PRINTER'S NO. 1535
No. 1298 Session of 1983
INTRODUCED BY SWEET, HOEFFEL, MICHLOVIC, O'DONNELL,
F. E. TAYLOR, IRVIS, MANDERINO, WACHOB, PISTELLA, DALEY,
LESCOVITZ, WOZNIAK, McINTYRE, AFFLERBACH, GRUITZA, BELFANTI,
GALLAGHER, SEVENTY, PRATT, VAN HORNE, TRELLO, GAMBLE, MAIALE,
FREEMAN, PETRARCA, MURPHY, MORRIS, LETTERMAN, LLOYD, RYBAK,
WAMBACH, KOSINSKI, ALDERETTE, DAWIDA, BLAUM, EVANS, COWELL,
STEIGHNER, CLARK, TIGUE, McHALE AND CAPPABIANCA, JUNE 30,
1983
REFERRED TO COMMITTEE ON BUSINESS AND COMMERCE, JUNE 30, 1983
AN ACT
1 Providing for the establishment and operation of municipal
2 emergency evaluation teams to assist municipalities in coping
3 with plant closings or massive layoffs; and imposing duties
4 on the Economic Development Board.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the
9 Distressed Communities Evaluation Team Act.
10 Section 2. Legislative intent.
11 The General Assembly finds that adverse economic conditions
12 resulting in plant closing and massive, long-term layoffs by
13 private industrial and commercial businesses threaten the
14 stability of the Commonwealth as well as the stability of the
15 municipalities where such plant closing and layoffs occur and
16 that direct assistance by an agency of the Commonwealth is
1 necessary to avert or ameliorate such conditions, and
2 accordingly, it is the intent of the General Assembly to provide
3 such assistance through a program of Distressed Communities
4 Evaluation Teams under the Pennsylvania Economic Development
5 Board.
6 Section 3. Definitions.
7 The following words and phrases when used in this act shall
8 have the meanings given to them in this section unless the
9 context clearly indicates otherwise:
10 "Board." The Pennsylvania Economic Development Board
11 established pursuant to the act of .
12 "Evaluation team." A group consisting of not more than seven
13 specialists appointed by the board for the purposes of
14 determining whether a plant closing or massive layoff can be
15 averted or other ownership options are available and feasible.
16 "Municipality." Any county, city, borough, incorporated
17 town, township or home rule municipality affected by a plant
18 closing or a massive layoff of plant employees who are residents
19 of the municipality.
20 Section 4. Evaluation teams.
21 (a) Establishment.--The board, upon receipt of a request
22 pursuant to section 5(b) may, in its sole discretion, appoint an
23 evaluation team to assess and evaluate the affects of a plant
24 closing or massive layoffs on an applicant municipality.
25 (b) Composition of team.--Each evaluation team may be
26 composed of one or more of the following specialists:
27 (1) A business finance expert who is familiar with the
28 industry of which the plant closing or massive layoff is a
29 component.
30 (2) A public finance expert who is knowledgeable in
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1 Federal, State and local government financial programs
2 including, but not limited to, grants, loans and loan
3 guarantees.
4 (3) A management consultant with experience in analyzing
5 and correcting management problems in failing or struggling
6 businesses.
7 (4) A tax consultant.
8 (5) A labor relations expert.
9 (6) An attorney who has knowledge of worker-community
10 ownership schemes and Employee Stock Ownership Plans (ESOPs).
11 (7) An official or representative of organized labor who
12 represents the national or international organization of the
13 workers affected by the layoff or plant closing or, where the
14 workers are not organized, such an organized labor official
15 who is experienced in dealing with such conditions.
16 (c) Retention of consultants.--Whenever possible, the board
17 shall enter into consulting agreements with Commonwealth
18 residents working at or employed by Commonwealth based
19 industries, labor organizations or educational or scientific
20 institutions. Each consulting agreement may provide for the
21 payment of compensation and expenses for time actually expended
22 for the board and a small annual retainer fee.
23 (d) Duties.--The evaluation team shall be responsible to the
24 board and shall perform the following duties:
25 (1) Assess the market value and demand of the product
26 made by the plant affected by the closing or layoff.
27 (2) Assess the market value and demand for other
28 products which could be manufactured or assembled by the
29 plant affected by the closing or layoff.
30 (3) Evaluate the production costs incurred if the plant
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1 were to be operated in some cooperative context.
2 (4) Determine whether there exists in the municipality
3 and the workforce the will and capacity to create a new
4 production entity and to become competitive.
5 Section 5. Application procedures.
6 (a) Initial procedure.--A municipality affected by a plant
7 closing or a massive layoff may submit a written request to any
8 member of the General Assembly representing the affected
9 municipality.
10 (b) Application to board.--Within ten days of receipt of a
11 request pursuant to subsection (a), the member of the General
12 Assembly shall apply in writing to the board a request for the
13 appointment of an evaluation team.
14 (c) Board responsibility.--The board shall make a formal
15 determination on each application received pursuant to
16 subsection (b) within 30 days of receipt of the application.
17 Section 6. Powers and duties of board.
18 (a) Determinations.--After an affirmative determination
19 pursuant to section 5(c) and the completion of the evaluation
20 team review pursuant to section 4(d), the board may decide that
21 assistance by an evaluation team is needed, that further review
22 of the request to the board is necessary or that, there being no
23 apparent benefit from assignment of an evaluation team, the
24 request is denied. The decision of the board shall not be
25 subject to review.
26 (b) Rules and regulations.--The board may promulgate all
27 necessary rules and regulations for the implementation of this
28 act, including guidelines setting certain limits and conditions
29 in which the board determines that a request for an evaluation
30 is not warranted.
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1 Section 7. Effective date.
2 This act shall take effect immediately.
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