THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GORDNER, ALLOWAY, BOSCOLA, COSTA, EARLL, KITCHEN, LOGAN, MUSTO, O'PAKE, RAFFERTY, ROBBINS, SMUCKER, TARTAGLIONE, WASHINGTON, WAUGH, WILLIAMS AND WOZNIAK, APRIL 1, 2009

REFERRED TO EDUCATION, APRIL 1, 2009  

AN ACT

Amending the act of December 20, 2001 (P.L.969, No.116),

entitled "An act providing for a program to assist public and

private institutions of higher education to install sprinkler

systems in dormitories," further providing for the sprinkler

system program.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 3 of the act of December 20, 2001

(P.L.969, No.116), known as the Dormitory Sprinkler System Act,

is amended to read:

Section 3.  Sprinkler system program.

(a)  Powers.--In addition to its other powers, the authority

is authorized to finance projects to retrofit existing college

dormitories and housing units with sprinklers by making loans to

colleges. If the authority finances a project under this

subsection, it shall finance all costs associated with the

sprinkler installation, including costs of modifying water

supply sources and plumbing necessary for the sprinklers, costs

of renovation work necessary for installation, costs of asbestos

abatement necessary as a result of the installation and costs of

integrated smoke detection and fire alarm systems.

(b)  Reimbursement.--For any authority bond issued under

subsection (a), the authority shall reimburse the college each

fiscal year for the cost of interest paid by the college during

the fiscal year on the bond in excess of an interest rate of 3%,

using funds from appropriations to the department for such

purpose or from any other funds available to the department for

such use. The department shall deposit any funds appropriated

for this purpose into a restricted account to be used to pay to

the authority the interest reimbursements when due.

(c)  Bonds.--The bonds of the authority issued to pay the

cost of a project under this act shall be authorized by

resolution of the board thereof or by the terms of a trust

indenture authorized by such board and shall be of such series,

shall bear such date or dates, shall mature at such time or

times not exceeding 20 years from their respective dates, shall

bear interest at such rate or rates, shall be in such

denominations, shall be in such form, either coupon or fully

registered without coupons, shall carry such registration,

exchangeability and interchangeability privileges, shall be

payable in such medium of payment and at such place or places,

shall be subject to such terms of redemption not exceeding 105%

of the principal amount thereof and shall be entitled to such

priorities in the revenues, rentals or receipts of the authority

as such trust, indenture, resolution or resolutions may provide.

The bonds shall be signed by such officers, either manually or

by facsimile, as the authority shall determine, and coupon bonds

shall have attached thereto interest coupons bearing the

facsimile signature of the treasurer of the authority, all as

may be prescribed in such resolution or resolutions. Bonds may

be issued and delivered notwithstanding that one or more of the

officers signing such bonds or the treasurer whose facsimile

signature shall be upon the coupons or any thereof shall have

ceased to be such officer or officers at the time when such

bonds actually shall be delivered. Such bonds may be sold at

public or private sale for such price or prices as the authority

shall determine, with the approval of the college for whose use

the project is being constructed.

Section 2.  The amendment of section 3 of the act shall apply

only to those projects for which bonds are issued on or after

the effective date of this section.

Section 3.  This act shall take effect in 60 days.