PRINTER'S NO. 2870
No. 2103 Session of 1986
INTRODUCED BY YANDRISEVITS, MANDERINO, IRVIS, PIEVSKY, ITKIN,
DOMBROWSKI, D. R. WRIGHT, SEVENTY, PETRONE, GRUITZA, LLOYD,
CAWLEY, VEON, COWELL, STABACK, BELFANTI, CALTAGIRONE, TRELLO,
PETRARCA, VAN HORNE, COLE, DeLUCA, FREEMAN, GRUPPO, STEWART,
CAPPABIANCA, KASUNIC, TELEK, MRKONIC, WAMBACH, GEORGE,
LINTON, LUCYK, LESCOVITZ, McCALL, DUFFY, MICHLOVIC, WOZNIAK,
MORRIS, BATTISTO, COLAFELLA, PRESTON, STEIGHNER, GALLAGHER
AND COY, FEBRUARY 5, 1986
REFERRED TO COMMITTEE ON APPROPRIATIONS, FEBRUARY 5, 1986
AN ACT
1 Establishing a program to coordinate efforts to revitalize
2 distressed industries; providing for an analysis of eligible
3 industries and for reports; and making an appropriation.
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 Distressed
8 Industry Assistance Act.
9 Section 2. Legislative findings and intent.
10 (a) Findings.--The General Assembly finds and declares that:
11 (1) There exists within this Commonwealth certain
12 industries which have, in the past, employed many more
13 citizens of this Commonwealth than they do today.
14 (2) This decline in employment in these industries has
15 created hardship to individuals and families due to long-term
1 unemployment and underemployment.
2 (3) The continued, unchecked decline of these industries
3 will cause greater and greater hardship on even more
4 Commonwealth citizens.
5 (4) While the decline of many of these industries cannot
6 be stemmed by the action of State government, it has been
7 found that a minimal amount of assistance, particularly for
8 modernization of machinery, may save many jobs and possibly
9 create many more.
10 (b) Legislative intent.--It is the intent of the General
11 Assembly to provide a program that will coordinate efforts to
12 revitalize those distressed industries within this Commonwealth
13 through the targeting of State assistance to industries which
14 are found to be in a position where State aid will enable the
15 industry to continue to expand within this Commonwealth.
16 Section 3. Definitions.
17 The following words and phrases when used in this act shall
18 have the meanings given to them in this section unless the
19 context clearly indicates otherwise:
20 "Board." The Pennsylvania Economic and Infrastructure
21 Development Board established by the act of (P.L. , No. ).
22 "Distressed industry." An industry with a standard
23 industrial classification of two, three or four digits as
24 created and updated by the Federal Department of Labor, which
25 has had an employment decline of at least 15% in the most recent
26 ten years for which data is available.
27 Section 4. Establishment of program.
28 There is hereby established, under the direction of the
29 board, a program to be known as the Distressed Industry Aid
30 Program, for the purpose of analyzing industries to determine
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1 whether State aid can make a difference in the viability of that
2 industry in Pennsylvania.
3 Section 5. Industry selection.
4 (a) Selection of eligible industries.--The board shall
5 create a list of all industries whose employment loss will
6 qualify the industry for inclusion as a distressed industry. The
7 list shall also contain the number of plant sites in each
8 classification and an estimate of the number of vacant plant
9 sites within this Commonwealth which, if still in operation,
10 would be considered part of that particular classification. The
11 Department of Labor and Industry and the Department of Commerce
12 shall provide the board with any assistance and data requested
13 by the board.
14 (b) Analysis of eligible industries.--The board shall
15 analyze the list of eligible industries to determine those which
16 should be targeted for State aid by using the following
17 criteria:
18 (1) Interest shown by either labor organizations,
19 management or management organizations in the program.
20 (2) The size of capital needed to modernize, retool or
21 otherwise change in order to remain or expand within this
22 Commonwealth.
23 (3) The market viability of the particular product.
24 (4) The past history of the industry, including past
25 attempts at capital formation and the results.
26 (5) The number of citizens of this Commonwealth who are
27 unemployed or underemployed and have the skills necessary, or
28 whose skill can be easily upgraded, to work in the particular
29 industry.
30 (c) Consultation and contracts.--In determining the list of
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1 targeted industries the board shall consult members of the
2 industry, academics and any other persons acquainted with the
3 problems of the industry. The board may also contract with
4 experts in the particular industry from within or outside this
5 Commonwealth for the purpose of performing market and economic
6 research aimed at assessing the viability of the particular
7 industry in Pennsylvania.
8 Section 6. Final determination.
9 If the board determines that an industry can be made more
10 competitive, the board shall forward the recommendation, along
11 with supporting documentation, to the Governor, the Secretary of
12 the Senate and the Chief Clerk of the House of Representatives.
13 The recommendation shall include suggestions for the type of new
14 program or law, or changes to the old program or law, that will
15 be necessary to assist the industry.
16 Section 7. Yearly report.
17 By March 1 of each year the board shall provide a written
18 report of the assistance provided under this act to the
19 Governor, the Secretary of the Senate and the Chief Clerk of the
20 House of Representatives. This report shall contain, at a
21 minimum, the following:
22 (1) The list of eligible industries.
23 (2) A list of those industries analyzed, but not
24 recommended for assistance, and supporting documentation for
25 this decision.
26 (3) Recommendations for changes to this and any other
27 State economic development program.
28 Section 8. Appropriation.
29 The sum of $500,000 is hereby appropriated from the
30 Pennsylvania Economic Revitalization Fund to the Pennsylvania
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1 Economic and Infrastructure Development Board for the fiscal
2 year July 1, 1986, to June 30, 1987, for determining industries
3 to be targeted for State assistance as specified in this act.
4 Section 9. Effective date.
5 This act shall take effect immediately.
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