Bill Text: PA HB1117 | 2009-2010 | Regular Session | Introduced

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Bill Title: In Commonwealth Financing Authority, further providing for indebtedness; and establishing the Energy Independence Bond Guarantee Program.

Spectrum: Strong Partisan Bill (Republican 17-1)

Status: (Introduced - Dead) 2009-03-25 - Referred to FINANCE [HB1117 Detail]

Download: Pennsylvania-2009-HB1117-Introduced.html

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PRINTER'S NO. 1313
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1117 Session of2009
INTRODUCED BY PETRI, BARRAR, CLYMER, CUTLER, GEIST, GINGRICH, HESS, MOUL, QUINN, REICHLEY, SCAVELLO, SIPTROTH, J. TAYLOR AND WATSON, MARCH 25, 2009
REFERRED TO COMMITTEE ON FINANCE, MARCH 25, 2009
AN ACT
Amending Title 64 (Public Authorities and Quasi-Public
Corporations) of the Pennsylvania Consolidated Statutes, in
Commonwealth Financing Authority, further providing for
indebtedness; and establishing the Energy Independence Bond
Guarantee Program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1543(b) and (d) of Title 64 of the
Pennsylvania Consolidated Statutes are amended to read:
§ 1543. Indebtedness.
* * *
(b) Program limitations.--Indebtedness incurred by the
authority under subsection (a) shall not, in aggregate, exceed
any of the following:
(1) $300,000,000 for the program established in section
1551 (relating to Business in Our Sites Program).
(2) $150,000,000 for the program established in section
1552 (relating to First Industries Program).
(3) $60,000,000 for the program established in section
1557 (relating to New Pennsylvania Venture Capital Investment
Program).
(4) $150,000,000 for the program established in section
1555 (relating to Building Pennsylvania Program).
(5) $75,000,000 for the program established in 12
Pa.C.S. Ch. 29.
(6) $250,000,000 for the program established in section
1554 (relating to New Pennsylvania Venture Guarantee
Program).
(7) $100,000,000 for the program established in section
1556 (relating to Tax Increment Financing Guarantee Program).
(8) $50,000,000 for the program established in section
1553 (relating to Second Stage Loan Program).
(9) $1,000,000,000 for the program established in
section 1559 (relating to Energy Independence Bond Guarantee
Program).
* * *
(d) Exception.--Subsection (c) shall not apply to the
aggregate amount of indebtedness incurred by the authority,
including through the issuance of bonds, for the following
programs:
(1) The program established in section 1553.
(2) The program established in section 1554.
(3) The program established in section 1556.
(4) The program established in section 1559.
* * *
Section 2. Title 64 is amended by adding a section to read:
§ 1559. Energy Independence Bond Guarantee Program.
(a) Establishment.--There is established a program to be
known as the Energy Independence Bond Guarantee Program. The
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program shall guarantee the payment of energy independence bonds
issued by public utilities to the public, provided that the
public utilities agree to certain requirements specified in this
section and by the authority.
(b) Guarantee applications.--A public utility may submit an
application to the authority requesting a guarantee of payment
for energy independence bonds issued by the public utility to
the public. The application shall be on a form required by the
board and shall include or demonstrate all of the following:
(1) The applicant's name and address.
(2) The resumes of the individuals responsible for the
infrastructure development project decisions of the
applicant.
(3) A history of the applicant's infrastructure
development.
(4) The location of all infrastructure development
projects intended to be financed in whole or in part by
proceeds from energy independence bonds issued by the
applicant.
(5) That the revenues to be realized from the
infrastructure development projects will be sufficient to
offset the amount of debt service to be paid on the energy
independence bonds.
(6) The amount of the guarantee sought.
(7) A listing of banks with which the applicant intends
to enter into an agreement or has already entered into an
agreement for selling the energy independence bonds of the
applicant to the public.
(8) A statement of the fees or other payment proposed to
be paid to the authority by the applicant as consideration
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for the issuance of a guarantee.
(9) Any other information required by the board.
(c) Application review.--The board shall review the
application to determine all of the following:
(1) That the applicant intends to issue energy
independence bonds meeting the requirements of this section.
(2) That the applicant will provide the board with its
annual financial statements, audited by a nationally
recognized independent certified public accountant, for the
duration of the guarantee. Financial statements shall be
prepared in accordance with generally accepted accounting
principles.
(3) That the board will have the ability to determine
that the subject of a proposed infrastructure development
project using proceeds from the energy independence bonds is
acceptable to the board prior to the applicant expending the
proceeds.
(4) That the applicant has complied with all other
requirements established by the board.
(d) Approval of guarantee.--Upon being satisfied that all
requirements have been met, the board may approve the
application, and, if approved, the authority shall execute a
guarantee agreement in favor of the applicant. In addition to
any other terms and conditions required by the board, the
guarantee agreement shall provide for all of the following:
(1) Each energy independence bond shall have a face
value of $100 and shall state on its face that repayment is
guaranteed by the authority.
(2) The energy independence bonds shall be sold by the
applicant at its offices and at financial institutions in
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this Commonwealth that have entered into an agreement with
the applicant for that purpose, which agreement provides that
the financial institution may not receive more than 1% of the
proceeds from each energy independence bond sold.
(3) The applicant shall provide the authority with the
right to inspect the infrastructure development projects
supported by the proceeds from the energy independence bonds.
(4) The applicant shall not permit any work on the
infrastructure development projects to be conducted outside
this Commonwealth and shall only use materials produced in
the United States unless the authority grants a waiver
therefrom in writing.
(5) The procedure under which the holder of an energy
independence bond may submit a claim for payment under the
guarantee agreement in the event that the applicant is unable
to do so.
(6) A provision that the guarantee will cover the face
amount of the energy independence bond.
(7) A procedure and schedule for the periodic
reconciliation of amounts payable under the guarantee.
(8) A prohibition against the transfer of the benefits
of the guarantee to another person without the prior approval
of the board.
(9) If the authority makes payment on a claim submitted
by the holder of an energy independence bond, the authority
may assume all rights and privileges previously belonging to
the bondholder and may renegotiate the terms of the repayment
of the debt guaranteed by the authority under terms as the
authority deems appropriate.
(e) Limitations.--
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(1) The liability of the authority for any guarantee
approved under this section shall be limited to the approved
amount of that guarantee.
(2) The board may approve guarantees under this section
not to exceed $1,000,000,000 in the aggregate for public
utilities. No public utility shall receive more than
$300,000,000 in guarantees under this section.
(3) Applications for guarantees may be accepted until
July 1, 2010, or until the aggregate of approved guarantees
equals $1,000,000,000, whichever occurs first.
(4) No individual may purchase more than ten energy
independence bonds issued by any public utility.
Section 3. This act shall take effect in 60 days.
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