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A10417
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
83
Session of
2017
INTRODUCED BY LAWRENCE, TURZAI, COX, DUNBAR, GABLER, GILLEN,
GROVE, MENTZER, MILLARD, B. MILLER, MURT, TOPPER, IRVIN AND
SAYLOR, MARCH 7, 2017
AS REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, DECEMBER 4, 2017
AN ACT
Amending the act of February 9, 1999 (P.L.1, No.1), entitled "An
act providing for borrowing for capital facilities;
conferring powers and duties on various administrative
agencies and officers; making appropriations; and making
repeals," in capital facilities, further providing for bonds,
issue of bonds and notes, maturity and interest; and, in
capital budgets, providing for the Capital Budget Act of
2018-2019.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 307(c) of the act of February 9, 1999
(P.L.1, No.1), known as the Capital Facilities Debt Enabling
Act, AMENDED OCTOBER 30, 2017 (P.L.772, NO.45), is amended to
read:
Section 307. Bonds, issue of bonds and notes, maturity,
interest.
* * *
(c) Terms and conditions.--
(1) Except as set forth in subsection (a) or (b), the
terms and conditions of issue, redemption and maturity and
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time of payment of interest shall be as the issuing officials
shall specify. Bonds of any series shall mature within a
period not to exceed the estimated useful lives of the
capital projects as stated in the debt-authorizing act but
not later than 30 years from the date of issuance.
(2) The issuing officials shall provide for the
amortization of the bonds in substantial and regular amounts
over the term of the debt, but 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.
(3) [Retirements] (i) Except as provided in
subparagraph (ii), 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.
(ii) Retirements of principal for funding bonds
authorized under section 312 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.
(4) If debt is incurred in one issue of bonds to provide
funds for and towards the financial cost of capital projects
having estimated useful lives of varying length, the
following shall apply:
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(i) The aggregate of the financial costs shall be
considered as the debt to be incurred for the purpose of
fixing the regular and substantial amounts of principal
to be retired.
(ii) The term of the debt shall be to the end of the
longest estimated useful life for the purpose of
determining the first date for the retirement of
principal. At the end of the estimated useful life of
each project, the aggregate principal retirements
required to be made at or before that date shall exceed:
(A) the aggregate financial cost of all capital
projects having the same or shorter estimated useful
lives; or
(B) if bonds are issued for less than the full
financial cost of all projects being financed in the
same category, a proportionate amount in each case.
[(4.1) The issuing officials may enter into agreements
or contracts to insure or secure payment of principal,
interest or the purchase price of bonds which, in the
judgment of the issuing officials, will assist in managing
the interest costs of the debt of the Commonwealth.]
(5) The issuing officials are authorized to carry out
the provisions of this chapter relating to the issuance of
bonds and shall determine all matters in connection with the
issuance of bonds subject to the provisions hereof.
* * *
Section 2. Chapter 6 of the act is amended by adding a
subchapter to read:
SUBCHAPTER C
CAPITAL BUDGET ACT OF 2018-2019
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Section 621. Short title of subchapter.
This subchapter shall be known and may be cited as the
Capital Budget Act of 2018-2019.
Section 622. Overall limitations on debt to be incurred for
capital projects.
The maximum principal amount of additional debt to be
incurred during the 2018-2019 fiscal year, and thereafter until
the enactment of the 2019-2020 capital budget specifying the
maximum debt for the 2019-2020 fiscal year, for capital projects
specifically itemized in a capital budget pursuant to section
7(a)(4) of Article VIII of the Constitution of Pennsylvania and
the fund to be charged with the repayment of such debt shall,
with respect to each category of capital projects, be as
follows:
(1) Public Improvement
Projects:
(i) Buildings and
structures $750,000,000 General Fund or
special fund as
applicable
(2) Furniture and
equipment 20,000,000 General Fund or
special fund as
applicable
(3) Transportation
assistance projects 350,000,000 General Fund
(4) Redevelopment
assistance projects 275,000,000 General Fund
(5) Flood control
projects 10,000,000 General Fund
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Total $1,405,000,000
SECTION 2 3. THIS The amendment of section 307(c) of the ACT
SHALL APPLY TO BONDS ISSUED ON OR AFTER JULY 1, 2018.
Section 2 3 4. This act shall take effect in 60 days
IMMEDIATELY.
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