I
105TH CONGRESS
1ST SESSION
H. R. 3062
To require the provision of information sufficient for homebuyers and home-
owners to insure themselves against loss from subsidence resulting from
underground coal or clay mines.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 13, 1997
Mr. KLINK (for himself, Mr. MCHALE, Mr. ENGLISH of Pennsylvania, Mr.
MASCARA, and Mr. DOYLE) introduced the following bill; which was re-
ferred to the Committee on Banking and Financial Services, and in addi-
tion to the Committee on Resources, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To require the provision of information sufficient for home-
buyers and homeowners to insure themselves against loss
from subsidence resulting from underground coal or clay
mines.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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 fed-
erally related mortgage loan (made after the expiration of
the period under section 4(a)) for the purchase of a dwell-
ing located in a mine subsidence hazard State, the person
making the loan shall provide the borrower notice in ac-
cordance 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 sub-
sidence hazard State and, therefore, may be subject
to damage from mine subsidence;
(2) that the borrower can obtain a determina-
tion 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 in-
formation regarding purchasing such insurance.
(c) NOTICE OF DETERMINATION OF HAZARDS.—No-
tice in accordance with this subsection is notice—
(1) that the dwelling is located in a mine sub-
sidence hazard State and, therefore, may be subject
to damage from mine subsidence;
(2) of the results of a determination by the Of-
fice 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 in-
formation 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 subsid-
ence 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 regu-
latory 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 dwell-
ing 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 subsid-
ence, of where such individual may purchase insur-
ance which does cover losses caused by mine subsid-
ence; and
(3) that the individual can obtain a determina-
tion 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 no-
tice required under subsection (a), the State insurance
agency for the State in which the dwelling involved is lo-
cated 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 applica-
ble 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 enact-
ment 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 in-
clude any information of the United States Geologi-
cal Survey);
(2) certify such areas as mine subsidence haz-
ard areas; and
(3) cause to be published in the Federal Reg-
ister 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 re-
cent information available to the Director regarding
mine subsidence hazards (which shall include any in-
formation 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 infor-
mation identifying any changes to such certifi-
cations.
(2) TIMING.—The Director shall undertake re-
view 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 pe-
riod 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 gen-
eral local government stating that specific mine
subsidence hazards resulting from underground
coal or clay mining in such State or unit re-
quire such revision, but only if the Director de-
termines that the most recent technical infor-
mation available to the Director justifies the re-
quest.
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 Es-
tate Settlement Procedures Act of 1974 (12 U.S.C.
2604).
(3) 
HOMEOWNERS
INSURANCE.—The 
term
‘‘homeowners insurance’’ means the homeowners in-
surance 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 Di-
rector 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 Of-
fice of Surface Mining Reclamation and Enforce-
ment 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, in-
surance against loss of income or extra expense in-
curred 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, profes-
sional liability, or title insurance.
(8) STATE.—The term ‘‘State’’ means the
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Guam,
the Virgin Islands, American Samoa, and any other
territory or possession of the United States.
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