THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BAKER, CAUSER, VULAKOVICH, GILLEN, BOBACK, BOYD, CALTAGIRONE, DeLUCA, EVANKOVICH, J. EVANS, FLECK, GEIST, GOODMAN, GRELL, GROVE, HARRIS, HICKERNELL, HORNAMAN, KAUFFMAN, KILLION, KIRKLAND, KORTZ, KULA, MARSICO, METZGAR, MICOZZIE, MILLER, MILNE, MOUL, PAYNE, PICKETT, PYLE, READSHAW, REICHLEY, SCAVELLO, K. SMITH, SONNEY, J. TAYLOR AND WHITE, JANUARY 31, 2011

REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS, JANUARY 31, 2011  

AN ACT

Amending the act of July 15, 1976 (P.L.1036, No.208), entitled,

as amended, "An act authorizing indebtedness, with the

approval of the electors, for loans to volunteer fire

companies, volunteer ambulance services and volunteer rescue

squads for the purpose of establishing or modernizing

facilities to house fire fighting apparatus equipment,

ambulances, and rescue vehicles, and for purchasing new fire

fighting apparatus equipment, ambulances, and rescue

vehicles, protective and communications equipment, and any

other accessory equipment necessary for the proper

performance of such organizations' duties," further providing

for assistance to volunteer fire companies, ambulance service

and rescue squads.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 4 of the act of July 15, 1976 (P.L.1036,

No.208), known as the Volunteer Fire Company, Ambulance Service

and Rescue Squad Assistance Act, amended June 13, 1980 (P.L.217,

No.65), May 11, 1982 (P.L.407, No.118), July 11, 1990 (P.L.415,

No. 100), October 31, 1995 (P.L.340, No.55), June 25, 1999

(P.L.231, No.32) and February 5, 2004 (P.L.50, No.5), is amended

to read:

Section 4.  Assistance to Volunteer Fire Companies, Ambulance

Service and Rescue Squads.--(a)  The agency is hereby

authorized, upon application of any volunteer fire company,

volunteer ambulance service and volunteer rescue squad, to make

loans to said volunteer companies for the following purposes:

(1)  Establishing or modernizing facilities that house fire

fighting equipment, ambulance or rescue vehicles. The amount of

a loan for establishing or modernizing facilities made to any

one volunteer fire company, ambulance service or rescue squad

shall not exceed 50% of the total cost of the facilities or

modernization or [$200,000] $275,000, whichever is less, and a

notarized financial statement filed under subsection (c) shall

show that the applicant has available 20% of the total cost of

the facilities in unobligated funds. Proceeds of the loan shall

be used only for purposes of structure or land acquisition or

renovation or construction, and shall not be used for payment of

fees for design, planning, preparation of applications, or any

other cost not directly attributable to structure or land

acquisition or renovation or construction.

(2)  Purchasing fire fighting apparatus, ambulances or rescue

vehicles. The amount of a loan made for purchasing fire fighting

apparatus, to any one volunteer fire company shall not exceed

[$100,000] $175,000 for any single fire fighting apparatus

equipment or utility or special service vehicle or heavy duty

rescue vehicle as defined by regulation, or 50% of the total

cost of the equipment or vehicle, whichever is less except for

loans for aerial apparatus as defined by regulation, which shall

not exceed [$150,000] $225,000. The amount of a loan made to any

one volunteer fire company, ambulance service or rescue squad

for any ambulance or light duty rescue vehicle as defined by

regulation shall not exceed [$50,000] $100,000 and for a

watercraft rescue vehicle shall not exceed [$15,000] $30,000 or

50% of the cost of the ambulance or rescue vehicle, whichever is

less, and a notarized financial statement filed under subsection

(c) shall show that the applicant has available 20% of the total

cost of the vehicle in unobligated funds.

(3)  Purchasing protective, accessory or communication

equipment. No volunteer fire company, ambulance service or

rescue squad shall receive a loan for protective, accessory or

communicative equipment more than once in any five-year period.

Each volunteer fire company, ambulance service or rescue squad

may apply for a loan for a mobile and portable radio unit for

each existing serviceable apparatus equipment, ambulance, or

rescue vehicle. Radio equipment obtained through loans under

this act shall be equipped with a frequency or frequencies

licensed by the Federal Communications Commission for fire

fighting or emergency response purpose. A notarized financial

statement shall be filed and loans under this act for the

purchase of protective, accessory or communicative equipment

shall not exceed [$10,000] $20,000.

(4)  Refinancing debt incurred or contracts entered into

after November 4, 1975 and used for the purchase of apparatus

equipment or for the construction or modernization of facilities

or for modification of apparatus equipment in order to comply

with National Fire Protection Association standards.

(5)  Repair or rehabilitation of apparatus equipment. Where

it has been determined that existing apparatus equipment no

longer meets the standards of the National Fire Protection

Association (NFPA), and the repair and/or rehabilitation of such

equipment will bring it in compliance with NFPA standards; loans

for the repair or rehabilitation for a single apparatus

equipment shall not be for less than $1,000 or more than

[$35,000] $50,000 or 80% of the total cost of repair or

rehabilitation whichever is less.

(6)  Purchasing of used fire fighting apparatus, equipment,

used ambulances, used rescue vehicles, used communications

equipment, used accessory equipment or used protective

equipment: Provided, however, That the used vehicles and

equipment shall meet the National Fire Protection Association

(NFPA) standards: And provided further, that loans for the

purchase of a used single apparatus equipment shall not exceed

[$60,000] $75,000 or 80% of the total cost of the equipment,

whichever is less.

Loans under this act may be made for any of the purposes of

this subsection undertaken by a volunteer fire company,

volunteer ambulance service and volunteer rescue squad on or

after November 4, 1975.

(7)  Purchasing Pennsylvania Fire Information Reporting

System (PennFIRS) hardware and software. A volunteer fire

company shall be eligible to apply one time only for a loan of

not more than $2,000 or 75% of the cost of such acquisition,

whichever is less, and with a term not exceeding five years for

the purpose of acquiring the hardware and software necessary to

participate in the Pennsylvania Fire Information Reporting

System. The Office of the State Fire Commissioner shall develop,

at its discretion, such procedures and forms as it may deem

necessary to facilitate loans for PennFIRS hardware and

software. Such loans shall be secured as required by law.

(b)  Loans made by the agency in the amount of $15,000 or

less shall be for a period of not more than five years. Loans in

excess of $15,000 but for $50,000 or less shall be for a period

of not more than ten years. The payback period of any loan in

excess of $50,000, except a loan for establishing or modernizing

facilities, shall not exceed 15 years. The payback period for

any loan in excess of $100,000 for establishing or modernizing

facilities shall not exceed 20 years. Loans shall be subject to

the payment of interest at 2% per annum and shall be subject to

such security as shall be determined by the agency. The total

amount of interest earned by the investment or reinvestment of

all or any part of the principal of any loan shall be returned

to the agency and transferred to the Volunteer Companies Loan

Fund, and shall not be credited as payment of principal or

interest on the loan. Except as provided in subsection (a)(5)

and (7), the minimum amount of any loan shall be $5,000.

(c)  Every application for a loan under this act shall be

accompanied by a notarized financial statement of the volunteer

fire company, ambulance service or rescue squad; and a financial

plan to show amount of assets and projected revenues for the

repayment of the loan, any other obligations of the volunteer

company, and operating expense over the period of the loan.

Every application shall be accompanied by evidence sufficient to

show that all costs except the amount of the loan have been

obtained by assets of the volunteer company and other loans or

sources of revenue. If a volunteer fire company, ambulance

service or rescue squad is unable to meet the 20% requirement of

subsection (a), then a political subdivision which is served by

the volunteer company may pledge its credit in the amount of

funds necessary to satisfy the 20% requirement and, if it does

so, shall cosign the application submitted by the volunteer

company.

(d)  Loans under this act shall be used for the acquisition

by volunteer companies of new or used apparatus equipment, new

or used ambulances, new or used rescue vehicles, new or used

communications equipment, new or used accessory equipment or new

or used protective equipment, or for the acquisition and

renovation of existing structures to house fire fighting

equipment, ambulance or rescue vehicles or construction or

modernization of facilities and except as provided in subsection

(a)(4), shall not be used for operating expenses or for the

refinancing of renovated structures, refinancing of construction

or modernization of facilities, apparatus equipment,

communication equipment, accessory equipment, nor except as

provided in subsection (a)(4) shall under this act be made or

used to reduce any debt or other obligations issued prior to the

effective date of this act.

(e)  Loans made by the agency shall be paid from the

Volunteer Companies Loan Fund to the volunteer fire companies,

ambulance services and rescue squads in accordance with rules

and regulations promulgated by the agency.

(f)  All payments of interest on said loans and the principal

thereof shall be deposited by the agency in the Volunteer

Companies Loan Fund.

(g)  A volunteer fire company, ambulance service and rescue

squad shall be eligible for a loan under this act regardless of

legal ownership in whole or part by any political subdivision of

any facilities or apparatus equipment used by the volunteer fire

company, volunteer ambulance and volunteer rescue squad. Any

equipment or facilities financed under this act may be

transferred to a political subdivision served by the volunteer

fire company, volunteer ambulance service or volunteer rescue

squad subject to such security as shall be determined by the

agency.

(h)  Notwithstanding any other provision of this section to

the contrary, the maximum amount of any loan to a volunteer fire

company, volunteer ambulance service and volunteer rescue squad

for the purchase of fire fighting apparatus, ambulances or

rescue vehicles manufactured or assembled in this Commonwealth

may exceed the loan limits set forth in this section by

[$10,000] $20,000.

(i)  A volunteer fire department, volunteer rescue service or

a volunteer ambulance service shall not be eligible for more

than three agency loans at one time. In the event that two or

more volunteer fire companies, volunteer rescue services or

volunteer ambulance services merge into one single entity, as

defined by the agency, this entity shall be eligible for no more

than ten agency loans at one time for a period of ten years from

the date in which they merged into one entity.

Section 2.  This act shall take effect in 60 days.