PRINTER'S NO. 3804
No. 2602 Session of 2000
INTRODUCED BY TANGRETTI, ROSS, COY, DALLY, BARD, BARRAR,
BATTISTO, BEBKO-JONES, BELFANTI, L. I. COHEN, COLAFELLA,
DAILEY, DALEY, DeWEESE, FRANKEL, FREEMAN, GORDNER, GRUCELA,
HALUSKA, HARHAI, HARHART, HERMAN, HORSEY, HUTCHINSON,
LaGROTTA, LAUGHLIN, LEVDANSKY, MAJOR, MANN, MARKOSEK,
MASLAND, MAYERNIK, McCALL, MELIO, R. MILLER, S. MILLER,
MUNDY, ORIE, RAMOS, READSHAW, RUBLEY, SANTONI, SCHULER,
SCRIMENTI, SOLOBAY AND STEELMAN, JULY 17, 2000
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JULY 17, 2000
AN ACT
1 Amending Title 53 (Municipalities Generally) of the Pennsylvania
2 Consolidated Statutes, providing for a loan program for local
3 police agencies funded by a bond issuance and for the
4 responsibilities of the Governor's Center for Local
5 Government Services within the Department of Community and
6 Economic Development; and conferring powers and duties on the
7 Secretary of the Commonwealth and the Legislative Reference
8 Bureau.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Title 53 of the Pennsylvania Consolidated
12 Statutes is amended by adding a chapter to read:
13 CHAPTER 83
14 POLICE AGENCY LOANS
15 Subchapter
16 A. Preliminary Provisions
17 B. Administration
18 C. Loan Program
1 D. Debt
2 E. Miscellaneous Provisions
3 SUBCHAPTER A
4 PRELIMINARY PROVISIONS
5 Sec.
6 8301. Short title of chapter.
7 8302. Definitions.
8 8301. Short title of chapter.
9 This chapter shall be known and may be cited as the Police
10 Agency Loan Act.
11 8302. Definitions.
12 The following words and phrases when used in this chapter
13 shall have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Center." The Governor's Center for Local Government
16 Services within the Department of Community and Economic
17 Development.
18 "Department." The Department of Community and Economic
19 Development of the Commonwealth.
20 "Fund." The Police Agency Loan Fund established in section
21 8312 (relating to fund).
22 "Police agency." A police department of a city, town,
23 township, borough or home rule municipality which:
24 (1) has police coverage for a minimum of 40 hours per
25 week; and
26 (2) has had, for the preceding 18 months, police
27 coverage for a minimum of 40 hours per week.
28 The term includes an office of county detectives working for a
29 district attorney or a regional police department organized
30 under Ch. 23 Subch. A (relating to intergovernmental
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1 cooperation).
2 "Secretary." The Secretary of the Commonwealth.
3 "Sinking fund." The Police Agency Loan Sinking Fund
4 established in section 8337 (relating to sinking fund).
5 SUBCHAPTER B
6 ADMINISTRATION
7 Sec.
8 8311. Center.
9 8312. Fund.
10 8311. Center.
11 (a) Fund administration.--The center shall administer the
12 fund established in section 8312 (relating to fund).
13 (b) Powers and duties.--The center shall have the following
14 powers and duties:
15 (1) To administer the fund as set forth in section
16 8312(c) (relating to fund).
17 (2) To administer Subchapter C (relating to loan
18 program).
19 (3) To collect loans made under section 8322(c)
20 (relating to loans). This paragraph includes the power to
21 institute actions for legal or equitable relief.
22 (4) To promulgate regulations to implement this chapter.
23 8312. Fund.
24 (a) Establishment.--The Police Agency Loan Fund is
25 established as a separate fund in the State Treasury.
26 (b) Source.--The following are the sources of the fund:
27 (1) The proceeds from the sale of bonds under section
28 8336 (relating to proceeds).
29 (2) The proceeds from the repayment of principal and
30 interest of loans under section 8322(c) (relating to loans).
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1 (c) Purpose.--The center shall administer the fund to do all
2 of the following:
3 (1) Repay the State Treasurer for the cost of the bond
4 issue under sections 8333 (relating to sale of bonds), 8334
5 (relating to refunding bonds) and 8335 (relating to
6 registration of bonds).
7 (2) Make loans under section 8322(c).
8 (3) Collect loans under section 8311(b)(3) (relating to
9 center).
10 (4) Administer this chapter. In any fiscal year, the
11 center may use for administrative costs 1% of the aggregate
12 debt authorized under section 8331 (relating to authority to
13 borrow).
14 SUBCHAPTER C
15 LOAN PROGRAM
16 Sec.
17 8321. Authority.
18 8322. Loans.
19 8321. Authority.
20 (a) Authorization.--The center may make a loan to a
21 political subdivision for a police agency of the political
22 subdivision as necessary for the proper performance of the
23 police agency's law enforcement duties, to do any of the
24 following:
25 (1) Purchase, expand, modernize or repair buildings or
26 portions of buildings which are used exclusively for police
27 purposes. This paragraph includes police headquarters, police
28 substations and police maintenance garages.
29 (2) Purchase, maintain or repair equipment.
30 (3) Purchase, maintain or repair vehicles.
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1 (b) Amount.--A loan under subsection (a) for the purchase,
2 maintenance or repair of buildings shall be for not less than
3 $5,000 nor more than $200,000. A loan under subsection (a) for
4 the purchase, maintenance or repair of vehicles or equipment
5 shall be for not less than $5,000 nor more than $100,000. No
6 political subdivision may receive loans totaling more than
7 $300,000 in a five-year period.
8 (c) Terms.--
9 (1) A loan must be at an interest rate of 2%.
10 (2) A loan must be repaid in accordance with the
11 legislation applicable to the political subdivision which
12 receives the loan.
13 (3) A loan must have a repayment period as follows:
14 (i) For a loan of not more than $15,000, a period of
15 five years.
16 (ii) For a loan of more than $15,000 but not more
17 than $100,000, a period of ten years.
18 (iii) For a loan of more than $100,000, a period of
19 15 years.
20 8322. Loans.
21 (a) Application.--A political subdivision may apply for a
22 loan under section 8321 (relating to authority) by submitting to
23 the center all of the following:
24 (1) Name of police agency.
25 (2) Proposed use of loan.
26 (3) Need for use under paragraph (2).
27 (4) Documented ability to repay principal and interest
28 of loan.
29 (b) Determination.--
30 (1) Within 60 days of receipt of an application under
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1 subsection (a), the center must make a decision and notify
2 the political subdivision of the decision.
3 (2) Failure to issue timely notice under paragraph (1)
4 shall be deemed a denial of the application.
5 (3) The provisions of 2 Pa.C.S. Ch. 7 Subch. A (relating
6 to judicial review of Commonwealth agency action) shall apply
7 to determinations under this subsection.
8 (c) Contracts.--Upon determination of eligibility under
9 subsection (b), the center shall enter into a loan contract with
10 the political subdivision.
11 SUBCHAPTER D
12 DEBT
13 Sec.
14 8331. Authority to borrow.
15 8332. Bonds.
16 8333. Sale of bonds.
17 8334. Refunding bonds.
18 8335. Registration of bonds.
19 8336. Proceeds.
20 8337. Sinking fund.
21 8338. Referendum.
22 8331. Authority to borrow.
23 Pursuant to section 7(a)(3) of Article VIII of the
24 Constitution of Pennsylvania and the referendum approved by the
25 electorate under section 8338 (relating to referendum), the
26 Governor, Auditor General and State Treasurer are authorized and
27 directed to borrow, on the credit of the Commonwealth, money not
28 exceeding in the aggregate the sum of $20,000,000 to implement
29 Subchapter C.
30 8332. Bonds.
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1 (a) General rule.--As evidence of the indebtedness
2 authorized under section 8331 (relating to authority to borrow),
3 general obligation bonds of the Commonwealth shall be issued.
4 The Governor, Auditor General and State Treasurer shall direct
5 for each bond the total amount; the form; the denomination; the
6 terms and conditions of issue, redemption and maturity; rate of
7 interest; and time of payment of interest. The latest stated
8 maturity date shall not exceed 30 years from the date of the
9 bond first issued for each series.
10 (b) Signature.--Bonds issued under subsection (a) shall bear
11 facsimile signatures of the Governor, Auditor General and State
12 Treasurer and a facsimile of the Great Seal of the Commonwealth
13 of Pennsylvania and shall be countersigned by two authorized
14 officers of the authorized loan and transfer agents of the
15 Commonwealth.
16 (c) Status.--Bonds issued under subsection (a) shall be
17 direct obligations of the Commonwealth, and the full faith and
18 credit of the Commonwealth are pledged for the payment of the
19 interest on the bonds as it becomes due and the payment of the
20 principal of the bonds at maturity. Bonds issued under
21 subsection (a) shall be exempt from taxation for State and local
22 purposes. The principal of and interest on such bonds shall be
23 payable in lawful money of the United States of America.
24 (d) Format.--Bonds issued under subsection (a) may be issued
25 as coupon bonds or registered as to both principal and interest
26 as the issuing officials may determine. If interest coupons are
27 attached, they shall contain the facsimile signature of the
28 State Treasurer.
29 (e) Amortization.--The issuing officials shall provide for
30 the amortization of the bonds in substantial and regular amounts
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1 over the term of the debt as follows:
2 (1) The first retirement of principal shall be stated to
3 mature prior to the expiration of a period of time equal to
4 one-tenth of the time from the date of the first obligation
5 issue to evidence the debt to the date of the expiration of
6 the term of the debt.
7 (2) Retirements of principal shall be regular and
8 substantial if made in annual or semiannual amounts, whether
9 by stated serial maturities or by mandatory sinking fund
10 retirements, computed either in accordance with a level
11 annual debt service plan, as nearly as may be, or upon the
12 equal annual maturities plan.
13 (f) Processing.--The Governor, the Auditor General and the
14 State Treasurer shall proceed to have the necessary bonds
15 prepared and printed. The bonds, as soon as they are prepared
16 and printed, shall be deposited with the authorized loan and
17 transfer agent of the Commonwealth, there to remain until sold
18 under section 8333 (relating to sale of bonds).
19 8333. Sale of bonds.
20 (a) Public sale.--Bonds issued under section 8332(a)
21 (relating to bonds) shall be offered for sale at not less than
22 98% of the principal amount and accrued interest and shall be
23 sold by the Governor, Auditor General and State Treasurer to the
24 highest and best bidder or bidders after public advertisement,
25 on terms and conditions and upon open competitive bidding, as
26 the Governor, Auditor General and State Treasurer shall direct.
27 (b) Private sale.--Any portion of a bond issue offered under
28 subsection (a) but not sold or subscribed for may be disposed of
29 by private sale by the Governor, Auditor General and State
30 Treasurer, in a manner and at a price not less than 98% of the
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1 principal amount and accrued interest, as the Governor shall
2 direct. No commission shall be allowed or paid for the sale of
3 bonds issued under section 8332(a).
4 (c) Series.--When bonds are issued, the bonds of each issue
5 shall constitute a separate series to be designated by the
6 issuing officials or may be combined for sale as one series with
7 other general obligation bonds of the Commonwealth.
8 8334. Refunding bonds.
9 The Governor, Auditor General and State Treasurer are
10 authorized to provide, by resolution, for the issuance of
11 refunding bonds for the purpose of refunding bonds issued under
12 section 8332(a) (relating to bonds) and outstanding, either by
13 voluntary exchange with the holders of the outstanding bonds or
14 by providing funds to redeem and retire the outstanding bonds
15 with accrued interest and premium payable on the bonds, at
16 maturity or at a call date. Refunding bonds may be issued by the
17 Governor, Auditor General and State Treasurer to refund bonds
18 previously issued under this section for refunding purposes.
19 Sections 8331 (relating to authority to borrow), 8332 (relating
20 to bonds) and 8333 (relating to sale of bonds) shall apply to
21 bonds under this section.
22 8335. Registration of bonds.
23 The Auditor General shall prepare the necessary registry book
24 to be kept in the office of the authorized loan and transfer
25 agent of the Commonwealth for the registration of bonds issued
26 under section 8332(a) (relating to bonds), at the request of
27 bond owners, according to the terms and conditions of issue
28 directed by the Governor, Auditor General and State Treasurer.
29 Bonds which are issued without interest coupons attached shall
30 be registered in the registry books kept by the authorized loan
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1 and transfer agent of the Commonwealth.
2 8336. Proceeds.
3 The proceeds realized from the sale of bonds under section
4 8332(a) (relating to bonds) shall be paid into the fund. The
5 money shall be paid by the State Treasurer into the fund.
6 8337. Sinking fund.
7 (a) Establishment.--The Police Agency Loan Sinking Fund is
8 established as a separate fund in the State Treasury.
9 (b) Source.--
10 (1) By November 1, the State Treasurer shall notify the
11 Secretary of the Budget of the amount necessary for the
12 ensuing fiscal year to redeem, with interest, bonds issued
13 under section 8332(a) (relating to bonds).
14 (2) The General Assembly shall appropriate the amount of
15 money necessary to meet repayment obligations under paragraph
16 (1) for deposit into the Police Agency Sinking Loan Fund.
17 8338. Referendum.
18 (a) Question.--
19 (1) The question of incurring indebtedness of
20 $20,000,000 for loans to police agencies for the purpose of
21 purchasing, maintaining and repairing buildings, equipment
22 and vehicles, as necessary for the proper performance of the
23 police agencies' law enforcement duties, shall be submitted
24 to the electors at the next primary, municipal or general
25 election following the effective date of this section. At
26 least three months prior to the election, the secretary must
27 publish the question in at least two newspapers of general
28 circulation in each county in which at least two newspapers
29 of general circulation are published.
30 (2) The secretary shall certify the question to the
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1 county boards of election to implement paragraph (1).
2 (b) Form.--The question shall be in substantially the
3 following form:
4 Do you favor the incurring of indebtedness of $20,000,000
5 for loans to police agencies for the purpose of purchasing,
6 maintaining and repairing buildings, equipment and vehicles,
7 as necessary for the proper performance of the police
8 agencies' law enforcement duties?
9 (c) Election.--The election shall be conducted in accordance
10 with the act of June 3, 1937 (P.L.1333, No.320), known as the
11 Pennsylvania Election Code, except that the time limits for
12 advertisement of notice of the election may be waived as to the
13 question.
14 (d) Notice.--If a majority of the electors voting in the
15 election under subsection (c) vote in the affirmative, the
16 secretary shall send notice of the vote to the Legislative
17 Reference Bureau for publication in the Pennsylvania Bulletin.
18 SUBCHAPTER E
19 MISCELLANEOUS PROVISIONS
20 Sec.
21 8341. Repeals.
22 8341. Repeals.
23 All acts and parts of acts are repealed insofar as they are
24 inconsistent with this chapter.
25 Section 2. This act shall take effect as follows:
26 (1) The addition of 53 Pa.C.S. 8338 shall take effect
27 immediately.
28 (2) The remainder of this act shall take effect on the
29 date of publication of the notice under section 8338(d).
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