THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL

Transcription

1 PRINTER'S NO THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No Session of 2002 INTRODUCED BY STEELMAN, GEORGE, BEBKO-JONES, BELFANTI, COY, DeWEESE, EACHUS, D. EVANS, FAIRCHILD, FREEMAN, GRUCELA, HARHAI, HORSEY, JOSEPHS, LaGROTTA, LESCOVITZ, LEVDANSKY, MAHER, MANN, MARKOSEK, McCALL, MELIO, MUNDY, PISTELLA, READSHAW, ROBERTS, RUBLEY, SAMUELSON, SANTONI, SCHRODER, SCRIMENTI, SOLOBAY, STABACK, STURLA, SURRA, THOMAS, TIGUE, TRAVAGLIO, TRELLO, VEON, VITALI, WALKO, WANSACZ, WOJNAROSKI, G. WRIGHT, YOUNGBLOOD, YUDICHAK AND M. COHEN, FEBRUARY 4, 2002 REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, FEBRUARY 4, 2002 AN ACT 1 Authorizing a referendum on the incurring of indebtedness in the 2 amount of $150,000,000 for certain purposes relating to 3 environmental stewardship; and establishing a restricted 4 receipt account within the Environmental Stewardship Fund and 5 the Environmental Stewardship Sinking Fund. 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 Environmental 10 Stewardship Referendum Act. 11 Section 2. Referendum. 12 (a) Question.--The question of incurring indebtedness of 13 $150,000,000 for the purpose of planning, acquisition, 14 development, rehabilitation and improvement of parks and 15 recreational facilities, natural areas and heritage sites, for

2 1 the purpose of acid mine drainage restoration, for the purpose 2 of watershed cleanup and conservation, for the purpose of 3 plugging abandoned and orphan oil and gas wells, for the purpose 4 of farmland preservation and for the purpose of improving water 5 and sewer infrastructure shall be submitted to the electors at 6 the next primary, municipal or general election following the 7 effective date of this act. 8 (b) Certification.--The Secretary of the Commonwealth shall 9 certify the form of the question under subsection (c) of the 10 county boards of elections. 11 (c) Form of question.--the question shall be in 12 substantially the following form: 13 Do you favor the incurring of indebtedness by the 14 Commonwealth of $150,000,000 to provide for the funding 15 of open space, natural areas, wildlife habitats, acid 16 mine drainage restoration, plugging orphan and abandoned 17 oil and gas wells, farmland preservation, improvements to 18 State parks and State forest facilities, water and sewer 19 infrastructure, greenways and trails, community parks and 20 recreation facilities, heritage parks and watershed 21 cleanup and conservation? 22 (d) Election.--The election shall be conducted at the next 23 occurring primary, general or municipal election following the 24 effective date of this act, in accordance with the act of June 25 3, 1937 (P.L.1333, No.320), known as the Pennsylvania Election 26 Code, except that the time limits for advertisement of notice of 27 the election shall be waived as to the question if such time 28 limits cannot be satisfied. 29 (e) Proceeds (1) The proceeds of borrowing shall be deposited in a 20020H2334B

3 1 restricted receipt account within the Environmental 2 Stewardship Fund, which account is hereby established, and 3 are hereby appropriated on a continuing basis as follows: 4 (i) 24.1% to the Department of Conservation and 5 Natural Resources; 6 (ii) 37.4% to the Department of Environmental 7 Protection; 8 (iii) 14.8% to the Department of Agriculture; and 9 (iv) 23.7% to the Pennsylvania Infrastructure 10 Investment Authority 11 to be used in accordance with 27 Pa.C.S (relating to 12 agencies). 13 (2) The moneys of the restricted receipt account shall 14 not be subject to 27 Pa.C.S. 6104(c) (relating to fund). 15 Section 3. Commonwealth indebtedness. 16 (a) Borrowing authorized (1) Subject to the approval of the electorate of the 18 referendum set forth in section 2 and under the provisions of 19 section 7(a)(3) of Article VIII of the Constitution of 20 Pennsylvania (relating to Commonwealth indebtedness), the 21 issuing officials are authorized and directed to borrow over 22 a three-year period, on the credit of the Commonwealth, money 23 not exceeding in the aggregate the sum of $150,000,000, not 24 including money borrowed to refund outstanding bonds, notes 25 or replacement notes, as may be found necessary to carry out 26 the purposes of this act. 27 (2) As evidence of the indebtedness authorized in this 28 act, general obligation bonds of the Commonwealth shall be 29 issued, from time to time, to provide moneys necessary to 30 carry out the purposes of this act for such total amounts, in 20020H2334B

4 1 such form, in such denominations and subject to such terms 2 and conditions of issue, redemption and maturity, rate of 3 interest and time of payment of interest as the issuing 4 officials direct, except that the latest stated maturity date 5 shall not exceed 30 years from the date of the first 6 obligation issued to evidence the debt. 7 (3) All bonds and notes issued under the authority of 8 this act shall bear facsimile signatures of the issuing 9 official and a facsimile of the great seal of the 10 Commonwealth and shall be countersigned by a duly authorized 11 officer of a duly authorized loan and transfer agent of the 12 Commonwealth. 13 (4) All bonds and notes issued in accordance with the 14 provisions of this section shall be direct obligations of the 15 Commonwealth, and the full faith and credit of the 16 Commonwealth are hereby pledged for the payment of the 17 interest thereon, as it becomes due, and the payment of the 18 principal at maturity. The principal of and interest on the 19 bonds and notes shall be payable in lawful money of the 20 United States. 21 (5) All bonds and notes issued under the provisions of 22 this section shall be exempt from taxation for State and 23 local purposes except as may be provided under Article XVI of 24 the act of March 4, 1971 (P.L.6, No.2), known as the Tax 25 Reform Code of (6) The bonds may be issued as coupon bonds or 27 registered as to both principal and interest as the issuing 28 officials may determine. If interest coupons are attached, 29 they shall contain the facsimile signature of the State 30 Treasurer H2334B

5 1 (7) The issuing officials shall provide for the 2 amortization of the bonds in substantial and regular amounts 3 over the term of the debt so that the bonds of each issue 4 allocated to the programs to be funded from the bond issue 5 shall mature within a period not to exceed the appropriate 6 amortization period for each program as specified by the 7 issuing officials but in no case in excess of 30 years. The 8 first retirement of principal shall be stated to mature prior 9 to the expiration of a period of time equal to one-tenth of 10 the time from the date of the first obligation issued to 11 evidence the debt to the date of the expiration of the term 12 of the debt. Retirements of principal shall be regular and 13 substantial if made in annual or semiannual amounts whether 14 by stated serial maturities or by mandatory sinking fund 15 retirements. 16 (8) The issuing officials may provide by resolution, for 17 the issuance of refunding bonds for the purpose of refunding 18 any debt issued under the provisions of this act and then 19 outstanding, either by voluntary exchange with the holders of 20 the outstanding debt or to provide funds to redeem and retire 21 the outstanding debt with accrued interest, any premium 22 payable thereon and the costs of issuance and retirement of 23 the debt, at maturity or at any call date. The issuance of 24 the refunding bonds, the maturities and other details 25 thereof, the rights of the holders thereof and the duties of 26 the issuing officials in respect thereto shall be governed by 27 the provisions of this section, insofar as they are 28 applicable. Refunding bonds, which are not subject to the 29 aggregate limitation of $150,000,000 of debt to be issued 30 pursuant to this act, may be issued by the issuing officials 20020H2334B

6 1 to refund debt originally issued or to refund bonds 2 previously issued for refunding purposes. 3 (9) Whenever any action is to be taken or decision made 4 by the Governor, the Auditor General and the State Treasurer 5 acting as issuing officials and the three officers are not 6 able unanimously to agree, the action or decision of the 7 Governor and either the Auditor General or the State 8 Treasurer shall be binding and final. 9 (10) Issuing officials shall mean the Governor, the 10 Auditor General and the State Treasurer. 11 (b) Sale of bonds (1) Whenever bonds are issued, they shall be offered for 13 sale at not less than 98% of the principal amount and accrued 14 interest and shall be sold by the issuing officials to the 15 highest and best bidder or bidders after due public 16 advertisement on the terms and conditions and upon such open 17 competitive bidding as the issuing officials shall direct. 18 The manner and character of the advertisement and the time of 19 advertising shall be prescribed by the issuing officials. No 20 commission shall be allowed or paid for the sale of any bonds 21 issued under the authority of this act. 22 (2) Any portion of any bond issue so offered and not 23 sold or subscribed for at public sale may be disposed of by 24 private sale by the issuing officials in such manner and at 25 such prices, not less than 98% of the principal amount and 26 accrued interest, as the Governor shall direct. No commission 27 shall be allowed or paid for the sale of any bonds issued 28 under the authority of this act. 29 (3) When bonds are issued from time to time, the bonds 30 of each issue shall constitute a separate series to be 20020H2334B

7 1 designated by the issuing officials or may be combined for 2 sale as one series with other general obligation bonds of the 3 Commonwealth. 4 (4) Until permanent bonds can be prepared, the issuing 5 officials may in their discretion issue, in lieu of permanent 6 bonds, temporary bonds in such form and with such privileges 7 as to registration and exchange for permanent bonds as may be 8 determined by the issuing officials. 9 (5) The proceeds realized from the sale of bonds and 10 notes, except refunding bonds and replacement notes, under 11 the provisions of this act shall be paid into the restricted 12 receipt account within the Environmental Stewardship Fund, as 13 established in section (2)(e), in the State Treasury and are 14 specifically dedicated to the purposes of this act. The 15 proceeds of the sale of refunding bonds and replacement notes 16 shall be paid to the State Treasurer and applied to the 17 payment of principal, the accrued interest and premium, if 18 any, and the cost of redemption of the bonds and notes for 19 which the obligations shall have been issued. 20 (6) Pending their application for the purposes 21 authorized, moneys held or deposited by the State Treasurer 22 may be invested or reinvested as are other funds in the 23 custody of the State Treasurer in the manner provided by law. 24 All earnings received from the investment or deposit of the 25 funds shall be paid into the State Treasury to the credit of 26 the restricted receipt account. 27 (7) The Auditor General shall prepare the necessary 28 registry book to be kept in the office of the duly authorized 29 loan and transfer agent of the Commonwealth for the 30 registration of any bonds, at the request of owners thereof, 20020H2334B

8 1 according to the terms and conditions of issue directed by 2 the issuing officials. 3 (8) There is hereby appropriated to the State Treasurer 4 from the restricted receipt account as much money as may be 5 necessary for all costs and expenses in connection with the 6 issue of and sale and registration of the bonds and notes in 7 connection with this act and the payment of interest 8 arbitrage rebates or proceeds of such bonds and notes. 9 (c) Temporary financing authorization (1) Pending the issuance of bonds of the Commonwealth as 11 authorized, the issuing officials are hereby authorized, in 12 accordance with the provisions of this act and on the credit 13 of the Commonwealth, to make temporary borrowings not to 14 exceed one year in anticipation to the issue of bonds in 15 order to provide funds in such amounts as may, from time to 16 time, be deemed advisable prior to the issue of bonds. In 17 order to provide for and in connection with such temporary 18 borrowings, the issuing officials may, in the name and on 19 behalf of the Commonwealth, enter into any purchase, loan or 20 credit agreement, or agreements with any banks or trust 21 companies or other lending institutions, investment banking 22 firms or persons in the United States having power to enter 23 into the same, which agreements may contain provisions not 24 inconsistent with the provisions of this act as may be 25 authorized by the issuing officials. 26 (2) All temporary borrowings made under the 27 authorization of this section shall be evidenced by notes of 28 the Commonwealth, which shall be issued, from time to time, 29 for such amounts not exceeding in the aggregate the 30 applicable statutory and constitutional debt limitation, in 20020H2334B

9 1 such form and in such denominations and subject to terms and 2 conditions of sale and issue, prepayment or redemption and 3 maturity, rate of rates of interest and time of payment of 4 interest as the issuing officials shall authorize and direct 5 and in accordance with this act. Such authorization and 6 direction may provide for the subsequent issuance of 7 replacement notes to refund outstanding notes or replacement 8 notes, which replacement notes shall, upon issuance thereof, 9 evidence such borrowing, and may specify such other terms and 10 conditions with respect to the notes and replacement notes 11 thereby authorized for issuance as the issuing officials may 12 determine and direct. 13 (3) When the authorization and direction of the issuing 14 officials provide for the issuance of replacement notes, the 15 issuing officials are hereby authorized in the name and on 16 behalf of the Commonwealth to issue, enter into or authorize 17 and direct the State Treasurer to enter into agreements with 18 any banks, trust companies, investment banking firms or other 19 institutions or persons in the United States having the power 20 to enter the same: 21 (i) To purchase or underwrite an issue or series of 22 issues or notes. 23 (ii) To credit, to enter into any purchase, loan or 24 credit agreements, to draw moneys pursuant to any such 25 agreements on the terms and conditions set forth therein 26 and to issue notes as evidence of borrowings made under 27 any such agreements. 28 (iii) To appoint as issuing and paying agent or 29 agents with respect to notes. 30 (iv) To do all acts as may be necessary or 20020H2334B

10 1 appropriate to provide for the payment, when due, of the 2 interest on and the principal of such notes. 3 Such agreements may provide for the compensation of any 4 purchasers or underwriters of notes or replacement notes by 5 discounting the purchase price of the notes or by payment of 6 a fixed fee or commission at the time of issuance thereof, 7 and all other costs and expenses, including fees for 8 agreements related to the notes, issuing and paying agent 9 costs and costs and expenses of issuance, may be paid from 10 the proceeds of the notes. 11 (4) When the authorization and direction of the issuing 12 officials provide for the issuance of replacement notes, the 13 State Treasurer shall, at or prior to the time of delivery of 14 these notes or replacement notes, determine the principal 15 amounts, dates of issue, interest rate or rates, or 16 procedures for establishing such rates from time to time, 17 rates of discount, denominations and all other terms and 18 conditions relating to the issuance and shall perform all 19 acts and things necessary to pay or cause to be paid, when 20 due, all principal of and interest on the notes being 21 refunded by replacement notes and to assure that the same may 22 draw upon any moneys available for that purpose pursuant to 23 any purchase, loan or credit agreements established with 24 respect thereto, all subject to the authorization and 25 direction of the issuing officials. 26 (5) Outstanding notes evidencing the borrowings may be 27 funded and retired by the issuance and sale of the bonds of 28 the Commonwealth as authorized by this act. The refunding 29 bonds must be issued and sold not later than a date one year 30 after the date of issuance of the first notes evidencing such 20020H2334B

11 1 borrowings to the extent that payment of such notes has not 2 otherwise been made or provided for by sources other than 3 proceeds of replacement notes. 4 (6) The proceeds of all temporary borrowing shall be 5 paid to the State Treasurer to be held and disposed of in 6 accordance with this act. 7 (d) Debt retirement.-- 8 (1) All bonds issued under the authority of this act 9 shall be redeemed at maturity, together with all interest 10 due, from time to time, on the bonds, and these principal and 11 interest payments shall be paid from the Environmental 12 Stewardship Sinking Fund which is hereby established. For the 13 specific purpose of redeeming the bonds at maturity and 14 paying all interest thereon in accordance with the 15 information received from the Governor, the General Assembly 16 shall appropriate moneys to the fund for the payment of 17 interest on the bonds and notes and the principal thereof at 18 maturity. All moneys paid into the fund and all of the moneys 19 not necessary to pay accruing interest shall be invested by 20 the State Treasurer in such securities as are provided by law 21 for the investment of the sinking funds of the Commonwealth. 22 (2) The State Treasurer shall determine and report to 23 the Secretary of the Budget by November 1 of each year, the 24 amount of money necessary for the payment of interest on 25 outstanding obligations and the principal of the obligations, 26 if any, for the following fiscal year and the times and 27 amounts of the payments. It shall be the duty of the Governor 28 to include in every budget submitted to the General Assembly 29 full information relating to the issuance of bonds and notes 30 under this act and the status of the fund for the payment of 20020H2334B

12 1 interest on the bonds and notes and the principal thereof at 2 maturity. 3 (3) The General Assembly shall appropriate an amount 4 equal to the sums that may be necessary to meet repayment 5 obligations for principal and interest for deposit into the 6 fund. 7 (e) Annual limitation on debt obligations issued.--bonds and 8 notes, not including refunding bonds or replacement notes, as 9 authorized in this act, shall not be issued in the aggregate 10 principal amount of more than $150,000,000 during any one State 11 fiscal year. 12 (f) Expiration.--Authorization to issue bonds and notes, not 13 including refunding bonds and replacement notes, for the 14 purposes of this act shall expire three years from the effective 15 date of this act. 16 Section 4. Effective date. 17 This act shall take effect immediately. A28L27DMS/20020H2334B