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        PRIOR PRINTER'S NO. 255                       PRINTER'S NO. 1629

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 222 Session of 2007


        INTRODUCED BY TANGRETTI, ADOLPH, BEYER, BIANCUCCI, BUXTON,
           CALTAGIRONE, CARROLL, CASORIO, CAUSER, CLYMER, COHEN, DeLUCA,
           EVERETT, FABRIZIO, FRANKEL, FREEMAN, GEORGE, GERGELY,
           GOODMAN, GRELL, GRUCELA, HARHAI, HENNESSEY, HERSHEY, KILLION,
           KOTIK, KULA, MAHONEY, MARKOSEK, MARSICO, MELIO, MILLARD,
           R. MILLER, MUNDY, NAILOR, O'NEILL, PALLONE, PETRARCA,
           PETRONE, PRESTON, PYLE, RAPP, READSHAW, REED, REICHLEY, ROAE,
           RUBLEY, SAINATO, SAYLOR, SOLOBAY, SONNEY, STABACK, STERN,
           SURRA, VEREB, WALKO, WATSON, WOJNAROSKI, DALEY, JAMES,
           SIPTROTH, MURT, HORNAMAN, DENLINGER, MCILVAINE SMITH AND
           BROOKS, FEBRUARY 5, 2007

        AS REPORTED FROM COMMITTEE ON COMMERCE, HOUSE OF
           REPRESENTATIVES, AS AMENDED, MAY 21, 2007

                                     AN ACT

     1  Amending Title 53 (Municipalities Generally) of the Pennsylvania
     2     Consolidated Statutes, providing for a loan program for local
     3     police agencies and emergency medical services organizations
     4     funded by a bond issuance and for the responsibilities of the
     5     Governor's Center for Local Government Services within the
     6     Department of Community and Economic Development;
     7     establishing the Police Agency Loan Fund; and conferring
     8     powers and duties on the Secretary of the Commonwealth and
     9     the Legislative Reference Bureau.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Title 53 of the Pennsylvania Consolidated
    13  Statutes is amended by adding a chapter to read:
    14                             CHAPTER 83
    15              POLICE AGENCY AND EMS ORGANIZATION LOANS
    16  Subchapter


     1     A.  Preliminary Provisions
     2     B.  Administration
     3     C.  Loan Program
     4     D.  Debt
     5     E.  Miscellaneous Provisions
     6                            SUBCHAPTER A
     7                       PRELIMINARY PROVISIONS
     8  Sec.
     9  8301.  Short title of chapter.
    10  8302.  Definitions.
    11  § 8301.  Short title of chapter.
    12     This chapter shall be known and may be cited as the Police
    13  Agency and EMS Organization Loan Act.
    14  § 8302.  Definitions.
    15     The following words and phrases when used in this chapter
    16  shall have the meanings given to them in this section unless the
    17  context clearly indicates otherwise:
    18     "Center."  The Governor's Center for Local Government
    19  Services within the Department of Community and Economic
    20  Development.
    21     "Department."  The Department of Community and Economic
    22  Development of the Commonwealth.
    23     "EMS Organization."  An organization that provides emergency
    24  medical services in this Commonwealth.
    25     "Fund."  The Police Agency Loan Fund established under
    26  section 8312 (relating to Police Agency and EMS Organization
    27  Loan Fund).
    28     "Police agency."  Any of the following:
    29         (1)  A police department of a city, town, township,
    30     borough or home rule municipality which:
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     1             (i)  has police coverage for a minimum of 40 hours
     2         per week; and
     3             (ii)  has had, for the preceding 18 months, police
     4         coverage for a minimum of 40 hours per week.
     5         (2)  A regional police department organized under
     6     Subchapter A of Chapter 23 (relating to intergovernmental
     7     cooperation).
     8         (3)  An office of county detectives that works for a
     9     district attorney.
    10     "Secretary."  The Secretary of the Commonwealth.
    11     "Sinking fund."  The Police Agency and EMS Organization Loan
    12  Sinking Fund established under section 8337 (relating to Police
    13  Agency and EMS Organization Loan Sinking Fund).
    14                            SUBCHAPTER B
    15                           ADMINISTRATION
    16  Sec.
    17  8311.  Center.
    18  8312.  Police Agency and EMS Organization Loan Fund.
    19  § 8311.  Center.
    20     (a)  Fund administration.--The center shall administer the
    21  fund established under section 8312 (relating to Police Agency
    22  and EMS Organization Loan Fund).
    23     (b)  Powers and duties.--The center shall have the following
    24  powers and duties:
    25         (1)  To administer the fund in accordance with section
    26     8312(c).
    27         (2)  To administer Subchapter C (relating to loan
    28     program).
    29         (3)  To collect loans made under section 8322(c)
    30     (relating to loans). This paragraph includes the power to
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     1     institute actions for legal or equitable relief.
     2         (4)  To promulgate regulations to implement this chapter.
     3  § 8312.  Police Agency and EMS Organization Loan Fund.
     4     (a)  Establishment.--The Police Agency and EMS Organization
     5  Loan Fund is established as a separate fund in the State
     6  Treasury.
     7     (b)  Source.--The following are the sources of the fund:
     8         (1)  The proceeds from the sale of bonds under section
     9     8336 (relating to proceeds).
    10         (2)  The proceeds from the repayment of principal and
    11     interest of loans under section 8322(c) (relating to loans).
    12     (c)  Purpose.--The center shall administer the fund to do all
    13  of the following:
    14         (1)  Repay the State Treasurer for the cost of the bond
    15     issue under sections 8333 (relating to sale of bonds), 8334
    16     (relating to refunding bonds) and 8335 (relating to
    17     registration of bonds).
    18         (2)  Make loans under section 8322(c).
    19         (3)  Collect loans under section 8311(b)(3) (relating to
    20     center).
    21         (4)  Administer this chapter. In any fiscal year, the
    22     center may use for administrative costs 1% of the aggregate
    23     debt authorized under section 8331 (relating to authority to
    24     borrow).
    25                            SUBCHAPTER C
    26                            LOAN PROGRAM
    27  Sec.
    28  8321.  Authority.
    29  8322.  Loans.
    30  § 8321.  Authority.
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     1     (a)  Authorization.--The center may make a loan to a
     2  political subdivision for a police agency of the political
     3  subdivision or an EMS organization as necessary for the proper
     4  performance of the police agency's law enforcement duties or the
     5  EMS organization's duties, to do any of the following:
     6         (1)  Purchase, expand, modernize or repair buildings or
     7     portions of buildings which are used exclusively for police
     8     or EMS organization purposes. This paragraph includes police
     9     headquarters, police substations and police maintenance
    10     garages.
    11         (2)  Purchase, maintain or repair equipment.
    12         (3)  Purchase, maintain or repair vehicles.
    13     (b)  Amount.--A loan under subsection (a) for the purchase,
    14  maintenance or repair of buildings shall be for not less than
    15  $5,000 nor more than $200,000. A loan under subsection (a) for
    16  the purchase, maintenance or repair of vehicles or equipment
    17  shall be for not less than $5,000 nor more than $100,000. No
    18  political subdivision may receive loans totaling more than
    19  $300,000 in a five-year period.
    20     (c)  Terms.--
    21         (1)  A loan must be at an interest rate of 2%.
    22         (2)  A loan must be repaid in accordance with the law
    23     applicable to the political subdivision which receives the
    24     loan.
    25         (3)  A loan must have a repayment period as follows:
    26             (i)  For a loan of not more than $15,000, a period of
    27         five years.
    28             (ii)  For a loan of more than $15,000 but not more
    29         than $100,000, a period of ten years.
    30             (iii)  For a loan of more than $100,000, a period of
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     1         15 years.
     2  § 8322.  Loans.
     3     (a)  Application.--A political subdivision or EMS
     4  organization may apply for a loan under section 8321 (relating
     5  to authority) by submitting to the center all of the following:
     6         (1)  Name of the police agency or EMS organization.
     7         (2)  Proposed use of the loan.
     8         (3)  Need for use under paragraph (2).
     9         (4)  Documentation that demonstrates an ability to repay
    10     principal and interest of loan.
    11     (b)  Determination.--
    12         (1)  Within 60 days of receipt of an application under
    13     subsection (a), the center shall make a decision and notify
    14     the political subdivision or EMS organization of the
    15     decision.
    16         (2)  Failure to issue timely notice under paragraph (1)
    17     shall be deemed a denial of the application.
    18         (3)  The provisions of 2 Pa.C.S. Ch. 7 Subch. A (relating
    19     to judicial review of Commonwealth agency action) shall apply
    20     to determinations under this subsection.
    21     (c)  Contracts.--Upon determination of eligibility under
    22  subsection (b), the center shall enter into a loan contract with
    23  the political subdivision or EMS organization.
    24                            SUBCHAPTER D
    25                                DEBT
    26  Sec.
    27  8331.  Authority to borrow.
    28  8332.  Bonds.
    29  8333.  Sale of bonds.
    30  8334.  Refunding bonds.
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     1  8335.  Registration of bonds.
     2  8336.  Proceeds.
     3  8337.  Police Agency and EMS Organization Loan Sinking Fund.
     4  8338.  Referendum.
     5  § 8331.  Authority to borrow.
     6     Pursuant to section 7(a)(3) of Article VIII of the
     7  Constitution of Pennsylvania and the referendum approved by the
     8  electorate under section 8338 (relating to referendum), the
     9  Governor, Auditor General and State Treasurer are authorized and
    10  directed to borrow, on the credit of the Commonwealth, money not
    11  exceeding in the aggregate the sum of $25,000,000 to implement
    12  Subchapter C (relating to loan program), not more than
    13  $5,000,000 of which shall be allocated to loans to EMS
    14  organizations.
    15  § 8332.  Bonds.
    16     (a)  General rule.--As evidence of the indebtedness
    17  authorized under section 8331 (relating to authority to borrow),
    18  general obligation bonds of the Commonwealth shall be issued.
    19  The Governor, Auditor General and State Treasurer shall direct
    20  for each bond the total amount; the form; the denomination; the
    21  terms and conditions of issue, redemption and maturity; rate of
    22  interest; and time of payment of interest. The latest stated
    23  maturity date shall not exceed 30 years from the date of the
    24  bond first issued for each series.
    25     (b)  Signature.--Bonds issued under subsection (a) shall bear
    26  facsimile signatures of the Governor, Auditor General and State
    27  Treasurer and a facsimile of the Great Seal of the Commonwealth
    28  of Pennsylvania and shall be countersigned by two authorized
    29  officers of the authorized loan and transfer agents of the
    30  Commonwealth.
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     1     (c)  Status.--Bonds issued under subsection (a) shall be
     2  direct obligations of the Commonwealth, and the full faith and
     3  credit of the Commonwealth are pledged for the payment of the
     4  interest on the bonds as it becomes due and the payment of the
     5  principal of the bonds at maturity. Bonds issued under
     6  subsection (a) shall be exempt from taxation for State and local
     7  purposes. The principal of and interest on such bonds shall be
     8  payable in lawful money of the United States of America.
     9     (d)  Format.--Bonds issued under subsection (a) may be issued
    10  as coupon bonds or registered as to both principal and interest
    11  as the issuing officials may determine. If interest coupons are
    12  attached, they shall contain the facsimile signature of the
    13  State Treasurer.
    14     (e)  Amortization.--The issuing officials shall provide for
    15  the amortization of the bonds in substantial and regular amounts
    16  over the term of the debt as follows:
    17         (1)  The first retirement of principal shall be stated to
    18     mature prior to the expiration of a period of time equal to
    19     one-tenth of the time from the date of the first obligation
    20     issue to evidence the debt to the date of the expiration of
    21     the term of the debt.
    22         (2)  Retirements of principal shall be regular and
    23     substantial if made in annual or semiannual amounts, whether
    24     by stated serial maturities or by mandatory sinking fund
    25     retirements, computed either in accordance with a level
    26     annual debt service plan, as nearly as may be, or upon the
    27     equal annual maturities plan.
    28     (f)  Processing.--The Governor, the Auditor General and the
    29  State Treasurer shall proceed to have the necessary bonds
    30  prepared and printed. The bonds, as soon as they are prepared
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     1  and printed, shall be deposited with the authorized loan and
     2  transfer agent of the Commonwealth and shall remain there until
     3  sold under section 8333 (relating to sale of bonds).
     4  § 8333.  Sale of bonds.
     5     (a)  Public sale.--Bonds issued under section 8332(a)
     6  (relating to bonds) shall be offered for sale at not less than
     7  98% of the principal amount and accrued interest and shall be
     8  sold by the Governor, Auditor General and State Treasurer to the
     9  highest and best bidder or bidders after public advertisement,
    10  on terms and conditions and upon open competitive bidding, as
    11  the Governor, Auditor General and State Treasurer shall direct.
    12     (b)  Private sale.--Any portion of a bond issue offered under
    13  subsection (a) but not sold or subscribed for may be disposed of
    14  by private sale by the Governor, Auditor General and State
    15  Treasurer, in a manner and at a price not less than 98% of the
    16  principal amount and accrued interest, as the Governor shall
    17  direct. No commission shall be allowed or paid for the sale of
    18  bonds issued under section 8332(a).
    19     (c)  Series.--When bonds are issued, the bonds of each issue
    20  shall constitute a separate series to be designated by the
    21  issuing officials or may be combined for sale as one series with
    22  other general obligation bonds of the Commonwealth.
    23  § 8334.  Refunding bonds.
    24     The Governor, Auditor General and State Treasurer are
    25  authorized to provide, by resolution, for the issuance of
    26  refunding bonds for the purpose of refunding bonds issued under
    27  section 8332(a) (relating to bonds) and outstanding, either by
    28  voluntary exchange with the holders of the outstanding bonds or
    29  by providing funds to redeem and retire the outstanding bonds
    30  with accrued interest and premium payable on the bonds, at
    20070H0222B1629                  - 9 -     

     1  maturity or at a call date. Refunding bonds may be issued by the
     2  Governor, Auditor General and State Treasurer to refund bonds
     3  previously issued under this section for refunding purposes.
     4  Sections 8331 (relating to authority to borrow), 8332 (relating
     5  to bonds) and 8333 (relating to sale of bonds) shall apply to
     6  bonds under this section.
     7  § 8335.  Registration of bonds.
     8     The Auditor General shall prepare the necessary registry book
     9  to be kept in the office of the authorized loan and transfer
    10  agent of the Commonwealth for the registration of bonds issued
    11  under section 8332(a) (relating to bonds), at the request of
    12  bond owners, according to the terms and conditions of issue
    13  directed by the Governor, Auditor General and State Treasurer.
    14  Bonds which are issued without interest coupons attached shall
    15  be registered in the registry books kept by the authorized loan
    16  and transfer agent of the Commonwealth.
    17  § 8336.  Proceeds.
    18     The proceeds realized from the sale of bonds under section
    19  8332(a) (relating to bonds) shall be paid into the fund. The
    20  money shall be paid by the State Treasurer into the fund.
    21  § 8337.  Police Agency and EMS Organization Loan Sinking Fund.
    22     (a)  Establishment.--The Police Agency and EMS Organization
    23  Loan Sinking Fund is established as a separate fund in the State
    24  Treasury.
    25     (b)  Source.--
    26         (1)  By November 1 of each year, the State Treasurer
    27     shall notify the Secretary of the Budget of the amount
    28     necessary for the ensuing fiscal year to redeem, with
    29     interest, bonds issued under section 8332(a) (relating to
    30     bonds).
    20070H0222B1629                 - 10 -     

     1         (2)  The General Assembly shall appropriate the amount of
     2     money necessary to meet repayment obligations under paragraph
     3     (1) for deposit into the Police Agency and EMS Organization
     4     Loan Sinking Fund.
     5  § 8338.  Referendum.
     6     (a)  Question.--
     7         (1)  The question of incurring indebtedness of
     8     $25,000,000 for loans to police agencies and EMS
     9     organizations for the purpose of purchasing, maintaining and
    10     repairing buildings, equipment and vehicles, as necessary for
    11     the proper performance of the police agencies' law
    12     enforcement and EMS organizations' duties, shall be submitted
    13     to the electors at the next primary, municipal or general
    14     election following the effective date of this section. At      <--
    15     least three months prior to the election, the secretary must
    16     publish the question in each county in at least two
    17     newspapers of general circulation in that county.
    18         (2)  The secretary shall certify the question to the
    19     county boards of election to implement paragraph (1).
    20     (b)  Form.--The question shall be in substantially the
    21  following form:
    22         Do you favor the incurring of indebtedness of
    23     $25,000,000, of which $20,000,000 will be for loans to police
    24     agencies and of which $5,000,000 will be for EMS
    25     organizations, for the purpose of purchasing, maintaining and
    26     repairing buildings, equipment and vehicles, as necessary for
    27     the proper performance of the police agencies' law
    28     enforcement and EMS organizations' duties?
    29     (c)  Election.--The election shall be conducted in accordance
    30  with the act of June 3, 1937 (P.L.1333, No.320), known as the
    20070H0222B1629                 - 11 -     

     1  Pennsylvania Election Code, except that the time limits for
     2  advertisement of notice of the election may be waived as to the
     3  question.
     4     (d)  Notice.--If a majority of the electors voting in the
     5  election under subsection (c) vote in the affirmative, the
     6  secretary shall send notice of the vote to the Legislative
     7  Reference Bureau for publication in the Pennsylvania Bulletin.
     8                            SUBCHAPTER E
     9                      MISCELLANEOUS PROVISIONS
    10  Sec.
    11  8341.  Repeals.
    12  § 8341.  Repeals.
    13     All acts and parts of acts are repealed insofar as they are
    14  inconsistent with this chapter.
    15     Section 2.  This act shall take effect as follows:
    16         (1)  The addition of 53 Pa.C.S. § 8338 shall take effect
    17     immediately.
    18         (2)  This section shall take effect immediately.
    19         (3)  The remainder of this act shall take effect on the
    20     date of publication of the notice under section 8338(d).







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