as mine subsidence hazard areas; and
            (3) cause to be published in the Federal Register 
        information identifying each mine subsidence hazard area.
    (b) Review.--
            (1) In general.--At the times required under paragraph (2), 
        the Director shall review the areas that at such time are 
        certified as mine subsidence hazard areas and determine, based 
        on the most recent information available to the Director 
        regarding mine subsidence hazards (which shall include any 
        information of the United States Geological Survey of the 
        Department of the Interior), whether the current certification 
        of areas requires revision. The Director shall revise the 
        certifications under subsection (a) as necessary pursuant to 
        each such review and shall cause to be published in the Federal 
        Register information identifying any changes to such 
        certifications.
            (2) Timing.--The Director shall undertake review and 
        revision under paragraph (1)--
                    (A) with respect to all States, not less than once 
                during every 2-year period (the first such period 
                beginning upon the expiration of the period under 
                subsection (a)); and
                    (B) with respect only to the area for which a 
                request under this subparagraph is made, upon the 
                request from any State or unit of general local 
                government stating that specific mine subsidence 
                hazards resulting from underground coal or clay mining 
                in such State or unit require such revision, but only 
                if the Director determines that the most recent 
                technical information available to the Director 
                justifies the request.

SEC. 5. DEFINITIONS.

            (1) Director.--The term ``Director'' means the Director of 
        the Office.
            (2) Federally related mortgage loan.--The term ``federally 
        related mortgage loan'' has the meaning given the term in 
        section 3 of the Real Estate Settlement Procedures Act of 1974 
        (12 U.S.C. 2604).
            (3) Homeowners insurance.--The term ``homeowners 
        insurance'' means the homeowners insurance and dwelling fire 
        and allied lines of business of property and casualty 
        insurance. Such term does not include any renters coverage or 
        coverage for the personal property of a condominium owner.
            (4) Mine subsidence hazard area.--The term ``mine 
        subsidence hazard area'' means any area for which a 
        certification under section 4 by the Director is in effect.
            (5) Mine subsidence hazard state.--The term ``mine 
        subsidence hazard State'' means a State that contains any 
        portion of any mine subsidence hazard area.
            (6) Office.--The term ``Office'' means the Office of 
        Surface Mining Reclamation and Enforcement of the Department of 
        the Interior.
            (7) Property and casualty insurance.--The term ``property 
        and casualty insurance'' means insurance against loss of or 
        damage to property, insurance against loss of income or extra 
        expense incurred because of loss of or damage to property, and 
        insurance against third party liability claims caused by 
        negligence or imposed by statue or contract. Such term does not 
        include workers' compensation, professional liability, or title 
        insurance.
            (8) State.--The term ``State'' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, and any other 
        territory or possession of the United States.