See other bills
under the
same topic
PRINTER'S NO. 343
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
363
Session of
2019
INTRODUCED BY LAWRENCE, TURZAI, BERNSTINE, DUNBAR, GROVE, IRVIN,
KAUFFMAN, KEEFER, M. K. KELLER, MILLARD, B. MILLER,
OBERLANDER, SIMMONS, TOEPEL AND TOPPER, FEBRUARY 5, 2019
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 5, 2019
AN ACT
Providing a procedure for the approval of a lease-backed debt
obligation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Lease-backed
Debt Obligation Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Financing instrument." An instrument, including a revenue
bond, certificate of participation, lease purchase agreement or
installment purchase agreement.
"Lease-backed debt obligation." An obligation in which a
Commonwealth appropriation for a lease or lease payment is
pledged as security for a financing instrument issued by the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Commonwealth, Commonwealth authorities or other Commonwealth
entities.
"Office." The Governor's Budget Office.
Section 3. Approval.
A lease-backed debt obligation to be entered into, extended
or modified by a Commonwealth agency, department, authority,
instrumentality or entity that would require an appropriation of
money from Commonwealth funds on an annual or intermittent basis
to support the lease-backed debt obligation must first be
approved by:
(1) a two-thirds vote in both houses of the General
Assembly; and
(2) the Governor.
Section 4. Process.
(a) Bill.--A debt obligation budget prepared in accordance
with subsection (b) must be submitted for each fiscal year by
the Governor to the General Assembly and shall be considered in
the form of a bill as provided in Article III of the
Constitution of Pennsylvania.
(b) Requirement.--
(1) Except as provided under paragraph (2), a lease-
backed debt obligation itemization bill must specifically
itemize the debt obligations to be financed in whole or in
part from the proceeds of lease payments by the Commonwealth.
Each lease-backed debt obligation itemization must include
all of the following:
(i) The department, agency or authority that will
enter into the proposed lease-backed debt obligation.
(ii) The party that the department, agency or
authority will enter into the proposed lease-backed debt
20190HB0363PN0343 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
obligation.
(iii) The purpose for the lease-backed debt
obligation.
(iv) The maximum annual payment required by the
proposed lease-backed debt obligation.
(v) The total principal amount of the proposed
lease-backed debt obligation.
(vi) The terms of the proposed lease-backed debt
obligation, including:
(A) The number of years in which payments would
be made.
(B) The amount of principal and interest that
would be paid over the course of the obligation.
(vii) The maximum allowable costs to be paid to
underwriting and other entities involved in the lease-
backed debt obligation transaction.
(2) Paragraph (1) shall not apply if the itemization has
been approved by the General Assembly and enacted by the
Governor in prior legislation referred to in a lease-backed
debt obligation itemization bill or one or more supplemental
lease-backed debt obligation itemization bills.
(c) Written analysis.--The office shall provide a written
analysis with details regarding the lease-backed debt obligation
in addition to the information required under subsection (b) to
the General Assembly. The following shall apply:
(1) The additional analysis required under this
subsection must be provided to the following:
(i) The President pro tempore of the Senate.
(ii) The Speaker of the House of Representatives.
(iii) The Majority Leader and Minority Leader of the
20190HB0363PN0343 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Senate.
(iv) The Majority Leader and Minority Leader of the
House of Representatives.
(v) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(vi) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(2) Additional information provided by the office to the
General Assembly under this subsection shall be considered a
legislative record for purposes of the act of February 14,
2008 (P.L.6, No.3), known as the Right-to-Know Law.
Section 5. Effective date.
This act shall take effect in 60 days.
20190HB0363PN0343 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13