SENATE AMENDED
PRIOR PRINTER'S NOS. 69, 550, 3683 PRINTER'S NO. 3791
No. 62 Session of 1989
INTRODUCED BY KUKOVICH, MANDERINO, ITKIN, FEE, DOMBROWSKI,
LETTERMAN, STUBAN, D. W. SNYDER, MORRIS, LaGROTTA, TRELLO,
PRESSMANN, HALUSKA, RYBAK, JOSEPHS, LAUGHLIN, MRKONIC, COY,
MAIALE, JAROLIN, ARGALL, DEMPSEY, TIGUE, HERMAN, BURD,
ROBINSON, COWELL, DIETTERICK, LEVDANSKY, BELFANTI, LASHINGER,
TANGRETTI, MARKOSEK, DeLUCA, McHALE, TRICH, WAMBACH, BLAUM,
RITTER, DALEY, MILLER, ANGSTADT, CAWLEY, REBER, GRUITZA,
KAISER, FREEMAN, E. Z. TAYLOR, McCALL, CARLSON, GIGLIOTTI,
PRESTON, PISTELLA, KASUNIC, HARPER, COLAFELLA, RAYMOND,
BELARDI, SERAFINI, BISHOP, ACOSTA AND BROUJOS,
JANUARY 23, 1989
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 20, 1990
AN ACT
1 Amending the act of July 1, 1985 (P.L.120, No.32), entitled "An
2 act creating a special fund in the Treasury Department for
3 use in attracting major industry into this Commonwealth;
4 establishing a procedure for the appropriation and use of
5 moneys in the fund; establishing the Tax Stabilization
6 Reserve Fund; and providing for expenditures from such
7 account," extending the use of the Sunny Day Fund moneys to <--
8 job retention FURTHER PROVIDING FOR THE DISPOSITION OF MONEYS <--
9 AVAILABLE IN THE TAX STABILIZATION RESERVE FUND.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Sections 102 and 104(b) SECTION SECTIONS 202 AND <--
13 205 of the act of July 1, 1985 (P.L.120, No.32), entitled "An
14 act creating a special fund in the Treasury Department for use
15 in attracting major industry into this Commonwealth;
16 establishing a procedure for the appropriation and use of moneys
1 in the fund; establishing the Tax Stabilization Reserve Fund;
2 and providing for expenditures from such account," are IS ARE <--
3 amended to read:
4 Section 102. Findings and declaration of policy. <--
5 (a) Findings.--It is hereby determined and declared as a
6 matter of legislative finding and intent:
7 (1) That involuntary unemployment and its resulting
8 burden of indigency falls with crushing force upon the
9 unemployed worker and upon counties, cities, boroughs and
10 other local governmental jurisdictions, reducing their tax
11 base and impairing their financial ability to support
12 education and other governmental services.
13 (2) That the problem of unemployment, and its
14 debilitating effects, has not been eliminated since the
15 increased level of the economy has not fully reached all
16 areas of this Commonwealth, nor has the economy of this
17 Commonwealth as a whole reached the level of the national
18 economy.
19 (3) That the present and prospective health, safety,
20 morals, opportunity for gainful employment and general
21 welfare of the people of this Commonwealth makes desirable,
22 as a public purpose, the promotion and development of large
23 new industrial, manufacturing or research and development
24 enterprises.
25 (4) That while the Commonwealth has recently put in
26 place the best set of programs for small business available
27 in any state, there may not be programs available which
28 have enough resources available to attract firms with large
29 numbers of new jobs available or to retain firms with jobs.
30 (b) Declaration of policy.--It is, therefore, declared to be
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1 the policy of the Commonwealth to promote the health, safety,
2 morals, right to gainful employment and general welfare of the
3 inhabitants by the creation of a special account in the Treasury
4 Department, to be known as the Sunny Day Fund, which shall exist
5 for the public purpose of alleviating unemployment by attracting
6 large industrial, manufacturing or research and development
7 plants or retaining industrial, manufacturing or research and
8 development plants into this Commonwealth.
9 Section 104. Operation of fund.
10 * * *
11 (b) Use of funds.--Moneys in the fund shall be available to
12 the Governor and the Department of Commerce in their efforts to
13 attract or retain industrial, manufacturing or research and
14 development enterprises to this Commonwealth, upon approval of
15 an appropriation bill by a vote of two-thirds of the members
16 elected to the Senate and the House of Representatives. Whenever
17 the Governor determines that money from this fund is necessary
18 to attract or retain a major enterprise to this Commonwealth, he
19 shall present a request for an appropriation, along with the
20 specifics of the total proposal and such suggested ancillary and
21 substantive legislation as may be necessary, to the chairmen of
22 the House and Senate Appropriations Committees. The General
23 Assembly may then appropriate money from the fund in the manner
24 it determines necessary to accomplish the purposes set forth in
25 the Governor's proposal. Any money appropriated according to
26 this section which is then lapsed shall return to the fund.
27 Section 2. This act shall take effect immediately.
28 SECTION 202. LEGISLATIVE FINDINGS AND CONCLUSIONS. <--
29 (A) FINDINGS.--THE GENERAL ASSEMBLY OF THE COMMONWEALTH
30 HEREBY FINDS THAT:
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1 (1) ECONOMIC UNCERTAINTY ARISING FROM NATIONAL AND
2 INTERNATIONAL EVENTS OVER WHICH THE COMMONWEALTH CANNOT
3 EXERCISE CONTROL IMPAIRS THE ABILITY OF THE COMMONWEALTH TO
4 ACCURATELY PREDICT ITS ANTICIPATED REVENUES AND EXPENDITURES.
5 (2) OVERESTIMATES OF REVENUES AND UNDERESTIMATES OF
6 EXPENDITURES CAN CREATE SERIOUS SHORT-TERM DEFICITS WHICH
7 GENERATE THE NEED FOR DEFICIENCY APPROPRIATIONS AND TAX
8 INCREASES.
9 (3) FINANCING SHORT-TERM DEFICITS CREATED BY ECONOMIC
10 UNCERTAINTY IN THE PAST HAS LED TO EXCESSIVE TAX INCREASES
11 AND ERRATIC CHANGES IN TAX RATES AND POLICIES WHICH IMPAIRED
12 THE ATTRACTIVENESS OF THIS COMMONWEALTH AS A LOCATION FOR JOB
13 CREATION AND BUSINESS EXPANSION.
14 (4) RECURRING DEFICITS OCCURRING DURING ECONOMIC
15 DOWNTURNS CAN DAMAGE THE CREDITWORTHINESS OF THE COMMONWEALTH
16 AND INCREASE THE COST OF BORROWING FOR ESSENTIAL CAPITAL
17 PROJECTS.
18 (5) THE NEED TO COPE WITH PROBLEMS ARISING FROM THE
19 EFFECT OF ECONOMIC UNCERTAINTY HAS OFTEN CAUSED LENGTHY
20 DELAYS IN ADOPTING A BUDGET FOR THE COMMONWEALTH, CAUSED
21 CUTOFFS OF VITAL PUBLIC PROGRAMS AND ENDANGERED THE STABILITY
22 AND RELIABILITY OF VITAL PUBLIC SERVICES AND PROGRAMS.
23 (6) THE ECONOMY OF THE COMMONWEALTH WILL, IN THE LONG
24 RUN, BENEFIT FROM PROGRAMS DESIGNED TO ADDRESS PRESSING
25 SOCIAL AND EDUCATIONAL PROBLEMS.
26 (B) CONCLUSIONS.--THEREFORE, THE GENERAL ASSEMBLY CONCLUDES
27 THAT IT IS A VALID AND PROPER PUBLIC FUNCTION TO SET ASIDE A
28 PORTION OF COMMONWEALTH REVENUES INTO A TAX STABILIZATION
29 RESERVE FUND IN ORDER TO MINIMIZE FUTURE REVENUE SHORTFALLS AND
30 DEFICITS, PROVIDE GREATER CONTINUITY AND PREDICTABILITY IN THE
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1 FUNDING OF VITAL GOVERNMENT SERVICES AND MINIMIZE THE NEED TO
2 INCREASE TAXES TO BALANCE THE BUDGET OF THE COMMONWEALTH DURING
3 PERIODS OF ECONOMIC DISTRESS AND IN ORDER TO PROVIDE FUNDS FOR
4 NEEDED ECONOMIC AND SOCIAL PROGRAMS.
5 SECTION 205. DISPOSITION OF FUNDS. <--
6 (A) APPROPRIATION.--
7 (1) WHENEVER THE GOVERNOR DETERMINES THAT MONEYS FROM
8 THIS FUND ARE NECESSARY TO MEET EMERGENCIES INVOLVING THE
9 HEALTH, SAFETY OR WELFARE OF THE CITIZENS OF THIS
10 COMMONWEALTH OR TO COUNTERBALANCE DOWNTURNS OF THE ECONOMY
11 WHICH RESULT IN SIGNIFICANT UNANTICIPATED REVENUE SHORTFALLS,
12 HE SHALL PRESENT A REQUEST FOR AN APPROPRIATION ALONG WITH
13 THE SPECIFICS OF THE PROPOSAL AND SUCH SUGGESTED ANCILLARY
14 AND SUBSTANTIVE LEGISLATION AS MAY BE NECESSARY TO THE
15 CHAIRMEN OF THE SENATE AND HOUSE APPROPRIATIONS COMMITTEES.
16 THE GENERAL ASSEMBLY MAY THEN THROUGH APPROVAL OF A SEPARATE
17 APPROPRIATION BILL BY A VOTE OF TWO-THIRDS OF THE MEMBERS
18 ELECTED TO THE SENATE AND THE HOUSE OF REPRESENTATIVES
19 APPROPRIATE MONEY FROM THE FUND TO MEET THE NEEDS IDENTIFIED
20 IN THE GOVERNOR'S PROPOSAL. ANY MONEY APPROPRIATED ACCORDING
21 TO THIS SECTION WHICH HAS THEN LAPSED SHALL BE RETURNED TO
22 THE FUND.
23 (2) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1), <--
24 WHENEVER THE ACTUAL REVENUES DEPOSITED INTO THE GENERAL FUND
25 ARE LESS THAN 98.5% OF THE CERTIFIED REVENUE ESTIMATE IN A
26 GIVEN FISCAL YEAR, THE MONEYS REMAINING IN THE TAX
27 STABILIZATION RESERVE FUND, OR THE AMOUNT OF THE REVENUE
28 SHORTFALL, WHICHEVER IS LESS, ARE HEREBY APPROPRIATED TO THE
29 STATE TREASURER FOR DEPOSIT INTO THE GENERAL FUND TO HELP
30 OFFSET THE REVENUE SHORTFALL.
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1 (2) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1)
2 THE MONEYS IN THE TAX STABILIZATION RESERVE FUND SHALL BE
3 USED TO FUND THE FOLLOWING PROGRAMS:
4 (A) PROGRAMS TO COMBAT SUBSTANCE ABUSE.
5 (B) AIDS EDUCATION AND TREATMENT PROGRAM.
6 (C) PROGRAMS TO PROVIDE ASSISTANCE TO HOMELESS
7 PERSONS.
8 (D) SPECIAL EDUCATION PROGRAMS.
9 (E) MENTAL HEALTH AND MENTAL RETARDATION
10 PROGRAMS.
11 (F) CHILDREN AND YOUTH SERVICES PROGRAMS.
12 (II) THE DEPARTMENT OF PUBLIC WELFARE, IN
13 COOPERATION WITH THE DEPARTMENT OF LABOR AND INDUSTRY,
14 DEPARTMENT OF COMMUNITY AFFAIRS AND DEPARTMENT OF
15 EDUCATION SHALL FORMULATE A PLAN TO IMPLEMENT AND FUND
16 THE PROGRAMS DESCRIBED IN SUBPARAGRAPH (I). THE
17 DEPARTMENT OF PUBLIC WELFARE SHALL SUBMIT THE PLAN TO THE
18 GOVERNOR AND THE GENERAL ASSEMBLY WITHIN 90 DAYS OF THE
19 EFFECTIVE DATE OF THIS AMENDATORY ACT.
20 (B) PURPOSE.--IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT
21 THESE FUNDS BE APPROPRIATED [ONLY WHEN THE EMERGENCY OR DOWNTURN <--
22 IN THE ECONOMY CANNOT BE DEALT WITH THROUGH THE NORMAL BUDGET
23 PROCESS OR THE REVENUES DEPOSITED INTO THE GENERAL FUND FALL <--
24 BELOW THE CERTIFIED REVENUE ESTIMATE AND THAT THE MONEYS IN THE
25 TAX STABILIZATION RESERVE FUND NOT BE USED TO BEGIN NEW PROGRAMS
26 BUT PROVIDE FOR THE CONTINUATION OF VITAL PUBLIC PROGRAMS IN
27 DANGER OF BEING CUT OFF DUE TO FINANCIAL PROBLEMS RESULTING FROM
28 THE ECONOMY] TO IMPLEMENT PROGRAMS DESIGNED TO ADDRESS PRESSING <--
29 SOCIAL AND EDUCATIONAL PROBLEMS.
30 SECTION 2. THIS ACT SHALL APPLY TO THE FISCAL YEAR BEGINNING
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1 JULY 1, 1989, AND TO EACH FISCAL YEAR THEREAFTER.
2 SECTION 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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