1Authorizing the incurring of indebtedness, with the approval of
2the electors, of $400,000,000 for the acquisition, repair,
3construction, reconstruction, rehabilitation, extension,
4expansion and improvement of Pennsylvania infrastructure,
5including roads, bridges, railroads, dams, water supply and
6sewage treatment systems, energy, communications, flood
7control measures and any other such infrastructure the
8Pennsylvania Infrastructure Investment Authority deems
9relevant; and providing for the powers and duties of the
10Pennsylvania Infrastructure Investment Authority.

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

13Section 1. Short title.

14This act shall be known and may be cited as the Rebuild
15Pennsylvania Infrastructure Assistance Act.

16Section 2. Definitions.

17The following words and phrases when used in this act shall
18have the meanings given to them in this section unless the
19context clearly indicates otherwise:

20"Board." The board of directors of the Pennsylvania
21Infrastructure Investment Authority.

1"Fund." The Pennsylvania Infrastructure Bond Fund.

2"Infrastructure." Technical structures that support a
3society, including roads, bridges, railroads, dams, water supply
4and sewage treatment systems, energy, communications, flood
5control measures and any other such structures the Pennsylvania
6Infrastructure Investment Authority deems relevant.

7Section 3. Approval of debt incurrence by electors.

8The question of incurring indebtedness of $400,000,000 for
9grants and loans for the cost of all labor, materials, necessary
10operational machinery and equipment, lands, property, rights and
11easements, plans and specifications, surveys, estimates of costs
12and revenues, prefeasibility studies, engineering and legal
13services and all other expenses necessary or incident to the
14acquisition, construction, improvement, expansion, extension,
15repair or rehabilitation of all or part of a project shall be
16submitted to the electors at the next primary, municipal or
17general election following the effective date of this act.

18Section 4. Certification.

19The Secretary of the Commonwealth shall certify the question
20under section 5 to the county board of elections.

21Section 5. Form of question.

22The question under section 3 shall be in substantially the
23following form:

24Do you favor the incurring of indebtedness of $400,000,000
25for grants and loans for the cost of all labor, materials,
26necessary operational machinery and equipment, lands,
27property, rights and easements, plans and specifications,
28surveys, estimates of costs and revenues, prefeasibility
29studies, engineering and legal services and all other
30expenses necessary or incident to the acquisition,

1construction, improvement, expansion, extension, repair or
2rehabilitation of all or part of Pennsylvania infrastructure,
3including roads, bridges, railroads, dams, water supply and
4sewage treatment systems, energy, communications, flood
5control measures and any other such infrastructure the
6Pennsylvania Infrastructure Investment Authority deems
7relevant?

8Section 6. Election.

9The election shall be conducted in accordance with the act of
10June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
11Election Code.

12Section 7. Pennsylvania Infrastructure Bond Fund.

13(a) Purpose of fund.--The Pennsylvania Infrastructure Bond
14Fund, which is created in the State Treasury, shall be the
15source from which all payments are authorized with the approval
16of the Governor to carry out the purposes of this act. The
17moneys in the fund shall only be utilized:

18(1) For the acquisition, repair, construction,
19reconstruction, rehabilitation, extension, expansion and
20improvement of Pennsylvania infrastructure, including roads,
21bridges, railroads, dams, water supply and sewage treatment
22systems, energy, communications, flood control measures and
23any other such infrastructure the Pennsylvania Infrastructure
24Investment Authority deems relevant.

25(2) For the administrative costs incurred in any of the
26purposes in paragraph (1), including the costs incurred in
27connection with the issuance of the bonds.

28(b) Interfund transfers authorized.--

29(1) Whenever the cash balance and the current estimated
30receipts of the fund shall be insufficient at any time during

1any State fiscal year to meet promptly the obligations of the
2Commonwealth from such fund, the State Treasurer is hereby
3authorized and directed, from time to time during such fiscal
4year, to transfer from the General Fund to the fund such sums
5as the Governor directs, but in no case less than the amount
6necessary to meet promptly the obligations to be paid from
7the fund, nor more than an amount which is the smaller of:

8(i) the difference between the amount of debt
9authorized to be issued under the authority of this act
10and the aggregate principal amount of bonds and notes
11issued, not including refunding bonds and replacement
12notes; and

13(ii) the difference between the aggregate principal
14amount of bonds and notes, not including refunding bonds
15and replacement notes, issued during such State fiscal
16year.

17Any sums so transferred shall be available only for the
18purposes for which they are appropriated from the fund. The
19transfers shall be made under this section upon warrant of
20the State Treasurer upon requisition of the Governor.

21(2) In order to reimburse the General Fund for moneys
22transferred under paragraph (1), there shall be transferred
23to the General Fund from the fund moneys from the proceeds
24obtained from bonds and notes issued under the authority of
25this act or from other available funds in such amounts and at
26such times as the Governor shall direct. The retransfers
27shall be made upon warrant of the State Treasurer upon
28requisition of the Governor.

29Section 8. Proceeds.

30(a) Use.--Proceeds of borrowing shall be deposited in the

1Pennsylvania Infrastructure Bond Fund in the State Treasury and
2shall be used for grants and loans by the Pennsylvania
3Infrastructure Investment Authority for the acquisition, repair,
4construction, reconstruction, rehabilitation, extension,
5expansion and improvement of Pennsylvania infrastructure. All
6proceeds shall be prohibited from being allocated to foreign
7materials or labor, and there shall be language on the back of
8the obligations clarifying this.

9(b) Appropriation.--The proceeds of all bonds sold under
10this act are hereby appropriated on a continuing basis to the
11Pennsylvania Infrastructure Investment Authority for the purpose
12of making loans and grants under this act.

13(c) Borrowing authorized.--

14(1) If and when the electorate approves a referendum
15question for the incurring of indebtedness in the amount and
16for the purposes prescribed in this act, the issuing
17officials, under section 7(a)(3) of Article VIII of the
18Constitution of Pennsylvania, are authorized and directed to
19borrow, on the credit of the Commonwealth, money not
20exceeding in the aggregate sum of $400,000,000, not including
21money borrowed to refund outstanding bonds, notes or
22replacement notes, as may be found necessary to carry out the
23purposes of this act.

24(2) As evidence of the indebtedness, general obligation
25bonds of the Commonwealth shall be issued from time to time
26to provide moneys necessary to carry out the purposes of this
27act for such total amounts, in such form, in such
28denominations and subject to such terms and conditions of
29issue, redemption and maturity, rate of interest and time of
30payment of interest as the issuing officials direct, except

1that the latest stated maturity date shall not exceed 20
2years from the date of the first obligation issued to
3evidence the debt, the obligations shall be issued in $100
4increments and at a rate of 5%.

5(3) All bonds and notes issued under the authority of
6this act shall bear facsimile signatures of the issuing
7officials and a facsimile of the Great Seal of the
8Commonwealth and shall be countersigned by a duly authorized
9officer of a duly authorized loan and transfer agent of the
10Commonwealth.

11(4) All bonds and notes issued in accordance with this
12act shall be direct obligations of the Commonwealth, and the
13full faith and credit of the Commonwealth is hereby pledged
14for the payment of the interest thereon, as it becomes due,
15and the payment of the principal at maturity. The principal
16of and interest on the bonds and notes shall be payable in
17lawful money of the United States.

18(5) All bonds and notes issued under this act shall be
19exempt from taxation for State and local purposes.

20(6) The bonds may be issued as coupon bonds or
21registered as to both principal and interest as the issuing
22officials may determine. If interest coupons are attached,
23they shall contain the facsimile signature of the State
24Treasurer.

25(7) The issuing officials shall provide for the
26amortization of the bonds in substantial and regular amounts
27over the term of the debt so that the bonds of each issue
28allocated to the projects to be funded from the bond issue
29shall mature within a period not to exceed the appropriate
30amortization period for each project as specified by the

1issuing officials, but in no case in excess of 20 years. The
2first retirement of principal shall be stated to mature prior
3to the expiration of a period of time equal to one-tenth of
4the time from the date of the first obligation issued to
5evidence the debt to the date of the expiration of the term
6of debt. Retirements of principal shall be regular and
7substantial if made in annual or semiannual amounts whether
8by stated serial maturities or by mandatory sinking fund
9retirements.

10(8) The issuing officials are authorized to provide by
11resolution for the issuance of refunding bonds for the
12purpose of refunding any debt issued under this act and then
13outstanding, either by voluntary exchange with the holders of
14the outstanding debt or providing funds to redeem and retire
15the outstanding debt with accrued interest, any premium
16payable thereon and the costs of issuance and retirement of
17the debt at maturity or at any call date. The issuance of the
18refunding bonds, the maturities and other details thereof,
19the rights of the holders thereof and the duties of the
20issuing official in respect thereto shall be governed by this
21section insofar as they may be applicable. Refunding bonds,
22which are not subject to the aggregate limitation of
23$400,000,000 of debt to be issued under this act, may be
24issued by the issuing officials to refund debt originally
25issued or to refund bonds previously issued for refunding
26purposes.

27(9) Whenever any action is to be taken or decision made
28by the Governor, the Auditor General and the State Treasurer
29acting as issuing officials and the these officials are not
30able unanimously to agree, the action or decision of the

1Governor and either the Auditor General or the State
2Treasurer shall be binding and final.

3(d) Sale of bonds.--

4(1) Whenever bonds are issued, they shall be offered for
5sale at not less than 98% of the principal amount and accrued
6interest and shall be sold by the issuing officials to the
7highest and best bidder or bidders after due public
8advertisement on the terms and conditions and upon such open
9competitive bidding as the issuing officials shall direct.
10The manner and character of the advertisement and the time of
11advertising shall be prescribed by the issuing officials. No
12commission shall be allowed or paid for the sale of any bonds
13issued under the authority of this act.

14(2) Any portion of any bond issue so offered and not
15sold or subscribed for at public sale may be disposed of by
16private sale by the issuing officials in such manner and at
17such prices, not less than 98% of the principal amount and
18accrued interest, as the Governor shall direct. No commission
19shall be allowed or paid for the sale of any bonds issued
20under the authority of this act.

21(3) When bonds are issued from time to time, the bonds
22of each issue shall constitute a separate series to be
23designated by the issuing officials or may be combined for
24sale as one series with other general obligation bonds of the
25Commonwealth.

26(4) Until permanent bonds can be prepared, the issuing
27officials may, in their discretion, issue, in lieu of
28permanent bonds, temporary bonds in such form and with such
29privileges as to registration and exchange from permanent
30bonds as may be determined by the issuing officials.

1(5) The proceeds realized from the sale of bonds and
2notes, except refunding bonds and replacement notes, under
3this act shall be paid into the fund. The proceeds shall be
4paid by the State Treasurer periodically to those
5Commonwealth officers and Commonwealth agencies authorized to
6expend them at such times and in such amounts as may be
7necessary to satisfy the funding needs thereof. The proceeds
8of the sale of refunding bonds and replacement notes shall be
9paid to the State Treasurer and applied to the payment of
10principal, the accrued interest and premium, if any, and cost
11of redemption of the bonds and notes for which the
12obligations shall have been issued.

13(6) Pending their application for the purposes
14authorized, moneys held or deposited by the State Treasurer
15may be invested or reinvested as are other funds in the
16custody of the State Treasurer in the manner provided by law.
17All earnings received from the investment or deposit of the
18funds shall be paid into the State Treasury to the credit of
19the fund. The earnings in excess of bond discounts allowed,
20expenses paid for the issuance of bonds and notes and
21interest arbitrage rebates due to the Federal Government
22shall be transferred annually to the fund. Any interest or
23investment income shall be applied to assist in the payment
24of the debt service incurred in connection with this act.

25(7) The Auditor General shall prepare the necessary
26registry book to be kept in the office of the duly authorized
27loan and transfer agent of the Commonwealth for the
28registration of any bonds, at the request of owners thereof,
29according to the terms and conditions of issue directed by
30the issuing officials.

1(8) There is hereby appropriated to the State Treasurer
2from the fund as much money as may be necessary for all costs
3and expenses in connection with the issue, sale and
4registration of the bonds and notes in connection with this
5act and the payment of interest arbitrage rebates or proceeds
6of such bonds and notes.

7(e) Temporary financing authorization.--

8(1) Pending the issuance of bonds of the Commonwealth as
9authorized, the issuing officials are hereby authorized, in
10accordance with this act and on the credit of the
11Commonwealth, to make temporary borrowings not to exceed
12three years in anticipation of the issue of bonds in order to
13provide funds in such amounts as may from time to time be
14deemed advisable prior to the issue of bonds. In order to
15provide for and in connection with the temporary borrowings,
16the issuing officials are authorized in the name and on
17behalf of the Commonwealth to enter into any purchase, loan
18or credit agreement or agreements or other agreement or
19agreements with any banks or trust companies or other lending
20institutions, investment banking firms or persons in the
21United States having power to enter into the same, which
22agreements may contain provisions not inconsistent with the
23provisions of this act as may be authorized by the issuing
24officials.

25(2) All temporary borrowings made under the
26authorization of this section shall be evidenced by notes of
27the Commonwealth which shall be issued from time to time for
28amounts not exceeding in the aggregate the applicable
29statutory and constitutional debt limitation in the form and
30in the denominations and subject to terms and conditions of

1sale and issue, prepayment or redemption and maturity, rate
2or rates of interest and time of payment of interest as the
3issuing officials shall authorize and direct and in
4accordance with this act. The authorization and direction may
5provide for the subsequent issuance of replacement notes to
6refund outstanding notes or replacement notes, which
7replacement notes, shall, upon issuance thereof, evidence the
8borrowing and may specify other terms and conditions with
9respect to the notes and replacement notes thereby authorized
10for issuance as the issuing officials may determine and
11direct.

12(3) When the authorization and direction of the issuing
13officials provide for the issuance of replacement notes, the
14issuing officials are hereby authorized in the name and on
15behalf of the Commonwealth to issue, enter into or authorize
16and direct the State Treasurer to enter into agreements with
17any banks, trust companies, investment banking firms or other
18institutions or persons in the United States having the power
19to enter the same:

20(i) To purchase or underwrite an issue or series of
21issues or notes.

22(ii) To credit, to enter into any purchase, loan or
23credit agreement, to draw moneys pursuant to any such
24agreements on the terms and conditions set forth therein
25and to issue notes as evidence of borrowings made under
26any such agreements.

27(iii) To appoint as issuing and payment agent or
28agents with respect to notes.

29(iv) To do such other acts as may be necessary or
30appropriate to provide for the payment, when due, of the

1interest on and the principal of such notes.  Such
2agreements may provide for the compensation of any
3purchasers or underwriters of notes or replacement notes
4by discounting the purchase price of the notes or by
5payment of a fixed fee or commission at the time of
6issuance thereof, and all other costs and expenses,
7including fees for agreements related to the notes,
8issuing and paying agent costs and costs and expenses of
9issuance, may be paid from the proceeds of the notes.

10(4) When the authorization and direction of the issuing
11officials provide for the issuance of replacement notes, the
12State Treasurer shall, at or prior to the time of delivery of
13these notes or replacement notes, determine the principal
14amounts, dates of issue, interest rate or rates or procedures
15for establishing such rates from time to time, rates of
16discount, denominations and all other terms and conditions
17relating to the issuance and shall perform all acts and
18things necessary to pay or cause to be paid, when due, all
19principal of and interest on the notes being refunded by
20replacement notes and to assure that the same may draw upon
21any moneys available for that purpose pursuant to any
22purchase, loan or credit agreements established with respect
23thereto, all subject to the authorization and direction of
24the issuing officials.

25(5) Outstanding notes evidencing such borrowings may be
26funded and retired by the issuance and sale of the bonds of
27the Commonwealth as authorized in subsection (f). The
28refunding bonds must be issued and sold not later than a date
29three years after the date of issuance of the first notes
30evidencing the borrowings to the extent that payment of such

1notes has not otherwise been made or provided for by sources
2other than proceeds of replacement notes.

3(6) The proceeds of all such temporary borrowing shall
4be paid to the State Treasurer to be held and disposed of in
5accordance with this act.

6(f) Debt retirement--

7(1) All bonds issued under the authority of this act
8shall be redeemed at maturity, together with all interest due
9from time to time on the bonds, and these principal and
10interest payments shall be paid from the Pennsylvania
11Infrastructure Bond Sinking Fund, which is created. For the
12specific purpose of redeeming the bonds at maturity and
13paying all interest thereon in accordance with the
14information received from the Governor, the General Assembly
15shall appropriate moneys to the Pennsylvania Infrastructure
16Bond Sinking Fund for the payment of interest on the bonds
17and notes and the principal thereof at maturity. All moneys
18paid into the Pennsylvania Infrastructure Bond Sinking Fund
19and all of the moneys not necessary to pay accruing interest
20shall be invested by the State Treasurer in such securities
21as are provided by law for the investment of the sinking
22funds of the Commonwealth.

23(2) The State Treasurer, with the approval of the
24Governor, is authorized at any time to use any of the moneys
25in the fund not necessary for the purposes of the referendum
26authorizing the indebtedness necessary to carry out this act,
27for the purchase and retirement of all or any part of the
28bonds and notes issued pursuant to the authorization of this
29act. In the event that all or part of the bonds and notes are
30purchased, they shall be canceled and returned to the loan

1and transfer agent as canceled and paid bonds and notes, and
2thereafter, all payments of interest thereon shall cease. The
3canceled bonds, notes and coupons, together with any other
4canceled bonds, notes and coupons, shall be destroyed as
5promptly as possible after cancellation but not later than
6two years after cancellation. A certification evidencing the
7destruction of the canceled bonds, notes and coupons shall be
8provided by the loan and transfer agent to the issuing
9officials. All canceled bonds, notes and coupons shall be so
10marked as to make the canceled bonds, notes and coupons
11nonnegotiable.

12(3) The State Treasurer shall determine and report to
13the Secretary of the Budget by November 1 of each year the
14amount of money necessary for the payment of interest on
15outstanding obligations and the principal of the obligations,
16if any, for the following fiscal year and the times and
17amounts of the payments. It shall be the duty of the Governor
18to include in every budget submitted to the General Assembly
19full information relating to the issuance of bonds and notes
20under this act and the status of the Pennsylvania
21Infrastructure Bond Sinking Fund for the payment of interest
22on the bonds and notes and the principal thereof at maturity.

23(4) The General Assembly shall appropriate an amount
24equal to the sum as may be necessary to meet repayment
25obligations for principal and interest for deposit into the
26Pennsylvania Infrastructure Bond Sinking Fund.

27(g) Expiration.--Authorization to issue bonds and notes, not
28including refunding bonds and replacement notes, for the
29purposes of this act shall expire ten years from the effective
30date of this section.

1Section 9. Powers and duties of board.

2(a) General rule.--The board shall implement and administer
3the proceeds of the bond under section 8 in conformity with the
4provisions of section 10 of the act of March 1, 1988 (P.L.82,
5No.16), known as the Pennsylvania Infrastructure Investment
6Authority Act.

7(b) Specific powers of board.--In addition to any powers
8under subsection (a), the board shall have the power to:

9(1) Implement and administer the proceeds of the bonds
10under section 8 to improve the adequacy or efficiency of all
11Pennsylvania infrastructure.

12(2) Develop forms for the applications of grants and
13loans.

14(3) Promulgate regulations to implement this act.

15(4) Provide for the implementation of a commercial paper
16program and the issuance of bonds, notes or other obligations
17in groups or individually in a manner consistent with the
18requirements of section 7 of the Pennsylvania Infrastructure
19Investment Authority Act. Bonds issued under the program
20established under this paragraph shall not be required to be
21sold at public sale.

22(5) Take all other actions necessary to implement and
23administer the provisions of this act.

24Section 20. Effective date.

25This act shall take effect immediately.