PRINTER'S NO. 3196
No. 2317 Session of 2002
INTRODUCED BY CAPPELLI, ARMSTRONG, BARRAR, BELFANTI, BROWNE, CASORIO, COY, CREIGHTON, CRUZ, CURRY, DeLUCA, FAIRCHILD, FORCIER, GABIG, GEIST, GEORGE, GRUCELA, HERSHEY, HORSEY, KIRKLAND, LAUGHLIN, LEH, MAYERNIK, McILHATTAN, PETRARCA, PISTELLA, RAYMOND, READSHAW, SAINATO, SATHER, SHANER, E. Z. TAYLOR, THOMAS, TURZAI, WALKO, WANSACZ, WILT, WOJNAROSKI, YOUNGBLOOD AND WASHINGTON, JANUARY 29, 2002
REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT, JANUARY 29, 2002
AN ACT 1 Amending the act of May 17, 1956 (1955 P.L.1609, No.537), 2 entitled "An act to promote the welfare of the people of the 3 Commonwealth by the reduction of unemployment in certain 4 areas of the Commonwealth determined to be critical economic 5 areas; providing for the establishment of industrial 6 development projects in such areas; creating The Pennsylvania 7 Industrial Development Authority as a body corporate and 8 politic with power to allocate funds for and make secured 9 loans to industrial development agencies for the payment of a 10 part of the cost of industrial development projects in 11 critical economic areas; authorizing the Authority to enter 12 into agreements with the Government of the United States or 13 any Federal agency or industrial development agency; 14 empowering the Authority to take title to, sell, convey and 15 lease industrial development projects where necessary to 16 protect loans made by the Pennsylvania Industrial Development 17 Authority on industrial development projects; providing that 18 no debt of the Commonwealth, its municipalities or political 19 subdivisions shall be incurred in the exercise of any powers 20 granted by this act; and providing for the examination of the 21 accounts and affairs of the Authority; and making an 22 appropriation," further providing for administrative powers. 23 The General Assembly of the Commonwealth of Pennsylvania 24 hereby enacts as follows: 25 Section 1. Section 6(e) of the act of May 17, 1956 (1955
1 P.L.1609, No.537), known as the Pennsylvania Industrial 2 Development Authority Act, amended July 13, 1988 (P.L.534, 3 No.95), is amended to read: 4 Section 6. Powers of the Authority; Loans to Industrial 5 Development Agencies.--When it has been determined by the 6 Authority upon application of an industrial development agency 7 and hearing thereon in the manner hereinafter provided, that the 8 establishment of a particular industrial development project of 9 such industrial development agency in a critical economic area 10 has accomplished or will accomplish the public purposes of this 11 act, the Authority may contract to loan such industrial 12 development agency an amount not in excess of the percentage of 13 the cost of such industrial development project, as established 14 or to be established as hereinafter set forth, subject, however, 15 to the following conditions: 16 * * * 17 (e) Any such loan of the Authority shall be for such period 18 of time and shall bear interest at such rate not to exceed 19 (3.75%) as shall be determined by the Authority and shall be 20 evidenced by bond or note of the industrial development agency 21 and secured by mortgage on the industrial development project 22 for which such loan was made, such mortgage to be second and 23 subordinate only to the mortgage securing the first lien 24 obligation issued to secure the commitment of funds from the 25 aforesaid independent and responsible sources and used in the 26 financing of the industrial development project. Loans for 27 industrial parks and multiple-tenancy building projects shall be 28 secured as provided in subsections (b.1) and (b.2), 29 respectively. The Authority may require such additional security 30 for its loan as the board may determine necessary. 20020H2317B3196 - 2 -
1 Moneys so loaned by the Authority to industrial development 2 agencies shall be withdrawn from the Industrial Development Fund 3 or other account of the Authority and paid over to the 4 industrial development agency in such manner as shall be 5 provided and prescribed by the rules and regulations of the 6 Authority. 7 Loans by the Authority to an industrial development agency 8 for an industrial development project shall be made only in the 9 manner and to the extent as in this section six provided, 10 except, however, in those instances wherein an agency of the 11 Federal government participates in the financing of an 12 industrial development project by loan, grant or otherwise of 13 Federal funds. When any Federal agency does so participate the 14 Authority may adjust the required ratios of financial 15 participation by the industrial development agency, the source 16 of independent funds, and the Authority in such manner as to 17 insure the maximum benefit available to the industrial 18 development agency, the Authority, or both, by the participation 19 of the Federal agency. 20 Where any Federal agency participating in the financing of an 21 industrial development project is not permitted to take as 22 security for such participation a mortgage the lien of which is 23 junior to the mortgage of the Authority, the Authority shall in 24 such instances be authorized to take as security for its loan to 25 the industrial development agency a mortgage junior in lien to 26 that of the Federal agency. 27 Before any loan is approved by the Authority, the responsible 28 tenant or purchaser must certify to the Authority that it has 29 not been cited by a governmental agency for causing pollution in 30 the Commonwealth, or if it has been so cited, that it is 20020H2317B3196 - 3 -
1 embarked on a specific program for eliminating the cause of the 2 citation. The responsible tenant or purchaser must also certify 3 to the Authority that the proposed project would be designed so 4 as not to cause pollution in violation of existing standards. 5 In the event of the imposition of any civil or criminal 6 penalty on a specific industrial development project hereinafter 7 approved, resulting from the violation of any law or regulation 8 relating to environmental pollution in the Commonwealth, the 9 responsible tenant or purchaser shall, at the request of the 10 Authority, be required to either show evidence of having entered 11 into an agreement with the appropriate governmental agency 12 providing for the required abatement, or if the violation has 13 been appealed to the courts, evidence of having complied with a 14 finally adjudicated decision of a court of law relating to the 15 violation. If the responsible tenant or purchaser shall fail to 16 show such evidence, the Pennsylvania Industrial Development 17 Authority together with the Environmental Quality Board of the 18 Department of Environmental Resources may at their discretion 19 take such action as they deem appropriate with regard to the 20 project loan. 21 Section 2. The following apply: 22 (1) The amendment of section 6(e) of the act shall apply 23 to loans made or renewed on or after the effective date of 24 this act. 25 (2) The Pennsylvania Industrial Development Authority is 26 authorized to renegotiate loans existing on the effective 27 date of this act in accordance with the amendment of section 28 6(e) of the act. 29 Section 3. This act shall take effect in 60 days. L21L64VDL/20020H2317B3196 - 4 -