HOUSE AMENDED
PRIOR PRINTER'S NOS. 1650, 1666, 1690, PRINTER'S NO. 1787
1709, 1756, 1764
No. 1102 Session of 2004
INTRODUCED BY GORDNER, JUBELIRER, BRIGHTBILL, MADIGAN, WENGER,
RHOADES, LEMMOND, ORIE, RAFFERTY, ERICKSON, PILEGGI, CORMAN,
SCHWARTZ, C. WILLIAMS, PIPPY, EARLL, MOWERY, WAUGH, THOMPSON,
BOSCOLA, PUNT AND ROBBINS, MAY 26, 2004
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JULY 2, 2004
AN ACT
1 Amending Titles 12 (Commerce and Trade) and 64 (Public
2 Authorities and Quasi-Public Corporations) of the
3 Pennsylvania Consolidated Statutes, providing for water
4 supply and wastewater infrastructure capitalization;
5 AUTHORIZING DEBT; defining "investor-owned water or <--
6 wastewater enterprise"; and providing for Water Supply and
7 Wastewater Infrastructure Program.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Title 12 of the Pennsylvania Consolidated
11 Statutes is amended by adding a chapter to read:
12 CHAPTER 39
13 WATER SUPPLY AND WASTEWATER
14 INFRASTRUCTURE CAPITALIZATION
15 Sec.
16 3901. Scope of chapter.
17 3902. Definitions.
18 3903. Establishment.
1 3904. Award of grants.
2 3905. Award and administration of loans.
3 3906. Funds.
4 3907. COMMONWEALTH INDEBTEDNESS. <--
5 § 3901. Scope of chapter.
6 This chapter relates to the Water Supply and Wastewater
7 Infrastructure Capitalization Program.
8 § 3902. Definitions.
9 The following words and phrases when used in this chapter
10 shall have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Applicant." A municipality, a municipal authority,
13 industrial development corporation or an investor-owned water or
14 wastewater enterprise that submits an application under 64
15 Pa.C.S. § 1558 (relating to Water Supply and Wastewater
16 Infrastructure Program).
17 "Authority." The Commonwealth Financing Authority
18 established under 64 Pa.C.S. § 1511 (relating to authority).
19 "Cost of a project." Any of the following:
20 (1) Costs and expenses of acquisition of interests in
21 land, infrastructure, buildings, structures, equipment,
22 furnishings, fixtures and other tangible property which
23 comprises the project.
24 (2) Costs and expenses of construction, reconstruction,
25 erection, equipping, expansion, improvement, installation,
26 rehabilitation, renovation or repair of infrastructure,
27 buildings, structures, equipment and fixtures which comprise
28 the project.
29 (3) Costs and expenses of demolishing, removing or
30 relocating buildings or structures on lands acquired or to be
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1 acquired.
2 (4) Costs and expenses of preparing land for
3 development.
4 (5) Costs and expenses of engineering services,
5 financial services, accounting services, legal services,
6 plans, specifications, studies and surveys necessary or
7 incidental to determining the feasibility or practicability
8 of the project.
9 "FUND." THE WATER SUPPLY AND WASTEWATER TREATMENT FUND <--
10 ESTABLISHED IN SECTION 3906(B) (RELATING TO FUNDS).
11 "Industrial development corporation." An entity certified as
12 an industrial development agency by the Pennsylvania Industrial
13 Development Authority Board under the act of May 17, 1956 (1955
14 P.L.1609, No.537), known as the Pennsylvania Industrial
15 Development Authority Act.
16 "Investor-owned water or wastewater enterprise." A nonpublic
17 entity which supplies water or provides wastewater services to
18 the public for a fee.
19 "Municipal authority." A public authority created under 53
20 Pa.C.S. Ch. 56 (relating to municipal authorities) or under the
21 former act of May 2, 1945 (P.L.382, No.164), known as the
22 Municipality Authorities Act of 1945, which supplies water or
23 provides wastewater services to the public for a fee.
24 "NUTRIENT REDUCTION TECHNOLOGY." NUTRIENT REDUCTION <--
25 TECHNOLOGY IS WASTEWATER TREATMENT TECHNOLOGY THAT REDUCES
26 NUTRIENTS (NITROGEN AND PHOSPHOROUS) AS PART OF A TREATMENT OR
27 RECYCLING SYSTEM. THE TERM INCLUDES ALL OF THE FOLLOWING:
28 (1) BIOLOGICAL, CHEMICAL AND PHYSICAL WASTEWATER
29 TREATMENT.
30 (2) SYSTEM AND OPERATIONAL MODIFICATIONS.
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1 "Project." An activity approved for a grant or loan under 64
2 Pa.C.S. § 1558 (relating to Water Supply and Wastewater
3 Infrastructure Program).
4 "SINKING FUND." THE WATER SUPPLY AND WASTEWATER TREATMENT <--
5 SINKING FUND ESTABLISHED IN SECTION 3906(B) (RELATING TO FUNDS).
6 § 3903. Establishment.
7 There is established within the department a program to be
8 known as the Water Supply and Wastewater Infrastructure
9 Capitalization Program. The program shall finance single-year or
10 multiyear grants to municipalities and municipal authorities and
11 loans to municipalities, municipal authorities, industrial
12 development corporations and investor-owned water or wastewater
13 enterprises for projects which are approved by the Commonwealth <--
14 Financing Authority AUTHORITY and which, when completed, <--
15 construct, expand or improve water and wastewater infrastructure
16 which is related to economic development. <--
17 § 3904. Award of grants.
18 Upon being notified by the authority that a grant has been
19 approved under 64 Pa.C.S. § 1558(c) (relating to Water Supply
20 and Wastewater Infrastructure Program) for a municipality or <--
21 municipal authority AN APPLICANT, the department shall, within <--
22 45 days of receiving notice, enter into a contract with the
23 municipality or municipal authority APPLICANT. The contract <--
24 shall be for the amount approved by the authority. Upon entering
25 into a contract with the municipality or municipal authority <--
26 APPLICANT, the department shall award the grant for the amount <--
27 specified in the contract.
28 § 3905. Award and administration of loans.
29 (a) Award.--
30 (1) Upon being notified that a loan has been approved
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1 under 64 Pa.C.S. § 1558(d) (relating to Water Supply and
2 Wastewater Infrastructure Program) for an applicant, the
3 department shall, within 45 days of receiving notice, enter
4 into a contract with the applicant. The contract shall be for
5 the amount approved and shall specify the terms of the loan
6 in accordance with all of the following:
7 (i) A loan shall be at an interest rate not to
8 exceed 1%.
9 (ii) A loan shall be for a term not to exceed 20
10 years.
11 (2) Upon entering into a contract with the applicant,
12 the department shall award the loan for the amount specified
13 in the contract.
14 (b) Administration.--Loans made under this section shall be
15 administered by the department. Loan payments received by the
16 department for a loan awarded under this section shall be
17 deposited in the General Fund.
18 § 3906. Funds.
19 (A) PROCEEDS.--Proceeds of the borrowing authorized by the <--
20 electors pursuant to the act of February 12, 2004 (P.L.72,
21 No.10), known as the Water and Wastewater Treatment Project Bond
22 Act, shall be used by the department in funding grants and loans
23 awarded under this chapter.
24 (B) FUND.-- <--
25 (1) THE WATER SUPPLY AND WASTEWATER TREATMENT FUND IS
26 ESTABLISHED AS A RESTRICTED FUND IN THE STATE TREASURY.
27 (2) THE FUND SHALL BE USED TO CARRY OUT THE PURPOSES OF
28 THIS CHAPTER.
29 (C) SINKING FUND.--THE WATER SUPPLY AND WASTEWATER TREATMENT
30 SINKING FUND IS ESTABLISHED TO RETIRE DEBT MAKE PRINCIPAL AND <--
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1 INTEREST PAYMENTS UNDER SECTION 3907(D) (RELATING TO
2 COMMONWEALTH INDEBTEDNESS).
3 § 3907. COMMONWEALTH INDEBTEDNESS.
4 (A) BORROWING AUTHORIZED.--
5 (1) PURSUANT TO THE REFERENDUM UNDER SECTION 7(A)(3) OF <--
6 ARTICLE VIII OF THE CONSTITUTION OF PENNSYLVANIA AND THE
7 APPROVAL BY THE ELECTORATE ON APRIL 27, 2004, OF THE
8 REFERENDUM AUTHORIZED BY THE ACT OF FEBRUARY 12, 2004
9 (P.L.72, NO.10), KNOWN AS THE WATER AND WASTEWATER TREATMENT
10 PROJECT BOND ACT, AND UNDER SECTION 7(A)(3) OF ARTICLE VIII <--
11 OF THE CONSTITUTION OF PENNSYLVANIA, THE ISSUING OFFICIALS
12 ARE AUTHORIZED AND DIRECTED TO BORROW OVER A THREE-YEAR <--
13 PERIOD,, ON THE CREDIT OF THE COMMONWEALTH, MONEY NOT
14 EXCEEDING IN THE AGGREGATE THE SUM OF $250,000,000, NOT
15 INCLUDING MONEY BORROWED TO REFUND OUTSTANDING BONDS, NOTES
16 OR REPLACEMENT NOTES, AS MAY BE FOUND NECESSARY TO CARRY OUT
17 THE PURPOSES OF THIS CHAPTER.
18 (2) AS EVIDENCE OF THE INDEBTEDNESS AUTHORIZED IN THIS
19 CHAPTER, GENERAL OBLIGATION BONDS OF THE COMMONWEALTH SHALL
20 BE ISSUED TO PROVIDE MONEY NECESSARY TO CARRY OUT THE
21 PURPOSES OF THIS CHAPTER. THE ISSUING OFFICIALS SHALL DIRECT
22 THE FOLLOWING:
23 (I) TOTAL PRINCIPAL AMOUNT. <--
24 (II) FORM.
25 (III) DENOMINATION.
26 (IV) TERMS AND CONDITIONS OF:
27 (A) ISSUE;
28 (B) REDEMPTION AND MATURITY;
29 (C) RATE OF INTEREST; AND
30 (D) TIME OF PAYMENT OF INTEREST, EXCEPT THAT THE
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1 LATEST STATED MATURITY DATE SHALL NOT EXCEED 20 YEARS
2 FROM THE DATE OF THE FIRST OBLIGATION ISSUED TO
3 EVIDENCE THE DEBT.
4 (3) ALL BONDS AND NOTES ISSUED UNDER THE AUTHORITY OF
5 THIS CHAPTER SHALL BEAR FACSIMILE SIGNATURES OF THE ISSUING
6 OFFICIALS AND A FACSIMILE OF THE GREAT SEAL OF THE
7 COMMONWEALTH AND SHALL BE COUNTERSIGNED BY AN AUTHORIZED
8 OFFICER OF AN AUTHORIZED LOAN AND TRANSFER AGENT OF THE
9 COMMONWEALTH.
10 (4) ALL BONDS AND NOTES ISSUED IN ACCORDANCE WITH THIS
11 CHAPTER SHALL BE DIRECT OBLIGATIONS OF THE COMMONWEALTH. THE
12 FULL FAITH AND CREDIT OF THE COMMONWEALTH ARE PLEDGED FOR THE
13 PAYMENT OF THE INTEREST ON THE BONDS AND NOTES, AS IT BECOMES
14 DUE, AND THE PAYMENT OF THE PRINCIPAL AT MATURITY. THE
15 PRINCIPAL OF AND INTEREST ON THE BONDS AND NOTES SHALL BE
16 PAYABLE IN LAWFUL MONEY OF THE UNITED STATES.
17 (5) ALL BONDS AND NOTES ISSUED UNDER THIS CHAPTER SHALL
18 BE:
19 (I) EXEMPT FROM TAXATION FOR STATE AND LOCAL
20 PURPOSES; AND
21 (II) ELIGIBLE FOR TAX-EXEMPT BOND FUNDING UNDER
22 EXISTING FEDERAL LAW.
23 (6) THE BONDS MAY BE ISSUED AS COUPON BONDS OR
24 REGISTERED AS TO BOTH PRINCIPAL AND INTEREST AS THE ISSUING
25 OFFICIALS DETERMINE. IF INTEREST COUPONS ARE ATTACHED, THEY
26 SHALL CONTAIN THE FACSIMILE SIGNATURE OF THE STATE TREASURER.
27 (7) THE ISSUING OFFICIALS SHALL PROVIDE FOR THE
28 AMORTIZATION OF THE BONDS IN SUBSTANTIAL AND REGULAR AMOUNTS
29 OVER THE TERM OF THE DEBT SO THAT THE BONDS OF EACH ISSUE
30 SHALL MATURE WITHIN A PERIOD NOT TO EXCEED THE APPROPRIATE
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1 AMORTIZATION PERIOD AS SPECIFIED BY THE ISSUING OFFICIALS,
2 BUT IN NO CASE IN EXCESS OF 20 YEARS. THE FIRST RETIREMENT OF
3 PRINCIPAL SHALL BE STATED TO MATURE PRIOR TO THE EXPIRATION
4 OF A PERIOD OF TIME EQUAL TO ONE-TENTH OF THE TIME FROM THE
5 DATE OF THE FIRST OBLIGATION ISSUED TO EVIDENCE THE DEBT TO
6 THE DATE OF THE EXPIRATION OF THE TERM OF THE DEBT.
7 RETIREMENTS OF PRINCIPAL SHALL BE REGULAR AND SUBSTANTIAL IF
8 MADE IN ANNUAL OR SEMIANNUAL AMOUNTS, WHETHER BY STATED
9 SERIAL MATURITIES OR BY MANDATORY SINKING FUND RETIREMENTS.
10 (8) THE ISSUING OFFICIALS ARE AUTHORIZED TO PROVIDE BY
11 RESOLUTION FOR THE ISSUANCE OF REFUNDING BONDS FOR THE
12 PURPOSE OF REFUNDING DEBT ISSUED UNDER THIS CHAPTER AND THEN
13 OUTSTANDING, EITHER BY VOLUNTARY EXCHANGE WITH THE HOLDERS OF
14 THE OUTSTANDING DEBT OR BY PROVIDING FUNDS TO REDEEM AND
15 RETIRE THE OUTSTANDING DEBT WITH ACCRUED INTEREST, ANY
16 PREMIUM PAYABLE ON THEM AND THE COSTS OF ISSUANCE AND <--
17 RETIREMENT OF THE DEBT, AT MATURITY OR AT ANY CALL DATE. THE
18 ISSUANCE OF THE REFUNDING BONDS, THE MATURITIES AND OTHER
19 DETAILS OF THE REFUNDING BONDS, THE RIGHTS OF THE HOLDERS OF
20 THE REFUNDING BONDS AND THE DUTIES OF THE ISSUING OFFICIALS
21 IN RESPECT TO THE REFUNDING BONDS SHALL BE GOVERNED BY THE
22 APPLICABLE PROVISIONS OF THIS CHAPTER. REFUNDING BONDS, WHICH
23 ARE NOT SUBJECT TO THE AGGREGATE LIMITATION OF $250,000,000
24 OF DEBT TO BE ISSUED PURSUANT TO THIS CHAPTER, MAY BE ISSUED
25 BY THE ISSUING OFFICIALS TO REFUND DEBT ORIGINALLY ISSUED OR
26 TO REFUND BONDS PREVIOUSLY ISSUED FOR REFUNDING PURPOSES.
27 (9) IF AN ACTION IS TO BE TAKEN OR A DECISION IS TO BE
28 MADE BY THE ISSUING OFFICIALS AND THE THREE OFFICERS ARE NOT
29 ABLE UNANIMOUSLY TO AGREE, THE ACTION OR DECISION OF THE
30 GOVERNOR AND EITHER THE AUDITOR GENERAL OR THE STATE
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1 TREASURER SHALL BE BINDING AND FINAL.
2 (B) SALE OF BONDS.--
3 (1) IF BONDS ARE ISSUED, THE FOLLOWING APPLY:
4 (I) BONDS SHALL BE OFFERED FOR SALE AT NOT LESS THAN
5 98% OF THE PRINCIPAL AMOUNT AND ACCRUED INTEREST.
6 (II) BONDS SHALL BE SOLD BY THE ISSUING OFFICIALS TO
7 THE HIGHEST AND BEST BIDDER AFTER PUBLIC ADVERTISEMENT ON
8 THE TERMS AND CONDITIONS AND UPON OPEN COMPETITIVE
9 BIDDING AS THE ISSUING OFFICIALS DIRECT. THE MANNER AND
10 CHARACTER OF THE ADVERTISEMENT AND THE TIME OF
11 ADVERTISING SHALL BE PRESCRIBED BY THE ISSUING OFFICIALS.
12 (III) NO COMMISSION SHALL BE ALLOWED OR PAID FOR THE
13 SALE OF ANY BONDS ISSUED UNDER THE AUTHORITY OF THIS
14 CHAPTER.
15 (2) ANY PORTION OF ANY BOND ISSUE OFFERED AND NOT SOLD
16 OR SUBSCRIBED FOR AT PUBLIC SALE MAY BE DISPOSED OF BY
17 PRIVATE SALE BY THE ISSUING OFFICIALS IN A MANNER AND AT A
18 PRICE, NOT LESS THAN 98% OF THE PRINCIPAL AMOUNT AND ACCRUED
19 INTEREST, AS THE GOVERNOR DIRECTS. NO COMMISSION SHALL BE
20 ALLOWED OR PAID FOR THE SALE OF ANY BONDS ISSUED UNDER THE
21 AUTHORITY OF THIS CHAPTER.
22 (3) THE BONDS OF EACH ISSUE SHALL CONSTITUTE A SEPARATE
23 SERIES TO BE DESIGNATED BY THE ISSUING OFFICIALS OR MAY BE
24 COMBINED FOR SALE AS ONE SERIES WITH OTHER GENERAL OBLIGATION
25 BONDS OF THE COMMONWEALTH.
26 (4) UNTIL PERMANENT BONDS CAN BE PREPARED, THE ISSUING
27 OFFICIALS MAY ISSUE, IN LIEU OF PERMANENT BONDS, TEMPORARY
28 BONDS IN A FORM AND WITH PRIVILEGES AS TO REGISTRATION AND
29 EXCHANGE FOR PERMANENT BONDS AS DETERMINED BY THE ISSUING
30 OFFICIALS.
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1 (5) THE PROCEEDS REALIZED FROM THE SALE OF BONDS AND
2 NOTES, EXCEPT REFUNDING BONDS AND REPLACEMENT NOTES, UNDER
3 THIS CHAPTER SHALL BE PAID INTO THE FUND AND ARE SPECIFICALLY
4 DEDICATED TO THE PURPOSES OF THIS CHAPTER. THE PROCEEDS SHALL
5 BE PAID BY THE STATE TREASURER PERIODICALLY TO THE DEPARTMENT
6 AT TIMES AND IN AMOUNTS AS NECESSARY TO SATISFY THE FUNDING
7 NEEDS OF THE DEPARTMENT UNDER THIS CHAPTER. THE PROCEEDS OF
8 THE SALE OF REFUNDING BONDS AND REPLACEMENT NOTES SHALL BE
9 PAID TO THE STATE TREASURER AND APPLIED TO THE PAYMENT OF
10 PRINCIPAL, ANY ACCRUED INTEREST AND PREMIUM, AND COST OF
11 REDEMPTION, OF THE BONDS AND NOTES FOR WHICH THE OBLIGATIONS
12 HAVE BEEN ISSUED.
13 (6) PENDING THEIR APPLICATION FOR THE PURPOSES
14 AUTHORIZED, MONEY HELD OR DEPOSITED BY THE STATE TREASURER
15 MAY BE INVESTED OR REINVESTED AS ARE OTHER FUNDS IN THE
16 CUSTODY OF THE STATE TREASURER IN THE MANNER PROVIDED BY LAW.
17 ALL EARNINGS RECEIVED FROM THE INVESTMENT OR DEPOSIT OF THE
18 FUNDS SHALL BE PAID INTO THE STATE TREASURY TO THE CREDIT OF
19 THE FUND.
20 (7) THE AUDITOR GENERAL SHALL PREPARE THE NECESSARY
21 REGISTRY BOOK TO BE KEPT IN THE OFFICE OF THE AUTHORIZED LOAN
22 AND TRANSFER AGENT OF THE COMMONWEALTH FOR THE REGISTRATION
23 OF BONDS, AT THE REQUEST OF OWNERS OF THE BONDS, ACCORDING TO
24 THE TERMS AND CONDITIONS OF ISSUE DIRECTED BY THE ISSUING
25 OFFICIALS.
26 (8) THERE IS HEREBY APPROPRIATED TO THE STATE TREASURER
27 FROM THE FUND AS MUCH MONEY AS MAY BE NECESSARY FOR ALL COSTS
28 AND EXPENSES IN CONNECTION WITH THE ISSUE OF AND SALE AND
29 REGISTRATION OF THE BONDS AND NOTES IN CONNECTION WITH THIS
30 CHAPTER AND THE PAYMENT OF INTEREST ARBITRAGE REBATES. OR <--
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1 PROCEEDS OF THE BONDS AND NOTES.
2 (C) TEMPORARY FINANCING AUTHORIZATION.--
3 (1) PENDING THE ISSUANCE OF BONDS OF THE COMMONWEALTH AS
4 AUTHORIZED, THE ISSUING OFFICIALS ARE AUTHORIZED, IN
5 ACCORDANCE WITH THIS CHAPTER AND ON THE CREDIT OF THE
6 COMMONWEALTH, TO MAKE TEMPORARY BORROWINGS NOT TO EXCEED ONE
7 YEAR IN ANTICIPATION OF THE ISSUE OF BONDS IN ORDER TO
8 PROVIDE FUNDS IN AMOUNTS AS DEEMED ADVISABLE PRIOR TO THE
9 ISSUE OF BONDS. IN ORDER TO PROVIDE FOR AND IN CONNECTION
10 WITH ANY TEMPORARY BORROWING, THE ISSUING OFFICIALS ARE
11 AUTHORIZED IN THE NAME AND ON BEHALF OF THE COMMONWEALTH TO
12 ENTER INTO PURCHASE, LOAN OR CREDIT AGREEMENT OR OTHER
13 AGREEMENT WITH ANY BANK OR TRUST COMPANY, OTHER LENDING
14 INSTITUTION, INVESTMENT BANKING FIRM OR PERSON IN THE UNITED
15 STATES HAVING POWER TO ENTER INTO THE AGREEMENT. THE
16 AGREEMENT MAY CONTAIN PROVISIONS NOT INCONSISTENT WITH THIS
17 CHAPTER AS AUTHORIZED BY THE ISSUING OFFICIALS.
18 (2) TEMPORARY BORROWINGS MADE UNDER THIS SUBSECTION
19 SHALL BE EVIDENCED BY NOTES OF THE COMMONWEALTH. THE ISSUING
20 OFFICIALS SHALL AUTHORIZE AND DIRECT, IN ACCORDANCE WITH THIS
21 CHAPTER, ALL OF THE FOLLOWING:
22 (I) AMOUNT, NOT EXCEEDING IN THE AGGREGATE THE
23 APPLICABLE STATUTORY AND CONSTITUTIONAL DEBT LIMITATION. <--
24 (II) FORM.
25 (III) DENOMINATION.
26 (IV) TERMS AND CONDITIONS OF:
27 (A) SALE AND ISSUE;
28 (B) PREPAYMENT OR REDEMPTION AND MATURITY;
29 (C) RATE OF INTEREST; AND
30 (D) TIME OF PAYMENT OF INTEREST.
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1 (3) AUTHORIZATION AND DIRECTION UNDER PARAGRAPH (2) MAY
2 PROVIDE FOR THE SUBSEQUENT ISSUANCE OF REPLACEMENT NOTES TO
3 REFUND OUTSTANDING NOTES OR REPLACEMENT NOTES. REPLACEMENT
4 NOTES SHALL EVIDENCE BORROWING AND MAY SPECIFY OTHER TERMS
5 AND CONDITIONS WITH RESPECT TO THE NOTES AND REPLACEMENT
6 NOTES AUTHORIZED FOR ISSUANCE AS THE ISSUING OFFICIALS
7 DETERMINE AND DIRECT.
8 (4) IF THE AUTHORIZATION AND DIRECTION OF THE ISSUING
9 OFFICIALS PROVIDE FOR THE ISSUANCE OF REPLACEMENT NOTES, THE
10 ISSUING OFFICIALS ARE AUTHORIZED IN THE NAME AND ON BEHALF OF
11 THE COMMONWEALTH TO ISSUE, ENTER INTO OR AUTHORIZE AND DIRECT
12 THE STATE TREASURER TO ENTER INTO AN AGREEMENT WITH ANY BANK,
13 TRUST COMPANY, INVESTMENT BANKING FIRM OR OTHER INSTITUTION
14 OR PERSON IN THE UNITED STATES HAVING THE POWER TO ENTER INTO
15 THE AGREEMENT:
16 (I) TO PURCHASE OR UNDERWRITE AN ISSUE OR SERIES OF
17 ISSUES OF NOTES.
18 (II) TO CREDIT; TO ENTER INTO ANY PURCHASE, LOAN OR
19 CREDIT AGREEMENT; TO DRAW MONEY PURSUANT TO THE AGREEMENT
20 ON THE TERMS AND CONDITIONS SET FORTH IN THE AGREEMENT;
21 AND TO ISSUE NOTES AS EVIDENCE OF BORROWINGS MADE UNDER
22 THE AGREEMENT.
23 (III) TO APPOINT AN ISSUING AND PAYING AGENT WITH
24 RESPECT TO NOTES.
25 (IV) TO DO ALL ACTS NECESSARY OR APPROPRIATE TO
26 PROVIDE FOR THE PAYMENT, WHEN DUE, OF THE INTEREST ON AND
27 THE PRINCIPAL OF THE NOTES.
28 (5) AN AGREEMENT UNDER PARAGRAPH (4) MAY PROVIDE FOR THE
29 COMPENSATION OF PURCHASERS OR UNDERWRITERS OF NOTES OR
30 REPLACEMENT NOTES BY DISCOUNTING THE PURCHASE PRICE OF THE
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1 NOTES OR BY PAYMENT OF A FIXED FEE OR COMMISSION AT THE TIME
2 OF THEIR ISSUANCE. ALL OTHER COSTS AND EXPENSES, INCLUDING
3 FEES FOR AGREEMENTS RELATED TO THE NOTES, ISSUING AND PAYING
4 AGENT COSTS AND COSTS AND EXPENSES OF ISSUANCE, MAY BE PAID
5 FROM THE PROCEEDS OF THE NOTES.
6 (6) IF THE AUTHORIZATION AND DIRECTION OF THE ISSUING
7 OFFICIALS PROVIDE FOR THE ISSUANCE OF REPLACEMENT NOTES, THE
8 STATE TREASURER, AT OR PRIOR TO THE TIME OF DELIVERY OF THESE
9 NOTES OR REPLACEMENT NOTES, SHALL, SUBJECT TO THE
10 AUTHORIZATION AND DIRECTION OF THE ISSUING OFFICIALS, DO ALL
11 OF THE FOLLOWING:
12 (I) DETERMINE THE:
13 (A) PRINCIPAL AMOUNTS;
14 (B) DATES OF ISSUE;
15 (C) INTEREST RATE OR PROCEDURE FOR ESTABLISHING
16 INTEREST RATES;
17 (D) RATES OF DISCOUNT;
18 (E) DENOMINATION; AND
19 (F) OTHER TERMS AND CONDITIONS RELATING TO
20 ISSUANCE.
21 (II) PERFORM ALL ACTS AND THINGS NECESSARY TO PAY OR
22 CAUSE TO BE PAID, WHEN DUE, ALL PRINCIPAL OF AND INTEREST
23 ON THE NOTES BEING REFUNDED BY REPLACEMENT NOTES AND TO
24 ASSURE THAT THE PAYMENT MAY DRAW UPON ANY MONEY AVAILABLE
25 FOR THAT PURPOSE PURSUANT TO A PURCHASE, LOAN OR CREDIT
26 AGREEMENT ESTABLISHED WITH RESPECT TO THE NOTES.
27 (7) OUTSTANDING NOTES EVIDENCING THE BORROWINGS MAY BE
28 FUNDED AND RETIRED BY THE ISSUANCE AND SALE OF THE BONDS OF
29 THE COMMONWEALTH AS AUTHORIZED IN THIS PARAGRAPH. THE
30 REFUNDING BONDS SHALL BE ISSUED AND SOLD NOT LATER THAN A
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1 DATE ONE YEAR AFTER THE DATE OF ISSUANCE OF THE FIRST NOTES
2 EVIDENCING THE BORROWING TO THE EXTENT THAT PAYMENT OF THE
3 NOTES HAS NOT OTHERWISE BEEN MADE OR PROVIDED FOR BY SOURCES
4 OTHER THAN PROCEEDS OF REPLACEMENT NOTES.
5 (8) THE PROCEEDS OF ALL TEMPORARY BORROWING SHALL BE
6 PAID TO THE STATE TREASURER TO BE HELD AND DISPOSED OF IN
7 ACCORDANCE WITH THIS CHAPTER.
8 (D) DEBT RETIREMENT.--
9 (1) ALL BONDS ISSUED UNDER THE AUTHORITY OF THIS CHAPTER
10 SHALL BE REDEEMED AT MATURITY, TOGETHER WITH ALL INTEREST
11 DUE. PRINCIPAL AND INTEREST PAYMENTS SHALL BE PAID FROM THE
12 SINKING FUND. FOR THE SPECIFIC PURPOSE OF REDEEMING THE BONDS
13 AT MATURITY AND PAYING ALL INTEREST ON THE BONDS IN
14 ACCORDANCE WITH THE INFORMATION RECEIVED FROM THE GOVERNOR,
15 THE GENERAL ASSEMBLY SHALL APPROPRIATE MONEY TO THE SINKING <--
16 FUND FOR THE PAYMENT OF INTEREST ON THE BONDS AND NOTES AND
17 THE PRINCIPAL OF THE BONDS AND NOTES AT MATURITY. ALL MONEY
18 PAID INTO THE SINKING FUND AND ALL OF THE MONEY NOT NECESSARY
19 TO PAY ACCRUING INTEREST SHALL BE INVESTED BY THE STATE
20 TREASURER IN SECURITIES AS ARE PROVIDED BY LAW FOR THE
21 INVESTMENT OF THE SINKING FUNDS OF THE COMMONWEALTH.
22 (2) THE STATE TREASURER SHALL DETERMINE AND REPORT TO
23 THE SECRETARY OF THE BUDGET BY NOVEMBER 1 OF EACH YEAR THE
24 AMOUNT OF MONEY NECESSARY FOR THE PAYMENT OF ANY INTEREST ON
25 OUTSTANDING OBLIGATIONS AND THE PRINCIPAL OF THE OBLIGATIONS
26 FOR THE FOLLOWING FISCAL YEAR AND THE TIMES AND AMOUNTS OF
27 THE PAYMENTS. THE GOVERNOR SHALL INCLUDE IN EVERY BUDGET
28 SUBMITTED TO THE GENERAL ASSEMBLY FULL INFORMATION RELATING
29 TO THE ISSUANCE OF BONDS AND NOTES UNDER THIS CHAPTER AND THE
30 STATUS OF THE FUND AND THE SINKING FUND FOR THE PAYMENT OF
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1 INTEREST ON THE BONDS AND NOTES AND THE PRINCIPAL OF THE
2 BONDS AND NOTES AT MATURITY.
3 (3) THE GENERAL ASSEMBLY SHALL APPROPRIATE FOR DEPOSIT
4 INTO THE SINKING FUND AN AMOUNT EQUAL TO THE SUM NECESSARY TO
5 MEET REPAYMENT OBLIGATIONS FOR PRINCIPAL AND INTEREST.
6 (E) DEFINITION.--AS USED IN THIS SECTION, THE TERM "ISSUING
7 OFFICIALS" MEANS THE GOVERNOR, THE AUDITOR GENERAL AND THE STATE
8 TREASURER.
9 Section 2. Section 1504 of Title 64, added April 1, 2004 <--
10 (P.L.163, No.22), is amended by adding a definition to read:
11 § 1504. Definitions.
12 The following words and phrases when used in this chapter
13 shall have the meaning given to them in this section unless the
14 context clearly indicates otherwise:
15 * * *
16 "Investor-owned water or wastewater enterprise." A nonpublic
17 entity which supplies water or provides wastewater services to
18 the public for a fee.
19 * * *
20 SECTION 3. SECTION 1543(C) OF TITLE 64, ADDED APRIL 1, 2004 <--
21 (P.L.163, NO.22), IS AMENDED TO READ:
22 § 1543. INDEBTEDNESS.
23 * * *
24 (C) FISCAL YEAR LIMITATIONS.--
25 (1) EXCEPT AS PROVIDED IN SUBSECTION (D) AND PARAGRAPHS
26 (2), (3) AND (4), THE AGGREGATE AMOUNT OF INDEBTEDNESS
27 INCURRED BY THE AUTHORITY, INCLUDING THROUGH THE ISSUANCE OF
28 BONDS, MAY NOT EXCEED $250,000,000 REDUCED BY THE AGGREGATE
29 AMOUNT OF COMMONWEALTH INDEBTEDNESS INCURRED [AS A RESULT OF
30 THE ACT OF FEBRUARY 12, 2004 (P.L.72, NO.10), KNOWN AS THE
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1 WATER AND WASTEWATER TREATMENT PROJECT BOND ACT] UNDER 12
2 PA.C.S. CH. 39 (RELATING TO WATER SUPPLY AND WASTEWATER
3 INFRASTRUCTURE CAPITALIZATION).
4 (2) EXCEPT AS PROVIDED IN SUBSECTION (D) AND PARAGRAPHS
5 (3) AND (4) AND UPON ADOPTION OF A RESOLUTION UNDER
6 SUBSECTION (F)(1), THE AGGREGATE AMOUNT OF INDEBTEDNESS
7 INCURRED BY THE AUTHORITY, INCLUDING THROUGH THE ISSUANCE OF
8 BONDS, MAY NOT EXCEED $500,000,000 REDUCED BY THE AGGREGATE
9 AMOUNT OF COMMONWEALTH INDEBTEDNESS INCURRED [AS A RESULT OF
10 THE WATER AND WASTEWATER TREATMENT PROJECT BOND ACT] UNDER 12
11 PA.C.S. CH. 39.
12 (3) EXCEPT AS PROVIDED IN SUBSECTION (D) AND PARAGRAPH
13 (4) AND UPON ADOPTION OF A RESOLUTION UNDER SUBSECTION
14 (F)(2), THE AGGREGATE AMOUNT OF INDEBTEDNESS INCURRED BY THE
15 AUTHORITY, INCLUDING THROUGH THE ISSUANCE OF BONDS, MAY NOT
16 EXCEED $750,000,000 REDUCED BY THE AGGREGATE AMOUNT OF
17 COMMONWEALTH INDEBTEDNESS INCURRED [AS A RESULT OF THE WATER
18 AND WASTEWATER TREATMENT PROJECT BOND ACT] UNDER 12 PA.C.S.
19 CH. 39.
20 (4) EXCEPT AS PROVIDED IN SUBSECTION (D) AND UPON
21 ADOPTION OF A RESOLUTION UNDER SUBSECTION (F)(3), THE
22 AGGREGATE AMOUNT OF INDEBTEDNESS INCURRED BY THE AUTHORITY,
23 INCLUDING THROUGH THE ISSUANCE OF BONDS, MAY NOT EXCEED
24 $1,000,000,000 REDUCED BY THE AGGREGATE AMOUNT OF
25 COMMONWEALTH INDEBTEDNESS INCURRED [AS A RESULT OF THE WATER
26 AND WASTEWATER TREATMENT PROJECT BOND ACT] UNDER 12 PA.C.S.
27 CH. 39.
28 * * *
29 Section 3 4. Title 64 is amended by adding a section to <--
30 read:
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1 § 1558. Water Supply and Wastewater Infrastructure Program.
2 (a) Establishment.--There is established a program to be
3 known as the Water Supply and Wastewater Infrastructure Program.
4 The program shall provide financial assistance in the form of
5 single-year or multiyear grants to municipalities and municipal
6 authorities and in the form of loans to municipalities,
7 municipal authorities, industrial development corporations and
8 investor-owned water or wastewater enterprises for projects
9 which, when completed, construct, expand or improve water and
10 wastewater infrastructure which is related to economic <--
11 development.
12 (b) Application.--A municipality, a municipal authority, an
13 industrial development corporation or an investor-owned water or
14 wastewater enterprise may submit an application to the authority
15 requesting financial assistance for a project. The application
16 must be on the form required by the board and must include or
17 demonstrate all of the following:
18 (1) The name and address of the applicant.
19 (2) A statement of the type and amount of financial
20 assistance sought. If the applicant is requesting financial
21 assistance in the form of a grant, the request may not exceed
22 75% of the cost of the project.
23 (3) A statement of the project, including a detailed
24 statement of the cost of the project.
25 (4) A financial commitment from a responsible source for
26 any cost of the project in excess of the amount requested. If
27 the applicant is requesting financial assistance in the form
28 of a grant from the department, the financial commitment may
29 not be in the form of a grant from a Commonwealth agency.
30 (5) A firm commitment from the project user to use the
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1 project upon completion.
2 (6) Proof that the applicant has secured planning and
3 permit approvals for the project from the Department of
4 Environmental Protection.
5 (7) DOCUMENTATION THAT THE PROJECT MEETS AT LEAST ONE OF <--
6 THE FOLLOWING CRITERIA:
7 (I) THE PROJECT WILL REPAIR OR REHABILITATE EXISTING
8 SEWER AND WATER SYSTEMS THAT ARE UNSAFE OR UNRELIABLE AND
9 THAT THREATEN PUBLIC HEALTH AND WATER QUALITY.
10 (II) THE PROJECT WILL ELIMINATE EXISTING COMBINED
11 SEWER OVERFLOW AND SANITARY SEWER OVERFLOW PROBLEMS WHILE
12 ENSURING THAT ALL COMBINED AND SANITARY SEWAGE DISCHARGES
13 RECEIVE AT LEAST SECONDARY SEWAGE TREATMENT. COMPLY WITH <--
14 FEDERAL AND STATE REQUIREMENTS PURSUANT TO THE FEDERAL
15 WATER POLLUTION CONTROL ACT (62 STAT. 1155, 33 U.S.C. §
16 1251 ET SEQ.) AND THE ACT OF JUNE 22, 1937 (P.L.1987,
17 NO.394), KNOWN AS THE CLEAN STREAMS LAW.
18 (III) THE PROJECT WILL PROVIDE SUPPORT FOR
19 ALTERNATIVE APPROACHES TO ADDRESS COMBINED SEWER OVERFLOW
20 AND SANITARY SEWER OVERFLOW PROBLEMS, INCLUDING
21 DISTRIBUTED STORM WATER AND DECENTRALIZED WASTEWATER
22 TREATMENT.
23 (IV) THE PROJECT WILL REPAIR, REHABILITATE OR
24 OTHERWISE USE IN-PLACE SURPLUS CAPACITY FOR ECONOMIC
25 DEVELOPMENT IN EXISTING COMMUNITIES THAT ARE CURRENTLY
26 SERVED BY EXISTING SEWER AND WATER SYSTEMS.
27 (V) THE PROJECT WILL CONSTRUCT SEWER OR WATER
28 SYSTEMS INFRASTRUCTURES WHERE THERE ARE COMPELLING PUBLIC <--
29 HEALTH OR ENVIRONMENTAL ISSUES OR AN ECONOMIC DEVELOPMENT <--
30 PROJECT THAT REDEVELOPS, REUSES OR REVITALIZES PREVIOUSLY <--
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1 DEVELOPED LAND AND CAN ONLY BE RESOLVED BY CONSTRUCTING
2 SUCH SYSTEMS. SUCH SYSTEMS INFRASTRUCTURES. SUCH <--
3 INFRASTRUCTURES MUST BE GENERALLY CONSISTENT WITH
4 APPLICABLE MUNICIPAL PLANS UNDER THE ACT OF JANUARY 24,
5 1966 (1965 P.L.1535, NO.537), KNOWN AS THE PENNSYLVANIA
6 SEWAGE FACILITIES ACT, AND COUNTY AND LOCAL COMPREHENSIVE
7 PLANS.
8 (VI) THE PROJECT WILL BE DESIGNED, INSTALLED AND <--
9 OPERATED FOR PURPOSES THAT BENEFIT THE ENVIRONMENT OR
10 IMPROVE PUBLIC HEALTH INCLUDING THE DESIGN, INSTALLATION
11 AND OPERATION OF NUTRIENT REDUCTION TECHNOLOGY AT
12 MUNICIPAL WASTEWATER TREATMENT PLANTS THAT CONTRIBUTE TO
13 THE IMPAIRMENT OF LOCAL OR DOWNSTREAM WATER QUALITY OR
14 IMPACT LIVING RESOURCES OR PUBLIC HEALTH.
15 (7) (8) Any other information required by the board. <--
16 (c) Review and approval of grant applications.--
17 (1) If an applicant is requesting financial assistance
18 in the form of a grant, the authority, in conjunction with
19 the Department of Environmental Protection, shall review the
20 application to determine all of the following:
21 (i) That the applicant is not an investor-owned <--
22 water or wastewater enterprise.
23 (I) THAT THE APPLICANT IS NOT: <--
24 (A) AN INVESTOR-OWNED WATER OR WASTEWATER
25 ENTERPRISE;
26 (B) AN INDUSTRIAL DEVELOPMENT CORPORATION WHICH
27 IS NOT EXEMPT FROM TAXATION UNDER SECTION 501(C)(3)
28 OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-
29 514, 26 U.S.C. § 501(C)(3)); NOR
30 (C) ACTING THROUGH A WHOLLY OWNED SUBSIDIARY
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1 WHICH IS NOT EXEMPT FROM TAXATION UNDER SECTION
2 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (26
3 U.S.C. § 501(C)(3)).
4 (ii) If the project is related to economic <--
5 development.
6 (iii) (II) If there is a financial commitment for at <--
7 least 25% of the project.
8 (iv) (III) If the source of the financial commitment <--
9 is from a responsible source.
10 (v) (IV) If the municipality or municipal authority <--
11 APPLICANT is firmly committed to using the project upon <--
12 completion.
13 (vi) (V) If the municipality or municipal authority <--
14 APPLICANT has secured planning and permit approvals for <--
15 the project from the Department of Environmental
16 Protection. THE PROJECT MUST BE GENERALLY CONSISTENT WITH <--
17 APPLICABLE MUNICIPAL PLANS UNDER THE PENNSYLVANIA SEWAGE
18 FACILITIES ACT, AND COUNTY AND LOCAL COMPREHENSIVE PLANS.
19 (vii) (VI) That the municipality or municipal <--
20 authority APPLICANT did not receive a grant or loan under <--
21 section 1551 (relating to Business in Our Sites Program)
22 for the project.
23 (viii) (VII) If the municipality or municipal <--
24 authority APPLICANT complied with all other criteria <--
25 established by the board.
26 (2) Upon being satisfied that all program requirements
27 have been met, the authority may approve the application in
28 accordance with all of the following:
29 (i) The grant may not exceed $5,000,000 per project.
30 (ii) Grants under this program shall not exceed
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1 $10,000,000 in the aggregate per municipality or
2 municipal authority.
3 (iii) The aggregate amount of grants awarded under
4 this subsection shall not exceed $125,000,000.
5 (IV) ANY GRANT PROVIDED FOR ECONOMIC DEVELOPMENT <--
6 UNDER THIS SECTION THAT PAYS FOR MORE THAN $500,000 IN
7 INFRASTRUCTURE IMPROVEMENTS, WATER SUPPLY OR WASTEWATER
8 FACILITIES LOCATED ON THE SITE OF A PRIVATE FACILITY THAT
9 HAS OR WILL BE RECEIVING ADDITIONAL ECONOMIC DEVELOPMENT
10 ASSISTANCE OR JOB CREATION TAX CREDITS FROM THE
11 COMMONWEALTH SHALL INCLUDE A CLAWBACK PROVISION THAT
12 ENSURES THAT IF THE FACILITY IS CLOSED OR IS SOLD WITHIN
13 FIVE YEARS AFTER THE APPROVAL OF THE APPLICATION, THE
14 COMMONWEALTH SHALL REQUEST REIMBURSEMENT FOR THE SPECIFIC
15 COST OF THAT INFRASTRUCTURE AND SHALL PLACE A LIEN FOR
16 THAT AMOUNT ON THE REAL PROPERTY OF THAT FACILITY.
17 (3) If the authority approves the application, the
18 authority shall notify the department of the amount approved.
19 (4) Nothing in this subsection shall be construed to
20 prohibit the awarding of grants to municipalities in which
21 the water supply or wastewater services are provided in whole
22 or in part by an investor-owned water or wastewater
23 enterprise.
24 (d) Review and approval of loan applications.--
25 (1) If an applicant is requesting financial assistance
26 in the form of a loan, the authority, in conjunction with the
27 Department of Environmental Protection, shall review the
28 application to determine all of the following:
29 (i) If the project is related to economic <--
30 development.
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1 (ii) (I) IF A FINANCIAL COMMITMENT EXISTS FOR ANY <--
2 COST OF THE PROJECT IN EXCESS OF THE AMOUNT REQUESTED.
3 (III) (II) If the source of the financial commitment <--
4 is from a responsible source.
5 (iv) (III) If the project user is firmly committed <--
6 to using the project upon completion.
7 (v) (IV) If the applicant has secured planning and <--
8 permit approvals for the project from the Department of
9 Environmental Protection. THE PROJECT MUST BE GENERALLY <--
10 CONSISTENT WITH APPLICABLE MUNICIPAL PLANS UNDER THE
11 PENNSYLVANIA SEWAGE FACILITIES ACT, AND COUNTY AND LOCAL
12 COMPREHENSIVE PLANS.
13 (vi) (V) That the applicant did not receive a grant <--
14 or loan under section 1551 for the project.
15 (vii) (VI) If the applicant complied with all other <--
16 criteria established by the board.
17 (2) Upon being satisfied that all program requirements
18 have been met, the board may approve the application in
19 accordance with all of the following:
20 (i) The loan may not exceed $5,000,000 per project.
21 (ii) Loans under this program shall not exceed
22 $10,000,000 in the aggregate per applicant.
23 (3) If the authority approves the application, the
24 authority shall notify the department of the amount approved.
25 (E) REPORT TO GENERAL ASSEMBLY.-- <--
26 (1) THE AUTHORITY SHALL SUBMIT AN ANNUAL REPORT TO THE
27 GENERAL ASSEMBLY NO LATER THAN SEPTEMBER 1 FOLLOWING THE
28 FIRST FISCAL YEAR, OR ANY PORTION THEREOF, IN WHICH THE
29 PROGRAM IS IN EFFECT, AND NO LATER THAN SEPTEMBER 1 FOR ALL
30 SUCCEEDING FISCAL YEARS IN WHICH THE PROGRAM IS IN EFFECT.
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1 THE REPORT SHALL INCLUDE A LIST OF ALL OF THE RECIPIENTS OF
2 GRANTS AND LOANS AWARDED BY THE AUTHORITY IN THE PREVIOUS
3 FISCAL YEAR, THE AMOUNT OF THE GRANTS OR LOANS AWARDED, A
4 DESCRIPTION OF THE PROJECT AND THE PUBLIC PURPOSES THAT IT
5 ADVANCES AND THE DOCUMENTATION SUBMITTED BY THE APPLICANT
6 DEMONSTRATING THAT THE PROJECT MET AT LEAST ONE OF THE
7 CRITERIA OF SUBSECTION (B)(7).
8 (2) THE AUTHORITY SHALL POST A COPY OF THE REPORT TO THE
9 GENERAL ASSEMBLY ON THE WORLD WIDE WEB SITE OF THE DEPARTMENT
10 OF COMMUNITY AND ECONOMIC DEVELOPMENT AND THE WORLD WIDE WEB
11 SITE OF THE DEPARTMENT OF ENVIRONMENTAL PROTECTION. THE
12 REPORTS SHALL REMAIN ON THE SITES UNTIL THE REPORTS FOR THE
13 NEXT YEAR ARE POSTED.
14 Section 4 5. This act shall take effect immediately. <--
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