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SENATE AMENDED
A04500
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
785
Session of
2017
INTRODUCED BY SAYLOR, TURZAI AND MICCARELLI, MARCH 10, 2017
AMENDMENTS TO HOUSE AMENDMENTS, IN SENATE, OCTOBER 23, 2017
AN ACT
Amending the act of February 9, 1999 (P.L.1, No.1), entitled "An
act providing for borrowing for capital facilities;
conferring powers and duties on various administrative
agencies and officers; making appropriations; and making
repeals," in capital facilities, further providing for bonds,
issue of bonds and notes, maturity, interest and for
appropriation for and limitation on redevelopment assistance
capital projects; and providing for capital budgets.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 307(c) and 317 of the act of February 9,
1999 (P.L.1, No.1), known as the Capital Facilities Debt
Enabling Act, are amended to read:
Section 307. Bonds, issue of bonds and notes, maturity,
interest.
* * *
(c) Terms and conditions.--
(1) Except as set forth in subsection (a) or (b), the
terms and conditions of issue, redemption and maturity and
time of payment of interest shall be as the issuing officials
shall specify. Bonds of any series shall mature within a
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period not to exceed the estimated useful lives of the
capital projects as stated in the debt-authorizing act but
not later than 30 years from the date of issuance.
(2) The issuing officials shall provide for the
amortization of the bonds in substantial and regular amounts
over the term of the debt, but the first retirement of
principal shall be stated to mature prior to the expiration
of a period of time equal to one-tenth of the time from the
date of the first obligation issued to evidence the debt to
the date of the expiration of the term of the debt.
(3) [Retirements] (i) Except as provided in
subparagraph (ii), retirements of principal shall be
regular and substantial if made in annual or semiannual
amounts whether by stated serial maturities or by
mandatory sinking fund retirements computed in accordance
with [either a level annual debt service plan as nearly
as may be or upon] the equal annual maturities plan.
(ii) Retirements of principal for funding bonds
authorized under section 312 shall be regular and
substantial if made in annual or semiannual amounts
whether by stated serial maturities or by mandatory
sinking fund retirements computed in accordance with
either a level annual debt service plan as nearly as may
be or upon the equal annual maturities plan.
(4) If debt is incurred in one issue of bonds to provide
funds for and towards the financial cost of capital projects
having estimated useful lives of varying length, the
following shall apply:
(i) The aggregate of the financial costs shall be
considered as the debt to be incurred for the purpose of
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fixing the regular and substantial amounts of principal
to be retired.
(ii) The term of the debt shall be to the end of the
longest estimated useful life for the purpose of
determining the first date for the retirement of
principal. At the end of the estimated useful life of
each project, the aggregate principal retirements
required to be made at or before that date shall exceed:
(A) the aggregate financial cost of all capital
projects having the same or shorter estimated useful
lives; or
(B) if bonds are issued for less than the full
financial cost of all projects being financed in the
same category, a proportionate amount in each case.
SECTION 1. SECTION 307(C)(4.1) OF THE ACT OF FEBRUARY 9,
1999 (P.L.1, NO.1), KNOWN AS THE CAPITAL FACILITIES DEBT
ENABLING ACT, IS REPEALED:
SECTION 307. BONDS, ISSUE OF BONDS AND NOTES, MATURITY,
INTEREST.
* * *
(C) TERMS AND CONDITIONS.--
* * *
[(4.1) The issuing officials may enter into agreements
or contracts to insure or secure payment of principal,
interest or the purchase price of bonds which, in the
judgment of the issuing officials, will assist in managing
the interest costs of the debt of the Commonwealth.]
(5) The issuing officials are authorized to carry out
the provisions of this chapter relating to the issuance of
bonds and shall determine all matters in connection with the
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issuance of bonds subject to the provisions hereof.
* * *
* * *
SECTION 2. SECTION 317(B) OF THE ACT IS AMENDED TO READ:
Section 317. Appropriation for and limitation on [redevelopment
assistance] capital projects.
(a) Appropriation.--The amount necessary to pay principal of
and interest on all obligations issued to provide funds for
redevelopment assistance capital projects shall be appropriated
from the General Fund and shall be transferred to the Capital
Debt Fund upon authorization by the Governor.
* * *
(b) Limitation on redevelopment assistance capital projects
obligations.--The maximum amount of redevelopment assistance
capital projects undertaken by the Commonwealth for which
obligations are outstanding shall not exceed, in aggregate,
[$3,450,000,000.] $3,400,000,000 $3,350,000,000 . Beginning July
1, 2018, and each July 1 thereafter until the sum of the
outstanding obligations for redevelopment assistance capital
projects equals $3,200,000,000 $3,150,000,000 , the sum of the
maximum amount of outstanding obligations for redevelopment
assistance projects shall be decreased by $50,000,000.
(b.1) Limitation on additional capital project releases
financed by debt.--In each fiscal year, the following
limitations on releasing additional capital projects for funding
authorizations financed by debt shall apply:
(1) The maximum amount of additional public improvement
projects released for funding by the Commonwealth in a fiscal
year shall not exceed $350,000,000.
(2) The maximum amount of additional redevelopment
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assistance capital projects released for funding by the
Commonwealth in a fiscal year shall not exceed $125,000,000.
(b.2) Carry forward.--
(1) Subject to the limitations in paragraph (2), in a
fiscal year in which the projects released for funding under
subsection (b.1) is less than the amount authorized for
release under subsection (b.1), the remaining amount may be
carried forward and added to the following fiscal year
limitation for projects released for funding under subsection
(b.1).
(2) The amount carried forward under paragraph (1) may
not exceed half of the total amount authorized to be released
for funding in that project category for the previous fiscal
year.
(c) Housing units.--An amount not to exceed $50,000,000 of
the amount under subsection (b) may be used for the construction
of housing units.
* * *
Section 2 3. The act is amended by adding a chapter to read:
CHAPTER 6
CAPITAL BUDGETS
SUBCHAPTER A
SCOPE OF CHAPTER
Section 601. Scope of chapter.
This chapter applies to capital budgets for particular fiscal
years.
SUBCHAPTER B
CAPITAL BUDGET ACT OF 2017-2018
Section 611. Short title.
This subchapter shall be known and may be cited as the
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Capital Budget Act of 2017-2018.
Section 612. Overall limitations on debt to be incurred for
capital projects.
The maximum principal amount of additional debt to be
incurred during the 2017-2018 fiscal year and thereafter until
the enactment of the 2018-2019 capital budget specifying the
maximum debt for the 2018-2019 fiscal year for capital projects
specifically itemized in a capital budget pursuant to section
7(a)(4) of Article VIII of the Constitution of Pennsylvania and
the fund to be charged with the repayment of such debt shall,
with respect to each category of capital projects, be as
follows:
(1) Public Improvement
Projects:
(i) Buildings and
structures $680,000,000 General Fund or
special fund as
applicable
(2) Furniture and
equipment 10,000,000 General Fund or
special fund as
applicable
(3) Transportation
assistance projects 350,000,000 General Fund
(4) Redevelopment
assistance projects 175,000,000 General Fund
(5) Flood control
projects 10,000,000 General Fund
Total $1,225,000,000
Section 3. The addition of section 317(b.1) of the act shall
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apply retroactively to July 1, 2017.
Section 4. This act shall take effect immediately.
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