PRIOR PRINTER'S NO. 1568                      PRINTER'S NO. 1716

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1357 Session of 1987


        INTRODUCED BY COWELL, SEVENTY, ITKIN, LEVDANSKY, TRELLO, OLASZ,
           PISTELLA, MICHLOVIC, VAN HORNE, PETRONE AND DUFFY,
           MAY 11, 1987

        AS REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 8, 1987

                                     AN ACT

     1  Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
     2     as amended, "An act relating to the finances of the State
     3     government; providing for the settlement, assessment,
     4     collection, and lien of taxes, bonus, and all other accounts
     5     due the Commonwealth, the collection and recovery of fees and
     6     other money or property due or belonging to the Commonwealth,
     7     or any agency thereof, including escheated property and the
     8     proceeds of its sale, the custody and disbursement or other
     9     disposition of funds and securities belonging to or in the
    10     possession of the Commonwealth, and the settlement of claims
    11     against the Commonwealth, the resettlement of accounts and
    12     appeals to the courts, refunds of moneys erroneously paid to
    13     the Commonwealth, auditing the accounts of the Commonwealth
    14     and all agencies thereof, of all public officers collecting
    15     moneys payable to the Commonwealth, or any agency thereof,
    16     and all receipts of appropriations from the Commonwealth,
    17     authorizing the Commonwealth to issue tax anticipation notes
    18     to defray current expenses, implementing the provisions of
    19     section 7(a) of Article VIII of the Constitution of
    20     Pennsylvania authorizing and restricting the incurring of
    21     certain debt and imposing penalties; affecting every
    22     department, board, commission, and officer of the State
    23     government, every political subdivision of the State, and
    24     certain officers of such subdivisions, every person,
    25     association, and corporation required to pay, assess, or
    26     collect taxes, or to make returns or reports under the laws
    27     imposing taxes for State purposes, or to pay license fees or
    28     other moneys to the Commonwealth, or any agency thereof,
    29     every State depository and every debtor or creditor of the
    30     Commonwealth," further providing for WHAT MAY CONSTITUTE A     <--
    31     REDEVELOPMENT ASSISTANCE CAPITAL PROJECT AND FOR the
    32     Redevelopment Assistance Sinking Fund.


     1     The General Assembly of the Commonwealth of Pennsylvania
     2  hereby enacts as follows:
     3     Section 1.  Section 1616.1-B of the act of April 9, 1929       <--
     4  (P.L.343, No.176), known as The Fiscal Code, added July 10, 1986
     5  (P.L.1261, No.115), is amended to read:
     6     SECTION 1.  THE DEFINITION OF "REDEVELOPMENT ASSISTANCE        <--
     7  CAPITAL PROJECT" IN SECTION 1602-B AND SECTION 1616.1-B OF THE
     8  ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS THE FISCAL
     9  CODE, ADDED JULY 10, 1986 (P.L.1261, NO.115), ARE AMENDED TO
    10  READ:
    11     SECTION 1602-B.  DEFINITIONS.--AS USED IN THIS ARTICLE--
    12     * * *
    13     "REDEVELOPMENT ASSISTANCE CAPITAL PROJECT" SHALL MEAN THE
    14  DESIGN AND CONSTRUCTION OF FACILITIES WHICH (I) ARE FACILITIES
    15  OTHER THAN HOUSING UNITS, HIGHWAYS, BRIDGES, WASTE DISPOSAL
    16  FACILITIES, SEWAGE SYSTEMS OR FACILITIES, OR WATER SYSTEMS OR
    17  FACILITIES, AND ARE PROJECTS WHICH CANNOT OBTAIN FUNDING UNDER
    18  OTHER STATE OR FEDERAL PROGRAMS; (II) ARE ECONOMIC DEVELOPMENT
    19  PROJECTS WHICH GENERATE SUBSTANTIAL INCREASES IN EMPLOYMENT, TAX
    20  REVENUES OR OTHER MEASURES OF ECONOMIC ACTIVITY; (III) ARE
    21  FACILITIES WHICH HAVE A REGIONAL OR MULTIJURISDICTIONAL IMPACT;
    22  (IV) ARE ELIGIBLE FOR TAX-EXEMPT BOND FUNDING UNDER EXISTING
    23  FEDERAL LAW OR UNDER FEDERAL H.R.3838 OF 1985, WHICH SHALL BE
    24  KNOWN AS THE TAX REFORM ACT OF 1985 IF IT IS ENACTED; (V) HAVE A
    25  FIFTY PER CENTUM NON-STATE PARTICIPATION, OF WHICH THE ONLY
    26  NONCASH NON-STATE PARTICIPATION PERMITTED IS LAND DONATION AND
    27  TOWARD WHICH STATE FUNDS FROM OTHER PROGRAMS MAY NOT BE USED;
    28  AND (VI) HAVE A TOTAL PROJECT COST OF FIVE MILLION DOLLARS
    29  ($5,000,000) OR MORE[.], PROVIDED, HOWEVER, THAT THE FIVE
    30  MILLION DOLLAR ($5,000,000) PROJECT COST REQUIREMENT SHALL NOT
    19870H1357B1716                  - 2 -

     1  APPLY TO THOSE PROJECTS WHICH ARE LOCATED IN MUNICIPALITIES
     2  DESIGNATED AS "FINANCIALLY DISADVANTAGED MUNICIPALITIES" UNDER
     3  THE PROVISIONS OF THE ACT OF JULY 9, 1986 (P.L.1223, NO.110),
     4  KNOWN AS THE "FINANCIALLY DISADVANTAGED MUNICIPALITIES MATCHING
     5  ASSISTANCE ACT."
     6     * * *
     7     Section 1616.1-B.  Redevelopment Assistance Sinking Fund.--
     8  (a)  There is hereby established within the Capital Facilities
     9  Fund a sinking fund, to be known as the Redevelopment Assistance
    10  Sinking Fund, for the purpose of making principal and interest
    11  payments on bonds issued for redevelopment assistance projects
    12  authorized in this article.
    13     (b)  Each year an amount shall be deposited into the
    14  Redevelopment Assistance Sinking Fund sufficient to meet the
    15  debt service requirements during that fiscal year on
    16  redevelopment assistance bonds, but such amount shall not exceed
    17  the first [thirty million dollars ($30,000,000)] sixty million    <--
    18  dollars ($60,000,000) FORTY MILLION DOLLARS ($40,000,000) of      <--
    19  realty transfer tax revenue credited to a fiscal year. Deposits
    20  shall be made into the sinking fund each year pursuant to this
    21  section until all redevelopment assistance bonds issued are
    22  retired. Any surplus funds in the sinking fund at the time all
    23  such bonds are retired shall be transferred into the General
    24  Fund at the close of the fiscal year in which the last bond is
    25  retired.
    26     (c)  The amount of additional bonds which may be issued in
    27  any year for redevelopment assistance projects for which payment
    28  is to be made from the Redevelopment Assistance Sinking Fund
    29  shall not cause the amount of redevelopment assistance bonds
    30  outstanding to increase to the level that required principal and
    19870H1357B1716                  - 3 -

     1  interest payments to be made from the sinking fund would exceed
     2  the amount available in the sinking fund for such payments in
     3  the fiscal year.
     4     Section 2.  This act shall take effect immediately.


















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