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PRINTER'S NO. 1489
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
931
Session of
2015
INTRODUCED BY LAWRENCE, STEPHENS, R. BROWN, DUNBAR, GABLER,
MENTZER, TOOHIL, TOPPER, TURZAI, DIAMOND, GROVE, MACKENZIE
AND PICKETT, MAY 11, 2015
REFERRED TO COMMITTEE ON FINANCE, MAY 11, 2015
AN ACT
Providing a procedure for the approval of a lease-backed debt
obligation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Lease-backed
Debt Obligation Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Financing instrument." An instrument, including a revenue
bond, certificate of participation, lease purchase agreement or
installment purchase agreement.
"Lease-backed debt obligation." An obligation in which a
Commonwealth appropriation for a lease or lease payment is
pledged as security for a financing instrument issued by
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Commonwealth authorities or other Commonwealth entities.
"Office." The Governor's Budget Office.
Section 3. Approval.
(a) Requirement.--A lease-backed debt obligation to be
entered into, extended or modified by a Commonwealth agency,
department, authority, instrumentality or entity that would
require an appropriation of money from Commonwealth funds on an
annual or intermittent basis to support the lease-backed debt
obligation must first be approved by:
(1) a two-thirds vote in both houses of the General
Assembly; and
(2) the Governor.
Section 4. Process.
(a) Bill.--A debt obligation budget prepared in accordance
with subsection (b) must be submitted for each fiscal year by
the Governor to the General Assembly and shall be considered in
the form of a bill as provided in Article III of the
Constitution of Pennsylvania.
(b) Requirement.--
(1) Except as provided under paragraph (2), a lease-
backed debt obligation itemization bill must specifically
itemize the debt obligations to be financed in whole or in
part from the proceeds of lease payments by the Commonwealth.
Each lease-backed debt obligation itemization must include
all of the following:
(i) The department, agency or authority that will
enter into the proposed lease-backed debt obligation.
(ii) The party with whom the department, agency or
authority will enter into the proposed lease-backed debt
obligation.
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(iii) The purpose for the lease-backed debt
obligation.
(iv) The maximum annual payment required by the
proposed lease-backed debt obligation.
(v) The total principal amount of the proposed
lease-backed debt obligation.
(vi) The terms of the proposed lease-backed debt
obligation, including:
(A) The number of years in which payments would
be made.
(B) The amount of principal and interest that
would be paid over the course of the obligation.
(2) Paragraph (1) shall not apply if the itemization has
been approved by the Legislature and enacted by the Governor
in prior legislation referred to in a lease-backed debt
obligation itemization bill or one or more supplemental
lease-backed debt obligation itemization bills.
(c) Written analysis.--The office shall provide a written
analysis with details regarding the lease-backed debt obligation
in addition to the information required under subsection (b) to
the General Assembly. The following shall apply:
(1) The additional analysis required under this
subsection must be provided to the following:
(i) The President pro tempore of the Senate.
(ii) The Speaker of the House of Representatives.
(iii) The Majority Leader and Minority Leader of the
Senate and the Majority Leader and Minority Leader of the
House of Representatives.
(iv) The chairman and minority chairman of the
Appropriations Committee of the Senate and the chairman
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and minority chairman of the Appropriations Committee of
the House of Representatives.
(2) Additional information provided by the office to the
General Assembly under this subsection shall be considered a
legislative record for purposes of the act of February 14,
2008 (P.L.6, No.3), known as the Right-to-Know Law.
Section 5. Effective date.
This act shall take effect in 60 days.
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