PRIOR PRINTER'S NOS. 58, 169 PRINTER'S NO. 3424
No. 48 Session of 1997
INTRODUCED BY LLOYD, BELARDI, JAROLIN, BAKER, OLASZ, CORRIGAN,
COY, PISTELLA, HERMAN, VAN HORNE, STABACK, JAMES, SURRA,
McCALL, SCRIMENTI, CURRY, MIHALICH, DALEY, JOSEPHS,
TANGRETTI, C. WILLIAMS, CAPPABIANCA, THOMAS, BELFANTI, TRICH,
EACHUS AND E. Z. TAYLOR, JANUARY 28, 1997
AS REPORTED FROM COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 21, 1998
AN ACT
1 Amending the act of June 29, 1996 (P.L.434, No.67), entitled "An
2 act to enhance job creation and economic development by
3 providing for an annual financing strategy, for opportunity
4 grants, for job creation tax credits, for small business
5 assistance and for the Small Business Advocacy Council;
6 conferring powers and duties on various administrative
7 agencies and authorities; further providing for various
8 funds; and making repeals," providing for nonmanufacturing <--
9 enterprises PROVIDING FOR JOB CREATION TAX CREDITS and <--
10 interest rates; and further providing for reports and
11 publication of guidelines.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 103 of the act of June 29, 1996 (P.L.434, <--
15 No.67), known as the Job Enhancement Act, is amended by adding a
16 definition to read:
17 Section 103. Definitions.
18 The following words and phrases when used in this act shall
19 have the meanings given to them in this section unless the
20 context clearly indicates otherwise:
1 * * *
2 "Nonmanufacturing enterprise." A for-profit corporation,
3 partnership or proprietorship which provides personal or
4 professional service rather than goods and any mercantile,
5 commercial or retail enterprise or any vocational trade
6 enterprise. The term shall not include those professional
7 enterprises which render personal services to the public of a
8 type which requires a license or other legal authorization or
9 public service corporations whose operations serve the needs of
10 the general public, including water, gas or electric companies,
11 public transportation companies or banking institutions.
12 * * *
13 Section 2. The act is amended by adding a section to read:
14 Section 302. Annual interest rates for certain loans.
15 In adopting the annual financing strategy in accordance with
16 section 301(a), a lower interest rate for any loan authorized
17 under this act shall be given to small business enterprises
18 which locate or expand in municipalities which have been
19 designated as critical economic areas or are located in counties
20 which have been designated as critical economic areas pursuant
21 to the act of May 17, 1956 (1955 P.L.1609, No.537), known as the
22 Pennsylvania Industrial Development Authority Act.
23 Section 3. Sections 703(b) and 705(a) of the act are amended
24 to read:
25 Section 703. Eligibility.
26 * * *
27 (b) Enterprises.--The following types of enterprises shall
28 be eligible to receive grants from the program:
29 (1) An agricultural enterprise.
30 (2) An industrial enterprise.
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1 (3) A manufacturing enterprise.
2 (4) A research and development enterprise.
3 (5) An export service enterprise.
4 (6) An enterprise which would offer a significant
5 economic impact, as determined by the department.
6 (7) A nonmanufacturing enterprise.
7 * * *
8 Section 705. Requirements.
9 (a) Private match.--Applications for assistance under this
10 chapter must include a written commitment from the applicant to
11 invest private matching funds at the project site. The amount of
12 private matching funds must be at least $4 for every $1 of
13 Opportunity Grant Program assistance[.], except that the amount
14 of private matching funds shall not be required to exceed $2 for
15 every $1 of Opportunity Grant Program assistance if the project
16 is located in a municipality which has been designated as a
17 critical economic area or is located in a county which has been
18 designated as a critical economic area pursuant to the act of
19 May 17, 1956 (1955 P.L.1609, No.537), known as the Pennsylvania
20 Industrial Development Authority Act.
21 * * *
22 Section 4. The act is amended by adding a section to read:
23 Section 907. Companies in critical economic areas; eligibility.
24 Notwithstanding any other provision of this chapter to the
25 contrary, the department shall provide job creation tax credits
26 to any company which is not involved in the application or
27 development of new technologies but otherwise meets the
28 eligibility requirements of section 902, if such company locates
29 or expands in a municipality which has been designated as a
30 critical economic area or is located in a county which has been
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1 designated as a critical economic area pursuant to the act of
2 May 17, 1956 (1955 P.L.1609, No.537), known as the Pennsylvania
3 Industrial Development Authority Act.
4 Section 5. The definitions of "capital development project
5 or project," "hospitality industry project" and "small business
6 enterprises" in section 1301 are amended and the section is
7 amended by adding a definition to read:
8 Section 1301. Definitions.
9 The following words and phrases when used in this chapter
10 shall have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 * * *
13 "Capital development project" or "project." Land, buildings,
14 equipment and machinery and working capital which is acquired,
15 constructed, renovated or used by a small business enterprise:
16 (1) As part of a for-profit project or venture [not of a
17 mercantile or service-related nature, except for] including
18 nonmanufacturing enterprise projects and hospitality industry
19 projects.
20 (2) To bring a small business enterprise into compliance
21 with Federal or State environmental laws or regulations or to
22 complete an approved remediation project or to permit the
23 small business enterprise to adopt generally acceptable
24 pollution prevention practices.
25 (3) To provide assistance to small business enterprises
26 that are recyclers of municipal or commercial waste or that
27 are manufacturers using recycled municipal or commercial
28 waste materials.
29 (4) To assist a small business enterprise with defense
30 conversion activities.
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1 (5) For the manufacture of products to be exported out
2 of the United States by a small business enterprise as part
3 of a for-profit project or venture [not of a mercantile or
4 service-related nature, except for], including export-related
5 services and international export-related mercantile ventures
6 or advanced technology and computer-related services and
7 mercantile ventures[,] and export-related services or
8 ventures of a nonmanufacturing enterprise, which will
9 increase this Commonwealth's national or international market
10 shares.
11 * * *
12 "Hospitality industry project." A for-profit project or
13 venture that involves a small business enterprise which operates
14 a hotel, motel or other lodging facility and which employs at
15 least five full-time equivalent employees at the time an
16 application is submitted to the department for financing. The
17 term also includes a for-profit project or venture that involves
18 a small business enterprise which operates a restaurant or food
19 service operation open to the public which [has been in
20 continuous operation for at least five years and] employs at
21 least five full-time equivalent employees at the time an
22 application is submitted to the area loan organization for
23 financing.
24 "Nonmanufacturing enterprise project." A for-profit project
25 or venture of a small business involved in retailing or any
26 other commercial activity as defined by the department, or in a
27 vocational trade or in a personal or professional service-
28 related activity and which employs 100 or fewer full-time or
29 part-time employees at the time an application is submitted to
30 the department for financing.
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1 "Small business enterprises." A for-profit corporation,
2 partnership or proprietorship which meets the eligibility
3 requirements established by the department. The term shall
4 include, but is not limited to, small business enterprises
5 located in small business incubator facilities, small business
6 enterprises which are agricultural processors [and], small
7 business enterprises which manufacture apparel products and
8 small business enterprises which are nonmanufacturing
9 enterprises.
10 * * *
11 Section 6. The act is amended by adding a section to read:
12 § 5106.1. Reports and guidelines.
13 SECTION 1. THE ACT OF JUNE 29, 1996 (P.L.434, NO.67), KNOWN <--
14 AS THE JOB ENHANCEMENT ACT, IS AMENDED BY ADDING SECTIONS TO
15 READ:
16 SECTION 302. ANNUAL INTEREST RATES FOR CERTAIN LOANS.
17 IN ADOPTING THE ANNUAL FINANCING STRATEGY IN ACCORDANCE WITH
18 SECTION 301(A), A LOWER INTEREST RATE FOR LOANS AUTHORIZED UNDER
19 THIS ACT MAY BE GIVEN TO SMALL BUSINESS ENTERPRISES WHICH LOCATE
20 OR EXPAND IN MUNICIPALITIES IN A COUNTY, IN WHICH THE LOWEST
21 INTEREST RATE UNDER THE ACT OF MAY 17, 1956 (1955 P.L.1609,
22 NO.537), KNOWN AS THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT
23 AUTHORITY ACT, IS APPLICABLE TO INVESTMENTS QUALIFYING FOR LOANS
24 UNDER THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY ACT.
25 SECTION 907. COMPANIES IN CERTAIN DESIGNATED AREAS AND
26 ELIGIBILITY.
27 NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER TO THE
28 CONTRARY, THE DEPARTMENT SHALL PROVIDE JOB CREATION TAX CREDITS
29 TO ANY COMPANY WITH FEWER THAN 26 EMPLOYEES WHICH IS NOT
30 INVOLVED IN THE APPLICATION OR DEVELOPMENT OF NEW TECHNOLOGIES
19970H0048B3424 - 6 -
1 BUT OTHERWISE MEETS THE ELIGIBILITY REQUIREMENTS OF SECTION 902,
2 IF SUCH COMPANY LOCATES OR EXPANDS IN A MUNICIPALITY IN A COUNTY
3 IN WHICH THE LOWEST INTEREST RATE UNDER THE ACT OF MAY 17, 1956
4 (1955 P.L.1609, NO.537), KNOWN AS THE PENNSYLVANIA INDUSTRIAL
5 DEVELOPMENT AUTHORITY ACT, IS APPLICABLE TO INVESTMENTS
6 QUALIFYING FOR LOANS UNDER THE PENNSYLVANIA INDUSTRIAL
7 DEVELOPMENT AUTHORITY ACT.
8 SECTION 5106.1. REPORTS AND GUIDELINES.
9 (a) Annual report.--On or before March 1, 1998 1999, and on <--
10 or before March 1 of each year thereafter, the department shall
11 provide a report to the Secretary of the Senate and the Chief
12 Clerk of the House of Representatives. The report shall describe
13 all relevant activities of the department pursuant to this act
14 for the preceding calendar year and shall include at least the
15 following:
16 (1) Number and types of small business enterprises which
17 applied for financial assistance.
18 (2) Number and types of small business enterprises which
19 received financial assistance.
20 (3) Amount of each individual grant.
21 (4) Amount of each individual loan.
22 (5) Loans repaid.
23 (6) Loans outstanding, including balances due and
24 delinquent payments.
25 (7) Actual loan default rate.
26 (8) Technical loan default rate, including a summary of
27 investigations undertaken and penalties assessed as a result
28 of any such default.
29 (9) Degree to which the small business enterprises
30 exceeded the matching fund requirement.
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1 (10) Number of jobs created during the preceding
2 calendar year by each small business enterprise receiving
3 assistance under this act.
4 (11) Number of net jobs created and maintained by each
5 small business enterprise receiving assistance under this
6 act.
7 (12) Rate of wage growth in each small business
8 enterprise receiving assistance under this act.
9 (13) Number of small business enterprises which have
10 received assistance and which are still operational.
11 (14) Time frame for processing and approving
12 applications for assistance and distributing funds to
13 applicants.
14 (b) Publication guidelines.--Any guideline adopted by the
15 department pursuant to this act shall be published in the
16 Pennsylvania Bulletin.
17 Section 7 2. This act shall take effect in 60 days. <--
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