1Amending the act of February 9, 1999 (P.L.1, No.1), entitled "An
2act providing for borrowing for capital facilities;
3conferring powers and duties on various administrative
4agencies and officers; making appropriations; and making
5repeals," in capital facilities, further providing for
6definitions, for legislative procedures, for reports related
7to redevelopment assistance capital projects and for
8appropriations and limitations on projects; providing for
9review of proposals; and further providing for funding and
10administration of projects.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13Section 1. The definitions of "capital project" and
14"redevelopment assistance capital project" in section 302 of the
15act of February 9, 1999 (P.L.1, No.1), known as the Capital
16Facilities Debt Enabling Act, amended July 4, 2004 (P.L.516,
17No.67) and December 22, 2005 (P.L.454, No.87), are amended and
18the section is amended by adding definitions to read:

19Section 302. Definitions.

20The following words and phrases when used in this chapter
21shall have the meanings given to them in this section unless the

1context clearly indicates otherwise:

2* * *

3"Applicant." A person that is seeking funding for a
4redevelopment assistance capital project that has been listed in
5a capital project itemization bill and that is one of the

7(1) A redevelopment authority.

8(2) An industrial development authority.

9(3) A general purpose unit of local government.

10(4) A local development district that has an agreement
11with a general purpose unit of local government under which
12the unit assumes ultimate responsibility for debt incurred to
13obtain the non-State financial participation.

14(5) A public authority established pursuant to the laws
15of this Commonwealth.

16(6) An industrial development agency:

17(i) which has been certified as an industrial
18development agency by the Pennsylvania Industrial
19Development Authority Board under the act of May 17, 1956
20(1955 P.L.1609, No.537), known as the Pennsylvania
21Industrial Development Authority Act; and

22(ii) which is itself or which is acting through a
23wholly owned subsidiary that is exempt from Federal
24taxation under section 501(c)(3) of the Internal Revenue
25Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)).

26"Capital project." A flood control, highway, public 
27improvement, redevelopment assistance capital or transportation 
28assistance project which is financed by debt or by other funds
29and which meets all of the following:

30(1) Is an undertaking to construct, repair, renovate,

1improve, equip, furnish or acquire any:

2(i) building, structure, facility, infrastructure or
3physical public betterment or improvement;

4(ii) land or rights in land; or

5(iii) furnishings, machinery, apparatus or equipment
6for a building, structure, facility or physical public
7betterment or improvement.

8(2) Is designated in a [capital budget] capital project 
9itemization bill as a capital project.

10(3) Has an estimated useful life in excess of five

12(4) Has an estimated financial cost in excess of
13$100,000. This paragraph does not apply to original equipment
14or furnishings for previously authorized public improvement

16[Capital projects are categorized as flood control projects,
17highway projects, public improvement projects, redevelopment
18assistance capital projects and transportation assistance

20* * *

21"Office." The Governor's Office of the Budget.

22* * *

23"Redevelopment assistance capital project." The design and
24construction of [facilities] a project which [meet] meets all of
25the following:

26(1) [Are facilities, other than] Is a project, including 
27infrastructure associated with the project. A project does 
28not include highways, bridges, waste disposal facilities,
29sewage facilities or water facilities. This paragraph

1(i) [Water] Storm water, water or sewer
2infrastructure, or tunnels, bridges or roads, when
3[included as part of a business or industrial park
4facility] associated with a project that is part of an 
5economic development project.

6(ii) Hospital facilities and capital improvements
7for hospital facilities.

8(2) [Are economic development projects which] Is a
9project which will generate substantial increases in or 
10maintain current levels of employment, tax revenues or other
11measures of economic activity. This paragraph includes
12projects with cultural, historical or civic significance.

13(3) [Are facilities which have] Is a project that has a
14regional or multijurisdictional impact.

15(4) [Are] Is eligible for tax-exempt bond funding under
16existing Federal law and regulations.

17(5) [Have a] Has at least a 50% non-State financial
18participation documented at the time of application,
19including a portion of any funds reserved for future physical
20maintenance and operation of the [facilities] project:

21(i) at least half of which is secured funding;

22(ii) toward which the only noncash non-State
23financial participation permitted is land or fixed assets
24which have a substantial useful life and are directly
25related to the project;

26(iii) toward which State funds from other programs
27may not be used; and

28(iv) toward which funds from Federal sources may be

30(6) [Have] Has a total project cost of at least


2(7) [Applicants shall be one of the following:

3(i) A redevelopment authority.

4(ii) An industrial development authority.

5(iii) A general purpose unit of local government.

6(iv) A local development district which has an
7agreement with a general purpose unit of local government
8under which the unit assumes ultimate responsibility for
9debt incurred to obtain the 50% non-State participation
10required by paragraph (5).

11(v) Any public authority established pursuant to the
12laws of this Commonwealth.

13(vi) An industrial development agency which has been
14certified as an industrial development agency by the
15Pennsylvania Industrial Development Authority Board
16pursuant to the act of May 17, 1956 (1955 P.L.1609,
17No.537), known as the Pennsylvania Industrial Development
18Authority Act, and which is itself or which is acting
19through a wholly owned subsidiary which is exempt from
20Federal taxation under section 501(c)(3) of the Internal
21Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et

23The term also includes a fire truck and firefighting equipment
24to the extent that the request for assistance does not exceed
25$50,000.] (Reserved).

26* * *

27"Secretary." The Secretary of the Budget.

28* * *

29Section 2. Sections 303 and 313.1 of the act, amended or
30added December 22, 2005 (P.L.454, No.87), are amended to read:

1Section 303. Procedures for capital [budget] project 
2itemization bill and debt-authorizing legislation.

3(a) Legislative process.--A capital budget prepared in
4accordance with this chapter shall be submitted for each fiscal
5year by the Governor to the General Assembly and shall be
6considered in the form of a bill as provided in Article III of
7the Constitution of Pennsylvania.

8(b) Itemization bill.--

9[(1) Except as set forth in paragraph (2), the capital
10budget bill must specifically itemize, by brief identifying
11description and estimated financial cost, the capital
12projects to be financed from the proceeds of obligations of
13the Commonwealth.

14(2) Paragraph (1) does not apply if the itemization is:

15(i) contained in or approved by prior legislation
16referred to in the capital budget bill; or

17(ii) included in one or more supplemental capital
18budget bills.

19(3) Projects must be listed in separate categories as
20well as according to the fund to be charged with the
21repayment of the obligations to be incurred.

22(4) The capital budget bill must state the maximum
23amount of such obligations which may be incurred in the
24ensuing fiscal year to provide funds for and towards the
25financial costs of each category of capital projects, which
26shall be by the issue of general obligations of the

28No redevelopment assistance capital project may receive funds
29unless the project was itemized in a capital budget project
30itemization bill, a capital budget bill or a capital project

1itemization bill enacted within ten years of the date the
2project is approved under section 318 or the project has been
3approved by the secretary on or before December 31, 2012. Each
4capital project must be listed under its category and include
5all of the following:

6(1) A specific description of the capital project,
7including the municipality in which the capital project is

9(2) Estimated financial cost of the capital project.

10(3) The fund to be charged with the repayment of the
11obligation to be incurred.

12[(c) Timing.--Each year the Governor shall submit a capital
13budget bill for the ensuing fiscal year.]

14(d) [Additional bills] Debt authorization bill.--At the time
15the Governor submits the [capital budget or a supplement]
16General Appropriation Bill for a fiscal year, the Governor
17shall, to the extent the debt to be incurred is not within the
18limits of legislation then in force authorizing the incurring of
19debt, submit [additional bills for each category of capital
20projects,] a capital budget bill authorizing the [incurring of
21debt] maximum amount of general obligation debt to be incurred 
22in the ensuing fiscal year to provide funds for and towards the
23payment of the financial costs of capital projects in [such]
24each category of capital projects which have been specifically
25itemized in a [capital budget for the same or any prior year]
26capital project itemization bill.

27(e) Categories.--Each [debt-authorizing bill] capital budget 
28bill must do all of the following:

29(1) State the category of capital projects to be
30financed by the debt so authorized but need not enumerate the

1capital projects to be financed.

2(2) Authorize the incurring of debt in not less than the
3amount of the financial cost of all capital projects in such
4category not covered by a previous debt authorization,
5including any overall allowance for contingencies.

6(3) State the estimated useful lives of the capital
7projects to be financed in such detail as may be requisite if
8capital projects of varying useful lives are to be combined
9for financing purposes.

10(4) State the maximum term of the debt to be incurred.

11Section 313.1. Reports related to redevelopment assistance
12capital projects.

13The Secretary of the Budget shall, within ten days of the
14expiration of each quarter of each fiscal year, provide to the
15chairman and minority chairman of the Appropriations Committee
16of the Senate and the chairman and minority chairman of the
17Appropriations Committee of the House of Representatives a
18report relating to redevelopment assistance capital projects
19which addresses at least all of the following materials:

20(1) An itemized list of the redevelopment assistance
21capital projects approved [for release and construction] in
22the preceding quarter.

23(2) An estimate of the amount of funds remaining under
24the cap provided in section 317(b).

25(3) An estimate of the total amount of outstanding debt
26related to redevelopment assistance capital projects.

27(4) An estimate of the amount of outstanding debt
28related to redevelopment assistance capital projects which
29will be paid [or refinanced] in the succeeding four quarters.

30Section 3. Section 317 of the act, amended July 7, 2010

1(P.L.335, No.48), is amended to read:

2Section 317. Appropriation for and limitation on redevelopment
3assistance capital projects.

4(a) Appropriation.--The amount necessary to pay principal of
5and interest on all obligations issued to provide funds for
6redevelopment assistance capital projects shall be appropriated
7from the General Fund and shall be transferred to the Capital
8Debt Fund upon authorization by the Governor.

9(b) Limitation.--The maximum amount of redevelopment
10assistance capital projects undertaken by the Commonwealth for
11which obligations are outstanding shall not exceed, in
12aggregate, [$4,050,000,000.] $3,450,000,000.

13(c) Housing units.--An amount not to exceed $25,000,000 of
14the amount under subsection (b) may be used for the construction
15of housing units.

16Section 4. Section 318 of the act, amended July 4, 2004
17(P.L.516, No.67), is amended to read:

18Section 318. [Funding and administration] Administration of
19redevelopment assistance capital projects.

20(a) [Officers.--The Secretary of the Budget shall review and
21shall approve or disapprove applications for redevelopment
22assistance capital projects.] (Reserved).

23(a.1) Application.--An applicant shall submit an application
24to the office consistent with the timeline established by the
25office requesting a grant for a redevelopment assistance capital
26project. The proposal must be on the form required by the office
27and must include or demonstrate all of the following:

28(1) The applicant's name and address.

29(2) The location of the project.

30(3) An estimate of the cost of the project, prepared by

1an engineer or other qualified professional.

2(4) A statement of the amount of the project grant
3sought, including a statement as to the financial necessity
4for the project grant.

5(5) Any other information required by the office.

6(a.2) Review and approval.--The office shall review the
7application to determine if all the requirements have been met.
8Upon being satisfied that all requirements have been met and
9after allowing for a 30-day public comment period, the secretary
10may approve the application, and, if approved, the office shall

12(1) The applicant.

13(2) The President pro tempore of the Senate.

14(3) The Majority Leader of the Senate.

15(4) The Minority Leader of the Senate.

16(5) The chairman and minority chairman of the
17Appropriations Committee of the Senate.

18(6) The Speaker of the House of Representatives.

19(7) The Majority Leader of the House of Representatives.

20(8) The Minority Leader of the House of Representatives.

21(9) The chairman and minority chairman of the
22Appropriations Committee of the House of Representatives.

23(10) The State Senator and the State Representative of
24the district where the redevelopment assistance capital
25project is located.

26(a.3) Acceptance and grant agreement.--Within 30 days of
27receiving notification of approval under subsection (a.2), an
28applicant shall notify the office if the applicant accepts the
29grant. If the applicant notifies the office that it intends to
30accept the grant, the office shall forward to the applicant a

1grant agreement to be executed by the applicant. The grant
2agreement and any attachments thereto shall include the

4(1) The name and address of who will administer the

6(2) A statement and proof of local funding.

7(3) An itemized statement of cost associated with the

9(4) A contract obligating the applicant to use the grant
10for the project.

11(5) A request for any other information the office may

13(a.4) Execution.--The applicant shall return the information
14requested and the executed contract within the timelines
15established by the office. If the applicant fails to return the
16executed contract within the timelines established by the office
17or 180 days of notification under subsection (a.2), whichever is
18less, no contract may be executed by the office for the grant.

19(b) Time period.--State funding for approved redevelopment
20assistance capital projects shall be paid over not less than a
2136-month period unless the [Secretary of the Budget] secretary
22authorizes a shorter period.

23(c) Costs.--Land acquisition is a permissible State-funded
24expenditure if the acquisition cost is supported by an appraisal
25done by a certified appraiser.

26(e) Verification.--Redevelopment assistance capital project
27cost estimates must be verified by the [Office of the Budget]
28office or its designated agent before final approval is given to
29a project application. Cost estimates include total project
30cost, projected use for State and non-State funds and a year-by-

1year schedule of costs for the entire project construction

3(f) Bids.--Notwithstanding any other provision of law, the
4solicitation of a minimum of three written bids for all
5contracted construction work on redevelopment assistance capital 
6projects shall be the sole requirement for the composition,
7solicitation, opening and award of bids on such projects.
8Notwithstanding the foregoing, the construction work shall be
9performed subject to the act of March 3, 1978 (P.L.6, No.3),
10known as the Steel Products Procurement Act.

11(g) Review and audit.--Redevelopment assistance capital 
12projects shall be reviewed at regular intervals by the [Office
13of the Budget] office or its designated agent during the funding
14phase to ensure financial and program compliance. A final
15closeout audit shall be performed by the [Office of the Budget]
16office or its designated agent for all projects.

17(h) Fee.--To pay for administrative expenses related to
18redevelopment assistance capital projects funded by Commonwealth
19general obligation bonds, the [Office of the Budget] office may
20charge a fee against proceeds from bonds and notes which were
21sold to finance construction or acquisition costs of projects.

22(i) Grant administration.--In the event any applicant does
23not administer the grant, the applicant shall enter into a
24cooperation agreement with the entity administering the grant,
25which agreement shall be subject to the approval of the [Office
26of the Budget] office.

27(j) Guidelines.--Within 60 days of the effective date of
28this subsection, the office shall establish guidelines
29concerning the administration of and approval process for
30redevelopment assistance capital projects. The guidelines shall,

1at a minimum, establish application timelines, application
2content and the review, evaluation and award criteria and
3process. The guidelines must be posted on the Internet website
4of the office.

5(k) Disclosure.--Upon a redevelopment assistance capital
6project being approved, the office shall post on its Internet
7website the date of approval of the project, the name of the
8applicant, a short description of the project, the location of
9the project, including the municipality in which it is located,
10and the amount of the project grant approved for the project.

11Section 5. The amendment of the definition of "redevelopment
12assistance capital project" in section 302 of the act shall
13apply to capital projects that have not been approved by the
14Secretary of the Budget on or before December 31, 2012.

15Section 6. This act shall take effect immediately.