PRINTER'S NO. 3123
No. 2310 Session of 1990
INTRODUCED BY MICHLOVIC, EVANS, FOX, CHADWICK, STUBAN, JACKSON,
TRICH, PRESSMANN, COWELL, MELIO, D. W. SNYDER, ANGSTADT,
CARLSON, HOWLETT, SERAFINI, CIVERA, TRELLO, FREEMAN, JAROLIN,
PISTELLA, PRESTON, KASUNIC, GRUPPO, NAHILL, REBER, COY,
TIGUE, TANGRETTI, WOGAN, LINTON, R. C. WRIGHT, MAINE,
HALUSKA, FARGO, BROUJOS, MERRY, McCALL, VEON, McHALE, DAVIES,
VAN HORNE, RYBAK, TELEK, KUKOVICH, BELARDI, BILLOW, PESCI,
RAYMOND, DIETTERICK, HAYDEN, JOSEPHS, MAIALE, HUGHES,
LEVDANSKY AND LAUGHLIN, MARCH 12, 1990
REFERRED TO COMMITTEE ON APPROPRIATIONS, MARCH 12, 1990
AN ACT
1 Authorizing the incurring of indebtedness, with the approval of
2 the electors, of $400,000,000 for the repair, construction,
3 reconstruction, rehabilitation and improvement of county
4 prisons; and making an appropriation.
5 TABLE OF CONTENTS
6 Section 1. Definitions.
7 Section 2. Referendum to authorize incurring indebtedness.
8 Section 3. Authority to borrow.
9 Section 4. Bonds, issue, maturity, interest, etc.
10 Section 5. Sale of bonds.
11 Section 6. Refunding bonds.
12 Section 7. Registration of bonds.
13 Section 8. Disposition and use of proceeds.
14 Section 9. Local Criminal Justice Sinking Fund.
15 Section 10. Expenses of preparation, issue and sale of bonds.
1 Section 11. Temporary financing authorization.
2 Section 12. Quorum.
3 Section 13. Information to General Assembly.
4 Section 14. Grants to counties.
5 Section 15. Appropriation.
6 Section 16. Effective date.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Construction." The term includes the preparation of
14 drawings and specifications for facilities; erecting, building,
15 altering, remodeling, improving or extending such facilities;
16 and the inspection and supervision of the construction of such
17 facilities. The term does not include any interest in land.
18 "County." Any county of this Commonwealth.
19 "Department." The Department of Corrections of the
20 Commonwealth.
21 "Facility." The term includes any building and related
22 facility, initial equipment, machinery and utilities necessary
23 or appropriate for the criminal justice purpose for which the
24 particular facility was constructed.
25 "Local correctional facility." Any jail, prison or detention
26 facility operated by a county or jointly by more than one county
27 and used for the confinement of persons for safe custody. The
28 term does not include any facility used for the detention or
29 confinement of juveniles.
30 Section 2. Referendum to authorize incurring indebtedness.
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1 (a) Submission of question to electors.--The question of
2 incurring indebtedness of $400,000,000 for the repair,
3 construction, reconstruction or rehabilitation of county prisons
4 shall be submitted to the electors at the next primary,
5 municipal or general election following enactment of this act.
6 (b) Certification to county boards of elections.--The
7 Secretary of the Commonwealth shall immediately certify the
8 question under subsection (a) to the county boards of elections.
9 (c) Form of question.--The question shall be in
10 substantially the following form:
11 Do you favor the incurring of indebtedness by the
12 Commonwealth of $400,000,000 to repair, construct,
13 reconstruct and rehabilitate county prisons?
14 (d) Conduct of election.--The election shall be conducted in
15 accordance with the act of June 3, 1937 (P.L.1333, No.320),
16 known as the Pennsylvania Election Code, except that the time
17 limits for advertisement of notice of the election may be waived
18 as to the question.
19 Section 3. Authority to borrow.
20 In the event that the question of incurring indebtedness, as
21 described in section 2, is approved by a majority of those
22 voting on the question in accordance with section 7(a)(3) of
23 Article VIII of the Constitution of Pennsylvania, the Governor,
24 Auditor General and State Treasurer are hereby authorized and
25 directed to borrow, on the credit of the Commonwealth, such sum
26 or sums of money not exceeding in the aggregate the sum of
27 $400,000,000, as may be necessary to carry out the purposes of
28 this act.
29 Section 4. Bonds, issue, maturity, interest, etc.
30 (a) Issuance.--As evidence of the indebtedness herein
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1 authorized, general obligation bonds of the Commonwealth shall
2 be issued, from time to time for such total amounts, in such
3 forms, in such denominations and subject to such terms and
4 conditions of issue, redemption and maturity, rate or rates of
5 interest and time of payment of interest as the Governor,
6 Auditor General and State Treasurer shall direct, except that
7 the latest stated maturity date shall not exceed 30 years from
8 the date of the bond first issued for each such series.
9 (b) Signatures and seal.--All bonds issued under the
10 authority of this act shall bear facsimile signatures of the
11 Governor, the Auditor General and the State Treasurer, and a
12 facsimile of the Great Seal of the Commonwealth, and shall be
13 countersigned by two duly authorized officers of the duly
14 authorized loan and transfer agents of the Commonwealth.
15 (c) Full faith and credit.--All bonds issued in accordance
16 with the provisions of this act shall be direct obligations of
17 the Commonwealth and the full faith and credit of the
18 Commonwealth are hereby pledged the payment of the interest
19 thereon as the same shall become due and for the payment of the
20 principal thereof at maturity. All bonds issued under the
21 provisions of this act shall be exempt from taxation for State
22 and local purposes. The principal of and interest on such bonds
23 shall be payable in lawful money of the United States of
24 America.
25 (d) Form.--Bonds issued under this act may be issued as
26 coupon bonds or registered as to both principal and interest as
27 the issuing officials may determine. If interest coupons are
28 attached, they shall contain the facsimile signature of the
29 State Treasurer.
30 (e) Amount.--The issuing officials shall provide for the
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1 amortization of the bonds issued under this act in substantial
2 and regular amounts over the term of the debt.
3 (f) Preparation.--The Governor, the Auditor General and the
4 State Treasurer shall proceed to have the necessary bonds
5 prepared and printed. The bonds, as soon as they are prepared
6 and printed, shall be deposited with the duly authorized loan
7 and transfer agent of the Commonwealth, there to remain until
8 sold in accordance with the provisions of this act.
9 Section 5. Sale of bonds.
10 (a) Offering for sale.--When bonds are issued under this
11 act, they shall be offered for sale and shall be sold by the
12 Governor, the Auditor General and State Treasurer to the highest
13 and best bidder or bidders after due public advertisement, on
14 such terms and conditions and upon such open competitive bidding
15 as the Governor, the Auditor General and the State Treasurer
16 shall direct. The manner and character of advertisement and the
17 times of advertising shall be prescribed by the Governor, the
18 Auditor General and the State Treasurer.
19 (b) Private sale.--Any portion of any bond issue offered
20 under subsection (a) and not sold or subscribed for may be
21 disposed of by private sale by the Governor, the Auditor General
22 and the State Treasurer, in such manner and at such prices as
23 the Governor shall direct.
24 (c) Series.--When bonds are issued from time to time, the
25 bonds of each issue shall constitute a separate series to be
26 designated by the issuing officials or may be combined for sale
27 as one series with other general obligation bonds of the
28 Commonwealth.
29 Section 6. Refunding bonds.
30 The Governor, the Auditor General and the State Treasurer are
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1 hereby authorized to provide, by resolution, for the issuance of
2 refunding bonds for the purpose of refunding any bonds issued
3 under the provisions of this act and then outstanding, either by
4 voluntary exchange with the holders of such outstanding bonds
5 with accrued interest and any premium payable thereon, at
6 maturity or at any call date. The issuance of refunding bonds,
7 the maturities and other details thereof, the rights of the
8 holders thereof, and the duties of the Governor, the Auditor
9 General and the State Treasurer in respect to refunding bonds
10 shall be governed by the foregoing provisions of this act,
11 insofar as they may be applicable. Refunding bonds may be issued
12 by the Governor, the Auditor General and the State Treasurer to
13 refund bonds originally issued or to refund bonds previously
14 issued for refunding purposes.
15 Section 7. Registration of bonds.
16 The Auditor General shall prepare the necessary registry book
17 to be kept in the office of the duly authorized loan and
18 transfer agent of the Commonwealth for the registration of any
19 bonds, at the request of owners thereof, according to the terms
20 and conditions of issue directed by the Governor, the Auditor
21 General and the State Treasurer. All bonds which are issued
22 under this act without interest coupons attached shall be
23 registered in the registry books kept by the duly authorized
24 loan and transfer agent of the Commonwealth.
25 Section 8. Disposition and use of proceeds.
26 (a) Creation of Local Criminal Justice Fund.--There is
27 hereby created in the State Treasury a special fund to be known
28 as the Local Criminal Justice Fund. The proceeds realized from
29 the sale of bonds under the provisions of this act shall be paid
30 into this special fund and are hereby specifically dedicated to
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1 the purpose of the referendum authorized by section 1. The
2 moneys shall be paid periodically by the State Treasurer to the
3 department at such times and in such amounts as may be necessary
4 to satisfy the purpose of this act.
5 (b) Investment and earnings.--Pending their application to
6 the purposes authorized, moneys held or deposited in the Local
7 Criminal Justice Fund by the State Treasurer may be invested or
8 reinvested as are other funds in the custody of the State
9 Treasurer in the manner provided by law. All earnings received
10 from the investment or deposit of such funds shall be paid into
11 the State Treasury to the credit of the Local Criminal Justice
12 Fund.
13 Section 9. Local Criminal Justice Sinking Fund.
14 All bonds issued under the authority of this act shall be
15 redeemed at maturity, and all interest due, from time to time,
16 on such bonds shall be paid from the Local Criminal Justice
17 Sinking Fund, which is hereby created. For the specific purpose
18 of redeeming these bonds at maturity and paying all interest
19 thereon in accordance with the information received from the
20 Governor, the General Assembly shall appropriate moneys for the
21 payment of interest on these bonds and the principal thereof at
22 maturity. All moneys paid into the Local Criminal Justice
23 Sinking Fund, and all of such moneys not necessary to pay
24 accruing interest, shall be invested by the Board of Finance and
25 Revenue in such securities as are provided by law for the
26 investment of the sinking funds of the Commonwealth.
27 Section 10. Expenses of preparation, issue and sale of bonds.
28 There is hereby appropriated to the State Treasurer, from the
29 proceeds of the bonds issued, as much of the moneys as may be
30 necessary for all costs and expenses in connection with the
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1 issue of and sale and registration of bonds in connection with
2 this act.
3 Section 11. Temporary financing authorization.
4 (a) Temporary borrowing.--Pending the issuance of bonds of
5 the Commonwealth, the Governor, the Auditor General and the
6 State Treasurer are authorized, on the credit of the
7 Commonwealth, to make temporary borrowings of such moneys as may
8 from time to time be necessary to carry out the purposes of this
9 act and are authorized in the name and on behalf of the
10 Commonwealth to enter into loan or credit agreements with any
11 banks or trust companies or other lending institutions or
12 persons in the United States having power to enter into the
13 same.
14 (b) Form.--All temporary borrowings made under the authority
15 of this section shall be evidenced by notes of the Commonwealth,
16 which shall be issued from time to time for such amounts, not
17 exceeding in the aggregate the sum of $400,000,000, in such form
18 and in such denominations, and subject to such terms and
19 conditions of issue, prepayment or redemption and maturity, rate
20 of interest and time of payment of interest as the issuing
21 officials shall direct. All notes issued under the authority of
22 this section shall bear the facsimile signatures of the issuing
23 officials and a facsimile of the Great Seal of the Commonwealth,
24 and shall be countersigned by two duly authorized officers of a
25 duly authorized loan and transfer agent of the Commonwealth.
26 (c) Funding and retirement.--All notes under this section
27 shall be funded and retired by the issuance and sale of bonds of
28 the Commonwealth to the extent that payment of these notes has
29 not otherwise been made or provided for.
30 (d) Proceeds.--The proceeds of all temporary borrowings
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1 under this section shall be paid into the Local Criminal Justice
2 Fund.
3 Section 12. Quorum.
4 Whenever in this act any action is to be taken or any
5 decision is to be made by the Governor, the Auditor General and
6 the State Treasurer, and the three officers are not able to
7 agree unanimously, the action or decision of the Governor and
8 either the Auditor General or the State Treasurer shall be
9 binding and final.
10 Section 13. Information to General Assembly.
11 It shall be the duty of the Governor to include in every
12 budget submitted to the General Assembly full information
13 relating to the issuance of bonds under the provisions of this
14 act, and the status of the sinking funds of the Commonwealth for
15 the payment of the interest on those bonds and the principal
16 thereof at maturity.
17 Section 14. Grants to counties.
18 The department shall, by regulation, establish procedures to
19 implement the purposes of this act and to make grants to
20 counties for the repair, construction, reconstruction,
21 rehabilitation and improvement of local correctional facilities.
22 These procedures shall include, at a minimum, the following:
23 (1) Applications shall be made to the department by the
24 county or counties requesting the grant.
25 (2) Any grant approved by the department must be matched
26 by funding in a like amount by the county from county funds,
27 except that, if any Federal funding should become available
28 for the construction of local correctional facilities, then
29 both the department and county shares shall be reduced in
30 like proportion.
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1 (3) Grants shall be available only for the repair,
2 construction, reconstruction, rehabilitation and improvement
3 of local correctional facilities.
4 Section 15. Appropriation.
5 (a) Appropriation to fund.--The sum of $400,000,000, or as
6 much thereof as is able to be borrowed by temporary financing or
7 by bonds, is hereby appropriated to the Local Criminal Justice
8 Fund for the purposes set forth in this act. The General
9 Assembly may make appropriations from time to time to the Local
10 Criminal Justice Fund or to the department to carry out the
11 purposes of this act, which appropriations shall be continuing
12 appropriations and shall not lapse.
13 (b) Other sources of funds.--In addition to the moneys
14 appropriated from time to time by the General Assembly for its
15 work, the department is authorized to make application for and
16 expend such Federal grants as may be available and may also
17 receive and expend contributions from other public, quasi-public
18 or private sources as may become available.
19 Section 16. Effective date.
20 This act shall take effect as follows:
21 (1) Section 2 of this act shall take effect immediately.
22 (2) The remaining sections of this act shall take effect
23 immediately upon certification that the referendum question
24 authorized by section 2 is approved.
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