PRINTER'S NO. 1954
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1225
Session of
2018
INTRODUCED BY LANGERHOLC, RAFFERTY, BREWSTER, MENSCH, KILLION,
McGARRIGLE, VOGEL, BARTOLOTTA, YUDICHAK AND BLAKE,
AUGUST 13, 2018
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
AUGUST 13, 2018
AN ACT
Amending the act of July 10, 1987 (P.L.246, No.47), entitled "An
act empowering the Department of Community and Economic
Development to assist municipalities in avoiding financial
distress; declare certain municipalities as financially
distressed; providing for the restructuring of debt of
financially distressed municipalities; limiting the ability
of financially distressed municipalities to obtain government
funding; authorizing municipalities to participate in Federal
debt adjustment actions and bankruptcy actions under certain
circumstances; authorizing certain taxes; and providing for
the disincorporation of municipalities and the establishment
of unincorporated service districts," providing for recovery
grants for distressed municipalities.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of July 10, 1987 (P.L.246, No.47), known
as the Municipalities Financial Recovery Act, is amended by
adding a chapter to read:
CHAPTER 5-A
RECOVERY GRANTS FOR DISTRESSED MUNICIPALITIES
Section 501-A. Definitions.
The following words and phrases when used in this chapter
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Critical infrastructure." The public and private assets and
networks, whether physical or virtual, so vital that their
incapacitation or destruction would have a debilitating effect
on national security, the economy, public health or safety, or
any combination thereof.
"Debt obligations." Any obligation to pay money, including
amounts owed for payments relating to lease rental debt, debt
service, bonds, notes, guarantees for bonds or notes, trust
indentures, contracts or other agreements.
"Distressed municipality." A municipality which has been
determined to be financially distressed under section 203(f).
"Fund." The Distressed Municipalities Recovery Fund
established under section 502-A.
"Municipality." A municipality as defined in section 103,
other than a city of the first class.
Section 502-A. Distressed Municipalities Recovery Fund.
(a) Establishment.--The Commonwealth Financing Authority
shall establish a separate account to be known as the Distressed
Municipalities Recovery Fund.
(b) Deposit.--Notwithstanding section 2 of the act of June
9, 1936 (1st Sp.Sess., P.L.13, No.4), entitled "An act imposing
an emergency State tax on liquor, as herein defined, sold by the
Pennsylvania Liquor Control Board; providing for the collection
and payment of such tax; and imposing duties upon the Department
of Revenue and the Pennsylvania Liquor Control Board," one-
eighteenth of the revenues received by the Commonwealth pursuant
to the imposition of the tax imposed under section 2 of the act
of June 9, 1936 (1st Sp.Sess., P.L.13, No.4) shall be deposited
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by the Department of Revenue into the Distressed Municipalities
Recovery Fund.
Section 503-A. Grants to distressed municipalities.
(a) Distribution.--All money deposited into the fund shall
be used by the Commonwealth Financing Authority exclusively for
grants to distressed municipalities. All interest earned from
the investment or deposit of money accumulated in the fund shall
be deposited in the fund for the same use.
(b) Eligible projects.--Grant money shall be used as
follows:
(1) To repair or replace critical infrastructure or
equipment owned or maintained by the distressed municipality.
(2) To reduce debt obligations.
(3) For costs associated with a transition to shared
services with another jurisdiction.
(4) Economic development projects.
(5) Crime prevention and reduction programs and
initiatives.
(c) Coordination.--The department shall review applications
for grant funding as requested by the Commonwealth Financing
Authority and provide recommendations on priority of projects
and project approval.
Section 2. This act shall take effect in 90 days.
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