1Amending Title 35 (Health and Safety) of the Pennsylvania
2Consolidated Statutes, in emergency services, changing
3implementing authority from the Pennsylvania Emergency
4Management Agency to the Office of the State Fire
5Commissioner; further providing for assistance to volunteer 
6fire companies, ambulance service and rescue squads and for 
7powers and duties; and making editorial changes.

8The General Assembly of the Commonwealth of Pennsylvania
9hereby enacts as follows:

10Section 1. The definition of "agency" in section 7363 of
11Title 35 of the Pennsylvania Consolidated Statutes is amended
12and the section is amended by adding definitions to read:

13§ 7363. Definitions.

14The following words and phrases when used in this subchapter
15shall have the meanings given to them in this section unless the
16context clearly indicates otherwise:

17* * *

18["Agency." The Pennsylvania Emergency Management Agency.]

1* * *

2"Commissioner." The State Fire Commissioner.

3* * *

4"Office." The Office of the State Fire Commissioner.

5* * *

6Section 2. Section 7364(a) introductory paragraph, (1), (2),
7(3), (5), (6) and (7), (b), (e), (f), (g) and (h) of Title 35
8are amended and the section is amended by adding a subsection to
9read:

10§ 7364. Assistance to volunteer fire companies, ambulance
11service and rescue squads.

12(a) General rule.--The [agency] office is authorized, upon
13application of any volunteer fire company, volunteer ambulance
14service or volunteer rescue squad, to make loans for the
15following purposes:

16(1) Establishing or modernizing facilities that house
17firefighting equipment, ambulance or rescue vehicles. The
18amount of a loan for establishing or modernizing facilities
19made to any one volunteer fire company, ambulance service or
20rescue squad shall not exceed 50% of the total cost of the
21facilities or modernization or [$200,000] $400,000, whichever
22is less, and a notarized financial statement filed under
23subsection (c) shall show that the applicant has available
2420% of the total cost of the facilities in unobligated funds.
25Proceeds of the loan shall be used only for purposes of
26structure or land acquisition or renovation or construction
27and shall not be used for payment of fees for design,
28planning, preparation of applications or any other cost not
29directly attributable to structure or land acquisition or
30renovation or construction.

1(2) Purchasing firefighting apparatus, ambulances or
2rescue vehicles. The amount of a loan made for purchasing
3firefighting apparatus to any one volunteer fire company
4shall not exceed [$100,000] $300,000 for any single
5firefighting apparatus equipment or utility or special
6service vehicle or heavy duty rescue vehicle as defined by
7regulation or guideline, or 50% of the total cost of the
8equipment or vehicle, whichever is less, except for loans for
9aerial apparatus as defined by regulation or guideline, which
10shall not exceed [$150,000] $300,000. The amount of a loan
11made to any one volunteer fire company, ambulance service or
12rescue squad for any ambulance or light duty rescue vehicle
13as defined by regulation or guideline shall not exceed
14[$50,000] $100,000 and for a watercraft rescue vehicle shall
15not exceed [$15,000] $30,000 or 50% of the cost of the
16ambulance or rescue vehicle, whichever is less, and a
17notarized financial statement filed under subsection (c)
18shall show that the applicant has available 20% of the total
19cost of the vehicle in unobligated funds.

20(3) Purchasing protective, accessory or communication
21equipment. No volunteer fire company, ambulance service or
22rescue squad shall receive a loan for protective, accessory
23or communicative equipment more than once in any five-year
24period. Each volunteer fire company, ambulance service or
25rescue squad may apply for a loan for a mobile and portable
26radio unit for each existing serviceable apparatus equipment,
27ambulance or rescue vehicle. Radio equipment obtained through
28loans under this subchapter shall be equipped with a
29frequency or frequencies licensed by the Federal
30Communications Commission for firefighting or emergency

1response purposes. A notarized financial statement shall be
2filed and loans under this subchapter for the purchase of
3protective, accessory or communicative equipment shall not
4exceed [$10,000] $20,000.

5* * *

6(5) Repair or rehabilitation of apparatus equipment.
7Where it has been determined that existing apparatus
8equipment no longer meets the standards of the National Fire
9Protection Association and the repair or rehabilitation of
10such equipment will bring it in compliance with National Fire
11Protection Association standards, loans for the repair or
12rehabilitation for a single apparatus equipment shall be for
13at least [$1,000] $2,000 but shall not exceed the lesser of
14[$35,000] $70,000 or 80% of the total cost of repair or
15rehabilitation.

16(6) Purchasing of used firefighting apparatus,
17equipment, used ambulances, used rescue vehicles, used
18communications equipment, used accessory equipment or used
19protective equipment, except that the used vehicles and
20equipment shall meet the National Fire Protection Association
21(NFPA) standards and loans for the purchase of a used single
22apparatus equipment shall not exceed [$60,000] $120,000 or
2380% of the total cost of the equipment, whichever is less.

24(7) Purchasing Pennsylvania Fire Information Reporting
25System (PennFIRS) hardware and software. A volunteer fire
26company shall be eligible to apply one time only for a loan
27of not more than [$2,000] $4,000 or 75% of the cost of such
28acquisition, whichever is less, and with a term not exceeding
29five years for the purpose of acquiring the hardware and
30software necessary to participate in the Pennsylvania Fire

1Information Reporting System. The [Office of the State Fire
2Commissioner] office shall develop, at its discretion, such
3procedures and forms as it may deem necessary to facilitate
4loans for PennFIRS hardware and software. The loans shall be
5secured as required by law.

6* * *

7(b) Loans.--Loans made by the [agency] office in the amount
8of [$15,000] $30,000 or less shall be for a period of not more
9than [five] ten years. Loans in excess of [$15,000] $30,000 but
10[for $50,000 or less] not in excess of $100,000 shall be for a
11period of not more than [ten] 15 years. The payback period of
12any loan in excess of [$50,000] $100,000, except a loan for
13establishing or modernizing facilities, shall not exceed [15] 20
14years. The payback period for any loan in excess of [$100,000]
15$200,000 for establishing or modernizing facilities shall not
16exceed 20 years. Loans shall be subject to the payment of
17interest at 2% per year and shall be subject to such security as
18shall be determined by the [agency] commissioner. The total
19amount of interest earned by the investment or reinvestment of
20all or any part of the principal of any loan shall be returned
21to the [agency] office and transferred to the Volunteer
22Companies Loan Fund and shall not be credited as payment of
23principal or interest on the loan. Except as provided in
24subsection (a)(5) and (7), the minimum amount of any loan shall
25be [$5,000] $10,000.

26* * *

27(e) Payment.--Loans made by the [agency] office shall be
28paid from the Volunteer Companies Loan Fund to the volunteer
29fire companies, ambulance services and rescue squads in
30accordance with [rules and regulations promulgated] guidelines
 

1and procedures developed by the [agency] office.

2(f) Deposit.--All payments of interest on the loans and the
3principal thereof shall be deposited by the [agency] office in
4the Volunteer Companies Loan Fund.

5(g) Eligibility.--A volunteer fire company, ambulance
6service and rescue squad shall be eligible for a loan regardless
7of legal ownership in whole or in part by any political
8subdivision of any facilities or apparatus equipment used by the
9volunteer fire company, volunteer ambulance and volunteer rescue
10squad. Any equipment or facilities financed may be transferred
11to a political subdivision served by the volunteer fire company,
12volunteer ambulance service or volunteer rescue squad subject to
13such security as shall be determined by the [agency]
14commissioner.

15(h) Maximum amount.--Notwithstanding any other provision of
16this section to the contrary, the maximum amount of any loan to
17a volunteer fire company, volunteer ambulance service and
18volunteer rescue squad for the purchase of firefighting
19apparatus, ambulances or rescue vehicles manufactured or
20assembled in this Commonwealth, may exceed the loan limits set
21forth in this section by [$10,000] $20,000.

22(i) Aggregation of loans.--

23(1) Subject to paragraph (2), a fire company, volunteer
24rescue service or volunteer ambulance service shall not be
25eligible for more than three loans at one time.

26(2) If more than one fire company, volunteer rescue
27service or volunteer ambulance services merge or consolidate
28into a single entity, as determined by the commissioner, the
29entity shall be eligible for not more than ten loans at one
30time for a period of ten years from the date of the merger or

1consolidation.

2Section 3. Section 7365(a) and (b) of Title 35 are amended
3to read:

4§ 7365. Volunteer Companies Loan Fund.

5(a) General rule.--There is created a special fund in the
6Treasury Department to be known as the Volunteer Companies Loan
7Fund to which shall be credited all appropriations made by the
8General Assembly other than appropriations for expenses of
9administering this subchapter or grants from other sources to
10the [agency] office as well as repayment of principal and
11interest on loans made under this subchapter.

12(b) Requisition.--Upon approval of the loan, the [agency]
13commissioner shall routinely requisition from the Volunteer
14Companies Loan Fund such amounts as shall be allocated by the
15[agency] office for loans to volunteer companies. When and as
16the amounts so allocated as loans to volunteer companies are
17repaid pursuant to the terms of the agreements made and entered
18into with the [agency] office, the [agency] office shall pay
19such amounts into the Volunteer Companies Loan Fund, it being
20the intent of this subchapter that the Volunteer Companies Loan
21Fund shall operate as a revolving fund whereby all
22appropriations and payments made thereto may be applied and
23reapplied to the purposes of this subchapter.

24* * *

25Section 4. Section 7366 heading, (a) introductory paragraph
26and (4), (b) introductory paragraph and (2) of Title 35 are
27amended and subsections (a) and (b) are amended by adding
28paragraphs to read:

29§ 7366. Powers and duties of [agency] office.

30(a) Mandatory.--The [powers and duties of the agency shall

1be] office has the following duties:

2* * *

3(3.1) To establish criteria to determine need for
4firefighting apparatus, ambulances and rescue vehicles and to
5establish guidelines and procedures for volunteer companies
6to show just cause to determine that need.

7(4) To promulgate [such rules and] regulations and 
8develop guidelines and procedures as it deems necessary to
9carry out its powers and duties under this subchapter.

10(b) Discretionary.--The [powers and duties of the agency may
11be] office has the following powers:

12* * *

13(2) To specify priority of liens against any facilities,
14apparatus equipment, ambulances, rescue vehicles or any
15equipment purchased by volunteer companies using funds loaned
16under this subchapter to pay all or any part of the purchase
17price, as the [agency] office may require by [regulation.]
18established guidelines and procedures. The commissioner may 
19specify the type of liens or collateral authorized as 
20security under this paragraph.

21(3) To reject a loan application based on the criteria
22established under subsection (a).

23Section 5. Section 7376 of Title 35 is amended to read:

24§ 7376. Repayment obligations for principal and interest.

25The General Assembly shall appropriate an amount equal to 
26moneys received from the [agency] office under section 7365 
27(relating to Volunteer Companies Loan Fund) and such other 
28moneys as may be necessary to meet repayment obligations for 
29principal and interest into the Volunteer Company Loan Sinking 
30Fund.

1Section 6. The Legislative Reference Bureau shall replace 
2references to the Pennsylvania Emergency Management Agency with 
3references to the Office of the State Fire Commissioner in 4 Pa. 
4Code Ch. 113 (relating to volunteer fire company, ambulance 
5service and rescue squad assistance).

6Section 7. This act shall take effect in 60 days.