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                                                       PRINTER'S NO. 166

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 178 Session of 1999


        INTRODUCED BY GEORGE, HERMAN, FAIRCHILD, STABACK, CLARK, WALKO,
           COY, DeWEESE, FEESE, HANNA, BELFANTI, RAMOS, TRAVAGLIO,
           TIGUE, LEVDANSKY, MELIO, BATTISTO, LUCYK, SOLOBAY, SHANER,
           M. COHEN, ARGALL, CALTAGIRONE, MUNDY, PESCI, PRESTON,
           SCRIMENTI, VAN HORNE, SATHER, CORRIGAN, HARHAI, GORDNER,
           TRELLO, STEELMAN, WOJNAROSKI, LESCOVITZ, SURRA, BELARDI,
           MICHLOVIC, THOMAS, GIGLIOTTI, DALEY AND HUTCHINSON,
           JANUARY 27, 1999

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           JANUARY 27, 1999

                                     AN ACT

     1  Amending the act of March 1, 1988 (P.L.82, No.16), entitled "An
     2     act providing for the establishment, implementation and
     3     administration of the Pennsylvania Infrastructure Investment
     4     Authority; imposing powers and duties on a board of trustees;
     5     transferring the rights, powers, duties and obligations of
     6     the Water Facilities Loan Board to the Pennsylvania
     7     Infrastructure Investment Authority; providing for the
     8     issuance of notes and bonds; providing for financial
     9     assistance and for a comprehensive water facilities plan;
    10     authorizing a referendum to incur indebtedness; making an
    11     appropriation; and making repeals," providing for financial
    12     assistance.

    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     Section 1.  Section 10(d) of the act of March 1, 1988
    16  (P.L.82, No.16), known as the Pennsylvania Infrastructure
    17  Investment Authority Act, amended December 16, 1992 (P.L.1137,
    18  No.149), is amended to read:
    19  Section 10.  Financial assistance.


     1     * * *
     2     (d)  Small projects.--
     3         (1)  The board shall establish a program of assistance to
     4     water supply and sewage disposal systems serving communities
     5     with a population of 12,000 people or less or systems having
     6     hookups of 1,000 or less.
     7         (2)  The board shall establish a program to financially
     8     assist storm water projects by municipalities with a
     9     population of 12,000 people or less. In addition to other
    10     factors which the board in its discretion may consider in
    11     assigning priorities under this program, preference shall be
    12     given where the municipality undertaking the project:
    13             (i)  has no natural watercourse within its
    14         boundaries;
    15             (ii)  relies on methods of storm water control which
    16         do not comply with Federal or State rules, regulations or
    17         standards; or
    18             (iii)  has been found to be subject to karst sinkhole
    19         development or other geologic condition which poses a
    20         danger to person or property and which may be aggravated
    21         by uncontrolled storm water flows.
    22         (3)  (i)  The board shall establish a small water/sewer
    23         project loan fund for municipalities with a population of
    24         10,000 people or less and shall issue loans from the fund
    25         not to exceed $100,000 or 75% of eligible project costs
    26         for each loan, whichever is less. The borrower shall
    27         provide a local share in the form of matching funds or
    28         in-kind services at a minimum of 25% of the total project
    29         costs. The loan shall be for ten years at an interest
    30         rate of 2%.
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     1             (ii)  Loans under this paragraph shall be used for
     2         the following purposes:
     3                 (A)  Drinking water facilities including
     4             construction, rehabilitation, alteration, expansion
     5             or improvement of water facilities.
     6                 (B)  Pumping stations, distribution and treatment
     7             facilities and reservoir rehabilitation projects.
     8                 (C)  Sanitary sewage disposal facilities,
     9             including all facilities related to collection lines
    10             and sewage treatment facilities and excluding storm
    11             sewers.
    12                 (D)  Access roads to serve a public water or
    13             sanitary sewer facility.
    14         (4)  (i)  The board shall administer the Community
    15         Facilities Grant Program, which is hereby established.
    16         The program shall provide supplemental financial
    17         assistance in the form of grants for needed public
    18         facilities to strengthen income-producing capability,
    19         improve health and safety and alleviate financial
    20         hardship of the community.
    21             (ii)  Grants may be awarded under this paragraph and
    22         shall not exceed to $50,000 for each grant. Certain
    23         eligible economically distressed communities, as
    24         determined under the act of July 10, 1987 (P.L.246,
    25         No.47), known as the Municipalities Financial Recovery
    26         Act, may receive not more than $75,000 for each grant.
    27             (iii)  Any borough, township or city with a
    28         population of 10,000 or less and municipal and county
    29         authorities serving such places is eligible for a grant
    30         under this paragraph. For projects serving more than one
    19990H0178B0166                  - 3 -

     1         municipality, the population served may not exceed
     2         10,000.
     3             (iv)  Grants under this paragraph shall be used for
     4         the following purposes:
     5                 (A)  Drinking water facilities including
     6             construction, rehabilitation, alteration, expansion
     7             or improvement of water facilities.
     8                 (B)  Pumping stations, distribution and treatment
     9             facilities and reservoir rehabilitation projects.
    10                 (C)  Sanitary sewage disposal facilities,
    11             including all facilities related to collection lines
    12             and sewage treatment facilities and excluding storm
    13             sewers.
    14                 (D)  Access roads to serve a public water or
    15             sanitary sewer facility.
    16             (v)  The board shall promulgate regulations to
    17         implement this paragraph.
    18         (5)  The board shall annually expend not more than
    19     $15,000,000 from any funds available to the authority for the
    20     purpose of implementing paragraphs (3) and (4).
    21     * * *
    22     Section 2.  The functions, powers and duties of the
    23  Department of Commerce with regard to the community facilities
    24  program as provided for in 13 Pa. Code Ch. 11 (relating to
    25  community facilities) are transferred to and shall be exercised
    26  by the authority, and all records, files and property now being
    27  used in connection with such functions, powers and duties and
    28  the unexpended balances of appropriations, allocations and other
    29  funds available or to be made available for use in connection
    30  with such functions, powers and duties are transferred to the
    19990H0178B0166                  - 4 -

     1  authority.
     2     Section 3.  Each rule and regulation of the Department of
     3  Commerce relating to the Community Facilities Grant Program in
     4  effect on the effective date of this act shall remain in effect
     5  after such date until repealed or amended by the board or until
     6  it terminates in accordance with its own terms.
     7     Section 4.  All acts and parts of acts are repealed insofar
     8  as they are inconsistent with this act.
     9     Section 5.  This act shall take effect in 60 days.














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