PRINTER'S NO. 1941
No. 1644 Session of 1991
INTRODUCED BY SALOOM, MIHALICH, LAUGHLIN, KUKOVICH, KOSINSKI,
PESCI, STISH, COLAIZZO, DeWEESE, FLICK, FEE, HALUSKA,
KASUNIC, LaGROTTA, LLOYD, PETRARCA, STEIGHNER, TANGRETTI,
TRICH, VAN HORNE, VEON, WOZNIAK, D. R. WRIGHT, GEORGE AND
LESCOVITZ, JUNE 12, 1991
REFERRED TO COMMITTEE ON APPROPRIATIONS, JUNE 12, 1991
AN ACT
1 Appropriating money from the Sunny Day Fund to the Department of
2 Commerce for various projects throughout this Commonwealth
3 for fiscal year 1991-1992.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. The sums set forth in this act, or as much
7 thereof as may be necessary, are hereby specifically
8 appropriated from the Sunny Day Fund to the Department of
9 Commerce for the fiscal year July 1, 1991, to June 30, 1992, for
10 the projects listed to enhance economic development and the
11 creation of jobs in this Commonwealth in accordance with the
12 provisions of Chapter 1 of the act of July 1, 1985 (P.L.120,
13 No.32), known as the Sunny Day Fund Act.
14 Section 2. The following amounts are appropriated to the
15 Department of Commerce to induce companies to locate large
16 industrial, manufacturing or research and development
17 enterprises within this Commonwealth:
1 (1) For the purposes of making a loan in
2 the amount of $11,500,000 to Sony Corporation
3 of America or any of its subsidiaries or
4 affiliates "Sony" for the renovation of the
5 facility leased from Pennsylvania Industrial
6 Development Authority pursuant to a lease
7 agreement dated October 31, 1990, located in
8 Mount Pleasant, Westmoreland County,
9 Pennsylvania, to establish a CTV assembly
10 plant. It is estimated that this project will
11 create a total of 1,200 new jobs within five
12 years of operation............................. $11,500,000
13 Section 3. It is the intent of the General Assembly that the
14 appropriations in section 2 shall be loaned at an annual
15 interest rate that in no case shall be less than the
16 Pennsylvania Industrial Development Authority's rate for the
17 area in which the project is located for a similar project and
18 for a term that shall be no greater than the term for an
19 equivalent Pennsylvania Industrial Development Authority
20 project. Companies which receive Sunny Day Fund assistance but
21 fail to make the investment in the enterprise development as
22 specified in section 2 shall be liable for the repayment of all
23 Sunny Day Fund moneys, including any accrued interest thereon
24 and any penalties as provided in the loan documents or as may be
25 set by the Secretary of Commerce. Companies which receive Sunny
26 Day Fund assistance but fail to create the number of jobs
27 specified in the approved loan or other agreements with the
28 Commonwealth shall be liable for a penalty equal to an increase
29 in the interest charged to 2% greater than the current prime
30 interest rate for the remainder of the loan, unless the penalty
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1 is waived by the Secretary of Commerce because the failure is
2 due to circumstances outside the control of the company. The
3 prime interest rate shall be the highest rate known or declared
4 to be prime by those banking institutions located within this
5 Commonwealth with assets in excess of $3 billion as of the date
6 the penalty is assessed. The Secretary of Commerce shall consult
7 with the Chairman of the Appropriations Committee of the Senate
8 and the Chairman of the Appropriations Committee of the House of
9 Representatives prior to the establishment of waiver of
10 penalties.
11 Section 4. For a period equal to the term of assistance
12 provided each project approved under this act, the Department of
13 Commerce shall provide a written report on the status of each
14 project to the Secretary of the Senate and the Chief Clerk of
15 the House of Representatives by June 30 of each year. This
16 report shall contain, at a minimum, information pertaining to
17 specific use of the Sunny Day Fund money, the interest rate and
18 term of the Sunny Day Fund loan, the amount of principal
19 outstanding and interest due on the loan and the number of jobs
20 created by the project. All recipients of funds under this act
21 shall be required to provide any and all information required by
22 the Department of Commerce for the purpose of this act.
23 Section 5. No funds under this act shall be awarded by the
24 Department of Commerce after June 30, 1992. Any funds from the
25 appropriation in section 2 remaining unexpended or unencumbered
26 on June 30, 1993, shall automatically lapse into the Sunny Day
27 Fund.
28 Section 6. This act shall take effect immediately.
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