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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 653, 2500                PRINTER'S NO. 3470

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 591 Session of 1989


        INTRODUCED BY ARGALL, McCALL, ALLEN, G. SNYDER, J. L. WRIGHT,
           BOYES, GODSHALL, STABACK, CESSAR, NOYE, JOHNSON, DISTLER,
           TIGUE, HASAY, DORR, BUSH, SERAFINI, E. Z. TAYLOR, FOX,
           DEMPSEY, MRKONIC, PETRARCA, SCHULER, CLYMER, HERMAN, VEON,
           HALUSKA, MORRIS, REBER, GANNON, LEVDANSKY, GRUPPO, ANGSTADT,
           GEIST, ROBBINS, DeLUCA, D. W. SNYDER, LASHINGER, LEH, McHALE,
           FREEMAN, VROON, DIETTERICK, RAYMOND, HESS, BURD, J. H. CLARK,
           KAISER, CORNELL, FLICK, BELARDI, MELIO, HECKLER, MARSICO AND
           BROUJOS, FEBRUARY 15, 1989

        SENATOR RHOADES, STATE GOVERNMENT, IN SENATE, AS AMENDED,
           MAY 1, 1990

                                     AN ACT

     1  Amending the act of July 15, 1976 (P.L.1036, No.208), entitled,
     2     as amended, "An act authorizing the indebtedness, with the
     3     approval of the electors, of twenty-five million dollars for
     4     loans to volunteer fire companies, volunteer ambulance
     5     services and volunteer rescue squads for the purpose of
     6     establishing or modernizing facilities to house fire fighting
     7     apparatus equipment, ambulances, and rescue vehicles, and for
     8     purchasing new fire fighting apparatus equipment, ambulances,
     9     and rescue vehicles, protective and communications equipment,
    10     and any other accessory equipment necessary for the proper
    11     performance of such organizations' duties," providing for an
    12     exception to loan limits and adjusting loan limits; AND        <--
    13     PROVIDING FOR A REFERENDUM QUESTION ON ADDITIONAL
    14     INDEBTEDNESS.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  Section 3 of the act of July 15, 1976 (P.L.1036,
    18  No.208), known as the Volunteer Fire Company, Ambulance Service
    19  and Rescue Squad Assistance Act, is amended by adding a


     1  definition to read:
     2     Section 3.  Definitions.--As used in this act:
     3     * * *
     4     "Rescue vehicle" means any vehicle, whether a motor vehicle
     5  or a watercraft, used for rescue services.
     6     * * *
     7     Section 2.  Section 4(a)(1), (2) 4(A)(2) and (6) and (b) of    <--
     8  the act, amended June 13, 1980 (P.L.217, No.65) and May 11, 1982
     9  (P.L.407, No.118), are amended and the section is amended by
    10  adding a subsection to read:
    11     Section 4.  Assistance to Volunteer Fire Companies, Ambulance
    12  Service and Rescue Squads.--(a)  The department is hereby
    13  authorized, upon application of any volunteer fire company,
    14  volunteer ambulance service and volunteer rescue squad, to make
    15  loans to said volunteer companies for the following purposes:
    16     (1)  Establishing or modernizing facilities that house fire    <--
    17  fighting equipment, ambulance or rescue vehicles. The amount of
    18  a loan for establishing or modernizing facilities made to any
    19  one volunteer fire company, ambulance service or rescue squad
    20  shall not exceed 50% of the total cost of the facilities or
    21  modernization or [$50,000] $75,000, whichever is less, and a
    22  notarized financial statement filed under subsection (c) shall
    23  show that the applicant has available 20% of the total cost of
    24  the facilities in unobligated funds. Proceeds of the loan shall
    25  be used only for purposes of land acquisition or construction,
    26  and shall not be used for payment of fees for design, planning,
    27  preparation of applications, or any other cost not directly
    28  attributable to land acquisition or construction.
    29     * * *                                                          <--
    30     (2)  Purchasing fire fighting apparatus, ambulances or rescue
    19890H0591B3470                  - 2 -

     1  vehicles. The amount of a loan made for purchasing fire fighting
     2  apparatus, to any one volunteer fire company shall not exceed
     3  [$50,000] $100,000 for any single fire fighting apparatus
     4  equipment or utility or special service vehicle or heavy duty
     5  rescue vehicle as defined by regulation, or 50% of the total
     6  cost of the equipment or vehicle, whichever is less EXCEPT FOR    <--
     7  LOANS FOR AERIAL APPARATUS AS DEFINED BY REGULATION, WHICH SHALL
     8  NOT EXCEED $150,000. The amount of a loan made to any one
     9  volunteer fire company, ambulance service or rescue squad for
    10  any ambulance or light duty rescue vehicle as defined by
    11  regulation shall not exceed $40,000 $50,000 and for a watercraft  <--
    12  rescue vehicle shall not exceed [$25,000] $15,000 or 50% of the
    13  cost of the ambulance or rescue vehicle, whichever is less, and
    14  a notarized financial statement filed under subsection (c) shall
    15  show that the applicant has available 20% of the total cost of
    16  the vehicle in unobligated funds.
    17     * * *
    18     (6)  Purchasing of used fire fighting apparatus, equipment,
    19  used ambulances, used rescue vehicles, used communications
    20  equipment, used accessory equipment or used protective
    21  equipment: Provided, however, That the used vehicles and
    22  equipment shall meet the National Fire Protection Association
    23  (NFPA) standards: And provided further, That loans for the
    24  purchase of a used single apparatus equipment shall not exceed
    25  $60,000 or 80% of the total cost of the equipment, whichever is
    26  less.
    27     Loans under this act may be made for any of the purposes of
    28  this subsection undertaken by a volunteer fire company,
    29  volunteer ambulance service and volunteer rescue squad on or
    30  after November 4, 1975, the date of the approval of the
    19890H0591B3470                  - 3 -

     1  referendum approving the borrowing of money for the purposes of
     2  this act.
     3     (b)  Loans made by the department IN THE AMOUNT OF $100,000    <--
     4  OR MORE shall be for a period of not more than [ten] 15 years,
     5  LOANS LESS THAN $100,000 SHALL BE FOR A PERIOD OF TEN YEARS, and  <--
     6  any loan of the amount of [$10,000] $15,000 or less shall be for
     7  a period of not more than five years. Loans shall be subject to
     8  the payment of interest at 2% per annum and shall be subject to
     9  such security as shall be determined by the department. The
    10  total amount of interest earned by the investment or
    11  reinvestment of all or any part of the principal of any loan
    12  shall be returned to the department and transferred to the
    13  Volunteer Companies Loan Fund, and shall not be credited as
    14  payment of principal or interest on the loan. The minimum amount
    15  of any loan shall be [$1,000] $5,000.
    16     * * *
    17     (h)  Notwithstanding any other provision of this section to
    18  the contrary, the maximum amount of any loan to a volunteer fire
    19  company, volunteer ambulance service and volunteer rescue squad
    20  for the purchase of fire fighting apparatus, ambulances or
    21  rescue vehicles built MANUFACTURED OR ASSEMBLED in this           <--
    22  Commonwealth may exceed the loan limits set forth in this
    23  section by $10,000.
    24     Section 3.  This act shall take effect in 60 days.             <--
    25     SECTION 3.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:     <--
    26     SECTION 18.1.  REFERENDUM FOR ADDITIONAL INDEBTEDNESS.--(A)
    27  THE QUESTION OF INCURRING INDEBTEDNESS OF $25,000,000 FOR LOANS
    28  TO VOLUNTEER FIRE COMPANIES, VOLUNTEER AMBULANCE SERVICES AND
    29  VOLUNTEER RESCUE SQUADS FOR THE PURPOSE OF ESTABLISHING OR
    30  MODERNIZING FACILITIES TO HOUSE FIREFIGHTING APPARATUS
    19890H0591B3470                  - 4 -

     1  EQUIPMENT, AMBULANCES AND RESCUE VEHICLES, AND FOR PURCHASING
     2  FIREFIGHTING APPARATUS EQUIPMENT, AMBULANCES AND RESCUE
     3  VEHICLES, PROTECTIVE AND COMMUNICATIONS EQUIPMENT, AND ANY OTHER
     4  ACCESSORY EQUIPMENT NECESSARY FOR THE PROPER PERFORMANCE OF SUCH
     5  ORGANIZATIONS' DUTIES, SHALL BE SUBMITTED TO THE ELECTORS AT THE
     6  NEXT PRIMARY, MUNICIPAL OR GENERAL ELECTION FOLLOWING ENACTMENT
     7  OF THIS ACT.
     8     (B)  THE SECRETARY OF THE COMMONWEALTH SHALL FORTHWITH
     9  CERTIFY THE QUESTION TO THE COUNTY BOARDS OF ELECTION.
    10     (C)  THE QUESTION SHALL BE IN SUBSTANTIALLY THE FOLLOWING
    11  FORM:
    12         DO YOU FAVOR THE INCURRING OF INDEBTEDNESS OF $25,000,000
    13     FOR LOANS TO VOLUNTEER FIRE COMPANIES, VOLUNTEER AMBULANCE
    14     SERVICES AND VOLUNTEER RESCUE SQUADS FOR THE PURPOSE OF
    15     ESTABLISHING OR MODERNIZING FACILITIES TO HOUSE FIREFIGHTING
    16     APPARATUS EQUIPMENT, AMBULANCES AND RESCUE VEHICLES, AND FOR
    17     PURCHASING FIREFIGHTING APPARATUS EQUIPMENT, AMBULANCES AND
    18     RESCUE VEHICLES, PROTECTIVE AND COMMUNICATIONS EQUIPMENT, AND
    19     ANY OTHER ACCESSORY EQUIPMENT NECESSARY FOR THE PROPER
    20     PERFORMANCE OF SUCH ORGANIZATIONS' DUTIES?
    21     (D)  THE ELECTION SHALL BE CONDUCTED IN ACCORDANCE WITH THE
    22  ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE
    23  "PENNSYLVANIA ELECTION CODE," EXCEPT THAT THE TIME LIMITS FOR
    24  ADVERTISEMENT OF NOTICE OF THE ELECTION MAY BE WAIVED AS TO THE
    25  QUESTION.
    26     (E)  PROCEEDS OF BORROWING SHALL BE USED THROUGH LOANS TO
    27  VOLUNTEER FIRE COMPANIES, VOLUNTEER AMBULANCE SERVICES AND
    28  VOLUNTEER RESCUE SQUADS PURSUANT TO AND FOR ANY PURPOSE
    29  ESTABLISHED BY THIS ACT.
    30     SECTION 18.2.  AUTHORIZATION OF CONTRACTS.--(A)  THE
    19890H0591B3470                  - 5 -

     1  SECRETARY OF GENERAL SERVICES IS HEREBY AUTHORIZED TO ENTER INTO
     2  CONTRACTS WITH LOCAL VOLUNTEER FIRE, AMBULANCE AND RESCUE
     3  COMPANIES TO PROVIDE SERVICES NECESSARY TO EXTINGUISH FIRES OR
     4  PERFORM ANY OTHER ALLIED SERVICES ON STATE-OWNED PROPERTY.
     5     (B)  THE SECRETARY OF TRANSPORTATION IS HEREBY AUTHORIZED TO
     6  ENTER INTO CONTRACTS WITH LOCAL VOLUNTEER FIRE, AMBULANCE AND
     7  RESCUE COMPANIES TO PROVIDE SERVICES NECESSARY TO EXTINGUISH
     8  FIRES OR PERFORM ANY OTHER ALLIED SERVICES ON LIMITED ACCESS
     9  HIGHWAYS, OTHER THAN THE PENNSYLVANIA TURNPIKE.
    10     SECTION 18.3.  REIMBURSEMENT PROCEDURE AND AMOUNT.--(A)  ANY
    11  SUCH CONTRACT BETWEEN THE SECRETARY OF GENERAL SERVICES OR THE
    12  SECRETARY OF TRANSPORTATION AND A LOCAL VOLUNTEER FIRE,
    13  AMBULANCE AND RESCUE COMPANY SHALL PROVIDE THAT THE DEPARTMENT
    14  OF GENERAL SERVICES OR THE DEPARTMENT OF TRANSPORTATION SHALL,
    15  MONTHLY, UPON RECEIPT OF PROPER PROOF, REIMBURSE EACH CONTRACTED
    16  VOLUNTEER FIRE, AMBULANCE AND RESCUE COMPANY ATTENDING AND
    17  PROVIDING FIRE CONTROL OR OTHER ALLIED SERVICES ON STATE-OWNED
    18  PROPERTY OR LIMITED ACCESS HIGHWAYS, AS THE CASE MAY BE, A
    19  MINIMUM AMOUNT OF $50 FOR EACH VERIFIED FIRE OR EMERGENCY CALL
    20  AND THE COST OF ANY SPECIAL EXTINGUISHING AGENTS UTILIZED, WHICH
    21  THE VOLUNTEER FIRE, AMBULANCE AND RESCUE COMPANY MADE IN THE
    22  PRECEDING MONTH AS CERTIFIED BY THE PERSON IN CHARGE AT THE
    23  PARTICULAR STATE-OWNED PROPERTY OR BY AN INDIVIDUAL OR
    24  INDIVIDUALS DESIGNATED BY THE SECRETARY OF TRANSPORTATION TO
    25  VERIFY SERVICES RENDERED ON LIMITED ACCESS HIGHWAYS.
    26     (B)  ANY SUCH CONTRACT BETWEEN THE DEPARTMENT OF GENERAL
    27  SERVICES OR THE DEPARTMENT OF TRANSPORTATION AND A LOCAL
    28  VOLUNTEER AMBULANCE OR RESCUE COMPANY SHALL ALSO PROVIDE THAT
    29  THE AMBULANCE OR RESCUE COMPANY REQUEST REIMBURSEMENT FROM
    30  COLLECTIBLE INSURANCE PROCEEDS AVAILABLE AS A RESULT OF THE FIRE
    19890H0591B3470                  - 6 -

     1  OR EMERGENCY SITUATION FOR WHICH THE AMBULANCE OR RESCUE COMPANY
     2  PROVIDED ALLIED SERVICES. ANY SUCH PROCEEDS PAYABLE TO THE
     3  AMBULANCE OR RESCUE COMPANY SHALL BE DEDUCTED FROM THE
     4  REIMBURSEMENT FOR SERVICES PROVIDED PURSUANT TO A CONTRACT
     5  ENTERED INTO UNDER THIS ACT. PRIOR TO PAYMENT FOR SERVICES
     6  RENDERED, THE LOCAL VOLUNTEER AMBULANCE OR RESCUE COMPANY SHALL
     7  PROVIDE PROOF THAT THEY REQUESTED REIMBURSEMENT FROM COLLECTIBLE
     8  INSURANCE PROCEEDS.
     9     (C)  A FALSE ALARM ON STATE-OWNED PROPERTY TO WHICH A
    10  VOLUNTEER FIRE, AMBULANCE OR RESCUE COMPANY RESPONDS SHALL
    11  CONSTITUTE A FIRE OR EMERGENCY CALL AND SHALL BE REIMBURSED AT A
    12  RATE SET BY THE CONTRACT WITH THE SECRETARY OF GENERAL SERVICES,
    13  BUT SHALL NOT BE LESS THAN $25 FOR EACH OCCURRENCE.
    14     SECTION 18.4.  APPROPRIATIONS.--(A)  THE SUM OF $250,000, OR
    15  AS MUCH THEREOF AS MAY BE NECESSARY, IS HEREBY APPROPRIATED TO
    16  THE DEPARTMENT OF GENERAL SERVICES FOR THE FISCAL YEAR ENDING
    17  JUNE 30, 1991, TO EFFECTUATE THE PURPOSES OF SECTIONS 18.2 AND
    18  18.3. ALL FUNDS UNEXPENDED, UNCOMMITTED OR UNENCUMBERED ON JUNE
    19  30, 1991, SHALL LAPSE.
    20     (B)  THE SUM OF $250,000, OR AS MUCH THEREOF AS MAY BE
    21  NECESSARY, IS HEREBY APPROPRIATED TO THE DEPARTMENT OF
    22  TRANSPORTATION FOR THE FISCAL YEAR ENDING JUNE 30, 1991, TO
    23  EFFECTUATE THE PURPOSES OF SECTIONS 18.2 AND 18.3. ALL FUNDS
    24  UNEXPENDED, UNCOMMITTED OR UNENCUMBERED ON JUNE 30, 1991, SHALL
    25  LAPSE.
    26     SECTION 4.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.



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