Home
Next Meetings
Communication
Contact Information
Members
Membership Info
AOCA NEWS
AOCA Notes
AOCA Alerts
Emergency Plans
Schedule
Community Assoc.
Elected Officals
Search
Resources
Bulletin Board

 

 

                              PRINTER'S NO. 1697

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No. 1355 Session of 2007

 

        INTRODUCED BY SCAVELLO, ARGALL, BROOKS, CARROLL, CLYMER, DALLY,
           FABRIZIO, FREEMAN, GEIST, GIBBONS, GOODMAN, HARHART,
           HENNESSEY, KOTIK, MUNDY, MURT, MYERS, O'NEILL, PEIFER,
           PETRONE, PICKETT, SAINATO, SANTONI, SHIMKUS, SOLOBAY,
           STABACK, WALKO, WATSON, YOUNGBLOOD AND YUDICHAK, MAY 24, 2007

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           MAY 24, 2007

                                     AN ACT

     1  Amending Title 27 (Environmental Resources) of the Pennsylvania
     2     Consolidated Statutes, providing for dam and flood control
     3     project loans; authorizing certain indebtedness; providing
     4     for a referendum; and establishing the Dam and Flood Control
     5     Project Fund and the Dam and Flood Control Project Revolving
     6     Loan Fund.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Title 27 of the Pennsylvania Consolidated
    10  Statutes is amended by adding a chapter to read:
    11                             CHAPTER 65
    12                  DAM AND FLOOD CONTROL MANAGEMENT
    13  Sec.
    14  6501.  Definitions.
    15  6502.  Authorization of indebtedness.
    16  6503.  (Reserved).
    17  6504.  General requirements of bonds.
    18  6505.  Issuing officials.

     1  6506.  Nature of bonds.
     2  6507.  Signature on bonds.
     3  6508.  Recitation on bonds.
     4  6509.  Series of bonds.
     5  6510.  Sale of bonds.
     6  6511.  Temporary bonds.
     7  6512.  Dam and Flood Control Project Fund.
     8  6513.  Dedication of funds.
     9  6514.  Revolving loan fund.
    10  6515.  Use of revolving loan fund.
    11  6516.  (Reserved).
    12  6517.  (Reserved).
    13  6518.  New bonds and coupons.
    14  6519.  Application of accrued interest.
    15  6520.  Maturity of bonds.
    16  6521.  Referendum.
    17   6501.  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 restoration and repair projects
    25     and flood control 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,
    20070H1355B1697                  - 2 -     

     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 restoration and repair project."  The repair,
    28  restoration, construction, reconstruction or demolition of dams,
    29  bulkheads, retention or detention basins or other structures
    30  that impound water for water supply purposes, flood control or
    20070H1355B1697                  - 3 -     

     1  recreation, wildlife habitat or fire protection.
     2     "Department."  The Department of Environmental Protection of
     3  the Commonwealth.
     4     "Flood control project."  The repair, restoration,
     5  construction, reconstruction or demolition of dams, drainage
     6  ways, structures and other real and personal property acquired,
     7  constructed, operated, financed, maintained or improved or to be
     8  acquired, constructed, operated, financed, maintained or
     9  improved for the purposes of flood control, and other plants,
    10  structures, boats, conveyances and other real or personal
    11  property and rights therein, and appurtenances necessary for the
    12  control of flooding, including the development of comprehensive
    13  flood management plans.
    14     "Government securities."  Any bonds or other obligations that
    15  as to principal and interest constitute direct obligations of or
    16  are unconditionally guaranteed by the United States of America,
    17  including obligations of any Federal agency, to the extent those
    18  obligations are unconditionally guaranteed by the United States
    19  of America, and any certificates or any other evidences of an
    20  ownership interest in those obligations of or unconditionally
    21  guaranteed by the United States of America or in specified
    22  portions that may consist of the principal of or the interest on
    23  those obligations.
    24     "Local government unit."  A county or a municipality, or any
    25  agency, authority, board, commission or other instrumentality
    26  thereof, any two or more counties or municipalities operating
    27  jointly through an intergovernmental cooperation agreement
    28  permitted by law or any agency, authority, board, commission or
    29  other instrumentality thereof, and any other local or regional
    30  entity created by the General Assembly as a political
    20070H1355B1697                  - 4 -     

     1  subdivision of the Commonwealth, or any agency, authority, board
     2  or commission or other instrumentality thereof.
     3     "Secretary."  The Secretary of Environmental Protection of
     4  the Commonwealth.
     5   6502.  Authorization of indebtedness.
     6     (a)  General rule.--Bonds of the Commonwealth are authorized
     7  to be issued in the aggregate principal amount of $150,000,000
     8  for the purposes of financing the costs of dam restoration and
     9  repair projects and State flood control projects, as provided in
    10  this chapter.
    11     (b)  Allocation.--Of the total principal amount authorized
    12  pursuant to subsection (a):
    13         (1)  Fifteen million dollars is allocated to the
    14     department to finance the costs of State dam restoration and
    15     repair projects.
    16         (2)  One hundred ten million dollars is allocated to the
    17     department for the purpose of providing loans or other forms
    18     of assistance other than full or matching grants to owners of
    19     private dams, as coapplicants with local government units or
    20     to local government units that own dams to finance the cost
    21     of dam restoration and repair projects undertaken by or on
    22     behalf of the owners of dams.
    23         (3)  Twenty-five million dollars is allocated to the
    24     department to finance the cost of State flood control
    25     projects.
    26     (c)  Use of loans.--Any loan authorized under this section
    27  shall include up to 100% of the cost of a dam restoration and
    28  repair project.
    29     (d)  Loan terms.--A loan made to an owner of private dams or
    30  to a local government unit that owns dams or to an owner of a
    20070H1355B1697                  - 5 -     

     1  lake or stream with a local government unit as coapplicant from
     2  the Dam and Flood Control Project Revolving Loan Fund shall bear
     3  interest of not more than 2% per year, shall be for a term of 20
     4  years and shall be made in accordance with criteria for other
     5  programs established by the department.
     6     (e)  Loan agreement.--A loan authorized under this section
     7  shall be provided under the terms and conditions set forth in a
     8  written loan agreement between the department and the person or
     9  entity receiving the loan.
    10     (f)  Coapplicants required.--Loans awarded under this section
    11  to owners of private dams shall require local government units
    12  to act as coapplicants. The cost of payment of the principal and
    13  interest on any loan made to the owner of a private dam as a
    14  coapplicant with a local government unit shall be assessed, in
    15  the same manner as provided for the assessment of local
    16  improvements generally under the law, against the real estate
    17  benefited thereby in proportion to and not in excess of the
    18  benefits conferred, and such assessments shall bear interest and
    19  penalties from the same time and at the same rate as assessments
    20  for local improvements in the municipality where they are
    21  imposed, and from the date of confirmation shall be a first lien
    22  upon the real estate assessed to the same extent and be enforced
    23  and collected in the same manner as assessments for local
    24  improvements.
    25     (g)  Administration.--The department shall administer the
    26  program authorized pursuant to this section in accordance with
    27  criteria for existing programs established under the law. The
    28  department shall notify every local government unit and dam
    29  owner of the availability of and the criteria for qualifying and
    30  obtaining loans or other forms of assistance under the program.
    20070H1355B1697                  - 6 -     

     1     (h)  Loan payments to be deposited into fund.--Payments of
     2  principal and interest on loans made from the Dam, Lake and
     3  Stream Project Revolving Loan Fund shall be returned to that
     4  fund for use for any authorized purpose to which moneys in the
     5  fund may be used.
     6   6503.  (Reserved).
     7   6504.  General requirements of bonds.
     8     The bonds authorized under this chapter shall be serial
     9  bonds, term bonds or a combination thereof and shall be known as
    10  Dam and Flood Control Project Bonds. They shall be issued from
    11  time to time as the issuing officials shall determine and may be
    12  issued in coupon form, fully registered form or book-entry form.
    13  The bonds may be subject to redemption prior to maturity and
    14  shall mature and be paid not later than 35 years from the
    15  respective dates of their issuance.
    16   6505.  Issuing officials.
    17     The Governor, State Treasurer and Auditor General or any two
    18  of these officials shall carry out the provisions of this
    19  chapter relating to the issuance of bonds and shall determine
    20  all matters in connection therewith, subject to the provisions
    21  of this chapter. If an issuing official is absent from this
    22  Commonwealth or incapable of acting for any reason, the powers
    23  and duties of that issuing official shall be exercised and
    24  performed by the person authorized by law to act in an official
    25  capacity in the place of that issuing official.
    26   6506.  Nature of bonds.
    27     Bonds issued in accordance with the provisions of this
    28  chapter shall be direct obligations of the Commonwealth, and the
    29  faith and credit of the Commonwealth are pledged for the payment
    30  of the interest and redemption premium thereon, if any, when
    20070H1355B1697                  - 7 -     

     1  due, and for the payment of the principal at maturity or earlier
     2  redemption date. The principal of and interest on the bonds
     3  shall be exempt from taxation by the Commonwealth or by any
     4  county, municipality or other taxing entity of the Commonwealth.
     5   6507.  Signature on bonds.
     6     The bonds shall be signed in the name of the Commonwealth by
     7  means of the manual or facsimile signature of the Governor under
     8  the Great Seal of the Commonwealth, which seal may be by
     9  facsimile or by way of any other form of reproduction on the
    10  bonds, and attested by the manual or facsimile signature of the
    11  Secretary of State and shall be countersigned by the facsimile
    12  signature of the State Treasurer and may be manually
    13  authenticated by an authenticating agent or bond registrar, as
    14  the issuing official shall determine. Interest coupons, if any,
    15  attached to the bonds shall be signed by the facsimile signature
    16  of the State Treasurer. The bonds may be issued notwithstanding
    17  that an official signing them or whose manual or facsimile
    18  signature appears on the bonds or coupons has ceased to hold
    19  office at the time of issuance, or at the delivery of the bonds
    20  to the purchaser thereof.
    21   6508.  Recitation on bonds.
    22     (a)  General rule.--The bonds shall recite that they are
    23  issued for the purposes set forth in this chapter, that they are
    24  issued pursuant to this chapter, that this chapter was submitted
    25  to the people of this Commonwealth at the general election and
    26  that this chapter was approved by a majority of the legally
    27  qualified voters of this Commonwealth voting thereon at the
    28  election. This recital shall be conclusive evidence of the
    29  authority of the Commonwealth to issue the bonds and their
    30  validity. Any bonds containing this recital shall, in any suit,
    20070H1355B1697                  - 8 -     

     1  action or proceeding involving their validity, be conclusively
     2  deemed to be fully authorized by this chapter and to have been
     3  issued, sold, executed and delivered in conformity with this
     4  chapter and with all other provisions of law applicable to this
     5  chapter and shall be incontestable for any cause.
     6     (b)  Form.--The bonds shall be issued in those denominations
     7  and in the form or forms, whether coupon, fully registered or
     8  book-entry, and with or without provisions for
     9  interchangeability thereof, as may be determined by the issuing
    10  officials.
    11   6509.  Series of bonds.
    12     When the bonds are issued from time to time, the bonds of
    13  each issue shall constitute a separate series to be designated
    14  by issuing officials. Each series of bonds shall bear such rate
    15  or rates of interest as may be determined by the issuing
    16  officials, which interest shall be payable semiannually except
    17  that the first and last interest periods may be longer or
    18  shorter in order that intervening semiannual payments may be at
    19  convenient dates.
    20   6510.  Sale of bonds.
    21     The bonds shall be issued and sold at the price or prices and
    22  under the terms, conditions and regulations as the issuing
    23  officials may prescribe, after notice of the sale, published at
    24  least once in at least three newspapers published in this
    25  Commonwealth, and at least once in a publication carrying
    26  municipal bond notices and devoted primarily to financial news,
    27  published in this Commonwealth, the first notice to appear at
    28  least five days prior to the day of bidding. The notice of sale
    29  may contain a provision to the effect that any bid in pursuance
    30  thereof may be rejected. In the event of rejection or failure to
    20070H1355B1697                  - 9 -     

     1  receive any acceptable bid, the issuing officials, at any time
     2  within 60 days from the date of the advertised sale, may sell
     3  the bonds at a private sale at such price or prices under the
     4  terms and conditions as the issuing officials may prescribe. The
     5  issuing officials may sell all or part of the bonds of any
     6  series as issued to any State fund or to the Federal Government
     7  or any agency thereof, at a private sale, without advertisement.
     8   6511.  Temporary bonds.
     9     Until permanent bonds are prepared, the issuing officials may
    10  issue temporary bonds in the form and with those privileges as
    11  to their registration and exchange for permanent bonds as may be
    12  determined by the issuing officials.
    13   6512.  Dam and Flood Control Project Fund.
    14     The proceeds from the sale of bonds used to provide
    15  assistance other than full or matching grants to owners of dams
    16  for dam restoration and repair projects and for State flood
    17  control projects or State dam restoration and repair projects
    18  shall be paid to the State Treasurer and be held by the State
    19  Treasurer in a separate fund, and be deposited in such
    20  depositories as may be selected by the State Treasurer to the
    21  credit of the fund, which fund shall be known as the Dam and
    22  Flood Control Project Fund.
    23   6513.  Dedication of funds.
    24     (a)  General rule.--The moneys in the Dam and Flood Control
    25  Project Fund are specifically dedicated and shall be applied to
    26  the cost of assistance, other than full or matching grants, to
    27  owners of dams, lakes or streams or private lake associations
    28  for dam restoration and repair projects, and for State flood
    29  control projects or State dam restoration and repair projects as
    30  set forth in section 6502 (relating to authorization of
    20070H1355B1697                 - 10 -     

     1  indebtedness). However, no moneys in the fund shall be expended
     2  for those purposes except as otherwise authorized by this
     3  chapter without the specific appropriation provided for in this
     4  chapter. Any act appropriating moneys from the Dam and Flood
     5  Control Project Fund shall identify the project to be funded by
     6  the moneys.
     7     (b)  Transfer of moneys.--At any time prior to the issuance
     8  and sale of bonds under this chapter, the State Treasurer may
     9  transfer from any available moneys in any fund of the State
    10  Treasury to the credit of the Dam and Flood Control Project Fund
    11  those sums as the State Treasurer may deem necessary. The sums
    12  so transferred shall be returned to the same fund of State
    13  Treasury by the State Treasurer from the proceeds of the sale of
    14  the first issue of bonds.
    15     (c)  Investments.--Pending their application to the purposes
    16  provided in this chapter, the moneys in the Dam and Flood
    17  Control Project Fund may be invested and reinvested as are other
    18  trust funds in the custody of the State Treasurer, in the manner
    19  provided by law. Net earnings received from the investment or
    20  deposit of moneys in the Dam and Flood Control Project Fund
    21  shall be paid into the General Fund.
    22   6514.  Revolving loan fund.
    23     The proceeds from the sale of bonds used to provide loans to
    24  owners of dams, lakes or streams for dam restoration and repair
    25  projects shall be paid to the State Treasurer and be held by the
    26  State Treasurer in a separate fund and be deposited in such
    27  depositories as may be selected by the State Treasurer to the
    28  credit of the fund, which fund shall be known as the Dam and
    29  Flood Control Project Revolving Loan Fund.
    30   6515.  Use of revolving loan fund.
    20070H1355B1697                 - 11 -     

     1     (a)  General rule.--The moneys in the Dam and Flood Control
     2  Project Revolving Loan Fund are specifically dedicated and shall
     3  be applied to the cost of making low-interest loans to owners of
     4  dams, lakes or streams for dam restoration and repair projects,
     5  as set forth in section 6502 (relating to authorization of
     6  indebtedness). However, no moneys in the fund shall be expended
     7  for those purposes except as otherwise authorized by this
     8  chapter without the specific appropriation thereof, but bonds
     9  may be issued as provided in this chapter. Any act appropriating
    10  moneys from the Dam and Flood Control Project Revolving Loan
    11  Fund shall identify the project to be funded by the moneys.
    12     (b)  Term of loans.--A loan issued from the Dam and Flood
    13  Control Project Revolving Loan Fund shall be for a term as
    14  determined by the secretary not to exceed 20 years and at an
    15  interest rate determined by the secretary not to exceed 2% per
    16  year. The terms of any loan agreement shall be approved by the
    17  State Treasurer. Any loan made from the Dam and Flood Control
    18  Project Revolving Loan Fund shall be awarded pursuant to section
    19  6502 based upon the criteria and procedures established for
    20  existing programs under the law, except that no matching funds
    21  shall be required of loan applicants.
    22     (c)  Transfer of moneys.--At any time prior to the issuance
    23  and sale of bonds under this chapter the State Treasurer may
    24  transfer any available moneys in any fund of the State Treasury
    25  to the credit of the Dam and Flood Control Project Revolving
    26  Loan Fund those sums as the State Treasurer may deem necessary.
    27  The sums so transferred shall be returned to the same fund of
    28  the State Treasury by the State Treasurer from the proceeds of
    29  the sale of the first issue of bonds.
    30     (d)  Investments.--Pending their application to the purposes
    20070H1355B1697                 - 12 -     

     1  provided in this chapter, the moneys in the Dam and Flood
     2  Control Project Revolving Loan Fund may be invested and
     3  reinvested as are other trust funds in the custody of the State
     4  Treasurer, in the manner provided by law. All repayments of
     5  loans made pursuant to this chapter and interest thereon shall
     6  be deposited in the Dam and Flood Control Project Revolving Loan
     7  Fund. Earnings received from moneys in the fund shall be
     8  credited to the fund.
     9   6516.  (Reserved).
    10   6517.  (Reserved).
    11   6518.  New bonds and coupons.
    12     If any coupon bond, coupon or registered bond is lost,
    13  mutilated or destroyed, a new bond or coupon shall be executed
    14  and delivered of like tenor, in substitution for the lost,
    15  mutilated or destroyed bond or coupon, upon the owner furnishing
    16  to the issuing officials evidence satisfactory to them of the
    17  loss, mutilation or destruction of the bond or coupon, the
    18  ownership thereof, and security, indemnity and reimbursement for
    19  expenses connected therewith, as the issuing officials may
    20  require.
    21   6519.  Application of accrued interest.
    22     The accrued interest, if any, received upon the sale of the
    23  bonds shall be applied to the discharge of a like amount of
    24  interest upon the bonds when due. Any expense incurred by the
    25  issuing officials for advertising, engraving, printing,
    26  clerical, authenticating, registering, legal or other services
    27  necessary to carry out the duties imposed upon them by the
    28  provisions of this chapter shall be paid from the proceeds of
    29  the sale of the bonds by the State Treasurer, upon the warrant
    30  of the Auditor General, in the same manner as other obligations
    20070H1355B1697                 - 13 -     

     1  of the Commonwealth are paid.
     2   6520.  Maturity of bonds.
     3     Bonds of each series issued under this chapter shall mature,
     4  including any sinking fund redemptions, not later than the 35th
     5  year from the date of issue of that series, and in amounts as
     6  shall be determined by the issuing officials. The issuing
     7  officials may reserve to the Commonwealth by appropriate
     8  provision in the bonds of any series the power to redeem any of
     9  the bonds prior to maturity at the price or prices and upon the
    10  terms and conditions as may be provided in the bonds.
    11   6521.  Referendum.
    12     (a)  Question.--The question of incurring indebtedness under
    13  this chapter shall be submitted to the electors at the next
    14  primary, municipal or general election following the effective
    15  date of this section.
    16     (b)  Certification.--The Secretary of the Commonwealth shall
    17  certify the form of the question under subsection (c) to the
    18  county boards of elections.
    19     (c)  Form of question.--The question shall be in the
    20  substantially the following form:
    21         Do you favor the issuance of debt in the amount of $   
    22         for the purposes of providing financing for the
    23         restoration and repair of dams and providing financing
    24         for flood control projects?
    25     (d)  Election.--The election shall be conducted at the next
    26  occurring general or municipal election following the effective
    27  date of this section, in accordance with the act of June 3, 1937
    28  (P.L.1333, No.320), known as the Pennsylvania Election Code,
    29  except that the time limits for advertisement of notice of the
    30  election may be waived as to the question.
    20070H1355B1697                 - 14 -     

     1     (e)  Proceeds.--Proceeds of borrowing shall be deposited as
     2  provided under this chapter.
     3     Section 2.  This act shall take effect in 60 days.
 
To return Home Click Here