PRINTER'S NO. 2002
No. 1596 Session of 2005
INTRODUCED BY ALLEN, BAKER, CALTAGIRONE, ARGALL, BARRAR,
BELARDI, BELFANTI, BOYD, BUNT, CAPPELLI, CAWLEY, CRAHALLA,
GEIST, GINGRICH, GOODMAN, HARRIS, HERMAN, HESS, KILLION,
MARSICO, MILLARD, MUSTIO, PETRARCA, PHILLIPS, PRESTON, PYLE,
READSHAW, REICHLEY, SAINATO, SCAVELLO, STABACK, E. Z. TAYLOR,
J. TAYLOR, TRUE, WALKO, WILT, YUDICHAK, HENNESSEY, SCHRODER
AND DENLINGER, MAY 27, 2005
REFERRED TO COMMITTEE ON COMMERCE, MAY 27, 2005
AN ACT
1 Amending the act of March 1, 1988 (P.L.82, No.16), entitled "An
2 act providing for the establishment, implementation and
3 administration of the Pennsylvania Infrastructure Investment
4 Authority; imposing powers and duties on a board of trustees;
5 transferring the rights, powers, duties and obligations of
6 the Water Facilities Loan Board to the Pennsylvania
7 Infrastructure Investment Authority; providing for the
8 issuance of notes and bonds; providing for financial
9 assistance and for a comprehensive water facilities plan;
10 authorizing a referendum to incur indebtedness; making an
11 appropriation; and making repeals," providing for the
12 definitions of "enterprise zone", "industrial development
13 corporation" and "keystone opportunity zones", for financial
14 assistance, for the transfer of certain powers and duties
15 relating to community facilities and for the effectiveness of
16 certain rules and regulations.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. Section 3 of the act of March 1, 1988 (P.L.82,
20 No.16), known as the Pennsylvania Infrastructure Investment
21 Authority Act, is amended by adding definitions to read:
22 Section 3. Definitions.
1 The following words and phrases when used in this act shall
2 have the meanings given to them in this section unless the
3 context clearly indicates otherwise:
4 * * *
5 "Enterprise zone." An area designated as an enterprise zone
6 by the Secretary of Community and Economic Development.
7 * * *
8 "Industrial development corporation." An organization
9 certified under the act of May 17, 1956 (1955 P.L.1609, No.537),
10 known as the Pennsylvania Industrial Development Authority Act,
11 which is in good standing with the Department of Community and
12 Economic Development.
13 "Keystone opportunity zone." A zone of deteriorated
14 property, not to exceed a total of 5,000 acres, designated by
15 the Department of Community and Economic Development under the
16 act of October 6, 1998 (P.L.705, No.92), known as the Keystone
17 Opportunity Zone and Keystone Opportunity Expansion Zone Act.
18 * * *
19 Section 2. Section 10(d) of the act, amended December 16,
20 1992 (P.L.1137, No.149), is amended and the section is amended
21 by adding a subsection to read:
22 Section 10. Financial assistance.
23 * * *
24 (d) Small projects.--
25 (1) The board shall establish a program of assistance to
26 water supply and sewage disposal systems serving communities
27 with a population of 12,000 people or less or systems having
28 hookups of 1,000 or less.
29 (2) The board shall establish a program to financially
30 assist storm water projects by municipalities with a
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1 population of 12,000 people or less. In addition to other
2 factors which the board in its discretion may consider in
3 assigning priorities under this program, preference shall be
4 given where the municipality undertaking the project:
5 (i) has no natural watercourse within its
6 boundaries;
7 (ii) relies on methods of storm water control which
8 do not comply with Federal or State rules, regulations or
9 standards; or
10 (iii) has been found to be subject to karst sinkhole
11 development or other geologic condition which poses a
12 danger to person or property and which may be aggravated
13 by uncontrolled storm water flows.
14 (3) (i) The board shall establish a small water/sewer
15 project loan fund for municipalities with a population of
16 10,000 people or less and shall issue loans from the fund
17 not to exceed $200,000 or 75% of eligible project costs
18 for each loan, whichever is less. The borrower shall
19 provide a local share in the form of matching funds or
20 in-kind services at a minimum of 25% of the total project
21 costs. The loan shall be for ten years at an interest
22 rate of 2%.
23 (ii) Loans under this paragraph shall be used for
24 the following purposes:
25 (A) Drinking water facilities including
26 construction, rehabilitation, alteration, expansion
27 or improvement of water facilities.
28 (B) Pumping stations, distribution and treatment
29 facilities and reservoir rehabilitation projects.
30 (C) Sanitary sewage disposal facilities,
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1 including all facilities related to collection lines
2 and sewage treatment facilities and excluding storm
3 sewers.
4 (D) Access roads to serve a public water or
5 sanitary sewer facility.
6 (4) (i) The board shall administer the Community
7 Facilities Grant Program, which is hereby established.
8 The program shall provide supplemental financial
9 assistance in the form of grants for needed public
10 facilities to strengthen income-producing capability,
11 improve health and safety and alleviate financial
12 hardship of the community.
13 (ii) Grants may be awarded under this paragraph from
14 moneys available under 27 Pa.C.S. (relating to
15 Environmental Resources) and shall not exceed $100,000
16 for each grant. Certain eligible economically distressed
17 communities, as determined under the act of July 10, 1987
18 (P.L.246, No.47), known as the Municipalities Financial
19 Recovery Act, may receive not more than $125,000 for each
20 grant.
21 (iii) Any borough, township or city with a
22 population of 10,000 or less and municipal and county
23 authorities serving such places is eligible for a grant
24 under this paragraph. For projects serving more than one
25 municipality, the population served may not exceed
26 10,000.
27 (iv) Grants under this paragraph shall be used for
28 the following purposes:
29 (A) Drinking water facilities including
30 construction, rehabilitation, alteration, expansion
20050H1596B2002 - 4 -
1 or improvement of water facilities.
2 (B) Pumping stations, distribution and treatment
3 facilities and reservoir rehabilitation projects.
4 (C) Sanitary sewage disposal facilities,
5 including all facilities related to collection lines
6 and sewage treatment facilities and excluding storm
7 sewers.
8 (D) Access roads to serve a public water or
9 sanitary sewer facility.
10 (v) The board shall promulgate regulations to
11 implement this paragraph.
12 (5) The board shall annually expend not more than
13 $15,000,000 from any funds available to the authority for the
14 purpose of implementing paragraph (3).
15 * * *
16 (f.1) Special conditions for enterprise zones and keystone
17 opportunity zones.--
18 (1) The board shall establish a program of assistance to
19 water supply and sewage disposal systems serving communities
20 in which enterprise zones or keystone opportunity zones are
21 located. The board shall establish an Enterprise and Keystone
22 Opportunity Zone Project Loan Fund for assistance to projects
23 located within enterprise or keystone opportunity zone
24 communities. Loans from the fund are not to exceed $1,500,000
25 or 100% of eligible project costs for each loan, whichever is
26 less. The loan shall be for 20 years at no interest if the
27 applicant within the enterprise zone or keystone opportunity
28 zone is an industrial development corporation, a municipality
29 or a municipal authority. If the borrower is a private
30 company or person, the interest rate on a loan shall be as
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1 determined under subsection (f), but shall be for no longer
2 than 20 years. Loans under this subsection shall be used for
3 the following purposes:
4 (i) Drinking water facilities, including
5 construction, rehabilitation, alteration, expansion or
6 improvement of water facilities.
7 (ii) Pumping stations, distribution and treatment
8 facilities and reservoir rehabilitation projects.
9 (iii) Sanitary sewage facilities, including all
10 facilities related to collection lines at sewage
11 treatment facilities and storm sewers.
12 (iv) Access roads to serve a public water or
13 sanitary sewer facility.
14 (2) The board shall also administer an Enterprise and
15 Keystone Opportunity Zone Facilities Grant Program. The
16 program shall provide supplemental financial assistance in
17 the form of grants for needed public facilities in enterprise
18 zones or keystone opportunity zones for the same purposes as
19 outlined in paragraph (2).
20 (3) A grant shall not exceed $250,000. Grants shall be
21 made in conformance with subsection (e) and any guidelines
22 promulgated by the authority.
23 * * *
24 Section 3. The functions, powers and duties of the
25 Department of Community and Economic Development with regard to
26 the community facilities program as provided for in 13 Pa. Code
27 Ch. 11 (relating to community facilities) are transferred to and
28 shall be exercised by the authority, and all records, files and
29 property now being used in connection with such functions,
30 powers and duties and the unexpended balances of appropriations,
20050H1596B2002 - 6 -
1 allocations and other funds available or to be made available
2 for use in connection with the functions, powers and duties are
3 transferred to the authority.
4 Section 4. Each rule and regulation of the Department of
5 Community and Economic Development relating to the Community
6 Facilities Grant Program in effect on the effective date of this
7 section shall remain in effect until repealed or amended by the
8 board or until it terminates in accordance with its own terms.
9 Section 5. All acts and parts of acts are repealed insofar
10 as they are inconsistent with this act.
11 Section 6. This act shall take effect in 60 days.
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