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                                                      PRINTER'S NO. 3911

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2824 Session of 1998


        INTRODUCED BY DALEY, COLAIZZO, MICHLOVIC, WALKO, LAUGHLIN,
           PETRONE, M. COHEN, OLASZ, HENNESSEY, BELFANTI, ARGALL,
           HARHAI, CASORIO, STEELMAN, TRELLO, VAN HORNE, SAINATO, RAMOS,
           YOUNGBLOOD AND THOMAS, SEPTEMBER 30, 1998

        REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
           SEPTEMBER 30, 1998

                                     AN ACT

     1  Establishing the Higher Education Lodestar Partnership for
     2     Economic Revitalization (HELPER) program in the Department of
     3     Community and Economic Development; providing for the
     4     operation and administration of the HELPER program; and
     5     making an appropriation.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8  Section 1.  Short title.
     9     This act shall be known and may be cited as the HELPER Act.
    10  Section 2.  Declaration of policy.
    11     The General Assembly finds and declares as follows:
    12         (1)  The economically distressed areas of this
    13     Commonwealth often labor under multiple disadvantages in
    14     economic recovery efforts, including the out-migration of
    15     community leadership, that makes sustained economic recovery
    16     planning very difficult. Many businesses and individuals in
    17     these areas struggle simply to survive and frequently have
    18     little energy or time left over for long-range planning.

     1         (2)  To assist these communities and the entrepreneurs of
     2     this Commonwealth in identifying and realizing the economic
     3     opportunities that exist in these distressed areas, this act
     4     establishes the Higher Education Lodestar Partnership for
     5     Economic Revitalization (HELPER) program.
     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     "Department."  The Department of Community and Economic
    11  Development of the Commonwealth.
    12     "Eligible graduate student."  A student enrolled on at least
    13  a half-time basis in a program of study leading to an advanced
    14  degree who will have earned at least 24 credit hours in
    15  residence toward a degree prior to actual participation in the
    16  Higher Education Lodestar Partnership for Economic
    17  Revitalization program established in section 4 and whose
    18  educational institution has been nominated to participate in
    19  Higher Education Lodestar Partnership for Economic
    20  Revitalization.
    21     "Eligible institution."  An accredited degree-granting
    22  educational institution approved by the Commonwealth to offer
    23  degrees for advanced study beyond the baccalaureate level.
    24     "Exported."  In addition to the physical export of a salable
    25  product, includes any other activity that is a net income
    26  generator for a distressed region, including, but not limited
    27  to, tourism and increased health services to an indigenous
    28  elderly population covered by insurance programs.
    29     "HELPER."  Higher Education Lodestar Partnership for Economic
    30  Revitalization.
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     1     "HELPER project" or "project."  The three-year team study of
     2  an economically distressed area undertaken or to be undertaken
     3  by an eligible institution selected by the Department of
     4  Community and Economic Development.
     5     "Lodestar."  A star that is used as a point of reference,
     6  such as Polaris, the North Star and guiding principle, interest
     7  or ambition.
     8     "Nominated graduate student."  An eligible graduate student
     9  who has been named by the student's institution as a candidate
    10  to participate in a Higher Education Lodestar Partnership for
    11  Economic Revitalization project.
    12     "Nominated institution."  An eligible institution which has
    13  received tentative approval from the Department of Community and
    14  Economic Development for a specific Higher Education Lodestar
    15  Partnership for Economic Revitalization site and has been
    16  invited to assemble a study team from among its students and
    17  faculty.
    18     "Regular and direct participation."  More than ten hours per
    19  week, including preparation time.
    20     "Selected team member."  A nominated graduate student who has
    21  been selected by the Department of Community and Economic
    22  Development to participate as a member of a Higher Education
    23  Lodestar Partnership for Economic Revitalization team and who
    24  commits to team participation for a minimum of one year.
    25     "Small business."  A sole proprietorship that has fewer than
    26  50 full-time equivalent employees.
    27  Section 4.  HELPER program established.
    28     (a)  Establishment.--There is established a program within
    29  the department to be known as the Higher Education Lodestar
    30  Partnership for Economic Revitalization (HELPER) program.
    19980H2824B3911                  - 3 -

     1     (b)  Applications.--The department shall solicit and accept
     2  applications at least once every three years from eligible
     3  institutions to participate in the HELPER program. Each
     4  applicant shall identify a faculty member who will serve as the
     5  institution's team coordinator for the three-year study period.
     6  The team coordinator shall contribute the number of hours
     7  equivalent to a half-time faculty position to the HELPER
     8  project. The applicant shall identify an additional array of
     9  faculty members whose combined commitment to the project shall
    10  equal no less than another half-time faculty position.
    11     (c)  Team coordinator.--The regular educational workload of a
    12  team coordinator shall reflect the half-time commitment to the
    13  HELPER project. During the three-year period of the team study,
    14  the team coordinator shall maintain no other substantial
    15  employment or business interest, other than investments,
    16  requiring the coordinator's regular and direct participation.
    17     (d)  Other faculty members.--There shall be no fewer than
    18  three faculty members, including the team coordinator, committed
    19  to participation on a HELPER project from each applicant
    20  institution.
    21     (e)  Number of teams.--The department shall seek to create a
    22  total of eight teams of ten students each. For administrative
    23  convenience, four teams may be started in the first year of the
    24  program and four teams in the second year.
    25     (f)  Notice of study sites and deadline for applications.--No
    26  later than the announcement of the solicitation for applications
    27  from eligible institutions, the department shall issue a list of
    28  economically distressed areas as potential study sites for
    29  HELPER teams. The deadline for applications after the initial
    30  request for proposals shall be six months.
    19980H2824B3911                  - 4 -

     1  Section 5.  Review of applications and selection by department.
     2     (a)  Matching institutions with sites.--An applicant
     3  institution shall evaluate the list of eligible sites provided
     4  by the department and, in its application, identify the site or
     5  sites for which the institution could provide strong economic
     6  development planning services based on the matrix of
     7  institutional programs of study and potential resources in the
     8  various HELPER sites. Upon consultation with a potential
     9  awardee, the department may award a study site to an applicant
    10  which is not addressed in its applications, based on the sole
    11  judgment of the department on the variety of applicants,
    12  suitability and institutional strengths.
    13     (b)  Approval of institutions.--The department shall grant
    14  tentative approval to selected eligible institutions prior to
    15  making a final determination on team awards. The institution
    16  shall then assemble a study team from among its students and
    17  faculty. Final approval of the institution's application shall
    18  be granted after a team acceptable to the department has been
    19  assembled. The department, using regular news media outlets,
    20  shall publicize the basis for the final decisions on team
    21  awards.
    22     (c)  Evaluation criteria.--In evaluating the institutional
    23  HELPER applications, the department shall give reasonable weight
    24  to the strength of academic programs in each institution, the
    25  ability of its graduate students and the proximity of the
    26  institution to the HELPER site. Proximity, however, shall not be
    27  a controlling consideration.
    28     (d)  Selection of graduate students.--Eligible graduate
    29  students shall be selected by the department after the nominated
    30  institution names at least two eligible graduate students for
    19980H2824B3911                  - 5 -

     1  departmental consideration for each team slot. Nominated
     2  institutions may nominate their graduate student candidates by
     3  any process approved internally by the university or college
     4  administration.
     5     (e)  Interview with department official.--Nominated graduate
     6  students shall not be selected for team participation by the
     7  department without a personal interview with the department
     8  official in charge of team selection. All nominated students
     9  shall be afforded an interview.
    10  Section 6.  HELPER program description.
    11     (a)  Work plan.--The methods chosen by each team to
    12  accomplish the three phases of the HELPER project set forth in
    13  this section shall be described in a work plan prior to
    14  beginning each phase. The work plan shall be submitted to the
    15  department. The department may respond to the work plan with
    16  suggestions or questions, which the team shall answer. The final
    17  decision on work plan and method shall remain with the team.
    18     (b)  Team assembly.--Teams shall be assembled by nominated
    19  institutions with a view to bringing to bear the best academic
    20  talent that the institution has within its strongest, relevant
    21  programs which may include, but are not limited to, the areas of
    22  physical or biological sciences, business management and
    23  marketing. Team members may be offered one-year or multi-year
    24  membership on a team as determined by institutional policy.
    25     (c)  Phase I.--In Phase I of the HELPER program for a
    26  specific site, the HELPER team assigned to the distressed area
    27  shall identify in substantial detail the existing natural,
    28  institutional, cultural and human resources that may lend
    29  themselves to the development of products or services that can
    30  be exported from the distressed region. This examination shall
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     1  specifically include an inventory of past industries and income
     2  generators for the local economy over at least the preceding 100
     3  years. This inventory shall be shared with local residents to
     4  solicit comment on the items included and to point out possible
     5  additions. A Phase I report shall be compiled and printed in
     6  draft form.
     7     (d)  Phase II.--In Phase II, the team shall evaluate the
     8  viability of each of the resources or ideas identified in Phase
     9  I, including all historical industries and income generators.
    10  Those that are rejected as not feasible shall be accompanied by
    11  a rigorous, detailed analysis of the relevant regional, national
    12  and international markets. A Phase II report shall be compiled
    13  and printed in draft form.
    14     (e)  Phase III.--In Phase III, the team shall develop
    15  detailed strategies for pursuing the best chance opportunities
    16  identified in Phase II and shall begin marketing those
    17  opportunities to the appropriate regional and national
    18  investment communities outside the distressed area as well as
    19  providing access to those opportunities for the residents of the
    20  distressed area. Team strategies shall focus, in general, on
    21  small business opportunities inasmuch as these are the most
    22  likely to actually occur. A report shall be drafted in the final
    23  quarter of the last year of the project summarizing the key
    24  elements of the draft reports for Phases I and II and setting
    25  forth the status of activities during the third year. The final
    26  report shall be printed and disseminated to:
    27         (1)  The department.
    28         (2)  The majority and minority chairs of the Community
    29     and Economic Development Committee of the Senate and the
    30     Commerce and Economic Development Committee of the House of
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     1     Representatives.
     2         (3)  County commissioners, municipal officials and State
     3     legislators serving the distressed area.
     4         (4)  Local libraries.
     5         (5)  Economic development entities within the distressed
     6     area.
     7         (6)  Persons and institutions external to the distressed
     8     area that may provide access, in the department's judgment,
     9     to potential investors in the plans developed.
    10     (f)  Marketing efforts.--The department shall publicize the
    11  availability of plans and opportunities identified in the final
    12  report through its various marketing efforts on behalf of the
    13  Commonwealth, including Internet communications.
    14  Section 7.  Costs and stipends.
    15     (a)  Team member stipends.--Each selected team member shall
    16  receive a stipend of $12,000 annually, paid by the institution
    17  in monthly increments. The Pennsylvania Higher Education
    18  Assistance Agency shall not treat this stipend as income
    19  calculating eligibility for financial assistance of any kind.
    20  Team members shall work on the HELPER project at least 20 hours
    21  every week for 48 weeks of the program year. They shall be
    22  afforded sick leave benefits in accord with applicable
    23  university or college policy.
    24     (b)  Employment limited.--A selected team member may have no
    25  regular and direct participation in any other employment or
    26  business, other than coursework, during the period of team
    27  membership. A team member may enroll for no more than 15
    28  semester hours of credit.
    29     (c)  Early withdrawal.--Early withdrawal from the team,
    30  unless at the request of the sponsoring institution, shall
    19980H2824B3911                  - 8 -

     1  convert the stipend paid and received by a selected team member
     2  into a ten-year educational loan repayable at no interest to the
     3  Commonwealth.
     4     (d)  Grant to institution.--Each sponsoring institution shall
     5  receive a grant of 25% of the total stipends paid to team
     6  members each year from which it shall pay necessary employer
     7  taxes and team overhead. The sponsoring institution shall be
     8  responsible for providing secretarial support, office space,
     9  telephone and computer equipment and services and supplies for
    10  the team and travel, meals and lodging expenses for the team's
    11  faculty members. An allowance of 10% of the total stipend grant
    12  shall be available as a vouchered account for travel, meals and
    13  lodging expenses of the student team members.
    14  Section 8.  Initial implementation.
    15     The department shall implement the HELPER program so that the
    16  first study teams shall begin their work no later than May 1,
    17  1999.
    18  Section 9.  Regulations.
    19     The department is authorized to adopt regulations necessary
    20  to implement and administer the HELPER program.
    21  Section 10.  Appropriation.
    22     The sum of $1,500,000, or as much thereof as may be
    23  necessary, is hereby appropriated to the Department of Community
    24  and Economic Development for the fiscal year July 1, 1998, to
    25  June 30, 1999, to carry out the provisions of this act.
    26  Section 11.  Severability.
    27     The provisions of this act are severable. If any provision of
    28  this act or its application to any person or circumstance is
    29  held invalid, the invalidity shall not affect other provisions
    30  or applications of this act which can be given effect without
    19980H2824B3911                  - 9 -

     1  the invalid provision or application.
     2  Section 12.  Effective date.
     3     This act shall take effect immediately.


















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