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                                                       PRINTER'S NO. 580

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 537 Session of 2001


        INTRODUCED BY GEORGE, McCALL, HANNA, PETRARCA, SOLOBAY, SURRA,
           LaGROTTA, EACHUS, LAUGHLIN, WATERS, YUDICHAK, WALKO, WANSACZ,
           STEELMAN, THOMAS, HARHAI, TIGUE, MANDERINO, LEVDANSKY,
           MICHLOVIC, WOJNAROSKI, TRAVAGLIO, CORRIGAN, CAPPELLI,
           STABACK, M. BAKER, GORDNER, GRUCELA, FEESE, LESCOVITZ,
           DeWEESE, CRUZ, CURRY, CAWLEY, SATHER, HUTCHINSON, SCRIMENTI,
           HERMAN, C. WILLIAMS, BELARDI, CALTAGIRONE, BELFANTI,
           FAIRCHILD, SAINATO, COSTA, CLARK AND JOSEPHS,
           FEBRUARY 7, 2001

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           FEBRUARY 7, 2001

                                     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 from
    22         moneys available under 27 Pa.C.S. (relating to
    23         Environmental Resources) and shall not exceed $50,000 for
    24         each grant. Certain eligible economically distressed
    25         communities, as determined under the act of July 10, 1987
    26         (P.L.246, No.47), known as the Municipalities Financial
    27         Recovery Act, may receive not more than $75,000 for each
    28         grant.
    29             (iii)  Any borough, township or city with a
    30         population of 10,000 or less and municipal and county
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     1         authorities serving such places is eligible for a grant
     2         under this paragraph. For projects serving more than one
     3         municipality, the population served may not exceed
     4         10,000.
     5             (iv)  Grants under this paragraph shall be used for
     6         the following purposes:
     7                 (A)  Drinking water facilities including
     8             construction, rehabilitation, alteration, expansion
     9             or improvement of water facilities.
    10                 (B)  Pumping stations, distribution and treatment
    11             facilities and reservoir rehabilitation projects.
    12                 (C)  Sanitary sewage disposal facilities,
    13             including all facilities related to collection lines
    14             and sewage treatment facilities and excluding storm
    15             sewers.
    16                 (D)  Access roads to serve a public water or
    17             sanitary sewer facility.
    18             (v)  The board shall promulgate regulations to
    19         implement this paragraph.
    20         (5)  The board shall annually expend not more than
    21     $15,000,000 from any funds available to the authority for the
    22     purpose of implementing paragraph (3).
    23     * * *
    24     Section 2.  The functions, powers and duties of the
    25  Department of Commerce with regard to the community facilities
    26  program as provided for in 13 Pa. Code Ch. 11 (relating to
    27  community facilities) are transferred to and shall be exercised
    28  by the authority, and all records, files and property now being
    29  used in connection with such functions, powers and duties and
    30  the unexpended balances of appropriations, allocations and other
    20010H0537B0580                  - 4 -

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













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