HOUSE AMENDED
PRIOR PRINTER'S NO. 937 PRINTER'S NO. 1391
No. 778 Session of 2003
INTRODUCED BY D. WHITE, KITCHEN, O'PAKE, MUSTO, ERICKSON,
WAGNER, COSTA, PUNT, ORIE, C. WILLIAMS, KUKOVICH, M. WHITE,
BOSCOLA, SCHWARTZ, WAUGH, SCARNATI, MELLOW, ROBBINS, LEMMOND,
PILEGGI, TARTAGLIONE, WONDERLING, WOZNIAK, KASUNIC, DENT AND
FERLO, JUNE 6, 2003
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
FEBRUARY 9, 2004
AN ACT
1 Amending the act of June 29, 1996 (P.L.434, No.67), entitled, as <--
2 amended, "An act to enhance job creation and economic
3 development by providing for an annual financing strategy,
4 for opportunity grants, for job creation tax credits, for
5 small business assistance, for the Small Business Advocacy
6 Council, for a family savings program, for industrial
7 development assistance, for community development bank grants
8 and loans and for tax-exempt bond allocation; conferring
9 powers and duties on various administrative agencies and
10 authorities; further providing for various funds; and making
11 repeals," providing for keystone innovation zones.
12 AMENDING TITLE 12 (COMMERCE AND TRADE) OF THE PENNSYLVANIA <--
13 CONSOLIDATED STATUTES, CODIFYING PORTIONS OF THE JOB
14 ENHANCEMENT ACT; FURTHER PROVIDING FOR CONTRACT REQUIREMENTS,
15 FOR GUIDELINES, FOR ADMINISTRATION AND FOR APPLICATION AND
16 REVIEW REQUIREMENTS; PROVIDING FOR KEYSTONE INNOVATION ZONES;
17 AND MAKING REPEALS RELATING TO THE JOB ENHANCEMENT ACT.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. The act of June 29, 1996 (P.L.434, No.67), known <--
21 as the Job Enhancement Act, is amended by adding a chapter to
22 read:
23 CHAPTER 19
1 KEYSTONE INNOVATION ZONES
2 Section 1901. Definitions.
3 The following words and phrases when used in this chapter
4 shall have the meanings given to them in this section unless the
5 context clearly indicates otherwise:
6 "Eligible property." Real property which is located within
7 five miles radius of an institution of higher education.
8 "Institution of higher education." Any public or private
9 institution within this Commonwealth authorized by the
10 Department of Education to grant an associate degree or higher
11 academic degree.
12 "Keystone innovation zone." A clearly defined geographic
13 area comprised of eligible property designated by the
14 department.
15 "Qualified employer." An entity that meets all of the
16 following:
17 (1) Is located within a keystone innovation zone.
18 (2) Employs three or more individuals within the
19 keystone innovation zone.
20 (3) Has been in operation seven years or less.
21 Section 1902. Keystone innovation zones.
22 (a) Establishment.--There is hereby established within the
23 department a keystone innovation zones program for the purpose
24 of increasing economic development in areas surrounding
25 institutions of higher education.
26 (b) Application.--On or before January 1, 2006, an
27 institution of higher education may submit to the department an
28 application to establish a keystone innovation zone. The
29 application shall be on a form provided by the department and
30 shall include all of the following:
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1 (1) A list of eligible property which is to be included
2 in the keystone innovation zone.
3 (2) The name and address of the keystone innovation
4 zone.
5 (3) The name and address of the coordinator or executive
6 director of the keystone innovation zone.
7 (4) Such other information as the department may
8 require.
9 (c) Review and designation.--The department shall review the
10 application. Upon being satisfied that the application is
11 complete and accurate, the department shall approve the
12 application, and the secretary shall designate the property as a
13 keystone innovation zone.
14 Section 1903. Assistance.
15 (a) Existing programs.--A qualified employer shall be given
16 priority consideration in applying for assistance under any
17 program established by this act, the act of May 17, 1956 (1955
18 P.L.1609, No.537), known as the Pennsylvania Industrial
19 Development Authority Act, the act of August 23, 1967 (P.L.251,
20 No.102), known as the Economic Development Financing Law, the
21 act of June 22, 2001 (P.L.569, No.38), known as The Ben Franklin
22 Technology Development Authority Act, or the act of June 26,
23 2001 (P.L.755, No.77), known as the Tobacco Settlement Act.
24 (b) Loans.--A qualified employer with a project approved for
25 financing under this act or by the Pennsylvania Industrial
26 Development Authority shall receive the lowest interest rate
27 extended to borrowers.
28 (c) Grants.--The department may provide a one-time $250,000
29 grant to a keystone innovation zone in order to establish and
30 implement the zone. The grant shall be drawn down as needed over
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1 a period not to exceed the first five years of authorization as
2 a keystone innovation zone. Grant recipients shall comply with
3 the provisions of the grant.
4 Section 1904. Expansion subzone designation.
5 (a) Establishment.--Notwithstanding sections 301.1, 303 and
6 304 of the act of October 6, 1998 (P.L.705, No.92), known as the
7 Keystone Opportunity Zone and Keystone Opportunity Expansion
8 Zone Act, and within one year of being designated a keystone
9 innovation zone under this chapter, a keystone innovation zone
10 may apply to the department to be designated as an expansion
11 subzone under the Keystone Opportunity Zone and Keystone
12 Opportunity Expansion Zone Act. The application shall be on a
13 form provided by the department. In addition to the completed
14 application, the keystone innovation zone shall submit a copy of
15 an ordinance, resolution or other required action from the
16 governing body of each of the political subdivisions located
17 within the keystone innovation zone which exempts or provides
18 the deductions, abatements or credits required by Chapter 7 of
19 the Keystone Opportunity Zone and Keystone Opportunity Expansion
20 Zone Act to qualified persons and qualified businesses within
21 the keystone innovation zone as those terms are used within that
22 act. The department shall approve the application and designate
23 the property located within the keystone innovation zone as an
24 expansion subzone for the period beginning on the date of
25 designation and ending on December 31, 2013. Qualified persons
26 and qualified businesses within the expansion subzone shall be
27 entitled to the State tax exemptions, deductions, abatements or
28 credits set forth in Chapter 7 of the Keystone Opportunity Zone
29 and Keystone Opportunity Expansion Zone Act and the local tax
30 exemptions, deductions, abatements or credits set forth in
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1 Chapter 9 of the Keystone Opportunity Zone and Keystone
2 Opportunity Expansion Zone Act, for the period for which the
3 expansion subzone has been designated.
4 (b) Construction.--A keystone innovation zone designated an
5 expansion subzone under this section shall be subject to the
6 requirements of the Keystone Opportunity Zone and Keystone
7 Opportunity Expansion Zone Act.
8 Section 2. This act shall take effect immediately.
9 SECTION 1. THE GENERAL ASSEMBLY FINDS AND DECLARES AS <--
10 FOLLOWS:
11 (1) AN ECONOMIC STIMULUS PROGRAM WHICH PROVIDES DIRECT
12 IMMEDIATE ECONOMIC ASSISTANCE TO PENNSYLVANIA BUSINESSES,
13 INDUSTRIES, COMMUNITIES, THEIR INSTRUMENTALITIES AND ECONOMIC
14 DEVELOPMENT ORGANIZATIONS IS NECESSARY FOR THE PRESERVATION
15 AND CREATION OF JOBS WITHIN THIS COMMONWEALTH.
16 (2) BY TARGETING GRANT AND LOAN ASSISTANCE TO THESE
17 ENTITIES FOR JOB CREATION AND SITE DEVELOPMENT, THE
18 COMMONWEALTH WILL TRIGGER NEEDED REDEVELOPMENT AND ECONOMIC
19 GROWTH WITHIN THIS COMMONWEALTH.
20 (3) BY TARGETING ASSISTANCE TO THE GREATEST EXTENT
21 POSSIBLE TO PREVIOUSLY USED SITES, THE COMMONWEALTH CAN
22 FOSTER THE REDEVELOPMENT OF OLDER COMMUNITIES, THE REUSE OF
23 INDUSTRIAL BROWNFIELD SITES AND THE PROTECTION OF OPEN SPACE,
24 WHILE ENCOURAGING MORE EFFICIENT AND EFFECTIVE USE OF
25 EXISTING ENVIRONMENTAL INFRASTRUCTURE, IMPROVING THE
26 ENVIRONMENT AND PROTECTING THE GENERAL PUBLIC HEALTH AND
27 SAFETY.
28 (4) BY EXPANDING TAX-BASED FINANCING OF ECONOMIC
29 DEVELOPMENT PROJECTS, THE COMMONWEALTH WILL ASSIST
30 COMMUNITIES IN RETAINING AND RECRUITING EMPLOYERS TO THIS
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1 COMMONWEALTH.
2 (5) BY TARGETING GRANT AND LOAN ASSISTANCE TO THE
3 TOURISM AND AGRICULTURE SECTORS OF THE COMMONWEALTH'S
4 ECONOMY, THE COMMONWEALTH WILL PROVIDE ADDITIONAL FINANCIAL
5 SUPPORT TO THOSE LEADING COMMONWEALTH INDUSTRIES HARD HIT BY
6 WORLD EVENTS AND ECONOMIC INSTABILITY.
7 (6) BY TARGETING CAPITAL INVESTMENT TO EMERGING AND
8 GROWTH SECTOR BUSINESS, THE COMMONWEALTH WILL STIMULATE THE
9 GROWTH AND INCREASE THE STABILITY OF BUSINESSES WITHIN THIS
10 COMMONWEALTH.
11 (7) BY PREPARING COMMUNITIES WITHIN THIS COMMONWEALTH
12 FOR THE FEDERAL BASE REALIGNMENT AND CLOSURE (BRAC) PROCESS,
13 THE COMMONWEALTH WILL INCREASE THE NUMBER OF EXISTING JOBS IT
14 RETAINS DURING THE NEXT ROUND OF FEDERAL BASE REALIGNMENT AND
15 CLOSURES.
16 SECTION 2. TITLE 12 OF THE PENNSYLVANIA CONSOLIDATED
17 STATUTES IS AMENDED BY ADDING PARTS TO READ:
18 PART I
19 GENERAL PROVISIONS
20 CHAPTER
21 1. PRELIMINARY PROVISIONS
22 3. ECONOMIC DEVELOPMENT FINANCING STRATEGY
23 5. SMALL BUSINESS COUNCIL
24 7. TAX-EXEMPT BOND ALLOCATION (RESERVED)
25 CHAPTER 1
26 PRELIMINARY PROVISIONS
27 SEC.
28 101. DEFINITIONS.
29 § 101. DEFINITIONS.
30 SUBJECT TO ADDITIONAL DEFINITIONS CONTAINED IN SUBSEQUENT
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1 PROVISIONS OF THIS TITLE WHICH ARE APPLICABLE TO SPECIFIC
2 PROVISIONS OF THIS TITLE, THE FOLLOWING WORDS AND PHRASES WHEN
3 USED IN THIS TITLE SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
4 SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
5 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
6 DEVELOPMENT OF THE COMMONWEALTH.
7 "SECRETARY." THE SECRETARY OF COMMUNITY AND ECONOMIC
8 DEVELOPMENT.
9 CHAPTER 3
10 ECONOMIC DEVELOPMENT FINANCING STRATEGY
11 SEC.
12 301. SCOPE.
13 302. DEFINITIONS.
14 303. DEVELOPMENT.
15 304. OVERSIGHT.
16 § 301. SCOPE.
17 THIS CHAPTER RELATES TO THE DEVELOPMENT OF AN ANNUAL ECONOMIC
18 DEVELOPMENT FINANCING STRATEGY.
19 § 302. DEFINITIONS.
20 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
21 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
22 CONTEXT CLEARLY INDICATES OTHERWISE:
23 "ECONOMIC DEVELOPMENT PROGRAM." A PROGRAM WHICH IS
24 ADMINISTERED BY THE DEPARTMENT, INCLUDING PROGRAMS ADMINISTERED
25 OR STAFFED BY THE DEPARTMENT, AND WHICH PROVIDES FINANCIAL
26 ASSISTANCE FOR ECONOMIC DEVELOPMENT TO PERSONS. THE TERM
27 INCLUDES ALL OF THE FOLLOWING:
28 (1) ANY PROGRAM CREATED UNDER PART III (RELATING TO
29 ECONOMIC DEVELOPMENT PROGRAMS).
30 (2) ANY PROGRAM OF AN ENTITY CREATED UNDER PART IV
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1 (RELATING TO ECONOMIC DEVELOPMENT FINANCING).
2 (3) THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY.
3 (4) THE PENNSYLVANIA MINORITY BUSINESS DEVELOPMENT
4 AUTHORITY.
5 (5) THE INFRASTRUCTURE DEVELOPMENT PROGRAM.
6 (6) THE INDUSTRIAL SITES REUSE PROGRAM.
7 (7) THE TAX CREDIT PROGRAMS ESTABLISHED IN ARTICLES
8 XVII-B AND XVIII-B OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2),
9 KNOWN AS THE TAX REFORM CODE OF 1971.
10 § 303. DEVELOPMENT.
11 THE DEPARTMENT SHALL ANNUALLY DEVELOP A REPORT CONTAINING A
12 FINANCING STRATEGY FOR ECONOMIC DEVELOPMENT WITHIN THIS
13 COMMONWEALTH. IN DEVELOPING THE REPORT, THE DEPARTMENT SHALL
14 GATHER INPUT AND RECOMMENDATIONS FROM BUSINESSES, COMMUNITY
15 LEADERS AND ORGANIZATIONS, LEGISLATORS AND PRIVATE CITIZENS. THE
16 REPORT SHALL INCLUDE ALL OF THE FOLLOWING:
17 (1) A FINANCIAL AUDIT OR STATEMENT OF OPERATIONS FOR
18 EACH ECONOMIC DEVELOPMENT PROGRAM.
19 (2) A NARRATIVE DESCRIPTION OF ACCOMPLISHMENTS FOR EACH
20 ECONOMIC DEVELOPMENT PROGRAM DURING THE PRECEDING FISCAL
21 YEAR.
22 (3) A DETAILED DESCRIPTION OF THE PARAMETERS OF
23 OPERATION FOR THE ECONOMIC DEVELOPMENT PROGRAMS DURING THE
24 UPCOMING FISCAL YEAR. THE DESCRIPTION SHALL INCLUDE THE TERMS
25 AND CONDITIONS UNDER WHICH THE ECONOMIC DEVELOPMENT PROGRAMS
26 SHALL BE ADMINISTERED.
27 (4) A DESCRIPTION OF THE PERFORMANCE MEASUREMENTS AND
28 ACCOUNTABILITY FACTORS TO BE APPLIED AND THE PERFORMANCE
29 TARGETS OR GOALS TO BE MET FOR EACH ECONOMIC DEVELOPMENT
30 PROGRAM.
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1 (5) A DESCRIPTION OF LONG-RANGE PLANNING FOR THE
2 ECONOMIC DEVELOPMENT PROGRAMS THROUGH THE NEXT FIVE FISCAL
3 YEARS.
4 (6) A LIST OF THE LOANS, GRANTS OR CREDITS APPROVED FOR
5 THE ECONOMIC DEVELOPMENT PROGRAMS DURING THE FISCAL YEAR. THE
6 LIST SHALL INCLUDE A BRIEF DESCRIPTION OF AND DETAILS
7 REGARDING EACH LOAN, GRANT OR CREDIT APPROVED, INCLUDING
8 PENALTIES IMPOSED BY THE DEPARTMENT.
9 (7) A REVIEW OF PENDING PROJECTS.
10 § 304. OVERSIGHT.
11 CONCURRENT WITH THE SUBMISSION OF THE GOVERNOR'S ANNUAL
12 BUDGET MESSAGE, THE DEPARTMENT SHALL SUBMIT THE REPORT REQUIRED
13 BY THIS CHAPTER TO ALL OF THE FOLLOWING:
14 (1) THE SECRETARY OF THE SENATE.
15 (2) THE CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF
16 THE SENATE.
17 (3) THE CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES.
18 (4) THE CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF
19 THE HOUSE OF REPRESENTATIVES.
20 CHAPTER 5
21 SMALL BUSINESS COUNCIL
22 SEC.
23 501. SCOPE.
24 502. DEFINITIONS.
25 503. SMALL BUSINESS COUNCIL.
26 504. REGULATORY REVIEW.
27 § 501. SCOPE.
28 THIS CHAPTER RELATES TO THE SMALL BUSINESS COUNCIL.
29 § 502. DEFINITIONS.
30 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
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1 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
2 CONTEXT CLEARLY INDICATES OTHERWISE:
3 "COUNCIL." THE SMALL BUSINESS COUNCIL ESTABLISHED UNDER
4 SECTION 503 (RELATING TO SMALL BUSINESS COUNCIL).
5 "EXECUTIVE AGENCY." THE GOVERNOR AND THE DEPARTMENTS,
6 BOARDS, COMMISSIONS, AUTHORITIES AND OTHER OFFICERS AND AGENCIES
7 OF THE COMMONWEALTH. THE TERM DOES NOT INCLUDE ANY COURT OR
8 OTHER OFFICER OR AGENCY OF THE UNIFIED JUDICIAL SYSTEM, THE
9 GENERAL ASSEMBLY AND ITS OFFICERS AND AGENCIES OR ANY
10 INDEPENDENT AGENCY OR STATE-AFFILIATED ENTITY.
11 "SMALL BUSINESS." A PERSON THAT EMPLOYS FEWER THAN 100
12 EMPLOYEES.
13 § 503. SMALL BUSINESS COUNCIL.
14 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
15 DEPARTMENT AN AGENCY TO BE KNOWN AS THE SMALL BUSINESS COUNCIL.
16 THE COUNCIL SHALL DO ALL OF THE FOLLOWING:
17 (1) ASSIST WITH THE DEVELOPMENT OF POLICIES AND
18 REGULATIONS WHICH AFFECT SMALL BUSINESSES WITHIN THIS
19 COMMONWEALTH.
20 (2) PROVIDE ADVICE RELATING TO THE NATURE OF SMALL
21 BUSINESS PRACTICES AND PROBLEMS IN THIS COMMONWEALTH.
22 (3) PROVIDE A REVIEW OF EXISTING AND PROPOSED POLICIES
23 AND REGULATIONS WHICH ARE RELEVANT TO SMALL BUSINESS.
24 (B) COMPOSITION.--THE COUNCIL SHALL BE COMPOSED OF 13
25 MEMBERS. THE SECRETARY SHALL SERVE EX OFFICIO. TWELVE MEMBERS
26 SHALL BE APPOINTED AS FOLLOWS:
27 (1) FOUR INDIVIDUALS APPOINTED BY THE GOVERNOR.
28 (2) TWO INDIVIDUALS APPOINTED BY THE PRESIDENT PRO
29 TEMPORE OF THE SENATE.
30 (3) TWO INDIVIDUALS APPOINTED BY THE MINORITY LEADER OF
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1 THE SENATE.
2 (4) TWO INDIVIDUALS APPOINTED BY THE SPEAKER OF THE
3 HOUSE OF REPRESENTATIVES.
4 (5) TWO INDIVIDUALS APPOINTED BY THE MINORITY LEADER OF
5 THE HOUSE OF REPRESENTATIVES.
6 (C) QUALIFICATIONS.--IN ORDER TO BE ELIGIBLE FOR APPOINTMENT
7 TO THE COUNCIL, AN INDIVIDUAL MUST:
8 (1) HAVE A BACKGROUND IN IMPROVING SMALL BUSINESSES; AND
9 (2) BE ONE OF THE FOLLOWING:
10 (I) A PRESENT OWNER OR OPERATOR OF A SMALL BUSINESS
11 WITHIN THIS COMMONWEALTH;
12 (II) A MEMBER OF THE ACADEMIC COMMUNITY WHO HAS
13 EXPERTISE REGARDING SMALL BUSINESS PRACTICES; OR
14 (III) A PROFESSIONAL WHO SPECIALIZES IN REPRESENTING
15 SMALL BUSINESSES.
16 (D) TERM.--EACH MEMBER OF THE COUNCIL SHALL SERVE FOR A
17 PERIOD OF TWO YEARS.
18 (E) ORGANIZATION.--THE SECRETARY SHALL SERVE AS CHAIRPERSON.
19 (F) MEETINGS.--THE COUNCIL SHALL MEET AT THE CALL OF THE
20 CHAIRPERSON.
21 (G) QUORUM.--A MAJORITY OF THE BOARD SHALL CONSTITUTE A
22 QUORUM. A MAJORITY OF THE MEMBERS PRESENT SHALL BE NECESSARY TO
23 TRANSACT BUSINESS ON BEHALF OF THE COUNCIL.
24 (H) EXPENSES.--A MEMBER SHALL NOT RECEIVE COMPENSATION OR
25 REMUNERATION, BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ALL
26 REASONABLE AND NECESSARY ACTUAL EXPENSES.
27 (I) ADMINISTRATIVE ASSISTANCE.--THE DEPARTMENT SHALL DO ALL
28 OF THE FOLLOWING:
29 (1) PROVIDE ADMINISTRATIVE AND TECHNICAL SUPPORT TO THE
30 COUNCIL.
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1 (2) PUBLISH NOTICE OF COUNCIL MEETINGS IN ACCORDANCE
2 WITH 65 PA.C.S. CH. 7 (RELATING TO OPEN MEETINGS).
3 (3) MAINTAIN A MAILING LIST OF PERSONS WHO HAVE
4 REQUESTED SPECIFIC NOTIFICATION OF MEETINGS AND ACTIVITIES OF
5 THE COUNCIL.
6 (4) DESIGNATE A DEPUTY SECRETARY TO ATTEND COUNCIL
7 MEETINGS AND TO SERVE AS THE PUBLIC'S LIAISON OF THE COUNCIL.
8 (J) COOPERATION.--UPON THE COUNCIL'S REQUEST, AN EXECUTIVE
9 AGENCY SHALL PROVIDE THE COUNCIL WITH OFFICIALLY PROMULGATED
10 REGULATORY AND NONREGULATORY DOCUMENTS WHICH REGULATE OR WOULD
11 REGULATE SMALL BUSINESSES.
12 § 504. REGULATORY REVIEW.
13 (A) NOTIFICATION.--TO THE EXTENT KNOWN TO THE SECRETARY, THE
14 DEPARTMENT SHALL, ON A SEMIANNUAL BASIS, PROVIDE THE COUNCIL
15 WITH A LIST OF REGULATIONS BEING PROPOSED BY ALL EXECUTIVE
16 AGENCIES WHICH MAY AFFECT SMALL BUSINESSES IN THIS COMMONWEALTH.
17 (B) CONFERENCE.--THE DEPARTMENT SHALL, UPON REQUEST OF THE
18 COUNCIL, ARRANGE A MEETING BETWEEN THE COUNCIL AND
19 REPRESENTATIVES OF AN EXECUTIVE AGENCY TO DISCUSS REGULATORY
20 PROPOSALS AND POLICY INITIATIVES OF THE EXECUTIVE AGENCY WHICH
21 MIGHT AFFECT SMALL BUSINESSES IN THIS COMMONWEALTH.
22 (C) WRITTEN COMMENTS.--THE COUNCIL SHALL PROVIDE THE
23 DEPARTMENT WITH WRITTEN COMMENTS REGARDING THE COUNCIL'S
24 POSITION ON THE PROPOSED REGULATIONS. THE DEPARTMENT SHALL
25 TRANSMIT THE COMMENTS TO THE APPROPRIATE EXECUTIVE AGENCIES. THE
26 WRITTEN COMMENTS SHALL INCLUDE AN IMPACT STATEMENT AND ANY OTHER
27 INFORMATION WHICH THE COUNCIL DEEMS NECESSARY FOR THE PUBLIC TO
28 MAKE AN INFORMED OPINION ON THE PROPOSALS.
29 (D) EXCEPTIONS.--THE REQUIREMENTS UNDER SUBSECTIONS (A) AND
30 (B) SHALL NOT APPLY TO THE PROMULGATION OF THE FOLLOWING
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1 REGULATIONS RELATING TO SMALL BUSINESSES:
2 (1) REGULATIONS REQUIRED BY COURT ORDER.
3 (2) REGULATIONS NECESSITATED BY A FEDERAL OR STATE
4 DECLARATION OF EMERGENCY.
5 (3) INTERIM REGULATIONS WHICH ARE AUTHORIZED BY STATUTE.
6 CHAPTER 7
7 TAX-EXEMPT BOND ALLOCATION
8 (RESERVED)
9 PART II
10 ECONOMIC DEVELOPMENT ENTITIES
11 CHAPTER
12 11. BEN FRANKLIN (RESERVED)
13 13. INDUSTRIAL RESOURCE CENTERS (RESERVED)
14 15. (RESERVED)
15 17. (RESERVED)
16 19. (RESERVED)
17 CHAPTER 11
18 BEN FRANKLIN
19 (RESERVED)
20 CHAPTER 13
21 INDUSTRIAL RESOURCE CENTERS
22 (RESERVED)
23 CHAPTER 15
24 (RESERVED)
25 CHAPTER 17
26 (RESERVED)
27 CHAPTER 19
28 (RESERVED)
29 PART III
30 ECONOMIC DEVELOPMENT PROGRAMS
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1 CHAPTER
2 21. OPPORTUNITY GRANTS
3 23. SMALL BUSINESS FIRST
4 25. INDUSTRIAL DEVELOPMENT ASSISTANCE (RESERVED)
5 27. CUSTOMIZED JOB TRAINING (RESERVED)
6 29. MACHINERY AND EQUIPMENT LOAN
7 31. FAMILY SAVINGS ACCOUNT (RESERVED)
8 33. ECONOMIC ENHANCEMENT (RESERVED)
9 35. KEYSTONE OPPORTUNITY ZONES (RESERVED)
10 37. KEYSTONE INNOVATION ZONES
11 CHAPTER 21
12 OPPORTUNITY GRANTS
13 SEC.
14 2101. SCOPE.
15 2102. DEFINITIONS.
16 2103. ESTABLISHMENT.
17 2104. APPLICATION.
18 2105. REVIEW.
19 2106. APPROVAL.
20 2107. PENALTY.
21 2108. LIMITATIONS.
22 2109. GUIDELINES.
23 § 2101. SCOPE.
24 THIS CHAPTER RELATES TO THE OPPORTUNITY GRANT PROGRAM.
25 § 2102. DEFINITIONS.
26 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
27 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
28 CONTEXT CLEARLY INDICATES OTHERWISE:
29 "APPLICANT." A PERSON THAT APPLIES FOR A GRANT IN ACCORDANCE
30 WITH THIS CHAPTER.
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1 "DEVELOPER." A PERSON THAT HAS AS A PURPOSE THE PROMOTION OR
2 CONSTRUCTION OF ECONOMIC DEVELOPMENT PROJECTS AND THAT IS
3 ENGAGED IN THE DEVELOPMENT OF REAL ESTATE FOR USE BY MORE THAN
4 ONE PERSON.
5 "ELIGIBLE RECIPIENT." ANY OF THE FOLLOWING PERSONS:
6 (1) A MUNICIPALITY.
7 (2) AN ENTITY CREATED UNDER THE ACT OF AUGUST 23, 1967
8 (P.L.251, NO.102), KNOWN AS THE ECONOMIC DEVELOPMENT
9 FINANCING LAW.
10 (3) AN ENTITY CERTIFIED AS AN INDUSTRIAL DEVELOPMENT
11 AGENCY UNDER THE ACT OF MAY 17, 1956 (1955 P.L.1609, NO.537),
12 KNOWN AS THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY
13 ACT.
14 (4) AN ENTITY CREATED UNDER 53 PA.C.S. CH.56 (RELATING
15 TO MUNICIPAL AUTHORITIES) OR UNDER THE FORMER ACT OF MAY 2,
16 1945 (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY AUTHORITIES
17 ACT OF 1945.
18 (5) AN ENTITY CREATED UNDER THE ACT OF MAY 24, 1945
19 (P.L.991, NO.385), KNOWN AS THE URBAN REDEVELOPMENT LAW.
20 (6) A DEVELOPER.
21 (7) A PERSON THAT IS ENGAGED IN ANY OF THE FOLLOWING
22 ACTIVITIES:
23 (I) THE PRODUCTION OR PROCESSING OF FARM
24 COMMODITIES.
25 (II) MANUFACTURING.
26 (III) RESEARCH AND DEVELOPMENT.
27 (IV) EXPORT SERVICES.
28 (V) ANY OTHER ACTIVITY WHICH OFFERS A SIGNIFICANT
29 ECONOMIC IMPACT ON THE COMMONWEALTH, AS DETERMINED BY THE
30 DEPARTMENT.
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1 "ELIGIBLE USE." ANY OF THE FOLLOWING ACTIVITIES:
2 (1) JOB TRAINING.
3 (2) THE ACQUISITION OF INTEREST IN LAND, BUILDINGS OR
4 RIGHTS-OF-WAY.
5 (3) THE CONSTRUCTION OR REHABILITATION OF BUILDINGS.
6 (4) THE CONSTRUCTION OR REHABILITATION OF
7 INFRASTRUCTURE.
8 (5) THE PURCHASE OR UPGRADING OF MACHINERY AND
9 EQUIPMENT.
10 (6) WORKING CAPITAL.
11 (7) SITE PREPARATION, INCLUDING DEMOLITION AND
12 CLEARANCE.
13 (8) ENVIRONMENTAL ASSESSMENTS.
14 (9) REMEDIATION OF HAZARDOUS MATERIAL.
15 (10) ARCHITECTURAL AND ENGINEERING FEES UP TO 10% OF THE
16 AWARD.
17 "JOB-CREATING ECONOMIC DEVELOPMENT." INCLUDES THE EXPANSION
18 OR PRESERVATION OF EXISTING INDUSTRY.
19 "PROGRAM." THE OPPORTUNITY GRANT PROGRAM ESTABLISHED IN
20 SECTION 2103 (RELATING TO ESTABLISHMENT.)
21 "PROJECT." AN ACTIVITY CONDUCTED IN THIS COMMONWEALTH.
22 "RECIPIENT." A PERSON WHO RECEIVES A GRANT UNDER THIS
23 CHAPTER.
24 § 2103. ESTABLISHMENT.
25 THERE IS ESTABLISHED WITHIN THE DEPARTMENT A PROGRAM TO BE
26 KNOWN AS THE OPPORTUNITY GRANT PROGRAM. THE PROGRAM SHALL BE
27 ADMINISTERED BY THE DEPARTMENT TO PROVIDE GRANTS TO ELIGIBLE
28 PERSONS FOR CERTAIN PROJECTS WHICH ENCOURAGE JOB-CREATING
29 ECONOMIC DEVELOPMENT WITHIN THIS COMMONWEALTH.
30 § 2104. APPLICATION.
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1 A PERSON MAY SUBMIT AN APPLICATION TO THE DEPARTMENT
2 REQUESTING A GRANT FOR A PROJECT. THE APPLICATION SHALL BE ON
3 THE FORM REQUIRED BY THE DEPARTMENT AND SHALL INCLUDE OR
4 DEMONSTRATE ALL OF THE FOLLOWING:
5 (1) THE NAME AND ADDRESS OF THE APPLICANT.
6 (2) A STATEMENT THAT THE APPLICANT IS AN ELIGIBLE
7 RECIPIENT UNDER THE PROGRAM.
8 (3) A STATEMENT OF THE AMOUNT OF GRANT SOUGHT.
9 (4) A STATEMENT OF THE PROJECT, INCLUDING A DETAILED
10 STATEMENT OF THE COST OF THE PROJECT.
11 (5) A STATEMENT IDENTIFYING THE ECONOMIC IMPACT OF THE
12 PROJECT TO THE REGION AND THE ESTIMATED IMPACT ON STATE AND
13 LOCAL REVENUES.
14 (6) A COMMITMENT OF PRIVATE MATCHING FUNDS OF AT LEAST
15 $4 FOR EVERY $1 OF GRANT FUNDS, AND OF THE BALANCE OF FUNDING
16 FOR THE ENTIRE PROJECT COST, FROM A RESPONSIBLE SOURCE.
17 (7) A COMMITMENT FROM THE APPLICANT TO COMPLETE THE
18 PROJECT.
19 (8) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
20 § 2105. REVIEW.
21 THE DEPARTMENT SHALL REVIEW THE APPLICATION TO DETERMINE IF
22 THE APPLICANT HAS MET ALL OF THE CRITERIA SET FORTH IN SECTION
23 2104 (RELATING TO APPLICATION).
24 § 2106. APPROVAL.
25 THE FOLLOWING SHALL APPLY:
26 (1) UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
27 MET, THE DEPARTMENT MAY APPROVE THE APPLICATION AND AWARD A
28 GRANT.
29 (2) PRIOR TO PROVIDING GRANT FUNDS TO THE APPLICANT, THE
30 DEPARTMENT SHALL ENTER INTO A CONTRACT WITH THE APPLICANT.
20030S0778B1391 - 17 -
1 THE CONTRACT SHALL INCLUDE PROVISIONS REQUIRING THE APPLICANT
2 TO USE THE GRANT TO PAY THE COSTS OF THE PROJECT.
3 (3) THE DEPARTMENT MAY IMPOSE ANY OTHER TERMS AND
4 CONDITIONS ON THE GRANTS AUTHORIZED BY THIS CHAPTER AS THE
5 DEPARTMENT DETERMINES IS IN THE BEST INTERESTS OF THE
6 COMMONWEALTH, INCLUDING A PROVISION REQUIRING COLLATERAL TO
7 SECURE REPAYMENT OF ANY PENALTY IMPOSED UNDER THE PROGRAM.
8 § 2107. PENALTY.
9 (A) IMPOSITION.--EXCEPT AS PROVIDED IN SUBSECTION (B), THE
10 DEPARTMENT SHALL IMPOSE A PENALTY UPON A RECIPIENT FOR ANY OF
11 THE FOLLOWING:
12 (1) FAILING TO CREATE THE NUMBER OF JOBS SPECIFIED IN
13 THE RECIPIENT'S APPLICATION.
14 (2) FAILING TO INJECT THE REQUIRED AMOUNT OF PRIVATE
15 MATCHING FUNDS INTO THE PROJECT.
16 (3) FAILING TO OPERATE AT THE PROJECT SITE FOR A MINIMUM
17 PERIOD OF FIVE YEARS.
18 (B) EXCEPTION.--THE DEPARTMENT MAY WAIVE THE PENALTY
19 REQUIRED BY SUBSECTION (A) IF THE DEPARTMENT DETERMINES THAT THE
20 FAILURE WAS DUE TO CIRCUMSTANCES OUTSIDE THE CONTROL OF THE
21 RECIPIENT.
22 (C) AMOUNT.--THE AMOUNT OF THE PENALTY SHALL BE EQUAL TO THE
23 FULL AMOUNT OF THE GRANT RECEIVED PLUS AN ADDITIONAL AMOUNT OF
24 UP TO 10% OF THE AMOUNT OF THE GRANT RECEIVED. THE PENALTY SHALL
25 BE PAYABLE IN ONE LUMP SUM OR IN INSTALLMENTS, WITH OR WITHOUT
26 INTEREST, AS THE DEPARTMENT DEEMS APPROPRIATE.
27 § 2108. LIMITATIONS.
28 (1) AN APPLICANT MAY NOT RECEIVE A GRANT UNDER THIS
29 CHAPTER FOR MORE THAN TWO CONSECUTIVE FISCAL YEARS FOR THE
30 SAME PROJECT.
20030S0778B1391 - 18 -
1 (2) A GRANT AWARDED UNDER THIS CHAPTER MAY NOT BE USED
2 TO DO ANY OF THE FOLLOWING:
3 (I) REFINANCE OR RETIRE EXISTING DEBT.
4 (II) PAY COSTS UNRELATED TO A PROJECT LOCATION AT A
5 SITE IN THIS COMMONWEALTH.
6 (3) IN NO CASE SHALL THE AGGREGATE AMOUNT OF GRANTS PAID
7 IN ANY FISCAL YEAR UNDER THIS CHAPTER EXCEED THE ANNUAL
8 APPROPRIATION TO THE DEPARTMENT FOR THE PROGRAM.
9 (4) A GRANT AWARDED UNDER THIS CHAPTER SHALL IN NO WAY
10 CONSTITUTE AN ENTITLEMENT DERIVED FROM THE COMMONWEALTH OR A
11 CLAIM ON ANY OTHER FUNDS OF THE COMMONWEALTH.
12 § 2109. GUIDELINES.
13 THE DEPARTMENT SHALL DEVELOP WRITTEN GUIDELINES FOR THE
14 PROGRAM. THE GUIDELINES SHALL DO ALL OF THE FOLLOWING:
15 (1) LIMIT GRANT SIZE FOR ANY SINGLE PROJECT.
16 (2) CLARIFY ELIGIBLE USES OF GRANTS.
17 (3) CLARIFY STANDARDS FOR ELIGIBILITY.
18 (4) REQUIRE GEOGRAPHIC DIVERSITY OF FUNDED PROJECTS.
19 CHAPTER 23
20 SMALL BUSINESS FIRST
21 SEC.
22 2301. SCOPE.
23 2302. DEFINITIONS.
24 2303. ESTABLISHMENT.
25 2304. FUND AND ACCOUNTS.
26 2305. DEPARTMENT RESPONSIBILITIES.
27 2306. CAPITAL DEVELOPMENT LOANS.
28 2307. EDA LOANS.
29 2308. LOANS IN DISTRESSED COMMUNITIES.
30 2309. POLLUTION PREVENTION ASSISTANCE LOANS.
20030S0778B1391 - 19 -
1 2310. EXPORT FINANCING LOANS.
2 2311. REPORTING AND INSPECTION.
3 2312. LIMITATIONS.
4 § 2301. SCOPE.
5 THIS CHAPTER RELATES TO THE SMALL BUSINESS FIRST PROGRAM.
6 § 2302. DEFINITIONS.
7 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
8 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
9 CONTEXT CLEARLY INDICATES OTHERWISE:
10 "AGRICULTURAL PROCESSOR." A PERSON THAT ADDS VALUE BY
11 SUBJECTING ONE OR MORE FARM COMMODITIES TO A PROCESS OF
12 MANUFACTURE, DEVELOPMENT OR PREPARATION FOR SALE OR A PERSON
13 THAT CONVERTS A FARM PRODUCT INTO A MARKETABLE FORM.
14 "AGRICULTURAL PRODUCER." A PERSON INVOLVED IN THE MANAGEMENT
15 AND USE OF A NORMAL AGRICULTURAL OPERATION FOR THE PRODUCTION OF
16 A FARM COMMODITY.
17 "APPAREL PRODUCTS." PRODUCTS MANUFACTURED, WOVEN, CUT, SEWN
18 OR OTHERWISE SIMILARLY PROCESSED BY MECHANICAL OR HUMAN EFFORT
19 FROM FABRICS, LEATHER OR CLOTH AND MADE FOR USE AS CLOTHING,
20 SHOES OR OTHER ATTIRE.
21 "APPLICANT." A PERSON THAT APPLIES FOR A LOAN IN ACCORDANCE
22 WITH THIS CHAPTER.
23 "AREA LOAN ORGANIZATION." A LOCAL DEVELOPMENT DISTRICT, AN
24 INDUSTRIAL DEVELOPMENT AGENCY ORGANIZED AND EXISTING UNDER THE
25 ACT OF MAY 17, 1956 (1955 P.L.1609, NO.537), KNOWN AS THE
26 PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY ACT, OR ANY OTHER
27 NONPROFIT ECONOMIC DEVELOPMENT ORGANIZATION CERTIFIED BY THE
28 DEPARTMENT AS POSSESSING THE QUALIFICATIONS NECESSARY TO
29 EVALUATE AND ADMINISTER LOANS MADE UNDER THIS CHAPTER.
30 "CAPITAL DEVELOPMENT PROJECT." LAND, BUILDINGS, EQUIPMENT
20030S0778B1391 - 20 -
1 AND MACHINERY AND WORKING CAPITAL WHICH IS ACQUIRED,
2 CONSTRUCTED, RENOVATED OR USED BY A SMALL BUSINESS IN ACCORDANCE
3 WITH ANY OF THE FOLLOWING:
4 (1) AS PART OF A FOR-PROFIT PROJECT OR VENTURE NOT OF A
5 MERCANTILE OR SERVICE-RELATED NATURE, EXCEPT FOR HOSPITALITY
6 INDUSTRY PROJECTS.
7 (2) AS PART OF AN EFFORT TO:
8 (I) BRING A SMALL BUSINESS INTO COMPLIANCE WITH
9 FEDERAL OR STATE ENVIRONMENTAL LAWS OR REGULATIONS;
10 (II) COMPLETE AN APPROVED REMEDIATION PROJECT; OR
11 (III) PERMIT A SMALL BUSINESS TO ADOPT GENERALLY
12 ACCEPTABLE POLLUTION PREVENTION PRACTICES.
13 (3) AS PART OF AN EFFORT TO PROVIDE ASSISTANCE TO A
14 SMALL BUSINESS THAT IS A RECYCLER OF MUNICIPAL OR COMMERCIAL
15 WASTE OR THAT IS A MANUFACTURER USING RECYCLED MUNICIPAL OR
16 COMMERCIAL WASTE MATERIALS.
17 (4) AS PART OF AN EFFORT TO ASSIST A SMALL BUSINESS WITH
18 DEFENSE CONVERSION ACTIVITIES.
19 (5) AS PART OF A FOR-PROFIT PROJECT OR VENTURE TO
20 MANUFACTURE PRODUCTS TO BE EXPORTED OUT OF THE UNITED STATES
21 BY A SMALL BUSINESS WHICH IS NOT OF A MERCANTILE OR SERVICE-
22 RELATED NATURE, EXCEPT FOR EXPORT-RELATED SERVICES AND
23 INTERNATIONAL EXPORT-RELATED MERCANTILE VENTURES OR ADVANCED
24 TECHNOLOGY AND COMPUTER-RELATED SERVICES AND MERCANTILE
25 VENTURES AND WHICH WILL INCREASE THIS COMMONWEALTH'S NATIONAL
26 OR INTERNATIONAL MARKET SHARES.
27 (6) AS PART OF A FOR-PROFIT PROJECT OR VENTURE THAT
28 MEETS THE REQUIREMENTS OF SECTION 2308 (RELATING TO LOANS IN
29 DISTRESSED COMMUNITIES)
30 (7) AS PART OF AN EFFORT TO ASSIST IN THE START-UP OR
20030S0778B1391 - 21 -
1 EXPANSION OF A FOR-PROFIT OR NOT-FOR-PROFIT CHILD DAY-CARE
2 CENTER SUBJECT TO LICENSURE BY THE COMMONWEALTH.
3 "CHILD DAY-CARE CENTER." ANY PREMISES IN WHICH CHILD DAY
4 CARE IS PROVIDED SIMULTANEOUSLY FOR SEVEN OR MORE CHILDREN WHO
5 ARE NOT RELATED TO THE PROVIDER.
6 "COMMUNITY DEVELOPMENT INSTITUTION." ANY OF THE FOLLOWING:
7 (1) AN AREA LOAN ORGANIZATION FOR A DISTRESSED
8 COMMUNITY.
9 (2) A COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION
10 LOCATED IN A DISTRESSED COMMUNITY AND APPROVED BY THE
11 DEPARTMENT.
12 "DISTRESSED COMMUNITY." A COMMUNITY WHICH HAS ANY OF THE
13 FOLLOWING:
14 (1) A CENSUS TRACT OR OTHER SPECIFICALLY DEFINED
15 GEOGRAPHIC AREA IN WHICH THERE IS ANY OF THE FOLLOWING:
16 (I) A MEDIAN INCOME BELOW 80% OF THE MEDIAN INCOME
17 FOR THE UNITED STATES OR THIS COMMONWEALTH.
18 (II) TWENTY PERCENT OR MORE OF THE POPULATION IS
19 BELOW THE POVERTY LEVEL BY FAMILY SIZE PUBLISHED BY THE
20 BUREAU OF THE CENSUS.
21 (III) AN UNEMPLOYMENT RATE 50% HIGHER THAN THE
22 NATIONAL AVERAGE.
23 (2) AN AREA WHICH IS DESIGNATED A SUBZONE, EXPANSION
24 SUBZONE, OR IMPROVEMENT SUBZONE UNDER THE ACT OF OCTOBER 6,
25 1998 (P.L.705, NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE
26 AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT.
27 (3) ANY OTHER GEOGRAPHIC AREA DESIGNATED BY THE
28 DEPARTMENT AS DISTRESSED. THE DESIGNATION SHALL BE PUBLISHED
29 IN THE PENNSYLVANIA BULLETIN.
30 "EDA LOAN." A LOAN MADE UNDER THIS CHAPTER UTILIZING FUNDS
20030S0778B1391 - 22 -
1 MADE AVAILABLE TO THE DEPARTMENT UNDER THE PUBLIC WORKS AND
2 ECONOMIC DEVELOPMENT ACT OF 1965 (PUBLIC LAW 89-136, 42 U.S.C. §
3 3121 ET SEQ.).
4 "EX-IM BANK." THE EXPORT-IMPORT BANK OF THE UNITED STATES.
5 "EXPORT ACTIVITY." AN ACTIVITY UNDERTAKEN BY A PERSON WITHIN
6 THIS COMMONWEALTH RELATED TO EXPORTS.
7 "EXPORT BUSINESS." A PERSON THAT IS ENGAGED IN A FOR-PROFIT
8 ENTERPRISE INVOLVING EXPORT ACTIVITIES AND THAT EMPLOYS 250 OR
9 FEWER INDIVIDUALS.
10 "EXPORTS." GOODS OR SERVICES TO BE SOLD OR PERFORMED OUTSIDE
11 THE UNITED STATES.
12 "FARM COMMODITY." ANY PENNSYLVANIA-GROWN AGRICULTURAL,
13 HORTICULTURAL, AQUACULTURAL, VEGETABLE, FRUIT AND FLORICULTURAL
14 PRODUCT OF THE SOIL, LIVESTOCK AND MEATS, WOOLS, HIDES, FURS,
15 POULTRY, EGGS, DAIRY PRODUCTS, NUTS, MUSHROOMS, HONEY PRODUCTS
16 AND FOREST PRODUCTS.
17 "FUND." THE SMALL BUSINESS FIRST FUND CONTINUED UNDER
18 SECTION 2304 (RELATING TO FUND AND ACCOUNTS).
19 "HAZARDOUS SUBSTANCE." ANY ELEMENT, COMPOUND OR MATERIAL
20 WHICH IS ANY OF THE FOLLOWING:
21 (1) REGULATED AS A HAZARDOUS AIR POLLUTANT UNDER SECTION
22 6.6 OF THE ACT OF JANUARY 8, 1960 (1959 P.L.2119, NO.787),
23 KNOWN AS THE AIR POLLUTION CONTROL ACT.
24 (2) DEFINED AS A HAZARDOUS WASTE UNDER SECTION 103 OF
25 THE ACT OF JULY 7, 1980 (P.L.380, NO.97), KNOWN AS THE SOLID
26 WASTE MANAGEMENT ACT.
27 (3) REGULATED UNDER THE ACT OF DECEMBER 7, 1990
28 (P.L.639, NO.165), KNOWN AS THE HAZARDOUS MATERIAL EMERGENCY
29 PLANNING AND RESPONSE ACT.
30 "HOSPITALITY INDUSTRY PROJECT." A FOR-PROFIT PROJECT OR
20030S0778B1391 - 23 -
1 VENTURE WHICH INVOLVES A SMALL BUSINESS THAT OPERATES A HOTEL,
2 MOTEL OR OTHER LODGING FACILITY AND THAT EMPLOYS AT LEAST FIVE
3 FULL-TIME EQUIVALENT EMPLOYEES AT THE TIME AN APPLICATION IS
4 SUBMITTED TO THE DEPARTMENT FOR FINANCING. THE TERM INCLUDES A
5 FOR-PROFIT PROJECT OR VENTURE WHICH INVOLVES A SMALL BUSINESS
6 THAT OPERATES A RESTAURANT OR FOOD SERVICE OPERATION OPEN TO THE
7 PUBLIC, THAT HAS BEEN IN CONTINUOUS OPERATION FOR AT LEAST FIVE
8 YEARS AND THAT EMPLOYS AT LEAST FIVE FULL-TIME EQUIVALENT
9 EMPLOYEES AT THE TIME AN APPLICATION IS SUBMITTED.
10 "INSURANCE POLICY." AN EXPORT CREDIT INSURANCE POLICY FOR
11 SMALL BUSINESSES OFFERED BY THE EXPORT-IMPORT BANK OF THE UNITED
12 STATES.
13 "NATURAL DISASTER." AS DEFINED IN 35 PA.C.S. § 7102
14 (RELATING TO DEFINITIONS).
15 "NORMAL AGRICULTURAL OPERATION." AS DEFINED IN SECTION 2 OF
16 THE ACT OF JUNE 10, 1982 (P.L.454, NO.133), ENTITLED "AN ACT
17 PROTECTING AGRICULTURAL OPERATIONS FROM NUISANCE SUITS AND
18 ORDINANCES UNDER CERTAIN CIRCUMSTANCES.
19 "POLLUTION PREVENTION." THE REDUCTION OR ELIMINATION OF
20 POLLUTION AT ITS SOURCE. THE TERM DOES NOT INCLUDE ANY OF THE
21 FOLLOWING:
22 (1) A SUBSTITUTION OF ONE HAZARDOUS OR TOXIC SUBSTANCE
23 FOR ANOTHER WHICH WILL CAUSE AN INCREASED RISK TO THE
24 ENVIRONMENT OR TO HUMAN HEALTH.
25 (2) A CROSS-MEDIA TRANSFER.
26 (3) A DELISTING OF A HAZARDOUS WASTE OR TOXIC CHEMICAL.
27 "POLLUTION PREVENTION ASSISTANCE AGENCY." ANY OF THE
28 FOLLOWING:
29 (1) AN AREA LOAN ORGANIZATION.
30 (2) AN INDUSTRIAL RESOURCE CENTER CREATED PURSUANT TO
20030S0778B1391 - 24 -
1 THE ACT OF JUNE 22, 2001 (P.L.400, NO.31), KNOWN AS THE
2 INDUSTRIAL RESOURCES CENTER PARTNERSHIP ACT.
3 "POLLUTION PREVENTION INFRASTRUCTURE." A CAPITAL DEVELOPMENT
4 PROJECT WHICH PERMITS A SMALL BUSINESS TO ADOPT OR INSTALL
5 POLLUTION PREVENTION EQUIPMENT OR PROCESSES TO:
6 (1) REDUCE OR REUSE RAW MATERIALS ONSITE.
7 (2) REDUCE THE PRODUCTION OF WASTE.
8 (3) REDUCE ENERGY CONSUMPTION.
9 "PROGRAM." THE SMALL BUSINESS FIRST PROGRAM ESTABLISHED
10 UNDER SECTION 2303 (RELATING TO ESTABLISHMENT).
11 "REUSE." USE OF A PRODUCT OR COMPONENT IN ITS ORIGINAL FORM
12 MORE THAN ONCE.
13 "SMALL BUSINESS." A PERSON THAT IS ENGAGED IN A FOR-PROFIT
14 ENTERPRISE AND THAT EMPLOYS 100 OR FEWER INDIVIDUALS. THE TERM
15 INCLUDES THE FOLLOWING:
16 (1) AN ENTERPRISE LOCATED IN A SMALL BUSINESS INCUBATOR
17 FACILITY.
18 (2) AN AGRICULTURAL PROCESSOR.
19 (3) AN AGRICULTURAL PRODUCER.
20 (4) AN ENTERPRISE WHICH MANUFACTURES APPAREL PRODUCTS.
21 (5) AN ENTERPRISE WHICH IS A FOR-PROFIT OR NOT-FOR-
22 PROFIT CHILD DAY-CARE CENTER SUBJECT TO LICENSURE BY THE
23 COMMONWEALTH.
24 "WORKING CAPITAL." CAPITAL USED BY A SMALL BUSINESS FOR
25 OPERATIONS, EXCLUDING FIXED ASSETS AND PRODUCTION MACHINERY AND
26 EQUIPMENT.
27 § 2303. ESTABLISHMENT.
28 THERE IS ESTABLISHED WITHIN THE DEPARTMENT A PROGRAM TO BE
29 KNOWN AS THE SMALL BUSINESS FIRST PROGRAM. THE PROGRAM SHALL BE
30 ADMINISTERED BY THE DEPARTMENT AND PROVIDE LOANS TO ELIGIBLE
20030S0778B1391 - 25 -
1 PERSONS FOR CERTAIN PROJECTS WHICH ENCOURAGE JOB CREATING AND
2 JOB PRESERVING ECONOMIC DEVELOPMENT WITHIN THIS COMMONWEALTH.
3 § 2304. FUND AND ACCOUNTS.
4 (A) FUND.--THE SMALL BUSINESS FIRST FUND, CREATED UNDER
5 SECTION 1302(A) OF THE ACT OF JUNE 29, 1996 (P.L.434, NO.67),
6 KNOWN AS THE JOB ENHANCEMENT ACT, IS CONTINUED. THE TREASURY
7 DEPARTMENT SHALL CREDIT THE FOLLOWING TO THE FUND:
8 (1) APPROPRIATIONS MADE BY THE GENERAL ASSEMBLY TO THE
9 DEPARTMENT FOR THE PROGRAM.
10 (2) FEDERAL FUNDS MADE AVAILABLE UNDER THE PUBLIC WORKS
11 AND ECONOMIC DEVELOPMENT ACT OF 1965 (PUBLIC LAW 89-136, 42
12 U.S.C. § 3121 ET SEQ.), OR ANY OTHER FEDERAL STATUTE,
13 REGULATION OR PROGRAM FOR THE PROGRAM.
14 (3) PAYMENTS FROM RECIPIENTS OF LOANS MADE FROM THE
15 FUND.
16 (4) PAYMENTS FROM RECIPIENTS OF LOANS MADE UNDER THE
17 FORMER ACT OF JULY 2, 1984 (P.L.545, NO.109), KNOWN AS THE
18 CAPITAL LOAN FUND ACT.
19 (5) INTEREST INCOME DERIVED FROM INVESTMENT OF THE MONEY
20 IN THE FUND.
21 (6) ANY OTHER DEPOSITS, PAYMENTS OR CONTRIBUTIONS FROM
22 ANY OTHER SOURCE MADE AVAILABLE TO THE DEPARTMENT FOR THE
23 PROGRAM.
24 (B) POLLUTION PREVENTION ASSISTANCE.--THE POLLUTION
25 PREVENTION ASSISTANCE ACCOUNT, CREATED UNDER THE ACT OF JUNE 29,
26 1996 (P.L.434, NO.67), KNOWN AS THE JOB ENHANCEMENT ACT, IS
27 CONTINUED. THE TREASURY DEPARTMENT SHALL CREDIT THE FOLLOWING TO
28 THIS ACCOUNT:
29 (1) APPROPRIATIONS MADE BY THE GENERAL ASSEMBLY TO THE
30 DEPARTMENT FOR POLLUTION PREVENTION ASSISTANCE.
20030S0778B1391 - 26 -
1 (2) PAYMENTS FROM RECIPIENTS OF LOANS MADE FROM THE
2 POLLUTION PREVENTION ASSISTANCE ACCOUNT.
3 (3) TRANSFERS FROM THE HAZARDOUS SITES CLEANUP FUND AS
4 ESTABLISHED IN SECTION 602.3 OF THE ACT OF MARCH 4, 1971
5 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
6 (4) INTEREST INCOME DERIVED FROM INVESTMENT OF THE MONEY
7 IN THE POLLUTION PREVENTION ASSISTANCE ACCOUNT.
8 (5) ANY OTHER DEPOSITS, PAYMENTS OR CONTRIBUTIONS FROM
9 ANY OTHER SOURCE MADE AVAILABLE TO THE DEPARTMENT FOR
10 POLLUTION PREVENTION ASSISTANCE.
11 (C) USE OF FUND.--
12 (1) MONEY IN THE FUND MAY BE USED AS FOLLOWS:
13 (I) BY THE DEPARTMENT TO MAKE LOANS IN ACCORDANCE
14 WITH THIS CHAPTER AND FOR ADMINISTRATIVE COSTS OF THE
15 DEPARTMENT IN ADMINISTERING THE PROGRAM.
16 (II) BY AREA LOAN ORGANIZATIONS FOR ADMINISTRATIVE
17 COSTS ASSOCIATED WITH THE PROGRAM WHICH ARE APPROVED BY
18 THE DEPARTMENT.
19 (2) MONEY FROM THE FUND DERIVED FROM APPROPRIATIONS
20 SPECIFIED FOR EXPORT FINANCING ASSISTANCE MAY BE DEPOSITED BY
21 THE DEPARTMENT IN BANKS OR TRUST COMPANIES IN SPECIAL
22 ACCOUNTS. THE SPECIAL ACCOUNTS MUST BE CONTINUOUSLY SECURED
23 BY A PLEDGE OF DIRECT OBLIGATIONS OF THE UNITED STATES OR OF
24 THE COMMONWEALTH, HAVING AN AGGREGATE MARKET VALUE, EXCLUSIVE
25 OF ACCRUED INTEREST, AT LEAST EQUAL TO THE BALANCE ON DEPOSIT
26 IN THE ACCOUNT. THE SECURITIES SHALL BE DEPOSITED WITH THE
27 DEPARTMENT TO BE HELD BY A TRUSTEE OR AGENT SATISFACTORY TO
28 THE DEPARTMENT. BANKS AND TRUST COMPANIES ARE AUTHORIZED TO
29 GIVE SECURITY UNDER THIS PARAGRAPH. MONEY IN THESE SPECIAL
30 ACCOUNTS SHALL BE PAID OUT ON ORDER OF THE DEPARTMENT.
20030S0778B1391 - 27 -
1 (D) USE OF POLLUTION PREVENTION ASSISTANCE ACCOUNT.--MONEY
2 IN THE POLLUTION PREVENTION ASSISTANCE ACCOUNT MAY BE USED BY
3 THE DEPARTMENT TO PROVIDE LOANS TO SMALL BUSINESSES FOR THE
4 ADOPTION OR INSTALLATION OF POLLUTION-PREVENTION OR ENERGY-
5 EFFICIENT EQUIPMENT OR PROCESSES IN ACCORDANCE WITH SECTION 2309
6 (RELATING TO POLLUTION PREVENTION ASSISTANCE LOANS).
7 § 2305. DEPARTMENT RESPONSIBILITIES.
8 (A) GENERAL RULE.--THE DEPARTMENT SHALL DO ALL OF THE
9 FOLLOWING:
10 (1) ADMINISTER THE PROGRAM.
11 (2) ESTABLISH WRITTEN GUIDELINES AS NECESSARY. ANY
12 GUIDELINES ESTABLISHED SHALL BE INCLUDED IN THE REPORT
13 REQUIRED BY CHAPTER 3 (RELATING TO ECONOMIC DEVELOPMENT
14 FINANCING STRATEGY).
15 (3) DEPOSIT PAYMENTS MADE BY RECIPIENTS IN THE FUND OR
16 THE POLLUTION PREVENTION ASSISTANCE ACCOUNT, AS APPROPRIATE.
17 (4) APPROVE STANDARDS FOR AREA LOAN ORGANIZATION
18 APPLICATION FEES.
19 (5) APPROVE COMMUNITY DEVELOPMENT FINANCIAL
20 INSTITUTIONS.
21 (B) PROGRAM.--IN ADMINISTERING THE PROGRAM, THE DEPARTMENT
22 MAY DO ANY OF THE FOLLOWING:
23 (1) PROVIDE GRANTS OR OTHER FINANCIAL ASSISTANCE TO AREA
24 LOAN ORGANIZATIONS FOR ANY OF THE FOLLOWING PURPOSES:
25 (I) TO ESTABLISH LOAN RESERVE FUNDS.
26 (II) TO REIMBURSE LOAN LOSSES TO COMMERCIAL BANKS
27 AND OTHER FINANCIAL INSTITUTIONS AS A MEANS OF
28 ENCOURAGING THE EXPANSION AND FINANCING OF SMALL
29 BUSINESSES.
30 (2) APPLY TO THE EX-IM BANK FOR DELEGATED AUTHORITY
20030S0778B1391 - 28 -
1 LENDER STATUS UNDER THE EX-IM BANK'S WORKING CAPITAL GUARANTY
2 PROGRAM.
3 (3) UTILIZE THE OUTSTANDING PORTFOLIO OF LOANS MADE
4 UNDER THIS CHAPTER TO RAISE ADDITIONAL FUNDS BY SELLING,
5 SECURING, HYPOTHECATING OR OTHERWISE USING SUCH LOAN PROCEEDS
6 AS A FINANCING VEHICLE IF THE FUNDS RAISED ARE USED BY THE
7 DEPARTMENT FOR EITHER OF THE FOLLOWING PURPOSES:
8 (I) TO MAKE NEW AND ADDITIONAL LOANS UNDER THIS
9 CHAPTER.
10 (II) TO PAY COSTS ASSOCIATED WITH FINANCING.
11 § 2306. CAPITAL DEVELOPMENT LOANS.
12 (A) APPLICATION.--A SMALL BUSINESS MAY SUBMIT AN APPLICATION
13 AND ANY APPLICABLE APPLICATION FEE TO ITS AREA LOAN ORGANIZATION
14 REQUESTING A LOAN FOR CERTAIN COSTS OF A CAPITAL DEVELOPMENT
15 PROJECT. THE APPLICATION SHALL BE ON THE FORM REQUIRED BY THE
16 DEPARTMENT AND SHALL INCLUDE OR DEMONSTRATE ALL OF THE
17 FOLLOWING:
18 (1) THE NAME AND ADDRESS OF THE APPLICANT.
19 (2) A STATEMENT OF THE AMOUNT OF LOAN ASSISTANCE SOUGHT.
20 (3) A STATEMENT OF THE CAPITAL DEVELOPMENT PROJECT
21 INCLUDING A DETAILED STATEMENT OF THE COST OF THE PROJECT.
22 (4) A FINANCIAL COMMITMENT FROM A RESPONSIBLE SOURCE FOR
23 ANY COST OF THE CAPITAL DEVELOPMENT PROJECT IN EXCESS OF THE
24 AMOUNT REQUESTED.
25 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
26 (B) AREA LOAN ORGANIZATION REVIEW.--
27 (1) UPON RECEIPT OF A COMPLETED APPLICATION, AN AREA
28 LOAN ORGANIZATION SHALL INVESTIGATE AND DETERMINE ALL OF THE
29 FOLLOWING:
30 (I) IF THE APPLICANT IS A SMALL BUSINESS.
20030S0778B1391 - 29 -
1 (II) IF THE PROJECT IS A CAPITAL DEVELOPMENT
2 PROJECT.
3 (III) IF, WHEN THE APPLICANT IS A SMALL BUSINESS,
4 THE CAPITAL DEVELOPMENT PROJECT DEMONSTRATES A
5 SUBSTANTIAL LIKELIHOOD OF CREATING OR PRESERVING
6 EMPLOYMENT ACTIVITIES IN THIS COMMONWEALTH OR IF, WHEN
7 THE APPLICANT IS AN AGRICULTURAL PRODUCER, THE PROJECT
8 DEMONSTRATES A SUBSTANTIAL LIKELIHOOD OF ENHANCING AND
9 GROWING NORMAL AGRICULTURE OPERATIONS.
10 (IV) THE ABILITY OF THE APPLICANT TO MEET AND
11 SATISFY THE DEBT SERVICE AS IT BECOMES DUE AND PAYABLE.
12 (V) THE EXISTENCE AND SUFFICIENCY OF COLLATERAL FOR
13 THE LOAN.
14 (VI) RELEVANT CRIMINAL AND CREDIT HISTORY AND
15 RATINGS OF THE APPLICANT AS DETERMINED FROM OUTSIDE
16 CREDIT REPORTING SERVICES AND OTHER SOURCES.
17 (VII) THE NUMBER OF EMPLOYMENT OPPORTUNITIES TO BE
18 CREATED OR PRESERVED BY THE PROPOSED CAPITAL DEVELOPMENT
19 PROJECT.
20 (VIII) IF THE APPLICANT COMPLIED WITH ALL OTHER
21 CRITERIA ESTABLISHED BY THE DEPARTMENT.
22 (2) UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
23 MET, THE AREA LOAN ORGANIZATIONS SHALL RECOMMEND THE
24 APPLICANT TO THE DEPARTMENT AND FORWARD THE APPLICATION WITH
25 ALL SUPPORTING DOCUMENTATION TO THE DEPARTMENT FOR ITS REVIEW
26 AND APPROVAL.
27 (C) DEPARTMENT REVIEW.--
28 (1) WITHIN 30 DAYS OF RECEIVING A RECOMMENDATION AND A
29 COMPLETED APPLICATION, THE DEPARTMENT SHALL REVIEW THE
30 APPLICATION. IF THE DEPARTMENT IS SATISFIED THAT ALL
20030S0778B1391 - 30 -
1 REQUIREMENTS HAVE BEEN MET, THE DEPARTMENT MAY APPROVE THE
2 LOAN REQUEST IN ACCORDANCE WITH THE FOLLOWING:
3 (I) A LOAN FOR LAND, BUILDINGS AND MACHINERY AND
4 EQUIPMENT MAY NOT EXCEED $200,000 OR 50% OF THE TOTAL
5 CAPITAL DEVELOPMENT PROJECT COSTS, WHICHEVER IS LESS. FOR
6 THE PURPOSES OF THIS SUBPARAGRAPH, CAPITAL DEVELOPMENT
7 PROJECT COSTS INCURRED DURING THE 12-MONTH PERIOD PRIOR
8 TO THE DATE OF SUBMISSION OF THE APPLICATION TO THE
9 DEPARTMENT SHALL BE CONSIDERED PART OF THE TOTAL CAPITAL
10 DEVELOPMENT PROJECT COSTS.
11 (II) A LOAN FOR WORKING CAPITAL MAY NOT EXCEED
12 $100,000 OR 50% OF THE TOTAL CAPITAL DEVELOPMENT PROJECT
13 COSTS, WHICHEVER IS LESS.
14 (III) EXCEPT FOR LOANS TO AGRICULTURAL PRODUCERS, A
15 LOAN MUST CREATE OR PRESERVE ONE JOB FOR EVERY $25,000
16 LOANED.
17 (2) THE DEPARTMENT SHALL NOTIFY THE AREA LOAN
18 ORGANIZATION AND APPLICANT OF ITS DECISION.
19 (D) APPROVALS.--FOR APPLICATIONS WHICH ARE APPROVED, THE
20 DEPARTMENT SHALL DRAW AN ADVANCE EQUAL TO THE PRINCIPAL AMOUNT
21 OF THE LOAN FROM THE FUND. THE ADVANCE SHALL BE FORWARDED TO THE
22 AREA LOAN ORGANIZATION AND, UPON RECEIPT BY THE AREA LOAN
23 ORGANIZATION, SHALL BECOME AN OBLIGATION OF THE AREA LOAN
24 ORGANIZATION. PRIOR TO PROVIDING LOAN FUNDS TO THE APPLICANT,
25 THE AREA LOAN ORGANIZATION SHALL REQUIRE THE APPLICANT TO
26 EXECUTE A NOTE AND TO ENTER INTO A LOAN AGREEMENT. IN ADDITION
27 TO THE REQUIREMENTS OF SUBSECTION (E), THE LOAN AGREEMENT SHALL
28 INCLUDE A PROVISION REQUIRING THE RECIPIENT TO USE THE LOAN
29 PROCEEDS TO PAY THE COSTS OF THE CAPITAL DEVELOPMENT PROJECT.
30 THE DEPARTMENT MAY REQUIRE THE AREA LOAN ORGANIZATION TO IMPOSE
20030S0778B1391 - 31 -
1 OTHER TERMS AND CONDITIONS ON THE RECIPIENT IF THE DEPARTMENT
2 DETERMINES THAT THEY ARE IN THE BEST INTERESTS OF THIS
3 COMMONWEALTH, INCLUDING A PROVISION REQUIRING COLLATERAL FOR ANY
4 PENALTY IMPOSED UNDER SUBSECTION (G).
5 (E) LOAN TERMS.--A LOAN AGREEMENT ENTERED INTO IN ACCORDANCE
6 WITH SUBSECTION (C) SHALL DO ALL OF THE FOLLOWING:
7 (1) STATE THE COLLATERAL SECURING THE LOAN. ALL LOANS
8 SHALL BE SECURED BY LIEN POSITIONS ON COLLATERAL AT THE
9 HIGHEST LEVEL OF PRIORITY AS MAY BE DETERMINED BY THE AREA
10 LOAN ORGANIZATION WITH THE APPROVAL OF THE DEPARTMENT.
11 (2) STATE THE REPAYMENT PERIOD IN ACCORDANCE WITH THE
12 FOLLOWING:
13 (I) A LOAN FOR REAL PROPERTY SHALL HAVE A REPAYMENT
14 PERIOD OF UP TO 15 YEARS.
15 (II) A LOAN FOR MACHINERY AND EQUIPMENT SHALL HAVE A
16 REPAYMENT PERIOD OF UP TO TEN YEARS.
17 (III) A LOAN FOR WORKING CAPITAL SHALL HAVE A
18 REPAYMENT PERIOD OF UP TO THREE YEARS.
19 (IV) IF, IN A CAPITAL DEVELOPMENT PROJECT, THERE ARE
20 TWO OR MORE USES PLANNED, THE LOAN TERMS MAY BE BLENDED.
21 (3) STATE THE INTEREST RATE IN ACCORDANCE WITH THE
22 FOLLOWING:
23 (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II), LOANS
24 SHALL BE MADE AT AN INTEREST RATE NOT TO EXCEED 5% FOR
25 THE TERM OF THE LOAN.
26 (II) A LOAN TO A SMALL BUSINESS WHICH IS AN
27 AGRICULTURAL PRODUCER SHALL BE MADE AT AN INTEREST RATE
28 OF NOT LESS THAN 2% FOR THE TERM OF THE LOAN IF ALL OF
29 THE FOLLOWING APPLY:
30 (A) A DECLARATION UNDER 35 PA.C.S. § 7301(C)
20030S0778B1391 - 32 -
1 (RELATING TO GENERAL AUTHORITY OF GOVERNOR) IS IN
2 EFFECT FOR AT LEAST TEN DAYS PRIOR TO THE DATE OF
3 APPLICATION.
4 (B) THE APPLICATION IS MADE WITHIN NINE MONTHS
5 OF TERMINATION OF THE DECLARATION.
6 (C) THE AGRICULTURAL PRODUCER IS IN THE AREA
7 WHICH HAS BEEN DECLARED TO BE A NATURAL DISASTER
8 AREA.
9 (F) LOAN ADMINISTRATION.--A LOAN MADE UNDER THIS SECTION
10 SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICIES
11 AND PROCEDURES BY THE AREA LOAN ORGANIZATION WHICH MADE THE
12 LOAN. EACH AREA LOAN ORGANIZATION SHALL SUBMIT AN ANNUAL REPORT
13 ON THE FORM REQUIRED BY THE DEPARTMENT AND WHICH INCLUDES OR
14 DEMONSTRATES ALL OF THE FOLLOWING:
15 (1) EACH OUTSTANDING LOAN.
16 (2) THE DATE APPROVED.
17 (3) THE ORIGINAL PRINCIPAL AMOUNT.
18 (4) THE CURRENT PRINCIPAL BALANCE.
19 (5) THE INTEREST RATE.
20 (6) THE PURPOSE FOR WHICH THE LOAN WAS MADE.
21 (7) AN ENUMERATION OF ANY PROBLEMS OR ISSUES WHICH HAVE
22 ARISEN WITH REGARD TO EACH LOAN.
23 (8) A STATEMENT REGARDING THE PROGRESS OF THE SMALL
24 BUSINESS IN CREATING OR PRESERVING ITS REQUISITE NUMBER OF
25 EMPLOYMENT OPPORTUNITIES.
26 (9) ANY OTHER INFORMATION OR DOCUMENTATION REQUIRED BY
27 THE DEPARTMENT.
28 (G) PENALTY.--
29 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE DEPARTMENT
30 SHALL IMPOSE A PENALTY UPON A RECIPIENT IF THE RECIPIENT
20030S0778B1391 - 33 -
1 FAILS TO CREATE OR PRESERVE THE NUMBER OF EMPLOYMENT
2 OPPORTUNITIES SPECIFIED IN ITS APPROVED APPLICATION.
3 (2) THE DEPARTMENT MAY WAIVE THE PENALTY REQUIRED BY
4 PARAGRAPH (1) IF THE DEPARTMENT DETERMINES THAT THE FAILURE
5 WAS DUE TO CIRCUMSTANCES OUTSIDE THE CONTROL OF THE
6 RECIPIENT.
7 (3) THE AMOUNT OF THE PENALTY IMPOSED UNDER PARAGRAPH
8 (1) SHALL BE EQUAL TO AN INCREASE IN THE INTEREST RATE TO 2%
9 GREATER THAN THE CURRENT PRIME INTEREST RATE FOR THE
10 REMAINDER OF THE LOAN.
11 (H) DEFAULTS.--THE DEPARTMENT MAY BY FORECLOSURE TAKE TITLE
12 TO A CAPITAL DEVELOPMENT PROJECT WHICH IT FINANCED IF
13 ACQUISITION IS NECESSARY TO PROTECT A LOAN MADE UNDER THIS
14 SECTION. THE DEPARTMENT SHALL PAY ALL COSTS ARISING OUT OF THE
15 FORECLOSURE AND ACQUISITION FROM MONEYS HELD IN THE FUND. THE
16 DEPARTMENT MAY, IN ORDER TO MINIMIZE FINANCIAL LOSSES AND
17 SUSTAIN EMPLOYMENT, LEASE THE CAPITAL DEVELOPMENT PROJECT. THE
18 DEPARTMENT MAY WITHDRAW MONEYS FROM THE FUND TO PURCHASE FIRST
19 MORTGAGES AND TO MAKE PAYMENTS ON FIRST MORTGAGES ON ANY CAPITAL
20 DEVELOPMENT PROJECT WHICH IT FINANCED WHERE PURCHASE OR PAYMENT
21 IS NECESSARY TO PROTECT A LOAN MADE UNDER THIS SECTION. THE
22 DEPARTMENT MAY SELL, TRANSFER, CONVEY AND ASSIGN THE FIRST
23 MORTGAGES AND SHALL DEPOSIT ANY MONEYS DERIVED FROM THE SALE OF
24 ANY FIRST MORTGAGES IN THE FUND.
25 § 2307. EDA LOANS.
26 (A) APPLICATION AND ADMINISTRATION PROCEDURES.--THE
27 DEPARTMENT SHALL ESTABLISH APPLICATION AND ADMINISTRATION
28 PROCEDURES TO BE USED FOR EDA LOANS. THE PROCEDURES SHALL BE
29 ESTABLISHED BY GUIDELINES AND SHALL CONFORM IN ALL RESPECTS TO
30 THOSE PROCEDURES REQUIRED OR ESTABLISHED BY THE ECONOMIC
20030S0778B1391 - 34 -
1 DEVELOPMENT ADMINISTRATION FOR USE OF FEDERAL FUNDS UNDER THE
2 PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965 (PUBLIC LAW
3 89-136, 42 U.S.C. § 3121 ET SEQ.).
4 (B) ELIGIBILITY FOR EDA LOANS.--THE DEPARTMENT SHALL
5 ESTABLISH ELIGIBILITY REQUIREMENTS TO BE USED FOR EDA LOANS. THE
6 REQUIREMENTS SHALL BE ESTABLISHED BY GUIDELINES AND SHALL
7 CONFORM IN ALL RESPECTS TO THOSE PROCEDURES REQUIRED OR
8 ESTABLISHED BY THE ECONOMIC DEVELOPMENT ADMINISTRATION FOR USE
9 OF FEDERAL FUNDS UNDER THE PUBLIC WORKS AND ECONOMIC DEVELOPMENT
10 ACT OF 1965.
11 § 2308. LOANS IN DISTRESSED COMMUNITIES.
12 (A) APPLICATION.--A SMALL BUSINESS LOCATED IN A DISTRESSED
13 COMMUNITY MAY SUBMIT AN APPLICATION AND ANY APPLICABLE
14 APPLICATION FEE TO A COMMUNITY DEVELOPMENT INSTITUTION
15 REQUESTING A LOAN FOR CERTAIN COSTS OF A CAPITAL DEVELOPMENT
16 PROJECT. THE APPLICATION SHALL BE ON THE FORM REQUIRED BY THE
17 DEPARTMENT AND SHALL INCLUDE OR DEMONSTRATE ALL OF THE
18 FOLLOWING:
19 (1) THE NAME AND ADDRESS OF THE APPLICANT.
20 (2) A STATEMENT THAT THE SMALL BUSINESS IS ENGAGED IN
21 BUSINESS-TO-PUBLIC SERVICE OR IN THE MERCANTILE, COMMERCIAL
22 OR POINT-OF-SALE RETAIL BUSINESS SECTORS.
23 (3) A STATEMENT OF THE AMOUNT OF LOAN ASSISTANCE SOUGHT.
24 (4) A STATEMENT OF THE CAPITAL DEVELOPMENT PROJECT,
25 INCLUDING A DETAILED STATEMENT OF THE COST OF THE PROJECT.
26 (5) A FINANCIAL COMMITMENT FROM A RESPONSIBLE SOURCE FOR
27 THE COST OF THE CAPITAL DEVELOPMENT PROJECT IN EXCESS OF THE
28 AMOUNT REQUESTED.
29 (6) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
30 (B) COMMUNITY DEVELOPMENT INSTITUTION REVIEW.--
20030S0778B1391 - 35 -
1 (1) UPON RECEIPT OF A COMPLETED APPLICATION, A COMMUNITY
2 DEVELOPMENT INSTITUTION SHALL INVESTIGATE AND DETERMINE ALL
3 OF THE FOLLOWING:
4 (I) IF THE APPLICANT IS A SMALL BUSINESS WHICH IS
5 ENGAGED IN BUSINESS-TO-PUBLIC SERVICE OR IN THE
6 MERCANTILE, COMMERCIAL OR POINT-OF-SALE RETAIL BUSINESS
7 SECTORS IN ACCORDANCE WITH CONDITIONS OR CRITERIA
8 ESTABLISHED BY THE DEPARTMENT.
9 (II) IF THE PROJECT IS A CAPITAL DEVELOPMENT
10 PROJECT.
11 (III) IF THE APPLICANT HAS DEMONSTRATED A DIRECT
12 IMPACT ON THE COMMUNITY IN WHICH THE CAPITAL DEVELOPMENT
13 PROJECT IS OR WILL BE LOCATED, ON RESIDENTS OF THAT
14 COMMUNITY OR ON THE LOCAL AND/OR REGIONAL ECONOMY. THE
15 DEPARTMENT SHALL ESTABLISH CRITERIA THAT WILL ASSIST IN
16 MAKING THIS DEMONSTRATION.
17 (IV) NUMBER OF EMPLOYMENT OPPORTUNITIES TO BE
18 CREATED OR PRESERVED BY THE PROPOSED CAPITAL DEVELOPMENT
19 PROJECT.
20 (V) IF THE APPLICANT COMPLIED WITH ALL OTHER
21 CRITERIA ESTABLISHED BY THE DEPARTMENT.
22 (2) UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
23 MET, THE COMMUNITY DEVELOPMENT INSTITUTION SHALL RECOMMEND
24 THE APPLICANT TO THE DEPARTMENT AND FORWARD THE APPLICATION
25 WITH ALL SUPPORTING DOCUMENTATION TO THE DEPARTMENT FOR ITS
26 REVIEW AND APPROVAL.
27 (C) DEPARTMENT REVIEW.--
28 (1) UPON RECEIPT OF A RECOMMENDATION AND A COMPLETED
29 APPLICATION, THE DEPARTMENT SHALL INVESTIGATE AND DETERMINE
30 ALL OF THE FOLLOWING:
20030S0778B1391 - 36 -
1 (I) THE ABILITY OF THE APPLICANT TO MEET AND SATISFY
2 THE DEBT SERVICE AS IT BECOMES DUE AND PAYABLE. IN
3 REVIEWING REPAYMENT OBLIGATIONS, LOANS SHALL NOT BE
4 APPROVED ON THE BASIS OF DIRECT FINANCIAL RETURN ON
5 INVESTMENT AND SHALL NOT BE HELD TO THE LOAN LOSS
6 STANDARDS OF PRIVATE COMMERCIAL LENDERS. LOANS SHALL BE
7 REVIEWED FOR THE PURPOSE OF ESTABLISHING A STRONG
8 ECONOMIC BASE AND PROMOTING ENTREPRENEURIAL ACTIVITY
9 WITHIN THE DISTRESSED COMMUNITY.
10 (II) THE EXISTENCE AND SUFFICIENCY OF COLLATERAL FOR
11 THE LOAN.
12 (III) RELEVANT CRIMINAL AND CREDIT HISTORY AND
13 RATINGS OF THE APPLICANT AS DETERMINED FROM OUTSIDE
14 CREDIT REPORTING SERVICES AND OTHER SOURCES.
15 (2) IF THE DEPARTMENT IS SATISFIED THAT ALL REQUIREMENTS
16 HAVE BEEN MET, THE DEPARTMENT MAY APPROVE THE LOAN REQUEST IN
17 AN AMOUNT NOT TO EXCEED $200,000 OR 50% OF THE TOTAL CAPITAL
18 DEVELOPMENT PROJECT COSTS, WHICHEVER IS LESS. FOR THE PURPOSE
19 OF THIS PARAGRAPH, CAPITAL DEVELOPMENT PROJECT COSTS, EXCEPT
20 THE COSTS RELATED TO WORKING CAPITAL, INCURRED DURING THE 12-
21 MONTH PERIOD PRIOR TO THE DATE OF SUBMISSION OF THE
22 APPLICATION TO THE DEPARTMENT SHALL BE CONSIDERED PART OF THE
23 TOTAL CAPITAL DEVELOPMENT PROJECT COSTS.
24 (3) THE DEPARTMENT SHALL NOTIFY THE COMMUNITY
25 DEVELOPMENT INSTITUTION AND APPLICANT OF ITS DECISION.
26 (D) APPROVALS.--FOR APPLICATIONS WHICH ARE APPROVED, THE
27 DEPARTMENT SHALL DRAW AN ADVANCE EQUAL TO THE PRINCIPAL AMOUNT
28 OF THE LOAN FROM THE FUND AND, PRIOR TO PROVIDING LOAN FUNDS TO
29 THE APPLICANT, THE DEPARTMENT SHALL REQUIRE THE APPLICANT TO
30 EXECUTE A NOTE AND TO ENTER INTO A LOAN AGREEMENT. IN ADDITION
20030S0778B1391 - 37 -
1 TO THE REQUIREMENTS OF SUBSECTION (E), THE LOAN AGREEMENT SHALL
2 INCLUDE A PROVISION REQUIRING THE RECIPIENT TO USE THE LOAN
3 PROCEEDS TO PAY THE COSTS OF THE CAPITAL DEVELOPMENT PROJECT.
4 THE DEPARTMENT MAY IMPOSE OTHER TERMS AND CONDITIONS ON THE
5 RECIPIENT IF THE DEPARTMENT DETERMINES THEY ARE IN THE BEST
6 INTERESTS OF THIS COMMONWEALTH, INCLUDING A PROVISION REQUIRING
7 COLLATERAL FOR ANY PENALTY IMPOSED UNDER SUBSECTION (G).
8 (E) LOAN TERMS.--A LOAN AGREEMENT ENTERED INTO IN ACCORDANCE
9 WITH SUBSECTION (D) SHALL DO ALL OF THE FOLLOWING:
10 (1) STATE ANY COLLATERAL SECURING THE LOAN. THE
11 DEPARTMENT MAY USE ITS BEST JUDGMENT TO IDENTIFY AND SECURE
12 COLLATERAL.
13 (2) STATE THE REPAYMENT PERIOD WHICH MAY BE FLEXIBLE.
14 (3) STATE THE INTEREST RATE WHICH MAY NOT BE LESS THAN
15 2% NOR MORE THAN 5% FOR THE TERM OF THE LOAN.
16 (4) STATE THAT THE RECIPIENT AGREES TO MAINTAIN, AT A
17 MINIMUM, THE NUMBER OF JOBS IN EXISTENCE AS OF THE DATE OF
18 LOAN APPLICATION.
19 (F) LOAN ADMINISTRATION.--A LOAN MADE UNDER THIS SECTION
20 SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICIES
21 AND PROCEDURES.
22 (G) PENALTY.--
23 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE DEPARTMENT
24 SHALL IMPOSE A PENALTY UPON A RECIPIENT IF THE RECIPIENT
25 FAILS TO PRESERVE THE NUMBER OF EMPLOYMENT OPPORTUNITIES
26 SPECIFIED IN ITS APPROVED APPLICATION.
27 (2) THE DEPARTMENT MAY WAIVE THE PENALTY REQUIRED BY
28 PARAGRAPH (1) IF THE DEPARTMENT DETERMINES THAT THE FAILURE
29 WAS DUE TO CIRCUMSTANCES OUTSIDE THE CONTROL OF THE
30 RECIPIENT.
20030S0778B1391 - 38 -
1 (3) THE AMOUNT OF ANY PENALTY IMPOSED UNDER PARAGRAPH
2 (1) SHALL BE EQUAL TO AN INCREASE IN THE INTEREST RATE TO 2%
3 GREATER THAN THE CURRENT PRIME INTEREST RATE FOR THE
4 REMAINDER OF THE LOAN.
5 (H) DEFAULTS.--THE DEPARTMENT MAY TAKE TITLE BY FORECLOSURE
6 TO A CAPITAL DEVELOPMENT PROJECT WHICH IT FINANCED WHERE
7 ACQUISITION IS NECESSARY TO PROTECT A LOAN MADE UNDER THIS
8 SECTION. THE DEPARTMENT SHALL PAY ALL COSTS ARISING OUT OF THE
9 FORECLOSURE AND ACQUISITION FROM MONEY HELD IN THE FUND. THE
10 DEPARTMENT MAY, IN ORDER TO MINIMIZE FINANCIAL LOSSES AND
11 SUSTAIN EMPLOYMENT, LEASE THE CAPITAL DEVELOPMENT PROJECT. THE
12 DEPARTMENT MAY WITHDRAW MONEY FROM THE FUND TO PURCHASE FIRST
13 MORTGAGES AND TO MAKE PAYMENTS ON FIRST MORTGAGES ON ANY CAPITAL
14 DEVELOPMENT PROJECT WHICH IT FINANCED IF PURCHASE OR PAYMENT IS
15 NECESSARY TO PROTECT A LOAN MADE UNDER THIS SECTION. THE
16 DEPARTMENT MAY SELL, TRANSFER, CONVEY AND ASSIGN THE FIRST
17 MORTGAGES AND SHALL DEPOSIT IN THE FUND MONEY DERIVED FROM THE
18 SALE OF ANY FIRST MORTGAGES.
19 § 2309. POLLUTION PREVENTION ASSISTANCE LOANS.
20 (A) APPLICATION.--A SMALL BUSINESS MAY SUBMIT AN APPLICATION
21 AND ANY APPLICATION FEE TO A POLLUTION PREVENTION ASSISTANCE
22 AGENCY REQUESTING A LOAN FOR A POLLUTION PREVENTION
23 INFRASTRUCTURE. THE APPLICATION SHALL BE ON THE FORM REQUIRED BY
24 THE DEPARTMENT AND SHALL INCLUDE OR DEMONSTRATE ALL OF THE
25 FOLLOWING:
26 (1) THE NAME AND ADDRESS OF THE APPLICANT.
27 (2) A STATEMENT OF THE AMOUNT OF LOAN ASSISTANCE SOUGHT.
28 (3) A STATEMENT OF THE POLLUTION PREVENTION
29 INFRASTRUCTURE, INCLUDING A DETAILED STATEMENT OF THE COST OF
30 THE INFRASTRUCTURE.
20030S0778B1391 - 39 -
1 (4) A FINANCIAL COMMITMENT FROM A RESPONSIBLE SOURCE FOR
2 THE COST OF THE POLLUTION PREVENTION INFRASTRUCTURE IN EXCESS
3 OF THE AMOUNT REQUESTED.
4 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
5 (B) POLLUTION PREVENTION ASSISTANCE AGENCY REVIEW.--
6 (1) UPON RECEIPT OF A COMPLETED APPLICATION, A POLLUTION
7 PREVENTION ASSISTANCE AGENCY SHALL INVESTIGATE AND DETERMINE
8 ALL OF THE FOLLOWING:
9 (I) IF THE APPLICANT IS A SMALL BUSINESS.
10 (II) IF THE PROJECT IS FOR POLLUTION PREVENTION
11 INFRASTRUCTURE.
12 (III) IF THE APPLICANT COMPLIED WITH ALL OTHER
13 CRITERIA ESTABLISHED BY THE DEPARTMENT.
14 (2) UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
15 MET, THE POLLUTION PREVENTION ASSISTANCE AGENCY SHALL
16 RECOMMEND THE APPLICANT TO THE DEPARTMENT AND FORWARD THE
17 APPLICATION WITH ALL SUPPORTING DOCUMENTATION TO THE
18 DEPARTMENT FOR ITS REVIEW AND APPROVAL.
19 (C) DEPARTMENT REVIEW.--
20 (1) UPON RECEIPT OF A RECOMMENDATION AND A COMPLETED
21 APPLICATION, THE DEPARTMENT SHALL INVESTIGATE AND DETERMINE
22 ALL OF THE FOLLOWING:
23 (I) IF THE POLLUTION PREVENTION INFRASTRUCTURE
24 DEMONSTRATES A SUBSTANTIAL LIKELIHOOD OF PREVENTING OR
25 REDUCING POLLUTION. THE DEPARTMENT OF ENVIRONMENTAL
26 PROTECTION SHALL ASSIST THE DEPARTMENT IN REVIEWING THE
27 APPLICATIONS AND PROVIDE TECHNICAL ASSISTANCE.
28 (II) THE ABILITY OF THE APPLICANT TO MEET AND
29 SATISFY THE DEBT SERVICE AS IT BECOMES DUE AND PAYABLE.
30 IN REVIEWING REPAYMENT OBLIGATIONS, LOANS SHALL NOT BE
20030S0778B1391 - 40 -
1 APPROVED ON THE BASIS OF DIRECT FINANCIAL RETURN ON
2 INVESTMENT AND SHALL NOT BE HELD TO THE LOAN LOSS
3 STANDARDS OF PRIVATE COMMERCIAL LENDERS. LOANS SHALL BE
4 REVIEWED FOR THE PURPOSE OF REDUCING POLLUTION THROUGH
5 SOURCE REDUCTION TECHNOLOGIES OR PROCESSES.
6 (III) THE EXISTENCE AND SUFFICIENCY OF COLLATERAL
7 FOR THE LOAN.
8 (IV) RELEVANT CRIMINAL AND CREDIT HISTORY AND
9 RATINGS OF THE APPLICANT AS DETERMINED FROM OUTSIDE
10 CREDIT REPORTING SERVICES AND OTHER SOURCES.
11 (2) IF THE DEPARTMENT IS SATISFIED THAT ALL REQUIREMENTS
12 HAVE BEEN MET, THE DEPARTMENT MAY APPROVE THE LOAN REQUEST. A
13 LOAN APPROVED UNDER THIS SUBSECTION MAY NOT EXCEED THE LESSER
14 OF:
15 (I) $100,000; OR
16 (II) 75% OF INFRASTRUCTURE COSTS.
17 (3) THE DEPARTMENT SHALL NOTIFY THE POLLUTION PREVENTION
18 ASSISTANCE AGENCY AND APPLICANT OF ITS DECISION.
19 (D) APPROVALS.--FOR APPLICATIONS WHICH ARE APPROVED, THE
20 DEPARTMENT SHALL DRAW AN ADVANCE EQUAL TO THE PRINCIPAL AMOUNT
21 OF THE LOAN FROM THE POLLUTION PREVENTION ASSISTANCE ACCOUNT.
22 PRIOR TO PROVIDING LOAN FUNDS TO THE APPLICANT, THE DEPARTMENT
23 SHALL REQUIRE THE APPLICANT TO EXECUTE A NOTE AND TO ENTER INTO
24 A LOAN AGREEMENT. IN ADDITION TO THE REQUIREMENTS OF SUBSECTION
25 (E), THE LOAN AGREEMENT SHALL INCLUDE A PROVISION REQUIRING THE
26 RECIPIENT TO USE THE LOAN PROCEEDS TO PAY THE COSTS OF THE
27 POLLUTION PREVENTION INFRASTRUCTURE. THE DEPARTMENT MAY IMPOSE
28 OTHER TERMS AND CONDITIONS ON THE RECIPIENT IF THE DEPARTMENT
29 DETERMINES THEY ARE IN THE BEST INTERESTS OF THIS COMMONWEALTH,
30 INCLUDING A PROVISION REQUIRING COLLATERAL FOR ANY PENALTY
20030S0778B1391 - 41 -
1 IMPOSED UNDER SUBSECTION (G).
2 (E) LOAN TERMS.--A LOAN AGREEMENT ENTERED INTO IN ACCORDANCE
3 WITH SUBSECTION (D) SHALL DO ALL OF THE FOLLOWING:
4 (1) STATE THE COLLATERAL SECURING THE LOAN. ALL LOANS
5 SHALL BE SECURED BY LIEN POSITIONS ON COLLATERAL AT THE
6 HIGHEST LEVEL OF PRIORITY AS MAY BE DETERMINED BY THE
7 DEPARTMENT.
8 (2) STATE THE REPAYMENT PERIOD WHICH MAY NOT EXCEED 10
9 YEARS.
10 (3) STATE THAT THE INTEREST RATE IS 2%.
11 (4) STATE THAT ANY LOAN FEE IS NOT TO EXCEED 5% OF THE
12 LOAN AMOUNT.
13 (F) LOAN ADMINISTRATION.--A LOAN MADE UNDER THIS SECTION
14 SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICIES
15 AND PROCEDURES.
16 (G) PENALTY.--
17 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE DEPARTMENT
18 SHALL IMPOSE A PENALTY UPON A RECIPIENT IF THE RECIPIENT
19 FAILS TO CARRY OUT THE POLLUTION PREVENTION INFRASTRUCTURE
20 PROJECT AS SPECIFIED IN ITS APPROVED APPLICATION.
21 (2) THE DEPARTMENT MAY WAIVE THE PENALTY REQUIRED BY
22 PARAGRAPH (1) IF THE DEPARTMENT DETERMINES THAT THE FAILURE
23 WAS DUE TO CIRCUMSTANCES OUTSIDE THE CONTROL OF THE
24 RECIPIENT.
25 (3) THE AMOUNT OF ANY PENALTY IMPOSED UNDER PARAGRAPH
26 (1) SHALL BE EQUAL TO AN INCREASE IN THE INTEREST RATE TO 2%
27 GREATER THAN THE CURRENT PRIME INTEREST RATE FOR THE
28 REMAINDER OF THE LOAN.
29 (H) DEFAULTS.--THE DEPARTMENT MAY TAKE TITLE BY FORECLOSURE
30 TO A POLLUTION PREVENTION INFRASTRUCTURE WHICH IT FINANCED IF
20030S0778B1391 - 42 -
1 ACQUISITION IS NECESSARY TO PROTECT A LOAN MADE UNDER THIS
2 SECTION. THE DEPARTMENT SHALL PAY ALL COSTS ARISING OUT OF THE
3 FORECLOSURE AND ACQUISITION FROM MONEY HELD IN THE POLLUTION
4 PREVENTION ASSISTANCE ACCOUNT. THE DEPARTMENT MAY, IN ORDER TO
5 MINIMIZE FINANCIAL LOSSES AND SUSTAIN EMPLOYMENT, LEASE THE
6 POLLUTION PREVENTION INFRASTRUCTURE. THE DEPARTMENT MAY WITHDRAW
7 MONEY FROM THE POLLUTION PREVENTION ASSISTANCE ACCOUNT TO
8 PURCHASE FIRST MORTGAGES AND TO MAKE PAYMENTS ON FIRST MORTGAGES
9 ON ANY POLLUTION PREVENTION INFRASTRUCTURE WHICH IT FINANCED IF
10 THE PURCHASE OR PAYMENT IS NECESSARY TO PROTECT A LOAN MADE
11 UNDER THIS SECTION. THE DEPARTMENT MAY SELL, TRANSFER, CONVEY
12 AND ASSIGN THE FIRST MORTGAGES AND SHALL DEPOSIT ANY MONEY
13 DERIVED FROM THE SALE OF ANY FIRST MORTGAGES IN THE POLLUTION
14 PREVENTION ASSISTANCE ACCOUNT.
15 § 2310. EXPORT FINANCING LOANS.
16 (A) APPLICATION.--A PERSON MAY SUBMIT AN APPLICATION AND ANY
17 APPLICABLE APPLICATION FEE TO THE DEPARTMENT OR ITS AREA LOAN
18 ORGANIZATION REQUESTING A LOAN FOR CERTAIN COSTS OF A CAPITAL
19 DEVELOPMENT PROJECT WHICH WILL BE USED IN EXPORT ACTIVITIES. THE
20 APPLICATION MUST BE ON THE FORM REQUIRED BY THE DEPARTMENT AND
21 MUST INCLUDE OR DEMONSTRATE ALL OF THE FOLLOWING:
22 (1) THE NAME AND ADDRESS OF THE APPLICANT.
23 (2) A STATEMENT OF THE AMOUNT OF LOAN ASSISTANCE SOUGHT.
24 (3) A STATEMENT OF THE CAPITAL DEVELOPMENT PROJECT,
25 INCLUDING A DETAILED STATEMENT OF THE COST OF THE PROJECT.
26 (4) A FINANCIAL COMMITMENT FROM A RESPONSIBLE SOURCE FOR
27 ANY COST OF THE CAPITAL DEVELOPMENT PROJECT IN EXCESS OF THE
28 AMOUNT REQUESTED.
29 (5) A STATEMENT THAT THE LOAN, IF APPROVED, WOULD NOT
30 SUPPLANT FUNDING FROM PRIVATE SECTOR SOURCES ON COMMERCIALLY
20030S0778B1391 - 43 -
1 REASONABLE TERMS.
2 (6) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
3 (B) REVIEW.--UPON RECEIPT OF A COMPLETED APPLICATION, THE
4 DEPARTMENT SHALL INVESTIGATE AND DETERMINE ALL OF THE FOLLOWING:
5 (1) IF THE APPLICANT IS AN EXPORT BUSINESS.
6 (2) IF THE PROJECT IS A CAPITAL DEVELOPMENT PROJECT.
7 (3) THE ABILITY OF THE APPLICANT TO MEET AND SATISFY THE
8 DEBT SERVICE AS IT BECOMES DUE AND PAYABLE.
9 (4) THE EXISTENCE AND SUFFICIENCY OF COLLATERAL FOR THE
10 LOAN.
11 (5) RELEVANT CRIMINAL AND CREDIT HISTORY AND RATINGS OF
12 THE APPLICANT AS DETERMINED FROM OUTSIDE CREDIT REPORTING
13 SERVICES AND OTHER SOURCES.
14 (6) NUMBER OF EMPLOYMENT OPPORTUNITIES TO BE CREATED OR
15 PRESERVED BY THE PROPOSED CAPITAL DEVELOPMENT PROJECT.
16 (7) IF THE APPLICANT COMPLIED WITH ALL OTHER CRITERIA
17 ESTABLISHED BY THE DEPARTMENT.
18 (C) APPROVALS.--IF THE DEPARTMENT IS SATISFIED THAT ALL
19 REQUIREMENTS HAVE BEEN MET, THE DEPARTMENT MAY APPROVE THE LOAN
20 REQUEST. A LOAN APPROVED UNDER THIS SECTION MAY NOT EXCEED
21 $350,000. THE DEPARTMENT SHALL NOTIFY THE APPLICANT AND, IF
22 APPLICABLE, THE AREA LOAN ORGANIZATION OF ITS DECISION. THE
23 DEPARTMENT SHALL RESERVE AN AMOUNT EQUAL TO THE PRINCIPAL AMOUNT
24 OF THE LOAN WITHIN THE FUND OR THE SPECIAL ACCOUNT AUTHORIZED BY
25 SECTION 2304(C)(2) (RELATING TO FUND AND ACCOUNTS). PRIOR TO
26 PROVIDING FUNDS TO THE APPLICANT, THE DEPARTMENT SHALL REQUIRE
27 THE APPLICANT TO EXECUTE A NOTE AND ENTER INTO A LOAN AGREEMENT.
28 IN ADDITION TO THE REQUIREMENTS OF SUBSECTION (D), THE LOAN
29 AGREEMENT SHALL INCLUDE A PROVISION REQUIRING THE RECIPIENT TO
30 USE THE LOAN PROCEEDS TO PAY THE COSTS OF THE CAPITAL
20030S0778B1391 - 44 -
1 DEVELOPMENT PROJECT. THE DEPARTMENT MAY IMPOSE OTHER TERMS AND
2 CONDITIONS ON THE RECIPIENT IF THE DEPARTMENT DETERMINES THEY
3 ARE IN THE BEST INTERESTS OF THIS COMMONWEALTH, INCLUDING ANY OF
4 THE FOLLOWING:
5 (1) A PROVISION REQUIRING COLLATERAL FOR ANY PENALTY
6 IMPOSED UNDER SUBSECTION (F).
7 (2) A PROVISION REQUIRING THE PERSON TO BE ELIGIBLE FOR
8 AN INSURANCE POLICY.
9 (3) A PROVISION REQUIRING THE LOAN TO BE GUARANTEED BY
10 THE WORKING CAPITAL GUARANTY PROGRAM OFFERED BY THE EX-IM
11 BANK.
12 (4) A PROVISION REQUIRING AN EXPORT CREDIT SALES
13 CONTRACT INSURED BY AN INSURANCE POLICY.
14 (D) LOAN TERMS.--A LOAN AGREEMENT ENTERED INTO IN ACCORDANCE
15 WITH SUBSECTION (C) SHALL DO ALL OF THE FOLLOWING:
16 (1) STATE THE COLLATERAL SECURING THE LOAN. ALL LOANS
17 SHALL BE SECURED BY LIEN POSITIONS ON COLLATERAL AT THE
18 HIGHEST LEVEL OF PRIORITY AS MAY BE DETERMINED BY THE
19 DEPARTMENT.
20 (2) STATE THE REPAYMENT PERIOD AS DETERMINED BY THE
21 DEPARTMENT.
22 (3) STATE THE INTEREST RATE AS DETERMINED BY THE
23 DEPARTMENT.
24 (E) LOAN ADMINISTRATION.--A LOAN MADE UNDER THIS SECTION
25 SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICIES
26 AND PROCEDURES.
27 (F) PENALTY.--
28 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE DEPARTMENT
29 SHALL IMPOSE A PENALTY UPON A RECIPIENT IF THE RECIPIENT
30 FAILS TO CARRY OUT THE EXPORT ACTIVITIES SPECIFIED IN ITS
20030S0778B1391 - 45 -
1 APPROVED APPLICATION.
2 (2) THE DEPARTMENT MAY WAIVE THE PENALTY REQUIRED BY
3 PARAGRAPH (1) IF THE DEPARTMENT DETERMINES THAT THE FAILURE
4 WAS DUE TO CIRCUMSTANCES OUTSIDE THE CONTROL OF THE
5 RECIPIENT.
6 (3) THE AMOUNT OF THE PENALTY IMPOSED UNDER PARAGRAPH
7 (1) SHALL BE EQUAL TO AN INCREASE IN THE INTEREST RATE TO 2%
8 GREATER THAN THE CURRENT PRIME INTEREST RATE FOR THE
9 REMAINDER OF THE LOAN.
10 (G) DEFAULTS.--THE DEPARTMENT MAY, BY FORECLOSURE, TAKE
11 TITLE TO A CAPITAL DEVELOPMENT PROJECT WHICH IT FINANCED IF
12 ACQUISITION IS NECESSARY TO PROTECT A LOAN MADE UNDER THIS
13 SECTION. THE DEPARTMENT SHALL PAY ALL COSTS ARISING OUT OF THE
14 FORECLOSURE AND ACQUISITION FROM MONEY HELD IN THE FUND OR A
15 SPECIAL ACCOUNT AUTHORIZED BY SECTION 2304(C)(2). THE DEPARTMENT
16 MAY, IN ORDER TO MINIMIZE FINANCIAL LOSSES AND SUSTAIN
17 EMPLOYMENT, LEASE THE CAPITAL DEVELOPMENT PROJECT. THE
18 DEPARTMENT MAY WITHDRAW MONEY FROM THE FUND OR A SPECIAL ACCOUNT
19 AUTHORIZED BY SECTION 2304(C)(2) TO PURCHASE FIRST MORTGAGES AND
20 TO MAKE PAYMENTS ON FIRST MORTGAGES ON ANY CAPITAL DEVELOPMENT
21 PROJECT WHICH IT FINANCED IF PURCHASE OR PAYMENT IS NECESSARY TO
22 PROTECT A LOAN MADE UNDER THIS SECTION. THE DEPARTMENT MAY SELL,
23 TRANSFER, CONVEY AND ASSIGN THE FIRST MORTGAGES AND SHALL
24 DEPOSIT ANY MONEY DERIVED FROM THE SALE OF ANY FIRST MORTGAGES
25 IN THE FUND OR A SPECIAL ACCOUNT AUTHORIZED BY SECTION
26 2304(C)(2).
27 § 2311. REPORTING AND INSPECTION.
28 (A) INSPECTION.--AN APPLICANT OR A RECIPIENT SHALL, UPON
29 REQUEST, PERMIT AUTHORIZED EMPLOYEES OF THE DEPARTMENT OR ITS
30 AGENT TO INSPECT THE PLANT, BOOKS AND RECORDS OF THE APPLICANT
20030S0778B1391 - 46 -
1 OR RECIPIENT.
2 (B) UPDATING.--AN APPLICANT OR A RECIPIENT SHALL PROVIDE
3 UPDATED INFORMATION TO THE DEPARTMENT AND ITS AGENTS IF
4 CONDITIONS CHANGE OR TO THE EXTENT THAT THE INFORMATION
5 ORIGINALLY GIVEN BECOMES INACCURATE OR MISLEADING.
6 (C) PERIODIC REPORTS.--A RECIPIENT SHALL PROVIDE THE
7 DEPARTMENT AND ITS AGENTS WITH SUCH PERIODIC FINANCIAL REPORTS
8 AS THE DEPARTMENT MAY REQUIRE UNTIL THE LOAN IS REPAID IN FULL.
9 (D) FINANCIAL AND PERFORMANCE AUDITS.--AN AGENT OF THE
10 DEPARTMENT SHALL ANNUALLY SUBMIT TO THE DEPARTMENT, AT THE
11 AGENT'S EXPENSE, AN INDEPENDENT FINANCIAL AUDIT. IF THE AUDIT
12 REVEALS MISCONDUCT OF A MATERIAL NATURE ON THE PART OF THE
13 AGENT, THE DEPARTMENT SHALL TAKE APPROPRIATE ACTION.
14 § 2312. LIMITATIONS.
15 NO LOANS SHALL BE RECOMMENDED OR APPROVED IF THE PROCEEDS OF
16 THE LOAN COULD DO ANY OF THE FOLLOWING:
17 (1) CAUSE, AID OR ASSIST DIRECTLY IN THE RELOCATION OF
18 ANY BUSINESS OPERATIONS FROM ONE PART OF THIS COMMONWEALTH TO
19 ANOTHER UNLESS THERE IS AT LEAST A 25% NET INCREASE IN
20 EMPLOYMENT.
21 (2) REFINANCE ANY PORTION OF THE TOTAL COST OF A CAPITAL
22 DEVELOPMENT PROJECT, POLLUTION PREVENTION INFRASTRUCTURE OR
23 OTHER EXISTING LOANS OR DEBT.
24 (3) FINANCE A CAPITAL DEVELOPMENT PROJECT OR POLLUTION
25 PREVENTION INFRASTRUCTURE LOCATED OUTSIDE THE GEOGRAPHIC
26 BOUNDARIES OF THIS COMMONWEALTH.
27 (4) PROVIDE FUNDS, DIRECTLY OR DIRECTLY, FOR PAYMENT
28 DISTRIBUTION OR AS LOAN OWNERS, PARTNERS OR SHAREHOLDERS OF A
29 SMALL BUSINESS, EXCEPT AS ORDINARY COMPENSATION FOR SERVICES
30 RENDERED.
20030S0778B1391 - 47 -
1 (5) PROVIDE FUNDS FOR SPECULATION IN REAL OR PERSONAL
2 PROPERTY, WHETHER TANGIBLE OR INTANGIBLE.
3 CHAPTER 25
4 INDUSTRIAL DEVELOPMENT ASSISTANCE
5 (RESERVED)
6 CHAPTER 27
7 CUSTOMIZED JOB TRAINING
8 (RESERVED)
9 CHAPTER 29
10 MACHINERY AND EQUIPMENT LOAN
11 SEC.
12 2901. SCOPE.
13 2902. DEFINITIONS.
14 2903. ESTABLISHMENT.
15 2904. MACHINERY AND EQUIPMENT LOAN FUND.
16 2905. ELIGIBILITY FOR LOANS; TERMS AND CONDITIONS.
17 2906. APPLICATION AND ADMINISTRATION.
18 2907. POWERS OF SECRETARY.
19 2908. REPORTING AND INSPECTION.
20 2909. NONDISCRIMINATION.
21 2910. CONFLICT OF INTEREST.
22 2911. REPORTS TO GENERAL ASSEMBLY.
23 2912. GUIDELINES.
24 § 2901. SCOPE.
25 THIS CHAPTER RELATES TO THE MACHINERY AND EQUIPMENT LOAN
26 PROGRAM.
27 § 2902. DEFINITIONS.
28 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
29 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
30 CONTEXT CLEARLY INDICATES OTHERWISE:
20030S0778B1391 - 48 -
1 "BUSINESS ENTERPRISE." A FOR-PROFIT CORPORATION, PARTNERSHIP
2 OR PROPRIETORSHIP. THE TERM INCLUDES A MEDICAL FACILITY.
3 "FARM COMMODITY." ANY PENNSYLVANIA-GROWN AGRICULTURAL,
4 HORTICULTURAL, AQUACULTURAL, VEGETABLE, FRUIT AND FLORICULTURAL
5 PRODUCT OF THE SOIL, LIVESTOCK AND MEATS, WOOLS, HIDES, FURS,
6 POULTRY, EGGS, DAIRY PRODUCTS, NUTS, MUSHROOMS, HONEY PRODUCTS
7 AND FOREST PRODUCTS.
8 "FUND." THE MACHINERY AND EQUIPMENT LOAN FUND CREATED AND
9 ESTABLISHED BY THIS CHAPTER.
10 "MEDICAL FACILITY." AN ENTITY LICENSED AS A HOSPITAL UNDER
11 THE ACT OF JUNE 13, 1967 (P.L.31, NO.21), KNOWN AS THE PUBLIC
12 WELFARE CODE, OR THE ACT OF JULY 19, 1979 (P.L.130, NO.48),
13 KNOWN AS THE HEALTH CARE FACILITIES ACT.
14 "NORMAL AGRICULTURAL OPERATION." THE TERM SHALL HAVE THE
15 SAME MEANING AS GIVEN TO IT IN SECTION 2 OF THE ACT OF JUNE 10,
16 1982 (P.L.454, NO.133), ENTITLED "AN ACT PROTECTING AGRICULTURAL
17 OPERATIONS FROM NUISANCE SUITS AND ORDINANCES UNDER CERTAIN
18 CIRCUMSTANCES."
19 "PRODUCTION AGRICULTURE." THE MANAGEMENT AND USE OF A NORMAL
20 AGRICULTURAL OPERATION FOR THE PRODUCTION OF A FARM COMMODITY.
21 § 2903. ESTABLISHMENT.
22 THERE IS ESTABLISHED WITHIN THE DEPARTMENT A PROGRAM TO BE
23 KNOWN AS THE MACHINERY AND EQUIPMENT LOAN PROGRAM. THE PROGRAM
24 SHALL BE ADMINISTERED BY THE DEPARTMENT AND PROVIDE LOANS TO
25 BUSINESS ENTERPRISES FOR MACHINERY AND EQUIPMENT.
26 § 2904. MACHINERY AND EQUIPMENT LOAN FUND.
27 (A) CREATION.--THERE IS CREATED A SPECIAL ACCOUNT IN THE
28 TREASURY DEPARTMENT, TO BE KNOWN AS THE MACHINERY AND EQUIPMENT
29 LOAN FUND, TO WHICH SHALL BE CREDITED ALL PROGRAM APPROPRIATIONS
30 MADE BY THE GENERAL ASSEMBLY, ALL PROCEEDS FROM LOAN REPAYMENTS
20030S0778B1391 - 49 -
1 AND ANY AND ALL OTHER DEPOSITS, PAYMENTS OR CONTRIBUTIONS FROM
2 ANY OTHER SOURCE MADE AVAILABLE TO THE FUND. THE FUND SHALL
3 OPERATE AS A REVOLVING FUND WHEREBY ALL APPROPRIATIONS, PAYMENTS
4 AND INTEREST MADE THERETO MAY BE APPLIED AND REAPPLIED TO THE
5 PURPOSES OF THIS CHAPTER.
6 (B) CREDITS TO FUND.--ALL APPROPRIATIONS, DEPOSITS AND
7 CONTRIBUTIONS MADE TO THE FUND SHALL BE IMMEDIATELY CREDITED IN
8 FULL TO THE FUND, AND EARNINGS ON THE MONEYS HELD IN THE FUND
9 SHALL ALSO BE CREDITED TO THE FUND FOR THE PURPOSES OF THIS
10 CHAPTER.
11 § 2905. ELIGIBILITY FOR LOANS; TERMS AND CONDITIONS.
12 (A) LOANS; GENERAL RULES.--THE SECRETARY MAY MAKE ADVANCES
13 FROM THE FUND, SUBJECT TO THE TERMS, CONDITIONS AND RESTRICTIONS
14 PROVIDED UNDER THIS CHAPTER, FOR THE PURPOSE OF MAKING LOANS TO
15 BUSINESS ENTERPRISES INVOLVED IN INDUSTRIAL PROCESSES, MINING,
16 MANUFACTURING, PRODUCTION AGRICULTURE, INFORMATION TECHNOLOGY,
17 BIOTECHNOLOGY, SERVICE AS A MEDICAL FACILITY OR OTHER INDUSTRIAL
18 OR TECHNOLOGY SECTORS, AS DEFINED BY THE DEPARTMENT, TO ACQUIRE
19 AND INSTALL NEW MACHINERY AND EQUIPMENT OR UPGRADE EXISTING
20 MACHINERY AND EQUIPMENT, INCLUDING THE ACQUISITION, APPLICATION
21 AND UTILIZATION OF COMPUTER HARDWARE AND SOFTWARE.
22 (1) ALL LOANS SHALL BE SUBJECT TO ALL OF THE FOLLOWING
23 CONDITIONS:
24 (I) BE MADE TO ELIGIBLE BUSINESS ENTERPRISES UNDER
25 THE PROVISIONS OF THIS CHAPTER.
26 (II) HAVE A MAXIMUM LOAN CEILING OF $5,000,000 OR
27 50% OF THE COST OF THE PROJECT, WHICHEVER IS LESS.
28 (III) BE LIMITED TO THE PURCHASE AND INSTALLATION OF
29 NEW EQUIPMENT AND MACHINERY OR THE UPGRADE OF EXISTING
30 MACHINERY AND EQUIPMENT. THIS SUBPARAGRAPH INCLUDES THE
20030S0778B1391 - 50 -
1 ACQUISITION, APPLICATION AND UTILIZATION OF COMPUTER
2 HARDWARE AND SOFTWARE.
3 (IV) BE LIMITED TO PROJECTS THAT DEMONSTRATE THE
4 CREATION OR RETENTION OF ONE JOB FOR EVERY $25,000
5 RECEIVED FROM THE FUND. THIS SUBPARAGRAPH DOES NOT APPLY
6 TO LOANS MADE TO BUSINESS ENTERPRISES INVOLVED IN
7 PRODUCTION AGRICULTURE OR TO LOANS MADE TO MEDICAL
8 FACILITIES.
9 (V) HAVE AN INTEREST RATE WHICH SHALL BE ESTABLISHED
10 BY THE SECRETARY.
11 (VI) HAVE A TERM OF NOT IN EXCESS OF TEN YEARS.
12 (2) FOR LOANS TO MEDICAL FACILITIES, LOAN FUNDS MAY BE
13 USED ONLY TO FINANCE THE ACQUISITION, INSTALLATION AND
14 UTILIZATION OF MACHINERY AND EQUIPMENT, INCLUDING COMPUTER
15 HARDWARE AND SOFTWARE COMPONENTS, TO BE USED IN THE
16 PRESCRIBING AND DISPENSING OF MEDICATION FOR MEDICAL FACILITY
17 PATIENTS.
18 (B) RESTRICTIONS.--NO LOANS SHALL BE MADE THAT DO ANY OF THE
19 FOLLOWING:
20 (1) CAUSE, AID OR ASSIST IN, DIRECTLY OR INDIRECTLY, THE
21 RELOCATION OF ANY BUSINESS ENTERPRISE FROM ONE PART OF THIS
22 COMMONWEALTH TO ANOTHER UNLESS THERE IS AT LEAST A 25%
23 INCREASE IN NET EMPLOYMENT.
24 (2) SUPPLANT FUNDING THAT IS OTHERWISE AVAILABLE
25 EXPEDITIOUSLY FROM PRIVATE SECTOR SOURCES ON COMMERCIALLY
26 REASONABLE TERMS.
27 (3) BE FOR THE PURPOSE OF REFINANCING ANY PORTION OF THE
28 TOTAL PROJECT COST OR OTHER EXISTING LOANS OR DEBT.
29 (4) BE FOR THE PURPOSE OF FINANCING PROJECTS LOCATED
30 OUTSIDE THE GEOGRAPHIC BOUNDARIES OF THIS COMMONWEALTH.
20030S0778B1391 - 51 -
1 (5) BE FOR THE PURPOSE OF PAYING OFF A CREDITOR THAT IS
2 INADEQUATELY SECURED AND IS IN A POSITION TO SUSTAIN A LOSS.
3 (6) BE FOR THE PURPOSE OF REPAYING A DEBT OWED TO A
4 SMALL BUSINESS INVESTMENT COMPANY.
5 (7) PROVIDE FUNDS FOR SPECULATION IN ANY KIND OF
6 PROPERTY, REAL OR PERSONAL, TANGIBLE OR INTANGIBLE.
7 (C) SECURITY.--ALL LOANS SHALL BE SECURED BY NO LESS THAN A
8 SECOND LIEN POSITION ON THE EQUIPMENT PURCHASED AND OTHER
9 SUFFICIENT COLLATERAL AS DETERMINED BY THE SECRETARY.
10 § 2906. APPLICATION AND ADMINISTRATION.
11 (A) PROCEDURES.--APPLICATION AND ADMINISTRATION PROCEDURES
12 FOR FUND LOANS SHALL BE ESTABLISHED BY THE SECRETARY.
13 (B) RECEIPT.--THE SECRETARY SHALL RECEIVE APPLICATIONS FROM
14 ELIGIBLE BUSINESS ENTERPRISES FOR MACHINERY AND EQUIPMENT LOANS.
15 APPLICATIONS SHALL BE MADE TO THE SECRETARY IN THE FORM AND
16 MANNER AS THE DEPARTMENT MAY REQUIRE.
17 (C) INVESTIGATION.--UPON RECEIPT OF THE APPLICATION, THE
18 SECRETARY SHALL INVESTIGATE AND REVIEW THE APPLICATION AND
19 EITHER APPROVE OR DISAPPROVE THE LOAN APPLICATION BY PROPER
20 ACTION OF THE DEPARTMENT. THE DECISION OF THE SECRETARY SHALL BE
21 BASED, IN WHOLE OR IN PART, UPON THE FOLLOWING CRITERIA:
22 (1) ABILITY OF THE APPLICANT TO MEET AND SATISFY ALL
23 DEBT SERVICE AS IT BECOMES DUE AND PAYABLE.
24 (2) SUFFICIENCY OF AVAILABLE COLLATERAL, INCLUDING
25 SATISFACTORY LIEN POSITIONS ON REAL AND PERSONAL PROPERTY.
26 (3) ELIGIBILITY OF THE APPLICANT AS A BUSINESS
27 ENTERPRISE INVOLVED IN INDUSTRIAL PROCESSES, MANUFACTURING,
28 MINING, PRODUCTION AGRICULTURE, INFORMATION TECHNOLOGY,
29 BIOTECHNOLOGY, SERVICES AS A MEDICAL FACILITY OR OTHER
30 INDUSTRIAL OR TECHNOLOGY SECTORS AS DEFINED BY THE SECRETARY.
20030S0778B1391 - 52 -
1 (4) SUFFICIENT EVIDENCE THAT FUNDS SHALL BE USED ONLY TO
2 ACQUIRE AND INSTALL NEW EQUIPMENT AND MACHINERY OR UPGRADE
3 EXISTING EQUIPMENT AND MACHINERY, INCLUDING THE ACQUISITION,
4 APPLICATION AND UTILIZATION OF COMPUTER HARDWARE AND
5 SOFTWARE.
6 (5) CAPITAL NEEDS OF THE APPLICANT.
7 (6) CONFORMITY OF THE PROJECT TO THE PROVISIONS OF THIS
8 CHAPTER.
9 (7) RELEVANT CRIMINAL AND CREDIT HISTORY AND RATINGS OF
10 APPLICANT AS DETERMINED FROM OUTSIDE CREDIT REPORTING
11 SERVICES AND OTHER SOURCES.
12 (8) NUMBER OF NET EMPLOYMENT OPPORTUNITIES CREATED AND
13 RETAINED BY THE PROPOSED PROJECT. THIS PARAGRAPH DOES NOT
14 APPLY TO BUSINESS ENTERPRISES INVOLVED IN PRODUCTION
15 AGRICULTURE OR MEDICAL FACILITIES.
16 (9) SUPPORTING EVIDENCE THAT THE LOAN PROJECT WILL
17 INCREASE THE FIRM'S COMPETITIVENESS AND VALUE ADDED WITHIN
18 ITS RESPECTIVE INDUSTRY.
19 (10) EXPLANATION OF HOW THE LOAN WILL AID THE
20 COMMONWEALTH IN ITS EFFORTS TO ASSIST BUSINESS ENTERPRISES TO
21 INCREASE THEIR PRODUCTIVITY AND IMPROVE THE FUTURE
22 COMPETITIVE POSITION OF THIS COMMONWEALTH'S INDUSTRIES.
23 (11) COMPLIANCE WITH THE LOAN AMOUNT LIMITATIONS
24 PROVIDED FOR MACHINERY AND EQUIPMENT LOANS.
25 (12) PAYMENT TO DATE OF ALL TAX OBLIGATIONS DUE AND
26 OWING TO THE COMMONWEALTH OR ANY POLITICAL SUBDIVISION
27 THEREOF.
28 (13) CONFORMITY OF ALL ASPECTS OF THE LOAN TRANSACTION
29 WITH THE SUBSTANTIVE AND PROCEDURAL PROVISIONS OF THIS
30 CHAPTER AND REGULATIONS PROMULGATED HEREUNDER.
20030S0778B1391 - 53 -
1 (14) SUCH INFORMATION AND DOCUMENTATION AS THE SECRETARY
2 SHALL REQUIRE.
3 (D) NOTIFICATION.--THE SECRETARY SHALL NOTIFY THE APPLICANT
4 OF FINAL APPROVAL OR DISAPPROVAL OF THE LOAN APPLICATION WITHIN
5 A REASONABLE PERIOD OF TIME FOLLOWING THE RECEIPT OF THE
6 APPLICATION. IN THE CASE OF APPROVAL OF A LOAN APPLICATION, THE
7 SECRETARY SHALL ARRANGE TO DRAW THE LOAN AMOUNT FROM THE FUND
8 AND ADVANCE THE SUM TO THE RECIPIENT. THE ADVANCE SHALL BE MADE
9 AVAILABLE IN THE FORM OF A LOAN TRANSACTION, WHICH LOAN SHALL BE
10 EVIDENCED BY A NOTE EXECUTED BY THE RECIPIENT AND SECURED IN A
11 MANNER AS THE SECRETARY SHALL REQUIRE IN CONFORMITY IN ALL
12 RESPECTS TO THE LOAN AS APPROVED BY THE SECRETARY.
13 (E) POLICY REQUIREMENTS AND REPORT.--ALL LOANS SHALL BE
14 ADMINISTERED AND MONITORED BY THE DEPARTMENT IN ACCORDANCE WITH
15 THE POLICIES AND PROCEDURES PRESCRIBED BY THE SECRETARY. ON OR
16 BEFORE SEPTEMBER 1 OF EACH YEAR, THE SECRETARY SHALL PREPARE A
17 REPORT THAT INCLUDES THE FOLLOWING:
18 (1) EACH OUTSTANDING LOAN.
19 (2) THE DATE OF APPROVAL.
20 (3) THE ORIGINAL PRINCIPAL BALANCE.
21 (4) THE CURRENT PRINCIPAL BALANCE.
22 (5) THE INTEREST RATE.
23 (6) THE PURPOSE FOR WHICH THE LOAN WAS MADE.
24 (7) AN ENUMERATION OF ANY PROBLEMS OR ISSUES WHICH HAVE
25 ARISEN WITH REGARD TO EACH LOAN.
26 (8) A STATEMENT REGARDING THE PROGRESS OF THE BUSINESS
27 ENTERPRISE IN CREATING AND RETAINING ITS REQUISITE NUMBER OF
28 EMPLOYMENT OPPORTUNITIES.
29 (9) SUCH OTHER INFORMATION AND DOCUMENTATION AS THE
30 SECRETARY SHALL REQUIRE.
20030S0778B1391 - 54 -
1 (F) PENALTY FOR NONCOMPLIANCE.--IN THE EVENT THAT A LOAN
2 RECIPIENT SHALL NOT COMPLY WITH ITS APPROVED APPLICATION BY
3 FAILING TO CREATE OR PRESERVE THE NUMBER OF EMPLOYMENT
4 OPPORTUNITIES SPECIFIED IN ITS APPROVED APPLICATION, THE
5 SECRETARY SHALL IMPOSE A PENALTY EQUAL TO AN INCREASE IN THE
6 INTEREST RATE TO 2% GREATER THAN THE CURRENT PRIME INTEREST RATE
7 FOR THE REMAINDER OF THE LOAN UNLESS THE PENALTY IS WAIVED BY
8 THE SECRETARY BECAUSE THE FAILURE IS DUE TO CIRCUMSTANCES
9 OUTSIDE THE CONTROL OF THE LOAN RECIPIENT. THE PENALTY SHALL BE
10 PAYABLE IN INSTALLMENTS THAT THE SECRETARY DEEMS APPROPRIATE.
11 § 2907. POWERS OF SECRETARY.
12 THE SECRETARY SHALL HAVE AND MAY EXERCISE ALL POWERS AND
13 AUTHORITY NECESSARY TO THE PROPER ADMINISTRATION AND
14 IMPLEMENTATION OF THIS CHAPTER AND SHALL HAVE THE AUTHORITY TO
15 ADOPT POLICIES, PROCEDURES AND GUIDELINES AND PROMULGATE RULES
16 AND REGULATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS
17 CHAPTER.
18 § 2908. REPORTING AND INSPECTION.
19 (A) INSPECTION.--EACH BUSINESS ENTERPRISE WHICH APPLIES FOR
20 OR RECEIVES ASSISTANCE UNDER THIS CHAPTER, UPON REASONABLE
21 REQUEST OF THE DEPARTMENT, SHALL PERMIT DULY AUTHORIZED
22 EMPLOYEES OF THE DEPARTMENT TO INSPECT THE PLANT, BOOKS AND
23 RECORDS OF THE BUSINESS ENTERPRISE.
24 (B) UPDATING.--EACH BUSINESS ENTERPRISE SHALL UPDATE THE
25 INFORMATION GIVEN TO THE DEPARTMENT IN ITS APPLICATION IF
26 CONDITIONS CHANGE OR TO THE EXTENT THAT THE INFORMATION GIVEN
27 ORIGINALLY BECOMES INACCURATE OR MISLEADING.
28 (C) PERIODIC REPORTS.--EACH RECIPIENT OF ASSISTANCE UNDER
29 THIS CHAPTER SHALL PROVIDE THE DEPARTMENT WITH PERIODIC
30 FINANCIAL REPORTS AS THE SECRETARY MAY REQUIRE UNTIL SUCH TIME
20030S0778B1391 - 55 -
1 AS THE LOAN IS PAID OFF.
2 § 2909. NONDISCRIMINATION.
3 NO LOAN SHALL BE MADE TO A BUSINESS ENTERPRISE UNLESS THE
4 BUSINESS ENTERPRISE CERTIFIES TO THE DEPARTMENT, IN A FORM
5 SATISFACTORY TO THE DEPARTMENT, THAT IT SHALL NOT DISCRIMINATE
6 AGAINST ANY EMPLOYEE OR ANY APPLICANT FOR EMPLOYMENT BECAUSE OF
7 RACE, RELIGION, COLOR, NATIONAL ORIGIN, SEX OR AGE. THE BUSINESS
8 ENTERPRISE SHALL ALSO CERTIFY TO THE DEPARTMENT THAT IT IS NOT
9 CURRENTLY UNDER CITATION FOR POLLUTION VIOLATIONS AND THAT IN
10 THE FUTURE IT WILL MEET ALL APPLICABLE ANTIPOLLUTION STANDARDS.
11 § 2910. CONFLICT OF INTEREST.
12 NO EMPLOYEE OF THE DEPARTMENT SHALL, EITHER DIRECTLY OR
13 INDIRECTLY, BE A PARTY TO OR HAVE ANY FINANCIAL INTEREST IN ANY
14 CONTRACT OR AGREEMENT ARISING PURSUANT TO THIS CHAPTER.
15 § 2911. REPORTS TO GENERAL ASSEMBLY.
16 (A) ANNUAL REPORTS.--ON OR BEFORE SEPTEMBER 1 OF EACH YEAR,
17 THE SECRETARY SHALL PROVIDE A REPORT TO THE SECRETARY OF THE
18 SENATE AND TO THE CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES.
19 THE REPORT SHALL DESCRIBE ALL RELEVANT ACTIVITIES OF THE
20 DEPARTMENT PURSUANT TO THIS CHAPTER AND SHALL INCLUDE THE
21 FOLLOWING:
22 (1) LIST OF BUSINESS ENTERPRISES RECEIVING LOANS FROM
23 THE FUND AND THE AMOUNTS AND TERMS OF THIS ASSISTANCE.
24 (2) LOAN AMOUNTS REPAID. INFORMATION UNDER THIS
25 PARAGRAPH MAY BE REPORTED IN THE AGGREGATE.
26 (3) LOANS OUTSTANDING, BALANCES DUE AND ANY PENALTIES
27 IMPOSED. INFORMATION UNDER THIS PARAGRAPH MAY BE REPORTED IN
28 THE AGGREGATE.
29 (4) JOBS CREATED BY BUSINESSES RECEIVING FUNDS IN
30 PREVIOUS YEARS. INFORMATION UNDER THIS PARAGRAPH MAY BE
20030S0778B1391 - 56 -
1 REPORTED IN THE AGGREGATE.
2 (5) OTHER RELEVANT INFORMATION AS DETERMINED BY THE
3 SECRETARY.
4 (B) AVAILABILITY OF DEPARTMENTAL REPORTS.--REPORTS PREPARED
5 BY THE SECRETARY UNDER SECTION 2906(E) (RELATING TO APPLICATION
6 AND ADMINISTRATION) SHALL BE MADE AVAILABLE UPON REQUEST TO
7 MEMBERS OF THE GENERAL ASSEMBLY.
8 § 2912. GUIDELINES.
9 THE DEPARTMENT SHALL DEVELOP WRITTEN GUIDELINES FOR THE
10 IMPLEMENTATION OF THIS CHAPTER.
11 CHAPTER 31
12 FAMILY SAVINGS ACCOUNT
13 (RESERVED)
14 CHAPTER 33
15 ECONOMIC ENHANCEMENT
16 (RESERVED)
17 CHAPTER 35
18 KEYSTONE OPPORTUNITY ZONES
19 (RESERVED)
20 CHAPTER 37
21 KEYSTONE INNOVATION ZONES
22 SEC.
23 3701. SCOPE.
24 3702. DEFINITIONS.
25 3703. PROGRAM.
26 3704. ASSISTANCE.
27 3705. KEYSTONE INNOVATION GRANTS.
28 3706. KEYSTONE INNOVATION ZONE TAX CREDITS.
29 3707. GUIDELINES.
30 3708. ANNUAL REPORT.
20030S0778B1391 - 57 -
1 § 3701. SCOPE.
2 THIS CHAPTER RELATES TO THE KEYSTONE INNOVATION ZONES
3 PROGRAM.
4 § 3702. DEFINITIONS.
5 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
6 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
7 CONTEXT CLEARLY INDICATES OTHERWISE:
8 "INSTITUTION OF HIGHER EDUCATION." A PUBLIC OR PRIVATE
9 INSTITUTION WITHIN THIS COMMONWEALTH AUTHORIZED BY THE
10 DEPARTMENT OF EDUCATION TO GRANT AN ASSOCIATE DEGREE OR HIGHER
11 DEGREE. THE TERM INCLUDES BRANCH OR SATELLITE CAMPUS OF THE
12 INSTITUTION.
13 "KEYSTONE INNOVATION ZONE." A CLEARLY DEFINED CONTIGUOUS
14 GEOGRAPHIC AREA COMPRISED OF PORTIONS OF ONE OR MORE POLITICAL
15 SUBDIVISIONS.
16 "KEYSTONE INNOVATION ZONE COMPANY." A FOR-PROFIT BUSINESS
17 ENTITY WHICH IS ALL OF THE FOLLOWING:
18 (1) LOCATED WITHIN A KEYSTONE INNOVATION ZONE.
19 (2) HAS BEEN IN OPERATION FOR LESS THAN EIGHT YEARS.
20 (3) FALLS WITHIN ONE OF THE TARGETED INDUSTRY SEGMENTS
21 ADOPTED BY THE KEYSTONE INNOVATION ZONE PARTNERSHIP IN ITS
22 STRATEGIC PLAN.
23 "KEYSTONE INNOVATION ZONE COORDINATOR." A NONPROFIT
24 ORGANIZATION WHICH IS ALL OF THE FOLLOWING:
25 (1) NOT AN INSTITUTION OF HIGHER EDUCATION.
26 (2) CHOSEN BY A KEYSTONE INNOVATION ZONE PARTNERSHIP AND
27 AGREED TO BY THE DEPARTMENT TO ADMINISTER THE ACTIVITIES OF A
28 KEYSTONE INNOVATION ZONE.
29 "KEYSTONE INNOVATION ZONE PARTNERSHIP." ANY ASSOCIATION OR
30 GROUP WHICH IS ALL OF THE FOLLOWING:
20030S0778B1391 - 58 -
1 (1) COMPRISED OF AT LEAST ONE INSTITUTION OF HIGHER
2 EDUCATION AND A COMBINATION OF PRIVATE BUSINESSES, BUSINESS
3 SUPPORT ORGANIZATIONS, COMMERCIAL LENDING INSTITUTIONS,
4 VENTURE CAPITAL COMPANIES, ANGEL INVESTOR NETWORKS OR
5 FOUNDATIONS.
6 (2) FORMED FOR THE CREATION AND ADMINISTRATION OF A
7 KEYSTONE INNOVATION ZONE.
8 "KIZ." A KEYSTONE INNOVATION ZONE.
9 "KIZ COMPANY." A KEYSTONE INNOVATION ZONE COMPANY.
10 "KIZ COORDINATOR." A KEYSTONE INNOVATION ZONE COORDINATOR.
11 "KIZ PARTNERSHIP." A KEYSTONE INNOVATION ZONE PARTNERSHIP.
12 § 3703. PROGRAM.
13 (A) ESTABLISHMENT.--THERE IS ESTABLISHED A PROGRAM IN THE
14 DEPARTMENT TO BE KNOWN AS THE KEYSTONE INNOVATION ZONE PROGRAM.
15 THE PROGRAM SHALL PROVIDE ECONOMIC ASSISTANCE TO KIZ COMPANIES
16 FOR THE PURPOSE OF IMPROVING AND ENCOURAGING RESEARCH AND
17 DEVELOPMENT EFFORTS AND TECHNOLOGY COMMERCIALIZATION EFFORTS
18 RESULTING IN EMPLOYMENT GROWTH AND REVITALIZATION OF
19 COMMUNITIES.
20 (B) APPLICATION.--A KEYSTONE INNOVATION ZONE PARTNERSHIP MAY
21 APPLY TO THE DEPARTMENT TO ESTABLISH A KEYSTONE INNOVATION ZONE.
22 ALL APPLICATIONS MUST BE RECEIVED BY JULY 1, 2007, BE ON THE
23 FORM REQUIRED BY THE DEPARTMENT AND INCLUDE AND DEMONSTRATE ALL
24 OF THE FOLLOWING:
25 (1) THE KIZ COORDINATOR'S NAME AND ADDRESS.
26 (2) A STATEMENT THAT THE APPLICANT IS A KIZ PARTNERSHIP
27 AND THE IDENTITY OF ITS MEMBERS.
28 (3) THE GEOGRAPHIC BOUNDARIES OF THE PROPOSED KEYSTONE
29 INNOVATION ZONE.
30 (4) A COPY OF A WRITTEN STRATEGIC PLAN ADOPTED BY THE
20030S0778B1391 - 59 -
1 KIZ PARTNERSHIP DESCRIBING THE TARGETED INDUSTRY SEGMENTS
2 WHICH THE KIZ WILL FOSTER.
3 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
4 (C) REVIEW AND DESIGNATION.--THE DEPARTMENT SHALL REVIEW THE
5 APPLICATION. UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE
6 BEEN MET, THE DEPARTMENT MAY APPROVE THE APPLICATION. IF THE
7 DEPARTMENT APPROVES THE APPLICATION, THE DEPARTMENT SHALL
8 DESIGNATE THE IDENTIFIED AREA AS A KEYSTONE INNOVATION ZONE AND
9 ACCEPT THE ORGANIZATION DESIGNATED AS THE KIZ COORDINATOR FOR
10 THE ZONE.
11 § 3704. ASSISTANCE.
12 (A) EXISTING PROGRAMS.--A KIZ COMPANY SHALL BE ELIGIBLE AND
13 MAY BE GIVEN PRIORITY CONSIDERATION IN APPLYING FOR ASSISTANCE
14 UNDER ANY OF THE FOLLOWING:
15 (1) THIS TITLE.
16 (2) THE ACT OF MAY 17, 1956 (1955 P.L.1609, NO.537),
17 KNOWN AS THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY
18 ACT.
19 (3) THE ACT OF AUGUST 23, 1967 (P.L.251, NO.102), KNOWN
20 AS THE ECONOMIC DEVELOPMENT FINANCING LAW.
21 (4) THE ACT OF JUNE 22, 2001 (P.L.569, NO.38), KNOWN AS
22 THE BEN FRANKLIN TECHNOLOGY DEVELOPMENT AUTHORITY ACT.
23 (5) THE ACT OF JUNE 29, 1996 (P.L.434, NO.67), KNOWN AS
24 THE JOB ENHANCEMENT ACT.
25 (6) THE ACT OF JUNE 26, 2001 (P.L.755, NO.77), KNOWN AS
26 THE TOBACCO SETTLEMENT ACT.
27 (7) ANY OTHER ACT ENACTED AFTER THE EFFECTIVE DATE OF
28 THIS SUBSECTION WHICH HAS ECONOMIC DEVELOPMENT ASSISTANCE AS
29 ITS PRIMARY OBJECTIVE.
30 (B) LOANS OF THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT
20030S0778B1391 - 60 -
1 AUTHORITY.--THE BOARD OF THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT
2 AUTHORITY MAY PROVIDE LOANS TO ENTITIES FOR LAND AND STRUCTURES,
3 INCLUDING STRUCTURES PROVIDING SPACE FOR RESEARCH AND
4 DEVELOPMENT ACTIVITIES, IN WHICH, WHEN COMPLETED, AT LEAST ONE
5 KIZ COMPANY WILL BE LOCATED. IF THE STRUCTURE IS INTENDED TO
6 ACCOMMODATE MORE THAN ONE KIZ COMPANY, AT LEAST 80% OF THE SPACE
7 IN THE STRUCTURE MUST BE LEASED TO KIZ COMPANIES. THE BOARD MAY
8 ESTABLISH THE ELIGIBILITY CRITERIA, THE INTEREST RATE, THE LOAN
9 TERM AND THE PARTICIPATION RATE TO BE APPLIED TO THESE PROJECTS.
10 (C) KIZ OPERATION GRANTS.--
11 (1) THE BEN FRANKLIN TECHNOLOGY DEVELOPMENT AUTHORITY
12 MAY PROVIDE AN ANNUAL KIZ OPERATION GRANT OF UP TO $250,000
13 TO A KEYSTONE INNOVATION ZONE COORDINATOR FOR ADMINISTRATIVE
14 COSTS INCURRED IN ESTABLISHING AND IMPLEMENTING THE KEYSTONE
15 INNOVATION ZONE.
16 (2) IN SUBSEQUENT YEARS, A GRANT SHALL BE REDUCED IN
17 ACCORDANCE WITH ALL OF THE FOLLOWING:
18 (I) BY 25% OF THE INITIAL AMOUNT IN THE SECOND YEAR.
19 (II) BY 50% OF THE INITIAL AMOUNT OF THE GRANT IN
20 THE THIRD YEAR.
21 (III) BY 75% OF THE INITIAL AMOUNT OF THE GRANT IN
22 THE FOURTH YEAR.
23 (3) THE BEN FRANKLIN TECHNOLOGY DEVELOPMENT AUTHORITY
24 SHALL DEVELOP GUIDELINES FOR THE APPLICATION, RECEIPT AND USE
25 OF OPERATION GRANT FUNDS.
26 § 3705. KEYSTONE INNOVATION GRANTS.
27 (A) GRANTS.--THE DEPARTMENT MAY PROVIDE KEYSTONE INNOVATION
28 GRANTS TO INSTITUTIONS OF HIGHER EDUCATION TO FACILITATE
29 TECHNOLOGY TRANSFER, INCLUDING PATENT FILINGS, TECHNOLOGY
30 LICENSING, INTELLECTUAL PROPERTY AND ROYALTY AGREEMENTS AND
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1 OTHER DESIGNATED RESOURCE NEEDS. THE APPLICATION MUST BE ON THE
2 FORM REQUIRED BY THE DEPARTMENT AND MUST INCLUDE OR DEMONSTRATE
3 ALL OF THE FOLLOWING:
4 (1) THE APPLICANT'S NAME AND ADDRESS.
5 (2) THE KIZ PARTNERSHIP OF WHICH THE APPLICANT IS A
6 MEMBER.
7 (3) A WRITTEN PROPOSAL. THE PROPOSAL MUST STATE ALL OF
8 THE FOLLOWING:
9 (I) THE TECHNOLOGY TRANSFER ACTIVITIES TO BE
10 UNDERTAKEN. THE ACTIVITIES MAY INCLUDE THE ADDITION OF
11 PERSONNEL WHO ARE DIRECTLY RELATED IN TRANSFERRING
12 TECHNOLOGY TO THE LOCAL BUSINESSES.
13 (II) THE QUANTIFIABLE GOALS AND OBJECTIVES TO BE
14 ACHIEVED.
15 (III) HOW THE ACTIVITIES, GOALS AND OBJECTIVES WILL
16 INTEGRATE WITH THE STRATEGIC PLAN ADOPTED FOR THE KIZ.
17 (IV) THE ROLE OF THE APPLICANT AND OTHER MEMBERS OF
18 THE KIZ PARTNERSHIP.
19 (4) IDENTIFICATION OF A DOLLAR-TO-DOLLAR MATCH, WHICH
20 MAY BE IN KIND IF THE DEPARTMENT DETERMINES THAT THE PROPOSED
21 MATCH CAN BE READILY IDENTIFIED AND TRACKED, AND WHICH IS
22 DIRECTLY RELATED TO THE STATED GOALS AND OBJECTIVES.
23 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
24 (B) APPROVAL.--THE DEPARTMENT SHALL REVIEW THE APPLICATION
25 AND, UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN MET,
26 THE DEPARTMENT MAY APPROVE THE APPLICATION. PRIOR TO RELEASING
27 GRANT FUNDS, THE DEPARTMENT SHALL ENTER INTO A CONTRACT WITH THE
28 APPLICANT THAT CONTAINS ALL OF THE FOLLOWING:
29 (1) THE GRANT MAY NOT EXCEED $250,000 PER YEAR.
30 (2) GRANTS UNDER THIS PROGRAM SHALL NOT EXCEED $750,000
20030S0778B1391 - 62 -
1 IN THE AGGREGATE PER APPLICANT UNDER THIS PROGRAM.
2 (3) THE AGGREGATE AMOUNT OF GRANTS AWARDED TO ALL
3 APPLICANTS UNDER THIS SUBSECTION SHALL NOT EXCEED $10,000,000
4 UNDER THIS PROGRAM.
5 (C) PENALTY.--
6 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE DEPARTMENT
7 SHALL IMPOSE A PENALTY UPON A RECIPIENT OF A GRANT FOR ANY OF
8 THE FOLLOWING:
9 (I) IF THE RECIPIENT FAILS TO USE THE GRANT FOR THE
10 TECHNOLOGY TRANSFER ACTIVITIES SPECIFIED IN THE
11 APPLICATION.
12 (II) IF THE RECIPIENT'S MEMBERSHIP IN THE KIZ
13 PARTNERSHIP IS TERMINATED VOLUNTARILY OR INVOLUNTARILY.
14 (2) THE DEPARTMENT MAY WAIVE THE PENALTY REQUIRED BY
15 PARAGRAPH (1) IF THE DEPARTMENT DETERMINES THAT THE FAILURE
16 WAS DUE TO CIRCUMSTANCES OUTSIDE THE CONTROL OF THE GRANT
17 RECIPIENT.
18 (3) A PENALTY IMPOSED UNDER PARAGRAPH (1) SHALL BE EQUAL
19 TO THE FULL AMOUNT OF THE GRANT RECEIVED PLUS AN ADDITIONAL
20 AMOUNT OF UP TO 10% OF THE AMOUNT OF THE GRANT RECEIVED. THE
21 PENALTY SHALL BE PAYABLE IN ONE LUMP SUM OR IN INSTALLMENTS,
22 WITH OR WITHOUT INTEREST, AS THE DEPARTMENT DEEMS
23 APPROPRIATE.
24 § 3706. KEYSTONE INNOVATION ZONE TAX CREDITS.
25 (A) TAX CREDIT.--A KIZ COMPANY MAY CLAIM A TAX CREDIT EQUAL
26 TO 50% OF THE INCREASE IN THE KIZ COMPANY'S GROSS REVENUES IN
27 THE IMMEDIATELY PRECEDING TAXABLE YEAR ATTRIBUTABLE TO
28 ACTIVITIES IN THE KIZ OVER THE KIZ COMPANY'S GROSS REVENUES IN
29 THE SECOND PRECEDING TAXABLE YEAR ATTRIBUTABLE TO ITS ACTIVITIES
30 IN THE KIZ. A TAX CREDIT FOR A KIZ COMPANY SHALL NOT EXCEED
20030S0778B1391 - 63 -
1 $100,000 ANNUALLY. FOR THE PURPOSES OF THE KEYSTONE INNOVATION
2 ZONE TAX CREDIT, THE TERM "GROSS REVENUES" MAY INCLUDE GRANTS
3 RECEIVED BY THE KIZ COMPANY FROM ANY SOURCE WHATSOEVER.
4 (B) APPLICATION FOR TAX CREDIT.--A KIZ COMPANY MAY FILE AN
5 APPLICATION FOR A TAX CREDIT WITH THE DEPARTMENT. AN APPLICATION
6 UNDER THIS SUBSECTION MUST BE FILED BY SEPTEMBER 15 OF EACH YEAR
7 FOR THE PRIOR TAXABLE YEAR, BEGINNING SEPTEMBER 15, 2006. THE
8 APPLICATION MUST BE SUBMITTED ON A FORM REQUIRED BY THE
9 DEPARTMENT AND MUST BE ACCOMPANIED BY A CERTIFICATION FROM THE
10 KIZ COORDINATOR THAT THE KIZ COMPANY FALLS WITHIN A TARGETED
11 INDUSTRY SEGMENT IDENTIFIED IN THE STRATEGIC PLAN ADOPTED BY THE
12 KIZ PARTNERSHIP. THE DEPARTMENT SHALL REVIEW THE APPLICATION
13 AND, UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN MET,
14 THE DEPARTMENT SHALL ISSUE A TAX CREDIT CERTIFICATE TO THE KIZ
15 COMPANY. ALL CERTIFICATES SHALL BE AWARDED BY DECEMBER 15 OF
16 EACH YEAR.
17 (C) LIMITATION ON TAX CREDITS.--
18 (1) THE TOTAL AMOUNT OF TAX CREDITS APPROVED BY THE
19 DEPARTMENT SHALL NOT EXCEED $25,000,000 FOR ANY ONE TAXABLE
20 YEAR.
21 (2) IF $25,000,000 OF THE TAX CREDITS ARE NOT APPROVED
22 FOR ANY ONE TAXABLE YEAR, THE UNUSED PORTION SHALL NOT BE
23 AVAILABLE FOR USE IN FUTURE TAXABLE YEARS.
24 (3) IF THE TOTAL AMOUNT OF TAX CREDITS APPLIED FOR BY
25 ALL TAXPAYERS FOR ANY ONE TAXABLE YEAR EXCEEDS $25,000,000,
26 THEN THE TAX CREDIT TO BE RECEIVED BY EACH APPLICANT SHALL BE
27 DETERMINED AS FOLLOWS:
28 (I) DIVIDE:
29 (A) THE ELIGIBLE TAX CREDIT APPLIED FOR BY THE
30 APPLICANT; BY
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1 (B) THE TOTAL OF ALL ELIGIBLE TAX CREDITS
2 APPLIED FOR BY ALL APPLICANTS.
3 (II) MULTIPLY:
4 (A) THE QUOTIENT UNDER SUBPARAGRAPH (I); BY
5 (B) $25,000,000.
6 (D) APPLICATION OF TAX CREDIT AND ELECTION.--A TAX CREDIT
7 APPROVED UNDER THIS SECTION MUST BE FIRST APPLIED AGAINST THE
8 KIZ COMPANY'S TAX LIABILITY UNDER ARTICLE III, IV OR VI OF THE
9 ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE
10 OF 1971, FOR THE TAXABLE YEAR DURING WHICH THE TAX CREDIT IS
11 APPROVED. IF THE AMOUNT OF TAX LIABILITY OWED BY THE KIZ COMPANY
12 IS LESS THAN THE AMOUNT OF THE TAX CREDIT, THE KIZ COMPANY MAY
13 ELECT TO CARRY FORWARD THE AMOUNT OF THE REMAINING TAX CREDIT
14 FOR A PERIOD NOT TO EXCEED FOUR ADDITIONAL TAXABLE YEARS AND TO
15 APPLY THE CREDIT AGAINST TAX LIABILITY INCURRED DURING THOSE TAX
16 YEARS; OR THE KIZ COMPANY MAY ELECT TO SELL OR ASSIGN A PORTION
17 OF THE TAX CREDIT IN ACCORDANCE WITH THE PROVISIONS OF
18 SUBSECTION (F). A KIZ COMPANY MAY NOT CARRY BACK OR OBTAIN A
19 REFUND OF AN UNUSED KEYSTONE INNOVATION ZONE TAX CREDIT.
20 (E) PENNSYLVANIA S CORPORATION SHAREHOLDER PASS-THROUGH.--
21 (1) IF A PENNSYLVANIA S CORPORATION DOES NOT HAVE AN
22 ELIGIBLE TAX LIABILITY AGAINST WHICH THE TAX CREDIT MAY BE
23 APPLIED, A SHAREHOLDER OF THE PENNSYLVANIA S CORPORATION IS
24 ENTITLED TO A TAX CREDIT EQUAL TO THE PRODUCT OF
25 (I) THE TAX CREDIT DETERMINED FOR THE PENNSYLVANIA S
26 CORPORATION FOR THE TAXABLE YEAR; AND
27 (II) THE PERCENTAGE OF THE PENNSYLVANIA S
28 CORPORATION'S DISTRIBUTIVE INCOME TO WHICH THE
29 SHAREHOLDER IS ENTITLED.
30 (2) THE CREDIT PROVIDED UNDER PARAGRAPH (1) IS IN
20030S0778B1391 - 65 -
1 ADDITION TO ANY TAX CREDIT TO WHICH A SHAREHOLDER OF THE
2 PENNSYLVANIA S CORPORATION IS OTHERWISE ENTITLED. HOWEVER, A
3 PENNSYLVANIA S CORPORATION AND A SHAREHOLDER OF THE
4 PENNSYLVANIA S CORPORATION MAY NOT CLAIM A TAX CREDIT UNDER
5 THIS SECTION FOR THE SAME ACTIVITY.
6 (F) SALE OR ASSIGNMENT OF TAX CREDIT.--
7 (1) UPON APPLICATION TO AND APPROVAL BY THE DEPARTMENT,
8 A KIZ COMPANY WHICH HAS BEEN AWARDED A TAX CREDIT MAY SELL OR
9 ASSIGN, IN WHOLE OR IN PART, THE TAX CREDIT GRANTED TO THE
10 KIZ COMPANY. THE APPLICATION MUST BE ON THE FORM REQUIRED BY
11 THE DEPARTMENT AND MUST INCLUDE OR DEMONSTRATE ALL OF THE
12 FOLLOWING:
13 (I) THE APPLICANT'S NAME AND ADDRESS.
14 (II) A COPY OF THE TAX CREDIT CERTIFICATE PREVIOUSLY
15 ISSUED BY THE DEPARTMENT.
16 (III) A STATEMENT AS TO WHETHER ANY PART OF THE TAX
17 CREDIT HAS BEEN APPLIED TO TAX LIABILITY OF THE APPLICANT
18 AND THE AMOUNT SO APPLIED.
19 (IV) ANY OTHER INFORMATION REQUIRED BY THE
20 DEPARTMENT.
21 (2) THE DEPARTMENT SHALL REVIEW THE APPLICATION AND,
22 UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN MET, THE
23 DEPARTMENT MAY APPROVE THE APPLICATION AND SHALL NOTIFY THE
24 DEPARTMENT OF REVENUE.
25 (G) USE OF SOLD OR ASSIGNED TAX CREDIT.--THE PURCHASER OR
26 ASSIGNEE OF ALL OR A PORTION OF A KEYSTONE INNOVATION ZONE TAX
27 CREDIT UNDER THIS SECTION SHALL CLAIM THE CREDIT IN THE TAXABLE
28 YEAR IN WHICH THE PURCHASE OR ASSIGNMENT IS MADE. THE PURCHASER
29 OR ASSIGNEE OF A TAX CREDIT MAY USE THE TAX CREDIT AGAINST ANY
30 TAX LIABILITY OF THE PURCHASER OR ASSIGNEE UNDER ARTICLE III,
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1 IV, VI, VII, VIII, IX OR XV OF THE TAX REFORM CODE OF 1971. THE
2 AMOUNT OF THE TAX CREDIT USED MAY NOT EXCEED 75% OF THE
3 PURCHASER'S OR ASSIGNEE'S TAX LIABILITY FOR THE TAXABLE YEAR.
4 THE PURCHASER OR ASSIGNEE MAY NOT CARRY OVER, CARRY BACK, OBTAIN
5 A REFUND OF OR ASSIGN THE KEYSTONE INNOVATION ZONE TAX CREDIT.
6 THE PURCHASER OR ASSIGNEE SHALL NOTIFY THE DEPARTMENT AND THE
7 DEPARTMENT OF REVENUE OF THE SELLER OR ASSIGNOR OF THE KEYSTONE
8 INNOVATION ZONE TAX CREDIT IN COMPLIANCE WITH PROCEDURES
9 SPECIFIED BY THE DEPARTMENT.
10 § 3707. GUIDELINES.
11 BEFORE ANY KEYSTONE INNOVATION ZONE IS APPROVED BY THE
12 DEPARTMENT, THE DEPARTMENT SHALL APPROVE WRITTEN GUIDELINES FOR
13 THE PROGRAM AND SHALL PROVIDE A COPY OF THE GUIDELINES TO THE
14 MAJORITY LEADER AND MINORITY LEADER OF THE SENATE, THE MAJORITY
15 LEADER AND MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES, THE
16 CHAIRMAN AND MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE
17 OF THE SENATE AND THE CHAIRMAN AND MINORITY CHAIRMAN OF THE
18 APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
19 § 3708. ANNUAL REPORT.
20 THE DEPARTMENT SHALL SUBMIT AN ANNUAL REPORT TO THE SECRETARY
21 OF THE SENATE AND THE CHIEF CLERK OF THE HOUSE OF
22 REPRESENTATIVES INDICATING THE EFFECTIVENESS OF THE KEYSTONE
23 INNOVATION ZONE TAX CREDIT PROVIDED BY THIS CHAPTER BY DECEMBER
24 31 OF EACH YEAR, BEGINNING DECEMBER 31, 2007. NOTWITHSTANDING
25 ANY LAW PROVIDING FOR THE CONFIDENTIALITY OF TAX RECORDS, THE
26 REPORT SHALL INCLUDE THE NAMES OF ALL TAXPAYERS AWARDED THE
27 CREDITS, ALL TAXPAYERS UTILIZING THE CREDITS, THE AMOUNT OF
28 CREDITS APPROVED AND UTILIZED BY EACH TAXPAYER AND THE LOCATIONS
29 OF THE KIZ COMPANIES AWARDED THE CREDITS. THE REPORT SHALL BE A
30 PUBLIC DOCUMENT.
20030S0778B1391 - 67 -
1 SECTION 3. REPEALS ARE AS FOLLOWS:
2 (1) THE FOLLOWING PROVISIONS OF THE ACT OF JUNE 29, 1996
3 (P.L.434, NO.67), KNOWN AS THE JOB ENHANCEMENT ACT, ARE
4 REPEALED:
5 (I) CHAPTER 3.
6 (II) CHAPTER 7.
7 (III) CHAPTER 13.
8 (IV) CHAPTER 17.
9 (V) CHAPTER 30.
10 (2) ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS
11 THEY ARE INCONSISTENT WITH THIS ACT.
12 SECTION 4. CHAPTERS 3, 7, 13, 17 AND 30 OF THE ACT OF JUNE
13 29, 1996 (P.L.434, NO.67), KNOWN AS THE JOB ENHANCEMENT ACT, ARE
14 CONTINUED BY THIS CODIFICATION AS FOLLOWS:
15 (1) THE ADDITION OF 12 PA.C.S. CH. 3 IS A CONTINUATION
16 OF CHAPTER 3 OF THE JOB ENHANCEMENT ACT. THE FOLLOWING APPLY:
17 (I) EXCEPT AS OTHERWISE PROVIDED IN 12 PA.C.S. CH.
18 3, ALL ACTIVITIES INITIATED UNDER CHAPTER 3 OF THE JOB
19 ENHANCEMENT ACT SHALL CONTINUE AND REMAIN IN FULL FORCE
20 AND EFFECT AND MAY BE COMPLETED UNDER 12 PA.C.S. CH. 3.
21 ORDERS, REGULATIONS, RULES AND DECISIONS WHICH WERE MADE
22 UNDER CHAPTER 3 OF THE JOB ENHANCEMENT ACT AND WHICH ARE
23 IN EFFECT ON THE EFFECTIVE DATE OF SECTION 2(1)(I) OF
24 THIS ACT SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL
25 REVOKED, VACATED OR MODIFIED UNDER 12 PA.C.S. CH. 3.
26 CONTRACTS, OBLIGATIONS AND COLLECTIVE BARGAINING
27 AGREEMENTS ENTERED INTO UNDER CHAPTER 3 OF THE JOB
28 ENHANCEMENT ACT ARE NOT AFFECTED NOR IMPAIRED BY THE
29 REPEAL OF CHAPTER 3 OF THE JOB ENHANCEMENT ACT.
30 (II) EXCEPT AS SET FORTH IN SUBPARAGRAPH (III), ANY
20030S0778B1391 - 68 -
1 DIFFERENCE IN LANGUAGE BETWEEN 12 PA.C.S. CH. 3 AND
2 CHAPTER 3 OF THE JOB ENHANCEMENT ACT IS INTENDED ONLY TO
3 CONFORM TO THE STYLE OF THE PENNSYLVANIA CONSOLIDATED
4 STATUTES AND IS NOT INTENDED TO CHANGE OR AFFECT THE
5 LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR
6 ADMINISTRATION AND IMPLEMENTATION OF CHAPTER 3 OF THE JOB
7 ENHANCEMENT ACT.
8 (III) SUBPARAGRAPH (II) DOES NOT APPLY TO THE
9 ADDITION OF 12 PA.C.S. § 303.
10 (2) THE ADDITION OF 12 PA.C.S. CH. 5 IS A CONTINUATION
11 OF CHAPTER 17 OF THE JOB ENHANCEMENT ACT. THE FOLLOWING
12 APPLY:
13 (I) ALL ACTIVITIES INITIATED UNDER CHAPTER 17 OF THE
14 JOB ENHANCEMENT ACT SHALL CONTINUE AND REMAIN IN FULL
15 FORCE AND EFFECT AND MAY BE COMPLETED UNDER 12 PA.C.S.
16 CH. 5. ORDERS, REGULATIONS, RULES AND DECISIONS WHICH
17 WERE MADE UNDER CHAPTER 17 OF THE JOB ENHANCEMENT ACT AND
18 WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION
19 2(1)(IV) OF THIS ACT SHALL REMAIN IN FULL FORCE AND
20 EFFECT UNTIL REVOKED, VACATED OR MODIFIED UNDER 12
21 PA.C.S. CH. 5. CONTRACTS, OBLIGATIONS AND COLLECTIVE
22 BARGAINING AGREEMENTS ENTERED INTO UNDER CHAPTER 17 OF
23 THE JOB ENHANCEMENT ACT ARE NOT AFFECTED NOR IMPAIRED BY
24 THE REPEAL OF CHAPTER 17 OF THE JOB ENHANCEMENT ACT.
25 (II) EXCEPT AS SET FORTH IN SUBPARAGRAPH (III), ANY
26 DIFFERENCE IN LANGUAGE BETWEEN 12 PA.C.S. CH. 5 AND
27 CHAPTER 17 OF THE JOB ENHANCEMENT ACT IS INTENDED ONLY TO
28 CONFORM TO THE STYLE OF THE PENNSYLVANIA CONSOLIDATED
29 STATUTES AND IS NOT INTENDED TO CHANGE OR AFFECT THE
30 LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR
20030S0778B1391 - 69 -
1 ADMINISTRATION AND IMPLEMENTATION OF CHAPTER 17 OF THE
2 JOB ENHANCEMENT ACT.
3 (III) SUBPARAGRAPH (II) DOES NOT APPLY TO THE
4 FOLLOWING:
5 (A) THE ADDITION OF 12 PA.C.S. § 502.
6 (B) THE ADDITION OF 12 PA.C.S. § 503.
7 (IV) THE MEMBERS OF SMALL BUSINESS COUNCIL IN OFFICE
8 ON THE EFFECTIVE DATE OF SECTION 3(2)(IV) OF THIS ACT
9 SHALL CONTINUE IN OFFICE UNDER THE ADDITION OF 12 PA.C.S.
10 CH. 5.
11 (3) THE ADDITION OF 12 PA.C.S. CH. 21 IS A CONTINUATION
12 OF CHAPTER 7 OF THE JOB ENHANCEMENT ACT. THE FOLLOWING APPLY:
13 (I) EXCEPT AS OTHERWISE PROVIDED IN 12 PA.C.S. CH.
14 21, ALL ACTIVITIES INITIATED UNDER THE CHAPTER 7 OF THE
15 JOB ENHANCEMENT ACT SHALL CONTINUE AND REMAIN IN FULL
16 FORCE AND EFFECT AND MAY BE COMPLETED UNDER 12 PA.C.S.
17 CH. 21. ORDERS, REGULATIONS, RULES AND DECISIONS WHICH
18 WERE MADE UNDER CHAPTER 7 OF THE JOB ENHANCEMENT ACT AND
19 WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION
20 2(1)(II) OF THIS ACT SHALL REMAIN IN FULL FORCE AND
21 EFFECT UNTIL REVOKED, VACATED OR MODIFIED UNDER 12
22 PA.C.S. CH. 21. CONTRACTS, OBLIGATIONS AND COLLECTIVE
23 BARGAINING AGREEMENTS ENTERED INTO UNDER CHAPTER 7 OF THE
24 JOB ENHANCEMENT ACT ARE NOT AFFECTED NOR IMPAIRED BY THE
25 REPEAL OF CHAPTER 7 OF THE JOB ENHANCEMENT ACT.
26 (II) EXCEPT AS SET FORTH IN SUBPARAGRAPH (III), ANY
27 DIFFERENCE IN LANGUAGE BETWEEN 12 PA.C.S. CH. 21 AND
28 CHAPTER 7 OF THE JOB ENHANCEMENT ACT IS INTENDED ONLY TO
29 CONFORM TO THE STYLE OF THE PENNSYLVANIA CONSOLIDATED
30 STATUTES AND IS NOT INTENDED TO CHANGE OR AFFECT THE
20030S0778B1391 - 70 -
1 LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR
2 ADMINISTRATION AND IMPLEMENTATION OF CHAPTER 7 OF THE JOB
3 ENHANCEMENT ACT.
4 (III) SUBPARAGRAPH (II) DOES NOT APPLY TO ANY OF THE
5 FOLLOWING PROVISIONS:
6 (A) THE ADDITION OF 12 PA.C.S. § 2106(2).
7 (B) THE ADDITION OF 12 PA.C.S. § 2109.
8 (4) THE ADDITION OF 12 PA.C.S. CH. 23 IS A CONTINUATION
9 OF CHAPTER 13 OF THE JOB ENHANCEMENT ACT. THE FOLLOWING
10 APPLY:
11 (I) EXCEPT AS OTHERWISE PROVIDED IN 12 PA.C.S. CH.
12 23, ALL ACTIVITIES INITIATED UNDER THE CHAPTER 13 OF THE
13 JOB ENHANCEMENT ACT SHALL CONTINUE AND REMAIN IN FULL
14 FORCE AND EFFECT AND MAY BE COMPLETED UNDER 12 PA.C.S.
15 CH. 23. ORDERS, REGULATIONS, RULES AND DECISIONS WHICH
16 WERE MADE UNDER CHAPTER 13 OF THE JOB ENHANCEMENT ACT AND
17 WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION
18 2(1)(III) OF THIS ACT SHALL REMAIN IN FULL FORCE AND
19 EFFECT UNTIL REVOKED, VACATED OR MODIFIED UNDER 12
20 PA.C.S. CH. 23. CONTRACTS, OBLIGATIONS AND COLLECTIVE
21 BARGAINING AGREEMENTS ENTERED INTO UNDER CHAPTER 13 OF
22 THE JOB ENHANCEMENT ACT ARE NOT AFFECTED NOR IMPAIRED BY
23 THE REPEAL OF CHAPTER 13 OF THE JOB ENHANCEMENT ACT.
24 (II) EXCEPT AS SET FORTH IN SUBPARAGRAPH (III), ANY
25 DIFFERENCE IN LANGUAGE BETWEEN 12 PA.C.S. CH. 23 AND
26 CHAPTER 13 OF THE JOB ENHANCEMENT ACT IS INTENDED ONLY TO
27 CONFORM TO THE STYLE OF THE PENNSYLVANIA CONSOLIDATED
28 STATUTES AND IS NOT INTENDED TO CHANGE OR AFFECT THE
29 LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR
30 ADMINISTRATION AND IMPLEMENTATION OF CHAPTER 13 OF THE
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1 JOB ENHANCEMENT ACT.
2 (III) SUBPARAGRAPH (II) DOES NOT APPLY TO ANY OF THE
3 FOLLOWING PROVISIONS:
4 (A) THE ADDITION OF 12 PA.C.S. § 2305(A).
5 (B) THE ADDITION OF 12 PA.C.S. § 2306(A), (B),
6 (C) AND (E).
7 (C) THE ADDITION OF 12 PA.C.S. § 2308(A), (B)
8 AND (C).
9 (D) THE ADDITION OF 12 PA.C.S. § 2309(B).
10 (E) THE ADDITION OF 12 PA.C.S. § 2310(B).
11 (IV) IN CONTINUATION OF SECTION 1302 OF THE JOB
12 ENHANCEMENT ACT, ALL FUNDS, ACCOUNTS, ASSETS,
13 ENCUMBRANCES AND LIABILITIES LOCATED IN OR ASSOCIATED
14 WITH THE AIR QUALITY IMPROVEMENT FUND, THE STORAGE TANK
15 LOAN FUND AND THE RECYCLING INCENTIVE DEVELOPMENT ACCOUNT
16 SHALL BE TRANSFERRED TO THE POLLUTION PREVENTION
17 ASSISTANCE ACCOUNT AND SHALL BE ADMINISTERED IN
18 ACCORDANCE WITH 12 PA.C.S. §§ 2304 AND 2309. THE
19 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT SHALL
20 REPORT ANNUALLY TO THE DEPARTMENT OF ENVIRONMENTAL
21 PROTECTION ON THE STATUS OF THE POLLUTION PREVENTION
22 ASSISTANCE ACCOUNT AND THE LOANS MADE UNDER 12 PA.C.S. §
23 2309.
24 (V) IN CONTINUATION OF SECTION 1309(A) OF THE JOB
25 ENHANCEMENT ACT, AS OF JULY 1, 1997, ALL FUNDS, ACCOUNTS,
26 ASSETS, ENCUMBRANCES AND LIABILITIES LOCATED IN OR
27 ASSOCIATED WITH THE CAPITAL LOAN FUND SHALL BE
28 TRANSFERRED TO THE SMALL BUSINESS FIRST FUND AND SHALL
29 THEREAFTER BE ADMINISTERED IN ACCORDANCE WITH 12 PA.C.S.
30 CH. 23.
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1 (VI) IN CONTINUATION OF SECTION 1309(B) OF THE JOB
2 ENHANCEMENT ACT, ANNUALLY ON JULY 1, THE STATE TREASURER
3 MAY TRANSFER, UPON APPROVAL BY THE GOVERNOR, UP TO
4 $2,000,000 FROM THE HAZARDOUS SITES CLEANUP FUND INTO THE
5 POLLUTION PREVENTION ASSISTANCE ACCOUNT. THIS TRANSFER
6 SHALL BE IN ADDITION TO OTHER APPROPRIATIONS, FEDERAL
7 FUNDING AND PRIVATE CONTRIBUTIONS RECEIVED BY THE
8 ACCOUNT.
9 (5) THE ADDITION OF 12 PA.C.S. CH. 29 IS A CONTINUATION
10 OF CHAPTER 30 OF THE JOB ENHANCEMENT ACT. THE FOLLOWING
11 APPLY:
12 (I) EXCEPT AS OTHERWISE PROVIDED IN 12 PA.C.S. CH.
13 29, ALL ACTIVITIES INITIATED UNDER CHAPTER 30 OF THE JOB
14 ENHANCEMENT ACT SHALL CONTINUE AND REMAIN IN FULL FORCE
15 AND EFFECT AND MAY BE COMPLETED UNDER 12 PA.C.S. CH. 29.
16 ORDERS, REGULATIONS, RULES AND DECISIONS WHICH WERE MADE
17 UNDER CHAPTER 30 OF THE JOB ENHANCEMENT ACT AND WHICH ARE
18 IN EFFECT ON THE EFFECTIVE DATE OF SECTION 2(1)(V) OF
19 THIS ACT SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL
20 REVOKED, VACATED OR MODIFIED UNDER 12 PA.C.S. CH. 29.
21 CONTRACTS, OBLIGATIONS AND COLLECTIVE BARGAINING
22 AGREEMENTS ENTERED INTO UNDER CHAPTER 30 OF THE JOB
23 ENHANCEMENT ACT ARE NOT AFFECTED NOR IMPAIRED BY THE
24 REPEAL OF CHAPTER 30 OF THE JOB ENHANCEMENT ACT.
25 (II) EXCEPT AS SET FORTH IN SUBPARAGRAPH (III), ANY
26 DIFFERENCE IN LANGUAGE BETWEEN 12 PA.C.S. CH. 29 AND
27 CHAPTER 30 OF THE JOB ENHANCEMENT ACT IS INTENDED ONLY TO
28 CONFORM TO THE STYLE OF THE PENNSYLVANIA CONSOLIDATED
29 STATUTES AND IS NOT INTENDED TO CHANGE OR AFFECT THE
30 LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR
20030S0778B1391 - 73 -
1 ADMINISTRATION AND IMPLEMENTATION OF CHAPTER 30 OF THE
2 JOB ENHANCEMENT ACT.
3 (III) SUBPARAGRAPH (II) DOES NOT APPLY TO ANY OF THE
4 FOLLOWING:
5 (A) THE ADDITION OF THE DEFINITIONS OF "BUSINESS
6 ENTERPRISE" AND "MEDICAL FACILITY" IN 12 PA.C.S. §
7 2902.
8 (B) THE ADDITION OF 12 PA.C.S. § 2905(A) AND
9 (C).
10 (C) THE FOLLOWING PROVISIONS IN THE ADDITION OF
11 12 PA.C.S. § 2906:
12 (I) SUBSECTION (C)(3), (4) AND (8).
13 (II) THE INTRODUCTORY PARAGRAPH OF
14 SUBSECTION (E).
15 (D) THE FOLLOWING PROVISIONS IN THE ADDITION OF
16 12 PA.C.S. § 2911:
17 (I) THE INTRODUCTORY PARAGRAPH OF SUBSECTION
18 (A).
19 (II) PARAGRAPHS (2), (3), (4) AND (5) OF
20 SUBSECTION (A).
21 (E) THE ADDITION OF 12 PA.C.S. § 2912.
22 SECTION 5. MONEY APPROPRIATED TO THE DEPARTMENT OF COMMUNITY
23 AND ECONOMIC DEVELOPMENT FOR THE BASE RETENTION AND CONVERSION
24 PENNSYLVANIA ACTION COMMITTEE SHALL BE USED FOR ALL OF THE
25 FOLLOWING:
26 (1) THE DEVELOPMENT OF A STATEWIDE STRATEGY.
27 (2) MATCHING GRANTS FOR ECONOMIC IMPACT STUDIES,
28 ENVIRONMENTAL IMPACT STUDIES, ENCROACHMENT STUDIES, COMMUNITY
29 AND REGIONAL INTERACTION WITH MILITARY BASES, INFRASTRUCTURE
30 NEEDS AT MILITARY BASES AND JOB TRAINING NEEDS AT OR NEAR
20030S0778B1391 - 74 -
1 MILITARY BASES. GRANTS UNDER THIS SUBPARAGRAPH:
2 (I) SHALL BE AWARDED BY THE BASE RETENTION AND
3 CONVERSION PENNSYLVANIA ACTION COMMITTEE;
4 (II) REQUIRE A 25% LOCAL MATCH; AND
5 (III) ARE LIMITED TO $75,000 OR LESS PER MILITARY
6 BASE.
7 SECTION 6. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
8 (1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT UPON
9 PUBLICATION OF THE GUIDELINES REQUIRED BY THE ADDITION OF 12
10 PA.C.S. § 2912:
11 (I) THE ADDITION OF 12 PA.C.S. §§ 2901 THROUGH 2911.
12 (II) SECTION 3(1)(V) OF THIS ACT.
13 (III) SECTION 4(5) OF THIS ACT.
14 (2) THE ADDITION OF 12 PA.C.S. §§ 3705 AND 3706 SHALL
15 TAKE EFFECT JULY 1, 2004.
16 (3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
17 IMMEDIATELY.
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