The provisions of this
article shall constitute an additional method of voting and all
provisions of this act shall be construed to be in full force
and effect unless inconsistent with the provisions of this
article.
(1122-A added July 11, 1980, P.L.600, No.128)
ARTICLE XI-B
VOTING APPARATUS BONDS
(Art. added Oct. 31, 2019, P.L.552, No.77)
Section 1101-B. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless
the context clearly indicates otherwise:
"Account." The County Voting Apparatus Reimbursement Account
established under section 1106-B.
"Authority." The Pennsylvania Economic Development Financing
Authority.
"Bond." Any type of revenue obligation, including a bond
or series of bonds, note, certificate or other instrument,
issued by the authority for the benefit of the department under
this article.
"Bond administrative expenses." Expenses incurred to
administer bonds as provided under the Financing Law, or as
otherwise necessary to ensure compliance with applicable Federal
or State law.
"Bond obligations." The principal of a bond and any premium
and interest payable on a bond, together with any amount owed
under a related credit agreement or a related resolution of the
authority authorizing a bond.
"Credit agreement." A loan agreement, a revolving credit
agreement, an agreement establishing a line of credit, a letter
of credit or another agreement that enhances the marketability,
security or creditworthiness of a bond.
"Department." The Department of State of the Commonwealth.
"Election security equipment." Information technology such
as intrusion detection sensors and other infrastructure deployed
to enhance the security of voting apparatus and election systems
by detecting and reporting hacking attempts and other election
security breaches.
"Electronic voting system." As defined in section 1101-A.
"Financing Law." The act of August 23, 1967 (P.L.251,
No.102), known as the Economic Development Financing Law.
"Voting apparatus." A kind or type of electronic voting
system that received the approval of the Secretary of the
Commonwealth under section 1105-A.
(1101-B added Oct. 31, 2019, P.L.552, No.77)
Section 1102-B. Bond issuance.
(a) Declaration of policy.--The General Assembly finds and
declares that funding the replacement of voting apparatuses,
including interest, through the authority, is in the best
interest of this Commonwealth.
(b) Authority.--Notwithstanding any other law, the following
shall apply:
(1) The department may be a project applicant under the
Financing Law and may apply to the authority for the funding
of the replacement of voting apparatuses.
(2) The authority may issue bonds under the Financing
Law, consistent with this article, to finance projects to
fund the replacement of county voting apparatuses or to
reimburse counties for their cost to purchase or enter into
capital leases for voting apparatuses.
(3) Participation of an industrial and commercial
development authority shall not be required to finance the
replacement of voting apparatuses.
(c) Debt or liability.--
(1) Bonds issued under this article shall not be a debt
or liability of the Commonwealth and shall not create or
constitute any indebtedness, liability or obligation of the
Commonwealth.
(2) Bond obligations and bond administrative expenses
shall be payable solely from revenues or money pledged or
available for repayment as authorized under this article.
This paragraph shall include the proceeds of any issuance
of bonds.
(3) Each bond shall contain on its face a statement
that:
(i) the authority is obligated to pay the principal
or interest on the bonds only from the revenues or money
pledged or available for repayment as authorized under
this article;
(ii) neither the Commonwealth nor a county is
obligated to pay the principal or interest; and
(iii) the full faith and credit of the Commonwealth
or any county is not pledged to the payment of the
principal of or the interest on the bonds.
(1102-B added Oct. 31, 2019, P.L.552, No.77)
Section 1103-B. Criteria for bond issuance.
(a) Determination.--If the department decertifies one or
more voting apparatuses that are in use in any county of this
Commonwealth, the department shall apply to the authority to
issue bonds for reimbursements to each county for the cost of
procuring new voting apparatuses.
(a.1) Issuance.--Bonds may be issued in one or more series,
and each series may finance reimbursement grants to one or more
counties.
(b) Terms.--
(1) The department, with the approval of the Office of
the Budget, shall specify in its application to the
authority:
(i) the maximum principal amount of the bonds for
each bond issue; and
(ii) the maximum term of the bonds consistent with
applicable law.
(2) The total principal amount for all bonds issued
under this article may not exceed $90,000,000.
(3) The term of the bonds issued under this article may
not exceed 10 years from the respective date of original
issuance.
(c) Expiration.--For the purpose of this article,
authorization to issue bonds, not including refunding bonds,
shall expire December 31, 2020.
(1103-B added Oct. 31, 2019, P.L.552, No.77)
Section 1104-B. Issuance of bonds, security and sources of
payments.
(a) Issuance.--The authority shall consider issuance of
bonds upon application by the department. Bonds issued under
this article shall be subject to the provisions of the Financing
Law, unless otherwise specified under this article.
(b) Service agreement authorized.--The authority and the
department may enter into an agreement or service agreement to
effectuate this article, including an agreement to secure bonds
issued for the purposes under section 1102-B(b), pursuant to
which the department shall agree to pay the bond obligations
and bond administrative expenses to the authority in each fiscal
year that the bonds or refunding bonds are outstanding in
amounts sufficient to timely pay in full the bond obligations,
bond administrative expenses and any other financing costs due
on the bonds issued for the purposes under section 1102-B(b).
The department's payment of the bond obligations, bond
administrative expenses and other financing costs due on the
bonds as service charges under an agreement or service agreement
shall be subject to and dependent upon the appropriation of
funds by the General Assembly to the department for payment of
the service charges. The service agreement may be amended or
supplemented by the authority and the department in connection
with the issuance of any series of bonds or refunding bonds
authorized under this section.
(c) Security.--Bond obligations and bond administrative
expenses may be secured, for the benefit of the holders of the
bonds and the obligees under credit agreements or the agreements
under subsection (b), by pledge of a security interest in and
first lien on the following:
(1) Money relating to the bonds held on deposit in any
other fund or account under an instrument or agreement
pertaining to the bonds, including bond reserves and interest
income on the money.
(2) The security provided under this subsection shall
not apply to money in any fund relating to arbitrage rebate
obligations.
(1104-B added Oct. 31, 2019, P.L.552, No.77)
Section 1105-B. Sale of bonds.
The authority shall offer the bonds for sale by means of a
public, competitive sale or by means of a negotiated sale based
on the authority's determination of which method will produce
the most benefit to counties and the Commonwealth.
(1105-B added Oct. 31, 2019, P.L.552, No.77)
Section 1106-B. Deposit of bond proceeds.
The net proceeds of bonds, other than refunding bonds,
exclusive of costs of issuance, reserves and any other financing
charges, shall be transferred by the authority to the State
Treasurer for deposit into a restricted account established in
the State Treasury and held solely for the purposes under
section 1102-B(b) to be known as the County Voting Apparatus
Reimbursement Account. The department shall pay out the bond
proceeds to the counties from the account in accordance with
this article.
(1106-B added Oct. 31, 2019, P.L.552, No.77)
Section 1107-B. Payment of bond-related obligations.
For each fiscal year in which bond obligations and bond
administrative expenses will be due, the authority shall notify
the department of the amount of bond obligations and the
estimated amount of bond administrative expenses in sufficient
time, as determined by the department, to permit the department
to request an appropriation sufficient to pay bond obligations
and bond administrative expenses that will be due and payable
in the following fiscal year. The authority's calculation of
the amount of bond obligations and bond administrative expenses
that will be due shall be subject to verification by the
department.
(1107-B added Oct. 31, 2019, P.L.552, No.77)
Section 1108-B. Commonwealth not to impair bond-related
obligations.
The Commonwealth pledges that it shall not do any of the
following:
(1) Limit or alter the rights and responsibilities of
the authority or the department under this article, including
the responsibility to:
(i) pay bond obligations and bond administrative
expenses; and
(ii) comply with any other instrument or agreement
pertaining to bonds.
(2) Alter or limit the service agreement under section
1104-B(b).
(3) Impair the rights and remedies of the holders of
bonds, until each bond issued at any time and the interest
on the bond are fully met and discharged.
(1108-B added Oct. 31, 2019, P.L.552, No.77)
Section 1109-B. (Reserved).
(1109-B added Oct. 31, 2019, P.L.552, No.77)
Section 1110-B. Personal liability.
The members, directors, officers and employees of the
department and the authority shall not be personally liable as
a result of good faith exercise of the rights and
responsibilities granted under this article.
(1110-B added Oct. 31, 2019, P.L.552, No.77)
Section 1111-B. Annual report.
No later than March 1 of the year following the first full
year in which bonds have been issued under this article and for
each year thereafter in which bond obligations existed in the
prior year, the department shall submit an annual report to the
chair and minority chair of the Appropriations Committee of
the Senate, the chair and minority chair of the Appropriations
Committee of the House of Representatives, the chair and
minority chair of the State Government Committee of the Senate
and the chair and minority chair of the State Government
Committee of the House of Representatives providing all data
available on bonds issued or existing in the prior year. The
report shall include existing and anticipated bond principal,
interest and administrative costs, revenue, repayments,
refinancing, overall benefits to counties and any other relevant
data, facts and statistics that the department believes
necessary in the content of the report.
(1111-B added Oct. 31, 2019, P.L.552, No.77)
Section 1112-B. Reimbursement of county voting apparatus
expenses.
(a) Application.--A county may apply to the department to
receive funding to replace the county's voting apparatuses or
to reimburse the county's cost to purchase or lease by capital
lease voting apparatuses. Each county shall submit an
application for funding on a form containing information and
documentation prescribed by the department no later than July
1, 2020.
(b) Documentation for prior purchase or lease.--If a county
seeks reimbursement of the county's cost to purchase or lease
by capital lease a voting apparatus that the county purchased
or leased before the date that the county submits its
application to the department, the county's application shall
include documentation prescribed by the department to
substantiate the county's cost to purchase or lease the voting
apparatus, including copies of fully executed voting apparatus
contracts, invoices and proof of payment to the vendor of the
voting apparatus.
(c) Documentation for subsequent purchase or lease.--If a
county seeks funding to purchase or lease by capital lease a
voting apparatus that the county will purchase or lease after
the date that the county submits its application to the
department, the county's application shall include documentation
prescribed by the department to substantiate the county's
estimate to purchase or lease the voting apparatus, including
copies of fully executed voting apparatus contracts, bids or
price quotes submitted to the county by voting apparatus vendors
and other price estimates or cost proposals.
(d) Review.--The department shall review each county
application on a rolling basis and shall either approve or deny
each county's application within 90 days of the date the
application is received by the department. A county may
supplement or amend submitted applications during the 90-day
review period in consultation with the department.
(e) Approval for prior purchase or lease.--If the department
approves a county's application submitted under subsection (b),
the department and the county shall enter into a written grant
agreement through which the department shall reimburse the
county at the amount determined under subsection (g).
(f) Approval for subsequent purchase or lease.--If the
department approves a county's application under subsection
(c), the department and the county shall enter into a written
grant agreement through which the department will provide
funding to reimburse the county's cost to purchase or lease a
voting apparatus at the amount determined under subsection (g).
The county shall hold the grant money in an account of the
county that is separate from each other county account. The
county shall deliver quarterly reports to the department of the
voting apparatus costs paid from the grant money in a form
prescribed by the department. The county shall return any
unspent grant money to the department within 30 days of the
expiration of the grant agreement.
(g) Payments.--
(1) A county shall only receive amounts under this
section to the extent that the department has bond proceeds
available in the account from which to make payments.
(2) Except as provided under paragraph (3), a county
which submitted an application approved under subsection (e)
or (f) shall receive 60% of the total amount submitted under
subsection (b) or (c) which may be reimbursed or paid.
(3) If the total amount submitted by all counties under
paragraph (2) exceeds the total amount available for
reimbursement or payment, a county shall receive a portion
of the amount available equal to the total amount submitted
by the county under subsection (b) or (c) which may be
reimbursed or paid, divided by the total amount submitted
by all counties under subsection (b) or (c) which may be
reimbursed or paid.
(4) If any bond proceeds remain after the department
has issued all reimbursements in accordance with paragraphs
(1), (2) and (3), the department may utilize the remaining
balance for grants for counties for the purchase and
distribution to the counties of election security equipment.
The department shall provide notice to each county no later
than 30 days prior to receiving applications for grants under
this paragraph.
(h) Certification.--A county shall only receive the
reimbursement or funding under this article after making a
certification to the department, the President pro tempore of
the Senate, the Speaker of the House of Representatives, the
Minority Leader of the Senate, the Minority Leader of the House
of Representatives, the chair and minority chair of the
Appropriations Committee of the Senate, the chair and minority
chair of the Appropriations Committee of the House of
Representatives, the chair and minority chair of the State
Government Committee of the Senate and the chair and minority
chair of the State Government Committee of the House of
Representatives that the county has completed a program under
25 Pa.C.S. § 1901(b)(1) (relating to removal of electors) and
mailed notices required under 25 Pa.C.S. § 1901(b)(3) within
the prior 12 months. The certification shall include information
on whether the county has undertaken a canvass under 25 Pa.C.S.
§ 1901(b)(2).
(i) Department application.--The department shall apply to
the authority for funding under section 1102-B only if the
department has approved county applications under this article
which total at least $50,000,000.
(1112-B added Oct. 31, 2019, P.L.552, No.77)
ARTICLE XII
Preparation For and Conduct of Primaries and
Elections§ 1122-AConstruction
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