PRINTER'S NO. 1772
No. 1323 Session of 2007
INTRODUCED BY MURT, BELFANTI, BENNINGHOFF, DENLINGER, DePASQUALE, ELLIS, EVERETT, FAIRCHILD, GEIST, GEORGE, GERBER, GIBBONS, GINGRICH, HARPER, HARRIS, HELM, HENNESSEY, HICKERNELL, HORNAMAN, KENNEY, KILLION, KORTZ, LENTZ, LONGIETTI, MAHER, MAHONEY, MAJOR, MANDERINO, MANN, MANTZ, MARSHALL, McGEEHAN, MELIO, MENSCH, MILLARD, R. MILLER, MILNE, MOYER, MUSTIO, MYERS, OLIVER, O'NEILL, PASHINSKI, PEIFER, PERRY, PETRARCA, PICKETT, QUIGLEY, RAPP, REICHLEY, ROAE, SAINATO, SAYLOR, SCAVELLO, SOLOBAY, STABACK, STAIRS, STERN, SWANGER, J. TAYLOR, VEREB, VITALI, VULAKOVICH, SCHRODER, ROSS AND PETRONE, JUNE 5, 2007
REFERRED TO COMMITTEE ON FINANCE, JUNE 5, 2007
AN ACT 1 Amending the act of April 9, 1929 (P.L.343, No.176), entitled, 2 as amended, "An act relating to the finances of the State 3 government; providing for the settlement, assessment, 4 collection, and lien of taxes, bonus, and all other accounts 5 due the Commonwealth, the collection and recovery of fees and 6 other money or property due or belonging to the Commonwealth, 7 or any agency thereof, including escheated property and the 8 proceeds of its sale, the custody and disbursement or other 9 disposition of funds and securities belonging to or in the 10 possession of the Commonwealth, and the settlement of claims 11 against the Commonwealth, the resettlement of accounts and 12 appeals to the courts, refunds of moneys erroneously paid to 13 the Commonwealth, auditing the accounts of the Commonwealth 14 and all agencies thereof, of all public officers collecting 15 moneys payable to the Commonwealth, or any agency thereof, 16 and all receipts of appropriations from the Commonwealth, 17 authorizing the Commonwealth to issue tax anticipation notes 18 to defray current expenses, implementing the provisions of 19 section 7(a) of Article VIII of the Constitution of 20 Pennsylvania authorizing and restricting the incurring of 21 certain debt and imposing penalties; affecting every 22 department, board, commission, and officer of the State 23 government, every political subdivision of the State, and 24 certain officers of such subdivisions, every person, 25 association, and corporation required to pay, assess, or
1 collect taxes, or to make returns or reports under the laws 2 imposing taxes for State purposes, or to pay license fees or 3 other moneys to the Commonwealth, or any agency thereof, 4 every State depository and every debtor or creditor of the 5 Commonwealth," further providing, in Local Government Capital 6 Project Loan Fund provisions, for assistance to 7 municipalities. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 Section 1. Section 1603-D of the act of April 9, 1929 11 (P.L.343, No.176), known as The Fiscal Code, amended or added 12 October 6, 1997 (P.L.387, No.46) and July 5, 2006 (P.L.296, 13 No.66), is amended to read: 14 Section 1603-D. Assistance to Municipalities.--(a) The 15 department is hereby authorized, upon application of a 16 municipality, to make loans to the municipality for the 17 following purposes and in the following amounts: 18 1. Purchasing equipment. The amount of a loan made for 19 purchasing equipment shall not exceed [twenty-five thousand 20 dollars ($25,000)] fifty thousand dollars ($50,000) for any 21 single piece of equipment or fifty per centum of the total cost 22 of the piece of equipment, whichever is less. 23 2. Purchasing, constructing, renovating or rehabilitating 24 facilities. The amount of a loan made for purchasing, 25 constructing, renovating or rehabilitating facilities shall not 26 exceed [fifty thousand dollars ($50,000)] one hundred thousand 27 dollars ($100,000) for any single facility or fifty per centum 28 of the total cost for purchasing, constructing, renovating or 29 rehabilitating the facility, whichever is less. 30 [3. Temporary increase in loan limits. For the fiscal year 31 commencing July 1, 2006, loans issued pursuant to paragraph 1 32 shall not exceed fifty thousand dollars ($50,000) and issued 33 pursuant to paragraph 2 shall not exceed one hundred thousand 20070H1323B1772 - 2 -
1 dollars ($100,000).] 2 (b) Loans made by the department for the purchase of 3 equipment shall be for a period not to exceed the useful life of 4 the equipment and loans made for the purchase, construction, 5 renovation or rehabilitation of facilities shall be for a period 6 of not more than [ten] twenty years. Loans shall be subject to 7 the payment of interest at two per centum per annum and shall be 8 subject to such security as shall be determined by the 9 department. The total amount of interest earned by the 10 investment or reinvestment of all or any part of the principal 11 of any loan shall be returned to the department and transferred 12 to the fund and shall not be credited as payment of principal or 13 interest on the loan. The minimum amount of any loan shall be 14 one thousand dollars ($1,000). The municipality shall comply 15 with the approval requirements of 53 Pa.C.S. Ch. 80 Subch. C 16 (relating to procedure for securing approval of electors). 17 (c) Every application for a loan under this article shall be 18 accompanied by a financial statement of the municipality and a 19 financial plan to show how the loan will be repaid. Every 20 application shall be accompanied by evidence sufficient to show 21 that all costs, except the amount of the loan, will be met by 22 assets or revenues of the municipality, grants or loans from 23 other sources or in-kind contributions or services. 24 (d) Loans under this article shall be used for purchasing 25 equipment and for purchasing, constructing, renovating or 26 rehabilitating facilities and shall not be used for operating 27 expenses or for the refinancing or reduction of any debt or 28 obligation incurred prior to the effective date of this article. 29 (e) Loans made by the department shall be paid from the fund 30 to municipalities in accordance with rules and regulations 20070H1323B1772 - 3 -
1 promulgated by the department. 2 (f) All payments of interest on loans and the principal 3 thereof shall be deposited by the department in the fund. 4 Section 2. This act shall take effect in 60 days. B22L72DMS/20070H1323B1772 - 4 -