act-1996-2-4•Pennsylvania Act 1996-4 (session 2) — BLIZZARD AND FLOOD EMERGENCY OF 1996 - OMNIBUS AMENDMENTS
Pennsylvania Act 1996-4 (session 2) — BLIZZARD AND FLOOD EMERGENCY OF 1996 - OMNIBUS AMENDMENTS
act-1996-2-41996 Pa. Act 4 (session 2)Law
Act text
BLIZZARD AND FLOOD EMERGENCY OF 1996 - OMNIBUS AMENDMENTS
Act of Jul. 11, 1996, Special Session 2, P.L. 1767, No. 4 Cl. 86
Special Session No. 2 of 1996
No. 1996-4
AN ACT
Implementing the provisions of clause (1) of subsection (a) of
section 7 of Article VIII of the Constitution of the
Commonwealth of Pennsylvania authorizing the incurring of
debt for the rehabilitation of areas affected by the blizzard
of January 1996 or the resulting flood emergency; imposing
duties upon the Governor, the Auditor General and State
Treasurer; prescribing the procedures for the issuance, sale
and payment of general obligations bonds, the funding of debt
and refunding of bonds; exempting said bonds from State and
local taxation; creating certain funds; providing for
allocation of proceeds and for a legislative disaster
oversight committee; and making appropriations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Borrowing of money authorized.
Pursuant to the provisions of clause (1) of subsection (a) of
section 7 of Article VIII of the Constitution of Pennsylvania,
the Commonwealth is hereby authorized and directed to borrow
from time to time money not exceeding in the aggregate the sum
of $110,000,000, not including money borrowed to refund
outstanding bonds, notes or replacement notes, as may be found
necessary to carry out the rehabilitation of areas affected by
the blizzard of January 1996 or the resulting flood emergency.
Section 2. General obligation bonds authorized.
The indebtedness herein authorized shall be incurred from
time to time and shall be evidenced by one or more series of
general obligation bonds or notes of the Commonwealth in such
aggregate principal amount for each series as the Governor,
Auditor General and State Treasurer shall determine, but the
latest stated maturity date shall not exceed 20 years from the
date of the bond first issued for each such series.
Section 3. Disposition and use of proceeds.
(a) Deposit.--The proceeds from the sale of bonds and notes,
except refunding bonds and replacement notes, issued pursuant to
the provisions of this act shall be paid to the State Treasurer
and be held in a separate fund to be known as the Disaster
Relief Fund.
(b) Dedication of funds.--The moneys in the Disaster Relief
Fund are hereby specifically dedicated to meeting the costs of
the rehabilitation of areas affected by the blizzard of January
1996 or the resulting flood emergency, including, but not
limited to, public assistance and disaster mitigation as defined
in or authorized by The Robert T. Stafford Disaster Relief and
Emergency Assistance Act (Public Law 93-288, 88 Stat. 143) and
paying the costs and expenses of issuing bonds and notes.
(c) Interest earnings.--Pending their application to the
purposes authorized, moneys held or deposited by the State
Treasurer may be invested and reinvested as are other funds in
the custody of the State Treasurer in the manner provided by
law. All earnings received from the investment or deposit of
such funds shall be paid into the State Treasury to the credit
of the Disaster Relief Fund.
(d) Allocation of proceeds.--Subject to the total limit of
$110,000,000, the funds authorized to be borrowed by section 1
shall be allocated as follows:
(1) No more than $105,000,000 of the funds authorized to
be borrowed under this act shall be used to provide for the
State's share of all public assistance costs, including costs
for highways and bridges, except State-designated highways
and bridges, and disaster mitigation costs provided by the
Federal Government under The Robert T. Stafford Disaster
Relief and Emergency Assistance Act (Public Law 93-288, 88
Stat. 143).
(2) (i) No more than 5% of the funds borrowed under
this act shall be used for the cost of the following
projects pursuant to the disaster proclamation:
(A) Public assistance projects for the
rehabilitation, construction, reconstruction, repair,
other than normal maintenance, or the replacement of
any public facility of a political subdivision in
counties declared as disaster areas which are not
funded by the Federal Government or which are funded
by the Federal Government at a level insufficient to
meet current codes and standards.
(B) Public assistance projects for the
rehabilitation, construction, reconstruction, repair,
other than normal maintenance, or the replacement of
any nonprofit facility owned and operated by a
nonprofit organization in counties declared as
disaster areas which are not funded by the Federal
Government or which are funded at a level
insufficient to meet current codes and standards.
(C) Public assistance projects for the
rehabilitation, construction, reconstruction, repair,
other than normal maintenance, or the replacement of
a public facility or nonprofit facility in counties
not declared as disaster areas by the Federal
Government.
(D) Hazard mitigation projects in counties not
declared as disaster areas by the Federal Government.
(ii) If the funding for projects under this
paragraph is insufficient to provide assistance for all
eligible projects, the Commonwealth shall prioritize
projects by considering the following factors:
(A) The severity of disaster-related damages to
be rectified by the project.
(B) Whether the project will improve the health,
safety and welfare of the affected population.
(C) Whether the project will lead to an
effective solution to the problem to be addressed.
(D) The consistency of the project with other
State and regional resource management and economic
development plans.
(E) The financial condition of the applicant,
including revenues, expenses, debt structure, equity
position and available collateral.
(F) The economic and financial condition of the
community to be served, including the tax base,
annual budget and percentage of low-income and
moderate-income residents.
(G) The inability of the applicant to secure
funding from other sources.
(iii) Any remaining funds under this paragraph shall
be transferred to the Pennsylvania Infrastructure
Investment Authority established under the act of March
1, 1988 (P.L.82, No.16), known as the Pennsylvania
Infrastructure Investment Authority Act, to provide funds
for authority projects which were damaged by the blizzard
of January 1996 or the resulting flood emergency.
(iv) No project shall receive more than $100,000 of
the total funds available under this paragraph, except as
defined in section 14(b)(2).
(v) No project shall be funded under subparagraph
(i)(A) or (B) unless the Commonwealth determines that
there was an adequate appeal of the denial of Federal
funding or of the inadequate level of Federal funding.
(e) Transfer of unused funds.--Moneys in the Disaster Relief
Fund not necessary to pay unexpired contracts or to pay
potential legal obligations shall be transferred by the State
Treasurer, with the approval of the Governor, to the Disaster
Relief Redemption Fund and shall be used to pay debt service on
the existing disaster relief bonds.
Section 4. Issuance of bonds; interest; maturity.
(a) Series and issues.--When bonds are issued from time to
time, the bonds of each issue shall constitute a separate series
to be designated by the issuing officials or may be combined for
sale as one series with other general obligation bonds of the
Commonwealth. Each series of bonds shall bear such rate or rates
of interest as may be determined by the issuing officials. Such
bonds shall be issued in such denominations and in such form or
forms, whether coupon or registered as to both principal and
interest, and with or without such provisions for
interchangeability as the issuing officials may determine. In
case interest coupons are attached, they shall contain the
facsimile signature of the State Treasurer.
(b) Terms.--Except as otherwise set forth in the provisions
of this act, the terms and conditions of issue, redemption and
maturity and time of payment of interest shall be as the issuing
officials shall specify. The issuing officials shall provide for
the amortization of the bonds in substantial and regular amounts
over the term of the debt. The first retirement of principal
shall be stated to mature prior to the expiration of a period of
time equal to one-tenth of the time from the date of the first
obligation issued to evidence such debt to the date of the
expiration of the term of the debt. Retirements of principal
shall be regular and substantial if made in annual or semiannual
amounts whether by stated serial maturities or by mandatory
sinking fund retirements computed in accordance with either a
level annual debt service plan, as nearly as may be, or upon the
equal annual maturities plan. The issuing officials are hereby
authorized to carry out the provisions of this act relating to
the issuance of bonds and shall determine all matters in
connection therewith subject to the provisions hereof.
(c) Signatures.--All bonds issued under the authority of
this act shall bear the facsimile signatures of the issuing
officials and a facsimile of the Great Seal of the Commonwealth
of Pennsylvania and shall be countersigned by a duly authorized
officer of a duly authorized loan and transfer agent of the
Commonwealth.
Section 5. Direct obligations; exemption from taxation; means
of payment.
All bonds issued in accordance with the provisions of this
act shall be direct obligations of the Commonwealth, and the
full faith and credit of the Commonwealth are hereby pledged for
the payment of the interest thereon as the same shall become due
and the payment of the principal thereof at maturity. All bonds
issued under the provisions of this act shall be exempt from
taxation for State and local purposes, except as provided under
Article XXIX of the act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971. The principal of and interest on
such bonds shall be payable in lawful money of the United
States.
Section 6. Sale of bonds.
(a) Requirements.--Whenever bonds are issued in accordance
with this act, they shall be offered for sale at not less than
98% of the principal amount thereof and accrued interest and
shall be sold by the issuing officials to the highest and best
bidder or bidders after due public advertisement on such terms
and conditions and upon such open competitive bidding as the
issuing officials shall direct. The manner and times of
advertising shall be prescribed by the issuing officials.
(b) Private sale.--Any portion of any bond issue so offered
and not sold or subscribed for may be disposed of by private
sale by the issuing officials in such manner and at such prices,
not less than 98% of the principal amount thereof and accrued
interest, as the Governor shall direct. No commission shall be
allowed or paid for the sale of any bonds issued under the
authority of this act.
(c) Temporary bonds.--Until permanent bonds can be prepared,
the issuing officials may in their discretion issue in lieu of
such permanent bonds, temporary bonds in such form and with such
privileges as to registration and exchange for permanent bonds
as may be determined by the issuing officials.
Section 7. Temporary financing authorization.
(a) Temporary borrowing.--Pending the issuance of bonds of
the Commonwealth as authorized, the issuing officials are hereby
authorized, in accordance with the provisions of this act and on
the credit of the Commonwealth, to make temporary borrowings,
through public or private sale, not to exceed three years in
anticipation to the issue of bonds in order to provide funds in
such amounts as may from time to time be deemed advisable prior
to the issue of bonds. In order to provide for and in connection
with such temporary borrowings, the issuing officials are hereby
authorized in the name and on behalf of the Commonwealth to
enter into any purchase, loan or credit agreement, or
agreements, or other agreement or agreements with any banks or
trust companies or other lending institutions, investment
banking firms or persons in the United States having power to
enter into the same, which agreements may contain such
provisions not inconsistent with the provisions of this act as
may be authorized by the issuing officials.
(b) Evidence of debt.--All temporary borrowings made under
the authorization of this section shall be evidenced by notes of
the Commonwealth, which shall be issued from time to time for
such amounts not exceeding in the aggregate the applicable
statutory and constitutional debt limitation, in such form and
in such denominations and subject to terms and condition of sale
and issue, prepayment or redemption and maturity, rate or rates
of interest and time of payment of interest as the issuing
officials shall authorize and direct and in accordance with this
act. Such authorization and direction may provide for the
subsequent issuance of replacement notes to refund outstanding
notes or replacement notes, which replacement notes shall, upon
issuance thereof, evidence such borrowing, and may specify such
other terms and conditions with respect to the notes and
replacement notes thereby authorized for issuance as the issuing
officials may determine and direct.
(c) Replacement notes.--When the authorization and direction
of the issuing officials provide for the issuance of replacement
notes, the issuing officials are hereby authorized in the name
and on behalf of the Commonwealth to issue, enter into or
authorize and direct the State Treasurer to enter into
agreements with any banks, trust companies, investment banking
firms or other institutions or persons in the United States
having the power to enter the same:
(1) To purchase or underwrite an issue or series of
issues of notes.
(2) To credit, to enter into any purchase, loan or
credit agreements, to draw moneys pursuant to any such
agreements on the terms and conditions set forth therein and
to issue notes as evidence of borrowings made under any such
agreements.
(3) To appoint as issuing and paying agent or agents
with respect to notes.
(4) To do such other acts as may be necessary or
appropriate to provide for the payment, when due, of the
interest on and the principal of such notes.
Such agreements may provide for the compensation of any
purchasers or underwriters of notes or replacement notes by
discounting the purchase price of the notes or by payment of a
fixed fee or commission at the time of issuance thereof, and all
other costs and expenses, including fees for agreements related
to the notes, issuing and paying agent costs and costs and
expenses of issuance, may be paid from the proceeds of the
notes.
(d) Duties of State Treasurer.--When the authorization and
direction of the issuing officials provide for the issuance of
replacement notes, the State Treasurer shall, at or prior to the
time of delivery of these notes or replacement notes, determine
the principal amounts, dates of issue, interest rate or rates
(or procedures for establishing such rates from time to time),
rates of discount, denominations and all other terms and
conditions relating to the issuance and shall perform all acts
and things necessary to pay or cause to be paid, when due, all
principal of and interest on the notes being refunded by
replacement notes and to assure that the same may draw upon any
moneys available for that purpose pursuant to any purchase, loan
or credit agreements established with respect thereto, all
subject to the authorization and direction of the issuing
officials.
(e) Retirement of outstanding notes.--Outstanding notes
evidencing such borrowings may be funded and retired by the
issuance and sale of the bonds of the Commonwealth as
hereinafter authorized. The refunding bonds must be issued and
sold not later than a date three years after the date of
issuance of the first notes evidencing such borrowings to the
extent that payment of such notes has not otherwise been made or
provided for by sources other than proceeds of replacement
notes.
(f) Disposition of proceeds.--The proceeds of all such
temporary borrowing shall be paid to the State Treasurer to be
held and disposed of in accordance with the provisions of this
act.
Section 8. Disaster Relief Redemption Fund.
(a) Establishment.--All bonds issued under the authority of
this act shall be paid at maturity and all interest due from
time to time on such bonds and on all notes issued under the
provisions of this act shall be paid from the Disaster Relief
Redemption Fund. The General Assembly shall appropriate annually
the moneys necessary to pay the aforesaid interest on said bonds
and notes and the principal of said bonds and notes at maturity
for which other provision is not made. All moneys so
appropriated shall be paid into the Disaster Relief Redemption
Fund by the State Treasurer. All of such moneys so received
prior to the date for disbursement thereof shall be invested by
the State Treasurer pending disbursement in such securities as
are provided by law for the investment of surplus moneys of the
Commonwealth.
(b) Use of fund.--The investment of such moneys and the
accumulations thereon in the Disaster Relief Redemption Fund
shall be devoted to and be used exclusively for the payment of
the interest accruing on such bonds and notes and for the
redemption of such bonds and notes at maturity or upon the
redemption date, if called for prior redemption. The State
Treasurer, with the approval of the Governor, is authorized at
any time to use any of such funds for the purchase and
retirement of all or any part of the bonds issued under the
provisions of this act. No purchase shall be made which will
reduce the moneys in the Disaster Relief Redemption Fund below
the amount necessary to pay all principal and interest still to
become due in the fiscal year of such purchase. In the event
that all or any part of said bonds shall be purchased by the
Commonwealth, they shall be canceled and returned to the State
Treasurer as canceled and paid bonds and thereafter all payments
of interest thereon shall cease and the canceled bonds and
coupons shall be destroyed as promptly as possible after
cancellation but not later than two years after cancellation. A
certificate evidencing the destruction of the canceled bonds,
notes and coupons shall be provided by the loan and transfer
agent to the issuing officials. All canceled bonds, notes and
coupons shall be so mutilated as to make the canceled bonds,
notes and coupons nonnegotiable.
Section 9. Refunding bonds.
The issuing officials are authorized to provide by resolution
for the issuance of refunding bonds for the purpose of refunding
any debt issued under the provisions of this act and then
outstanding, either by voluntary exchange with the holders of
the outstanding debt or to provide funds to redeem and retire
the outstanding debt with accrued interest, any premium payable
thereon and the costs of issuance and retirement of the debt, at
maturity or at any call date. The issuance of the refunding
bonds, the maturities and other details thereof, the rights of
the holders thereof and the duties of the issuing officials in
respect thereto shall be governed by the provisions of this
section insofar as they may be applicable. Refunding bonds which
are not subject to the aggregate limitation of $110,000,000 of
debt to be issued pursuant to this act may be issued by the
issuing officials to refund debt originally issued or to refund
bonds previously issued for refunding purposes.
Section 10. Reporting requirements.
The State Treasurer shall determine and report to the
Secretary of the Budget by November of each year the amount of
money necessary for the payment of interest on outstanding
obligations and the principal of such obligations, if any, for
the following fiscal year and the times and amounts of such
payments.
Section 11. Registration of bonds.
The Auditor General shall prepare the necessary registry
books to be kept in the office of the duly authorized loan and
transfer agent of the Commonwealth for the registration of any
bonds of the Commonwealth at the request of the owner thereof
according to the terms and conditions of issue specified by the
issuing officials. All bonds which are issued without interest
coupons attached shall be registered in the registry books kept
by the duly authorized loan and transfer agent of the
Commonwealth.
Section 12. Voting requirements.
Whenever in this act any action is to be taken or decision
made by the issuing officials and the three officers shall not
be able to agree unanimously, the action or decision of the
Governor and either the Auditor General or State Treasurer shall
be binding and final.
Section 13. Appropriation.
(a) Appropriation to Governor.--The net proceeds, less the
costs and expenses of issuing such obligations, of the sale of
the $110,000,000 of obligations herein authorized are hereby
appropriated from the Disaster Relief Fund to the Governor for
allocation by the Secretary of the Budget as provided in section
3(d) to the Pennsylvania Emergency Management Agency for public
assistance to non-State and other eligible entities and to the
Pennsylvania Emergency Management Agency and to other State
agencies for public assistance costs incurred by those agencies
and to the Department of Environmental Protection or other State
agencies as deemed appropriate for hazard mitigation.
(b) Appropriation to State Treasurer.--There is hereby
appropriated to the State Treasurer from the fund as much money
as may be necessary for all costs and expenses in connection
with the issue of and sale and registration of the bonds and
notes in connection with this act and the payment of interest
arbitrage rebates on proceeds of such bonds and notes.
Section 14. State and local participation levels.
(a) Public assistance.--The required non-Federal
contribution of 25% necessary to secure Federal public
assistance funding, including costs for highways and bridges,
except State-designated highways and bridges, shall be divided
between the State and the affected local political subdivision
or nonprofit organization where applicable. The State share will
be 22%, and the political subdivision or nonprofit organization
share will be 3%.
(b) Additional public assistance.--The State contribution to
any political subdivision or nonprofit organization seeking
additional public assistance for projects qualifying under
section 3(d)(2)(i) shall be as follows:
(1) If the project is located in a county that was
declared as a disaster area by the Federal Government and the
project is not eligible for Federal funding or receives
funding at an inadequate level, the Commonwealth shall
contribute 22% of the amount not eligible for Federal
funding, and the political subdivision or nonprofit
organization shall contribute 78% of the amount not eligible
for Federal funding.
(2) If the project is located in a county that was not
declared as a disaster area by the Federal Government and the
project would have been eligible for Federal funding if
located in a county declared as a disaster area by the
Federal Government, the Commonwealth shall contribute 22% of
the cost of the project, and the political subdivision or
nonprofit organization shall contribute 78% of the cost of
the project.
(3) If the project is located in a county that was not
declared as a disaster area by the Federal Government and the
project would not have been eligible for Federal funding or
would have received funding at an inadequate level if located
in a county declared as a disaster area by the Federal
Government, the Commonwealth shall contribute 22% of the
amount not eligible for Federal funding, and the political
subdivision or nonprofit organization shall contribute 78% of
the amount not eligible for Federal funding.
(c) Local waiver.--The Commonwealth may reduce the share of
an affected political subdivision if the tax base of that
political subdivision was substantially reduced as a direct
result of the blizzard of January 1996 or the resulting flood
emergency or if payment of the local share exceeds 40% of the
most recently adopted annual budget of the political
subdivision. The Commonwealth may require the adoption of
appropriate flood control or storm water management plans as a
condition of the waiver if the adoption of the plan does not
present additional financial hardship.
(d) Definition.--As used in this act, the term "political
subdivision" means any county, city, borough, incorporated town,
township, school district, vocational school district, county
institution district or municipal authority.
Section 15. Legislative Disaster Oversight Committee.
(a) Establishment.--There is hereby created a special
legislative committee to be known as the Legislative Disaster
Oversight Committee which shall be composed of the following:
(1) The Majority Leader of the Senate.
(2) The Majority Leader of the House of Representatives.
(3) The Minority Leader of the Senate.
(4) The Minority Leader of the House of Representatives.
(5) The Executive Director of the Pennsylvania Emergency
Management Agency.
(b) Powers and duties.--The Legislative Disaster Oversight
Committee may recommend policies for implementation of this act
to the Pennsylvania Emergency Management Agency and may inquire
into delays and issues related to distribution of public
assistance and other grants authorized under this act.
Section 16. Constitutional construction.
The provisions of this act shall be severable and, if any of
the provisions thereof shall be held unconstitutional, such
decisions shall not affect the validity of any of the remaining
provisions of this act. It is hereby declared as the legislative
intent that this act would have been adopted had such
unconstitutional provisions not been included therein.
Section 17. Effective date.
This act shall take effect immediately.
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