Amendment 3568 to Senate Bill 421 P.N. 1328, Regular Session 2019-2020

S0421B1328A03568 MSP:JSL 10/28/19 #90 A03568

AMENDMENTS TO SENATE BILL NO. 421

Sponsor: REPRESENTATIVE SAYLOR

Printer's No. 1328

Amend Bill, page 2, line 4, by inserting after "APPARATUSES"

and for census outreach

Amend Bill, page 2, line 21, by inserting after "PROCEDURES"

; providing for voting apparatus bonds

Amend Bill, page 18, line 21, by striking out "A SECTION" and

inserting

sections

Amend Bill, page 19, by inserting between lines 21 and 22

Section 208. Census Outreach.--The Department of State may

utilize up to four million dollars ($4,000,000) of funds not

expended, encumbered or committed from appropriations from the

General Fund for a fiscal year ending before July 1, 2020, for

an executive branch agency, which is subject to the policy,

supervision and control of the Governor, for communication,

administration and assistance within each county of the

Commonwealth for the purpose of ensuring a complete and accurate

census count of the Commonwealth in the 2020 Federal decennial

census. The funds shall be transferred by the Secretary of the

Budget to a restricted account as necessary to make payments

under this section and, when transferred, are hereby

appropriated to carry out the provisions of this section. The

Secretary of the Budget may make a transfer of funds if the

transfer will not result in a deficit in an appropriation from

which funds are transferred. The Secretary of the Budget shall

provide at least ten days prior notification of a transfer to

the chair and the minority chair of the Appropriations Committee

of the Senate and the chair and minority chair of the

Appropriations Committee of the House of Representatives.

Amend Bill, page 19, line 25, by striking out the comma after

"(B)(4)" and inserting

and

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Amend Bill, page 19, lines 26 and 27, by striking out ",

1210(A.4)(1) AND (5)(II), 1215(B) AND (C), 1216(D) AND (F),

1222, 1223(A) AND 1227(D)"

Amend Bill, page 51, line 14, by inserting a bracket before

"IF"

Amend Bill, page 51, line 30, by inserting a bracket after

"VOTE."

Amend Bill, page 52, by inserting between lines 25 and 26

Section 3.1. The act is amended by adding an article to

read:

ARTICLE XI-B

VOTING APPARATUS BONDS

Section 1101-B. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Account." The County Voting Apparatus Reimbursement Account

established under section 1106-B.

"Authority." The Pennsylvania Economic Development Financing

Authority.

"Bond." Any type of revenue obligation, including a bond or

series of bonds, note, certificate or other instrument, issued

by the authority for the benefit of the department under this

article.

"Bond administrative expenses." Expenses incurred to

administer bonds as provided under the Financing Law, or as

otherwise necessary to ensure compliance with applicable Federal

or State law.

"Bond obligations." The principal of a bond and any premium

and interest payable on a bond, together with any amount owed

under a related credit agreement or a related resolution of the

authority authorizing a bond.

"Credit agreement." A loan agreement, a revolving credit

agreement, an agreement establishing a line of credit, a letter

of credit or another agreement that enhances the marketability,

security or creditworthiness of a bond.

"Department." The Department of State of the Commonwealth.

"Election security equipment." Information technology such

as intrusion detection sensors and other infrastructure deployed

to enhance the security of voting apparatus and election systems

by detecting and reporting hacking attempts, and other election

security breaches.

"Electronic voting system." As defined in section 1101-A.

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"Financing Law." The act of August 23, 1967 (P.L.251,

No.102), known as the Economic Development Financing Law.

"Voting apparatus." A kind or type of electronic voting

system that received the approval of the Secretary of the

Commonwealth under section 1105-A.

Section 1102-B. Bond issuance.

(a) Declaration of policy.--The General Assembly finds and

declares that funding the replacement of voting apparatuses,

including interest, through the authority, is in the best

interest of this Commonwealth.

(b) Authority.--Notwithstanding any other law, the following

shall apply:

(1) The department may be a project applicant under the

Financing Law and may apply to the authority for the funding

of the replacement of voting apparatuses.

(2) The authority may issue bonds under the Financing

Law, consistent with this article, to finance projects to

fund the replacement of county voting apparatuses or to

reimburse counties for their cost to purchase or enter into

capital leases for voting apparatuses.

(3) Participation of an industrial and commercial

development authority shall not be required to finance the

replacement of voting apparatuses.

(1) Bonds issued under this article shall not be a debt

or liability of the Commonwealth and shall not create or

constitute any indebtedness, liability or obligation of the

Commonwealth.

(2) Bond obligations and bond administrative expenses

shall be payable solely from revenues or money pledged or

available for repayment as authorized under this article.

This paragraph shall include the proceeds of any issuance of

bonds.

(3) Each bond shall contain on its face a statement

that:

(i) the authority is obligated to pay the principal

or interest on the bonds only from the revenues or money

pledged or available for repayment as authorized under

this article;

(ii) neither the Commonwealth nor a county is

obligated to pay the principal or interest; and

(iii) the full faith and credit of the Commonwealth

or any county is not pledged to the payment of the

principal of or the interest on the bonds.

Section 1103-B. Criteria for bond issuance.

(a) Determination.--If the department decertifies one or

more voting apparatuses that are in use in any county of this

Commonwealth, the department shall apply to the authority to

issue bonds for reimbursements to each county for the cost of

procuring new voting apparatuses.

(a.1) Issuance.--Bonds may be issued in one or more series,

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and each series may finance reimbursement grants to one or more

counties.

(b) Terms.--

(1) The department, with the approval of the Office of

the Budget, shall specify in its application to the

authority:

(i) the maximum principal amount of the bonds for

each bond issue; and

(ii) the maximum term of the bonds consistent with

applicable law.

(2) The total principal amount for all bonds issued

under this article may not exceed $90,000,000.

(3) The term of the bonds issued under this article may

not exceed 10 years from the respective date of original

issuance.

authorization to issue bonds, not including refunding bonds,

shall expire December 31, 2020.

Section 1104-B. Issuance of bonds, security and sources of

payments.

(a) Issuance.--The authority shall consider issuance of

bonds upon application by the department. Bonds issued under

this article shall be subject to the provisions of the Financing

Law, unless otherwise specified under this article.

(b) Service agreement authorized.--The authority and the

department may enter into an agreement or service agreement to

effectuate this article, including an agreement to secure bonds

issued for the purposes under section 1102-B(b), pursuant to

which the department shall agree to pay the bond obligations and

bond administrative expenses to the authority in each fiscal

year that the bonds or refunding bonds are outstanding in

amounts sufficient to timely pay in full the bond obligations,

bond administrative expenses and any other financing costs due

on the bonds issued for the purposes under section 1102-B(b).

The department's payment of the bond obligations, bond

administrative expenses and other financing costs due on the

bonds as service charges under an agreement or service agreement

shall be subject to and dependent upon the appropriation of

funds by the General Assembly to the department for payment of

the service charges. The service agreement may be amended or

supplemented by the authority and the department in connection

with the issuance of any series of bonds or refunding bonds

authorized under this section.

expenses may be secured, for the benefit of the holders of the

bonds and the obligees under credit agreements or the agreements

under subsection (b), by pledge of a security interest in and

first lien on the following:

(1) Money relating to the bonds held on deposit in any

other fund or account under an instrument or agreement

pertaining to the bonds, including bond reserves and interest

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income on the money.

(2) The security provided under this subsection shall

not apply to money in any fund relating to arbitrage rebate

obligations.

Section 1105-B. Sale of bonds.

The authority shall offer the bonds for sale by means of a

public, competitive sale or by means of a negotiated sale based

on the authority's determination of which method will produce

the most benefit to counties and the Commonwealth.

Section 1106-B. Deposit of bond proceeds.

The net proceeds of bonds, other than refunding bonds,

exclusive of costs of issuance, reserves and any other financing

charges, shall be transferred by the authority to the State

Treasurer for deposit into a restricted account established in

the State Treasury and held solely for the purposes under

section 1102-B(b) to be known as the County Voting Apparatus

Reimbursement Account. The department shall pay out the bond

proceeds to the counties from the account in accordance with

this article.

Section 1107-B. Payment of bond-related obligations.

For each fiscal year in which bond obligations and bond

administrative expenses will be due, the authority shall notify

the department of the amount of bond obligations and the

estimated amount of bond administrative expenses in sufficient

time, as determined by the department, to permit the department

to request an appropriation sufficient to pay bond obligations

and bond administrative expenses that will be due and payable in

the following fiscal year. The authority's calculation of the

amount of bond obligations and bond administrative expenses that

will be due shall be subject to verification by the department.

Section 1108-B. Commonwealth not to impair bond-related

obligations.

The Commonwealth pledges that it shall not do any of the

following:

(1) Limit or alter the rights and responsibilities of

the authority or the department under this article, including

the responsibility to:

(i) pay bond obligations and bond administrative

expenses; and

(ii) comply with any other instrument or agreement

pertaining to bonds.

(2) Alter or limit the service agreement under section

1104-B(b).

(3) Impair the rights and remedies of the holders of

bonds, until each bond issued at any time and the interest on

the bond, are fully met and discharged.

Section 1109-B. (Reserved).

Section 1110-B. Personal liability.

The members, directors, officers and employees of the

department and the authority shall not be personally liable as a

result of good faith exercise of the rights and responsibilities

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granted under this article.

Section 1111-B. Annual report.

No later than March 1 of the year following the first full

year in which bonds have been issued under this article and for

each year thereafter in which bond obligations existed in the

prior year, the department shall submit an annual report to the

the chair and minority chair of the Appropriations Committee of

the Senate, the chair and minority chair of the Appropriations

Committee of the House of Representatives, the chair and

minority chair of the State Government Committee of the Senate

and the chair and minority chair of the State Government

Committee of the House of Representatives providing all data

available on bonds issued or existing in the prior year. The

report shall include existing and anticipated bond principal,

interest and administrative costs, revenue, repayments,

refinancing, overall benefits to counties and any other relevant

data, facts and statistics that the department believes

necessary in the content of the report.

Section 1112-B. Reimbursement of county voting apparatus

expenses.

(a) Application.--A county may apply to the department to

receive funding to replace the county's voting apparatuses or to

reimburse the county's cost to purchase or lease by capital

lease voting apparatuses. Each county shall submit an

application for funding on a form containing information and

documentation prescribed by the department no later than July 1,

2020.

(b) Documentation for prior purchase or lease.--If a county

seeks reimbursement of the county's cost to purchase or lease by

capital lease a voting apparatus that the county purchased or

leased before the date that the county submits its application

to the department, the county's application shall include

documentation prescribed by the department to substantiate the

county's cost to purchase or lease the voting apparatus,

including copies of fully executed voting apparatus contracts,

invoices and proof of payment to the vendor of the voting

apparatus.

county seeks funding to purchase or lease by capital lease a

voting apparatus that the county will purchase or lease after

the date that the county submits its application to the

department, the county's application shall include documentation

prescribed by the department to substantiate the county's

estimate to purchase or lease the voting apparatus, including

copies of fully executed voting apparatus contracts, bids or

price quotes submitted to the county by voting apparatus vendors

and other price estimates or cost proposals.

(d) Review.--The department shall review each county

application on a rolling basis and shall either approve or deny

each county's application within 90 days of the date the

application is received by the department. A county may

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supplement or amend submitted applications during the 90-day

review period in consultation with the department.

(e) Approval for prior purchase or lease.--If the department

approves a county's application submitted under subsection (b),

the department and the county shall enter into a written grant

agreement through which the department shall reimburse the

county at the amount determined under subsection (g).

(f) Approval for subsequent purchase or lease.--If the

department approves a county's application under subsection (c),

the department and the county shall enter into a written grant

agreement through which the department will provide funding to

reimburse the county's cost to purchase or lease a voting

apparatus at the amount determined under subsection (g). The

county shall hold the grant money in an account of the county

that is separate from each other county account. The county

shall deliver quarterly reports to the department of the voting

apparatus costs paid from the grant money in a form prescribed

by the department. The county shall return any unspent grant

money to the department within 30 days of the expiration of the

grant agreement.

(g) Payments.--

(1) A county shall only receive amounts under this

section to the extent that the department has bond proceeds

available in the account from which to make payments.

(2) Except as provided under paragraph (3), a county

which submitted an application approved under subsection (e)

or (f) shall receive 60% of the total amount submitted under

subsection (b) or (c) which may be reimbursed or paid.

(3) If the total amount submitted by all counties under

paragraph (2) exceeds the total amount available for

reimbursement or payment, a county shall receive a portion of

the amount available equal to the total amount submitted by

the county under subsection (b) or (c) which may be

reimbursed or paid, divided by the total amount submitted by

all counties under subsection (b) or (c) which may be

reimbursed or paid.

(4) If any bond proceeds remain after the department has

issued all reimbursements in accordance with paragraphs (1),

(2) and (3), the department may utilize the remaining balance

for grants for counties for the purchase and distribution to

the counties of election security equipment. The department

shall provide notice to each county no later than 30 days

prior to receiving applications for grants under this

paragraph.

(h) Certification.--A county shall only receive the

reimbursement or funding under this article after making a

certification to the department, the President pro tempore of

the Senate, the Speaker of the House of Representatives, the

Minority Leader of the Senate, the Minority Leader of the House

of Representatives, the chair and minority chair of the

Appropriations Committee of the Senate, the chair and minority

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chair of the Appropriations Committee of the House of

Representatives, the chair and minority chair of the State

Government Committee of the Senate and the chair and minority

chair of the State Government Committee of the House of

Representatives that the county has completed a program under 25

Pa.C.S. § 1901(b)(1) (relating to removal of electors) and

mailed notices required under 25 Pa.C.S. § 1901(b)(3) within the

prior 12 months. The certification shall include information on

whether the county has undertaken a canvass under 25 Pa.C.S. §

1901(b)(2).

(i) Department application.--The department shall apply to

the authority for funding under section 1102-B only if the

department has approved county applications under this article

which total at least $50,000,000.

Section 3.2. Sections 1210(a.4)(1) and (5)(ii), 1215(b) and

(c), 1216(d) and (f), 1222, 1223(a) and 1227(d) of the act are

amended to read:

Amend Bill, page 84, line 8, by inserting after "BALLOT.""

This envelope shall then be placed in the second one, on

which is printed the form of declaration of the elector, and the

address of the elector's county board of election and the local

election district of the elector. The elector shall then fill

out, date and sign the declaration printed on such envelope.

Such envelope shall then be securely sealed and the elector

shall send same by mail, postage prepaid, except where franked,

or deliver it in person to said county board of election.

Amend Bill, page 92, line 23, by inserting after "ELECTOR"

or mail-in elector

Amend Bill, page 92, line 24, by inserting a bracket before

"(II)"

Amend Bill, page 92, line 30, by inserting a bracket after

"OR" where it occurs the second time

Amend Bill, page 94, line 12, by inserting a bracket before

"(1)"

Amend Bill, page 94, line 14, by striking out "OR MAIL-IN

BALLOTS"

Amend Bill, page 94, line 16, by striking out "AND MAIL-IN

BALLOTS"

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Amend Bill, page 94, lines 17 and 18, by striking out "AND

MAIL-IN BALLOTS"

Amend Bill, page 94, line 19, by striking out "OR THE MAIL-IN

VOTER'S RESPECTIVE ELECTION DISTRICT"

Amend Bill, page 94, line 22, by striking out "OR MAIL-IN

BALLOTS'"

Amend Bill, page 94, line 24, by striking out "OR MAIL-IN

BALLOT"

Amend Bill, page 94, line 26, by inserting a bracket after

"APPLICABLE."

Amend Bill, page 94, line 28, by inserting a bracket before

"AFTER"

Amend Bill, page 94, line 28, by striking out "AND MAIL-IN

BALLOTS"

Amend Bill, page 94, line 29, by inserting a bracket after

"BUT"

Amend Bill, page 95, line 3, by inserting a bracket before

the comma after "(G)(2)"

Amend Bill, page 95, line 5, by striking out "OR MAIL-IN

BALLOT"

Amend Bill, page 95, line 6, by inserting a bracket after

"VOID"

Amend Bill, page 96, lines 3 and 4, by striking out all of

said lines

Amend Bill, page 104, line 30, by striking out "ON" and

inserting

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as soon as a ballot is certified and the ballots are

available. While any proceeding is pending in a Federal or State

court which would affect the contents of any ballot, the county

board of elections may await a resolution of that proceeding but

in any event, shall commence to deliver or mail official

absentee ballots not later than

Amend Bill, page 105, line 16, by inserting after "BALLOT.""

This envelope shall then be placed in the second one, on

which is printed the form of declaration of the elector, and the

address of the elector's county board of election and the local

election district of the elector. The elector shall then fill

out, date and sign the declaration printed on such envelope.

Such envelope shall then be securely sealed and the elector

shall send same by mail, postage prepaid, except where franked,

or deliver it in person to said county board of election.

Amend Bill, page 107, lines 10 and 11, by striking out all of

said lines

Amend Bill, page 111, line 23, by inserting after "3, "

3.2,

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