PRINTER'S NO. 132
No. 135 Session of 1991
INTRODUCED BY KUKOVICH, McNALLY, KOSINSKI, MAIALE, ITKIN,
HECKLER, VROON, VEON, CARONE, COHEN, MIHALICH, HERMAN,
PRESTON, PESCI, MELIO, TRELLO, COLAIZZO, GIGLIOTTI, DALEY,
LAUGHLIN, FREEMAN, RITTER, STEELMAN, BLAUM, LESCOVITZ,
BELFANTI, KASUNIC, STURLA, BILLOW, CAPPABIANCA, LEVDANSKY,
PISTELLA, VAN HORNE, JOSEPHS, LaGROTTA, RAYMOND AND HALUSKA,
JANUARY 29, 1991
REFERRED TO COMMITTEE ON LABOR RELATIONS, JANUARY 29, 1991
AN ACT
1 Creating the Pennsylvania Economic Adjustment Board; providing
2 for the development and implementation of a planning process
3 designed to reduce the impact of unstable or declining
4 industry; providing for the establishment of local economic
5 adjustment committees to be monitored by the board; and
6 making an appropriation.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Short title.
10 This act shall be known and may be cited as the Pennsylvania
11 Economic Adjustment Act.
12 Section 2. Legislative purpose.
13 It is the finding of the General Assembly that many
14 communities in this Commonwealth are dependent on employment
15 provided by economic facilities which may represent declining or
16 unstable sectors within the industrial economy. Industrial
17 retention is an important component of economic stability and
1 development. The loss of the industrial base in this
2 Commonwealth and the skilled jobs it provides results in severe
3 social and economic hardships to the entire community in the
4 form of strains on social support systems and a weakened tax
5 base that may be inadequate to finance those services and the
6 maintenance of the infrastructure. It is essential for the
7 Commonwealth to address this problem in a unified manner. To
8 accomplish this and promote the general welfare of the people of
9 this Commonwealth, the development and implementation of an
10 economic adjustment strategy is needed. Such a strategy should
11 attempt to find new and productive uses for workers and
12 facilities which match or improve the stability, level of
13 employment, wage and benefit levels, skills and ripple impact of
14 these facilities at their operational peak.
15 Section 3. Definitions.
16 The following words and phrases when used in this act shall
17 have the meanings given to them in this section unless the
18 context clearly indicates otherwise:
19 "Board." The Pennsylvania Economic Adjustment Board
20 established by this act.
21 "Committee." The Economic Adjustment Committee established
22 in section 6.
23 "Department." The Department of Commerce of the
24 Commonwealth.
25 "Economic adjustment." Industrial alternative-use planning
26 designed to facilitate new or related product development and
27 create jobs in declining facilities consistent with existing
28 skills, and wage and benefit levels to prevent adverse community
29 ripple impact.
30 "Governing body." The legislative body of a political
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1 subdivision.
2 "Local development agency." A political subdivision; an
3 industrial or commercial authority organized under, or
4 industrial development company as certified by the department
5 under, the act of August 23, 1967 (P.L.251, No.102), known as
6 the Industrial and Commercial Development Authority Law; a
7 council of government organization or a multimunicipal agency
8 organization established under the act of July 12, 1972
9 (P.L.762, No.180), referred to as the Intergovernmental
10 Cooperation Law; a municipal authority organization created
11 under the act of May 2, 1945 (P.L.382, No.164), known as the
12 Municipality Authorities Act of 1945; and a redevelopment
13 authority organized under the act of May 24, 1945 (P.L.991,
14 No.385), known as the Urban Redevelopment Law.
15 "Planning agency." A planning agency or commission
16 established under the act of July 31, 1968 (P.L.805, No.247),
17 known as the Pennsylvania Municipalities Planning Code, and a
18 regional planning agency or commission created pursuant to the
19 act of May 29, 1956 (1955 P.L.1845, No.611), known as the
20 Regional Planning Law.
21 "Political subdivision." A county, city, borough,
22 incorporated town or township.
23 "Unstable industry." Any facility, public or private, which
24 evidences declining employment, or unstable or cyclical
25 employment cycles, or which is historically subject to abrupt
26 declines or shutdowns.
27 Section 4. Pennsylvania Economic Adjustment Board.
28 (a) Creation.--There is hereby created the Pennsylvania
29 Economic Adjustment Board within the Department of Commerce.
30 (b) Membership.--The board shall consist of the following:
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1 (1) Six members of the business community who are
2 residents of this Commonwealth. Three members shall be
3 appointed by the President pro tempore of the Senate and
4 shall include one representative of small business. Three
5 members shall be appointed by the Speaker of the House of
6 Representatives and shall include one representative of small
7 business.
8 (2) Six representatives of organized labor, three
9 appointed by the President pro tempore of the Senate and
10 three appointed by the Speaker of the House of
11 Representatives.
12 (3) The Lieutenant Governor.
13 (4) The Secretary of Commerce.
14 (5) The Secretary of Community Affairs.
15 (6) The Secretary of Labor and Industry.
16 (7) The Executive Director of the Human Relations
17 Commission.
18 (8) The Executive Director of the Commission for Women.
19 (9) A member of the Ben Franklin Partnership Fund,
20 designated by the Secretary of Commerce.
21 (10) The chairman and minority chairman of the Labor
22 Relations Committee of the House of Representatives.
23 (11) The chairman and minority chairman of the Labor and
24 Industry Committee of the Senate.
25 (12) Five persons, appointed by the Governor, who
26 provide technical expertise and geographic and demographic
27 diversity to the board.
28 (c) Officers.--The members shall select a chairman from
29 among the members.
30 (d) Compensation.--Members shall receive no compensation for
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1 their services as members other than reimbursement for actual
2 and necessary expenses incurred in the performance of board
3 duties.
4 (e) Term of office.--The nongovernmental members of the
5 board shall serve two-year terms.
6 Section 5. Powers and duties of board.
7 The board shall have the power and its duty shall be:
8 (1) To develop, advocate and monitor an economic
9 adjustment strategy for this Commonwealth. In furtherance of
10 such strategy, the board shall do the following:
11 (i) Undertake studies of unstable, declining or
12 failing industries and facilities in this Commonwealth.
13 (ii) Certify that each economic committee is
14 established in accordance with the provisions of this act
15 and allocate such moneys as the board deems appropriate
16 for the operation of each.
17 (iii) Monitor and review the findings and periodic
18 reports of the committees and report recommendations of
19 those findings to the Secretary of Labor and Industry and
20 to the General Assembly.
21 (iv) Encourage the development of economic
22 adjustment committees and regional economic adjustment
23 committees through the award of grants for initial
24 program costs to committees which are certified under
25 subparagraph (ii). Such grants shall be awarded through a
26 competitive process which is based upon standard criteria
27 established by the board and shall be for a period not to
28 exceed the first two years of a committee's operation.
29 (2) To hire and establish salaries for a Pennsylvania
30 Economic Adjustment Plan Manager and other staff and clerical
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1 assistance as may be necessary to perform its duties under
2 this act.
3 (3) To purchase such equipment as may be deemed
4 necessary to perform its duties under this act.
5 (4) To hold such public hearings as the board deems
6 necessary to fulfill its functions.
7 Section 6. Economic Adjustment Committee.
8 (a) Establishment.--A governing body may, by ordinance or
9 resolution, find and declare that there is a need for an
10 economic adjustment committee and may establish the committee to
11 function within the territorial limits of the political
12 subdivision. No economic adjustment committee may transact
13 business or otherwise become operative unless a finding is made
14 under this subsection. Two or more political subdivisions may,
15 by enactment of ordinances or resolutions containing identical
16 language, including reference to all of the political
17 subdivisions at interest, find and declare the need for, and
18 establish, regional economic adjustment committees to function
19 within the territorial limits of the political subdivisions.
20 Regional economic adjustment committees shall otherwise be
21 subject to the provisions of this act governing economic
22 adjustment committees.
23 (b) Record.--The governing body shall cause a certified copy
24 of the ordinance or resolution adopted under subsection (a) to
25 be filed with the board, and a duplicate with the department.
26 (c) Membership.--The membership of the economic adjustment
27 committee shall be appointed by the appointing authority of the
28 political subdivision and shall consist of an equal number of
29 individuals representing:
30 (1) The appointing authority. In the case of a regional
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1 economic adjustment committee, the appointing authority of
2 each member political subdivision shall appoint an equal
3 number of individuals. Representatives of the appointing
4 authority may include, but are not limited to, individuals
5 representing local development agencies and individuals
6 representing planning agencies under the jurisdiction of the
7 political subdivision.
8 (2) Business people within the community.
9 (3) Working people within the community.
10 (4) Voluntary community and civic organizations.
11 (d) Organization.--The appointing authority shall seek to
12 create as demographically diverse a committee as is possible,
13 reflecting the population of the political subdivision. The
14 members of the committee shall select a chairman from among the
15 committee. In the event that a chairman cannot be decided upon
16 by the committee, the chairman shall be appointed by the
17 appointing authority of the political subdivision.
18 (e) Term of office.--Committee members shall serve two-year
19 terms.
20 (f) Funding authorization.--Political subdivisions are
21 authorized to make appropriations to an economic adjustment
22 committee.
23 Section 7. Powers and duties of committee.
24 It shall be the power and duty of each committee to:
25 (1) Review the skills and mechanical capabilities of the
26 area facilities and labor force.
27 (2) Conduct research or engage technical assistance to
28 determine diverse types of business activities which can use
29 the skills and facilities in the area in a way likely to
30 maximize the employment, benefits and skill utilization of
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1 workers and prospective workers, while minimizing community
2 and worker dislocation in the event of a crisis of economic
3 stability.
4 (3) Conduct such interviews and hold such public
5 hearings as the committee deems necessary to properly fulfill
6 its functions.
7 (4) Report its findings, in writing, on an annual basis
8 to the board or its designee and to the governing body and
9 the appointing authority of the political subdivision.
10 Section 8. Voluntary business participation.
11 Participation by business and industry in any research or in
12 any program conducted by the board or an economic adjustment
13 committee shall be voluntary. No business or industrial entity
14 shall be required to provide confidential financial or
15 proprietary information, military or defense related
16 information, trade secret information or any other information
17 to the board or to an economic adjustment committee.
18 Section 9. Annual plan and report.
19 An annual plan and report shall be made to the Secretary of
20 Labor and Industry at the end of each calendar year. Copies
21 shall be sent to each member of the General Assembly.
22 Section 10. Appropriation.
23 The sum of $250,000, or as much thereof as may be necessary,
24 is hereby appropriated to the Pennsylvania Economic Adjustment
25 Board for the fiscal year July 1, 1991, to June 30, 1992, to
26 carry out the provisions of this act.
27 Section 11. Sunset.
28 The board and the economic adjustment committees shall
29 continue with their statutory functions and duties until June
30 30, 1995, when they shall terminate unless reestablished or
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1 continued by the General Assembly. Evaluation, review,
2 termination, reestablishment and continuation of the agencies
3 shall be conducted under the provisions of the act of December
4 22, 1981 (P.L.508, No.142), known as the Sunset Act.
5 Section 12. Effective date.
6 This act shall take effect immediately.
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