PRIOR PRINTER'S NO. 1077 PRINTER'S NO. 3549
No. 911 Session of 2003
INTRODUCED BY GEORGE, BAKER, BELARDI, BELFANTI, CAWLEY,
CORRIGAN, COSTA, COY, CURRY, DeLUCA, DeWEESE, EACHUS,
FABRIZIO, FAIRCHILD, FREEMAN, GOODMAN, GORDNER, GRUCELA,
HARHAI, HERMAN, HORSEY, JOSEPHS, KOTIK, LAUGHLIN, LEVDANSKY,
MANDERINO, McCALL, MUNDY, O'NEILL, PETRARCA, REICHLEY,
SAINATO, SCRIMENTI, SHANER, SOLOBAY, SURRA, THOMAS, TIGUE,
WALKO, WASHINGTON AND YUDICHAK, MARCH 19, 2003
AS REPORTED FROM COMMITTEE ON ENVIRONMENTAL RESOURCES AND
ENERGY, HOUSE OF REPRESENTATIVES, AS AMENDED, MARCH 24, 2004
AN ACT
1 Authorizing the incurring of indebtedness of $50,000,000 for the
2 clearance of streams, improvement of watercourse flow
3 patterns, and abatement of flooding potential in this
4 Commonwealth; defining the powers and duties of certain
5 offices, agencies and political subdivisions; providing for
6 the allotment of proceeds under this act, including
7 Commonwealth grants; prescribing standards; establishing the
8 Watercourse Flow Improvement Fund; creating the Watercourse
9 Flow Improvement Sinking Fund; providing for use of certain <--
10 proceeds of the State Realty Transfer Tax; and making an
11 appropriation.
12 TABLE OF CONTENTS
13 Section 1. Short title.
14 Section 2. Declaration of policy.
15 Section 3. Definitions.
16 Section 4. Referendum to authorize incurring indebtedness.
17 Section 5. Authority to borrow.
18 Section 6. Bonds, issue, maturity, interest, etc.
19 Section 7. Sale of bonds.
1 Section 8. Refunding bonds.
2 Section 9. Registration of bonds.
3 Section 10. Disposition and use of proceeds.
4 Section 11. Watercourse Flow Improvement Sinking Fund.
5 Section 12. Expenses of preparation, issue and sale of bonds.
6 Section 13. Temporary financing authorization.
7 Section 14. Quorum.
8 Section 15. Information to General Assembly.
9 Section 16. Allotment of moneys.
10 Section 17. Estimated useful life and term of debt.
11 Section 18. Appropriation.
12 Section 19. Effective date.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Short title.
16 This act shall be known and may be cited as the Watercourse
17 Flow Improvement Act.
18 Section 2. Declaration of policy.
19 The General Assembly finds and declares as follows:
20 (1) Fundamental to the health and welfare of the people
21 of this Commonwealth are the land and water resources of this
22 Commonwealth.
23 (2) Many miles of waterways in this Commonwealth have
24 diminished flow capabilities because of infiltration of silt
25 and debris. This diminished capacity can cause damage to
26 homes and property due to flooding.
27 (3) The need to make watercourse flow improvements and
28 stream clearance are urgent matters requiring action by the
29 Commonwealth, not only for conservation purposes, but for the
30 protection of the health and welfare of the citizens of this
20030H0911B3549 - 2 -
1 Commonwealth, especially those living in or adjacent to
2 affected areas.
3 (4) The Department of Environmental Protection shall be
4 responsible for any and all activities necessary to conduct
5 the business of watercourse flow improvements and stream
6 clearance projects funded under this act.
7 Section 3. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "Administrative expenses." An expenditure of funds to
12 accomplish the purposes of this act, including, but not limited
13 to, an expenditure of Commonwealth agencies for studies,
14 planning, development, appraisal, investigation, engineering,
15 legal and construction costs.
16 "Department." The Department of Environmental Protection of
17 the Commonwealth.
18 "Issuing officials." The Governor, the Auditor General and
19 the State Treasurer acting in concert to effect borrowing in
20 accordance with and for the purposes of this act.
21 "Land." Real property, including improvements thereof or
22 thereon, rights-of-way, water, riparian and other rights,
23 easements, privileges and any other physical property or rights
24 or interests of any kind or description relating to or connected
25 with real property.
26 "Political subdivision." A county, city, borough, town or
27 township. The term also includes an official agency created by a
28 county, city, borough, town or township under the laws of this
29 Commonwealth, provided that any of the actions of the official
30 agency taken under the authority of this act is first approved
20030H0911B3549 - 3 -
1 by the participating local governing bodies in the official
2 agency.
3 "Secretary." The Secretary of Environmental Protection of
4 the Commonwealth.
5 "Studies." The collection, analysis and presentation of
6 information, alternatives and recommendations in order that the
7 Commonwealth or political subdivisions may singly or jointly
8 determine a course of action to meet the purposes of this act.
9 Section 4. Referendum to authorize incurring indebtedness.
10 (a) Submission of question to electors.--The question of
11 incurring indebtedness of $50,000,000 for the Watercourse Flow
12 Improvement Fund to be used for the abatement and elimination of
13 flooding potential from the streams of this Commonwealth,
14 watercourse flow improvements and stream clearances shall be
15 submitted to the electors at the next primary, municipal or
16 general election following the effective date of this act.
17 (b) Certification to county boards of elections.--The
18 Secretary of the Commonwealth shall immediately certify the
19 question under subsection (a) to the county boards of elections.
20 (c) Form of question.--The question shall be in
21 substantially the following form:
22 Do you favor the incurring of indebtedness by the
23 Commonwealth of $50,000,000 to be used for the abatement
24 and elimination of flooding potential from the streams of
25 this Commonwealth, watercourse flow improvements and
26 stream clearance?
27 (d) Conduct of election.--The election shall be conducted in
28 accordance with the act of June 3, 1937 (P.L.1333, No.320),
29 known as the Pennsylvania Election Code, except that the time
30 limits for advertisement of notice of the election may be waived
20030H0911B3549 - 4 -
1 as to the question.
2 Section 5. Authority to borrow.
3 In the event that the question of incurring indebtedness, as
4 described in section 4, is approved by a majority of those
5 voting on the question in accordance with section 7(a)(3) of
6 Article VIII of the Constitution of Pennsylvania, the issuing
7 officials are hereby authorized and directed to borrow, on the
8 credit of the Commonwealth, such sum or sums of money not
9 exceeding in the aggregate the sum of $50,000,000 as may be
10 necessary to carry out the purposes of this act.
11 Section 6. Bonds, issue, maturity, interest, etc.
12 (a) Issuance.--As evidence of the indebtedness authorized in
13 this act, general obligation bonds of the Commonwealth shall be
14 issued from time to time for such total amounts, in such forms,
15 in such denominations and subject to such terms and conditions
16 of issue, redemption and maturity, rate or rates of interest and
17 time of payment of interest as the issuing officials shall
18 direct, except that the latest stated maturity date shall not
19 exceed 30 years from the date of the bond first issued for each
20 such series.
21 (b) Signatures and seal.--All bonds issued under the
22 authority of this act shall bear facsimile signatures of the
23 issuing officials, and a facsimile of the Great Seal of the
24 Commonwealth, and shall be countersigned by two duly authorized
25 officers of the duly authorized loan and transfer agents of the
26 Commonwealth.
27 (c) Full faith and credit.--All bonds issued in accordance
28 with the provisions of this act shall be direct obligations of
29 the Commonwealth, and the full faith and credit of the
30 Commonwealth are hereby pledged for the payment of the interest
20030H0911B3549 - 5 -
1 thereon as the same shall become due and for the payment of the
2 principal thereof at maturity. All bonds issued under the
3 provisions of this act shall be exempt from taxation for State
4 and local purposes. The principal of and interest on such bonds
5 shall be payable in lawful money of the United States of
6 America.
7 (d) Form.--Bonds issued under this act may be issued as
8 coupon bonds or registered as to both principal and interest as
9 the issuing officials may determine. If interest coupons are
10 attached, they shall contain the facsimile signature of the
11 State Treasurer.
12 (e) Amount.--The issuing officials shall provide for the
13 amortization of the bonds issued under this act in substantial
14 and regular amounts over the term of the debt.
15 (f) Preparation.--The issuing officials shall proceed to
16 have the necessary bonds prepared and printed. The bonds, as
17 soon as they are prepared and printed, shall be deposited with
18 the duly authorized loan and transfer agent of the Commonwealth,
19 there to remain until sold in accordance with the provisions of
20 this act.
21 Section 7. Sale of bonds.
22 (a) Offering for sale.--When bonds are issued under this
23 act, they shall be offered for sale and shall be sold by the
24 issuing officials to the highest and best bidder or bidders
25 after due public advertisement, on such terms and conditions and
26 upon such open competitive bidding as the issuing officials
27 shall direct. The manner and character of advertisement and the
28 times of advertising shall be prescribed by the issuing
29 officials.
30 (b) Private sale.--Any portion of any bond issue offered
20030H0911B3549 - 6 -
1 under subsection (a) and not sold or subscribed for may be
2 disposed of by private sale by the issuing officials, in such
3 manner and at such prices as the Governor shall direct.
4 (c) Series.--When bonds are issued from time to time, the
5 bonds of each issue shall constitute a separate series to be
6 designated by the issuing officials or may be combined for sale
7 as one series with other general obligation bonds of the
8 Commonwealth.
9 Section 8. Refunding bonds.
10 The issuing officials are hereby authorized to provide by
11 resolution for the issuance of refunding bonds for the purpose
12 of refunding any bonds issued under the provisions of this act
13 and then outstanding, either by voluntary exchange with the
14 holders of such outstanding bonds with accrued interest and any
15 premium payable thereon, at maturity or at any call date. The
16 issuance of refunding bonds, the maturities and other details
17 thereof, the rights of the holders thereof and the duties of the
18 issuing officials in respect to refunding bonds shall be
19 governed by the foregoing provisions of this act, insofar as
20 they may be applicable. Refunding bonds may be issued by the
21 issuing officials to refund bonds originally issued or to refund
22 bonds previously issued for refunding purposes.
23 Section 9. Registration of bonds.
24 The Auditor General shall prepare the necessary registry book
25 to be kept in the office of the duly authorized loan and
26 transfer agent of the Commonwealth for the registration of any
27 bonds, at the request of owners thereof, according to the terms
28 and conditions of issue directed by the issuing officials. All
29 bonds which are issued under this act without interest coupons
30 attached shall be registered in the registry books kept by the
20030H0911B3549 - 7 -
1 duly authorized loan and transfer agent of the Commonwealth.
2 Section 10. Disposition and use of proceeds.
3 (a) Watercourse Flow Improvement Fund.--There is hereby
4 established in the State Treasury a special fund to be known as
5 the Watercourse Flow Improvement Fund. The proceeds realized
6 from the sale of bonds under this act shall be paid into the
7 fund and are hereby specifically dedicated to the purpose of the
8 referendum authorized under section 4 FOR THE DEPARTMENT'S <--
9 STREAM IMPROVEMENT GRANT PROGRAM. The moneys shall be paid
10 periodically by the State Treasurer to the department at such
11 times and in such amounts as may be necessary to satisfy the
12 purpose of this act.
13 (b) Investment and earnings.--Pending their application to
14 the purposes authorized, moneys held or deposited in the
15 Watercourse Flow Improvement Fund by the State Treasurer may be
16 invested or reinvested as are other funds in the custody of the
17 State Treasurer in the manner provided by law. All earnings
18 received from the investment or deposit of such funds shall be
19 paid into the State Treasury to the credit of the Watercourse
20 Flow Improvement Fund.
21 Section 11. Watercourse Flow Improvement Sinking Fund.
22 (a) Establishment.--All bonds issued under the authority of
23 this act shall be redeemed at maturity, and all interest due
24 from time to time on such bonds shall be paid from the
25 Watercourse Flow Improvement Sinking Fund which is hereby
26 established. For the specific purpose of redeeming these bonds
27 at maturity and paying all interest thereon in accordance with
28 the information received from the Governor, the General Assembly
29 shall appropriate moneys for the payment of interest on these
30 bonds and the principal thereof at maturity.
20030H0911B3549 - 8 -
1 (b) Investment.--All moneys paid into the Watercourse Flow
2 Improvement Sinking Fund and all of such moneys not necessary to
3 pay accruing interest shall be invested by the Board of Finance
4 and Revenue in such securities as are provided by law for the
5 investment of the sinking funds of the Commonwealth.
6 Section 12. Expenses of preparation, issue and sale of bonds.
7 There is hereby appropriated to the State Treasurer, from the
8 proceeds of the bonds issued, as much of the moneys as may be
9 necessary for all costs and expenses in connection with the
10 issue of and sale and registration of bonds in connection with
11 this act.
12 Section 13. Temporary financing authorization.
13 (a) Temporary borrowing.--Pending the issuance of bonds of
14 the Commonwealth, the issuing officials are authorized, on the
15 credit of the Commonwealth, to make temporary borrowings of such
16 moneys as may from time to time be necessary to carry out the
17 purposes of this act and are authorized in the name and on
18 behalf of the Commonwealth to enter into loan or credit
19 agreements with any banks or trust companies or other lending
20 institutions or persons in the United States having power to
21 enter into the same.
22 (b) Form.--All temporary borrowings made under the authority
23 of this section shall be evidenced by notes of the Commonwealth,
24 which shall be issued from time to time for such amounts, not
25 exceeding in the aggregate the sum of $50,000,000, in such form
26 and in such denominations, and subject to such terms and
27 conditions of issue, prepayment or redemption and maturity, rate
28 of interest and time of payment of interest as the issuing
29 officials shall direct. All notes issued under the authority of
30 this section shall bear the facsimile signatures of the issuing
20030H0911B3549 - 9 -
1 officials and a facsimile of the Great Seal of the Commonwealth
2 and shall be countersigned by two duly authorized officers of a
3 duly authorized loan and transfer agent of the Commonwealth.
4 (c) Funding and retirement.--All notes under this section
5 shall be funded and retired by the issuance and sale of bonds of
6 the Commonwealth to the extent that payment of these notes has
7 not otherwise been made or provided for.
8 (d) Proceeds.--The proceeds of all temporary borrowings
9 under this section shall be paid into the Watercourse Flow
10 Improvement Fund.
11 Section 14. Quorum.
12 Whenever in this act any action is to be taken or any
13 decision is to be made by the issuing officials and the three
14 officers are not able to agree unanimously, the action or
15 decision of the Governor and either the Auditor General or the
16 State Treasurer shall be binding and final.
17 Section 15. Information to General Assembly.
18 The Governor shall include in every budget submitted to the
19 General Assembly full information relating to the issuance of
20 bonds under the provisions of this act and the status of the
21 sinking funds of the Commonwealth for the payment of the
22 interest on those bonds and the principal thereof at maturity.
23 Section 16. Allotment of moneys.
24 (a) Projects.--Of the moneys received by the Commonwealth
25 from the issuance and sale of bonds and notes pursuant to this
26 act, when appropriated by the General Assembly from the
27 Watercourse Flow Improvement Fund, the sum of $50,000,000 shall
28 be allotted to the Department of Environmental Protection for
29 IMPLEMENTATION OF THE DEPARTMENT'S STREAM IMPROVEMENT GRANT <--
30 PROGRAM TO PROVIDE FOR the abatement and elimination of flooding
20030H0911B3549 - 10 -
1 potential of watersheds and waterways, the restoration or
2 improvement of watercourse flow patterns, stream clearance and
3 administration expenses attendant thereto.
4 (b) Right to enter land to restore or improve watercourse <--
5 flow patterns and to provide stream clearance.
6 (1) If the secretary makes a finding of fact that:
7 (i) flooding potential resulting from inadequate or
8 improper watercourse flow is at a stage where, in the
9 public interest, immediate action should be taken; and
10 (ii) the owners of the property upon which entry
11 must be made to combat the flooding potential are not
12 known, are not readily available or will not give
13 permission for the secretary or agents of the department
14 to enter upon the premises; then, upon giving notice by
15 mail to the owners, if known, or, if not known, by
16 posting notice upon the premises and advertising once in
17 a newspaper of general circulation in the municipality in
18 which the land lies, the secretary and agents of the
19 department shall have the right to enter upon the
20 premises and any other land in order to have access to
21 the premises to combat flooding potential and to do all
22 things necessary or expedient to do so.
23 (2) Entry shall not be construed as an act of
24 condemnation of property or of trespass. The moneys expended
25 for the work and the benefits accruing to the premises so
26 entered upon shall be chargeable against the land and shall
27 mitigate or offset any claim in or any action brought by any
28 owner of any interest in such premises for any alleged
29 damages by virtue of the entry.
30 (3) This subsection shall not be construed as
20030H0911B3549 - 11 -
1 establishing any right of action or eliminating any immunity
2 existing on the effective date of this act.
3 (4) The secretary and agents of the department may enter
4 upon any lands for the purpose of conducting a study or
5 exploratory work to determine if flooding potential exists
6 and to determine the feasibility of correcting such
7 conditions. Entry shall not be construed as an act of
8 condemnation of property or of trespass.
9 (5) The department may expend funds, as appropriated in
10 this section, for the emergency abatement of flooding,
11 whenever created, if the secretary makes a finding of fact
12 that:
13 (i) an emergency exists constituting an extreme
14 danger to the public; and
15 (ii) no other person or agency will act to combat
16 the condition.
17 (6) (i) The department shall have the right to enter
18 upon the premises where the emergency exists and any
19 other land to have access to the premises to combat
20 flooding and to do all things necessary or expedient to
21 do so. Entry shall not be construed as an act of
22 condemnation of property or of trespass thereon.
23 (ii) The moneys expended for the work and the
24 benefits accruing to the land shall be chargeable against
25 the land and shall mitigate or offset any claim in or any
26 action brought by any owner of any interest in the land
27 for alleged damages by virtue of the entry.
28 (iii) This paragraph shall not be construed as
29 establishing any right of action or eliminating any
30 immunity existing on the effective date of this act.
20030H0911B3549 - 12 -
1 (7) (i) All moneys expended under this act for the
2 emergency abatement of flooding may be recovered in full
3 from the landowner or any other person liable under law
4 for abating the conditions resulting in the emergency.
5 The moneys expended for the emergency abatement of these
6 conditions shall constitute a debt which may be recovered
7 in any action at law to compel payment of debts.
8 (ii) If the landowner or another person is not
9 liable under law to abate the emergency conditions, then,
10 within either six months after the completion of the work
11 or within six months after the final court determination
12 of the absence of liability, the secretary may file a
13 lien on the property.
14 (iii) The department may:
15 (A) Engage in the work and to do all things
16 necessary and expedient to effect the programs.
17 (B) Enter into cooperative abatement projects
18 under this act with the Federal Government and its
19 agencies and other states and their agencies.
20 (iv) In addition to any other remedies provided for
21 in this act, the Attorney General, at the request of the
22 department, may initiate, in the Commonwealth Court or
23 the court of common pleas of the county in which the land
24 lies, an action in equity for an injunction to restrain
25 any interference with the exercise of the rights of entry
26 provided in or the conduct of any project contemplated in
27 this paragraph.
28 (B) MUNICIPAL MATCH.--NO MUNICIPAL MATCH IS NECESSARY FOR <--
29 STREAM IMPROVEMENT GRANTS FUNDED UNDER THIS ACT. A MUNICIPALITY
30 OR AUTHORITY RECEIVING A GRANT FROM THE COMMONWEALTH UNDER THIS
20030H0911B3549 - 13 -
1 ACT MAY RECEIVE A WAIVER TO SPEND UP TO 5% OF THE GRANT FOR THE
2 ACQUISITION OF PROPERTY, A RIGHT-OF-WAY OR PROPERTY REMOVAL OR
3 DEMOLITION NECESSARY FOR THE COMPLETION OF A PROJECT OR LOAN FOR
4 THESE ACTIVITIES UPON THE APPROVAL OF THE DEPARTMENT.
5 (c) Joint departmental projects.--The respective departments <--
6 and commissions DEPARTMENT may cooperate and expend funds <--
7 jointly on water projects JOINTLY WITH OTHER ENTITIES where the <--
8 objectives of such projects can be better achieved, where
9 economies may be obtained by cooperation and joint action or, in
10 other instances, where joint action is determined to be in the
11 public interest.
12 (d) Administrative expenses.--Departments and commissions <--
13 incurring administrative expenses in accomplishing the purposes
14 of this act may charge these expenses against their specific
15 allotment.
16 (e) Federal programs.--The departments and commissions set
17 forth herein may utilize any available Federal program to
18 augment the funds made available to such department or
19 commission under this act.
20 Section 17. Estimated useful life and term of debt.
21 (a) Estimated useful life.--The General Assembly states that
22 the estimated useful life of the public improvement projects
23 itemized in this act is 30 years.
24 (b) Term of debt.--The maximum term of the debt authorized
25 to be incurred under this act is 30 years.
26 Section 18. Appropriation.
27 (a) Appropriation to fund.--
28 (1) The sum of $50,000,000, or as much thereof as is
29 able to be borrowed by temporary financing or by bonds, is
30 hereby appropriated to the Watercourse Flow Improvement Fund
20030H0911B3549 - 14 -
1 for the purposes set forth in this act.
2 (2) The General Assembly may make appropriations from
3 time to time to the Watercourse Flow Improvement Fund, to the
4 Department of Environmental Protection, or to both, to carry
5 out the purposes of this act, which appropriations shall be
6 continuing appropriations and shall not lapse.
7 (b) Other sources of funds.--In addition to the moneys
8 appropriated from time to time by the General Assembly for its
9 work, the department may make application for and expend such
10 Federal grants as may be available and may also receive and
11 expend contributions from other public, quasi-public or private
12 sources as may become available.
13 Section 19. Effective date.
14 This act shall take effect immediately.
B10L27JS/20030H0911B3549 - 15 -