72 Pa. Stat. § 3919.302

Current through P.A. Acts 2023-32

Section 3919.302 - Definitions

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Acquisition cost." The cost of acquiring:

(1) buildings;

(2) structures;

(3) facilities;

(4) property, real, personal or mixed, tangible or intangible; or

(5) any other interest; necessary or desirable in connection with a capital project, whether the acquisition be by purchase or by condemnation, including the amount of an award or final judgment in a proceeding to acquire by condemnation lands, rights-of-way, rights-of-slope, property rights, franchises, easements or other interests as deemed necessary or convenient in connection with the acquisition or construction of a project, and costs of options and partial payments on and under options.

"Applicant." A person that is seeking funding for a redevelopment assistance capital project that has been listed in a capital project itemization bill and that is one of the following:

(1) A redevelopment authority.

(2) An industrial development authority.

(3) A general purpose unit of local government.

(4) A local development district that has an agreement with a general purpose unit of local government under which the unit assumes ultimate responsibility for debt incurred to obtain the non-State financial participation.

(5) A public authority established pursuant to the laws of this Commonwealth.

(6) An industrial development agency:

(i) which has been certified as an industrial development agency by the Pennsylvania Industrial Development Authority Board under the act of May 17, 1956 (1955 P.L.1609, No.537), known as the Pennsylvania Industrial Development Authority Act; and

(ii) which is itself or which is acting through a wholly owned subsidiary that is exempt from Federal taxation under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)).

"Capital project." A flood control, highway, public improvement, redevelopment assistance capital or transportation assistance project which is financed by debt or by other funds and which meets all of the following:

(1) Is an undertaking to construct, repair, renovate, improve, equip, furnish or acquire any:

(i) building, structure, facility, infrastructure or physical public betterment or improvement;

(ii) land or rights in land; or

(iii) furnishings, machinery, apparatus or equipment for a building, structure, facility or physical public betterment or improvement.

(2) Is itemized in a capital project itemization bill as a capital project.

(3) Has an estimated useful life in excess of five years.

(4) Has an estimated financial cost in excess of $100,000. This paragraph does not apply to original equipment or furnishings for previously authorized public improvement projects.

"Commonwealth agency or authority." Excludes an agency or authority organized by action of a political subdivision.

"Community asset project." A project which provides significant benefit or improvement to a community. The term includes a cultural, recreational and historical project and any other project of civic significance.

"Community college projects." Projects at an institution now or hereafter created pursuant to Article XIX-A of the act of March 10, 1949 (P.L. 30, No. 14), known as the Public School Code of 1949, or the act of August 24, 1963 (P.L. 1132, No. 484), known as the Community College Act of 1963.

"Construction cost." Obligations incurred:

(1) for labor and to contractors, builders and materialmen in connection with the construction, fabrication or assembly of a capital project;

(2) for machinery and equipment required for construction under paragraph (1);

(3) for the restoration of property damaged or destroyed in connection with construction under paragraph (1); and

(4) for the payment of damages incurred by others incident to or consequent upon construction under paragraph (1) which the Commonwealth or its agency or authority is under legal obligation to pay or desires to pay in settlement of a disputed claim of liability.

"Debt." The issued and outstanding obligations of the Commonwealth incurred without a vote of the electorate or incurred with such vote under a law making such debt subject to the provisions of section 7(a) (4) of Article VIII of the Constitution of Pennsylvania. The term includes obligations of Commonwealth agencies and authorities to the extent that such obligations are to be repaid from lease rentals or other charges payable directly or indirectly from revenues of the Commonwealth. The term does not include:

(1) that portion of debt which is to be repaid from charges made to the public for the use of the capital projects financed, as such portion of debt may be determined by the Auditor General;

(2) obligations to be repaid from lease rentals or other charges payable by a school district or other local taxing authority; or

(3) obligations to be repaid by agencies or authorities created for the joint benefit of the Commonwealth and one or more other state governments.

"Financial cost." Acquisition cost and construction cost, where applicable, and an allocated portion of all of the following:

(1) Fees, expenses and costs of issuing obligations the proceeds of which are used to finance the project.

(2) Fees, expenses and costs of issuing and selling notes or replacement notes issued under this chapter.

(3) Establishing and maintaining any purchase, loan or credit agreements in connection with an issue or series of issues of notes, and the fees and expenses of any fiscal or loan and transfer agent and bond counsel incurred in connection with the issue of the obligations.

(4) Premiums on insurance in connection with a project during construction.

(5) Taxes and other municipal or governmental charges lawfully levied or assessed during construction.

(6) Fees and expenses of architects, engineers and other professionals for:

(i) making preliminary studies, reports or estimates of costs;

(ii) preparing plans and specifications and inspecting and reviewing the progress of construction; and

(iii) obtaining abstracts of title, title insurance or title opinions.

(7) Costs and expenses of preliminary investigations, preplanning, surveys and reports to determine the proper scope, feasibility and probable costs of capital projects to be included in future capital budgets.

(8) Costs of administration, including the salaries and expenses of administrators, reviewing architects and engineers, construction inspectors, accountants and legal counsel of the Commonwealth and its agencies or authorities, incurred for the proper planning and supervision of the capital projects program.

"Flood control projects." Projects of the type which the Water and Power Resources Board is authorized to construct, improve, equip, maintain, acquire or operate under the provisions of the act of August 7, 1936 (1st Sp.Sess., P.L. 106, No. 46), referred to as the Flood Control Law.

"Fund." Any fund other than a fund, or an account in a fund, established by this chapter.

"Funding bonds." General obligation bonds used to provide funds for and towards the payment of outstanding notes or to refund other outstanding bonds prior to or at or after the stated maturity date of the bonds being refunded or of the notes being funded.

"Highway projects." Projects of a type which the Department of Transportation is authorized to construct, improve, equip, maintain, acquire or operate.

"Hospital." As defined in section 802.1 of the act of July 19, 1979 (P.L. 130, No. 48) , known as the Health Care Facilities Act.

"Issuing officials." The Governor, the Auditor General and the State Treasurer.

"Net debt."

(1) The aggregate principal amount of all debt; plus

(2) the amount of any past due and unpaid interest on that debt; minus

(3) all funds held exclusively for the payment of that principal and past due interest.

Neither accrued but not yet past due interest nor funds held for the payment of the interest next falling due, up to the amount of such interest, shall be included in such computations.

"Notes." Temporary obligations and replacement notes issued by the Commonwealth pursuant to this chapter in anticipation of bonds.

"Obligations." Notes or bonds of the Commonwealth, its agencies or authorities, issued pursuant to any debt authorizing act.

"Office." The Governor's Office of the Budget.

"Public improvement projects." Projects of a type which the General State Authority is authorized to construct, improve, equip, furnish, maintain, acquire or operate under the provisions of the act of March 31, 1949 (P.L. 372, No. 34), known as The General State Authority Act of one thousand nine hundred forty-nine, and projects which the Department of General Services is authorized to construct, improve, equip, furnish, maintain, acquire or operate, including community college projects.

"Redevelopment assistance capital project." The design and construction of a project which meets all of the following:

(1) Is a project, including infrastructure associated with the project. A project does not include highways, bridges, waste disposal facilities, sewage facilities or water facilities. This paragraph includes:

(i) Storm water, water or sewer infrastructure, or tunnels, bridges or roads, when associated with a project that is part of an economic development project.

(ii) Hospital facilities and capital improvements for hospital facilities.

(2) Is a project which will generate substantial increases in or maintain current levels of employment, tax revenues or other measures of economic activity. This paragraph includes :

(i) a community asset project; and

(ii) a housing project that will support and generate economic activity .

(3) Is a project that has a regional or multijurisdictional impact or, in the case of housing, is part of a community revitalization plan.

(4) Is eligible for tax-exempt bond funding under existing Federal law and regulations.

(5) Has at least a 50% non-State financial participation documented at the time of application, including a portion of any funds reserved for future physical maintenance and operation of the project:

(i) at least half of which is secured funding;

(ii) toward which the only noncash non-State financial participation permitted is land or fixed assets which have a substantial useful life and are directly related to the project;

(iii) toward which State funds from other programs may not be used; and

(iv) toward which funds from Federal sources may be used.

(6) Has a total project cost of at least $1,000,000.

(7)[Reserved.]

"Replacement notes." Notes:

(1) the net proceeds of which are used to pay principal, accrued interest and premium of previously issued notes or replacement notes; and

(2) which evidence the same temporary borrowing of the Commonwealth as the notes or replacement notes replaced.

"Secretary." The Secretary of the Budget.

"Tax revenues." All revenues from Commonwealth imposed taxes, regardless of the fund to which they are deposited, including revenues from motor vehicle licenses, which are declared to be taxes for purposes of this chapter. The term does not include revenues from any other licenses or from interest, fees, fines or penalties.

"Transportation assistance projects." Projects of a type which the Department of Transportation is authorized to construct, improve, equip, furnish, maintain, acquire or operate under 74 Pa.C.S. Pt. II (relating to public transportation) and capital projects which the Department of Transportation is authorized to construct, improve, equip or furnish under the provisions of the act of February 11, 1976 (P.L. 14, No. 10) , known as the Pennsylvania Rural and Intercity Common Carrier Surface Transportation Assistance Act, including the acquisition of property authorized in those statutes.

72 P.S. § 3919.302

Amended by P.L. 648 2013 No. 77, § 1, eff. 10/25/2013.

1999 , Feb. 9, P.L. 1, No. 1, § 302, imd. effective. Amended 2002, Oct. 28, P.L. 889, No. 130, §1, imd. effective; 2004, July 4, P.L. 516, No. 67, §1, imd. effective; 2005 , Dec. 22, P.L. 454, No. 87, § 1, imd. effective.