| |
|
| |
| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
| |
| HOUSE BILL |
|
| |
| |
| 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 |
| |
1 | Amending Title 27 (Environmental Resources) of the Pennsylvania |
2 | Consolidated Statutes, providing for dam project loans; |
3 | authorizing certain indebtedness; providing for a referendum; |
4 | and establishing the Dam Project Fund and the Dam Project |
5 | Revolving Loan Fund. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | Section 1. Title 27 of the Pennsylvania Consolidated |
9 | Statutes is amended by adding a chapter to read: |
10 | CHAPTER 67 |
11 | DAM MANAGEMENT |
12 | Sec. |
13 | 6701. Definitions. |
14 | 6702. Authorization of indebtedness. |
15 | 6703. (Reserved). |
16 | 6704. General requirements of bonds. |
17 | 6705. Issuing officials. |
|
1 | 6706. Nature of bonds. |
2 | 6707. Signature on bonds. |
3 | 6708. Recitation on bonds. |
4 | 6709. Series of bonds. |
5 | 6710. Sale of bonds. |
6 | 6711. Temporary bonds. |
7 | 6712. Dam Project Fund. |
8 | 6713. Dedication of funds. |
9 | 6714. Revolving loan fund. |
10 | 6715. Use of revolving loan fund. |
11 | 6716. (Reserved). |
12 | 6717. (Reserved). |
13 | 6718. New bonds and coupons. |
14 | 6719. Application of accrued interest. |
15 | 6720. Maturity of bonds. |
16 | 6721. Referendum. |
17 | § 6701. Definitions. |
18 | The following words and phrases when used in this chapter |
19 | shall have the meanings given to them in this section unless the |
20 | context clearly indicates otherwise: |
21 | "Bonds." The bonds authorized to be issued or issued under |
22 | this chapter. |
23 | "Cost." The expenses incurred in connection with: |
24 | (1) The funding of dam removal, restoration and repair |
25 | projects. |
26 | (2) The interest or discount on bonds. |
27 | (3) The issuance of bonds. |
28 | (4) The procurement or provision of engineering, |
29 | inspection, relocation, legal, financial, planning, |
30 | geological, hydrological and other professional services, |
|
1 | estimates and advice, including the services of a bond |
2 | registrar or an authenticating agent. |
3 | (5) The issuance of bonds or any interest or discount |
4 | thereon. |
5 | (6) The administrative, organizational, operating or |
6 | other expenses incident to the financing and completing of |
7 | any project authorized by this chapter. |
8 | (7) The establishment of a reserve fund or funds for |
9 | working capital, operating, maintenance or replacement |
10 | expenses and for the payment or security of principal or |
11 | interest on bonds. |
12 | (8) The cost of all labor, materials, machinery and |
13 | equipment, lands, property, rights and easements, financing |
14 | charges, interest on bonds, notes or other obligations, plans |
15 | and specifications, surveys or estimates of costs and |
16 | revenues, engineering and legal services and all other |
17 | expenses necessary or incident to all or part of any project |
18 | authorized by this chapter. |
19 | (9) Reimbursement to any fund of the Commonwealth of |
20 | moneys that may have been transferred or advanced therefrom |
21 | to any fund established by this chapter or of any moneys that |
22 | may have expended therefrom for or in connection with any |
23 | project authorized by this chapter. |
24 | (10) The administrative cost to the local government |
25 | unit acting as a coapplicant to owners of private dams or to |
26 | private lake associations. |
27 | "Dam removal, restoration and repair project." The removal, |
28 | repair, restoration, construction, reconstruction or demolition |
29 | of dams, bulkheads, retention or detention basins or other |
30 | structures that impound water for water supply purposes, flood |
|
1 | control, recreation, wildlife habitat or fire protection. |
2 | "Department." The Department of Environmental Protection of |
3 | the Commonwealth. |
4 | "Government securities." Any bonds or other obligations that |
5 | as to principal and interest constitute direct obligations of or |
6 | are unconditionally guaranteed by the United States of America, |
7 | including obligations of any Federal agency, to the extent those |
8 | obligations are unconditionally guaranteed by the United States |
9 | of America, and any certificates or any other evidences of an |
10 | ownership interest in those obligations of or unconditionally |
11 | guaranteed by the United States of America or in specified |
12 | portions that may consist of the principal of or the interest on |
13 | those obligations. |
14 | "High hazard dam." A dam so located as to endanger populated |
15 | areas downstream by its failure. |
16 | "High hazard unsafe dam." A dam that is both a high hazard |
17 | and an unsafe dam. |
18 | "Local government unit." A county or a municipality, or any |
19 | agency, authority, board, commission or other instrumentality |
20 | thereof, any two or more counties or municipalities operating |
21 | jointly through an intergovernmental cooperation agreement |
22 | permitted by law or any agency, authority, board, commission or |
23 | other instrumentality thereof, and any other local or regional |
24 | entity created by the General Assembly as a political |
25 | subdivision of the Commonwealth, or any agency, authority, board |
26 | or commission or other instrumentality thereof. |
27 | "Secretary." The Secretary of Environmental Protection of |
28 | the Commonwealth. |
29 | "Unsafe dam." A dam designated by the Department of |
30 | Environmental Protection with deficiencies of such a nature that |
|
1 | if not corrected, the deficiencies could cause a failure of the |
2 | dam with subsequent loss of lives or substantial property |
3 | damage. |
4 | § 6702. Authorization of indebtedness. |
5 | (a) General rule.--Bonds of the Commonwealth are authorized |
6 | to be issued in the aggregate principal amount of $150,000,000, |
7 | as provided in this chapter, for the purposes of financing the |
8 | costs of dam removal, restoration and repair projects with |
9 | priority given to unsafe high hazard dams. |
10 | (b) Allocation.--Of the total principal amount authorized |
11 | pursuant to subsection (a): |
12 | (1) Fifty million dollars is allocated to the department |
13 | to finance the costs of State dam removal, restoration and |
14 | repair of State-owned dams. |
15 | (2) One hundred million dollars is allocated to the |
16 | department for the purpose of providing loans or other forms |
17 | of assistance other than full or matching grants to owners of |
18 | private dams, as coapplicants with local government units or |
19 | to local government units that own dams to finance the cost |
20 | of dam removal, restoration and repair projects undertaken by |
21 | or on behalf of the owners of dams. |
22 | (c) Use of loans.--Any loan authorized under this section |
23 | shall include up to 100% of the cost of a dam removal, |
24 | restoration and repair project. |
25 | (d) Loan terms.--A loan made to a local government unit that |
26 | owns dams or to an owner of a lake or stream with a local |
27 | government unit as coapplicant from the Dam Project Revolving |
28 | Loan Fund shall bear interest of not more than 2% per year, |
29 | shall be for a term of 20 years and shall be made in accordance |
30 | with criteria for other programs established by the department. |
|
1 | (e) Loan agreement.--A loan authorized under this section |
2 | shall be provided under the terms and conditions set forth in a |
3 | written loan agreement between the department and the person or |
4 | entity receiving the loan. |
5 | (f) Coapplicants required.--Loans awarded under this section |
6 | to owners of private dams shall require local government units |
7 | to act as coapplicants. The cost of payment of the principal and |
8 | interest on any loan made to the owner of a private dam as a |
9 | coapplicant with a local government unit shall be assessed, in |
10 | the same manner as provided for the assessment of local |
11 | improvements generally under the law, against the real estate |
12 | benefited thereby in proportion to and not in excess of the |
13 | benefits conferred, and such assessments shall bear interest and |
14 | penalties from the same time and at the same rate as assessments |
15 | for local improvements in the municipality where they are |
16 | imposed, and from the date of confirmation, shall be a first |
17 | lien upon the real estate assessed to the same extent and be |
18 | enforced and collected in the same manner as assessments for |
19 | local improvements. |
20 | (g) Administration.--The department shall administer the |
21 | program authorized pursuant to this section in accordance with |
22 | criteria for existing programs established under the law. The |
23 | department shall notify every local government unit and dam |
24 | owner of the availability of and the criteria for qualifying and |
25 | obtaining loans or other forms of assistance under the program. |
26 | (h) Loan payments to be deposited into fund.--Payments of |
27 | principal and interest on loans made from the Dam Project |
28 | Revolving Loan Fund shall be returned to that fund for use for |
29 | any authorized purpose to which moneys in the fund may be used. |
30 | § 6703. (Reserved). |
|
1 | § 6704. General requirements of bonds. |
2 | The bonds authorized under this chapter shall be serial |
3 | bonds, term bonds or a combination thereof and shall be known as |
4 | Dam Project Bonds. They shall be issued from time to time as the |
5 | issuing officials shall determine and may be issued in coupon |
6 | form, fully registered form or book-entry form. The bonds may be |
7 | subject to redemption prior to maturity and shall mature and be |
8 | paid not later than 35 years from the respective dates of their |
9 | issuance. |
10 | § 6705. Issuing officials. |
11 | The Governor, State Treasurer and Auditor General or any two |
12 | of these officials shall carry out the provisions of this |
13 | chapter relating to the issuance of bonds and shall determine |
14 | all matters in connection therewith, subject to the provisions |
15 | of this chapter. If an issuing official is absent from this |
16 | Commonwealth or incapable of acting for any reason, the powers |
17 | and duties of that issuing official shall be exercised and |
18 | performed by the person authorized by law to act in an official |
19 | capacity in the place of that issuing official. |
20 | § 6706. Nature of bonds. |
21 | Bonds issued in accordance with the provisions of this |
22 | chapter shall be direct obligations of the Commonwealth, and the |
23 | faith and credit of the Commonwealth are pledged for the payment |
24 | of the interest and redemption premium thereon, if any, when |
25 | due, and for the payment of the principal at maturity or earlier |
26 | redemption date. The principal of and interest on the bonds |
27 | shall be exempt from taxation by the Commonwealth or by any |
28 | county, municipality or other taxing entity of the Commonwealth. |
29 | § 6707. Signature on bonds. |
30 | The bonds shall be signed in the name of the Commonwealth by |
|
1 | means of the manual or facsimile signature of the Governor under |
2 | the Great Seal of the Commonwealth, which seal may be by |
3 | facsimile or by way of any other form of reproduction on the |
4 | bonds, and attested by the manual or facsimile signature of the |
5 | Secretary of State and shall be countersigned by the facsimile |
6 | signature of the State Treasurer and may be manually |
7 | authenticated by an authenticating agent or bond registrar, as |
8 | the issuing official shall determine. Interest coupons, if any, |
9 | attached to the bonds shall be signed by the facsimile signature |
10 | of the State Treasurer. The bonds may be issued notwithstanding |
11 | that an official signing them or whose manual or facsimile |
12 | signature appears on the bonds or coupons has ceased to hold |
13 | office at the time of issuance or at the delivery of the bonds |
14 | to the purchaser thereof. |
15 | § 6708. Recitation on bonds. |
16 | (a) General rule.--The bonds shall recite that they are |
17 | issued for the purposes set forth in this chapter, that they are |
18 | issued pursuant to this chapter, that this chapter was submitted |
19 | to the people of this Commonwealth at the general election and |
20 | that this chapter was approved by a majority of the legally |
21 | qualified voters of this Commonwealth voting thereon at the |
22 | election. This recital shall be conclusive evidence of the |
23 | authority of the Commonwealth to issue the bonds and their |
24 | validity. Any bonds containing this recital shall, in any suit, |
25 | action or proceeding involving their validity, be conclusively |
26 | deemed to be fully authorized by this chapter and to have been |
27 | issued, sold, executed and delivered in conformity with this |
28 | chapter and with all other provisions of law applicable to this |
29 | chapter and shall be incontestable for any cause. |
30 | (b) Form.--The bonds shall be issued in those denominations |
|
1 | and in the form or forms, whether coupon, fully registered or |
2 | book-entry, and with or without provisions for |
3 | interchangeability thereof, as may be determined by the issuing |
4 | officials. |
5 | § 6709. Series of bonds. |
6 | When the bonds are issued from time to time, the bonds of |
7 | each issue shall constitute a separate series to be designated |
8 | by issuing officials. Each series of bonds shall bear such rate |
9 | or rates of interest as may be determined by the issuing |
10 | officials, which interest shall be payable semiannually except |
11 | that the first and last interest periods may be longer or |
12 | shorter in order that intervening semiannual payments may be at |
13 | convenient dates. |
14 | § 6710. Sale of bonds. |
15 | The bonds shall be issued and sold at the price or prices and |
16 | under the terms, conditions and regulations as the issuing |
17 | officials may prescribe, after notice of the sale, published at |
18 | least once in at least three newspapers published in this |
19 | Commonwealth, and at least once in a publication carrying |
20 | municipal bond notices and devoted primarily to financial news, |
21 | published in this Commonwealth, the first notice to appear at |
22 | least five days prior to the day of bidding. The notice of sale |
23 | may contain a provision to the effect that any bid in pursuance |
24 | thereof may be rejected. In the event of rejection or failure to |
25 | receive any acceptable bid, the issuing officials, at any time |
26 | within 60 days from the date of the advertised sale, may sell |
27 | the bonds at a private sale at such price or prices under the |
28 | terms and conditions as the issuing officials may prescribe. The |
29 | issuing officials may sell all or part of the bonds of any |
30 | series as issued to any State fund or to the Federal Government |
|
1 | or any agency thereof, at a private sale, without advertisement. |
2 | § 6711. Temporary bonds. |
3 | Until permanent bonds are prepared, the issuing officials may |
4 | issue temporary bonds in the form and with those privileges as |
5 | to their registration and exchange for permanent bonds as may be |
6 | determined by the issuing officials. |
7 | § 6712. Dam Project Fund. |
8 | The proceeds from the sale of bonds used to provide |
9 | assistance other than full or matching grants to owners of dams |
10 | for dam removal, restoration and repair projects or State dam |
11 | removal, restoration and repair projects shall be paid to the |
12 | State Treasurer and be held by the State Treasurer in a separate |
13 | fund, and be deposited in such depositories as may be selected |
14 | by the State Treasurer to the credit of the fund, which fund |
15 | shall be known as the Dam Project Fund. |
16 | § 6713. Dedication of funds. |
17 | (a) General rule.--The moneys in the Dam Project Fund are |
18 | specifically dedicated and shall be applied to the cost of |
19 | assistance, other than full or matching grants, to owners of |
20 | dams for dam removal, lakes or streams or private lake |
21 | associations for dam removal, restoration and repair projects or |
22 | State dam removal, restoration and repair projects as set forth |
23 | in section 6702 (relating to authorization of indebtedness). |
24 | However, no moneys in the fund shall be expended for those |
25 | purposes except as otherwise authorized by this chapter without |
26 | the specific appropriation provided for in this chapter. Any act |
27 | appropriating moneys from the Dam Project Fund shall identify |
28 | the project to be funded by the moneys. |
29 | (b) Transfer of moneys.--At any time prior to the issuance |
30 | and sale of bonds under this chapter, the State Treasurer may |
|
1 | transfer from any available moneys in any fund of the State |
2 | Treasury to the credit of the Dam Project Fund those sums as the |
3 | State Treasurer may deem necessary. The sums so transferred |
4 | shall be returned to the same fund of State Treasury by the |
5 | State Treasurer from the proceeds of the sale of the first issue |
6 | of bonds. |
7 | (c) Investments.--Pending their application to the purposes |
8 | provided in this chapter, the moneys in the Dam Project Fund may |
9 | be invested and reinvested as are other trust funds in the |
10 | custody of the State Treasurer, in the manner provided by law. |
11 | Net earnings received from the investment or deposit of moneys |
12 | in the Dam Project Fund shall be paid into the General Fund. |
13 | § 6714. Revolving loan fund. |
14 | The proceeds from the sale of bonds used to provide loans to |
15 | owners of dams for dam removal, lakes or streams for dam |
16 | removal, restoration and repair projects shall be paid to the |
17 | State Treasurer and be held by the State Treasurer in a separate |
18 | fund and be deposited in such depositories as may be selected by |
19 | the State Treasurer to the credit of the fund, which fund shall |
20 | be known as the Dam Project Revolving Loan Fund. |
21 | § 6715. Use of revolving loan fund. |
22 | (a) General rule.--The moneys in the Dam Project Revolving |
23 | Loan Fund are specifically dedicated and shall be applied to the |
24 | cost of making low-interest loans to owners of dams for dam |
25 | removal, lakes or streams for dam removal, restoration and |
26 | repair projects, as set forth in section 6702 (relating to |
27 | authorization of indebtedness). However, no moneys in the fund |
28 | shall be expended for those purposes except as otherwise |
29 | authorized by this chapter without the specific appropriation |
30 | thereof, but bonds may be issued as provided in this chapter. |
|
1 | Any act appropriating moneys from the Dam Project Revolving Loan |
2 | Fund shall identify the project to be funded by the moneys. |
3 | (b) Term of loans.--A loan issued from the Dam Project |
4 | Revolving Loan Fund shall be for a term as determined by the |
5 | secretary not to exceed 20 years and at an interest rate |
6 | determined by the secretary not to exceed 2% per year. The terms |
7 | of any loan agreement shall be approved by the State Treasurer. |
8 | Any loan made from the Dam Project Revolving Loan Fund shall be |
9 | awarded pursuant to section 6702 based upon the criteria and |
10 | procedures established for existing programs under the law, |
11 | except that no matching funds shall be required of loan |
12 | applicants. |
13 | (c) Transfer of moneys.--At any time prior to the issuance |
14 | and sale of bonds under this chapter, the State Treasurer may |
15 | transfer any available moneys in any fund of the State Treasury |
16 | to the credit of the Dam Project Revolving Loan Fund those sums |
17 | as the State Treasurer may deem necessary. The sums so |
18 | transferred shall be returned to the same fund of the State |
19 | Treasury by the State Treasurer from the proceeds of the sale of |
20 | the first issue of bonds. |
21 | (d) Investments.--Pending their application to the purposes |
22 | provided in this chapter, the moneys in the Dam Project |
23 | Revolving Loan Fund may be invested and reinvested as are other |
24 | trust funds in the custody of the State Treasurer, in the manner |
25 | provided by law. All repayments of loans made pursuant to this |
26 | chapter and interest thereon shall be deposited in the Dam |
27 | Project Revolving Loan Fund. Earnings received from moneys in |
28 | the fund shall be credited to the fund. |
29 | § 6716. (Reserved). |
30 | § 6717. (Reserved). |
|
1 | § 6718. New bonds and coupons. |
2 | If any coupon bond, coupon or registered bond is lost, |
3 | mutilated or destroyed, a new bond or coupon shall be executed |
4 | and delivered of like tenor, in substitution for the lost, |
5 | mutilated or destroyed bond or coupon, upon the owner furnishing |
6 | to the issuing officials evidence satisfactory to them of the |
7 | loss, mutilation or destruction of the bond or coupon, the |
8 | ownership thereof, and security, indemnity and reimbursement for |
9 | expenses connected therewith, as the issuing officials may |
10 | require. |
11 | § 6719. Application of accrued interest. |
12 | The accrued interest, if any, received upon the sale of the |
13 | bonds shall be applied to the discharge of a like amount of |
14 | interest upon the bonds when due. Any expense incurred by the |
15 | issuing officials for advertising, engraving, printing, |
16 | clerical, authenticating, registering, legal or other services |
17 | necessary to carry out the duties imposed upon them by the |
18 | provisions of this chapter shall be paid from the proceeds of |
19 | the sale of the bonds by the State Treasurer, upon the warrant |
20 | of the Auditor General, in the same manner as other obligations |
21 | of the Commonwealth are paid. |
22 | § 6720. Maturity of bonds. |
23 | Bonds of each series issued under this chapter shall mature, |
24 | including any sinking fund redemptions, not later than the 35th |
25 | year from the date of issue of that series, and in amounts as |
26 | shall be determined by the issuing officials. The issuing |
27 | officials may reserve to the Commonwealth by appropriate |
28 | provision in the bonds of any series the power to redeem any of |
29 | the bonds prior to maturity at the price or prices and upon the |
30 | terms and conditions as may be provided in the bonds. |
|
1 | § 6721. Referendum. |
2 | (a) Question.--The question of incurring indebtedness under |
3 | this chapter shall be submitted to the electors at the next |
4 | primary, municipal or general election following the effective |
5 | date of this section. |
6 | (b) Certification.--The Secretary of the Commonwealth shall |
7 | certify the form of the question under subsection (c) to the |
8 | county boards of elections. |
9 | (c) Form of question.--The question shall be substantially |
10 | in the following form: |
11 | Do you favor the issuance of debt in the amount of |
12 | $ for the purposes of providing financing in the |
13 | form of loans for the removal, restoration and repair of |
14 | dams. |
15 | (d) Election.--The election shall be conducted at the next |
16 | occurring general or municipal election following the effective |
17 | date of this section, in accordance with the act of June 3, 1937 |
18 | (P.L.1333, No.320), known as the Pennsylvania Election Code, |
19 | except that the time limits for advertisement of notice of the |
20 | election may be waived as to the question. |
21 | (e) Proceeds.--Proceeds of borrowing shall be deposited as |
22 | provided under this chapter. |
23 | Section 2. This act shall take effect in 60 days. |
|