Regular Session 2019-2020 Senate Bill 0785 P.N. 1050

PRINTER'S NO. 1050

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

785

Session of

2019

INTRODUCED BY L. WILLIAMS, BLAKE, BOSCOLA, BROWNE, COLLETT,

COSTA, FARNESE, FONTANA, HUGHES, HUTCHINSON, IOVINO, LEACH,

SANTARSIERO, TARTAGLIONE AND J. WARD, JUNE 21, 2019

REFERRED TO VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS,

JUNE 21, 2019

AN ACT

Amending Title 35 (Health and Safety) of the Pennsylvania

Consolidated Statutes, in Commonwealth services, further

providing for scope of subchapter, for definitions, for

assistance to volunteer fire companies, ambulance service and

rescue squads, for Volunteer Companies Loan Fund, for powers

and duties of office, for disposition and use of proceeds,

for repayment obligations for principle and interest, for

temporary financing authorization, for referendum for

additional indebtedness, for authorization of contracts,

reimbursement procedure and amount and for reimbursement

procedure and amount.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The heading of Subchapter E of Chapter 73 of

Title 35 of the Pennsylvania Consolidated Statutes is amended to

read:

SUBCHAPTER E

[VOLUNTEER FIRE COMPANY, AMBULANCE SERVICE

AND RESCUE SQUAD ASSISTANCE] FIRE AGENCY LOAN ASSISTANCE PROGRAM

Section 2. Section 7361 of Title 35 is amended to read:

§ 7361. Scope of subchapter.

This subchapter relates to [volunteer] fire company,

volunteer ambulance service and volunteer rescue [squad] service

assistance.

Section 3. The definition of "volunteer companies loan fund"

in section 7363 of Title 35 is amended and the section is

amended by adding definitions to read:

§ 7363. Definitions.

The following words and phrases when used in this subchapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Fire company." A fire agency organized by a municipality

that employs firefighters on a full-time or part-time basis. The

term includes a volunteer fire company.

"Fund." The Fire Agency Loan Assistance Fund established

under section 7365 (relating to Fire Agency Loan Assistance

Fund).

"Municipality." A county, city, borough, incorporated town

or township.

* * *

["Volunteer Companies Loan Fund." The fund established under

section 7365 (relating to Volunteer Companies Loan Fund).]

Section 4. Sections 7364, 7365, 7366, 7371, 7376, 7378(d),

7378.1, 7378.2 and 7378.3 of Title 35 are amended to read:

§ 7364. Assistance to [volunteer] fire companies, volunteer

ambulance service and volunteer rescue [squads]

service.

(a) General rule.--The office is authorized, upon

application of any [volunteer] fire company, volunteer ambulance

service or volunteer rescue [squad] service, to make loans for

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the following purposes:

(1) Establishing or modernizing facilities that house

firefighting equipment, ambulance or rescue vehicles. The

amount of a loan for establishing or modernizing facilities

made to any one [volunteer] fire company, volunteer ambulance

service or volunteer rescue [squad] service shall not exceed

50% of the total cost of the facilities or modernization or

$400,000, whichever is less, and a notarized financial

statement filed under subsection (c) shall show that the

applicant has available 20% of the total cost of the

facilities in unobligated funds. Proceeds of the loan shall

be used only for purposes of structure or land acquisition or

renovation or construction and shall not be used for payment

of fees for design, planning, preparation of applications or

any other cost not directly attributable to structure or land

acquisition or renovation or construction.

(2) Purchasing firefighting apparatus, ambulances or

rescue vehicles. The amount of a loan made for purchasing

firefighting apparatus to any one [volunteer] fire company

shall not exceed $200,000 for any single firefighting

apparatus equipment or utility or special service vehicle or

heavy duty rescue vehicle as defined by regulation or

guideline, or 50% of the total cost of the equipment or

vehicle, whichever is less, except for loans for aerial

apparatus as defined by regulation or guideline, which shall

not exceed $300,000. The amount of a loan made to any one

[volunteer] fire company, volunteer ambulance service or

volunteer rescue [squad] service for any ambulance or light

duty rescue vehicle as defined by regulation or guideline

shall not exceed $100,000 and for a watercraft rescue vehicle

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shall not exceed $30,000 or 50% of the cost of the ambulance

or rescue vehicle, whichever is less, and a notarized

financial statement filed under subsection (c) shall show

that the applicant has available 20% of the total cost of the

vehicle in unobligated funds.

(3) Purchasing protective, accessory or communication

equipment. No [volunteer] fire company, volunteer ambulance

service or volunteer rescue [squad] service shall receive a

loan for protective, accessory or communicative equipment

more than once in any five-year period. Each [volunteer] fire

company, volunteer ambulance service or volunteer rescue

[squad] service may apply for a loan for a mobile and

portable radio unit for each existing serviceable apparatus

equipment, ambulance or rescue vehicle. Radio equipment

obtained through loans under this subchapter shall be

equipped with a frequency or frequencies licensed by the

Federal Communications Commission for firefighting or

emergency response purposes. A notarized financial statement

shall be filed and loans under this subchapter for the

purchase of protective, accessory or communicative equipment

shall not exceed $20,000.

(4) Refinancing debt incurred or contracts entered into

after November 4, 1975, and used for the purchase of

apparatus equipment or for the construction or modernization

of facilities or for modification of apparatus equipment in

order to comply with National Fire Protection Association

standards.

(5) Repair or rehabilitation of apparatus equipment.

Where it has been determined that existing apparatus

equipment no longer meets the standards of the National Fire

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Protection Association and the repair or rehabilitation of

such equipment will bring it in compliance with National Fire

Protection Association standards, loans for the repair or

rehabilitation for a single apparatus equipment shall be for

at least $2,000 but shall not exceed the lesser of $70,000 or

80% of the total cost of repair or rehabilitation.

(6) Purchasing of used firefighting apparatus,

equipment, used ambulances, used rescue vehicles, used

communications equipment, used accessory equipment or used

protective equipment, except that the used vehicles and

equipment shall meet the National Fire Protection Association

(NFPA) standards and loans for the purchase of a used single

apparatus equipment shall not exceed $120,000 or 80% of the

total cost of the equipment, whichever is less.

(7) Purchasing Pennsylvania Fire Information Reporting

System (PennFIRS) hardware and software. A [volunteer] fire

company shall be eligible to apply one time only for a loan

of not more than $4,000 or 75% of the cost of such

acquisition, whichever is less, and with a term not exceeding

five years for the purpose of acquiring the hardware and

software necessary to participate in the Pennsylvania Fire

Information Reporting System. The office shall develop, at

its discretion, such procedures and forms as it may deem

necessary to facilitate loans for PennFIRS hardware and

software. The loans shall be secured as required by law.

(a.1) Limitation.--Loans under this subchapter may be made

for any of the purposes of subsection (a) undertaken by a

[volunteer] fire company, volunteer ambulance service and

volunteer rescue [squad] service on or after November 4, 1975.

(b) Loans.--Loans made by the office in the amount of

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$30,000 or less shall be for a period of not more than ten

years. Loans in excess of $30,000 but not in excess of $100,000

shall be for a period of not more than 15 years. The payback

period of any loan in excess of $100,000, except a loan for

establishing or modernizing facilities, shall not exceed 20

years. The payback period for any loan in excess of $200,000 for

establishing or modernizing facilities shall not exceed 20

years. Loans shall be subject to the payment of interest at 2%

per year and shall be subject to such security as shall be

determined by the commissioner. 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 office and

transferred to the [Volunteer Companies Loan Fund] fund and

shall not be credited as payment of principal or interest on the

loan. Except as provided in subsection (a)(5) and (7), the

minimum amount of any loan shall be $10,000.

accompanied by a notarized financial statement of the

[volunteer] fire company, volunteer ambulance service or

volunteer rescue [squad] service and a financial plan to show

the amount of assets and projected revenues for the repayment of

the loan, any other obligations of the [volunteer] fire company,

volunteer ambulance service or volunteer rescue service and

operating expenses over the period of the loan. Every

application shall be accompanied by evidence sufficient to show

that all costs except the amount of the loan have been obtained

by assets of the [volunteer] fire company, volunteer ambulance

service or volunteer rescue service and other loans or sources

of revenue. If a [volunteer] fire company, volunteer ambulance

service or volunteer rescue [squad] service is unable to meet

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the 20% requirement of subsection (a), then a political

subdivision which is served by the [volunteer] fire company,

volunteer ambulance service or volunteer rescue service may

pledge its credit in the amount of funds necessary to satisfy

the 20% requirement and, if it does so, shall cosign the

application submitted by the [volunteer] fire company, volunteer

ambulance service or volunteer rescue service.

(d) Use.--Loans shall be used for the acquisition by

[volunteer] fire companies, volunteer ambulance services or

volunteer rescue services of new or used apparatus equipment,

new or used ambulances, new or used rescue vehicles, new or used

communications equipment, new or used accessory equipment or new

or used protective equipment or for the acquisition and

renovation of existing structures to house firefighting

equipment, ambulance or rescue vehicles or for the construction

or modernization of facilities and, except as provided in

subsection (a)(4), shall not be used for operating expenses or

for the refinancing of renovated structures, refinancing of

construction or modernization of facilities, apparatus

equipment, communication equipment, accessory equipment, nor,

except as provided in subsection (a)(4), shall be made or used

to reduce any debt or other obligations issued prior to the

effective date of this subchapter.

(e) Payment.--Loans made by the office shall be paid from

the [Volunteer Companies Loan Fund] fund to the [volunteer] fire

companies, volunteer ambulance services and volunteer rescue

[squads] services in accordance with guidelines and procedures

developed by the office.

(f) Deposit.--All payments of interest on the loans and the

principal thereof shall be deposited by the office in the

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[Volunteer Companies Loan Fund] fund.

(g) Eligibility.--A [volunteer] fire company, volunteer

ambulance service and volunteer rescue [squad] service shall be

eligible for a loan regardless of legal ownership in whole or in

part by any political subdivision of any facilities or apparatus

equipment used by the [volunteer] fire company, volunteer

ambulance service and volunteer rescue [squad] service. Any

equipment or facilities financed may be transferred to a

political subdivision served by the [volunteer] fire company,

volunteer ambulance service or volunteer rescue [squad] service

subject to such security as shall be determined by the

commissioner.

(h) Maximum amount.--Notwithstanding any other provision of

this section to the contrary, the maximum amount of any loan to

a [volunteer] fire company, volunteer ambulance service and

volunteer rescue [squad] service for the purchase of

firefighting apparatus, ambulances or rescue vehicles

manufactured or assembled in this Commonwealth, may exceed the

loan limits set forth in this section by $20,000.

(i) Aggregation of loans.--

(1) Subject to paragraph (2), a fire company, volunteer

rescue service or volunteer ambulance service shall not be

eligible for more than three loans at one time.

(2) If more than one fire company, volunteer rescue

service or volunteer ambulance service merge or consolidate

into a single entity, as determined by the commissioner, the

entity shall be eligible for not more than ten loans at one

time for a period of ten years from the date of the merger or

consolidation.

§ 7365. [Volunteer Companies Loan Fund] Fire Agency Loan

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Assistance Fund.

(a) General rule.--There is created a special fund in the

Treasury Department to be known as the [Volunteer Companies

Loan] Fire Agency Loan Assistance Fund to which shall be

credited all appropriations made by the General Assembly other

than appropriations for expenses of administering this

subchapter or grants from other sources to the office as well as

repayment of principal and interest on loans made under this

subchapter.

(b) Requisition.--Upon approval of the loan, the

commissioner shall routinely requisition from the [Volunteer

Companies Loan Fund] fund such amounts as shall be allocated by

the office for loans to [volunteer] fire companies, volunteer

ambulance services or volunteer rescue services. When and as the

amounts so allocated as loans to [volunteer] fire companies,

volunteer ambulance services or volunteer rescue services are

repaid pursuant to the terms of the agreements made and entered

into with the office, the office shall pay such amounts into the

[Volunteer Companies Loan Fund] fund, it being the intent of

this subchapter that the [Volunteer Companies Loan Fund] fund

shall operate as a revolving fund whereby all appropriations and

payments made thereto may be applied and reapplied to the

purposes of this subchapter.

Commissioner may use an amount up to $250,000 from the

[Volunteer Companies Loan Fund] fund for the administrative cost

of implementing the loan program under this subchapter.

§ 7366. Powers and duties of office.

(a) Mandatory.--The office has the following duties:

(1) To appoint agents and employees necessary to the

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administration of this subchapter and to prescribe their

duties and to fix their compensation within the limitations

provided by law.

(2) To accept grants from the Federal Government and any

other individual, agency or government for use in the

[Volunteer Companies Loan Fund] fund.

(3) To loan money over a term of years, but in no case

in excess of 20 years.

(3.1) To establish criteria to determine need for

firefighting apparatus, ambulances and rescue vehicles and to

establish guidelines and procedures for [volunteer] fire

companies, volunteer ambulance services or volunteer rescue

services to show just cause to determine that need.

(4) To promulgate regulations and develop guidelines and

procedures as it deems necessary to carry out its powers and

duties under this subchapter.

(b) Discretionary.--The office has the following powers:

(1) To require security for all loans.

(2) To specify priority of liens against any facilities,

apparatus equipment, ambulances, rescue vehicles or any

equipment purchased by [volunteer] fire companies, volunteer

ambulance services or volunteer rescue services using funds

loaned under this subchapter to pay all or any part of the

purchase price, as the office may require by established

guidelines and procedures. The commissioner may specify the

type of liens or collateral authorized as security under this

paragraph.

(3) To reject a loan application based on the criteria

established under subsection (a).

§ 7371. Disposition and use of proceeds.

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(a) General rule.--The proceeds realized from the sale of

bonds under this subchapter shall be paid into the [Volunteer

Companies Loan Fund] fund and are specifically dedicated to the

purposes of the referenda of November 4, 1975, November 3, 1981,

November 6, 1990, and November 5, 2002, as implemented by this

subchapter. The moneys shall be paid by the State Treasurer

periodically to those agencies or authorities authorized to

expend the moneys at such times and in such amounts as may be

necessary to satisfy the funding needs of the agency or

authority.

(b) Investing.--Pending their application to the purposes

authorized, moneys held or deposited by the State Treasurer may

be invested or reinvested as are other funds in the custody of

the State Treasurer in the manner provided by law. All earnings

received from the investment or deposit of such funds shall be

paid into the State treasury to the credit of the [Volunteer

Companies Loan Fund] fund.

§ 7376. Repayment obligations for principal and interest.

The General Assembly shall appropriate an amount equal to

moneys received from the office under section 7365 (relating to

[Volunteer Companies Loan] Fire Agency Loan Assistance Fund) and

such other moneys as may be necessary to meet repayment

obligations for principal and interest into the Volunteer

Company Loan Sinking Fund.

§ 7378. Temporary financing authorization.

* * *

(d) Proceeds.--The proceeds of all such temporary borrowings

shall be paid into the [Volunteer Companies Loan Fund] fund.

§ 7378.1. Referendum for additional indebtedness.

The following shall apply:

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(1) The question of incurring indebtedness of

$25,000,000 for loans to [volunteer] fire companies,

volunteer ambulance services and volunteer rescue [squads]

services for the purpose of establishing or modernizing

facilities to house firefighting apparatus equipment,

ambulances and rescue vehicles, and for purchasing

firefighting apparatus equipment, ambulances and rescue

vehicles, protective and communications equipment and any

other accessory equipment necessary for the proper

performance of such organizations' duties, shall be submitted

to the electors at the next primary, municipal or general

election held after July 15, 1976.

(2) The Secretary of the Commonwealth shall forthwith

certify the question to the county boards of election.

(3) The question shall be in substantially the following

form:

Do you favor the incurring of indebtedness of

$25,000,000 for loans to [volunteer] fire companies,

volunteer ambulance services and volunteer rescue

[squads] services for the purpose of establishing or

modernizing facilities to house firefighting apparatus

equipment, ambulances and rescue vehicles, and for

purchasing firefighting apparatus equipment, ambulances

and rescue vehicles, protective and communications

equipment, and any other accessory equipment necessary

for the proper performance of such organizations' duties?

(4) The election shall be conducted in accordance with

the act of June 3, 1937 (P.L.1333, No.320), known as the

Pennsylvania Election Code, except that the time limits for

advertisement of notice of the election may be waived as to

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the question.

(5) Proceeds of borrowing shall be used through loans to

[volunteer] fire companies, volunteer ambulance services and

volunteer rescue [squads] services pursuant to and for any

purpose established by this subchapter.

§ 7378.2. Authorization of contracts, reimbursement procedure

and amount.

The following shall apply:

(1) The Secretary of General Services is authorized to

enter into contracts with local [volunteer] fire companies,

volunteer ambulance services and volunteer rescue [companies]

services to provide services necessary to extinguish fires or

perform any other allied services on State-owned property.

(2) The Secretary of Transportation is authorized to

enter into contracts with local [volunteer] fire companies,

volunteer ambulance services and volunteer rescue [companies]

services to provide services necessary to extinguish fires or

perform any other allied services on limited access highways,

other than the Pennsylvania Turnpike.

§ 7378.3. Reimbursement procedure and amount.

The following shall apply:

(1) A contract between the Secretary of General Services

or the Secretary of Transportation and a local [volunteer]

fire company, volunteer ambulance service and volunteer

rescue [company] service shall provide that the Department of

General Services or the Department of Transportation shall,

monthly, upon receipt of proper proof, reimburse each

contracted [volunteer] fire company, volunteer ambulance

service and volunteer rescue [company] service attending and

providing fire control or other allied services on State-

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owned property or limited access highways, as the case may

be, a minimum amount of $50 for each verified fire or

emergency call and the cost of any special extinguishing

agents utilized, which the [volunteer] fire company,

volunteer ambulance service and volunteer rescue [company]

service made in the preceding month as certified by the

person in charge at the particular State-owned property or by

an individual or individuals designated by the Secretary of

Transportation to verify services rendered on limited access

highways.

(2) A contract between the Department of General

Services or the Department of Transportation and a local

volunteer ambulance service or volunteer rescue [company]

service shall also provide that the volunteer ambulance

service or volunteer rescue [company] service request

reimbursement from collectible insurance proceeds available

as a result of the fire or emergency situation for which the

volunteer ambulance service or volunteer rescue [company]

service provided allied services. Proceeds payable to the

volunteer ambulance service or volunteer rescue [company]

service shall be deducted from the reimbursement for services

provided pursuant to a contract entered into under this

subchapter. Prior to payment for services rendered, the local

volunteer ambulance service or volunteer rescue [company]

service shall provide proof that they requested reimbursement

from collectible insurance proceeds.

(3) A false alarm on State-owned property to which a

[volunteer] fire company, volunteer ambulance service or

volunteer rescue [company] service responds shall constitute

a fire or emergency call and shall be reimbursed at a rate

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set by the contract with the Secretary of General Services,

but shall not be less than $25 for each occurrence.

Section 5. This act shall take effect in 60 days.

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