THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY MURT, CALTAGIRONE, CLYMER, GEIST, GEORGE, GIBBONS, GOODMAN, LONGIETTI, MILLARD AND WAGNER, MAY 10, 2011

REFERRED TO COMMITTEE ON FINANCE, MAY 10, 2011  

AN ACT

Amending the act of April 9, 1929 (P.L.343, No.176), entitled,

as amended, "An act relating to the finances of the State

government; providing for the settlement, assessment,

collection, and lien of taxes, bonus, and all other accounts

due the Commonwealth, the collection and recovery of fees and

other money or property due or belonging to the Commonwealth,

or any agency thereof, including escheated property and the

proceeds of its sale, the custody and disbursement or other

disposition of funds and securities belonging to or in the

possession of the Commonwealth, and the settlement of claims

against the Commonwealth, the resettlement of accounts and

appeals to the courts, refunds of moneys erroneously paid to

the Commonwealth, auditing the accounts of the Commonwealth

and all agencies thereof, of all public officers collecting

moneys payable to the Commonwealth, or any agency thereof,

and all receipts of appropriations from the Commonwealth,

authorizing the Commonwealth to issue tax anticipation notes

to defray current expenses, implementing the provisions of

section 7(a) of Article VIII of the Constitution of

Pennsylvania authorizing and restricting the incurring of

certain debt and imposing penalties; affecting every

department, board, commission, and officer of the State

government, every political subdivision of the State, and

certain officers of such subdivisions, every person,

association, and corporation required to pay, assess, or

collect taxes, or to make returns or reports under the laws

imposing taxes for State purposes, or to pay license fees or

other moneys to the Commonwealth, or any agency thereof,

every State depository and every debtor or creditor of the

Commonwealth," further providing, in Local Government Capital

Project Loan Fund provisions, for assistance to

municipalities.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1603-D of the act of April 9, 1929

(P.L.343, No.176), known as The Fiscal Code, amended or added

October 6, 1997 (P.L.387, No.46) and July 5, 2006 (P.L.296,

No.66), is amended to read:

Section 1603-D.  Assistance to Municipalities.--(a)  The

department is hereby authorized, upon application of a

municipality, to make loans to the municipality for the

following purposes and in the following amounts:

1.  Purchasing equipment. The amount of a loan made for

purchasing equipment shall not exceed [twenty-five thousand

dollars ($25,000)] fifty thousand dollars ($50,000) for any

single piece of equipment or fifty per centum of the total cost

of the piece of equipment, whichever is less.

2.  Purchasing, constructing, renovating or rehabilitating

facilities. The amount of a loan made for purchasing,

constructing, renovating or rehabilitating facilities shall not

exceed [fifty thousand dollars ($50,000)] one hundred thousand

dollars ($100,000) for any single facility or fifty per centum

of the total cost for purchasing, constructing, renovating or

rehabilitating the facility, whichever is less.

[3.  Temporary increase in loan limits. For the fiscal year

commencing July 1, 2006, loans issued pursuant to paragraph 1

shall not exceed fifty thousand dollars ($50,000) and issued

pursuant to paragraph 2 shall not exceed one hundred thousand

dollars ($100,000).]

(b)  Loans made by the department for the purchase of

equipment shall be for a period not to exceed the useful life of

the equipment, and loans made for the purchase, construction,

renovation or rehabilitation of facilities shall be for a period

of not more than [ten] twenty years. Loans shall be subject to

the payment of interest at two per centum per annum and shall be

subject to such security as shall be determined by the

department. The total amount of interest earned by the

investment or reinvestment of all or any part of the principal

of any loan shall be returned to the department and transferred

to the fund and shall not be credited as payment of principal or

interest on the loan. The minimum amount of any loan shall be

one thousand dollars ($1,000). The municipality shall comply

with the approval requirements of 53 Pa.C.S. Ch. 80 Subch. C 

(relating to procedure for securing approval of electors).

(c)  Every application for a loan under this article shall be

accompanied by a financial statement of the municipality and a

financial plan to show how the loan will be repaid. Every

application shall be accompanied by evidence sufficient to show

that all costs, except the amount of the loan, will be met by

assets or revenues of the municipality, grants or loans from

other sources or in-kind contributions or services.

(d)  Loans under this article shall be used for purchasing

equipment and for purchasing, constructing, renovating or

rehabilitating facilities and shall not be used for operating

expenses or for the refinancing or reduction of any debt or

obligation incurred prior to the effective date of this article.

(e)  Loans made by the department shall be paid from the fund

to municipalities in accordance with rules and regulations

promulgated by the department.

(f)  All payments of interest on loans and the principal

thereof shall be deposited by the department in the fund.

Section 2.  This act shall take effect in 60 days.