PRINTER'S NO. 1389
No. 1133 Session of 1999
INTRODUCED BY CONTI, GERLACH, TILGHMAN, KUKOVICH AND COSTA,
OCTOBER 14, 1999
REFERRED TO TRANSPORTATION, OCTOBER 14, 1999
AN ACT
1 Establishing the Infrastructure Concurrency Bank to ensure that
2 adequate public facilities exist to accompany community and
3 economic development in this Commonwealth and to assist
4 municipalities in maintaining their quality of life in the
5 face of rapid population growth.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the
10 Infrastructure Concurrency Bank Act.
11 Section 2. Declaration of purpose.
12 It is the purpose of this act to more effectively address the
13 problems of Pennsylvania's communities by recognizing that
14 community development and economic development are inextricably
15 linked to intelligent growth, by recognizing that adequate
16 public facilities are a necessary component of such growth and
17 by providing a financial resource to municipalities confronted
18 with transportation infrastructure issues stemming from rapid
19 development.
1 Section 3. Definitions.
2 The following words and phrases when used in this act shall
3 have the meanings given to them in this section unless the
4 context clearly indicates otherwise:
5 "Bank." The Infrastructure Concurrency Bank created under
6 this act.
7 "Department." The Department of Transportation of the
8 Commonwealth.
9 "Eligible municipalities." Those municipalities which meet
10 the criteria set forth in section 7(a), and which have prepared
11 a transportation capital improvement plan as provided for in the
12 act of July 31, 1968 (P.L.805, No.247), known as the
13 Pennsylvania Municipalities Planning Code.
14 "Municipality." Any city of the second class A or third
15 class, borough, incorporated town, township of the first or
16 second class, home rule municipality or other general purpose
17 unit of government which has been granted the authority by the
18 General Assembly to promulgate zoning ordinances under the act
19 of July 31, 1968 (P.L.805, No.247), known as the Pennsylvania
20 Municipalities Planning Code.
21 "Qualified projects." Those projects which meet the criteria
22 contained in section 8.
23 Section 4. Infrastructure Concurrency Bank created.
24 There is hereby established a special fund in the Department
25 of Transportation to be known as the Infrastructure Concurrency
26 Bank. The bank shall be administered by the department, and the
27 State Treasurer shall be the treasurer-custodian of the revenues
28 and funds of the bank. All revenues and funds received by the
29 bank pursuant to section 5 are hereby appropriated to the
30 department to further the purposes specified in this act.
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1 Section 5. Revenue sources.
2 (a) Sources of revenue.--The bank may receive money from,
3 but not limited to, the following:
4 (1) State funds appropriated to the bank.
5 (2) Federal funds appropriated to or granted to the
6 bank.
7 (3) proceeds from the sale of bonds.
8 (4) Repayment of loan principal.
9 (5) Payment of interest on loans made by the bank.
10 (6) Interest earned on the investments of bank funds.
11 (7) Revenues from such other sources as may be
12 authorized by law on or after the effective date of this act.
13 Section 6. Powers and duties of bank.
14 The bank shall have and may exercise all powers necessary or
15 appropriate to carry out and effectuate the purposes of this
16 act, including, but not limited to, the following:
17 (1) Provide financial assistance in the form of loans to
18 eligible municipalities for qualified projects fulfilling the
19 purposes of this act.
20 (2) Establish the procedure for processing the
21 applications for financial assistance as provided for in this
22 act.
23 (3) Establish and collect fees, charges and interest.
24 (4) Establish fiscal controls and accounting procedures
25 for the bank.
26 (5) Conduct any and all investigations necessary for the
27 approval of projects or the collection of loans, including
28 the power to take testimony under oath or affirmation.
29 (6) Accept grants from, and enter into contracts or
30 other transactions with, any Federal, State or local agency.
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1 (7) Make and execute all instruments necessary to
2 facilitate the implementation of the purposes of this act.
3 (8) Invest the funds of the bank in such manner as is
4 reasonable and prudent.
5 (9) Promulgate such standards, regulations, guidelines
6 and forms as are otherwise necessary and proper.
7 Section 7. Criteria for obtaining financial assistance.
8 (a) Eligible municipalities.--Any municipality in this
9 Commonwealth may apply to receive financial assistance from the
10 bank if it is located within a county which, in the five years
11 preceding the application, was within the top 35 Commonwealth
12 counties in all the following:
13 (1) Actual population growth.
14 (2) Percentage increase in population.
15 (3) Actual number of new residential construction
16 permits issued.
17 (b) Financing priorities.--
18 (1) In assigning priorities for projects, the bank shall
19 consider the following factors:
20 (i) Whether the project is a qualified project
21 pursuant to section 8.
22 (ii) The length of time that has elapsed since the
23 filing of the application for financial assistance by the
24 municipality.
25 (2) In assigning priorities for projects, the bank may
26 also consider factors such as:
27 (i) Benefits to public health, safety or welfare.
28 (ii) The cost-effectiveness of the project.
29 (iii) Such other factors as the bank deems necessary
30 or appropriate.
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1 Section 8. Qualified projects.
2 Financial assistance shall be given for only the following
3 types of projects:
4 (1) Development of a transportation capital improvement
5 plan as provided for in the act of July 31, 1968 (P.L.805,
6 No.247), known as the Pennsylvania Municipalities Planning
7 Code.
8 (2) Projects for the design, right-of-way acquisition,
9 utility relocation or construction of a road or bridge
10 contained in a transportation capital improvement plan
11 promulgated pursuant to the Pennsylvania Municipalities
12 Planning Code.
13 Section 9. Terms of financial assistance.
14 The terms of any financial assistance to a municipality under
15 this act shall include, but not be limited to, the following:
16 (1) Financial assistance may be provided to cover the
17 full cost of a qualified project, to a maximum of
18 $10,000,000.
19 (2) The bank may offer an eligible municipality a loan
20 repayment schedule based on a sliding scale timetable, up to
21 a maximum of 20 years, depending on the cost of the qualified
22 project.
23 (3) The interest rate for financial assistance shall be
24 established by the bank but may not exceed one-half of the
25 prime lending rate as determined and published by the Federal
26 Reserve at the time of receipt of the application, nor less
27 than 2% simple interest.
28 Section 10. Effective date.
29 This act shall take effect January 1, 2000.
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