1Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
2as amended, "An act relating to the finances of the State
3government; providing for the settlement, assessment,
4collection, and lien of taxes, bonus, and all other accounts
5due the Commonwealth, the collection and recovery of fees and
6other money or property due or belonging to the Commonwealth,
7or any agency thereof, including escheated property and the
8proceeds of its sale, the custody and disbursement or other
9disposition of funds and securities belonging to or in the
10possession of the Commonwealth, and the settlement of claims
11against the Commonwealth, the resettlement of accounts and
12appeals to the courts, refunds of moneys erroneously paid to
13the Commonwealth, auditing the accounts of the Commonwealth
14and all agencies thereof, of all public officers collecting
15moneys payable to the Commonwealth, or any agency thereof,
16and all receipts of appropriations from the Commonwealth,
17authorizing the Commonwealth to issue tax anticipation notes
18to defray current expenses, implementing the provisions of
19section 7(a) of Article VIII of the Constitution of
20Pennsylvania authorizing and restricting the incurring of
21certain debt and imposing penalties; affecting every
22department, board, commission, and officer of the State
23government, every political subdivision of the State, and
24certain officers of such subdivisions, every person,
25association, and corporation required to pay, assess, or
26collect taxes, or to make returns or reports under the laws
27imposing taxes for State purposes, or to pay license fees or
28other moneys to the Commonwealth, or any agency thereof,
29every State depository and every debtor or creditor of the
30Commonwealth," in Local Government Capital Project Loan Fund
31provisions, further providing for assistance to

1municipalities.

2The General Assembly of the Commonwealth of Pennsylvania
3hereby enacts as follows:

4Section 1. Section 1603-D of the act of April 9, 1929 
5(P.L.343, No.176), known as The Fiscal Code, amended or added 
6October 6, 1997 (P.L.387, No.46) and July 5, 2006 (P.L.296, 
7No.66), is amended to read:

8Section 1603-D. Assistance to Municipalities.--(a) The
9department is hereby authorized, upon application of a
10municipality, to make loans to the municipality for the
11following purposes and in the following amounts:

121. Purchasing equipment. The amount of a loan made for 
13purchasing equipment shall not exceed [twenty-five thousand 
14dollars ($25,000)] fifty thousand dollars ($50,000) for any 
15single piece of equipment or fifty per centum of the total cost 
16of the piece of equipment, whichever is less.

172. Purchasing, constructing, renovating or rehabilitating 
18facilities. The amount of a loan made for purchasing, 
19constructing, renovating or rehabilitating facilities shall not 
20exceed [fifty thousand dollars ($50,000)] one hundred thousand 
21dollars ($100,000) for any single facility or fifty per centum 
22of the total cost for purchasing, constructing, renovating or 
23rehabilitating the facility, whichever is less.

24[3. Temporary increase in loan limits. For the fiscal year
25commencing July 1, 2006, loans issued pursuant to paragraph 1
26shall not exceed fifty thousand dollars ($50,000) and issued
27pursuant to paragraph 2 shall not exceed one hundred thousand
28dollars ($100,000).]

29(b) Loans made by the department for the purchase of 
30equipment shall be for a period not to exceed the useful life of 

1the equipment and loans made for the purchase, construction, 
2renovation or rehabilitation of facilities shall be for a period 
3of not more than [ten] fifteen years. Loans shall be subject to 
4the payment of interest at two per centum per annum and shall be 
5subject to such security as shall be determined by the 
6department. The total amount of interest earned by the 
7investment or reinvestment of all or any part of the principal 
8of any loan shall be returned to the department and transferred 
9to the fund and shall not be credited as payment of principal or 
10interest on the loan. The minimum amount of any loan shall be 
11one thousand dollars ($1,000). The municipality shall comply 
12with the approval requirements of 53 Pa.C.S. Ch. 80 Subch. C 
13(relating to procedure for securing approval of electors).

14(c) Every application for a loan under this article shall be
15accompanied by a financial statement of the municipality and a
16financial plan to show how the loan will be repaid. Every
17application shall be accompanied by evidence sufficient to show
18that all costs, except the amount of the loan, will be met by
19assets or revenues of the municipality, grants or loans from
20other sources or in-kind contributions or services.

21(d) Loans under this article shall be used for purchasing
22equipment and for purchasing, constructing, renovating or
23rehabilitating facilities and shall not be used for operating
24expenses or for the refinancing or reduction of any debt or
25obligation incurred prior to the effective date of this article.

26(e) Loans made by the department shall be paid from the fund
27to municipalities in accordance with rules and regulations
28promulgated by the department.

29(f) All payments of interest on loans and the principal
30thereof shall be deposited by the department in the fund.

1Section 2. This act shall take effect in 60 days.