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                                                       PRINTER'S NO. 862

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 762 Session of 1997


        INTRODUCED BY GEORGE, REBER, PISTELLA, DeWEESE, SCHRODER, WALKO,
           BAKER, READSHAW, OLASZ, WAUGH, STERN, TIGUE, TRAVAGLIO,
           WOJNAROSKI, FAIRCHILD, COLAIZZO, BATTISTO, STABACK, BELARDI,
           VAN HORNE, GRUITZA, EVANS, VITALI, TRICH, STEELMAN, SANTONI,
           GORDNER, RAMOS, ROONEY, HALUSKA, SURRA, BOSCOLA, PETRARCA,
           EACHUS, TRELLO, McCALL, ITKIN, CLARK, YOUNGBLOOD,
           CAPPABIANCA, CAWLEY, MELIO, CURRY, LAUGHLIN, MIHALICH AND
           COLAFELLA, MARCH 12, 1997

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           MARCH 12, 1997

                                     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. Loans are limited to $100,000 or
    25         75% of eligible project costs, whichever is less. The
    26         grantee shall provide local share in the form of matching
    27         funds or in-kind services at a minimum of 25% of the
    28         total project costs. The loan shall be for ten years at
    29         an interest rate of 2%.
    30             (ii)  Loans shall be used for the following purposes:
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     1                 (A)  Drinking water facilities including
     2             construction, rehabilitation, alteration, expansion
     3             or improvement of water facilities.
     4                 (B)  Pumping stations, distribution and treatment
     5             facilities and reservoir rehabilitation projects.
     6                 (C)  Sanitary sewage disposal facilities,
     7             including all facilities related to collection lines
     8             and sewage treatment facilities and excluding storm
     9             sewers.
    10                 (D)  Access roads to serve a public water or
    11             sanitary sewer facility.
    12         (4)  (i)  The board shall establish the Community
    13         Facilities Grant Program. The program shall provide
    14         supplemental financial assistance for needed public
    15         facilities to strengthen income-producing capability,
    16         improve health and safety and alleviate financial
    17         hardship of the community.
    18             (ii)  Grants may be awarded for up to $50,000.
    19         Certain eligible economically distressed communities, as
    20         determined under the act of July 10, 1987 (P.L.246,
    21         No.47), known as the Municipalities Financial Recovery
    22         Act, may receive a maximum of $75,000.
    23             (iii)  Any borough, township or city with a
    24         population of 10,000 or less and municipal and county
    25         authorities serving such places is eligible for grants.
    26         For projects serving more than one municipality, the
    27         population served may not exceed 10,000.
    28             (iv)  Grants shall be used for the following
    29         purposes:
    30                 (A)  Drinking water facilities including
    19970H0762B0862                  - 3 -

     1             construction, rehabilitation, alteration, expansion
     2             or improvement of water facilities.
     3                 (B)  Pumping stations, distribution and treatment
     4             facilities and reservoir rehabilitation projects.
     5                 (C)  Sanitary sewage disposal facilities,
     6             including all facilities related to collection lines
     7             and sewage treatment facilities and excluding storm
     8             sewers.
     9                 (D)  Access roads to serve a public water or
    10             sanitary sewer facility.
    11             (v)  The board shall promulgate regulations to
    12         implement this paragraph.
    13         (5)  The board shall expend annually $15,000,000 from the
    14     Pennsylvania Infrastructure Investment Authority funds to
    15     implement paragraphs (3) and (4).
    16     * * *
    17     Section 2.  The functions, powers and duties of the
    18  Department of Commerce with regard to the community facilities
    19  program as provided for in 13 Pa. Code Ch. 11 (relating to
    20  community facilities) are transferred to and shall be exercised
    21  by the authority, and all records, files and property now being
    22  used in connection with such functions, powers and duties and
    23  the unexpended balances of appropriations, allocations and other
    24  funds available or to be made available for use in connection
    25  with such functions, powers and duties are transferred to the
    26  authority.
    27     Section 3.  Each rule and regulation of the Department of
    28  Commerce relating to the Community Facilities Grant Program in
    29  effect on the effective date of this act shall remain in effect
    30  after such date until repealed or amended by the board or until
    19970H0762B0862                  - 4 -

     1  it terminates in accordance with its own terms.
     2     Section 4.  All acts and parts of acts are repealed insofar
     3  as they are inconsistent with this act.
     4     Section 5.  This act shall take effect in 60 days.


















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