PRINTER'S NO. 2080
No. 1662 Session of 1997
INTRODUCED BY GIGLIOTTI, READSHAW, WALKO, CASORIO, TRICH,
LAUGHLIN, COLAIZZO, BELARDI, OLASZ, TRAVAGLIO, JAROLIN,
BELFANTI, HALUSKA, SCRIMENTI, DeLUCA, PESCI, SAINATO,
LEVDANSKY AND TRELLO, JUNE 16, 1997
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
JUNE 16, 1997
AN ACT
1 Authorizing the Department of Environmental Protection to make
2 grants to sewage treatment authorities for sewage treatment
3 facilities; and making an appropriation.
4 TABLE OF CONTENTS
5 Section 1. Definitions.
6 Section 2. Referendum to authorize incurring indebtedness.
7 Section 3. Authority to borrow.
8 Section 4. Bonds, issues, maturity, interest, etc.
9 Section 5. Sale of bonds.
10 Section 6. Refunding bonds.
11 Section 7. Registration of bonds.
12 Section 8. Disposition and use of proceeds.
13 Section 9. Local Sewage Treatment Facilities Sinking Fund.
14 Section 10. Expenses of preparation, issue and sale of bonds.
15 Section 11. Temporary financing authorization.
16 Section 12. Quorum.
17 Section 13. Information to General Assembly.
1 Section 14. Grants to Sewage Treatment Authority.
2 Section 15. Appropriation.
3 Section 16. Effective date.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Definitions.
7 The following words and phrases when used in this act shall
8 have the meanings given to them in this section unless the
9 context clearly indicates otherwise:
10 "Construction." The term includes the preparation of
11 drawings and specifications for facilities; erecting, building,
12 altering, remodeling, improving or extending such facilities;
13 and the inspection and supervision of the construction of such
14 facilities. The term does not include any interest in land.
15 "Department." The Department of Environmental Protection of
16 the Commonwealth.
17 "Facility." The term includes any building and related
18 facility, initial equipment, machinery and utilities necessary
19 or appropriate for sewage treatment for which the particular
20 facility was constructed.
21 "Local sewage treatment facility." Any facility operated by
22 a local sewage treatment authority and used for the treatment of
23 waste water and sewage.
24 "Sewage treatment authority." Any sewage treatment authority
25 of this Commonwealth.
26 Section 2. Referendum to authorize incurring indebtedness.
27 (a) Submission of question to electors.--The question of
28 incurring indebtedness of $600,000,000 for the repair,
29 expansion, construction, reconstruction or rehabilitation of
30 sewage treatment facilities shall be submitted to the electors
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1 at the next primary, municipal or general election following the
2 effective date of this act.
3 (b) Certification to county boards of elections.--The
4 Secretary of the Commonwealth shall immediately certify the
5 question under subsection (a) to the county boards of elections.
6 (c) Form of question.--The question shall be in
7 substantially the following form:
8 Do you favor the incurring of indebtedness by the
9 Commonwealth of $600,000,000 to repair, expand,
10 construct, reconstruct and rehabilitate local
11 sewage treatment facilities?
12 (d) Conduct of election.--The election shall be conducted in
13 accordance with the act of June 3, 1937 (P.L.1333, No.320),
14 known as the Pennsylvania Election Code, except that the time
15 limits for advertisement of notice of the election may be waived
16 as to the question.
17 Section 3. Authority to borrow.
18 In the event that the question of incurring indebtedness is
19 approved by a majority of those voting on the question in
20 accordance with section 7(a)(3) of Article VIII of the
21 Constitution of Pennsylvania, the Governor, Auditor General and
22 State Treasurer are hereby authorized and directed to borrow, on
23 the credit of the Commonwealth, such sum or sums of money not
24 exceeding in the aggregate the sum of $600,000,000 as may be
25 necessary to carry out the purposes of this act.
26 Section 4. Bonds, issues, maturity, interest, etc.
27 (a) Issuance.--As evidence of the indebtedness authorized in
28 this act, general obligation bonds of the Commonwealth shall be
29 issued from time to time for such total amounts, in such forms,
30 in such denominations and subject to such terms and conditions
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1 of issue, redemption and maturity, rate or rates of interest and
2 time of payment of interest as the Governor, Auditor General and
3 State Treasurer shall direct, except that the latest stated
4 maturity date shall not exceed 30 years from the date of the
5 bond first issued for each such series.
6 (b) Signatures and seal.--All bonds issued under the
7 authority of this act shall bear facsimile signatures of the
8 Governor, the Auditor General and the State Treasurer and a
9 facsimile of the Great Seal of the Commonwealth and shall be
10 countersigned by two duly authorized officers of the duly
11 authorized loan and transfer agents of the Commonwealth.
12 (c) Full faith and credit.--All bonds issued in accordance
13 with the provisions of this act shall be direct obligations of
14 the Commonwealth, and the full faith and credit of the
15 Commonwealth are hereby pledged for the payment of the interest
16 thereon as the same shall become due and for the payment of the
17 principal thereof at maturity. All bonds issued under the
18 provisions of this act shall be exempt from taxation for State
19 and local purposes. The principal of and interest on such bonds
20 shall be payable in lawful money of the United States of
21 America.
22 (d) Form.--Bonds issued under this act may be issued as
23 coupon bonds or registered as to both principal and interest as
24 the issuing officials may determine. If interest coupons are
25 attached, they shall contain the facsimile signature of the
26 State Treasurer.
27 (e) Amount.--The issuing officials shall provide for the
28 amortization of the bonds issued under this act in substantial
29 and regular amounts over the term of the debt.
30 (f) Preparation.--The Governor, the Auditor General and the
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1 State Treasurer shall proceed to have the necessary bonds
2 prepared and printed. The bonds, as soon as they are prepared
3 and printed, shall be deposited with the duly authorized loan
4 and transfer agent of the Commonwealth and shall remain until
5 sold in accordance with the provisions of this act.
6 Section 5. Sale of bonds.
7 (a) Offering for sale.--When bonds are issued under this
8 act, they shall be offered for sale and shall be sold by the
9 Governor, the Auditor General and State Treasurer to the highest
10 and best bidder or bidders after due public advertisement, on
11 such terms and conditions and upon such open competitive bidding
12 as the Governor, the Auditor General and the State Treasurer
13 shall direct. The manner and character of advertisement and the
14 times of advertising shall be prescribed by the Governor, the
15 Auditor General and the State Treasurer.
16 (b) Private sale.--Any portion of any bond issue offered
17 under subsection (a) and not sold or subscribed for may be
18 disposed of by private sale by the Governor, the Auditor General
19 and the State Treasurer, in such manner and at such prices as
20 the Governor shall direct.
21 (c) Series.--When bonds are issued from time to time, the
22 bonds of each issue shall constitute a separate series to be
23 designated by the issuing officials or may be combined for sale
24 as one series with other general obligation bonds of the
25 Commonwealth.
26 Section 6. Refunding bonds.
27 The Governor, the Auditor General and the State Treasurer are
28 hereby authorized to provide, by resolution, for the issuance of
29 refunding bonds for the purpose of refunding any bonds issued
30 under the provisions of this act and then outstanding, either by
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1 voluntary exchange with the holders of such outstanding bonds
2 with accrued interest and any premium payable thereon, at
3 maturity or at any call date. The issuance of refunding bonds,
4 the maturities and other details thereof, the rights of the
5 holders thereof, and the duties of the Governor, the Auditor
6 General and the State Treasurer in respect to refunding bonds
7 shall be governed by the foregoing provisions of this act
8 insofar as they may be applicable. Refunding bonds may be issued
9 by the Governor, the Auditor General and the State Treasurer to
10 refund bonds originally issued or to refund bonds previously
11 issued for refunding purposes.
12 Section 7. Registration of bonds.
13 The Auditor General shall prepare the necessary registry book
14 to be kept in the office of the duly authorized loan and
15 transfer agent of the Commonwealth for the registration of any
16 bonds, at the request of owners thereof, according to the terms
17 and conditions of issue directed by the Governor, the Auditor
18 General and the State Treasurer. All bonds which are issued
19 under this act without interest coupons attached shall be
20 registered in the registry books kept by the duly authorized
21 loan and transfer agent of the Commonwealth.
22 Section 8. Disposition and use of proceeds.
23 (a) Creation of Local Sewage Treatment Facilities Fund.--
24 There is hereby created in the State Treasury a special fund to
25 be known as the Local Sewage Treatment Facilities Fund. The
26 proceeds realized from the sale of bonds under the provisions of
27 this act shall be paid into this special fund and are hereby
28 specifically dedicated to the purpose of the referendum
29 authorized by section 2. The moneys shall be paid periodically
30 by the State Treasurer to the department at such times and in
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1 such amounts as may be necessary to satisfy the purpose of this
2 act.
3 (b) Investment and earnings.--Pending their application to
4 the purposes authorized, moneys held or deposited in the Local
5 Sewage Treatment Facilities Fund by the State Treasurer may be
6 invested or reinvested as are other funds in the custody of the
7 State Treasurer in the manner provided by law. All earnings
8 received from the investment or deposit of such funds shall be
9 paid into the State Treasury to the credit of the Local Sewage
10 Treatment Facilities Fund.
11 Section 9. Local Sewage Treatment Facilities Sinking Fund.
12 All bonds issued under the authority of this act shall be
13 redeemed at maturity, and all interest due from time to time on
14 such bonds shall be paid from the Local Sewage Treatment
15 Facilities Fund, which is hereby created. For the specific
16 purposes of redeeming these bonds at maturity and paying all
17 interest thereon in accordance with the information received
18 from the Governor, the General Assembly shall appropriate moneys
19 for the payment of interest on these bonds and the principal
20 thereof at maturity. All moneys paid into the Local Sewage
21 Treatment Facilities Fund, and all of such moneys not necessary
22 to pay accruing interest shall be invested by the Board of
23 Finance and Revenue in such securities as are provided by law
24 for the investment of the sinking funds of the Commonwealth.
25 Section 10. Expenses of preparation, issue and sale of bonds.
26 There is hereby appropriated to the State Treasurer, from the
27 proceeds of the bonds issued, as much of the moneys as may be
28 necessary for all costs and expenses in connection with the
29 issue of and sale and registration of bonds in connection with
30 this section.
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1 Section 11. Temporary financing authorization.
2 (a) Temporary borrowing.--Pending the issuance of bonds of
3 the Commonwealth, the Governor, the Auditor General and the
4 State Treasurer are authorized, on the credit of the
5 Commonwealth, to make temporary borrowings of such moneys as may
6 from time to time be necessary to carry out the purposes of this
7 section and are authorized in the name and on behalf of the
8 Commonwealth to enter into loan or credit agreements with any
9 banks or trust companies or other lending institutions or
10 persons in the United States having power to enter into the
11 same.
12 (b) Form.--All temporary borrowings made under the authority
13 of this section shall be evidenced by notes of the Commonwealth
14 which shall be issued from time to time for such amounts, not
15 exceeding in the aggregate the sum of $600,000,000, in such
16 form, in such denominations and subject to such terms and
17 conditions of issue, prepayment or redemption and maturity, rate
18 of interest and time of payment of interest as the issuing
19 officials shall direct. All notes issued under the authority of
20 this section shall bear the facsimile signatures of the issuing
21 officials and a facsimile of the Great Seal of the Commonwealth
22 and shall be countersigned by two duly authorized officers of a
23 duly authorized loan and transfer agent of the Commonwealth.
24 (c) Funding and retirement.--All notes under this section
25 shall be funded and retired by the issuance and sale of bonds of
26 the Commonwealth to the extent that payment of these notes has
27 not otherwise been made or provided for.
28 (d) Proceeds.--The proceeds of all temporary borrowings
29 under this section shall be paid into the Local Sewage Treatment
30 Facilities Fund.
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1 Section 12. Quorum.
2 Whenever in this act any action is to be taken or any
3 decision is to be made by the Governor, the Auditor General and
4 the State Treasurer and the three officers are not able to agree
5 unanimously, the action or decision of the Governor and either
6 the Auditor General or the State Treasurer shall be binding and
7 final.
8 Section 13. Information to General Assembly.
9 It shall be the duty of the Governor to include in every
10 budget submitted to the General Assembly full information
11 relating to the issuance of bonds under the provisions of this
12 act and the status of the sinking funds of the Commonwealth for
13 the payment of the interest on those bonds and the principal
14 thereof at maturity.
15 Section 14. Grants to Sewage Treatment Authority.
16 The department shall, by regulation, establish procedures to
17 implement the purposes of this act and to make grants to
18 counties for the repair, expansion, construction,
19 reconstruction, rehabilitation and improvement of local sewage
20 treatment facilities. These procedures shall include, at a
21 minimum, the following:
22 (1) Applications shall be made to the department by the
23 authority requesting the grant.
24 (2) Any grant approved by the department must be matched
25 by funding in a like amount by the authority from authority
26 funds, except that, if any Federal funding should become
27 available for the construction of local sewage treatment
28 facilities, then both the department and the authority shares
29 shall be reduced in like proportion.
30 (3) Grants shall be available only for the repair,
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1 expansion, construction, reconstruction, rehabilitation and
2 improvement of local sewage treatment facilities.
3 (4) Priority in the grant process shall be given to
4 those authorities who have been deemed by the Environmental
5 Protection Agency as out of compliance with the requirements
6 of the Federal Water Pollution Control Act, (62 Stat. 1155,
7 33 U.S.C., § 1251 et seq).
8 Section 15. Appropriation.
9 (a) Appropriation to fund.--The sum of $600,000,000 or as
10 much thereof as is able to be borrowed by temporary financing or
11 by bonds is hereby appropriated to the Local Sewage Treatment
12 Facilities Fund for the purposes set forth in this act. The
13 General Assembly may make appropriations from time to time to
14 the Local Sewage Treatment Facilities Fund or to the department
15 to carry out the purposes of this act, which appropriations
16 shall be continuing appropriations and shall not lapse.
17 (b) Other sources of funds.--In addition to the moneys
18 appropriated from time to time by the General Assembly for its
19 work, the department is authorized to make application for and
20 expend such Federal grants as may be available and may also
21 receive and expend contributions from other public, quasi-public
22 or private sources as may become available.
23 Section 16. Effective date.
24 This act shall take effect in 60 days.
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