Bill Text: PA HB1068 | 2009-2010 | Regular Session | Introduced

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Bill Title: Providing for dam project loans; authorizing certain indebtedness; providing for a referendum; and establishing the Dam Project Fund and the Dam Project Revolving Loan Fund.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-03-24 - Referred to ENVIRONMENTAL RESOURCES AND ENERGY [HB1068 Detail]

Download: Pennsylvania-2009-HB1068-Introduced.html

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PRINTER'S NO. 1250
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1068 Session of2009
INTRODUCED BY SCAVELLO, SIPTROTH, PEIFER, CARROLL, ARGALL, CLYMER, CREIGHTON, DALLY, FABRIZIO, FREEMAN, GEIST, GIBBONS, GOODMAN, HENNESSEY, KORTZ, KOTIK, MAJOR, MARSHALL, METZGAR, MUNDY, MURT, O'NEILL, PETRARCA, PICKETT, REICHLEY, SANTONI, SOLOBAY, STABACK, J. TAYLOR, VULAKOVICH, WALKO, WATSON, WHITE AND YOUNGBLOOD, MARCH 24, 2009
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, MARCH 24, 2009
AN ACT
Amending Title 27 (Environmental Resources) of the Pennsylvania
Consolidated Statutes, providing for dam project loans;
authorizing certain indebtedness; providing for a referendum;
and establishing the Dam Project Fund and the Dam Project
Revolving Loan Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 27 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 67
DAM MANAGEMENT
Sec.
6701. Definitions.
6702. Authorization of indebtedness.
6703. (Reserved).
6704. General requirements of bonds.
6705. Issuing officials.
6706. Nature of bonds.
6707. Signature on bonds.
6708. Recitation on bonds.
6709. Series of bonds.
6710. Sale of bonds.
6711. Temporary bonds.
6712. Dam Project Fund.
6713. Dedication of funds.
6714. Revolving loan fund.
6715. Use of revolving loan fund.
6716. (Reserved).
6717. (Reserved).
6718. New bonds and coupons.
6719. Application of accrued interest.
6720. Maturity of bonds.
6721. Referendum.
§ 6701. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Bonds." The bonds authorized to be issued or issued under
this chapter.
"Cost." The expenses incurred in connection with:
(1) The funding of dam removal, restoration and repair
projects.
(2) The interest or discount on bonds.
(3) The issuance of bonds.
(4) The procurement or provision of engineering,
inspection, relocation, legal, financial, planning,
geological, hydrological and other professional services,
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estimates and advice, including the services of a bond
registrar or an authenticating agent.
(5) The issuance of bonds or any interest or discount
thereon.
(6) The administrative, organizational, operating or
other expenses incident to the financing and completing of
any project authorized by this chapter.
(7) The establishment of a reserve fund or funds for
working capital, operating, maintenance or replacement
expenses and for the payment or security of principal or
interest on bonds.
(8) The cost of all labor, materials, machinery and
equipment, lands, property, rights and easements, financing
charges, interest on bonds, notes or other obligations, plans
and specifications, surveys or estimates of costs and
revenues, engineering and legal services and all other
expenses necessary or incident to all or part of any project
authorized by this chapter.
(9) Reimbursement to any fund of the Commonwealth of
moneys that may have been transferred or advanced therefrom
to any fund established by this chapter or of any moneys that
may have expended therefrom for or in connection with any
project authorized by this chapter.
(10) The administrative cost to the local government
unit acting as a coapplicant to owners of private dams or to
private lake associations.
"Dam removal, restoration and repair project." The removal,
repair, restoration, construction, reconstruction or demolition
of dams, bulkheads, retention or detention basins or other
structures that impound water for water supply purposes, flood
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control, recreation, wildlife habitat or fire protection.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Government securities." Any bonds or other obligations that
as to principal and interest constitute direct obligations of or
are unconditionally guaranteed by the United States of America,
including obligations of any Federal agency, to the extent those
obligations are unconditionally guaranteed by the United States
of America, and any certificates or any other evidences of an
ownership interest in those obligations of or unconditionally
guaranteed by the United States of America or in specified
portions that may consist of the principal of or the interest on
those obligations.
"High hazard dam." A dam so located as to endanger populated
areas downstream by its failure.
"High hazard unsafe dam." A dam that is both a high hazard
and an unsafe dam.
"Local government unit." A county or a municipality, or any
agency, authority, board, commission or other instrumentality
thereof, any two or more counties or municipalities operating
jointly through an intergovernmental cooperation agreement
permitted by law or any agency, authority, board, commission or
other instrumentality thereof, and any other local or regional
entity created by the General Assembly as a political
subdivision of the Commonwealth, or any agency, authority, board
or commission or other instrumentality thereof.
"Secretary." The Secretary of Environmental Protection of
the Commonwealth.
"Unsafe dam." A dam designated by the Department of
Environmental Protection with deficiencies of such a nature that
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if not corrected, the deficiencies could cause a failure of the
dam with subsequent loss of lives or substantial property
damage.
§ 6702. Authorization of indebtedness.
(a) General rule.--Bonds of the Commonwealth are authorized
to be issued in the aggregate principal amount of $150,000,000,
as provided in this chapter, for the purposes of financing the
costs of dam removal, restoration and repair projects with
priority given to unsafe high hazard dams.
(b) Allocation.--Of the total principal amount authorized
pursuant to subsection (a):
(1) Fifty million dollars is allocated to the department
to finance the costs of State dam removal, restoration and
repair of State-owned dams.
(2) One hundred million dollars is allocated to the
department for the purpose of providing loans or other forms
of assistance other than full or matching grants to owners of
private dams, as coapplicants with local government units or
to local government units that own dams to finance the cost
of dam removal, restoration and repair projects undertaken by
or on behalf of the owners of dams.
(c) Use of loans.--Any loan authorized under this section
shall include up to 100% of the cost of a dam removal,
restoration and repair project.
(d) Loan terms.--A loan made to a local government unit that
owns dams or to an owner of a lake or stream with a local
government unit as coapplicant from the Dam Project Revolving
Loan Fund shall bear interest of not more than 2% per year,
shall be for a term of 20 years and shall be made in accordance
with criteria for other programs established by the department.
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(e) Loan agreement.--A loan authorized under this section
shall be provided under the terms and conditions set forth in a
written loan agreement between the department and the person or
entity receiving the loan.
(f) Coapplicants required.--Loans awarded under this section
to owners of private dams shall require local government units
to act as coapplicants. The cost of payment of the principal and
interest on any loan made to the owner of a private dam as a
coapplicant with a local government unit shall be assessed, in
the same manner as provided for the assessment of local
improvements generally under the law, against the real estate
benefited thereby in proportion to and not in excess of the
benefits conferred, and such assessments shall bear interest and
penalties from the same time and at the same rate as assessments
for local improvements in the municipality where they are
imposed, and from the date of confirmation, shall be a first
lien upon the real estate assessed to the same extent and be
enforced and collected in the same manner as assessments for
local improvements.
(g) Administration.--The department shall administer the
program authorized pursuant to this section in accordance with
criteria for existing programs established under the law. The
department shall notify every local government unit and dam
owner of the availability of and the criteria for qualifying and
obtaining loans or other forms of assistance under the program.
(h) Loan payments to be deposited into fund.--Payments of
principal and interest on loans made from the Dam Project
Revolving Loan Fund shall be returned to that fund for use for
any authorized purpose to which moneys in the fund may be used.
§ 6703. (Reserved).
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§ 6704. General requirements of bonds.
The bonds authorized under this chapter shall be serial
bonds, term bonds or a combination thereof and shall be known as
Dam Project Bonds. They shall be issued from time to time as the
issuing officials shall determine and may be issued in coupon
form, fully registered form or book-entry form. The bonds may be
subject to redemption prior to maturity and shall mature and be
paid not later than 35 years from the respective dates of their
issuance.
§ 6705. Issuing officials.
The Governor, State Treasurer and Auditor General or any two
of these officials shall carry out the provisions of this
chapter relating to the issuance of bonds and shall determine
all matters in connection therewith, subject to the provisions
of this chapter. If an issuing official is absent from this
Commonwealth or incapable of acting for any reason, the powers
and duties of that issuing official shall be exercised and
performed by the person authorized by law to act in an official
capacity in the place of that issuing official.
§ 6706. Nature of bonds.
Bonds issued in accordance with the provisions of this
chapter shall be direct obligations of the Commonwealth, and the
faith and credit of the Commonwealth are pledged for the payment
of the interest and redemption premium thereon, if any, when
due, and for the payment of the principal at maturity or earlier
redemption date. The principal of and interest on the bonds
shall be exempt from taxation by the Commonwealth or by any
county, municipality or other taxing entity of the Commonwealth.
§ 6707. Signature on bonds.
The bonds shall be signed in the name of the Commonwealth by
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means of the manual or facsimile signature of the Governor under
the Great Seal of the Commonwealth, which seal may be by
facsimile or by way of any other form of reproduction on the
bonds, and attested by the manual or facsimile signature of the
Secretary of State and shall be countersigned by the facsimile
signature of the State Treasurer and may be manually
authenticated by an authenticating agent or bond registrar, as
the issuing official shall determine. Interest coupons, if any,
attached to the bonds shall be signed by the facsimile signature
of the State Treasurer. The bonds may be issued notwithstanding
that an official signing them or whose manual or facsimile
signature appears on the bonds or coupons has ceased to hold
office at the time of issuance or at the delivery of the bonds
to the purchaser thereof.
§ 6708. Recitation on bonds.
(a) General rule.--The bonds shall recite that they are
issued for the purposes set forth in this chapter, that they are
issued pursuant to this chapter, that this chapter was submitted
to the people of this Commonwealth at the general election and
that this chapter was approved by a majority of the legally
qualified voters of this Commonwealth voting thereon at the
election. This recital shall be conclusive evidence of the
authority of the Commonwealth to issue the bonds and their
validity. Any bonds containing this recital shall, in any suit,
action or proceeding involving their validity, be conclusively
deemed to be fully authorized by this chapter and to have been
issued, sold, executed and delivered in conformity with this
chapter and with all other provisions of law applicable to this
chapter and shall be incontestable for any cause.
(b) Form.--The bonds shall be issued in those denominations
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and in the form or forms, whether coupon, fully registered or
book-entry, and with or without provisions for
interchangeability thereof, as may be determined by the issuing
officials.
§ 6709. Series of bonds.
When the bonds are issued from time to time, the bonds of
each issue shall constitute a separate series to be designated
by issuing officials. Each series of bonds shall bear such rate
or rates of interest as may be determined by the issuing
officials, which interest shall be payable semiannually except
that the first and last interest periods may be longer or
shorter in order that intervening semiannual payments may be at
convenient dates.
§ 6710. Sale of bonds.
The bonds shall be issued and sold at the price or prices and
under the terms, conditions and regulations as the issuing
officials may prescribe, after notice of the sale, published at
least once in at least three newspapers published in this
Commonwealth, and at least once in a publication carrying
municipal bond notices and devoted primarily to financial news,
published in this Commonwealth, the first notice to appear at
least five days prior to the day of bidding. The notice of sale
may contain a provision to the effect that any bid in pursuance
thereof may be rejected. In the event of rejection or failure to
receive any acceptable bid, the issuing officials, at any time
within 60 days from the date of the advertised sale, may sell
the bonds at a private sale at such price or prices under the
terms and conditions as the issuing officials may prescribe. The
issuing officials may sell all or part of the bonds of any
series as issued to any State fund or to the Federal Government
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or any agency thereof, at a private sale, without advertisement.
§ 6711. Temporary bonds.
Until permanent bonds are prepared, the issuing officials may
issue temporary bonds in the form and with those privileges as
to their registration and exchange for permanent bonds as may be
determined by the issuing officials.
§ 6712. Dam Project Fund.
The proceeds from the sale of bonds used to provide
assistance other than full or matching grants to owners of dams
for dam removal, restoration and repair projects or State dam
removal, restoration and repair projects shall be paid to the
State Treasurer and be held by the State Treasurer in a separate
fund, and be deposited in such depositories as may be selected
by the State Treasurer to the credit of the fund, which fund
shall be known as the Dam Project Fund.
§ 6713. Dedication of funds.
(a) General rule.--The moneys in the Dam Project Fund are
specifically dedicated and shall be applied to the cost of
assistance, other than full or matching grants, to owners of
dams for dam removal, lakes or streams or private lake
associations for dam removal, restoration and repair projects or
State dam removal, restoration and repair projects as set forth
in section 6702 (relating to authorization of indebtedness).
However, no moneys in the fund shall be expended for those
purposes except as otherwise authorized by this chapter without
the specific appropriation provided for in this chapter. Any act
appropriating moneys from the Dam Project Fund shall identify
the project to be funded by the moneys.
(b) Transfer of moneys.--At any time prior to the issuance
and sale of bonds under this chapter, the State Treasurer may
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transfer from any available moneys in any fund of the State
Treasury to the credit of the Dam Project Fund those sums as the
State Treasurer may deem necessary. The sums so transferred
shall be returned to the same fund of State Treasury by the
State Treasurer from the proceeds of the sale of the first issue
of bonds.
(c) Investments.--Pending their application to the purposes
provided in this chapter, the moneys in the Dam Project Fund may
be invested and reinvested as are other trust funds in the
custody of the State Treasurer, in the manner provided by law.
Net earnings received from the investment or deposit of moneys
in the Dam Project Fund shall be paid into the General Fund.
§ 6714. Revolving loan fund.
The proceeds from the sale of bonds used to provide loans to
owners of dams for dam removal, lakes or streams for dam
removal, restoration and repair projects shall be paid to the
State Treasurer and be held by the State Treasurer in a separate
fund and be deposited in such depositories as may be selected by
the State Treasurer to the credit of the fund, which fund shall
be known as the Dam Project Revolving Loan Fund.
§ 6715. Use of revolving loan fund.
(a) General rule.--The moneys in the Dam Project Revolving
Loan Fund are specifically dedicated and shall be applied to the
cost of making low-interest loans to owners of dams for dam
removal, lakes or streams for dam removal, restoration and
repair projects, as set forth in section 6702 (relating to
authorization of indebtedness). However, no moneys in the fund
shall be expended for those purposes except as otherwise
authorized by this chapter without the specific appropriation
thereof, but bonds may be issued as provided in this chapter.
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Any act appropriating moneys from the Dam Project Revolving Loan
Fund shall identify the project to be funded by the moneys.
(b) Term of loans.--A loan issued from the Dam Project
Revolving Loan Fund shall be for a term as determined by the
secretary not to exceed 20 years and at an interest rate
determined by the secretary not to exceed 2% per year. The terms
of any loan agreement shall be approved by the State Treasurer.
Any loan made from the Dam Project Revolving Loan Fund shall be
awarded pursuant to section 6702 based upon the criteria and
procedures established for existing programs under the law,
except that no matching funds shall be required of loan
applicants.
(c) Transfer of moneys.--At any time prior to the issuance
and sale of bonds under this chapter, the State Treasurer may
transfer any available moneys in any fund of the State Treasury
to the credit of the Dam Project Revolving Loan Fund those sums
as the State Treasurer may deem necessary. The sums so
transferred shall be returned to the same fund of the State
Treasury by the State Treasurer from the proceeds of the sale of
the first issue of bonds.
(d) Investments.--Pending their application to the purposes
provided in this chapter, the moneys in the Dam Project
Revolving Loan Fund may be invested and reinvested as are other
trust funds in the custody of the State Treasurer, in the manner
provided by law. All repayments of loans made pursuant to this
chapter and interest thereon shall be deposited in the Dam
Project Revolving Loan Fund. Earnings received from moneys in
the fund shall be credited to the fund.
§ 6716. (Reserved).
§ 6717. (Reserved).
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§ 6718. New bonds and coupons.
If any coupon bond, coupon or registered bond is lost,
mutilated or destroyed, a new bond or coupon shall be executed
and delivered of like tenor, in substitution for the lost,
mutilated or destroyed bond or coupon, upon the owner furnishing
to the issuing officials evidence satisfactory to them of the
loss, mutilation or destruction of the bond or coupon, the
ownership thereof, and security, indemnity and reimbursement for
expenses connected therewith, as the issuing officials may
require.
§ 6719. Application of accrued interest.
The accrued interest, if any, received upon the sale of the
bonds shall be applied to the discharge of a like amount of
interest upon the bonds when due. Any expense incurred by the
issuing officials for advertising, engraving, printing,
clerical, authenticating, registering, legal or other services
necessary to carry out the duties imposed upon them by the
provisions of this chapter shall be paid from the proceeds of
the sale of the bonds by the State Treasurer, upon the warrant
of the Auditor General, in the same manner as other obligations
of the Commonwealth are paid.
§ 6720. Maturity of bonds.
Bonds of each series issued under this chapter shall mature,
including any sinking fund redemptions, not later than the 35th
year from the date of issue of that series, and in amounts as
shall be determined by the issuing officials. The issuing
officials may reserve to the Commonwealth by appropriate
provision in the bonds of any series the power to redeem any of
the bonds prior to maturity at the price or prices and upon the
terms and conditions as may be provided in the bonds.
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§ 6721. Referendum.
(a) Question.--The question of incurring indebtedness under
this chapter shall be submitted to the electors at the next
primary, municipal or general election following the effective
date of this section.
(b) Certification.--The Secretary of the Commonwealth shall
certify the form of the question under subsection (c) to the
county boards of elections.
(c) Form of question.--The question shall be substantially
in the following form:
Do you favor the issuance of debt in the amount of
$ for the purposes of providing financing in the
form of loans for the removal, restoration and repair of
dams.
(d) Election.--The election shall be conducted at the next
occurring general or municipal election following the effective
date of this section, 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 the question.
(e) Proceeds.--Proceeds of borrowing shall be deposited as
provided under this chapter.
Section 2. This act shall take effect in 60 days.
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