A03177
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1822
Session of
2019
INTRODUCED BY M. K. KELLER, GALLOWAY, BERNSTINE, BOBACK, CIRESI,
GAYDOS, GLEIM, JONES, JOZWIAK, KAUFER, LONGIETTI, MILLARD,
PYLE, SAYLOR, ZABEL AND ZIMMERMAN, SEPTEMBER 17, 2019
REFERRED TO COMMITTEE ON COMMERCE, SEPTEMBER 17, 2019
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
as amended, "An act relating to the finances of the State
government; providing for cancer control, prevention and
research, for ambulatory surgical center data collection, for
the Joint Underwriting Association, for entertainment
business financial management firms, for private dam
financial assurance and for reinstatement of item vetoes;
providing for the settlement, assessment, collection, and
lien of taxes, bonus, and all other accounts due the
Commonwealth, the collection and recovery of fees and other
money or property due or belonging to the Commonwealth, or
any agency thereof, including escheated property and the
proceeds of its sale, the custody and disbursement or other
disposition of funds and securities belonging to or in the
possession of the Commonwealth, and the settlement of claims
against the Commonwealth, the resettlement of accounts and
appeals to the courts, refunds of moneys erroneously paid to
the Commonwealth, auditing the accounts of the Commonwealth
and all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
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every State depository and every debtor or creditor of the
Commonwealth," in Local Government Capital Project Loan Fund,
further providing for definitions, for assistance to
municipalities and for powers and duties of department.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "municipality" in section 1602-
D of the act of April 9, 1929 (P.L.343, No.176), known as The
Fiscal Code, is amended to read:
Section 1602-D. Definitions.--As used in this article--
* * *
"Municipality" shall mean any borough, town, first class
township, second class township, third class city or county,
provided that the term shall not include any boroughs, towns,
townships, cities or counties which have a population in excess
of [12,000] 15,000.
Section 2. Sections 1603-D(a) and (b) and 1605-D of the act
are amended to read:
Section 1603-D. Assistance to Municipalities.--(a) The
department is hereby authorized, upon application of a
municipality, to make loans to the municipality for the
following purposes and in the following amounts:
1. Purchasing equipment. The amount of a loan made for
purchasing equipment shall not exceed [fifty thousand dollars
($50,000)] one hundred fifty thousand dollars ($150,000) for any
single piece of equipment or fifty per centum of the total cost
of the piece of equipment, whichever is less.
2. Purchasing, constructing, renovating or rehabilitating
facilities. The amount of a loan made for purchasing,
constructing, renovating or rehabilitating facilities shall not
exceed [one hundred thousand dollars ($100,000)] two hundred and
fifty thousand dollars ($250,000) for any single facility or
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fifty per centum of the total cost for purchasing, constructing,
renovating or rehabilitating the facility, whichever is less.
(b) Loans made by the department for the purchase of
equipment shall be for a period not to exceed the useful life of
the equipment, and loans made for the purchase, construction,
renovation or rehabilitation of facilities shall be for a period
of not more than fifteen years. Loans shall be subject to the
payment of interest at [two per centum per annum and] a rate set
at the ten-year United States Treasury rate rounded to the
closest quarter point , not to exceed two per centum per annum .
Loan applications shall be subject to the interest rate in
effect at the time a complete application is submitted to the
department, which shall be the fixed rate for the full term of
the loan. Loans shall be subject to such security as shall be
determined by the department. The total amount of interest
earned by the investment or reinvestment of all or any part of
the principal of any loan shall be returned to the department
and transferred to the fund and shall not be credited as payment
of principal or interest on the loan. The minimum amount of any
loan shall be one thousand dollars ($1,000). The municipality
shall comply with the approval requirements of 53 Pa.C.S. Ch. 80
Subch. C (relating to procedure for securing approval of
electors).
* * *
Section 1605-D. Powers and Duties of Department.--In
addition to the powers and duties conferred upon the department
under other provisions of law, the department shall have the
power and duty to:
1. Lend money for the purposes authorized by this article
over a term of years, but in no case in excess of [ten] fifteen
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years.
2. Accept grants from the Federal Government and any other
individual, agency or government for use in the fund.
3. Prescribe the form of the application for a loan pursuant
to this article.
4. Advise a municipality regarding the financial ability of
the municipality to purchase equipment or to purchase,
construct, renovate or rehabilitate facilities.
5. Assist a municipality in taking advantage of joint
purchasing arrangements and of opportunities to purchase surplus
equipment from the Commonwealth or other political subdivisions.
6. Require security for a loan, if determined to be
necessary.
7. Specify priority of liens against any facilities or
equipment purchased by a municipality using funds loaned
pursuant to this article, if determined to be necessary.
8. Establish a schedule which provides at least an annual
opportunity for municipalities to apply for and receive loans.
Section 3. This act shall take effect in 60 days.
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