PRINTER'S NO. 887
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
808
Session of
2017
INTRODUCED BY MURT, CONKLIN, FREEMAN, JAMES, LONGIETTI, ROZZI
AND WARD, MARCH 10, 2017
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 10, 2017
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
as amended, "An act relating to the finances of the State
government; providing for the settlement, assessment,
collection, and lien of taxes, bonus, and all other accounts
due the Commonwealth, the collection and recovery of fees and
other money or property due or belonging to the Commonwealth,
or any agency thereof, including escheated property and the
proceeds of its sale, the custody and disbursement or other
disposition of funds and securities belonging to or in the
possession of the Commonwealth, and the settlement of claims
against the Commonwealth, the resettlement of accounts and
appeals to the courts, refunds of moneys erroneously paid to
the Commonwealth, auditing the accounts of the Commonwealth
and all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
every State depository and every debtor or creditor of the
Commonwealth," in Local Government Capital Project Loan Fund,
further providing for assistance to municipalities.
The General Assembly of the Commonwealth of Pennsylvania
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hereby enacts as follows:
Section 1. Section 1603-D of the act of April 9, 1929
(P.L.343, No.176), known as The Fiscal Code, is amended to read:
Section 1603-D. Assistance to Municipalities.--(a) The
department is hereby authorized, upon application of a
municipality, to make loans to the municipality for the
following purposes and in the following amounts:
1. Purchasing equipment. The amount of a loan made for
purchasing equipment shall not exceed fifty thousand dollars
($50,000) for any single piece of equipment or fifty per centum
of the total cost of the piece of equipment, whichever is less.
2. Purchasing, constructing, renovating or rehabilitating
facilities. The amount of a loan made for purchasing,
constructing, renovating or rehabilitating facilities shall not
exceed one hundred thousand dollars ($100,000) for any single
facility or fifty per centum of the total cost for purchasing,
constructing, renovating or rehabilitating the facility,
whichever is less.
(b) Loans made by the department for the purchase of
equipment shall be for a period not to exceed the useful life of
the equipment, and loans made for the purchase, construction,
renovation or rehabilitation of facilities shall be for a period
of not more than [fifteen] twenty years. Loans shall be subject
to the payment of interest at two per centum per annum and shall
be subject to such security as shall be determined by the
department. The total amount of interest earned by the
investment or reinvestment of all or any part of the principal
of any loan shall be returned to the department and transferred
to the fund and shall not be credited as payment of principal or
interest on the loan. The minimum amount of any loan shall be
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one thousand dollars ($1,000). The municipality shall comply
with the approval requirements of 53 Pa.C.S. Ch. 80 Subch. C
(relating to procedure for securing approval of electors).
(c) Every application for a loan under this article shall be
accompanied by a financial statement of the municipality and a
financial plan to show how the loan will be repaid. Every
application shall be accompanied by evidence sufficient to show
that all costs, except the amount of the loan, will be met by
assets or revenues of the municipality, grants or loans from
other sources or in-kind contributions or services.
(d) Loans under this article shall be used for purchasing
equipment and for purchasing, constructing, renovating or
rehabilitating facilities and shall not be used for operating
expenses or for the refinancing or reduction of any debt or
obligation incurred prior to the effective date of this article.
(e) Loans made by the department shall be paid from the fund
to municipalities in accordance with rules and regulations
promulgated by the department.
(f) All payments of interest on loans and the principal
thereof shall be deposited by the department in the fund.
Section 2. This act shall take effect in 60 days.
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