PRIOR PRINTER'S NO. 515
PRINTER'S NO. 771
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY GABLER, STERN, KNOWLES, STEPHENS, RAPP, LAWRENCE, CUTLER, KAUFFMAN, DUNBAR, EVERETT, TURZAI, BLOOM, GROVE, MILLARD, EVANKOVICH, GREINER, MILNE, GILLEN AND METCALFE, FEBRUARY 4, 2013
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, FEBRUARY 12, 2013
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.
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
3* * *
8(1) A redevelopment authority.
9(2) An industrial development authority.
10(3) A general purpose unit of local government.
11(4) A local development district that has an agreement
12with a general purpose unit of local government under which
13the unit assumes ultimate responsibility for debt incurred to
14obtain the non-State financial participation.
17(6) An industrial development agency:
18(i) which has been certified as an industrial
19development agency by the Pennsylvania Industrial
20Development Authority Board under the act of May 17, 1956
21(1955 P.L.1609, No.537), known as the Pennsylvania
22Industrial Development Authority Act; and
23(ii) which is itself or which is acting through a
24wholly owned subsidiary that is exempt from Federal
25taxation under section 501(c)(3) of the Internal Revenue
26Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)).
27"Capital project." A flood control, highway, public
28improvement, redevelopment assistance capital or transportation
29assistance project which is financed by debt or by other funds
30and which meets all of the following:
5(ii) land or rights in land; or
21* * *
22"Office." The Governor's Office of the Budget.
23* * *
27(1) [Are facilities, other than] Is a project, including
28infrastructure associated with the project. A project does
29not include highways, bridges, waste disposal facilities,
30sewage facilities or water facilities. This paragraph
2(i) [Water] Storm water, water or sewer
3infrastructure, or tunnels, bridges or roads, when
4[included as part of a business or industrial park
5facility] associated with a project that is part of an
6economic development project.
9(2) [Are economic development projects which] Is a
10project which will generate substantial increases in or
11maintain current levels of employment, tax revenues or other
12measures of economic activity. This paragraph includes
13projects with cultural, historical or civic significance <-and
14housing projects that will support and generate economic
21(5) [Have a] Has at least a 50% non-State financial
22participation documented at the time of application,
23including a portion of any funds reserved for future physical
24maintenance and operation of the [facilities] project:
25(i) at least half of which is secured funding;
30(iii) toward which State funds from other programs
1may not be used; and
6(7) [Applicants shall be one of the following:
7(i) A redevelopment authority.
8(ii) An industrial development authority.
9(iii) A general purpose unit of local government.
10(iv) A local development district which has an
11agreement with a general purpose unit of local government
12under which the unit assumes ultimate responsibility for
13debt incurred to obtain the 50% non-State participation
14required by paragraph (5).
17(vi) An industrial development agency which has been
18certified as an industrial development agency by the
19Pennsylvania Industrial Development Authority Board
20pursuant to the act of May 17, 1956 (1955 P.L.1609,
21No.537), known as the Pennsylvania Industrial Development
22Authority Act, and which is itself or which is acting
23through a wholly owned subsidiary which is exempt from
24Federal taxation under section 501(c)(3) of the Internal
25Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et
30* * *
1"Secretary." The Secretary of the Budget.
2* * *
7(a) Legislative process.--A capital budget prepared in
8accordance with this chapter shall be submitted for each fiscal
9year by the Governor to the General Assembly and shall be
10considered in the form of a bill as provided in Article III of
11the Constitution of Pennsylvania.
12(b) Itemization bill.--
13[(1) Except as set forth in paragraph (2), the capital
14budget bill must specifically itemize, by brief identifying
15description and estimated financial cost, the capital
16projects to be financed from the proceeds of obligations of
18(2) Paragraph (1) does not apply if the itemization is:
26(4) The capital budget bill must state the maximum
27amount of such obligations which may be incurred in the
28ensuing fiscal year to provide funds for and towards the
29financial costs of each category of capital projects, which
30shall be by the issue of general obligations of the
2No redevelopment assistance capital project may receive funds
3unless the project was itemized in a capital budget project
4itemization bill, a capital budget bill or a capital project
5itemization bill enacted within ten years of the date the
6project is approved under section 318 or the project has been
7approved by the secretary on or before December 31, 2012. Each
8capital project must be listed under its category and include
9all of the following:
13(2) Estimated financial cost of the capital project.
18(d) [Additional bills] Debt authorization bill.--At the time
19the Governor submits the [capital budget or a supplement]
20General Appropriation Bill for a fiscal year, the Governor
21shall, to the extent the debt to be incurred is not within the
22limits of legislation then in force authorizing the incurring of
23debt, submit [additional bills for each category of capital
24projects,] a capital budget bill authorizing the [incurring of
25debt] maximum amount of general obligation debt to be incurred
26in the ensuing fiscal year to provide funds for and towards the
27payment of the financial costs of capital projects in [such]
28each category of capital projects which have been specifically
29itemized in a [capital budget for the same or any prior year]
30capital project itemization bill.
6(2) Authorize the incurring of debt in not less than the
7amount of the financial cost of all capital projects in such
8category not covered by a previous debt authorization,
9including any overall allowance for contingencies.
10(3) State the estimated useful lives of the capital
11projects to be financed in such detail as may be requisite if
12capital projects of varying useful lives are to be combined
13for financing purposes.
14(4) State the maximum term of the debt to be incurred.
17The Secretary of the Budget shall, within ten days of the
18expiration of each quarter of each fiscal year, provide to the
19chairman and minority chairman of the Appropriations Committee
20of the Senate and the chairman and minority chairman of the
21Appropriations Committee of the House of Representatives a
22report relating to redevelopment assistance capital projects
23which addresses at least all of the following materials:
8(a) Appropriation.--The amount necessary to pay principal of
9and interest on all obligations issued to provide funds for
10redevelopment assistance capital projects shall be appropriated
11from the General Fund and shall be transferred to the Capital
12Debt Fund upon authorization by the Governor.
13(b) Limitation.--The maximum amount of redevelopment
14assistance capital projects undertaken by the Commonwealth for
15which obligations are outstanding shall not exceed, in
16aggregate, [$4,050,000,000.] $3,450,000,000.
27(a.1) Application.--An applicant shall submit an application
28to the office consistent with the timeline established by the
29office requesting a grant for a redevelopment assistance capital
30project. The proposal must be on the form required by the office
1and must include or demonstrate all of the following:
2(1) The applicant's name and address.
3(2) The location of the project.
9(5) Any other information required by the office.
10(a.2) Review and approval.--The office shall review the
11application to determine if all the requirements have been met.
12Upon being satisfied that all requirements have been met and
13after allowing for a 30-day public comment period, the secretary
14may approve the application, and, if approved, the office shall
16(1) The applicant.
17(2) The President pro tempore of the Senate.
18(3) The Majority Leader of the Senate.
19(4) The Minority Leader of the Senate.
22(6) The Speaker of the House of Representatives.
23(7) The Majority Leader of the House of Representatives.
24(8) The Minority Leader of the House of Representatives.
30(a.3) Acceptance and grant agreement.--Within 30 days of
1receiving notification of approval under subsection (a.2), an
2applicant shall notify the office if the applicant accepts the
3grant. If the applicant notifies the office that it intends to
4accept the grant, the office shall forward to the applicant a
5grant agreement to be executed by the applicant. The grant
6agreement and any attachments thereto shall include the
10(2) A statement and proof of local funding.
17(a.4) Execution.--The applicant shall return the information
18requested and the executed contract within the timelines
19established by the office. If the applicant fails to return the
20executed contract within the timelines established by the office
21or 180 days of notification under subsection (a.2), whichever is
22less, no contract may be executed by the office for the grant.
23(b) Time period.--State funding for approved redevelopment
24assistance capital projects shall be paid over not less than a
2536-month period unless the [Secretary of the Budget] secretary
26authorizes a shorter period.
30(e) Verification.--Redevelopment assistance capital project
1cost estimates must be verified by the [Office of the Budget]
2office or its designated agent before final approval is given to
3a project application. Cost estimates include total project
4cost, projected use for State and non-State funds and a year-by-
5year schedule of costs for the entire project construction
7(f) Bids.--Notwithstanding any other provision of law, the
8solicitation of a minimum of three written bids for all
9contracted construction work on redevelopment assistance capital
10projects shall be the sole requirement for the composition,
11solicitation, opening and award of bids on such projects.
12Notwithstanding the foregoing, the construction work shall be
13performed subject to the act of March 3, 1978 (P.L.6, No.3),
14known as the Steel Products Procurement Act.
15(g) Review and audit.--Redevelopment assistance capital
16projects shall be reviewed at regular intervals by the [Office
17of the Budget] office or its designated agent during the funding
18phase to ensure financial and program compliance. A final
19closeout audit shall be performed by the [Office of the Budget]
20office or its designated agent for all projects.
21(h) Fee.--To pay for administrative expenses related to
22redevelopment assistance capital projects funded by Commonwealth
23general obligation bonds, the [Office of the Budget] office may
24charge a fee against proceeds from bonds and notes which were
25sold to finance construction or acquisition costs of projects.
26(i) Grant administration.--In the event any applicant does
27not administer the grant, the applicant shall enter into a
28cooperation agreement with the entity administering the grant,
29which agreement shall be subject to the approval of the [Office
30of the Budget] office.
1(j) Guidelines.--Within 60 days of the effective date of
2this subsection, the office shall establish guidelines
3concerning the administration of and approval process for
4redevelopment assistance capital projects. The guidelines shall,
5at a minimum, establish application timelines, application
6content and the review, evaluation and award criteria and
7process. The guidelines must be posted on the Internet website
8of the office.
9(k) Disclosure.--Upon a redevelopment assistance capital
10project being approved, the office shall post on its Internet
11website the date of approval of the project, the name of the
12applicant, a short description of the project, the location of
13the project, including the municipality in which it is located,
14and the amount of the project grant approved for the project.
15Section 5. The amendment of the definition of "redevelopment
16assistance capital project" in section 302 of the act shall
17apply to capital projects that have not been approved by the
18Secretary of the Budget on or before December 31, 2012.
19Section 6. This act shall take effect immediately.