PRINTER'S NO. 6
No. 3 Session of 1987
INTRODUCED BY YANDRISEVITS, IRVIS, PIEVSKY, MANDERINO,
F. TAYLOR, O'DONNELL, 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, COY, DEAL, OLASZ, MAYERNIK,
RUDY AND LIVENGOOD, MARCH 18, 1987
REFERRED TO COMMITTEE ON BUSINESS AND COMMERCE, MARCH 18, 1987
AN ACT
1 Establishing a program to coordinate efforts to revitalize
2 distressed industries; and providing for an analysis of
3 eligible industries and reports.
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 "Department." The Department of Commerce of the Commonwealth
21 of Pennsylvania.
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 department, 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 department 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 shall provide the department
12 with any assistance and data requested by the department.
13 (b) Analysis of eligible industries.--The department shall
14 analyze the list of eligible industries to determine those which
15 should be targeted for State aid by using the following
16 criteria:
17 (1) Interest shown by either labor organizations,
18 management or management organizations in the program.
19 (2) The size of capital needed to modernize, retool or
20 otherwise change in order to remain or expand within this
21 Commonwealth.
22 (3) The market viability of the particular product.
23 (4) The past history of the industry, including past
24 attempts at capital formation and the results.
25 (5) The number of citizens of this Commonwealth who are
26 unemployed or underemployed and have the skills necessary, or
27 whose skill can be easily upgraded, to work in the particular
28 industry.
29 (c) Consultation and contracts.--In determining the list of
30 targeted industries the department shall consult members of the
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1 industry, academics and any other persons acquainted with the
2 problems of the industry. The department may also contract with
3 experts in the particular industry from within or outside this
4 Commonwealth for the purpose of performing market and economic
5 research aimed at assessing the viability of the particular
6 industry in Pennsylvania.
7 Section 6. Final determination.
8 If the department determines that an industry can be made
9 more competitive, the department shall forward the
10 recommendation, along with supporting documentation, to the
11 Governor, the Secretary of the Senate and the Chief Clerk of the
12 House of Representatives. The recommendation shall include
13 suggestions for the type of new program or law, or changes to
14 the old program or law, that will be necessary to assist the
15 industry.
16 Section 7. Yearly report.
17 By March 1 of each year the department shall provide a
18 written 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. Effective date.
29 This act shall take effect immediately.
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