PRIOR PRINTER'S NO. 956 PRINTER'S NO. 1201
No. 854 Session of 1997
INTRODUCED BY BARLEY, MARCH 12, 1997
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
APRIL 1, 1997
AN ACT
1 Providing for the capital budget for the fiscal year 1997-1998.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Short title and construction.
5 (a) Short title.--This act shall be known and may be cited
6 as the Capital Budget Act of 1997-1998.
7 (b) Supplements.--A reference to this act shall be deemed to
8 include a reference to the supplements to this act.
9 (c) Fiscal Code.--The provisions and definitions of Article
10 XVI-B of the act of April 9, 1929 (P.L.343, No.176), known as
11 The Fiscal Code, shall apply to this act to the extent they are
12 not inconsistent with this act.
13 Section 2. Overall limitations on debt to be incurred for
14 capital projects.
15 The maximum principal amount of additional debt to be
16 incurred during the 1997-1998 fiscal year, and thereafter until
1 the enactment of the 1998-1999 capital budget specifying the
2 maximum debt for the 1998-1999 fiscal year, for capital projects
3 specifically itemized in a capital budget pursuant to section
4 7(a)(4) of Article VIII of the Constitution of Pennsylvania, and
5 the fund to be charged with the repayment of such debt, shall,
6 with respect to each category of capital projects, be as
7 follows:
8 Category Amount Fund
9 (1) Public Improvement
10 Projects:
11 (i) Buildings and General Fund or
12 Structures $210,000,000 Special Fund as
13 (ii) Furniture and applicable
14 Equipment 35,000,000
15 (2) Transportation
16 Assistance Projects 85,000,000 General Fund
17 (3) Redevelopment
18 Assistance Projects 60,000,000 General Fund
19 (4) Flood Control
20 Projects 11,000,000 General Fund
21 Total $401,000,000
22 SECTION 3. BOND SERVICES. <--
23 (A) DECLARATION OF POLICY.--THE GENERAL ASSEMBLY FINDS AND
24 DECLARES AS FOLLOWS:
25 (1) RECIPIENTS OF CONTRACTS TO PERFORM BOND SERVICES FOR
26 THE COMMONWEALTH HAVE IN THE PAST MADE SUBSTANTIAL
27 CONTRIBUTIONS TO COMMONWEALTH ELECTED OFFICIALS.
28 (2) THE COMMONWEALTH PAYS MORE FOR BOND SERVICE THAN
29 STATES WHICH MAKE AWARDS ON THE BASIS OF COMPETITIVE BIDDING.
30 (3) THIS HAS CREATED THE PUBLIC PERCEPTION THAT
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1 CONTRACTS FOR BOND SERVICES ARE AWARDED ON THE BASIS OF
2 POLITICAL CONSIDERATION AND HAS THUS ERODED PUBLIC TRUST AND
3 CONFIDENCE IN STATE GOVERNMENT.
4 (4) AWARDING OF BOND SERVICE CONTRACTS TO THE LOWEST
5 RESPONSIBLE BIDDER IS THE BEST METHOD TO ENSURE THE LOWEST
6 PRICE TO TAXPAYERS AND THE HIGHEST DEGREE OF INTEGRITY IN THE
7 BOND SERVICE AWARD PROCESS.
8 (B) LOWEST BID.--ANY AND ALL BOND SERVICES PERFORMED FOR THE
9 COMMONWEALTH, ITS AGENCIES, AUTHORITIES AND COMMISSIONS WHICH
10 CANNOT BE PERFORMED BY EMPLOYEES OF THE COMMONWEALTH SHALL BE
11 CONTRACTED WITH AND PERFORMED BY THE BOND SERVICE PROVIDER
12 SUBMITTING THE LOWEST RESPONSIBLE BID.
13 (C) REQUEST FOR PROPOSAL.--FOR EACH BOND SERVICE REQUIRED TO
14 BE PERFORMED FOR THE COMMONWEALTH, ITS AGENCIES, AUTHORITIES OR
15 COMMISSIONS, THE ISSUING AUTHORITY SHALL DISTRIBUTE A REQUEST
16 FOR PROPOSAL REQUIRING A WRITTEN RESPONSE.
17 (D) SELECTION OF SERVICE PROVIDER.--AFTER EACH BOND SERVICE
18 PROVIDER IS SELECTED, THE ISSUING AUTHORITY SHALL ISSUE A
19 WRITTEN REPORT OF THE SELECTION OF THE SERVICE PROVIDER AND THE
20 BASIS THEREFOR. A COPY OF THE REQUEST FOR PROPOSAL AND THE
21 RESPONSES THERETO SHALL BE MADE A PART OF THE REPORT. THIS
22 REPORT SHALL BE MADE AVAILABLE TO THE PUBLIC.
23 (E) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
24 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
25 SUBSECTION:
26 "BOND SERVICE PROVIDER" MEANS ANY BOND COUNSEL, FINANCIAL
27 ADVISER, UNDERWRITER, LOAN AND TRANSFER AGENT, VERIFICATION
28 AGENT OR PRINTER WHO PROVIDES BOND SERVICES.
29 "BOND SERVICES" MEANS LEGAL, FINANCIAL AND OTHER SERVICES BY
30 A BOND SERVICE PROVIDER RENDERED IN CONJUNCTION WITH ANY BONDS
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1 ISSUED.
2 Section 3 4. Effective date. <--
3 This act shall take effect July 1, 1997, or immediately,
4 whichever is later.
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