PRIOR PRINTER'S NOS. 722, 1192 PRINTER'S NO. 1873
No. 613 Session of 2001
INTRODUCED BY STERN, ALLEN, ARGALL, ARMSTRONG, M. BAKER, BARRAR,
BASTIAN, BEBKO-JONES, BELFANTI, BROWNE, BUNT, CALTAGIRONE,
CAPPABIANCA, CAPPELLI, L. I. COHEN, COLAFELLA, COSTA, CRUZ,
DeWEESE, EACHUS, FAIRCHILD, FLEAGLE, FLICK, FORCIER, FRANKEL,
FREEMAN, GEIST, GEORGE, GORDNER, GRUCELA, HALUSKA, HARHAI,
HENNESSEY, HERMAN, HESS, HORSEY, HUTCHINSON, JAMES, JOSEPHS,
KREBS, LAUGHLIN, LEDERER, LEH, MANN, MARSICO, McCALL,
McILHATTAN, MELIO, MICOZZIE, R. MILLER, S. MILLER, MUNDY,
NAILOR, ORIE, PETRARCA, PHILLIPS, PIPPY, RAYMOND, ROSS,
RUBLEY, SAINATO, SANTONI, SATHER, SAYLOR, SCHULER, SHANER,
B. SMITH, SOLOBAY, STABACK, STAIRS, STEELMAN, R. STEVENSON,
E. Z. TAYLOR, THOMAS, TRELLO, TULLI, VANCE, WANSACZ, WATSON,
C. WILLIAMS, WILT, WOJNAROSKI, YEWCIC, YUDICHAK, ZUG,
MACKERETH, BELARDI, T. STEVENSON, COLEMAN, SEMMEL AND NICKOL,
FEBRUARY 13, 2001
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
MAY 7, 2001
AN ACT
1 Establishing the Career and Vocational Education - Employer
2 Partnership Program; and providing for business tax credits.
3 TABLE OF CONTENTS
4 Section 1. Short title.
5 Section 2. Declaration of policy.
6 Section 3. Definitions.
7 Section 4. Establishment of Career and Vocational
8 Education - Employer Partnership Program.
9 Section 5. Powers and duties of department.
10 Section 6. Tax credit.
11 Section 7. Grant of tax credit.
1 Section 8. Unused credit.
2 Section 9. Decision in writing.
3 Section 10. Additional powers and duties of department.
4 Section 11. Effective date.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Career and
9 Vocational Education and Employer Partnership Act.
10 Section 2. Declaration of policy.
11 (a) Findings.--The General Assembly finds and declares as
12 follows:
13 (1) A well-trained and well-educated work force is
14 essential to the economic well-being of this Commonwealth.
15 (2) Many vocational schools and community colleges in
16 this Commonwealth do not have the financial resources to
17 provide their students with the advanced curriculum needed
18 for the workplace and high technology industries of the 21st
19 century.
20 (3) Sharing resources is a cost-effective and proven
21 method of ensuring that all of the Commonwealth's residents
22 have access to a high-quality curriculum that provides hands-
23 on experience with modern and sophisticated scientific and
24 technical equipment and that provides teachers with the
25 training and education to incorporate the use of these types
26 of equipment into the teaching curricula.
27 (4) Significant opportunities exist for collaboration
28 between career and vocational education providers and the
29 business community of the Commonwealth to enhance the
30 education of this Commonwealth's residents.
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1 (b) Intent.--It is the intent of the General Assembly and
2 the purpose of this act to establish the Career and Vocational
3 Education - Employer Partnership Program to provide enhanced
4 educational opportunities.
5 Section 3. Definitions.
6 The following words and phrases when used in this act shall
7 have the meanings given to them in this section unless the
8 context clearly indicates otherwise:
9 "Business firm." A corporation having capital stock, joint-
10 stock association or limited partnership, either organized under
11 the laws of the United States, this Commonwealth or any other
12 state, territory or foreign country or dependency and doing
13 business in this Commonwealth or having capital or property
14 employed or used in this Commonwealth by or in the name of
15 itself or any person, partnership, association, limited
16 partnership, joint-stock association or corporation and subject
17 to taxes under Article IV or VI of the act of March 4, 1971
18 (P.L.6, No.2), known as the Tax Reform Code of 1971. The term
19 shall also include businesses operating as Pennsylvania S
20 corporations, sole proprietorship or partnership that are
21 subject to taxes under Article III of the Tax Reform Code of
22 1971 and building and loan associations, bank and trust
23 companies and insurance and surety companies that are subject to
24 taxes under Article VI, VII, VII-A, VIII, VIII-A, IX, X or XV of
25 the Tax Reform Code of 1971.
26 "Community college." A public college or technical institute
27 which is established and operated in accordance with the
28 provisions of Article XIX-A of the act of March 10, 1949
29 (P.L.30, No.14), known as the Public School Code of 1949, by a
30 local sponsor which provides a two-year, postsecondary, college-
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1 parallel, terminal-general, terminal-technical, out-of-school
2 youth or adult education program or any combination of these.
3 The community college may also provide area vocational-technical
4 education services to secondary senior high school students.
5 "Department." The Department of Community and Economic
6 Development of the Commonwealth.
7 "Private company." Any agricultural, industrial,
8 manufacturing, research or development enterprise as defined in
9 section 3 of the act of May 17, 1956 (1955 P.L.1609, No.537),
10 known as the Pennsylvania Industrial Development Authority Act,
11 or any commercial enterprise as defined in section 3 of the act
12 of August 23, 1967 (P.L.251, No.102), known as the Economic
13 Development Financing Law.
14 "Program." The Career and Vocational Education - Employer
15 Partnership Program created under this act.
16 "Qualified investments." Any investments made by a private
17 company which promote job training pursuant to a plan developed
18 in cooperation with and approved by a vocational school
19 operating pursuant to a plan for the administration of tax
20 credits approved by the Department of Community and Economic
21 Development.
22 "Secretary." The Secretary of Community and Economic
23 Development of the Commonwealth.
24 Section 4. Establishment of Career and Vocational Education -
25 Employer Partnership Program.
26 There is hereby established the Career and Vocational
27 Education - Employer Partnership Program to augment and
28 complement the curriculum provided by the vocational schools and
29 community colleges throughout this Commonwealth.
30 Section 5. Powers and duties of department.
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1 The department has the power and its duty shall be to adopt
2 rules, regulations, procedures and forms that may be necessary
3 to implement the program established under this act.
4 Section 6. Tax credit.
5 (a) Proposal.--Any business firm which engages or
6 contributes to a vocational school or occupational or technical
7 program or advanced technology program at a community college
8 which engages in the activities of job training and education or
9 a private company which makes a qualified investment to
10 rehabilitate, expand or improve vocational school or
11 occupational or technical program or advanced technology program
12 at a community college buildings shall receive a tax credit as
13 approved in section 7 if the secretary annually approves the
14 proposal of such business firm or private company. The proposal
15 shall set forth the job training program to be conducted or the
16 rehabilitation or expansion improvement to take place, the
17 estimated amount to be invested in the program and the plans for
18 implementing the proposal.
19 (b) Rules.--The secretary is authorized to promulgate rules
20 and regulations for the approval or disapproval of proposals by
21 business firms or private companies and provide a listing of all
22 applications received and the disposition in each fiscal year to
23 the General Assembly by October 1 of the following fiscal year.
24 SUCH RULES AND REGULATIONS SHALL ENSURE THAT THE TAX CREDITS <--
25 GRANTED FOR PROGRAMS APPROVED UNDER THIS ACT ARE EQUITABLY
26 DISTRIBUTED AMONG RURAL, SUBURBAN AND URBAN REGIONS OF THIS
27 COMMONWEALTH.
28 (c) Total tax credit.--The total amount of the tax credit
29 granted for programs approved under this act shall not exceed
30 $10,000,000 in any fiscal year for vocational technical schools.
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1 The total amount of the tax credit granted for programs approved
2 under this act shall not exceed $5,000,000 in any fiscal year
3 for community colleges.
4 Section 7. Grant of tax credit.
5 The Department of Revenue shall grant a tax credit against
6 any tax due under Article III, IV, VI, VII, VII-A, VIII, VIII-A,
7 IX, X or XV of the act of March 4, 1971 (P.L.6, No.2), known as
8 the Tax Reform Code of 1971, or any tax substituted in lieu
9 thereof in an amount which shall not exceed 50% of the total
10 amount invested during the taxable year by the business firm or
11 20% of qualified investments by a private company in programs
12 approved pursuant to section 9 provided such tax credit per
13 business firm or private company does not exceed $250,000 per
14 year.
15 Section 8. Unused credit.
16 Any portion of a tax credit that is unused during a
17 vocational school's fiscal year may be applied against the tax
18 imposed under Article III, IV, VI, VII, VII-A, VIII, VIII-A, IX,
19 X or XV of the act of March 4, 1971 (P.L.6, No.2), known as the
20 Tax Reform Code of 1971, or any tax substituted in lieu thereof,
21 for the ensuing five fiscal years.
22 Section 9. Decision in writing.
23 The decision of the secretary to approve or disapprove a
24 proposal pursuant to section 6 shall be in writing, and, if the
25 secretary approves the proposal, the decision shall state the
26 maximum credit allowable to the business firm. A copy of the
27 decision of the secretary shall be transmitted to the Department
28 of Revenue.
29 Section 10. Additional powers and duties of department.
30 The department, in consultation with the Department of
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1 Revenue, has the power and its duty shall be to adopt rules,
2 regulations, procedures and forms that may be necessary to
3 implement the business tax credit program authorized under this
4 act.
5 Section 11. Effective date.
6 This act shall take effect in 60 days.
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