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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 653, 2500, 3470          PRINTER'S NO. 3779

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 591 Session of 1989


        INTRODUCED BY ARGALL, McCALL, ALLEN, G. SNYDER, J. L. WRIGHT,
           BOYES, GODSHALL, STABACK, CESSAR, NOYE, JOHNSON, DISTLER,
           TIGUE, HASAY, DORR, BUSH, SERAFINI, E. Z. TAYLOR, FOX,
           DEMPSEY, MRKONIC, PETRARCA, SCHULER, CLYMER, HERMAN, VEON,
           HALUSKA, MORRIS, REBER, GANNON, LEVDANSKY, GRUPPO, ANGSTADT,
           GEIST, ROBBINS, DeLUCA, D. W. SNYDER, LASHINGER, LEH, McHALE,
           FREEMAN, VROON, DIETTERICK, RAYMOND, HESS, BURD, J. H. CLARK,
           KAISER, CORNELL, FLICK, BELARDI, MELIO, HECKLER, MARSICO AND
           BROUJOS, FEBRUARY 15, 1989

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 19, 1990

                                     AN ACT

     1  Amending the act of July 15, 1976 (P.L.1036, No.208), entitled,
     2     as amended, "An act authorizing the indebtedness, with the
     3     approval of the electors, of twenty-five million dollars for
     4     loans to volunteer fire companies, volunteer ambulance
     5     services and volunteer rescue squads for the purpose of
     6     establishing or modernizing facilities to house fire fighting
     7     apparatus equipment, ambulances, and rescue vehicles, and for
     8     purchasing new fire fighting apparatus equipment, ambulances,
     9     and rescue vehicles, protective and communications equipment,
    10     and any other accessory equipment necessary for the proper
    11     performance of such organizations' duties," providing for an
    12     exception to loan limits and adjusting loan limits; AND        <--
    13     PROVIDING FOR A REFERENDUM QUESTION ON ADDITIONAL
    14     INDEBTEDNESS; PROVIDING FOR CONTRACTS FOR SERVICES BETWEEN     <--
    15     THE COMMONWEALTH AND VOLUNTEER FIRE, AMBULANCE AND RESCUE
    16     COMPANIES; AND MAKING APPROPRIATIONS.

    17     The General Assembly of the Commonwealth of Pennsylvania
    18  hereby enacts as follows:
    19     SECTION 1.  THE TITLE OF THE ACT OF JULY 15, 1976 (P.L.1036,   <--
    20  NO.208), KNOWN AS THE VOLUNTEER FIRE COMPANY, AMBULANCE SERVICE
    21  AND RESCUE SQUAD ASSISTANCE ACT, AMENDED MAY 11, 1982 (P.L.407,

     1  NO.118), IS AMENDED TO READ:
     2                               AN ACT
     3  AUTHORIZING THE INDEBTEDNESS, WITH THE APPROVAL OF THE ELECTORS,
     4     OF [TWENTY-FIVE] FIFTY MILLION DOLLARS FOR LOANS TO VOLUNTEER
     5     FIRE COMPANIES, VOLUNTEER AMBULANCE SERVICES AND VOLUNTEER
     6     RESCUE SQUADS FOR THE PURPOSE OF ESTABLISHING OR MODERNIZING
     7     FACILITIES TO HOUSE FIRE FIGHTING APPARATUS EQUIPMENT,
     8     AMBULANCES, AND RESCUE VEHICLES, AND FOR PURCHASING NEW FIRE
     9     FIGHTING APPARATUS EQUIPMENT, AMBULANCES, AND RESCUE
    10     VEHICLES, PROTECTIVE AND COMMUNICATIONS EQUIPMENT, AND ANY
    11     OTHER ACCESSORY EQUIPMENT NECESSARY FOR THE PROPER
    12     PERFORMANCE OF SUCH ORGANIZATIONS' DUTIES.
    13     Section 1 2.  Section 3 of the act of July 15, 1976            <--
    14  (P.L.1036, No.208), known as the Volunteer Fire Company,
    15  Ambulance Service and Rescue Squad Assistance Act, is amended by
    16  adding a definition to read:
    17     Section 3.  Definitions.--As used in this act:
    18     * * *
    19     "Rescue vehicle" means any vehicle, whether a motor vehicle
    20  or a watercraft, used for rescue services.
    21     * * *
    22     Section 2 3.  Section 4(a)(1), (2) 4(A)(2) and (6) and (b) of  <--
    23  the act, amended June 13, 1980 (P.L.217, No.65) and May 11, 1982
    24  (P.L.407, No.118), are amended and the section is amended by
    25  adding a subsection to read:
    26     Section 4.  Assistance to Volunteer Fire Companies, Ambulance
    27  Service and Rescue Squads.--(a)  The department is hereby
    28  authorized, upon application of any volunteer fire company,
    29  volunteer ambulance service and volunteer rescue squad, to make
    30  loans to said volunteer companies for the following purposes:
    19890H0591B3779                  - 2 -

     1     (1)  Establishing or modernizing facilities that house fire    <--
     2  fighting equipment, ambulance or rescue vehicles. The amount of
     3  a loan for establishing or modernizing facilities made to any
     4  one volunteer fire company, ambulance service or rescue squad
     5  shall not exceed 50% of the total cost of the facilities or
     6  modernization or [$50,000] $75,000, whichever is less, and a
     7  notarized financial statement filed under subsection (c) shall
     8  show that the applicant has available 20% of the total cost of
     9  the facilities in unobligated funds. Proceeds of the loan shall
    10  be used only for purposes of land acquisition or construction,
    11  and shall not be used for payment of fees for design, planning,
    12  preparation of applications, or any other cost not directly
    13  attributable to land acquisition or construction.
    14     * * *                                                          <--
    15     (2)  Purchasing fire fighting apparatus, ambulances or rescue
    16  vehicles. The amount of a loan made for purchasing fire fighting
    17  apparatus, to any one volunteer fire company shall not exceed
    18  [$50,000] $100,000 for any single fire fighting apparatus
    19  equipment or utility or special service vehicle or heavy duty
    20  rescue vehicle as defined by regulation, or 50% of the total
    21  cost of the equipment or vehicle, whichever is less EXCEPT FOR    <--
    22  LOANS FOR AERIAL APPARATUS AS DEFINED BY REGULATION, WHICH SHALL
    23  NOT EXCEED $150,000. The amount of a loan made to any one
    24  volunteer fire company, ambulance service or rescue squad for
    25  any ambulance or light duty rescue vehicle as defined by
    26  regulation shall not exceed $40,000 $50,000 and for a watercraft  <--
    27  rescue vehicle shall not exceed [$25,000] $15,000 or 50% of the
    28  cost of the ambulance or rescue vehicle, whichever is less, and
    29  a notarized financial statement filed under subsection (c) shall
    30  show that the applicant has available 20% of the total cost of
    19890H0591B3779                  - 3 -

     1  the vehicle in unobligated funds.
     2     * * *
     3     (6)  Purchasing of used fire fighting apparatus, equipment,
     4  used ambulances, used rescue vehicles, used communications
     5  equipment, used accessory equipment or used protective
     6  equipment: Provided, however, That the used vehicles and
     7  equipment shall meet the National Fire Protection Association
     8  (NFPA) standards: And provided further, That loans for the
     9  purchase of a used single apparatus equipment shall not exceed
    10  $60,000 or 80% of the total cost of the equipment, whichever is
    11  less.
    12     Loans under this act may be made for any of the purposes of
    13  this subsection undertaken by a volunteer fire company,
    14  volunteer ambulance service and volunteer rescue squad on or
    15  after November 4, 1975, the date of the approval of the
    16  referendum approving the borrowing of money for the purposes of
    17  this act.
    18     (b)  Loans made by the department IN THE AMOUNT OF $100,000    <--
    19  OR MORE shall be for a period of not more than [ten] 15 years,
    20  LOANS LESS THAN $100,000 SHALL BE FOR A PERIOD OF TEN YEARS, and  <--
    21  any loan of the amount of [$10,000] $15,000 or less shall be for
    22  a period of not more than five years. Loans shall be subject to
    23  the payment of interest at 2% per annum and shall be subject to
    24  such security as shall be determined by the department. The
    25  total amount of interest earned by the investment or
    26  reinvestment of all or any part of the principal of any loan
    27  shall be returned to the department and transferred to the
    28  Volunteer Companies Loan Fund, and shall not be credited as
    29  payment of principal or interest on the loan. The minimum amount
    30  of any loan shall be [$1,000] $5,000.
    19890H0591B3779                  - 4 -

     1     * * *
     2     (h)  Notwithstanding any other provision of this section to
     3  the contrary, the maximum amount of any loan to a volunteer fire
     4  company, volunteer ambulance service and volunteer rescue squad
     5  for the purchase of fire fighting apparatus, ambulances or
     6  rescue vehicles built MANUFACTURED OR ASSEMBLED in this           <--
     7  Commonwealth may exceed the loan limits set forth in this
     8  section by $10,000.
     9     Section 3.  This act shall take effect in 60 days.             <--
    10     SECTION 3 4.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:   <--
    11     SECTION 18.1.  REFERENDUM FOR ADDITIONAL INDEBTEDNESS.--(A)
    12  THE QUESTION OF INCURRING INDEBTEDNESS OF $25,000,000 FOR LOANS
    13  TO VOLUNTEER FIRE COMPANIES, VOLUNTEER AMBULANCE SERVICES AND
    14  VOLUNTEER RESCUE SQUADS FOR THE PURPOSE OF ESTABLISHING OR
    15  MODERNIZING FACILITIES TO HOUSE FIREFIGHTING APPARATUS
    16  EQUIPMENT, AMBULANCES AND RESCUE VEHICLES, AND FOR PURCHASING
    17  FIREFIGHTING APPARATUS EQUIPMENT, AMBULANCES AND RESCUE
    18  VEHICLES, PROTECTIVE AND COMMUNICATIONS EQUIPMENT, AND ANY OTHER
    19  ACCESSORY EQUIPMENT NECESSARY FOR THE PROPER PERFORMANCE OF SUCH
    20  ORGANIZATIONS' DUTIES, SHALL BE SUBMITTED TO THE ELECTORS AT THE
    21  NEXT PRIMARY, MUNICIPAL OR GENERAL ELECTION FOLLOWING ENACTMENT
    22  OF THIS ACT.
    23     (B)  THE SECRETARY OF THE COMMONWEALTH SHALL FORTHWITH
    24  CERTIFY THE QUESTION TO THE COUNTY BOARDS OF ELECTION.
    25     (C)  THE QUESTION SHALL BE IN SUBSTANTIALLY THE FOLLOWING
    26  FORM:
    27         DO YOU FAVOR THE INCURRING OF INDEBTEDNESS OF $25,000,000
    28     FOR LOANS TO VOLUNTEER FIRE COMPANIES, VOLUNTEER AMBULANCE
    29     SERVICES AND VOLUNTEER RESCUE SQUADS FOR THE PURPOSE OF
    30     ESTABLISHING OR MODERNIZING FACILITIES TO HOUSE FIREFIGHTING
    19890H0591B3779                  - 5 -

     1     APPARATUS EQUIPMENT, AMBULANCES AND RESCUE VEHICLES, AND FOR
     2     PURCHASING FIREFIGHTING APPARATUS EQUIPMENT, AMBULANCES AND
     3     RESCUE VEHICLES, PROTECTIVE AND COMMUNICATIONS EQUIPMENT, AND
     4     ANY OTHER ACCESSORY EQUIPMENT NECESSARY FOR THE PROPER
     5     PERFORMANCE OF SUCH ORGANIZATIONS' DUTIES?
     6     (D)  THE ELECTION SHALL BE CONDUCTED IN ACCORDANCE WITH THE
     7  ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE
     8  "PENNSYLVANIA ELECTION CODE," EXCEPT THAT THE TIME LIMITS FOR
     9  ADVERTISEMENT OF NOTICE OF THE ELECTION MAY BE WAIVED AS TO THE
    10  QUESTION.
    11     (E)  PROCEEDS OF BORROWING SHALL BE USED THROUGH LOANS TO
    12  VOLUNTEER FIRE COMPANIES, VOLUNTEER AMBULANCE SERVICES AND
    13  VOLUNTEER RESCUE SQUADS PURSUANT TO AND FOR ANY PURPOSE
    14  ESTABLISHED BY THIS ACT.
    15     SECTION 18.2.  AUTHORIZATION OF CONTRACTS.--(A)  THE
    16  SECRETARY OF GENERAL SERVICES IS HEREBY AUTHORIZED TO ENTER INTO
    17  CONTRACTS WITH LOCAL VOLUNTEER FIRE, AMBULANCE AND RESCUE
    18  COMPANIES TO PROVIDE SERVICES NECESSARY TO EXTINGUISH FIRES OR
    19  PERFORM ANY OTHER ALLIED SERVICES ON STATE-OWNED PROPERTY.
    20     (B)  THE SECRETARY OF TRANSPORTATION IS HEREBY AUTHORIZED TO
    21  ENTER INTO CONTRACTS WITH LOCAL VOLUNTEER FIRE, AMBULANCE AND
    22  RESCUE COMPANIES TO PROVIDE SERVICES NECESSARY TO EXTINGUISH
    23  FIRES OR PERFORM ANY OTHER ALLIED SERVICES ON LIMITED ACCESS
    24  HIGHWAYS, OTHER THAN THE PENNSYLVANIA TURNPIKE.
    25     SECTION 18.3.  REIMBURSEMENT PROCEDURE AND AMOUNT.--(A)  ANY
    26  SUCH CONTRACT BETWEEN THE SECRETARY OF GENERAL SERVICES OR THE
    27  SECRETARY OF TRANSPORTATION AND A LOCAL VOLUNTEER FIRE,
    28  AMBULANCE AND RESCUE COMPANY SHALL PROVIDE THAT THE DEPARTMENT
    29  OF GENERAL SERVICES OR THE DEPARTMENT OF TRANSPORTATION SHALL,
    30  MONTHLY, UPON RECEIPT OF PROPER PROOF, REIMBURSE EACH CONTRACTED
    19890H0591B3779                  - 6 -

     1  VOLUNTEER FIRE, AMBULANCE AND RESCUE COMPANY ATTENDING AND
     2  PROVIDING FIRE CONTROL OR OTHER ALLIED SERVICES ON STATE-OWNED
     3  PROPERTY OR LIMITED ACCESS HIGHWAYS, AS THE CASE MAY BE, A
     4  MINIMUM AMOUNT OF $50 FOR EACH VERIFIED FIRE OR EMERGENCY CALL
     5  AND THE COST OF ANY SPECIAL EXTINGUISHING AGENTS UTILIZED, WHICH
     6  THE VOLUNTEER FIRE, AMBULANCE AND RESCUE COMPANY MADE IN THE
     7  PRECEDING MONTH AS CERTIFIED BY THE PERSON IN CHARGE AT THE
     8  PARTICULAR STATE-OWNED PROPERTY OR BY AN INDIVIDUAL OR
     9  INDIVIDUALS DESIGNATED BY THE SECRETARY OF TRANSPORTATION TO
    10  VERIFY SERVICES RENDERED ON LIMITED ACCESS HIGHWAYS.
    11     (B)  ANY SUCH CONTRACT BETWEEN THE DEPARTMENT OF GENERAL
    12  SERVICES OR THE DEPARTMENT OF TRANSPORTATION AND A LOCAL
    13  VOLUNTEER AMBULANCE OR RESCUE COMPANY SHALL ALSO PROVIDE THAT
    14  THE AMBULANCE OR RESCUE COMPANY REQUEST REIMBURSEMENT FROM
    15  COLLECTIBLE INSURANCE PROCEEDS AVAILABLE AS A RESULT OF THE FIRE
    16  OR EMERGENCY SITUATION FOR WHICH THE AMBULANCE OR RESCUE COMPANY
    17  PROVIDED ALLIED SERVICES. ANY SUCH PROCEEDS PAYABLE TO THE
    18  AMBULANCE OR RESCUE COMPANY SHALL BE DEDUCTED FROM THE
    19  REIMBURSEMENT FOR SERVICES PROVIDED PURSUANT TO A CONTRACT
    20  ENTERED INTO UNDER THIS ACT. PRIOR TO PAYMENT FOR SERVICES
    21  RENDERED, THE LOCAL VOLUNTEER AMBULANCE OR RESCUE COMPANY SHALL
    22  PROVIDE PROOF THAT THEY REQUESTED REIMBURSEMENT FROM COLLECTIBLE
    23  INSURANCE PROCEEDS.
    24     (C)  A FALSE ALARM ON STATE-OWNED PROPERTY TO WHICH A
    25  VOLUNTEER FIRE, AMBULANCE OR RESCUE COMPANY RESPONDS SHALL
    26  CONSTITUTE A FIRE OR EMERGENCY CALL AND SHALL BE REIMBURSED AT A
    27  RATE SET BY THE CONTRACT WITH THE SECRETARY OF GENERAL SERVICES,
    28  BUT SHALL NOT BE LESS THAN $25 FOR EACH OCCURRENCE.
    29     SECTION 18.4.  APPROPRIATIONS.--(A)  THE SUM OF $250,000, OR
    30  AS MUCH THEREOF AS MAY BE NECESSARY, IS HEREBY APPROPRIATED TO
    19890H0591B3779                  - 7 -

     1  THE DEPARTMENT OF GENERAL SERVICES FOR THE FISCAL YEAR ENDING
     2  JUNE 30, 1991, TO EFFECTUATE THE PURPOSES OF SECTIONS 18.2 AND
     3  18.3. ALL FUNDS UNEXPENDED, UNCOMMITTED OR UNENCUMBERED ON JUNE
     4  30, 1991, SHALL LAPSE.
     5     (B)  THE SUM OF $250,000, OR AS MUCH THEREOF AS MAY BE
     6  NECESSARY, IS HEREBY APPROPRIATED TO THE DEPARTMENT OF
     7  TRANSPORTATION FOR THE FISCAL YEAR ENDING JUNE 30, 1991, TO
     8  EFFECTUATE THE PURPOSES OF SECTIONS 18.2 AND 18.3. ALL FUNDS
     9  UNEXPENDED, UNCOMMITTED OR UNENCUMBERED ON JUNE 30, 1991, SHALL
    10  LAPSE.
    11     SECTION 4 5.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.          <--













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