PRINTER'S NO.  1328

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1125

Session of

2009

  

  

INTRODUCED BY STERN, MILLARD, FLECK, STEVENSON, WATSON, BAKER, GRELL, TALLMAN, PICKETT, TURZAI, CLYMER, GROVE, VULAKOVICH, PHILLIPS, GOODMAN, PEIFER, M. KELLER, FAIRCHILD, MILLER, HUTCHINSON, ROAE, BOBACK, GINGRICH, OBERLANDER, HESS, ROCK, D. COSTA, GEIST, RAPP, SWANGER, EVERETT, BOYD, SONNEY AND ELLIS, MARCH 26, 2009

  

  

REFERRED TO COMMITTEE ON APPROPRIATIONS, MARCH 26, 2009  

  

  

  

AN ACT

  

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Requiring Commonwealth debt impact statements to be issued in

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relation to proposed legislation to increase or add new long-

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term debt authorization.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Short title.

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This act shall be known and may be cited as the Commonwealth

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Debt Impact Statement Act.

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Section 2.  Definitions.

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The following words and phrases when used in this act shall

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have the meanings given to them in this section unless the

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context clearly indicates otherwise:

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"Long-term debt authorization."  The dollar amount of bonds

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or other evidences of indebtedness which can be sold in support

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of a designated purpose of the Commonwealth or of an entity

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created by the Commonwealth other than a political subdivision.

 


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"Secretary."  The Secretary of the Budget of the

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Commonwealth.

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"Statement."  A statement identifying the debt impact on the

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Commonwealth caused by proposed legislation.

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Section 3.  Commonwealth debt impact statements.

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(a)  Scope.--This section applies to a bill introduced in

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either house of the General Assembly which does any of the

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following:

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(1)  Increases or adds new long-term debt authorization.

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(2)  Requires, through appropriation, the use of bond

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financed funds.

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(b)  Nature.--

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(1)  The statement shall be factual in nature and as

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brief and concise as possible.

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(2)  If a bill authorizes the issuance of bonds, all of

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the following apply:

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(i)  The statement shall specify the total principal

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and fixed-rate interest payments if all of the bonds

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authorized are issued. 

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(ii)  The statement shall include:

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(A)  estimated principal and interest payments to

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be made by each fiscal year over all years that the

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proposed bonds would be expected to be outstanding;

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and

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(B)  total principal and interest payments to be

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made by each fiscal year on all other then-

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outstanding bonds of the Commonwealth.

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(3)  If a bill appropriates from bond funds, the

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statement shall provide:

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(i)  a reliable estimate of the impact of the bill on

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the Commonwealth’s debt service obligations;

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(ii)  a description of the estimated useful life and

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intended use of the project; and

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(iii)  maintenance and operating costs associated

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with the project.

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(4)  If a bill would add new or increase existing bond

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authorization levels, the statement shall:

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(i)  assess current outstanding, unissued and retired

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bond authorization levels; and

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(ii)  make reasonable projections of the cost

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associated with the retirement of the additional bonds. 

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(5)  A brief summary or worksheet of computations used in

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arriving at the statement shall be attached.

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(c)  Procedure.--The following procedure applies to a bill

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subject to subsection (a):

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(1)  When the bill is referred to a committee, the

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chairperson of the committee shall forward the bill to the

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secretary.

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(2)  If the bill is amended so as to substantially affect

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the impact of the bill on the Commonwealth’s debt service

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capacity, a member of the house by which the bill is being

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considered may request the secretary to prepare a revised

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statement in relation to the amended bill.

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(3)  Except as set forth in paragraph (4), the secretary

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shall, within seven days of receipt of the bill under

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paragraph (1) or (2):

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(i)  prepare a statement related to the bill; and

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(ii)  furnish a copy of the statement to:

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(A)  the presiding officer of each house;

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(B)  the minority leader of each house;

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(C)  the Secretary of the Senate;

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(D)  the Chief Clerk of the House of

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Representatives;

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(E)  the sponsor of the bill; and

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(F)  a member who made a request under paragraph

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(2). 

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(4)  If, because of the complexity of the measure,

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additional time is required for preparation of the statement,

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the secretary may inform the sponsor of the bill. The sponsor

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may approve an extension of the time period under paragraph

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(3) for up to seven days.

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(5)  The bill shall be held on second reading until the

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statement has been received.

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Section 20.  Effective date.

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This act shall take effect in 30 days.

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