Regular Session 2017-2018 House Bill 0083 P.N. 2769

PRIOR PRINTER'S NO. 787

PRINTER'S NO. 2769

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

Session of

2017

INTRODUCED BY LAWRENCE, TURZAI, COX, DUNBAR, GABLER, GILLEN,

GROVE, MENTZER, MILLARD, B. MILLER, MURT, TOPPER, IRVIN AND

SAYLOR, MARCH 7, 2017

AS REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF

REPRESENTATIVES, AS AMENDED, DECEMBER 4, 2017

AN ACT

Amending the act of February 9, 1999 (P.L.1, No.1), entitled "An

act providing for borrowing for capital facilities;

conferring powers and duties on various administrative

agencies and officers; making appropriations; and making

repeals," in capital facilities, further providing for bonds,

issue of bonds and notes, maturity and interest.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 307(c) of the act of February 9, 1999

(P.L.1, No.1), known as the Capital Facilities Debt Enabling

Act, AMENDED OCTOBER 30, 2017 (P.L.772, NO.45), is amended to

read:

Section 307. Bonds, issue of bonds and notes, maturity,

interest.

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(1) Except as set forth in subsection (a) or (b), the

terms and conditions of issue, redemption and maturity and

time of payment of interest shall be as the issuing officials

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shall specify. Bonds of any series shall mature within a

period not to exceed the estimated useful lives of the

capital projects as stated in the debt-authorizing act but

not later than 30 years from the date of issuance.

(2) The issuing officials shall provide for the

amortization of the bonds in substantial and regular amounts

over the term of the debt, but the first retirement of

principal shall be stated to mature prior to the expiration

of a period of time equal to one-tenth of the time from the

date of the first obligation issued to evidence the debt to

the date of the expiration of the term of the debt.

(3) [Retirements] (i) Except as provided in

subparagraph (ii), retirements of principal shall be

regular and substantial if made in annual or semiannual

amounts whether by stated serial maturities or by

mandatory sinking fund retirements computed in accordance

with [either a level annual debt service plan as nearly

as may be or upon] the equal annual maturities plan.

(ii) Retirements of principal for funding bonds

authorized under section 312 shall be regular and

substantial if made in annual or semiannual amounts

whether by stated serial maturities or by mandatory

sinking fund retirements computed in accordance with

either a level annual debt service plan as nearly as may

be or upon the equal annual maturities plan.

(4) If debt is incurred in one issue of bonds to provide

funds for and towards the financial cost of capital projects

having estimated useful lives of varying length, the

following shall apply:

(i) The aggregate of the financial costs shall be

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considered as the debt to be incurred for the purpose of

fixing the regular and substantial amounts of principal

to be retired.

(ii) The term of the debt shall be to the end of the

longest estimated useful life for the purpose of

determining the first date for the retirement of

principal. At the end of the estimated useful life of

each project, the aggregate principal retirements

required to be made at or before that date shall exceed:

(A) the aggregate financial cost of all capital

projects having the same or shorter estimated useful

lives; or

(B) if bonds are issued for less than the full

financial cost of all projects being financed in the

same category, a proportionate amount in each case.

[(4.1) The issuing officials may enter into agreements

or contracts to insure or secure payment of principal,

interest or the purchase price of bonds which, in the

judgment of the issuing officials, will assist in managing

the interest costs of the debt of the Commonwealth.]

(5) The issuing officials are authorized to carry out

the provisions of this chapter relating to the issuance of

bonds and shall determine all matters in connection with the

issuance of bonds subject to the provisions hereof.

* * *

SECTION 2. THIS ACT SHALL APPLY TO BONDS ISSUED ON OR AFTER

JULY 1, 2018.

Section 2 3. This act shall take effect in 60 days

IMMEDIATELY.

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