LOCAL GOVERNMENT CAPITAL PROJECT LOAN FUND ACT - REPEALED — 1990 Pa. Act 210 (historical enacted text)

Historical Act text

SENATE AMENDED
PRIOR PRINTER'S NOS. 1866, 2813, 2983 PRINTER'S NO. 4297
INTRODUCED BY LLOYD, GAMBLE, MERRY, BATTISTO, RAYMOND, KOSINSKI,
WASS, NOYE, BOWLEY, STISH, FOX, CARLSON, CESSAR, NAHILL,
COLAIZZO, JACKSON, DISTLER, F. TAYLOR, McNALLY, WOZNIAK,
BILLOW, ARGALL, KUKOVICH, REBER, TIGUE, VROON, TANGRETTI,
MARKOSEK, LASHINGER, KONDRICH, PHILLIPS, McVERRY, JOHNSON,
BURD, FARGO, DALEY, COY, LAUGHLIN, SAURMAN, BELFANTI,
CORRIGAN, MRKONIC, PISTELLA, ROBINSON, DIETTERICK, MAINE,
FREEMAN, KASUNIC, LEVDANSKY, RITTER, DeLUCA, CIVERA, STABACK,
MELIO, FLEAGLE, BELARDI, TELEK, FLICK, E. Z. TAYLOR, COHEN,
HERMAN, McCALL, VAN HORNE, TRELLO, COWELL, McHALE, SERAFINI,
HESS, VEON, BISHOP, SCRIMENTI, RICHARDSON, ADOLPH, BROUJOS,
MICHLOVIC AND TRICH, MAY 31, 1989
SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, NOVEMBER 14, 1990
AN ACT
1 Providing loans to municipalities; creating a loan fund;
2 conferring powers upon the Department of Community Affairs;
3 and transferring an appropriation.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Local
8 Government Capital Project Loan Fund Act.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
1 "Department." The Department of Community Affairs of the
2 Commonwealth.
3 "Equipment." Any truck, car, bulldozer, backhoe, grader,
4 highlift, forklift, street sweeper, other mechanized vehicle or
5 data processing equipment, including any computer, terminal,
6 printer, expansion unit, display unit or related component of a
7 data processing system.
8 "Facilities." Any structure used to house offices or
9 equipment and the land on which the structure is situated.
10 "Fund." The Local Government Capital Project Loan Fund.
11 "Municipality." Any borough, town, first class township,
12 second class township, third class city or county, provided that
13 the term shall not include any boroughs, towns, townships,
14 cities or counties which have a population in excess of 12,000.
15 Section 3. Assistance to municipalities.
16 (a) Purposes; amounts.--The department is hereby authorized,
17 upon application of a municipality, to make loans to the
18 municipality for the following purposes and in the following
19 amounts:
20 (1) Purchasing equipment. The amount of a loan made for
21 purchasing equipment shall not exceed $50,000 $25,000 for any <--
22 single piece of equipment or 50% of the total cost of the
23 piece of equipment, whichever is less.
24 (2) Purchasing, constructing, renovating or
25 rehabilitating facilities. The amount of a loan made for
26 purchasing, constructing, renovating or rehabilitating
27 facilities shall not exceed $100,000 $50,000 for any single <--
28 facility or 50% of the total cost for purchasing,
29 constructing, renovating or rehabilitating the facility,
30 whichever is less.
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1 (b) Terms.--Loans made by the department shall be for a
2 period of not more than ten years. Loans shall be subject to the
3 payment of interest at 2% per annum and shall be subject to such
4 security as shall be determined by the department. The total
5 amount of interest earned by the investment or reinvestment of
6 all or any part of the principal of any loan shall be returned
7 to the department and transferred to the fund and shall not be
8 credited as payment of principal or interest on the loan. The
9 minimum amount of any loan shall be $1,000. The municipality
10 shall comply with the approval requirements of the act of July
11 12, 1972 (P.L.781, No.185), known as the Local Government Unit
12 Debt Act.
13 (c) Financial statement.--Every application for a loan under
14 this act shall be accompanied by a financial statement of the
15 municipality and a financial plan to show how the loan will be
16 repaid. Every application shall be accompanied by evidence
17 sufficient to show that all costs except the amount of the loan
18 will be met by assets or revenues of the municipality, grants or
19 loans from other sources, or in-kind contributions or services.
20 (d) Limitations.--Loans under this act shall be used for
21 purchasing equipment and for purchasing, constructing,
22 renovating or rehabilitating facilities and shall not be used
23 for operating expenses or for the refinancing or reduction of
24 any debt or obligation incurred prior to the effective date of
25 this act.
26 (e) Regulations.--Loans made by the department shall be paid
27 from the fund to municipalities in accordance with rules and
28 regulations promulgated by the department.
29 (f) Interest.--All payments of interest on loans and the
30 principal thereof shall be deposited by the department in the
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1 fund.
2 Section 4. Local Government Capital Project Loan Fund.
3 (a) Fund.--There is hereby created a special fund in the
4 Treasury Department, to be known as the Local Government Capital
5 Project Loan Fund, to which shall be credited all appropriations
6 made by the General Assembly, other than appropriations for
7 expenses of administering this act, or grants from other sources
8 to the department as well as repayment of principal and interest
9 on loans made pursuant to this act.
10 (b) Revolving fund.--The department shall routinely
11 requisition from the fund such amounts as shall be allocated by
12 the department for loans to municipalities pursuant to this act.
13 When and as the amounts so allocated by the department as loans
14 to municipalities are repaid to the department pursuant to the
15 terms of the agreements made and entered into with the
16 department, the department shall pay such amounts into the fund,
17 it being the intent of this act that the fund shall operate as a
18 revolving fund whereby all appropriations and payments made
19 thereto may be applied and reapplied for the purposes of this
20 act.
21 Section 5. Powers and duties of the department.
22 In addition to the powers and duties conferred upon the
23 department under other provisions of law, the department shall
24 have the power and duty to:
25 (1) Lend money for the purposes authorized by this act
26 over a term of years, but in no case in excess of ten years.
27 (2) Accept grants from the Federal Government and any
28 other individual, agency or government for use in the fund.
29 (3) Prescribe the form of the application for a loan
30 pursuant to this act.
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1 (4) Advise a municipality regarding the financial
2 ability of the municipality to purchase equipment or to
3 purchase, construct, renovate or rehabilitate facilities.
4 (5) Assist a municipality in taking advantage of joint
5 purchasing arrangements and of opportunities to purchase
6 surplus equipment from the Commonwealth or other political
7 subdivisions.
8 (6) Require security for a loan, if determined to be
9 necessary.
10 (7) Specify priority of liens against any facilities or
11 equipment purchased by a municipality using funds loaned
12 pursuant to this act, if determined to be necessary.
13 (8) Establish a schedule which provides at least an
14 annual opportunity for municipalities to apply for, and
15 receive, loans.
16 Section 6. Ranking of applications.
17 Whenever the department determines that there will not be
18 enough money in the fund to make loans to all of the
19 municipalities expected to submit eligible applications during
20 an application period, the department shall rank the
21 applications in order of priority to determine which loans shall
22 be made first. A system of ranking shall be established for the
23 purposes of this section by regulation and shall provide for
24 consideration of factors such as whether the municipality has
25 previously received a loan pursuant to this act; the financial
26 condition of the municipality; and the impact of the purchase of
27 equipment or the purchase, construction, renovation or
28 rehabilitation of facilities on the health, safety or welfare of
29 the residents of the municipality.
30 Section 7. Guidelines and regulations.
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1 (a) One-year exemption from review.--In order to facilitate
2 the speedy implementation of this program, the department shall
3 have the power and authority to promulgate, adopt and use
4 guidelines which shall be published in the Pennsylvania
5 Bulletin. The guidelines shall not be subject to review pursuant <--
6 to section 205 of the act of July 31, 1968 (P.L.769, No.240),
7 referred to as the Commonwealth Documents Law, AND TO sections <--
8 204(b) and 301(10) of the act of October 15, 1980 (P.L.950,
9 No.164), known as the Commonwealth Attorneys Act, or BUT SHALL <--
10 NOT BE SUBJECT TO REVIEW PURSUANT TO the act of June 25, 1982
11 (P.L.633, No.181), known as the Regulatory Review Act, and, <--
12 except as provided in subsection (c), shall be effective for a
13 period not to exceed one year from the effective date of this
14 act.
15 (b) Expiration of exemption.--Except as provided in <--
16 subsection (c), after AFTER the expiration of the one-year <--
17 period all guidelines shall expire and shall be replaced by
18 regulations which shall have been promulgated, adopted and
19 published as provided by law.
20 (c) Exception.--The General Assembly may provide for an <--
21 extension of the guidelines adopted pursuant to subsection (a),
22 if the Leadership Committee created pursuant to sections 3 and 4
23 of the act of December 22, 1981 (P.L.508, No.142), known as the
24 Sunset Act, extends the guidelines adopted pursuant to
25 subsection (a).
26 Section 8. Transfer of funds.
27 The appropriation in the amount of $1,250,000 $500,000 to the <--
28 Department of Community Affairs for low interest loans to local
29 governments for purchasing capital equipment or for purchasing,
30 constructing, renovating or rehabilitating facilities in section
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1 211 of the act of July 1, 1989 (P.L. , No.3A) 1990 (P.L. , <--
2 NO.7A), known as the General Appropriation Act of 1989 1990, is <--
3 hereby transferred to the Local Government Capital Project Loan
4 Fund.
5 Section 9. Applicability. <--
6 This act shall be retroactive to July 1, 1989.
7 SECTION 9. EXPIRATION. <--
8 THIS ACT SHALL EXPIRE JUNE 30, 1994.
9 Section 10. Effective date.
10 This act shall take effect immediately.
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