PRIOR PRINTER'S NOS. 229, 1118 PRINTER'S NO. 1159
No. 10 Session of 1997
INTRODUCED BY ROBBINS, HART, MUSTO, SALVATORE, O'PAKE, HELFRICK,
COSTA, WHITE, KUKOVICH, THOMPSON, AFFLERBACH AND MADIGAN,
JANUARY 29, 1997
SENATOR TILGHMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED,
JUNE 9, 1997
AN ACT
1 Amending the act of June 29, 1996 (P.L.434, No.67), entitled "An
2 act to enhance job creation and economic development by
3 providing for an annual financing strategy, for opportunity
4 grants, for job creation tax credits, for small business
5 assistance and for the Small Business Advocacy Council;
6 conferring powers and duties on various administrative
7 agencies and authorities; further providing for various
8 funds; and making repeals," further defining "financing
9 programs"; and providing for the Community Development Bank
10 Grant and Loan Program.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The definition of "financing program" in section
14 103 of the act of June 29, 1996 (P.L.434, No.67), known as the
15 Job Enhancement Act, is amended to read:
16 Section 103. 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 * * *
21 "Financing programs." All of the following programs:
1 (1) The Pennsylvania Industrial Development Authority.
2 (2) Pennsylvania Economic Development Financing
3 Authority.
4 (3) Pennsylvania Minority Business Development Authority
5 Board.
6 (4) The Infrastructure Development Program.
7 (5) The Opportunity Grant Program.
8 (6) The Industrial Sites Reuse Program.
9 (7) The Customized Job Training Program.
10 (8) The Machinery and Equipment Loan Program.
11 (9) The Small Business First Program.
12 (10) Job Creation Tax Credit.
13 (10.1) The Community Development Bank Grant and Loan
14 Program.
15 (11) Any other similar program operated by the
16 department.
17 * * *
18 Section 2. The act is amended by adding a chapter to read:
19 CHAPTER 15
20 COMMUNITY DEVELOPMENT BANK GRANT
21 AND LOAN PROGRAM
22 Section 1501. Declaration of purpose.
23 The purpose of this chapter is to create a program to more
24 effectively address the capital needs of local community
25 development and economic development institutions by encouraging
26 and supporting the creation, development and operations of
27 community development financial institutions through a program
28 of grants and loans.
29 Section 1502. 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 "Authority." The Pennsylvania Economic Development Financing
4 Authority.
5 "Board." The Board of Directors of the Pennsylvania Economic
6 Development Financing Authority.
7 "Community development financial institution." A community
8 development financial institution certified in accordance with
9 the Community Development Banking and Financial Institutions Act
10 of 1994 (Public Law 103-325, 108 Stat 2163).
11 "Community development loan." A loan from a community
12 development financial institution to low-income individuals,
13 businesses and nonprofit organizations for the purpose of
14 revitalizing distressed communities and buildings.
15 "Department." The Department of Community and Economic
16 Development of the Commonwealth.
17 "Eligible institution." A community development financial
18 institution which has been accredited by the Department of
19 Community and Economic Development under section 1506.
20 "Participating investors." Public or private entities which
21 elect to participate with the authority in the loan programs set
22 forth in this chapter.
23 "Program." The Community Development Bank Grant and Loan
24 Program established under this chapter.
25 Section 1503. Establishment.
26 There is hereby established within the Pennsylvania Economic
27 Development Financing Authority, a grant and loan program to be
28 administered in accordance with section 7 of the act of August <--
29 23, 1967 (P.L.251, No.102), known as the Economic Development
30 Financing Law.
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1 Section 1504. Operation of Pennsylvania Community Development
2 Bank.
3 (a) Operation.--The authority shall have the power to
4 operate the program under the name of the Pennsylvania Community
5 Development Bank.
6 (b) Operational committee.--The authority may operate the
7 program by establishing an 11 A 15-member committee of the board <--
8 to which the authority may delegate all or part of its powers to
9 operate the program. The committee shall consist of the
10 Secretary of Community and Economic Development, who shall act
11 as chairman, the Secretary of Banking, ONE MEMBER APPOINTED BY <--
12 THE PRESIDENT PRO TEMPORE OF THE SENATE, ONE MEMBER APPOINTED BY
13 THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, ONE MEMBER
14 APPOINTED BY THE MINORITY LEADER OF THE SENATE, ONE MEMBER
15 APPOINTED BY THE MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES
16 and nine members appointed by the Governor representing
17 participating investors and members of the general public.
18 (c) Limitation on voting.--No representative of an eligible
19 institution may serve as a voting member of the committee.
20 (d) Terms.--The members shall serve at the pleasure of the
21 appointing authority.
22 (e) Expenses.--The members of the committee shall be
23 entitled to no compensation for their services but shall be
24 entitled to reimbursement for all necessary expenses incurred in
25 connection with the performance of their duties as members of
26 the committee.
27 (f) Quorum.--A majority of the members of the committee
28 shall constitute a quorum for the transaction of any program
29 business.
30 Section 1505. Deposits.
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1 (a) Special accounts.--Money appropriated to the program may
2 be deposited by the authority in banks or trust companies in
3 special accounts. The special accounts must be continuously
4 secured by a pledge of direct obligations of the United States
5 or the Commonwealth, having an aggregate market value, exclusive
6 of accrued interest, at least equal to the balance on deposit in
7 the account. The securities shall be deposited with the
8 authority or be held by a trustee or agent approved by the
9 authority. Banks and trust companies are authorized to give
10 security under this paragraph.
11 (b) Disbursements.--Money in accounts under subsection (a)
12 shall be paid out on order of the authority.
13 Section 1506. Accreditation.
14 (a) General rule.--The department shall accredit community
15 development financial institutions to participate in the program
16 established under section 1503. The department may revoke
17 accreditation from community development financial institutions
18 which no longer meet accreditation criteria.
19 (b) Criteria.--Department criteria for accreditation shall
20 include certification under the Community Development Banking
21 and Financial Institutions Act of 1994 (Public Law 103-325, 108
22 Stat. 2163) and such other criteria as the department deems
23 appropriate.
24 Section 1507. Grants.
25 The authority may issue grants to eligible institutions or to
26 nonprofit organizations which are attempting to obtain Federal
27 certification or department accreditation as a community
28 development financial institution. The authority may issue
29 grants for the purpose of developing or enhancing the ability of
30 the community development financial institution or nonprofit
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1 organization to be accredited as an eligible institution and to
2 participate in the loan program established by this chapter.
3 Section 1508. Authority loans.
4 The authority may make loans to eligible institutions from
5 moneys appropriated to the program on such terms and conditions
6 as the authority may determine. Any such loans shall be made by
7 the authority pursuant to the act of August 23, 1967 (P.L.251,
8 No.102), known as the Economic Development Financing Law. Loans
9 to eligible institutions may be made by the authority as the
10 sole lender or may be made in cooperation with participating
11 investors pursuant to agreements entered into in accordance with
12 this chapter. Loan repayments shall be used by the authority to
13 make new loans to eligible institutions.
14 Section 1509. Community development loans.
15 Eligible institutions that receive loans from the authority
16 under section 1508 shall make community development loans
17 pursuant to guidelines established by the department. Community <--
18 development projects which are currently assisted through
19 existing public financial programs shall be ineligible for
20 assistance under this chapter.
21 Section 1510. Agreements.
22 The authority may enter into agreements and contacts as it
23 shall determine are appropriate for the exercise of the powers
24 granted to it by this chapter, including agreements with
25 participating investors.
26 SECTION 1511. REPORT. <--
27 WITHIN 90 DAYS OF THE END OF THE FISCAL YEAR, THE AUTHORITY
28 SHALL PREPARE, IN CONSULTATION WITH THE COMMITTEE, AN ANNUAL
29 REPORT TO THE MAJORITY CHAIRMAN AND MINORITY CHAIRMAN OF THE
30 APPROPRIATIONS COMMITTEE OF THE SENATE AND THE MAJORITY CHAIRMAN
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1 AND MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE
2 HOUSE OF REPRESENTATIVES, WHICH SHALL BE FOR THE IMMEDIATELY
3 PRIOR FISCAL YEAR. THE REPORT, WHICH SHALL BE FOR THE
4 IMMEDIATELY PRIOR FISCAL YEAR, SHALL INCLUDE THE AMOUNT OF FUNDS
5 APPROPRIATED TO THE PROGRAM DEPOSITED BY THE AUTHORITY IN
6 SPECIAL ACCOUNTS IN BANKS OR TRUST COMPANIES, THE AMOUNT OF
7 DISBURSEMENTS MADE FROM THE SPECIAL ACCOUNTS, THE NUMBER, NAME
8 AND LOCATION OF COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS
9 ACCREDITED BY THE DEPARTMENT, THE NUMBER AND AMOUNT OF GRANTS
10 MADE BY THE DEPARTMENT TO COMMUNITY DEVELOPMENT FINANCIAL
11 INSTITUTIONS OR NONPROFIT ORGANIZATIONS.
12 Section 1511 1512. Additional powers. <--
13 In order to operate the program, the authority shall have all
14 other powers granted to it pursuant to the act of August 23,
15 1967 (P.L.251, No.102), known as the Economic Development
16 Financing Law. The authority may operate other community
17 development programs under the name of the Pennsylvania
18 Community Development Bank, including programs authorized and
19 funded under the Federal Rural Development Block Grants Program.
20 Section 3. This act shall take effect July 1, 1997, or
21 immediately, whichever is later.
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