Bill Text: PA HB1118 | 2009-2010 | Regular Session | Introduced

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Bill Title: Authorizing the incurring of indebtedness, with the approval of the electors, of $400,000,000 for the acquisition, repair, construction, reconstruction, rehabilitation, extension, expansion and improvement of Pennsylvania infrastructure, including roads, bridges, railroads, dams, water supply and sewage treatment systems, energy, communications, flood control measures and any other such infrastructure the Pennsylvania Infrastructure Investment Authority deems relevant; and providing for the powers and duties of the Pennsylvania Infrastructure Investment Authority.

Spectrum: Slight Partisan Bill (Republican 11-4)

Status: (Introduced - Dead) 2009-03-25 - Referred to APPROPRIATIONS [HB1118 Detail]

Download: Pennsylvania-2009-HB1118-Introduced.html

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PRINTER'S NO. 1314
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1118 Session of2009
INTRODUCED BY PETRI, CUTLER, FAIRCHILD, GEIST, GEORGE, GINGRICH, LONGIETTI, SCAVELLO, SIPTROTH, K. SMITH, J. TAYLOR AND WATSON, MARCH 25, 2009
REFERRED TO COMMITTEE ON APPROPRIATIONS, MARCH 25, 2009
AN ACT
Authorizing the incurring of indebtedness, with the approval of
the electors, of $400,000,000 for the acquisition, repair,
construction, reconstruction, rehabilitation, extension,
expansion and improvement of Pennsylvania infrastructure,
including roads, bridges, railroads, dams, water supply and
sewage treatment systems, energy, communications, flood
control measures and any other such infrastructure the
Pennsylvania Infrastructure Investment Authority deems
relevant; and providing for the powers and duties of the
Pennsylvania Infrastructure Investment Authority.
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 Rebuild
Pennsylvania Infrastructure Assistance 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:
"Board." The board of directors of the Pennsylvania
Infrastructure Investment Authority.
"Fund." The Pennsylvania Infrastructure Bond Fund.
"Infrastructure." Technical structures that support a
society, including roads, bridges, railroads, dams, water supply
and sewage treatment systems, energy, communications, flood
control measures and any other such structures the Pennsylvania
Infrastructure Investment Authority deems relevant.
Section 3. Approval of debt incurrence by electors.
The question of incurring indebtedness of $400,000,000 for
grants and loans for the cost of all labor, materials, necessary
operational machinery and equipment, lands, property, rights and
easements, plans and specifications, surveys, estimates of costs
and revenues, prefeasibility studies, engineering and legal
services and all other expenses necessary or incident to the
acquisition, construction, improvement, expansion, extension,
repair or rehabilitation of all or part of a project shall be
submitted to the electors at the next primary, municipal or
general election following the effective date of this act.
Section 4. Certification.
The Secretary of the Commonwealth shall certify the question
under section 5 to the county board of elections.
Section 5. Form of question.
The question under section 3 shall be in substantially the
following form:
Do you favor the incurring of indebtedness of $400,000,000
for grants and loans for the cost of all labor, materials,
necessary operational machinery and equipment, lands,
property, rights and easements, plans and specifications,
surveys, estimates of costs and revenues, prefeasibility
studies, engineering and legal services and all other
expenses necessary or incident to the acquisition,
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construction, improvement, expansion, extension, repair or
rehabilitation of all or part of Pennsylvania infrastructure,
including roads, bridges, railroads, dams, water supply and
sewage treatment systems, energy, communications, flood
control measures and any other such infrastructure the
Pennsylvania Infrastructure Investment Authority deems
relevant?
Section 6. Election.
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.
Section 7. Pennsylvania Infrastructure Bond Fund.
(a) Purpose of fund.--The Pennsylvania Infrastructure Bond
Fund, which is created in the State Treasury, shall be the
source from which all payments are authorized with the approval
of the Governor to carry out the purposes of this act. The
moneys in the fund shall only be utilized:
(1) For the acquisition, repair, construction,
reconstruction, rehabilitation, extension, expansion and
improvement of Pennsylvania infrastructure, including roads,
bridges, railroads, dams, water supply and sewage treatment
systems, energy, communications, flood control measures and
any other such infrastructure the Pennsylvania Infrastructure
Investment Authority deems relevant.
(2) For the administrative costs incurred in any of the
purposes in paragraph (1), including the costs incurred in
connection with the issuance of the bonds.
(b) Interfund transfers authorized.--
(1) Whenever the cash balance and the current estimated
receipts of the fund shall be insufficient at any time during
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any State fiscal year to meet promptly the obligations of the
Commonwealth from such fund, the State Treasurer is hereby
authorized and directed, from time to time during such fiscal
year, to transfer from the General Fund to the fund such sums
as the Governor directs, but in no case less than the amount
necessary to meet promptly the obligations to be paid from
the fund, nor more than an amount which is the smaller of:
(i) the difference between the amount of debt
authorized to be issued under the authority of this act
and the aggregate principal amount of bonds and notes
issued, not including refunding bonds and replacement
notes; and
(ii) the difference between the aggregate principal
amount of bonds and notes, not including refunding bonds
and replacement notes, issued during such State fiscal
year.
Any sums so transferred shall be available only for the
purposes for which they are appropriated from the fund. The
transfers shall be made under this section upon warrant of
the State Treasurer upon requisition of the Governor.
(2) In order to reimburse the General Fund for moneys
transferred under paragraph (1), there shall be transferred
to the General Fund from the fund moneys from the proceeds
obtained from bonds and notes issued under the authority of
this act or from other available funds in such amounts and at
such times as the Governor shall direct. The retransfers
shall be made upon warrant of the State Treasurer upon
requisition of the Governor.
Section 8. Proceeds.
(a) Use.--Proceeds of borrowing shall be deposited in the
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Pennsylvania Infrastructure Bond Fund in the State Treasury and
shall be used for grants and loans by the Pennsylvania
Investment Authority for the acquisition, repair, construction,
reconstruction, rehabilitation, extension, expansion and
improvement of Pennsylvania infrastructure. All proceeds shall
be prohibited from being allocated to foreign materials or
labor, and there shall be language on the back of the
obligations clarifying this.
(b) Appropriation.--The proceeds of all bonds sold under
this act are hereby appropriated on a continuing basis to the
Pennsylvania Infrastructure Investment Authority for the purpose
of making loans and grants under this act.
(c) Borrowing authorized.--
(1) If and when the electorate approves a referendum
question for the incurring of indebtedness in the amount and
for the purposes prescribed in this act, the issuing
officials, under section 7(a)(3) of Article VIII of the
Constitution of Pennsylvania, are authorized and directed to
borrow, on the credit of the Commonwealth, money not
exceeding in the aggregate sum of $400,000,000, not including
money borrowed to refund outstanding bonds, notes or
replacement notes, as may be found necessary to carry out the
purposes of this act.
(2) As evidence of the indebtedness, general obligation
bonds of the Commonwealth shall be issued from time to time
to provide moneys necessary to carry out the purposes of this
act for such total amounts, in such form, in such
denominations and subject to such terms and conditions of
issue, redemption and maturity, rate of interest and time of
payment of interest as the issuing officials direct, except
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that the latest stated maturity date shall not exceed 20
years from the date of the first obligation issued to
evidence the debt, the obligations shall be issued in $100
increments and at a rate of 5%.
(3) All bonds and notes issued under the authority of
this act shall bear facsimile signatures of the issuing
officials and a facsimile of the Great Seal of the
Commonwealth and shall be countersigned by a duly authorized
officer of a duly authorized loan and transfer agent of the
Commonwealth.
(4) All bonds and notes issued in accordance with this
act shall be direct obligations of the Commonwealth, and the
full faith and credit of the Commonwealth is hereby pledged
for the payment of the interest thereon, as it becomes due,
and the payment of the principal at maturity. The principal
of and interest on the bonds and notes shall be payable in
lawful money of the United States.
(5) All bonds and notes issued under this act shall be
exempt from taxation for State and local purposes.
(6) The bonds may be issued as coupon bonds or
registered as to both principal and interest as the issuing
officials may determine. If interest coupons are attached,
they shall contain the facsimile signature of the State
Treasurer.
(7) The issuing officials shall provide for the
amortization of the bonds in substantial and regular amounts
over the term of the debt so that the bonds of each issue
allocated to the projects to be funded from the bond issue
shall mature within a period not to exceed the appropriate
amortization period for each project as specified by the
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issuing officials, but in no case in excess of 20 years. The
first retirement of principal shall be stated to mature prior
to the expiration of a period of time equal to one-tenth of
the time from the date of the first obligation issued to
evidence the debt to the date of the expiration of the term
of debt. Retirements of principal shall be regular and
substantial if made in annual or semiannual amounts whether
by stated serial maturities or by mandatory sinking fund
retirements.
(8) The issuing officials are authorized to provide by
resolution for the issuance of refunding bonds for the
purpose of refunding any debt issued under this act and then
outstanding, either by voluntary exchange with the holders of
the outstanding debt or providing funds to redeem and retire
the outstanding debt with accrued interest, any premium
payable thereon and the costs of issuance and retirement of
the debt at maturity or at any call date. The issuance of the
refunding bonds, the maturities and other details thereof,
the rights of the holders thereof and the duties of the
issuing official in respect thereto shall be governed by this
section insofar as they may be applicable. Refunding bonds,
which are not subject to the aggregate limitation of
$400,000,000 of debt to be issued under this act, may be
issued by the issuing officials to refund debt originally
issued or to refund bonds previously issued for refunding
purposes.
(9) Whenever any action is to be taken or decision made
by the Governor, the Auditor General and the State Treasurer
acting as issuing officials and the these officials are not
able unanimously to agree, the action or decision of the
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Governor and either the Auditor General or the State
Treasurer shall be binding and final.
(d) Sale of bonds.--
(1) Whenever bonds are issued, they shall be offered for
sale at not less than 98% of the principal amount and accrued
interest and shall be sold by the issuing officials to the
highest and best bidder or bidders after due public
advertisement on the terms and conditions and upon such open
competitive bidding as the issuing officials shall direct.
The manner and character of the advertisement and the time of
advertising shall be prescribed by the issuing officials. No
commission shall be allowed or paid for the sale of any bonds
issued under the authority of this act.
(2) Any portion of any bond issue so offered and not
sold or subscribed for at public sale may be disposed of by
private sale by the issuing officials in such manner and at
such prices, not less than 98% of the principal amount and
accrued interest, as the Governor shall direct. No commission
shall be allowed or paid for the sale of any bonds issued
under the authority of this act.
(3) When bonds are issued from time to time, the bonds
of each issue shall constitute a separate series to be
designated by the issuing officials or may be combined for
sale as one series with other general obligation bonds of the
Commonwealth.
(4) Until permanent bonds can be prepared, the issuing
officials may, in their discretion, issue, in lieu of
permanent bonds, temporary bonds in such form and with such
privileges as to registration and exchange from permanent
bonds as may be determined by the issuing officials.
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(5) The proceeds realized from the sale of bonds and
notes, except refunding bonds and replacement notes, under
this act shall be paid into the fund. The proceeds shall be
paid by the State Treasurer periodically to those
Commonwealth officers and Commonwealth agencies authorized to
expend them at such times and in such amounts as may be
necessary to satisfy the funding needs thereof. The proceeds
of the sale of refunding bonds and replacement notes shall be
paid to the State Treasurer and applied to the payment of
principal, the accrued interest and premium, if any, and cost
of redemption of the bonds and notes for which the
obligations shall have been issued.
(6) Pending their application for 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 the
funds shall be paid into the State Treasury to the credit of
the fund. The earnings in excess of bond discounts allowed,
expenses paid for the issuance of bonds and notes and
interest arbitrage rebates due to the Federal Government
shall be transferred annually to the fund. Any interest or
investment income shall be applied to assist in the payment
of the debt service incurred in connection with this act.
(7) The Auditor General shall prepare the necessary
registry book to be kept in the office of the duly authorized
loan and transfer agent of the Commonwealth for the
registration of any bonds, at the request of owners thereof,
according to the terms and conditions of issue directed by
the issuing officials.
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(8) There is hereby appropriated to the State Treasurer
from the fund as much money as may be necessary for all costs
and expenses in connection with the issue, sale and
registration of the bonds and notes in connection with this
act and the payment of interest arbitrage rebates or proceeds
of such bonds and notes.
(e) Temporary financing authorization.--
(1) Pending the issuance of bonds of the Commonwealth as
authorized, the issuing officials are hereby authorized, in
accordance with this act and on the credit of the
Commonwealth, to make temporary borrowings not to exceed
three years in anticipation of the issue of bonds in order to
provide funds in such amounts as may from time to time be
deemed advisable prior to the issue of bonds. In order to
provide for and in connection with the temporary borrowings,
the issuing officials are authorized in the name and on
behalf of the Commonwealth to enter into any purchase, loan
or credit agreement or agreements or other agreement or
agreements with any banks or trust companies or other lending
institutions, investment banking firms or persons in the
United States having power to enter into the same, which
agreements may contain provisions not inconsistent with the
provisions of this act as may be authorized by the issuing
officials.
(2) All temporary borrowings made under the
authorization of this section shall be evidenced by notes of
the Commonwealth which shall be issued from time to time for
amounts not exceeding in the aggregate the applicable
statutory and constitutional debt limitation in the form and
in the denominations and subject to terms and conditions of
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sale and issue, prepayment or redemption and maturity, rate
or rates of interest and time of payment of interest as the
issuing officials shall authorize and direct and in
accordance with this act. The authorization and direction may
provide for the subsequent issuance of replacement notes to
refund outstanding notes or replacement notes, which
replacement notes, shall, upon issuance thereof, evidence the
borrowing and may specify other terms and conditions with
respect to the notes and replacement notes thereby authorized
for issuance as the issuing officials may determine and
direct.
(3) When the authorization and direction of the issuing
officials provide for the issuance of replacement notes, the
issuing officials are hereby authorized in the name and on
behalf of the Commonwealth to issue, enter into or authorize
and direct the State Treasurer to enter into agreements with
any banks, trust companies, investment banking firms or other
institutions or persons in the United States having the power
to enter the same:
(i) To purchase or underwrite an issue or series of
issues or notes.
(ii) To credit, to enter into any purchase, loan or
credit agreement, to draw moneys pursuant to any such
agreements on the terms and conditions set forth therein
and to issue notes as evidence of borrowings made under
any such agreements.
(iii) To appoint as issuing and payment agent or
agents with respect to notes.
(iv) To do such other acts as may be necessary or
appropriate to provide for the payment, when due, of the
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interest on and the principal of such notes. Such
agreements may provide for the compensation of any
purchasers or underwriters of notes or replacement notes
by discounting the purchase price of the notes or by
payment of a fixed fee or commission at the time of
issuance thereof, and all other costs and expenses,
including fees for agreements related to the notes,
issuing and paying agent costs and costs and expenses of
issuance, may be paid from the proceeds of the notes.
(4) When the authorization and direction of the issuing
officials provide for the issuance of replacement notes, the
State Treasurer shall, at or prior to the time of delivery of
these notes or replacement notes, determine the principal
amounts, dates of issue, interest rate or rates or procedures
for establishing such rates from time to time, rates of
discount, denominations and all other terms and conditions
relating to the issuance and shall perform all acts and
things necessary to pay or cause to be paid, when due, all
principal of and interest on the notes being refunded by
replacement notes and to assure that the same may draw upon
any moneys available for that purpose pursuant to any
purchase, loan or credit agreements established with respect
thereto, all subject to the authorization and direction of
the issuing officials.
(5) Outstanding notes evidencing such borrowings may be
funded and retired by the issuance and sale of the bonds of
the Commonwealth as authorized in subsection (f). The
refunding bonds must be issued and sold not later than a date
three years after the date of issuance of the first notes
evidencing the borrowings to the extent that payment of such
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notes has not otherwise been made or provided for by sources
other than proceeds of replacement notes.
(6) The proceeds of all such temporary borrowing shall
be paid to the State Treasurer to be held and disposed of in
accordance with this act.
(f) Debt retirement--
(1) All bonds issued under the authority of this act
shall be redeemed at maturity, together with all interest due
from time to time on the bonds, and these principal and
interest payments shall be paid from the Pennsylvania
Infrastructure Bond Sinking Fund, which is created. For the
specific purpose of redeeming the bonds at maturity and
paying all interest thereon in accordance with the
information received from the Governor, the General Assembly
shall appropriate moneys to the Pennsylvania Infrastructure
Bond Sinking Fund for the payment of interest on the bonds
and notes and the principal thereof at maturity. All moneys
paid into the Pennsylvania Infrastructure Bond Sinking Fund
and all of the moneys not necessary to pay accruing interest
shall be invested by the State Treasurer in such securities
as are provided by law for the investment of the sinking
funds of the Commonwealth.
(2) The State Treasurer, with the approval of the
Governor, is authorized at any time to use any of the moneys
in the fund not necessary for the purposes of the referendum
authorizing the indebtedness necessary to carry out this act,
for the purchase and retirement of all or any part of the
bonds and notes issued pursuant to the authorization of this
act. In the event that all or part of the bonds and notes are
purchased, they shall be canceled and returned to the loan
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and transfer agent as canceled and paid bonds and notes, and
thereafter, all payments of interest thereon shall cease. The
canceled bonds, notes and coupons, together with any other
canceled bonds, notes and coupons, shall be destroyed as
promptly as possible after cancellation but not later than
two years after cancellation. A certification evidencing the
destruction of the canceled bonds, notes and coupons shall be
provided by the loan and transfer agent to the issuing
officials. All canceled bonds, notes and coupons shall be so
marked as to make the canceled bonds, notes and coupons
nonnegotiable.
(3) The State Treasurer shall determine and report to
the Secretary of the Budget by November 1 of each year the
amount of money necessary for the payment of interest on
outstanding obligations and the principal of the obligations,
if any, for the following fiscal year and the times and
amounts of the payments. It shall be the duty of the Governor
to include in every budget submitted to the General Assembly
full information relating to the issuance of bonds and notes
under this act and the status of the Pennsylvania
Infrastructure Bond Sinking Fund for the payment of interest
on the bonds and notes and the principal thereof at maturity.
(4) The General Assembly shall appropriate an amount
equal to the sum as may be necessary to meet repayment
obligations for principal and interest for deposit into the
Pennsylvania Infrastructure Bond Sinking Fund.
(g) Expiration.--Authorization to issue bonds and notes, not
including refunding bonds and replacement notes, for the
purposes of this act shall expire ten years from the effective
date of this section.
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Section 9. Powers and duties of board.
(a) General rule.--The board shall implement and administer
the proceeds of the bond under section 8 in conformity with the
provisions of section 10 of the act of March 1, 1988 (P.L. 82,
No.16), known as the Pennsylvania Infrastructure Investment
Authority Act.
(b) Specific powers of board.--In addition to any powers
under subsection (a), the board shall have the power to:
(1) Implement and administer the proceeds of the bonds
under section 8 to improve the adequacy or efficiency of all
Pennsylvania infrastructure.
(2) Develop forms for the applications of grants and
loans.
(3) Promulgate regulations to implement this act.
(4) Provide for the implementation of a commercial paper
program and the issuance of bonds, notes or other obligations
in groups or individually in a manner consistent with the
requirements of section 7 of the Pennsylvania Infrastructure
Investment Authority Act. Bonds issued under the program
established under this paragraph shall not be required to be
sold at public sale.
(5) Take all other actions necessary to implement and
administer the provisions of this act.
Section 10. Effective date.
This act shall take effect immediately.
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