PRINTER'S NO. 2412
No. 1728 Session of 1990
INTRODUCED BY WILT, JUNE 29, 1990
REFERRED TO LOCAL GOVERNMENT, JUNE 29, 1990
AN ACT
1 Amending the act of July 12, 1972 (P.L.781, No.185), entitled,
2 as amended, "An act providing debt limits for local
3 government units, including municipalities and school
4 districts; providing the methods of incurring, evidencing,
5 securing and collecting debt; defining the powers and duties
6 of the Department of Community Affairs and certain other
7 public officers and agencies with respect thereto; exercising
8 the inherent legislative authority of the General Assembly by
9 providing additional over-all limitations on the incurring of
10 lease rental and other obligations for the acquisition of
11 capital assets to be repaid from the general tax revenues of
12 such local government units; imposing penalties for filing
13 false or untrue statements or refusing to give information
14 with respect to proceedings for the incurring of debt; and
15 conferring jurisdiction on the Commonwealth Court with
16 respect to certain proceedings relating to the incurring of
17 debt," authorizing borrowing as a result of a potential delay
18 in receiving or failure to receive anticipated revenue from
19 the Commonwealth.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. The act of July 12, 1972 (P.L.781, No.185), known
23 as the Local Government Unit Debt Act, reenacted and amended
24 April 28, 1978 (P.L.124, No.52), is amended by adding a section
25 to read:
26 Section 501.1. Authorized Borrowing as a Result of a
1 Potential Delay in Receiving or Failure to Receive Anticipated
2 Revenue from the Commonwealth.--(a) If, during a fiscal year, a
3 local government unit reasonably expects to receive anticipated
4 revenues from the Commonwealth, including subsidies,
5 reimbursements or other payments, and if such anticipated
6 revenues may not be received until the following fiscal year,
7 the local government unit may borrow in anticipation of such
8 revenue under the same terms and conditions that it issues tax
9 anticipation notes, except that the maturity date of the notes
10 issued pursuant to this subsection may be extended to the last
11 day of the fiscal year following the fiscal year in which said
12 notes are issued; provided, however, that notwithstanding the
13 extended maturity date of notes issued pursuant to this
14 subsection, said notes shall be repaid by the local government
15 unit promptly upon the receipt of the anticipated revenue from
16 the Commonwealth.
17 (b) If, during a fiscal year, a local government unit does
18 not reasonably expect to receive as anticipated revenue from the
19 Commonwealth, a subsidy, reimbursement or other payment, in an
20 amount equal to or greater than the amount of such subsidy,
21 reimbursement or other payment received in the preceding fiscal
22 year, the local government unit may borrow the amount of the
23 decrease in the subsidy, reimbursement or other payment, under
24 the same terms and conditions that it issues tax anticipation
25 notes, except that the maturity date of notes issued pursuant to
26 this subsection may be extended to allow for repayment of said
27 notes in equal installments in each of the three fiscal years
28 following the fiscal year in which said notes are issued;
29 provided, however, that said notes shall be repaid by the local
30 government unit promptly upon the receipt of the anticipated
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1 revenue from the Commonwealth.
2 Section 2. This act shall take effect immediately.
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