PRINTER'S NO. 2278
No. 1758 Session of 2003
INTRODUCED BY LEWIS, ALLEN, ARGALL, BAKER, BASTIAN, CAPPELLI,
CLYMER, CREIGHTON, DALLY, FEESE, FLICK, GINGRICH, GRUCELA,
HARPER, HASAY, HENNESSEY, HERMAN, HERSHEY, HUTCHINSON,
MARSICO, McNAUGHTON, PHILLIPS, PICKETT, REED, REICHLEY,
SAYLOR, SCAVELLO, SOLOBAY, R. STEVENSON, T. STEVENSON,
E. Z. TAYLOR, J. TAYLOR, WRIGHT, ZUG AND SATHER,
JUNE 27, 2003
REFERRED TO COMMITTEE ON COMMERCE, JUNE 27, 2003
AN ACT
1 Amending Titles 12 (Commerce and Trade) and 72 (Taxation and
2 Fiscal Affairs) of the Pennsylvania Consolidated Statutes,
3 codifying portions of the Economic Development Financing Law
4 and further providing for contract requirements and for
5 Commonwealth obligations; codifying portions of the Job
6 Enhancement Act and further providing for contract
7 requirements, for guidelines, for administration and for
8 application and review requirements; codifying portions of
9 the Keystone Opportunity Zone and Keystone Opportunity
10 Expansion Zone Act and further providing for keystone
11 opportunity expansion subzones and for keystone opportunity
12 improvement zones; providing for the Project Review
13 Committee, for Keystone Innovation Zones, for the Economic
14 Enhancement Program, for the Economic Enhancement Financing
15 Program, for the Core Industries Infrastructure
16 Capitalization Program, for the Water and Wastewater
17 Infrastructure Capitalization Program, for the First
18 Industries Program, for the Secondary Growth Stage Financing
19 Program, for primary growth stage investment providing for
20 the Economic Enhancement Fund; codifying the Capital
21 Facilities Debt Enabling Act; further providing for
22 definitions, for procedures for capital budget and debt
23 authorizing legislation, for bonds, for appropriations for
24 and limitations on redevelopment assistance and site
25 development capital projects, and for funding and
26 administration of redevelopment assistance capital projects;
27 providing for funding and administration of site development
28 capital projects and for the Capital Project Oversight and
29 Review Committee; continuing debt authorization; making
1 repeals; requiring a referendum; and making appropriations.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. The General Assembly finds and declares as
5 follows:
6 (1) An economic stimulus program which provides direct
7 immediate economic assistance to Pennsylvania businesses and
8 industries is needed to preserve and to create jobs within
9 this Commonwealth.
10 (2) By targeting grant and loan assistance to
11 Pennsylvania businesses and industries for job creation,
12 health care safety and industrial and commercial site
13 development, the Commonwealth will trigger the needed
14 redevelopment and economic growth of industrial and
15 commercial activities conducted within this Commonwealth.
16 (3) By targeting grant and loan assistance to
17 Pennsylvania communities for water and wastewater
18 infrastructure projects, the Commonwealth will trigger the
19 redevelopment of existing brownfield sites and improve the
20 environment and health of all residents of this Commonwealth.
21 (4) By expanding tax-based financing of economic
22 development projects, the Commonwealth will assist local
23 governments in retaining employers of and recruiting
24 employers to this Commonwealth.
25 (5) By targeting loan assistance to the tourism and
26 agriculture sectors of the Commonwealth's economy, the
27 Commonwealth will provide additional financial support to
28 those leading Commonwealth industries hard hit by world
29 events and economic instability.
30 (6) By targeting capital investment and subsidized loan
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1 assistance to emerging business, the Commonwealth will
2 stimulate the growth and increase the stability of small
3 businesses within this Commonwealth.
4 (7) By preparing the Commonwealth to face the Federal
5 Base Realignment and Closure (BRAC) process, the Commonwealth
6 will increase the number of existing jobs it retains during
7 the next round of Federal base realignment and closures.
8 Section 1.1. Title 12 of the Pennsylvania Consolidated
9 Statutes is amended by adding parts to read:
10 PART I
11 GENERAL PROVISIONS
12 Chapter
13 1. (Reserved)
14 3. Economic Development Financing Strategy
15 5. Small Business Council
16 7. Tax-Exempt Bond Allocation (Reserved)
17 CHAPTER 1
18 (RESERVED)
19 CHAPTER 3
20 ECONOMIC DEVELOPMENT FINANCING STRATEGY
21 Sec.
22 301. Scope.
23 302. Definitions.
24 303. Development.
25 304. Oversight.
26 § 301. Scope.
27 This chapter relates to the development of an annual economic
28 development financing strategy.
29 § 302. 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 "Department." The Department of Community and Economic
4 Development of the Commonwealth.
5 "Economic development program." A program which is
6 administered by and which provides financial assistance for
7 economic development to persons or a program of a public entity
8 which provides financial assistance for economic development to
9 persons in coordination with the Department of Community and
10 Economic Development. The term includes all of the following:
11 (1) Any program created under Part III (relating to
12 economic development programs).
13 (2) Any program of an entity created under Part IV
14 (relating to economic development financing).
15 (3) The Pennsylvania Industrial Development Authority.
16 (4) The Pennsylvania Minority Business Development
17 Authority.
18 (5) The Infrastructure Development Program.
19 (6) The Industrial Sites Reuse Program.
20 (7) The tax credit programs established in Articles
21 XVII-B and XVIII-B of the act of March 4, 1971 (P.L.6, No.2),
22 known as the Tax Reform Code of 1971.
23 § 303. Development.
24 The department shall annually develop a report containing a
25 financing strategy for economic development within this
26 Commonwealth. In developing the report, the department shall
27 gather input and recommendations from businesses, community
28 leaders and organizations, legislators and private citizens. The
29 report shall include all of the following:
30 (1) A financial audit or statement of operations for
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1 each economic development program.
2 (2) A narrative description of accomplishments for each
3 economic development program during the preceding fiscal
4 year.
5 (3) A detailed description of the parameters of
6 operation for the economic development programs during the
7 upcoming fiscal year. The description shall include the terms
8 and conditions under which the economic development programs
9 shall be administered.
10 (4) A description of the performance measurements and
11 accountability factors to be applied and the performance
12 targets or goals to be met for each economic development
13 program.
14 (5) A description of long-range planning for the
15 economic development programs through the next five fiscal
16 years.
17 (6) A list of the loans, grants or credits approved by
18 the economic development programs during the fiscal year. The
19 list shall include a brief description of and details
20 regarding each loan, grant or credit approved.
21 (7) A review of pending projects.
22 § 304. Oversight.
23 Concurrent with the submission of the Governor's annual
24 budget message, the department shall submit the report required
25 by this chapter to all of the following:
26 (1) The Secretary of the Senate.
27 (2) The chairperson of the Appropriations Committee of
28 the Senate.
29 (3) The Chief Clerk of the House of Representatives.
30 (4) The chairperson of the Appropriations Committee of
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1 the House of Representatives.
2 CHAPTER 5
3 SMALL BUSINESS COUNCIL
4 Sec.
5 501. Scope.
6 502. Definitions.
7 503. Small Business Council.
8 504. Regulatory review.
9 § 501. Scope.
10 This chapter relates to the Small Business Council.
11 § 502. Definitions.
12 The following words and phrases when used in this chapter
13 shall have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Council." The Small Business Council established under
16 section 503 (relating to Small Business Council).
17 "Department." The Department of Community and Economic
18 Development of the Commonwealth.
19 "Executive agency." The Governor and the departments,
20 boards, commissions, authorities and other officers and agencies
21 of the Commonwealth. The term does not include any court or
22 other officer or agency of the unified judicial system, the
23 General Assembly and its officers and agencies or any
24 independent agency or State-affiliated entity.
25 "Secretary." The Secretary of Community and Economic
26 Development of the Commonwealth.
27 "Small business." A person that employs fewer than 100
28 employees.
29 § 503. Small Business Council.
30 (a) Establishment.--There is established within the
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1 department an agency to be known as the Small Business Council.
2 The council shall do all of the following:
3 (1) Assist with the development of policies and
4 regulations which affect small businesses within this
5 Commonwealth.
6 (2) Provide advice relating to the nature of small
7 business practices and problems in this Commonwealth.
8 (3) Provide a review of existing and proposed policies
9 and regulations which are relevant to small business.
10 (b) Composition.--The council shall be composed of 13
11 members. The secretary shall serve ex officio. Twelve members
12 shall be appointed as follows:
13 (1) Four individuals appointed by the Governor.
14 (2) Two individuals appointed by the President pro
15 tempore of the Senate.
16 (3) Two individuals appointed by the Minority Leader of
17 the Senate.
18 (4) Two individuals appointed by the Speaker of the
19 House of Representatives.
20 (5) Two individuals appointed by the Minority Leader of
21 the House of Representatives.
22 (c) Qualifications.--In order to be eligible for appointment
23 to the council, an individual must:
24 (1) have a background in improving small businesses; and
25 (2) be one of the following:
26 (i) a present owner or operator of a small business
27 within this Commonwealth;
28 (ii) a member of the academic community who has
29 expertise regarding small business practices; or
30 (iii) a professional who specializes in representing
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1 small businesses.
2 (d) Term.--Each member of the council shall serve for a
3 period of two years.
4 (e) Organization.--The secretary shall serve as chairperson.
5 The members of the council shall elect from among themselves a
6 vice chairperson, secretary, treasurer and such other officers
7 as they may determine.
8 (f) Meetings.--The council shall meet at the call of the
9 chairperson but shall meet at least once each quarter.
10 (g) Quorum.--A majority of the board shall constitute a
11 quorum. A majority of the members present shall be necessary to
12 transact business on behalf of the council.
13 (h) Expenses.--A member shall not receive compensation or
14 remuneration, but shall be entitled to reimbursement for all
15 reasonable and necessary actual expenses.
16 (i) Administrative assistance.--The department shall do all
17 of the following:
18 (1) Provide administrative and technical support to the
19 council.
20 (2) Publish notice of council meetings in accordance
21 with 65 Pa.C.S. Ch.7 (relating to open meetings).
22 (3) Maintain a mailing list of persons who have
23 requested specific notification of meetings and activities of
24 the council.
25 (4) Designate a deputy secretary to attend council
26 meetings and to serve as the public's liaison of the council.
27 (j) Cooperation.--Upon the council's request, an executive
28 agency shall provide the council with officially promulgated
29 regulatory and nonregulatory documents which regulate or would
30 regulate small businesses.
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1 § 504. Regulatory review.
2 (a) Notification.--To the extent known to the secretary, the
3 department shall, on a semiannual basis, provide the council
4 with a list of regulations being proposed by all executive
5 agencies which may affect small businesses in this Commonwealth.
6 (b) Conference.--The department shall, upon request of the
7 council, arrange a meeting between the council and
8 representatives of an executive agency to discuss regulatory
9 proposals and policy initiatives of the executive agency which
10 might affect small businesses in this Commonwealth.
11 (c) Written comments.--The council shall provide the
12 department with written comments regarding the council's
13 position on the proposed regulations. The department shall
14 transmit the comments to the appropriate executive agencies. The
15 written comments shall include an impact statement and any other
16 information which the council deems necessary for the public to
17 make an informed opinion on the proposals.
18 (d) Exceptions.--The requirements under subsections (a) and
19 (b) shall not apply to the promulgation of the following
20 regulations relating to small businesses:
21 (1) Regulations required by court order.
22 (2) Regulations necessitated by a Federal or State
23 declaration of emergency.
24 (3) Interim regulations which are authorized by statute.
25 CHAPTER 7
26 TAX-EXEMPT BOND ALLOCATION
27 (RESERVED)
28 PART II
29 ECONOMIC DEVELOPMENT ENTITIES
30 Chapter
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1 11. Ben Franklin (Reserved)
2 13. Industrial Resource Centers (Reserved)
3 15. (Reserved)
4 17. (Reserved)
5 19. (Reserved)
6 CHAPTER 11
7 BEN FRANKLIN
8 (RESERVED)
9 CHAPTER 13
10 INDUSTRIAL RESOURCE CENTERS
11 (RESERVED)
12 CHAPTER 15
13 (RESERVED)
14 CHAPTER 17
15 (RESERVED)
16 CHAPTER 19
17 (RESERVED)
18 PART III
19 ECONOMIC DEVELOPMENT PROGRAMS
20 Chapter
21 21. Opportunity Grants
22 23. Small Business First
23 25. Industrial Development Assistance (Reserved)
24 27. Customized Job Training (Reserved)
25 29. Machinery and Equipment (Reserved)
26 31. Family Savings Account (Reserved)
27 33. Economic Enhancement
28 35. Keystone Economic Development Zones
29 37. Keystone Innovation Zones
30 CHAPTER 21
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1 OPPORTUNITY GRANTS
2 Sec.
3 2101. Scope.
4 2102. Definitions.
5 2103. Establishment.
6 2104. Application.
7 2105. Review.
8 2106. Approval.
9 2107. Penalty.
10 2108. Limitations.
11 2109. Guidelines.
12 § 2101. Scope.
13 This chapter relates to the Opportunity Grant Program.
14 § 2102. Definitions.
15 The following words and phrases when used in this chapter
16 shall have the meanings given to them in this section unless the
17 context clearly indicates otherwise:
18 "Applicant." A person that applies for a grant in accordance
19 with this chapter.
20 "Department." The Department of Community and Economic
21 Development of the Commonwealth.
22 "Developer." A person that has as a purpose the promotion or
23 construction of economic development projects and that is
24 engaged in the development of real estate for use by more than
25 one person.
26 "Eligible recipient." Any of the following persons:
27 (1) A municipality.
28 (2) An entity created under the act of August 23, 1967
29 (P.L.251, No.102), known as the Economic Development
30 Financing Law.
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1 (3) An entity certified as an industrial development
2 agency under the act of May 17, 1956 (1955 P.L.1609, No.537),
3 known as the Pennsylvania Industrial Development Authority
4 Act.
5 (4) An entity created under 53 Pa.C.S. Ch.56 (relating
6 to municipal authorities) or under the former act of May 2,
7 1945 (P.L.382, No.164), known as the Municipality Authorities
8 Act of 1945.
9 (5) An entity created under the act of May 24, 1945
10 (P.L.991, No.385), known as the Urban Redevelopment Law.
11 (6) A developer.
12 (7) A person that is engaged in any of the following
13 activities:
14 (i) The production or processing of farm
15 commodities.
16 (ii) Manufacturing.
17 (iii) Research and development.
18 (iv) Export services.
19 (v) Any other activity which offers a significant
20 economic impact on the Commonwealth, as determined by the
21 department.
22 "Eligible use." Any of the following activities:
23 (1) Job training.
24 (2) The acquisition of land, buildings or rights-of-way.
25 (3) The construction or rehabilitation of buildings.
26 (4) The construction or rehabilitation of
27 infrastructure.
28 (5) The purchase or upgrading of machinery and
29 equipment.
30 (6) Working capital.
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1 (7) Site preparation, including demolition and
2 clearance.
3 (8) Environmental assessments.
4 (9) Remediation of hazardous material.
5 (10) Architectural and engineering fees up to 10% of the
6 award.
7 "Job-creating economic development." Includes the expansion
8 or preservation of existing industry.
9 "Program." The Opportunity Grant Program established in
10 section 2103 (relating to establishment.)
11 "Project." An activity conducted in this Commonwealth.
12 "Recipient." A person who receives a grant under this
13 chapter.
14 § 2103. Establishment.
15 There is established within the department a program to be
16 known as the Opportunity Grant Program. The program shall be
17 administered by the department to provide grants to eligible
18 persons for certain projects which encourage job-creating
19 economic development within this Commonwealth.
20 § 2104. Application.
21 A person may submit an application to the department
22 requesting a grant for a project. The application shall be on
23 the form required by the department and shall include or
24 demonstrate all of the following:
25 (1) The name and address of the applicant.
26 (2) A statement that the applicant is an eligible
27 recipient under the program.
28 (3) A statement of the amount of grant sought.
29 (4) A statement of the project, including a detailed
30 statement of the cost of the project.
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1 (5) A statement identifying the economic impact of the
2 project to the region and the estimated impact on State and
3 local revenues.
4 (6) A firm financial commitment from a responsible
5 source for at least 80% of the cost of the project.
6 (7) A firm commitment from the applicant to complete the
7 project.
8 (8) Any other information required by the department.
9 § 2105. Review.
10 The department shall review the application to determine all
11 of the following:
12 (1) If the applicant is an eligible recipient under the
13 program.
14 (2) If the project is an eligible use of grant proceeds
15 under the program.
16 (3) If a financial commitment exists for at least 80% of
17 the cost of the project.
18 (4) If the financial commitment from the source is firm.
19 (5) If the source of the financial commitment is
20 responsible.
21 (6) If the applicant complied with all other criteria
22 established by the department.
23 § 2106. Approval.
24 The following shall apply:
25 (1) Upon being satisfied that all requirements have been
26 met, the department may approve the application and award a
27 grant. Grants shall be awarded in a manner which maximizes
28 geographic diversity.
29 (2) Prior to providing grant funds to the applicant, the
30 department shall enter into a contract with the applicant.
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1 The contract shall include provisions requiring the applicant
2 to do all of the following:
3 (i) Use the grant to pay the costs of the project.
4 (ii) Repay the grant from any proceeds resulting
5 from a sale or partial sale of the project by the
6 applicant in accordance with the following:
7 (A) If the project is sold less than two years
8 after receipt of the grant, the applicant shall repay
9 the Commonwealth 90% of the grant received.
10 (B) If the project is sold more than two years
11 but less than four years after receipt of the grant,
12 the applicant shall repay the Commonwealth 80% of the
13 grant received.
14 (C) If the project is sold more than four years
15 but less than six years after receipt of the grant,
16 the applicant shall repay the Commonwealth 70% of the
17 grant received.
18 (D) If the project is sold more than six years
19 but less than eight years after receipt of the grant,
20 the applicant shall repay the Commonwealth 60% of the
21 grant received.
22 (E) If the project is sold more than eight years
23 but less than ten years after receipt of the grant,
24 the applicant shall repay the Commonwealth 50% of the
25 grant received.
26 (3) The department may impose any other terms and
27 conditions on the grants authorized by this chapter as the
28 department determines is in the best interests of the
29 Commonwealth, including a provision requiring collateral for
30 any penalty imposed under the program.
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1 § 2107. Penalty.
2 (a) Imposition.--Except as provided in subsection (b), the
3 department shall impose a penalty upon a recipient for any of
4 the following:
5 (1) Failing to create the number of jobs specified in
6 the recipients application.
7 (2) Failing to inject the required amount of private
8 matching funds into the project.
9 (b) Exception.--The department may waive the penalty
10 required by subsection (a) if the department determines that the
11 failure was due to circumstances outside the control of the
12 recipient.
13 (c) Amount.--The amount of the penalty shall be equal to the
14 full amount of the grant received plus an additional amount of
15 up to 10% of the amount of the grant received. The penalty shall
16 be payable in one lump sum or in installments, with or without
17 interest, as the department deems appropriate.
18 § 2108. Limitations.
19 (1) An applicant may not receive a grant under this
20 chapter for more than two consecutive fiscal years for the
21 same project.
22 (2) A grant awarded under this chapter may not be used
23 to do any of the following:
24 (i) Refinance or retire existing debt.
25 (ii) Pay cost unrelated to a project location at a
26 site in this Commonwealth.
27 (3) In no case shall the aggregate amount of grants paid
28 in any fiscal year under this chapter exceed the annual
29 appropriation to the department for the program.
30 (4) A grant awarded under this chapter shall in no way
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1 constitute an entitlement derived from the Commonwealth or a
2 claim on any other funds of the Commonwealth.
3 § 2109. Guidelines.
4 (a) Development.--The department shall develop written
5 guidelines for the program. The guidelines shall do all of the
6 following:
7 (1) Limit grant size for any single project.
8 (2) Clarify eligible uses of grants.
9 (3) Clarify standards for eligibility.
10 (b) Use.--No projects may be approved until the written
11 guidelines have been completed and copies of the guidelines have
12 been submitted to the General Assembly.
13 CHAPTER 23
14 SMALL BUSINESS FIRST
15 Sec.
16 2301. Scope.
17 2302. Definitions.
18 2303. Establishment.
19 2304. Fund and accounts.
20 2305. Department responsibilities.
21 2306. Capital development loans.
22 2307. EDA loans.
23 2308. Loans in distressed communities.
24 2309. Pollution prevention assistance loans.
25 2310. Export financing loans.
26 2311. Reporting and inspection.
27 2312. Limitations.
28 § 2301. Scope.
29 This chapter relates to the Small Business First Program.
30 § 2302. Definitions.
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1 The following words and phrases when used in this chapter
2 shall have the meanings given to them in this section unless the
3 context clearly indicates otherwise:
4 "Agricultural producer." A person involved in the management
5 and use of a normal agricultural operation for the production of
6 a farm commodity.
7 "Apparel products." Products manufactured, woven, cut, sewn
8 or otherwise similarly processed by mechanical or human effort
9 from fabrics, leather or cloth and made for use as clothing,
10 shoes or other attire.
11 "Applicant." A person that applies for a loan in accordance
12 with this chapter.
13 "Area loan organization." A local development district, an
14 industrial development agency organized and existing under the
15 act of May 17, 1956 (1955 P.L.1609, No.537), known as the
16 Pennsylvania Industrial Development Authority Act, or any other
17 nonprofit economic development organization certified by the
18 Department of Community and Economic Development as possessing
19 the qualifications necessary to evaluate and administer loans
20 made under this chapter.
21 "Capital development project." Land, buildings, equipment
22 and machinery and working capital which is acquired,
23 constructed, renovated or used by a small business in accordance
24 with any of the following:
25 (1) As part of a for-profit project or venture not of a
26 mercantile or service-related nature, except for hospitality
27 industry projects.
28 (2) As part of an effort to:
29 (i) bring a small business into compliance with
30 Federal or State environmental laws or regulations;
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1 (ii) complete an approved remediation project; or
2 (iii) permit a small business to adopt generally
3 acceptable pollution prevention practices.
4 (3) As part of an effort to provide assistance to a
5 small business that is a recycler of municipal or commercial
6 waste or that is a manufacturer using recycled municipal or
7 commercial waste materials.
8 (4) As part of an effort to assist a small business with
9 defense conversion activities.
10 (5) As part of a for-profit project or venture to
11 manufacture products to be exported out of the United States
12 by a small business which is not of a mercantile or service-
13 related nature, except for export-related services and
14 international export-related mercantile ventures or advanced
15 technology and computer-related services and mercantile
16 ventures and which will increase this Commonwealth's national
17 or international market shares.
18 (6) As part of a for-profit project or venture that
19 meets the requirements of section 2308 (relating to loans in
20 distressed communities)
21 (7) As part of an effort to assist in the start-up or
22 expansion of a for-profit or not-for-profit child day-care
23 center subject to licensure by the Commonwealth.
24 "Child day-care center." Any premises in which child day
25 care is provided simultaneously for seven or more children who
26 are not related to the provider.
27 "Community development institution." Any of the following:
28 (1) An area loan organization for a distressed
29 community.
30 (2) A community development financial institution
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1 located in a distressed community and approved by the
2 Department of Community and Economic Development.
3 "Department." The Department of Community and Economic
4 Development of the Commonwealth.
5 "Distressed community." A community which has any of the
6 following:
7 (1) A census tract or other specifically defined
8 geographic area in which there is any of the following:
9 (i) A median income below 80% of the median income
10 for the United States or this Commonwealth.
11 (ii) Twenty percent or more of the population is
12 below the poverty level by family size published by the
13 Bureau of the Census.
14 (iii) An unemployment rate 50% higher than the
15 national average.
16 (2) An area which is designated a subzone, expansion
17 subzone, or improvement subzone under the act of October 6,
18 1998 (P.L.705, No.92), known as the Keystone Opportunity Zone
19 and Keystone Opportunity Expansion Zone Act.
20 (3) Any other geographic area designated by the
21 Department of Community and Economic Development as
22 distressed. The designation shall be published in the
23 Pennsylvania Bulletin.
24 "EDA loan." A loan made under this chapter utilizing funds
25 made available to the department under the Public Works and
26 Economic Development Act of 1965 (Public Law 89-136, 42 U.S.C. §
27 3121 et seq.).
28 "Ex-Im Bank." The Export-Import Bank of the United States.
29 "Export activity." An activity undertaken by a person within
30 this Commonwealth related to exports.
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1 "Export business." A person that is engaged in a for-profit
2 enterprise involving export activities and that employs 250 or
3 fewer individuals.
4 "Exports." Goods and services to be sold outside the United
5 States.
6 "Farm commodity." Any Pennsylvania-grown agricultural,
7 horticultural, aquacultural, vegetable, fruit and floricultural
8 product of the soil, livestock and meats, wools, hides, furs,
9 poultry, eggs, dairy products, nuts, mushrooms, honey products
10 and forest products.
11 "Fund." The Small Business First Fund continued under
12 section 2304 (relating to fund and accounts).
13 "Hazardous substance." Any element, compound or material
14 which is any of the following:
15 (1) Regulated as a hazardous air pollutant under section
16 6.6 of the act of January 8, 1960 (1959 P.L.2119, No.787),
17 known as the Air Pollution Control Act.
18 (2) Defined as a hazardous waste under section 103 of
19 the act of July 7, 1980 (P.L.380, No.97), known as the Solid
20 Waste Management Act.
21 (3) Regulated under the act of December 7, 1990
22 (P.L.639, No.165), known as the Hazardous Material Emergency
23 Planning and Response Act.
24 "Hospitality industry project." A for-profit project or
25 venture which involves a small business that operates a hotel,
26 motel or other lodging facility and that employs at least five
27 full-time equivalent employees at the time an application is
28 submitted to the Department of Community and Economic
29 Development for financing. The term includes a for-profit
30 project or venture which involves a small business that operates
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1 a restaurant or food service operation open to the public, that
2 has been in continuous operation for at least five years and
3 that employs at least five full-time equivalent employees at the
4 time an application is submitted.
5 "Insurance policy." An export credit insurance policy for
6 small businesses offered by the Export-Import Bank of the United
7 States.
8 "Natural disaster." As defined in 35 Pa.C.S. § 7102
9 (relating to definitions).
10 "Normal agricultural operation." As defined in section 2 of
11 the act of June 10, 1982 (P.L.454, No.133), entitled "An act
12 protecting agricultural operations from nuisance suits and
13 ordinances under certain circumstances.
14 "Pollution prevention." The reduction or elimination of
15 pollution at its source. The term does not include any of the
16 following:
17 (1) A substitution of one hazardous or toxic substance
18 for another which will cause an increased risk to the
19 environment or to human health.
20 (2) A cross-media transfer.
21 (3) A delisting of a hazardous waste or toxic chemical.
22 "Pollution prevention assistance agency." Any of the
23 following:
24 (1) An area loan organization.
25 (2) An industrial resource center created pursuant to
26 the act of June 22, 2001 (P.L.400, No.31), known as the
27 Industrial Resources Center Partnership Act.
28 "Pollution prevention infrastructure." A capital development
29 project which permits a small business to adopt or install
30 pollution prevention equipment or processes to:
20030H1758B2278 - 22 -
1 (1) Reduce or reuse raw materials onsite.
2 (2) Reduce the production of waste.
3 (3) Reduce energy consumption.
4 "Program." The Small Business First Program established
5 under section 2303 (relating to establishment).
6 "Reuse." Use of a product or component in its original form
7 more than once.
8 "Small business." A person that is engaged in a for-profit
9 enterprise and that employs 100 or fewer individuals. The term
10 includes the following:
11 (1) An enterprise located in a small business incubator
12 facility.
13 (2) An agricultural processor.
14 (3) An agricultural producer.
15 (4) An enterprise which manufactures apparel products.
16 (5) An enterprise which is a for-profit or not-for-
17 profit child day-care center subject to licensure by the
18 Commonwealth.
19 "Working capital." Capital used by a small business for
20 operations, excluding fixed assets and production machinery and
21 equipment.
22 § 2303. Establishment.
23 There is established within the department a program to be
24 known as the Small Business First Program. The program shall be
25 administered by the department and provide loans to eligible
26 persons for certain projects which encourage job creating and
27 job preserving economic development within this Commonwealth.
28 § 2304. Fund and accounts.
29 (a) Fund.--The Small Business First Fund, created under
30 section 1302(a) of the act of June 29, 1996 (P.L.434, No.67),
20030H1758B2278 - 23 -
1 known as the Job Enhancement Act, is continued. The Treasury
2 Department shall credit the following to the fund:
3 (1) Appropriations made by the General Assembly to the
4 department for the program.
5 (2) Federal funds made available under the Public Works
6 and Economic Development Act of 1965 (Public Law 89-136, 42
7 U.S.C. § 3121 et seq.), or any other Federal statute,
8 regulation or program for the program.
9 (3) Payments from recipients of loans made from the
10 fund.
11 (4) Payments from recipients of loans made under the
12 former act of July 2, 1984 (P.L.545, No.109), known as the
13 Capital Loan Fund Act.
14 (5) Interest income derived from investment of the money
15 in the fund.
16 (6) Any other deposits, payments or contributions from
17 any other source made available to the department for the
18 program.
19 (b) Pollution prevention assistance.--The Pollution
20 Prevention Assistance Account, created under the act of June 29,
21 1996 (P.L.434, No.67), known as the Job Enhancement Act, is
22 continued. The Treasury Department shall credit the following to
23 this account:
24 (1) Appropriations made by the General Assembly to the
25 department for pollution prevention assistance.
26 (2) Payments from recipients of loans made from the
27 Pollution Prevention Assistance Account.
28 (3) Transfers from the Hazardous Sites Cleanup Fund as
29 established in section 602.3 of the act of March 4, 1971
30 (P.L.6, No.2), known as the Tax Reform Code of 1971.
20030H1758B2278 - 24 -
1 (4) Interest income derived from investment of the money
2 in the Pollution Prevention Assistance Account.
3 (5) Any other deposits, payments or contributions from
4 any other source made available to the department for
5 pollution prevention assistance.
6 (c) Export financing.--There is created within the fund an
7 account to be known as the Export Financing Assistance Account.
8 The Treasury Department shall credit the following to this
9 account:
10 (1) Appropriations made by the General Assembly to the
11 department for export financing assistance.
12 (2) Payments from recipients of loans made from the
13 Export Financing Assistance Account.
14 (3) Interest income derived from investment of the money
15 in the Export Financing Assistance Account.
16 (4) Any other deposits, payments or contributions from
17 any other source made available to the department for export
18 financing assistance.
19 (d) Use of fund.--Money in the fund may be used as follows:
20 (1) By the department to make loans in accordance with
21 this chapter and for administrative costs of the department
22 in administering the program.
23 (2) By area loan organizations for administrative costs
24 associated with the program which are approved by the
25 department.
26 (e) Use of Pollution Prevention Assistance Account.--Money
27 in the Pollution Prevention Assistance Account may be used by
28 the department to provide loans to small businesses for the
29 adoption or installation of pollution-prevention or energy-
30 efficient equipment or processes in accordance with section 2309
20030H1758B2278 - 25 -
1 (relating to pollution prevention assistance loans).
2 (f) Use of Export Financing Assistance Account.--Money in
3 the Export Financing Assistance Account may be used by the
4 department to provide loans to export businesses for export
5 activities in accordance with section 2310 (relating to export
6 financing 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, the
16 Pollution Prevention Assistance Account or Export Financing
17 Assistance Account, as appropriate.
18 (4) Approve standards for area loan organization
19 application fees.
20 (5) Approve community development financial
21 institutions.
22 (b) Program.--In administering the program, the department
23 may do any of the following:
24 (1) Provide grants or other financial assistance to area
25 loan organizations for any of the following purposes:
26 (i) To establish loan reserve funds.
27 (ii) To reimburse loan losses to commercial banks
28 and other financial institutions as a means of
29 encouraging the expansion and financing of small
30 businesses.
20030H1758B2278 - 26 -
1 (2) Apply to the Ex-Im Bank for delegated authority
2 lender status under the Ex-Im Bank's Working Capital Guaranty
3 Program.
4 (3) Utilize the outstanding portfolio of loans made
5 under this chapter to raise additional funds by selling,
6 securing, hypothecating or otherwise using such loan proceeds
7 as a financing vehicle if the funds raised are used by the
8 department for either of the following purposes:
9 (i) To make new and additional loans under this
10 chapter.
11 (ii) To pay costs associated with financing.
12 § 2306. Capital development loans.
13 (a) Application.--A small business may submit an application
14 and any applicable application fee to its area loan organization
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 of the amount of loan assistance sought.
21 (3) A statement of the capital development project
22 including a detailed statement of the cost of the project.
23 (4) A firm financial commitment from a responsible
24 source for any cost of the capital development project in
25 excess of the amount requested.
26 (5) Any other information required by the department.
27 (b) Area loan organization review.--
28 (1) Upon receipt of a completed application, an area
29 loan organization shall investigate and determine all of the
30 following:
20030H1758B2278 - 27 -
1 (i) If the applicant is a small business.
2 (ii) If the project is a capital development
3 project.
4 (iii) If, when the applicant is a small business,
5 the capital development project demonstrates a
6 substantial likelihood of creating or preserving
7 employment activities in this Commonwealth or if, when
8 the applicant is an agriculture producer, the project
9 demonstrates a substantial likelihood of enhancing and
10 growing normal agriculture operations.
11 (iv) The ability of the applicant to meet and
12 satisfy the debt service as it becomes due and payable.
13 (v) The existence and sufficiency of collateral for
14 the loan. Collateral may include lien positions on
15 nonresidential real property and on personal property.
16 (vi) Relevant criminal and credit history and
17 ratings of the applicant as determined from outside
18 credit reporting services and other sources.
19 (vii) The number of employment opportunities to be
20 created or preserved by the proposed capital development
21 project.
22 (viii) If the applicant complied with all other
23 criteria established by the department.
24 (2) Upon being satisfied that all requirements have been
25 met, the area loan organizations shall recommend the
26 applicant to the department and forward the application with
27 all supporting documentation to the department for its review
28 and approval.
29 (c) Department review.--
30 (1) Within 30 days of receiving a recommendation and
20030H1758B2278 - 28 -
1 application, the department shall review the application. If
2 the department is satisfied that all requirements have been
3 met, the department may approve the loan request in
4 accordance with the following:
5 (i) A loan for land, buildings and machinery and
6 equipment may not exceed $200,000 or 50% of the total
7 capital development project costs, whichever is less.
8 (ii) A loan for working capital may not exceed
9 $100,000 or 50% of the total capital development project
10 costs, whichever is less.
11 (iii) Except for loans to agriculture producers, a
12 loan must create or preserve one job for every $25,000
13 loaned.
14 (2) The department shall notify the area loan
15 organization and applicant of its decision.
16 (d) Approvals.--For applications which are approved, the
17 department shall draw an advance equal to the principal amount
18 of the loan from the fund. The advance shall be forwarded to the
19 area loan organization and, upon receipt by the area loan
20 organization, shall become an obligation of the area loan
21 organization. Prior to providing loan funds to the applicant,
22 the area loan organization shall require the applicant to
23 execute a note and to enter into a loan agreement. In addition
24 to the requirements of subsection (e), the loan agreement shall
25 include a provision requiring the recipient to use the loan
26 proceeds to pay the costs of the capital development project.
27 The department may require the area loan organization to impose
28 other terms and conditions on the recipient if the department
29 determines that they are in the best interests of this
30 Commonwealth, including a provision requiring collateral for any
20030H1758B2278 - 29 -
1 penalty imposed under subsection (g).
2 (e) Loan terms.--A loan agreement entered into in accordance
3 with subsection (c) 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 area
7 loan organization with the approval of the department. The
8 collateral may include nonresidential real estate purchased
9 as part of the capital development project.
10 (2) State the repayment period in accordance with the
11 following:
12 (i) A loan for real property shall have a repayment
13 period of up to 15 years.
14 (ii) A loan for machinery and equipment shall have a
15 repayment period of up to ten years.
16 (iii) A loan for working capital shall have a
17 repayment period of up to three years.
18 (iv) If, in a capital development project, there are
19 two or more uses planned, the loan terms may be blended.
20 (3) State the interest rate in accordance with the
21 following:
22 (i) Except a provided in subparagraph (ii), loans
23 shall be made at an interest rate not to exceed 5% for
24 the term of the loan.
25 (ii) A loan to a small business which is an
26 agricultural producer shall be made at an interest rate
27 of not less than 2% for the term of the loan if all of
28 the following apply:
29 (A) A declaration under 35 Pa.C.S. § 7301(c)
30 (relating to general authority of Governor) is in
20030H1758B2278 - 30 -
1 effect for at least ten days prior to the date of
2 application.
3 (B) The application is made within nine months
4 of termination of the declaration.
5 (C) The agricultural producer is in the area
6 which has been declared to be a natural disaster
7 area.
8 (f) Loan administration.--A loan made under this section
9 shall be administered in accordance with departmental policies
10 and procedures by the area loan organization which made the
11 loan. Each area loan organization shall submit an annual report
12 on the form required by the department and which includes or
13 demonstrates all of the following:
14 (1) Each outstanding loan.
15 (2) The date approved.
16 (3) The original principal amount.
17 (4) The current principal balance.
18 (5) The interest rate.
19 (6) The purpose for which the loan was made.
20 (7) An enumeration of any problems or issues which have
21 arisen with regard to each loan.
22 (8) A statement regarding the progress of the small
23 business in creating or preserving its requisite number of
24 employment opportunities.
25 (9) Any other information or documentation required by
26 the department.
27 (g) 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 create or preserve the number of employment
20030H1758B2278 - 31 -
1 opportunities specified in its 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 (h) Defaults.--The department may by foreclosure take title
11 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 moneys held in the fund. The
15 department may, in order to minimize financial losses and
16 sustain employment, lease the capital development project. The
17 department may withdraw moneys from the fund to purchase first
18 mortgages and to make payments on first mortgages on any capital
19 development project which it financed where purchase or payment
20 is necessary to protect a loan made under this section. The
21 department may sell, transfer, convey and assign the first
22 mortgages and shall deposit any moneys derived from the sale of
23 any first mortgages in the fund.
24 § 2307. EDA loans.
25 (a) Application and administration procedures.--The
26 department shall establish application and administration
27 procedures to be used for EDA loans. The procedures shall be
28 established by guidelines and shall conform in all respects to
29 those procedures required or established by the Economic
30 Development Administration for use of Federal funds under the
20030H1758B2278 - 32 -
1 Public Works and Economic Development Act of 1965 (Public Law
2 89-136, 42 U.S.C. § 3121 et seq.).
3 (b) Eligibility for EDA loans.--The department shall
4 establish eligibility requirements to be used for EDA loans. The
5 requirements shall be established by guidelines and shall
6 conform in all respects to those procedures required or
7 established by the Economic Development Administration for use
8 of Federal funds under the Public Works and Economic Development
9 Act of 1965.
10 § 2308. Loans in distressed communities.
11 (a) Application.--A small business located in a distressed
12 community may submit an application and any applicable
13 application fee to a community development institution
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 that the small business is engaged in
20 business-to-public service or in the mercantile, commercial
21 or point-of-sale retail business sectors.
22 (3) A statement of the amount of loan assistance sought.
23 (4) A statement of the capital development project,
24 including a detailed statement of the cost of the project.
25 (5) A firm financial commitment from a responsible
26 source for the cost of the capital development project in
27 excess of the amount requested.
28 (6) Any other information required by the department.
29 (b) Community development institution review.--
30 (1) Upon receipt of a completed application, a community
20030H1758B2278 - 33 -
1 development institution shall investigate and determine all
2 of the following:
3 (i) If the applicant is a small business which is
4 engaged business-to-public service or in the mercantile,
5 commercial or point-of-sale retail business sectors in
6 accordance with conditions or criteria established by the
7 department.
8 (ii) If the project is a capital development
9 project.
10 (iii) If the applicant has demonstrated a direct
11 impact on the community in which the capital development
12 project is or will be located, on residents of that
13 community or on the local and/or regional economy. The
14 department shall establish criteria that will assist in
15 making this demonstration.
16 (iv) The ability of the applicant to meet and
17 satisfy the debt service as it becomes due and payable.
18 In reviewing repayment obligations, loans shall not be
19 approved on the basis of direct financial return on
20 investment and shall not be held to the loan loss
21 standards of private commercial lenders. Loans shall
22 review for the purpose of establishing a strong economic
23 base and promoting entrepreneurial activity within the
24 distressed community.
25 (v) The existence and sufficiency of collateral for
26 the loan. Collateral may include lien positions on
27 nonresidential real property and on personal property.
28 (vi) Relevant criminal and credit history and
29 ratings of the applicant as determined from outside
30 credit reporting services and other sources.
20030H1758B2278 - 34 -
1 (vii) Number of employment opportunities to be
2 created or preserved by the proposed capital development
3 project.
4 (viii) If the applicant complied with all other
5 criteria established by the department.
6 (2) Upon being satisfied that all requirements have been
7 met, the community development institution shall recommend
8 the applicant to the department and forward the application
9 with all supporting documentation to the department for its
10 review and approval.
11 (c) Department review.--
12 (1) Within 30 days of receiving a recommendation and
13 application, the department shall review the application. If
14 the department is satisfied that all requirements have been
15 met, the department may approve the loan request in
16 accordance with the following:
17 (i) A loan for land, buildings and machinery and
18 equipment may not exceed $200,000 or 50% of the total
19 capital development project costs, whichever is less.
20 (ii) A loan for working capital may not exceed
21 $100,000 or 50% of the total capital development project
22 costs, whichever is less.
23 (iii) Except for loans to agriculture producers, a
24 loan would create or preserve one job for every $25,000
25 loaned.
26 (2) The department shall notify the community
27 development institution and applicant of its decision.
28 (d) Approvals.--For applications which are approved, the
29 department shall draw an advance equal to the principal amount
30 of the loan from the fund. The advance shall be forwarded to the
20030H1758B2278 - 35 -
1 community development institution and, upon receipt by the
2 community development institution, become an obligation of the
3 community development institution. Prior to providing loan funds
4 to the applicant, the community development institution shall
5 require the applicant to execute a note and to enter into a loan
6 agreement. In addition to the requirements of subsection (e),
7 the loan agreement shall include a provision requiring the
8 recipient to use the loan proceeds to pay the costs of the
9 capital development project. The department may require the
10 community development institution to impose other terms and
11 conditions on the recipient if the department determines they
12 are in the best interests of this Commonwealth, including a
13 provision requiring collateral for any penalty imposed under
14 subsection (g).
15 (e) Loan terms.--A loan agreement entered into in accordance
16 with subsection (d) shall do all of the following:
17 (1) State any collateral securing the loan. The
18 department may use its best judgment to identify and secure
19 collateral.
20 (2) State the repayment period which may be flexible.
21 (3) State the interest rate which may not be less than
22 2% nor more than 5% for the term of the loan.
23 (4) State that the recipient agrees to maintain, at a
24 minimum, the number of jobs in existence as of the date of
25 loan application.
26 (f) Loan administration.--A loan made under this section
27 shall be administered in accordance with departmental policies
28 and procedures by the community development institution which
29 made the loan. Each community development institution shall
30 submit an annual report on the form required by the department
20030H1758B2278 - 36 -
1 which includes or demonstrates all of the following:
2 (1) Each outstanding loan.
3 (2) The date approved.
4 (3) The original principal amount.
5 (4) The current principal balance.
6 (5) The interest rate.
7 (6) The purpose for which the loan was made.
8 (7) An enumeration of any problems or issues which have
9 arisen with regard to each loan.
10 (8) A statement regarding the progress of the small
11 business in creating or preserving its requisite number of
12 employment opportunities.
13 (9) Any other information or documentation required by
14 the department.
15 (g) Penalty.--
16 (1) Except as provided in paragraph (2), the department
17 shall impose a penalty upon a recipient if the recipient
18 fails to create or preserve the number of employment
19 opportunities specified in its approved application.
20 (2) The department may waive the penalty required by
21 paragraph (1) if the department determines that the failure
22 was due to circumstances outside the control of the
23 recipient.
24 (3) The amount of any penalty imposed under paragraph
25 (1) shall be equal to an increase in the interest rate to 2%
26 greater than the current prime interest rate for the
27 remainder of the loan.
28 (h) Defaults.--The department may take title by foreclosure
29 to a capital development project which it financed where
30 acquisition is necessary to protect a loan made under this
20030H1758B2278 - 37 -
1 section. The department shall pay all costs arising out of the
2 foreclosure and acquisition from money held in the fund. The
3 department may, in order to minimize financial losses and
4 sustain employment, lease the capital development project. The
5 department may withdraw money from the fund to purchase first
6 mortgages and to make payments on first mortgages on any capital
7 development project which it financed if purchase or payment is
8 necessary to protect a loan made under this section. The
9 department may sell, transfer, convey and assign the first
10 mortgages and shall deposit in the fund money derived from the
11 sale of any first mortgages.
12 § 2309. Pollution prevention assistance loans.
13 (a) Application.--A small business may submit an application
14 and any application fee to a pollution prevention assistance
15 agency requesting a loan for a pollution prevention
16 infrastructure. The application shall be on the form required by
17 the department and shall include or demonstrate all of the
18 following:
19 (1) The name and address of the applicant.
20 (2) A statement of the amount of loan assistance sought.
21 (3) A statement of the pollution prevention
22 infrastructure, including a detailed statement of the cost of
23 the infrastructure.
24 (4) A firm financial commitment from a responsible
25 source for the cost of the pollution prevention
26 infrastructure in excess of the amount requested.
27 (5) Any other information required by the department.
28 (b) Pollution prevention assistance agency review.--
29 (1) Upon receipt of a completed application, a pollution
30 prevention assistance agency shall investigate and determine
20030H1758B2278 - 38 -
1 all of the following:
2 (i) If the applicant is a small business.
3 (ii) If the project is for pollution prevention
4 infrastructure.
5 (iii) If the pollution prevention infrastructure
6 demonstrates a substantial likelihood of preventing or
7 reducing pollution.
8 (iv) The ability of the applicant to meet and
9 satisfy the debt service as it becomes due and payable.
10 In reviewing repayment obligations, loans shall not be
11 approved on the basis of direct financial return on
12 investment and shall not be held to the loan loss
13 standards of private commercial lenders. Loans shall be
14 reviewed for the purpose of reducing pollution through
15 source reduction technologies or processes.
16 (v) The existence and sufficiency of collateral for
17 the loan. Collateral may include lien positions on
18 nonresidential real property and on personal property.
19 (vi) Relevant criminal and credit history and
20 ratings of the applicant as determined from outside
21 credit reporting services and other sources.
22 (vii) If the applicant complied with all other
23 criteria established by the department.
24 (2) Upon being satisfied that all requirements have been
25 met, the pollution prevention assistance agency shall
26 recommend the applicant to the department and forward the
27 application with all supporting documentation to the
28 department for its review and approval.
29 (c) Department review.--
30 (1) Within 30 days of receiving a recommendation and
20030H1758B2278 - 39 -
1 application, the department shall review the application. The
2 Department of Environmental Protection shall assist the
3 department in reviewing the applications and provide
4 technical assistance. If the department is satisfied that all
5 requirements have been met, the department may approve the
6 loan request. A loan approved under this subsection may not
7 exceed the lesser of:
8 (i) $100,000; or
9 (ii) 75% of infrastructure costs.
10 (2) The department shall notify the pollution prevention
11 assistance agency and applicant of its decision.
12 (d) Approvals.--For applications which are approved, the
13 department shall draw an advance equal to the principal amount
14 of the loan from the Pollution Prevention Assistance Account.
15 The advance shall be forwarded to the pollution prevention
16 assistance agency and, upon receipt by the pollution prevention
17 assistance agency, become an obligation of the pollution
18 prevention assistance agency. Prior to providing loan funds to
19 the applicant, the pollution prevention assistance agency shall
20 require the applicant to execute a note and to enter into a loan
21 agreement. In addition to the requirements of subsection (e),
22 the loan agreement shall include a provision requiring the
23 recipient to use the loan proceeds to pay the costs of the
24 pollution prevention infrastructure. The department may require
25 the pollution prevention assistance agency to impose other terms
26 and conditions on the recipient if the department determines
27 they are in the best interests of this Commonwealth, including a
28 provision requiring collateral for any penalty imposed under
29 subsection (g).
30 (e) Loan terms.--A loan agreement entered into in accordance
20030H1758B2278 - 40 -
1 with subsection (d) shall do all of the following:
2 (1) State the collateral securing the loan. All loans
3 shall be secured by lien positions on collateral at the
4 highest level of priority as may be determined by the
5 pollution prevention assistance agency with the approval of
6 the department. The collateral may include nonresidential
7 real estate purchased as part of the pollution prevention
8 infrastructure.
9 (2) State the repayment period which may not exceed 10
10 years.
11 (3) State that the interest rate is 2%.
12 (4) State that any loan fee is not to exceed 5% of the
13 loan amount.
14 (f) Loan administration.--A loan made under this section
15 shall be administered in accordance with departmental policies
16 and procedures by the pollution prevention assistance agency
17 which made the loan. Each pollution prevention assistance agency
18 shall submit an annual report on the form required by the
19 department which includes or demonstrates all of the following:
20 (1) Each outstanding loan.
21 (2) The date approved.
22 (3) The original principal amount.
23 (4) The current principal balance.
24 (5) The interest rate.
25 (6) The purpose for which the loan was made.
26 (7) An enumeration of any problems or issues which have
27 arisen with regard to each loan.
28 (8) Any other information or documentation required by
29 the department.
30 (g) Penalty.--
20030H1758B2278 - 41 -
1 (1) Except as provided in paragraph (2), the department
2 shall impose a penalty upon a recipient if the recipient
3 fails to prevent or reduce pollution as specified in its
4 approved application.
5 (2) The department may waive the penalty required by
6 paragraph (1) if the department determines that the failure
7 was due to circumstances outside the control of the
8 recipient.
9 (3) The amount of any penalty imposed under paragraph
10 (1) shall be equal to an increase in the interest rate to 2%
11 greater than the current prime interest rate for the
12 remainder of the loan.
13 (h) Defaults.--The department may take title by foreclosure
14 to a pollution prevention infrastructure which it financed if
15 acquisition is necessary to protect a loan made under this
16 section. The department shall pay all costs arising out of the
17 foreclosure and acquisition from money held in the Pollution
18 Prevention Assistance Account. The department may, in order to
19 minimize financial losses and sustain employment, lease the
20 pollution prevention infrastructure. The department may withdraw
21 money from the Pollution Prevention Assistance Account to
22 purchase first mortgages and to make payments on first mortgages
23 on any pollution prevention infrastructure which it financed if
24 the purchase or payment is necessary to protect a loan made
25 under this section. The department may sell, transfer, convey
26 and assign the first mortgages and shall deposit any money
27 derived from the sale of any first mortgages in the Pollution
28 Prevention Assistance Account.
29 § 2310. Export financing loans.
30 (a) Application.--A person may submit an application and any
20030H1758B2278 - 42 -
1 applicable application fee to the department or its area loan
2 organization requesting a loan for certain costs of a capital
3 development project which will be used in export activities. The
4 application must be on the form required by the department and
5 must include or demonstrate all of the following:
6 (1) The name and address of the applicant.
7 (2) A statement of the amount of loan assistance sought.
8 (3) A statement of the capital development project,
9 including a detailed statement of the cost of the project.
10 (4) A statement that the capital development project is
11 based upon an export contract which requires payment in
12 United States dollars.
13 (5) A firm financial commitment from a responsible
14 source for any cost of the capital development project in
15 excess of the amount requested.
16 (6) A statement that the loan, if approved, would not
17 supplant funding from private sector sources on commercially
18 reasonable terms.
19 (7) Any other information required by the department.
20 (b) Review.--
21 (1) Upon receipt of a competed application, the
22 department or, if applicable, an area loan organization shall
23 investigate and determine all of the following:
24 (i) If the applicant is an export business.
25 (ii) If the project is a capital development
26 project.
27 (iii) If the capital development project
28 demonstrates a substantial likelihood of creating or
29 preserving employment activities in this Commonwealth.
30 (iv) The ability of the applicant to meet and
20030H1758B2278 - 43 -
1 satisfy the debt service as it becomes due and payable.
2 (v) The existence and sufficiency of collateral for
3 the loan. Collateral may include lien positions on
4 nonresidential real property and on personal property.
5 (vi) Relevant criminal and credit history and
6 ratings of the applicant as determined from outside
7 credit reporting services and other sources.
8 (vii) Number of employment opportunities to be
9 created or preserved by the proposed capital development
10 project.
11 (viii) If the applicant complied with all other
12 criteria established by the department.
13 (2) Upon being satisfied that all requirements have been
14 met, the department may approve the application in accordance
15 with subsection (c) or the area loan organization 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.--The department shall review an
20 application within 30 days of receiving it. If the department is
21 satisfied that all requirements have been met, the department
22 may approve the loan request. A loan approved under this section
23 may not exceed $350,000. The department shall notify the
24 applicant and, if applicable, the area loan organization of its
25 decision.
26 (d) Approvals.--
27 (1) For applications which were submitted directly to
28 the department and which are approved, the department shall
29 draw an advance equal to the principal amount of the loan
30 from the Export Activities Assistance Account. Prior to
20030H1758B2278 - 44 -
1 providing funds to the applicant, the department shall
2 require the applicant to execute a note and enter into a loan
3 agreement. In addition to the requirements of subsection (e),
4 the loan agreement shall include a provision requiring the
5 recipient to use the loan proceeds to pay the costs of the
6 capital development project. The department may impose other
7 terms and conditions on the recipient if the department
8 determines they are in the best interests of this
9 Commonwealth, including any of the following:
10 (i) A provision requiring collateral for any penalty
11 imposed under subsection (g).
12 (ii) A provision requiring the person to be eligible
13 for an insurance policy.
14 (iii) A provision requiring the loan to be
15 guaranteed by the Working Capital Guaranty Program
16 offered by the Ex-Im Bank.
17 (iv) A provision requiring an export credit sales
18 contract insured by an insurance policy.
19 (2) For applications which were submitted to the
20 department through an area loan organization and which are
21 approved, the department shall draw an advance equal to the
22 principal amount of the loan from the Export Activities
23 Assistance Account. The advance shall be forwarded to the
24 area loan organization and, upon receipt by the area loan
25 organization, become an obligation of the area loan
26 organization. Prior to providing loan funds to the applicant,
27 the area loan organization shall require the applicant to
28 execute a note and enter into a loan agreement. In addition
29 to the requirements of subsection (e), the loan agreement
30 shall include a provision requiring the recipient to use the
20030H1758B2278 - 45 -
1 loan proceeds to pay the costs of the capital development
2 project. The department may require the area loan
3 organization to impose other terms and conditions on the
4 recipient if the department determines they are in the best
5 interests of this Commonwealth, including any of the
6 following:
7 (i) A provision requiring collateral for any penalty
8 imposed under subsection (g).
9 (ii) A provision requiring the person to be eligible
10 for an insurance policy.
11 (iii) A provision requiring the loan to be
12 guaranteed by the Working Capital Guaranty Program
13 offered by the Ex-Im Bank.
14 (iv) A provision requiring an export credit sales
15 contract insured by an insurance policy.
16 (e) Loan terms.--A loan agreement entered into in accordance
17 with subsection (d) shall do all of the following:
18 (1) State the collateral securing the loan. All loans
19 shall be secured by lien positions on collateral at the
20 highest level of priority as may be determined by the area
21 loan organization with the approval of the department. The
22 collateral may include nonresidential real estate purchased
23 as part of a capital development project.
24 (2) State the repayment period as determined by the
25 department.
26 (3) State the interest rate as determined by the
27 department.
28 (f) Loan administration.--A loan made under this section
29 shall be administered in accordance with departmental policies
30 and procedures. If a loan was made through an area loan
20030H1758B2278 - 46 -
1 organization, the area loan organization shall submit an annual
2 report on the form required by the department which includes or
3 demonstrates all of the following:
4 (1) Each outstanding loan.
5 (2) The date approved.
6 (3) The original principal amount.
7 (4) The current principal balance.
8 (5) The interest rate.
9 (6) The purpose for which the loan was made.
10 (7) An enumeration of any problems or issues which have
11 arisen with regard to each loan.
12 (8) A statement regarding the progress of the person
13 creating or preserving its requisite number of employment
14 opportunities.
15 (9) Any other information or documentation required by
16 the department.
17 (g) Penalty.--
18 (1) Except as provided in paragraph (2), the department
19 shall impose a penalty upon a recipient if the recipient
20 fails to create or preserve the number of employment
21 opportunities specified in its approved application.
22 (2) The department may waive the penalty required by
23 paragraph (1) if the department determines that the failure
24 was due to circumstances outside the control of the
25 recipient.
26 (3) The amount of the penalty imposed under paragraph
27 (1) shall be equal to an increase in the interest rate to 2%
28 greater than the current prime interest rate for the
29 remainder of the loan.
30 (h) Defaults.--The department may, by foreclosure, take
20030H1758B2278 - 47 -
1 title to a capital development project which it financed if
2 acquisition is necessary to protect a loan made under this
3 section. The department shall pay all costs arising out of the
4 foreclosure and acquisition from money held in the Export
5 Activities Assistance Account. The department may, in order to
6 minimize financial losses and sustain employment, lease the
7 capital development project. The department may withdraw money
8 from the Export Activities Assistance Account to purchase first
9 mortgages and to make payments on first mortgages on any capital
10 development project which it financed if purchase or payment is
11 necessary to protect a loan made under this section. The
12 department may sell, transfer, convey and assign the first
13 mortgages and shall deposit any money derived from the sale of
14 any first mortgages in the Export Activities Assistance Account.
15 § 2311. Reporting and inspection.
16 (a) Inspection.--An applicant or a recipient shall, upon
17 request, permit authorized employees of the department or its
18 agent to inspect the plant, books and records of the applicant
19 or recipient.
20 (b) Updating.--An applicant or a recipient shall provide
21 updated information to the department and its agents if
22 conditions change or to the extent that the information
23 originally given becomes inaccurate or misleading.
24 (c) Periodic reports.--A recipient shall provide the
25 department and its agents with such periodic financial reports
26 as the department may require until the loan is repaid in full.
27 (d) Financial and performance audits.--An agent of the
28 department shall annually submit to the department, at the
29 agent's expense, an independent financial audit. If the audit
30 reveals misconduct of a material nature on the part of the
20030H1758B2278 - 48 -
1 agent, the department shall take appropriate action.
2 § 2312. Limitations.
3 No loans shall be recommended or approved if the proceeds of
4 the loan could do any of the following:
5 (1) Cause, aid or assist directly in the relocation of
6 any business operations from one part of this Commonwealth to
7 another unless there is at least a 25% net increase in
8 employment.
9 (2) Refinance any portion of the total cost of a capital
10 development project, pollution prevention infrastructure or
11 other existing loans or debt.
12 (3) Finance a capital development project or pollution
13 prevention infrastructure located outside the geographic
14 boundaries of this Commonwealth.
15 (4) Provide funds, directly or directly, for payment
16 distribution or as loan owners, partners or shareholders of a
17 small business, except as ordinary compensation for services
18 rendered.
19 (5) Provide funds for speculation in real or personal
20 property, whether tangible or intangible.
21 CHAPTER 25
22 INDUSTRIAL DEVELOPMENT ASSISTANCE
23 (RESERVED)
24 CHAPTER 27
25 CUSTOMIZED JOB TRAINING
26 (RESERVED)
27 CHAPTER 29
28 MACHINERY AND EQUIPMENT
29 (RESERVED)
30 CHAPTER 31
20030H1758B2278 - 49 -
1 FAMILY SAVINGS ACCOUNT
2 (RESERVED)
3 CHAPTER 33
4 ECONOMIC ENHANCEMENT
5 Sec.
6 3301. Scope of chapter.
7 3302. Definitions.
8 3303. Establishment.
9 3304. Review Committee.
10 3305. Application.
11 3306. Review and approval.
12 3307. Designation.
13 § 3301. Scope of chapter.
14 This chapter relates to the Economic Enhancement Program.
15 § 3302. Definitions.
16 The following words and phrases when used in this chapter
17 shall have the meaning given to them in this section unless the
18 context clearly indicates otherwise:
19 "Authority." The Pennsylvania Economic Development Financing
20 Authority established in Chapter 43 (relating to Pennsylvania
21 Economic Development Financing Authority).
22 "Committee." The Review Committee established in section
23 3304 (relating to review committee).
24 "Department." The Department of Community and Economic
25 Development of the Commonwealth.
26 "Deteriorated property." A blighted, impoverished area
27 containing residential, industrial, commercial or other real
28 property which is abandoned, unsafe, vacant, undervalued,
29 underutilized, overgrown, defective, condemned, demolished or
30 which contains economically undesirable land use. The term
20030H1758B2278 - 50 -
1 includes all of the following:
2 (1) A tax increment district.
3 (2) Property adjacent to deteriorated property which is
4 significantly undervalued and underutilized due to the
5 proximity of the deteriorated property.
6 "Issuing authority." As that term is defined in the act of
7 July 11, 1990 (P.L.465, No.113), known as the Tax Increment
8 Financing Act.
9 "Tax incentive district." A contiguous geographic area
10 designated by the Department of Community and Economic
11 Development under section 3307 (relating to designation).
12 "Tax increment district." The term as it is defined in the
13 act of July 11, 1990 (P.L.465, No.113), known as the Tax
14 Increment Financing Act.
15 § 3303. Establishment.
16 There is hereby established within the department a program
17 to be known as the Economic Enhancement Program. The program
18 shall provide economic assistance to deteriorated property by
19 using certain tax revenues from property located in incentive
20 districts to increase economic development in incentive
21 districts.
22 § 3304. Review Committee.
23 (a) Establishment.--There is hereby established a committee
24 to be known as the Review Committee. The committee shall review
25 and recommend applications to the Governor. The committee shall
26 be composed of the following five members:
27 (1) The Governor or the Secretary of the Budget.
28 (2) The Majority Leader of the Senate, or a designee.
29 (3) The Minority Leader of the Senate, or a designee.
30 (4) The Majority Leader of the House of Representatives,
20030H1758B2278 - 51 -
1 or a designee.
2 (5) The Minority Leader of the House of Representatives,
3 or a designee.
4 (b) Operation.--The Governor or the Secretary of the Budget
5 shall serve as chairperson. The committee shall meet at the call
6 of the chairperson. Four members shall constitute a quorum, and
7 the consent of four members of the committee shall be required
8 to recommend an application.
9 § 3305. Application.
10 A person or an issuing authority may apply to the department
11 to have deteriorated property designated an incentive district.
12 The application shall be on a form provided by the department
13 and shall include all of the following:
14 (1) The name and address of the applicant.
15 (2) A legal description of the property which is to be
16 included in the incentive district.
17 (3) A statement that the property is deteriorated.
18 (4) A firm commitment of future economic development on
19 the property if the property were designated an incentive
20 district.
21 (5) Any other information required by the department.
22 § 3306. Review and approval.
23 (a) Review.--The department shall forward the application to
24 the committee when it is complete. The committee shall review
25 the application to determine all of the following:
26 (1) If the applicant is firmly committed to improving
27 the property upon designation.
28 (2) If the applicant complied with all other criteria
29 established by the committee.
30 (b) Approval.--Upon being satisfied that all requirements
20030H1758B2278 - 52 -
1 have been met, the committee may approve the application and
2 recommend that the property be designated an incentive district.
3 The recommendation shall specify the time period for which the
4 property may be designated, not to exceed 20 years. The
5 department shall immediately notify affected municipalities of
6 the recommendation.
7 § 3307. Designation.
8 Within 90 days of receiving notification in accordance with
9 section 3306 (relating to review and approval), a municipality
10 may request the department to designate the deteriorated
11 property as a tax incentive district. The request shall be on a
12 form provided by the department and shall include a copy of the
13 ordinance, resolution or other required action from the
14 governing body of the municipality approving the designation of
15 the property as a tax incentive district. All appropriate
16 ordinances and resolutions shall be binding and nonrevocable on
17 the municipality. If all municipalities within a recommended tax
18 incentive district submit timely completed requests, the
19 department shall approve the requests and designate the property
20 as a tax incentive district. Upon designation, persons owning
21 property located within a tax incentive district and issuing
22 authorities of tax increment districts located within a tax
23 incentive district shall be eligible to receive grants and loans
24 under the Economic Enhancement Financing Program administered by
25 the Pennsylvania Economic Development Financing Authority.
26 CHAPTER 35
27 KEYSTONE ECONOMIC DEVELOPMENT ZONES
28 Subchapter
29 A. General Provisions
20030H1758B2278 - 53 -
1 B. Keystone Opportunity Zones and Keystone Opportunity
2 Expansion Zones
3 C. State Taxes (Reserved)
4 D. Local Taxes (Reserved)
5 E. Administration of Tax Provisions(Reserved)
6 F. Procedures for Zones (Reserved)
7 G. Miscellaneous Provisions (Reserved)
8 SUBCHAPTER A
9 GENERAL PROVISIONS
10 Sec.
11 3501. Scope.
12 3502. Legislative findings (Reserved).
13 3503. Definitions.
14 § 3501. Scope.
15 This chapter relates to Keystone Opportunity Zones and
16 Keystone Opportunity Expansion Zones.
17 § 3502. Legislative findings.
18 (Reserved)
19 § 3503. 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 "Business." An association, partnership, corporation, sole
24 proprietorship, limited liability company or employer.
25 "Department." The Department of Community and Economic
26 Development of the Commonwealth.
27 "Deteriorated property." Any blighted, impoverished area
28 containing residential, industrial, commercial or other real
29 property which is abandoned, unsafe, vacant, undervalued,
30 underutilized, overgrown, defective, condemned, demolished or
20030H1758B2278 - 54 -
1 which contains economically undesirable land use. The term
2 includes property adjacent to deteriorated property which is
3 significantly undervalued and underutilized due to the proximity
4 of the deteriorated property.
5 "Domicile." The place where a person has a true and fixed
6 home and principal establishment for an indefinite time and to
7 which, whenever absent, that person intends to return. Domicile
8 continues until another place of domicile is established.
9 "Expansion subzone." A clearly defined geographic area
10 containing a minimum of 15 contiguous acres or a minimum of five
11 contiguous acres in a rural area.
12 "Improvement subzone." A clearly defined geographic area.
13 "Institution."
14 (1) Every bank operating as such and having capital
15 stock which is incorporated under any law of this
16 Commonwealth, under the law of the United States or under the
17 law of any other jurisdiction and is located within this
18 Commonwealth.
19 (2) Every operating company having capital stock located
20 within this Commonwealth having any of the powers of
21 companies entitled to the benefits of section 29 of the act
22 of April 29, 1874 (P.L.73, No.32), entitled "An act to
23 provide for the incorporation and regulation of certain
24 corporations," and any supplements thereto and under the act
25 of June 27, 1895 (P.L.399, No.286), entitled "An act
26 conferring upon certain fidelity, insurance, safety deposit,
27 trust and savings companies the powers and privileges of
28 companies incorporated under the provisions of section
29 twenty-nine of an act, entitled 'An act to provide for the
30 incorporation and regulation of certain corporations,'
20030H1758B2278 - 55 -
1 approved April twenty-ninth, Anno Domini one thousand eight
2 hundred and seventy-four, and of the supplements thereto."
3 (3) Every company organized and operating as a bank and
4 trust company or as a trust company having capital stock
5 located in this Commonwealth, whether the institution is
6 incorporated under any law of this Commonwealth, the law of
7 the United States or any law of any jurisdiction. The term
8 shall not include any of such companies, all of the shares of
9 capital stock of which, other than shares necessary to
10 qualify directors, are owned by a company which is liable to
11 pay to the Commonwealth a tax pursuant to Article VII of the
12 act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
13 Code of 1971.
14 (4) A mutual thrift institution.
15 "Insurance company." Every insurance company, association or
16 exchange incorporated or organized by or under the laws of this
17 Commonwealth, the United States, territories, dependencies,
18 other states or foreign governments and engaged in transacting
19 insurance business of any kind or classification within this
20 Commonwealth, except title insurance companies subject to tax
21 under Article VIII or XVI of the act of March 4, 1971 (P.L.6,
22 No.2), known as the Tax Reform Code of 1971, as the case may be,
23 except purely mutual beneficial associations whose funds for the
24 benefit of members and families or heirs are made up entirely of
25 the weekly, monthly, quarterly, semiannual or annual
26 contributions to their members and the accumulated interest
27 thereon and corporations organized under the former act of June
28 21, 1937 (P.L.1948, No.378), known as the Nonprofit Hospital
29 Plan Act, and under the former act of June 27, 1939 (P.L.1125,
30 No.399), known as the Nonprofit Medical, Osteopathic, Dental and
20030H1758B2278 - 56 -
1 Podiatry Service Corporation Act.
2 "Keystone Act." The act of October 6, 1998 (P.L.705, No.92),
3 known as the Keystone Opportunity Zone and Keystone Opportunity
4 Expansion Zone Act.
5 "Keystone opportunity expansion zone." A defined geographic
6 area comprised of one or more political subdivisions or portions
7 of political subdivisions designated by the Department of
8 Community and Economic Development under Subch. B (relating to
9 keystone opportunity zones and keystone expansion zones). A
10 keystone opportunity expansion zone may be comprised of not more
11 than eight expansion subzones.
12 "Keystone opportunity zone." A defined geographic area
13 comprised of one or more political subdivisions or portions of
14 political subdivisions designated by the Department of Community
15 and Economic Development under Subch. B (relating to keystone
16 opportunity zones and keystone opportunity expansion zones). A
17 keystone opportunity zone may be comprised of not more than 12
18 subzones.
19 "Metropolitan statistical area." A core area containing a
20 city with a population of 50,000 or more or a Bureau of Census
21 defined urbanized area of 50,000 with a total metropolitan
22 population of at least 100,000.
23 "Mutual thrift institution." Every:
24 (1) savings bank without capital stock;
25 (2) building and loan association;
26 (3) savings and loan association;
27 (4) savings institution having capital stock;
28 whether the mutual thrift institution is incorporated under any
29 law of this Commonwealth or under the law of the United States,
30 or is incorporated under the law of any other jurisdiction and
20030H1758B2278 - 57 -
1 is located within this Commonwealth.
2 "Opportunity plan." A written plan that addresses the
3 criteria and meets the requirements in section 3514(a) (relating
4 to application).
5 "Person." An individual.
6 "Political subdivision." A county, city, borough, township,
7 town or school district with taxing jurisdiction in a defined
8 geographic area within this Commonwealth.
9 "Qualified business." A business authorized to do business
10 in this Commonwealth that is located or partially located within
11 a subzone or expansion subzone and is engaged in the active
12 conduct of a trade or business in accordance with the
13 requirements of section 3519 (relating to qualified businesses)
14 for the taxable year. An agent, broker or representative of a
15 business is not engaged in the active conduct of trade or
16 business for the business.
17 "Qualified political subdivision." A political subdivision
18 that has real property within its jurisdiction which has been
19 designated by the department as a subzone or expansion subzone.
20 "Resident." A person who is domiciled and resides in an area
21 that is designated a subzone or expansion subzone and who meets
22 the requirements of section 3518 (relating to residency).
23 "Subzone." A clearly defined geographic area containing a
24 minimum of 20 contiguous acres or a minimum of ten contiguous
25 acres in a rural area.
26 "Tax Reform Code of 1971." The act of March 4, 1971 (P.L.6,
27 No.2), known as the Tax Reform Code of 1971, and any subsequent
28 amendments thereto.
29 SUBCHAPTER B
30 KEYSTONE OPPORTUNITY ZONES AND KEYSTONE
20030H1758B2278 - 58 -
1 OPPORTUNITY EXPANSION ZONES
2 Sec.
3 3511. Keystone opportunity zones.
4 3512. Keystone opportunity expansion zones.
5 3513. Keystone opportunity improvement zones.
6 3514. Application.
7 3515. Review.
8 3516. Criteria for authorization of keystone opportunity
9 zone.
10 3517. Zone limitations.
11 3518. Residency.
12 3519. Qualified businesses.
13 3520. Forms.
14 3521. Decertification.
15 § 3511. Keystone opportunity zones.
16 (a) Establishment.--There is established within the
17 department a program providing for keystone opportunity zones. A
18 keystone opportunity zone shall be comprised of deteriorated
19 property and shall not exceed a total of 5,000 acres.
20 (b) Zone authorization.--The department shall authorize not
21 more than 12 keystone opportunity zones in this Commonwealth.
22 Persons and businesses within an authorized keystone opportunity
23 zone that are qualified under this chapter shall be entitled to
24 all tax exemptions, deductions, abatements or credits set forth
25 in Chapters 5 and 7 of the Keystone Act for a period not to
26 exceed 15 years beginning January 1, 1999, and ending on or
27 before December 31, 2013.
28 (c) Subzone designation.--The department may designate not
29 more than 12 subzones in each keystone opportunity zone. The
30 total number of subzone acres in a keystone opportunity zone
20030H1758B2278 - 59 -
1 shall not exceed 5,000 acres in the aggregate.
2 (d) Authorization for local tax exemption.--Every political
3 subdivision within which a proposed subzone is located, whether
4 in whole or in part, is authorized to provide tax exemptions,
5 deductions, abatements or credits to persons and businesses
6 qualified under this chapter. The political subdivision must
7 agree to provide exemptions, deductions, abatements or credits
8 from all local taxes set forth in Chapter 7 of the Keystone Act
9 in order to qualify to be designated a subzone. Except as
10 provided in section 3515(e) (relating to review), the
11 exemptions, deductions, abatements or credits must be effective
12 January 1, 1999, if designation of a subzone within the
13 political subdivision is granted by the department. The
14 exemptions, deductions, abatements or credits shall be binding
15 upon the political subdivision for the duration of the subzone
16 designation.
17 (e) Authorization to extend the duration of a keystone
18 opportunity zone or subzone.--A subzone of a keystone
19 opportunity zone may request to extend its designation as a
20 subzone for a period of three years. A subzone that is part of a
21 keystone opportunity zone that will expire on December 31, 2008,
22 may extend its designation as a subzone to December 31, 2010, or
23 to December 31, 2013. The request to extend a subzone
24 designation must be made on a subzone-by-subzone basis. A
25 qualified political subdivision having an approved subzone
26 within its jurisdiction and seeking to extend the subzone
27 designation must pass the required ordinances, resolutions or
28 other required action of the qualified political subdivision for
29 the exemptions, deductions, abatements or credits set forth in
30 Chapter 7 of the Keystone Act for the period beginning after
20030H1758B2278 - 60 -
1 December 31, 2008, or December 31, 2010, as the case may be, and
2 must submit copies of the ordinance, resolution or other action
3 to the department by June 30, 2001. The department may grant the
4 request to extend if all the proper binding ordinances,
5 resolutions or other governing documents are passed by all
6 qualified political subdivisions within the subzone extending
7 the necessary exemptions, deductions, abatements and credits to
8 the entire subzone to December 31, 2010, or December 31, 2013.
9 The department shall approve or deny the request for extension
10 of duration of a subzone by July 31, 2001, and shall provide
11 written notice, irrespective of whether approved or denied, to
12 each qualified political subdivision, resident and qualified
13 business affected. Upon approval of a request for extension of
14 duration of a subzone, the exemptions, deductions, abatements or
15 credits shall be binding upon the qualified political
16 subdivision as provided in subsection (d).
17 (f) Authorization to enhance existing subzones.--Unless as a
18 result of a request the limitation on size established in
19 subsection (a) would be exceeded, a subzone of a keystone
20 opportunity zone may request to enhance its size. The request to
21 enhance a subzone must be made on a subzone-by-subzone basis. A
22 qualified political subdivision having an approved subzone
23 within its jurisdiction which is seeking to enhance its size
24 must pass the required ordinances, resolutions or other required
25 action of the qualified political subdivision for the
26 exemptions, deductions, abatements or credits set forth in
27 Chapter 7 of the Keystone Act for the period beginning on the
28 date of designation and ending on the date the subzone expires
29 and must submit copies of the ordinance, resolution or other
30 action to the department by June 1, 2003.
20030H1758B2278 - 61 -
1 § 3512. Keystone opportunity expansion zones.
2 (a) Establishment.--There is established within the
3 department a program providing for keystone opportunity
4 expansion zones. A keystone opportunity expansion zone shall be
5 comprised of deteriorated property and shall not exceed a total
6 of 1,500 acres.
7 (b) Authorization.--The department shall authorize not more
8 than 12 keystone opportunity expansion zones in this
9 Commonwealth. Persons and businesses within an authorized
10 keystone opportunity expansion zone that are qualified under the
11 Keystone Act shall be entitled to all tax exemptions,
12 deductions, abatements or credits set forth in Chapters 5 and 7
13 of the Keystone Act for a period of ten or 13 years beginning
14 January 1, 2001, and ending on December 31, 2010, or December
15 31, 2013.
16 (c) Expansion subzone designation.--The department may
17 designate not more than eight expansion subzones in a keystone
18 opportunity expansion zone. The total number of expansion
19 subzone acres in a keystone opportunity expansion zone shall not
20 exceed 1,500 acres in the aggregate.
21 (d) Authorization for local tax exemption.--Every political
22 subdivision within which a proposed expansion subzone is
23 located, whether in whole or in part, is authorized to provide
24 tax exemptions, deductions, abatements or credits to persons and
25 businesses qualified under this chapter for a period ending
26 December 31, 2010, or December 31, 2013. The exemption period
27 must be uniform within each expansion subzone. The political
28 subdivision must agree to provide exemptions, deductions,
29 abatements or credits from all local taxes set forth in Chapter
30 7 of the Keystone Act in order to qualify to be designated an
20030H1758B2278 - 62 -
1 expansion subzone. The exemptions, deductions, abatements or
2 credits must be effective January 1, 2001, if designation of an
3 expansion subzone within the political subdivision is granted by
4 the department. The exemptions, deductions, abatements or
5 credits shall be binding upon the political subdivision for the
6 duration of the expansion subzone designation.
7 (e) Authorization to enhance existing expansion subzones.--
8 Unless as a result of a request the limitation on size
9 established in subsection (a) would be exceeded, a keystone
10 opportunity expansion zone may request to enhance its size. The
11 request to enhance the expansion zone must be made on an
12 expansion-subzone-by-expansion-subzone basis. A qualified
13 political subdivision which is seeking an expansion subzone
14 within its jurisdiction must pass the required ordinance,
15 resolution or other required action of the qualified political
16 subdivision for the exemptions, deductions, abatements or
17 credits set forth in Chapter 7 of the Keystone Act for the
18 period beginning on January 1, 2004, and ending on December 31,
19 2010, or on December 31, 2013. Copies of the ordinance,
20 resolution or other action must be submitted to the department
21 by December 31, 2003.
22 § 3513. Keystone opportunity improvement zones.
23 (a) Establishment.--There is established within the
24 department a program for keystone opportunity improvement zones.
25 A keystone opportunity improvement zone shall be comprised of
26 improvement subzones consisting of deteriorated property
27 designated by the Governor.
28 (b) Proposal.--By January 1, 2003, and notwithstanding any
29 designation under sections 3511 (relating to keystone
30 opportunity zones) and 3512 (relating to keystone opportunity
20030H1758B2278 - 63 -
1 expansion zones), the Governor may, by executive order,
2 designate deteriorated property in this Commonwealth as a
3 proposed improvement subzone. The executive order shall specify
4 the period of time, not to exceed 15 years, for which the tax
5 exemptions, deductions, abatements or credits provided by
6 Chapters 5 and 7 of the Keystone Act may be granted. The
7 department shall immediately notify political subdivisions
8 located within the area designated.
9 (c) Application.--By June 1, 2004, a political subdivision
10 may apply to the department for approval of the designation of
11 the deteriorated property as an improvement subzone for the
12 period designated under subsection (b). The application must be
13 on a form provided by the department and must include a copy of
14 an ordinance, resolution or other required action from the
15 governing body of the political subdivision exempting or
16 providing the deductions, abatements or credits set forth in
17 Chapter 7 of the Keystone Act to qualified persons and qualified
18 businesses within the proposed improvement subzone. Except as
19 provided in section 3521 (relating to decertification), all
20 appropriate ordinances and resolutions must be effective for the
21 period specified in the executive order and must be binding and
22 nonrevocable on the political subdivision.
23 (d) Designation.--If all political subdivisions within a
24 proposed improvement subzone submit timely completed
25 applications, the department shall approve the applications and
26 designate the property as an improvement subzone. If a proposed
27 improvement subzone is an existing subzone or an existing
28 expansion subzone, failure of a political subdivision to submit
29 the application as required by this section shall not terminate
30 the existing designation as either a subzone or an expansion
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1 subzone. Qualified persons and qualified businesses within the
2 improvement subzone shall be entitled to the State exemptions,
3 deductions, abatements or credits set forth in Chapter 5 of the
4 Keystone Act and the local tax exemptions, deductions,
5 abatements or credits set forth in Chapter 7 of the Keystone Act
6 for the period for which the improvement subzone has been
7 designated.
8 § 3514. Application.
9 (a) Initial application.--One or more political
10 subdivisions, or a designee of one or more political
11 subdivisions, may apply to the department to designate
12 deteriorated property within the political subdivision or
13 portions thereof a subzone or expansion subzone. The application
14 must contain the following:
15 (1) The geographic area of the proposed keystone
16 opportunity zone or proposed keystone opportunity expansion
17 zone. The geographic area must be located within the
18 boundaries of the participating political subdivision and
19 must not contain more than 5,000 acres in the case of a
20 keystone opportunity zone or 1,500 acres in the case of a
21 keystone opportunity expansion zone.
22 (2) An opportunity plan that must include the following:
23 (i) A detailed map of the proposed keystone
24 opportunity zone or proposed keystone opportunity
25 expansion zone, including geographic boundaries, total
26 area and present use and conditions of the land and
27 structures of the proposed keystone opportunity zone or
28 proposed keystone opportunity expansion zone.
29 (ii) Evidence of support from and participation of
30 local government, school districts and other educational
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1 institutions, business groups, community organizations
2 and the public.
3 (iii) A proposal to increase economic opportunity,
4 reduce crime, improve education, facilitate
5 infrastructure improvement, reduce the local regulating
6 burden and identify potential jobs and job training
7 opportunities and which states whether or not the zone is
8 located in an area which has tax revenue dedicated to the
9 payment of debt.
10 (iv) A description of the current social, economic
11 and demographic characteristics of the proposed keystone
12 opportunity zone or proposed keystone opportunity
13 expansion zone and anticipated improvements in education,
14 health, human services, public safety and employment,
15 that will result from keystone opportunity zone or
16 keystone opportunity expansion zone designation.
17 (v) A description of anticipated activity in the
18 proposed keystone opportunity zone or proposed keystone
19 opportunity expansion zone, including, industrial use,
20 industrial site reuse, commercial or retail use and
21 residential use.
22 (vi) Evidence of potential private and public
23 investment in the proposed keystone opportunity zone or
24 proposed keystone opportunity expansion zone.
25 (vii) The role of the proposed keystone opportunity
26 zone or proposed keystone opportunity expansion zone in
27 regional economic and community development.
28 (viii) Plans to utilize existing resources for the
29 administration of the proposed keystone opportunity zone
30 or proposed keystone opportunity expansion zone.
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1 (ix) Any other information deemed appropriate by the
2 department.
3 (3) A report on youth at risk to include issues relating
4 to health, welfare and education.
5 (4) The duration of the proposed subzones or proposed
6 expansion subzones. The duration of a subzone may not exceed
7 15 years. The duration of an expansion subzone may not exceed
8 13 years.
9 (5) A formal, binding ordinance or resolution passed by
10 every political subdivision in which the proposed subzone or
11 proposed expansion subzone is located that specifically
12 provides for all local tax exemptions, deductions, abatements
13 or credits for persons and businesses set forth in the
14 Keystone Act.
15 (6) Evidence that the proposed keystone opportunity zone
16 or proposed keystone opportunity expansion zone meets the
17 required criteria under section 3516 (relating to criteria
18 for authorization of keystone opportunity zone).
19 (a.1) Enhancement application.--One or more political
20 subdivisions within an existing keystone opportunity zone or
21 keystone opportunity expansion zone, or a designee of one or
22 more political subdivisions within an existing keystone
23 opportunity zone or keystone opportunity expansion zone, may
24 apply to the department to designate deteriorated property
25 within the political subdivision or portions of the political
26 subdivision as enhancements to a subzone or an expansion
27 subzone. The application must satisfy the requirements of
28 subsection (a)(1), (2), (3), (5) and (6).
29 (b) Participation limitation.--A political subdivision may
30 not be a part of more than one proposed keystone opportunity
20030H1758B2278 - 67 -
1 zone or proposed keystone opportunity expansion zone. A proposed
2 expansion subzone may not overlap the boundaries of a subzone.
3 (c) Application limitation.--A political subdivision may
4 submit only one application to the department for authorization
5 as a keystone opportunity zone. A political subdivision may
6 submit only one application to the department for authorization
7 as a keystone opportunity expansion zone. A political
8 subdivision may submit only one application to the department
9 for designation of enhancements to existing keystone opportunity
10 zones and keystone opportunity expansion zones. If a political
11 subdivision seeks to enhance its existing keystone opportunity
12 zone under section 3511(f) (relating to keystone opportunity
13 zones) or a keystone opportunity expansion zone under section
14 3512(e) (relating to keystone opportunity expansion zones) and
15 the Governor has designated an improvement subzone located
16 within the political subdivision under section 3513(b) (relating
17 to keystone opportunity improvement zones), the political
18 subdivision must submit one application containing both the
19 request required by section 3511(f) or 3512(e) and the
20 application required by section 3513(c).
21 § 3515. Review.
22 (a) Action of department.--The department, in consultation
23 with the Department of Revenue, shall review all completed
24 applications submitted under this chapter. An application for
25 authorization as a keystone opportunity zone and designation of
26 subzones must be received by the department by September 30,
27 1998, in order to be considered by the department. An
28 application for authorization as a keystone opportunity
29 expansion zone and designation of expansion subzones must be
30 received by the department by February 28, 2001, in order to be
20030H1758B2278 - 68 -
1 considered by the department. An application for enhancement of
2 an existing keystone opportunity zone or of a keystone
3 opportunity expansion zone must be received by the department by
4 December 31, 2003.
5 (b) Process.--The department shall authorize up to 12
6 keystone opportunity zones from applications meeting the
7 criteria in section 3516 (relating to criteria for authorization
8 of keystone opportunity zone), based upon need and likelihood of
9 success. The department shall authorize up to 12 keystone
10 opportunity expansion zones from applications meeting the
11 criteria in section 3516, based upon need and likelihood of
12 success. Additionally, the department shall not alter the
13 geographic boundaries of a subzone or expansion subzone or the
14 duration of a subzone or expansion subzone described in an
15 application. The department shall designate additional
16 enhancements to existing keystone opportunity zones and keystone
17 opportunity expansion zones from applications meeting the
18 criteria in section 3516 based upon need and likelihood of
19 success.
20 (c) Authorizations.--The department shall authorize all
21 keystone opportunity zones by November 30, 1998. The department
22 shall authorize all keystone opportunity expansion zones by
23 March 30, 2001. The department shall designate all enhancements
24 to existing keystone opportunity zones and to keystone
25 opportunity expansion zones by January 31, 2004.
26 (d) Effective date of designation.--The designation of a
27 subzone under this chapter shall take effect on January 1, 1999.
28 The designation of an expansion subzone under this chapter shall
29 take effect on January 1, 2001. The designation of enhancements
30 to existing keystone opportunity zones and to keystone
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1 opportunity expansion zones under this chapter shall take effect
2 January 1, 2004.
3 (e) Extension.--The department may extend the deadline for
4 the receipt of applications for keystone opportunity zones until
5 December 31, 1998, if all 12 zones have not been authorized and
6 the extension is necessary to allow eligible political
7 subdivisions to apply. The department shall authorize additional
8 keystone opportunity zones under this subsection by February 28,
9 1999. The authorization shall take effect January 1, 1999; or,
10 if the authorization occurs after January 1, 1999, that
11 subsequent authorization shall for all purposes be retroactive
12 to January 1, 1999. The keystone opportunity zone authorization
13 shall end as provided in section 3511(b) (relating to keystone
14 opportunity zones).
15 § 3516. Criteria for authorization of keystone opportunity
16 zone.
17 (a) Specific criteria.--In order to qualify for
18 authorization under this chapter, the proposed keystone
19 opportunity zone or proposed keystone opportunity expansion zone
20 must meet at least two of the following criteria:
21 (1) At least 20% of the population is below the poverty
22 level.
23 (2) The unemployment rate is 1.25 times the Statewide
24 average.
25 (3) At least 20% of all real property within a five-mile
26 radius of the proposed keystone opportunity zone, proposed
27 keystone opportunity expansion zone, proposed subzone or
28 proposed expansion subzone in a nonurban area is deteriorated
29 or underutilized.
30 (4) At least 20% of all real property within a one-mile
20030H1758B2278 - 70 -
1 radius of the proposed keystone opportunity zone, proposed
2 keystone opportunity expansion zone, proposed subzone or
3 proposed expansion subzone in an urban area is deteriorated
4 or underutilized.
5 (5) At least 20% of all occupied housing within a two-
6 mile radius of the proposed keystone opportunity zone,
7 proposed keystone opportunity expansion zone, proposed
8 subzone or proposed expansion subzone in a nonurban area is
9 deteriorated.
10 (6) At least 20% of all occupied housing within a one-
11 mile radius of the proposed keystone opportunity zone,
12 proposed keystone opportunity expansion zone, proposed
13 subzone or proposed expansion subzone in an urban area is
14 deteriorated.
15 (7) In an urban area, the median family income is 80% or
16 less of the urban median family income for that metropolitan
17 statistical area.
18 (8) In an area other than an urban area, the median
19 family income is 80% or less of the Statewide nonurban median
20 family income.
21 (9) The population loss exceeds 10% in an area that
22 includes the proposed keystone opportunity zone or proposed
23 keystone opportunity expansion zone and its surrounding area
24 but is not larger than the county or counties in which the
25 proposed keystone opportunity zone or proposed keystone
26 opportunity expansion zone is located, based on census data
27 for the period between 1980 and 1990 or census estimates
28 since 1990 establishing a pattern of population loss.
29 (10) The political subdivision in which the proposed
30 keystone opportunity zone or proposed keystone opportunity
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1 expansion zone is located has experienced a sudden or severe
2 job loss.
3 (11) At least 33% of the real property in a proposed
4 keystone opportunity zone or proposed keystone opportunity
5 expansion zone in a nonurban area would otherwise remain
6 underdeveloped or nonperforming due to physical
7 characteristics of the real property.
8 (12) The area has substantial real property with
9 adequate infrastructure and energy to support new or expanded
10 development.
11 (b) Additional criteria.--In addition to the required
12 criteria under subsection (a), the department shall consider the
13 following criteria:
14 (1) Evidence of distress, including unemployment,
15 percentage of population below 80% of the State median
16 income, poverty rate, deteriorated property and adverse
17 economic and socioeconomic conditions, in the proposed
18 keystone opportunity zone or proposed keystone opportunity
19 expansion zone.
20 (2) The strength and viability of the proposed goals,
21 objectives and strategies, in the opportunity plan.
22 (3) Whether the opportunity plan is creative and
23 innovative in comparison to other applications.
24 (4) Local public and private commitment to the
25 development of the proposed keystone opportunity zone or
26 proposed keystone opportunity expansion zone and the
27 potential cooperation of surrounding communities.
28 (5) Existing resources available to the proposed
29 keystone opportunity zone or proposed keystone opportunity
30 expansion zone.
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1 (6) How keystone opportunity zone or keystone
2 opportunity expansion zone authorization or economic
3 redevelopment relates to other current economic and community
4 development projects and to regional initiatives or programs.
5 (7) How the local regulatory burden will be eased for
6 businesses operating in the proposed keystone opportunity
7 zone or proposed keystone opportunity expansion zone.
8 (8) Proposals to implement educational opportunities and
9 improvements.
10 (9) Crime statistics and proposals to implement local
11 crime reduction measures.
12 (10) Proposals to establish and link job creation and
13 job training.
14 (c) Tax exemption ordinances.--An area shall not be
15 authorized as a keystone opportunity zone or a keystone
16 opportunity expansion zone unless, as a part of the application,
17 each political subdivision in which the proposed subzone or
18 proposed expansion subzone is to be located adopts and provides
19 a copy of an ordinance, resolution or other required action from
20 the governing body of each political subdivision that exempts or
21 provides deductions, abatements or credits to qualified persons
22 and qualified businesses from local taxes upon designation of
23 the area as a subzone or expansion subzone. All appropriate
24 ordinances and resolutions must be effective by January 1, 1999,
25 if designation as a subzone is granted. All appropriate
26 ordinances and resolutions must be effective on January 1, 2001,
27 if designation as an expansion subzone is granted. All
28 appropriate ordinances and resolutions must be effective January
29 1, 2004, if designation of enhancements to an existing keystone
30 opportunity zone or to a keystone opportunity expansion zone are
20030H1758B2278 - 73 -
1 granted. Except as provided in section 3521 (relating to
2 decertification), the resolution, ordinance or other required
3 action shall be binding and nonrevocable on the qualified
4 political subdivisions for the duration of the opportunity plan.
5 (d) Urban areas.--The department shall promulgate guidelines
6 that include the definition of "urban area" for the purposes of
7 receiving applications for authorization as a keystone
8 opportunity zone or keystone opportunity expansion zone.
9 § 3517. Zone limitations.
10 The department shall not authorize more than 12 keystone
11 opportunity zones within this Commonwealth. No subzone shall
12 encompass an entire political subdivision. The department shall
13 not authorize more than 12 keystone opportunity expansion zones
14 within this Commonwealth. No expansion subzones shall encompass
15 an entire political subdivision.
16 § 3518. Residency.
17 In order to qualify each year for the tax exemptions,
18 deductions, abatements or credits under Chapters 5 and 7 of the
19 Keystone Act, a person must be domiciled and must reside in a
20 subzone or expansion subzone for a period of 184 consecutive
21 days during each taxable year, which may begin on the date of
22 designation by the department or on the date the person first
23 resides within the subzone or expansion subzone.
24 § 3519. Qualified businesses.
25 (a) Qualifications.--In order to qualify each year for the
26 tax exemptions, deductions, abatements or credits under Chapters
27 5 and 7 of the Keystone Act, a business must own or lease real
28 property in a subzone, improvement subzone or expansion subzone
29 from which the business actively conducts a trade, profession or
30 business. The qualified business must receive certification from
20030H1758B2278 - 74 -
1 the department that the business is located and is in the active
2 conduct of a trade, profession or business, within the subzone,
3 improvement subzone or expansion subzone. The business must
4 obtain annual renewal of the certification from the department
5 to continue to qualify under this section.
6 (b) Relocation.--
7 (1) Any business that relocates from outside a subzone,
8 improvement subzone or expansion subzone into a subzone,
9 improvement subzone or expansion subzone shall not receive
10 any of the exemptions, deductions, abatements or credits set
11 forth in the Keystone Act unless that business either:
12 (i) increases full-time employment by at least 20%
13 in the first full year of operation within the subzone,
14 improvement subzone or expansion subzone; or
15 (ii) makes a capital investment in the property
16 located within a subzone, improvement subzone or
17 expansion subzone equivalent to 10% of the gross revenues
18 of that business in the immediately preceding calendar or
19 fiscal year.
20 (2) The department, in consultation with the Department
21 of Revenue, may waive or modify the requirements of this
22 subsection, as appropriate.
23 § 3520. Forms.
24 (a) Application forms.--Applications for authorization as a
25 keystone opportunity zone or keystone opportunity expansion zone
26 must be on forms prescribed by the department.
27 (b) Department assistance.--The department shall assist
28 political subdivisions in using the Internet as a tool for
29 encouraging new business development, including assisting
30 political subdivisions in making available via the Internet
20030H1758B2278 - 75 -
1 information, applications and other forms necessary under this
2 chapter or the Keystone Act.
3 § 3521. Decertification.
4 (a) Application.--One or more political subdivisions, or a
5 designee of one or more political subdivisions, may apply to the
6 department to decertify and remove the designation of
7 deteriorated property as part of a subzone, improvement subzone
8 or expansion subzone. The application must contain all of the
9 following:
10 (1) An identification of the property to be removed.
11 (2) A copy of an agreement which was supported by
12 consideration in which each entity which possesses an
13 interest in the real property to be removed, including any
14 holder of an option either to purchase the real estate or to
15 enter into a ground lease of the real estate or any other
16 leasehold interest in the real estate, waives the party's
17 right to any exemptions, deductions, abatements or credits
18 granted by the Keystone Act.
19 (3) A copy of a binding ordinance, resolution or other
20 governing document passed by the political subdivision
21 removing any exemptions, deductions, abatements or credits
22 set forth in Chapter 7 of the Keystone Act, effective upon
23 decertification by the department.
24 (b) Process.--The department may grant the request to
25 decertify and remove the property if completed applications have
26 been submitted by all qualified political subdivisions in which
27 the property is located.
28 CHAPTER 37
29 KEYSTONE INNOVATION ZONES
30 Sec.
20030H1758B2278 - 76 -
1 3701. Scope of chapter.
2 3702. Definitions.
3 3703. Keystone innovation zones.
4 3704. Assistance.
5 3705. Expansion subzone designation.
6 § 3701. Scope of chapter.
7 This chapter deals with keystone innovation zones.
8 § 3702. Definitions.
9 The following words and phrases when used in this chapter
10 shall have then meanings given to them in this section unless
11 the context clearly indicates otherwise:
12 "Department." The Department of Community and Economic
13 Development of the Commonwealth.
14 "Eligible property." Real property which is located within a
15 five-mile radius of an institution of higher education in a
16 rural setting and which is located within a one-mile radius of
17 an institution of higher education in an urban setting.
18 "Institution of higher education." A public or private
19 institution within this Commonwealth authorized by the
20 Department of Education to grant an associate degree or higher
21 academic degree.
22 "Keystone innovation zone." A clearly defined geographic
23 area comprised of eligible property designated by the Department
24 of Community and Economic Development.
25 "Qualified employer." An entity that meets all of the
26 following:
27 (1) Is located within a keystone innovation zone.
28 (2) Employs three or more individuals within the
29 keystone innovation zone.
30 (3) Has been in operation seven years or less.
20030H1758B2278 - 77 -
1 "Secretary." The Secretary of Community and Economic
2 Development of the Commonwealth.
3 § 3703. Keystone innovation zones.
4 (a) Establishment.--There is hereby established within the
5 department a program to be known as the keystone innovation
6 zones program. The program shall provide economic assistance in
7 areas surrounding institutions of higher education.
8 (b) Application.--On or before January 1, 2005, an
9 institution of higher education may submit to the department an
10 application to establish a keystone innovation zone. The
11 application shall be on a form provided by the department and
12 shall include all of the following:
13 (1) A list of which eligible properties are to be
14 included in the keystone innovation zone.
15 (2) The name and address of the keystone innovation
16 zone.
17 (3) The name and address of the coordinator or executive
18 director of the keystone innovation zone.
19 (4) Any other information required by the department.
20 (c) Review and designation.--The department shall review the
21 application. Upon being satisfied that the application is
22 complete and accurate, the department may approve the
23 application. If the department approves the application, the
24 secretary shall designate the property as a keystone innovation
25 zone.
26 § 3704. Assistance.
27 (a) Existing programs.--A qualified employer shall be given
28 priority consideration in applying for assistance under any of
29 the programs established by:
30 (1) This part and Part IV (relating to economic
20030H1758B2278 - 78 -
1 development financing).
2 (2) The act of May 17, 1956 (1955 P.L.1609, No.537),
3 known as the Pennsylvania Industrial Development Authority
4 Act.
5 (3) The act of August 23, 1967 (P.L.251, No.102), known
6 as the Economic Development Financing Law.
7 (4) The act of June 22, 2001 (P.L.569, No.38), known as
8 the Ben Franklin Technology Development Authority Act.
9 (5) The act of June 26, 2001 (P.L.755, No.77), known as
10 the Tobacco Settlement Act.
11 (b) Loans.--A qualified employer with a project approved for
12 financing under this part, Part IV or by the Pennsylvania
13 Industrial Development Authority shall receive the lowest
14 interest rate extended to borrowers.
15 (c) Grants.--The department may provide a one-time $250,000
16 grant to a keystone innovation zone to establish and implement
17 the zone. The grant shall be drawn down as needed over a period
18 not to exceed the first five years of authorization as a
19 keystone innovation zone. Grant recipients shall comply with the
20 provisions of the grant.
21 § 3705. Expansion subzone designation.
22 (a) Establishment.--Notwithstanding sections 301.1, 303 and
23 304 of the act of October 6, 1998 (P.L 705, No.92), known as the
24 Keystone Opportunity Zone and Keystone Opportunity Expansion
25 Zone Act, and within one year of being designated a keystone
26 innovation zone under this chapter, a keystone innovation zone
27 may apply to the department to be designated as an expansion
28 subzone under the Keystone Opportunity Zone and Keystone
29 Opportunity Expansion Zone Act. The application shall be on a
30 form provided by the department. In addition to the completed
20030H1758B2278 - 79 -
1 application, the keystone innovation zone shall submit a copy of
2 an ordinance, resolution or other required action from the
3 governing body of each of the political subdivisions located
4 within the keystone innovation zone which exempts or provides
5 the deductions, abatements or credits required by Chapter 7 of
6 the Keystone Opportunity Zone and Keystone Opportunity Expansion
7 Zone Act to qualified persons and qualified businesses within
8 the keystone innovation zone as those terms are defined within
9 that act. The department may approve the application and
10 designate the property located within the keystone innovation
11 zone as an expansion subzone for the period beginning on the
12 date of designation and ending on December 31, 2013. Qualified
13 persons and qualified businesses within the expansion subzone
14 shall be entitled to the State tax exemptions, deductions,
15 abatements or credits set forth in Chapter 5 of the Keystone
16 Opportunity Zone and Keystone Opportunity Expansion Zone Act and
17 the local tax exemptions, deductions, abatements or credits set
18 forth in Chapter 7 of the Keystone Opportunity Zone and Keystone
19 Opportunity Expansion Zone Act for the period for which the
20 expansion subzone has been designated.
21 (b) Construction.--A keystone innovation zone designated an
22 expansion subzone under this section shall be subject to the
23 requirements of the Keystone Opportunity Zone and Keystone
24 Opportunity Expansion Zone Act.
25 PART IV
26 ECONOMIC DEVELOPMENT FINANCING
27 Chapter
28 41. Pennsylvania Industrial Development Authority (Reserved)
29 43. Pennsylvania Economic Development Financing Authority
30 45. Local Economic Development Financing Authority
20030H1758B2278 - 80 -
1 (Reserved)
2 47. Pennsylvania Infrastructure Investment Authority
3 (Reserved)
4 CHAPTER 41
5 PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY
6 (RESERVED)
7 CHAPTER 43
8 PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY
9 Subchapter
10 A. General Provisions
11 B. Structure and Powers
12 C. Bonds
13 D. Programs
14 E. Miscellaneous
15 SUBCHAPTER A
16 GENERAL PROVISIONS
17 Sec.
18 4301. Scope of chapter.
19 4302. Definitions.
20 § 4301. Scope of chapter.
21 This chapter relates to the Pennsylvania Economic Development
22 Financing Authority.
23 § 4302. Definitions.
24 The following words and phrases when used in this chapter
25 shall have the meaning given to them in this section unless the
26 context clearly indicates otherwise:
27 "Acquisition." The act of acquiring or equipping a project.
28 The term includes installation of equipment.
29 "Agricultural production." The raising, preparing or
30 marketing of crops, livestock or other related farm products.
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1 "Applicant." A person that applies for financial assistance
2 in accordance with this chapter.
3 "Authority." The Pennsylvania Economic Development Financing
4 Authority created in section 4303 (relating to authority).
5 "Board." The board of Pennsylvania Economic Development
6 Financing Authority created in accordance with section 4304
7 (relating to board).
8 "Business site infrastructure." Tangible personal property
9 which is purchased and used to construct utility services and to
10 provide access to a location within the Commonwealth to be used
11 by a business. The term includes electric lines, water
12 pipelines, wastewater facilities and pipelines,
13 telecommunications lines, natural gas pipelines and roads. The
14 term does not include working capital, buildings or land except
15 those acquired to provide utilities or access to the location.
16 "Committee." The Project Review Committee established in
17 section 4303 (relating to authority).
18 "Construction." The act of erecting, reconstructing,
19 expanding, extending, improving, rehabilitating, remodeling,
20 renovating or repairing a building or structure employed in or
21 related to a project.
22 "Cost of the project." An expense associated with a project.
23 The term includes all of the following:
24 (1) Costs and expenses of acquisition of interests in
25 real estate, buildings, structures, equipment, furnishings
26 and other tangible or intangible property comprising the
27 project.
28 (2) Costs and expenses of construction of buildings and
29 structures.
30 (3) Costs and expenses of demolishing, removing or
20030H1758B2278 - 82 -
1 relocating any buildings or structures on lands acquired or
2 to be acquired, including the cost or expense of acquiring
3 any lands onto which buildings or structures may be moved or
4 relocated.
5 (4) Financing charges and other costs and expenses of
6 financing and issuing bonds.
7 (5) Interest expenses prior to and during construction
8 and for a period of 12 months after construction is
9 completed, including any reserves for interest and such other
10 expenses as may be necessary or incidental to the
11 development, implementation or use of the project and
12 placement of the same in operation.
13 (6) Costs and expenses of administrative expenses and
14 professional services, including the costs of engineering,
15 financial services, accounting and legal services.
16 (7) Costs and expenses associated with the preparation
17 of plans, specifications, studies, surveys necessary or
18 incidental to determining the feasibility or practicability
19 of constructing the project.
20 (8) Operating capital or other capital needs related to
21 the project subject to limitation by the authority.
22 "Department." The Department of Community and Economic
23 Development of the Commonwealth.
24 "Economic Enhancement Fund." The Economic Enhancement Fund
25 established in 72 Pa.C.S. § 7203 (relating to establishment).
26 "Federal agency." The President of the United States of
27 America; the Congress and any department, agency or
28 instrumentality of the government of the United States of
29 America.
30 "Infrastructure." Tangible personal property which is
20030H1758B2278 - 83 -
1 purchased and used in creation or provision of goods or
2 services. The term does not include working capital, buildings,
3 structures or land.
4 "Interagency project." A project which meets the definition
5 of project under the provisions of the act of March 1, 1988
6 (P.L.82, No.16), known as the Pennsylvania Infrastructure
7 Investment Authority Act.
8 "Local economic development agency." An entity certified as
9 an industrial development agency under the act of May 17, 1956
10 (1955 P.L.1609, No.537), known as the Pennsylvania Industrial
11 Development Authority Act.
12 "Local economic development financing authority." An entity
13 created under the act of August 23, 1967 (P.L.251, No.102),
14 known as the Economic Development Financing Law.
15 "Manufacturer." An entity which is engaged in the giving of
16 new shapes, new qualities or new combinations to matter by the
17 application of skill and labor.
18 "Medical facility." A private entity licensed as a medical
19 facility under the act of June 13, 1967 (P.L.31, No.21), known
20 as the Public Welfare Code, or under the act of July 19, 1979
21 (P.L.130, No.48), known as the Health Care Facilities Act.
22 "Medical infrastructure." Tangible personal property which
23 is purchased and used by a medical facility in providing patient
24 care. The term does not include working capital, buildings,
25 structures or land.
26 "Municipal authority." A public authority created under 53
27 Pa.C.S. Ch. 56 (relating to municipal authorities) or under the
28 former act of May 2, 1945 (P.L.382, No.164), known as the
29 Municipality Authorities Act of 1945.
30 "Project." An activity which increases economic activity
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1 within this Commonwealth. The term includes the acquisition of
2 real or personal property, whether tangible or intangible.
3 "Project user." A person that owns, leases or uses all or
4 any part of a project.
5 "Water and wastewater infrastructure." Real property or
6 tangible personal property which is part of a publicly owned
7 facility or system:
8 (1) for the collection, treatment or disposal of sewage
9 and wastewater, including industrial waste; or
10 (2) for the supply, treatment, storage or distribution
11 of drinking water.
12 SUBCHAPTER B
13 STRUCTURE AND POWERS
14 Sec.
15 4303. Authority.
16 4304. Board.
17 4305. Powers and duties.
18 § 4303. Authority.
19 (a) Establishment.--There is hereby established a public
20 authority to be known as the Pennsylvania Economic Development
21 Financing Authority. The authority shall be an instrumentality
22 of the Commonwealth and a body corporate and politic which shall
23 assist persons in funding industrial and commercial development
24 within this Commonwealth.
25 (b) Governance.--The powers and duties of the authority
26 shall be exercised by a board.
27 (c) Committee.--There is hereby established a committee to
28 be known as the Project Review Committee. The committee shall
29 review and recommend certain projects to the board. The
30 committee shall be composed of the following five members:
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1 (1) The Governor or the Secretary of the Budget.
2 (2) The Majority Leader of the Senate, or a designee.
3 (3) The Minority Leader of the Senate, or a designee.
4 (4) The Majority Leader of the House of Representatives,
5 or a designee.
6 (5) The Minority Leader of the House of Representatives,
7 or a designee.
8 The Governor or the Secretary of the Budget shall serve as
9 chairperson. The committee shall meet at the call of the
10 chairperson. Four members shall constitute a quorum, and the
11 consent of four members of the committee shall be required to
12 award a grant or recommend a loan for a project.
13 (d) Revenues.--Expenses of the authority shall be paid from
14 assets or income of the authority. Except as provided in this
15 chapter, the Commonwealth shall not be responsible for funding
16 the annual budget of the authority.
17 (e) Fiscal year.--The fiscal year of the authority shall be
18 the same as the fiscal year of the Commonwealth.
19 (f) Audit.--The authority shall conduct an independent audit
20 of its accounts and records annually.
21 (g) General Assembly review.--
22 (1) The Appropriations Committee of the Senate and the
23 Appropriations Committee of the House of Representatives
24 shall have the right at any time to examine the books,
25 accounts and records of the authority.
26 (2) The authority shall file an annual report with the
27 Appropriations Committee of the Senate and the Appropriations
28 Committee of the House of Representatives. The report shall
29 include all of the following:
30 (i) A copy of the authority's budget.
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1 (ii) The total amount of debt service to become due
2 on authority bonds for the ensuing fiscal year, including
3 payments of interest and principal, maturity value or
4 sinking fund payments.
5 (iii) The amount, if any, due to any provider of any
6 credit or liquidity facility representing payments made
7 by the provider as provided in the applicable resolution
8 or trust indenture as a result of any previous failure of
9 the authority to make any payment provided for in the
10 applicable resolution or trust indenture, including any
11 related reasonable interest, fees or charges and interest
12 rate exchange agreements, interest rate cap and floor
13 agreements and other similar agreements which the
14 authority enters into to manage the interest costs of the
15 authority.
16 (iv) The amount, if any, required to restore a debt
17 service reserve fund and the resolution of the authority
18 establishing the fund.
19 (v) The amount, if any, required to be rebated to
20 the United States for continued Federal tax exemption for
21 bonds of the authority.
22 (h) Publication.--The authority shall annually publish a
23 concise financial statement in the Pennsylvania Bulletin.
24 (i) Funds of authority.--
25 (1) The authority may create funds and accounts
26 necessary or desirable for its corporate purposes and shall
27 pay into each fund or account any money of the authority
28 available. No other provision of this chapter shall be
29 construed to prohibit the authority from creating within any
30 fund one or more accounts which may be used or pledged by the
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1 authority for a special purpose.
2 (2) All funds of the authority received from any source
3 shall be delivered to or upon the order of the treasurer of
4 the authority or to such other agent of the authority as the
5 board may designate. Funds received by the authority shall be
6 promptly deposited in a bank or banks in this Commonwealth
7 chosen by the board. The money in the accounts of the
8 authority may be paid by the treasurer of the authority or
9 other designated agent of the authority on warrant of the
10 treasurer of the authority. All deposits of money may, if
11 required by the authority, be secured by obligations of the
12 United States or of the Commonwealth of a market value equal
13 at all times to the amount of the deposit, and all banks and
14 trust companies are authorized to give security for such
15 deposits.
16 (3) Subject to the provisions of any agreements with
17 obligees of the authority, all funds of the authority,
18 including the proceeds from the sale of bonds, which are not
19 required for immediate use may be invested in obligations of
20 the Federal Government or of the Commonwealth or other
21 obligations which are legal investments for Commonwealth
22 funds.
23 (j) Termination.--The authority may, with the approval of
24 the Governor, terminate one year after all of its liabilities
25 have been fully paid and discharged. Upon the termination, all
26 of its rights and properties, including funds remaining in the
27 debt service reserve fund, shall be paid to the Commonwealth.
28 (k) Applicability.--The following acts shall apply to the
29 board:
30 (1) The act of June 21, 1957 (P.L.390, No.212), referred
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1 to as the Right-to-Know Law.
2 (2) The act of July 19, 1957 (P.L.1017, No.451), known
3 as the State Adverse Interest Act.
4 (3) The provisions of 65 Pa.C.S. Chs. 7 (relating to
5 open meetings) and 11 (relating to ethics standards and
6 financial disclosure).
7 § 4304. Board.
8 (a) Composition.--The board of the authority shall be
9 composed of the following 15 members:
10 (1) The Secretary of Community and Economic Development.
11 (2) The Secretary of the Budget.
12 (3) The Secretary of Labor and Industry.
13 (4) The Secretary of Agriculture.
14 (5) The Secretary of Banking.
15 (6) One member appointed by the Majority Leader of the
16 Senate, or a designee; one member appointed by the Minority
17 Leader of the Senate, or a designee; one member appointed by
18 the Majority Leader of the House of Representatives, or a
19 designee; and one member appointed by the Minority Leader of
20 the House of Representatives, or a designee. Legislative
21 appointments shall serve at the pleasure of the appointing
22 authority.
23 (7) Six members of the public with experience in finance
24 or management appointed, with the advice and consent of the
25 Senate, by the Governor.
26 (b) Term.--The members of the board appointed by the
27 Governor shall serve for a term of three years.
28 (c) Organization.--The Secretary of Community and Economic
29 Development shall serve as chairperson. The members of the board
30 shall elect from among themselves a vice chairperson, secretary,
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1 treasurer and any other officers as they may determine.
2 (d) Meetings.--The board shall meet at the call of the
3 chairperson but shall meet at least once each month.
4 (e) Quorum.--Eleven members of the board shall constitute a
5 quorum for the transaction of any authority business. The
6 consent of at least ten members of the board shall be necessary
7 to transact business on behalf of the authority.
8 (f) Expenses.--A member of the board shall not receive
9 compensation or remuneration, but shall be entitled to
10 reimbursement for all reasonable and necessary actual expenses.
11 (g) Public officials and party officers.--The members of the
12 board appointed by the Governor shall not seek or hold a
13 position as a public official within this Commonwealth or as a
14 party officer while being a member of the board.
15 (h) Liability.--Members of the board and the committee shall
16 not be liable personally on any obligations of the authority,
17 including, without limitation, bonds of the authority and shall
18 be immune from suit.
19 § 4305. Powers and duties.
20 (a) Powers.--The authority, through action of the board,
21 shall have all of the following powers:
22 (1) The power to adopt bylaws and guidelines as it deems
23 necessary.
24 (2) The power to contract and to execute instruments,
25 including financing agreements, letters of credit,
26 guarantees, sureties, mortgages, loans, standby loan
27 commitments and contracts of insurance, which are necessary
28 or convenient for the carrying on of its business.
29 (3) The power to sue and be sued, implead and be
30 impleaded, complain and defend in court.
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1 (4) The power to borrow money, obtain lines and letters
2 of credit, incur debt and, in anticipation of the receipt of
3 income of the authority, make, issue and secure taxable and
4 tax-exempt bonds or notes, including limited obligation
5 revenue bonds.
6 (5) The power to acquire, accept, purchase, receive,
7 collect, hold, convey and invest funds, fees and property,
8 whether tangible or intangible, from all sources, directly or
9 by assignment, pledge or otherwise.
10 (6) The power to sell, transfer, convey and dispose of
11 any property, tangible or intangible.
12 (7) The power to adopt, use and alter at will a
13 corporate seal.
14 (8) The power to employ an executive director and such
15 other persons as are necessary or convenient for the carrying
16 on of its business.
17 (9) The power to retain counsel and auditors to render
18 professional services as the authority deems appropriate.
19 (10) The power to pledge the credit of the authority and
20 to provide security and liquidity as may be required by
21 creditors.
22 (11) The power to cooperate with any Federal agency or
23 Commonwealth agency.
24 (12) Any other power necessary or convenient for the
25 promotion or general welfare of the authority.
26 (b) Duties.--The authority shall provide financial
27 assistance to applicants for projects. The financial assistance
28 shall be in the form of loans or single-year or multiyear grants
29 and may include proceeds from the sale of bonds. Prior to
30 providing funds to an applicant, the authority shall enter into
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1 a contract with the applicant. The contract shall include all of
2 the following:
3 (1) A provision requiring the applicant to repay any
4 grant made under this chapter from any proceeds resulting
5 from a sale or partial sale of the project by the applicant.
6 Grants shall be repaid in accordance with the following:
7 (i) If the project is sold less than two years after
8 receipt of the grant, the applicant shall pay to the
9 authority 90% of the grant received.
10 (ii) If the project is sold more than two years but
11 less than four years after receipt of the grant, the
12 applicant shall pay to the authority 80% of the grant
13 received.
14 (iii) If the project is sold more than four years
15 but less than six years after receipt of the grant, the
16 applicant shall pay to the authority 70% of the grant
17 received.
18 (iv) If the project is sold more than six years but
19 less than eight years after receipt of the grant, the
20 applicant shall pay to the authority 60% of the grant
21 received.
22 (v) If the project is sold more than eight years but
23 less than ten years after receipt of the grant, the
24 applicant shall pay to the authority 50% of the grant
25 received.
26 (2) Any other terms or conditions on the financial
27 assistance authorized by this chapter as the board determines
28 to be in the best interests of the Commonwealth.
29 (c) Limitations.--
30 (1) In accordance with section 8 of Article VIII of the
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1 Constitution of Pennsylvania, the board and the authority
2 shall have no power to pledge the credit or taxing powers of
3 the Commonwealth or of a political subdivision or other
4 instrumentality of the Commonwealth, nor, except as provided
5 in this chapter, shall any of the bonds of the authority be
6 deemed a debt or liability of the Commonwealth or a political
7 subdivision or instrumentality of the Commonwealth.
8 (2) Except as provided in this chapter, the authority
9 shall be solely liable for the payment of the principal,
10 interest or premium on any bonds issued by the authority.
11 Except as provided in this chapter, the Commonwealth or a
12 political subdivision or instrumentality of the Commonwealth
13 shall have no legal or moral obligation for the payment of
14 any expenses or obligations of the authority, including bond
15 principal and interest, the funding or refunding of any
16 reserves and any administrative or operating expenses
17 whatsoever. Bonds issued by the authority shall contain a
18 prominent statement of the limitations set forth in this
19 subsection and shall further recite that obligees of the
20 authority shall have no recourse, either legal or moral, to
21 the Commonwealth or a political subdivision or
22 instrumentality of the Commonwealth for payment of the bonds
23 of the authority.
24 SUBCHAPTER C
25 BONDS
26 Sec.
27 4306. Bonds issuances.
28 4307. Commonwealth taxation.
29 4308. Federal taxation.
30 4309. Validity of bonds; limitation on actions.
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1 4310. Provisions of bonds; trust indentures.
2 4311. Remedies of obligee of authority.
3 4312. Validity of pledge.
4 4313. Commonwealth pledges.
5 4314. Resolution and law are contracts with holders of bonds.
6 4315. Bonds to be legal investments.
7 4316. Right to enforcement of pledge of revenues.
8 4317. Debt service reserve fund.
9 4318. Debt service funds.
10 § 4306. Bonds issuances.
11 (a) Authorization.--
12 (1) Bonds of the authority, whether taxable or tax
13 exempt, shall be authorized by a resolution of the board and
14 shall be of a series, bear such date or dates and bear or
15 accrue interest at the rate or rates determined by the board
16 to be necessary to issue and sell the authorized bonds.
17 (2) The bonds shall:
18 (i) be in the denominations;
19 (ii) be in the form, either coupon or fully
20 registered without coupons or in certificated or book-
21 entry-only form;
22 (iii) carry such registration, exchangeability and
23 interchangeability privileges;
24 (iv) be payable in the medium of payment and at such
25 place or places;
26 (v) be subject to the terms of redemption; and
27 (vi) be entitled to the priorities of payment in the
28 revenues or receipts of the authority as the board
29 provides by resolution.
30 (3) Bonds shall be signed by or shall bear the facsimile
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1 signatures of the officer designated by the board.
2 (4) Interest coupons shall be attached to coupon bonds
3 and shall bear the facsimile signature of the treasurer of
4 the authority.
5 (5) Bonds shall be authenticated by an authenticating
6 agent, fiscal agent or trustee.
7 (6) Bonds may be issued and delivered notwithstanding
8 that the officer signing the bonds or the treasurer whose
9 facsimile signature is on a coupon shall have ceased to be
10 the officer at the time when the bond is actually delivered.
11 (b) Maturity date.--
12 (1) Except as provided in paragraph (2), bonds issued to
13 finance the costs of a project shall mature at a time or
14 times not exceeding the weighted average useful life of the
15 projects being financed and in no event exceeding 30 years
16 from their respective dates of original issue.
17 (2) Bonds issued in anticipation of income of the
18 authority shall mature within the fiscal year of the date of
19 issuance thereof, except for bonds issued in anticipation of
20 a grant or appropriation from the Commonwealth, a
21 Commonwealth agency or a Federal agency, which bonds shall
22 mature no later than the time of anticipated receipt of the
23 grant or appropriation.
24 (c) Sale.--Bonds may be sold at public sale or invited sale
25 for the price or prices and at the rate or rates of interest as
26 the authority determines. Bonds may be sold at private sale by
27 negotiation at the price or prices and at the rate or rates of
28 interest as the authority determines, but only if the authority
29 makes a written public explanation of the circumstances and
30 justification for the private sale by negotiation. Pending the
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1 preparation of the definitive bonds, interim receipts may be
2 issued to the purchaser or purchasers of the bonds and shall
3 contain the terms and conditions established by the authority.
4 The authority shall ensure that minority-owned or minority-
5 controlled firms shall have a opportunity to participate in a
6 significant way in any bond sale activities.
7 (d) Negotiable instruments.--Bonds of the authority shall
8 have the qualities of negotiable instruments under 13 Pa.C.S.
9 (relating to commercial code).
10 (e) Use of proceeds.--The proceeds of an issue of bonds may
11 be used for any of the following:
12 (1) To pay the costs of issuance of the bonds.
13 (2) To fund reserves for the bond.
14 (3) To capitalize interest on the bonds for a period not
15 to exceed 12 months.
16 (4) To pay costs of administration of the authority.
17 (5) To make grants in accordance with sections 4321
18 (relating to Water and Wastewater Infrastructure
19 Capitalization Program) and 4324 (relating to Economic
20 Enhancement Financing Program).
21 (6) To make loans in accordance with sections 4319
22 (relating to the Infrastructure Development Program), 4320
23 (relating to Core Industries Infrastructure Capitalization
24 Program), 4321, 4322 (relating to Business in Our Sites
25 Program), 4323 (relating to First Industries Program), 4324
26 and 4325 (relating to Secondary Growth Stage Financing
27 Program).
28 (7) To purchase loans, mortgages, security interests or
29 loan participations agreements which the authority determines
30 is in its best interest.
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1 (f) Refunding.--Subject to provisions of this chapter and
2 bonds, notes or other obligations issued in accordance with this
3 chapter, the authority may refund any outstanding debt of the
4 authority, whether the debt represents principal or interest, in
5 whole or in part, at any time. For the purposes of this
6 subsection, the term "refund" and its variations shall mean the
7 issuance and sale of obligations the proceeds of which are used
8 or are to be used for the payment or redemption of outstanding
9 obligations upon or prior to maturity. The term of any bonds
10 issued for refunding purposes shall not extend to a maturity
11 date which could not have been included in the original issue of
12 bonds being refunded.
13 § 4307. Commonwealth taxation.
14 The effectuation of Subchapter D (relating to programs) by
15 the authority shall and will be in all respects for the benefit
16 of the people of this Commonwealth, for the increase of their
17 commerce and prosperity and for the improvement of their health,
18 safety, welfare and living conditions. Since the authority will
19 be performing essential governmental functions in effectuating
20 such purposes, the authority shall not be required to pay any
21 taxes or assessments upon any property acquired or used or
22 permitted to be used by the authority for its purposes, and the
23 bonds issued by the authority, their transfer and the income
24 therefrom, including any profits made on their sale, shall at
25 all times be free from State and local taxation within this
26 Commonwealth. This exemption shall not extend to gift, estate,
27 succession or inheritance taxes or any other taxes not levied
28 directly on the bonds, their transfer, the income therefrom or
29 the realization of profits on their sale.
30 § 4308. Federal taxation.
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1 (a) Allocation.--If the bonds issued by the authority for a
2 project are federally tax-exempt bonds for which Federal law
3 requires an allocation, the department shall, upon receipt of a
4 written request from the authority, issue an allocation charging
5 the project's pro rata share of the issue to the county in which
6 the project will be located.
7 (b) Approval.--If gubernatorial approval is required by a
8 Federal agency in order for a bond issue of the authority to
9 qualify for tax-exempt status, the Governor shall, upon receipt
10 of a written request from the authority, approve the bond issue.
11 The request shall state that the authority has conducted a
12 hearing in accordance with 65 Pa.C.S. Ch. 7 (relating to open
13 meetings) and shall contain a description of the project to be
14 financed, a summary of the method of financing and a summary of
15 the comments made and questions posed at the hearing.
16 § 4309. Validity of bonds; limitation on actions.
17 (a) Presumption.--A bond reciting in substance that it has
18 been issued by the authority to accomplish the public purposes
19 of this chapter shall be conclusively deemed in any suit, action
20 or proceeding involving the validity or enforceability of the
21 bonds or their security to have been issued for the public
22 purposes of this chapter.
23 (b) Filing.--
24 (1) The authority shall file a copy of a resolution
25 authorizing the issuance of bonds in its office for public
26 inspection and shall publish in three newspapers of general
27 circulation in this Commonwealth a notice stating:
28 (i) The fact and date of the resolution.
29 (ii) The places where the resolution has been filed
30 for public inspection.
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1 (iii) The date of publication of the notice.
2 (iv) Any action or proceeding of any kind or nature
3 in any court questioning the validity or proper
4 authorization of bonds provided for by the resolution or
5 the validity of any covenants, agreements or contract
6 provided for by the resolution shall be commenced within
7 ten days after the publication of the notice.
8 (2) If no action or proceeding questioning the validity
9 or proper authorization of bonds provided for by the
10 resolution referred to in the notice required under paragraph
11 (1) or questioning the validity of any covenant, agreement or
12 contract provided by the resolution is commenced within ten
13 days after the publication of the notice required under
14 paragraph (1):
15 (i) All persons shall be forever barred and
16 foreclosed from instituting or commencing any action or
17 proceeding in any court or pleading any defense to any
18 action or proceedings questioning the validity or proper
19 authorization of the bonds or the validity of the
20 covenants, agreements or contracts; and
21 (ii) the bonds, covenants, agreements and contracts
22 shall be conclusively deemed to be valid and binding
23 obligations in accordance with their terms and tenor.
24 (c) Estoppel.--After issuance, bonds shall be conclusively
25 presumed to be fully authorized and issued by all the laws of
26 this Commonwealth, and any person shall be estopped from
27 questioning their sale, execution or delivery by the authority.
28 § 4310. Provisions of bonds; trust indentures.
29 (a) Powers.--In connection with the issuance of bonds and in
30 order to secure the payment of its bonds, the authority, in
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1 addition to its other powers, shall have the power to do all of
2 the following:
3 (1) Pledge or grant a security interest in all or any
4 part of its gross or net revenues to which its right then
5 exists or which may later come into existence.
6 (2) Grant a security interest in all or any part of its
7 personal property then owned or later acquired.
8 (3) Covenant against:
9 (i) pledging or granting a security interest in all
10 or any part of its revenues or all or any part of its
11 personal property to which its right or title exists or
12 which may later come into existence; or
13 (ii) permitting or suffering any lien on its
14 revenues or property.
15 (4) Covenant with respect to limitations on its right to
16 sell, lease or otherwise dispose of any of its real property.
17 (5) Covenant as to which other or additional debts or
18 obligations may be incurred by it.
19 (6) Covenant as to the bonds to be issued and as to the
20 issuance of the bonds, in escrow or otherwise, and as to the
21 use and disposition of the proceeds thereof.
22 (7) Provide for the replacement of lost, destroyed or
23 mutilated bonds.
24 (8) Covenant against extending the time for the payment
25 of bonds or interest thereon.
26 (9) Redeem bonds.
27 (10) Covenant for their redemption and provide the terms
28 and conditions thereof.
29 (11) Covenant as to the amount of revenues to be
30 received in each fiscal year or other period of time by the
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1 authority and to the use and disposition to be made of the
2 revenues.
3 (12) Create or authorize the creation of special funds
4 or reserves for debt service or other purposes and covenant
5 as to the use and disposition of the money held in the
6 special funds.
7 (13) Prescribe the procedure, if any, by which the terms
8 of any contract with bondholders may be amended or abrogated,
9 the amount of bonds the holders of which must consent to and
10 the manner in which the consent may be given.
11 (14) Covenant as to the use of any or all of its real or
12 personal property to warrant its title.
13 (15) Covenant as to the maintenance of its real and
14 personal property, the replacement of its real and personal
15 property, the insurance to be carried on its real and
16 personal property and the use and disposition of insurance
17 proceeds.
18 (16) Covenant as to the rights, liabilities, powers and
19 duties arising upon the breach by it of any covenant,
20 condition or obligation, except that the authority shall not
21 be permitted to covenant that upon a breach any or all of its
22 bonds shall become or may be declared due before their stated
23 maturity.
24 (17) Pay the costs or expenses incident to:
25 (i) the enforcement of the bonds;
26 (ii) the provisions of the resolution authorizing
27 the issuance of the bonds;
28 (iii) the trust indenture securing the bonds; or
29 (iv) any covenant or agreement of the financing
30 authority with the holders of the bonds, notes or other
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1 obligations.
2 (18) Vest in a trustee or the holders of bonds or any
3 proportion of them the right to enforce the payment of the
4 bonds or any covenants securing or relating to the bonds.
5 (19) Vest in a trustee the right, in the event of
6 default in payments of interest or on principal of bonds by
7 the authority, to take possession and use, operate and manage
8 any real or personal property, to collect the revenues and
9 receipts of an authority and to dispose of the money in
10 accordance with the agreement of the authority with the
11 trustee.
12 (20) Provide for the:
13 (i) powers and duties of a trustee and to limit the
14 trustee's liabilities; and
15 (ii) terms and conditions upon which a trustee or
16 the holders of bonds or any proportion of them may
17 enforce any covenant or rights securing or relating to
18 the bonds.
19 (21) Enter into interest rate exchange agreements,
20 interest rate cap and floor agreements and other similar
21 agreements which in the judgment of the authority will assist
22 the authority in managing the interest costs of the
23 authority.
24 (22) Obtain letters of credit, bonds insurance and other
25 facilities for credit enhancement and liquidity.
26 (23) Exercise all or any part or combination of the
27 powers granted in this chapter.
28 (24) Make covenants other than and in addition to the
29 covenants expressly authorized by this chapter.
30 (25) Make any other covenants and do any and all other
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1 acts and things as may be necessary, convenient or desirable
2 in order to secure its bonds or, in the absolute discretion
3 of the authority, as will tend to accomplish the purposes of
4 this chapter by making the bonds more marketable,
5 notwithstanding that the covenants, acts or things may not be
6 specifically enumerated by this chapter.
7 (b) Limitations.--Notwithstanding any provision of this
8 chapter to the contrary, the real property of the authority
9 shall not be mortgaged and shall not be subject to attachment
10 nor levied upon by execution or otherwise. The revenues of the
11 authority and the personal property of the authority shall be
12 pledged or otherwise encumbered only as expressly provided in
13 this chapter and, except to the extent necessary to effectuate
14 the pledge or encumbrance, shall not be subject to attachment
15 nor levied upon by execution or otherwise.
16 § 4311. Remedies of obligee of authority.
17 In addition to all other rights which may be conferred on the
18 obligee subject only to any contractual restrictions binding
19 upon the obligee, an obligee of the authority shall have all of
20 the following rights:
21 (1) To compel, by mandamus, suit, action or proceeding
22 at law or in equity, the authority and the members of its
23 governing board, officers, agents or employees to perform
24 each and every term, provision and covenant contained in any
25 bond or contract of the authority with or for the benefit of
26 the obligee and to require the carrying out of any covenants
27 and agreements of the authority and the fulfillment of all
28 duties imposed upon the authority by this chapter.
29 (2) To obtain, by proceeding in equity, an injunction
30 against any acts or things which may be unlawful or the
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1 violation of any of the rights of the obligee.
2 (3) To require the authority to account as if it were
3 the trustee of an express trust for the obligees of the
4 authority for any pledged revenues received.
5 § 4312. Validity of pledge.
6 Any pledge of or grant of a security interest in revenues or
7 personal property of the authority made by the authority shall
8 be valid and binding from the time when the pledge is made. The
9 revenues or other property pledged and later received by the
10 authority shall immediately be subject to the lien of the pledge
11 or security interest without any physical delivery thereof or
12 further act. The lien of the pledge or security interest shall
13 be valid and binding as against all parties having claims of any
14 kind in tort, contract or otherwise against the authority
15 irrespective of whether the parties have notice. Neither the
16 resolution nor any other instrument of the authority by which a
17 pledge or security interest is created need be recorded or filed
18 to perfect the pledge or security interest.
19 § 4313. Commonwealth pledges.
20 (a) Bondholders.--The Commonwealth does hereby pledge to and
21 agree with each and every obligee of the authority that the
22 Commonwealth will not limit or alter the rights hereby vested in
23 the authority in any manner inconsistent with the obligations of
24 the authority to its obligees until all bonds at any time
25 issued, together with the interest on the bonds, are fully paid
26 and discharged.
27 (b) Lessees.--The Commonwealth does hereby pledge to and
28 agree with any person who, as owner of property that is leased
29 or subleased to or from the authority, that it will not limit or
30 alter the rights and powers vested in the authority or otherwise
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1 created by this chapter in any manner which impairs the
2 obligations of the authority until all the obligations of the
3 authority under the lease or sublease are fully met and
4 discharged.
5 § 4314. Resolution and law are contracts with holders of bonds.
6 Except as otherwise provided in any resolution of the
7 authority authorizing or awarding bonds, the terms of a
8 resolution and any agreement authorized by the resolution and
9 the terms of this chapter as in effect when the bonds were
10 authorized shall constitute a contract between the authority and
11 the obligees, subject to modification by the vote by holders of
12 the percentage of bonds as the resolution authorizing or
13 awarding the bonds provides.
14 § 4315. Bonds to be legal investments.
15 Bonds issued pursuant to this chapter are made securities in
16 which all government agencies, insurance companies, trust
17 companies, banking associations, banking corporations, savings
18 banks, investment companies, executors, the trustees of any
19 retirement, pension or annuity fund or system of the
20 Commonwealth, trustees and other fiduciaries may properly and
21 legally invest funds, including capital, deposits or other funds
22 in their control or belonging to them. The bonds are hereby made
23 securities which may properly and legally be deposited with and
24 received by any government agency for any purpose for which the
25 deposit of bonds or other obligations of the Commonwealth are
26 authorized by law.
27 § 4316. Right to enforcement of pledge of revenues.
28 The obligees of the authority shall have the right to enforce
29 a pledge of or security interest in revenues of the authority
30 securing payment of bonds of the authority against all
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1 government agencies in possession of any such revenues at any
2 time. The revenues may be collected directly from such officials
3 upon notice by the obligees or a trustee for the obligees for
4 application to the payment of the bonds as and when due or for
5 deposits in any sinking, bond or debt service fund established
6 in accordance with this chapter or established by resolution of
7 the authority with the trustee at the times and in the amounts
8 specified in the bonds or the resolution or indenture or trust
9 agreement securing the bonds. Any government agency in
10 possession of any such revenues shall make payment against
11 receipt and shall be discharged from any further liability or
12 responsibility for such revenues. If payment is made to a holder
13 of bonds, it shall be made against surrender of the bonds to the
14 payor for delivery to the authority in the case of payment in
15 full; otherwise, it shall be made against production of the
16 bonds for notation thereon of the amount of the payment. The
17 provisions of this section with respect to the enforceability
18 and collection of revenues which secure bonds shall supersede
19 any contrary or inconsistent statutory provision or rule of law.
20 This section shall be construed and applied to fulfill the
21 legislative purpose of clarifying and facilitating the financing
22 of the authority by assuring to the obligees of the authority
23 the full and immediate benefit of the security for the bonds
24 without delay, diminution or interference based on any statute,
25 decision, ordinance or administrative rule or practice.
26 § 4317. Debt service reserve fund.
27 (a) Authorization.--
28 (1) The authority may establish one or more debt service
29 reserve funds into which it shall deposit:
30 (i) Proceeds from the sale of bonds, to the extent
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1 provided in the resolution or resolutions authorizing the
2 bonds.
3 (ii) Any other money made available to the authority
4 from any source.
5 (2) All money held in any debt service reserve fund,
6 except as provided in this subsection, shall be used when
7 required solely for the:
8 (i) payment of the principal of bonds secured in
9 whole or in part by the fund;
10 (ii) payment of sinking fund payments, if any, with
11 respect to the bonds;
12 (iii) purchase or redemption of bonds;
13 (iv) payment of interest on bonds; or
14 (v) payment of any redemption premium required to be
15 paid when bonds and notes are redeemed prior to maturity.
16 (3) Any debt service reserve fund established pursuant
17 to this section shall be a trust fund held for the benefit
18 and security of the obligees of the authority whose bonds are
19 secured by the fund.
20 (4) Money in a debt service reserve fund shall not be
21 withdrawn from the fund at any time in an amount that would
22 reduce the amount of the fund to less than the minimum
23 reserve fund requirement established for the fund in the
24 resolution of the authority creating the fund, except for
25 withdrawals for the purpose of making payments when due of
26 principal, interest, redemption premiums and sinking fund
27 payments, if any, with respect to the bonds for the payment
28 of which other money of the authority are not available.
29 (5) Any income or interest earned by or increments to
30 any debt service reserve fund due to the investment thereof
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1 may be transferred by the authority to other funds or
2 accounts of the authority to the extent the transfer does not
3 reduce the amount of the debt service reserve fund below the
4 minimum reserve fund requirement established for that fund.
5 (6) Funds transferred to other accounts in accordance
6 with the requirements of paragraph (5) may be used for
7 whatever purposes the authority deems appropriate if the
8 purposes are consistent with this chapter and the contracts
9 of the authority with obligees of the authority.
10 (b) Bond limitation.--The authority shall not at any time
11 issue bonds secured in whole or in part by a debt service
12 reserve fund if issuance of the bonds would cause the amount in
13 the debt reserve fund to fall below the minimum reserve
14 requirement for the fund, unless the authority at the time of
15 issuance of the bonds shall deposit in the fund an amount, from
16 the proceeds of the bonds to be issued or from other sources,
17 which when added to the amount already in the fund will cause
18 the total amount on deposit in the fund to equal or exceed the
19 minimum reserve fund requirement.
20 (c) Definition.--For the purposes of this section, the term
21 "minimum reserve fund requirement" shall mean that amount
22 defined as the minimum reserve fund requirement in the
23 resolution of the authority authorizing the bonds.
24 § 4318. Debt service funds.
25 Any money deposited in any fund created by the authority to
26 be used to pay debt service, including, without limitation, the
27 bond payment account, any sinking fund or debt service reserve
28 fund and all investments and proceeds of investments thereof
29 shall, without further action or filing, be subjected to a
30 perfected security interest for the obligees of the authority
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1 for whom the fund is held until the money or investments shall
2 be properly disbursed in accordance with this chapter and with
3 the terms of the contract of the authority with its obligees.
4 SUBCHAPTER D
5 PROGRAMS
6 Sec.
7 4319. Infrastructure Development Program.
8 4320. Core Industries Infrastructure Capitalization Program.
9 4321. Water and Wastewater Infrastructure Capitalization
10 Program.
11 4322. Business in Our Sites Program.
12 4323. First Industries Program.
13 4324. Economic Enhancement Financing Program.
14 4325. Secondary Growth Stage Financing Program.
15 4326. Community Development Bank Program. (Reserved)
16 § 4319. Infrastructure Development Program.
17 (a) Establishment.--There is hereby established within the
18 authority a program to be known as the Infrastructure
19 Development Program. The program shall provide financial
20 assistance in the form of loans for projects which, when
21 completed, increase economic development within this
22 Commonwealth.
23 (b) Application.--A person may submit an application to the
24 authority requesting financial assistance for a project. The
25 application shall be on the form required by the authority and
26 shall include or demonstrate all of the following:
27 (1) The name and address of the applicant.
28 (2) A statement of the amount of finance assistance
29 sought.
30 (3) A statement of the project, including a detailed
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1 statement of the cost of the project.
2 (4) A firm financial commitment from a responsible
3 source for any cost of the project in excess of the amount
4 requested.
5 (5) A firm commitment from the applicant or project user
6 to use or lease the project upon completion.
7 (6) Any other information required by the authority.
8 (c) Additional requirements for certain projects.--If the
9 applicant is not a political subdivision, local economic
10 development agency or local economic development financing
11 authority, the applicant shall, in addition to the information
12 required by subsection (b), submit a copy of the document
13 verifying approval of the project by the appropriate local
14 economic development agency or local economic development
15 financing authority. If the applicant is requesting financial
16 assistance for a project which is an interagency project, the
17 applicant shall, in addition to the information required by
18 subsection (b), submit a copy of the document issued by the
19 Pennsylvania Infrastructure Investment Authority referring the
20 applicant to the authority for financial assistance. If the
21 applicant is not a municipality or municipal authority and is
22 requesting financial assistance for a project constructing or
23 improving transportation infrastructure, the applicant shall, in
24 addition to the information required by subsection (b), submit a
25 copy of the document verifying approval of the project by the
26 appropriate municipality or municipal authority or a
27 Commonwealth agency and a determination by the applicant that
28 financing the project through the authority will reduce the cost
29 of the project.
30 (d) Local economic development agencies.--If the applicant
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1 is a local economic development agency, in addition to the
2 information required by subsection (b), the applicant shall do
3 all of the following:
4 (1) Be incorporated under the laws of this Commonwealth.
5 (2) Agree to be bound by the rules of the authority
6 relating to projects which receive financial assistance under
7 this chapter.
8 (3) Agree to submit to examination of its books, records
9 and accounts by the authority at times as the authority may
10 require during the term of any loan made to it by the
11 authority.
12 (e) Local economic development financing authorities.--If
13 the applicant is a local economic development financing
14 authority, in addition to the information required by subsection
15 (b), the applicant shall do all of the following:
16 (1) Submit an application verified by the chairperson of
17 the local economic development financing authority and any
18 other information required by the authority, including any
19 application fee.
20 (2) Agree to be bound by the rules of the authority
21 relating to projects which receive financial assistance under
22 this chapter.
23 (3) Agree to submit to examination of its books, records
24 and accounts by the authority at times as the authority may
25 require during the term of any loan made to it by the
26 authority.
27 (f) Review.--Within 45 days of a completed application being
28 submitted, the board shall review the application to determine
29 all of the following:
30 (1) If the financial commitment exists for any cost of
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1 the project in excess of the amount requested.
2 (2) If the financial commitment from the source is firm.
3 (3) If the source of the financial commitment is
4 responsible.
5 (4) If the commitment to use or lease the project upon
6 completion is firm.
7 (5) If, in the case where the project will not be used
8 by the applicant, the project user may reasonably be expected
9 to comply with the terms of the use or lease.
10 (6) If the applicant satisfied the requirements of
11 subsections (c), (d) and (e), if applicable.
12 (7) If the project complies with all other rules and
13 regulations of the authority governing projects.
14 (g) Approval.--Upon being satisfied that all applicable
15 requirements have been met, the board may approve the
16 application. If the board approves the application, the board
17 shall enter into a contract with the applicant and finance the
18 loan.
19 (h) Applicability.--If a project of a local economic
20 development agency or a local economic development financing
21 authority has been approved for financing and the project is to
22 be financed with the proceeds of bonds which are not exempt from
23 Federal income taxation, the provisions of Chapter 27 of the act
24 of June 29, 1996 (P.L.434, No.67), known as the Job Enhancement
25 Act, shall not apply to the financing of the project.
26 (i) Limitations.--
27 (1) Except upon foreclosure or default or violation of a
28 loan made, the authority may not approve an application and
29 finance a project if the authority would be required to
30 operate, service or maintain the project under a lease or
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1 other agreement. Nothing in this paragraph shall prohibit the
2 authority from approving an application or financing a
3 project if, at the end of the term of a loan, the authority
4 transferred the project to the applicant, any project user or
5 a designee of either.
6 (2) The authority may not approve an application and
7 finance a project which is a public facility if the authority
8 determines that, if the project was financed by an entity
9 other than the authority, the project could receive a rating
10 of A or better from either Moodys Investors Service or
11 Standard & Poors Corporation.
12 § 4320. Core Industries Infrastructure Capitalization Program.
13 (a) Establishment.--There is established within the
14 authority a program to be known as the Core Industries
15 Infrastructure Capitalization Program. The program shall provide
16 financial assistance in the form of loans to all of the
17 following:
18 (1) To medical facilities for the acquisition or
19 construction of projects which, when completed, improve or
20 construct medical infrastructure directly related to patient
21 safety.
22 (2) To manufacturers for the acquisition or construction
23 of projects which, when completed, improve or construct
24 infrastructure which creates additional full-time jobs.
25 (b) Application.--A medical facility or a manufacturer may
26 submit an application to the authority requesting financial
27 assistance for a project. The application shall be on the form
28 required by the authority and shall include or demonstrate all
29 of the following:
30 (1) The name and address of the applicant.
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1 (2) A statement of the amount of financial assistance
2 sought.
3 (3) A statement of the project, including a detailed
4 statement of the cost of the project, and how it directly
5 relates to patient safety.
6 (4) A firm financial commitment from a responsible
7 source for any cost of the project in excess of the amount
8 requested.
9 (5) A firm commitment from the applicant to use or lease
10 the project upon completion.
11 (6) Any other information required by the authority.
12 (c) Review.--The authority shall forward the application to
13 the committee when it is complete. The committee shall review
14 the application to determine all of the following:
15 (1) If the project is for the construction or
16 acquisition of medical infrastructure directly related to
17 patient safety or for the construction or acquisition of
18 manufacturing infrastructure which creates additional full-
19 time jobs.
20 (2) If a financial commitment exists for any cost of the
21 project in excess of the amount requested.
22 (3) If the financial commitment from the source is firm.
23 (4) If the source of the financial commitment is
24 responsible.
25 (5) If the applicant is firmly committed to using or
26 leasing the project upon completion.
27 (6) If the applicant complied with all other criteria
28 established by the committee.
29 (d) Approval.--Upon being satisfied that all requirements
30 have been met, the committee may approve the application and
20030H1758B2278 - 114 -
1 notify the board. Upon being notified that a loan has been
2 approved, the board shall enter into a contract with the
3 applicant and finance the loan. As provided in subsection (e),
4 the contract may permit performance-based loan forbearance or
5 forgiveness.
6 (e) Forbearance or forgiveness.--The board, in consultation
7 with the department, may establish guidelines permitting
8 performance-based forbearance or forgiveness of payments by loan
9 recipients under this program. If the board establishes
10 guidelines, the guidelines shall permit the board to forbear or
11 forgive payments by loan recipients under this program when, in
12 the discretion of the board, the board determines that it is in
13 the interest of the Commonwealth to grant forbearance or
14 forgiveness.
15 (f) Applicability.--If a project of a medical facility or a
16 manufacturer has been approved for loan financing and the
17 project is to be financed with the proceeds of bonds which are
18 not exempt from Federal income taxation, the provisions of
19 Chapter 27 of the act of June 29, 1996 (P.L.434, No.67), known
20 as the Job Enhancement Act, shall not apply to the financing of
21 the project.
22 (g) Limitation.--Except upon foreclosure or default or
23 violation of a loan made, the board may not approve an
24 application or finance a project if the authority would be
25 required to operate, service or maintain the project under a
26 lease or other agreement. Nothing in this subsection shall
27 prohibit the authority from approving an application or
28 financing a project if at the end of the term of a loan the
29 authority transferred the project to the medical facility or
30 manufacturer or a designee of the medical facility or
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1 manufacturer.
2 § 4321. Water and Wastewater Infrastructure Capitalization
3 Program.
4 (a) Establishment.--There is established within the
5 authority a program to be known as the Water and Wastewater
6 Infrastructure Capitalization Program. The program shall provide
7 financial assistance in the form of loans or single-year or
8 multiyear grants to municipalities and municipal authorities for
9 projects which, when completed, improve or construct water and
10 wastewater infrastructure related to economic development.
11 (b) Application.--A municipality or a municipal authority
12 may submit an application to the authority requesting financial
13 assistance for a project. The application must be on the form
14 required by the authority and must include or demonstrate all of
15 the following:
16 (1) The name and address of the municipality or
17 municipal authority.
18 (2) A statement of the type and amount of financial
19 assistance sought. If the applicant is requesting financial
20 assistance in the form of a grant, the request may not exceed
21 75% of the cost of the project.
22 (3) A statement of the project, including a detailed
23 statement of the cost of the project.
24 (4) A firm financial commitment from a responsible
25 source for any cost of the project in excess of the amount
26 requested. If the applicant is requesting financial
27 assistance in the form of a grant from the authority, the
28 commitment may not be in the form of a grant from a
29 Commonwealth agency.
30 (5) A firm commitment from the municipality or municipal
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1 authority to use the project upon completion.
2 (6) Any other information required by the authority.
3 (c) Grants.--
4 (1) If an applicant is requesting financial assistance
5 in the form of a grant, the authority shall forward the
6 application to the committee when it is complete. The
7 committee shall review the application to determine all of
8 the following:
9 (i) If the project is for the improvement or
10 construction of water and wastewater infrastructure
11 related to economic development.
12 (ii) If there is a financial commitment for at least
13 25% of the project.
14 (iii) If the financial commitment from the source is
15 firm.
16 (iv) If the source of the financial commitment is
17 responsible.
18 (v) If the municipality or municipal authority is
19 firmly committed to using the project upon completion.
20 (vi) If the municipality or municipal authority
21 complied with all other criteria established by the
22 committee.
23 (2) Upon being satisfied that all requirements have been
24 met, the committee may approve the application and award a
25 grant to the applicant for the project in accordance with all
26 of the following:
27 (i) The grant may not exceed $10,000,000 in the
28 aggregate.
29 (ii) The aggregate amount of grants awarded to all
30 applicants under this subsection shall not exceed
20030H1758B2278 - 117 -
1 $250,000,000.
2 (3) Upon being notified that a grant has been awarded to
3 an applicant, the board shall enter into a contract with the
4 applicant and finance the grant.
5 (d) Authority loans.--
6 (1) If an applicant is requesting financial assistance
7 in the form of a loan, the authority shall forward the
8 application to the board when it is complete. Within 45 days
9 of a completed application being submitted, the board shall
10 review the application to determine all of the following:
11 (i) If the project is for the improvement or
12 construction of water and wastewater infrastructure
13 related to economic development.
14 (ii) If a financial commitment exists for any cost
15 of the project in excess of the amount requested.
16 (iii) If the financial commitment from the source is
17 firm.
18 (iv) If the source of the financial commitment is
19 responsible.
20 (v) If the municipality or municipal authority is
21 firmly committed to using the project upon completion.
22 (vi) If the municipality or municipal authority
23 complied with all other criteria established by the
24 board.
25 (2) Upon being satisfied that all program requirements
26 have been met, the board may approve the application. If the
27 board approves the application, the board shall enter into a
28 contract with the applicant and finance the loan.
29 (e) Pennvest loans.--In order to facilitate additional
30 funding for water and wastewater infrastructure projects related
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1 to economic development, the authority may utilize the remaining
2 amount of voter-approved debt under the act of March 16, 1992
3 (P.L.10, No.5), known as the Small Water Systems Assistance Act,
4 in accordance with the following:
5 (1) If an applicant is requesting financial assistance
6 in the form of a loan, the authority shall forward the
7 application to the board when it is complete. Within 45 days
8 of a completed application being submitted, the board shall
9 review the application to determine all of the following:
10 (i) If the project is for the improvement or
11 construction of water and wastewater infrastructure
12 related to economic development.
13 (ii) If a financial commitment exists for any cost
14 of the project in excess of the amount requested.
15 (iii) If the financial commitment from the source is
16 firm.
17 (iv) If the source of the financial commitment is
18 responsible.
19 (v) If the municipality or municipal authority is
20 firmly committed to using the project upon completion.
21 (vi) If the municipality or municipal authority
22 complied with all other criteria established by the
23 board.
24 (2) Upon being satisfied that all program requirements
25 have been met, the board may approve the application. If the
26 board approves the application, the board shall do all of the
27 following:
28 (i) Notify the applicant of the approval.
29 (ii) Notify the Pennsylvania Infrastructure
30 Investment Authority of the amount approved.
20030H1758B2278 - 119 -
1 (3) Loans approved under paragraph (2) shall not exceed
2 $220,000,000 in the aggregate.
3 (4) Upon being notified that a loan has been approved
4 for an applicant, the Pennsylvania Infrastructure Investment
5 Authority shall enter into a contract with the applicant and
6 finance the loan.
7 (f) Limitation.--Except upon foreclosure or default or
8 violation of a loan made, the board may not approve an
9 application or finance a project if the authority would be
10 required to operate, service or maintain the project under a
11 lease or other agreement. Nothing in this subsection shall
12 prohibit the authority from approving an application or
13 financing a project if, at the end of the term of a loan, the
14 authority transferred the project to the municipal authority.
15 (g) Debt.--If the question is submitted to the electors and
16 approved in accordance with law, the authority is authorized to
17 incur a maximum of $250,000,000 to finance grants and loans
18 awarded under subsection (c) and (d). Annual payments for
19 principal and interest resulting from grants made under this
20 section shall be annually appropriated to the authority from the
21 General Fund.
22 § 4322. Business in Our Sites Program.
23 (a) Establishment.--There is established within the
24 authority a program to be known as the Business in Our Sites
25 Program. The program shall provide financial assistance in the
26 form of loans to persons for projects which, when completed,
27 improve existing business sites, construct new business sites or
28 improve or construct business site infrastructure.
29 (b) Application.--A person may submit an application to the
30 authority requesting financial assistance for a project. The
20030H1758B2278 - 120 -
1 application shall be on the form required by the authority and
2 shall include or demonstrate all of the following:
3 (1) The name and address of the applicant.
4 (2) A statement of the amount of financial assistance
5 sought.
6 (3) A statement of the project, including a detailed
7 statement of the cost of the project.
8 (4) If the applicant is not a local economic development
9 agency, a copy of the document verifying approval of the
10 project by the appropriate local economic development agency.
11 (5) A firm financial commitment from a responsible
12 source for any cost of the project in excess of the amount
13 requested.
14 (6) A firm commitment from the applicant to use or lease
15 the project upon completion.
16 (7) Any other information required by the authority.
17 (c) Review.--The authority shall forward the application to
18 the committee when it is complete. The committee shall review
19 the application to determine all of the following:
20 (1) If the project is for the improvement of existing
21 business sites, the construction of new business sites or the
22 improvement or construction of business site infrastructure.
23 (2) If the project is approved by the appropriate local
24 economic development agency when the applicant is not a local
25 economic development agency.
26 (3) If a financial commitment exists for any cost of the
27 project in excess of the amount requested.
28 (4) If the financial commitment from the source is firm.
29 (5) If the source of the financial commitment is
30 responsible.
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1 (6) If the applicant is firmly committed to using or
2 leasing the project upon completion.
3 (7) If the applicant complied with all other criteria
4 established by the committee.
5 (d) Approval.--Upon being satisfied that all requirements
6 have been met, the committee may approve the application and
7 notify the board. Upon being notified that a loan has been
8 approved, the board shall enter into a contract with the
9 applicant and finance the loan. As provided in subsection (e),
10 the contract may permit performance-based loan forbearance or
11 forgiveness.
12 (e) Forbearance or forgiveness.--The board, in consultation
13 with the department, may establish guidelines permitting
14 performance-based forbearance or forgiveness of payments by loan
15 recipients under this program. If the board establishes
16 guidelines, the guidelines shall permit the board to forbear or
17 forgive payments by loan recipients under this program when, in
18 the discretion of the board, the board determines that it is in
19 the interest of the authority to grant forbearance or
20 forgiveness.
21 (f) Limitation.--Except upon foreclosure or default or
22 violation of a loan made, the board may not approve an
23 application or finance a project if the authority would be
24 required to operate, service or maintain the project under a
25 lease or other agreement. Nothing in this subsection shall
26 prohibit the authority from approving an application or
27 financing a project if, at the end of the term of a loan, the
28 authority transferred the project to the local economic
29 development authority.
30 § 4323. First Industries Program.
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1 (a) Establishment.--There is established within the
2 authority a program to be known as the First Industries Program.
3 The program shall provide financial assistance in the form of
4 loans to persons engaged in agriculture production or to persons
5 involved in tourism-related activities.
6 (b) Application.--A person may submit an application to the
7 authority requesting financial assistance for a project. The
8 application shall be on the form required by the authority and
9 shall include or demonstrate all of the following:
10 (1) The name and address of the person.
11 (2) A statement that the person is engaged in
12 agriculture production or is involved in tourism-related
13 activities.
14 (3) A statement of the amount of financial assistance
15 sought.
16 (4) A statement of the project, including a detailed
17 statement of the cost of the project.
18 (5) Any additional information required by Chapter 23
19 (relating to small business first).
20 (6) Any other information required by the authority.
21 (c) Review.--The authority shall forward the application to
22 the department when it is complete. The department shall review
23 the application in accordance with the requirements of this
24 section and Chapter 23 (relating to Small Business First). If
25 the department is satisfied that all requirements have been met,
26 the department may recommend approval of the application to the
27 board.
28 (d) Approval.--If the board receives a recommendation for
29 approval of an application from the department, the board may
30 approve the application and finance the loan.
20030H1758B2278 - 123 -
1 (e) Loan service.--Any loan financed by the authority under
2 this program shall be administered by the department. The
3 authority and the department shall enter into an agreement in
4 which the department agrees to transfer to the authority in a
5 timely manner any payments the department receives on loans made
6 in accordance with this section.
7 § 4324. Economic Enhancement Financing Program.
8 (a) Establishment.--There is established within the
9 authority a program to be known as the Economic Enhancement
10 Financing Program. The program shall provide financial
11 assistance to persons in the form of loans or single-year or
12 multiyear grants for projects.
13 (b) Application.--A person may submit an application to the
14 authority requesting financial assistance for a project. The
15 application shall be on the form required by the authority and
16 shall include or demonstrate all of the following:
17 (1) The name and address of the applicant.
18 (2) A statement of the type of financial assistance
19 sought.
20 (3) A statement of the project, including a detailed
21 statement of the cost of the project.
22 (4) Any other information required by the authority.
23 (c) Review.--The authority shall forward the application to
24 the committee when it is complete. The committee shall review
25 the application to determine all of the following:
26 (1) If the applicant is a person that owns property in a
27 tax incentive district or if the applicant is an issuing
28 authority of a tax increment district located within a tax
29 incentive district.
30 (2) The project would be located in a tax incentive
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1 district or is located in a tax increment district.
2 (3) The project would do or does any of the following:
3 (i) Creates career-oriented net new jobs or preserve
4 jobs.
5 (ii) Increases and diversifies the manufacturing
6 base of this Commonwealth.
7 (iii) Aids in the expansion of existing private
8 companies, particularly those that sell their products
9 outside this Commonwealth.
10 (iv) Attracts new industries with new products into
11 this Commonwealth.
12 (v) Promotes industrial, commercial and other
13 economic development within this Commonwealth.
14 (vi) Promotes a healthy environment through the
15 abatement, safe storage, transportation, reduction,
16 elimination, remediation and disposal within this
17 Commonwealth of pollutants and wastes.
18 (vii) Otherwise promotes the health, welfare and
19 safety of the residents of this Commonwealth by promoting
20 economic activity and efficiency or alleviating or
21 eliminating unemployment, blight and other unhealthy
22 conditions.
23 (4) If the applicant complied with all other criteria
24 established by the committee.
25 (d) Award.--Upon being satisfied that all requirements have
26 been met, the committee may approve an application and award a
27 grant or loan for a project in accordance with the following:
28 (1) The grant or loan may not exceed $10,000,000 in the
29 aggregate.
30 (2) The aggregate amount of grants or loans awarded to
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1 all applicants under this section shall not exceed financing
2 supported by the Economic Enhancement Fund.
3 (e) Financing.--Upon being notified that a grant or loan has
4 been awarded to an applicant, the board shall finance the grant
5 or loan.
6 (f) Debt limitation.--The authority is authorized on a
7 continuing basis to incur debt supported by the Economic
8 Enhancement Fund to finance grants and loans awarded under this
9 section. All payments for the debt resulting from grants or
10 loans made under this section shall be paid from the Economic
11 Enhancement Fund.
12 (g) Contract proceeds.--Any money received from a grant or
13 loan recipient under this program shall be deposited in the
14 Economic Enhancement Fund.
15 (h) First issuance.--The first series of bonds to be issued
16 by the authority shall be issued in a manner and at a time so
17 that the net proceeds of the bonds shall be available on or
18 before June 30, 2004, or as soon as practicable after June 30,
19 2004.
20 § 4325. Secondary Growth Stage Financing Program.
21 (a) Establishment.--There is established within the
22 authority a program to be known as the Secondary Growth Stage
23 Financing Program. The program shall provide financial
24 assistance to certain persons in the form of loans for projects.
25 (b) Growth stage partners.--
26 (1) A person may submit an application to the authority
27 requesting designation as a growth stage partner. The
28 application shall be on the form required by the authority
29 and shall include or demonstrate all of the following:
30 (i) The name and address of the person.
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1 (ii) A statement demonstrating that the person is
2 experienced in financing expanding businesses.
3 (iii) A statement of the maximum amount of
4 investment the person is willing to make in the program.
5 (iv) Any other information required by the
6 authority.
7 (2) The authority shall forward the application to the
8 committee. The committee shall review the application and
9 determine if the person possesses prudent investment
10 experience. Upon being satisfied that all requirements have
11 been met, the committee shall recommend the person to the
12 board.
13 (3) If the board receives a recommendation from the
14 committee, the board shall enter into a contract with the
15 person and designate the person a growth stage partner in
16 accordance with all of the following:
17 (i) The board shall ensure that at least one growth
18 stage partner exists in each geographic region of the
19 Commonwealth.
20 (ii) The contract shall specify that loan payments
21 will be applied on a pro rata basis.
22 (c) Loans.--
23 (1) A person may submit an application to a growth stage
24 partner requesting financial assistance for a project. The
25 application shall be on the form required by the authority
26 and shall include or demonstrate all of the following:
27 (i) The name and address of the person.
28 (ii) A statement that the person has been in
29 business more than two years but less than seven.
30 (iii) A statement of the amount of financial
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1 assistance sought.
2 (iv) A statement of the project including a detailed
3 statement of the cost of the project.
4 (v) Any other information required by the authority
5 or by the growth stage partner.
6 (2) The growth stage partner shall review the
7 application to determine if the project is a responsible
8 investment. If the growth stage partner is satisfied that the
9 project is responsible, the growth stage partner may
10 recommend approval of the application to the board.
11 (3) If the board receives a recommendation for approval
12 of an application from a growth stage partner, the board may
13 approve the application.
14 (4) Upon approval of the application, the growth stage
15 partner and the authority shall enter into a contract with
16 the applicant and finance the loan in accordance with the
17 following:
18 (i) The growth stage partner shall finance at least
19 25% of the loan amount.
20 (ii) The authority may finance the loan in an amount
21 not to exceed 75% of the loan.
22 (iii) The contract may include a provision granting
23 the growth stage partner a mortgage interest in property
24 owned by the applicant.
25 (d) Loan service.--Any loan financed by the authority under
26 this section shall be administered by the growth stage partner.
27 The authority and each growth stage partner shall enter into an
28 agreement pursuant to which the growth stage partner agrees to
29 transfer to the authority in a timely manner its pro rata share
30 of any payments received by the growth stage partner on loans
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1 made in accordance with this section.
2 § 4326. Community Development Bank Program (Reserved).
3 SUBCHAPTER E
4 MISCELLANEOUS
5 (RESERVED)
6 CHAPTER 45
7 LOCAL ECONOMIC DEVELOPMENT FINANCING AUTHORITIES
8 (RESERVED)
9 CHAPTER 47
10 PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY
11 (RESERVED)
12 Section 2. Title 72 is amended by adding parts to read:
13 PART III
14 FUNDS
15 Chapter
16 72. Economic Enhancement Fund
17 CHAPTER 72
18 ECONOMIC ENHANCEMENT FUND
19 Sec.
20 7201. Scope.
21 7202 Definitions.
22 7203. Establishment.
23 7204. Calculation.
24 7205. Transfer.
25 7206. Appropriation and payments.
26 § 7201. Scope.
27 This chapter relates to the Economic Enhancement Fund.
28 § 7202. Definitions.
29 The following words and phrases when used in this chapter
30 shall having the meaning given to them in this section unless
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1 the context clearly indicates otherwise:
2 "Authority." The Pennsylvania Economic Development Authority
3 established by 12 Pa.C.S. Ch. 43 (relating to Pennsylvania
4 Economic Development Financing Authority).
5 "Department." The Department of Revenue of the Commonwealth.
6 "Fund." The Economic Enhancement Fund established by section
7 7203 (relating to establishment).
8 "Tax incentive district." Property designated by the
9 Department of Community and Economic Development as a tax
10 incentive district in accordance with 12 Pa.C.S. Ch. 33
11 (relating to economic enhancement).
12 "Tax Reform Code of 1971." The act of March 4, 1971 (P.L.6,
13 No.2), known as the Tax Reform Code of 1971.
14 § 7203. Establishment.
15 There is hereby established a special fund known as the
16 Economic Enhancement Fund. Interest income derived from
17 investment of the money in the fund shall be credited by the
18 Treasury Department to the fund.
19 § 7204. Calculation.
20 Within 30 days of the end of each quarter, the department
21 shall calculate and notify the Secretary of the Budget of the
22 aggregate revenue received pursuant to Articles II, IV and VI of
23 the Tax Reform Code of 1971 from taxpayers located within tax
24 incentive districts.
25 § 7205. Transfer.
26 Within ten days of receiving notification in accordance with
27 section 7204 (relating to calculation), the Secretary of the
28 Budget shall direct the State Treasurer to transfer a sum, equal
29 to 25% of the aggregate revenue received pursuant to Articles
30 II, IV and VI of the Tax Reform Code of 1971, from taxpayers
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1 located within tax incentive districts, from the General Fund to
2 the fund. Transfers from the General Fund to the fund shall not
3 exceed $10,000,000 in the aggregate in any one fiscal year.
4 § 7206. Appropriation and payments.
5 Money in the fund is hereby appropriated on a continuing
6 basis to the authority for the Economic Enhancement Financing
7 Program established in 12 Pa.C.S. § 4324 (relating to Economic
8 Enhancement Financing Program). The State Treasurer shall
9 provide semiannual payments to the authority on August 1 and
10 February 1 of each year until the authority is terminated in
11 accordance with 12 Pa.C.S. § 4303(j) (relating to authority).
12 August 1 payments shall be equal to the balance of the fund on
13 July 15 of that calendar year, and February 1 payments shall be
14 equal to the balance of the fund on January 15 of that calendar
15 year.
16 PART IV
17 DEBT
18 Chapter
19 91. Capital Facilities
20 92. Sports Facilities
21 CHAPTER 91
22 CAPITAL FACILITIES
23 Sec.
24 9101. Scope of chapter.
25 9102. Definitions.
26 9103. Procedures for capital budget bill and debt-authorizing
27 legislation.
28 9104. Certificates of the Auditor General.
29 9105. Constitutional limitations, authorizations, issuing
30 officials.
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1 9106. Temporary borrowing.
2 9107. Bonds, issue of bonds and notes, maturity, interest.
3 9108. Direct obligations, exemption from taxation, means of
4 payment.
5 9109. Sale of bonds.
6 9110. Disposition and use of proceeds.
7 9111. Capital Debt Fund; investments; redemption of bonds.
8 9112. Funding bonds.
9 9113. Reporting requirements.
10 9114. Registration of bonds.
11 9115. Voting requirements.
12 9116. Appropriation.
13 9117. Appropriation for and limitation on redevelopment
14 assistance and site development capital projects.
15 9118. Funding and administration of redevelopment assistance
16 capital projects.
17 9119. Funding and administration of site development capital
18 projects.
19 9120. Capital Project Oversight and Review Committee.
20 § 9101. Scope of chapter.
21 This chapter deals with capital facilities.
22 § 9102. Definitions.
23 The following words and phrases when used in this chapter
24 shall have the meanings given to them in this section unless the
25 context clearly indicates otherwise:
26 "Acquisition cost." The cost of acquiring:
27 (1) buildings;
28 (2) structures;
29 (3) facilities;
30 (4) property, real, personal or mixed, tangible or
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1 intangible; or
2 (5) any other interest;
3 necessary or desirable in connection with a capital project,
4 whether the acquisition be by purchase or by condemnation,
5 including the amount of an award or final judgment in a
6 proceeding to acquire by condemnation lands, rights-of-way,
7 rights-of-slope, property rights, franchises, easements or other
8 interests as deemed necessary or convenient in connection with
9 the acquisition or construction of a project, and costs of
10 options and partial payments on and under options.
11 "Capital project." A project which is financed by debt or by
12 other funds and which meets all of the following:
13 (1) Is an undertaking to construct, repair, renovate,
14 improve, equip, furnish or acquire any:
15 (i) building, structure, facility or physical public
16 betterment or improvement;
17 (ii) land or rights in land; or
18 (iii) furnishings, machinery, apparatus or equipment
19 for a building, structure, facility or physical public
20 betterment or improvement.
21 (2) Is designated in a capital budget as a capital
22 project.
23 (3) Has an estimated useful life in excess of five
24 years.
25 (4) Has an estimated financial cost in excess of
26 $250,000. This paragraph does not apply to original equipment
27 or furnishings for previously authorized public improvement
28 projects.
29 Capital projects are categorized as flood control projects,
30 highway projects, public improvement projects, redevelopment
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1 assistance capital projects, site development capital projects
2 and transportation assistance projects.
3 "Committee." The Capital Project Oversight and Review
4 Committee established in section 9120 (relating to Capital
5 Project Oversight and Review Committee).
6 "Commonwealth agency or authority." Excludes an agency or
7 authority organized by action of a political subdivision.
8 "Construction cost." Obligations incurred:
9 (1) for labor and to contractors, builders and
10 materialmen in connection with the construction, fabrication
11 or assembly of a capital project;
12 (2) for machinery and equipment required for
13 construction under paragraph (1);
14 (3) for the restoration of property damaged or destroyed
15 in connection with construction under paragraph (1); and
16 (4) for the payment of damages incurred by others
17 incident to or consequent upon construction under paragraph
18 (1) which the Commonwealth or its agency or authority is
19 under legal obligation to pay or desires to pay in settlement
20 of a disputed claim of liability.
21 "Debt." The issued and outstanding obligations of the
22 Commonwealth incurred without a vote of the electorate or
23 incurred with such vote under a law making such debt subject to
24 the provisions of section 7(a)(4) of Article VIII of the
25 Constitution of Pennsylvania. The term includes obligations of
26 Commonwealth agencies and authorities to the extent that such
27 obligations are to be repaid from lease rentals or other charges
28 payable directly or indirectly from revenues of the
29 Commonwealth. The term does not include:
30 (1) that portion of debt which is to be repaid from
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1 charges made to the public for the use of the capital
2 projects financed, as such portion of debt may be determined
3 by the Auditor General;
4 (2) obligations to be repaid from lease rentals or other
5 charges payable by a school district or other local taxing
6 authority; or
7 (3) obligations to be repaid by agencies or authorities
8 created for the joint benefit of the Commonwealth and one or
9 more other state governments.
10 "Debt-authorizing act." The legislation required by section
11 9103(d) (relating to procedures for capital budget bill and
12 debt-authorizing legislation).
13 "Financial cost." Acquisition cost and construction cost,
14 where applicable, and an allocated portion of all of the
15 following:
16 (1) Fees, expenses and costs of issuing obligations the
17 proceeds of which are used to finance the project.
18 (2) Fees, expenses and costs of issuing and selling
19 notes or replacement notes issued under this chapter.
20 (3) Establishing and maintaining any purchase, loan or
21 credit agreements in connection with an issue or series of
22 issues of notes, and the fees and expenses of any fiscal or
23 loan and transfer agent and bond counsel incurred in
24 connection with the issue of the obligations.
25 (4) Premiums on insurance in connection with a project
26 during construction.
27 (5) Taxes and other municipal or governmental charges
28 lawfully levied or assessed during construction.
29 (6) Fees and expenses of architects, engineers and other
30 professionals for:
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1 (i) making preliminary studies, reports or estimates
2 of costs;
3 (ii) preparing plans and specifications and
4 inspecting and reviewing the progress of construction;
5 and
6 (iii) obtaining abstracts of title, title insurance
7 or title opinions.
8 (7) Costs and expenses of preliminary investigations,
9 preplanning, surveys and reports to determine the proper
10 scope, feasibility and probable costs of capital projects to
11 be included in future capital budgets.
12 (8) Costs of administration, including the salaries and
13 expenses of administrators, reviewing architects and
14 engineers, construction inspectors, accountants and legal
15 counsel of the Commonwealth and its agencies or authorities,
16 incurred for the proper planning and supervision of the
17 capital projects program.
18 "Flood control projects." Projects of the type which the
19 Water and Power Resources Board is authorized to construct,
20 improve, equip, maintain, acquire or operate under the
21 provisions of the act of August 7, 1936 (1st Sp.Sess., P.L.106,
22 No.46), referred to as the Flood Control Law.
23 "Fund." Any fund other than a fund, or an account in a fund,
24 established by this chapter.
25 "Funding bonds." General obligation bonds used to provide
26 funds for and towards the payment of outstanding notes or to
27 refund other outstanding bonds prior to or at or after the
28 stated maturity date of the bonds being refunded or of the notes
29 being funded.
30 "Highway projects." Projects of a type which the Department
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1 of Transportation is authorized to construct, improve, equip,
2 maintain, acquire or operate.
3 "Hospital." As defined in section 802.1 of the act of July
4 19, 1979 (P.L.130, No.48), known as the Health Care Facilities
5 Act.
6 "Issuing officials." The Governor, the Auditor General and
7 the State Treasurer.
8 "Net debt."
9 (1) The aggregate principal amount of all debt; plus
10 (2) the amount of any past due and unpaid interest on
11 that debt; minus
12 (3) all funds held exclusively for the payment of that
13 principal and past due interest.
14 Neither accrued but not yet past due interest nor funds held for
15 the payment of the interest next falling due, up to the amount
16 of such interest, shall be included in such computations.
17 "Notes." Temporary obligations and replacement notes issued
18 by the Commonwealth pursuant to this chapter in anticipation of
19 bonds.
20 "Obligations." Notes or bonds of the Commonwealth, its
21 agencies or authorities, issued pursuant to any debt authorizing
22 act.
23 "Public improvement projects." Projects of a type which the
24 General State Authority is authorized to construct, improve,
25 equip, furnish, maintain, acquire or operate under the
26 provisions of the act of March 31, 1949 (P.L.372, No.34), known
27 as The General State Authority Act of one thousand nine hundred
28 forty-nine, and projects which the Department of General
29 Services is authorized to construct, improve, equip, furnish,
30 maintain, acquire or operate.
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1 "Redevelopment assistance capital project." The design and
2 construction of facilities which meet the following:
3 (1) Are facilities, other than housing units, highways,
4 bridges, waste disposal facilities, sewage facilities or
5 water facilities. This paragraph includes:
6 (i) water and sewer infrastructure, bridges and
7 roads included in business or industrial park facilities;
8 and
9 (ii) hospital facilities and capital improvements
10 for hospital facilities.
11 (2) Are economic development projects which generate
12 substantial increases in employment, tax revenues or other
13 measures of economic activity. This paragraph includes
14 projects with cultural, historical or civic significance.
15 (3) Are facilities which have a regional or
16 multijurisdictional impact.
17 (4) Are eligible for tax-exempt bond funding under
18 existing Federal law and regulations.
19 (5) Have a 50% non-State participation documented at the
20 time of application, including a portion of any funds
21 reserved for future physical maintenance and operation of the
22 facilities:
23 (i) at least half of which is secured funding;
24 (ii) toward which the only noncash non-State
25 participation permitted is land or fixed assets which
26 have a substantial useful life and are directly related
27 to the project;
28 (iii) toward which State funds from other programs
29 may not be used; and
30 (iv) toward which funds from Federal sources may be
20030H1758B2278 - 138 -
1 used.
2 (6) Have a total project cost of at least $1,000,000.
3 Applicants must be one of the following:
4 (i) A redevelopment authority.
5 (ii) An industrial development authority.
6 (iii) A general purpose unit of local government.
7 (iv) A local development district which has an
8 agreement with a general purpose unit of local government
9 under which the unit assumes ultimate responsibility for
10 debt incurred to obtain the 50% non-State participation
11 required by paragraph (5).
12 (v) An industrial development corporation.
13 "Replacement notes." Notes:
14 (1) the net proceeds of which are used to pay principal,
15 accrued interest and premium of previously issued notes or
16 replacement notes; and
17 (2) which evidence the same temporary borrowing of the
18 Commonwealth as the notes or replacement notes replaced.
19 "Site development capital projects." The design and
20 construction of infrastructure and improvements for locations
21 which meet all of the following:
22 (1) Are locations suitable for the siting of business,
23 industrial or research facilities upon completion of the
24 project.
25 (2) Create opportunities to develop new facilities or to
26 expand existing facilities for business, service industries,
27 manufacturing, research and development or other business or
28 industrial operations which produce goods or services as
29 determined by the Secretary of Community and Economic
30 Development.
20030H1758B2278 - 139 -
1 (3) Result in the creation of new jobs or the
2 preservation of existing jobs.
3 (4) Have a 50% non-State participation documented at the
4 time of application:
5 (i) at least one-half of which is secured funding;
6 (ii) toward which the only noncash, non-State
7 participation permitted is land or fixed assets which
8 have a substantial useful life and are directly related
9 to the project; and
10 (iii) toward which State funds from other programs
11 may not be used.
12 (5) Have a total project cost of at least $1,000,000.
13 (6) The project applicant is a municipality, municipal
14 authority, industrial development authority, redevelopment
15 authority, industrial development corporation or a general
16 purpose unit of local government.
17 (7) The project applicant can demonstrate to the
18 secretary that the location will be occupied by a business or
19 industrial tenant within five years of completion of the
20 project or such other reasonable period of time as may be
21 designated by the secretary.
22 "Tax revenues." All revenues from Commonwealth imposed
23 taxes, regardless of the fund to which they are deposited,
24 including revenues from motor vehicle licenses, which are
25 declared to be taxes for purposes of this chapter. The term does
26 not include revenues from any other licenses or from interest,
27 fees, fines or penalties.
28 "Transportation assistance projects." Projects of a type
29 which the Department of Transportation is authorized to
30 construct, improve, equip, furnish, maintain, acquire or operate
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1 under 74 Pa.C.S. Pt. II (relating to public transportation) and
2 capital projects which the Department of Transportation is
3 authorized to construct, improve, equip or furnish under the
4 provisions of the act of February 11, 1976 (P.L.14, No.10),
5 known as the Pennsylvania Rural and Intercity Common Carrier
6 Surface Transportation Assistance Act, including the acquisition
7 of property authorized in those statutes.
8 § 9103. Procedures for capital budget bill and debt-authorizing
9 legislation.
10 (a) Legislative process.--A capital budget prepared in
11 accordance with this chapter shall be submitted for each fiscal
12 year by the Governor to the General Assembly and shall be
13 considered in the form of a bill as provided in Article III of
14 the Constitution of Pennsylvania.
15 (b) Itemization.--
16 (1) Except as set forth in paragraph (2), the capital
17 budget bill must specifically itemize, by brief identifying
18 description and estimated financial cost, the capital
19 projects to be financed from:
20 (i) the proceeds of obligations of the Commonwealth;
21 or
22 (ii) current revenues.
23 (2) Paragraph (1) does not apply if the itemization is:
24 (i) contained in or approved by prior legislation
25 referred to in the capital budget bill; or
26 (ii) included in one or more supplemental capital
27 budget bills.
28 (3) Projects must be listed in separate categories as
29 well as according to the fund to be charged with the
30 repayment of the obligations to be incurred.
20030H1758B2278 - 141 -
1 (4) The capital budget bill must state the maximum
2 amount of such obligations which may be incurred in the
3 ensuing fiscal year to provide funds for and towards the
4 financial costs of each category of capital projects, which
5 shall be by the issue of general obligations of the
6 Commonwealth.
7 (c) Timing.--Each year the Governor shall submit a capital
8 budget bill for the ensuing fiscal year.
9 (d) Debt-authorizing legislation.--At the time the Governor
10 submits the capital budget or a supplement, the Governor shall,
11 to the extent the debt to be incurred is not within the limits
12 of legislation then in force authorizing the incurring of debt,
13 submit additional bills for each category of capital projects,
14 authorizing the incurring of debt to provide funds for and
15 towards the payment of the financial costs of capital projects
16 in such category which have been specifically itemized in a
17 capital budget for the same or any prior year.
18 (e) Categories.--Each debt-authorizing bill must do all of
19 the following:
20 (1) State the category of capital projects to be
21 financed by the debt so authorized but need not enumerate the
22 capital projects to be financed.
23 (2) Authorize the incurring of debt in not less than the
24 amount of the incurred or expected to be incurred financial
25 cost of all capital projects in such category not covered by
26 a previous debt authorization, including any overall
27 allowance for contingencies.
28 (3) State the estimated useful lives of the capital
29 projects to be financed in such detail as may be requisite if
30 capital projects of varying useful lives are to be combined
20030H1758B2278 - 142 -
1 for financing purposes.
2 (4) State the maximum term of the debt to be incurred.
3 § 9104. Certificates of the Auditor General.
4 (a) Requirement.--By March 1 and September 1, the Auditor
5 General shall certify to the Governor and the General Assembly
6 the average annual tax revenues deposited in all funds in the
7 five fiscal years ended next preceding the date of the
8 certificate, determined by adding the total of such revenues so
9 deposited and dividing the sum by five. At the time of each
10 certification, the Auditor General shall also certify as
11 separate items:
12 (1) the amount of outstanding net debt as of the end of
13 the preceding fiscal year;
14 (2) the amount of outstanding net debt as of the date of
15 the certificate;
16 (3) the difference between the limitation upon all
17 outstanding net debt as provided in section 7(a)(4) of
18 Article VIII of the Constitution of Pennsylvania and
19 paragraph (2);
20 (4) the amount of outstanding net debt scheduled to be
21 repaid during the remainder of the fiscal year in which the
22 certificate is issued;
23 (5) the amount of debt authorized by law to be issued
24 but not yet incurred; and
25 (6) the amount of outstanding obligations excluded from
26 outstanding debt as self-sustaining pursuant to section
27 7(c)(1), (2) and (3) of Article VIII of the Constitution of
28 Pennsylvania.
29 (b) Additional certificates.--As required in connection with
30 the sale of or settlement for obligations of the Commonwealth,
20030H1758B2278 - 143 -
1 the Auditor General shall issue certificates containing items
2 listed in subsection (a)(2) and (3) as of the dates determined
3 by the Governor to be relevant to such sales or settlements.
4 (c) Reliance on certifications.--In making certificates, the
5 Auditor General shall be entitled to rely, as to any of items
6 listed in subsection (a)(1) through (5), upon:
7 (1) any certificate furnished by the State Treasurer
8 with respect to outstanding Commonwealth general obligation
9 bonds;
10 (2) any certificate furnished by the Department of
11 Revenue; and
12 (3) any certificate furnished by the appropriate bank or
13 trust company operating as fiscal agent or trustee with
14 respect to the outstanding obligations of any authority.
15 § 9105. Constitutional limitations, authorizations, issuing
16 officials.
17 Within the limitation set forth in section 7(a)(4) of Article
18 VIII of the Constitution of Pennsylvania, the issuing officials
19 are authorized and directed to borrow, on the credit of the
20 Commonwealth and subject to the conditions and limitations of
21 the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal
22 Code, money necessary to carry out the purposes of debt-
23 authorizing acts passed in accordance with the provisions of
24 this chapter.
25 § 9106. Temporary borrowing.
26 (a) Authorization.--Pending the issuance of bonds of the
27 Commonwealth as authorized in section 9107 (relating to bonds,
28 issue of bonds and notes, maturity, interest), the issuing
29 officials are authorized, in accordance with the provisions of
30 this chapter and on the credit of the Commonwealth, to make
20030H1758B2278 - 144 -
1 temporary borrowings not to exceed three years in anticipation
2 of the issue of bonds in order to provide funds in such amounts
3 as deemed advisable to carry out the purposes of any debt-
4 authorizing acts prior to the issue of bonds. In order to
5 provide for and in connection with the temporary borrowings, the
6 issuing officials are authorized in the name and on behalf of
7 the Commonwealth to enter into any purchase, loan or credit
8 agreement or other agreement with banks, trust companies,
9 lending institutions, investment banking firms or persons in the
10 United States having the appropriate power. Agreements may
11 contain provisions not inconsistent with the provisions of this
12 chapter, as authorized by the issuing officials.
13 (b) Evidence.--All temporary borrowings made under the
14 authorization of this section shall be evidenced by notes of the
15 Commonwealth, which shall be issued for such amounts not
16 exceeding in the aggregate the applicable statutory and
17 constitutional debt limitation, in form and denominations and
18 subject to terms and conditions of sale and issue, prepayment or
19 redemption and maturity, rate of interest and time of payment of
20 interests, as the issuing officials authorize and direct and in
21 accordance with the applicable debt-authorizing act.
22 Authorization and direction may provide for the subsequent
23 issuance of replacement notes to refund outstanding notes or
24 replacement notes. Replacement notes shall, upon issuance,
25 evidence the borrowing and may specify other terms and
26 conditions with respect to the notes and replacement notes
27 authorized for issuance as the issuing officials may determine
28 and direct.
29 (c) Replacement notes.--
30 (1) If the authorization and direction of the Governor,
20030H1758B2278 - 145 -
1 the Auditor General and the State Treasurer provide for the
2 issuance of replacement notes, the Governor, the Auditor
3 General and the State Treasurer are authorized, in the name
4 and on behalf of the Commonwealth, to issue, enter into or
5 authorize and direct the State Treasurer to do the following:
6 (i) Enter into agreements with banks, trust
7 companies, investment banking firms or other institutions
8 or persons in the United States having appropriate power
9 to purchase or underwrite an issue or series of issues of
10 notes.
11 (ii) Enter into a purchase, loan or credit
12 agreement.
13 (iii) Draw money pursuant to a purchase, loan or
14 credit agreement on the terms and conditions set forth in
15 the agreement.
16 (iv) Issue notes as evidence of borrowings made
17 under a purchase, loan or credit agreement.
18 (v) Appoint an issuing and paying agent or agents
19 with respect to notes.
20 (vi) Perform acts necessary or appropriate to
21 provide for the payment, when due, of the interest on and
22 principal of notes.
23 (2) Agreements under paragraph (1) may provide that the
24 compensation of purchasers or underwriters of notes or
25 replacement notes, by discount in the purchase price of the
26 notes or by payment of a fixed fee or commission at the time
27 of issuance of the notes, and that all other costs and
28 expenses, including fees for agreements related to the notes,
29 issuing and payment agent costs and costs and expenses of
30 issuance, may be paid from the proceeds of the notes.
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1 (d) Issuance of replacement notes.--If the authorization and
2 direction of the Governor, the Auditor General and the State
3 Treasurer provide for the issuance of replacement notes, the
4 State Treasurer shall, by the time of delivery of these notes or
5 replacement notes, determine the principal amounts, dates of
6 issuance, interest rates or procedures for establishing interest
7 rates, rates of discount, denominations and all other terms and
8 conditions relating to the issuance and shall perform all acts
9 necessary to pay or cause to be paid when due all principal of
10 and interest on the notes being refunded by replacement notes
11 and to assure that payment may draw upon any money available for
12 that purpose pursuant to any purchase, loan or credit agreements
13 established with respect to the notes, subject to the
14 authorization and direction of the Governor, the Auditor General
15 and the State Treasurer.
16 (e) Funding and retirement.--Outstanding notes evidencing
17 borrowings may be funded and retired by the issuance and sale of
18 the bonds of the Commonwealth under section 9112 (relating to
19 funding bonds). Funding bonds must be issued and sold not later
20 than a date three years after the date of issuance of the first
21 notes evidencing the borrowings, to the extent that payment of
22 the notes has not otherwise been made or provided for by sources
23 other than proceeds of replacement notes.
24 (f) Proceeds.--The proceeds of temporary borrowings except
25 those evidenced by replacement notes shall be paid to the State
26 Treasurer to be held and disposed of under section 9110
27 (relating to disposition and use of proceeds). The proceeds of
28 temporary borrowings evidenced by replacement notes shall be
29 paid to the State Treasurer to be held and disposed of under
30 subsection (d).
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1 § 9107. Bonds, issue of bonds and notes, maturity, interest.
2 (a) Issue.--As evidence of indebtedness as authorized,
3 bonds, which may be for one or more purposes, shall be issued
4 under this chapter for all of the following purposes:
5 (1) To fund or retire notes issued under section 9106
6 (relating to temporary borrowing) and bonds issued under
7 paragraph (2).
8 (2) To provide money necessary to carry out the purposes
9 of a debt-authorizing statute.
10 (b) Series.--The bonds of each issue shall constitute a
11 separate series to be designated by the issuing officials or may
12 be combined for sale as one series with other general obligation
13 bonds of the Commonwealth. Each series of bonds shall bear such
14 rate of interest as determined by the issuing officials. Bonds
15 shall be issued in denominations and in form, whether coupon or
16 registered as to both principal and interest, and with or
17 without such provisions of interchangeability, as the issuing
18 officials determine. If interest coupons are attached, they
19 shall, unless the debt-authorizing act provides otherwise,
20 contain the facsimile signature of the State Treasurer.
21 (c) Terms and conditions.--
22 (1) Except as set forth in subsection (a) or (b), the
23 terms and conditions of issue, redemption and maturity and
24 time of payment of interest shall be as the issuing officials
25 shall specify. Bonds of any series shall mature within a
26 period not to exceed the estimated useful lives of the
27 capital projects as stated in the debt-authorizing act but
28 not later than 30 years from the date of issuance.
29 (2) The issuing officials shall provide for the
30 amortization of the bonds in substantial and regular amounts
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1 over the term of the debt, but the first retirement of
2 principal shall be stated to mature prior to the expiration
3 of a period of time equal to one-tenth of the time from the
4 date of the first obligation issued to evidence the debt to
5 the date of the expiration of the term of the debt.
6 (3) Retirements of principal shall be regular and
7 substantial if made in annual or semiannual amounts whether
8 by stated serial maturities or by mandatory sinking fund
9 retirements computed in accordance with either a level annual
10 debt service plan as nearly as may be or upon the equal
11 annual maturities plan.
12 (4) If debt is incurred in one issue of bonds to provide
13 funds for and towards the financial cost of capital projects
14 having estimated useful lives of varying length, the
15 following shall apply:
16 (i) The aggregate of the financial costs shall be
17 considered as the debt to be incurred for the purpose of
18 fixing the regular and substantial amounts of principal
19 to be retired.
20 (ii) The term of the debt shall be to the end of the
21 longest estimated useful life for the purpose of
22 determining the first date for the retirement of
23 principal. At the end of the estimated useful life of
24 each project, the aggregate principal retirements
25 required to be made at or before that date shall exceed:
26 (A) the aggregate financial cost of all capital
27 projects having the same or shorter estimated useful
28 lives; or
29 (B) if bonds are issued for less than the full
30 financial cost of all projects being financed in the
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1 same category, a proportionate amount in each case.
2 (5) The issuing officials may enter into the following
3 agreements and contracts, which in the judgment of the
4 issuing officials will assist in managing the interest costs
5 of the debt of the Commonwealth:
6 (i) Interest rate exchange agreements, interest rate
7 cap and floor agreements and other similar agreements.
8 (ii) Contracts to insure or secure payment of
9 principal, interest or the purchase price of bonds.
10 (6) The issuing officials are authorized to carry out
11 the provisions of this chapter relating to the issuance of
12 bonds and shall determine all matters in connection with the
13 issuance of bonds subject to the provisions hereof.
14 (d) Verification.--
15 (1) Bonds issued under the authority of this chapter,
16 unless the debt-authorizing acts provide another method of
17 signature, shall bear the facsimile signatures of the issuing
18 officials and a facsimile of the Great Seal of the
19 Commonwealth of Pennsylvania and shall be countersigned by an
20 officer of an authorized loan and transfer agent of the
21 Commonwealth.
22 (2) The action taken by the issuing officials
23 authorizing the issuance of bonds or notes shall set forth
24 the title and citation of the debt-authorizing acts.
25 (3) Notes and bonds issued under the authority of this
26 chapter shall:
27 (i) either contain a similar recital or refer to the
28 recital of titles and citations set forth in the action
29 authorizing issuance; and
30 (ii) state that the bonds or notes are issued in
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1 accordance with the provisions of this chapter. In any
2 action or proceeding involving the validity or
3 enforceability of bonds or notes under this chapter, a
4 recital under paragraph (3) shall be conclusive as to
5 their authorization.
6 § 9108. Direct obligations, exemption from taxation, means of
7 payment.
8 (a) Direct obligation.--Notes and bonds issued under this
9 chapter shall be direct obligations of the Commonwealth, and the
10 full faith and credit of the Commonwealth are pledged for the
11 payment of the interest as it becomes due and the payment of the
12 principal at maturity.
13 (b) Exemptions.--Notes and bonds issued under this chapter
14 shall be exempt from taxation for State and local purposes
15 except as provided under the act of March 4, 1971 (P.L.6, No.2),
16 known as the Tax Reform Code of 1971.
17 (c) Payment.--The principal of and interest on notes and
18 bonds issued under this chapter shall be payable in lawful money
19 of the United States of America.
20 § 9109. Sale of bonds.
21 (a) Public sale.--When bonds are issued under this chapter,
22 they shall be offered for sale at not less than 98% of the
23 principal amount and accrued interest and shall be sold by the
24 issuing officials to the highest and best bidder or bidders
25 after public advertisement on terms and conditions and upon open
26 competitive bidding as the issuing officials direct. The manner
27 and times of advertising shall be prescribed by the issuing
28 officials.
29 (b) Private sale.--Any portion of a bond issue offered under
30 subsection (a) and not sold or subscribed to may be disposed of
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1 by private sale by the issuing officials in a manner and at
2 prices, not less than 98% of the principal amount and accrued
3 interest, as the Governor directs. No commission shall be
4 allowed or paid for the sale of bonds issued under this chapter.
5 (c) Temporary bonds.--Until permanent bonds can be prepared,
6 the issuing officials may issue, in lieu of permanent bonds,
7 temporary bonds in form and with privileges as to the
8 registration and exchange for permanent bonds as may be
9 determined by the issuing officials.
10 § 9110. Disposition and use of proceeds.
11 (a) General rule.--The proceeds of temporary borrowings made
12 under section 9106 (relating to temporary borrowing), other than
13 the proceeds of replacement notes, and the proceeds from the
14 sale of bonds, other than funding bonds, shall be paid to the
15 State Treasurer and be held by the State Treasurer in a separate
16 fund and shall be deposited in depositories as selected by the
17 State Treasurer to the credit of the Capital Facilities Fund,
18 which shall have such separate accounts as may be deemed
19 desirable by the issuing officials, but not less than one
20 separate account for each category of capital projects. The
21 proceeds of replacement notes shall be deposited and applied as
22 provided in section 9106(d). The proceeds of funding bonds shall
23 be deposited and applied as provided in section 9112 (relating
24 to funding bonds).
25 (b) Dedication.--The money in the Capital Facilities Fund is
26 specifically dedicated to meeting the financial costs of capital
27 projects. The money shall be paid by the State Treasurer to
28 those departments, agencies or authorities authorized to expend
29 it as required by them to pay financial costs at the time the
30 department, agency or authority certifies the payment to be due
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1 and payable.
2 (c) Investment.--Pending their application to the purposes
3 authorized, money held or deposited by the State Treasurer may
4 be invested and reinvested as are other funds in the custody of
5 the State Treasurer in the manner provided by law. Earnings
6 received from the investment or deposit of the funds shall be
7 paid into the State Treasury to the credit of the account in the
8 Capital Facilities Fund to which the funds were originally
9 deposited.
10 § 9111. Capital Debt Fund; investments; redemption of bonds.
11 (a) Capital Debt Fund.--Bonds issued under this chapter
12 shall be paid at maturity. Interest due after July 1, 1968, on
13 bonds and on notes issued under this chapter shall be paid by
14 the Board of Finance and Revenue from the Capital Debt Fund. The
15 General Assembly shall appropriate annually the money necessary
16 to pay the interest on the bonds and notes and the principal of
17 the bonds and notes at maturity if no other provision is made.
18 Money appropriated shall be paid into the Capital Debt Fund by
19 the State Treasurer.
20 (b) Investment.--Money received under subsection (a) prior
21 to the date for disbursement shall be invested by the board
22 pending disbursement in securities as are provided by law for
23 the investment of surplus money of the Commonwealth. The
24 investment and the accumulations in the Capital Debt Fund shall
25 be devoted to and be used exclusively for the payment of the
26 interest accruing on the bonds and notes and for the redemption
27 of the bonds and notes at maturity or upon the redemption date
28 if called for prior redemption. The board is authorized to use
29 such funds for the purchase and retirement of all or any part of
30 the bonds issued under this chapter; but no purchase may be made
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1 which will reduce the money in the Capital Debt Fund below the
2 amount necessary to pay all principal and interest still to
3 become due in the fiscal year of the purchase. If all or any
4 part of any bonds issued under this chapter are purchased by the
5 Commonwealth, they shall be canceled and returned to the State
6 Treasurer as canceled and paid bonds. Thereafter, all payment of
7 interest on the bonds shall cease; and the canceled bonds and
8 coupons shall be destroyed in accordance with the act of April
9 27, 1925 (P.L.319, No.180), entitled, "An act relating to the
10 destruction of canceled or unused bonds or other evidences of
11 indebtedness of this Commonwealth."
12 § 9112. Funding bonds.
13 The issuing officials, subject to the provisions of a bond
14 resolution or trust indenture, are authorized to issue funding
15 bonds for the purpose of refunding obligations then outstanding
16 to provide funds to redeem and retire such outstanding
17 obligations with accrued interest and any premium payable
18 thereon at maturity or any call date. The issuance of funding
19 bonds, the maturities and other details, the rights of the
20 holders and the duties of the issuing officials shall be
21 governed by the applicable provisions of sections 9103 (relating
22 to procedures for capital budget bill and debt-authorizing
23 legislation) through 9111 (relating to Capital Debt Fund;
24 investments; redemption of bonds). Funding bonds may be issued
25 to refund bonds previously issued for refunding purposes. The
26 proceeds of the sale of funding bonds shall be paid to the State
27 Treasurer and applied to the payment of the principal of, and
28 any accrued interest and premium on, the bonds or notes for the
29 refunding of which funding bonds have been issued. No funding
30 bonds shall be issued having a stated maturity date later than
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1 the expiration of the useful life of the capital projects
2 constructed or acquired from the proceeds of the debt originally
3 incurred in respect of the bonds or notes being refunded, nor
4 shall funding bonds be issued to refund beyond the same fiscal
5 year any portion of debt required by this chapter and the
6 Constitution of Pennsylvania to be retired in the year of issue
7 of the funding bonds in order to comply with the retirement in
8 substantial and regular amounts as provided in section 9107(d)
9 (relating to bonds, issue of bonds and notes, maturity,
10 interest).
11 § 9113. Reporting requirements.
12 The State Treasurer shall determine and report to the
13 Secretary of the Budget and the chairman and minority chairman
14 of the Appropriations Committee of the Senate and the chairman
15 and minority chairman of the Appropriations Committee of the
16 House of Representatives by January 1 of each year the amount of
17 money necessary for the payment of interest on outstanding
18 obligations and the principal of the obligations for the
19 following fiscal year and the time and amounts of payments.
20 § 9114. Registration of bonds.
21 The Auditor General shall prepare the necessary registry
22 books to be kept in the office of the authorized loan and
23 transfer agent of the Commonwealth for the registration of any
24 bonds of the Commonwealth according to the terms and conditions
25 of issue specified by the issuing officials under section
26 9107(d) (relating to bonds, issue of bonds and notes, maturity,
27 interest). Bonds issued without interest coupons attached shall
28 be registered in the registry books kept by the authorized loan
29 and transfer agent of the Commonwealth.
30 § 9115. Voting requirements.
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1 If this chapter requires an action to be taken or a decision
2 to be made by the issuing officials and the three officers shall
3 not be able to agree unanimously, the action or decision of the
4 Governor and either the Auditor General or State Treasurer shall
5 be binding and final.
6 § 9116. Appropriation.
7 The money received by the Commonwealth from the issuance and
8 sale of bonds and notes pursuant to this chapter and any debt-
9 authorizing act adopted after July 23, 1984, shall be
10 appropriated by the General Assembly from the Capital Facilities
11 Fund in the debt-authorizing acts for the purposes set forth in
12 those acts.
13 § 9117. Appropriation for and limitation on redevelopment
14 assistance and site development capital projects.
15 (a) Appropriation.--The amount necessary to pay principal of
16 and interest on all obligations issued to provide funds for
17 redevelopment assistance capital projects and site development
18 capital projects is hereby appropriated from the General Fund
19 and shall be transferred to the Capital Debt Fund upon
20 authorization by the Governor.
21 (b) Limitation.--
22 (1) The maximum amount of redevelopment assistance
23 capital projects undertaken by the Commonwealth for which
24 obligations are outstanding shall not exceed, in the
25 aggregate, $1,950,000,000. On or after the effective date of
26 this section, at least $100,000,000 shall be specifically set
27 aside for projects for the construction of or improvements to
28 hospital facilities.
29 (2) The maximum amount of site development capital
30 projects for which obligations are outstanding shall not
20030H1758B2278 - 156 -
1 exceed, in the aggregate, $100,000,000.
2 § 9118. Funding and administration of redevelopment assistance
3 capital projects.
4 (a) Applications.--Persons seeking funding for redevelopment
5 assistance capital projects itemized in accordance with section
6 9103(b) (relating to procedures for capital budget bill and
7 debt-authorizing legislation) may request an application from
8 the Office of the Budget. Completed applications shall be
9 submitted to the Office of the Budget which shall review them to
10 determine if the proposed project meets the definition of
11 redevelopment assistance capital project and for compliance with
12 application requirements, including the submission of all
13 project descriptions, schedules, budgets and other materials as
14 may be required. Deficient applications shall be returned to the
15 applicant for revision. Applications found to be complete by the
16 Office of the Budget shall be forwarded to the committee for
17 review. The Secretary of the Budget may recommend projects to
18 the committee for approval. The committee shall not be bound by
19 a recommendation by the Secretary of the Budget.
20 (b) Review.--The following shall apply:
21 (1) The committee shall review an application for a
22 redevelopment assistance capital project to determine all of
23 the following:
24 (i) If the project has a regional or
25 multijurisdictional impact.
26 (ii) The project's potential to enhance regional
27 vitality.
28 (iii) If the project is eligible for tax-exempt bond
29 funding under existing Federal law and regulations.
30 (iv) If the project has a 50% non-State
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1 participation documented at the time of application.
2 (v) The number of direct jobs created by the
3 project.
4 (vi) The number of permanent indirect jobs created
5 by support, supplier and secondary industries attracted
6 by the project.
7 (vii) The total state and local tax generation.
8 (viii) The extent to which blighted areas or
9 facilities are eliminated or reused.
10 (ix) Any other information as may be required by the
11 committee.
12 (x) If the project has a total cost of at least
13 $1,000,000.
14 (2) The committee may consider the following when
15 reviewing redevelopment assistance capital projects:
16 (i) The geographic distribution of redevelopment
17 assistance capital projects throughout this Commonwealth.
18 (ii) The ratio of State share to non-State share of
19 the total project cost.
20 (c) Approval.--The following shall apply:
21 (1) The committee may approve a redevelopment assistance
22 capital project for which an application has been submitted
23 if it determines that the proposed project meets the
24 requirements of the definitions of redevelopment assistance
25 capital project contained in section 9102 (relating to
26 definitions) and will result in a significant positive impact
27 as evidenced by the review criteria contained in subsection
28 (b).
29 (2) Upon the approval of an application by the
30 committee, the Secretary of the Budget shall execute a grant
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1 agreement or contract with the applicant. State funding for
2 approved redevelopment assistance projects shall be paid in
3 accordance with subsection (d).
4 (3) The Commonwealth shall not contract with or enter
5 into a grant agreement with an applicant for a redevelopment
6 assistance capital project itemized in a capital budget
7 itemization act for the purpose unless the project has been
8 approved by at least four members of the committee.
9 (d) Time period.--State funding for approved redevelopment
10 assistance capital projects shall be paid over not less than a
11 36-month period unless the secretary or the committee authorizes
12 a shorter period.
13 (e) Costs.--Fees for professional services incurred for the
14 design and construction of redevelopment assistance capital
15 projects shall be paid from non-State funds. Land acquisition is
16 a permissible State-funded expenditure if the acquisition cost
17 is supported by an appraisal done by a certified appraiser.
18 (f) Proportion.--Expenditure of State and non-State funds
19 shall be made on a proportional basis for direct land and
20 building acquisition costs and construction expenses.
21 (g) Verification.--Redevelopment assistance capital project
22 cost estimates must be verified by the Office of the Budget or
23 its designated agent before final approval is given to a project
24 application by the committee. Cost estimates include total
25 project cost, projected use for State and non-State funds and a
26 year-by-year schedule of costs for the entire project
27 construction phase.
28 (h) Bids.--
29 (1) Notwithstanding any other provisions of law and
30 subject to paragraph (2), the solicitation of a minimum of
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1 three written bids for all contracted construction work on
2 redevelopment assistance capital projects shall be the sole
3 requirement for the composition, solicitation, opening and
4 award of bids on such projects.
5 (2) The construction work shall be performed subject to
6 the act of March 3, 1978 (P.L.6, No.3), known as the Steel
7 Products Procurement Act.
8 (i) Review and audit.--Redevelopment assistance capital
9 projects shall be reviewed at regular intervals by the Office of
10 the Budget or its designated agent during the funding phase to
11 ensure financial and program compliance. A final closeout audit
12 shall be performed by the Office of the Budget or its designated
13 agent for all projects. Copies of closeout audits shall be
14 provided to the committee by the Office of the Budget upon
15 completion.
16 (j) Grant administration.--In the event an applicant does
17 not administer the grant, the applicant shall enter into a
18 cooperation agreement with the entity administering the grant
19 which agreement shall be subject to the approval of the Office
20 of the Budget.
21 § 9119. Funding and administration of site development capital
22 projects.
23 (a) Applications.--Persons seeking funding for site
24 development capital projects itemized in a capital budget
25 itemization act may request an application from the Office of
26 the Budget. Completed applications shall be submitted to the
27 Office of the Budget which shall review them to determine if the
28 proposed project meets the definition of site development
29 capital project and for compliance with application
30 requirements, including the submission of all project
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1 descriptions, schedules, budgets and other materials as may be
2 required. Deficient applications shall be returned to the
3 applicant for revision. Applications found to be complete by the
4 Office of the Budget shall be forwarded to the committee for
5 review. The Secretary of the Budget may recommend projects to
6 the committee for approval. The committee shall not be bound by
7 a recommendation by the Secretary of the Budget.
8 (b) Review.--The following shall apply:
9 (1) The committee shall review an application for a site
10 development capital project to determine all of the
11 following:
12 (i) If the project locations are suitable for the
13 siting of business, industrial or research facilities.
14 (ii) If the project creates opportunities to develop
15 new facilities or to expand existing facilities for
16 business, service industries, manufacturing, research and
17 development or other business or industrial operations
18 that produce goods or services.
19 (iii) If the project will result in the creation of
20 new jobs or the preservation of existing jobs.
21 (iv) If the project has 50% non-State participation
22 documented at the time of application.
23 (v) If the project has a total project cost of at
24 least $1,000,000.
25 (vi) If it is likely that the project will be
26 occupied by a business or industrial tenant within five
27 years of completion or any other reasonable period of
28 time as may be designated by the Secretary of Community
29 and Economic Development.
30 (2) The committee may consider the following when
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1 reviewing site development capital projects:
2 (i) The geographic distribution of site development
3 capital projects throughout this Commonwealth.
4 (ii) The ratio of State share to non-State share of
5 the total project cost.
6 (c) Approval.--The following shall apply:
7 (1) The committee may approve a site development capital
8 project for which an application has been submitted if it
9 determines that the proposed project meets the requirements
10 of the definitions of site development capital project
11 contained in section 9102 (relating to definitions) and will
12 result in a significant positive impact as evidenced by the
13 review criteria contained in subsection (b).
14 (2) Upon the approval of an application by the
15 committee, the Secretary of the Budget shall execute a grant
16 agreement or contract with the applicant. State funding for
17 approved site development capital projects shall be paid in
18 accordance with subsection (d).
19 (3) The Commonwealth shall not contract with or enter
20 into a grant agreement with an applicant for a site
21 development capital project itemized in a capital budget
22 itemization act for the purpose of providing funding unless
23 the project has been approved by at least four members of the
24 committee.
25 (d) Time period.--State funding for approved site
26 development capital projects shall be paid over not less than a
27 36-month period unless the Secretary of the Budget or the
28 committee authorizes a shorter period.
29 (e) Costs.--Fees for professional services incurred for the
30 design and construction of site development capital projects
20030H1758B2278 - 162 -
1 shall be paid from non-State funds. Land acquisition shall be a
2 permissible State-funded expenditure if the acquisition cost is
3 supported by an appraisal done by a certified appraiser.
4 (f) Proportion.--Expenditure of State and non-State funds
5 shall be made on a proportional basis for direct land
6 acquisition costs and construction expenses.
7 (g) Verification.--Site development capital project cost
8 estimates must be verified by the Office of the Budget or its
9 designated agent before final approval is given to a project
10 application by the committee. Cost estimates shall include total
11 project cost, projected use for State and non-State funds and a
12 year-by-year schedule of costs for the entire project
13 construction phase.
14 (h) Bids.--The following shall apply:
15 (1) Notwithstanding any other provisions of law and
16 subject to paragraph (2), the solicitation of a minimum of
17 three written bids for all contracted construction work on
18 site development capital projects shall be the sole
19 requirement for the composition, solicitation, opening and
20 award of bids on such projects.
21 (2) The construction work shall be performed subject to
22 the act of March 3, 1978 (P.L.6, No.3), known as the Steel
23 Products Procurement Act.
24 (i) Review and audit.--Site development capital projects
25 shall be reviewed at regular intervals by the Office of the
26 Budget or its designated agent during the funding phase to
27 ensure financial and program compliance. A final closeout audit
28 shall be performed by the Office of the Budget or its designated
29 agent for all projects. Copies of closeout audits shall be
30 provided to the committee by the Office of the Budget upon
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1 completion.
2 (j) Grant administration.--In the event an applicant does
3 not administer the grant, the applicant shall enter into a
4 cooperation agreement with the entity administering the grant.
5 The cooperation agreement shall be subject to the approval of
6 the Office of the Budget.
7 § 9120. Capital Project Oversight and Review Committee.
8 (a) Establishment.--There is established a Capital Project
9 Oversight and Review Committee for the purpose of reviewing and
10 approving redevelopment assistance capital projects and site
11 development capital projects.
12 (b) Composition.--The following shall apply:
13 (1) The Capital Project Oversight and Review Committee
14 shall consist of:
15 (i) the Governor or a designee;
16 (ii) the Majority Leader of the Senate or a
17 designee;
18 (iii) the Minority Leader of the Senate or a
19 designee;
20 (iv) the Majority Leader of the House of
21 Representatives or a designee;
22 (v) the Minority Leader of the House of
23 Representatives or a designee.
24 (2) The Governor or the Governor's designee shall act as
25 chairman of the committee.
26 (3) The Secretary of the Budget shall act as the
27 committee secretary and shall provide staff support as
28 required by the committee. The Secretary of the Budget shall
29 not be a voting member of the committee.
30 (c) Meetings.--
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1 (1) The committee shall meet at the call of the chairman
2 but at least once during each quarter of the fiscal year.
3 (2) Four members shall constitute a quorum.
4 (3) The consent of four members of the committee shall
5 be required to approve an application for a redevelopment
6 assistance capital project or a site development capital
7 project.
8 CHAPTER 92
9 SPORTS FACILITIES
10 Sec.
11 9201. Definitions.
12 9202. Commonwealth funds.
13 9203. Eligibility.
14 9204. Requirement.
15 9205. Other agreements.
16 9206. Report.
17 9207. Financial commitment.
18 9208. Enforcement and penalties.
19 9209. Expiration.
20 9210. Scope.
21 § 9201. Definitions.
22 The following words and phrases when used in this chapter
23 shall have the meanings given to them in this section unless the
24 context clearly indicates otherwise:
25 "Baseline tax amount." The average of taxes referred to in
26 section 9204(7)(i) (relating to requirement) paid to the
27 Commonwealth in 1996, 1997 and 1998.
28 "Contracting authority." An authority created pursuant to 53
29 Pa.C.S. Ch. 56 (relating to municipal authorities), for the
30 purpose of constructing or renovating a facility or other
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1 authority established under the laws of this Commonwealth which
2 is eligible to apply for and receive redevelopment assistance
3 capital grants under Chapter 91 (relating to capital facilities)
4 under a contract with the office to receive Commonwealth grants
5 under this chapter.
6 "Contracting municipality." A city, county, township, town
7 or borough which contracts with the office to receive
8 Commonwealth funds to construct or renovate a facility.
9 "Facility." A stadium, arena or other place owned or leased
10 by a professional sports organization at which a professional
11 athletic event is conducted in the presence of individuals who
12 pay admission to view the event. The term includes a facility to
13 be constructed as well as an existing facility.
14 "Office." The Office of the Budget.
15 "Professional sports organization." A sole proprietorship,
16 corporation, limited liability company, partnership or
17 association that:
18 (1) owns a professional major league baseball or
19 national football franchise; and
20 (2) conducts professional athletic events of the
21 franchise at a facility.
22 § 9202. Commonwealth funds.
23 The receipt of grants of Commonwealth funds by a contracting
24 municipality or contracting authority under Chapter 91 (relating
25 to capital facilities) or this chapter to finance any cost
26 related to the construction or renovation of a facility shall be
27 subject to the requirements of this chapter.
28 § 9203. Eligibility.
29 In order for a facility to qualify for grants of Commonwealth
30 funds, the professional sports organization utilizing the
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1 facility must certify that:
2 (1) it maintains its headquarters, principal business
3 offices, training facilities and camps, except baseball
4 spring training, and related enterprises and activities,
5 except minor league activities, in this Commonwealth;
6 (2) except for a sole proprietorship, it is
7 incorporated, organized or otherwise created under the laws
8 of this Commonwealth; and
9 (3) it will continue to comply with the certifications
10 under paragraphs (1) and (2) for the duration of the lease
11 under section 9204(1) (relating to requirement) or for the
12 initial term of the debt, whichever is longer.
13 § 9204. Requirement.
14 In order for grants of Commonwealth funds to be used to
15 construct or renovate a facility, the contracting municipality
16 or contracting authority must contract with the professional
17 sports organization to ensure compliance by the professional
18 sports organization with the following terms and conditions:
19 (1) Agreement by the professional sports organization to
20 remain and conduct professional sporting events in the
21 facility for the duration of the lease or for the term of any
22 debt of the Commonwealth, whichever is longer, but in no
23 event longer than 29.5 years. The contract shall include
24 agreement by the professional sports organization that if the
25 agreement to remain and conduct professional sporting events
26 is violated, the contracting municipality or contracting
27 authority shall seek specific performance of the agreement to
28 remain and conduct professional sporting events or receive a
29 payment in the amount set forth in the agreement between the
30 contracting municipality or contracting authority and the
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1 professional sports organization and the amount equal to the
2 Commonwealth's principal contribution under Chapter 91
3 (relating to capital facilities) or this chapter to the
4 construction or renovation of the facility.
5 (2) Establishment of a procedure to provide written
6 notice by the professional sports organization to the
7 contracting municipality or contracting authority and the
8 Commonwealth of any sale, transfer or relocation of its
9 sports franchise or team immediately upon entering into any
10 commitment to sell, transfer or relocate the sports franchise
11 or team.
12 (3) Agreement that if the professional sports
13 organization sells or transfers its sports franchise or team,
14 the purchaser or transferee shall be bound by and shall
15 contract to be subject to the same terms and conditions
16 required by this chapter as a condition of the sale.
17 (4) Agreement that all costs of design and construction
18 of a new or renovated facility which are due to delays or
19 which exceed the projected costs set forth in the financial
20 plan or contract with the office shall be the responsibility
21 of the contracting municipality or contracting authority or
22 the professional sports organization.
23 (5) Agreement that during the term of the lease for the
24 facility, the professional sports organization or the
25 contracting municipality or contracting authority shall be
26 responsible for all capital improvements to the facility and
27 for all operating expenses relating to the use of the
28 facility, including security, cleaning, insurance,
29 maintenance and utilities.
30 (6) Agreement to set aside a specified minimum number of
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1 days, at reasonable times throughout the year, to be
2 available for the use of the facility by the contracting
3 municipality or contracting authority or by the Commonwealth.
4 Under this agreement, the Commonwealth shall receive the same
5 number of days and be entitled to the same terms as the
6 contracting municipality or contracting authority.
7 (7) Agreement to make an additional rental payment of
8 $25,000,000 reduced by available credits under subparagraphs
9 (i) through (iii) in the tax year immediately following the
10 expiration of the first ten-year period of occupancy or lease
11 of the facility and at the expiration of every ten-year
12 period thereafter. The professional sports organization shall
13 pay the additional rental payment to the contracting
14 municipality or contracting authority, which shall remit the
15 additional rental payment to the Commonwealth. The additional
16 rental payment made by the professional sports organization
17 shall be reduced by the following credits:
18 (i) The credits available for the first ten-year
19 period of occupancy or lease shall be amounts paid to the
20 Commonwealth which exceed the product of the baseline tax
21 amount multiplied by 7.5. The credits available for each
22 subsequent ten-year period of occupancy shall be the
23 amounts paid to the Commonwealth which exceed the product
24 of the baseline tax amount multiplied by 10. Available
25 credits include all of the following:
26 (A) An amount equal to all corporate net income
27 tax, capital stock and franchise tax and personal
28 income tax related to the ownership and operation of
29 the professional sports organization.
30 (B) An amount equal to:
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1 (I) all personal income tax withheld from
2 its employees by the professional sports
3 organization;
4 (II) all personal income tax withheld from
5 the employees of any provider of events at or
6 services to, or any operator of an enterprise in,
7 a facility or facility complex; and
8 (III) all personal income tax to which the
9 Commonwealth would be entitled from performers or
10 other participants, including visiting teams, at
11 an event or activity at the facility.
12 (C) An amount equal to all sales and use tax
13 related to the operation of the professional sports
14 organization and the facility and enterprises
15 developed as part of the facility complex. This
16 clause includes sales and use tax paid by any
17 provider of events or activities at or services to a
18 facility, including sales and use tax paid by vendors
19 and concessionaires and contractors at the facility.
20 (D) An amount equal to all tax paid, by the
21 professional sports organization or by any provider
22 of events or activities at or services to a facility,
23 to the Commonwealth related to the sale of any
24 liquor, wine or malt or brewed beverage in the
25 facility or facility complex.
26 (E) The amount paid by the professional sports
27 organization or by any provider of events or
28 activities at or services to a facility or facility
29 complex of any new tax enacted by the Commonwealth
30 after February 9, 1999.
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1 (ii) In addition to the credits available under
2 subparagraph (i), the professional sports organization
3 may credit an amount equal to one-third of the following,
4 incurred prior to the occupancy or lease of the facility:
5 (A) all personal income tax withheld from
6 personnel by the professional sports organization or
7 by a contractor or other entity involved in the
8 construction or renovation of the facility; and
9 (B) sales and use tax paid on materials and
10 other construction costs, whether withheld or paid by
11 the professional sports organization or other entity,
12 directly related to the construction or renovation of
13 the facility.
14 (iii) To the extent the amount of the credits
15 available for a specific ten-year period under
16 subparagraphs (i) and (ii) exceeds $25,000,000, the
17 excess may be carried over and added to the amount of
18 credits claimed under subparagraphs (i) and (ii) for the
19 following ten-year period. Any excess credit still
20 remaining shall be carried over to subsequent ten-year
21 periods until it is exhausted or until the expiration of
22 this chapter under section 9209 (relating to expiration),
23 whichever is sooner.
24 (iv) Payments shall be made by the professional
25 sports organization and remitted by the contracting
26 municipality or contracting authority at a time and in a
27 manner, including required documentation of all credits,
28 as the office prescribes. This subparagraph includes
29 annual reconciliation of all credits under subparagraphs
30 (i) through (iii). All tax records and information shall
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1 be subject to all confidentiality protections provided by
2 the act of March 4, 1971 (P.L.6, No.2), known as the Tax
3 Reform Code of 1971; however, the Department of Revenue
4 shall provide records and information to the office as
5 necessary for the office to enforce this chapter.
6 (8) An agreement that, upon sale of the facility or the
7 expiration or termination of the lease at the facility, the
8 Commonwealth shall have an option to purchase for $1 a one-
9 third interest in the facility.
10 § 9205. Other agreements.
11 The contracting municipality or the contracting authority and
12 the professional sports organization may enter into all other
13 agreements necessary and appropriate for the construction,
14 renovation and operation of the facility. The contracting
15 municipality or the contracting authority shall enter into all
16 contracts with the office required to receive Commonwealth
17 funds.
18 § 9206. Report.
19 The office shall file a report every ten years to the General
20 Assembly regarding the additional rental payments under this
21 chapter.
22 § 9207. Financial commitment.
23 The contracting municipality or contracting authority and the
24 professional sports organization must provide to the office all
25 of the following:
26 (1) A financial plan for all funding related to the
27 construction or renovation of the facility, to include
28 details regarding the financial commitment of the parties to
29 the project.
30 (2) An economic development plan for the area
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1 surrounding the facility.
2 (3) A plan to provide affordable seating within a
3 portion of the facility.
4 (4) A representation from the contracting municipality
5 or contracting authority that tax revenues to the
6 Commonwealth will be increased and a description of how the
7 grant of Commonwealth funds will provide the increase.
8 § 9208. Enforcement and penalties.
9 (a) Injunction.--The Commonwealth may enjoin a violation of
10 section 9204 (relating to requirement).
11 (b) Withhold funding.--The Commonwealth has the right to
12 withhold funding under this chapter and to exercise all rights
13 and remedies at law or in equity for any of the following:
14 (1) Failure of a professional sports organization to
15 comply with the provisions of this chapter in a timely and
16 appropriate manner.
17 (2) A violation of a covenant under any agreement with
18 or for the benefit of the Commonwealth relating to the
19 construction or renovation or use of the facility.
20 (3) Any other violation of law applicable to the
21 construction or renovation or use of the facility.
22 (c) Civil penalty.--A person that intentionally, recklessly
23 or negligently violates this chapter shall be subject to a civil
24 penalty of up to $100,000 per violation.
25 (d) Criminal penalty.--A person that intentionally or
26 knowingly provides false or fraudulent information or makes a
27 material misrepresentation under this chapter commits a
28 misdemeanor of the third degree.
29 § 9209. Expiration.
30 This chapter shall cease to apply to each participating
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1 professional sports organization 30 years following the
2 occupancy or lease of the facility.
3 § 9210. Scope.
4 This issuance of grants under this chapter is subject to
5 Chapter 91.
6 Section 2.1. The addition of 12 Pa.C.S. § 3503 is intended
7 to be in pari materia with section 103 of the act of October 6,
8 1998 (P.L.705, No.92), known as the Keystone Opportunity Zone
9 and Keystone Opportunity Expansion Zone Act.
10 Section 2.2. The Pennsylvania Economic Development Financing
11 Authority is authorized to incur debt on behalf of the
12 Commonwealth in an amount equal to the remaining debt authorized
13 by section 16 of act of March 1, 1988 (P.L.82, No.16), known as
14 the Pennsylvania Infrastructure Investment Authority Act, for
15 loans under 12 Pa.C.S. § 4321.
16 Section 3. Repeals are as follows:
17 (1) Sections 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7 and 6.8
18 of the act of August 23, 1967 (P.L.251, No.102), known as the
19 Economic Development Financing Law, are repealed.
20 (2) The following provisions of the act of June 29, 1996
21 (P.L.434, No.67), known as the Job Enhancement Act, are
22 repealed:
23 (i) Chapter 3.
24 (ii) Chapter 7.
25 (iii) Chapter 13.
26 (iv) Chapter 17.
27 (2.1) Chapter 3 of the act of October 6, 1998 (P.L.705,
28 No.92), known as the Keystone Opportunity Zone and Keystone
29 Opportunity Expansion Zone Act, is repealed.
30 (2.2) The following apply:
20030H1758B2278 - 174 -
1 (i) Except as set forth in subparagraph (ii), the
2 act of February 9, 1999 (P.L.1, No.1), known as the
3 Capital Facilities Debt Enabling Act, is repealed.
4 (ii) Section 301 of the Capital Facilities Debt
5 Enabling Act is saved from repeal.
6 (3) Section 305(e) of the act of June 26, 2001 (P.L.755,
7 No.77), known as the Tobacco Settlement Act, is repealed.
8 (4) All acts and parts of acts are repealed insofar as
9 they are inconsistent with this act.
10 Section 4. Chapters 3, 7, 13, and 17 of the act of June 29,
11 1996 (P.L.434, No.67), known as the Job Enhancement Act, are
12 continued by this codification as follows:
13 (1) The addition of 12 Pa.C.S. Ch. 3 is a continuation
14 of Chapter 3 of the Job Enhancement Act. The following apply:
15 (i) Except as otherwise provided in 12 Pa.C.S. Ch.
16 3, all activities initiated under Chapter 3 of the Job
17 Enhancement Act shall continue and remain in full force
18 and effect and may be completed under 12 Pa.C.S. Ch. 3.
19 Orders, regulations, rules and decisions which were made
20 under Chapter 3 of the Job Enhancement Act and which are
21 in effect on the effective date of section 3(2)(i) of
22 this act shall remain in full force and effect until
23 revoked, vacated or modified under 12 Pa.C.S. Ch. 3.
24 Contracts, obligations and collective bargaining
25 agreements entered into under Chapter 3 of the Job
26 Enhancement Act are not affected nor impaired by the
27 repeal of Chapter 3 of the Job Enhancement Act.
28 (ii) Any difference in language between 12 Pa.C.S.
29 Ch. 3 and Chapter 3 of the Job Enhancement Act is
30 intended only to conform to the style of the Pennsylvania
20030H1758B2278 - 175 -
1 Consolidated Statutes and is not intended to change or
2 affect the legislative intent, judicial construction or
3 administration and implementation of Chapter 3 of the Job
4 Enhancement Act.
5 (2) The addition of 12 Pa.C.S. Ch. 5 is a continuation
6 of Chapter 17 of the Job Enhancement Act. The following
7 apply:
8 (i) All activities initiated under the Chapter 17 of
9 the Job Enhancement Act shall continue and remain in full
10 force and effect and may be completed under 12 Pa.C.S.
11 Ch. 5. Orders, regulations, rules and decisions which
12 were made under Chapter 17 of the Job Enhancement Act and
13 which are in effect on the effective date of section
14 3(2)(iv) of this act shall remain in full force and
15 effect until revoked, vacated or modified under 12
16 Pa.C.S. Ch. 5. Contracts, obligations and collective
17 bargaining agreements entered into under Chapter 17 of
18 the Job Enhancement Act are not affected nor impaired by
19 the repeal of Chapter 17 of the Job Enhancement Act.
20 (ii) Except as set forth in subparagraph (iii), any
21 difference in language between 12 Pa.C.S. Ch. 5 and
22 Chapter 17 of the Job Enhancement Act is intended only to
23 conform to the style of the Pennsylvania Consolidated
24 Statutes and is not intended to change or affect the
25 legislative intent, judicial construction or
26 administration and implementation of Chapter 17 of the
27 Job Enhancement Act.
28 (iii) Subparagraph (ii) does not apply to the
29 following:
30 (A) The addition of 12 Pa.C.S. § 502.
20030H1758B2278 - 176 -
1 (B) The addition of 12 Pa.C.S. § 503.
2 (iv) The members of Small Business Council in office
3 on the effective date of section 3(2)(iv) of this act
4 shall continue in office under the addition of 12 Pa.C.S.
5 Ch. 5.
6 (3) The addition of 12 Pa.C.S. Ch. 21 is a continuation
7 of Chapter 7 of the Job Enhancement Act. The following apply:
8 (i) Except as otherwise provided in 12 Pa.C.S. Ch.
9 21, all activities initiated under the Chapter 7 of the
10 Job Enhancement Act shall continue and remain in full
11 force and effect and may be completed under 12 Pa.C.S.
12 Ch. 21. Orders, regulations, rules and decisions which
13 were made under Chapter 7 of the Job Enhancement Act and
14 which are in effect on the effective date of section
15 3(2)(ii) of this act shall remain in full force and
16 effect until revoked, vacated or modified under 12
17 Pa.C.S. Ch. 21. Contracts, obligations and collective
18 bargaining agreements entered into under Chapter 7 of the
19 Job Enhancement Act are not affected nor impaired by the
20 repeal of Chapter 7 of the Job Enhancement Act.
21 (ii) Except as set forth in subparagraph (iii), any
22 difference in language between 12 Pa.C.S. Ch. 21 and
23 Chapter 7 of the Job Enhancement Act is intended only to
24 conform to the style of the Pennsylvania Consolidated
25 Statutes and is not intended to change or affect the
26 legislative intent, judicial construction or
27 administration and implementation of Chapter 7 of the Job
28 Enhancement Act.
29 (iii) Subparagraph (ii) does not apply to any of the
30 following provisions:
20030H1758B2278 - 177 -
1 (A) The addition of 12 Pa.C.S. § 2106(2).
2 (B) The addition of 12 Pa.C.S. § 2109(b).
3 (4) The addition of 12 Pa.C.S. Ch. 23 is a continuation
4 of Chapter 13 of the Job Enhancement Act. The following
5 apply:
6 (i) Except as otherwise provided in 12 Pa.C.S. Ch.
7 23, all activities initiated under the Chapter 13 of the
8 Job Enhancement Act shall continue and remain in full
9 force and effect and may be completed under 12 Pa.C.S.
10 Ch. 23. Orders, regulations, rules and decisions which
11 were made under Chapter 13 of the Job Enhancement Act and
12 which are in effect on the effective date of section
13 3(2)(iii) of this act shall remain in full force and
14 effect until revoked, vacated or modified under 12
15 Pa.C.S. Ch. 23. Contracts, obligations and collective
16 bargaining agreements entered into under Chapter 13 of
17 the Job Enhancement Act are not affected nor impaired by
18 the repeal of Chapter 13 of the Job Enhancement Act.
19 (ii) Except as set forth in subparagraph (iii), any
20 difference in language between 12 Pa.C.S. Ch. 23 and
21 Chapter 13 of the Job Enhancement Act is intended only to
22 conform to the style of the Pennsylvania Consolidated
23 Statutes and is not intended to change or affect the
24 legislative intent, judicial construction or
25 administration and implementation of Chapter 13 of the
26 Job Enhancement Act.
27 (iii) Subparagraph (ii) does not apply to any of the
28 following provisions:
29 (A) The addition of 12 Pa.C.S. § 2305(a).
30 (B) The addition of 12 Pa.C.S. § 2306(a), (b)
20030H1758B2278 - 178 -
1 and (e).
2 (C) The addition of 12 Pa.C.S. § 2308(a) and
3 (b).
4 (D) The addition of 12 Pa.C.S. § 2309(b).
5 (E) The addition of 12 Pa.C.S. § 2310(b).
6 (iv) In continuation of section 1302 of the Job
7 Enhancement Act, all funds, accounts, assets,
8 encumbrances and liabilities located in or associated
9 with the Air Quality Improvement Fund, the Storage Tank
10 Loan Fund and the Recycling Incentive Development Account
11 shall be transferred to the Pollution Prevention
12 Assistance Account and shall be administered in
13 accordance with 12 Pa.C.S. §§ 2304 and 2309. The
14 Department of Community and Economic Development shall
15 report annually to the Department of Environmental
16 Protection on the status of the Pollution Prevention
17 Assistance Account and the loans made under 12 Pa.C.S. §
18 2309.
19 (v) In continuation of section 1309(a) of the Job
20 Enhancement Act, as of July 1, 1997, all funds, accounts,
21 assets, encumbrances and liabilities located in or
22 associated with the Capital Loan Fund shall be
23 transferred to the Small Business First Fund and shall
24 thereafter be administered in accordance with 12 Pa.C.S.
25 Ch. 23.
26 (vi) In continuation of section 1309(b) of the Job
27 Enhancement Act, annually on July 1, the State Treasurer
28 may transfer, upon approval by the Governor, up to
29 $2,000,000 from the Hazardous Sites Cleanup Fund into the
30 Pollution Prevention Assistance Account. This transfer
20030H1758B2278 - 179 -
1 shall be in addition to other appropriations, Federal
2 funding and private contributions received by the
3 account.
4 Section 4.1. The addition of 12 Pa.C.S. Ch. 35 is a
5 continuation of Chapter 3 of the act of October 6, 1998
6 (P.L.705, No.92), known as the Keystone Opportunity Zone and
7 Keystone Opportunity Expansion Zone Act. The following apply:
8 (1) Except as otherwise provided in 12 Pa.C.S. Ch. 35,
9 all activities initiated under Chapter 3 of the Keystone
10 Opportunity Zone and Keystone Opportunity Expansion Zone Act
11 shall continue and remain in full force and effect and may be
12 completed under 12 Pa.C.S. Ch. 35. Orders, regulations, rules
13 and decisions which were made under Chapter 3 of the Keystone
14 Opportunity Zone and Keystone Opportunity Expansion Zone Act
15 and which are in effect on the effective date of section
16 3(2.1) of this act shall remain in full force and effect
17 until revoked, vacated or modified under 12 Pa.C.S. Ch. 35.
18 Contracts, obligations and collective bargaining agreements
19 entered into under Chapter 3 of the Keystone Opportunity Zone
20 and Keystone Opportunity Expansion Zone Act are not affected
21 nor impaired by the repeal of Chapter 3 of the Keystone
22 Opportunity Zone and Keystone Opportunity Expansion Zone Act.
23 (2) Except as set forth in paragraph (3), any difference
24 in language between 12 Pa.C.S. Ch. 35 and Chapter 3 of the
25 Keystone Opportunity Zone and Keystone Opportunity Expansion
26 Zone Act is intended only to conform to the style of the
27 Pennsylvania Consolidated Statutes and is not intended to
28 change or affect the legislative intent, judicial
29 construction or administration and implementation of Chapter
30 3 of the Keystone Opportunity Zone and Keystone Opportunity
20030H1758B2278 - 180 -
1 Expansion Zone Act.
2 (3) Paragraph (2) does not apply to the following:
3 (i) The addition of 12 Pa.C.S. § 3512(e).
4 (ii) The addition of 12 Pa.C.S. § 3513(c).
5 (iii) The addition of 12 Pa.C.S. § 3514(c).
6 (iv) The addition of 12 Pa.C.S. § 3515(a) and (c).
7 Section 5. Sections 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7 and
8 6.8 of the act of August 23, 1967 (P.L.251, No.102), known as
9 the Economic Development Financing Law, are continued by the
10 addition of 12 Pa.C.S. Ch. 43. The following apply:
11 (1) Except as otherwise provided in 12 Pa.C.S. Ch. 43,
12 all activities initiated under sections 6.1 through 6.8 of
13 the Economic Development Financing Law shall continue and
14 remain in full force and effect and may be completed under 12
15 Pa.C.S. Ch. 43. Orders, regulations, rules and decisions
16 which were made under sections 6.1 through 6.8 of the
17 Economic Development Financing Law and which are in effect on
18 the effective date of section 3(1) of this act shall remain
19 in full force and effect until revoked, vacated or modified
20 under 12 Pa.C.S. Ch. 43. Contracts, obligations, collective
21 bargaining agreements and outstanding bonds entered into
22 under sections 6.1 through 6.8 of the Economic Development
23 Financing Law are not affected nor impaired by the repeal of
24 sections 6.1 through 6.8 of the Economic Development
25 Financing Law. The provisions of 12 Pa.C.S. Ch. 43 shall not
26 in any way impair or in any manner affect the rights and
27 remedies of obligees of the Pennsylvania Economic Development
28 Authority. Notwithstanding any other provision of 12 Pa.C.S.
29 Ch. 43, all such rights and remedies shall be preserved by 12
30 Pa.C.S. Ch. 43 and shall be and shall remain valid, binding
20030H1758B2278 - 181 -
1 and enforceable in all respects. As used in this paragraph,
2 "obligees of the Pennsylvania Economic Development Authority"
3 shall mean the holders of any notes, bonds, refunding notes
4 and bonds, interim certificates, debentures and other
5 evidences of indebtedness, obligees of contracts or other
6 obligations of the Pennsylvania Economic Development
7 Authority established under the provisions of sections 6.1
8 through 6.8 of the Economic Development Finance Law.
9 (2) Except as set forth in paragraph (3), any difference
10 in language between 12 Pa.C.S. Ch. 43 and sections 6.1
11 through 6.8 of the Economic Development Financing Law is
12 intended only to conform to the style of the Pennsylvania
13 Consolidated Statutes and is not intended to change or affect
14 the legislative intent, judicial construction or
15 administration and implementation of sections 6.1 through 6.8
16 of the Economic Development Financing Law.
17 (3) Paragraph (2) does not apply to any of the following
18 provisions:
19 (i) The addition of 12 Pa.C.S. § 4303(c).
20 (ii) The addition of 12 Pa.C.S. § 4305(b) and (c).
21 (iii) The addition of 12 Pa.C.S. § 4320.
22 (iv) The addition of 12 Pa.C.S. § 4321.
23 (v) The addition of 12 Pa.C.S. § 4322.
24 (vi) The addition of 12 Pa.C.S. § 4323.
25 (vii) The addition of 12 Pa.C.S. § 4324.
26 (viii) The addition of 12 Pa.C.S. § 4325.
27 (4) The members of board of the Pennsylvania Economic
28 Development Financing Authority in office on the effective
29 date of section 3(1) of this act shall continue in office
30 under the addition of 12 Pa.C.S. Ch. 43.
20030H1758B2278 - 182 -
1 Section 5.1. The addition of 72 Pa.C.S. Ch. 91 is a
2 continuation of Chapter 3 of the act of February 9, 1999 (P.L.1,
3 No.1), known as the Capital Facilities Debt Enabling Act. The
4 following apply:
5 (1) Except as otherwise provided in 72 Pa.C.S. Ch. 91,
6 all activities initiated under Chapter 3 of the Capital
7 Facilities Debt Enabling Act shall continue and remain in
8 full force and effect and may be completed under 72 Pa.C.S.
9 Ch. 91.
10 (2) Orders, regulations, rules and decisions which were
11 made under Chapter 3 of the Capital Facilities Debt Enabling
12 Act and which are in effect on the effective date of section
13 3(2.2) of this act shall remain in full force and effect
14 until revoked, vacated or modified under 72 Pa.C.S. Ch. 91.
15 (3) Contracts, obligations and collective bargaining
16 agreements entered into under Chapter 3 of the Capital
17 Facilities Debt Enabling Act are not affected nor impaired by
18 the repeal of the Capital Facilities Debt Enabling Act.
19 (4) Except as set forth in paragraph (5), any difference
20 in language between 72 Pa.C.S. Ch. 91 and Chapter 3 of the
21 Capital Facilities Debt Enabling Act is intended only to
22 conform to the style of the Pennsylvania Consolidated
23 Statutes and is not intended to change or affect the
24 legislative intent, judicial construction or administration
25 and implementation of Chapter 3 of the Capital Facilities
26 Debt Enabling Act.
27 (5) Paragraph (4) does not apply to any of the following
28 provisions:
29 (i) The addition of 72 Pa.C.S. § 9102.
30 (ii) The addition of 72 Pa.C.S. § 9103(b)(1)(ii).
20030H1758B2278 - 183 -
1 (iii) The addition of 72 Pa.C.S. § 9107(c)(5).
2 (iv) The addition of 72 Pa.C.S. § 9113.
3 (v) The addition of 72 Pa.C.S. § 9117.
4 (vi) The addition of 72 Pa.C.S. § 9118(a), (b), (c),
5 (d), (g), (h) and (j).
6 (vii) The addition of 72 Pa.C.S. § 9119.
7 (viii) The addition of 72 Pa.C.S. § 9120.
8 Section 5.2. The addition of 72 Pa.C.S. Ch. 92 is a
9 continuation of Chapter 5 of the act of February 9, 1999 (P.L.1,
10 No.1), known as the Capital Facilities Debt Enabling Act. The
11 following apply:
12 (1) Except as otherwise provided in 72 Pa.C.S. Ch. 92,
13 all activities initiated under Chapter 5 of the Capital
14 Facilities Debt Enabling Act shall continue and remain in
15 full force and effect and may be completed under 72 Pa.C.S.
16 Ch. 92.
17 (2) Orders, regulations, rules and decisions which were
18 made under Chapter 5 of the Capital Facilities Debt Enabling
19 Act and which are in effect on the effective date of section
20 3(2.2) of this act shall remain in full force and effect
21 until revoked, vacated or modified under 72 Pa.C.S. Ch. 92.
22 (3) Contracts, obligations and collective bargaining
23 agreements entered into under Chapter 5 of the Capital
24 Facilities Debt Enabling Act are not affected nor impaired by
25 the repeal of Chapter 5 of the Capital Facilities Debt
26 Enabling Act.
27 (4) Any difference in language between 72 Pa.C.S. Ch. 92
28 and Chapter 5 of the Capital Facilities Debt Enabling Act is
29 intended only to conform to the style of the Pennsylvania
30 Consolidated Statutes and is not intended to change or affect
20030H1758B2278 - 184 -
1 the legislative intent, judicial construction or
2 administration and implementation of Chapter 5 of the Capital
3 Facilities Debt Enabling Act.
4 Section 6. The following apply to the Tobacco Settlement
5 Investment Board:
6 (1) The board is authorized to invest, in addition to
7 any amount invested on the effective date of this section in
8 venture capital, $30,000,000 in primary growth stage
9 investments:
10 (i) in which at least 70% of the investments will be
11 made in companies located primarily in this Commonwealth
12 or in companies willing to relocate significant business
13 operations to this Commonwealth; and
14 (ii) which are equitably distributed geographically
15 throughout this Commonwealth.
16 (2) Primary growth stage investments must comply with
17 the requirements of section 305(a) and (g) of the act of June
18 26, 2001 (P.L.755, No.77), known as the Tobacco Settlement
19 Act.
20 Section 7. The following shall apply:
21 (1) Pursuant to the provisions of section 7(a)(3) of
22 Article VIII of the Constitution of Pennsylvania, the
23 question of incurring indebtedness of $250,000,000 for grants
24 and loans for the acquisition, repair, construction,
25 reconstruction, rehabilitation, extension, expansion and
26 improvement of water and wastewater infrastructure, including
27 water supply and sewage treatment systems, subject to
28 implementation through 12 Pa.C.S. § 4321, shall be submitted
29 to the electors at the next primary election following the
30 effective date of this section.
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1 (2) The Secretary of the Commonwealth shall forthwith
2 certify the question to the county boards of elections.
3 (3) The question shall be in substantially the following
4 form:
5 Do you favor the incurring of indebtedness by the
6 Commonwealth in the amount of $250,000,000 for use as
7 grants and loans for construction, expansion and
8 improvement of water and wastewater infrastructure,
9 including water supply and sewage treatment systems?
10 Section 8. Appropriations are as follows:
11 (1) The sum of $10,000,000, or as much thereof as may be
12 necessary, is hereby appropriated to the Economic Enhancement
13 Fund for the fiscal year July 1, 2003, to June 30, 2004, to
14 carry out the provisions of 12 Pa.C.S. § 4324.
15 (2) The sum of $2,000,000, or as much thereof as may be
16 necessary, is hereby appropriated to the Department of
17 Community and Economic Development for the fiscal year July
18 1, 2003, to June 30, 2004, for the following:
19 (i) For the Base Retention and Conversion
20 Pennsylvania Action Committee to develop a Statewide
21 strategy.
22 (ii) For matching grants for economic impact
23 studies, environmental impact studies, encroachment
24 studies, community and regional interaction with military
25 bases, infrastructure needs at military bases and job
26 training needs at or near military bases. Grants under
27 this subparagraph:
28 (A) shall be awarded by the Base Retention and
29 Conversion Pennsylvania Action Committee;
30 (B) require a 25% local match; and
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1 (C) are limited to less than $75,000 per
2 military base.
3 Section 8.1. The addition of 12 Pa.C.S. § 3513(c) shall
4 apply retroactively to May 31, 2003.
5 Section 9. This act shall take effect July 1, 2003, or
6 immediately, whichever is later.
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