PRINTER'S NO. 1292

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

983

Session of

2021

INTRODUCED BY AUMENT, YAW, MARTIN, ROBINSON, SCAVELLO, BAKER,

BROOKS, MENSCH, PITTMAN, STEFANO, MASTRIANO, PHILLIPS-HILL

AND BARTOLOTTA, DECEMBER 29, 2021

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. 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:

"Bond fund." The Small Business Loan Bond Fund established

under section 3.

"COVID-19 disaster emergency." The duration of the

proclamation of disaster emergency issued by the Governor on

Treasury Department are authorized and directed to borrow, on

the credit of the Commonwealth, money not exceeding in the

aggregate the sum of $500,000,000 in the form of a five-year

bond issued after the effective date of this section.

be:

accordance with the provisions of section 309 of the Capital

Facilities Debt Enabling Act.

note shall be used solely to fund the loan program under

section 3. The proceeds of the sale of refunding bonds and

replacement notes shall be paid to the State Treasurer and

applied to the payment of principal, any accrued interest and

premium and cost of redemption of the bond for which the

obligations have been issued.

used for the same purposes as the proceeds realized from the

sale of the bond and note under this section.

office of the authorized loan and transfer agent of the

Commonwealth for the registration of bonds, at the request of

owners of the bonds, according to the terms and conditions of

issue directed by the issuing officials.

the proceeds realized from the sale of the bond and note

under this section as much money as may be necessary for all

accordance with this act and on the credit of the

Commonwealth, to make temporary borrowings not to exceed one

year in anticipation of the issuance of the bond in order to

provide money in amounts as deemed advisable prior to the

issuance of the bond. In order to provide for and in

connection with any temporary borrowing, the issuing

officials are authorized in the name and on behalf of the

Commonwealth to enter into purchase, loan or credit

agreements, or other agreements with any bank or trust

company, other lending institution, investment banking firm

shall be made in accordance with section 306(b), (c) and (d)

of the Capital Facilities Debt Enabling Act.

funded and retired by the issuance and sale of the bond or

note of the Commonwealth as authorized in this paragraph. The

refunding bond shall be issued and sold not later than a date

one year after the date of issuance of the first note

evidencing the borrowing to the extent that payment of the

note has not otherwise been made or provided for by sources

maturity, together with all interest due. Principal and

interest payments shall be paid as provided in this act.

shall determine and report the following to the Secretary of

the Budget:

Governor, shall utilize money in the bond fund on an annual

basis for payment of principle and interest for debt service

on the bond issued pursuant to this section and any other

debt incurred by the Commonwealth for loans eligible for

accrued interest, and premium payable thereon, and to pay 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, the rights of the holders of the

bond and the duties of the issuing officials shall be governed

by the provisions of this subsection, as applicable. Refunding

bonds may be issued by the issuing officials to refund debt

originally issued or to refund the bond previously issued for

refunding purposes.

(f) Proceeds restricted.--The proceeds from the sale of the

obligations incurred under this section may not be used if the

loan would cause the bond to lose its Federal tax-exempt status

under the Internal Revenue Code of 1986 (Public Law 99-514, 26

U.S.C. § 1 et seq.).

Section 3. Establishment of bond fund and allocation and use of

(a) Establishment of bond fund.--The Small Business Loan

Bond Fund is established a special fund in the State Treasury.

Prior to allocation, money in the bond fund may be invested or

reinvested as is other money in the custody of the State

(b) Plan.--An annual allocation plan for the bond fund shall

be submitted by the Governor to the General Assembly as part of

the Governor's annual budget. The allocation plan shall be open

for review and comment by the members of the General Assembly

and shall include a detailed listing of the loans to be funded

for the fiscal year. The General Assembly may review and provide

comment on the allocation plan.

(c) Allocation and use of money.--Money in the bond fund

shall be allocated to the Department of Community and Economic

Development for the award of loans to a business that:

(d) Limitation.--The power to award loans under this section

shall expire 180 days after termination of the COVID-19 disaster

emergency or expires under 35 Pa.C.S. § 7301(c) (relating to

general authority of Governor).