SENATE AMENDED
PRIOR PRINTER'S NO. 1093, 2264 PRINTER'S NO. 2341
No. 957 Session of 1975
INTRODUCED BY MESSRS. BENNETT, L. E. SMITH, ROMANELLI, WANSACZ,
HAMMOCK, DOMBROWSKI, STOUT, ZWIKL, KOWALYSHYN, McGINNIS,
KNEPPER, SCHEAFFER, DeVERTER, LAUGHLIN, LETTERMAN, SALOOM AND
HALVERSON, APRIL 8, 1975
AS AMENDED ON SECOND CONSIDERATION, IN SENATE, OCTOBER 14, 1975
AN ACT
1 Amending the act of August 23, 1967 (P.L.251, No.102), entitled,
2 as amended, "An act providing for the incorporation as public
3 instrumentalities of the Commonwealth and as bodies corporate
4 and politic of industrial and commercial development
5 authorities for municipalities, counties and townships;
6 prescribing the rights, powers and duties of such authorities
7 hereafter incorporated; authorizing such authorities to
8 acquire, by gift or purchase, to construct, improve and
9 maintain industrial or commercial development projects
10 including projects for the elimination or prevention of
11 blight and the control of air and water pollution, and to
12 borrow money and issue bonds therefor; providing for the
13 payment of such bonds and giving security therefor, and
14 prescribing the rights of the holders of such bonds;
15 authorizing the lease or sale of industrial or commercial
16 development projects to industrial, commercial, manufacturing
17 or research and development enterprises; authorizing any
18 county, municipality or township to transfer or convey to
19 such authorities, any facilities or property available for
20 industrial or commercial development projects; exempting the
21 property and securities of such authorities from taxation;
22 authorizing such authorities to enter into contracts with and
23 to accept grants from the Federal Government or any agency
24 thereof; and providing for approval by the Secretary of
25 Commerce of the proceedings relating to industrial or
26 commercial development projects of such authorities,"
27 revising the title of the act; defining, further defining,
28 and reordering certain terms; and further providing for <--
29 purposes and powers AND FURTHER CLARIFYING TAX EXEMPTIONS. <--
30 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. The title, act of August 23, 1967 (P.L.251,
3 No.102), known as the "Industrial and Commercial Development
4 Authority Act," amended December 29, 1972 (P.L.1675, No.359), is
5 amended to read:
6 AN ACT
7 "An act providing for the incorporation as public
8 instrumentalities of the Commonwealth and as bodies corporate
9 and politic of industrial and commercial development
10 authorities for municipalities, counties and townships;
11 prescribing the rights, powers and duties of such authorities
12 hereafter incorporated; authorizing such authorities to
13 acquire, by gift or purchase, to construct, improve and
14 maintain industrial, specialized, or commercial development
15 projects including projects for the elimination or prevention
16 of blight and the control of air and water pollution, and to
17 borrow money and issue bonds therefor; providing for the
18 payment of such bonds and giving security therefor, and
19 prescribing the rights of the holders of such bonds;
20 authorizing the lease or sale of industrial, specialized, or
21 commercial development projects to industrial, specialized
22 or, commercial [manufacturing or research and development]
23 enterprises; authorizing any county, municipality or township
24 to transfer or convey to such authorities, any facilities or
25 property available for industrial, specialized, or commercial
26 development projects; exempting the property and securities
27 of such authorities from taxation; authorizing such
28 authorities to enter into contracts with and to accept grants
29 from the Federal Government or any agency thereof; and
30 providing for approval by the Secretary of Commerce of the
19750H0957B2341 - 2 -
1 proceedings relating to industrial, specialized, or
2 commercial development projects of such authorities."
3 Section 2. Clauses (3), (5), (6) and (7) of section 2 of the
4 act, amended December 29, 1972 (P.L.1675, No.359), are amended
5 to read:
6 Section 2. Findings and Declaration of Policy.--It is hereby
7 determined and declared as a matter of legislative finding:
8 * * *
9 (3) That the present and prospective health, safety, morals
10 and general welfare of the people of the Commonwealth require as
11 a public purpose the promotion and development of new, expanded
12 and rehabilitated industrial, commercial, manufacturing and
13 research and development [enterprises] activities;
14 * * *
15 (5) That to continue and further the successful program of
16 The Pennsylvania Industrial Development Authority, it is
17 necessary to provide additional means of financing the promotion
18 and development of new, expanded and rehabilitated industrial,
19 specialized, and commercial [manufacturing and research and
20 development facilities,] enterprises, including in conjunction
21 therewith the financing of machinery and equipment;
22 (6) That many existing industrial, specialized and
23 commercial [manufacturing and research and development]
24 enterprises throughout the Commonwealth could become more
25 competitive and could expand more rapidly if such additional
26 means of financing were available for modern buildings, plant
27 facilities and modern machinery and equipment;
28 (7) That additional industrial, specialized, and commercial
29 [manufacturing and research and development facilities]
30 enterprises could be attracted to the Commonwealth if such
19750H0957B2341 - 3 -
1 additional means of financing were available to construct,
2 rehabilitate and expand industrial, specialized facilities, or
3 commercial buildings, or plants and in conjunction therewith
4 equip the same with modern machinery and equipment;
5 * * *
6 Section 3. Clause (9) of section 2 of the act, added
7 December 29, 1972 (P.L.1675, No.359), is amended and a clause is
8 added to read:
9 Section 2. Findings and Declaration of Policy.--It is hereby
10 determined and declared as a matter of legislative finding:
11 * * *
12 (9) That the provisions of the Constitution of Pennsylvania
13 guaranteeing the residents of the Commonwealth clean air and
14 water and their implementation through the establishment of
15 quality standards relating to abatement or elimination of air
16 and water pollution have resulted in the need for additional
17 means of financing to assist and encourage industrial,
18 [manufacturing, research and development, agricultural and
19 utility] specialized, and commercial enterprises to comply with
20 such air and water pollution control standards.
21 (10) That there is now, and is expected to be, a critical
22 need for the production of water suitable for public use and
23 consumption, natural gas, coal, oil, electric energy, THROUGH <--
24 THE USE OF COAL-FIRED GENERATING FACILITIES and other resources,
25 and that in order to insure continuing supplies of such
26 resources at reasonable rates, it is necessary to provide
27 additional means of financing enterprises directed to such
28 production.
29 (11) THAT TO PROTECT THE HEALTH, SAFETY AND GENERAL WELFARE <--
30 OF THE PEOPLE OF THE COMMONWEALTH AND TO FURTHER ENCOURAGE
19750H0957B2341 - 4 -
1 ECONOMIC DEVELOPMENT WITHIN THE COMMONWEALTH BY PROVIDING BASIC
2 SERVICES AND FACILITIES, IT IS NECESSARY TO PROVIDE ADDITIONAL
3 OR ALTERNATIVE MEANS OF FINANCING CERTAIN TRANSPORTATION
4 FACILITIES, INDUSTRIAL PARKS, NURSING HOMES, ENERGY CONVERSION
5 FACILITIES AND FACILITIES FOR THE FURNISHING OF ELECTRIC ENERGY
6 THROUGH THE USE OF COAL-FIRED GENERATING FACILITIES, GAS, OR
7 WATER AVAILABLE ON REASONABLE DEMAND TO MEMBERS OF THE GENERAL
8 PUBLIC.
9 * * *
10 Section 4. Section 3 of the act, amended December 29, 1971
11 (P.L.647, No.171), September 1, 1972 (Sp.Sess. No.1, P.L.2015,
12 No.2) and December 29, 1972 (P.L.1675, No.359), is amended to
13 read:
14 Section 3. Definitions.--As used in this act:
15 [(1) "Authority" or "industrial and commercial development
16 authority" means a public instrumentality of the Commonwealth
17 and a body politic and corporate, created pursuant to this act.
18 (2) "Board" means the governing body of an authority.
19 (3) "Bonds" mean and include the notes, bonds, refunding
20 notes and bonds and other evidence of indebtedness or
21 obligations which each authority is authorized to issue pursuant
22 to section 6(b)(10) of this act.
23 (4) "Construction" means and includes acquisition by deed,
24 lease, sale, gift or otherwise, and construction, and the term
25 "to construct" means and includes to acquire by deed, lease,
26 sale, gift or otherwise, and to construct, all in such manner as
27 may be deemed desirable.
28 (5) "Cost of the industrial or commercial development
29 project" or "cost of the project" or "cost" means and includes
30 the cost of construction, the cost of acquisition of all
19750H0957B2341 - 5 -
1 structures, lands and other property rights and interests in
2 land necessary to the project, the cost of demolishing, removing
3 or relocating any buildings or structures on lands acquired or
4 to be acquired, including the cost of acquiring any lands to
5 which such buildings or structures may be moved or relocated,
6 the cost of sewage treatment, industrial waste treatment and air
7 pollution control facilities and of all labor, materials,
8 machinery and equipment, financing charges, interest on all
9 bonds prior to and during construction, and for a period of six
10 months thereafter, cost of engineering, financial and legal
11 services, plans, specifications, studies, surveys necessary or
12 incidental to determining the feasibility or practicability of
13 constructing an industrial or commercial development project,
14 administrative expenses, reserves for interest and for
15 extensions, enlargements, additions and improvements, and such
16 other expenses as may be necessary or incidental to the
17 construction of industrial or commercial development projects
18 and the placing of the same in operation.
19 (6) "Federal agency" means and includes the United States of
20 America, the President of the United States of America, and any
21 department of or corporation, agency or instrumentality
22 heretofore or hereafter created, designated or established by
23 the United States of America.
24 (7) "Governmental body" or "governmental bodies" means the
25 body or board authorized by law to enact ordinances or adopt
26 resolutions for the particular municipality.
27 (8) "Improvement" means and includes extension, enlargement
28 and other improvement; and the term "to improve" means and
29 includes to extend, to enlarge, and to otherwise improve all in
30 such manner as may be deemed desirable.
19750H0957B2341 - 6 -
1 (9) "Industrial enterprise" means an enterprise other than a
2 mercantile, commercial or retail enterprise, which by virtue of
3 its size requires substantial capital and which by its nature
4 and size has created or will create substantial employment
5 opportunities. The term "industrial enterprise" may include
6 warehouse, distribution and national and regional headquarters
7 facilities. The term "industrial enterprise" may also include
8 enterprises directly related to tourism and recreational
9 facilities provided such activity comprises or is a part of a
10 planned tourist or recreational complex and provided that such
11 activity requires substantial capital and by its nature and size
12 has created or will create substantial employment opportunities.
13 (10) "Industrial development project" or "project" means any
14 building or facility or combination or part thereof or pollution
15 control facilities occupied or utilized by an industrial,
16 manufacturing, or research and development enterprise, or, in
17 the case of pollution control facilities, occupied or utilized
18 by a utility or agricultural enterprise or by a company engaged
19 in the extraction of any mineral coal, oil or natural resources,
20 located within or without or partially within or without the
21 municipality creating the authority, now existing or hereafter
22 acquired or constructed by the authority pursuant to the terms
23 of this act, including any or all buildings, improvements,
24 additions, extensions, replacements, appurtenances, lands,
25 rights in land, water rights, franchises, machinery, equipment,
26 furnishings, landscaping, utilities, railroad spurs and sidings,
27 wharfs, approaches and roadways necessary or desirable in
28 connection therewith or incidental thereto.
29 (11) "Industrial occupant" means any person, partnership, or
30 corporation engaged in industrial, manufacturing or research and
19750H0957B2341 - 7 -
1 development activities and determined by the authority to be
2 financially responsible to assume all obligations prescribed by
3 the authority and this act in the leasing, sale and operation of
4 an industrial development project, and shall also mean a
5 financially responsible nonprofit community industrial
6 development agency engaged in establishing industrial
7 development projects, whether for single or multiple occupancy
8 for use by any person, partnership, or corporation engaged in
9 industrial manufacturing or research and development activities.
10 (12) "Manufacturing enterprise" means an enterprise which is
11 engaged in the giving of new shapes, new qualities or new
12 combinations to matter by the application of skill and labor
13 thereto through the use of equipment or otherwise.
14 (12.1) "Commercial enterprise" means a business enterprise
15 other than one used for industrial purposes, which by virtue of
16 its size requires substantial capital and which by its nature
17 and size has created or will create substantial employment
18 opportunities. The term "commercial enterprise" may include
19 office buildings, hotel or motel structures, shopping centers
20 and department stores and national and regional headquarters
21 facilities: Provided, however, That with respect to
22 redevelopment pursuant to a redevelopment proposal, there shall
23 be no requirement concerning the expenditure of substantial
24 capital or the creation of substantial employment opportunities.
25 (12.2) "Commercial development project" means any building
26 or facility or combination or part thereof occupied or utilized
27 by a commercial enterprise located within or without or
28 partially within or without the municipality creating the
29 authority, now existing or hereafter acquired or constructed by
30 the authority pursuant to the terms of this act, including any
19750H0957B2341 - 8 -
1 or all buildings, improvements, additions, extensions,
2 replacements, appurtenances, lands, rights in land, water
3 rights, franchises, landscaping, utilities, railroad spurs and
4 sidings, wharfs, approaches and roadways necessary or desirable
5 in connection therewith or incidental thereto.
6 (12.3) "Commercial occupant" means any person, partnership,
7 or corporation engaged in commercial activities and determined
8 by the authority to be financially responsible to assume all
9 obligations prescribed by the authority and this act in the
10 leasing, sale and operation of a commercial development project.
11 (13) "Municipality" means any county, city, town, borough or
12 township of the Commonwealth of Pennsylvania.
13 (14) "Research and development enterprise" means an
14 enterprise for the discovery of new and the refinement of known
15 substances, processes, products, theories and ideas, but shall
16 not include activities directed primarily to the accumulation or
17 analysis of commercial, financial or mercantile data.
18 (15) "Secretary" means the Secretary of Commerce of this
19 Commonwealth.
20 (16) "Investor-developer" means any person, partnership or
21 corporation engaged in the development for use by commercial and
22 or industrial occupants of one or more commercial development
23 projects and or industrial development projects and determined
24 by the authority to be financially responsible to assume all
25 obligations prescribed by the authority and this act in the
26 acquisition, development, construction, leasing, sale, operation
27 and financing in whole or in part of a commercial development
28 project or an industrial development project.
29 (17) "Pollution control facilities" means any property, real
30 or personal which is to be used to abate or reduce or aid in the
19750H0957B2341 - 9 -
1 prevention, control, disposal or monitoring of noise, air, water
2 or thermal pollution, solid waste or other pollutants without
3 limitation thereto and may include property or equipment which
4 is to be installed primarily to supplement or to replace
5 existing property or equipment not meeting acceptable pollution
6 control standards or which is to be supplemented or replaced to
7 comply with an order or citation to eliminate pollution issued
8 by any Federal, State or local authority having jurisdiction.
9 (18) "Disaster relief project" means any undertaking to
10 rehabilitate, repair, reconstruct, clean-up, replace, or
11 otherwise return to economic use any land, site, structure, or
12 facility, including machinery, equipment and tools damaged or
13 lost due to disaster of flood or fire or other casualty caused
14 by the floods of September, 1971 or June, 1972 and comprising or
15 being a part of an industrial, commercial, agricultural,
16 utility, manufacturing or research and development enterprise.
17 (19) "Utility enterprise" means any public or private
18 company or corporation engaged primarily in an activity
19 regulated by the Pennsylvania Public Utility Commission.
20 (20) "Agricultural enterprise" means any proprietorship,
21 partnership, company, or corporation which is engaged primarily
22 in raising, preparing, or marketing crops, livestock or related
23 products.
24 (21) "Redevelopment proposal" shall mean a proposal,
25 including a copy of the redevelopment area plan and supporting
26 data submitted for approval to the governing body by an
27 authority, for the development of all or any part of a
28 redevelopment area. A redevelopment area shall be determined by
29 the provisions of the act of May 24, 1945 (P.L.991, No.385),
30 known as the "Urban Redevelopment Law."]
19750H0957B2341 - 10 -
1 "Acquisition" and "to acquire" mean and include the obtaining <--
2 of possession or title to real or personal property by deed,
3 lease, sale, gift or otherwise.
4 "Agricultural activity" means any person, partnership, or
5 corporation which is engaged primarily in raising, preparing, or
6 marketing crops, livestock, or related products.
7 "Authority" or "industrial and commercial development
8 authority" means a public instrumentality of the Commonwealth
9 and a body politic and corporate, created pursuant to this act.
10 "Board" means the governing body of an authority.
11 "Bonds" means and includes the notes, bonds, refunding notes
12 and bonds and other evidence of indebtedness or obligations
13 which each authority is authorized to issue pursuant to section
14 6(b)(10) of this act.
15 "Certain transportation facilities" means airports, docks,
16 wharves, mass commuting facilities, public parking facilities,
17 inter modal transportation facilities, or storage or training
18 facilities directly related to any such facility.
19 "Commercial enterprise" means an enterprise other than a
20 specialized enterprise or industrial enterprise which by its
21 nature or size requires substantial capital and which by its
22 nature or size has created, or offers reasonable likelihood of
23 creating, substantial employment opportunities. The term
24 "commercial enterprise" may include wholesale, retail and other
25 mercantile activities, and may include office buildings, hotel <--
26 or motel structures, shopping centers, and department stores AND <--
27 INTERNATIONAL, NATIONAL AND REGIONAL HEADQUARTERS FACILITIES:
28 Provided, however, That with respect to redevelopment pursuant
29 to a redevelopment proposal, there shall be no requirement
30 concerning substantiality of capital nor substantiality of
19750H0957B2341 - 11 -
1 creation of employment opportunities.
2 "Construction" and "to construct" mean and include the
3 ACQUISITION, erection, extension, renovation, enlargement or <--
4 substantial repair of structures employed in, or related to,
5 activities comporting with the intent of this act, and also
6 include activities substantially related to such ACQUISITION, <--
7 erection, extension, renovation, enlargement or substantial
8 repair of structures employed in, or related to, such
9 activities.
10 "Cost of the industrial development project, specialized
11 development project or commercial development project" or "cost
12 of the project" or "cost" means and includes the expense of
13 construction, the expense of acquisition of all structures,
14 lands and other property rights and interests in land necessary
15 to the project. The terms also include the expense of
16 demolishing, removing or relocating any buildings or structures
17 on lands acquired or to be acquired, including the expense of
18 acquiring any lands to which such buildings or structures may be
19 moved or relocated, the expense of sewage treatment, waste
20 treatment and pollution control facilities, railroad sidings,
21 spurs, or branch lines and of all labor, materials, machinery
22 and equipment, financing charges, interest on all bonds prior to
23 and during construction, and for a period of six months
24 thereafter, cost of engineering, financial and legal services,
25 plans, specifications, studies, surveys necessary or incidental
26 to determining the feasibility or practicability of constructing
27 an industrial, specialized, or commercial development project,
28 administrative expenses, reserves for interest and for
29 extensions, enlargements, additions and improvements, and such
30 other expenses as may be necessary or incidental to the
19750H0957B2341 - 12 -
1 construction of industrial, specialized, or commercial
2 development projects and the placing of the same in operation.
3 "Disaster relief project" means any undertaking to
4 rehabilitate, repair, reconstruct, clean up, replace or
5 otherwise return to economic use any land, site, structure, or
6 facility, including machinery, equipment and tools damaged or
7 lost due to disaster of flood or fire or other casualty
8 comprising or being a part of an industrial, specialized or
9 commercial enterprise. In order to qualify as a disaster relief
10 project, a project must be located within a county designated as
11 a disaster area by the President of the United States.
12 "Energy conversion activity" FACILITY" means an improvement <--
13 to an industrial, commercial, or specialized development project
14 which changes the fuel burning capability of a combustion <--
15 facility, located thereon CHANGES ITS FUEL CONSUMPTION <--
16 CAPABILITY to a fuel determined by the department AUTHORITY, <--
17 WITH THE APPROVAL OF THE SECRETARY to be more desirable than the
18 fuel used by said facility THE OCCUPANT OF THE PROJECT at the <--
19 time application is made to the authority.
20 "Energy producing activity" means an activity to create,
21 extract, transmit, or store energy or energy producing
22 substances, including, but not limited to coal mine operations,
23 oil and gas operations, solar, nuclear, or geothermal energy
24 operations.
25 "Federal agency" means and includes the United States of
26 America, the President of the United States of America, and any
27 department of or corporation, agency or instrumentality
28 heretofore or hereafter created, designated or established by
29 the United States of America.
30 "Governmental body" or "governmental bodies" means the body
19750H0957B2341 - 13 -
1 or board authorized by law to enact ordinances or adopt
2 resolutions for the particular municipality.
3 "Improvement" and "to improve" mean and include construction
4 and other changes determined by an authority with the approval
5 of the secretary to comport with the purposes of this act.
6 "Industrial development project," "specialized development
7 project," "commercial development project," "development
8 project" or "project" means any pollution control facilities or
9 any combination or part of buildings or facilities occupied or
10 utilized by an industrial, specialized, or commercial enterprise
11 located within or without, or partially within or without, the
12 municipality creating the authority, or existing or hereafter
13 acquired or constructed by the authority pursuant to the terms
14 of this act, including any or all buildings, improvements,
15 additions, extensions, replacements, appurtenances, lands,
16 rights in land, water rights, franchises, machinery, equipment,
17 furnishings, landscaping, utilities, railroad spurs and sidings,
18 wharves, approaches and roadways necessary or desirable in
19 connection therewith or incidental thereto. The term
20 "development project" includes, as well, pollution control
21 facilities occupied or utilized by any utility activity,
22 agricultural activity or any person, partnership, or corporation
23 engaged in the extraction of any mineral coal, natural gas, oil
24 or other natural resources.
25 "Industrial enterprise" means an enterprise other than a
26 specialized enterprise or commercial enterprise which by its
27 nature or size requires substantial capital and which by its
28 nature or size has created or offers a reasonable likelihood of
29 creating substantial employment opportunities. The term
30 "industrial enterprise" may include manufacturing activities and
19750H0957B2341 - 14 -
1 research and development activities, as well as warehouse
2 facilities, distribution facilities, and international, national
3 and regional headquarters facilities. The term "industrial
4 enterprise" also includes activities directly related to tourism
5 and recreational facilities, provided that such activities
6 comprise or are part of a planned or established tourist or
7 recreational complex.
8 "Industrial parks" means land areas acquired (including
9 existing buildings and improvements), and improvements to be
10 placed thereon as prepared by a nonprofit development <--
11 organization in accordance with plans and specifications as <--
12 approved by the secretary as sites for the establishment thereon
13 of two or more industrial, specialized, or commercial
14 development projects.
15 "Investor-developer" means any person, partnership or
16 corporation engaged in the development for use by occupants of
17 one or more development projects and determined by the authority
18 to be financially responsible to assume all obligations
19 prescribed by the authority and this act in the acquisition,
20 development, construction, leasing, sale, operation and <--
21 financing in whole or in part of a development project.
22 "Manufacturing activity" means an activity which is engaged <--
23 in the giving of new shapes, new qualities or new combinations
24 to matter by the application of skill and labor thereto through
25 the use of equipment or otherwise.
26 "Municipality" means any county, city, town, borough or
27 township of the Commonwealth of Pennsylvania, each of which
28 political subdivisions are separate incorporated municipalities
29 of the Commonwealth of Pennsylvania for the purposes of this
30 act.
19750H0957B2341 - 15 -
1 "Nursing home" means any facility licensed or approved as a
2 nursing home by the Department of Public Welfare under the act <--
3 of June 13, 1967 (P.L.31, No.21), known as the "Public Welfare
4 Code." OR BY THE DEPARTMENT OF HEALTH. <--
5 "Occupant" means any person, partnership, or corporation
6 engaged in an industrial, commercial or specialized enterprise
7 and determined by the authority to be financially responsible to
8 assume all obligations prescribed by the authority and this act
9 in the lease, sale, and operation of a development project. The
10 term "occupant" shall also mean a financially responsible
11 nonprofit development agency engaged in establishing development
12 projects, whether for single or multiple occupancy for use by
13 any person, partnership, or corporation engaged in any
14 enterprise.
15 "Pollution control facilities" means any property, real or
16 personal, which is to be used to abate or reduce or aid in the
17 prevention, control, disposal or monitoring of noise, air, water
18 or thermal pollution, solid waste or other pollutants without
19 limitation thereto and may include property or equipment which
20 is to be installed primarily to supplement or to replace
21 existing property or equipment not meeting acceptable pollution
22 control standards or which is to be supplemented or replaced to
23 comply with an order or citation to eliminate pollution issued
24 by any Federal, State or local authority AGENCY having <--
25 jurisdiction.
26 "Redevelopment proposal" means a proposal, including a copy
27 of the redevelopment area plan and supporting data submitted for
28 approval to the governing body by an authority, for the
29 development of all or any part of a redevelopment area.
30 "Research and development activity" means an activity for the
19750H0957B2341 - 16 -
1 discovery of new and the refinement of known substances,
2 processes, products, theories and ideas, but shall not include
3 activities directed primarily to the accumulation or analysis of
4 commercial, financial or merchantile MERCANTILE data. <--
5 "Secretary" means the Secretary of Commerce of the
6 Commonwealth.
7 "Specialized enterprise" means an enterprise, other than an
8 industrial enterprise or a commercial enterprise, which by its
9 nature or size requires substantial capital. The term
10 "specialized enterprise" includes, and is expressly limited to,
11 certain transportation facilities, nursing homes, industrial
12 parks, facilities for the furnishing by a utility activity of
13 electric energy, gas, or water available on reasonable demand to
14 members of the general public, ENERGY CONVERSION FACILITIES, <--
15 energy-producing activities, and the construction of rail
16 sidings, spurs, and branch lines.
17 "Utility activity" means any public or private company or
18 corporation engaged primarily in an activity regulated by the
19 Pennsylvania Public Utility Commission.
20 Section 5. Subsection (a), clauses (8), (9) and (16) of
21 subsection (b) and subsection (d) of section 6 of the act,
22 subsection (a) and clauses (1), (2) and (4) of subsection (d)
23 amended December 29, 1971 (P.L.647, No.171), and clauses (8),
24 (9) and (16) of subsection (b) amended December 29, 1972
25 (P.L.1675, No.359), are amended to read:
26 Section 6. Purposes and Powers; General.--(a) Every
27 authority incorporated under this act shall be a public
28 instrumentality of the Commonwealth and a public body corporate
29 and politic, and shall be for the purpose of acquiring, holding,
30 constructing, improving, maintaining, owning, financing and
19750H0957B2341 - 17 -
1 leasing, either in the capacity of lessor or lessee, industrial,
2 specialized or commercial development projects. In the event of
3 default by an [industrial or commercial] occupant, an authority
4 may, in its discretion, do any and all acts necessary or
5 convenient to protect the holders of any bonds issued to
6 establish such project or to maintain and preserve the project
7 pending the remedying of such default or defaults or the
8 obtaining of a new [industrial or commercial] occupant.
9 (b) Every authority is hereby granted, and shall have and
10 may exercise all powers necessary or convenient for the carrying
11 out of the aforesaid purposes, including but without limiting
12 the generality of the foregoing, the following rights and
13 powers:
14 * * *
15 (8) To enter into acquisition agreements providing for (i)
16 the construction of industrial, specialized, or commercial
17 development projects by either the authority or the [industrial
18 or commercial] occupant; (ii) the financing of industrial,
19 specialized and commercial development projects to be
20 constructed initially by an [industrial or commercial] occupant
21 if prior to the commencement of construction an agreement as to
22 financing is entered into between the authority and the
23 [industrial or commercial] occupant; (iii) the financing of
24 improvements to existing industrial, specialized or commercial
25 development projects if the existing project is owned by the
26 authority or will be conveyed in fee to the authority, free and
27 clear of all encumbrances and without consideration; (iv) the
28 leasing or sale of the industrial, specialized or commercial
29 development projects to the [industrial or commercial] occupants
30 or to an investor-developer as hereinafter provided; and (v) the
19750H0957B2341 - 18 -
1 financing of the activities of investor-developers in any
2 activity set forth in (i), (ii), (iii) or (iv) above.
3 (9) To enter into agreements of lease or sale with
4 [industrial or commercial] occupants or investor-developers
5 providing, inter alia, (i) for the leasing or sale of
6 industrial, specialized and commercial development projects to
7 the [industrial or commercial] occupants or investor-developers
8 for a term of years not to extend beyond the term of existence
9 of the authority; (ii) for a rental or other payments sufficient
10 to amortize the principal, interest and premium, if any, of all
11 bonds and other obligations of the authority incurred to pay the
12 costs of the industrial, specialized or commercial development
13 project to be leased or sold; (iii) for the [industrial or
14 commercial] occupant or investor-developer to pay to the
15 authority or to otherwise assume and pay all other costs of
16 maintaining and operating the project; (iv) provisions, if
17 deemed desirable, that the [industrial or commercial] occupant
18 or investor-developer of a project pursuant to a lease shall
19 have the options to renew such lease or to purchase any or all
20 of such project; [or upon payment of all bonds and other
21 obligations of the authority incurred with respect to such
22 project, the authority may convey any part or all of said
23 project to the industrial or commercial occupants or investor-
24 developers with or without consideration; and] (v) for
25 conveyance with or without consideration of any part, or all, of
26 a project to occupants or investors-developers INVESTOR- <--
27 DEVELOPERS on or before payment of all bonds and other
28 obligations of the authority incurred with respect to such
29 project; and (vi) such other provisions as are customary in such
30 leases or agreements of sale or as may be deemed necessary or
19750H0957B2341 - 19 -
1 convenient by the authority.
2 * * *
3 (16) Recognizing the necessity for enterprises to
4 immediately commence rehabilitation work and pollution control
5 facilities, no disaster relief project or project consisting of
6 pollution control facilities shall be rejected by the Secretary
7 of Commerce or be otherwise disqualified under this act on the
8 grounds that the project has commenced or has been completed,
9 provided that in respect to a disaster relief project an
10 application for approval by the secretary is submitted to the
11 Department of Commerce [prior to January 1, 1973] within six
12 months after the county in which the project is or will be
13 located has been designated as a disaster area by the President
14 of the United States.
15 * * *
16 (d) An authority created hereunder shall have no power to:
17 (1) Construct or finance or aid in the construction or
18 financing of an industrial, specialized, or commercial
19 development project which shall cause the removal of a
20 manufacturing, industrial, specialized, commercial [or research]
21 enterprise, plant, facility or establishment from one area of
22 the Commonwealth of Pennsylvania to another area of the
23 Commonwealth.
24 (2) Acquire existing industrial, specialized, or commercial
25 development projects under circumstances which would be
26 primarily for the purpose of directly or indirectly refinancing
27 the obligations of or providing working capital or other funds
28 for any industrial, specialized, commercial, [manufacturing or
29 research] enterprise or any parent, subsidiary, affiliate or
30 shareholder thereof, which enterprise, or any parent,
19750H0957B2341 - 20 -
1 subsidiary, affiliate or shareholder thereof, would thereafter
2 continue to occupy or utilize said project; however, this
3 limitation shall not apply to refinancing in order to improve an
4 existing project now financed by the authority or by any
5 authority or nonprofit corporation heretofore recognized as
6 agency or an instrumentality of the Commonwealth or any
7 municipality thereof.
8 (3) Enter into any agreement to finance the acquisition or
9 construction of an industrial development project in excess of
10 the cost of the project.
11 (4) Finance machinery or equipment except in conjunction
12 with the construction of a new, or the improvement of an
13 existing industrial, specialized, or commercial development
14 project, but such prohibition shall not relate to the financing
15 of pollution control facilities; or
16 (5) Engage in business, trade or commerce for a profit as
17 lessee of a project, or otherwise.
18 Section 6. Subsections (c) and (f) of section 7 of the act,
19 subsection (c) amended December 29, 1971 (P.L.647, No.171), and
20 subsection (f) amended December 29, 1972 (P.L.1675, No.359), are
21 amended to read:
22 Section 7. Purposes and Powers; Bonds.--* * *
23 (c) Any resolution or resolutions authorizing any bonds may
24 contain provisions which shall be part of the contract with the
25 holders thereof, as to (i) pledging the full faith and credit of
26 the authority (but not of the Commonwealth of Pennsylvania or
27 any political subdivision thereof) for such obligations, or
28 restricting the same to all or any of the assets or to all or
29 any of the revenues or receipts of the authority from all or any
30 projects or properties; (ii) the construction, improvement,
19750H0957B2341 - 21 -
1 operation, extension, enlargement, maintenance and repair of the
2 project and the duties of the authority and the [industrial or
3 commercial] occupant with reference thereto; (iii) the terms and
4 provisions of the bonds; (iv) limitations on the purposes to
5 which the proceeds of the bonds then or thereafter to be issued,
6 or of any loan or grant by a Federal agency may be applied; (v)
7 the rentals and other charges for use of the project; (vi) the
8 setting aside of reserves or sinking funds and the regulation
9 and disposition thereof; (vii) limitations on the issuance of
10 additional bonds; (viii) the terms and provisions of any deed of
11 trust, mortgage or indenture securing the bonds, or under which
12 the same may be issued, and (ix) any other or additional
13 agreements with the holders of the bonds.
14 * * *
15 (f) No bonds shall be issued and sold and the construction
16 of a project shall not be commenced until the proceedings to be
17 undertaken in respect of the issuance and sale of the bonds and
18 the construction of the project have been first approved by the
19 secretary: Provided, That construction of disaster relief
20 projects and projects consisting of pollution control facilities
21 may be commenced prior to the approval of the secretary: And
22 provided further, That in respect to disaster relief projects,
23 an application for approval in respect thereof is submitted to
24 the secretary [prior to January 1, 1973] within six months after
25 the county in which the project is or will be located has been
26 designated as a disaster area by the President of the United
27 States. The chairman of the authority shall cause to be
28 certified under seal of the authority and delivered to the
29 secretary such documents relating to the proceedings as may be
30 necessary and as may be required by the secretary to enable him
19750H0957B2341 - 22 -
1 to determine that:
2 (1) The project does not violate section 6(d) hereof;
3 (2) The lease or agreement of sale is in accordance with
4 section 6(b)(9) hereof;
5 (3) The proceedings are in conformity with this act, and
6 (4) The industrial, specialized, and commercial development
7 project will accomplish the public purposes of this act.
8 If such proceedings are found to be in conformity with this
9 act, the secretary shall within twenty days after receipt
10 thereof approve the same and certify his approval to the
11 authority.
12 If, upon examination, the secretary shall find that such
13 proceedings are not in accordance with this act, he shall
14 disapprove the same and shall within twenty days after receipt
15 thereof certify his disapproval to the authority; thereafter, it
16 shall be unlawful for such authority to issue any bonds upon
17 such proceedings or to commence construction of the project
18 unless the proceedings are corrected and as corrected have been
19 approved by the secretary. If the secretary shall not have
20 approved or disapproved the proceedings within such twenty days
21 the same shall be deemed to have been approved. The decision of
22 the secretary shall be final.
23 * * *
24 Section 7. Section 11 of the act, amended December 29, 1971
25 (P.L.647, No.171), is amended to read:
26 Section 11. Transfer of Existing Facilities to Authority.--
27 Any municipality may, and it is hereby authorized to sell,
28 lease, grant, convey and transfer to any authority, any
29 facilities, or any interest in real or personal property
30 available for industrial, specialized, or commercial development
19750H0957B2341 - 23 -
1 projects. This section without reference to any other law, shall
2 be deemed complete, the provisions of other laws to the contrary
3 notwithstanding.
4 Section 8. Subsection (a) of section 12 of the act, amended
5 December 29, 1972 (P.L.1675, No.359), is amended to read:
6 Section 12. Competition in Award of Contracts.--(a) All
7 construction, reconstruction, repairs or work of any nature made
8 directly by any authority where the entire cost, value or amount
9 of such construction, reconstruction, repairs or work, including
10 labor and materials, shall exceed five thousand dollars
11 ($5,000), except construction, reconstruction, repairs or work
12 done by employes of said authority, or by labor supplied under
13 agreement with any Federal or State agency, with supplies and
14 materials purchased as hereinafter provided, shall be done only
15 under contract or contracts to be entered into by the authority
16 with the lowest responsible bidder upon proper terms, after due
17 public notice has been given asking for competitive bids as
18 hereinafter provided: Provided, however, That where the
19 authority is the legal title holder to the industrial,
20 specialized, or commercial development project, and there exists
21 an agreement whereby an [industrial or commercial] occupant or
22 an investor-developer will or can acquire legal title to the
23 said project under the then certain terms and conditions,
24 contracts for construction, reconstruction, repair, or work of
25 any nature, or purchase of machinery and equipment, may be
26 awarded by the [industrial or commercial] occupant or the
27 investor-developer without regard to the limitations of this
28 section 12: And provided further, however, That for the purposes
29 of this section 12, "construction" or "acquisition" shall not
30 include acquisition of property for industrial, specialized, or
19750H0957B2341 - 24 -
1 commercial development purposes. No contract shall be entered
2 into between an authority and a contractor for construction or
3 improvement or repair of any project or portion thereof, unless
4 the contractor shall give an undertaking with a sufficient
5 surety or sureties approved by the authority, and in an amount
6 fixed by the authority, for the faithful performance of the
7 contract. All contracts of surety shall provide among other
8 things that the contractor entering into a contract with the
9 authority will pay for all materials furnished and services
10 rendered for the performance of the contract, and that any
11 person or corporation furnishing such materials or rendering
12 such services may maintain an action to recover for the same
13 against the obligor in the undertaking, as though such person or
14 corporation was named therein, provided the action is brought
15 within one year after the time the cause of action accrued.
16 * * *
17 Section 9. Subsection (f) of section 12 of the act, amended
18 December 29, 1971 (P.L.647, No.171), is amended to read:
19 Section 12. Competition in Award of Contracts.--* * *
20 (f) The provisions of this section 12 shall not apply in
21 respect of the construction of any project or the purchase of
22 any equipment, materials or supplies which the authority may
23 have had transferred to it upon completion, by purchase or
24 otherwise, by an [industrial or commercial] occupant or any
25 other person or corporation.
26 SECTION 10. SECTION 15 OF THE ACT IS AMENDED TO READ: <--
27 SECTION 15. EXEMPTION FROM TAXATION.--THE EFFECTUATION OF
28 THE AUTHORIZED PURPOSE OF AUTHORITIES CREATED UNDER THIS ACT
29 SHALL AND WILL BE IN ALL RESPECTS FOR THE BENEFIT OF THE PEOPLE
30 OF THE COMMONWEALTH OF PENNSYLVANIA, FOR THE INCREASE OF THEIR
19750H0957B2341 - 25 -
1 COMMERCE AND PROSPERITY, AND FOR THE IMPROVEMENT OF THEIR HEALTH
2 AND LIVING CONDITIONS; AND, SINCE THEY WILL AS PUBLIC
3 INSTRUMENTALITIES OF THE COMMONWEALTH BE PERFORMING ESSENTIAL
4 GOVERNMENTAL FUNCTIONS IN EFFECTUATING SUCH PURPOSES,
5 AUTHORITIES SHALL NOT BE REQUIRED TO PAY ANY TAXES OR
6 ASSESSMENTS UPON ANY PROPERTY ACQUIRED OR USED BY THEM FOR SUCH
7 PURPOSES, AND THE BONDS ISSUED BY ANY AUTHORITY, THEIR TRANSFER
8 AND THE INCOME THEREFROM, (INCLUDING ANY PROFITS MADE ON THE
9 SALE THEREOF) SHALL AT ALL TIMES BE FREE FROM TAXATION WITHIN
10 THE COMMONWEALTH OF PENNSYLVANIA. THE SCOPE OF THE FOREGOING
11 EXEMPTION FROM TAXATION INCLUDES, BUT IS NOT LIMITED TO,
12 PROPERTY TAXES, EXCISE TAXES FOR THE PRIVILEGE OF DOING
13 BUSINESS, AND TAXES MEASURED OR DETERMINED BY INCOME OR NET
14 EARNINGS.
15 Section 10 11. This act shall take effect immediately. <--
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