SENATE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY MILLARD, ADOLPH, BAKER, BOBACK, CALTAGIRONE, CARROLL, EVERETT, FARRY, FLECK, GINGRICH, HESS, HORNAMAN, KNOWLES, MAJOR, MICOZZIE, MOUL, MULLERY, MUNDY, MYERS, PICKETT, SCAVELLO, CULVER, TAYLOR, TOOHIL, YOUNGBLOOD, GEIST AND TOBASH, NOVEMBER 9, 2011

AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 12, 2012   

AN ACT

Itemizing public improvement projects for flood protection and

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flood damage repair to be constructed by the Department of

General Services, together with their estimated financial

costs; providing for the adoption of specific disaster

mitigation or assistance projects or flood assistance

projects, together with their estimated financial costs;

authorizing the use of interest earnings held by the

Commonwealth Financing Authority for funding the projects;

and making appropriations.

Implementing the provisions of clause (1) of subsection (a) of

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section 7 of Article VIII of the Constitution of

Pennsylvania, authorizing the incurring of debt for the

rehabilitation of areas affected by Hurricane Irene and

Tropical Storm Lee; imposing duties upon the Governor, the

Auditor General and the State Treasurer; prescribing the

procedures for the issuance, sale and payment of general

obligations bonds, the funding of debt and refunding of

bonds; exempting said bonds from State and local taxation;

creating the Disaster Relief Fund and the Disaster Relief

Redemption Fund; providing for allocation of proceeds; making

appropriations; providing for highway projects itemization,

public bridge projects itemization, disaster mitigation and

assistance projects itemization and disaster railroad

assistance projects itemization for flood damages; and

stating an estimated use.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

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GENERAL PROVISIONS

Section 101.  Short title.

This act shall be known and may be cited as the Flood Control

and Disaster Mitigation Itemization Act of 2012.

CHAPTER 3

DISASTER CAPITAL BUDGET PROJECT ITEMIZATIONS

Section 301.  Scope.

This chapter relates to disaster capital budget project

itemizations in 2012.

Section 302.  Construction of chapter.

For purposes of this act, the projects itemized in this

chapter shall be considered public improvement projects under

the provisions of the act of February 9, 1999 (P.L.1, No.1),

known as the Capital Facilities Debt Enabling Act, for the

purposes of the administration and procurement.

Section 303.  Total authorization.

The total authorization for the capital projects in the

category of public improvement projects itemized in section 304

and to be constructed by the Department of General Services, its

successors or assigns and to be funded as specified in section

305.

Section 304.  Itemization of public improvement projects.

Additional capital projects in the category of public

improvement projects to be constructed by the Department of

General Services, its successors or assigns and to be funded as

specified in section 305, together with their respective

estimated financial costs, as follows:

Section 305.  Funding of projects.

The projects itemized in this chapter shall be funded from a

portion of existing interest earnings held by the Commonwealth

Financing Authority established under 64 Pa.C.S. Ch. 15

(relating to Commonwealth Financing Authority).

Section 306.  Transfer and appropriations.

Notwithstanding the provisions of 64 Pa.C.S. Ch. 15 Subchs. B

(relating to structure and powers) and C (relating to bonds),

interest earnings held by the Commonwealth Financing Authority

in an amount not exceeding $6,171,000 shall be transferred to

the Capital Facilities Fund and appropriated to the Department

of General Services to be used by it exclusively to defray the

financial cost of the projects specifically itemized in this

chapter.

Section 307.  Federal funds.

All moneys received from the Federal Government for the

projects specifically itemized in this chapter are also hereby

appropriated for those projects.

Section 308.  Construction.

(a)  Amounts contained in this chapter for any project shall

not supplant or replace any Federal funds authorized by any

Federal law or regulation. Funding from this chapter for any

project is available only to the extent that Federal funds are

not available for such project.

(b)  Projects which are itemized in this chapter are deemed

to be flood mitigation projects for purposes of and funding

under Chapter 5 to the extent that the projects qualify under

The Robert T. Stafford Disaster Relief and Emergency Assistance

Act (Public Law 93-288, 88 Stat. 143).

CHAPTER 5

DISASTER MITIGATION AND ASSISTANCE PROJECTS

Section 501.  Scope.

This chapter relates to disaster mitigation and assistance

projects itemization in 2012.

Section 502.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Disaster."  The period of time in calendar year 2011

relating to Hurricane Irene and Tropical Storm Lee that was the

subject of a Presidential declaration of an emergency under The

Robert T. Stafford Disaster Relief and Emergency Assistance Act

(Public Law 93-288, 88 Stat. 143).

Section 503.  Total authorization.

The total authorization for disaster mitigation projects or

public assistance projects as defined in The Robert T. Stafford

Disaster Relief and Emergency Assistance Act (Public Law 93-288,

88 Stat. 143) or as a project qualifying for assistance by the

United States Army Corps of Engineers and to be financed in part

with grants limited to the required match for the Federal share

of the costs made to local political subdivisions or nonprofit

organizations where applicable as itemized in this chapter is  

$61,791,000. Projects for which no Federal funds are received

shall not receive funding under this chapter.

Section 504.  Itemization of disaster mitigation or assistance

projects.

The individual disaster mitigation or assistance projects to

be funded as specified in section 516 are hereby itemized,

together with their respective estimated financial costs, in

this chapter.

Section 513.  Funds.

The projects itemized in this chapter shall be funded as

specified in section 516 in an amount not to exceed   

$15,548,000 in the aggregate.

Section 514.  State and local participation levels.

(a)  Public assistance.--The required non-Federal

contribution of 25% or 20%, as appropriate, necessary to secure

Federal public assistance funding shall be divided between the

State and the affected local political subdivision or nonprofit

organization where applicable. The State share shall not exceed

22% of the total cost of the projects.

(b)  Local waiver.--The Commonwealth may reduce the share of

an affected political subdivision if the tax base of that

political subdivision was substantially reduced as a direct

result of Hurricane Irene or Tropical Storm Lee or if payment of

the local share exceeds 40% of the most recently adopted annual

budget of the political subdivision. The Commonwealth may

require the adoption of appropriate flood control or storm water

management plans as a condition of the waiver if the adoption of

the plan does not present additional financial hardship.

Section 515.  Federal funds.

All moneys received from the Federal Government for the

projects specifically itemized in this chapter are also hereby

appropriated for those projects.

Section 516.  State funds.

The State share of funding for projects itemized in this

chapter shall be funded from a portion of existing interest

earnings held by the Commonwealth Financing Authority

established under 64 Pa.C.S. Ch. 15 (relating to Commonwealth

Financing Authority).

Section 517.  Transfer and appropriation.

Notwithstanding the provisions of 64 Pa.C.S. Ch. 15, Subchs.

B (relating to structure and powers) and C (relating to bonds),

interest earnings held by the Commonwealth Financing Authority

in an amount not exceeding  $15,548,000 shall be transferred to

the Capital Facilities Fund and appropriated to the Department

of Environmental Protection to be used by it exclusively to

defray the financial cost of the projects specifically itemized

in this chapter.

Section 518.  Construction.

Amounts contained in this chapter for any project shall not

supplant or replace any Federal funds authorized by any Federal

law or regulation. Funding from this chapter for any project is

available only to the extent that Federal funds are not

available for such project.

CHAPTER 7

MISCELLANEOUS PROVISIONS

Section 701.  Constitutional construction.

The provisions of this act shall be severable and, if any of

the provisions of this act shall be held unconstitutional, such

decisions shall not affect the validity of any of the remaining

provisions of this act. It is hereby declared as the legislative

intent that this act would have been adopted had such

unconstitutional provisions not been included in this act.

Section 702.  Effective date.

This act shall take effect immediately.

CHAPTER 1

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PRELIMINARY PROVISIONS

Section 101.  Short title.

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

Relief Act of 2012.

CHAPTER 2

BOND AUTHORIZATION

Section 201.  Borrowing of money authorized.

Pursuant to the provisions of clause (1) of subsection (a) of

section 7 of Article VIII of the Constitution of Pennsylvania,

the Commonwealth is hereby authorized and directed to borrow

from time to time money not exceeding in the aggregate the sum

of $150,000,000, not including money borrowed to refund

outstanding bonds, notes or replacement notes, as may be found

necessary to carry out the rehabilitation of areas affected by

Hurricane Irene and Tropical Storm Lee.

Section 202.  General obligation bonds authorized.

The indebtedness authorized under section 201 shall be

incurred from time to time and shall be evidenced by one or more

series of general obligation bonds or notes of the Commonwealth

in such aggregate principal amount for each series as the

Governor, the Auditor General and the State Treasurer shall

determine, but the latest stated maturity date shall not exceed

20 years from the date of the bond first issued for each such

series.

Section 203.  Disposition and use of proceeds.

(a)  Establishment of fund.--The proceeds from the sale of

bonds and notes, except refunding bonds and replacement notes,

issued pursuant to the provisions of this act shall be paid to

the State Treasurer and be held in a separate fund to be

established and known as the Disaster Relief Fund.

(b)  Dedication of funds.--The moneys in the Disaster Relief

Fund are hereby specifically dedicated to meeting the costs of

the rehabilitation of areas affected by Hurricane Irene and

Tropical Storm Lee, including, but not limited to, projects that

are defined in or authorized by The Robert T. Stafford Disaster

Relief and Emergency Assistance Act (Public Law 93-288, 88 Stat.

143) and paying the costs and expenses of issuing bonds and

notes.

(c)  Interest earnings.--Pending their application to the

purposes authorized, moneys held or deposited by the State

Treasurer may be invested and reinvested as are other funds in

the custody of the State Treasurer in the manner provided by

law. All earnings received from the investment or deposit of

those funds shall be paid into the State Treasury to the credit

of the Disaster Relief Fund.

(d)  Allocation of proceeds.--Subject to the total limit of

$150,000,000, the funds authorized to be borrowed under section

201 shall be allocated as follows:

(1)  An amount not to exceed 75% of the funds shall be

used to provide for the Commonwealth's share of all costs,

including costs for highways and bridges, flood control and

disaster mitigation costs provided by the Federal Government

under The Robert T. Stafford Disaster Relief and Emergency

Assistance Act.

(2)  (i)  At least 25% of the funds shall be used for the

cost of the following projects pursuant to the disaster

proclamation:

(A)  Projects for the rehabilitation,

construction, reconstruction, repair, other than

normal maintenance, or the replacement of highways

and bridges, flood control and disaster mitigation

not funded by the Federal Government or funded by the

Federal Government at a level insufficient to meet

current codes and standards.

(B)  Projects for the rehabilitation,

construction, reconstruction, repair, other than

normal maintenance, or the replacement of any public

facility of a political subdivision in counties

declared as disaster areas that are not funded by the

Federal Government or are funded by the Federal

Government at a level insufficient to meet current

codes and standards.

(C)  Projects for the rehabilitation,

construction, reconstruction, repair, other than

normal maintenance, or the replacement of any

nonprofit facility owned and operated by a nonprofit

organization in counties declared as disaster areas

that are not funded by the Federal Government or are

funded by the Federal Government at a level

insufficient to meet current codes and standards.

(ii)  If the funding for projects under this

paragraph is insufficient to provide assistance for all

eligible projects, the Commonwealth shall prioritize

projects by considering the following factors:

(A)  The severity of disaster-related damages to

be rectified by the project.

(B)  Whether the project will improve the health,

safety and welfare of the affected population.

(C)  The consistency of the project with other

State and regional resource management and economic

development plans.

(D)  The financial condition of the applicant,

including revenues, expenses, debt structure, equity

position and available collateral.

(E)  The economic and financial condition of the

community to be served, including the tax base,

annual budget and percentage of low-income and

moderate-income residents.

(F)  The inability of the applicant to secure

funding from other sources.

(iii)  No project may be funded under subparagraph

(i)(A) or (B) unless the Commonwealth determines that

there was an adequate appeal of the denial of Federal

funding or of the inadequate level of Federal funding.

(e)  Transfer of unused funds.--Moneys in the Disaster Relief

Fund not necessary to pay unexpired contracts or to pay

potential legal obligations shall be transferred by the State

Treasurer, with the approval of the Governor, to the Disaster

Relief Redemption Fund and shall be used to pay debt service on

the existing disaster relief bonds.

Section 204.  Issuance of bonds, interest and maturity.

(a)  Series and issues.--When bonds are issued from time to

time, the bonds of each issue shall constitute a separate series

to be designated by the issuing officials or may be combined for

sale as one series with other general obligation bonds of the

Commonwealth. Each series of bonds shall bear such rate or rates

of interest as may be determined by the issuing officials. The

bonds shall be issued in the denominations and in the forms,

whether coupon or registered as to both principal and interest,

and with or without provisions for interchangeability, as the

issuing officials may determine. In case interest coupons are

attached, they shall contain the facsimile signature of the

State Treasurer.

(b)  Terms.--Except as otherwise set forth in this act, the

terms and conditions of issue, redemption and maturity and time

of payment of interest shall be as the issuing officials shall

specify. The issuing officials shall provide for the

amortization of the bonds in substantial and regular amounts

over the term of the debt. The first retirement of principal

shall be stated to mature prior to the expiration of a period of

time equal to one-tenth of the time from the date of the first

obligation issued to evidence the debt to the date of the

expiration of the term of the debt. Retirements of principal

shall be regular and substantial if made in annual or semiannual

amounts whether by stated serial maturities or by mandatory

sinking fund retirements computed in accordance with either a

level annual debt service plan, as nearly as may be, or upon the

equal annual maturities plan. The issuing officials are hereby

authorized to carry out the provisions of this act relating to

the issuance of bonds and shall determine all matters in

connection with the bonds subject to the provisions of this act.

(c)  Signatures.--All bonds issued under the authority of

this act shall bear the facsimile signatures of the issuing

officials and a facsimile of the Great Seal of the Commonwealth

of Pennsylvania and shall be countersigned by a duly authorized

officer of a duly authorized loan and transfer agent of the

Commonwealth.

Section 205.  Direct obligations, exemption from taxation and

means of payment.

All bonds issued under this act shall be direct obligations

of the Commonwealth, and the full faith and credit of the

Commonwealth are hereby pledged for the payment of the interest

on the bonds as the interest becomes due and the payment of the

principal of the bonds at maturity. All bonds issued under the

provisions of this act shall be exempt from taxation for State

and local purposes, except as provided under Article XXIX of the

act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code

of 1971. The principal of and interest on the bonds shall be

payable in lawful money of the United States.

Section 206.  Sale of bonds.

(a)  Requirements.--Whenever bonds are issued under this act,

they shall be offered for sale at not less than 98% of the

principal amount of the bonds and accrued interest and shall be

sold by the issuing officials to the highest and best bidder or

bidders after public advertisement on such terms and conditions

and upon such open competitive bidding as the issuing officials

shall direct. The manner and times of advertising shall be

prescribed by the issuing officials.

(b)  Private sale.--Any portion of a bond issue so offered

and not sold or subscribed for may be disposed of by private

sale by the issuing officials in such manner and at such prices,

not less than 98% of the principal amount of the bonds and

accrued interest, as the Governor shall direct. No commission

may be allowed or paid for the sale of any bonds issued under

the authority of this act.

(c)  Temporary bonds.--Until permanent bonds can be prepared,

the issuing officials may in their discretion issue in lieu of

the permanent bonds, temporary bonds in such form and with such

privileges as to registration and exchange for permanent bonds

as may be determined by the issuing officials.

Section 207.  Temporary financing authorization.

(a)  Temporary borrowing.--Pending the issuance of bonds of

the Commonwealth as authorized, the issuing officials are hereby

authorized, in accordance with the provisions of this act and on

the credit of the Commonwealth, to make temporary borrowings,

through public or private sale, not to exceed three years in

anticipation to the issue of bonds in order to provide funds in

such amounts as may from time to time be deemed advisable prior

to the issue of bonds. In order to provide for and in connection

with the temporary borrowings, the issuing officials may, in the

name and on behalf of the Commonwealth, enter into purchase,

loan or credit agreements or other agreements with banks or

trust companies or other lending institutions, investment

banking firms or persons in the United States having power to

enter into the same, which agreements may contain such

provisions not inconsistent with this act as may be authorized

by the issuing officials.

(b)  Evidence of debt.--All temporary borrowings made under

this section shall be evidenced by notes of the Commonwealth,

which shall be issued from time to time for amounts not

exceeding in the aggregate the applicable statutory and

constitutional debt limitation, in a form and in denominations

and subject to terms and condition of sale and issue, prepayment

or redemption and maturity, rate or rates of interest and time

of payment of interest that the issuing officials authorize and

direct in accordance with this act. The authorization and

direction may provide for the subsequent issuance of replacement

notes to refund outstanding notes or replacement notes, which

replacement notes shall, upon issuance, evidence the borrowing,

and may specify other terms and conditions with respect to the

notes and replacement notes authorized for issuance that the

issuing officials may determine and direct.

(c)  Replacement notes.--When the authorization and direction

of the issuing officials provide for the issuance of replacement

notes, the issuing officials may, in the name and on behalf of

the Commonwealth, issue, enter into or authorize and direct the

State Treasurer to enter into agreements with any banks, trust

companies, investment banking firms or other institutions or

persons in the United States having the power to enter

agreements:

(1)  To purchase or underwrite an issue or series of

issues of notes.

(2)  To credit, to enter into purchase, loan or credit

agreements, to draw moneys pursuant to the agreement on the

terms and conditions set forth in the agreement and to issue

notes as evidence of borrowings made under the agreement.

(3)  To appoint an issuing and paying agent or agents

with respect to notes.

(4)  To do such other acts as may be necessary or

appropriate to provide for the payment, when due, of the

interest on and the principal of the notes.

An agreement may provide for the compensation of any purchasers

or underwriters of notes or replacement notes by discounting the

purchase price of the notes or by payment of a fixed fee or

commission at the time of issuance of the notes, and all other

costs and expenses, including fees for agreements related to the

notes, issuing and paying agent costs and costs and expenses of

issuance, may be paid from the proceeds of the notes.

(d)  Duties of State Treasurer.--When the authorization and

direction of the issuing officials provide for the issuance of

replacement notes, the State Treasurer shall, at or prior to the

time of delivery of these notes or replacement notes, determine

the principal amounts, dates of issue, interest rate or rates or

procedures for establishing interest rates from time to time,

rates of discount, denominations and all other terms and

conditions relating to the issuance and shall perform all acts

and things necessary to pay or cause to be paid, when due, all

principal of and interest on the notes being refunded by

replacement notes and to assure that the replacement notes may

draw upon any moneys available for that purpose pursuant to any

purchase, loan or credit agreements established with respect to

the replacement notes, all subject to the authorization and

direction of the issuing officials.

(e)  Retirement of outstanding notes.--Outstanding notes

evidencing the borrowings may be funded and retired by the

issuance and sale of the bonds of the Commonwealth as authorized

under this act. The refunding bonds must be issued and sold not

later than a date three years after the date of issuance of the

first notes evidencing the borrowings to the extent that payment

of the notes has not otherwise been made or provided for by

sources other than proceeds of replacement notes.

(f)  Disposition of proceeds.--The proceeds of all the

temporary borrowing shall be paid to the State Treasurer to be

held and disposed of in accordance with this act.

Section 208.  Disaster Relief Redemption Fund.

(a)  Establishment.--All bonds issued under the authority of

this act shall be paid at maturity and all interest due from

time to time on the bonds and on all notes issued under this act

shall be paid from the Disaster Relief Redemption Fund. The

General Assembly shall appropriate annually the moneys necessary

to pay the interest on the bonds and notes and the principal of

the bonds and notes at maturity for which other provision is not

made. All moneys so appropriated shall be paid into the Disaster

Relief Redemption Fund by the State Treasurer. All moneys so

received prior to the date for disbursement of the moneys shall

be invested by the State Treasurer pending disbursement in such

securities as are provided by law for the investment of surplus

moneys of the Commonwealth.

(b)  Use of fund.--The investment of the moneys and the

accumulations on the moneys in the Disaster Relief Redemption

Fund shall be devoted to and be used exclusively for the payment

of the interest accruing on the bonds and notes and for the

redemption of the bonds and notes at maturity or upon the

redemption date, if called for prior redemption. The State

Treasurer, with the approval of the Governor, is authorized at

any time to use any of those funds for the purchase and

retirement of all or any part of the bonds issued under this

act. No purchase may be made that will reduce the moneys in the

Disaster Relief Redemption Fund below the amount necessary to

pay all principal and interest still to become due in the fiscal

year of the purchase. In the event that all or any part of the

bonds shall be purchased by the Commonwealth, they shall be

canceled and returned to the State Treasurer as canceled and

paid bonds, and thereafter all payments of interest on the bonds

shall cease and the canceled bonds and coupons shall be

destroyed as promptly as possible after cancellation but not

later than two years after cancellation. A certificate

evidencing the destruction of the canceled bonds, notes and

coupons shall be provided by the loan and transfer agent to the

issuing officials. All canceled bonds, notes and coupons shall

be so mutilated as to make the canceled bonds, notes and coupons

nonnegotiable.

Section 209.  Refunding bonds.

The issuing officials may provide by resolution for the

issuance of refunding bonds for the purpose of refunding any

debt issued under this act and then outstanding, either by

voluntary exchange with the holders of the outstanding debt or

may provide funds to redeem and retire the outstanding debt with

accrued interest, any premium payable thereon and the costs of

issuance and retirement of the debt at maturity or at any call

date. The issuance of the refunding bonds, the maturities and

other details of the refunding bonds, the rights of the holders

of the refunding bonds and the duties of the issuing officials

in respect to the refunding bonds shall be governed by the

provisions of this section insofar as they may be applicable.

Refunding bonds that are not subject to the aggregate limitation

of $150,000,000 of debt to be issued under this act may be

issued by the issuing officials to refund debt originally issued

or to refund bonds previously issued for refunding purposes.

Section 210.  Reporting requirements.

The State Treasurer shall determine and report to the

Secretary of the Budget by November of each year the amount of

money necessary for the payment of interest on outstanding

obligations and the principal of the obligations, if any, for

the following fiscal year and the times and amounts of those

payments.

Section 211.  Registration of bonds.

The Auditor General shall prepare the necessary registry

books to be kept in the office of the duly authorized loan and

transfer agent of the Commonwealth for the registration of any

bonds of the Commonwealth at the request of the owner of the

bonds according to the terms and conditions of issue specified

by the issuing officials. All bonds that are issued without

interest coupons attached shall be registered in the registry

books kept by the duly authorized loan and transfer agent of the

Commonwealth.

Section 212.  Voting requirements.

Whenever in this act an action is to be taken or decision

made by the issuing officials, and the three officers shall not

be able to agree unanimously, the action or decision of the

Governor and either the Auditor General or the State Treasurer

shall be binding and final.

Section 213.  Appropriation.

(a)  Appropriation to Governor.--The net proceeds, less the

costs and expenses of issuing the obligations, of the sale of

the $150,000,000 of obligations authorized under this act are

appropriated from the Disaster Relief Fund to the Governor for

allocation by the Secretary of the Budget as provided under

section 203(d) to State agencies for projects authorized under

this act.

(b)  Appropriation to State Treasurer.--There is appropriated

to the State Treasurer from the Disaster Relief Fund as much

money as may be necessary for all costs and expenses in

connection with the issue of and sale and registration of the

bonds and notes in connection with this act and the payment of

interest arbitrage rebates on proceeds of the bonds and notes.

CHAPTER 3

HIGHWAYS

Section 301.  Itemization of public highway projects exceeding

$100,000.

Projects in the category of public highway projects exceeding

$100,000 to be constructed by the Department of Transportation,

its successors or assigns, or a municipality to be financed from

debt incurred under Chapter 2 are hereby itemized together with

their respective estimated financial costs in the following

sections.

Section 302.  (Reserved).