1Amending the act of February 9, 1999 (P.L.1, No.1), entitled "An
2act providing for borrowing for capital facilities;
3conferring powers and duties on various administrative
4agencies and officers; making appropriations; and making
5repeals," in capital facilities<-,: further providing for
6definitions<-, and for legislative procedures,; providing for 
7procedures for capital budget and for capital project 
8itemization bill; and further providing for reports related
9to redevelopment assistance capital projects and for
10appropriations and limitations on projects; providing for
11review of proposals; and further providing for funding and
12administration of projects.

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

15Section 1. The definitions of "capital project" and
16"redevelopment assistance capital project" in section 302 of the
17act of February 9, 1999 (P.L.1, No.1), known as the Capital
18Facilities Debt Enabling Act, amended July 4, 2004 (P.L.516,
19No.67) and December 22, 2005 (P.L.454, No.87), are amended and
20the section is amended by adding definitions to read:

21Section 302. Definitions.

1The following words and phrases when used in this chapter
2shall have the meanings given to them in this section unless the
3context clearly indicates otherwise:

4* * *

5"Applicant." A person that is seeking funding for a
6redevelopment assistance capital project that has been listed in
7a capital project itemization bill and that is one of the
8following:

9(1) A redevelopment authority.

10(2) An industrial development authority.

11(3) A general purpose unit of local government.

12(4) A local development district that has an agreement
13with a general purpose unit of local government under which
14the unit assumes ultimate responsibility for debt incurred to
15obtain the non-State financial participation.

16(5) A public authority established pursuant to the laws
17of this Commonwealth.

18(6) An industrial development agency:

19(i) which has been certified as an industrial
20development agency by the Pennsylvania Industrial
21Development Authority Board under the act of May 17, 1956
22(1955 P.L.1609, No.537), known as the Pennsylvania
23Industrial Development Authority Act; and

24(ii) which is itself or which is acting through a
25wholly owned subsidiary that is exempt from Federal
26taxation under section 501(c)(3) of the Internal Revenue
27Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)).

28"Capital project." A flood control, highway, public 
29improvement, redevelopment assistance capital or transportation 
30assistance project which is financed by debt or by other funds

1and which meets all of the following:

2(1) Is an undertaking to construct, repair, renovate,
3improve, equip, furnish or acquire any:

4(i) building, structure, facility, infrastructure or
5physical public betterment or improvement;

6(ii) land or rights in land; or

7(iii) furnishings, machinery, apparatus or equipment
8for a building, structure, facility or physical public
9betterment or improvement.

10(2) Is [designated<-] itemized in a [capital budget]
11capital project itemization bill as a capital project.

12(3) Has an estimated useful life in excess of five
13years.

14(4) Has an estimated financial cost in excess of
15$100,000. This paragraph does not apply to original equipment
16or furnishings for previously authorized public improvement
17projects.

18[Capital projects are categorized as flood control projects,
19highway projects, public improvement projects, redevelopment
20assistance capital projects and transportation assistance
21projects.]

22* * *

<-23"Community asset project." A project which provides
24significant benefit or improvement to a community. The term
25includes a cultural, recreational and historical project and any
26other project of civic significance.

27* * *

28"Office." The Governor's Office of the Budget.

29* * *

30"Redevelopment assistance capital project." The design and

1construction of [facilities] a project which [meet] meets all of
2the following:

3(1) [Are facilities, other than] Is a project, including 
4infrastructure associated with the project. A project does 
5not include highways, bridges, waste disposal facilities,
6sewage facilities or water facilities. This paragraph
7includes:

8(i) [Water] Storm water, water or sewer
9infrastructure, or tunnels, bridges or roads, when
10[included as part of a business or industrial park
11facility] associated with a project that is part of an 
12economic development project.

13(ii) Hospital facilities and capital improvements
14for hospital facilities.

15(2) [Are economic development projects which] Is a
16project which will generate substantial increases in or 
17maintain current levels of employment, tax revenues or other
18measures of economic activity. This paragraph includes
19[projects with cultural, historical or civic significance.<-] 
<-20and housing projects that will support and generate economic 
21activity<-:

22(i) a community asset project; and

23(ii) a housing project that will support and 
24generate economic activity.

25(3) [Are facilities which have] Is a project that has a
26regional or multijurisdictional impact or, in the case of 
27housing, is part of a community revitalization plan.

28(4) [Are] Is eligible for tax-exempt bond funding under
29existing Federal law and regulations.

30(5) [Have a] Has at least a 50% non-State financial

1participation documented at the time of application,
2including a portion of any funds reserved for future physical
3maintenance and operation of the [facilities] project:

4(i) at least half of which is secured funding;

5(ii) toward which the only noncash non-State
6financial participation permitted is land or fixed assets
7which have a substantial useful life and are directly
8related to the project;

9(iii) toward which State funds from other programs
10may not be used; and

11(iv) toward which funds from Federal sources may be
12used.

13(6) [Have] Has a total project cost of at least
14$1,000,000.

15(7) [Applicants shall be one of the following:

16(i) A redevelopment authority.

17(ii) An industrial development authority.

18(iii) A general purpose unit of local government.

19(iv) A local development district which has an
20agreement with a general purpose unit of local government
21under which the unit assumes ultimate responsibility for
22debt incurred to obtain the 50% non-State participation
23required by paragraph (5).

24(v) Any public authority established pursuant to the
25laws of this Commonwealth.

26(vi) An industrial development agency which has been
27certified as an industrial development agency by the
28Pennsylvania Industrial Development Authority Board
29pursuant to the act of May 17, 1956 (1955 P.L.1609,
30No.537), known as the Pennsylvania Industrial Development

1Authority Act, and which is itself or which is acting
2through a wholly owned subsidiary which is exempt from
3Federal taxation under section 501(c)(3) of the Internal
4Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et
5seq.).

6The term also includes a fire truck and firefighting equipment
7to the extent that the request for assistance does not exceed
8$50,000.] (Reserved).

9* * *

10"Secretary." The Secretary of the Budget.

11* * *

<-12Section 2. Sections 303 and 313.1 of the act, amended or
13added December 22, 2005 (P.L.454, No.87), are amended to read:

14Section 303. Procedures for capital [budget] project
15itemization bill and debt-authorizing legislation.

16(a) Legislative process.--A capital budget prepared in
17accordance with this chapter shall be submitted for each fiscal
18year by the Governor to the General Assembly and shall be
19considered in the form of a bill as provided in Article III of
20the Constitution of Pennsylvania.

21(b) Itemization bill.--

22[(1) Except as set forth in paragraph (2), the capital
23budget bill must specifically itemize, by brief identifying
24description and estimated financial cost, the capital
25projects to be financed from the proceeds of obligations of
26the Commonwealth.

27(2) Paragraph (1) does not apply if the itemization is:

28(i) contained in or approved by prior legislation
29referred to in the capital budget bill; or

30(ii) included in one or more supplemental capital

1budget bills.

2(3) Projects must be listed in separate categories as
3well as according to the fund to be charged with the
4repayment of the obligations to be incurred.

5(4) The capital budget bill must state the maximum
6amount of such obligations which may be incurred in the
7ensuing fiscal year to provide funds for and towards the
8financial costs of each category of capital projects, which
9shall be by the issue of general obligations of the
10Commonwealth.]

11No redevelopment assistance capital project may receive funds
12unless the project was itemized in a capital budget project
13itemization bill, a capital budget bill or a capital project
14itemization bill enacted within ten years of the date the
15project is approved under section 318 or the project has been
16approved by the secretary on or before December 31, 2012. Each
17capital project must be listed under its category and include
18all of the following:

19(1) A specific description of the capital project,
20including the municipality in which the capital project is
21located.

22(2) Estimated financial cost of the capital project.

23(3) The fund to be charged with the repayment of the
24obligation to be incurred.

25[(c) Timing.--Each year the Governor shall submit a capital
26budget bill for the ensuing fiscal year.]

27(d) [Additional bills] Debt authorization bill.--At the time
28the Governor submits the [capital budget or a supplement]
29General Appropriation Bill for a fiscal year, the Governor
30shall, to the extent the debt to be incurred is not within the

1limits of legislation then in force authorizing the incurring of
2debt, submit [additional bills for each category of capital
3projects,] a capital budget bill authorizing the [incurring of
4debt] maximum amount of general obligation debt to be incurred
5in the ensuing fiscal year to provide funds for and towards the
6payment of the financial costs of capital projects in [such]
7each category of capital projects which have been specifically
8itemized in a [capital budget for the same or any prior year]
9capital project itemization bill.

10(e) Categories.--Each [debt-authorizing bill] capital budget
11bill must do all of the following:

12(1) State the category of capital projects to be
13financed by the debt so authorized but need not enumerate the
14capital projects to be financed.

15(2) Authorize the incurring of debt in not less than the
16amount of the financial cost of all capital projects in such
17category not covered by a previous debt authorization,
18including any overall allowance for contingencies.

19(3) State the estimated useful lives of the capital
20projects to be financed in such detail as may be requisite if
21capital projects of varying useful lives are to be combined
22for financing purposes.

23(4) State the maximum term of the debt to be incurred.

<-24Section 2. Section 303 of the act, amended December 22, 2005
25(P.L.454, No.87), is repealed:

26[Section 303. Procedures for capital budget bill and debt-
27authorizing legislation.

28(a) Legislative process.--A capital budget prepared in
29accordance with this chapter shall be submitted for each fiscal
30year by the Governor to the General Assembly and shall be

1considered in the form of a bill as provided in Article III of
2the Constitution of Pennsylvania.

3(b) Itemization.--

4(1) Except as set forth in paragraph (2), the capital
5budget bill must specifically itemize, by brief identifying
6description and estimated financial cost, the capital
7projects to be financed from the proceeds of obligations of
8the Commonwealth.

9(2) Paragraph (1) does not apply if the itemization is:

10(i) contained in or approved by prior legislation
11referred to in the capital budget bill; or

12(ii) included in one or more supplemental capital
13budget bills.

14(3) Projects must be listed in separate categories as
15well as according to the fund to be charged with the
16repayment of the obligations to be incurred.

17(4) The capital budget bill must state the maximum
18amount of such obligations which may be incurred in the
19ensuing fiscal year to provide funds for and towards the
20financial costs of each category of capital projects, which
21shall be by the issue of general obligations of the
22Commonwealth.

23(c) Timing.--Each year the Governor shall submit a capital
24budget bill for the ensuing fiscal year.

25(d) Additional bills.--At the time the Governor submits the
26capital budget or a supplement, the Governor shall, to the
27extent the debt to be incurred is not within the limits of
28legislation then in force authorizing the incurring of debt,
29submit additional bills for each category of capital projects,
30authorizing the incurring of debt to provide funds for and

1towards the payment of the financial costs of capital projects
2in such category which have been specifically itemized in a
3capital budget for the same or any prior year.

4(e) Categories.--Each debt-authorizing bill must do all of
5the following:

6(1) State the category of capital projects to be
7financed by the debt so authorized but need not enumerate the
8capital projects to be financed.

9(2) Authorize the incurring of debt in not less than the
10amount of the financial cost of all capital projects in such
11category not covered by a previous debt authorization,
12including any overall allowance for contingencies.

13(3) State the estimated useful lives of the capital
14projects to be financed in such detail as may be requisite if
15capital projects of varying useful lives are to be combined
16for financing purposes.

17(4) State the maximum term of the debt to be incurred.]

18Section 2.1. The act is amended by adding sections to read:

19Section 303.1. Procedures for capital budget.

20(a) Legislative process.--

21(1) A capital budget prepared in accordance with this
22chapter shall be submitted for each fiscal year by the
23Governor to the General Assembly and shall be considered in
24the form of a bill as provided in Article III of the
25Constitution of Pennsylvania.

26(2) A capital budget bill under paragraph (1) must state
27the maximum amount of the obligations which may be incurred
28in the ensuing fiscal year to provide funds for and towards
29the financial costs of each category of capital projects,
30which shall be by the issue of general obligations of the

1Commonwealth.

2(b) Categories.--Each capital budget bill must do all of the
3following:

4(1) State the category of capital projects to be
5financed by the authorized debt. A capital budget bill shall
6not have to enumerate the capital projects to be financed.

7(2) Authorize the incurring of debt in not less than the
8amount of the financial cost of all capital projects in the
9category not covered by a previous debt authorization,
10including any overall allowance for contingencies.

11(3) State the estimated useful lives of the capital
12projects to be financed in the detail as may be requisite if
13capital projects of varying useful lives are to be combined
14for financing purposes.

15(4) State the maximum term of the debt to be incurred.

16Section 303.2. Capital project itemization bill.

17(a) Requirement.--

18(1) Except as set forth in paragraph (2), the capital
19project itemization bill must specifically itemize the
20capital projects to be financed from the proceeds of
21obligations of the Commonwealth. Capital project itemization
22must include all of the following:

23(i) A description of the capital project, including
24the municipality or county in which the capital project
25is located.

26(ii) The estimated financial cost of the capital
27project.

28(2) Paragraph (1) shall not apply if the itemization is:

29(i) contained in or approved by prior legislation
30referred to in the capital budget bill or capital project

1itemization bill; or

2(ii) included in one or more supplemental capital
3budget bills or capital project itemization bills.

4(3) Capital projects must be listed in separate
5categories as well as according to the fund to be charged
6with the repayment of the obligations to be incurred.

7(b) (Reserved).

8Section 2.2. Section 313.1 of the act, amended December 22,
92005 (P.L.454, No.87), is amended to read:

10Section 313.1. Reports related to redevelopment assistance
11capital projects.

12The Secretary of the Budget shall, within ten days of the
13expiration of each quarter of each fiscal year, provide to the
14chairman and minority chairman of the Appropriations Committee
15of the Senate and the chairman and minority chairman of the
16Appropriations Committee of the House of Representatives a
17report relating to redevelopment assistance capital projects
18which addresses at least all of the following materials:

19(1) An itemized list of the redevelopment assistance
20capital projects approved [for release and construction] in
21the preceding quarter.

22(2) An estimate of the amount of funds remaining under
23the cap provided in section 317(b).

24(3) An estimate of the total amount of outstanding debt
25related to redevelopment assistance capital projects.

26(4) An estimate of the amount of outstanding debt
27related to redevelopment assistance capital projects which
28will be paid [or refinanced] in the succeeding four quarters.

29Section 3. Section 317 of the act, amended July 7, 2010
30(P.L.335, No.48), is amended to read:

1Section 317. Appropriation for and limitation on redevelopment
2assistance capital projects.

3(a) Appropriation.--The amount necessary to pay principal of
4and interest on all obligations issued to provide funds for
5redevelopment assistance capital projects shall be appropriated
6from the General Fund and shall be transferred to the Capital
7Debt Fund upon authorization by the Governor.

8(b) Limitation.--The maximum amount of redevelopment
9assistance capital projects undertaken by the Commonwealth for
10which obligations are outstanding shall not exceed, in
11aggregate, [$4,050,000,000.] $3,450,000,000.

12(c) Housing units.--An amount not to exceed [$25,000,000] 
13$50,000,000 of the amount under subsection (b) may be used for
14the construction of housing units.

15Section 4. Section 318 of the act, amended July 4, 2004
16(P.L.516, No.67), is amended to read:

17Section 318. [Funding and administration] Administration of
18redevelopment assistance capital projects.

19(a) [Officers.--The Secretary of the Budget shall review and
20shall approve or disapprove applications for redevelopment
21assistance capital projects.] <-(Reserved). Limitation.--A 
22redevelopment assistance capital project may not receive funds 
23unless the project was itemized in a capital project 
24itemization bill or a capital budget bill, enacted within ten 
25years of the date the project was approved under this section.

26(a.1) Application.--An applicant shall submit an application
27to the office consistent with the timeline established by the
28office requesting a grant for a redevelopment assistance capital
29project. The proposal must be on the form required by the office
30and must include or demonstrate all of the following:

1(1) The applicant's name and address.

2(2) The location of the project.

3(3) An estimate of the cost of the project, prepared by
<-4an engineer or other a qualified professional.

5(4) A statement of the amount of the project grant
6sought, including a statement as to the financial necessity
7for the project grant.

8(5) Any other information required by the office.

9(a.2) Review and approval.--The office shall review the
10application to determine if all the requirements have been met.
11Upon being satisfied that all requirements have been met and
12after allowing for a 30-day public comment period, the secretary
13may approve the application, and, if approved, the office shall
14notify:

15(1) The applicant.

16(2) The President pro tempore of the Senate.

17(3) The Majority Leader of the Senate.

18(4) The Minority Leader of the Senate.

19(5) The chairman and minority chairman of the
20Appropriations Committee of the Senate.

21(6) The Speaker of the House of Representatives.

22(7) The Majority Leader of the House of Representatives.

23(8) The Minority Leader of the House of Representatives.

24(9) The chairman and minority chairman of the
25Appropriations Committee of the House of Representatives.

26(10) The State Senator and the State Representative of
27the district where the redevelopment assistance capital
28project is located.

29(a.3) Acceptance and grant agreement.--Within 30 days of
30receiving notification of approval under subsection (a.2), an

1applicant shall notify the office if the applicant accepts the
2grant. If the applicant notifies the office that it intends to
3accept the grant, the office shall forward to the applicant a
4grant agreement to be executed by the applicant. The grant
5agreement and any attachments thereto shall include the
6following:

7(1) The name and address of who will administer the
8grant.

9(2) A statement and proof of local funding.

10(3) An itemized statement of cost associated with the
11project.

12(4) A contract obligating the applicant to use the grant
13for the project.

14(5) A request for any other information the office may
15require.

16(a.4) Execution.--The applicant shall return the information
17requested and the executed contract within the timelines
18established by the office. If the applicant fails to return the
19executed contract within the timelines established by the office
<-20or 180 days of notification under subsection (a.2), whichever is
21less, no contract may be executed by the office for the grant.

22(b) Time period.--State funding for approved redevelopment
23assistance capital projects shall be paid over not less than a
2436-month period unless the [Secretary of the Budget] secretary
25authorizes a shorter period.

26(c) Costs.--Land acquisition is a permissible State-funded
27expenditure if the acquisition cost is supported by an appraisal
28done by a certified appraiser.

29(e) Verification.--Redevelopment assistance capital project
30cost estimates must be verified by the [Office of the Budget]

1office or its designated agent before final approval is given to
2a project application. Cost estimates include total project
3cost, projected use for State and non-State funds and a year-by-
4year schedule of costs for the entire project construction
5phase.

6(f) Bids.--Notwithstanding any other provision of law, the
7solicitation of a minimum of three written bids for all
8contracted construction work on redevelopment assistance capital 
9projects shall be the sole requirement for the composition,
10solicitation, opening and award of bids on such projects.
11Notwithstanding the foregoing, the construction work shall be
12performed subject to the act of March 3, 1978 (P.L.6, No.3),
13known as the Steel Products Procurement Act.

14(g) Review and audit.--Redevelopment assistance capital 
15projects shall be reviewed at regular intervals by the [Office
16of the Budget] office or its designated agent during the funding
17phase to ensure financial and program compliance. A final
18closeout audit shall be performed by the [Office of the Budget]
19office or its designated agent for all projects.

20(h) Fee.--To pay for administrative expenses related to
21redevelopment assistance capital projects funded by Commonwealth
22general obligation bonds, the [Office of the Budget] office may
23charge a fee against proceeds from bonds and notes which were
24sold to finance construction or acquisition costs of projects.

25(i) Grant administration.--In the event any applicant does
26not administer the grant, the applicant shall enter into a
27cooperation agreement with the entity administering the grant,
28which agreement shall be subject to the approval of the [Office
29of the Budget] office.

30(j) Guidelines.--Within 60 days of the effective date of

1this subsection, the office shall establish guidelines
2concerning the administration of and approval process for
3redevelopment assistance capital projects. The guidelines shall,
4at a minimum, establish application timelines, application
5content and the review, evaluation and award criteria and
6process. <-The criteria shall reflect population and geographic 
7distinctions of various communities throughout this 
8Commonwealth. The guidelines must be posted on the Internet
9website of the office.

10(k) Disclosure.--Upon a redevelopment assistance capital
11project being approved, the office shall post on its Internet
12website the date of approval of the project, the name of the
13applicant, a short description of the project, the location of
14the project, including the municipality in which it is located,
15and the amount of the project grant approved for the project.

<-16Section 5. The amendment of the definition of "redevelopment
17assistance capital project" in section 302 of the act shall
18apply to capital projects that have not been approved by the
19Secretary of the Budget on or before December 31, 2012.

20Section <-6 5. This act shall take effect immediately.