PRINTER'S NO. 841
No. 754 Session of 1983
INTRODUCED BY KENNEDY, MARMION, CAWLEY, PETRARCA, NOYE AND BOOK, APRIL 13, 1983
REFERRED TO COMMITTEE ON EDUCATION, APRIL 13, 1983
AN ACT 1 Providing for the repayment of grants following revitalization 2 of distressed commercial areas and the creation of increased 3 commercial job opportunities. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Short title. 7 This act shall be known and may be cited as the Distributive 8 Education Improvement Act. 9 Section 2. Legislative intent. 10 The General Assembly of the Commonwealth recognizes the need 11 to provide financial assistance to municipalities to revitalize 12 distressed commercial areas. The General Assembly also 13 recognizes that through grants provided by the Commonwealth for 14 revitalizing distressed commercial areas, businesses located in 15 those commercial areas upon the completion of the improvements 16 financed by the grants, benefit through increased sales; and the 17 municipality in which the commercial center is located also 18 benefits through increased tax revenues resulting from the new
1 commercial activity and increased value of commercial property. 2 Therefore a need exists to have a portion of the funds which 3 made possible the stabilization of the once distressed 4 commercial areas repaid at the completion of the improvements 5 financed by the grants. A need to create more job opportunities 6 and educational programs in the area of distributive education 7 for students in this Commonwealth also exists and it is the 8 intent of the General Assembly to create new commercial job 9 opportunities and improve and expand distributive education 10 programs by financing the programs through the repayment of 11 revitalization grants for distressed commercial areas currently 12 being funded in this Commonwealth. 13 Section 3. Grant qualification. 14 Any applicant receiving a grant administered by the 15 Department of Community Affairs from funds appropriated by the 16 General Assembly after the effective date of this act for 17 programs aimed at revitalizing distressed commercial areas 18 including grants to municipalities and redevelopment authorities 19 for downtown revitalization projects and public-private 20 partnership developments under the department's Small 21 Communities and Community Revitalization Assistance Programs, 22 shall be subject to repayment as provided for in section 4. 23 Section 4. Method of repayment. 24 (a) Annual payments.--Applicants receiving grants as 25 described in section 3, beginning 12 months after receipt of the 26 final grant payment, shall repay 10% of the original grant award 27 per year for a period of five consecutive years. 28 (b) No interest.--The amount to be repaid by the applicant 29 shall not include interest. 30 (c) Extension of time.--The department shall have the 19830H0754B0841 - 2 -
1 discretion to extend for a period not to exceed 12 months the 2 date of any installment due, where the department determines 3 there is sufficient cause for an extension of the repayment 4 terms. 5 Section 5. Special fund. 6 All grant repayments made by recipients of grants as 7 described in section 3, shall upon receipt by the department, be 8 deposited in a special fund to be established in the Department 9 of Education and administered by the Department of Education for 10 the purpose of furthering distributive education programs in the 11 Commonwealth which will result in increased commercial job 12 opportunities for students. No additional personnel shall be 13 hired by the Department of Education with these funds. 14 Section 6. Distributive education programs. 15 (a) Develop program.--The Department of Education shall 16 within 12 months following the effective date of this act, 17 develop a competitive distributive education program for schools 18 in the Commonwealth which shall be funded from revenue from the 19 special fund described in section 5. The purpose of the program 20 shall be to: 21 (1) Improve or expand the distributive education 22 programs currently being administered by schools in this 23 Commonwealth. 24 (2) Increase commercial job opportunities available to 25 students in this Commonwealth. 26 (b) Regulations.--The Department of Education shall develop 27 necessary implementing regulations and the funding formula for 28 distributing annually to schools in this Commonwealth those 29 funds deposited in the special fund described in section 5, for 30 programs which are developed by schools that meet the objectives 19830H0754B0841 - 3 -
1 described in this section. 2 Section 7. Penalty. 3 Any recipient of a grant as described in section 3 that fails 4 to satisfy the terms of the repayment schedule established by 5 the department shall until all grants are repaid be ineligible 6 to receive any State funds from any source. This penalty may be 7 waived by the Department of Community Affairs if the applicant 8 is deemed to be in a depressed area. 9 Section 8. Severability. 10 If any provision of this act or the application thereof to 11 any person or circumstances is held invalid, such invalidity 12 shall not affect other provisions or applications of the act 13 which can be given effect without the invalid provision or 14 application, and to this end the provisions of this act are 15 declared to be severable. 16 Section 9. Effective date. 17 This act shall take effect in 60 days. C18L14JLW/19830H0754B0841 - 4 -