PRINTER'S NO. 761
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
570
Session of
2019
INTRODUCED BY LANGERHOLC, VOGEL, BLAKE, MENSCH, BREWSTER, COSTA,
KILLION AND YUDICHAK, MAY 9, 2019
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
MAY 9, 2019
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
shall have the meanings given to them in this section unless the
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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." An 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," 1/18 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 by the
Department of Revenue into the Distressed Municipalities
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Recovery Fund.
Section 503-A. Grants to distressed municipalities.
(a) Distribution.--Money deposited into the fund shall be
used by the Commonwealth Financing Authority exclusively for
grants to distressed municipalities. Interest earned from the
investment or deposit of money accumulated in the fund shall be
deposited into 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) For economic development projects.
(5) For 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 the priority of
projects and project approval.
Section 2. This act shall take effect in 90 days.
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